Monday July 16 Ag News

Farmland Values Hold Steady in Grain Belt States

Farmland values in the grain belt states served by Farm Credit Services of America (FCSAmerica) appear to have adjusted to a new normal. Even with seasonal fluctuations, farmland values have remained generally consistent since 2015.

“Farmland values are largely dependent on geography and have adjusted to reflect their market’s current supply and demand,” said Tim Koch, chief credit officer for FCSAmerica, which tracks the values of 64 benchmark farms in Iowa, Nebraska, South Dakota and Wyoming.

Farmland values peaked in the last half of 2013 in FCSAmerica’s lending territory. Nearly five years later, Iowa has seen the largest drop in values at 17.8 percent, followed by Nebraska at 17.6 percent. South Dakota’s farmland is off 10.8 percent since it peaked in the fourth quarter of 2013.

The five-year mark in the chart below reflects changes in farmland values since the first half of 2013, prior to the market peak. The number of benchmark farms in each state is noted in parentheses.

STATE                - Six Month   -  One Year  -  Five Year  -  10 Year
Iowa (21)                   -  2.1 %  -     3.5%   -    -16.3%      -    71.4%
Nebraska (18)          -  0.1      -     -2.8      -    -12.0      -      109.3
South Dakota (23)  -  -1.4      -     -2.6      -       4.2       -       98.6
Wyoming (2)            -  2.5      -      3.2      -     38.5       -       30.1

Twelve of Iowa’s 21 benchmark farms increased in value in the first six months of 2018, while eight showed no change and one decreased in value. In Nebraska, nine benchmark farms increased in value, seven declined and two showed no change. Twelve benchmark farms in South Dakota showed no change in value, three increased and eight decreased in value. Wyoming’s cropland benchmark farm experienced a 1.0 percent increase in value, while a pasture unit saw no change.

FCSAmerica appraises its benchmark farms twice a year, in January and July. In addition, the cooperative compiles records from farmland sale in its four states. The cooperative’s objective in using the benchmark farms is to track real estate values without the influence of changes in land quality on sale prices.

Overall, farmland prices and the quality of land held steady through the first half of 2018. Public land auctions increased 56 percent in South Dakota, 23 percent in Iowa and 7 percent in Nebraska. However, the overall availability of farmland was unchanged from 2017, with private and realtor sales declining in each state.



Weed Management Considerations Following Hail Damage to Corn or Soybean 
Nathan Mueller - NE Extension Educator

Mid-season weed control relies on a dense crop canopy to prevent or suppress weed growth, even after herbicides may no longer be active. Hail can severely delay or damage crop canopy development, and under these conditions a late weed emergence can occur in canopy gaps, which, if left unmanaged, may result in yield loss, harvest issues, and an increased weed seed bank the following year. An important question arises when hail damage occurs mid-season, especially as crops canopy: “What are effective weed control options?” In answering, a number of factors should be considered.

Herbicides and the Fine Print
-    Crop Growth Stage. Many herbicide applications are limited by the growth stage of the crop at time of application. The Nebraska Extension Guide for Weed, Disease, and Insect Management in Nebraska (EC130) provides helpful information about crop growth limits (pages 174-175). In addition, these Nebraska Extension publications provide information about determining the growth stage for corn (EC126) and soybean (EC128).
-    Replant Options and Rotation Restrictions: Previously applied herbicides for the now-hailed crop will dictate replant options (EC130 pages 176-189). For example, if Fierce (flumioxazin + pyroxasulfone) was applied preemergence in soybean, soybean could be replanted at any time. However, it would not be possible to rotate to grain sorghum due to the 18-month rotation restriction for grain sorghum following Fierce.
-    Grazing Restrictions: Planting forage cover crops after hail could be a viable option, as long as those cover crop do not violate rotation restrictions set by previously applied herbicides, as well as the grazing restrictions for any herbicides applied after the forage cover crop is planted. For example, if Verdict (saflufenacil + dimethenamid-P) was applied in corn, a forage cover crop of oats and red clover could not be planted for grazing until the next cropping season. In addition, since the Verdict was applied to corn, the corn residue following hail could not be grazed until 80 days after application. (See grazing restrictions, EC130 pages 190-193.)
-    Additional Herbicide Applications: To manage late-emerging weeds brought on by hail damage additional herbicide applications may be effective. When making applications, it is important to follow herbicide label guidelines as products will have single and annual application rate restrictions. As an example, if Authority Maxx was applied for preemergence weed control in soybean at the high label rate of 7.5 fl oz/acre, it could not be applied a second time after hail as the label will only allow one full rate per year. The pre-harvest interval is another consideration when making additional late-season herbicide applications following hail, since many herbicides restrict application leading up to harvest to limit potential carry-over in the grain (EC130, pages 174-175).

