Thursday September 27 Hogs & Pigs Report + Ag News

NEBRASKA HOG INVENTORY UNCHANGED

Nebraska inventory of all hogs and pigs on September 1, 2018, was 3.45 million head, according to the USDA's National Agricultural Statistics Service. This was unchanged from September 1, 2017, but down 1 percent from June 1, 2018.

Breeding hog inventory, at 430,000 head, was up 5 percent from September 1, 2017, but unchanged from last quarter. Market hog inventory, at 3.02 million head, was down 1 percent from last year, and down 2 percent from last quarter.

The June - August 2018 Nebraska pig crop, at 2.09 million head, was down 6 percent from 2017. Sows farrowed during the period totaled 185,000 head, down 3 percent from last year. The average pigs saved per litter was 11.30 for the June - August period, compared to 11.65 last year.

Nebraska hog producers intend to farrow 190,000 sows during the September - November 2018 quarter, down 3 percent from the actual farrowings during the same period a year ago. Intended farrowings for December 2018 - February 2019 are 190,000 sows, up 6 percent from the actual farrowings during the same period a year ago.



IOWA HOGS & PIGS REPORT

On September 1, 2018, there were 23.6 million hogs and pigs on Iowa farms, according to the latest USDA, National Agricultural Statistics Service – Hogs and Pigs report. This is the highest inventory on record, up 4 percent from the previous year.

The June-August 2018 quarterly pig crop was 6.38 million head, up 57,000 head from the previous quarter and 10 percent above last year. A total of 570,000 sows farrowed during this quarter. The average pigs saved per litter was a record high of 11.20 for the June-August quarter, unchanged from last year.

As of September 1, producers planned to farrow 560,000 sows and gilts in the September-November quarter and 540,000 head during the December 2018-February 2019 quarter.



United States Hog Inventory Up 3 Percent

United States inventory of all hogs and pigs on September 1, 2018 was 75.5 million head. This was up 3 percent from September 1, 2017, and up 3 percent from June 1, 2018. 

Breeding inventory, at 6.33 million head, was up 3 percent from last year, and up slightly from the previous quarter.

Market hog inventory, at 69.2 million head, was up 3 percent from last year, and up 4 percent from last quarter.

The June-August 2018 pig crop, at 34.2 million head, was up 3 percent from 2017. Sows farrowing during this period totaled 3.19 million head, up 3 percent from 2017. The sows farrowed during this quarter represented 50 percent of the breeding herd. The average pigs saved per litter was a record high of 10.72 for the June-August period, compared to  10.65 last year.

United States hog producers intend to have 3.16 million sows farrow during the September-November 2018 quarter, up 2 percent from the actual farrowings during the same period in 2017, and up 4 percent from 2016. Intended farrowings for December-February 2019, at 3.12 million sows, are up 2 percent from 2018, and up 4 percent from 2017.

The total number of hogs under contract owned by operations with over 5,000 head, but raised by contractees, accounted for 48 percent of the total United States hog inventory, up from 47 percent the previous year.



POLLAK TO COORDINATE UNL INTEGRATED BEEF SYSTEMS INITIATIVE

John Pollak, former director of the U.S. Meat Animal Research Center, has been named coordination lead for the Nebraska Integrated Beef Systems Initiative at the University of Nebraska.

The Nebraska Integrated Beef Systems Initiative was launched in 2016 in the university’s Institute of Agriculture and Natural Resources. It is designed to leverage the many systems-based efforts underway at Nebraska to advance science-driven innovation in development of resilient systems for food animal production, health and well-being, and to train the diverse workforce required. With broad capacity across research, teaching and outreach, this initiative will take advantage of the state and university’s potential to lead the development of resilient, integrated systems for the production and delivery of nutritious, high-quality beef.

“Dr. Pollak is uniquely qualified for this role given his 30 plus years of experience as an esteemed expert in disciplines related to beef production, and his long history of service for beef producers,” said Archie Clutter, dean of IANR’s Agricultural Research Division. “With John’s leadership we’re confident that this initiative will result in far-reaching value for future beef production systems.”

Pollak served as USMARC director from 2010 to 2017. He began his career as an assistant professor of animal science at the University of California, Davis. Before coming to USMARC,  Pollak served as a professor of animal science at Cornell University for 29 years where he and his colleagues developed methods for genetic evaluation that have become the standard for global beef cattle breeding. He holds a bachelor’s degree in animal science from Cornell University. Pollak earned his master’s and doctoral degrees in animal breeding from Iowa State University.

 “When I first arrived at USMARC I attended a meeting of the Nebraska Cattlemen where I first heard of the Cattlemen’s goal for Nebraska to become the epicenter of beef production. I thought that reaching that objective would require a significant effort in R&D that addressed issues both within and across the multiple segments of the industry,” Pollak said. "Much has been accomplished in the past eight years both at UNL and USMARC towards providing that support. The opportunity to work with faculty at UNL and contribute to the further development of a beef systems initiative is very exciting, and as the program matures I look forward to expanding my interactions to involve industry partners.” 

