Thursday December 6 Ag News

Are You Wasting Hay?
Steve Tonn, UNL Extension Educator, Washington County

Hay feeding time has started for cattle producers and feeding big round bales has made the job easier.  Large bale feeding systems are designed to minimize labor but not waste.   So how much of that hay are you throwing away?   Depending on the feeding method, feeding losses can reach as high as 30-35 percent.  You wouldn’t dream of throwing away one third of the hay you are feeding to your cows. 

Large bales fed free-choice without a rack or feeder in muddy conditions can result in forage losses as high as 45%.  But that’s what happens when cattle are allowed unlimited access to hay.  Livestock trample, over-consume, foul on, and use for bedding 25% to 45% of the hay when it is fed with no restrictions or is not processed.

Hay loss and waste can be reduced by managing how often we feed and by the type of hay feeder we use.  Daily feeding will force cattle to eat hay they might otherwise refuse, over-consume, trample and waste.  Cattle waste less hay when the amount fed is limited to what is needed each day.   One fourth more hay is needed when a four-day supply is fed with free access.  If hay is fed free choice, cows will over consume. 
While we want to restrict the number of bales offered at one time, we should make sure that there is enough space for all animals to access the forage.  Otherwise, the more aggressive cows will eat first and consume the more desirable hay, and animals that are more timid will be forced to eat the lower quality hay or go hungry.

Feeding hay in a rack or a round bale feeder limits the opportunity animals have to trample or soil hay, and reduces waste substantially.  Least feeding losses occur where hay is fed with a rack or bale feeder that forces the animal to turn its head when backing away from the feeder.   When animals can back straight out of a feeder, they can pull out large chunks of hay that drop on the ground and are lost as feed.  Research at the University of Nebraska and Michigan State University has shown feed waste of 3.3%, 5.9%, 9%, 11.1%, and 14.2% for cone, ring feeder with skirt, racks, trailer and cradle feeders.  Long feeders are less effective than round or square feeders because boss animals will push others back by walking down the long feeder, interrupting their feeding and reducing their intake.

 While some losses will always occur, keeping losses to a minimum can reduce feed costs, resulting in more efficient use of forages and increasing the profitability of the cow herd enterprise. 



Johanns Supports Beneficial Trade Legislation with Russia

U.S. Sen. Mike Johanns (R-Neb.) today issued the following statement after the Senate approved legislation granting Russia permanent normal trade relations (PNTR) status, which allows the U.S. to level the playing field for our exporters and also provides an avenue to resolve trade disputes:

“Trade, particularly with large and growing markets like Russia, is good for Nebraska’s farmers, ranchers and manufacturers,” Johanns said. “American workers have been losing out to other countries when it comes to exports to Russia. This legislation will allow us to level the playing field and gives us another tool to address trade complaints.

“Concerns remain about Russia’s record in the areas of human rights and trade, so we must keep a watchful eye and seize our new, normalized trade relationship as an opportunity to encourage progress on these fronts.”

BACKGROUND:
·         Russia officially joined the World Trade Organization (WTO) in August, but the United States cannot fully benefit from Russia’s membership without granting them PNTR status, which is not possible without repealing the Cold-War era Jackson-Vanik amendment of the Trade Act of 1974.
·         Jackson-Vanik requires the president to deny normal trade relations for countries restricting the freedom of emigration.  The president can determine that a country is in compliance with Jackson-Vanik and waive trade restrictions on an annual basis.  Presidents have issued waivers for Russia every year since 1992.  In spite of presidential waivers, the United States cannot use the WTO’s dispute settlement process with Russia unless Congress permanently removes application of Jackson-Vanik, thus granting Russia PNTR.  
·         The WTO has been an important tool for the United States to ensure a level playing field for our products on the world market.
·         In July, the Senate Finance and House Ways and Means committees passed legislation granting PNTR status to Russia. The full House of Representatives passed the legislation in November by a vote of 365-43.



