FCStone Predicts 10.824 BB 2012 US Corn Crop; Pegs Ave. Corn Yield at 123.9 BPA
U.S. farmers will harvest 10.824 billion bushels of corn and 2.849 billion bushels of soybeans in 2012, according to projections made by commodity brokerage firm INTL FCStone. INTL FCStone released its Oct. 1 U.S. production estimates late Tuesday, increasing its outlook for the U.S. corn and soy production from its previous estimate. The projections were made using an average corn yield of 123.9 bushels per acre and an average soybean yield of 38.2 bushels an acre. The production and yield estimates were up from September estimates of corn production at 10.607 billion, using a yield of 121.4 bushels an acre, and soy output at 2.739 billion, using a yield of 36.7 bushels an acre.
Industry analysts remain concerned about crop potential, but crop declines are less threatening after government forecasters increased the amount of soybean supplies carried over into the 2012-11 marketing year on Friday. Traders are waiting for the U.S. Department of Agriculture to update its output forecasts Oct. 11 to see whether the government will confirm higher yield and production prospects.
In September, the USDA put the U.S. corn crop at 10.727 billion bushels, using a 122.8 bushel an acre yield, and soybean output at 2.634 billion, using a 35.3 bushel an acre yield. Last year, corn output measured 12.358 billion bushels and soybean production came in at 3.056 billion. USDA is scheduled to release updated figures Oct. 11 at 8:30 a.m. EDT.
Phadke Is Oct. 10 ARD 'Big Idea Seminars' Speaker
Roopali Phadke, associate professor, environmental studies, Macalester College, St. Paul, Minn., is the second of five speakers in the Agricultural Research Division's new "Big Idea Seminars." Phadke will speak at 4 p.m. Oct. 10 at the Nebraska East Union on UNL's East Campus on "Visual Impacts of Windpower on Communities." A reception will precede the event at 3:30 p.m. Phadke will discuss her work developing landscape symposia on wind energy development in four states, including Wyoming and Minnesota. With her strong background in public and environmental policy she will suggest how Nebraskans might think about impacts on the visual and open quality of their landscape.
The "Big Idea Seminars" series in the Institute of Agriculture and Natural Resources at UNL covers a broad area of research topics and is meant to bring together collaborations between faculty members across all of UNL. Phadke is one of five speakers in the first seminar series titled "Scenery as a Natural Resource," which was organized by Richard Sutton, professor in agronomy and horticulture at UNL.
This seminar series will help raise awareness of the visual landscape for the academic research community and as a resource affecting the quality of life for all Nebraskans. Among the collaborators are the College of Architecture, School of Natural Resources and Department of Agronomy and Horticulture. The next seminar will be Oct. 24. For more information about this and future speakers and seminars, visit the ARD's Big Idea Seminars website at bigideaseminars.unl.edu.
Smith Receives National Manufacturing Award
Congressman Adrian Smith (R-NE) accepted the National Association of Manufacturers Award for Manufacturing Legislative Excellence today at the Nebraska Business and Industrial Products Show in Grand Island.
“I am honored to receive this award,” said Smith. “Nebraska is an agriculture state and a manufacturing state. The Third District alone is home to more than 300 manufacturing facilities employing nearly 27,000 people. In this economy it is essential we remove red tape on our manufacturers, and work to make sure our exports are competitive abroad.”
“Manufacturers today compete in a global marketplace,” said NAM President and CEO Jay Timmons. “It is critical that Washington creates policies to keep us competitive and maintain our mantle of economic leadership. Congressman Smith understands this and has consistently supported the pro-manufacturing agenda through his votes in Congress.”
The National Association of Manufacturers is the largest manufacturing association in the United States, representing manufacturers in every industrial sector and in all 50 states.
NOMINATIONS SOUGHT FOR IOWA SOYBEAN ASSOCIATION LEADERSHIP AWARDS
Nominations are now being sought by the Iowa Soybean Association (ISA) for five awards recognizing soybean growers and those who have demonstrated commitment and leadership in agriculture.
“We are pleased to offer ISA's second annual awards,” says ISA President Mark Jackson, a farmer from Rose Hill. “They provide the association an opportunity to recognize farmer leaders in all stages of their careers, as well as partners who have supported Iowa soybean farmers and their customers.”
Awards will be presented in five categories: Legacy of Leadership, Rising Star, Environmental Leader, New Leader and Friend of the Iowa Soybean Association.
The Legacy of Leadership is given to an Iowa soybean farmer who has demonstrated a passionate and relentless commitment to growing the soybean industry in Iowa.
The Rising Star award recognizes the son or daughter of an ISA member who’s actively involved in promoting agriculture through involvement in local, state and national activities and organizations and who is preparing to continue ag studies in college. Eligible nominees are 14-18 years of age (high school students or students who have just graduated from high school).
The Environmental Leader award is presented to an ISA member and soybean farmer who has demonstrated a commitment to installing and maintaining practices that improve environmental sustainability. The farmer who receives this honor will be nominated for the American Soybean Association Conservation Legacy Award.
The New Leader Award will be awarded to a district soybean leader who has been involved in his/her District Advisory Council for two years or less, has shown outstanding involvement and possesses the skills and talents to do great things for the soybean industry and agriculture.
The Friend of the Iowa Soybean Farmer award will be given to an elected leader, media representative or other ISA partner who has supported Iowa Soybean farmers through his/her actions and efforts.
All nominations must be in writing and received no later than Friday, Nov. 16, 2012. No self nominations or nominations made via the telephone will be accepted.
Find the form at www.iasoybeans.com/awards/ or call 800-383-1423 for a print copy.
Nominations can be submitted by mail to Lindsey Haley, Iowa Soybean Association, 1255 SW Prairie Trail Pkwy, Ankeny, Iowa 50023, or by emailing to lhaley@iasoybeans.com.
Award recipients will be selected by a taskforce of the ISA board of directors, and the awards will be presented during the Second Annual Iowa Soybean Association Awards Banquet on Tuesday, Dec. 11, 2012.
To learn more about ISA, visit its website at www.iasoybeans.com.
Crude Supplies Shrank by 500K Barrels
The nation's crude oil supplies declined last week, the government said Wednesday. Crude supplies dropped by 500,000 barrels, or 0.1 percent, to 364.7 million barrels, which is 8.4 percent above year-ago levels, the Energy Department's Energy Information Administration said in its weekly report. Analysts expected an increase of 1.5 million barrels for the week ended Sept. 28, according to Platts, the energy information arm of McGraw-Hill Cos.
Gasoline supplies grew by 100,000 barrels, or 0.1 percent, to 195.9 million barrels. That's 8.3 percent lower than year-ago levels. Analysts expected gasoline supplies to be unchanged. Demand for gasoline over the four weeks ended Sept. 28 was 2.5 percent lower than a year earlier, averaging 8.7 million barrels a day.
U.S. refineries ran at 88.2 percent of total capacity on average, up 0.8 percentage point from the prior week. Analysts expected capacity to be unchanged.
Supplies of distillate fuel, which include diesel and heating oil, shrank by 3.7 million barrels to 124.1 million barrels. Analysts expected distillate stocks to fall by 400,000 barrels.
Bullish EIA Ethanol Data
The Energy Information Administration reported ethanol inventories were drawn down 451,000 bbl or 2.3% to 18.808 million bbl, while implied demand rose 2,000 bpd or 0.2% to 821,000 bpd. Most of the stock draws were in the East Coast and the Midwest. Plant production also continued lower, and fell 24,000 bpd or 3.0% to 785,000 bpd, which is down 9% compared to a year-ago level.
USDA Dairy Products August 2012 Highlights
Total cheese output (excluding cottage cheese) was 884 million pounds, 2.6 percent above August 2011 and 0.5 percent above July 2012. Italian type cheese production totaled 370 million pounds, 1.9 percent above August 2011 and 0.5 percent above July 2012. American type cheese production totaled 354 million pounds, 4.5 percent above August 2011 but 0.7 percent below July 2012. Butter production was 129 million pounds, 3.5 percent below August 2011 and 3.1 percent below July 2012.
Dry milk powders (comparisons with August 2011)
Nonfat dry milk, human - 106 million pounds, down 7.8 percent.
Skim milk powders - 40.3 million pounds, up 4.3 percent.
Whey products (comparisons with August 2011)
Dry whey, total - 89.1 million pounds, up 11.8 percent.
Lactose, human and animal - 85.6 million pounds, up 3.0 percent.
Whey protein concentrate, total - 34.9 million pounds, down 0.9 percent.
Frozen products (comparisons with August 2011)
Ice cream, regular (hard) - 74.4 million gallons, down 5.5 percent.
Ice cream, lowfat (total) - 40.6 million gallons, down 6.0 percent.
Sherbet (hard) - 3.77 million gallons, down 13.7 percent.
Frozen yogurt (total) - 6.54 million gallons, down 1 percent.
National Farmers Organization supports senators’ call for USDA Dairy Federal Order review
From New England and the Great Lakes states, through the midwest to the Pacific, the story from dairy farmers is much the same. Producers are short hay and dairy rations because of the drought. And, when they can find it, the prices they are forced to pay is making many teeter on the edge of insolvency.
“We’re hearing from producers across the country about feed cost price jumps and high transportation costs,” said National Farmers Ag Policy Analyst Gene Paul. And that is creating a great deal of financial pain and hardship.
That’s why the organization is supporting a move by six U.S. Senators requesting Secretary of Agriculture Vilsack investigate whether or not dairy farmers can stay in business at the minimum milk price floor set by the Federal Milk Marketing Orders.
Led by U.S. Senator Bernie Sanders, the investigative request centers on the Federal Milk Marketing Orders, a system administered by USDA that establishes minimum pricing rules for raw fluid-grade milk in 10 U.S. regions, excluding California.
According to USDA figures, the imbalance in production costs with milk prices is a -$8.65. And National Farmers Paul says that current prices for fluid milk are not reasonable, when higher feed prices are factored in.
“We think it’s time to take a look at the Federal Order minimum price levels USDA sets for the sale of raw fluid-grade milk to processors. Although milk prices and feed costs always fluctuate, it’s the margin between the two that counts.
Corn Will Drive Monsanto 2013 Growth
Monsanto Co. said growth in corn and soybean seed sales volumes in 2012 outpaced the broader expansion in U.S. planted acreage. mThe company's U.S. market share increased 1% in both corn and soybeans, said Brett Begemann, Monsanto's president and chief commercial officer. The St. Louis-based company said corn will drive its growth in 2013. Begemann said that it should see a price increase of between 5% and 10% for U.S. corn seed as farmers seek out its premium products.
The company's chief financial officer added that more of the U.S. seed volume will be reflected in the first quarter than in years past. The first quarter, like the fourth quarter, is typically slower for the company due to the seasonal nature of seed sales.
Monsanto is expecting farmers to plant about 96 million corn acres in 2013, in line with this year's plantings, and sees 2013 soybean acres increasing from the 76.1 million acres planted this year. Begemann added that the company was confident in its ability to meet seed demand for 2013, despite damage from the worst drought in decades. He said the supply situation is similar to last year, when the corn seed crop was damaged by heat and storms.
Monsanto reported its fourth-quarter loss widened versus a year ago.
Schott Retires from National Corn Board Following Years of Distinguished Service
As the 2013 fiscal year begins, the National Corn Growers Association's Corn Board has thanked past Chairman and President Bart Schott for his service and leadership. Schott, who served as president during the 2011 fiscal year, will continue to work on behalf of his fellow corn growers through NCGA's Commodity Classic Joint Venture Committee.
The Off the Cob podcast series sat down with Schott to discuss the Corn Board's accomplishments during his tenure, to reflect on what he learned through his experiences and to ask his advice for farmers considering volunteering for leadership roles.
Looking back to his time as president of the Corn Board, Schott noted that the past three years have brought a wide range of issues to the forefront.
"It seems like every year brought with it new challenges and situations," he explained. "Personally, I look back and think more about the wins, of which there were many."
Focusing on the successes that came to fruition during his presidency, Schott recounts many achievements that benefit corn farmers today.
"For two and a half years, I have been a part of the U.S. Farmers and Ranchers Alliance," he began. "The formation and execution of this idea come to mind first when I think of our accomplishments because I have been able to watch it grow and flourish. Now, USFRA acts as an important vehicle helping farmers and ranchers come to the national debate on food and farming. USFRA really brings all of agriculture together for a dialogue with consumers."
Giving a large amount of credit to current NCGA Chairman Garry Niemeyer and the 2012 Corn Board for the free trade agreements reached during the last fiscal year, Schott spoke proudly of the work done to expand export markets for U.S. corn.
"We worked very hard on the free trade agreements with Colombia, Panama and Korea during my time as president," he went on to explain. "We also worked with the U.S. Grains Council on the DDG dumping issue raised by China with the World Trade Organization, even traveling there to meet with China's Minister of Trade."
Schott noted that the discussions with China not only improved communications between the parties but also provided a clearer picture of the growing demand for this quality feed ingredient.
Discussing topics from the international respect for NCGA that he discovered through his experiences to the importance of giving back to one's industry, Schott deemed his service on the Corn Board as one of the most important accomplishments in his professional life.
"I took my responsibilities seriously, remaining constantly aware that I was only one of our country's 300,000 corn growers," Schott summarized.
Welcome to the KTIC Agriculture Information blog!!! Check back here for the latest in ag news and information, from local events to international happenings and government reports that affect your operation. Please email with suggestions! -Chad Moyer, Farm Director, KTIC Radio
Wednesday, October 3, 2012
Tuesday, October 2, 2012
Tuesday October 2 Ag News
Grazing Alfalfa In The Fall
Larry Howard, UNL Extension Educator, Cuming County
Some good pasture still may be available this fall – from your alfalfa fields! Alfalfa can provide considerable, high quality grazing this fall. Grazing avoids the problem of slow curing of hay that often occurs during the fall and eliminates the cost of baling.
Many growers find that grazing alfalfa in the fall provides some special flexibility that often is useful this time of year. Alfalfa makes an outstanding weaning pasture for spring calves; yearlings gain weight rapidly on fall alfalfa even after summer grass has already died off; cows gain excellent condition before winter by grazing alfalfa during the fall; and ewes and lambs perform very well on fall alfalfa.
Fall grazing of alfalfa is not without problems, though. Bloat always must be a concern, but after alfalfa has been frosted and started to dry down it has less tendency to cause bloat than summer alfalfa. The same thing holds true with fully bloomed out alfalfa. To protect your livestock from bloat, fill them with hay before turning them onto alfalfa. Also, maintain access to dry hay or corn stalks while grazing alfalfa to help reduce bloat. Producers can swath the alfalfa ahead of grazing and let animals graze dry hay in the swath. Of course, bloat protectants like poloxalene can be fed as blocks or mixed with grain. This can be an expensive supplement, but it works well when animals eat a uniform amount each day.
Also be careful not to damage your alfalfa stand. Only graze when fields are dry and firm. Reserve a small sacrifice area to graze and for feeding when soils are wet to avoid damaging the entire field. If you aren't already doing so, consider alfalfa for late fall pasture. Its advantages greatly exceed any disadvantages.
Soybean Stubble For Cows
As soybeans are combined, cows sometimes are put out on the residues to graze. Some bean residues are even baled. But how good is this feed?
Producers are familiar with the usefulness of grazing corn stalks, but more residue from soybean fields are grazed every year. Cows seem to like what’s left behind after combining. But frankly, some folks may think their cows are getting more from those bean residues than what truly is there.
The problem is a matter of perception. When most people think of soybeans, they think high protein. So we expect bean residues will be a high protein feed, too. Unfortunately, the opposite is true; soybean residue is very low in protein. Soybean stems and pods contain only about 4 to 6 percent crude protein, well below the 7 to 8 percent needed for minimum support of a dry beef cow. And even though leaves can be up to 12 percent protein, it’s only around one-third digestible, so that’s not much help. In fact, protein digestibility is low in all bean residues.
Energy is even worse. TDN averages between 35 and 45 percent for leaves, stems, and pods. This is even lower than wheat straw. Unless cows fed soybean residues also find and eat quite a few beans, cows fed only bean residue can lose weight and condition very quickly.
