Thursday April 25 Ag News

Members Approve Unification of Frontier Cooperative & Midwest Farmers CooperativeFollowing a four-week voting period, Frontier Cooperative and Midwest Farmers Cooperative members approved the unification of their cooperatives. The unification of the two cooperatives will be effective September 1, 2019.

Frontier Cooperative passed the unification resolution with 69.30% voting Yes. Midwest Farmers Cooperative passed the unification resolution with 70.45% voting Yes. Each membership base met Nebraska’s state voting requirement for a successful cooperative unification as certified by independent auditing firm of Gardiner Companies.

“Approval of this unification of equals shows a strong commitment on the part of our members to grow the strength of the cooperative system for the future,” said Randy Robeson, General Manager of Frontier Cooperative.

Midwest Farmers Cooperative CEO Jeremy Wilhelm was appreciative of the commitment shown to the unification process as well. “The Boards of Directors and employees spent a great deal of time analyzing this opportunity before presenting it to our members for a vote,” said Wilhelm. “The time taken by our members to understand what we were proposing shows their engagement and commitment to helping us be a better organization.”

The name of the unified cooperative has not yet been chosen. That decision, as well as other work related to the integration of the two companies, will take place over the coming months. Neil Stedman, Board Chair for Midwest Farmers Cooperative, knows there is more work to be done. “We are planning an integration process that will enhance the future success of our operations. Over time, we hope to build on the strong business of each cooperative to continue to provide excellent services, technology and products to our members.”

As a unified company, Frontier and Midwest Farmers will operate approximately 50 grain, agronomy, energy and feed locations across 14 counties in east-central Nebraska.

“We’ve heard our members support the unification over the past couple of months, and it will help position us strategically for the future in the state of Nebraska,” said Frontier Cooperative Board Chair Greg Sabata. “Now we need to continue to grow and support our members as they compete in the marketplace.”

The unified cooperative will be led by current Midwest Farmers Cooperative CEO, Jeremy Wilhelm. The board will be made up of 18 directors, nine from each cooperative. More information regarding the integration process will be made available throughout the summer.



Ag Sack Lunch Program Reaches Record Number of Students

The ninth year of the Nebraska Ag Sack Lunch program has been the biggest one yet. By the time the program wraps up in May, nearly 5,250 fourth-grade students from 108 schools will have participated in this year’s program. 

The Ag Sack Lunch Program provides free sack lunches to Nebraska fourth-graders who visit the State Capitol Building in Lincoln as part of their curriculum. While the students eat their lunch, they listen to a short presentation about agriculture in Nebraska. The sessions are led by “Ag Ambassadors,” University of Nebraska-Lincoln students who are passionate about agricultural education. 

The event is designed to be a fun learning program for the students and, by extension, their parents, to demonstrate the importance of agriculture to the State of Nebraska and show them where their food comes from.

Teachers whose classes have participated continue to give the program positive reviews:

“The presentation gave the students fun ways to remember different aspects of agriculture and how it impacts their daily lives.” --Lacey Hollrah, fourth-grade teacher from George Norris Elementary, Omaha.

“The students were especially impressed that the lunch items were grown in Nebraska. Very nice correlation.” -- Carolyn Timm, from Immanuel Lutheran School, Columbus.

“I appreciate the information that was presented because it caught the attention of the kids. The deck of cards will further inform the kids with interesting agriculture facts.” -- Pam Schrader, Lincoln Christian School, Lincoln.
   
The Ag Ambassadors inform students that one in four jobs in Nebraska has some connection to agriculture beyond farming itself, such as equipment manufacturing and sales, building construction, transportation and supermarket retailers. They also explain the state ranks first in the country for cattle on feed, sixth in pork production, and that over one-third of Nebraska-produced grain is fed to livestock within the state.

Each student receives a special deck of playing cards, which lists fun facts about agriculture. The deck also includes two special games, “Crazy Soybean” and “Old Corn Maid,” to keep the students entertained while continuing to learn about Nebraska agriculture.

Since its inception in 2010, the program has provided more than 45,200 students with free lunches and an introduction to the state’s number one industry. Sponsors of the Ag Sack Lunch Program include the Nebraska Soybean Board, the Nebraska Corn Board, the Nebraska Pork Producers Association, the Nebraska Beef Council, and Midwest Dairy.
   