ASA Applauds Senate Passage of Russia PNTR Bill

The American Soybean Association (ASA) celebrates today’s Senate passage of legislation that will normalize trade between the U.S. and Russia and allow the U.S. to take advantage of the trade benefits resulting from Russia’s admission to the World Trade Organization (WTO) in August. With a vote of 92-4, the Senate passed the Russia and Moldova Jackson-Vanik Repeal Act of 2012. ASA asks President Barack Obama to swiftly sign the bill into law to graduate Russia from the Jackson-Vanik Amendment to the Trade Act of 1974 and establish permanent normal trade relations (PNTR) with the world’s ninth-largest economy. ASA President Steve Wellman, a soybean farmer from Syracuse, Neb., applauded the Senate’s bipartisan vote and called on President Obama to sign the bill into law.

“ASA congratulates the Senate for passing the Russia and Moldova Jackson-Vanik Repeal Act today and urges the president to sign it into law so U.S. farmers can compete in one of the world’s largest and most promising economies,” Wellman said.

As part of its accession to the WTO, Russia will be obligated to bind its agricultural tariffs, adding more predictability to the trading relationship and opening export opportunities for the U.S. agricultural industry. WTO membership will also require Russia to adhere to internationally-recognized scientific standards when regulating meat imports, thereby ensuring greater predictability for U.S. exporters seeking to supply the Russian consumer market.

Reax from NCGA
"We are pleased to see both chambers of Congress act quickly to pass legislation that will lift these outdated restrictions," National Corn Growers Association President Pam Johnson said.  "Russia has tremendous potential to be an important market for our farmers and livestock producers. We urge President Obama to sign the bill soon so other World Trade Organization members can't take advantage of a more level trade playing field before American agriculture."

Russia joined the WTO in August.  However, the United States Congress needed to take steps to lift the Jackson-Vanik amendment and grant permanent normal trade relations in order for America's farmers to benefit from Russia's guaranteed tariff treatment and obligation to apply science-based sanitary and phytosanitary standards. 



Senate Approves PNTR for Russia; Bill Headed to Obama
(from NAWG newsletter)

The Senate voted 92 to 4 on Thursday to establish permanent normal trading relations (PNTR) with Russia. A similar bill was approved by the House of Representatives in November, and President Barack Obama is expected to sign the measure shortly.

Approving PNTR status for Russia will allow U.S. exporters to take full advantage of Russia’s new membership in the World Trade Organization (WTO), which became official in August after a 19-year negotiation process.

The WTO mandates all countries offer permanent trading relations to other members. Previously, the United States had granted Russia normal trading relations status on an annual basis since the early 1990s.

Russia’s WTO accession is expected to provide the U.S. and other WTO members improved trade access and stronger enforcement mechanisms for the country’s commitments to domestic supports, export subsidies and state trading enterprise disciplines.

While some U.S. agricultural sectors will gain new exports from the trade status changes, Russia does not import U.S. wheat, so the country’s membership will benefit U.S. wheat producers primarily by providing new checks on Russian export and domestic support policies. Both NAWG and U.S. Wheat Associates, the industry’s export market development organization, support PNTR for Russia.

The Senate Finance Committee, which has jurisdiction over trade issues, has said that U.S. exports to Russia total $9 billion a year and are expected to double within five years due to the changed trading status. Russia is the world’s seventh-largest economy.



Tax Relief, Reform, Headline Issues Discussed by NeFB Delegates

Nebraska Farm Bureau’s voting delegates reiterated their support for efforts to reform Nebraska’s tax system as a means to provide tax relief and help enhance Nebraska’s economic competitiveness. Property tax relief was chief among concerns discussed by delegates to the Nebraska Farm Bureau Convention held Dec. 3-4, in Kearney. 

“When it comes to funding for schools, roads and other local infrastructure funded through property taxes, Nebraska farmers and ranchers continue to carry a disproportionate share of the property tax load in rural areas and that continues to be a major concern for our members,” said Jay Rempe, Nebraska Farm Bureau vice president of governmental relations. 

Delegates noted that reducing property taxes in general and reducing the percentage of property taxes paid by agriculture should be a priority in any future tax relief or reform efforts. The body also noted interest in looking at other ways to provide tax relief to farmers and ranchers such as removing the sales tax on farm equipment repair parts.

“There are numerous ways to deliver tax relief, but controlling spending is a part of providing property tax relief. The House of Delegates renewed their support for levy caps and budget limits in addition to calling on local governments to seek efficiencies,” said Rempe.