IANR funding for the Nebraska Integrated Beef Systems Initiative has been used to support a range of transdisciplinary studies related to beef production, including a project that leveraged the institutional funding to secure an additional $1 million from the Foundation for Food and Agriculture Research. The project, led by James C. MacDonald, associate professor of animal science and ruminant nutrition, is investigating how to improve land use efficiency through the integration of livestock and crop production systems. To learn more about this project, visit https://news.unl.edu/newsrooms/today/article/nebraska-project-aims-to-improve-land-use-efficiency/.



IANR reappoints Hibberd to extension leadership post

The Institute of Agriculture and Natural Resources at the University of Nebraska–Lincoln announced today, the reappointment of Chuck Hibberd to the role of dean and director of Nebraska Extension for a five-year term.

The action comes following a planned five-year review of the leader.

Hibberd has served as dean of Nebraska Extension since October 2012. Under his leadership, Extension has adopted a new strategic team structure to address issues facing Nebraskans. The 18 issues, identified by clientele, range from economic viability for agricultural producers, to engaging underserved youth. The issue team model has allowed Extension to be a more demand-driven and interdisciplinary resource for the state.

Nebraska Extension also administers the Nebraska 4-H Youth Development program. In Nebraska, 4-H reaches 1 in 3 age-eligible youth and families in all 93 counties, with the support of over 12,000 volunteers.

“The needs of the state are very unique and rapidly changing. I’m proud of the way that Dean Hibberd has guided Nebraska Extension in its efforts to address these needs in more ways than ever before,” said IANR Harlan Vice Chancellor Mike Boehm. “With Chuck’s foresight and leadership, I am confident in Extension’s ability to serve Nebraskans moving forward.”



Fuel the Cure in Nebraska throughout October

Throughout October, drivers can fuel cancer research by choosing American Ethanol blends at select retail stations participating in Fuel the Cure throughout Nebraska.

Fuel the Cure is a Nebraska awareness promotion designed to bring attention to the benefits of cleaner-burning American Ethanol blends available throughout the state. For every gallon of ethanol-blended fuel – E15 to flex fuel E85 – purchased between Oct. 1-31, the participating fuel station will donate 3 cents per gallon with proceeds to benefit the Fred & Pamela Buffett Cancer Center.

“Motorists have a choice of biofuels that significantly reduce pollutants,” said Sarah Caswell, Nebraska Ethanol Board administrator. “Gasoline contains as many as 300 different chemicals. Many of these chemicals are used to increase octane — but some are known and suspected to cause cancer. Higher blends of biofuel dilute the level of toxic additives in our fuel, which helps reduce pollution and the threat to public health.”

Participating retailers will have pink handles on fuel pumps and signs for Fuel the Cure. Drivers will want to stay tuned throughout October as some retailers may offer discounts or special giveaways at their location.

E15 (15 percent ethanol and 85 percent gasoline) is approved for use in all passenger vehicles 2001 and newer. Ethanol blends higher than 15 percent are approved for use in flex fuel vehicles. One in seven Nebraskans are driving a flex fuel vehicle, which can run on any blend of American Ethanol up to E85 (85 percent ethanol and 15 percent gasoline). Drivers can check their owner’s manual to see if they’re driving a flex fuel vehicle. The vehicle might also have a flex fuel badge on the trunk or tailgate — or a yellow gas cap.

“Using higher blends of ethanol is a good decision for all Nebraskans,” said David Bruntz, Nebraska Corn Board chairman and farmer from Friend, Neb. “It helps the state’s economy, consumers’ wallets, vehicle engines and the environment. Ethanol’s impact across the country and the globe continues to grow, but it starts right here at home.”

The Nebraska Corn and Ethanol Boards, along with Renewable Fuels Nebraska, sponsor Fuel the Cure in conjunction with retail stations. For more information visit, fuelthecure.pink.



NRDs Raise Nearly $24,000 for Youth Natural Resources Education and Honor Award Winners

The 2018 Nebraska Association of Resources Districts (NARD) Annual Conference was held at the Younes Conference Center in Kearney, September 24th – 25th and focused on protecting lives, property and the future of Nebraska’s natural resources.  This year more than 400 natural resources districts (NRD) managers, staff, board members, conservation partners and the public received new information on many natural resources and agriculture developments and projects going on now.

Participants had a variety of educational break-out sessions to choose from.  Sessions focused on water scarcity, overall water management, soil health, groundwater plans and water quality successes in Nebraska. Other events included recognition of Hall of Fame inductees, conservation award winners, master conservationist awards and a speech by Lieutenant Governor Mike Foley.

The Nebraska Association of Resources Districts Foundation which provides financial assistance to youth programs in natural resources and agriculture, raised nearly $24,000 this year during its live and silent auctions, golf and shootout fundraisers. These funds will assist in supporting more than 11 different educational programs in Nebraska to encourage children and young adults to learn more about our natural resources and consider a career in natural resources.

During the Hall of Fame ceremony, three individuals were inducted into the Natural Resources Hall of Fame. They include Keith Rexroth from Sidney, Nebraska. Ron Milner from Imperial, Nebraska, and Don McCabe who grew up near Newcastle and currently resides in Lincoln, Nebraska. This is the NRDs’ 46th Anniversary.

Hall of Fame inductee categories include: Natural Resources District Board Member, Natural Resources District Employee and NRD Supporter which includes individuals outside the NRD system.