Thirteen UNL students served as Ag Ambassadors throughout the 2018-2019 school year. Most of them are pursuing ag-related degrees. They are Shelby Wachter, Blair; Hailey Walmsley, Norfolk; Christy Cooper, Waverly; Claire Dressman, Superior; Jordan Bothern, Lincoln; Grace McDonald, Phillips; Abby Durheim, Sunbury, Ohio;  Shelby Riggs, Mitchell, S.D.; Makayla Burg, Papillion; Sage Williams, Eddyville; Jadyn Heckenlively, Orleans; Jessica Rudolph, Gothenburg; and Kelli Mashino, Spencer.



State Department of Environmental Quality and Energy Office Offer Flood-Related Support in Numerous Areas

There are numerous ongoing efforts involving the Nebraska Department of Environmental Quality (NDEQ) and the Nebraska Energy Office (NEO) as flood recovery efforts continue.  Among these efforts are:

New 0% Loans for Interim Drinking Water and Wastewater Projects
NDEQ is informing communities that there will be interim 0% loans available from the state to assist in projects to restore their flood-impacted drinking water and wastewater facilities.

Although most of these projects are expected to ultimately be funded through grants from other sources, there can be a multi-year gap between the time a community is approved for disaster reimbursement and the time they may receive this reimbursement.  To assist communities during that multi-year gap, NDEQ can offer them 0% interim loans through the state’s State Revolving Loan Funds.

NDEQ staff can assist communities in determining their best financial options.  In the long term, the vast majority of the money distributed through the 0% Wastewater and Drinking Water Interim Loan Program will be recovered by the state’s State Revolving Funds.  These funds will then be reallocated to other community drinking water and wastewater loan needs.  For more information, call (402) 471-4200.

Dollar and Energy Saving Loans at 1%
On April 5, 2019, the Nebraska Energy Office, in conjunction with Nebraska lending institutions, began providing assistance to those affected by floods, by offering Dollar and Energy Saving Loans at 1% interest (subject to lender approval)*.

On April 16 the Energy Office opened this ultra-low interest loan offering to all Nebraskans to make energy efficient home and farm improvements such as:
·       Heating, cooling, and water heater equipment replacement
·       Irrigation system, grain dryers and other farm efficiency improvements
·       Foundation walls repaired or replaced and insulated

More information can be found in the Loan Factsheet at: http://www.neo.ne.gov/loan/LoanProgramAssistFactsheet.pdf.

The 1% loan offer will be effective until July 1, 2019 or as funds are available.

Free home weatherization services are available through the Energy Office Low-Income Home Energy Assistance Program, which is administered in conjunction with Local Regional Service Providers. Furnaces and/or air-conditioning systems may qualify for free replacement for individuals with annual household incomes that fall below 200% of the federal poverty level. The program pays for weatherization assistance up to $5,000.

Those interested in applying for free weatherization should contact their Local Regional Service Provider which is listed in the Low Income Weatherization Factsheet at: http://www.neo.ne.gov/loan/WXFloodAssistFactsheet.pdf.

Free Well Testing in Multiple Locations
The flooding also compromised many private wells. NDEQ partnered with the U.S. Environmental Protection Agency and the Nebraska Department of Health and Human Services in late March and early April to offer free well testing in nine communities. Well owners provided samples of their water, which were tested for total coliform and E. coli.

A total of 786 samples were collected. Overall, 26% of these samples tested positive for coliform. Of that 26%, 33% also tested positive for E. coli.

NDEQ and DHHS provide guidance for those with compromised wells at http://deq.ne.gov/Press.nsf/pages/news040119, which includes a list of licensed water well professionals. More information is also available at https://flood.unl.edu/.

Continued Oversight and Support in Multiple Areas
NDEQ continues to provide oversight and support in multiple areas.  If you have questions regarding these issues, contact our NDEQ hotline at 1-877-253-2603, or visit our website at deq.ne.gov.

