Monday July 2 Ag News

Can I Irrigate Animal Manures On Growing Crops? 
Rick Koelsch - Livestock Environmental Engineer

The high rainfalls experienced in recent weeks have left many feedlot holding ponds full and operators looking for irrigation options to apply animal manure during the growing season. This article focuses on important considerations for applying open-lot holding pond effluent and diluted manures during the growing season without damaging the crop. There are three take-home messages from this article:
-    Under the wrong circumstances, animal manure/effluent applied to growing crops can damage plant tissue and impact yields. However, good alternatives do exist during the growing season.
-    Under some unique circumstances, the salts in manure/effluent can impact soil salinity, but these circumstances are not common and can be avoided.
-    A few important questions should be asked before applying animal manure/effluent to a growing crop.

Irrigated animal manures/effluent can be an excellent replacement for commercial fertilizer with crop yield maintained or increased. For example, a research team from Colorado State and Iowa State universities demonstrated that “sprinkler-applied swine effluent at the recommended agronomic rate resulted in maximum yields and minimal N accumulation below the crop root zone.” The study further noted that “applications of swine effluent at different times during the growing season appear to be effective … as no plant leaf burn was observed, even at high application rates.”

Salt Damage to Crop Tissue
Soil, manure and water salinity are measured by electrical conductivity (EC). The most commonly used EC units are deciSiemens per meter (dS/m).

Crop damage from sprinkler irrigation of manures with higher levels of electrical conductivity has been observed because of the direct contact of salts with plant tissue. Consider these factors:
-    Knowledge of manure’s salt concentration (or electrical conductivity) is essential. Measuring manure/effluent EC with a low-cost electrical conductivity meter (or laboratory test) is essential prior to application. Retired UNL soil scientist Charles Shapiro observed that liquid manures with an EC greater than 6 dS/m should not be applied to soybeans during early vegetative growth stages (Shapiro, 2005). Electrical conductivity below 12 dS/m was tolerated when the manure/effluent was applied at flowering. The Colorado State research cited above used swine lagoon effluent ranging from 4 to 5 dS/m on corn without concerns.
-    Shapiro observed that corn was more tolerant than soybean; damage in corn was only observed for an EC of 20 dS/m. Another researcher suggested that plant tissue susceptibility to injury varied according to crop and included the following, listed from least to greatest susceptibility: sugar beets < cotton < barley = sorghum < alfalfa < potato.
-    Plants at a later stage of growth are “less” susceptible to tissue damage from salts. As shared above, soybeans tolerate animal manures at flowering stage much better than in early vegetative stage. Shapiro observed that in corn, application at V8 with higher strength manure (20 dS/m) caused some yield loss. Corn leaf damage was observed when applied at V14 stage, but yield responded positively.
-    Research has generally suggested that hot, dry, windy conditions producing high evapotranspiration rates increase the risk of plant tissue damage from manure irrigation.

Salts and Soil Salinity
Plants also can be damaged due to increases in soil salinity. Of greatest concern is a sudden increase in soil salinity that may occur in sandy soils with low buffering capacity when soil water in the root zone is depleted. If these conditions exist, manure application should be avoided.

In most Midwest conditions, saline soils are uncommon as sufficient rainfall occurs to flush accumulated salts from the root zone. Monitoring soil salinity during regular soil testing is a good check for potential concerns that might develop in low spots, areas with poor drainage, or from frequent repeated applications. Excellent information on managing soil salinity and crop tolerances is shared in a Colorado State Extension publication, Managing Saline Soils (Cardon, 2007).
Best Practices for Protecting Manure-Irrigated Crops

