Thursday August 16 Ag News

Hormel Foods Corporation Announce the Sale of Fremont, Neb., Processing Facility to Wholestone Farms, LLC
Hormel Foods Corporation announced today that they have entered into a definitive agreement to sell the Hormel Foods Fremont, Neb., processing facility to WholeStone Farms, LLC.  The transaction is subject to customary closing conditions and is expected to be completed in December 2018.

“The Fremont facility has been an important part of our company for decades, and we are certainly pleased to have found a home for this team and facility with WholeStone Farms,” said Jim Snee, chairman of the board, president and chief executive officer at Hormel Foods. “The strategic decision to transition the Fremont facility to WholeStone Farms reflects the long-term, changing dynamics in the pork industry, and most importantly, is aligned with our vision as a global branded food company.”

“We look forward to working with WholeStone Farms to ensure a smooth transition for our employees, suppliers and customers,” said Glenn Leitch, executive vice president of supply chain at Hormel Foods. “A multiyear supply agreement with WholeStone Farms ensures the Fremont facility will continue as an integral part of our supply chain in the future. Our focus continues to be on ensuring a stronger supply chain from procurement to shipment of products, fully optimizing our system to create an efficient, enterprise-wide structure to keep pace with the growing needs of our business.”

“The purchase of the Fremont, Neb., processing facility from Hormel Foods aligns with our vision to create and capture value in the pork supply chain for the 220 independent producers who own WholeStone Farms,” stated Dr. Luke Minion, chairman of the board of directors of WholeStone Farms. “We value the dedication and experience the existing team brings to WholeStone Farms, and are committed to significant additional investments in the facility for production efficiencies and enhancing employee wellness.”

The transaction includes a processing facility and a multiyear agreement to supply pork raw materials to Hormel Foods. The current Fremont plant management team and workforce will remain in place to ensure business continuity for all stakeholders.

WholeStone Farms was established in 2017 to create and capture value in the pork supply chain. WholeStone Farms is owned by our 220 members who are independent producers and farmers raising livestock and crops in the upper Midwest. We collectively farm nearly 400,000 acres of cropland, raise 12 million pigs a year, and share a vision to continue the legacy of family farming. With over 1,000 family members involved and 25% on their fourth generation, we are proud of what we do, the food we produce, and we are deeply committed to sustainable agriculture and the rural communities we live in. For more information, visit www.wholestonefarms.com.



Williams receives national achievement award

Tyler Williams, cropping systems extension educator with Nebraska Extension, was honored with an achievement award from the National Association of County Agricultural Agents. Williams received the award at NACAA’s annual meeting in Chattanooga, Tennessee on Aug. 1.

The award is presented to agents with less than 10 years of service in cooperative extension service and who have exhibited excellence in the field of professional extension. Williams currently has eight years of service.

“I have a passion for supporting Nebraska’s producers so to be recognized by my peers for this work is truly an honor,” Williams said.

Williams has provided in-person climate and agriculture education to more than 3,000 Nebraskans, as well as three legislative committee hearings since 2015. He is known across the region as a leader for climate and agriculture indicated by his three national presentations, three national/regional climate committees and five regional grants totaling $142,000. He leads extension’s climate issue team and multiple climate-related focus areas. 



Rural Mainstreet Index Rises for August:
Bankers Expect 7.8 Percent Decline in Farm Equipment Sales Next 12 Months

The Creighton University Rural Mainstreet Index climbed above growth neutral in August for a seventh straight month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.    

Overall: The overall index climbed to 54.8 from 53.8 in July. The index ranges between 0 and 100 with 50.0 representing growth neutral.

“Surveys over the past several months indicate the Rural Mainstreet economy is expanding outside of agriculture. However, the negative impacts of recent trade skirmishes have begun to surface, weakening already anemic grain prices,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. 

Farming and ranching: The farmland and ranchland-price index for August was unchanged from July’s 44.7. This is the 57th straight month the index has fallen below growth neutral 50.0.

In reaction to weak farm commodity prices and income, almost one-third, or 31.0 percent, of bank CEOs reported rejecting a higher percentage of farm loans. More than half, or 54.8 percent, indicated raising collateral requirements, while 4.8 percent reported reducing the size of farm loans.

The August farm equipment-sales index fell to 37.8 from July’s 38.8. This marks the 60th consecutive month the reading has moved below growth neutral 50.0.