Now, this doesn’t mean soybean residues are worthless for grazing or even baled. They can be a good extender of much higher quality hay or silage. But, cattle must be fed quite a bit of higher energy and protein feeds to make up for these deficiencies in soybean residues. Don’t be misled into thinking bean residues are as good or better than corn stalks. Otherwise, you and your cows will suffer the consequences.
Farmers Should Be Looking For On-Farm Research Opportunities This Fall
Two University of Nebraska-Lincoln Extension educators suggest while growers are spending time in their combines this fall they should give some thought as to how weather conditions in 2012 might impact performance of crop inputs and management practices in 2013.
Gary Zoubek and Keith Glewen, co-coordinators for the Nebraska On-Farm Research Network along with other cooperating UNL Extension educators and specialists, are suggesting whether it is irrigated or dryland corn and soybean production, inputs and certain production practices may possibly respond differently in 2013 as the result of unprecedented drought conditions this past growing season.
"This could be a real learning opportunity for growers who are in it for long haul," Zoubek said.
Both Zoubek and Glewen noted the Nebraska On-Farm Research Network provides growers the framework and opportunity to conduct relevant research in their own fields, using their own farm machinery.
"Growers often will comment that their soils and weather conditions are unique and results can vary greatly from their farms and fields as compared to private and public research stations located in the Midwest," Glewen said.
With the assistance of UNL faculty, farm operators can make valid, field-sized and replicated comparisons which can provide growers valuable economic information.
"Whether yield results are measured in a grain cart, weigh wagon or yield monitor, we have documented over a 20-year period of time a significant return on investment for conducting on-farm research," Glewen said.
For more information, interested growers should go to the CropWatch website at www.cropwatch.unl.edu and click on the farm research link.
The Nebraska On-Farm Research Network is sponsored by UNL Extension in partnership with the Nebraska Corn Growers Association and the Nebraska Corn Board.
Vilsack Announces that America's Farm Co-ops Set Records in 2011
It's National Cooperative Month: Co-ops set Sales and Income Records, Number of Co-op Jobs Also up
Agriculture Secretary Tom Vilsack said today that farmer, rancher and fishery cooperatives posted record sales and income in 2011, surpassing the previous record sales year of 2008 by $10 billion while besting the old income record by $500 million. Dallas Tonsager, under secretary for Rural Development, made the announcement on the Secretary's behalf, kicking-off National Cooperative Month. Tonsager said co-op employment levels remained strong, with cooperatives employing 184,000 full-time, part-time and seasonal workers, up slightly from 2010.
"These new cooperative sales and income records for 2011 underscore the strength and productivity of the nation's farmer- and rancher-owned cooperatives, and the vital role they play in the nation's economy," said Tonsager. "Primarily because of mergers, the number of farm co-ops continued to decline, but memberships and asset values are up."
Net income before taxes for all agricultural co-ops was a record $5.4 billion, eclipsing the previous high of $4.9 billion, set in 2008. Net income was up more than 25 percent, or $1 billion, from 2010.
The year also saw double-digit increases in prices for dairy products, cotton, livestock and grains and oilseeds. Farm production expenses also increased by double-digits in 2011, with feed, fertilizer and fuel prices leading the upward trend. The 2,285 surveyed cooperatives had sales of $213 billion, exceeding 2010 sales by more than $40 billion.
Top 100 Ag co-ops
USDA's annual list of the nation's 100 largest agricultural cooperatives, also released today, shows that they also had record sales and income in 2011. The 100 largest ag co-ops reported revenue of $148 billion in 2011, an increase of almost 30 percent over 2010, when revenue totaled $113 billion. Net income for the 100 top co-ops was $3.17 billion, up from $2.35 billion in 2010. The previous top 100 co-op records were $130 billion for sales and $2.42 billion for income, both marks set in 2008.
CHS Inc., Saint Paul, Minn. – an energy, farm supply, grain and food co-op – was once again the nation's largest ag co-op, with $36.9 billion in revenue in 2011. It was followed by Dairy Farmers of America, Kansas City, Mo.; with $12.9 billion in revenue. It traded places from 2010 with third-ranked Land O' Lakes Inc., St. Paul, Minn., a dairy, food and farm supply co-op, with $12.8 billion in revenue in 2011.
Iowa is home to 14 of the top 100 ag co-ops, the most of any state. It is followed by Minnesota with 13, Nebraska with 10, California with 6 and Wisconsin with 5. The biggest gains on the list were made by cotton cooperatives, due primarily to sharply higher cotton prices in 2011. Carolinas Cotton Growers Cooperative, Garner, N.C., made the largest jump, rising from 129 in 2010 to 71 on the 2011 list. It was followed by Calcot Ltd., Bakersfield, Calif., which climbed from 131 in 2010 to 85 in 2011. The next eight biggest gainers on the list were all grain or mixed (grain and farm supply) co-ops, due largely to high grain prices.
Most Ag co-op sectors see gains
Looking at the entire ag co-op sector, grain and oilseed sales by cooperatives climbed by almost $14 billion in 2011, while dairy product marketing increased by $8 billion. Cotton sales increased more than $1.5 billion while livestock and sugar sales both gained more than $600 million. Sales of farm supplies increased by $10 billion, primarily due to increasing energy prices. Farm supply co-ops recorded gains of more than $3 billion for petroleum products, while sales were up by $1 billion for fertilizer, feed and crop protectants.
Marketing of food, fiber, renewable fuels and farm supplies by cooperatives experienced 24 percent increases over the previous year, according to the annual survey conducted by the Cooperative Programs office of USDA Rural Development. Gross business volume of $213 billion was the largest ever, as was net income before taxes.
The value of cooperative assets in 2011 grew by about $13 billion, with liabilities increasing by $11 billion and owner equity gaining $2 billion. Equity capital remains low but is clearly showing an upward trend, with an 8 percent increase over the previous year.
Patronage income (refunds from other cooperatives due to sales between cooperatives) fell by more than 11 percent, to $613 million, down from $674 million in 2010.
Farmer, rancher and fishery cooperatives remain one of the largest employers in many rural communities and also provide jobs in many cities. The total farm co-op workforce of 184,000 was up slightly from 2010. While full-time jobs at co-ops increased by 1,800, the number of part-time and seasonal employees declined by 1,600.
There was a continued downward trend in farm numbers, with USDA counting 2.2 million farms in 2011, down about 10,000 from 2010. The number of farmer cooperatives continues to decline; there are now 2,285 farmer, rancher and fishery cooperatives, down from 2,314 in 2010. Mergers account for most of the drop, resulting in larger cooperatives.
Producers held 2.3 million memberships in cooperatives in 2011, up 2 percent from 2010. The number of U.S. farms and cooperative memberships are now about equal. This does not mean that every producer is a member of an agricultural cooperative. Previous studies have found that many farmers and ranchers are members of up to three cooperatives, so farm numbers and cooperative memberships are not strictly comparable.
For more in-depth information about how the nation's agricultural cooperatives performed in 2011, see the September-October issue of USDA's "Rural Cooperatives" magazine at: http://www.rurdev.usda.gov/BCP_Coop_RurCoopMag.html.
Large Losses Still Loom for Pork Industry
Pork producers are expected to continue to suffer very large losses in the next six months after already operating in the red for the last six. These large losses have been brought on by the extreme feed prices due to the drought.
According to Purdue University Extension economist Chris Hurt there is little producers can do to change the overall situation for the industry because the pigs that will represent these large losses are already on-feed. "The pigs that are here today represent producers' plans earlier this year when they were hopeful for $5 corn prices," Hurt said.
"In the spring of 2012, producers were optimistic that cheap corn was going to arrive by the fall and were expanding the breeding herd," Hurt said. "That optimism faded quickly after mid-June when the reality of drought became apparent. The drought turned optimism into fear and producers then shifted to a liquidation mode during late July and August. By early September they had reduced the size of the breeding herd by 74,000 (1.3 percent) compared to the USDA June inventory estimate. In September, weekly sow slaughter estimates indicated a slowing of the liquidation, with sow slaughter only slightly larger than a year ago. Some follow-through on sow liquidation appears to be likely as farrowing intentions are down nearly 3 percent for the fall and 2 percent for this coming winter," he said.
Hurt said that September hog slaughter was up about 4 percent and was surprisingly large. USDA's Sept. 1 market herd inventory estimates suggest that this high rate should drop to only 1 percent more hogs in October and then move to 1 percent fewer hogs for November through February. Next spring's market hog supply will also be down about 2 percent, with fall farrowings down 3 percent and the number of pigs per litter up 1 percent. Supplies next summer would be down about 1 percent if producers follow-through on intentions to reduce winter farrowing by 2 percent and with 1 percent more pigs per litter. Market weights began to drop in September as producers tried to save valuable corn. Currently producers are selling hogs about 3 pounds lighter. Lighter weights are likely to continue and will help ease pork supplies as long as corn and meal prices stay high.
"Large losses still loom over the industry for the next six months," Hurt said. "Live hog prices are expected to be in the mid-to-higher $50s for the final quarter of the year and then improve to the low-to-mid $60s in the first quarter of 2013. Unfortunately, costs are still far higher due to continued high corn and soybean meal prices. Estimated costs this fall and winter are about $73 per live hundredweight and losses are expected to be about $45 per head this fall and $30 in the winter. Unfortunately, the industry has been suffering losses of an average of $18 per head for the past six months representing the second and third quarters of this year," he said.
How big are these losses across the industry?
Hurt reported that during the last six months, total losses are estimated to have been about $1 billion. Losses in the next six months are forecast at around an additional $2 billion, meaning that the amount of equity erosion that has occurred in the last six months is expected to double in the next six months. For any hog production, operations that are in a weak financial situation at this point, lenders and other creditors will be key to their ability to continue. In September, two large Canadian hog firms filed for receivership and bankruptcy.
Creditors also need to look at the longer-term outlook when making their decisions to continue to finance individual pork operations, Hurt advised.
"By spring, hog production is expected to return to breakeven with the start of some moderation in feed costs due to lower soybean meal prices," Hurt said. "Corn prices are expected to begin to move lower in the late summer of 2013 if more normal yield outcomes are developing for the 2013 corn crop. Currently the outlook for the last three quarters of 2013 is indicating a small positive return of $2 per head. While that would not allow much equity building, it would end the equity erosion," he said.
What can producers do now?
"They need to work with their creditors to secure a path through the next six months," Hurt said. "Overall, some additional reduction in the breeding herd is needed and is likely. Producers can also sell at the lightest weights possible to avoid any underweight discounts. However, the decision on weights depends on the economics of each producer, so each needs to do their own analysis. Also, producers are looking for all alternative feed nutrient supplies including discounted aflatoxin corn that has contamination levels approved by FDA," he said.
Ammonia Prices Edge Higher
As has been the case in recent weeks, retail fertilizer prices tracked by DTN for the fourth week of September continue to show three fertilizers on the move. The remaining five fertilizers, meanwhile, are staying generally steady. The only fertilizer that was higher by any significant amount was anhydrous, and it was higher for the eighth straight week. With fall fertilizer application rapidly approaching, the nitrogen fertilizer was another 8% higher compared to the fourth week of August and had an average price of $843/ton. It has gained about $79/ton since late April. Two other fertilizers were slightly higher compared to a month earlier. MAP had an average price of $672/ton while UAN28 was at $383/ton.
Leading the way lower once again, like it has many times in recent months, was urea. The nitrogen fertilizer was 8% lower and now has an average price of $595/ton. Urea's price has now dropped $172/ton since Memorial Day. Also somewhat lower was 10-34-0. The starter fertilizer declined 7% compared to a month earlier. 10-34-0 had an average price of $618/ton. Three other fertilizers were also less expensive but just slightly lower. DAP had an average price of $634/ton, potash $619/ton and UAN32 $424/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.65/lb.N, anhydrous $0.51/lb.N, UAN28 $0.68/lb.N and UAN32 $0.66/lb.N.
Only one of the eight major fertilizers is still showing a price increase compared to one year earlier. Anhydrous is now 3% higher compared to last year. Five fertilizers are actually lower in price compared to September 2011. Urea is now 3% lower, potash 4% lower, UAN28 6% lower, UAN32 7% lower and MAP 9% lower. Two remaining fertilizers are now down double digits from a year ago. DAP is now down 10% while 10-34-0 is now 23% less expensive from a year earlier.
CWT Assists with 4.4 Million Pounds of Cheese and Butter Export Sales
Cooperatives Working Together (CWT) has accepted 10 requests for export assistance from Dairy Farmers of America, Land O’Lakes, Maryland & Virginia Milk Producers Cooperative Association and United Dairymen of Arizona to sell 4.246 million pounds (1,926 metric tons) of Cheddar cheese, and 200,621 pounds (91 metric tons) of butter, to customers in Asia, Central America, the Middle East and North Africa. The product will be delivered October 2012 through March 2013.
In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 95.9 million pounds, butter totaling 58.3 million pounds, and anhydrous milk fat totaling 123,459 pounds. The product will go to 34 countries on four continents. On a butterfat basis, the milk equivalent of these exports is 2.159 billion pounds, or the same as the annual milk production of 102,700 cows.
Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by reducing inventories that overhang the market and depress cheese and butter prices. In the long-term, CWT’s Export Assistance program helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the farm milk that produces them.
CWT will pay export bonuses to the bidders only when delivery of the product is verified by the submission of the required documentation.
Japan’s Olympic Chefs Team Chooses U.S. Beef for International Culinary Event
When a team of Japan’s finest chefs goes head-to-head with more than 1,000 chefs from around the world starting this week (Oct. 5-10) in Erfurt, Germany, it will be relying on U.S. beef to bring home the gold medal.
The International Exhibition of Culinary Art 2012 is a world-class event held every four years, in which more than 1,000 cooks and confectioners from 33 countries compete for medals and the Olympic championship title.
“Corn and soybean-fed U.S. beef is tender, tasty and juicy with just the right amount of marbling,” said Japanese chef team captain Miura. “It is a perfect match for our main dish (U.S. beef fillet wrapped in burdock and veal-base mousse). The slow-roasting of U.S. beef brings out the beautiful balance in cherry red color as well as marbling and its taste.”
The chef teams will have 6½ hours to prepare their dishes, and each team will serve 110 guests who purchase tickets in advance. Japan’s team practiced for the competition by serving about 130 guests at an event at the Kyoto ANA Hotel.
“It is an honor for U.S. beef to be featured by Japan’s national team in this worldwide competition,” said Takemichi Yamashoji, USMEF-Japan senior marketing director. “Japan is the home of world-class Kobe beef, but the chefs felt that U.S. beef is the right choice for this event.”
Established by a group of German chefs in 1896, the International Exhibition of Culinary Art is a prestigious and elaborate event. The Japanese National Team was selected by the All Japan Culinary Chefs Association, which has a close relationship with USMEF. Japan’s team of seven chefs will compete in the event with the Beef Checkoff logo on their uniforms along with the USMEF We Care logo that has become synonymous with U.S. beef in Japan.
While primary funding for the Japanese National Team comes from 45 Japanese corporations including Kirin and Osaka Gas, U.S. beef for the competition is provided through the Beef Checkoff Program.
Mosaic Profit Off 18%
Mosaic Co.'s fiscal first-quarter earnings fell 18% as the fertilizer producer's sales declined because of production problems and weak demand in China and India.
Mosaic said revenue fell 19%, weakened by lower sales volumes and prices for phosphate, its biggest source of revenue.
The Plymouth, Minn., company struggled to meet phosphate demand due to longer-than-normal annual plant repairs, as well as disruptions from Hurricane Isaac at its Louisiana facilities at the end of August. Sales at Mosaic were further hurt by low Mississippi River levels, which slowed fertilizer shipments.
"Demand for our products outpaced our ability to produce and deliver," Chief Executive Jim Prokopanko said in a statement. "We expect better execution in the quarters ahead."
Weak demand for potash in China and India caused the company to slow potash production and also pressured Mosaic's earnings.