Management of Nebraska’s water resources was also a top issue for delegates as they lent support for the study and implementation of conjunctive management projects by natural resources districts, irrigation and power districts, and the Department of Natural Resources.  Conjunctive management is a process that utilizes the connection between ground and surface water to maximize water use, while minimizing impacts to streamflows and groundwater levels in an effort to increase the overall water supply and stability of the supply. 

“Agriculture doesn’t exist without water and Nebraska’s competitive advantage is heavily dependent upon our ability to manage water in a way that allows for irrigation and other agriculture uses, while also protecting municipal, environmental and other water users,” said Rempe.

Delegates also passed resolutions opposing EPA’s practice of aerial flyovers of livestock farms for regulatory and surveillance purposes. The practice has been a point of contention for livestock farmers who are concerned about privacy and confidentiality of their farming operations.  Delegates showed support for new federal trucking regulations that alleviate some of the burdens on farmers and ranchers in the transportation of agriculture commodities and equipment and called on the state of Nebraska to take action to comply with the new federal requirements. The prospect of establishing a state beef checkoff program in addition to the national beef checkoff was also discussed by delegates. The body lent support to the concept, provided a referendum vote of cattle producers supported such a program, no checkoff dollars would be used for lobbying, and that the program would include refund provisions for those choosing not to participate. 

The House of Delegates also conducted elections for positions on Nebraska Farm Bureau’s Board of Directors. Delegates re-elected Mark McHargue of Central City to the position of first vice president, while also re-electing Nathan Bartels of Elk Creek and Don Benner of Central City and to the state board.  Bartels will continue to represent District 1 which covers Cass, Douglas, Gage, Johnson, Lancaster, Nemaha, Otoe, Pawnee, Richardson, Sarpy, and Saunders counties. Benner will continue to represent District 2 which covers Boone, Burt, Colfax, Cuming, Dodge, Merrick, Nance, Platte, Stanton and Washington counties.  Myles Ramsey of Kenesaw was newly elected to the position of District 5 director that represents Adams, Buffalo, Franklin, Greeley, Hall, Howard, Kearney, Phelps, Sherman, Valley and Webster counties.  



Anderson, Norman Family, Take Home Young Farmer and Rancher Awards

Nancy Anderson of Crawford was selected as the winner of Nebraska Farm Bureau’s 2013 Young Farmers and Ranchers Discussion Meet and Luke and Erin Norman of Crawford were named the recipients of the 2013 Young Farmers and Ranchers Excellence in Agriculture award. Both awards were given at the Nebraska Farm Bureau Federation’s 95th Annual Convention held Dec. 3-4 in Kearney.

Anderson received the top score of four contestants who advanced to the final round of the discussion meet contest. Rather than debating, contestants work to develop a solution to a problem being discussed, building on each other’s contributions. Competitors in the annual contest must be prepared to speak on any number of agriculture-related topics; the selected question is announced a short time prior to the contest round. Anderson teaches fourth grade at Chadron Public Schools and is involved in her family’s ranching operation.

Luke and Erin Norman were recognized for their ongoing involvement and commitment to agriculture. The Excellence in Agriculture Award is designed to recognize young farmers and ranchers for their contribution and involvement in Farm Bureau and agriculture. Candidates for the award are judged on their involvement in agriculture, leadership ability, involvement and participation in Farm Bureau and other civic, service and community organizations. Luke and Erin are the primary operators of the Norman Ranch in Dawes County. 

Candidates for the awards are restricted to Farm Bureau members ages 18-35. Winners of the awards receive $500, an iPad, and an all-expense-paid trip to the American Farm Bureau convention in Nashville, Tenn., in January to compete in the contests at the national level.



Aurora Cooperative Form Strategic Alliance with Curry Seed
Aurora Cooperative to Sell Curry Brand Seed Broad Portfolio of Genetics

The Aurora Cooperative and Curry® Seed announced today that they have formed a strategic alliance enabling the Aurora Cooperative to be an exclusive dealer of Curry brand seed in Nebraska and Kansas.

“We are excited to offer a diverse lineup of Curry brand hybrids to our growers,” said Al Perry, Aurora Cooperative Seed Product Manager. “Curry brand traits and options, along with the combination of expert agronomy services, modern technology and in-the-field, one-on-one service and consultations the Aurora Agronomy team can provide, will allow unmatched results for our growers.”

The Aurora Cooperative, a $1.1 billion company in sales, is a leading grain marketer and agricultural supplier with the majority of its 80 locations throughout communities in Nebraska and Kansas.

