Thursday May 10 Ag News

CROP PRODUCTION REPORT

Based on May 1 conditions, Nebraska's 2018 winter wheat crop is forecast at 42.6 million bushels, down 9 percent from last year's crop, according to the USDA's National Agricultural Statistics Service. Average yield is forecast at 43 bushels per acre, down 3 bushels from last year. Acreage to be harvested for grain is estimated at 990,000 acres, down 30,000 acres from last year. This would be 93 percent of the planted acres, above last year's 91 percent harvested.

May 1 hay stocks of 720,000 tons are down 45 percent from last year in Nebraska.

All hay stored on Iowa farms as of May 1, 2018, is estimated at 360,000 tons, a decrease of 43 percent from May 1, 2017, according to the latest USDA, National Agricultural Statistics Service – Crop Production report. Disappearance from Dec 1, 2017, through May 1, 2018, totaled 1.92 million tons, compared with 2.02 million tons for the same period a year earlier.



USDA: Corn Production Lower, Prices Higher in 2018/2019

The U.S. corn industry may see lower, but still strong, production according to U.S. Department of Agriculture reports released today. Lower forecast production coupled with somewhat decreased demand results in higher cost projections, with the mid-range projected 40 cents higher than the previous year.
 
This report, the first forecasting overall U.S. corn supply and demand for the next marketing year, projected lower production with both lower acreage and yields forecast as compared with the previous year. The yield, projected to 174 bushels per acre, is based on a weather-adjust trend assuming that both planting progress and summer weather remain normal in comparison with that seen over the prior thirty years. If realized, it would be the third-highest yield on record. Beginning stocks are projected lower than the prior year and, thus, the total corn supply would be down 675 million bushels from the year before at a total 16.3 billion bushels.

Total corn use is projected to decline slightly in 2018/19, with lower projected domestic use and exports. Growth in the projected demand for corn for use in ethanol and non-ethanol food, seed and industrial uses partly offset declines in the aforementioned areas. Notably, the increased ethanol demand reflects increased gasoline consumption growth expectations.

Ending stocks are expected at lower levels for 2018/19 with 1.68 billion bushels, down 500 million bushels from the year prior. The 2018/19 season-average corn price received by farmers is projected to be between $3.30 to $4.30 per bushel. While this range is wider than that forecast for the year prior, its midpoint is 40 cents higher.



Silver lining emerges from trade cloud as report gives bounce to soybean prices

Trade uncertainty with China and ongoing North American Free Trade Agreement (NAFTA) renegotiations apparently won’t hurt soybean exports long-term, according to today’s U.S. Department of Agriculture (USDA) World Agricultural Supply and Demand Estimates Report.

U.S. soybean exports are projected at nearly 2.3 billion bushels for the 2018-19 marketing year that begins on Sept. 1, up 225 million bushels from this year, the report said. With forecast global soybean import growth of 5 percent, the U.S. soybean export share is estimated at 39 percent, up from 2017-18.

Despite lots of trade rumors and rhetoric, Iowa Soybean Association (ISA) Market Development Director Grant Kimberley said U.S. soybeans are still selling.

 “It’s full steam ahead at ISA as we continue to build overall demand and customer preference for U.S. soybeans,” Kimberley said. “The report is positive news, which is something farmers needed as they plant this year’s crop. Producers shouldn’t let uncertainties distract them from raising the highest-quality soybeans in the world.”

Reduced stocks in South America this fall — drought ravaged Argentina’s soybean crop, lowering production by about 700 million bushels — will limit export competition during the first half of the 2018-19 marketing year, the government predicts.

Soybean futures initially shot up about 20 cents after the report’s release. July soybeans on the Chicago Board of Trade closed Thursday at $10.21 per bushel, up nearly 5 1/2 cents. The USDA 2018-19 U.S. season-average soybean price range is forecast at $8.75 to $11.25 per bushel compared with $9.35 per bushel this marketing year.