Hall of Fame inductee Keith Rexroth from Sidney, Nebraska, was nominated for the Hall of Fame Natural Resources Districts Board member award by the South Platte Natural Resources District. Rexroth spent 24 years as a member of the South Platte Natural Resources District (SPNRD) Board of Directors, 16 of those as Chairman. One of his major achievements during those years was his commitment and input into developing an Integrated Management Plan (IMP) which will help protect water resources into the future. He’s received numerous awards including the 1983 Outstanding Young Farmer Nebraska award, 2005 NRD Director of the Year award and 2013 University of Nebraska-Lincoln Panhandle Research and Extension Center Outstanding Service to Panhandle Agriculture award. Rexroth received an appointment by the governor as an advisor for the Three-State Cooperative Agreement on the Platte River, has been a member of the High Plains Ag Lab Advisory board since 1973, was a board member for the USDA Agricultural Research Service station in Akron, Colorado and has spent countless hours volunteering his time to youth education as well.

Hall of Fame inductee, Ron Milner posthumously was nominated for the Hall of Fame NRD Staff category by the Upper Republican Natural Resources District. His wife resides in Imperial, Nebraska. Milner served as the first general manager of the Upper Republican Natural Resources District (URNRD) from 1972 to 1997. He helped pass the Groundwater Management Act in 1976 and with Milner’s guidance, the URNRD board adopted an order that required metering and reporting of groundwater use, making the NRD the first in the state to do so in 1978. Metering was done so that Milner and the NRD would be able to see how much water was being used and to make sure that irrigators were not going over their newly allotted allocation. There was great opposition to the metering, but Milner knew it was the right decision to make and it would be beneficial to the conservation of groundwater. He created the first Groundwater Management Area in the state and enacted well spacing rules as well.

Hall of Fame inductee, Don McCabe, was nominated by the Central Platte Natural Resources District to be inducted into the Hall of Fame as a Natural Resources Districts Supporter.  McCabe grew up on a farm near Newcastle, Nebraska. He currently resides in Lincoln. He worked for the Nebraska Farmer magazine for 37 years and was instrumental in helping farmers in Nebraska learn about how to implement conservation practices to protect Nebraska’s soil and water. He earned a journalism degree from the University of Nebraska and served in the U.S. Navy for four years. McCabe covered natural resources issues that needed to be addressed through Groundwater Management Plans, to new techniques and technologies available to help farmers address production and natural resources issues. He’s key in helping lower nitrate levels in the Central Platte Natural Resources District due to his articles focusing on conservation efforts to achieve such a goal.

Nebraska Association of Resources Districts Conservation award winners include:
Director of the Year – Don Kavan of Morse Bluff, NE - Nominated by Lower Platte North NRD
Educator of the Year – Philip Simpson with Burwell Junior/Senior High School - Nominated by Lower Loup NRD
Tree Planter of the Year Award - Jerry Fullerton of Cody, NE - Nominated by Middle Niobrara NRD
Outstanding Grassland Conservation Award - The Mathewson Family of Potter, NE - Nominated by South Platte NRD
Outstanding Soil Stewardship Conservation Award - Scott and Barbara Gonnerman of Waco, NE - Nominated by Upper Big Blue NRD
Outstanding Community Conservation Award - Dan Kathol of Hartington, NE - Nominated by Lewis and Clark NRD
Omaha World-Herald and IANR Master Conservationist Award Winners include:
    Agriculture – Scott and Barbara Gonnerman of Waco, NE - Nominated by Upper Big Blue NRD
    Education – Shell Creek Watershed Monitoring Program in Newman Grove High School - Nominated by Lower Platte North NRD



NEBFARMPAC Endorses Bob Krist for Governor

Nebraska Farmers Union’s Political Action Committee, NEBFARMPAC, announced its unanimous and enthusiastic endorsement of Bob Krist for Governor in in the 2018 general election.

Vern Jantzen of Plymouth, NEBFARMPAC President said, "For Nebraskans who want a Governor that is willing to step up and tackle Nebraska’s overuse of property taxes to pay for K-12 schools, Bob Krist is the clear, hands down choice for Governor. Nebraska agriculture is facing the worst financial crisis since the mid-1980’s. Our net farm income is half of what it was five years ago.  Nebraska’s property tax intensive state tax system must be addressed, and Bob Krist is willing to listen and lead on that critical issue.”

John Hansen, NEBFARMPAC Secretary said, “Our organization helped create our state’s unique one house, non-partisan, unicameral legislature. Our state has been well served because it has mostly avoided the blinding dysfunction of partisan politics that paralysis our Congress. We are extremely alarmed by Governor Ricketts heavy handed unprecedented meddling in Legislative elections. He uses his family fortune to buy control of the Legislature. He recruits candidates to run against incumbent state senators, and fund their campaigns. His meddling in legislative elections undermines the relationship between state senators and their Governor, their working relationship with each other, and their relationship with their own voters back home in their district. A state senator should not be put in a position where that pick between representing the will of the voters back home, or incurring the wrath of the Governor who will recruit a candidate to run against them if they cross him. ”

“By contrast, Bob Krist’s 10 years of service in the Legislature is a shining example of the independent, non-partisan citizen servant state senator. He is a good listener, good at bringing people together to solve problems, good at asking questions and gathering information, and willing to tackle tough issues. We believe he has a deep abiding respect for our state’s unicameral system of government, its traditions, and its non-partisan independence. He is the kind of state senator George Norris would be proud of,” Hansen said. “Bob Krist is a good leader and he will make a great Governor.”