When selecting a growing crop to receive irrigated manure/effluent, consider the following questions to help minimize your risk:
-    What is the electrical conductivity of the manure/effluent being used? Manure/effluent with an EC of 6 dS/m or less should be acceptable for soybeans while values of 12 dS/m or less should be acceptable for corn.
-    If manure/effluent EC is higher than recommended, is fresh water available for dilution?
-    Can application be delayed or can it be applied on a more mature crop? The leaves on more mature plants are less permeable to salt absorption.
-    Is there access to a hay crop that has been recently harvested with modest leaf growth to be damaged? Application to a recently harvested hay crop may be a preferred option.
-    Can manure/effluent be applied at a time when evapotranspiration is lower? Evapotranspiration and risk of tissue damage is greatest during hot, dry, windy conditions. Application during evening or early morning should be more favorable.
-    If applying to a sensitive crop or stage of growth, could manure/effluent application be quickly followed with a clean water rinse for the crop? Removing salts from leaf surfaces can minimize or prevent damage.
-    Is there enough water storage in the soil profile to allow the applied effluent to infiltrate and avoid surface runoff?

Summary
Manures and runoff from feedlots can be valuable nutrient resources for applying to growing crops. Asking a few important questions about risks of salt damage to plant tissue can protect crops while maintaining animal manures as a positive crop resource. For more information on irrigating with effluent, see Application of Liquid Animal Manures Using Center Pivot Irrigation Systems (Nebraska Extension EC778).



 SURVEY RESULTS INDICATE RISING COST OF CUSTOM MACHINERY OPERATIONS

Results from the University of Nebraska–Lincoln’s 2018 Custom Rates Survey indicate rising costs for machine hire operations and related services since the survey was last conducted two years ago. The survey of custom operators summarizes the current rates charged for specific machinery operations commonly used by agricultural producers.

Survey participants reported a state average labor rate of $18.85, which is 6 percent higher than in 2016. With diesel costs on the rise in 2018, $2.46 per gallon was the average farm delivered diesel price for the state, up from the 2016 rate of $1.68 per gallon. 

Similar to two years ago, 2018 survey participants reported noticeable increases with some custom machine hire rates. For example, planting row crops with row cleaners went from $18.91 per acre in 2016 to $21.12 per acre in 2018, while drilling soybeans with a no-till drill went up just slightly to $18.02 per acre from $17.76 per acre.  Harvest rates for fall crops generally stayed in the same range as the prior survey; however combining irrigated corn using a flat rate per acre is at a state average of $38.22 in 2018, which is $1.00 to $3.00 per acre higher than previously reported.     

“It is important for custom operators to take into account machinery, fuel and labor costs as rates are determined. Necessary expenses vary across the state as local demand and availability of labor may affect costs,” noted Glennis McClure, farm and ranch management analyst and extension educator. “While the Custom Rates Survey report may serve as a guide, farmers and ranchers are reminded to use their own judgment and consider their costs when negotiating custom operation rates.”

Findings from the survey are divided into two major sections. Part one includes spring and summer operations such as tillage, planting and harvesting of small grains. Part two includes information about fall and miscellaneous operations. Custom rate summaries in these sections include regional rates for the eight Nebraska Agricultural Statistics Districts and the overall state. A total of 151 custom rates on machinery operations and related services were reported as part of the 2018 survey with 227 survey participants providing information on the various rates. Custom rates reported include charges for the use of necessary equipment, fuel, labor and supplies, such as baling wire or twine, provided by the custom operator. Seed, fertilizer and chemical costs are not included.

For those interested in learning more about custom rates, McClure will be hosting a webinar on July 24 at 12:30 p.m. CT. The webinar is free to view and can be accessed at go.unl.edu/custom-rates.

The full 2018 Custom Rates Survey report is published as Nebraska Extension Circular (EC) 823 and is available online at go.unl.edu/custom-rates.



Nebraska Beef Council July Meeting

The Nebraska Beef Council Board of Director's will meet at the NBC office located at 1319 Central Ave. on Monday July 16th, 2018 at 7:30 a.m. CDT. The NBC Board of Directors will listen to presentations from outside contractors for the fiscal year 2018-2019. Followed by funding decisions for 2018-2019. For more information, please contact Pam Esslinger at pam@nebeef.org. 