Will today’s report generate a sustained rally? The answer is likely no, given the strong headwinds facing the U.S. soybean industry. The threat of a 25-percent tariff on U.S. soybeans by China in retaliation for proposed U.S duties on Chinese goods looms. And, a new NAFTA deal with Mexico and Canada isn’t a certainty.

ISA leaders plan to do everything they can to help. ISA is eyeing additional visits to China, a country of 1.4 billion consumers, and meeting with buyers in countries that offer opportunities to increase consumption of U.S. soy.

“The main thing is we have product that needs to get exported,” said Delbert Christensen, a past ISA president and United Soybean Board member from Audubon. “We’re hoping that something can get figured out with China to continue selling soybeans to this valuable customer.”

Chinese buyers have reportedly stopped purchasing U.S. soybeans and are canceling orders on the books, which isn’t uncommon since South America’s crop is being harvested. However, crushers in Europe and Argentina are turning to the U.S. now due to higher premiums for Brazilian beans.

Al Kluis, managing director of Kluis Commodities of Wayzata, Minnesota, was shocked the USDA reduced 2018-19 U.S. soybean ending stocks to 415 million bushels, down 115 million from the revised forecast this year. The USDA predicts China will import nearly 3.8 billion bushels of soybeans in 2018-19, up 220.5 million from the current marketing year.

“Thank you, China,” Kluis said during a webinar with clients today. “Whether they buy from the U.S. or Brazil, it doesn’t matter. It’s a global market.”



USDA:  Winter Wheat Production Down 6 Percent from 2017

Winter wheat production is forecast at 1.19 billion bushels, down 6 percent from 2017. As of May 1, the United States yield is forecast at 48.1 bushels per acre, down 2.1 bushels from last year's average yield of 50.2 bushels per acre.

Hard Red Winter production, at 647 million bushels, is down 14 percent from a year ago. Soft Red Winter, at 315 million bushels, is up 8 percent from 2017. White Winter, at 229 million bushels, is up 1 percent from last year. Of the White Winter production, 21.2 million bushels are Hard White and 208 million bushels are Soft White.



Brazil Raises 2017-18 Soybean, Corn Crop Estimates

Brazilian agriculture agency Conab raised its estimate for the country's soybean and corn harvests in the 2017-2018 growing season, helped by favorable weather and improved productivity.

Brazilian farmers will produce a record 117 million metric tons of soybeans in the season, Conab said Thursday, up from its forecast of 115 million tons in April. Brazil produced 114.1 million tons of soybeans in the 2016-2017 season, the previous record.

The soybean harvest for this year in Brazil is approaching its finish, Conab said.

Favorable weather in several states helped boost the soybean crop this year, Conab said. Productivity also improved in multiple states, including Mato Grosso, Brazil's biggest soybean producer, where many farmers have been using improved seed varieties, the agency said.

Conab forecast a total corn crop of 89.2 million metric tons in the 2017-2018 season, up from the 88.6 million tons the agency forecast in April, though less than the record 97.8 million tons produced in 2016-2017.



Sapp Bros. Opens Columbus Biodiesel Blending Facility

The new Sapp Bros. biodiesel blending facility will hold its grand opening in Columbus on May 24.

The new blending facility is located five miles from the Columbus NuStar terminal. Fuel suppliers can load diesel on their transport at the terminal, then load biodiesel at the Sapp Bros. terminal to the desired blend level. Fuel suppliers will have 24/7 access and loading upon approval. The biodiesel will be sourced from soybeans and BQ-9000 certified plants, assuring high-quality biodiesel. 

Biodiesel is the only advanced biofuel that is commercially available and lowers greenhouse gases by more than 50 percent compared to petroleum.

Nebraska Soybean Board member Greg Anderson of Newman Grove said biodiesel’s environmental benefits are just one reason to choose it.

“When consumers have the choice to use biodiesel instead of regular diesel, they also need to realize that burning biodiesel is bringing revenue into our state and providing jobs for people, as well as reducing our dependency on foreign oil, which is really huge,” Anderson said.