Among the areas that continue to have NDEQ involvement:
·       Waste Debris Management – Staff have assisted in identifying and arranging for the removal of livestock carcasses, and the identification, collection and disposal of orphan hazardous containers (see relate news release) and providing the public guidance and outreach for debris removal.
·       Wastewater Treatment Facilities – Staff have worked with wastewater treatment facilities on timelines to resume normal operations.  Most have returned to normal operation as of April 25, but ongoing work continues at three locations – City of Omaha Papillion Creek, Plattsmouth, and Nebraska City.
·       Public Water Supply Systems -- Staff have provided technical assistance to Public Water Supplies compromised by flooding, and are coordinating with PWS owners/operators to develop timelines for restoring service.  Most have returned to normal operation as of April 25, but currently five community PWS and 13 non-community PWS with primary sources are still off-line.
·       Livestock Facilities – Staff have worked with livestock facilities on timelines to resume normal operations.  As of April 25, only two locations continue to have ongoing repair work due to extensive structural damage.

The Nebraska Department of Environmental Quality and the Nebraska Energy Office have developed a 2019 flood “dashboard” that provides summaries and updates of ongoing flood-related issues.  For more information, go to http://deq.ne.gov/Press.nsf/pages/2019dashboard.  Additional environmental guidance can be found at http://deq.ne.gov/NDEQProg.nsf/OnWeb/Disaster.



Ricketts: New Forecast Means Property Tax Relief
Today, Governor Pete Ricketts issued a statement following a decision by the Nebraska Economic Forecasting Advisory Board, which raised the revenue forecast by $45 million for the current fiscal year FY2018-19 and $10 million for fiscal year FY2019-20.  It held FY2020-21 flat.

“Today’s forecast is good news for property tax relief.  The $55 million increase in the forecast allows the Appropriations Committee to deliver the full amount of property tax relief I recommended in my budget for farmers and homeowners.”

The Governor recommended an increase of $51 million each year to the Property Tax Credit Relief Fund.  The Appropriations Committee previously voted to only include $26 million in the budget of the $51 million recommended by the Governor.



Coalition Calls for Legislators to Vote NO on LB227 to Protect Rural Property Rights And Valuable Water Resources

A coalition of Nebraska-based organizations is calling on State Senators to Vote NO on LB227, which would severely weaken rural Nebraskans' property rights, and further risk Nebraska’s slowly degrading water resources.

LB227, an extension of national industrial agriculture efforts currently sweeping across the nation, would weaken Nebraska’s current Right-To-Farm laws by not allowing long-standing family farmers or rural residents to claim nuisance from those that develop large livestock operations next to an existing property owner’s land.  These efforts stemmed from a successful nuisance lawsuit filed by North Carolina residents against Smithfield, a Chinese-owned hog producing and processing company, when odors became so bad it created an unbearable nuisance for local residents.

Therefore, if LB227 is passed, and a company like Smithfield or Costco proposed to build a massive Concentrated Animal Feeding Operation (CAFO) next to a 100+ year old farming business or home in Nebraska, and it produces odors so bad that the existing family can no longer breathe, there would be NO legal recourse for the existing landowner.

Another large concern cited by coalition groups is based around Nebraska’s slowly degrading water resources.  After seeing Iowa’s water quality decrease significantly with the development of thousands of hog and poultry CAFO’s, it is increasingly clear that more CAFO’s lead to increased contaminants in water.  Groups are calling into question if Nebraska water resources can take any more impact from increased placement of industrial-scale CAFO’s, and furthermore if family farmers, and rural residents can protect themselves from increasingly unhealthy drinking water from the increased development of CAFO’s.

“LB227 is an effort to radically change Right-To-Farm protections. The NeFU board took strong opposition to Senator Hughes LB227 that undermines Nebraska's Right-To-Farm traditional protections for agricultural activities and neighbors.  It would provide carte blanche nuisance exemptions for one neighbor who dramatically changes or expands their operation at the expense of their neighbors, most of whom are also farmers. The clear intent of this bill is to proactively provide nuisance exemptions for Costco poultry growers and other mega-CAFO livestock operations. Everyone in rural Nebraska should use good neighbor practices and be responsible for the well-being of their neighbors. LB227 picks one winner at the expense of all their next-door neighbors who will be the losers.”  -John Hansen, President, Nebraska Farmers Union