Northwest Research and Demonstration Farm Field Day Set for July 11

Farmers and the public are invited to attend a farm field day on Wednesday, July 11, at the Northwest Iowa Research and Demonstration Farm near Sutherland. Check-in and registration will begin at 9 a.m. with the program starting at 9:30 a.m.

Iowa State University Extension and Outreach specialists will present timely research and crop production information throughout the morning. Topics and speakers will include:
-    On the Edge - Bioreactor and Saturated Buffer Models presented by Iowa Learning Farms staff.
-    Iowa Water Quality and Research at the Northwest Iowa Research Farm presented by Matt Helmers, professor and extension agricultural engineer at Iowa State.
-    Surrogate Nitrate Measurement Methods presented by Girma Birru, post-doctoral associate in agronomy at Iowa State.
-    Iowa Windbreak Management presented by Jesse Randall, associate professor and extension forestry specialist at Iowa State.
-    Agronomic Issues from the 2018 Growing Season by Joel DeJong and Paul Kassel, field agronomists with ISU Extension and Outreach.

“The field day will give farmers and the public a chance to see current research projects and talk with the researchers involved in the experiments,” said DeJong. “Attendees also will be able to ask questions and hear about the latest in the agriculture industry. Anyone and everyone is welcome to attend, and Certified Crop Credits will be available.”

A noon lunch will be available for a minimal charge.

The Northwest Iowa Research and Demonstration Farm is located at 6320 500th Street near Sutherland, Iowa. That’s 1/4 mile east of Highway 59 on B-62, about two miles south of Calumet or about 12 miles north of Cherokee.

For more information about the ISU Northwest Research and Demonstration Farm Field Day, contact Joel DeJong at 712-546-7835 or jldejong@iastate.edu.



Second Edition of Soybean Aphid Field Guide Available for Free Download or Purchase

The second edition of the “Soybean Aphid Field Guide” is now available for free PDF download through the Iowa State University Extension Store. A physical copy soon will be available for purchase through the Store and through the North Central Soybean Research Program. The second edition revisits the 2013 guide and encompasses 62 pages complete with updated photos and graphics for soybean aphid management.

While the guide includes updated information on soybean aphid, new to the guide is a decision-making flowchart. Through 2017, failures of pyrethroid insecticides to control aphid population have been confirmed in Minnesota, North Dakota, South Dakota and Iowa. To help equip farmers with the information needed to combat pyrethroid-resistant soybean aphids, as well as to make both economical and responsible decisions on pest management, the second edition illustrates a step-by-step management strategy.

“The Soybean Aphid Field Guide is a valuable resource for farmers and crop consultants that want to learn more about this economic pest,” said Erin Hodgson, associate professor and extension specialist in entomology. “Readers will have a better understanding of how to manage this pest profitably and sustainably.”

One of the features of the new edition is trial data from several research farms on aphid population responses to various insecticides, as well as scouting tips to efficiently and timely identify aphids on soybean plants in order to make the best insecticide decisions.

“For many farmers in the north central region, soybean aphid is the primary soybean insect pest,” Hodgson said. “This revised field guide has updated information on insecticide selection to improve management and ultimately profit margins.”

The second edition of the Soybean Aphid Field Guide is result of several funding partnerships including the North Central Soybean Research Program, the Minnesota Soybean Research Council and Iowa State University Extension and Outreach.



New Study Finds Lean Red Meat Can Support Heart Health

According to new research published in the American Journal of Clinical Nutrition, following a Mediterranean-style eating pattern that incorporates lean red meat can reduce cardiovascular disease risk factors.

The study compared Mediterranean-style eating patterns with red meat intake from the typical amount, 3 ounces per day, to a lower intake amount, 3 ounces twice per week. The research showed that consuming up to 18 ounces of lean red meat per week lowered cholesterol and lowered blood pressure while following the Mediterranean-style eating pattern.

“Participants’ LDL cholesterol, which is one of the strongest predictors we have to predict the development of cardiovascular disease, improved with typical but not lower red meat intake,” said Lauren E. O’Connor, lead author and a student at Purdue University. “Overall, heart health indicators improved with both Mediterranean-style eating pattern.”