“Curry brand corn delivers dependability and consistency. Genetic diversity is a key feature for yield potential and performance against many diseases like Goss’s Wilt,” said Mark Kallsen, General Manager of Curry Seed.

The Curry lineup offers diverse germplasm across a three state area of Iowa, South Dakota and Nebraska. With access to major corn and soybean traits, the Curry brand offers a broad portfolio of genetics that will enable Aurora Cooperative customers to plant a more diverse lineup.



Over 1,100 Attend 94th Annual Farm Bureau Meeting

A diverse crowd of farmers, community and business leaders filled the newly-remodeled Vet's Auditorium this week to discuss animal welfare, water quality, changing markets and future trends at the Iowa Farm Bureau Federation (IFBF) 94th Annual Meeting held this week in Des Moines.

IFBF President Craig Hill told members that "Iowa farmers met many challenges in 2012 and thanks to their innovation, were able to overcome drought and market risks." The future-forward direction of the grassroots organization and Iowa's diverse farmers also brought several key leaders to the Annual Meeting. Governor Terry Branstad spoke to farmers about the fiscal cliff, regulations, and the newly-unveiled Iowa Nutrient Strategy Plan, which the Governor fully supports.

An in-depth discussion forum on the 2012 Nutrient Management Strategy drew capacity crowds at the IFBF meeting. Iowa Secretary of Agriculture Bill Northey, Iowa Department of Agriculture and Land Stewardship (IDALS) Dean Lemke and Iowa State University (ISU) scientist Matt Helmers led the discussion and answered many questions from farmers. The water quality plan provided several scenarios for conservation measures that would impact nutrient run-off in Iowa, and farther down the Gulf.

Secretary Northey said a science-based voluntary approach to conservation works best with all farmers. "I do believe now is the time for farmers to find these practices that work in our own operation, to figure out how we each can do a better job; this is voluntary, science-based, but it does not work if we don't put them on our farms. We want to tell the story that we are making progress. It's a better alternative than one size fits all regulation that limits choices," said Northey. Farmers were encouraged to familiarize themselves with the water quality plan and participate in the online public comment period by going to: www.nutrientstrategy.iastate.edu.

The 94th Annual Farm Bureau meeting also crew capacity crowds to hear keynote speakers Temple Grandin and Lowell Cattlett. Grandin, one of the nation's most-renown animal welfare and livestock handling facility designer, talked about the changing face of farming and consumer expectations of animal welfare. Her lively, off-the-cuff talk encouraged farmers to travel and 'see how the world sees you' when it comes to animal handling practices on the farm. She says today's farmers have 'made great strides' in how they care for their animals compared to the 70's and 80's when she first started working with farmers and slaughterhouses.

Economic 'futurist' Lowell Cattlett also energized the Farm Bureau crowd by talking about innovation in technology and health care, and how farmers are ideally positioned to 'blow the doors off' of expectations because of their knack for finding better ways to raise animals, grow crops or feed the world. He says one day, farmers may be using specially-equipped cell phones to analyze cattle and crop health.

The IFBF meeting brought education opportunities for farmers, celebrated innovation and also covered the business of the day, including leadership elections. For more information about IFBF's 94th Annual Meeting, including a detailed list of award winners, photos and IFBF President Craig Hill's Annual Meeting address, visit www.iowafarmbureau.com.



BQA Program Delivering Valuable Information to Producers

John Maas, veterinarian and beef producer from California and member of the industry’s Beef Quality Assurance (BQA) advisory committee, explains why the BQA program, funded in part by producer’s checkoff dollars, continues to be valuable to beef and dairy producers.  Maas says, “It’s important not only in my capacity as an educator but it’s important in the way we run our ranch. The significance of the Beef Quality Assurance program is that it’s alive – and by that I mean that it’s changing, and it changes relative to the opportunities and challenges that we see with our production systems here in the United States. To begin with, the Beef Quality Assurance program focused on a problem that we had with drug residues in our finished cattle. And quickly by scientific observations and the Beef Quality Audits and those types of tools, we found that we had other problems. And so we addressed them, and we’ve been addressing problems as we find them throughout the whole life of the BQA program. And we’ve ticked off a whole bunch of successes but that’s not where we’re stopping. We keep this whole program alive by continually doing the audits, taking the information from the audits and challenging ourselves to fix those problems as they come up."

