Thursday August 9 Ag News

Reflection on 120 Years of Diesel
www.dieselforum.org 

Twenty-years plus a full century ago, (August 9, 1898) one of what would be a series of patents was issued to a French engineer living in Berlin for an efficient, slow burning, compression ignition, internal combustion engine. Best known for the invention of an engine that today bears his name, Rudolf Diesel’s invention came while the steam engine was the predominant power source for large industries. Even at this most primitive stage, diesel technology demonstrated an efficiency of 26.2 percent vs. about 10 percent for steam. With more energy captured and directed towards mechanical work, and the potential the diesel engine was on its way

In the early 1900’s, further developments in air handling and fuel injection systems enabled diesel engines to move from being large low-speed to high speed to a position of displacing steam engines as the primary motive power source for industrial needs. High speed diesel engines were first introduced for commercial vehicle applications in the 1920’s and in the 1930’s for passenger vehicles.

Now 120 years in, where is the diesel today? Bounding ahead and being true to its roots.

Today, a dozen decades after its invention, diesels remain as the prime mover, the power plant of choice for 15 sectors of the global economy.  Mining, agriculture, construction, goods movement, public transportation and more. The inherent energy efficiency of the fuel and the increasing efficiency of the engine and its combustion process have ensured diesel has remained the technology of choice for these sectors.

This standing holds even after the substantial challenge and achievements that have now made diesel not only more efficient, but near zero in emissions performance. Today’s emissions control systems such as selective catalytic reduction (SCR) systems are advanced, efficient and durable, and are available in smaller footprints and at lower cost than their initial introduction (2010). Confident in the long term future for diesel, manufacturers are now exploring how much nearer to zero they can get with diesel in future heavy-duty commercial vehicle engines. If history serves any purpose, there is more to come!

For passenger vehicles, the future of diesel is increasingly focused on larger vehicles – ones that are particularly suited to the advantages that diesel provides. The fastest growing and most popular SUVs and pickup truck segments are also the ones with the most diesel product offerings today. These vehicles must deliver the full package of no compromises in vehicle utility, driving range, more fuel efficiency and lower CO2 emissions, and competitive consumer return on investment.

Today, competition in fuels and engine technologies is greater than at any point in the past. Alternative fuels like natural gas (compressed or liquefied) have made only small niche inroads into sectors predominated by diesel. As for the threat of electrification to displace diesel, battery performance, while improving is still far away from being commercially challenging to the full array of energy, range and performance advantages of the diesel engine. No doubt that some vehicles and niche applications will find electrification a good fit, but for the bulk of the diesel sectors of the economy, nothing comes close.

The future of diesel is about taking a good thing and making it better. Two places that is happening is in the fuels that it uses and enhancements to the technology. Combining hybrid systems with diesel engines in vehicles or machines where it makes sense yields good returns for customers and more productivity as well, as demonstrated in both on-highway medium-size vehicles and even off-road construction equipment. Hybridization allows for downsizing diesel engines, less fuel consumption and lower emissions overall.

Diesel’s original engine was fueled on vegetable oil, a biofuel. In true back-to-the-roots fashion, one of the most exciting and growing opportunities for diesel today and in the future is the increasing use of renewable biofuels. These low-carbon drop-in petroleum replacement fuels are providing a viable, cost-effective and near-term benefit for progressive public and private fleets alike. In California, renewable biodiesel fuels are the linchpin of the low carbon fuel standard today and delivering important CO2 reductions for tomorrow. 

Because we’re living in the future today, the diesel engine is important in achieving societal goals of cleaner air, lower greenhouse gas emissions and economic growth and productivity. The incremental advancements in diesel efficiency, new sensibilities about the role of advanced biofuels and overall continuous improvement of the technology ensure we’ll still be talking about diesel for decades to come.



Naig comments on proposed RFS levels

Iowa Secretary of Agriculture Mike Naig today submitted comments to the U.S. Environmental Protection Agency (EPA) on the proposed Renewable Fuel Standard (RFS) levels for conventional, advanced and cellulosic biofuels for 2019 and biodiesel for 2020. The comment period on the proposed levels runs through Aug. 17, 2018.