The 41 study participants, 28 females and 13 males, completed the three-phase study. In the first phase, each participant consumed a Mediterranean-style eating pattern containing three ounces per day of lean red meat for a five-week period. The next phase also lasted five weeks and the participants returned to their regular eating pattern. In the third phase, the participants consumed a Mediterranean-style eating pattern with less red meat- only three ounces twice per week. The order of the typical and lower red meat consumption phases were randomly assigned.

The study concluded that adults who are overweight or moderately obese may improve multiple cardiometabolic disease risk factors by adopting a Mediterranean-style eating pattern with or without reductions in red meat intake when red meats are lean and unprocessed.

Eight cuts of pork meet the USDA’s guidelines for “lean,” and the popular pork tenderloin, also used in the study, has the same amount of fat as a skinless chicken breast.

For recipies incorporating lean pork into Mediterranean-style meals, including Mediterranean Pork Kabobs and Herb-Crusted Mediterranean Pork Tenderloin, visit www.yummly.com/page/pork.



President to Delay Signing Revised NAFTA Until After Fall Midterm Elections

(AP) -- President Donald Trump intends to delay signing a revised version of the North American Free Trade Agreement until after the fall midterm elections, a move aimed at reaching a better deal with Canada and Mexico.

Trump said in an interview that aired Sunday that he could quickly sign an agreement with the United States' neighbors, "but I'm not happy with it. I want to make it more fair." Asked about the timing of an agreement, Trump said: "I want to wait until after the election."

The president's decision to push back the NAFTA talks comes as the U.S. and Canada have been engaged in a tit-for-tat trade dispute over Trump's tariffs on Canadian steel and aluminum. Canada announced billions of dollars in retaliatory tariffs against the U.S. on Friday, and the president signaled the trade rattling could continue.

In the interview on Fox News Channel's "Sunday Morning Futures with Maria Bartiromo," Trump again threatened to impose tariffs on imported cars, trucks and auto parts, saying, "The cars are the big ones." The move has been viewed as a possible negotiating ploy to restart NAFTA talks, which could resume following Sunday's elections in Mexico.

If the U.S. moved forward with tariffs on auto imports, it would be a blow to Canada's economy because of the critical nature that the auto industry plays in the country. The U.S. Commerce Department is expected to hold hearings on auto tariffs in late July and to complete its investigation into auto imports later this summer.

Trump has sought to renegotiate NAFTA to encourage manufacturers to invest more in America and shift production from low-wage Mexico to the United States. The talks have stalled over several issues, including Trump's insistence on a clause that would end NAFTA every five years unless all three countries agree to sustain it.

The president has suggested he may pursue separate trade pacts with Canada and Mexico instead of continuing with a three-country deal. But any reworked deal would need to be considered by Congress, and negotiators missed a self-imposed deadline to wrap up the talks by mid-May to allow it to be considered by lawmakers before the November elections.

Trump has clashed with Canadian Prime Minister Justin Trudeau over trade, with the U.S. president tweeting last month after departing the G-7 meetings in Quebec that Trudeau was "weak" and "dishonest."

Trump and Trudeau spoke by phone late Friday after Canada announced it would impose its own tariffs in retaliation for the U.S. tariffs on steel and aluminum imports. Trudeau's office said the prime minister "conveyed that Canada has had no choice but to announce reciprocal countermeasures" to the U.S. tariffs.



Eighth Annual USMEF Latin American Product Showcase Brings Record Turnout of Red Meat Buyers to Dominican Republic

The U.S. Meat Export Federation (USMEF) held its eighth annual Latin American Product Showcase June 27-28 in Santo Domingo, Dominican Republic. The event drew a record turnout of 190 buyers from 20 countries across the Caribbean, Central America and South America. On the exporter side, 54 USMEF member companies participated. The showcase was conducted with funding support from the National Pork Board (NPB), the Beef Checkoff Program, the Nebraska Beef Council, the Wisconsin Beef Council, the United Soybean Board and the Iowa Soybean Association.