In terms of the sale of farm equipment over the next 12 months, bankers expect sales to decline by 7.8 percent.
 
Below are the state reports:
Nebraska: The Nebraska RMI for August sank to 55.2 from 56.3 in July. The state’s farmland-price index increased to 44.9 from last month’s 43.7. Nebraska’s new-hiring index rose to 67.4 from 56.5 in July. Nebraska's 2017 export of agriculture commodities was $918.6 million.

Iowa: The August RMI for Iowa climbed to 56.8 from 56.0 in July. Iowa’s farmland-price index for August rose to 44.1 from July’s 42.1. Iowa’s new-hiring index for August jumped to 59.1 from July’s 50.1. Iowa’s 2017 export of agriculture commodities was $1.5 billion. 

Each month, community bank presidents and CEOs in nonurban agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included. 

This survey represents an early snapshot of the economy of rural agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, former chairman of the Independent Community Banks of America, created the monthly economic survey in 2005.



Farmer-Led Soy Organizations Double Down on Collaboration

Working together is always important to agricultural organizations, but in today’s ever-changing climate, it’s rising to greater importance. Collaboration allows organizations like the soy checkoff to leverage checkoff investments and bring more value back to U.S. farmers. This was an important topic during the United Soybean Board (USB) Summer Meeting as the board considered its plans and investments for the upcoming fiscal year, which begins October 1.

“Soybean farmers have made significant contributions to telling the story of U.S. agriculture. Now we need to focus more closely on telling soy’s unique story to the global marketplace,” says USB CEO Polly Ruhland.

U.S. soybean farmers can be assured that their three national soybean organizations — USB, the American Soybean Association (ASA) and U.S. Soybean Export Council (USSEC) — work closely together on many issues. U.S. soy’s image has been on the mind of the soybean CEOs, who have stressed the importance of coordinating their unique roles and functions to best benefit the industry

“The soy brand has been elevated,” says ASA CEO Ryan Findlay. “Right now, media and the public in general are talking about soybeans, agriculture, and American farmers. We need to take their interest in soy as an opportunity to further enhance the perception of our versatile and vital commodity—while also protecting the economic stability and trade relationships we have worked for years to establish for our producers.”

ASA advocates for soy growers in Washington, D.C. on such important issues as Farm Bill, biodiesel, biotech labeling, and—in the news almost daily right now—trade. This works in tandem with USB’s education and outreach efforts to support a strong soy brand.

Internationally, USSEC builds the reputation of U.S. soy and will continue that work in partnership with USB, ASA and the U.S. Department of Agriculture Foreign Agriculture Service. According to USSEC CEO Jim Sutter, USSEC is focusing on connecting buyers with farmers to build that relationship and preference for U.S. soy.

USB is also looking outside of soybeans to see what other partnerships could benefit U.S. soybean farmers. The soy checkoff will partner with the National Pork Board to understand the full chain of sustainability and how U.S. soy’s sustainability impacts U.S. pork sales here in the United States and internationally. Globally, animal agriculture consumes 97 percent of all U.S. soybean meal, making animal agriculture U.S. soy’s number one customer.

“As a farmer who produces livestock and soybeans, this is exactly the type of work I want these organizations to be working together on,” says Lewis Bainbridge, USB chair and soybean farmer from South Dakota. “We know that we’re stronger together, and I’m looking forward to seeing what this increased focus on collaboration brings to the U.S. soy and agriculture industries.”



"Zombie WOTUS" Threatens Farmers and Ranchers

Today a Federal District Court in South Carolina granted a motion from environmental groups that brings the 2015 WOTUS rule into effect in 26 states. Previously the EPA’s WOTUS Applicability Date Rule prevented the 2015 WOTUS rule from going to effect until February 6, 2020. The remaining 24 states are protected by other federal court injunctions against the 2015 Rule (one in North Dakota that covers 13 states, and one in Georgia that covers 11 states).

National Cattlemen’s Beef Association Chief Environmental Counsel Scott Yager issued the following statement in response to the South Carolina District Court injunction of the Waters of the United States Applicability Date Rule:

“Today’s ruling underscores the urgent need to finalize the repeal of the 2015 Waters of the United States (WOTUS) rule. The South Carolina court has effectively brought WOTUS back from the dead in 26 states, creating a zombie version of the 2015 rule that threatens the rights of farmers and ranchers across the country. NCBA will continue to fight in the courts and in Congress to kill the 2015 WOTUS rule once and for all.”