For the quarter ended Aug. 31, Mosaic reported net income of $429.4 million, or $1.01 a share, down from $526 million, or $1.17 a share, a year earlier. The latest period included a net two cents in charges related to currency fluctuations, legal reserve expenses and other items. The year-earlier period included a net four cents in charges.
Revenue slipped to $2.51 billion from $3.08 billion a year earlier.
Argentina Suspends Bunge
Argentina has affirmed the suspension of the local subsidiary of international grain trader Bunge Ltd. from a key grain registry on charges of tax evasion.
The company, one of Argentina's leading grain exporters, was included in a list of grain storage operators suspended from the registry published in the official bulletin Monday.
Exclusion from the registry means the income tax withheld on domestic grain trades rises to 15% from 2% and imposes the withholding of a 10.5% sales tax, up from 8%. The affected firms also face new, burdensome approval requirements imposed for domestic shipping permits.
Bunge will still be able to trade, but the suspension will result a big financial cost for the company, said an official at Afip, the national tax agency, who asked not to be identified.
A Bunge spokesman declined to comment. In its 2011 annual report, Bunge said it "believes the allegations and claims are without merit, however, we are...unable to predict the outcome."
Earlier this year, Bunge lost an appeal in federal court against suspension from the registry over the charges.
Larry Howard, UNL Extension Educator, Cuming County
Some good pasture still may be available this fall – from your alfalfa fields! Alfalfa can provide considerable, high quality grazing this fall. Grazing avoids the problem of slow curing of hay that often occurs during the fall and eliminates the cost of baling.
Many growers find that grazing alfalfa in the fall provides some special flexibility that often is useful this time of year. Alfalfa makes an outstanding weaning pasture for spring calves; yearlings gain weight rapidly on fall alfalfa even after summer grass has already died off; cows gain excellent condition before winter by grazing alfalfa during the fall; and ewes and lambs perform very well on fall alfalfa.
Fall grazing of alfalfa is not without problems, though. Bloat always must be a concern, but after alfalfa has been frosted and started to dry down it has less tendency to cause bloat than summer alfalfa. The same thing holds true with fully bloomed out alfalfa. To protect your livestock from bloat, fill them with hay before turning them onto alfalfa. Also, maintain access to dry hay or corn stalks while grazing alfalfa to help reduce bloat. Producers can swath the alfalfa ahead of grazing and let animals graze dry hay in the swath. Of course, bloat protectants like poloxalene can be fed as blocks or mixed with grain. This can be an expensive supplement, but it works well when animals eat a uniform amount each day.
Also be careful not to damage your alfalfa stand. Only graze when fields are dry and firm. Reserve a small sacrifice area to graze and for feeding when soils are wet to avoid damaging the entire field. If you aren't already doing so, consider alfalfa for late fall pasture. Its advantages greatly exceed any disadvantages.
Soybean Stubble For Cows
As soybeans are combined, cows sometimes are put out on the residues to graze. Some bean residues are even baled. But how good is this feed?
Producers are familiar with the usefulness of grazing corn stalks, but more residue from soybean fields are grazed every year. Cows seem to like what’s left behind after combining. But frankly, some folks may think their cows are getting more from those bean residues than what truly is there.
The problem is a matter of perception. When most people think of soybeans, they think high protein. So we expect bean residues will be a high protein feed, too. Unfortunately, the opposite is true; soybean residue is very low in protein. Soybean stems and pods contain only about 4 to 6 percent crude protein, well below the 7 to 8 percent needed for minimum support of a dry beef cow. And even though leaves can be up to 12 percent protein, it’s only around one-third digestible, so that’s not much help. In fact, protein digestibility is low in all bean residues.
Energy is even worse. TDN averages between 35 and 45 percent for leaves, stems, and pods. This is even lower than wheat straw. Unless cows fed soybean residues also find and eat quite a few beans, cows fed only bean residue can lose weight and condition very quickly.
Now, this doesn’t mean soybean residues are worthless for grazing or even baled. They can be a good extender of much higher quality hay or silage. But, cattle must be fed quite a bit of higher energy and protein feeds to make up for these deficiencies in soybean residues. Don’t be misled into thinking bean residues are as good or better than corn stalks. Otherwise, you and your cows will suffer the consequences.
Farmers Should Be Looking For On-Farm Research Opportunities This Fall
Two University of Nebraska-Lincoln Extension educators suggest while growers are spending time in their combines this fall they should give some thought as to how weather conditions in 2012 might impact performance of crop inputs and management practices in 2013.
Gary Zoubek and Keith Glewen, co-coordinators for the Nebraska On-Farm Research Network along with other cooperating UNL Extension educators and specialists, are suggesting whether it is irrigated or dryland corn and soybean production, inputs and certain production practices may possibly respond differently in 2013 as the result of unprecedented drought conditions this past growing season.
"This could be a real learning opportunity for growers who are in it for long haul," Zoubek said.
Both Zoubek and Glewen noted the Nebraska On-Farm Research Network provides growers the framework and opportunity to conduct relevant research in their own fields, using their own farm machinery.
"Growers often will comment that their soils and weather conditions are unique and results can vary greatly from their farms and fields as compared to private and public research stations located in the Midwest," Glewen said.
With the assistance of UNL faculty, farm operators can make valid, field-sized and replicated comparisons which can provide growers valuable economic information.
"Whether yield results are measured in a grain cart, weigh wagon or yield monitor, we have documented over a 20-year period of time a significant return on investment for conducting on-farm research," Glewen said.
For more information, interested growers should go to the CropWatch website at www.cropwatch.unl.edu and click on the farm research link.
The Nebraska On-Farm Research Network is sponsored by UNL Extension in partnership with the Nebraska Corn Growers Association and the Nebraska Corn Board.
Vilsack Announces that America's Farm Co-ops Set Records in 2011
It's National Cooperative Month: Co-ops set Sales and Income Records, Number of Co-op Jobs Also up
Agriculture Secretary Tom Vilsack said today that farmer, rancher and fishery cooperatives posted record sales and income in 2011, surpassing the previous record sales year of 2008 by $10 billion while besting the old income record by $500 million. Dallas Tonsager, under secretary for Rural Development, made the announcement on the Secretary's behalf, kicking-off National Cooperative Month. Tonsager said co-op employment levels remained strong, with cooperatives employing 184,000 full-time, part-time and seasonal workers, up slightly from 2010.
"These new cooperative sales and income records for 2011 underscore the strength and productivity of the nation's farmer- and rancher-owned cooperatives, and the vital role they play in the nation's economy," said Tonsager. "Primarily because of mergers, the number of farm co-ops continued to decline, but memberships and asset values are up."
Net income before taxes for all agricultural co-ops was a record $5.4 billion, eclipsing the previous high of $4.9 billion, set in 2008. Net income was up more than 25 percent, or $1 billion, from 2010.
The year also saw double-digit increases in prices for dairy products, cotton, livestock and grains and oilseeds. Farm production expenses also increased by double-digits in 2011, with feed, fertilizer and fuel prices leading the upward trend. The 2,285 surveyed cooperatives had sales of $213 billion, exceeding 2010 sales by more than $40 billion.
Top 100 Ag co-ops
USDA's annual list of the nation's 100 largest agricultural cooperatives, also released today, shows that they also had record sales and income in 2011. The 100 largest ag co-ops reported revenue of $148 billion in 2011, an increase of almost 30 percent over 2010, when revenue totaled $113 billion. Net income for the 100 top co-ops was $3.17 billion, up from $2.35 billion in 2010. The previous top 100 co-op records were $130 billion for sales and $2.42 billion for income, both marks set in 2008.
CHS Inc., Saint Paul, Minn. – an energy, farm supply, grain and food co-op – was once again the nation's largest ag co-op, with $36.9 billion in revenue in 2011. It was followed by Dairy Farmers of America, Kansas City, Mo.; with $12.9 billion in revenue. It traded places from 2010 with third-ranked Land O' Lakes Inc., St. Paul, Minn., a dairy, food and farm supply co-op, with $12.8 billion in revenue in 2011.
Iowa is home to 14 of the top 100 ag co-ops, the most of any state. It is followed by Minnesota with 13, Nebraska with 10, California with 6 and Wisconsin with 5. The biggest gains on the list were made by cotton cooperatives, due primarily to sharply higher cotton prices in 2011. Carolinas Cotton Growers Cooperative, Garner, N.C., made the largest jump, rising from 129 in 2010 to 71 on the 2011 list. It was followed by Calcot Ltd., Bakersfield, Calif., which climbed from 131 in 2010 to 85 in 2011. The next eight biggest gainers on the list were all grain or mixed (grain and farm supply) co-ops, due largely to high grain prices.
Most Ag co-op sectors see gains
Looking at the entire ag co-op sector, grain and oilseed sales by cooperatives climbed by almost $14 billion in 2011, while dairy product marketing increased by $8 billion. Cotton sales increased more than $1.5 billion while livestock and sugar sales both gained more than $600 million. Sales of farm supplies increased by $10 billion, primarily due to increasing energy prices. Farm supply co-ops recorded gains of more than $3 billion for petroleum products, while sales were up by $1 billion for fertilizer, feed and crop protectants.
Marketing of food, fiber, renewable fuels and farm supplies by cooperatives experienced 24 percent increases over the previous year, according to the annual survey conducted by the Cooperative Programs office of USDA Rural Development. Gross business volume of $213 billion was the largest ever, as was net income before taxes.
The value of cooperative assets in 2011 grew by about $13 billion, with liabilities increasing by $11 billion and owner equity gaining $2 billion. Equity capital remains low but is clearly showing an upward trend, with an 8 percent increase over the previous year.
Patronage income (refunds from other cooperatives due to sales between cooperatives) fell by more than 11 percent, to $613 million, down from $674 million in 2010.
Farmer, rancher and fishery cooperatives remain one of the largest employers in many rural communities and also provide jobs in many cities. The total farm co-op workforce of 184,000 was up slightly from 2010. While full-time jobs at co-ops increased by 1,800, the number of part-time and seasonal employees declined by 1,600.
There was a continued downward trend in farm numbers, with USDA counting 2.2 million farms in 2011, down about 10,000 from 2010. The number of farmer cooperatives continues to decline; there are now 2,285 farmer, rancher and fishery cooperatives, down from 2,314 in 2010. Mergers account for most of the drop, resulting in larger cooperatives.
Producers held 2.3 million memberships in cooperatives in 2011, up 2 percent from 2010. The number of U.S. farms and cooperative memberships are now about equal. This does not mean that every producer is a member of an agricultural cooperative. Previous studies have found that many farmers and ranchers are members of up to three cooperatives, so farm numbers and cooperative memberships are not strictly comparable.
For more in-depth information about how the nation's agricultural cooperatives performed in 2011, see the September-October issue of USDA's "Rural Cooperatives" magazine at: http://www.rurdev.usda.gov/BCP_Coop_RurCoopMag.html.
Large Losses Still Loom for Pork Industry
Pork producers are expected to continue to suffer very large losses in the next six months after already operating in the red for the last six. These large losses have been brought on by the extreme feed prices due to the drought.
According to Purdue University Extension economist Chris Hurt there is little producers can do to change the overall situation for the industry because the pigs that will represent these large losses are already on-feed. "The pigs that are here today represent producers' plans earlier this year when they were hopeful for $5 corn prices," Hurt said.
"In the spring of 2012, producers were optimistic that cheap corn was going to arrive by the fall and were expanding the breeding herd," Hurt said. "That optimism faded quickly after mid-June when the reality of drought became apparent. The drought turned optimism into fear and producers then shifted to a liquidation mode during late July and August. By early September they had reduced the size of the breeding herd by 74,000 (1.3 percent) compared to the USDA June inventory estimate. In September, weekly sow slaughter estimates indicated a slowing of the liquidation, with sow slaughter only slightly larger than a year ago. Some follow-through on sow liquidation appears to be likely as farrowing intentions are down nearly 3 percent for the fall and 2 percent for this coming winter," he said.
Hurt said that September hog slaughter was up about 4 percent and was surprisingly large. USDA's Sept. 1 market herd inventory estimates suggest that this high rate should drop to only 1 percent more hogs in October and then move to 1 percent fewer hogs for November through February. Next spring's market hog supply will also be down about 2 percent, with fall farrowings down 3 percent and the number of pigs per litter up 1 percent. Supplies next summer would be down about 1 percent if producers follow-through on intentions to reduce winter farrowing by 2 percent and with 1 percent more pigs per litter. Market weights began to drop in September as producers tried to save valuable corn. Currently producers are selling hogs about 3 pounds lighter. Lighter weights are likely to continue and will help ease pork supplies as long as corn and meal prices stay high.
"Large losses still loom over the industry for the next six months," Hurt said. "Live hog prices are expected to be in the mid-to-higher $50s for the final quarter of the year and then improve to the low-to-mid $60s in the first quarter of 2013. Unfortunately, costs are still far higher due to continued high corn and soybean meal prices. Estimated costs this fall and winter are about $73 per live hundredweight and losses are expected to be about $45 per head this fall and $30 in the winter. Unfortunately, the industry has been suffering losses of an average of $18 per head for the past six months representing the second and third quarters of this year," he said.
How big are these losses across the industry?
Hurt reported that during the last six months, total losses are estimated to have been about $1 billion. Losses in the next six months are forecast at around an additional $2 billion, meaning that the amount of equity erosion that has occurred in the last six months is expected to double in the next six months. For any hog production, operations that are in a weak financial situation at this point, lenders and other creditors will be key to their ability to continue. In September, two large Canadian hog firms filed for receivership and bankruptcy.
Creditors also need to look at the longer-term outlook when making their decisions to continue to finance individual pork operations, Hurt advised.
"By spring, hog production is expected to return to breakeven with the start of some moderation in feed costs due to lower soybean meal prices," Hurt said. "Corn prices are expected to begin to move lower in the late summer of 2013 if more normal yield outcomes are developing for the 2013 corn crop. Currently the outlook for the last three quarters of 2013 is indicating a small positive return of $2 per head. While that would not allow much equity building, it would end the equity erosion," he said.
What can producers do now?
"They need to work with their creditors to secure a path through the next six months," Hurt said. "Overall, some additional reduction in the breeding herd is needed and is likely. Producers can also sell at the lightest weights possible to avoid any underweight discounts. However, the decision on weights depends on the economics of each producer, so each needs to do their own analysis. Also, producers are looking for all alternative feed nutrient supplies including discounted aflatoxin corn that has contamination levels approved by FDA," he said.
Ammonia Prices Edge Higher
As has been the case in recent weeks, retail fertilizer prices tracked by DTN for the fourth week of September continue to show three fertilizers on the move. The remaining five fertilizers, meanwhile, are staying generally steady. The only fertilizer that was higher by any significant amount was anhydrous, and it was higher for the eighth straight week. With fall fertilizer application rapidly approaching, the nitrogen fertilizer was another 8% higher compared to the fourth week of August and had an average price of $843/ton. It has gained about $79/ton since late April. Two other fertilizers were slightly higher compared to a month earlier. MAP had an average price of $672/ton while UAN28 was at $383/ton.
Leading the way lower once again, like it has many times in recent months, was urea. The nitrogen fertilizer was 8% lower and now has an average price of $595/ton. Urea's price has now dropped $172/ton since Memorial Day. Also somewhat lower was 10-34-0. The starter fertilizer declined 7% compared to a month earlier. 10-34-0 had an average price of $618/ton. Three other fertilizers were also less expensive but just slightly lower. DAP had an average price of $634/ton, potash $619/ton and UAN32 $424/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.65/lb.N, anhydrous $0.51/lb.N, UAN28 $0.68/lb.N and UAN32 $0.66/lb.N.
Only one of the eight major fertilizers is still showing a price increase compared to one year earlier. Anhydrous is now 3% higher compared to last year. Five fertilizers are actually lower in price compared to September 2011. Urea is now 3% lower, potash 4% lower, UAN28 6% lower, UAN32 7% lower and MAP 9% lower. Two remaining fertilizers are now down double digits from a year ago. DAP is now down 10% while 10-34-0 is now 23% less expensive from a year earlier.