“Having been involved in this event from the outset, it’s remarkable to see how much it has expanded and developed over the past eight years,” said Dan Halstrom, USMEF president and CEO. “The showcase originated as a way of capitalizing on growing red meat demand and market access gains in Latin America by bringing buyers and sellers together at a single location. In a just a short time it has blossomed into a can’t-miss event that sells out more quickly each and every year, and there is now a waiting list for exhibitors. This has happened for one simple reason – the showcase consistently delivers great results for participants.”

Mark Spengler of Greater Omaha Packing Company, a regular exhibitor at the showcase, emphasized that the quality of the business contacts sets it apart from similar events.

“The quality of the buyers that USMEF brings to this event and exposes to the U.S. supplier trade is really second to none,” Spangler said. “This is one of my favorite USMEF events anywhere in the world – I wouldn’t miss it for anything. And it’s not just a great event for suppliers, it’s also an amazing opportunity from the buyers’ perspective. If they can’t find a supplier here, I’m not sure where they would find one.”

First-time exhibitors also found the showcase to be extremely productive.

“I was really surprised by the magnitude of this event,” said Bob Giertz, international sales representative for Indiana Packers Corporation, a premium pork supplier based in Delphi, Indiana. “There was very strong interest from buyers in a wide range of our pork cuts. It was a great show for us, and we certainly plan to be back.”

Jevon Butler from Nassau, Bahamas, was a first-time participant as a buyer. As sales and marketing manager for Milo Butler Distributors, a family-owned business that supplies supermarkets and other retail outlets in the Bahamas, he found the showcase to be an excellent venue for establishing direct business relationships.

“What this showcase did for me was connect the dots,” Butler said. “Often we deal with a middle man we’re purchasing from, but we never get to meet the packing houses – we don’t get to meet those suppliers. The showcase allowed us to see the entire integration, the whole supply chain, so we could get a better appreciation for how the meat is produced.”

Butler added that while the Bahamas is best known as a tourist destination, the local supermarket customers served by his clients are definitely seeking high-quality meat.

“The reason is that these local residents are working in an environment that’s offering Prime grade and high quality,” Butler explained. “So working around it seven days a week, when they go home they want the same thing. And they are willing to pay for it.”

Representatives of producer organizations that help fund the Latin American Product Showcase received a firsthand look at the business generated at the event. Ivan Rush, a cattle producer from Scottsbluff, Nebraska, and a member of the Nebraska Beef Council, said he was pleased to see the personal interaction between buyers and sellers at the showcase.

“People meeting people is very important in international trade, and seeing this level of activity – exporters renewing old acquaintances as well as meeting new customers – it’s very impressive,” Rush said. “We producers certainly depend on exports and we know that they provide a tremendous amount of dollars back in our pockets. So I’m really excited to see a strong future for exports, because that will continue to drive profitability for our operations.”

“The Latin American market is one that the National Pork Board leadership has designated as incredibly important for our international marketing activities,” said John Schwartz, a pig farmer from Sleepy Eye, Minnesota. “Having the opportunity to directly engage with nearly 200 leading meat buyers, see how our products are marketed and learn from the influencers in the room has been an invaluable experience.”

Schwartz noted that diversifying international destinations for U.S. pork is increasingly important, and investing in the Latin American region advances that goal.

“With the trade rifts we’re seeing and the recent increases in tariffs, diversifying our export markets is very important and Latin America is a unique market. It’s an accumulation of a lot of smaller countries, but together they present a huge opportunity.”

Randy Spronk, a producer from Edgerton, Minnesota, who serves on the NPB International Marketing Committee and the USMEF Executive Committee, said he appreciates seeing value added to his animals through global marketing efforts such as the showcase.

“I’m really the dirt-under-his-fingernails pig farmer, the guy that actually raises the pigs,” Spronk said. “So it’s great to see so many exporters – the key people that we sell our product to – participating in this showcase. They’re representing me by merchandising my product in a foreign market, and that’s what I think is important to see from a producer’s standpoint.”