Maas says the basic principles of the national program are tailored down to the on-farm level.  “The Beef Quality Assurance basics are going to remain the same – I mean the core part of the program about good feed, good water, good vaccine programs, prevention of disease problems, the way we use drugs, the way we prevent residues, the way we prevent injection site lesions – those things are going to be the core of it. The thing that really gets our producers excited is when we can then take that information and incorporate it into a problem that they’re having. Because this is a grassroots-driven program, we keep asking our producers exactly what are your problems this year, and then we’ll form a program around that and then go through the counties and deliver that information. And they really love that.”

Maas believes the success of the program starts with the changing mindset of the producer.  He says,  “Beef producers in the United States now accept almost universally that they don’t just market calves, they are raising food for somebody’s table. And because of the BQA effort, that has been an almost universal acceptance. And so it’s been so cool to see that taking of personal responsibility for making food for somebody versus the old-time attitude of ‘I just market my calves.’ And so that’s been a huge part of the sociology so to speak of the BQA movement.”



MyBeefCheckoff Gone Mobile!

Ever been at a trade show or at the auction market and needed access to information about your beef checkoff to share with a friend? Or have you had a conversation over the fence about who pays the beef checkoff and what it does for you as a producer?

Good news! It just got easier to get information on your smart phone or tablet. MyBeefCheckoff.com now has a mobile site offering all of the great information you’ve grown accustomed to on the full site. There’s no app to buy and little work involved. Just point your phone or tablet’s internet browser to www.MyBeefCheckoff.com and you’ll automatically access the mobile site on your phone and will be given the choice of going to the mobile site on your tablet.

Kim Brackett, Cattlemen’s Beef Board secretary/treasurer and beef producer from Buhl, Idaho, says she only uses her desktop computer once or twice a week for bookkeeping and the rest of her activity is done on her mobile phone or iPad.

“I use my phone because I’m always on the go. I don’t travel with my laptop anymore but still need quick access to information when I’m at a meeting or with kids at school or sorting calves in the corral,” says Brackett. “The mobile version of the site is so easy to navigate and it brings me up-to-speed immediately. As an officer, I feel the most useful tool on the site is evaluation information. This not only helps me know and understand where my dollar investment is going, but explain to fellow producers how their checkoff is helping to fund programs that are building beef demand.”



NCBA's Cattlemen's College® Lineup Set for Feb. 5-6 in Tampa

Now in its 20th year, the National Cattlemen’s Beef Association’s (NCBA) Cattlemen’s College® has established a reputation as one of the most thorough cattle producer education programs in the nation. Sponsored by Pfizer Animal Health, the 2013 edition of Cattlemen’s College® offers a wide range of informative, one of a kind hands-on educational workshops designed for cattle operations of every size and sector.

The program will be held Feb. 5-6, 2013, in Tampa, Fla., headlining the first day of activities at the 2013 Cattle Industry Convention and NCBA Trade Show. Early registration for Cattlemen’s College® and the convention ends Jan. 11.

Cattlemen’s College® workshops include an outstanding lineup of industry experts during the course of two jam-packed days. On Tues., Feb. 5, attendees will be able to participate in classes about reproductive technologies and low stress cattle handling principles. Learn how to put reproductive technologies to work in your cow-calf operations to enhance the performance and profitability of your herd, as well as learn about appropriate methods of moving cattle as a herd, penning techniques and pressure points in moving animals.

On Tuesday evening, Cattlemen’s College® participants will be treated to great Florida hospitality and enjoy an exciting night of ranch horse competition as the American Quarter Horse Association brings ranch horses to the Tampa bay. These cowboys and horses will show off their skills in reining, cow work and roping as they show the versatility, athleticism and willingness that make the American Quarter Horse the ultimate ranch tool.

Class begins bright and early on Wed., Feb. 6, with a keynote address by internationally respected futurist Dr. Lowell Catlett, who will educate the audience with his predictions for the long range outlook for the agricultural industry and factors that influence profitability and sustainability of beef cattle production. Sessions will go from 8:45 a.m. to 12:30 p.m., and include a cattle market update presented by CattleFax, preserving family relations on the ranch, weather predictions for 2013 and beyond, consumer attitudes toward beef and beef production, how to cope with drought and high feed prices, animal welfare issues and how to identify risk factors that affect your business’ bottom line.

