Wednesday May 17 Ag News

Midwest Farm Bureau Presidents Call for End to China Trade Disputes

State Farm Bureau presidents from across the Midwest have joined together to urge U.S. Secretary of Agriculture Sonny Perdue to work with President Trump to end the escalation of trade disputes with China that have and continue to threaten market opportunities for agricultural commodities and products.

In a May 15 letter to Secretary Perdue, presidents of the Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin Farm Bureaus responded to President Trump’s call for the Secretary to develop a plan to provide monetary compensation to farmers and ranchers who may be hurt by retaliatory measures China may take in response to proposed U.S. tariffs on Chinese goods.

“Farmers and ranchers know growing our customer base outside our borders is critical to our economic survival. The development of international trade rules and passage of free trade agreements, while never perfect, have helped the United States and the Midwest in particular,” said Nebraska Farm Bureau President Steve Nelson. “Agriculture trade between China and our Midwestern states amounted to just under $4.5 billion in 2017 alone.”

In the letter, the presidents made it clear that farmers and ranchers want access to markets, not checks from the federal government in lieu of trade opportunities.

“Farmers and ranchers have invested heavily in checkoff programs, trade missions, and other activities to grow International markets. While we appreciate the sentiment behind President Trump’s request, this action will negate the work of our organizations to reduce the need for taxpayer assistance for agriculture,” said Nelson. “President Trump and Secretary Perdue have done great things for rural America, but we cannot afford to risk the gains we’ve made in market access by making farm and ranch families casualties of ongoing trade disputes with China.”

Background: U.S. / China Trade Dispute
President Trump announced on March 23, 2018, the U.S. would begin the process to impose tariffs on Chinese exports due to concerns over Chinese practices that impact U.S. intellectual property. On April 3, 2018, the Office of the U.S. Trade Representative (USTR) released a list of $50 billion of Chinese electronics, machinery, and aerospace products for a recommended 25 percent import tariff. In response to the U.S. recommendation of tariffs, China released a list of products for a potential 25 percent retaliatory tariff. The targeted products include soybeans, cotton, beef, corn, wheat, sorghum, tobacco, orange juice, cranberries, among other items. China’s potential tariffs will not go into effect until the U.S. proposed tariffs go into effect.

Key Nebraska / China Trade Statistics
    China was the 3rd largest buyer of Nebraska agriculture exports behind Mexico and Japan in 2017.  
    Nebraska agricultural trade with China was worth more than $396 million in 2017.
    Nebraska’s export relationship with China amounted in value to $2.29 per bushel of soybeans, $26.36 per head of beef, and $3.82 per head of pork in 2017.
    The average export value to China per Nebraska farm/ranch was roughly $16,600 in 2017. 



Statement by Steve Nelson, President, Regarding U.S. Secretary of Agriculture Perdue’s Visit to Nebraska

“I am pleased to welcome Secretary Perdue to Nebraska. The Secretary has been a champion for American agriculture and I appreciate his ongoing efforts to get into the countryside to hear directly from farmers, ranchers, and other small business owners.”

“From trade and a new farm bill, to the Renewable Fuel Standard (RFS), President Trump has placed the Secretary at the center of many of these important issues. It’s imperative Secretary Perdue hear from Nebraskans about the importance of agricultural trade and what farmers and ranchers would like to see in the next farm bill.”

“I look forward to visiting with him about the RFS and the reasons it is critical the administration allow for year-round blending of E-15 ethanol. It’s also vital the administration stick to the original intent of Congress when it comes to the RFS, which was to increase our domestic renewable fuel supply to benefit the environment and our nation. Furthermore, it’s important the administration work to ensure our renewable fuels policy continues to meet our international trade obligations.”



Three Power to Do More Contest Winners Announced

Thousands of online votes were cast, and three farmers are named winners of the Power to Do more contest. Out of 10 finalists, Shirley Schroeder of Le Mars, Iowa; Shana Guttery of Alton, Kansas; and Charles Krause of Buffalo, Minnesota, received the most votes in the contest, sponsored by Resicore® corn herbicide from Corteva Agriscience™, Agriculture Division of DowDuPont.