Sapp Bros. opened a biodiesel blending terminal in August 2017 in Norfolk and will open another in Geneva this June. Funded by the Nebraska Soybean Board and with consulting services provided by MEG Corp Fuel Consulting, all of the blending facilities are within a five-mile radius of the diesel terminal.

“We look to put in biodiesel blending sites near the terminal because we want to make it as easy as possible for fuel suppliers to blend biodiesel with their diesel,” Hoon Ge, MEG Corp founder, said.

Anderson said approximately 23,000 Nebraska soybean farmers will benefit from the new blending facilities. Since biodiesel use creates a higher demand for soybean oil, the biodiesel industry contributes 63 cents to every bushel of soybeans.

“The Nebraska Soybean Board has done a lot of foundational work as far as education and networking with different fuel suppliers to show them how biodiesel can benefit their companies,” Anderson said. “Sapp Bros. has a big distribution network within the state and is highly respected. We’re delighted to be partnering with them.”

Anderson and Ge noted the success Sapp Bros. has already seen with its Norfolk facility.

“The more gallons they move, we know we’ve done our job of making it easier to get biodiesel in Nebraska,” Ge said. 

The biodiesel blending facility grand opening in Columbus will take place from 11 a.m. to 2 p.m. at 307 13th St. 



Women's learning circle and farm tour set for June 1 near Blair

Women who own or manage farmland are invited to a farm tour and learning circle on conservation practices and reducing risk, hosted by the Center for Rural Affairs.  The event is set for Friday, June 1, at 3:30 p.m., at O’Keefe Grasslands Ranch, 14215 Highway 75, Blair, Nebraska.  Participants have an opportunity to tour grazing lands for a grass-fed beef operation, pollinator habitat, and buffer strips.

“We will learn how the operator and non-operator work together on the ranch, how conservation practices are applied, and women can complete a pollinator habitat assessment for their own operations,” said Sandra Renner, project specialist for the Center for Rural Affairs. “Women non-operator landowners who own more than 40 acres, may have inherited farmland, or who are feeling overwhelmed with the decisions of farmland management will find this event especially helpful.”

In addition, attendees have an opportunity to join a learning circle-style discussion on conservation and stewardship, family and other land transitions, multi-generational management structures, and long-term business goals.

“We encourage women landowners to come with their questions and learn from others in the learning circle,” Renner said. "Experts will also be on hand to participate in the conversation.”

This a free event, and registration is required by May 30. Contact Sandra Renner at sandrar@cfra.org or 402.320.3444. Visit cfra.org/events for more information.  This tour and learning circle is made possible by funding from a U.S. Department of Agriculture (USDA) Extension Risk Management grant.



Secretary Perdue Announces Fourth “Back to Our Roots” Tour

U.S. Secretary of Agriculture Sonny Perdue will embark on his fourth “Back to Our Roots” tour next MONDAY, May 14th to hear ideas and concerns from local farmers, ranchers, producers, foresters, agriculture students, business owners, community leaders, and U.S. Department of Agriculture (USDA) employees. The tour will last through Thursday and include stops in New Mexico, Colorado, Wyoming, and Nebraska. During different segments of the tour, Secretary Perdue will be joined by Governor Susana Martinez (NM), Governor John Hickenlooper (CO) Governor Pete Ricketts (NE), Secretary of Agriculture Jeff Witte (NM), Agriculture Commissioner Don Brown (CO), Agriculture Director Doug Miyamoto (WY), Director of Agriculture Steve Wellman (NE), and American Farm Bureau Federation (AFBF) President Zippy Duvall.

“This tour is another great chance to escape Washington and meet face-to-face with America’s farmers, ranchers, producers, and foresters,” Secretary Perdue said. “We want to take our message directly to the American people and give them an opportunity to express their ideas and concerns. As Congress and the Administration continue their work on important issues like rural infrastructure, trade, and the Farm Bill, USDA stands ready to give the agriculture community a voice.”