Gragert Named “Friend of Agriculture” by Nebraska Farm Bureau PAC

Tim Gragert of Creighton has been designated a “Friend of Agriculture” by Nebraska Farm Bureau – PAC (NEFB-PAC), Nebraska Farm Bureau’s political action committee. Gragert is seeking to represent District 40 in the Nebraska Legislature.

“Tim Gragert has a proven track record of service to his community. Whether through his 40 years of military service, 25 years as a member of the Creighton Volunteer Fire Department, or 12 years serving on the Creighton Public School Board, he has a long history of public service,” said Mark McHargue of Central City, chairman of NEFB-PAC and first vice president of Nebraska Farm Bureau. “We are happy to lend him our support as he seeks to represent and provide a voice for the people of District 40 in the Nebraska Legislature.”

According to McHargue, Gragert earned the “Friend of Agriculture” designation for his understanding of the importance of agriculture and his desire to be a voice for agriculture in Lincoln.

“As a life-long resident of District 40, Tim understands how important agriculture is to his District and to our state. He’s made it clear that he will fight to lower property taxes which have been a major issue, not just for farmers and ranchers, but for all property owners across our state. We are pleased to count Tim Gragert among those who have received our “Friend of Agriculture” designation,” said McHargue.

Nebraska Farm Bureau’s “Friend of Agriculture” designation is given to selected candidates for public office based on their commitment to and positions on agricultural issues, qualifications, previous experience, communication abilities, and their ability to represent their district. 



Siouxland Ag Lenders Seminar Provides Dairy Management Information

Helping ag lenders and consultants manage client portfolios will be the focus of the second Siouxland Ag Lenders Seminar, Nov. 1 in Orange City, Iowa. The program will feature presentations by Iowa State University Extension and Outreach specialists and other leading industry experts.

Lenders who serve agricultural clients – especially those who work with dairy operators – in Iowa, Minnesota, Nebraska and South Dakota are encouraged to attend, as the seminar will focus on agricultural market outlooks, the farm bill, financial recordkeeping and accounting, insurance and farm safety procedures.

“Ag lenders know that risk management continues to be a major variable for profitability in most ag enterprises,” said Fred M. Hall, dairy specialist with ISU Extension and Outreach. “For that reason, understanding the current market trends and risks is a necessary part of farm management assistance. Lenders working with dairy operators have the additional necessity of understanding a complex system of milk marketing, labor inputs and federal policy implications.”

Presentations during the seminar include:
-    2018 Farm Bill, by Joe Outlaw, professor and extension economist at Texas A&M University.
-    Milking Robots: Do They Pay? by Larry Tranel, dairy specialist with ISU Extension and Outreach.
-    Dairy Market Outlook, by Robert Cropp, emeritus professor of agricultural and applied economics at the University of Wisconsin-Madison.
-    Market Outlook, by Chad Hart, associate professor and extension economist at Iowa State University.
-    Barn Safety, Fire Prevention and Insurance Required, by Larry Wyatt, senior investigator and ag engineer with Grinnell Mutual Insurance Company.
-    Accrual Accounting and the Necessity of Good Financial Records, by Gary Vande Vegte, managing partner of Van Bruggen & Vande Vegte CPAs and Financial Advisors.

“Our goal is that Siouxland lenders have a local source for current information, which they can use as they begin their annual client reviews,” Hall said. “The presenters have national standing and are actively participating in the national discussion in their topic areas.”

Registration is due by Oct. 26 and is $80 for the first person from a business or organization and $50 for each additional attendee. A registration form is available online. Registration includes lunch, refreshments and informational materials. Attendees can register the day of the event, but the event day $100 per person registration fee does not include lunch.

The event will begin at 9 a.m. on Nov. 1 and conclude at 3:30 p.m. It will be held at The Triple Box, 4758 Ironwood Avenue, Orange City.

The seminar is supported by Iowa Farm Bureau, Iowa Bankers Association, Minnesota Bankers Association, Nebraska Bankers Association and South Dakota Bankers Association.



NBB Appreciates Bipartisan Support for Biodiesel Tax Incentive Extension

Today, the National Biodiesel Board (NBB) thanked the 46 Congressmembers – led by Rep. David Young (R-IA) and Rep. Dave Loebsack (D-IA) – who voiced their strong support for a multi-year extension of the biodiesel tax incentive. The Congressmembers representing states from California to Connecticut asked for a resolution in the coming weeks in a letter to House Speaker Paul Ryan (R-WI), Democratic Leader Nancy Pelosi (D-CA), Majority Leader Kevin McCarthy (R-CA) and Democratic Whip Steny Hoyer (D-MD).

The letter notes that the biodiesel tax incentive was retroactively renewed for 2017 in the Bipartisan Budget Act of 2018, passed in March this year. Unfortunately, the incentive was not extended to 2018 and is currently expired.