“A strong RFS that follows the law is critically important to ensuring market access for ethanol and biodiesel and to giving consumers additional fuel choices at the pump. I will reiterate to acting Administrator Wheeler when he visits Iowa next week the need to support the RFS, allow year-round sale of E15 and end the small-refinery waivers that have cut ethanol demand by 1.5 billion gallons over the past two years.”



Integrated Pest Management Program Hosts Eighth Annual Crop Scouting Competition

 The Iowa State University Extension and Outreach Integrated Pest Management program hosted its eighth annual Crop Scouting Competition for Iowa Youth on July 30 at the Iowa State University Field Extension Education Laboratory near Boone, Iowa.

Thirty nine high school students (those completing grades 8-12) from across Iowa tested their integrated crop management skills through several tasks and challenges, both in the field and in the classroom. Youth had the opportunity to work with and learn from Iowa State faculty, staff and agronomists, as well as professionals in crop-related careers.

Receiving first place in this competition was Clayton County Team Number One with 231.1 total points. Following close behind with a score of 215.5 was Clayton County Team Number Two. Team Kuhlmann Seed placed third with a score of 214.75, and Team Geer Seed recorded 211.6 points to finish fourth. These top four winning teams received a cash prize for their accomplishments, while the top two teams from Clayton County will be advancing to the regional competition in Nebraska Aug. 27.

During the competition, a total of nine teams competed and rotated through eight different stations, each with a simulation of real field conditions, where they needed to make an integrated crop and pest management decision. Stations included weed identification, soybean staging, soybean diseases and management. There was also a written test given to evaluate students’ knowledge about common IPM practices to ensure individual team member mastery. The goal of this competition was to both test and increase students’ knowledge in the areas of weeds, insects and disease identification, as well as demonstrate the many careers available in agriculture.

A post-event survey showed that participants thought the challenge to be evenly competitive, with plant disorders and pesticides providing the biggest challenge. It also indicated that students enjoyed learning a variety of new things in a hands-on environment. The event also provided an opportunity for each student to learn and work as a team in order to solve problems together.

A majority of students who competed in the event will be entering into higher education with two-thirds entering into a field within the agriculture industry, with a total of 11 students planning to major in agronomy.



Grains In All Forms Exports On Track To Set New Record

U.S. exports of grain in all forms (GIAF) are on track to set a new record in 2017/2018, with two months of sales left to report, according to data from the U.S. Department of Agriculture (USDA) and analysis by the U.S. Grains Council (USGC).

During the first 10 months of the marketing year (September 2017 to June 2018), the United States exported 98.3 million metric tons (38.7 billion bushels) of grain in all forms, up 2 percent year-over-year from last year’s record-setting pace.

The feed grains in all forms calculation helps capture how much of U.S. coarse grain production is actually used in the world market by including the corn equivalent of co-products like ethanol and distiller’s dried grains with solubles (DDGS) as well as beef, pork and poultry meat exports.

“GIAF exports is a fully-loaded accounting of the importance of exports to the livelihoods of U.S. coarse grain farmers and agribusinesses, particularly in a year of increased volatility and concern over retaliatory tariffs on U.S. agricultural products in multiple markets,” said Mike Dwyer, USGC chief economist. “U.S. GIAF exports could exceed 116 MMT (4.57 billion bushels) at the end of 2017/2018, up from last marketing year’s 114 MMT (4.49 billion bushels) and the second year in a row setting a new record high.”

That achievement would come despite a tumultuous trade environment, serving as a reminder of the resiliency of U.S. exports and of the quality and price competitiveness of U.S. coarse grains and co-products.

Trade with North American Free Trade Agreement (NAFTA) countries and neighbors, Mexico and Canada, has increased GIAF purchases by 3.7 percent and 12.6 percent year-over-year, respectively. In Mexico, corn sales are up 8.9 percent at nearly 12.4 MMT (488 million bushels), and DDGS sales are up 4.2 percent at 1.76 MMT. In Canada, corn imports have nearly doubled to 1.25 MMT (49.2 million bushels), and ethanol purchases are up slightly at nearly 270 million gallons year-to-date.

“GIAF exports to NAFTA partners could exceed 31 MMT (1.22 billion bushels) this marketing year - another record high that would account for 27 percent of worldwide GIAF sales,” Dwyer said. “Those sales signal the continued importance of the well-established supply chains and strong relationships the U.S. agricultural sector shares with both countries.”