DETAILS OF THE THURSDAY, MAY 17th STOP IN NEBRASKA
Secretary Perdue, Governor Ricketts, and Director Wellman will tour Ackerman Ag Service and Supply in Alliance before the Secretary and Governor participate in a discussion on various rural issues with local leaders.



Green Plains Reports First Quarter 2018 Financial Results

Omaha-based Green Plains Inc. (NASDAQ:GPRE) recently announced financial results for the first quarter of 2018. Net loss attributable to the company was $24.1 million, or $(0.60) per diluted share, for the first quarter of 2018 compared with net loss of $3.6 million, or $(0.09) per diluted share, for the same period in 2017. Revenues were $1.0 billion for the first quarter of 2018 compared with $887.7 million for the same period last year.

"Margins were weak in the first quarter, yet we expect demand for ethanol to improve domestically and internationally as we enter summer driving season," commented Todd Becker, president and chief executive officer. "As we indicated in February, we limited production due to weak ethanol margins as well as major capital improvements at our plant in Madison, Illinois. We achieved a record yield of 2.89 gallons of ethanol per bushel of corn as a result of our efforts to continue driving efficiency in our ethanol production processes. While we had another solid performance from our food and ingredients segment, which produced $16 million of EBITDA during the quarter, the company's first quarter financial performance did not meet our expectations."

"Margins remained volatile even though the industry exported over 500 million gallons of ethanol in the first quarter, keeping exports on pace for another record year in 2018 and industry stock levels lower than each of the two previous years during the same time period," Becker added. "We anticipate domestic ethanol blending will grow this year as a result of increased gasoline demand, the ethanol price discount to wholesale gasoline and continued effort by the industry to sell E15 year-round."

"We are also pleased to announce that we signed a Letter of Intent to implement, subject to final negotiations, Fluid-Quip Process Technologies' patented Maximized Stillage Co-Products™ (MSC) System," said Becker. "This proven bolt-on technology produces high-protein animal and fish feed ingredients from a portion of distillers grains and is expected to provide a consistent uplift of at least 10 cents per gallon to the ethanol margin structure. After the careful evaluation of several technologies, we are excited to choose Fluid-Quip's MSC for our first implementation at Shenandoah, Iowa. As we have indicated in the past, we believe the margin contributions of corn oil and high-protein feed ingredients will help our returns become more predictable and consistent over time."

Portfolio Optimization Program
Green Plains also announced its intention to reposition its assets over the next several years to drive improved margins and returns for its shareholders as part of its Portfolio Optimization Program. This effort will include divestment of assets that do not support the long-term objectives of the company. This will result in a more efficient asset base focused on enhanced protein production and export supply chain maximization.

"We have built a platform whose intrinsic value is not reflected in our market valuation," continued Becker. "To remedy this, we intend to optimize our portfolio. Our primary goals are to improve our share price and significantly reduce our debt levels."

The Program's five strategic objectives include:
-    Prove value of Green Plains' assets for our shareholders through strategic divestments
-    Significantly reduce or eliminate term debt by the end of 2018 with sale proceeds
-    Invest in high-protein process technology at the Shenandoah, Iowa ethanol facility with other locations to follow
-    Repurchase shares with remaining proceeds and free cash flow when market conditions are optimal
-    Reduce controllable expenses $10 to $15 million on an annual run rate basis, starting in the third quarter of 2018

"Future investments will be focused on protein production, streamlining our export supply chain to leverage our strong position and maximizing our returns at our export facility in Beaumont, Texas," said Becker. "Assets that do not align with these goals will be divested to fund our capital needs in support of this strategy." The company has retained XMS Capital Partners as the lead advisor, and Ocean Park to manage the process of certain assets.

"While the Tax Cuts and Jobs Act proved favorable to 2017 results, companies that process and handle commodities like us carry significant working capital and debt balances, which can potentially have negative tax implications going forward," explained Becker. "By reducing our overall debt and realizing gains on asset sales at a lower corporate rate, we believe we are taking the appropriate steps under the new tax law that will benefit our shareholders long term and provide greater financial flexibility to execute future strategic initiatives."