CWT Assists with 4.4 Million Pounds of Cheese and Butter Export Sales
Cooperatives Working Together (CWT) has accepted 10 requests for export assistance from Dairy Farmers of America, Land O’Lakes, Maryland & Virginia Milk Producers Cooperative Association and United Dairymen of Arizona to sell 4.246 million pounds (1,926 metric tons) of Cheddar cheese, and 200,621 pounds (91 metric tons) of butter, to customers in Asia, Central America, the Middle East and North Africa. The product will be delivered October 2012 through March 2013.
In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 95.9 million pounds, butter totaling 58.3 million pounds, and anhydrous milk fat totaling 123,459 pounds. The product will go to 34 countries on four continents. On a butterfat basis, the milk equivalent of these exports is 2.159 billion pounds, or the same as the annual milk production of 102,700 cows.
Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by reducing inventories that overhang the market and depress cheese and butter prices. In the long-term, CWT’s Export Assistance program helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the farm milk that produces them.
CWT will pay export bonuses to the bidders only when delivery of the product is verified by the submission of the required documentation.
Japan’s Olympic Chefs Team Chooses U.S. Beef for International Culinary Event
When a team of Japan’s finest chefs goes head-to-head with more than 1,000 chefs from around the world starting this week (Oct. 5-10) in Erfurt, Germany, it will be relying on U.S. beef to bring home the gold medal.
The International Exhibition of Culinary Art 2012 is a world-class event held every four years, in which more than 1,000 cooks and confectioners from 33 countries compete for medals and the Olympic championship title.
“Corn and soybean-fed U.S. beef is tender, tasty and juicy with just the right amount of marbling,” said Japanese chef team captain Miura. “It is a perfect match for our main dish (U.S. beef fillet wrapped in burdock and veal-base mousse). The slow-roasting of U.S. beef brings out the beautiful balance in cherry red color as well as marbling and its taste.”
The chef teams will have 6½ hours to prepare their dishes, and each team will serve 110 guests who purchase tickets in advance. Japan’s team practiced for the competition by serving about 130 guests at an event at the Kyoto ANA Hotel.
“It is an honor for U.S. beef to be featured by Japan’s national team in this worldwide competition,” said Takemichi Yamashoji, USMEF-Japan senior marketing director. “Japan is the home of world-class Kobe beef, but the chefs felt that U.S. beef is the right choice for this event.”
Established by a group of German chefs in 1896, the International Exhibition of Culinary Art is a prestigious and elaborate event. The Japanese National Team was selected by the All Japan Culinary Chefs Association, which has a close relationship with USMEF. Japan’s team of seven chefs will compete in the event with the Beef Checkoff logo on their uniforms along with the USMEF We Care logo that has become synonymous with U.S. beef in Japan.
While primary funding for the Japanese National Team comes from 45 Japanese corporations including Kirin and Osaka Gas, U.S. beef for the competition is provided through the Beef Checkoff Program.
Mosaic Profit Off 18%
Mosaic Co.'s fiscal first-quarter earnings fell 18% as the fertilizer producer's sales declined because of production problems and weak demand in China and India.
Mosaic said revenue fell 19%, weakened by lower sales volumes and prices for phosphate, its biggest source of revenue.
The Plymouth, Minn., company struggled to meet phosphate demand due to longer-than-normal annual plant repairs, as well as disruptions from Hurricane Isaac at its Louisiana facilities at the end of August. Sales at Mosaic were further hurt by low Mississippi River levels, which slowed fertilizer shipments.
"Demand for our products outpaced our ability to produce and deliver," Chief Executive Jim Prokopanko said in a statement. "We expect better execution in the quarters ahead."
Weak demand for potash in China and India caused the company to slow potash production and also pressured Mosaic's earnings.
For the quarter ended Aug. 31, Mosaic reported net income of $429.4 million, or $1.01 a share, down from $526 million, or $1.17 a share, a year earlier. The latest period included a net two cents in charges related to currency fluctuations, legal reserve expenses and other items. The year-earlier period included a net four cents in charges.
Revenue slipped to $2.51 billion from $3.08 billion a year earlier.
Argentina Suspends Bunge
Argentina has affirmed the suspension of the local subsidiary of international grain trader Bunge Ltd. from a key grain registry on charges of tax evasion.
The company, one of Argentina's leading grain exporters, was included in a list of grain storage operators suspended from the registry published in the official bulletin Monday.
Exclusion from the registry means the income tax withheld on domestic grain trades rises to 15% from 2% and imposes the withholding of a 10.5% sales tax, up from 8%. The affected firms also face new, burdensome approval requirements imposed for domestic shipping permits.
Bunge will still be able to trade, but the suspension will result a big financial cost for the company, said an official at Afip, the national tax agency, who asked not to be identified.
A Bunge spokesman declined to comment. In its 2011 annual report, Bunge said it "believes the allegations and claims are without merit, however, we are...unable to predict the outcome."
Earlier this year, Bunge lost an appeal in federal court against suspension from the registry over the charges.
Monday, October 1, 2012
October 1 Crop Progress and Harvest Report
NE Corn, Soybean Harvest About Half Complete
Agricultural Summary:
For the week ending September 30, 2012, fall harvest progressed across the state with limited rainfall, according to USDA’s National Agricultural Statistics Service, Nebraska Field Office. Corn harvest is over half complete, near one month ahead of average. Soybean harvest also neared the half way point with harvest difficult due to plants with dry pods and green stems. Winter wheat seeding approached the two-thirds point but fields were slow to emerge due to dry soil conditions. Sorghum and proso millet harvests continued and sugar beet harvest has started. With 98 percent of the state’s pastures in poor or very poor condition, cattle producers continued seeking forage supplies and culling of livestock.
Weather Summary:
Light precipitation was received in the southern Panhandle and Southwest District with amounts recorded less than one quarter of an inch. Other areas of the state received little to no rain. Temperatures averaged near normal in the Northeast, Central and East Central Districts, 2 to 3 degrees above normal in the southern third, and 4 degrees above normal in the Panhandle. Highs were in the mid 80’s and lows were in the mid 30’s.
Field Crops Report:
Corn mature reached 93 percent, well ahead of 68 last year and 67 average. Corn harvested for grain was 53 percent, compared to 10 last year and 29 days ahead of 10 average. Corn conditions rated 22 percent very poor, 20 poor, 26 fair, 27 good, and 5 excellent, well below 74 percent good to excellent last year and 78 average. Irrigated corn conditions rated 53 percent good to excellent and dryland corn rated 2.
Soybeans dropping leaves were 91 percent, compared to 69 last year and 79 average. Soybeans harvested were 48 percent, well ahead of 15 last year and 11 days ahead of 16 average. Soybean conditions rated 20 percent very poor, 28 poor, 33 fair, 17 good, and 2 excellent, well below last year’s 79 percent good to excellent and 78 average.
Winter wheat seeded was at 64 percent, behind both 77 percent last year and average. Winter wheat emerged was 16 percent, well behind 46 percent last year and 41 average.
Sorghum turning color was 84 percent, compared to 99 last year and 96 average. Sorghum mature was 51 percent, behind 63 last year but ahead of 49 average. Sorghum harvested was 11 percent complete, ahead of 6 last year and 4 average. Sorghum conditions rated 13 percent very poor, 42 poor, 33 fair, 11 good, and 1 excellent, well below 74 percent good to excellent last year and 76 average.
The fourth cutting of alfalfa was 87 percent complete, ahead of 85 last year and 77 average.
Livestock, Pasture and Range Report:
Pasture and range conditions rated 77 percent very poor, 21 poor, 2 fair, 0 good, and 0 excellent, well below 68 percent good to excellent last year and average.
Current Weather & Crops County Comments
Survey Date: 09/30/2012
DIXON
Harvest is in full swing with yields all over the board. Producers are pushing to get soybeans out with concern about field loss. Some producers are expecting to finish their harvest within the week.
DODGE
Corn yields on irrigated acres are a little better than expected; however, dryland yields are a little less then the average and toxins are a major concern in the dryland. Soybean harvest is going along fine. Some cases where soybeans are popping out of the pods prior to harvest.
KNOX
Harvest is in full swing. Soybean stems are tough while the beans are mature, slowing harvest. Corn is very dry. Cattle are being removed from pastures.
NEMAHA
Dry conditions allowed farmers to continue with harvest. Corn harvest is on the downward side and soybean harvest is getting a good start.
Iowa Corn and Soybean Harvest Pass Halfway Point
Dry weather throughout the week allowed Iowa’s farmers to surpass the halfway point in harvesting corn and soybean acres according to USDA’s National Agricultural Statistics Service, Iowa Field Office. Soybean harvest advanced 31 percentage points from last week, with northwest Iowa harvesting 38 percent of their crop in just one week. Farmers are getting fall tillage underway.
There were 6.9 days suitable for fieldwork statewide during the past week. Topsoil moisture levels declined to 57 percent very short, 36 percent short, 7 percent adequate, and 0 percent surplus. Subsoil moisture also declined slightly and is now rated 70 percent very short, 26 percent short, 4 percent adequate, and 0 percent surplus. With row crop harvest more than half complete, fifty-six percent of the State is seeing moderate to heavy grain movement from farm to elevator.
Fifty-six percent of the corn crop has been harvested for grain or seed, a 19 percentage point increase from last week. Corn harvested is 46 percentage points higher than last year at this time. Moisture content of all corn in the field is estimated at 19 percent while the moisture content of corn being harvested is estimated at 17 percent. Corn lodging is rated at 55 percent none, 28 percent light, 13 percent moderate, and 4 percent heavy. Ear droppage is rated at 65 percent none, 22 percent light, 11 percent moderate, and 2 percent heavy. Corn condition improved slightly and is now rated at 19 percent very poor, 28 percent poor, 33 percent fair, 18 percent good, and 2 percent excellent. Ninety-three percent of Iowa’s soybean fields are dropping leaves, a week ahead of normal.
Fifty-four percent of the state’s soybean crop has been harvested, also a week ahead of normal. Soybean lodging is rated at 80 percent none, 16 percent light, 4 percent moderate, and 0 percent heavy. Soybean shattering is rated at 65 percent none, 20 percent light, 12 percent moderate, and 3 percent heavy. Soybean condition improved and is now rated at 11 percent very poor, 20 percent poor, 37 percent fair, 29 percent good, and 3 percent excellent.
Only twenty-four of Iowa’s pasture and range land is rated in fair or better condition, a slight decrease from last week. Pasture and range condition is rated at 49 percent very poor, 27 percent poor, 20 percent fair, 4 percent good, and 0 percent excellent. Stress on livestock was minimal with no issues reported for this week. Some farmers are moving their cattle to recently harvested corn and soybean fields.
IOWA PRELIMINARY WEATHER SUMMARY
Provided by Harry Hillaker, State Climatologist, Iowa Department of Agriculture & Land Stewardship
The past week was unseasonably cool with below normal temperatures prevailing every day except Wednesday (19th). The season’s first freeze was recorded at a few scattered northwest Iowa locations on Tuesday (18th) morning with Sibley reporting 30 degrees. However, much colder weather arrived on the weekend with a freeze recorded over much of the state on Sunday (23rd) morning. Sheldon and Spencer reported low temperatures of 22 degrees while a light freeze was reported in valley bottom locations all the way south to the Missouri border. On the one warm day Glenwood reported a Wednesday afternoon high of 90 degrees. Temperatures for the week as a whole averaged 7.5 degrees below normal. Meanwhile, light rain fell statewide on Monday (17th) with light to moderate rain over the northeast one-third of the state on Friday (21st). Additionally there were a few isolated showers and thunderstorms over far eastern and southern Iowa on Wednesday as a strong cold front advanced across the state. Weekly rain totals varied from just a trace at the Red Oak Airport to 0.69 inches at Muscatine. The statewide average precipitation was only 0.17 inches while normal for the week is 0.77 inches. This was the 18th week of the past 20 with less than normal precipitation.
Corn Harvested - Selected States
[These 18 States harvested 94% of the 2011 corn acreage]
------------------------------------------------------------------------
: Week ending :
:-----------------------------------------:
State :September 30,:September 23,:September 30,: 2007-2011
: 2011 : 2012 : 2012 : Average
------------------------------------------------------------------------
: percent
Colorado .......: 4 19 26 13
Illinois .......: 29 54 71 33
Indiana ........: 9 26 35 22
Iowa ...........: 10 37 56 8
Kansas .........: 50 64 74 43
Kentucky .......: 53 71 80 58
Michigan .......: 3 10 17 9
Minnesota ......: 5 30 53 5
Missouri .......: 61 80 88 45
Nebraska .......: 10 36 53 10
North Carolina .: 86 76 85 82
North Dakota ...: 1 20 36 1
Ohio ...........: 2 8 14 11
Pennsylvania ...: 6 11 18 20
South Dakota ...: 6 36 55 6
Tennessee ......: 78 85 92 73
Texas ..........: 73 69 75 73
Wisconsin ......: 4 12 23 7
18 States ......: 18 39 54 20
Soybeans Harvested - Selected States
[These 18 States harvested 96% of the 2011 soybean acreage]
------------------------------------------------------------------------
: Week ending :
:-----------------------------------------:
State :September 30,:September 23,:September 30,: 2007-2011
: 2011 : 2012 : 2012 : Average
------------------------------------------------------------------------
: percent
Arkansas .......: 21 34 42 24
Illinois .......: 10 8 22 21
Indiana ........: 4 10 18 22
Iowa ...........: 16 23 54 21
Kansas .........: 12 5 12 11
Kentucky .......: 8 13 26 14
Louisiana ......: 76 60 73 65
Michigan .......: 1 6 24 11
Minnesota ......: 26 45 76 23
Mississippi ....: 45 62 77 52
Missouri .......: 8 4 9 8
Nebraska .......: 15 19 48 16
North Carolina .: 3 1 3 2
North Dakota ...: 32 56 80 22
Ohio ...........: - 8 14 17
South Dakota ...: 22 47 79 16
Tennessee ......: 11 9 17 20
Wisconsin ......: 1 14 42 8
18 States ......: 15 22 41 19
Agricultural Summary:
For the week ending September 30, 2012, fall harvest progressed across the state with limited rainfall, according to USDA’s National Agricultural Statistics Service, Nebraska Field Office. Corn harvest is over half complete, near one month ahead of average. Soybean harvest also neared the half way point with harvest difficult due to plants with dry pods and green stems. Winter wheat seeding approached the two-thirds point but fields were slow to emerge due to dry soil conditions. Sorghum and proso millet harvests continued and sugar beet harvest has started. With 98 percent of the state’s pastures in poor or very poor condition, cattle producers continued seeking forage supplies and culling of livestock.
Weather Summary:
Light precipitation was received in the southern Panhandle and Southwest District with amounts recorded less than one quarter of an inch. Other areas of the state received little to no rain. Temperatures averaged near normal in the Northeast, Central and East Central Districts, 2 to 3 degrees above normal in the southern third, and 4 degrees above normal in the Panhandle. Highs were in the mid 80’s and lows were in the mid 30’s.
Field Crops Report:
Corn mature reached 93 percent, well ahead of 68 last year and 67 average. Corn harvested for grain was 53 percent, compared to 10 last year and 29 days ahead of 10 average. Corn conditions rated 22 percent very poor, 20 poor, 26 fair, 27 good, and 5 excellent, well below 74 percent good to excellent last year and 78 average. Irrigated corn conditions rated 53 percent good to excellent and dryland corn rated 2.
Soybeans dropping leaves were 91 percent, compared to 69 last year and 79 average. Soybeans harvested were 48 percent, well ahead of 15 last year and 11 days ahead of 16 average. Soybean conditions rated 20 percent very poor, 28 poor, 33 fair, 17 good, and 2 excellent, well below last year’s 79 percent good to excellent and 78 average.
Winter wheat seeded was at 64 percent, behind both 77 percent last year and average. Winter wheat emerged was 16 percent, well behind 46 percent last year and 41 average.