Notably, GIAF exports to the European Union have also risen nearly 84 percent year-over-year to 3.78 MMT (149 million bushels) thus far in 2017/2018.

By sector, U.S. ethanol exports accounted for the lion’s share of the overall increase of GIAF exports in June, pushing exports up nearly 22 percent year-over-year to 1.36 billion gallons (12.2 MMT or 480 million bushels in grain equivalent), continuing a surprisingly strong pace of exports. As a result, the Council now believes ethanol exports could reach 1.6 billion gallons (14.4 MMT or 568 million bushels in grain equivalent), setting another new record.

Large customers including Brazil and India have continued to increase ethanol purchases, but other important trading partners including South Korea and Colombia have also realized large increases - up 41 percent and 194 percent year-over-year, respectively.

“The overall growth in ethanol exports showcases the increased focus of ethanol within the Council’s programming and the importance of exports of value-added products,” Dwyer said.

Overall corn, barley and sorghum exports remain down slightly year-over-year. But while corn exports are 1.4 percent lower than last marketing year at this time, USDA’s forecast of increased corn exports for the 2017/2018 marketing year signals the potential for a strong final two months of sales.

Key trading partners including Mexico and Colombia have also purchased larger volumes of U.S. corn compared to this time last marketing year, with both markets growing around 9 percent year-over-year. This export growth reaffirms that U.S. agriculture continues to benefit immensely from access to markets provided by free trade agreements.

“The release of the June numbers has provided some reassurance to producers roiled by tariffs and low prices throughout much of the marketing year,” Dwyer said. “The Council has continued to cultivate relationships with overseas buyers in decades-old markets and aggressively build new worldwide demand for corn, barley and sorghum farmers and the value-added industries they supply.”



Farm Credit Continues its Commitment to Young, Beginning and Small Farmers

In 2017, Farm Credit institutions across the country continued their strong commitment to supporting young, beginning and small (YBS) producers, according to data released by the Farm Credit Administration (FCA).

At its monthly board meeting, FCA board members complimented institutions on their collective and individual efforts to educate prospective and current YBS customers through webinars, classes and multi-year programs.

While Farm Credit’s overall loan volume grew by 3.1 percent, according to the data, loans outstanding to young farmers (age 35 and younger) grew by 4.8 percent, to beginning farmers (10 or fewer years farming) by 5.3 percent and to small farmers (gross sales less than $250,000) by 2 percent in 2017.

“Farm Credit’s young, beginning and small programs continue to deliver strong benefits for prospective and current customers. They focus on helping producers find a path to success through developing business plans, examining balance sheets and other critical steps,” said Farm Credit Council CEO Todd Van Hoose. “Despite the current economic difficulties for farmers and ranchers, Farm Credit remains committed to serving these customers.”

Farm Credit Services of America offers one example of those YBS programs. Its Side By Side and Launch conferences have seen continued interest from young and beginning farmers. As Carl Horne, Vice President for Customer Solutions and manager of YBS programs, said, “With all the barriers to entry in commodity farming, we continue to see increased participation in our educational training programs. We have tripled the size of our YBS conferences in order to help more beginning farmers deal with lower margins. Farm Credit is stepping up to help producers develop and maintain a successful operation."

In discussing the qualitative data, FCA noted that Farm Credit institutions have created new lending programs and enhanced the trainings offered for YBS producers.



Brazil Cuts 2017-2018 Corn Forecast, Raises Soybean Estimate Slightly

Brazilian agriculture agency Conab cut its forecast for the corn harvest in the 2017-2018 season due to less-than-normal rain in some areas and raised its estimate for the soybean harvest slightly.

Conab forecast a total corn crop of 82.2 million metric tons in the 2017-2018 season, down from the 82.9 million tons the agency forecast in July. Brazil's corn harvest in the 2016-2017 season was 97.8 million tons.

The lack of rain in some corn-producing areas corresponded with a period in which precipitation is vital to the plants' development, Conab said.

Brazilian farmers produced a record 119 million metric tons of soybeans in the season, Conab said, up from its estimate of 118.9 million tons in July.