Farm Bureau: Now, More Than Ever, We Must Ditch the Rule
American Farm Bureau Federation President Zippy Duvall

“Due to a misguided ruling by a single federal district court today, the overbroad, vague and illegal 2015 Waters of the United States Rule is now the law of the land in twenty-six states.

“To avoid widespread uncertainty and potential enforcement against ordinary farming activities in these already-uncertain times, we call on the administration to take immediate steps to limit the impact of this dangerous court decision. The U.S. District Court for South Carolina was wrong to invalidate the agency’s ‘applicability rule’ that had simply delayed the effective date of the 2015 WOTUS rule. The delay rule would have maintained regulatory certainty and stability while the administration completes its reconsideration of the 2015 rule and works to develop a new regulation to provide both clean water and clear rules. Today’s court ruling creates enormous regulatory uncertainty and risk for farmers, ranchers and others in the 26 states that are not already protected from the unlawful 2015 rule by previous court decisions.

“The flawed 2015 rule—which two courts have blocked in 24 states, and which would never stand up to legal scrutiny—is now applicable to the citizens of the remaining 26 states. While work continues to develop a common-sense and lawful solution, we urge the administration to immediately take action in the courts to limit the scope of this injunction to South Carolina. We also urge the administration to move as quickly as possible to a final decision to repeal the 2015 rule. Now, more than ever, we must Ditch the Rule.”



ACE leadership kicks off 31st annual conference in Minneapolis

The American Coalition for Ethanol (ACE) kicked off the first day of sessions for the 31st annual conference at the Renaissance Depot Hotel in Minneapolis with a discussion on the progress being made and work that remains to expand market access for ethanol in the U.S. and around the world. ACE Board President Duane Kristensen, representing Chief Ethanol Fuels, provided opening remarks, along with ACE CEO Brian Jennings and ACE Senior Vice President Ron Lamberty.

“The 31st annual ACE conference comes at an interesting time for agriculture and the ethanol industry,” Kristensen said. “Where do we stand on the RFS, on trade and tariffs, E15, and the list goes on. Ethanol is being produced at record levels. Domestic and export demand are also at record levels. The conference allows those in the ethanol industry to catch up on the latest developments and have input on how to move forward. We’re appreciative of those joining us this week and engaging in the future of ethanol.”

Jennings commended the conference crowd for staying vigilant despite the attacks oil refiners have launched on ethanol this year. “Wrangling over market share with the most profitable companies in the world has always required our industry to be resourceful — to punch above our weight,” Jennings said. “But we have leverage before the midterm election. Candidates need your vote.   Rural America needs to speak out about the fact that farmers are losing money while refiners have the best of both worlds — fat profit margins and minimal RFS compliance costs.”

“Enlisting the help of our allies in the Senate, the many Governors who support us, and through candidates who need our vote this fall, we must keep grassroots pressure on the White House and EPA to make good on President Trump’s promises to maintain 15 billion gallons in the RFS, which means reallocating the small refinery exemptions, and to issue a clean RVP rulemaking for E15 and higher blends,” Jennings added.  

Lamberty addressed the importance of real-world retailer experience in developing markets for more ethanol. “As leading retailers add E15 and flex fuel to an increasing number of their stations, other retailers are starting to understand higher ethanol blends are smart business — they’re moneymakers. When station owners see other single store retailers offering E15 and flex fuels, they realize they haven’t heard the truth about the costs and risks of adding higher ethanol blends, and they’re asking questions,” Lamberty said. “We can answer those questions, but most retailers trust the message more when it comes from other retailers. We do, too. ACE’s market development program relies on continually learning from successful E15 and flex fuel marketers and then bringing those marketers together with prospective retailers on our flexfuelforward.com website, in-person at trade shows, and by visiting their retail stations.”

This morning’s opening remarks are followed by three general session panels, then nine breakout sessions in the afternoon. The general session panels cover topics ranging from uncovering Big Oil’s scheme to limit ethanol use to fuel quality and specification, as well as future demand opportunities for liquid fuels and electricity in the U.S.



Smithfield Foods Blames Tariffs for Lower Earnings

WH Group, the world's largest pork company and parent company of Smithfield, reported lower than expected earnings as the U.S. pork industry gets hammered from the U.S.-China trade war.