Sorghum turning color was 84 percent, compared to 99 last year and 96 average. Sorghum mature was 51 percent, behind 63 last year but ahead of 49 average. Sorghum harvested was 11 percent complete, ahead of 6 last year and 4 average. Sorghum conditions rated 13 percent very poor, 42 poor, 33 fair, 11 good, and 1 excellent, well below 74 percent good to excellent last year and 76 average.
The fourth cutting of alfalfa was 87 percent complete, ahead of 85 last year and 77 average.
Livestock, Pasture and Range Report:
Pasture and range conditions rated 77 percent very poor, 21 poor, 2 fair, 0 good, and 0 excellent, well below 68 percent good to excellent last year and average.
Current Weather & Crops County Comments
Survey Date: 09/30/2012
DIXON
Harvest is in full swing with yields all over the board. Producers are pushing to get soybeans out with concern about field loss. Some producers are expecting to finish their harvest within the week.
DODGE
Corn yields on irrigated acres are a little better than expected; however, dryland yields are a little less then the average and toxins are a major concern in the dryland. Soybean harvest is going along fine. Some cases where soybeans are popping out of the pods prior to harvest.
KNOX
Harvest is in full swing. Soybean stems are tough while the beans are mature, slowing harvest. Corn is very dry. Cattle are being removed from pastures.
NEMAHA
Dry conditions allowed farmers to continue with harvest. Corn harvest is on the downward side and soybean harvest is getting a good start.
Iowa Corn and Soybean Harvest Pass Halfway Point
Dry weather throughout the week allowed Iowa’s farmers to surpass the halfway point in harvesting corn and soybean acres according to USDA’s National Agricultural Statistics Service, Iowa Field Office. Soybean harvest advanced 31 percentage points from last week, with northwest Iowa harvesting 38 percent of their crop in just one week. Farmers are getting fall tillage underway.
There were 6.9 days suitable for fieldwork statewide during the past week. Topsoil moisture levels declined to 57 percent very short, 36 percent short, 7 percent adequate, and 0 percent surplus. Subsoil moisture also declined slightly and is now rated 70 percent very short, 26 percent short, 4 percent adequate, and 0 percent surplus. With row crop harvest more than half complete, fifty-six percent of the State is seeing moderate to heavy grain movement from farm to elevator.
Fifty-six percent of the corn crop has been harvested for grain or seed, a 19 percentage point increase from last week. Corn harvested is 46 percentage points higher than last year at this time. Moisture content of all corn in the field is estimated at 19 percent while the moisture content of corn being harvested is estimated at 17 percent. Corn lodging is rated at 55 percent none, 28 percent light, 13 percent moderate, and 4 percent heavy. Ear droppage is rated at 65 percent none, 22 percent light, 11 percent moderate, and 2 percent heavy. Corn condition improved slightly and is now rated at 19 percent very poor, 28 percent poor, 33 percent fair, 18 percent good, and 2 percent excellent. Ninety-three percent of Iowa’s soybean fields are dropping leaves, a week ahead of normal.
Fifty-four percent of the state’s soybean crop has been harvested, also a week ahead of normal. Soybean lodging is rated at 80 percent none, 16 percent light, 4 percent moderate, and 0 percent heavy. Soybean shattering is rated at 65 percent none, 20 percent light, 12 percent moderate, and 3 percent heavy. Soybean condition improved and is now rated at 11 percent very poor, 20 percent poor, 37 percent fair, 29 percent good, and 3 percent excellent.
Only twenty-four of Iowa’s pasture and range land is rated in fair or better condition, a slight decrease from last week. Pasture and range condition is rated at 49 percent very poor, 27 percent poor, 20 percent fair, 4 percent good, and 0 percent excellent. Stress on livestock was minimal with no issues reported for this week. Some farmers are moving their cattle to recently harvested corn and soybean fields.
IOWA PRELIMINARY WEATHER SUMMARY
Provided by Harry Hillaker, State Climatologist, Iowa Department of Agriculture & Land Stewardship
The past week was unseasonably cool with below normal temperatures prevailing every day except Wednesday (19th). The season’s first freeze was recorded at a few scattered northwest Iowa locations on Tuesday (18th) morning with Sibley reporting 30 degrees. However, much colder weather arrived on the weekend with a freeze recorded over much of the state on Sunday (23rd) morning. Sheldon and Spencer reported low temperatures of 22 degrees while a light freeze was reported in valley bottom locations all the way south to the Missouri border. On the one warm day Glenwood reported a Wednesday afternoon high of 90 degrees. Temperatures for the week as a whole averaged 7.5 degrees below normal. Meanwhile, light rain fell statewide on Monday (17th) with light to moderate rain over the northeast one-third of the state on Friday (21st). Additionally there were a few isolated showers and thunderstorms over far eastern and southern Iowa on Wednesday as a strong cold front advanced across the state. Weekly rain totals varied from just a trace at the Red Oak Airport to 0.69 inches at Muscatine. The statewide average precipitation was only 0.17 inches while normal for the week is 0.77 inches. This was the 18th week of the past 20 with less than normal precipitation.
Corn Harvested - Selected States
[These 18 States harvested 94% of the 2011 corn acreage]
------------------------------------------------------------------------
: Week ending :
:-----------------------------------------:
State :September 30,:September 23,:September 30,: 2007-2011
: 2011 : 2012 : 2012 : Average
------------------------------------------------------------------------
: percent
Colorado .......: 4 19 26 13
Illinois .......: 29 54 71 33
Indiana ........: 9 26 35 22
Iowa ...........: 10 37 56 8
Kansas .........: 50 64 74 43
Kentucky .......: 53 71 80 58
Michigan .......: 3 10 17 9
Minnesota ......: 5 30 53 5
Missouri .......: 61 80 88 45
Nebraska .......: 10 36 53 10
North Carolina .: 86 76 85 82
North Dakota ...: 1 20 36 1
Ohio ...........: 2 8 14 11
Pennsylvania ...: 6 11 18 20
South Dakota ...: 6 36 55 6
Tennessee ......: 78 85 92 73
Texas ..........: 73 69 75 73
Wisconsin ......: 4 12 23 7
18 States ......: 18 39 54 20
Soybeans Harvested - Selected States
[These 18 States harvested 96% of the 2011 soybean acreage]
------------------------------------------------------------------------
: Week ending :
:-----------------------------------------:
State :September 30,:September 23,:September 30,: 2007-2011
: 2011 : 2012 : 2012 : Average
------------------------------------------------------------------------
: percent
Arkansas .......: 21 34 42 24
Illinois .......: 10 8 22 21
Indiana ........: 4 10 18 22
Iowa ...........: 16 23 54 21
Kansas .........: 12 5 12 11
Kentucky .......: 8 13 26 14
Louisiana ......: 76 60 73 65
Michigan .......: 1 6 24 11
Minnesota ......: 26 45 76 23
Mississippi ....: 45 62 77 52
Missouri .......: 8 4 9 8
Nebraska .......: 15 19 48 16
North Carolina .: 3 1 3 2
North Dakota ...: 32 56 80 22
Ohio ...........: - 8 14 17
South Dakota ...: 22 47 79 16
Tennessee ......: 11 9 17 20
Wisconsin ......: 1 14 42 8
18 States ......: 15 22 41 19
Monday October 1 Ag News
October is Prime Time for Thistle Control
Bruce Anderson, UNL Extension Forage Specialist
Timing is everything, particularly with thistle control. Now through early November is one of the best times to apply herbicide for thistle control.
In the fall most thistle seedlings are in a small, flat, rosette growth form that is very sensitive to certain herbicides.
Among the most effective herbicide treatments for fall is a newer product called Milestone, or a combination of Milestone and 2,4-D called Forefront. Two other very effective herbicides are Tordon 22K and Grazon. (Tordon and Grazon also can kill woody plants, including trees you might want to keep.) 2,4-D also works well while it’s warm, but you will get better thistle control by using a little less 2,4-D and adding a small amount of Banvel or dicamba to the mix.
Other herbicides also can control thistles in pastures, including Redeem, Cimarron, and Curtail. No matter which weed killer you use, though, be sure to read and follow label instructions, and be sure to spray on time.
Next year, avoid overgrazing your pastures so stands get thicker and can compete better with any new thistle seedlings.
Preventing the Spread of Noxious and Invasive Weeds in Imported Hay
Steve Young, Extension Weed Ecologist, West Central REC, North Platte
The drought conditions gripping the state and region are not expected to let up for some time. For the past four months precipitation amounts have been below normal, while temperatures have regularly hit the 100° mark for most of the summer. Add to this the wild fire outbreaks that occurred during the same period and many regions are lacking vegetation of any kind or amount.
With these conditions, large scale operators and small herd owners are either reducing their livestock numbers or buying supplemental feed. The availability of hay in Nebraska and across the Midwest has been diminished substantially. In normal years, livestock are being rotated to later maturing pastures and feed is being stored for the winter. This year, livestock are being fed hay that is either lower in quality or normally reserved for winter.
The lack of hay is creating a dilemma for livestock owners who are trying to maintain their herds: spend more for the remaining good quality hay or spend a little bit less for something that is poorer in quality and may include noxious or invasive weeds. The short-term benefit of using low quality hay is not worth the long-term problems. Noxious and invasive weeds can become a problem that is equally as bad as the current drought situation. These plants can quickly overrun native or desirable plants and once established take years to remove completely. In fact, many noxious and invasive weeds are impossible to eradicate once they have become established in a field, pasture, or rangeland.
Consider this example from a grower I recently spoke to. He asked me about controlling leafy spurge in pasture being harvested for hay. I was surprised that it was being harvested, but referred him to a few UNL NebGuides for controlling leafy spurge. I then asked him how bad it was in his field. “Oh,” he said, “it is not my field. It is my neighbor's.” He told me he was watching them load the semi-tractor trailer bound for somewhere in Colorado. Shutter the thought.
The saying, “Desperate times lead to desperate measures,” should not be applied in the current hay situation in Nebraska or elsewhere. Always check your source for weed content — they are required by law to let you know. And, if you have noxious or invasive plants in your field(s), get rid of them before harvesting, removing, and storing or selling your hay.
Other Potential Intruders
Bruce Anderson, UNL Extension Forage Specialist
Hay bought locally is apt to have pests similar to your field, but when it comes from a long distance, new pests can be introduced that are harder to control.
In addition to noxious or invasive weeds or weed seeds, poor quality hay may contain alfalfa weevils or fire ants. Fire ants won’t survive a typical harsh Nebraska winter, but if it’s mild like last year and the hay is well-sheltered, they could be an unwelcome problem for a season or two.
How do you avoid the problem?
- Do your research. Find out what pests are a problem in the area where the hay was harvested.
- Check references.
- Reserve the right to refuse the hay after it arrives and you’ve checked it thoroughly.
- Feed this hay in a limited area. That way, if a problem does develop, you can keep it isolated and, hopefully, controlled.
West Nile Continues to Impact Iowa Horses
The Iowa Department of Agriculture and Land Stewardship and Iowa Department of Public Health reminded Iowans that mosquitoes remain active until hard freeze occurs and can carry West Nile virus.
Surveillance has shown a larger number of horses have been infected with West Nile virus this year, with more than 20 confirmed cases. Last year Iowa only had one confirmed case in horses.
"Horse owners are encouraged to make sure the get their animals vaccinated and keep the vaccination up-to-date," said Bill Northey, Iowa Secretary of Agriculture. "The cases we are seeing are in horses that have not been vaccinated or are not current on their vaccinations, so we are encouraging owners to talk to their veterinarian and make sure their animals are protected."
Nineteen Iowans in sixteen counties have been diagnosed with West Nile virus in 2012. No West Nile virus-related deaths have been reported this year. Last year, there were nine human cases with two deaths.
Humans cannot 'catch' West Nile from an animal, but an increase in animal cases indicates higher activity among mosquitoes carrying the virus.
NDSU Schedules Tri-State Sheep Tour
A tour of research and private sheep operations in South Dakota, Nebraska and Iowa on Nov. 1-2 will expose sheep producers and the Extension agents who assist them to the commercial sheep industry.
"The American sheep industry lacks commercialized products such as buildings, feeding systems, equipment and handling facilities that most other livestock industries have access to," says North Dakota State University Extension Service sheep specialist Reid Redden, who organized the tour. "This tour will provide insight into management practices such as development of novel facilities, feeding strategies and breeding systems that individuals and research centers have developed to improve the efficiency of lamb and wool production."
Tour participants will visit state-of-the-art sheep facilities and meet sheep industry leaders. The tour stops and topics are:
-- Buskohl Lamb Feedlot, Wyndmere - David Buskohl will provide a tour of his large commercial lamb-finishing system and discuss methods of optimizing lamb health and productivity.
-- South Dakota State University Sheep Unit, Brookings - Jeff Held will provide a tour of the sheep barn and discuss research topics at SDSU.
-- Dakota Lamb, Hurley, S.D. - Bill Aeschilmann will provide a tour of his custom lamb feed yard and discuss his lamb marketing business.
-- U.S. Meat Animal Research Center, Clay Center, Neb. - Kreg Leymaster will provide an educational seminar on commercial sheep breeding systems and lead a tour of the research center.
-- Iron Horse Farms, Harlan, Iowa - Tom Schechinger will provide a tour of his 100 percent confinement sheep operation.
The registration fee is $25 to cover the transportation costs. The registration deadline is Oct. 24. For more information or to register, contact Redden at (701) 231-5597 or reid.redden@ndsu.edu. The NDSU Extension Service, North Dakota Lamb and Wool Producers Association and Equity Livestock Cooperative Association are sponsoring the tour.
Joint Statement on the Expiration of the 2008 Farm Bill
The National Corn Growers Association has joined with other agricultural organizations on the following joint statement on the expiration yesterday of the 2008 farm bill:
The 2008 law governing many of our nation’s farm policies expired on Sunday, September 30th, and the 2012 Farm Bill needed to replace it is bottled up in Congress. While the Senate and the House Agriculture Committees were both able to pass their versions of the new farm bill, the full House was unable to do so. While expiration of farm bill program authorities has little or no effect on some important programs, it has terminated a number of important programs and will very adversely affect many farmers and ranchers, as well as ongoing market development and conservation efforts. Following is a summary of these impacts.
Programs Affected by Expiration of the 2008 Farm Bill
Dairy producers will face considerable challenges. The Milk Income Loss Contract (MILC) program expired on Sunday. That program compensated dairy producers when domestic milk prices fall below a specified level. Without a new farm bill, dairy farmers are left with uncertainty and inadequate assistance. While milk prices are high enough that the price support program doesn’t kick in; unfortunately, there is no other safety net to help battle the highest feed costs on record.
Many farmers, ranchers and agribusiness or agricultural processors benefit from the Foreign Market Development Program (FMD). FMD is a cost-sharing trade promotion partnership between USDA and U.S. agricultural producers and processors. The program pools technical and financial resources to conduct overseas market development. FMD helps maintain and increase market share by addressing long-term foreign market import constraints and by identifying new markets or new uses for the agricultural commodity or product in the foreign market. That funding, as well as specific funding for personnel to run the program at USDA, will run out at the end of October. Since 31 percent of our gross farm income comes from exports which also make a positive contribution to our Nation’s trade balance, trade promotion is an important part of our safety net. Other countries will most certainly take advantage of the fact that the program is rendered inoperable and will do what they can to steal our markets – and everyone knows, the hardest market to get is the one you lost.
About 6.5 million acres rotates out of the Conservation Reserve Program (CRP) this year. While current contracts are protected, no new signup will be allowed for CRP or the Conservation Reserve Enhancement Program (CREP). Both of these programs are voluntary land retirement programs that helps agricultural producers protect environmentally sensitive land, decrease erosion, restore wildlife habitat, and safeguard ground and surface water. In addition, there cannot be sign up for the Wetlands Reserve Program or the Grasslands Reserve Program.
Both versions of the new Farm Bill contain funding for the disasters facing the livestock industry due to the drought. However, programs are currently only available for lack of forage, as well as death of animals.