Herbicides to Consider Using
The herbicides that follow have no growth stage restrictions, relatively short pre-harvest intervals, and would allow rotation to either corn or beans the following season, making them good options for late-season application following hail damage:

Soybean (Herbicide Site of Action):
-    Select Max, Poast (Group 1)
-    Classic, Scepter, Harmony SG (Group 2)
-    Cobra, Phoenix, Ultra Blazer, Resource (Group 14)
-    Warrant- can be applied up to R2 (Group 15)

Corn (Herbicide Site of Action):
-    2,4-D-pre-tassle if directed application (Group 4)
-    Basagran, Buctril-can be applied pre-tassel (Group 6)
-    Impact (Group 27)

As a reminder, always follow current label recommendations and restrictions when applying herbicides.



Reimers-Hild named interim executive director of Rural Futures Institute

Connie Reimers-Hild has been named interim executive director of the Rural Futures Institute (RFI) at the University of Nebraska. She assumed the role upon the June 30, 2018, retirement of Chuck Schroeder, Founding Executive Director of RFI.

Reimers-Hild has served in the role of RFI Associate Executive Director since May 2015, leading several strategic priorities and initiating the evaluation efforts of the Institute. She has also keynoted and presented nationally in the areas of future-focused leadership and strategic foresight to strengthen innovation in individuals, communities and organizations. Her most recent invited journal article was published in May 2018, “The future of rural health staffing in America.”

Prior to her role at RFI, Reimers-Hild served as unit leader of the Kimmel Education and Research Center in Nebraska City, Neb. Kimmel was the first public-private partnership of its kind in the nation and served as an example of innovation in Extension. While at Kimmel, Reimers-Hild consulted with more than 20 businesses and hospitals in the areas of leadership and innovation, attained more than $1m in investments and financial support for Extension programming and authored more than 50 publications, including two books.

“In assuming this role, I am full of hope for what meaningful action RFI can accomplish during the next year across three areas of critical need and strength for rural areas: leadership, technology and rural-urban collaboration,” she said in her introductory letter. “We are choosing to create needed focus for RFI’s energy and needed clarity around RFI’s role within the University of Nebraska system, the state of Nebraska and as a catalyst of innovation for rural areas around the country.”

Reimers-Hild holds a doctorate in human sciences with a focus on leadership studies, a master’s degree in entomology and a bachelor’s degree in natural resources from the University of Nebraska–Lincoln. She also holds a certificate in strategic foresight from the University of Houston, a certified professional coach designation from the International Coach Academy and a strengths coaching certification through Gallup. She lives with her husband and two children in rural Nebraska.



American Dairy Coalition (ADC) Rolls Out Initiative to Take Back the Word “Milk”
   
The American Dairy Coalition (ADC) has rolled out a new initiative to advocate for the proper use of federally standardized terms established for the word “milk” on product labels entitled the Protecting Milk Integrity Initiative .  A branch of ADC, the Protecting Milk Integrity Initiative will work to provide clarity and consistency for consumers across the nation.  

This new initiative has been rolled out as the FDA gears up for its “ Multi-Year Nutrition Innovation Strategy; Public Meeting; Request for Comments” that will take place July 26. This meeting will discuss the possibility of expanding the “standard of Identify” used to define the word milk.  According to the current standard of identity, milk is defined as the lacteal secretion obtained by complete milking of one or more healthy cows.  It is crucial the dairy industry speaks up to ensure the FDA understands how important it is not only for the current standard of identity for milk to be upheld, but for it to be fully enforced -- restricting the use of the word “milk” on all future plant-based alternative product labels.