“During Cattlemen’s College® producers not only have an opportunity to hear from some of the leading experts in topics that impact their cattle operations every day, but they also have the chance to interact with those experts and ask questions,” said NCBA Executive Director of Producer Education John Paterson. “Many of the presenters are legends in the beef industry, and the wide variety of classes offers something for every producer. We highly encourage cattlemen and women to take advantage of this informative and educational program."

Registration for Cattlemen’s College® includes all classes along with a two-hour lunch program on Feb. 6. This schedule allows cattlemen to attend up to five 45-minute workshops. Cattlemen’s College® registration also includes admission to the Cattle-Fax Outlook Seminar, which will be held on Fri., Feb. 9. Topics will include a detailed outlook for cattle and beef inventories and prices, the state of the cattle cycle, analysis of feed grain supplies and prices, a long-term weather outlook, global trade opportunities, and a discussion of emerging beef industry issues and trends.

Cattlemen’s College® registration information, as well as a complete schedule for the 2013 Cattle Industry Convention and NCBA Trade Show are available at www.beefusa.org.



Markets, Not Mandates, Shape Ethanol Production
Nathan Kaufman, Economist, Kansas City Federal Reserve 

The 2012 drought has reignited the food versus fuel debate. After cutting U.S. corn production below recent years’ consumption, the drought sparked a U.S. grain shortage and sent global food prices soaring. As the grain shortage intensifed, pressure to relieve the shortage by easing ethanol mandates mounted. Escalating ethanol mandates under the Renewable Fuel Standard (RFS), which fueled the expansion of the U.S. ethanol industry, will soon exceed the amount of ethanol than can be used in current U.S. gasoline blends. Some industry participants believe that a waiver of the mandate has the potential to reduce ethanol production and relieve high corn prices.

However, ethanol production may not decline signifcantly, even if the mandates are waived temporarily, a request the EPA recently denied for the 2013 mandate. The RFS mandates stipulate ethanol blending for the next decade. A temporary waiver would not relieve the pressure on current production to build credits to satisfy future mandates. In addition, the ethanol industry has become more market-based as production has exceeded the mandates in recent years. If energy prices rise faster than agricultural commodity prices, ethanol profts could expand and production soar regardless of mandated levels. Finally, ethanol is the primary octane enhancer and fuel oxygenate, and there are few alternatives for U.S. oxygenate blends. Thus, it is markets, not mandates, that ultimately will determine the scale of ethanol production and its use of scarce corn.

Click here to read the entire report... http://www.kansascityfed.org/publicat/mse/MSE_0512.pdf.  



NCGA Website Offers Just the Facts on Ethanol

The E15 blend of ethanol. Food and fuel. Energy security. Jobs in rural America. There is a lot of discussion about ethanol these days, and plenty of need for a look at the facts. That's why the National Corn Growers Association has created the EthanolFacts.com website as a simple place to get the facts and links to a lot more information about our favorite domestic renewable fuel.

"For years, NCGA has been at the forefront of promoting ethanol as an important choice for today's drivers, who are demanding fuels that are not only cleaner-burning, but powerful and made right here in the United States," said Chad Willis, a Minnesota corn farmer who serves as chairman of NCGA's Ethanol Committee. "EthanolFacts.com provides the key information to people who want to know the simple truth about a very complex subject so they can continue the conversation about how farmers are not only helping feed the world, but fuel it, too."

EthanolFacts.com was designed for simplicity and clarity on a number of platforms, especially mobile platforms such as tablets and smartphones. Do you like the portability of paper? NCGA also has a print-version Ethanol Facts pocket guide it updates regularly. Email your mailing address to corninfo@ncga.com to have a copy sent to you.



NASS Announces Annual County Estimates for Small Grains Will be Available December 13

The National Agricultural Statistics Service (NASS) will publish its 2012 county estimates for small grains on December 13.  NASS collected the information for these estimates at the end of the harvest season for barley, oats, winter wheat, durum wheat, and other spring wheat in 44 states. These county level acreage and production estimates help administer state and federal programs. The resulting data will be released online within the Quick Stats database only, http://quickstats.nass.usda.gov/.