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



USDA to Realign ERS with Chief Economist, Relocate ERS & NIFA Outside DC

U.S. Secretary of Agriculture Sonny Perdue today announced further reorganization of the U.S. Department of Agriculture (USDA), intended to improve customer service, strengthen offices and programs, and save taxpayer dollars.  The Economic Research Service (ERS), currently under USDA’s Research, Education, and Economics mission area, will realign once again with the Office of the Chief Economist (OCE) under the Office of the Secretary.  Additionally, most employees of ERS and the National Institute of Food and Agriculture (NIFA) will be relocated outside of the National Capital Region.  The movement of the employees outside of Washington, DC is expected to be completed by the end of 2019.

“It’s been our goal to make USDA the most effective, efficient, and customer-focused department in the entire federal government,” Perdue said.  “In our Administration, we have looked critically at the way we do business, with the ultimate goal of ensuring the best service possible for our customers, and for the taxpayers of the United States.  In some cases, this has meant realigning some of our offices and functions, or even relocating them, in order to make more logical sense or provide more streamlined and efficient services.”

Realigning ERS with OCE
Moving ERS back together with OCE under the Office of the Secretary simply makes sense because the two have similar missions.  ERS studies and anticipates trends and emerging issues, while OCE advises the Secretary and Congress on the economic implications of policies and programs.  These two agencies were aligned once before, and bringing them back together will enhance the effectiveness of economic analysis at USDA.

Relocating ERS and NIFA outside National Capital Region
New locations have yet to be determined, and it is possible that ERS and NIFA may be co-located when their new homes are found.  USDA is undertaking the relocations for three main reasons:

-    To improve USDA’s ability to attract and retain highly qualified staff with training and interests in agriculture, many of whom come from land-grant universities.  USDA has experienced significant turnover in these positions, and it has been difficult to recruit employees to the Washington, DC area, particularly given the high cost of living and long commutes.

-    To place these important USDA resources closer to many of stakeholders, most of whom live and work far from the Washington, DC area.

-    To benefit the American taxpayers.  There will be significant savings on employment costs and rent, which will allow more employees to be retained in the long run, even in the face of tightening budgets.

No ERS or NIFA employees will be involuntarily separated. Every employee who wants to continue working will have an opportunity to do so, although that will mean moving to a new location for most.  Employees will be offered relocation assistance and will receive the same base pay as before, and the locality pay for the new location.  For those who are interested, USDA is seeking approval from the Office of Personnel Management and the Office of Management and Budget for both Voluntary Early Retirement Authority and Voluntary Separation Incentive Payments.

“None of this reflects on the jobs being done by our ERS or NIFA employees, and in fact, I frequently tell my Cabinet colleagues that USDA has the best workforce in the federal government,” Perdue said.  “These changes are more steps down the path to better service to our customers, and will help us fulfill our informal motto to ‘Do right and feed everyone.’”



NAFTA Renegotiation Should Address Cattle Issues

The Coalition for a Prosperous America (CPA) Wednesday urged US Trade Representative (USTR) Robert Lighthizer to pursue country-of-origin labeling (COOL) issues in the renegotiation of the North American Free Trade Agreement (NAFTA). CPA believes that reinstatement of COOL labeling will help US consumers to find safer food alternatives and will also help to boost domestic agriculture.

"If the president wants to extend his 'Buy American, Hire American' agenda to the nation's agricultural sector, then we need to revise our food labeling policies," said CPA Chair Dan DiMicco. "Americans undoubtedly want to buy safe, domestically farmed beef and pork. They should have the option to choose where their food is raised."

America's cattle industry is the single largest segment of U.S. agriculture, and includes roughly 750,000 cattle farm and ranch operations. Currently, U.S. agriculture is prohibited from distinguishing between domestic and imported beef due to objections raised by Canada and Mexico at the World Trade Organization (WTO). CPA believes the US Trade Representative should negotiate with Canada and Mexico to reinstate COOL labeling for both beef and pork.

"Thanks to objections from Mexico and Canada, global food companies can import unlabeled beef and sell the resulting food products to uninformed consumers, often with a 'Product of USA' label," said Michael Stumo, CEO of the CPA. "As a result, US cattle producers receive a smaller share of the consumer dollar while America's consumers do not benefit from either price savings or important label information. The USTR has an opportunity to address this issue while also helping America's hard-working farmers and ranchers."