Corteva Agriscience™, Agriculture Division of DowDuPont, is donating a total of $30,000 to the three winners’ communities and a trip for two to their dream sports field. Additionally, the company is donating $1,000 to each community of the remaining seven finalists, totaling $37,000.

“We are blown away by the participation in this year’s contest and want to congratulate the winners,” says Lyndsie Kaehler, U.S. corn herbicides product manager, Dow AgroSciences. “In addition to donating money to the 10 community organizations, like last year, we are going to create videos of the three winning farmers to showcase the power of their operations. We appreciate their dedication to farming and their communities and are so proud to give back to them.”

Season 2 of the Power to Do More contest called upon farmers to submit a unique photo and story about the power of their farm operations. The 10 contest finalists were selected from hundreds of entries, based on the originality and creativity of their photos and stories.

Between March 27 and April 22, friends, family and neighbors of the 10 contest finalists voted online for their favorite farmer and community.

The winners are:
    Shirley Schroeder of Le Mars, Iowa, who submitted a photo of her multigenerational family, noting the family believes there is no greater calling than to feed the world. She described the family members’ powerful enthusiasm that they bring to all areas of their operation, leading to personal fulfillment and financial success. As a winner of the Power to Do More contest, Schroeder will receive two tickets to a baseball game at Wrigley Field this fall, plus $10,000 for the MMCRU school FFA program in her hometown.
    Shana Guttery of Alton, Kansas, who submitted a photo of her children, who are sixth generation family farmers in north-central Kansas. Her children help drive the grain cart, move from field to field and prepare meals. As a winner of the Power to Do More contest, Guttery will receive two tickets to a race at Talladega Speedway this fall, plus $10,000 for the Osborne County Community Foundation in her hometown.
    Charles Krause of Buffalo, Minnesota, who submitted a photo of his family pictured with their powerful dairy cow, Ditto, who is the highlight of many farm tours throughout the year. Krause, his wife and children are fifth- and sixth- generation dairy farmers in central Minnesota. As a winner of the Power to Do More contest, Krause will receive two tickets to a football game at Levi’s Stadium this fall, plus $10,000 for the Buffalo FFA community school garden in his hometown.

In appreciation of their effort and participation in the Power to Do More contest, Corteva Agriscience™, Agriculture Division of DowDuPont is donating $1,000 to each community organization nominated by the remaining seven finalists:
    Dean Atkins — Prairie Central High School’s track and football field in Chenoa, Illinois
    Jonathan Lawler — Eastern Hancock School’s sports program in Greenfield, Indiana
    Ryan Heiniger — Mediapolis FFA in Mediapolis, Iowa
    James Kirch — Wisner-Pilger FFA in Beemer, Nebraska
    Ryan Nickerson — Doniphan-Trumbull FFA in Doniphan, Nebraska
    Val Wagner — Prairie Rose 4-H Club in Monango, North Dakota
    Todd Yackley —  Onida Fire Department in Onida, South Dakota

Resicore® herbicide, the sponsor of this contest, is designed to give farmers power over weeds and versatility to control more than 75 tough weeds and grasses that rob corn yield, profit and time.

To be the first to see the three winners’ videos, sign up for an email notification at PowerToDoMore.com.



K-State University to Study Effects of Transportation on Pigs

Kansas State University researchers are planning a road trip later this year -- actually about 40 of them -- to learn more about what effect that transporting pigs has on muscle fatigue in those animals.

They plan to follow trucks around the Midwest -- specifically Iowa, Kansas, Missouri, Nebraska and Oklahoma -- to measure the vibration in the trailers and the resulting stress that it may cause the animals.

"Our concern is welfare of the animals, but you also have the concern about the loss to the industry," said John Gonzalez, an associate professor of animal science. "You're trying to help both sides; the animal number one, and the industry number two."