Smithfield 2Q Earnings Plummet

Smithfield Foods Inc.'s (SFD) fiscal second-quarter earnings plummeted 91% as the pork producer recorded a large debt-extinguishment charge, while revenue edged down.

Smithfield -- whose brands also include John Morrell, Armour and Farmland -- has come under pressure recently from higher supplies and feed costs and weak domestic retail demand, although the company has maintained that exports have remained strong.

The largest U.S. pork producer by volume, Smithfield has taken positions in futures markets to control its costs for feed and, to a lesser extent, revenue from sales. The company previously said improving fresh pork results combined with robust packaged meats profitability and higher packaged meats volumes, as well as strong international segment profitability, should fuel strong results in fiscal 2013.

Thursday, Chief Executive C. Larry Pope characterized the quarter's results as "solid." He noted that "in addition to higher packaged meats margins, volumes improved on a year over year basis for the third consecutive quarter, growing by 2%." He said that volume and sales grew across all key trade channels, more than offsetting double-digit declines in the industrial business.

For the quarter ended Oct. 28, Smithfield reported a profit of $10.9 million, or seven cents a share, versus a year-ago profit of $120.7 million, or 74 cents a share. The most recent period included $120.7 million in early debt-extinguishment charges, translating to a per-share charge of 54 cents. The year-ago period included a similar charge of two cents a share. Excluding one-time items, earnings declined to 61 cents from 76 cents.

Sales slipped 2.6% to $3.23 billion.

Gross margin narrowed to 11.7% from 12.7% even as input costs fell 1.5%.

Total pork sales, the biggest contributor to Smithfield's revenue, edged down 1.9%. The hog-production segment's sales fell 6.5%, while Smithfield's international business recorded a decline of 8.3%.

Mr. Pope said that Smithfield expects hog prices to recover seasonally in the second half of the fiscal year and that analysts forecast record pork exports in 2013, "as lower global pork production and higher pork prices -- especially in the EU -- should bolster demand for U.S. pork."



EU Proposes Duty on US Ethanol

The European Commission today published a proposed rule on the registration of ethanol imports coming from the United States.

The proposed rule would impose a 9.6% duty on ethanol imported from the U.S., with the proposal in response to a request contained in an anti-subsidy case filed by the European Renewable Ethanol Association known as ePURE.

ePURE stated in a news release Aug. 24 with the rule the European Commission would have acknowledged the damage caused to the ethanol industry in the European Union by a significant increase of ethanol imports from the U.S. both in absolute terms and in terms of market share, and the negative affect that these imports have had on ethanol prices in the EU market and for EU ethanol producers.

As a result, EU ethanol production has been badly affected, leading to a critical financial situation for some EU ethanol producers and culminating in the temporary shutdown of several ethanol plants, the trade group added.

The U.S. Renewable Fuels Association, along with Growth Energy, two U.S. industry associations, criticized today's action by the European Commission.

"We continue to cooperate with the Commission's investigation," the statement said, adding the groups are "troubled by news that the Commission is recommending a 9.6 percent antidumping duty to its Member States."

The U.S. groups said they remain convinced that if all the facts are considered, the EU would decide to not impose the duties on U.S. imported ethanol.



Argentina Files Trade Complaints

Argentina filed complaints with the World Trade Organization Wednesday accusing the United States of erecting trade barriers against its beef and lemons, and the European Union of protectionist measures against its biodiesel.

Buenos Aires took the action "after trying to resolve bilaterally" disputes with the U.S. and the EU, Foreign Minister Hector Timerman said in a statement.

The trade barriers have caused "extensive damage" to Argentine producers and cost thousands of jobs, he added.

Argentina said it is hurt by U.S. trade measures purportedly intended to protect against hoof and mouth disease.

It defended the quality of its beef, which it said is produced at "extremely high sanitary standards," adding that it exported more than $731 million worth of beef around the world last year.

Similarly, its lemons are exported around the world, with trade totaling $172 million last year, it said.



Brazil 2012-13 Soy Pegged at 82.6 MMT
Brazil's Agriculture Ministry on Thursday refined its 2012-13 soybean crop forecast to 82.6 million metric tons (mmt) from a range of 80.1 mmt to 83.0 mmt.

Basically, favorable weather conditions have left the crop in good condition across the whole of Brazil's grain belt, the ministry's Food Supply Company (CONAB) said in its third report on the current crop.