“Biodiesel and renewable diesel producers are putting investments on hold in the face of the uncertainty created by the off-again, on-again nature of tax incentive eligibility. A multi-year extension of the biodiesel and renewable diesel incentives will provide the industry the certainty it needs to continue to generate the economic and environmental public benefits,” the Congressmembers state in the letter.

Kurt Kovarik, NBB’s Vice President of Federal Affairs, added, “Right now, soybean farmers are harvesting a record crop but facing extreme uncertainty about the price they’ll receive and whether they’ll have access to markets. Biodiesel adds value to every bushel of soybeans and provides a market for the growing surplus of soy oil. A multiyear extension of the biodiesel tax incentive would give farmers a welcome bit of certainty this year.

“It would further provide biodiesel producers, blenders and retailers the opportunity to plan and expand the market for biodiesel, which would benefit truck drivers, consumers and others all along the value chain. NBB appreciates the leadership of Representatives Young and Loebsack and the support of the bipartisan group of Representatives from across the country that co-signed the letter.”



FDA Requests Comments on Dairy Food Labeling
NMPF President and CEO Jim Mulhern

“We welcome the public comment request announced today by the U.S. Food and Drug Administration (FDA) that we hope will finally curtail the misleading labeling practices of plant-based foods imitating real dairy products. NMPF will provide additional perspective explaining why the agency must enforce its own labeling regulations and limit the use of standardized dairy terms to products that come from an animal.

“We are pleased that after years of engagement with FDA, the agency is finally addressing our concerns about how these plant-based products are inappropriately marketed to consumers. In fact, the docket recognizes many of the same issues we’ve brought to light over the last four decades: that plant-based products are packaged, merchandized and sold in the same way as real dairy foods, yet provide fewer nutrients and therefore cannot be considered suitable substitutes.

“However, our comments will further emphasize that at its heart, our concern over accurate labeling is a concern not just about nutritional equivalence and the implications for public health. A food identified by a standard of identity is so much more than just a collection of nutrients. A standardized dairy food, like milk, yogurt or butter, is defined by its inherent characteristics including how and where it is sourced, and its sensory attributes and performance properties. Quite simply, just adding plant protein, calcium and a few other ingredients to water does not make it milk.

“We appreciate Commissioner Gottlieb’s efforts to evaluate current food labeling practices and how they can impact public health. But, as important as that is, we also believe FDA’s efforts must go a step further. We will remain engaged throughout this and future processes to keep a spotlight on this critical issue.”



Alberta Cattle Need More Feed Grain; Council Encourages U.S. Corn, DDGS Use

Drought conditions on the Canadian prairie have reduced harvest yields and caused more yearling cattle to move into feedlots earlier. U.S. corn and distiller’s dried grains with solubles (DDGS) can help supplement this domestic shortfall and meet increased demand for feed - as a U.S. Grains Council (USGC) mission promoted to feedyards in Alberta in September.

“The lots varied widely from calves only to finishing feeders and everything in between,” Hanson said. “These end-users are looking for a consistent, reliable supply of U.S. corn and DDGS and practical solutions to problems related to railroad timing, reliable offloading and additional investment needs.”

The marketplace for Canadian livestock feed demand is highly competitive with many alternative energy and protein feed ingredients available for producers. The 2018 Canadian harvest, however, has realized lower yields for wheat and barley, leading to less overall tonnage. Additionally, the harvest has higher quality, which is moving the limited volume available into export and food markets versus feed markets.

The United States is well-positioned to fill this domestic grain shortfall due to close geographic proximity to the U.S. market, including northern U.S. ethanol plants that offer U.S. DDGS for local feed rations, and the market access provided by the North American Free Trade Agreement (NAFTA). Overall, Canada has purchased 1.44 million metric tons (56.7 million bushels) of U.S. corn thus far in the 2017/2018 marketing year (Sept. 2018-July 2018), more than double the previous marketing year, in addition to 605,000 tons of U.S. DDGS.

The Council continues to work with Alberta feedlots to address concerns related to challenges with Canadian rail transload and delivery and provides practical solutions to buffer these challenges.

“Alberta livestock producers have mounting concerns about feed grain availability and rising prices are putting U.S. corn into a competitive price with Canadian grain,” Dowler said. “Given that corn was widely available in Alberta last year, more cattle feeders are well aware of the opportunity to feed U.S. corn and DDGS and are becoming more knowledgeable about pricing and logistics, in large part due to the Council’s work.”

Furthermore, the same drought conditions are affecting pastures, and producers are selling yearling calves to feedlots about a month earlier than normal. The combination of these market conditions means the Council’s visit was well-timed as cattle feeders are making important decisions about grain buying for coming months.

“All indications are that U.S. corn will move into Alberta, with potentially more than one million tons required to make up for domestic shortfalls in feed grains,” Dowler said. “On the final day of the Council’s travel, more than 100,000 tons of corn traded in Southern Alberta attributed to increased awareness of the use of corn and DDGS in cattle feed rations provided by team members and downward pressure on corn prices.”



Auto Import Tariffs Will Prompt More Retaliation Against American Agriculture, Warns NPPC

U.S. tariffs on auto imports likely would prompt retaliation from some of American agriculture’s biggest trading partners, leading to catastrophic financial harm to farmers, warned the National Pork Producers Council in comments submitted today to the Senate Committee on Finance.