Most producers of fruits and vegetables do not have a safety net, but instead receive funding to augment the competitiveness of specialty crops through programs that enhance trade, promote cutting-edge research, and implement on-the-ground projects to protect crops from disease and invasive species. Funding for these programs ended when the Farm Bill expired.
Numerous other programs, including energy, agricultural research, rural development and funding for new and beginning farmers could be added to this list of affected programs. The bottom line is that while expiration of the Farm Bill causes little or no pain to some, others face significant challenges.
Programs Not Affected by Expiration of the 2008 Farm Bill
Almost 80 percent of the Farm Bill’s cost is for nutrition programs – primarily the Supplemental Nutrition Assistance Program (SNAP), formerly commonly known as food stamps. Most recipients of nutrition program benefits will not be affected because the SNAP program did not need to be extended. Funds for nutrition assistance programs will continue to be provided to those Americans without issue.
Farmers and ranchers who manage their risks using the farm bill’s crop insurance provisions will be unaffected because, like SNAP, those programs don’t expire. Nor do some of the conservation-related programs. In addition, most commodity-specific programs are largely covered by the 2008 Farm Bill since it applies to the 2012 crop year, rather than the 2012 fiscal year. The main challenge, however, will be in planning for 2013. This includes lining up the critical financial assistance needed from lending institutions which prefer, if not demand, to see business plans presented in black and white. That will be difficult when producers don’t know when to expect a new Farm Bill – or what type of financial safety net is likely to be included in that bill.
Congress will return in mid-November for a lame-duck session prior to final adjournment in December. We will work to have the first order of business for the House of Representatives be to consider a new Farm Bill. We are urging our members to seek out their House members between now and the elections and remind them of the consequences of not having a new bill in place prior to adjournment at the end of the year.
American Farm Bureau Federation
American Pulse Association
American Soybean Association
National Association of Conservation Districts
National Association of Wheat Growers
National Barley Growers Association
National Corn Growers Association
National Council of Farmer Cooperatives
National Farmers Union
National Milk Producers Federation
National Sunflower Association
United Fresh Produce Association
USA Dry Pea & Lentil Council
U.S. Canola Association
Western Growers Association
Vilsack on Expiration of Authority for 2008 Farm Bill Programs
Agriculture Secretary Tom Vilsack today made the following statement on the expiration of authority for 2008 Farm Bill Programs:
"Many programs and policies of the U.S. Department of Agriculture were authorized under the Food, Conservation and Energy Act of 2008 ("2008 Farm Bill") through September 30, 2012. These include a great number of critical programs impacting millions of Americans, including programs for farm commodity and price support, conservation, research, nutrition, food safety, and agricultural trade. As of today, USDA's authority or funding to deliver many of these programs has expired, leaving USDA with far fewer tools to help strengthen American agriculture and grow a rural economy that supports 1 in 12 American jobs. Authority and funding for additional programs is set to expire in the coming months. Without action by the House of Representatives on a multi-year Food, Farm and Jobs bill, rural communities are today being asked to shoulder additional burdens and additional uncertainty in a tough time. As we continue to urge Congress to give USDA more tools to grow the rural economy, USDA will work hard to keep producers and farm families informed regarding those programs which are no longer available to them."
NASS-Statistics Canada Discontinue October Hog Statistics Publication
The U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) will not publish the United States and Canadian Hogs publication scheduled for October 29 at 1:00 PM. In the past, this publication has been released by NASS in cooperation with the Statistics Canada. In September, the Canadian agency discontinued its October Hog Statistics publication, resulting in discontinuation of the two nations’ joint hogs report as well. The next joint release of hog and pig estimates for the United States and Canada is scheduled for February 2013.
USDA Announces Commodity Credit Corporation Lending Rates for October 2012
The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for October 2012. The CCC borrowing rate-based charge for October 2012 is 0.125 percent, unchanged from 0.125 in September 2012. For 1996 and subsequent crop year commodity and marketing assistance loans, the interest rate for loans disbursed during October 2012 is 1.125 percent, unchanged from 1.125 in September 2012.
Interest rates for Farm Storage Facility Loans approved for October 2012 are as follows, 1.125 percent with seven-year loan terms, unchanged from 1.125 in September 2012; 1.750 percent with 10-year loan terms, up from 1.625 in September 2012 and; 2.000 percent with 12-year loan terms, up from 1.875 percent in September 2012.
Beef and the School Lunch Program
There has been a lot of discussion in the beef community about the new school lunch program requirements. The checkoff wants to take a second to share what we know in hopes that it might answer any questions you have.
Recently, the U.S. Department of Agriculture (USDA) updated its meal patterns and nutrition standards for the National School Lunch and School Breakfast Programs to align them with the Dietary Guidelines for Americans, which is required by law. The new meal patterns are also based on recommendations issued by leading public health experts from the Food and Nutrition Board, part of the Institute of Medicine.
Prior to the 2012-2013 school year, schools were given the flexibility to follow two different meal planning options-either a "Traditional Food-Based Approach" or an "Enhanced Food-Based Approach". Under the new requirements, all schools will follow a single food-based menu planning approach, which uses narrower age/grade groups for menu planning and offers meals that meet specific calorie ranges for each grade/group. There will be a three-year administrative review to see how these new requirements are working.
These changes provide more choices and flexibility for schools, including the availability of more fruits and vegetables. These new meal patterns will be implemented starting with the 2012-2013 school year. The intent of these updated requirements is to provide nutrient-rich meals (high in nutrients, low in calories) that better meet the dietary needs of school children and protect their health. This is good news for nutrient-rich foods, like beef. In fact, in the final rule, USDA recognizes that "offering a meat/meat alternate as part of the school lunch supplies protein, B vitamins, vitamin E, iron, zinc and magnesium to the diet of children and also teaches them to recognize the components of a healthy plate."
Important to note: Beef continues to be an important part of a healthy diet for kids and essential component of healthy school meals.
The amount of meat/meat alternate required as part of the new school lunch plans are almost identical to previous requirements. You can read more here... http://www.fns.usda.gov/cnd/Lunch/.
CBB CEO Ruhland named 2013 Eisenhower USA Fellow
On Sept. 27, General Colin L. Powell, USA (Ret), Chairman of Eisenhower Fellowships, announced that the organization will send eight U.S. citizens abroad in 2013 as Eisenhower USA Fellows. Among the eight selected Fellows is Polly Ruhland, Chief Executive Officer of the Cattlemen's Beef Board (CBB), based in Centennial, Colo. CBB was established as part of the 1985 Farm Bill to oversee the national Beef Checkoff Program (www.MyBeefCheckoff.com).
The fellowship provides Ruhland with the resources and programmatic support to create and execute an intensive four- to five-week program studying differentiation of U. S. beef in Japan and Taiwan. Working closely with beef checkoff contractor U.S. Meat Export Federation (USMEF), Ruhland will meet and work with key industry contacts to evaluate techniques and messages that would help U.S. producers better distinguish U.S. beef in both markets.
“This fellowship provides an opportunity to provide a different viewpoint into brand differentiation in two critical U.S. markets,” said CBB Chairman Wesley Grau, a cattleman from New Mexico. In addition, he notes, since Ruhland's work will be completely financed by Eisenhower Fellowships it also provides a chance to leverage further the expert work done by USMEF with beef checkoff dollars.
“This is a unique opportunity for a group of outstanding leaders to broaden themselves personally and professionally,” Powell noted.
Christine Todd Whitman, former Governor of New Jersey and Chairman of the Executive Committee of Eisenhower Fellowships, commended the Fellowship awardees, saying “We live in a globalized world. An Eisenhower Fellowship will allow these outstanding men and women to bring new insights from world experts back to their communities and to form a network of lasting relationships that will make them global leaders in their fields.”
Eisenhower Fellowships is a private, non-profit, non-partisan organization seeking to foster international understanding and leadership through the exchange of information, ideas, and perspectives among leaders throughout the world. Established in 1953 as a birthday tribute to President Dwight D. Eisenhower, the organization has sponsored more than 2,000 Fellows from 108 countries. For more information, please visit www.efworld.org.
NCGA's Johnson Enters 2013 Facing Challenges with Determination, Purpose
The National Corn Growers Association enters a new fiscal year today and seated the 2013 Corn Board with Pam Johnson of Floyd, Iowa, assuming the presidency. Off the Cob spoke with the new president to explore her views on what lies ahead for corn farmers in 2013, the challenges she expects the board to face, and some of the programs she is excited to see coming to fruition.
Beginning by thanking the delegates of Corn Congress and the Corn Board for selecting her to lead the organization, Johnson noted that she is excited to serve her fellow corn growers and to advocate for them in 2013.
"We certainly will have a lot on our plate in the coming year," she said. "We are coming through the worst drought in my lifetime, which in and of itself presents many challenges. I think that we need to remember that this drought is a near-term challenge, and we must keep our eye on the big picture and our long-term goals as we build for our future."
Looking at the assets that NCGA brings to the table to confront both long- and short-term challenges, she stresses her belief that the organization's greatest strength comes from the many people who come together to form the farmer-driven, grassroots group.
NCGA Action Teams, Committees Announced for New Fiscal Year
Along with welcoming a new Corn Board, NCGA also has updated its action team and committee roster for the 2013 Fiscal Year, which begins today. These new chairs and vice chairs will guide the members of their teams and committees as they actively shape the future of their industry by developing the policies and priorities which will guide NCGA.
"We've got a terrific group of grower volunteers that are so willing to dedicate a lot of time to help move our organization forward and serve our industry, our corn grower members and our checkoff contributors," said NCGA President Pam Johnson. "As usual, we had more volunteers than we did positions to fill, and I appreciate each grower who stepped up and offered to serve. This next year promises to be challenging and exciting, with so many important issues lying before our various teams and committees."
Leadership for NCGA's six major teams and committees are:
Production and Stewardship Action Team: Dean Taylor, chairman; Don Glenn, vice chairman; Keith Alverson, board liaison.
Public Policy Action Team: Jim Reed, chairman; Curt Friesen, vice chairman; Anthony Bush, board liaison.
Ethanol Committee: Chad Willis, chairman; Paul Taylor, vice chairman; Chip Bowling, board liaison.
Research and Business Development Action Team: DeVonna Zeug, chair; Gary Lamie, vice chairman; Bob Bowman, board liaison.
Grower Services Action Team: Brandon Hunnicutt, chairman; Tom Haag, vice chairman; Don Elsbernd, board liaison.
Trade Policy and Biotechnology Action Team: Jim Zimmerman, chairman; Roger Zylstra, vice chairman; Lynn Chrisp, board liaison.
The action teams and committees will have their first set of meetings in St. Louis in December.
NCBA Accepting Applications for Cattle Industry Convention Internships
The National Cattlemen’s Beef Association’s (NCBA) government affairs office in Washington, D.C., is accepting applications for internships during the 2013 Cattle Industry Convention in Tampa, Fla., Feb. 6-9, 2013. The deadline to submit an application for this opportunity is Nov. 4, 2012.
The Cattle Industry Convention is the oldest and largest convention for the cattle business. The 2013 event will be the 115th annual convention. The convention and trade show create a unique, fun environment for cattle industry members to come together to network and create policy for the industry.
“Our internship positions provide a unique opportunity for students to gain first-hand experience and to interact with leaders from every segment of the cattle and beef industry,” said NCBA Public Policy Analyst Mallory Gaines. “The convention internship program provides an excellent opportunity to network with people throughout the beef industry. NCBA strives to provide time for students to maximize their opportunities to network and learn.”
The annual Cattle Industry Convention boasts over 5,500 attendees and a trade show with more than 250 booths. Interns are offered a unique, behind-the-scenes experience of setting up the trade show, manning the NCBA-Political Action Committee (PAC) booth, assisting with the NCBA-PAC auction, helping members vote on NCBA policy, working with the media and helping to guide cattlemen and cattlewomen to convention events.
The internship dates are Feb. 4-9, 2013. To apply, interested college juniors, seniors or graduate students should submit the convention internship application, a college transcript, two letters of recommendation and a resume to internship@beef.org. More information and the internship application are available on NCBA’s website... www.beefusa.org.
Brazil's Soy Planting Under Way
After a dry start to September, showers returned to most Brazilian soybean-producing regions over the past 10 days, allowing farmers to kick off the 2012-13 season. Across Brazil as a whole, 2012-13 crop planting remains in its infancy. Parana, the No. 2 soy state, has only 3% in the ground, according to the state agricultural secretariat, while Mato Grosso has sown 1.7%, according to the state's agricultural economy institute (IMEA).
Field work is expected accelerate over the next two weeks as farmers rush to plant early and therefore buy more time for second-crop corn in the winter. But, despite the recent rains, soil moisture remains a concern. The winter dry spell was long and harsh over most of the farm belt and early planting areas still need more rain.
Russia Grain Exports Fall On Poorer Harvest
Russia's grain exports are smaller this year compared with a year ago due to a poor grain harvest resulting from drought.
According to figures released by the agriculture ministry on Monday, Russia exported 7.435 million metric tons of grain between the beginning of the current marketing year July 1 and Sept. 26, that is 19% less than in the same period in the previous marketing year.
The ministry said grain exports between Sept. 1 and Sept. 26 totaled 2.616 million tons, including two million tons of wheat, 446,000 tons of barley and 139,000 tons of corn.
The agriculture ministry said earlier that because of drought damage to crops, it expected this year's grain harvest to be 72-73 million tons and grain export in the 2012-2013 marketing year to be 10-14 million tons. In 2011, Russia harvested 94.2 million tons of grain and exported 27.2 million tons during the 2011-2012 marketing year.
Survey: Americans Refuse to Swap Quality for Low Prices
More Americans than ever are choosing natural and/or organic foods according to the fifth annual Whole Foods Market Food Shopping Trend Tracker Survey. The research revealed that nearly three out of four Americans (73 percent) don't want to compromise on the quality of the food they buy regardless of current food prices and nearly two-thirds (64 percent) describe themselves as "value seekers" when it comes to grocery shopping.
The survey, conducted online within the U.S. by Harris Interactive on behalf of Whole Foods Market from August 3-7, 2012 among 2,274 adults age 18 and older, found nearly three out of four Americans (71 percent) prefer to buy natural and/or organic foods over conventional foods if prices are comparable. One in four Americans (27 percent) are devoting more than a quarter of their grocery dollars to natural and/or organic products, up 35 percent from four years ago.
"We see that Americans from all demographics are seeking more natural and organic foods; especially if the price is right," said A.C. Gallo, president and COO of Whole Foods Market. "We don't believe shoppers should have to sacrifice quality for price, so we aim to offer high quality food that fits every budget through competitive pricing and expanding our 365 Everyday Value line."
Further, the research disclosed that many Americans are willing to pay more for foods that meet certain criteria:
-- Nearly half (47 percent) are willing to pay higher prices for locally produced foods Nearly a third (32 percent) are willing to pay more for foods with no artificial ingredients, preservatives or colorings
-- Nearly one out of three (30 percent) are willing to pay more for meats raised with no antibiotics or added growth hormones and one in four (24 percent) are willing to pay more for meats raised under humane animal husbandry standards
-- Aside from price, a majority of Americans say the overall quality (88 percent) and selection (85 percent) of products, regular sales and promotions (76 percent) and trust in the grocery retailers (76 percent) are very or fairly important when grocery shopping.
While the majority consider themselves "value seekers," here's a breakdown of how Americans describe their grocery shopping style, key findings show that*:
-- Value Seekers (64 percent) -- someone very aware of prices, bargains, coupons and specials
-- One-Stop (41 percent) -- shoppers who want all their needs met by one store, from staple pantry items and meats to family-friendly offerings and body care
-- Health-Minded (32 percent) -- someone who seeks out healthy foods and educational resources
-- Conscious Shoppers (17 percent) -- someone who seeks out organic, sustainable, Fair Trade, local foods and growers
-- On-the-Go (14 percent) -- someone who shops at the closest store and seeks out convenience and prepared foods
-- Adventurous Eater (13 percent) -- the foodie looking for specialty products
Bacon Shortage 'Baloney'; Prices Rise
(AP) -- Bacon lovers can relax. They'll find all they want on supermarket shelves in the coming months, though their pocketbooks may take a hit.