An estimated 120 million pigs are transported in the United States each year, or about 750,000 loads of pigs moving along roads and highways. Previous research has identified fatigue -- thought to be caused by the constant shaking that the animals endure during transportation -- as the cause of an estimated loss of .3 percent, or 360,000 pigs per year, according to Gonzalez.

That's equivalent to about 109 million pork meals lost per year, and just over $17 lost, per pig, by farmers -- a total of $61 million lost by the pork industry.

So Gonzalez and a team of K-State specialists aim to do something about it. They have received $125,000 from the Agriculture and Food Research Initiative, which is administered by the U.S. Department of Agriculture's National Institute of Food and Agriculture, to gather data on how to make pigs more comfortable during transportation.

The project was awarded as part of AFRI's interest in animal health and well-being.

"We are looking at different locations within the truck," Gonzalez said. "Let's say that we find out that the bottom level of the nose near the axle of the truck vibrates a lot more than the other compartments. So you can actually tell producers, 'OK, these pigs that are at the far end of the hog house and will have to walk a long way and be more fatigued than the guys that are close to the door, maybe you don't put them in the nose of the trailer.'"

The intent is to develop strategies for loading the pigs so those that might be more fatigued are not put where the vibration is strongest.

"An analogy I usually give to people is that the effects of transporting pigs is much like when a homeowner uses a weed eater or a chainsaw or whatever you use that vibrates heavily, and then at the end, you have no strength in your hands," Gonzalez said.

Sarah Schuetze, who is pursuing the doctoral degree in animal science, will collect data on 40 loads of pigs that will be transported between now and the end of the year. Schuetze, who has already earned undergraduate and graduate degrees in biological and agricultural engineering, has designed a system that utilizes accelerometers that will be placed in the trucks to measure movement from side-to-side, forward-to-backward, and up-and-down.

The measurements will help researchers understand differences, such as a bumpy ride along a county road compared to a ride along an interstate highway.

"This is so we can take those variables and see how it's affecting our pigs," Schuetze said. "Once we determine our vibration profile, we can use that information to address other transportation factors and create a better trip overall for the pigs."

Schuetze said the amount of data she will collect is vast: "We are taking 100 data points a second, over anywhere from a 3- to 4-hour load."

Once all of that information is gathered, Schuetze will then design and build a live simulator that researchers can use to test the effects of transportation and vibration in a controlled university setting. Eventually, the work can also include other animal species.

In addition to Gonzalez and Schuetze, the project includes Kansas State University animal scientists Tim Rozell and Jason Woodworth; biological and agricultural engineers Dan Flippo and Ed Brokesh; and kinesiology professor Tom Barstow.



Nationwide Reveals Most Common Agribusiness Insurance Claims

Over the last three years, the top ten types of agribusiness claims have accounted for more than 50,000 claims received by Nationwide. To help educate agribusiness professionals about costly trends in the industry, Nationwide, the number one farm insurer in the United States¹, has released its most common commercial agribusiness insurance claims. Below are the top 10 commercial agribusiness claims received by Nationwide in 2017:

Top 10 Agribusiness Insurance Claims
1. Motor Vehicle Accidents
2. Workers Compensation for Disability or Death
3. Misapplication of Chemicals or Drift
4. Slip, Fall or Injury
5. Food Related Claim
6. Animal Caused Damage or Bite
7. Glass Breakage
8. Wind Damage
9. Hail or Lightning Damage
10. Fire Damage or Loss

"By sharing our top claims data, we hope to help agribusiness owners recognize areas of their operation that may need increased safety precautions," said Carol Alvarez, vice president of claims for Nationwide. "These national trends can help business owners pinpoint areas where they can take extra measure to keep their employees, products and equipment safe."



Initial Hay and Pasture Data Don't Look Good
Levi Russell, Extension Livestock Economist, University of Georgia

The recently-released hay and pasture conditions report doesn't look particularly good for producers across most of the country. The bearish May WASDE report - higher production and larger ending stocks for 2018 - compounds the problem, but pasture conditions could very well improve as the season goes on.