In its ongoing efforts to realign U.S. trade policy, the Trump administration is considering putting duties on autos and auto parts under the 1962 Trade Expansion Act’s Section 232 for national security reasons.

NPPC reiterated its opposition to U.S. tariffs imposed to date – Section 232 duties on steel and aluminum imports and tariffs on imported goods from China related to that country’s theft of U.S. intellectual property and forced transfers of U.S. technology – and to any new tariffs.

“American agriculture generally and U.S. pork producers specifically have borne the brunt of trade retaliation from some of our top trading partners,” said NPPC President Jim Heimerl, a pork producer from Johnstown, Ohio. “We can’t afford to take another hit. If we do, a lot of farmers could go out of business, and consumers will pay a lot more for food.”

According to an estimate from Iowa State University economists, an initial 25 percent Chinese tariff on U.S. pork was the main cause of hog futures dropping by $18 per pig from March through May, or $2 billion industrywide on an annualized basis. In June, Mexico imposed a 10 percent tariff on U.S. pork, and in July, it increased the duty to 20 percent, and China imposed another 25 percent tariff. (Mexico is the U.S. pork industry’s No. 2 export market; China is No. 3.)

U.S. tariffs on auto imports could affect Canada, Japan, Mexico, South Korea and at least four members of the European Union – Germany, Italy, Sweden and the United Kingdom – as well as countries that supply parts to those nations. All are customers for U.S. pork. Canada, Japan, Mexico and South Korea are four of the U.S. pork industry’s top five export markets.

“Tariff retaliation from any of those countries would be bad for us,” Heimerl said, “but if we get duties from Canada, Japan, Mexico or South Korea – or all of them – U.S. pork and other U.S. farm exports would be dealt a devastating blow.”



Farm Bill Unlikely Before Lame Duck Session
ASA Newsletter

With the end of Fiscal Year 2018 approaching this weekend, time will run out on the farm bill. Major programs, including crop insurance and Supplemental Nutritional Assistance Program (SNAP), or food stamps, will continue because they are permanently authorized and funded.

The 2014 Act also provides funding through the marketing year for 2018 program crops, but the dairy program will expire at the end of December. While the Conservation Reserve Program is permanently funded, its authority will lapse in October, meaning that U.S. Department of Agriculture (USDA) will honor existing contracts but not be able to enter into new ones. Then there are 39 so-called “orphan” programs that will lose both authorization and funding on Oct. 1, including certain conservation programs, most bioenergy (biofuels), rural development and agricultural research programs.

The Foreign Market Development (FMD) program will lose authorization and funding on Oct. 1, while the Market Access Program (MAP) will remain authorized and funded through December.  ASA has worked with other trade associations that participate in FMD and MAP to maintain authorization and increase funding for these export promotion programs in the new farm bill.

Negotiations between the House and Senate on the 2018 farm bill have bogged down on several issues, including the SNAP work requirements in the House bill.  A compromise under which waivers of these requirements by states would be restricted has been floated, but no agreement is in sight.

Another provision in the House bill would make base acres that weren’t planted to a program crop in 2009 to 2017 ineligible for Title 1 payments under Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC). Savings from this change would be used to allow producers who experienced severe drought in 2009 to 2012 to update their yields under the PLC program. The base change provision is controversial because farmers who have been allowed to underplant their base and receive payments since the 1996 Farm Bill would have their base and payments taken away.

It is highly unlikely that Congress will return to Washington in October to finish the farm bill. The annual appropriations process for Fiscal Year 2019 has made more progress than in recent years, with a package of three of the 12 bills signed into law by President Donald Trump earlier this month.

Other packages are still stymied, including one that includes agricultural appropriations. However, a catch-all Continuing Resolution is included in a bill that also covers appropriations for the Department of Defense, which is considered “must pass” legislation. Assuming the CR passes and is signed by the President, funding for the government will continue until it expires on Dec. 7.

Legislators will return after the Nov. 6 mid-term elections to elect new leaders for the 116th Congress, but won’t get around to finishing the spending bills and trying to finalize the farm bill until after Thanksgiving.

ASA and its state affiliates are calling on Congress to complete the next farm bill this year rather than consider an extension when they come back to Washington. A short-term extension would avoid the “dairy cliff” at the end of December, but would mean starting the farm bill process over again with a new Congress and potentially new members and leaders of the Agriculture Committees.

Faced with continuing low prices and a volatile trade environment, no one in production agriculture wants to see added uncertainty in the support provided through the farm bill.  As a result, and if the farm bill isn’t finished in the lame duck session, there has been discussion of possibly extending the 2014 Farm Bill for three years – beyond the term of the next Congress and hopefully to a more stable farm economy.

ASA Joins Effort to Ensure Appropriations Bills Don’t Undermine BE Disclosure Law
Late last week, ASA joined others in the ag value chain on a letter to House and Senate appropriations Committee leadership regarding a provision impacting the disclosure of bioengineered (BE) food. The House and Senate are conferencing their respective versions of the appropriations bill and the letter aims to ensure that the final bill does not include any language that would undermine USDA’s uniform disclosure standard or create confusion for consumers. USDA is expected to finalize rules on BE foods later this year.



