Tuesday July 10 Ag News

More than 800 Midwest farmers surveyed on conservation, results discussed in report

Many farmers and ranchers value the opportunity the Conservation Stewardship Program (CSP) offers to enhance their existing conservation efforts, according to a recent survey by the Center for Rural Affairs. Eighty-seven percent of more than 800 respondents, all living in an area with a strong agricultural presence, said CSP should be supported as a priority in the farm bill.

Today, the Center for Rural Affairs released a report, “A farmer’s view: a look at the Conservation Stewardship Program,” which analyzes these survey results and examines the efficacy of CSP in Iowa, Kansas, Nebraska, North Dakota, and South Dakota.

CSP is the largest federal conservation program by acreage that the U.S. Department of Agriculture, Natural Resources Conservation Service administers. The program differs from other working lands programs in that it rewards farmers and ranchers for performing conservation and also provides a path for them to increase levels of conservation for their entire operation.

“The reported positive changes to soil health, water quality, and other natural resources indicate the program is working as it should,” said  Cora Fox, Center for Rural Affairs policy program associate. “Conservation enhancements chosen by farmers and ranchers are meant to address priority resource concerns that are not confined to a single farm or ranch, but rather impact the surrounding region. With enhancements that reduce erosion and prevent water runoff, CSP helps protect our most valued, and shared, resources.”

The states selected were chosen based on their high rates of CSP contracts and acres enrolled in the program, as well as their role as agriculture-centric states. Data was acquired from farmers and ranchers regarding their enrollment and satisfaction with the program. The survey was distributed to 4,799 farmers across five states and 829 usable responses were received.

“The survey results show with CSP, farmers and ranchers can access greater levels of  conservation, see advantages of those practices, and value the education and financial support to help achieve these conservation benefits,” said Fox. “This demonstrates the reassuring conclusion that CSP is working as it should.”

For more information, and to view the report, visit cfra.org/publications/AFarmersViewOfCSP.



Climate and Water Institute Targets Public Decision Makers

Nebraska's communities are increasingly faced with extreme weather conditions, worries about water, and a changing climate. These events can have large impacts on a community economically, through lost tax revenue; physically, when infrastructure is damaged; and socially, with decreased visitors and population. Government officials increasingly have to handle these issues that are becoming progressively complex.

Faculty from Nebraska Extension, the National Drought Mitigation Center, and the UNL School of Natural Resources are partnering to deliver a day-long Climate and Water Institute of Excellence for government officials/employees and other key community leaders and decision-makers.

The Institute will be presented Sept. 7 in Lincoln at the Lancaster County Extension Office (444 Cherrycreek Road) between 9 a.m. and 4 p.m. The Institute was originally planned for county officials, but the program content and discussion pertains to a wide number of professionals. Those working with: government, economic/community development, tourism, recreation, transportation, public works, etc. are all encouraged to attend.

During the Climate and Water Institute experts will talk in laymen's terms about the science and impacts of Nebraska's climate and water plus how these intersect with city and county planning and decision-making. Because Nebraska's climate is changing, a panel of presenters will talk realistically about preparing for future climate conditions. There's also a session about leading policy and decision-making, so that changes in Nebraska's climate and water can be factored into policy discussions at all levels of business and government.

Cost of the workshop is $60 and the registration deadline is August 31, 2018. To start the online registration process or to review the agenda go to http://communityvitality.unl.edu/nacoie.

The Institute, which was held in Kearney last February received good reviews. Several participants said more public officials need to attend. For more information about the Climate and Water Institute of Excellence, contact Nebraska Extension Community Vitality educators, Jessica Jones, jjones12@unl.edu or Carroll Welte, cwelte1@unl.edu.



Transportation Project Works to Improve Soybean's Journey to Market

For soybean farmers in the middle of the United States, loading soybeans onto a barge and sending them down a river is often the most efficient way to move their beans to export position. It is one of the many luxuries of the industry's efficient supply chain, yet this advantage still requires attention and maintenance. The Soy Transportation Coalition (STC) has a new project to stay on top of maintenance needs in the U.S transportation infrastructure.

The STC, made up of thirteen qualified state soybean boards (QSSBs), the United Soybean Board and the American Soybean Association, works to promote a cost effective, reliable and competitive transportation system. In a recent presentation to QSSB staff, STC CEO Mike Steenhoek discussed several new projects that connect the soy value chain in bringing innovation and improvements to the different modes of transportation used to bring soybeans to domestic or international markets.