On fresh pork sales, WH Group recorded an operating loss in the U.S. of $15 million in the first six months of 2018 as a result of oversupply in the country as well as the retaliatory tariffs by China, the company said in its most recent earnings report.

POLITICO reports that the company's shares have fallen 31 percent this year, and wholesale prices dipped 17 percent in the first half of the year but have since recovered 9.6 percent.

Smithfield and other pork companies are bearing the brunt of the trade shakeup as China has slapped hefty tariffs on U.S. hog exports.



Archer Daniels to Acquire Brazil Oilseeds Plants

Archer Daniels Midland Co. (ADM) on Thursday said it agreed to buy a pair of oilseeds processing plants in Brazil as it moves to address growing global demand.

The Chicago agribusiness giant said it is acquiring integrated crush and oil refining/bottling plants in Uberlandia in the state of Minas Gerais and Porto Franco in Maranhao from Brazil's Algar Agro. ADM said it also gains access to an extensive network of origination and storage silos throughout northeastern and southeastern Brazil.

"We've recently launched our new oilseeds joint venture with Cargill in Egypt, and we have completed several enhancements to our European and North American processing operations," ADM said. "With the addition of these new plants in Brazil, we are further enhancing and strengthening our global network at a time when both the near- and long-term outlook for global meal demand continues to be strong."

Moody's Investors Service said in a report on Thursday that geographical diversification, economies of scale and competitive input costs are boosting the competitiveness of South American agro producers, especially those from Brazil and Argentina. The ratings agency said Brazil, with food output increasing by 41% over the next decade, is set to benefit particularly from higher global demand.

ADM said it expects to complete the acquisition by the end of the year, with about 400 Algar Agro employees joining the company. Terms of the deal weren't immediately available.



Wheat code finally cracked; wheat genome sequence will bring stronger wheat varieties to farmers

Kansas State University scientists, in collaboration with the International Wheat Genome Sequencing Consortium, published today in the international journal Science a detailed description of the complete genome of bread wheat, the world's most widely-cultivated crop.

This work will pave the way for the production of wheat varieties better adapted to climate challenges, with higher yields, enhanced nutritional quality and improved sustainability. The article is titled "Shifting the limits in wheat research and breeding using a fully annotated reference genome."

The research article — authored by more than 200 scientists from 73 research institutions in 20 countries — presents the reference genome of the bread wheat variety Chinese Spring. The DNA sequence ordered along the 21 wheat chromosomes is the highest-quality genome sequence produced to date for wheat. It is the result of 13 years of collaborative international research and the support of the National Science Foundation, Kansas farmers and many others.

"It is a dream come true for Kansas wheat farmers, who were the first to invest in the wheat genome sequencing project and were pivotal in rallying U.S. wheat farmers in support of the wheat genome sequencing project," said Bikram Gill, distinguished professor emeritus of plant pathology at Kansas State University who organized the first National Science Foundation and U.S. Department of Agriculture-sponsored workshop planning meeting on wheat genome sequencing in Washington, D.C., in 2003.

A key crop for food security, wheat is the staple food of more than a third of the global human population and accounts for almost 20 percent of the total calories and protein consumed by humans worldwide, more than any other single food source. It also serves as an important source of vitamins and minerals.

Kansas farmers grow an average of 340 million bushels of wheat each year, but acres planted to wheat have dropped dramatically over the past decade, from 10 million acres to fewer than 8 million. To meet future demands of a projected world population of 9.6 billion by 2050, wheat productivity needs to increase by 1.6 percent each year.

With the reference genome sequence now completed, breeders have at their fingertips new tools to address global challenges. They will be able to more rapidly identify genes and regulatory elements underlying complex agronomic traits such as yield, grain quality, resistance to fungal diseases and tolerance to physical stress — and produce hardier wheat varieties.

"Completion of the sequence is a landmark event that will serve as a critical foundation for future wheat improvement," said Allan Fritz, Kansas State University professor of agronomy and wheat breeder. "It is the key to allowing efficient, real-time integration of relevant genetics, making the selection process more efficient — it's a turbocharger for wheat breeding."

It is expected that the availability of a high-quality reference genome sequence will boost wheat improvement over the next decades, with benefits similar to those observed with maize and rice after their reference sequences were produced.