Pork and beef industry leaders attending the showcase also had an opportunity to experience the retail market in Santo Domingo. They visited a traditional wet market, where a large percentage of the fresh meat consumed in the Dominican Republic is still sold. The group also toured a La Sirena supermarket where USMEF is currently conducting a World Cup-themed U.S. pork promotion. Their final stop was Meat Depot, a high-end butcher shop, specialty grocery store and restaurant that features U.S. pork and beef.

“One of the real highlights of the tour was to see full bone-in pork loins – exported from the United States and processed here – smoked, sliced and presented in the meat case,” Spronk said. “We’re looking for additional, high-value markets for loins, and I think Latin American can be that type of market for us.”

The Latin American Product Showcase also included educational seminars open to all participants. The opening day program featured Josue Merced-Reyes, president of Inter E Marketing, who presented research and insights on effectively marketing to millennials by developing a better understanding of the factors driving their food choices. On Thursday, Halstrom gave a detailed overview of U.S. pork and beef production trends, noting that ample supplies have eased prices and created additional buying opportunities for businesses in the Latin American region. He added that trade tensions and retaliatory tariffs imposed by Mexico and China may also open a window of opportunity for buyers in the region as exporters look to further diversify international destinations for their products. Elizabeth Wunderlich, USMEF Caribbean representative, followed with a presentation highlighting U.S. pork, beef and lamb cuts that fit emerging needs within the Latin American region’s foodservice and retail sectors.

Gerardo Rodriquez, USMEF marketing director for Mexico, Central America and the Dominican Republic, said feedback from both exporters and buyers was overwhelmingly positive, as the Latin American Product Showcase continues to gain momentum as the region’s premier gathering of red meat industry professionals.

“For a packer or trader who wants to meet with buyers from 20 countries across this region, it would take them three or four weeks,” he said. “But here at the showcase they can do it in two days, and that’s really one of the great successes of this event.”



Kansas Announces Cattle Trace Pilot Program for Disease Traceability

Governor Jeff Colyer and Secretary Jackie McClaskey joined leaders from the Kansas livestock industry on Saturday, June 30, at Barton County Feeders in Ellinwood to announce the Cattle Trace pilot project. Cattle Trace is a public-private partnership which will develop and test a purpose-built cattle disease traceability infrastructure in Kansas that will guide discussion and development of traceability on a national scale.

“Kansas is home to the finest beef producers and operations in the nation,” said Colyer. “We are proud that the Kansas beef industry has taken the lead in this important project that will enhance our ability to protect cattle health here and across the nation.”

Cattle disease traceability is an important component in the overall biosecurity of the U.S. beef cattle industry, playing a significant role in resuming and maintaining commerce in the event of a disease outbreak. The development of a viable end-to-end cattle disease traceability system is a top priority in the beef industry in Kansas and nationwide.

“KLA members have long recognized the importance of traceability for animal disease purposes to help protect their livelihoods and the industry,” said Kansas Livestock Association Chief Executive Officer Matt Teagarden. “We are excited to be part of this effort to move traceability forward for Kansas producers and ultimately the entire U.S. livestock sector.” KLA members amended policy in December 2017 to support mandatory cattle disease traceability for all ages of cattle. This policy shift provided momentum across Kansas to take action.

From end-to-end, each step of the beef cattle supply chain exists in Kansas, positioning the state well to test an expanded system capable of informing and guiding development of an enhanced traceability system on a national level.

“We have the opportunity to develop a cattle disease traceability system on our terms. The capabilities of Cattle Trace will enable us to do the right thing for animal health and biosecurity, and for the entire U.S. beef cattle industry,” said Brandon Depenbusch, vice president of cattle operations for Innovative Livestock Services, a member of the Cattle Trace steering committee. ILS will be one of at least ten feed yards that will participate in the pilot project in addition to livestock markets, cow-calf ranches and beef processors.