May 1st hay stocks are down significantly across vast swathes of the country. Texas, Indiana, Missouri, and Louisiana are all down 60% or more relative to May 2017 and another 7 states across the West, Plains, and Midwest are down more than 40%. These reduced stocks are consistent with drought conditions that have persisted over the last few months. Other states across the Plains and Midwest have also seen declines.

However, some states have experienced significant increases. The deep South has recovered from drought conditions in the winter of 2016-2017 and stocks are up 15% in Alabama, 21% in Georgia, 44% in South Carolina, and a whopping 63% in Florida. The Northeast has also seen significant increases in hay stocks.

Turning to range and pasture conditions, things aren't much better. I want to stress that it's still early in the season, so things could certainly improve. At this time, however, the percentage of range and pasture rated "poor" or "very poor" is twice as high as it was at this time last year (20% vs 10%). Drilling down to the regional level, only the Southern region's conditions are consistent with last year (12.5% poor/very poor). The percentage poor or very poor across the rest of the country ranges between 15% and 30%, the highest of which is the West region. Conditions in the Corn Belt region are similar to the South.

With a bearish supply outlook, cow-calf producers will greatly benefit from improvements in range and pasture conditions, as well as hay supplies, as the season continues. The current situation isn't good, but some drought relief will certainly be helpful for producers across the Midwest, Plains, and Western regions.



USDA Invests $243 Million in Rural Community Facility Improvements in 22 States

Assistant to the Secretary for Rural Development Anne Hazlett today announced that the U.S. Department of Agriculture (USDA) is investing $243 million in 50 rural community facility projects in 22 states.

   In Nebraska, the City of Pawnee City received $2,248,600.  This Rural Development investment will be used to repave 3.8 miles of asphalt with concrete. Culverts will be replaced, and a box culvert will be converted to twin 72" diameter culverts. The existing asphalt and rock streets have deteriorated to the point where repair is no longer feasible. Complete replacement is necessary to provide safe, navigable streets.  Contact Luann Brown at 402-437-5571 or luann.brown@ne.usda.gov for additional information.

   “Rural communities represent a wealth of opportunity,” Hazlett said. “Under Secretary Perdue’s leadership, USDA is a partner in bringing those opportunities to life – whether attracting jobs, accessing additional capital, or improving the quality of life in these towns through access to modern community services.”

   USDA is making the investments through the Community Facilities Direct Loan Program. The recently passed 2018 Omnibus bill increased the Fiscal Year (FY) 2018 budget for the program to $2.8 billion, up $200 million from FY 2017.

   More than 100 types of projects are eligible for funding, such as schools, health care facilities, libraries and infrastructure improvements. Eligible applicants include municipalities, public bodies, nonprofit organizations and federally and state-recognized Native American tribes in rural areas with a population of 20,000 or less. There is no limit on the size of the loans. Loan amounts have ranged from $10,000 to $165 million.

   Projects are being announced today in Alabama, Arizona, California, Colorado, Illinois, Kansas, Kentucky, Louisiana, Maryland, Maine, Michigan, North Carolina, North Dakota, Nebraska, New York, Ohio, South Carolina, South Dakota, Tennessee, Texas, Virginia and West Virginia.

   In April, Hazlett said USDA will prioritize investments to address the opioid crisis in rural communities. In the Community Facilities Grant Program rural communities, nonprofit organizations and federally recognized tribes can apply through the usual Community Facilities grant application process for grants up to $150,000 for innovative projects such as mobile treatment clinics. Community Facilities grants may fund up to 75 percent of an eligible project.

   Last year, President Donald J. Trump established the Interagency Task Force on Agriculture and Rural Prosperity to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities. In January, Secretary Perdue presented the Task Force’s findings to President Trump. These findings included 31 recommendations to align the federal government with state, local and tribal governments to take advantage of opportunities that exist in rural America. Increasing investments in rural infrastructure is a key recommendation of the task force.



Most Fertilizer Prices Rise

Average retail fertilizer prices continue to be mostly higher the first full week of May 2018, according to retailers surveyed by DTN.