More than half of U.S. Soybeans are exported, according to the U.S. Department of Agriculture Foreign Agricultural Service.1According to a recent U.S. Soybean Export Council-funded study, in the journey from farm to crushing plant or export position, the average soybean travels 667 miles.By mode, the average move from farm to market requires 74 miles by truck, 377 miles by rail, and 217 miles by barge. This transportation model works efficiently, especially when compared to other countries. However, continual updates and improvements are necessary to keep the system running smoothly. One innovation project from the STC involves a partnership with local government and universities to promote improved bridge load testing technology.

To get to a river port, most farmers drive soybeans over bridges in America's heartland. Bridge weight limits provide safety not only to the drivers and their beans but also to the bridge itself, to prevent unnecessary wear and tear or costly repairs. When bridge weight limits are incorrectly labeled, this can add to the time it takes beans getting to international customers, as farmers may have to travel long distances to get to another bridge that will accommodate them. With accurate bridge load limits, growers can use more direct transportation routes and more efficiently deliver soybeans to market.

According to Peter Vanderzee, president and CEO of LifeSpan Technologies, a company that delivers condition assessment solutions using sensor technology, the Federal Highway Administration (FHWA) requires that every bridge in the U.S. be visually inspected every two years, however in their own 2001 study, the FHWA determined that visual inspections are highly variable with few objective benchmarks. The subjective and variable data is used by State departments of transportation to determine weight restrictions, or load postings, for bridges. According to LifeSpan Technologies and data available from the FHWA, when bridges are classified as structurally deficient based on the visual inspection surveys, more restrictive load postings are typically the next step, resulting in lengthy detours, many of them adding five or more miles and wasted time for drivers of farm machinery and transport vehicles.

Using objective sensor technology to evaluate safe bridge weight capacity can reduce the likelihood of rural bridges having incorrect weight restrictions and load labels. When bridge weight capacity is evaluated and proven to safely accommodate legal highway weight, it allows farmers to take a more direct route they may have been avoiding due to unnecessary weight restriction.

In trials last year, STC joined with LifeSpan Technologies in Midland County, Michigan, evaluating three bridges with sensor technology. Based on the results, Midland County removed all three restrictive load postings. Those three bridges that were evaluated impacted an average of 44 trucks each incurring an extra 81,300 miles per year traveled on average by these trucks.2

In addition to more accurately assessing which bridges can handle more weight, the bridge testing initiative provides data about which the bridges need improvements or work, and about some that are completely inaccessible. STC initially plans to run the project in the thirteen states that participate in the STC and then expand to other states in need of infrastructure improvements, with the goal of hopefully streamlining and getting soybeans to export position as efficient a process as possible.

This project is just one of several currently in action that showcase the U.S. soy value chain working together to continuously innovate and improve the U.S. transportation system, preserving a part of U.S. soy's competitive advantage. To learn more about U.S. transportation projects, visit U.S. Soy's infrastructure project page.



2018 Ethanol Output, Demand Flat

In its latest Short-term Energy Outlook, the Energy Information Administration forecast ethanol production this year and next to average 1.0 million barrels per day (bpd), on par with 2017.

Ethanol consumption, which averaged about 940,000 bpd in 2017, is forecast to be about 940,000 bpd again in 2018 and then rise to 950,000 bpd in 2019, resulting in the ethanol share of the total gasoline pool to increase slightly from an average of 10.1% in 2017 to an average approaching 10.2% by 2019. EIA said this increase in the ethanol share assumes that recent marginal growth in higher-level ethanol blends continues during the forecast period.

On June 26, the U.S. Environmental Protection Agency released a proposed rulemaking that set the Renewable Fuel Standard volumes for 2019 and biomass-based diesel volumes for 2020. EIA used these final volumes to develop the forecasts for 2018 and 2019.

EIA expects that the largest effect of the current RFS targets, along with recent duties placed on biodiesel imports, will be on biomass-based diesel production and net imports, which help to meet the RFS targets for use of biomass-based diesel, advanced biofuel and total renewable fuel.

Biodiesel production averaged an estimated 104,000 bpd in 2017 and is forecast to increase to an average of 131,000 bpd in 2018 and to 144,000 bpd in 2019. The agency said that largely because of recent duties imposed on foreign biodiesel imports from Argentina and Indonesia, net imports of biomass-based diesel are expected to fall from an estimated 33,000 bpd in 2017 to 30,000 bpd in 2018 and then rise to 35,000 bpd in 2019.