Dairy farms are going out of business at an alarming rate and the price of milk continues to decline. Meanwhile, the sales of plant-based alternatives are up 61 percent over the past five years and are projected to continue to gain market share into the future. As the consumption of fluid milk continues to decrease, we simply can no longer stand by and let deceitful plant-based alternative beverage marketing tactics slide by unchallenged.

Non-dairy plant alternatives are not equivalent to milk in nutrient value, despite marketing techniques that attempt to brand them as so. These dishonest branding techniques make it extremely difficult for consumers to select products that will meet their dietary needs and the needs of their children.

The Protecting Milk Integrity Initiative has developed a petition to collect signatures, will be submitting public comments and will be taking donations to raise money towards fighting this cause.  To learn more about the “Initiative” and what you can do to “protect the integrity of milk , ” please visit: http://www.americandairycoalitioninc.com/the-integrity-initiative.html.  



Under Secretary McKinney Leading SE Asia Trade Mission

U.S. Department of Agriculture Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney will lead a trade mission July 16-19, joined by U.S. business and state government leaders seeking to expand agricultural export opportunities in Southeast Asia.

The mission will be based in Jakarta, Indonesia, but will also include delegations of buyers from Malaysia and the Philippines who are interested in purchasing U.S. farm and food products.

"USDA trade missions are an incredible opportunity for companies looking to branch out into new markets," McKinney said. "Participants have the chance to forge personal relationships with potential customers and learn first-hand about the ins and outs of doing business in those markets."

Like the rest of Southeast Asia, Indonesia, Malaysia, and the Philippines are experiencing rapidly growing economies, increasing middle class populations, and continuing urbanization -- all factors contributing to favorable conditions for U.S. export expansion.

Trade mission participants include leaders from the Georgia and Idaho departments of agriculture, as well as representatives from the following companies and organizations:
1. Agri Export International, LLC, Columbia, S.C.
2. Alltech, Nicholasville, Ky.
3. Bridgepathway, LLC, Jericho, N.Y.
4. Clarkson Specialty Lecithins, LLC, Decatur, Ill.
5. Food Export USA, Philadelphia, Pa.
6. Global Export Marketing Co., Ltd., New York, N.Y.
7. Green Plains Inc., Omaha, Neb.
8. Growth Energy, Washington, D.C.
9. Hudson Exports, Edison, N.J.
10. Inkrumah Agriculture, Export, & Food Services, Inc., Atlanta, Ga.
11. JM Grain, Garrison, N.D.
12. Marinelli Shellfish, Seattle, Wash.
13. Marquis Energy, Hennepin, Ill.
14. Ozone Trading, LLC, Ballwin, Mo.
15. Premium Peanut, Douglas, Ga.
16. Raisin Administrative Committee, Fresno, Calif.
17. Sun World International, LLC, Bakersfield,, Calif.
18. Super Lumber Limited, Savannah, Ga.
19. That Crazy Bee Guy!, Springfield, Ohio
20. Trenwell, LLC, Miami, Fla.
21. United Global Trading, Dallas, Texas
22. University of Illinois at Chicago, Chicago, Ill.
23. U.S. Grains Council, Washington, D.C.
24. U.S. Soybean Export Council, Chesterfield, Mo.



Perdue Applauds President Trump’s Selection for USDA’s Undersecretary of Research, Education and Economics

U.S. Secretary of Agriculture Sonny Perdue today applauded President Donald J. Trump’s selection of Dr. Scott H. Hutchins to be Undersecretary of Research, Education and Economics (REE) for the U.S. Department of Agriculture (USDA). Following the announcement, Secretary Perdue issued the following statement:

“I am very excited by the selection of Dr. Hutchins for this leadership role at USDA. His extensive background in research and commitment to sound science and data make him exceptionally qualified for this post, and I am eager to have Dr. Hutchins join the team.

“USDA now has four highly qualified nominees awaiting action in the Senate Agriculture Committee. It is my hope the committee moves expeditiously to consider these highly qualified individuals as soon as possible. In addition, I also look forward to the full Senate voting on our General Counsel nominee as soon as possible.”