In early 2018, the Cattle Trace collaborators began working to develop a purpose-built infrastructure to track cattle movement through the supply chain. Cattle Trace will utilize ultra-high frequency technologies to collect the minimal data necessary, including an individual animal identification number, a GPS location, and date and time, in order to track animals in the event of a disease outbreak. Tag readers will be located at livestock markets, feed yards and beef processors. Movement data collection will begin in fall 2018, and the project will continue for approximately two years.

“We know for a traceability system to be effective, it needs to be simple, fast, and affordable to make its adoption within the industry as seamless as possible,” said Brad White, director of the Beef Cattle Institute at Kansas State University. “We are working to build a system to test today and one that will serve the U.S. beef cattle industry in the future.”

Cattle Trace is a collaborative partnership between Kansas State University, the Kansas Livestock Association, the Kansas Department of Agriculture, USDA, and individual producer stakeholders. It is being jointly funded by public and private resources.

“The development of Cattle Trace is a direct result of proactive leaders in the Kansas beef industry recognizing an opportunity to develop a traceability system that works for producers,” said Secretary McClaskey. “We have seen tremendous leadership from industry partners ready to step up and take an active role on this critical issue.”

For more information about the Cattle Trace project, go to cattletrace.org or contact the program coordinator, Cassie Kniebel, at info@cattletrace.org or 785-564-7446.



USDA Announces Commodity Credit Corporation Lending Rates for July 2018

The U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation, today, announced interest rates for July 2018. The Commodity Credit Corporation borrowing rate-based charge for July is 2.250 percent, the same as 2.250 percent in June.

The interest rate for crop year commodity loans less than one year disbursed during July is 3.250 percent, the same as 3.250 percent in June.

Interest rates for Farm Storage Facility Loans approved for July are as follows: 2.625 percent with three-year loan terms, the same as 2.625 percent in June; 2.750 percent with five-year loan terms, down from 2.875 percent in June; 2.875 percent with seven-year loan terms, down from 3.000 percent in June; 2.875 percent with 10-year loan terms, down from 3.000 percent in June and; 3.000 percent with 12-year loan terms, the same as 3.000 percent in June.



CALIFORNIA TO VOTE ON INITIATIVE DICTATING PRODUCTION PRACTICES IN OTHER STATES

A California initiative that would require egg-laying hens to be “cage-free” and that would prohibit the sale of pork and veal from animals raised in housing the state banned in 2008 was approved for the November ballot. Animal-rights groups, including the Humane Society of the United States, collected more than 660,000 signatures for the measure – only about 366,000 were required to get it on the ballot.

In 2008, California voters approved an initiative that banned so-called battery cages for egg-laying hens, gestation stalls for sows and crates for veal calves. The state legislature in 2010 outlawed the sale of eggs from hens housed in battery cages regardless of where they were raised. The 2018 initiative would extend the sales ban to pork from hogs born to sows housed in gestation stalls, beginning Jan. 1, 2022, and to veal from calves housed in crates, starting Jan. 1, 2019, anywhere in the country. (Egg farmers in the state would need to comply with the cage-free mandate by Jan. 1, 2022.)

The National Pork Producers Association strongly opposes the initiative, which would raise food prices for consumers and restrain interstate trade, a violation of the U.S. Constitution’s Commerce Clause. The clause gives Congress absolute power to regulate trade among the states. The organization is backing a provision in the House Farm Bill that would prohibit states from regulating agricultural practices outside their borders.



Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks

Soybeans crushed for crude oil was 5.17 million tons (172 million bushels) in May 2018, compared to 5.15 million tons (172 million bushels) in April 2018 and 4.74 million tons (158 million bushels) in May 2017. Crude oil produced was 1.97 billion pounds up slightly from April 2018 and up 7 percent from May 2017. Soybean once refined oil production at 1.46 billion pounds during May 2018 increased 2 percent from April 2018 and increased slightly from May 2017.