First Quarter Highlights and Recent Developments
-    During the quarter, Green Plains and Green Plains Partners agreed to extend the offer period related to the company's interest in the joint venture with Jefferson Ethanol Holdings LLC to no later than October 15, 2018.
-    On May 7, 2018, Green Plains announced it will divest assets that do not support the company's strategic focus on the production of high-protein feed ingredients and ethanol exports to significantly reduce or eliminate the company's term debt and invest in high-protein process technology at certain ethanol facilities.

Results of Operations
Green Plains produced 280.4 million gallons of ethanol during the first quarter of 2018, compared with 326.4 million gallons for the same period in 2017. The consolidated ethanol crush margin was $15.3 million, or $0.05 per gallon, for the first quarter of 2018, compared with $37.7 million, or $0.12 per gallon, for the same period in 2017. The consolidated ethanol crush margin is the ethanol production segment's operating income before depreciation and amortization, which includes corn oil, plus intercompany storage, transportation and other fees, net of related expenses.

Consolidated revenues of $1,045.3 million increased $157.6 million for the three months ended March 31, 2018, compared with the same period in 2017 primarily as a result of the cattle feedlot acquisitions during the first half of 2017 and higher natural gas volumes sold, partially offset by decreased volumes and lower average realized prices for ethanol, grain and corn oil.

Operating loss of $3.9 million decreased $21.3 million for the three months ended March 31, 2018, compared with the same period last year primarily due to lower ethanol margins. Interest expense increased $3.6 million for the three months ended March 31, 2018, compared with the same period in 2017, primarily due to increased borrowings for the cattle feedlot acquisitions. Income tax benefit was $6.0 million for the three months ended March 31, 2018, compared with $2.4 million for the same period in 2017.

Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the first quarter of 2018 was $23.1 million compared with $43.8 million for the same period last year.



This Week's Drought Summary - May 10
droughtmonitor.unl.edu

This U.S. Drought Monitor week saw scattered showers and thunderstorms across portions of the South, southern and central Plains, Midwest, and Northeast. This week’s storm activity led to targeted improvements in drought-related conditions in portions of Texas, Kansas, Iowa, and Florida while conditions deteriorated in parts of the Desert Southwest, northern Plains, and the Midwest. Across most of the continental U.S., average temperatures for the week were well above normal including some recording-breaking heat last week in parts of the Mid-Atlantic and Northeast where temperatures soared into the 90s. In the southern and central Plains, concerns continue with regard to the condition of the winter wheat crop with the USDA World Agricultural Outlook Board reporting 50% of the Kansas winter wheat crop in poor to very poor condition while Oklahoma and Texas are worse off at 68% and 60%, respectively. In the Southwest, a very dry winter and spring season are taking a toll on the vegetation with the USDA reporting 95% of Arizona pasture and rangeland in poor to very poor condition with New Mexico at 60%.

Midwest
On this week’s map, areas of Abnormally Dry (D0) and Moderate Drought (D1) were reduced in southwestern Iowa in response to rainfall accumulations of 2-to-3 inches. In northeastern Iowa and southern Wisconsin, 3-to-5 inches of rain fell this week helping to improve soil moisture and streamflow conditions. In contrast, areas of Abnormally Dry (D0) were introduced to portions of Illinois, Minnesota, and Missouri where rainfall has been below normal during the past 60 days – with areas of below normal surface and root zone soil moisture appearing on the latest satellite-based NASA GRACE-based drought products (http://nasagrace.unl.edu). For the week, average temperatures were 2-to-10 degrees above normal with maximum daily temperatures exceeding 80°F. Looking at the month of April, the Upper Midwest region experienced its coldest April on record, according to NOAA NCEI.