USDA Statement on SNAP Access at Farmers Markets  

In response to the recent news about access to farmers markets for participants in the Supplemental Nutrition Assistance Program (SNAP), Food and Nutrition Service Administrator Brandon Lipps offers the following statement:

“The Food and Nutrition Service (FNS) was recently informed by a major provider of mobile EBT technology for farmers markets and farm stands that it will discontinue this service. With few providers in this marketplace, this is of great concern.

Farmers markets play an important role in providing Americans with access to nutritious foods. FNS is committed to encouraging farmers market participation in the SNAP, to improve access for low income Americans while supporting economic opportunities for farmers and producers.

Since being notified of the provider’s decision to discontinue service, USDA has been exploring all available options in an attempt to avoid a service disruption. Our number one goal is to mitigate the impact on our program participants as well as farmers and producers.”

Here are some facts you should know about SNAP and farmers markets:
-    By law, states are required to provide no-cost options for farmers markets and certain other retailers to accept SNAP. USDA reimburses states for 50 percent of these costs, like most other administrative expenses. The law does not require those solutions to be wireless, but FNS strongly encourages states to support wireless options.
    
-    If state options are not feasible for a particular market, impacted markets and farmers may opt to seek their own wireless point-of-sale equipment or accept payment from SNAP participants by using paper vouchers.
    
-    Recognizing that using traditional wired systems can be challenging for farmers markets and farm stands, Congress has approved $4 million each year in the President’s annual budget requests to allow USDA to provide EBT equipment to eligible markets and farmers.
    
-    When the funding became available in 2012, FNS provided the funding to states as grants to provide wireless EBT equipment to eligible markets and farmers, but found that states were not using the funding, though it was available for up to 5 years.
    
-    Because of lack of interest from the states, FNS opted to provide wireless equipment grants directly to markets and farmers beginning in 2013. The grant funding does not cover long-term costs of operating the mobile equipment or subsidize the service provider. The grant funding is sufficient to cover start-up costs for markets and farmers who are not currently accepting SNAP, so that they can expand their customer base to a level that will support the ongoing business costs associated with mobile transactions.
    
-    Throughout the program, FNS has worked with three different contractors; the National Association of Farmers’ Market Nutrition Programs (also known as MarketLink), the Farmers Market Coalition (FMC), and most recently, Financial Transaction Management (FTM). All three contracts were awarded through an open, competitive process that complied with federal contracting law, and the companies were chosen because they were both technically acceptable and the best value. The most recent contract was awarded to FTM in March, and they are required to begin processing applications for wireless equipment from new markets and farmers this month.
    
-    FNS will continue to work with FTM to ensure that markets and farmers have access to this important program. Like previous contracts, it is intended to help new markets get equipment and begin processing SNAP transactions – not serve as a permanent support. FTM has no role in supporting those markets equipped under previous contracts.

Moving forward, FNS will continue to work with interested mobile payments providers, while seeking to modernize the approach by employing a bring-your-own-device model for accepting SNAP EBT transactions, Food Insecurity Nutrition Incentive (FINI), and electronic payments from the Special Supplemental Nutrition Program for Women, Infants and Children (eWIC). Under this approach, business operators would purchase their own-point-of sale-equipment such as mobile phones and/or transaction terminals.

USDA is committed to providing excellent customer service to all of our diverse stakeholders, including those who operate our programs and those whom our programs serve. Our partners include program participants, state agencies, local operators, Congress, national and regional partners, local leaders and elected officials, retailers, and the American taxpayer. Together, we must ensure that our programs serve participants well.



USDA Announces Kickoff of Feds Feed Families Campaign

The U.S. Department of Agriculture (USDA) today kicked off the annual government-wide Feds Feed Families campaign. The food drive is an annual event in which Federal employees in the Washington D.C. metropolitan area and throughout the country collect food for distribution to food banks, food pantries, and shelters. The 2018 food drive will run through October 18.

“USDA has a great opportunity through Feds Feed Families to help those less fortunate,” said Agriculture Secretary Sonny Perdue. “It really holds true to our motto, ‘do right and feed everyone.’ I am confident we’ll make this another successful year and leverage the spirit of service that’s shared by every Federal employee to help our local food banks assist their communities.”

Feds Feed Families started in 2009 and USDA is leading this year’s effort in collaboration with the Chief Human Capital Officers Council and other department and agency partners across the government. All federal agencies across the country participate in the campaign and federal employees are asked to donate non-perishable food items throughout the summer.