The economics of the current drought are likely to nose up prices for bacon and other pork products next year, by as much as 10 percent. But U.S. agricultural economists are dismissing reports of a global bacon shortage that lent sizzle to headlines and Twitter feeds last week. Simply put, the talk of scarcity is hogwash.
"Use of the word 'shortage' caused visions of (1970s-style) gasoline lines in a lot of people's heads, and that's not the case," said Steve Meyer, president of Iowa-based Paragon Economics and a consultant to the National Pork Producers Council and National Pork Board.
"If the definition of shortage is that you can't find it on the shelves, then no, the concern is not valid. If the concern is higher cost for it, then yes."
Fears about a scarcity of bacon swept across social and mainstream media last week after a trade group in Europe said a bacon shortage was "unavoidable," citing a sharp decline in the continent's pig herd and drought-inflated feed costs. The report caused much consternation over a product that used to be merely a breakfast staple, but nowadays flavors everything from brownies to vodka.
The alarm was quickly dismissed by the American Farm Bureau Federation as "baloney."
"Pork supplies will decrease slightly as we go into 2013," Farm Bureau economist John Anderson said. "But the idea that there'll be widespread shortages, that we'll run out of pork, that's really overblown."
The stubborn drought in the U.S., the world's biggest supplier of feed grains, undeniably will affect pig production. The Corn Belt's lack of moisture twice has prompted the U.S. Agriculture Department to slash its forecast for this year's corn output. The government now expects U.S. production of the grain to amount to 10.8 billion bushels, the least since 2006.
Those lowered expectations sent prices of corn — also used in ethanol, further squeezing supply — to record highs through much of the summer. Feed generally makes up about 60 percent of the expense of raising a pig. Rather than absorb the higher costs, swine and beef producers often have culled their animals by sending them to slaughter.
As of Sept. 1, the nation's inventory of hogs numbered 67.5 million head, up slightly from a year earlier, the USDA reported Friday. But the USDA suggested that pork supplies will tighten next year as the nation's breeding stock and intended farrowings — birthings of litters of pigs — likely will drop due to high feed costs.
"I think we're going to (still) see pretty substantial liquidations" of livestock, Meyer said, guessing that 3 percent of the nation's breeding pigs could be sent to slaughter by next March. "And by my estimation, that's a big move."
The USDA said the breeding inventory of sows and boars stands at 5.79 million head, down slightly from last year and off 1 percent from the previous quarter.
Such liquidations could mean a temporary glut of pork on the U.S. market, depressing pork prices before the oversupply eases and the volume of pork drops again next year, causing hog prices to rebound, said Ron Plain, an agricultural economics professor at the University of Missouri in Columbia. Consequently, he estimates, the higher costs will be passed along to consumers, who could end up paying 10 percent more for their bacon.
As of Friday, the USDA said, a pound of sliced bacon cost an average of $4.05 at the nation's supermarkets, down 22 cents from a week earlier.
Pig producer Phil Borgic is banking on high prices. With 3,400 sows near Nokomis in central Illinois, Borgic figures he's had to spend $2 million more this year for the 600,000 bushels of corn he feeds his pigs. Rather than sell off animals on the spot market, the 56-year-old farmer is hedging his bets by contracting them out for slaughter over a staggered period in coming months — what he sees only as a break-even proposition.
"The previous couple of years have been good to us," he said. "Then the drought changed the ballgame on a worldwide level."
He waves off the concerns about consumers facing shortages.
"The U.S. has plenty of pork, and we won't run out here," he said. "We'll have some price inflation, but we have plenty of supply."
Bruce Anderson, UNL Extension Forage Specialist
Timing is everything, particularly with thistle control. Now through early November is one of the best times to apply herbicide for thistle control.
In the fall most thistle seedlings are in a small, flat, rosette growth form that is very sensitive to certain herbicides.
Among the most effective herbicide treatments for fall is a newer product called Milestone, or a combination of Milestone and 2,4-D called Forefront. Two other very effective herbicides are Tordon 22K and Grazon. (Tordon and Grazon also can kill woody plants, including trees you might want to keep.) 2,4-D also works well while it’s warm, but you will get better thistle control by using a little less 2,4-D and adding a small amount of Banvel or dicamba to the mix.
Other herbicides also can control thistles in pastures, including Redeem, Cimarron, and Curtail. No matter which weed killer you use, though, be sure to read and follow label instructions, and be sure to spray on time.
Next year, avoid overgrazing your pastures so stands get thicker and can compete better with any new thistle seedlings.
Preventing the Spread of Noxious and Invasive Weeds in Imported Hay
Steve Young, Extension Weed Ecologist, West Central REC, North Platte
The drought conditions gripping the state and region are not expected to let up for some time. For the past four months precipitation amounts have been below normal, while temperatures have regularly hit the 100° mark for most of the summer. Add to this the wild fire outbreaks that occurred during the same period and many regions are lacking vegetation of any kind or amount.
With these conditions, large scale operators and small herd owners are either reducing their livestock numbers or buying supplemental feed. The availability of hay in Nebraska and across the Midwest has been diminished substantially. In normal years, livestock are being rotated to later maturing pastures and feed is being stored for the winter. This year, livestock are being fed hay that is either lower in quality or normally reserved for winter.
The lack of hay is creating a dilemma for livestock owners who are trying to maintain their herds: spend more for the remaining good quality hay or spend a little bit less for something that is poorer in quality and may include noxious or invasive weeds. The short-term benefit of using low quality hay is not worth the long-term problems. Noxious and invasive weeds can become a problem that is equally as bad as the current drought situation. These plants can quickly overrun native or desirable plants and once established take years to remove completely. In fact, many noxious and invasive weeds are impossible to eradicate once they have become established in a field, pasture, or rangeland.
Consider this example from a grower I recently spoke to. He asked me about controlling leafy spurge in pasture being harvested for hay. I was surprised that it was being harvested, but referred him to a few UNL NebGuides for controlling leafy spurge. I then asked him how bad it was in his field. “Oh,” he said, “it is not my field. It is my neighbor's.” He told me he was watching them load the semi-tractor trailer bound for somewhere in Colorado. Shutter the thought.
The saying, “Desperate times lead to desperate measures,” should not be applied in the current hay situation in Nebraska or elsewhere. Always check your source for weed content — they are required by law to let you know. And, if you have noxious or invasive plants in your field(s), get rid of them before harvesting, removing, and storing or selling your hay.
Other Potential Intruders
Bruce Anderson, UNL Extension Forage Specialist
Hay bought locally is apt to have pests similar to your field, but when it comes from a long distance, new pests can be introduced that are harder to control.
In addition to noxious or invasive weeds or weed seeds, poor quality hay may contain alfalfa weevils or fire ants. Fire ants won’t survive a typical harsh Nebraska winter, but if it’s mild like last year and the hay is well-sheltered, they could be an unwelcome problem for a season or two.
How do you avoid the problem?
- Do your research. Find out what pests are a problem in the area where the hay was harvested.
- Check references.
- Reserve the right to refuse the hay after it arrives and you’ve checked it thoroughly.
- Feed this hay in a limited area. That way, if a problem does develop, you can keep it isolated and, hopefully, controlled.
West Nile Continues to Impact Iowa Horses
The Iowa Department of Agriculture and Land Stewardship and Iowa Department of Public Health reminded Iowans that mosquitoes remain active until hard freeze occurs and can carry West Nile virus.
Surveillance has shown a larger number of horses have been infected with West Nile virus this year, with more than 20 confirmed cases. Last year Iowa only had one confirmed case in horses.
"Horse owners are encouraged to make sure the get their animals vaccinated and keep the vaccination up-to-date," said Bill Northey, Iowa Secretary of Agriculture. "The cases we are seeing are in horses that have not been vaccinated or are not current on their vaccinations, so we are encouraging owners to talk to their veterinarian and make sure their animals are protected."
Nineteen Iowans in sixteen counties have been diagnosed with West Nile virus in 2012. No West Nile virus-related deaths have been reported this year. Last year, there were nine human cases with two deaths.
Humans cannot 'catch' West Nile from an animal, but an increase in animal cases indicates higher activity among mosquitoes carrying the virus.
NDSU Schedules Tri-State Sheep Tour
A tour of research and private sheep operations in South Dakota, Nebraska and Iowa on Nov. 1-2 will expose sheep producers and the Extension agents who assist them to the commercial sheep industry.
"The American sheep industry lacks commercialized products such as buildings, feeding systems, equipment and handling facilities that most other livestock industries have access to," says North Dakota State University Extension Service sheep specialist Reid Redden, who organized the tour. "This tour will provide insight into management practices such as development of novel facilities, feeding strategies and breeding systems that individuals and research centers have developed to improve the efficiency of lamb and wool production."
Tour participants will visit state-of-the-art sheep facilities and meet sheep industry leaders. The tour stops and topics are:
-- Buskohl Lamb Feedlot, Wyndmere - David Buskohl will provide a tour of his large commercial lamb-finishing system and discuss methods of optimizing lamb health and productivity.
-- South Dakota State University Sheep Unit, Brookings - Jeff Held will provide a tour of the sheep barn and discuss research topics at SDSU.
-- Dakota Lamb, Hurley, S.D. - Bill Aeschilmann will provide a tour of his custom lamb feed yard and discuss his lamb marketing business.
-- U.S. Meat Animal Research Center, Clay Center, Neb. - Kreg Leymaster will provide an educational seminar on commercial sheep breeding systems and lead a tour of the research center.
-- Iron Horse Farms, Harlan, Iowa - Tom Schechinger will provide a tour of his 100 percent confinement sheep operation.
The registration fee is $25 to cover the transportation costs. The registration deadline is Oct. 24. For more information or to register, contact Redden at (701) 231-5597 or reid.redden@ndsu.edu. The NDSU Extension Service, North Dakota Lamb and Wool Producers Association and Equity Livestock Cooperative Association are sponsoring the tour.
Joint Statement on the Expiration of the 2008 Farm Bill
The National Corn Growers Association has joined with other agricultural organizations on the following joint statement on the expiration yesterday of the 2008 farm bill:
The 2008 law governing many of our nation’s farm policies expired on Sunday, September 30th, and the 2012 Farm Bill needed to replace it is bottled up in Congress. While the Senate and the House Agriculture Committees were both able to pass their versions of the new farm bill, the full House was unable to do so. While expiration of farm bill program authorities has little or no effect on some important programs, it has terminated a number of important programs and will very adversely affect many farmers and ranchers, as well as ongoing market development and conservation efforts. Following is a summary of these impacts.
Programs Affected by Expiration of the 2008 Farm Bill
Dairy producers will face considerable challenges. The Milk Income Loss Contract (MILC) program expired on Sunday. That program compensated dairy producers when domestic milk prices fall below a specified level. Without a new farm bill, dairy farmers are left with uncertainty and inadequate assistance. While milk prices are high enough that the price support program doesn’t kick in; unfortunately, there is no other safety net to help battle the highest feed costs on record.
Many farmers, ranchers and agribusiness or agricultural processors benefit from the Foreign Market Development Program (FMD). FMD is a cost-sharing trade promotion partnership between USDA and U.S. agricultural producers and processors. The program pools technical and financial resources to conduct overseas market development. FMD helps maintain and increase market share by addressing long-term foreign market import constraints and by identifying new markets or new uses for the agricultural commodity or product in the foreign market. That funding, as well as specific funding for personnel to run the program at USDA, will run out at the end of October. Since 31 percent of our gross farm income comes from exports which also make a positive contribution to our Nation’s trade balance, trade promotion is an important part of our safety net. Other countries will most certainly take advantage of the fact that the program is rendered inoperable and will do what they can to steal our markets – and everyone knows, the hardest market to get is the one you lost.
About 6.5 million acres rotates out of the Conservation Reserve Program (CRP) this year. While current contracts are protected, no new signup will be allowed for CRP or the Conservation Reserve Enhancement Program (CREP). Both of these programs are voluntary land retirement programs that helps agricultural producers protect environmentally sensitive land, decrease erosion, restore wildlife habitat, and safeguard ground and surface water. In addition, there cannot be sign up for the Wetlands Reserve Program or the Grasslands Reserve Program.
Both versions of the new Farm Bill contain funding for the disasters facing the livestock industry due to the drought. However, programs are currently only available for lack of forage, as well as death of animals.
Most producers of fruits and vegetables do not have a safety net, but instead receive funding to augment the competitiveness of specialty crops through programs that enhance trade, promote cutting-edge research, and implement on-the-ground projects to protect crops from disease and invasive species. Funding for these programs ended when the Farm Bill expired.
Numerous other programs, including energy, agricultural research, rural development and funding for new and beginning farmers could be added to this list of affected programs. The bottom line is that while expiration of the Farm Bill causes little or no pain to some, others face significant challenges.
Programs Not Affected by Expiration of the 2008 Farm Bill
Almost 80 percent of the Farm Bill’s cost is for nutrition programs – primarily the Supplemental Nutrition Assistance Program (SNAP), formerly commonly known as food stamps. Most recipients of nutrition program benefits will not be affected because the SNAP program did not need to be extended. Funds for nutrition assistance programs will continue to be provided to those Americans without issue.
Farmers and ranchers who manage their risks using the farm bill’s crop insurance provisions will be unaffected because, like SNAP, those programs don’t expire. Nor do some of the conservation-related programs. In addition, most commodity-specific programs are largely covered by the 2008 Farm Bill since it applies to the 2012 crop year, rather than the 2012 fiscal year. The main challenge, however, will be in planning for 2013. This includes lining up the critical financial assistance needed from lending institutions which prefer, if not demand, to see business plans presented in black and white. That will be difficult when producers don’t know when to expect a new Farm Bill – or what type of financial safety net is likely to be included in that bill.
Congress will return in mid-November for a lame-duck session prior to final adjournment in December. We will work to have the first order of business for the House of Representatives be to consider a new Farm Bill. We are urging our members to seek out their House members between now and the elections and remind them of the consequences of not having a new bill in place prior to adjournment at the end of the year.
American Farm Bureau Federation
American Pulse Association
American Soybean Association
National Association of Conservation Districts
National Association of Wheat Growers
National Barley Growers Association
National Corn Growers Association
National Council of Farmer Cooperatives
National Farmers Union
National Milk Producers Federation
National Sunflower Association
United Fresh Produce Association
USA Dry Pea & Lentil Council
U.S. Canola Association
Western Growers Association
Vilsack on Expiration of Authority for 2008 Farm Bill Programs
Agriculture Secretary Tom Vilsack today made the following statement on the expiration of authority for 2008 Farm Bill Programs:
"Many programs and policies of the U.S. Department of Agriculture were authorized under the Food, Conservation and Energy Act of 2008 ("2008 Farm Bill") through September 30, 2012. These include a great number of critical programs impacting millions of Americans, including programs for farm commodity and price support, conservation, research, nutrition, food safety, and agricultural trade. As of today, USDA's authority or funding to deliver many of these programs has expired, leaving USDA with far fewer tools to help strengthen American agriculture and grow a rural economy that supports 1 in 12 American jobs. Authority and funding for additional programs is set to expire in the coming months. Without action by the House of Representatives on a multi-year Food, Farm and Jobs bill, rural communities are today being asked to shoulder additional burdens and additional uncertainty in a tough time. As we continue to urge Congress to give USDA more tools to grow the rural economy, USDA will work hard to keep producers and farm families informed regarding those programs which are no longer available to them."
NASS-Statistics Canada Discontinue October Hog Statistics Publication
The U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) will not publish the United States and Canadian Hogs publication scheduled for October 29 at 1:00 PM. In the past, this publication has been released by NASS in cooperation with the Statistics Canada. In September, the Canadian agency discontinued its October Hog Statistics publication, resulting in discontinuation of the two nations’ joint hogs report as well. The next joint release of hog and pig estimates for the United States and Canada is scheduled for February 2013.