Stumo notes that Canada's recently enacted retaliatory tariffs have impacted U.S. beef producers. Addressing COOL labeling disparities can help to level the playing field for America's agricultural sector.

"Without such concessions, American cattle producers on one end of the supply chain and American consumers on the other will continue to be hurt," said Stumo. "Unless we address the food labeling issue, the effectiveness of renegotiating NAFTA to strengthen America's overall economy will be diminished."

R-CALF USA is a board member of CPA. R-CALF USA CEO Bill Bullard says the call to reinstate COOL for beef and pork by the CPA, which represents American manufacturers, labor and agriculture, demonstrates that reinstating COOL is important to all segments of America's economy.



New Magnum Series Tractor Updates from Case IH Boost Productivity and Performance

Building on a legacy of high-horsepower row crop tractor performance, Case IH is pleased to announce Model Year 2019 product updates to its Magnum™ line of tractors. For Model Year 2019, Case IH continues to focus on boosting productivity and performance of both the Magnum wheeled and Magnum Rowtrac™ tractors. Updates include a new warranty program, factory-fit telematics and advanced subscription to Advanced Farming Systems (AFS) Connect™ farm management system, a new 21-inch track option and factory-installed Goodyear® LSW® tire options.

With these updates, the new models are better able to help producers manage operational costs and increase uptime.
   
New warranty program
All Model Year 2019 Magnum tractors will include a three-year, 2,000-hour factory warranty. This pertains to all models and configurations from Magnum 180 to Magnum 380 tractors. The new program helps manage cost of ownership and provides peace of mind when considering repair costs.

Advanced telematics and AFS Connect subscription
All Model Year 2019 Magnum tractors will come with factory-fit telematics and a one-year advanced subscription to AFS Connect. Case IH AFS Connect is the control center for all tractor-to-cloud-based information transfer and management. Customer driven enhancements to AFS Connect include both agronomic and tractor-related data, allowing producers to work smarter and get more done each day by letting cellular communication be their messenger service. Real-time equipment tracking and capture and analysis of agronomic data enable farmers to optimize their operations.

Additional options for agronomic productivity
Since 2015, Magnum Rowtrac tractors have offered producers a way to address the challenges of traction-limited soils and adverse planting and tillage conditions, all while maintaining the best agronomics possible. In 2019, a new 21-inch track option was added to maximize flotation and minimize plant root zone interference especially in crops planted on beds with 38-inch and 36-inch row spacing. All Model Year 2019 Magnum tractors will be fit with track options that allow a maximum travel speed of 25 mph for all track widths: 16, 18, 21, 24 and 30 inches.

To improve serviceability, all Magnum Rowtrac tractors are now fit with polyurethane roller wheels that feature a lug bolt/wheel hub design to enable simple removal and replacement if ever required. They can be serviced by removing the lug bolts and roller from the hub, installing a new roller and reinstalling the lug bolts.

Factory-installed Goodyear tire options
Magnum wheeled tractors offer excellent performance in an almost limitless variety of applications. New tire technology continually evolves and provides new options for producers. Case IH is pleased to offer new factory-installed Goodyear LSW 1100/45 R46 rear and 1000/40 R32 front tires as an option on Magnum 250, 280, 310, 340 and 380 wheeled tractors.



Building on Proven Performance, Case IH Launches New Features for Steiger Series Tractors

Case IH is advancing its Steiger® Quadtrac® and Rowtrac™ tractor lineup with new features that reinforce the series’ already proven performance. Several drive system advancements, including a new high-speed Rowtrac design, join a factory-fit enhanced telematics offering that increases management capability and flexibility. In addition, all Model Year 2019 tractors used in agriculture applications now include an industry-exclusive warranty and a one-year advanced subscription to Advanced Farming Systems (AFS) Connect™. These innovations help ensure that Model Year 2019 Steiger tractors will deliver even more power, productivity and efficiency for producers.

“For more than 20 years, we have been relentless in refinement of our track technology, giving us a head start and allowing us to lead the pack,” said Mitch Kaiser, Case IH Steiger tractor marketing manager. “This series of tractors is already strong, smart and simple, and these advancements are helping producers get even more power, performance and productivity that leads to lower total cost of ownership.”