USDA is encouraging government employees to "beat our best" and donate more than 17.9 million pounds of food this year. Last year, the nationwide effort reached a collection goal of more than 10.4 million pounds of non-perishable goods for food banks. Donations made in the Washington D.C. metropolitan area will go to food banks through a partnership with the Capital Area Food Bank, which distributes them through its network of more than 500 partner organizations.

Field donations, those not in the Washington D.C. metropolitan area, go to local food banks throughout the country – having a positive impact to help address food insecurity. USDA estimates that 12.3 percent of American households were food insecure at least some time during the year in 2016, meaning they lacked access to enough food for an active, healthy life for all household members.

This year, USDA is focusing on collecting nutritious foods, both canned and fresh when possible, that are high in fiber and reduced in fat, sugar, and salt. Some examples of healthy food items include canned fruit in light syrup or their own juices, dried fruits, 100-percent juice drinks, granola bars, low-sodium soups, no salt added vegetables, whole grain cereals, brown rice, oatmeal, and whole wheat pasta. Canned proteins including peanut butter, beans, salmon, and tuna also are encouraged.

USDA is also continuing its focus on gleaned donations. Gleaned donations are perishable food items collected in-field or warehouse harvesting events. Examples of such items include fresh berries, potatoes, carrots, peas, watermelons, and broccoli.



Texas and Kansas Tours Highlight Opportunities For Chinese Sorghum Buyers 

The U.S. Grains Council (USGC) – in cooperation with the United Sorghum Checkoff Program, the Kansas Grain Sorghum Commission and the Texas Grain Sorghum Association – are hosting top Chinese sorghum importers in the United States to learn more about U.S. sorghum production and strengthen relationships with U.S. sorghum suppliers.

The team will learn about sorghum production, buying strategies and develop relationships with U.S. sorghum suppliers at all levels of the value chain as sorghum demand from China rebuilds following trade challenges early in 2018.

After trade tensions were heightened between the United States and China earlier in the year – demonstrated by an anti-dumping and countervailing duty investigation brought by the Chinese government regarding sorghum – this team visit is a bright spot that signals relations between the two countries are once again moving in a positive direction.

“The Council is pleased to be a part of this important work to maintain communication and strengthen relationships between the U.S. and China,” said Tom Sleight, USGC president and chief executive officer.

“Even with a moderate tariff on U.S. sorghum, demand – especially in southern China – continues. It’s just another reason to highlight with these top sorghum importers and end-users how the U.S. can be a competitive supplier with this year’s crop. These importers and feed mill representatives have the opportunity to see the full U.S. sorghum value chain – from crops in the field to elevators and port facilities. Trips like these encourage increased use and purchase of U.S. sorghum between the two countries while satisfying our mission of developing markets, enabling trade and improving lives.”

The visit will highlight the entire sorghum value chain for the Chinese buyers in an effort to encourage more U.S. sorghum sales to China.

"This is one of many important opportunities created by the Sorghum Checkoff and U.S. Grains Council to foster and maintain valuable market relationships with end users in China," said Verity Ulibarri, Sorghum Checkoff chairwoman. "This team from China is anxious to meet with U.S. producers and continue learning about our product even with newly implemented tariffs on U.S. sorghum and other goods, and we look forward to providing that hands-on education experience they expect while demonstrating the quality, condition, logistics and price that continue to drive demand for U.S. sorghum in China."

The 11 team members – whose imports account for more than 50 percent of China’s total U.S. sorghum imports – will first make stops in Texas including a multi-facility grain company, two farming operations, a visit to the Port of Houston and a global merchant for agricultural commodities.

"Texas growers are anxious to meet with Chinese end-users slated to be in the U.S. and discuss a number of issues, including ways to improve exporting grain sorghum to China," said Jay Wilder, Texas Grain Sorghum Association president. “Our producers understand the value of having our international end-users on their farms and businesses and embrace conversations about quality and trade. This is a great opportunity for our producers to not only teach about grain sorghum but also to learn from our key consumers how their businesses function and what attributes make sorghum one of the top exports from Texas to China."