USDA Announces Commodity Credit Corporation Lending Rates for October 2012
The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for October 2012. The CCC borrowing rate-based charge for October 2012 is 0.125 percent, unchanged from 0.125 in September 2012. For 1996 and subsequent crop year commodity and marketing assistance loans, the interest rate for loans disbursed during October 2012 is 1.125 percent, unchanged from 1.125 in September 2012.
Interest rates for Farm Storage Facility Loans approved for October 2012 are as follows, 1.125 percent with seven-year loan terms, unchanged from 1.125 in September 2012; 1.750 percent with 10-year loan terms, up from 1.625 in September 2012 and; 2.000 percent with 12-year loan terms, up from 1.875 percent in September 2012.
Beef and the School Lunch Program
There has been a lot of discussion in the beef community about the new school lunch program requirements. The checkoff wants to take a second to share what we know in hopes that it might answer any questions you have.
Recently, the U.S. Department of Agriculture (USDA) updated its meal patterns and nutrition standards for the National School Lunch and School Breakfast Programs to align them with the Dietary Guidelines for Americans, which is required by law. The new meal patterns are also based on recommendations issued by leading public health experts from the Food and Nutrition Board, part of the Institute of Medicine.
Prior to the 2012-2013 school year, schools were given the flexibility to follow two different meal planning options-either a "Traditional Food-Based Approach" or an "Enhanced Food-Based Approach". Under the new requirements, all schools will follow a single food-based menu planning approach, which uses narrower age/grade groups for menu planning and offers meals that meet specific calorie ranges for each grade/group. There will be a three-year administrative review to see how these new requirements are working.
These changes provide more choices and flexibility for schools, including the availability of more fruits and vegetables. These new meal patterns will be implemented starting with the 2012-2013 school year. The intent of these updated requirements is to provide nutrient-rich meals (high in nutrients, low in calories) that better meet the dietary needs of school children and protect their health. This is good news for nutrient-rich foods, like beef. In fact, in the final rule, USDA recognizes that "offering a meat/meat alternate as part of the school lunch supplies protein, B vitamins, vitamin E, iron, zinc and magnesium to the diet of children and also teaches them to recognize the components of a healthy plate."
Important to note: Beef continues to be an important part of a healthy diet for kids and essential component of healthy school meals.
The amount of meat/meat alternate required as part of the new school lunch plans are almost identical to previous requirements. You can read more here... http://www.fns.usda.gov/cnd/Lunch/.
CBB CEO Ruhland named 2013 Eisenhower USA Fellow
On Sept. 27, General Colin L. Powell, USA (Ret), Chairman of Eisenhower Fellowships, announced that the organization will send eight U.S. citizens abroad in 2013 as Eisenhower USA Fellows. Among the eight selected Fellows is Polly Ruhland, Chief Executive Officer of the Cattlemen's Beef Board (CBB), based in Centennial, Colo. CBB was established as part of the 1985 Farm Bill to oversee the national Beef Checkoff Program (www.MyBeefCheckoff.com).
The fellowship provides Ruhland with the resources and programmatic support to create and execute an intensive four- to five-week program studying differentiation of U. S. beef in Japan and Taiwan. Working closely with beef checkoff contractor U.S. Meat Export Federation (USMEF), Ruhland will meet and work with key industry contacts to evaluate techniques and messages that would help U.S. producers better distinguish U.S. beef in both markets.
“This fellowship provides an opportunity to provide a different viewpoint into brand differentiation in two critical U.S. markets,” said CBB Chairman Wesley Grau, a cattleman from New Mexico. In addition, he notes, since Ruhland's work will be completely financed by Eisenhower Fellowships it also provides a chance to leverage further the expert work done by USMEF with beef checkoff dollars.
“This is a unique opportunity for a group of outstanding leaders to broaden themselves personally and professionally,” Powell noted.
Christine Todd Whitman, former Governor of New Jersey and Chairman of the Executive Committee of Eisenhower Fellowships, commended the Fellowship awardees, saying “We live in a globalized world. An Eisenhower Fellowship will allow these outstanding men and women to bring new insights from world experts back to their communities and to form a network of lasting relationships that will make them global leaders in their fields.”
Eisenhower Fellowships is a private, non-profit, non-partisan organization seeking to foster international understanding and leadership through the exchange of information, ideas, and perspectives among leaders throughout the world. Established in 1953 as a birthday tribute to President Dwight D. Eisenhower, the organization has sponsored more than 2,000 Fellows from 108 countries. For more information, please visit www.efworld.org.
NCGA's Johnson Enters 2013 Facing Challenges with Determination, Purpose
The National Corn Growers Association enters a new fiscal year today and seated the 2013 Corn Board with Pam Johnson of Floyd, Iowa, assuming the presidency. Off the Cob spoke with the new president to explore her views on what lies ahead for corn farmers in 2013, the challenges she expects the board to face, and some of the programs she is excited to see coming to fruition.
Beginning by thanking the delegates of Corn Congress and the Corn Board for selecting her to lead the organization, Johnson noted that she is excited to serve her fellow corn growers and to advocate for them in 2013.
"We certainly will have a lot on our plate in the coming year," she said. "We are coming through the worst drought in my lifetime, which in and of itself presents many challenges. I think that we need to remember that this drought is a near-term challenge, and we must keep our eye on the big picture and our long-term goals as we build for our future."
Looking at the assets that NCGA brings to the table to confront both long- and short-term challenges, she stresses her belief that the organization's greatest strength comes from the many people who come together to form the farmer-driven, grassroots group.
NCGA Action Teams, Committees Announced for New Fiscal Year
Along with welcoming a new Corn Board, NCGA also has updated its action team and committee roster for the 2013 Fiscal Year, which begins today. These new chairs and vice chairs will guide the members of their teams and committees as they actively shape the future of their industry by developing the policies and priorities which will guide NCGA.
"We've got a terrific group of grower volunteers that are so willing to dedicate a lot of time to help move our organization forward and serve our industry, our corn grower members and our checkoff contributors," said NCGA President Pam Johnson. "As usual, we had more volunteers than we did positions to fill, and I appreciate each grower who stepped up and offered to serve. This next year promises to be challenging and exciting, with so many important issues lying before our various teams and committees."
Leadership for NCGA's six major teams and committees are:
Production and Stewardship Action Team: Dean Taylor, chairman; Don Glenn, vice chairman; Keith Alverson, board liaison.
Public Policy Action Team: Jim Reed, chairman; Curt Friesen, vice chairman; Anthony Bush, board liaison.
Ethanol Committee: Chad Willis, chairman; Paul Taylor, vice chairman; Chip Bowling, board liaison.
Research and Business Development Action Team: DeVonna Zeug, chair; Gary Lamie, vice chairman; Bob Bowman, board liaison.
Grower Services Action Team: Brandon Hunnicutt, chairman; Tom Haag, vice chairman; Don Elsbernd, board liaison.
Trade Policy and Biotechnology Action Team: Jim Zimmerman, chairman; Roger Zylstra, vice chairman; Lynn Chrisp, board liaison.
The action teams and committees will have their first set of meetings in St. Louis in December.
NCBA Accepting Applications for Cattle Industry Convention Internships
The National Cattlemen’s Beef Association’s (NCBA) government affairs office in Washington, D.C., is accepting applications for internships during the 2013 Cattle Industry Convention in Tampa, Fla., Feb. 6-9, 2013. The deadline to submit an application for this opportunity is Nov. 4, 2012.
The Cattle Industry Convention is the oldest and largest convention for the cattle business. The 2013 event will be the 115th annual convention. The convention and trade show create a unique, fun environment for cattle industry members to come together to network and create policy for the industry.
“Our internship positions provide a unique opportunity for students to gain first-hand experience and to interact with leaders from every segment of the cattle and beef industry,” said NCBA Public Policy Analyst Mallory Gaines. “The convention internship program provides an excellent opportunity to network with people throughout the beef industry. NCBA strives to provide time for students to maximize their opportunities to network and learn.”
The annual Cattle Industry Convention boasts over 5,500 attendees and a trade show with more than 250 booths. Interns are offered a unique, behind-the-scenes experience of setting up the trade show, manning the NCBA-Political Action Committee (PAC) booth, assisting with the NCBA-PAC auction, helping members vote on NCBA policy, working with the media and helping to guide cattlemen and cattlewomen to convention events.
The internship dates are Feb. 4-9, 2013. To apply, interested college juniors, seniors or graduate students should submit the convention internship application, a college transcript, two letters of recommendation and a resume to internship@beef.org. More information and the internship application are available on NCBA’s website... www.beefusa.org.
Brazil's Soy Planting Under Way
After a dry start to September, showers returned to most Brazilian soybean-producing regions over the past 10 days, allowing farmers to kick off the 2012-13 season. Across Brazil as a whole, 2012-13 crop planting remains in its infancy. Parana, the No. 2 soy state, has only 3% in the ground, according to the state agricultural secretariat, while Mato Grosso has sown 1.7%, according to the state's agricultural economy institute (IMEA).
Field work is expected accelerate over the next two weeks as farmers rush to plant early and therefore buy more time for second-crop corn in the winter. But, despite the recent rains, soil moisture remains a concern. The winter dry spell was long and harsh over most of the farm belt and early planting areas still need more rain.
Russia Grain Exports Fall On Poorer Harvest
Russia's grain exports are smaller this year compared with a year ago due to a poor grain harvest resulting from drought.
According to figures released by the agriculture ministry on Monday, Russia exported 7.435 million metric tons of grain between the beginning of the current marketing year July 1 and Sept. 26, that is 19% less than in the same period in the previous marketing year.
The ministry said grain exports between Sept. 1 and Sept. 26 totaled 2.616 million tons, including two million tons of wheat, 446,000 tons of barley and 139,000 tons of corn.
The agriculture ministry said earlier that because of drought damage to crops, it expected this year's grain harvest to be 72-73 million tons and grain export in the 2012-2013 marketing year to be 10-14 million tons. In 2011, Russia harvested 94.2 million tons of grain and exported 27.2 million tons during the 2011-2012 marketing year.
Survey: Americans Refuse to Swap Quality for Low Prices
More Americans than ever are choosing natural and/or organic foods according to the fifth annual Whole Foods Market Food Shopping Trend Tracker Survey. The research revealed that nearly three out of four Americans (73 percent) don't want to compromise on the quality of the food they buy regardless of current food prices and nearly two-thirds (64 percent) describe themselves as "value seekers" when it comes to grocery shopping.
The survey, conducted online within the U.S. by Harris Interactive on behalf of Whole Foods Market from August 3-7, 2012 among 2,274 adults age 18 and older, found nearly three out of four Americans (71 percent) prefer to buy natural and/or organic foods over conventional foods if prices are comparable. One in four Americans (27 percent) are devoting more than a quarter of their grocery dollars to natural and/or organic products, up 35 percent from four years ago.
"We see that Americans from all demographics are seeking more natural and organic foods; especially if the price is right," said A.C. Gallo, president and COO of Whole Foods Market. "We don't believe shoppers should have to sacrifice quality for price, so we aim to offer high quality food that fits every budget through competitive pricing and expanding our 365 Everyday Value line."
Further, the research disclosed that many Americans are willing to pay more for foods that meet certain criteria:
-- Nearly half (47 percent) are willing to pay higher prices for locally produced foods Nearly a third (32 percent) are willing to pay more for foods with no artificial ingredients, preservatives or colorings
-- Nearly one out of three (30 percent) are willing to pay more for meats raised with no antibiotics or added growth hormones and one in four (24 percent) are willing to pay more for meats raised under humane animal husbandry standards
-- Aside from price, a majority of Americans say the overall quality (88 percent) and selection (85 percent) of products, regular sales and promotions (76 percent) and trust in the grocery retailers (76 percent) are very or fairly important when grocery shopping.
While the majority consider themselves "value seekers," here's a breakdown of how Americans describe their grocery shopping style, key findings show that*:
-- Value Seekers (64 percent) -- someone very aware of prices, bargains, coupons and specials
-- One-Stop (41 percent) -- shoppers who want all their needs met by one store, from staple pantry items and meats to family-friendly offerings and body care
-- Health-Minded (32 percent) -- someone who seeks out healthy foods and educational resources
-- Conscious Shoppers (17 percent) -- someone who seeks out organic, sustainable, Fair Trade, local foods and growers
-- On-the-Go (14 percent) -- someone who shops at the closest store and seeks out convenience and prepared foods
-- Adventurous Eater (13 percent) -- the foodie looking for specialty products
Bacon Shortage 'Baloney'; Prices Rise
(AP) -- Bacon lovers can relax. They'll find all they want on supermarket shelves in the coming months, though their pocketbooks may take a hit.
The economics of the current drought are likely to nose up prices for bacon and other pork products next year, by as much as 10 percent. But U.S. agricultural economists are dismissing reports of a global bacon shortage that lent sizzle to headlines and Twitter feeds last week. Simply put, the talk of scarcity is hogwash.
"Use of the word 'shortage' caused visions of (1970s-style) gasoline lines in a lot of people's heads, and that's not the case," said Steve Meyer, president of Iowa-based Paragon Economics and a consultant to the National Pork Producers Council and National Pork Board.
"If the definition of shortage is that you can't find it on the shelves, then no, the concern is not valid. If the concern is higher cost for it, then yes."
Fears about a scarcity of bacon swept across social and mainstream media last week after a trade group in Europe said a bacon shortage was "unavoidable," citing a sharp decline in the continent's pig herd and drought-inflated feed costs. The report caused much consternation over a product that used to be merely a breakfast staple, but nowadays flavors everything from brownies to vodka.
The alarm was quickly dismissed by the American Farm Bureau Federation as "baloney."
"Pork supplies will decrease slightly as we go into 2013," Farm Bureau economist John Anderson said. "But the idea that there'll be widespread shortages, that we'll run out of pork, that's really overblown."
The stubborn drought in the U.S., the world's biggest supplier of feed grains, undeniably will affect pig production. The Corn Belt's lack of moisture twice has prompted the U.S. Agriculture Department to slash its forecast for this year's corn output. The government now expects U.S. production of the grain to amount to 10.8 billion bushels, the least since 2006.
Those lowered expectations sent prices of corn — also used in ethanol, further squeezing supply — to record highs through much of the summer. Feed generally makes up about 60 percent of the expense of raising a pig. Rather than absorb the higher costs, swine and beef producers often have culled their animals by sending them to slaughter.
As of Sept. 1, the nation's inventory of hogs numbered 67.5 million head, up slightly from a year earlier, the USDA reported Friday. But the USDA suggested that pork supplies will tighten next year as the nation's breeding stock and intended farrowings — birthings of litters of pigs — likely will drop due to high feed costs.
"I think we're going to (still) see pretty substantial liquidations" of livestock, Meyer said, guessing that 3 percent of the nation's breeding pigs could be sent to slaughter by next March. "And by my estimation, that's a big move."
The USDA said the breeding inventory of sows and boars stands at 5.79 million head, down slightly from last year and off 1 percent from the previous quarter.
Such liquidations could mean a temporary glut of pork on the U.S. market, depressing pork prices before the oversupply eases and the volume of pork drops again next year, causing hog prices to rebound, said Ron Plain, an agricultural economics professor at the University of Missouri in Columbia. Consequently, he estimates, the higher costs will be passed along to consumers, who could end up paying 10 percent more for their bacon.
As of Friday, the USDA said, a pound of sliced bacon cost an average of $4.05 at the nation's supermarkets, down 22 cents from a week earlier.
Pig producer Phil Borgic is banking on high prices. With 3,400 sows near Nokomis in central Illinois, Borgic figures he's had to spend $2 million more this year for the 600,000 bushels of corn he feeds his pigs. Rather than sell off animals on the spot market, the 56-year-old farmer is hedging his bets by contracting them out for slaughter over a staggered period in coming months — what he sees only as a break-even proposition.
"The previous couple of years have been good to us," he said. "Then the drought changed the ballgame on a worldwide level."
He waves off the concerns about consumers facing shortages.
"The U.S. has plenty of pork, and we won't run out here," he said. "We'll have some price inflation, but we have plenty of supply."
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