High Plains
On this week’s map, locally heavy rains (3-to-5 inches) impacted isolated areas of northeastern Kansas leading to reduction in areas of Moderate Drought (D1). Meanwhile, short-term precipitation deficits during the past 30 to 60 days led to expansion of areas of Abnormally Dry (D0) in eastern North Dakota where local pastures are in need of rainfall and some cattle producers are running low on feed. According to the May 7th USDA NASS North Dakota Crop Progress and Condition Report, pasture and range conditions were reported as 5% very poor and 22% poor. In southeastern Nebraska and the eastern half of Kansas, dryness during the past 30 to 60 days has led to low streamflows especially in Kansas where many rivers and creeks are currently flowing well below normal levels. For the week, the region was warm and dry (with the exception of portions of northeastern Kansas, northeastern Colorado, and southeastern Wyoming) with temperatures well above normal and maximum daily temperatures exceeding 80°F.

Looking Ahead
The NWS WPC 7-Day Quantitative Precipitation Forecast (QPF) calls for moderate-to-heavy accumulations ranging from 2-to-3 inches across portions of the northern Rockies (south-central Montana, Wyoming), northern portions of the Midwest and southern portions of the Northeast, and southern Florida. Drought-stricken areas of the Desert Southwest are forecast to remain in a dry pattern as well as much of the Southern Plains, South, and Southeast. The CPC 6–10-day outlook calls for a high probability of above-normal temperatures across all of the continental U.S. with the exception of southern California and southwestern Arizona where temperatures are expected to be near normal. In terms of precipitation, above normal amounts are expected in the Great Basin, Intermountain West, portions of the southern Rockies, Southern and Central Plains, and most of the eastern U.S. while below normal precipitation is forecast for the Pacific Northwest and northern California.



Cattle producers invited to 3rd Annual Iowa Cattlemen’s Association BeefMeets

Iowa cattle producers will convene at five locations across the state in June for the third annual BeefMeets. In addition to several educational sessions, a full tradeshow and opportunities for networking, cattlemen will get a chance to share policy and industry issue concerns with ICA leaders. The five BeefMeets will be held June 6 in Red Oak, June 12 in Manchester, June 13 in Mount Pleasant, June 19 in Sheldon and June 20 in Fort Dodge.

The Iowa Cattlemen’s Association is a grassroots membership organization, with a dedication to “Grow Iowa’s beef business through advocacy, leadership and education.” The organization provides multiple free and low-cost educational events throughout the year for cattle producers.

Educational topics at this year’s BeefMeets will vary between the five locations. Each meeting will include a presentation on animal identification and traceability in the beef industry, and attendees will be asked to give input on the topic.

Other educational sessions include:

Red Oak:
Calf Health Panel
Market Outlook

Manchester:
Economics of Cover Crops
Feeding Cattle with a Price Floor in Place

Mount Pleasant:
Succession Planning
Land Use Options

Ft. Dodge:
Live Animal Handling Demonstration
Financial Planning Panel

Sheldon:
Feedlot Nutrition
Financial Planning Panel

Time has been set aside at each BeefMeet for ICA members to provide input to board members and staff, and the events will include a meal and tradeshow.

For more information or to register for BeefMeets, visit www.iacattlemen.org.



Publication Provides Comprehensive Overview of Pasture Management
A new version of an iconic Iowa State University Extension and Outreach publication has been released, providing updated information to livestock producers who are looking to increase production and returns by improving management of their grassland areas.

“Pasture Management Guide for Livestock Producers” (AS 14) has been completely updated and revised for 2018, giving livestock producers a practical guide to assist in making management decisions for their herds.

“In the 20 years since this publication was originally released in 1998 the amount of information we have on grazing systems and the services they provide has increased exponentially,” said James Russell, professor emeritus of animal science at Iowa State University. “Pastures have always been important in terms of livestock production and soil erosion, but we have increased our knowledge of the importance of grazing systems and what they can mean for water quality, soil health, wildlife and other ecological services.”

The publication was written by ISU Extension and Outreach specialists from a cross section of disciplines, providing their expertise on topics including managing pasture plants, grazing livestock management, planning for improvements in grazing systems, monitoring and evaluating the grazing system, managing risk in grazing systems and much more.