"Kansas wheat farmers have been supporting the wheat genome sequencing efforts through the Kansas Wheat Commission's wheat assessment since the establishment of the International Wheat Genome Sequencing Consortium in 2005, with a cumulative amount of nearly a quarter of a million dollars," said Justin Gilpin, chief executive officer for Kansas Wheat. "The sequence of the bread wheat genome has already had a positive effect on wheat improvement, which not only affects the science behind wheat breeding, but has a long-lasting positive outcome in regard to wheat producer productivity, profitability and, ultimately, livelihoods."

Sequencing the bread wheat genome was long considered an impossible task because of its enormous size — five times larger than the human genome — and complexity — bread wheat has three sub-genomes and more than 85 percent of the genome is composed of repeated elements.

"It is exciting to be a part of this landmark achievement," said Jesse Poland, associate professor at Kansas State University and director of the Wheat Genetics Resource Center and the U.S. Agency for International Development Innovation Lab for Applied Wheat Genomics. "This international effort, toward something that was once deemed impossible, will have tremendous impact on wheat in Kansas, and the world."

In addition to the sequence of the 21 chromosomes, the Science article also presents the precise location of107,891 genes and of more than 4 million molecular markers, as well as sequence information between the genes and markers containing the regulatory elements influencing the expression of genes.

The International Wheat Genome Sequencing Consortium achieved this result by combining the resources it generated over the last 13 years using classic physical mapping methods and the most recent DNA sequencing technologies; the sequence data were assembled and ordered along the 21 chromosomes using highly efficient algorithms, and genes were identified with dedicated software programs.

All consortium reference sequence resources are publicly available at its data repository at URGI-INRA Versailles and at other international scientific databases such as GrainGenes and Ensembl Plants



Dr. Shefali Mehta Tapped as New Leader of Soil Health Partnership

Shefali Mehta had a fascination with plants from early in her childhood. From her time growing up in New England, through her education and work in agriculture in the U.S. and around the world, she followed her passion, launching a notable career as an agricultural and environmental economist.

Mehta has been tapped as the new executive director of the Soil Health Partnership, a long-term data project that measures and quantifies the impact of farm management practices known to promote healthy soils.

“Everything we have literally starts with the soil, which is intimately connected to our very survival and ability to take care of current and future generations,” Mehta said.

Soil health is taking on elevated importance in agriculture as a means to protect topsoil, helping farmers manage extreme weather, increase profitability, protect water quality and sequester carbon. Practices that improve soil health include growing cover crops, reducing tillage and taking a science-based approach to nutrient management.

The SHP is a farmer-led initiative of the National Corn Growers Association. More than 100 working farms are enrolled in 14 states.

“I was drawn to the data component of this effort because I strongly believe using data fully and thoughtfully allows us to make better decisions,” Mehta said. “It often leads us to solutions and outcomes we may not expect. Data is a powerful tool for bringing diverse groups together – it helps us cast aside emotion and focus on our common objectives.”

Mehta’s first priority is to ensure that farmers get the full potential of the data collected so far. In the immediate months, the SHP will analyze these data and begin sharing those insights with farmers.

Mehta fills the position after Dr. Nick Goeser’s promotion to NCGA Vice President of Production and Sustainability earlier this year.

“I have every confidence in Shefali as SHP’s leader,” Goeser said. “She brings an amazing wealth of knowledge, skills and collaborative experience that will help broaden growth and success of the program."

Mehta received her Ph.D. in Agricultural and Applied Economics, and a Master’s degree in Statistics, from the University of Minnesota. She also holds an MPhil in Economics from Cambridge University, and a BA in Economics from New York University.

Mehta is currently the co-founder and CEO of an agricultural technology start-up, Ceres Wave, and also founded and leads Open Rivers Consulting Associates. She served as Vice Chairwoman of Pheasants Forever and Quail Forever, and serves on other boards, including those at the Minnesota Invasive Terrestrial Plants and Pests Center, the School of Statistics at the University of Minnesota, and Compatible Technology International.

In prior positions, she worked in roles across private, public and nonprofit sectors at organizations including McKinsey and Company, Syngenta, the Minnesota Office of Higher Education, St. Olaf College, the Federal Reserve Bank of Minneapolis and the American Cancer Society.

Mehta resides in the Washington, D.C. region. When she’s not working, she enjoys scuba diving, kayaking, traveling, and hockey. She says she looks forward to embarking upon her new role in the soil health movement.

“The fact that the Soil Health Partnership is farmer-driven is very powerful,” she said. “The energy for change and innovation comes from the grassroots level.”