Seven of the eight major fertilizers were once again priced higher than last month, although none by a significant amount. DAP had an average price of $483 per ton, MAP $505/ton, potash $354/ton, 10-34-0 $431/ton, anhydrous $512/ton, UAN28 $241/ton and UAN32 $276/ton.

The remaining fertilizer was slightly lower in price compared to the previous month. Urea had an average price of $366/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.40/lb.N, anhydrous $0.31/lb.N, UAN28 $0.43/lb.N and UAN32 $0.43/lb.N.

Five of the eight major fertilizers are now higher compared to last year with prices pushing higher in recent months. Anhydrous is now up 1%, both potash and urea are 4% higher, MAP is up 9%, and DAP is 11% higher than last year.

The remaining three fertilizers are lower in price compared to a year ago. Both 10-34-0 and UAN32 are 1% lower, while UAN28 is 3% lower than a year ago.



NCGA Encourages Pollinator Friendly Practices
With another growing season underway across corn country, the National Corn Growers Association encourages farmers to complete a mental check list and assess your farming operation and any potential impact for pollinators like honey bees.

If you are using treated seed, remember to consider the following five basic steps for stewardship of treated seed during planting season:

Follow Directions: Follow directions on treated seed container labels for handling, storage, planting and disposal practices.

Eliminate Flowering Weeds: Eliminate flowering plants and weeds in and around the field prior to planting.

Minimize Dust: Use advanced seed flow lubricants that minimize dust.

Bee Aware: Be aware of honey bees and hives located near the field, and communicate with beekeepers prior to planting when possible.

Clean and Remove: Completely clean and remove all treated seed left in containers and equipment used to handle harvested grain and dispose of it properly. Keep all treated seed out of the commodity grain channels.

Likewise, as you plan summer spraying of insecticides, consider best management practices on your farm. This is especially critical if you have bee hives on your farm or on neighboring land. It’s all about awareness and communication.

Always refer to the pesticide label for application requirements. It is also advisable to identify any risks of pesticides to be used and discuss the best timing and management practices with any nearby beekeepers. You can find more information related to seed treatments at seed-treatment-guide.com and bee friendly practices at honeybeehealthcoalition.org.



NMPF Calls on Sweden’s Oatly to Respect U.S. Food Labeling Laws

Swedish food company Oatly, whose powdered, grass-based beverage is sold both in Europe and across the United States, should respect U.S. food labeling standards that restrict the use of the term “milk” to real dairy products, according to the National Milk Producers Federation (NMPF).

NMPF said today that Oatly is just the latest fake “milk” that is exploiting a lax regulatory environment in the United States to mislabel its imitation dairy product. NMPF criticized Oatly for complaining to the U.S. Food and Drug Administration (FDA) last month that it would be placed at a disadvantage if it could not call its product “oat milk,” even though it is not called “oat milk” anywhere except in the United States – not even in its native Sweden.

In the U.S. market, Oatly labels its product as “oat milk.” But in its home market of Sweden, where the product originated more than 25 years ago, Oatly is labeled as “havre dryck,” or “oat drink” in Swedish.  European Union (EU) regulations – similar to existing U.S. government standards – define milk as an animal product and do not allow plant-based milk copycats to use dairy terms. 

“It takes a lot of gall to complain to FDA that your company would be harmed by calling its product exactly what its already been labeled for years in its home market,” said NMPF President and CEO Jim Mulhern. “It’s been sold as an oat drink – which is exactly what it is – since it was first introduced in Sweden. Given that the EU and United States have similar food labeling regulations governing dairy terms, Oatly should label their product as an oat drink here, just as they do in Sweden.”

Oatly’s complaint was contained in an April 11 letter sent to FDA regarding a petition by the Good Food Institute (GFI), a group promoting vegan foods. Oatly wrote in support of GFI’s petition, which called for FDA to modify existing food standards to sanction the current marketplace abuse of marketers using dairy terms on products made from plants, not milk.