After spending time in Texas, the team will head to Kansas where they will participate in a traders meeting, visit a grain marketing company, travel to an ethanol plant and participate in an outing to several farms, including a large farm enterprise with feed milling and a livestock operation.

"At this time, in particular, we must engage buyers around the world,” said Jesse McCurry, executive director for the Kansas Grain Sorghum Commission. “We have a quality product that we want to sell. Kansas sorghum farmers are excited to host our friends and show off our ready supply.”

With the support of Market Access Program (MAP) and Foreign Market Development (FMD) program funding from the farm bill and funding from USCP, the Council and the Sorghum Checkoff continue to form and strengthen relationships with sorghum buyers in China. This approach to building bridges and growing markets helps facilitate continued trade with countries around the world.

China has become a top customer for U.S. sorghum despite policy concerns in recent months. U.S. sorghum sales to China took off during the 2013-14 marketing year, with a value of $1 billion since then.



 Argentina Corn Crop Forecast to Continue Shrinking Amid Drought

The estimate for Argentina's drought-hit corn crop may be cut further from the 32 million tonnes currently expected to be harvested this season, the Buenos Aires Grains Exchange and the country's main farmers group said on Thursday.

According to Reuters, a reduced Argentine crop would squeeze global supplies of the feed grain to levels not seen in at least four years. The U.S. Department of Agriculture on Thursday lowered its global end-of-season corn stocks projection for this season to the lowest since 2014, while its 2019 ending stocks outlook was cut to a six year low.

Argentina's normally fertile Pampas grains belt was scorched by a drought that gave way to torrential rains in April, which further complicated harvesting. About 70 percent of the 2017/18 crop has been harvested, the Buenos Aires Grains exchange said in its weekly report.

"Yields remain below the initial expectations," the report said. "Production of later-planted corn in Cordoba province was hurt by lack of ground moisture. If this trend continues, final corn output for the season is likely to be negatively impacted."

The national average yield stands at 6.3 tonnes per hectare. Area losses are estimated at 192,000 hectares, the report said.

The exchange's existing 2017/18 crop estimate of 32 million tonnes would mark a decrease of 7 million tonnes versus 2016/17.

The Rosario grains exchange also expects a 2017/18 Argentine corn crop of 32 million tonnes.



Japan to Allow Imports of U.S. Sheep, Goats For First Time in 14 Years

Japan will begin to accept U.S. sheep and goat exports for the first time in more than 14 years, USDA said Thursday.

The news comes after what USDA described as "extensive" work by department staff and Japanese officials "to establish new terms for market access that are science-based and consistent with international public and animal health standards."

According to POLITICO, Japan banned U.S. lamb exports in December 2003 after it found a case of bovine spongiform encephalopathy in a U.S. cattle herd.



Tim Bratland Appointed President of Legend Seeds

Legend Seeds proudly announces the promotion of Tim Bratland to president, effective August 1, 2018. Bratland's appointment is part of an executive transition that includes prior president, Glen Davis, moving into the role of CEO.

Legend Seeds has entered its 29th selling season in the seed industry as an independent, regional seed leader serving dealers and growers across the U.S. and Canada. Bratland has been involved with Legend Seeds since its beginnings in 1990 when he started cleaning seed for Legend's owners, Glen and Janet Davis. In 2002, he joined the Legend Seeds family and began working with their production division. Since then, Bratland has held several leadership roles within the organization, most recently serving as general manager. This appointment marks the second presidential appointment in Legend Seeds history, formerly held by Glen Davis.

"Tim has played a pivotal role within our organization for over 15 years. He has a true passion for putting our customers first, and values Legend's commitment toward providing high quality, local customer service, while offering the top genetics, traits and technologies in the industry," said Glen Davis.

Bratland brings 28 years of experience in the seed industry, and currently serves as the 2018 Independent Professional Seed Association (IPSA) president which represents the unique needs of independent seed companies and promotes the interests and capabilities of regional seed companies.

"Every day we work to improve our processes, procedures, and structure. We want to understand the needs of our valued customers and ensure we deliver high quality products, support, and service. With our engaged team, and continued focus on these core areas, I am optimistic about our future," Bratland said. "I value my long-standing relationship with Glen and Janet. Working with them is an honor and I'm grateful and excited they've entrusted me to carry on our culture and lead our Legend Seeds family."