“As we celebrate Earth Day this week, we are reminded of our moral obligation to protect the Earth that sustains us on behalf of our children and generations to come. LB227 represents a step in the wrong direction, away from the values of the farmers and ranchers who sacrificed to create the Good Life in rural Nebraska. LB 227 would take away an important tool for rural Nebraskans to protect themselves and their property from unreasonable interference by bad actors who move into their area or make huge changes that create major problems for their neighbors. We encourage the members of the Legislature to protect farmers and ranchers and vote against LB 227.”  -Ken Winston, Policy and Outreach Director, Nebraska Interfaith Power & Light

“As an officer in a 150 year-old family farming business that has paid taxes in Burt County, Nebraska for just as long, it is appalling to think that our great state would even consider weakening Nebraskan’s property rights so that we cannot adequately protect ourselves if our health and well-being are put at risk.”  -Graham Christensen, GC Resolve

“The corporate state is in many ways stronger and has more potential to drive and shape our lives than the federal government. For us it has never been clearer than in the destruction of the independent family farm and the small communities that support them. Bills like LB227 send a very clear message that Corporate Agriculture thinks the land and the people are theirs to do with as they please. Nebraska Communities United stands with independent farmers and citizens who want to live their lives unimpeded by corporate agriculture.”  -Randy Ruppert, President, Nebraska Communities United

“Lancaster Hills Alliance represents a growing number of residential property owners and family farmers that oppose the construction of Costco's chicken barns in Lancaster County. Our Constitutional rights to enjoy and use our property will be degraded if 190,000 chickens are housed in a rural residential area. Under common law, people cannot use their property in ways that damage their neighbors’ property, and provides for a remedy in the courts. We believe our water, air, land and property values will be significantly degraded by large commercial animal feeding operations near our homes. We will fight to maintain our Constitutional right to sue when a nuisance occurs from these operations.  -Jane Egan, Chair, Lancaster Hills Alliance

“Factory farms increase the chances of water, soil and air pollution. When conditions degrade it is essential that neighbors who are impacted be afforded all avenues to mitigate any impacts on their health and well-being.”  -David Corbin, President, Nebraska Sierra Club

“Members of Lancaster Hills Alliance have sued Lancaster County and Costco’s contract “chicken grower” to invalidate a permit that the County approved for a 190,000-chicken operation to be built and operated near Crete. The County approved the Special Permit even though it admitted that its existing zoning law needed to be revised to better reflect current conditions. Permit opponents argued that the only recourse they would have to stop nuisance conditions created by the Costco CAFO would be their right to file a nuisance complaint and lawsuit after the fact.  Now that Costco has its permit, it is trying to change state law to deny that important right. With a toothless CAFO zoning law and unreliable agency compliance enforcement in Lancaster County, LB227 would give industrial-scale agricultural interests like Costco the right to operate their CAFOs as nuisances with nearly complete impunity throughout the entire state of Nebraska. This is not acceptable policy.”  -Jonathan Leo, Environmental Lawyer

“We disagree with locating new confined animal feeding operations in high-density population areas, conflicting with the existing land use. We strongly support responsible agriculture that preserves and protects our water, land, and air. We value farmland, the environment, and our rural community. We oppose LB227, which gives nuisance immunity to corporations and takes away property rights of family farmers and rural neighbors.”  -Washington County Citizens Against CAFO's

Recently LB227 advanced from General to Select File.  It is expected to hit the floor for debate again in the next few weeks.  Only a handful of votes are needed to stop this disastrous bill from advancing.



Iowa Learning Farms Has Resources for Emerging Farmers

Iowa Learning Farms recently launched the Emerging Farmers (www.iowalearningfarms.org/emerging-farmers) series of resources and guides aimed at supporting new and prospective farmers in developing sustainable business plans for their operations. The program includes sustainable business templates and the Talking with Your Landlord series of informational publications.

“We define an emerging farmer as someone with ties to agricultural land who would like to return to the farm as an operator or have a voice in its management,” said Liz Juchems, ILF conservation outreach specialist. “We’ve created tools that will empower these farmers with science- and research-based information to help create a sustainable plan for a new farm or new venture within an existing farm.”

Iowa Learning Farms is a hands-on education and outreach program for Iowa landowners and agricultural producers. Juchems said the goal of this ILF initiative is to help dispel resistance to conservation practices and encourage new farmers to focus on the business of farming with an eye toward maintaining environmental health.