Farmers Union Urges Administration to Allow E15 Year-Round, Reconcile Billions of Gallons of Lost Demand for Biofuels

Ahead of an expected Trump Administration announcement on changes to the nation’s biofuel policies, National Farmers Union (NFU) is urging the President to follow through on his promises to support American family farmers and the biofuel industry by allowing year-round use of E15 gasoline, ceasing undue hardship waivers to oil refiners, and making up for lost demand as a result of previous waivers.

Building on a recent letter from farm and biofuel groups to President Trump, NFU President Roger Johnson said that while an E15 waiver is a step in the right direction towards expanded use of American grown biofuels, such a measure on its own would not make up for the billions of gallons of lost demand for ethanol that have resulted from Renewable Fuel Standard (RFS) exemptions handed out by former EPA chief Scott Pruitt.

“The historic decline in the farm economy over the past five years has been exacerbated by mishandling of the nation’s chief biofuel policy, the Renewable Fuel Standard,” said Johnson. “While a move to allow year-round use of E15 gasoline is expected to increase domestic demand for ethanol by 1.3 billion gallons over the next five years, that number pales in comparison to the projected 4.6 billion gallons worth of demand that would be lost over the next 6 years if EPA continues handing out hardship waivers to oil refiners.”

The administration has been working on changes to biofuel policies that would ease tensions between biofuel and oil industries. Yet, to date, its actions have undercut demand for biofuels by waiving oil refiner requirements to comply with the RFS. USDA Secretary Sonny Perdue last month said the administration will soon allow year-round use of E15 gasoline – a bump for the biofuel sector.

Johnson said such an announcement must be accompanied by a provision that makes up for the billions of gallons of lost demand as a result of hardship waivers, as well as a commitment not to further erode demand through continued use of waivers. “An announcement on E15 in and of itself does not make whole a biofuels industry that has experienced significant damage as a result of the former EPA administrator’s actions,” he said.

Johnson said such a request is commonsense for an administration that has pledged to support family farmers and American grown biofuels.

“The farm economy has placed many family farmers in dire financial straits right now,” said Johnson. “They are looking to the administration to take meaningful actions that, in the aggregate, expand demand for American farm products. Yet, to this point, they’ve only seen demand destruction. That must change immediately with tangible actions that ensure more biofuels make their way into the transportation fuel sector.”

Johnson added that NFU is a strong proponent of expanding use of higher blends of ethanol, like E30, in order to provide farmers with a stronger market for their products and consumers with cheaper, cleaner, and more efficient transportation fuels.

“Farmers Union is going to continue to push for expanded use of higher blends of ethanol, for the benefit of family farmers and consumers alike,” he said. “Until the administration creates an environment in which these fuels can succeed, it will have shortchanged the family farmers the President has pledged to support.”



Soy Family Participates in Taiwan Goodwill Mission and Signing Ceremony

U.S. soybean farmers have been present and active developing demand and utilization of soy in Taiwan for nearly 50 years. During a Washington visit this week, Yau-Kuen Hung, chairman of the Taiwan Vegetable Association and Wade Cowan, past president of the American Soybean Association, signed a commitment by the Taiwan soy industry to purchase an additional 600,000- 1 million metric tons of U.S. soybeans.

The Taipei Economic and Cultural Representative Office (TECRO) is hosting a Goodwill Mission from Taiwan with the help of the soy family during this week, and on Wednesday, the delegation met with soy family representatives, Foreign Agricultural Service (FAS) officials and Members of Congress. This trip reestablishes the deep connection and relationship between the U.S. and Taiwan.



IGC Raises 2018-19 Grain-Production Forecast, Boosts Corn

The International Grains Council said Thursday that it has increased its forecast for global grain production for both this season and the next.

The IGC's fresh monthly forecasts boost expected 2017-18 production by 3 million metric tons to 2,095 million tons, and expected 2018/2019 production by 9 million tons to 2,072 million metric tons.

The changes represent increases of 0.1% and 0.4% on the grain body's figures from last month's report.

In its predictions for the 2018/2019 production season, the IGC upped its expected corn production to 1,074 million tons from 1,064 million tons. That increase combined with a 4-million-ton increase to expected soybean production, bringing that forecast total to 370 million tons, complimented by a 1-million-ton addition to the wheat production forecast, at 717 million tons.

Expected rice production was flat at 491 million tons.

"Nearly all the adjustment is for maize, including increased figures for the US (+6.1 million tons), the EU (+2.7 million tons) and Ukraine (+1.2 million tons)," the IGC said, adding that, for soybeans, "reduced shipments to China are more than offset by bigger deliveries to other markets, including Argentina, the EU, North Africa and Near East Asia."



Learning to Do, Doing to Learn Through the Turn the Bag Blue & Gold FFA Program

Mycogen Seeds is excited to announce its 2018-19 Turn the Bag Blue & Gold program with the National FFA Organization. After a successful pilot year in 2017-18, Mycogen expanded the program to seven states and eight FFA chapters.

The Turn the Bag Blue & Gold program focuses on a comprehensive learning platform that provides foundational agronomic principles and professional sales training to FFA students. As part of the program, students can raise funds for their local FFA chapter, state FFA associations and National FFA Organization.