Canola seeds crushed for crude oil was 131 thousand tons in May 2018, compared to 152 thousand tons in April 2018 and 114 thousand tons in May 2017. Canola crude oil produced was 115 million pounds down 12 percent from April 2018 but up 24 percent from May 2017. Canola once refined oil production at 84.1 million pounds during May 2018 was down 23 percent from April 2018 and down 15 percent from May 2017. Cottonseed once refined oil production at 50.6 million pounds during May 2018 was up 26 percent from April 2018 and up 45 percent from May 2017.

Edible tallow production was 88.7 million pounds during May 2018, up 7 percent from April 2018 and up 21 percent from May 2017. Inedible tallow production was 328 million pounds during May 2018, up 8 percent from April 2018 and up 2 percent from May 2017. Technical tallow production was 109 million pounds during May 2018, up 17 percent from April 2018 and up 2 percent from May 2017. Choice white grease production at 114 million pounds during May 2018 increased 9 percent from April 2018 and increased 4 percent from May 2017.



Grain Crushings and Co-Products Production

Total corn consumed for alcohol and other uses was 524 million bushels in May 2018. Total corn consumption was up 5 percent from April 2018 and up 3 percent from May 2017. May 2018 usage included 91.4 percent for alcohol and 8.6 percent for other purposes. Corn consumed for beverage alcohol totaled 2.92 million bushels, down 6 percent from April 2018 and down 5 percent from May 2017. Corn for fuel alcohol, at 470 million bushels, was up 6 percent from April 2018 and up 4 percent from May 2017. Corn consumed in May 2018 for dry milling fuel production and wet milling fuel production was 91.5 percent and 8.5 percent respectively.

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.97 million tons during May 2018, up 7 percent from April 2018 and up 3 percent from May 2017. Distillers wet grains (DWG) 65 percent or more moisture was 1.40 million tons in May 2018, up slightly from April 2018 and up 1 percent from May 2017.

Wet mill corn gluten feed production was 292 thousand tons during May 2018, down 4 percent from April 2018 and down 15 percent from May 2017. Wet corn gluten feed 40 to 60 percent moisture was 281 thousand tons in May 2018, up 10 percent from April 2018 but down 10 percent from May 2017.



IGC Trims Production Forecast for Current, Next Seasons

The International Grains Council (IGC) said Monday that it has trimmed its forecast for global grain production in 2017-18 to 2,090 million metric tons due to lower-than-expected corn production.

The new forecast is a decrease of 1 million tons from the previous 2,091 million-ton forecast and a 2.3% drop from the previous season's record 2,139 million tons, the IGC said.

The IGC also cut its 2018-19 production forecast, reducing May's estimate by 12 million tons to 2,077 million tons. That figure would mark a second season of declining production after 2016-17's record high. The IGC data revealed that a decrease in corn and wheat forecasts outweighed increases in soybean and rice predictions.

Driving the fall in the 2017-18 global-grain forecast was a 1 million-ton drop in expected corn production, now seen at 1,043 million tons. Soybean forecasts rose 1 million tons to 337 million tons and the IGC's rice was flat at 488 million tons. The report said estimated wheat production remained at 758 million tons.



CWT Assists with 6.9 Million Pounds of Cheese and Whole Milk Powder Export Sales

Cooperatives Working Together (CWT) member cooperatives accepted offers of export assistance from CWT that helped them capture contracts to sell 1.186 million pounds (538 metric tons) of Cheddar cheese and 5.690 million pounds (2,581 metric tons) of whole milk powder going to customers in Asia, the Middle East, and South America. The product has been contracted for delivery in the period from June through December 2018.

CWT-assisted member cooperative 2018 export sales total 40.252 million pounds of American-type cheeses, 11.229 million pounds of butter (82% milkfat) and 15.873 million pounds of whole milk powder to 28 countries on five continents. These sales are the equivalent of 740.059 million pounds of milk on a milkfat basis.

This activity reflects CWT management beginning the process of implementing the strategic plan reviewed by the CWT Committee in March. The changes will enhance the effectiveness of the program and facilitate member export opportunities.

Assisting CWT members through the Export Assistance program in the long term helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affects all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.