The 167-page publication is filled with color photographs that provide examples of the material being discussed. Illustrations also help present information on topics such as forage growth and how to design a pasture system.

“We have seen an increase in the implementation of rotational grazing through improved grazing management over the last 20 years, although there is still more we can learn and better implement,” Russell said. “In addition, we have also increased our knowledge of cover crops and annual forages to improve overall productivity. With the continued trend of loss of grazing land in Iowa, it makes it more important than ever to improve productivity and quality of the grazing land we have left and continue to maintain them.”

Copies of the publication are $10 and are available through the ISU Extension Store.'



NAIG REMINDS CENTURY AND HERITAGE FARM OWNERS TO APPLY BY JUNE 1

Iowa Secretary of Agriculture Mike Naig today reminded eligible farm owners that the deadline to apply for the 2018 Century and Heritage Farm Program is June 1, 2018.  The program recognizes families that have owned their farm for 100 years in the case of Century Farms and 150 years for Heritage Farms.

“I want to encourage families that have a farm that would qualify for a Century or Heritage Farm award to submit their application by June 1,” Naig said. “We are already looking forward to the State Fair in August and the opportunity to celebrate with these families and highlight the deep history and strong heritage of agriculture in our state.”

Farm families with a century or heritage farm must submit an application to the Department no later than June 1, 2018 to qualify for recognition at the Iowa State Fair this year.

Applications are available on the Department’s website at www.IowaAgriculture.gov by clicking on the link under “Iowa Century Farms.”

Applications may also be requested from Becky Lorenz, Coordinator of the Century and Heritage Farm Program via phone at 515-281-3645, email at Becky.Lorenz@IowaAgriculture.gov or by writing to Century or Heritage Farms Program, Iowa Department of Agriculture and Land Stewardship, Henry A. Wallace Building, 502 E. 9th St., Des Moines, IA 50319.

The program is sponsored by the Iowa Department of Agriculture and Land Stewardship and the Iowa Farm Bureau Federation.  The ceremony to recognize the 2018 Century and Heritage Farms is scheduled to be held at the Iowa State Fair on Thursday, August 16 in the Pioneer Livestock Pavilion.

The Century Farm program was started in 1976 as part of the Nation’s Bicentennial Celebration.  To date more than 19,000 farms from across the state have received this recognition.  The Heritage Farm program was started in 2006, on the 30th anniversary of the Century Farm program, and more than 1,000 farms have been recognized. A full list of all past Century Farm recipients is available at www.iowacenturyfarms.com.

Last year 354 Century Farms and 119 Heritage Farms were recognized.



Pork Checkoff to be Featured at World Meat Congress

For the first time in more than 20 years, the world’s premier gathering of red meat industry leaders is coming to the United States, and the Pork Checkoff is a major sponsor of the event. Hosted by the International Meat Secretariat (IMS) and the U.S. Meat Export Federation (USMEF), the 22nd World Meat Congress will be held in Dallas May 30-June 1, 2018.

“We are excited to be a major sponsor of the 2018 World Meat Congress,” said Bill Luckey, chair of the Checkoff’s international marketing committee and a pig farmer from Columbus, Nebraska. “This conference provides a historic opportunity to gather critical insights and showcase the superiority of U.S. pork production to key international customers.”

During the World Meat Congress, U.S. pork will be featured in the following ways:
-    Prominently featured in several meals, including the opening reception and a pork-themed luncheon;
-    A booth where Pork Checkoff staff will feature the quality of U.S. pork and share the We Care® and sustainability story of U.S. pig farmers; and
-    Keynote speakers chosen by Checkoff and USMEF leadership to discuss emerging issues.

“Exports will continue to play an important role in producer profitability during 2018, and offer the ability of our industry to sustainably grow in the future. As a significant World Meat Congress sponsor, we will build critical relationships that help us articulate key strategies to define new export markets and grow pork demand in existing ones,” said Luckey.

According to USMEF, the World Meat Congress is a biennial event, held in a major meat-producing country. It brings together more than 700 of the world’s meat industry thought leaders.