The sustainable business templates provide a framework for farmers to create business plans to use in soliciting financing, engaging with prospective landowners or simply in running a successful farming enterprise. The templates help identify pertinent questions and resources that may be available to support further development of a solid business plan. Specialized template versions for grazing livestock and leveraging CRP are available in addition to the core business model canvas template.

“Each template is simply a starting point, which farmers can modify to their personal needs, yet gives them the foundation to describe how they will capture, create and deliver value with the farm, and ultimately run a profitable business,” said Juchems. “This program is different from others in that it incorporates sustainable conservation-minded approaches to land stewardship, which can give farmers seeking land a competitive advantage when speaking with potential landlords.”

The program also includes the Speaking with Your Landlord series of conversation guides. These targeted publications provide farmers with key facts related to topics ranging from no-till and edge of field conservation practices to financial management of a farm.

“Many landowners prefer to partner with farmers who will preserve and improve their land,” noted Juchems. “This series helps facilitate conversations which will help ensure the farmers and landowners are moving forward together with mutually beneficial practices.”

The Emerging Farmers program is funded in part by grants from the Iowa Department of Agriculture and Land Stewardship and the Iowa Natural Resources Conservation Service to develop and deliver tools to help new farmers be successful and operate profitable businesses.

To learn more about Iowa Learning Farms outreach and education programs, please visit us on the web at www.iowalearningfarms.org.



Pork Production at Record High for March

Commercial red meat production for the United States totaled 4.43 billion pounds in March, down 2 percent from the 4.52 billion pounds produced in March 2018 according to USDA's Livestock Slaughter report released on Thursday.

By State                   (million lbs  -  % March '18)
Nebraska ...........:          623.2             93      
Kansas ...............:          455.1             97      
Iowa ..................:          721.0            109      

Beef production, at 2.12 billion pounds, was 4 percent below the previous year. Cattle slaughter totaled 2.65 million head, down 2 percent from March 2018. The average live weight was down 19 pounds from the previous year, at 1,339 pounds.

Veal production totaled 5.8 million pounds, 5 percent below March a year ago. Calf slaughter totaled 45,800 head, up 5 percent from March 2018. The average live weight was down 21 pounds from last year, at 219 pounds.

Pork production totaled 2.30 billion pounds, up slightly from the previous year. Hog slaughter totaled 10.7 million head, up slightly from March 2018. The average live weight was up 1 pound from the previous year, at 287 pounds.

Lamb and mutton production, at 13.0 million pounds, was down 8 percent from March 2018. Sheep slaughter totaled 190,700 head, 5 percent below last year. The average live weight was 137 pounds, down 3 pounds from March a year ago.

January to March 2019 commercial red meat production was 13.3 billion pounds, up 1 percent from 2018. Accumulated beef production was down 1 percent from last year, veal was down slightly, pork was up 3 percent from last year, and lamb and mutton production was down 5 percent.



Farmer’s Share of the Food Dollar Falls to All-Time Low

For every dollar American consumers spend on food, U.S. farmers and ranchers earn just 14.6 cents, according to a report recently released by the U.S. Department of Agriculture (USDA) Economic Research Service (ERS). This value marks a 17 percent decline since 2011 and the smallest portion of the American food dollar that farmers have received since the USDA began reporting these data in 1993. The remaining 85.4 cents cover off-farm costs, including processing, wholesaling, distribution, marketing, and retailing.

National Farmers Union (NFU), which has advocated for family food producers’ social and economic welfare for more than a century, uses the annually calculated statistic as a barometer of the state of the farm economy. In response to the updated report, NFU President Roger Johnson released the following statement:

“Even though family farmers and ranchers are more productive today than they have ever been, they’re taking home a smaller and smaller portion of the American food dollar. This one data point doesn’t paint the full picture of the farm economy, but when considered in the context of depressed commodity prices, plummeting incomes, rising input costs, and deteriorating credit conditions, it is certainly clear that we are in the midst of an agricultural financial crisis.

“Conditions for farmers have been eroding since 2011, and there’s only so much longer they can hold on. Many have already made the heartbreaking decision to close up shop; in just the past five years, the United States lost upwards of 70,000 farm operations. As a country with a growing population and growing nutritional needs, we can’t afford to lose many more. We sincerely hope this startling report will open policy makers’ eyes to the financial challenges family farmers and ranchers endure on a daily basis and convince them to provide the support they so desperately need.”