USDA to Ensure All Have Equal Access to Crop & Livestock Reports

The U.S. Department of Agriculture (USDA) today announced new procedures for the release of market-affecting crop and livestock reports from the National Agricultural Statistics Service (NASS) and World Agricultural Outlook Board (WAOB) to ensure that all members of the public have access to the information at the same time.  Under current “Lockup” procedures, information is released to the public at 12:00 p.m. (Eastern), though the news media are allowed access approximately 90 minutes early, with their reports embargoed until the noon release time.  Prompted by inquiries from the public, USDA examined the procedures and determined that technological advancements have afforded recipients of customized media reports a market advantage not enjoyed by members of the general public.  The USDA also sought analytical assistance from the Commodity Futures Trading Commission to help inform a policy update to the lockup procedures.  As a result, beginning August 1, 2018, USDA will provide media the same access to the NASS and WAOB reports as the public, with the information becoming available to all at 12:00 p.m. on days the reports are released.

“These reports are greatly anticipated each time they are released, and they can have significant market impacts,” said U.S. Secretary of Agriculture Sonny Perdue.  “Everyone who has interest in the USDA reports should have the same access as anyone else.  Modern technology and current trading tactics have made microseconds a factor.  This change addresses the ‘head start’ of a few microseconds that can amount to a market advantage.  The new procedures will level the playing field and make the issuance of the reports fair to everyone involved.”

Background: Current Process
USDA produces a number of reports with significant market impacts, such as commodity futures sold on the Chicago Board of Trade.  Those reports are prepared by NASS and WAOB staff under special “lockup” conditions at USDA: no electronic transmission devices are permitted into lockup (such as cellular telephones) and once people enter the lockup they cannot leave until the reports are sent out to the public at 12:00 p.m.

The public is allowed to enter lockup at 10:30 a.m. to hear about the lockup facility and to sit in on the data briefing that occurs at approximately 11:45 a.m. Again, no transmission devices are allowed into lockup and the public is not allowed to leave until 12:00 p.m.

Lock up is open to any media outlet that meets a set of strict standards. Currently, six news services participate in lockup and are given pre-access to reports: Associated Press, Dow Jones/Wall Street Journal, Thompson Reuters, Market News Int’l/Deutsche Boerse, Bloomberg News, and DTN/Progressive Farmer. 
-    The media are provided an electronic copy of the report at 10:30 a.m.
-    The media write their articles and other custom reports between 10:30 a.m. and 12:00 p.m.
-    The media transmit their information at 12:00 p.m.

It takes USDA data roughly 2 seconds to be transmitted and posted for the public to read.  Meanwhile, press organizations have access to high-speed fiber optic lines out of the USDA lockup and advertise paid services to clients that offer ‘ultra-low latency’ data transmission speed.  They have approximately 90 minutes to distill the reports down to their clients’ needs.

There is evidence to suggest that there is significant trading activity worth millions of dollars that occurs in the one to two second period immediately following 12:00 p.m., which could not be based on the public reading of USDA data.  The inference is that private agents are paying the news agencies for faster data transmission to get a jump on the market.

What is USDA doing to fix this?
USDA is requiring the media to participate in lockup in the same way as the public.  Media will no longer receive the reports in advance nor can they utilize high-speed transmission cables from within USDA’s lockup facility.



“Grit Wins” theme for ACE’s 31st annual conference

The American Coalition for Ethanol (ACE) has opened registration and released the agenda for its 31st annual conference August 15-17 at the Renaissance Depot Hotel in Minneapolis, Minnesota. This year’s “Grit Wins” conference theme and programming are reflective of the attacks oil refiners have launched on ethanol this year. The general session panels will include updates from ACE leadership, a discussion of attacks on the ethanol industry, an overview of future demand for liquid fuels, testimonials from flex fuel marketers, a technical update on fuel quality, and a presentation on whether exports can overcome escalating trade tensions and tariffs.