“We are not only dedicated to our farmers’ growth but also the growth of young agricultural leaders,” says Blake Courtney, Mycogen marketing communications manager. “Last year, we piloted the program with six FFA chapters across corn-growing regions, donating more than $35,000 to local FFA chapters, the National FFA organization and their respective state FFA associations.”

Students will hit the field this fall, putting their skills to work. In collaboration with their local Mycogen territory manager and local retailer, participating FFA members will offer corn hybrids that fit local geographies, including two Mycogen® brand TMF silage hybrids. Farmers can purchase seed through FFA members and receive their Mycogen brand seed in a specially branded Mycogen blue-and-gold bag.

Real-life experience
Matt Porter, a Mycogen territory manager, says the experience is invaluable and provides students with real-life, in-the-trenches experience.

“It’s one thing to learn about agronomy or professional sales techniques in a classroom, but this program takes that experience to a new level by asking students to incorporate their learnings in the field,” Porter says. “Last year, I worked with the York, Nebraska, FFA chapter, and it was rewarding to see those students interact with farmers and follow the curriculum.”

Farmers interested in supporting the program and their local FFA chapter can contact one of the following 2018-19 FFA chapter participants or corresponding Mycogen retailer partners.
    York FFA Chapter, York, Nebraska - Central Valley Ag Cooperative, York, Nebraska
    Chase County FFA Chapter, Imperial, Nebraska - Nutrien Ag Solutions, Imperial, Nebraska
    Central Plains FFA Chapter, Gowrie, Iowa - NEW Cooperative, Inc., Fort Dodge, Iowa
    Alexandria FFA Chapter, Alexandria, Minnesota - Pro-Ag Farmers Coop, Brandon, Minnesota
    Elsberry FFA Chapter, Elsberry, Missouri - MFA, Inc., Elsberry, Missouri
    Eastern Hancock FFA Chapter, Charlottesville, Indiana - Harvest Land, Wilkinson, Indiana
    Fremont FFA Chapter, Fremont, Michigan - Ceres Solutions, Fremont, Michigan
    Bureau Valley FFA Chapter, Manlius, Illinois - Nutrien Ag Solutions, Sheffield, Illinois

“As part of the Turn the Bag Blue & Gold program process, students started getting more interested in careers in agriculture,” says Jason Hirschfield, FFA advisor in York. “Whether they go into agronomy or not, they are at least asking the ‘what ifs,’ and that, I believe, is powerful.”



Driving Dairy Profitability — Tip 1: Shoot for an SCC of 100,000 or lower
By Mike Lormore, DVM, MS, MBA, Director, U.S. Dairy Cattle Technical Services, Zoetis

Aggressively pushing your somatic cell count (SCC) as low as you possibly can — even lower than the accepted standard of 200,000 — will drive profitability. Merely monitoring SCC isn’t enough as you work to increase productivity and battle mastitis, the most costly disease in the industry.

High SCC could cost you 11 pounds/cow/day, according to Zoetis and Compeer Financial’s analysis of a 11-year herd data study that included 489 year-end financial and production record summaries.1* The top-third of herds in the study had a bulk tank SCC that averaged 132,000 cells/mL. Meanwhile, the bottom one-third of herds had a bulk tank SCC average of 284,000 cells/mL. This difference in SCC was associated with an 11-pound difference in milk per cow per day for the top-performing herds. Additional benefits associated with lower SCC included more milk production, increased pregnancy rates and fewer death losses.

The challenge is to rethink your ultimate SCC goal — 200,000 SCC isn’t low enough. The study showed that for every 100,000 cells/mL increase in bulk tank SCC, milk yield declines 5.5 pounds. 1* Giving up this many pounds of milk as an accepted standard shows more ambitious goals present a real opportunity for our industry and individual dairies to improve. To increase dairy production and operation profitability, pushing your SCC lower — to 150,000 or even 100,000 — is critical.

Get there in three steps:

1.    Keep SCC in check — Without a management strategy that includes actively monitoring individual cow SCC and new infections, you are taking a financial risk. Make sure you know your SCC levels and have protocols in place for identifying mastitis pathogens and treating them.

2.    Prevent new infections — Coliform intramammary infection rate is about four times greater during the dry period than during lactation.2 When going into the dry period, set protocols that are both tailored to clear up existing infections and prevent new ones. Implement a dry cow treatment program that includes a broad-spectrum tube, a proven internal teat sealant and vaccination against coliform infections.

3.    Reduce mastitis risk and use fewer mastitis tubes — Nothing lessens the financial impact of mastitis like reducing the risk of it occurring. Genomic testing can help you identify which animals are most likely to avoid getting sick. This has been proven with first- and second-year results from a field study using Clarifide® Plus that shows cows in the top quartile based on their respective genetic trait herd rankings had 47% fewer cases of mastitis. Effectively, those cows in the top quartile need half as many mastitis tubes, they have half as much discarded milk, and they spend half the number of days in the hospital pen compared with the cows in the bottom quartile.3

Managing SCC to push levels as low as possible presents a large opportunity to improve your long-term profitability. To learn more about SCC management strategies and the Dairy Financial Drivers study, visit DairyWellness.com.