USDA Will Not Survey for Volume of Grain Lost to Floods

The U.S. Department of Agriculture's statistical arm will not collect data on the volume of harvested grain lost when farms from the Dakotas to Missouri were hit by flooding in March that burst grain storage bins, a government official said on Tuesday. But according to Reuters, the figures in the USDA's regular quarterly stocks report for June will reflect losses due to flooding as well as from more typical usage by processors, exporters and livestock feeders over the preceding three months.

"As of right now we don't have any intention of collecting anything on grain that was lost," Lance Honig, crops branch chief of the USDA's National Agricultural Statistics Service, said at a meeting in Chicago for USDA data users.

The USDA is scheduled to release its next quarterly stocks report on June 28.

"The stocks report will reflect (grain) inventories as of June first, so any losses that occurred will no longer be represented in the stocks at that time," Honig said, adding that surveying for the amount of grain lost to flooding "would be a challenge."

At least 1 million acres (405,000 hectares) of U.S. farmland were flooded after a "bomb cyclone" storm left wide swaths of nine major grain-producing states under water in March, satellite data analyzed by Gro Intelligence for Reuters showed.

Indigo Ag, an agriculture technology company, identified 832 on-farm storage bins within flooded Midwest areas. The bins hold an estimated 5 million to 10 million bushels of corn and soybeans - worth between $17.3 million to $34.6 million - that could have been damaged in the floods, the company told Reuters.



USMCA Leads to New Market Opportunities
National Corn Growers Assoc. newsletter

We know that ratifying USMCA will secure a $3.2 billion export market for corn farmers and provide some certainty as farmers begin the hard work of planting and harvesting their crop. Passing USMCA will also open the door to other markets and new opportunities for American farmers. Locking in USMCA establishes some important new standards for what can be achieved in future trade agreements and would also build confidence in other nations with whom the United States wants to more closely engage.

Japan is the perfect example of a very important long-time customer for the U.S. corn industry and a nation with which a trade agreement is urgent for U.S. agriculture. Japan was the second largest buyer of U.S. corn in the 2017/2018 marketing year, purchasing nearly 13.2 million metric tons (520 million bushels) of corn for a value of $2.39 billion. Japan also serves as the ninth largest buyer of U.S. DDGS, setting a new record for DDGS imports in 2017/2018, increasing 8.4 percent from 2016/2017 to 463,000 metric tons.



NBB, Biodiesel Companies Highlight Jobs that Depend on the Biodiesel Tax Incentive

Today, the National Biodiesel Board (NBB) and several of its member companies released photos of industry workers who are impacted by the uncertainty over the future of the biodiesel tax incentive.

Kurt Kovarik, Vice President of Federal Affairs with the National Biodiesel Board, stated, “Because the biodiesel tax incentive has been expired for sixteen months, many companies are facing a very uncertain future. With the on-again, off-again nature of the credit, biodiesel companies are forced to build the credit’s value into contracts – and hope that Congress extends the policy at the end of the year. Many companies have essentially priced their products at a loss for more than a year. The economic pressure of these losses while waiting on Congress to act is now threatening the future of the industry, putting jobs at stake. It is urgent that Congress act immediately to provide the biodiesel industry certainty for 2018 and 2019.”

Dr. Robert Morton, chairman of the board of Newport Biodiesel, also said, “The biodiesel sector is responsible for more than 60,000 jobs across the United States and pays $3.8 billion in workers’ wages and benefits. More than half the industry consists of small and medium size production facilities.”

Raf Aviner, President of American GreenFuels, LLC, added, “Biodiesel represents a sustainable and alternative fuel source that reduces greenhouse gas emissions. The success of the biodiesel industry, however, is now in peril. Plants cannot survive continued Congressional uncertainty regarding the biodiesel tax credit. Plants will shut down and plant employees, the innocent bystanders, will lose their jobs. Time is running out.”

Chris Peterson, President of Hero BX, said, “Our employees are hardworking and industrious Americans, making a great-working green product. These blue-collar workers have committed to the biodiesel industry, finding jobs in the new green economy. It is unfortunate that members of Congress have not shown the same dedication to the industry by letting the lapsed credit situation continue.”