General Session Preview:
 ·    Grit Wins: Updates from ACE Leadership
ACE leadership will discuss the successes of the last year and highlight upcoming projects and opportunities we are working on for ACE members.
 ·    Making Rural America Great Again—Uncovering the Plot to Keep Ethanol Down
This panel will provide an exposé documenting EPA and Big Oil’s efforts to limit ethanol use.
 ·    Future Fuels
This panel will provide an overview of future demand for liquid fuels and electricity with emphasis on how ethanol can increase its share of the domestic marketplace based on high-octane and low-carbon qualities.
 ·    E15 and Flex Fuel: How’s that Working Out for You?
Members of ACE's Marketer Advisory Panel (MAP) will discuss what works and doesn't work in E15 and flex fuel retailing, how they view the future of biofuels, and more during this panel.
 ·    Up to Spec
Get a technical update on fuel quality and the work at ASTM during this session.
 ·    How Can Exports Overcome Tariffs and Tensions?
This panel will address export destinations, demand drivers, and the status of trade negotiations and tariffs.

Among the breakout sessions is a track that will provide ethanol plant board members with guidance on how to use strategic planning methods to guide their company’s future. Other breakout session topics include workforce management, coproduct diversification, low carbon fuel markets, tax reform, new technology, production efficiency, and more, as well as a brainstorming session on how to strengthen ethanol’s image in your community.

“We’re looking forward to providing a conversational forum for our industry to share the latest activities underway to increase demand for ethanol here and around the world,” said Brian Jennings, ACE CEO. “The ethanol industry was built from the ground up by people whose grit and determination have grown it to what we see today. We encourage ethanol producers and industry members to register (http://www.regonline.com/gritwins) for this year’s conference and join us in showing how grit wins.”



Brazil Cuts Corn Forecast

Brazilian agriculture agency Conab cut its forecast for the corn harvest in the 2017-2018 season because of patchy rains in some areas, and raised its estimate for the country's soybean harvest.

Conab forecast a total corn crop of 82.9 million metric tons in the 2017-2018 season, down from the 85 million metric tons the agency forecast in June. Brazil produced 97.8 million tons of corn in the 2016-2017 season.

Farmers in several regions of the country began planting their soybean crop later than normal in the 2017-2018 season, delaying the harvest and shortening the period during which farmers can plant their second crop of the year, which is usually corn.

Many farmers then decided to sow a smaller area with corn for the second crop, and also spent less on fertilizers and other products, contributing to the smaller-than-expected forecast, Conab said.

Brazilian farmers produced a record 118.9 million metric tons of soybeans in the season, Conab said, up from its estimate of 118 million tons in June.

Brazil produced 114.1 million tons of soybeans in the 2016-2017 season, the previous record.

The soybean harvest for this year in Brazil is finished except for a few small areas in some northern states of the country, Conab said.



Alliance releases report from 2018 Animal Rights National Conference

The Animal Agriculture Alliance released a report today detailing observations from the Animal Rights National Conference, held June 28 through July 1 in Los Angeles, Ca. The event was organized by the Farm Animal Rights Movement and sponsored by Mercy for Animals, The Save Movement, Compassion Over Killing and The Humane League, along with other animal rights extremist groups. According to conference organizers, the Animal Rights National Conference is the world’s largest and longest-running gathering of animal rights activists with the shared belief that “animals have the right to be free from all forms of human exploitation.”

“We believe it is important for everyone in animal agriculture to stay informed of how animal rights extremists plan to target us next,” said Kay Johnson Smith, Alliance president and CEO. “That’s why we release reports from major activist conferences every year. If your livelihood depends on animals, whether for food, research, transportation, or any other purpose, you need to review this report and prepare for what strategies and tactics these groups and individuals will use in their increasingly aggressive efforts to take meat, poultry, dairy and eggs off of our plates.”

Speakers at the conference made it clear that their objective is the liberation of animals, not enhancing animal welfare. “Animal rights is different from animal welfare. It’s not about better cages; it’s about empty cages,”said Anita Krajnc of The Save Movement, a group who conducts “vigils” at slaughterhouses across the country. Speakers agreed that any form of meat production is inherently inhumane, making statements such as “There is no such thing as humane slaughter” (Michael Budkie, Stop Animal Exploitation NOW!), “You cannot humanely kill something that doesn’t want to die”(Justin Van Kleek, Triangle Chicken Advocates), “I do believe that all farming and slaughterhouses are cruel”(Jaya Bhumitra, Animal Equality) and “All farms are factory farms, no matter the size”(Hope Bonahec, United Poultry Concerns).