Industry-exclusive warranty and technology
The new three-year, 2,000-hour warranty is an industry-exclusive included on Model Year 2019 Steiger tractors used in agriculture applications. Along with the warranty, Steiger tractors now come with factory-fit telematics and a one-year subscription to AFS Connect. Case IH AFS Connect is the control center for monitoring and management of your fleet. Enhanced data sharing capabilities allow you to transfer A/B guidance lines, application and planting prescriptions, and as-applied maps, as well as monitor fault codes and key operating parameters. Producers are now able to both track and transfer data seamlessly to and from their Steiger tractors.

New high-speed track design
Steiger Rowtrac tractors now feature an improved track design for high-speed roading — capable of up to 25 mph — for tracks of all widths with no mechanical speed limitation. Plus, a new 21-inch configuration provides the only narrow-row track option available in the industry. These options provide producers with efficiencies even before their tracks touch the dirt, as they move between fields faster.

Daily maintenance checks are now easier with new clear wheel caps with a max fill line molded in and a recessed view window for better oil visibility. Wheels now also feature a bolt-on design. The new design uses a polyurethane roller surface bonded to a wheel that bolts to a hub fitted to a new axle assembly. This reduces the time required for service and improves uptime if roller repairs are needed.

With more track options than any other company, Case IH partners with three track suppliers helping fit different producer needs. One of the suppliers, Soucy, offers 18- and 24-inch belts with five-year prorated warranty on tracks plus a lifetime warranty on traction lug blowout.

Improved durability and performance
New, exclusive and patented Steiger Quadtrac and Rowtrac design features a fully cast undercarriage beam with roller wheel suspension, which provides increased strength, durability and a superior ride. This design, along with exclusive factory-installed single Goodyear® LSW® tires, makes Steiger Quadtrac and Rowtrac some of the best agronomic 4WD tractors in the market, providing the most power to the ground with the least amount of compaction to your fields for increased yields.

An additional 90-gallon steel fuel tank option for Rowtrac tractors offers increased fuel tank size, making it easier for producers to stay in the field all day to increase productivity. The steel fuel tank also adds durability to the frame and integrates with tri-point oscillation to evenly distribute the weight of the tractor across the frame for reduced compaction and maintain the agronomic quality of the soil.

New twin-flow Smart Torque hydraulic pump option provides up to 12 percent more horsepower, equating to increased drawbar horsepower when producers need it to pull heavy loads, such as air seeders or large planters.

“With all of these new features and their added benefits to producers, the Steiger Quadtrac and Rowtrac tractors have been propelled well beyond the competition,” Kaiser said. “This series represents the most powerful equipment, built and backed by the right expertise, to help producers achieve High-Efficiency Farming.”



The Andersons Reports Lower Sales, but Higher Net Income

The Andersons, Inc. announces financial results for the second quarter which ended June 30. The company reported second quarter 2018 net income of $21.5 million on revenues of $911 million. This result is a significant improvement over the net loss attributable to the company of $26.7 million.

Results for the quarter included pretax impairment charges of $4.7 million on idle railcars held for sale and $1.6 million on the Grain Group's Como, Tennessee, facility in anticipation of its recent sale. The decrease in revenues year over year was primarily the result of the Company's adoption of new revenue recognition rules at the beginning of 2018 that have changed the accounting treatment of a significant amount of Grain's sales transactions. This change has no impact on the amount of gross profit recognized on these transactions.

"As in the first quarter, our Grain and Ethanol businesses each posted significantly better year-over-year results, but our Plant Nutrient and Rail businesses posted lower results compared to last year," said CEO Pat Bowe.

"For the seventh consecutive quarter, our Grain Group recorded improved year-over-year results," Bowe continued. "The group's second quarter results improved by approximately $4.5 million when excluding the Tennessee asset impairment charge, and were highlighted by better results from merchandising and Lansing Trade Group. Ethanol Group results improved once again year over year due to higher volumes linked to plant optimization and improved DDG margins.

The Plant Nutrient Group's lawn and contract manufacturing business continued to grow, but that was not enough to offset the continued squeeze in margins for both primary and specialty nutrients, which suffered from continued competitive pricing pressure. The Rail Group's results were comparable year over year notwithstanding its decision to scrap about 600 idle cars. Utilization and total cars on lease improved sequentially and year over year, signaling a continued modest market upturn."