Soy Growers Urge House to Include Funds for Commodity Futures Trading Commission

Soy growers joined several ag organizations this week in a push for funding the Commodity Futures Trading Commission (CFTC).  The Administration’s full budget requests $281.5 million for the CFTC to be included in the FY19 Agriculture Appropriations bill. The American Soybean Association (ASA) signed onto a letter to the House Subcommittee on Agriculture, Rural Development Food and Drug Administration, and Related Agencies Committee on Appropriations, urging this funding full request be included in the Fiscal Year 2019 appropriations bill.

Why it matters…
The CFTC performs the critical role of helping to safeguard U.S. futures and swaps markets. The commission’s responsibilities have expanded dramatically in recent years, but funding has not kept up.  Also, several rulemakings and other initiatives underway or planned at CFTC have direct bearing on price discovery and risk management functions for U.S. agriculture. Currently, the CFTC lacks the funding to hire important personnel.  Without sufficient resources to staff the Commission and invest in needed technology upgrades, the CFTC’s ability to perform these important functions, as well as to continue its core regulatory mission, will be undermined.



USDA and USGC Representatives Welcome Historic U.S. Corn Shipment to Vietnam

On May 3, 2018, the U.S. Grains Council (USGC) and U.S. Department of Agriculture (USDA) representatives welcomed the first direct shipment of U.S. corn since 2016 as it arrived at the port of Cai Lan.

The detection of quarantined pests in 2016 led to import suspensions last year after the Vietnamese Plant Protection Department (PPD) issued a decision to institute new fumigation requirements for U.S. corn shipments and temporarily suspended DDGS importation.

The Vietnamese government eased requirements for phosphine fumigation treatment for U.S. corn imports and lifted its suspension of U.S. DDGS imports in September 2017, following an intense effort by the Council, the USDA’s Animal and Plant Health Inspection Service (APHIS) and the Office of the U.S. Trade Representative (USTR) in cooperation with PPD and local industry members in Vietnam. The groups worked together to address the Vietnamese government’s concerns and help return open access to one of the fastest growing feed markets in the world.

“The Council, USDA and industry efforts on this specific trade barrier in Vietnam provide a remarkable example of teamwork from the Council’s membership and government agencies in both countries,” said Manuel Sanchez, USGC regional director for Southeast Asia. “This cargo represents the success of U.S. coarse grains and co-products freely competing in the largest market in Southeast Asia.”

The cargo of 67,000 metric tons (2.64 million bushels) of U.S. corn originated in the Pacific Northwest and is the first of three cargoes arriving into the port in the next six weeks. Vietnamese importers in attendance noted the high quality of the corn and the importance of strong relationships with U.S. suppliers.

The May 3 vessel was the first of three cargoes of U.S. corn arriving into Vietnam in the next six weeks.
The feed ingredients will be delivered to end-users in Vietnam’s rapidly expanding dairy and livestock sectors. Vietnam produces approximately 30 million tons of feed annually. U.S. corn and other feed ingredients are helping fill that demand with exports nearing $700 million per year.

“Vietnam is the largest corn importer in Southeast Asia with tremendous growth opportunities for U.S. coarse grain imports over the next five years,” Sanchez said. “Vietnam’s growing population, urbanization and rapid economic growth have encouraged tremendous feed demand expansion in Vietnam’s commercial feed and livestock sectors.”

The Council helps support the export of U.S. corn through trade servicing and technical education with Vietnamese end-users. Vietnam has also re-emerged as a top importer of U.S. DDGS, used mainly in swine and poultry diets to complement the use of imported corn and soybean meal.

Thus far in the 2017/2018 marketing year (September 2017-March 2018), Vietnam has imported nearly 321,000 tons (12.6 million bushels) of U.S. corn, a 61 percent increase year-over-year, in addition to 572,000 tons of U.S. DDGS. These strong upward sales are promising for the market’s return as one of the top markets for U.S. corn and co-products.