Attendees at the conference were encouraged to take extreme action in the name of promoting animal rights, with speakers saying, “if we can rescue animals, we must rescue them”….”until every crate is empty, and every tank is drained”(Simone Reyes, Social Compassion in Legislation). “Our movement must adopt all avenues, the methodical and radical,” Reyes added. “We as a movement need to push the boundaries of the law,”said Jay Shooster, an attorney and writer in a session about “Influencing Lawmakers.” “Using any means necessary [to defend animals] is morally and ethically responsible,”said Dr. Jerry Vlsak, a surgeon and founder of the North American Animal Liberation Press Office.

This year’s conference speakers focused heavily on the “reproductive rights” of animals, an apparent new focus area for the movement. “We don’t allow them [animals] to do the thing they do so well, and that is be a mother,” said Susie Coston with Farm Sanctuary. Using eggs from laying hens and milk from dairy cattle were mentioned as “female animal exploitation,” and this message was tied into feminism and women’s rights issues by several speakers.

Also speaking at the conference were: Gene Baur, Farm Sanctuary; Bruce Friedrich, The Good Food Institute (formerly with PETA and Farm Sanctuary); Kristie Middleton, The Humane Society of the United States; Erica Meier and Mike Wolf, Compassion Over Killing; and vegan ‘celebrities’ Earthling Ed and James Aspey.

The 2018 Animal Rights National Conference Report, which includes personal accounts of speaker presentations and general observations, is available to Alliance members in the Resource Library on the Alliance website. The Alliance also has reports from previous animal rights conferences accessible to members on its website.



Hiland Dairy Honored for Closed-Loop Sustainability Initiative at Oklahoma Plant

Sustainability has always a priority at Hiland Dairy Foods Company, which continuously seeks new ways to recycle, reduce and reuse at its production plants. Hiland Dairy's most extensive effort to date took years to reach its current magnitude as a closed-loop sustainability initiative at the company's plant in Chandler, Oklahoma. At last month's ProFood Live conference in Chicago, Hiland's initiative received a ProFood World 2017 Sustainability Excellence in Manufacturing Award.

Hiland Dairy received the second-place award in the Project Category for the Chandler plant's whey recycling and wastewater treatment facility, which has expanded over the years to include additional projects.

Whey wastewater, a byproduct of cottage cheese production, must undergo treatment, which was expensive for Hiland Dairy and taxing on the City of Chandler's municipal treatment facilities.

"We started looking at building our own wastewater treatment facility in Chandler," said David Smith, operations manager at Hiland Dairy. "We purchased 620 acres of land near the plant for a whey recycling and wastewater treatment facility. We have lagoons that use aerobic bacteria to treat about 250,000 gallons of wastewater a day. Then we have the aeration and holding ponds, which, together, hold 28 million gallons."

To recycle the whey, Hiland separates it from the water. The water goes to the treatment facility, and the whey is filtered into a silo and held until the Chandler team applies it as fertilizer through irrigation pivots.

The treatment facility sits on 280 acres, and Hiland uses the surplus acreage to grow high-yield feed crops, irrigated with the treated wastewater and fertilized with the recycled whey. These crops provide area farmers with an affordable, local feed source.

The Chandler plant also produces Hiland's Red Diamond Tea, which inspired its most recent project under this sustainability initiative.

"We're very conscious of the amount of landfill waste that results from manufacturing," Smith said. "To reduce our landfill waste, we looked at ways we could recycle the used tea bags. We had them tested and found out they're rich in nitrogen, phosphorous and potassium."

With that revelation, a solution emerged: The Chandler team could use the tea bags to fertilize the overworked, now-barren 340 acres outside the irrigation system's reach.

"We purchased the machinery to grind up and spread the tea bags," Smith said, "and we started by spreading crushed tea bags across 60 acres," Smith said. "Then we performed regular soil sampling and testing, which showed definite improvement in the soil quality. That allowed us to plant high-quality, high-yield forage crops that are easy for livestock to digest and provide area farmers with an affordable feed source."

The results of the closed-loop sustainability initiative show the tangible significance of Hiland's Chandler initiative. The plant reduced its amount of wastewater by 95 percent. Landfill waste was reduced by 194 tons a month. During growing season, the plant produces 1.75 tons of feed a day. And those are only a few of many notable results.

"At Hiland Dairy, we've made investments to take the three biggest wastes out of the plant and put them to work revitalizing the land," Smith said. "To be a part of such an enormous effort and see it not only succeed on a local level but also earn national recognition is incredible. It makes me proud to work for a company that's dedicated to innovation like Hiland is."