In a letter to FDA, Oatly U.S. General Manager Mike Messersmith said “budding and innovative companies like Oatly would be placed at a serious disadvantage if we were no longer allowed to use terms that instantly and accurately convey what's inside the carton. ‘Oat liquid,’ ‘oat beverage,’ or ‘oat juice’ fail to explain what our products actually are and would almost certainly result in decreased sales.”

Mulhern said that using any of those three terms much more accurately conveys what’s inside the carton than falsely labeling it “oat milk.”

“They are not allowed to call it ‘oat milk’ in Sweden and it’s been sold there for years,” he said. “The reality is that Oatly wants to use the word ‘milk’ because the word brings a healthy halo of consistent, reliable nutrition and other benefits. They are clearly riding on milk’s nutritional coattails to boost their own profits. It’s unfair to America’s dairy farmers, who follow strict regulations to ensure their real dairy products are safe and nutritious.  And it’s unfair to consumers because this product does not match milk’s superior nutritional package,” Mulhern said.

In promoting its cereal-derived beverage as oat “milk,” Oatly is blatantly skirting U.S. food labeling regulations, which dictate that any product using dairy terms including “milk,” “cheese” or “yogurt” must have originated from an animal. NMPF has long insisted that FDA take enforcement action against similarly misbranded products.

To highlight Oatly’s doublespeak to the FDA, NMPF has created a graphic that illustrates the difference between Oatly’s U.S. and Swedish packaging. This image will join others in NMPF’s “Dairy Imitators: Exposed” campaign, which calls out non-dairy imitation brands for ignoring federal standards and failing to live up to real milk’s complete nutrient package.



Licensing Agreement on Next-Generation Corn Insect Control Technology

Corteva Agriscience™ Agriculture Division of DowDuPont (NYSE: DWDP), and Monsanto Company (NYSE: MON) announced today the completion of a licensing agreement for next-generation technology for insect control in corn for the U.S. and Canada that will expand options for farmers fighting corn rootworm, dubbed the “billion dollar bug” for the damage it causes. Corteva Agriscience™ will receive a license to stack Monsanto’s Corn Rootworm III and MON89034 traits with Corteva Agrisciences’s insect control traits. This agreement enables the development of the next generation of insect control technology for above and below ground insect pests, and will be offered with the Enlist® herbicide tolerant trait for corn. Financial details of the agreement are not being disclosed.

“This collaboration demonstrates the commitment Corteva Agriscience™ has to bringing greater choice to growers, helping them increase their productivity and profitability,” said Tony Klemm, Global Corn Portfolio Leader, Corteva Agriscience™, Agriculture Division of DowDuPont. “The combination of Corn Rootworm III with Corteva Agriscience™ molecular stack for insect control and the Enlist® corn trait will give our customers the ability to protect yield while extending the durability of industry-leading insect trait technology.”

“Monsanto’s broad licensing approach continues to put valuable, cost-effective tools into the hands of farmers when they need them most,” said Calvin Treat, Monsanto’s Global Soy and Corn Technology Lead. “We view this agreement as an endorsement for the novel mode of action that Monsanto’s Corn Rootwoom III trait brings to farmers, as it builds on the current products planted today by adding a new RNAi mode of action that enhances effectiveness against one of the industry’s most destructive insect pests. Corn Rootworm III offers increased control and additional durability against the corn rootworm by providing three distinct methods of protection. Through the use of RNAi we’re able to target and control rootworms with a novel mode of action that’s different than the Bt class of proteins that is used in other insect-control products.”

This new next generation product combines Corteva Agriscience™ molecular stack for insect control and Enlist® with Monsanto’s Corn Rootworm III and MON89034 (Bt) to create a broad-spectrum insect control product with multiple modes of action for above- and below-ground pests. Pending applicable regulatory reviews, it will be offered with the Enlist® tolerant trait for corn, which provides tolerance to new 2,4-D choline, and FOP herbicides in addition to the base glyphosate tolerance. This brings additional benefits to farmers, offering more weed control options and greater flexibility.