Jim Galvin, CEO and Director of Lakeview Energy, added, “We urge Congress to ensure that good-paying, blue collar jobs do not disappear and provide the biodiesel sector the certainty it needs for survival by immediately extending the biodiesel tax credit for 2018 and 2019.”



IGC Raises Grain Production Forecasts for 2018-19, 2019-20

The International Grains Council raised its forecast for global grain production in the 2018-19 season and lowered its outlook for consumption, in a monthly report published Thursday.

Evidence that supply is strengthening relative to demand could add to pressure on grain prices, which have fallen this year amid concerns about the world economy and expectations of strong harvests.

The IGC, the London-based inter-governmental organization, expects output of 2,128 million tons, a rise of 3 million from its prediction in March. Higher corn output in Argentina and Brazil was the main reason for that increase, it said.

At the same time the IGC expects total grain consumption of 2,165 million, a decline of 5 million tons from its March report driven by corn use in the U.S.

Combined, these adjustments led the IGC to lift its prediction for carryover grain stocks by 8 million tons to 611 million tons.

That would still represent a fall of 36 million tons from the 2017-18 season. "Amid record demand and only a minor supply expansion, a third successive depletion of global stocks is predicted, to a five-year low," the IGC said.

Still, the IGC said its grains and oilseeds prices index had slumped by 4.6% from March to April, "pressured by mostly favorable outlooks for northern hemisphere winter grains and rowcrops in South America." At 179, the index was down 16.2% from a year ago and plumbed its lowest level in more than three years.

The IGC also boosted its grain production forecast for the 2019-20 season, partly thanks to bigger harvests of wheat, corn and barley. It expects output of 2,178 million tons, up by 2 million tons from March.

The IGC lifted its forecast for soybean output in 2018-19 by 3 million tons to a record 362 million tons, saying this was due to improved prospects in South America. It expects demand to be unchanged, meaning this boost will be channeled into inventories.



Unseen damage from parasites can steal from your bottom line

Despite great progress in controlling parasites, too many operations fail to consider active ingredients for specific parasite challenges — or even deworming at all. Failure to deworm calves in the spring can limit the calf's ability to reach its full genetic potential.

Advancements have made parasite infestations primarily a subclinical issue, so producers assume there is no problem because they don’t see obvious clinical symptoms or death losses, said Dr. Mark Alley, DVM, senior technical service veterinarian, Zoetis. Because the infestations are subclinical, it’s hard to visualize the calves may be 10 pounds lighter, but, as Dr. Alley said, “In the sale check, that makes a difference.”

“Not deworming nursing calves is probably the biggest obstacle that we have to overcome,” he said. “Most just don’t think it’s an issue.

“Part of the reason for these management decisions comes down to the success of macrocyclic lactones in stopping the loss of cattle due to brown stomach worm (Ostertagia) infestations,” Dr. Alley said. For a time, the industrywide urgency of that problem took the focus away from working to control internal parasites like Cooperia, Nematodirus and Haemonchus. And, as time went on, veterinarians discovered benzimidazole dewormers treated those parasites much more effectively than macrocyclic lactones did.

The first step is understanding the limits of current management practices. It is important for cattle producers to work with a veterinarian to do diagnostics and determine what is working in their parasite control program.

As Dr. Alley explains, there are some challenges at the cow/calf level understanding which parasite is present. It is believed older cows develop some resistance to Cooperia. Cooperia, Nematodirus and Haemonchus typically are a greater parasite challenge in younger animals. “But the only real way to determine which parasites are present is to get cultures or PCR [polymerase chain reaction] of the eggs from fecal samples,” Dr. Alley said.

An example Dr. Alley shares is the assumption that winter weather kills a lot of parasites, specifically the larvae and eggs in the environment. “In reality, cold weather doesn’t have a very big impact at all on them,” Dr. Alley said.

As soon as warm weather returns enough to grow grass, the parasite resumes its life cycle on the pastures.

“As a result, we get really short grass that’s just greening up, and with the right-size, right-age calf, they’re going to start nibbling on grass,” Dr. Alley said. “And when they do graze, they may be consuming some parasites with their first forage consumption.”

Dr. Alley recommends cow/calf producers work closely with their veterinarian to develop an effective parasite control program for cows and calves that addresses the parasite challenges in their geographic area.

For more information, visit GetLessParasites.com for solutions from Zoetis.