CONAB pegged combined first- and second-crop corn production at 71.9 mmt, narrowing down from a range of 71.6 mmt to 72.9 mmt forecast in November.

First-crop output is seen rising 1.8% to 34.5 mmt, despite a 5.5% slide in planted area as farmers switched to soy.

Wednesday December 5 Ag News

UNL Scientist Cites Managing Risks in New Keystone XL Pipeline Route

            Potential groundwater contamination risks posed by the Keystone XL pipeline in Nebraska are minimal and manageable under a "risk-managed" route proposed by a University of Nebraska-Lincoln water scientist.

            Roy Spalding, hydrochemist and water quality expert, and Aaron Hirsh, graduate student, outlined the findings in a journal article about risk-managed approaches to routing petroleum pipelines. The article is in the Dec. 4 issue of Environmental Science and Technology, a long-standing and highly regarded journal published by the American Chemical Society, based in Washington, D.C.

            The risk-managed route the authors propose for the Keystone XL pipeline in Nebraska "avoids the sensitive, highly vulnerable, agriculturally undeveloped land that elicited strong condemnation of the since-rejected original Keystone XL route," Spalding said.

            Their proposed southeasterly route through Holt, Antelope and Pierce counties, to the existing north-south Keystone 1 pipeline, avoids the Ogallala aquifer beneath the fragile and pristine Sandhills, sub-irrigated meadows and areas with very shallow water tables. The risk-managed route through these three counties is through overlying row-cropped land underlain by already contaminated Ogallala groundwater to the Keystone 1 corridor.

            The north-south segment paralleling the Keystone corridor to Steele City avoids the Ogallala aquifer.

            The proposed risk-managed pipeline route, in the Holt, Antelope and Pierce county areas, is essentially the same length as the recently proposed KXL route under consideration but runs slightly south of it and avoids shallow groundwater. Once east of Pierce County, the risk-managed route drops almost due south, parelleling the Keystone One mainline pipeline.

            Spalding, of UNL's agronomy and horticulture department, and Hirsh, from the civil engineering department, point out that in Nebraska, where 85 percent of the population uses groundwater for its drinking water source, "threats to water quality are taken quite seriously" and that the routing of petroleum pipelines could be "made much more acceptable by adopting risk-managed routes that lessen the potential to adversely impact high-quality groundwater and, should a release occur, decrease the longevity and potential detrimental effects of hazardous groundwater contaminants."

            The article goes on to note that while pipeline spills have been dramatically reduced over the last 10 years, averaging fewer than one per 1,000 miles of pipeline over that period, "releases of hazardous petroleum chemicals to groundwater do occur and some should be expected."

            The potential risk of releases from the Keystone XL pipeline, or from any pipeline used to transport tar-sands oil, may increase from liquefying the asphalt-like tar sands with refinery condensate or naptha to form a more readily flowing mix of oil and diluents known in the oil industry as "dilbit."

            Little is known about the potential movement of dilbit to groundwater at release sites, the authors wrote. There are so many variables including the chemical composition of the dilbit, ambient temperature, depth to groundwater, emergency cleanup practices and other factors, that predicting the exact mechanism of contaminant movement to the aquifer is complicated, Spalding and Hirsh's article reports.

            One of the best ways to minimize risks from a potential spill is to carefully select a pipeline route with minimal environmental risk and reasonable length, which the researchers have done with their newly proposed pipeline route.

            The southeasterly course through intensely spray-irrigated, row-cropped land underlain by contaminated groundwater in Holt, Antelope and Pierce counties is "an opportunistic use of impaired groundwater and existing irrigation practices to remediate volatile petroleum contaminants and groundwater should a spill occur."

            Their proposed route also avoids high quality Ogallala aquifer groundwater, as well as bottomland, high water table land and major river crossings, the authors say.

            "Most importantly, the risk-managed approach is founded on the paradigm that siting the pipeline through an intensively spray-irrigated area overlain by a contaminated aquifer provides (for) both in place and off site remediation (of a spill). Thus, routing through areas of intense spray irrigation (center pivots) is by design."

            Earlier research by Spalding has proven that many volatile hazardous compounds found in petroleum products, such as the benzene present in dilbit, can be stripped from the contaminated water by spraying it through a center pivot, where the compounds can then dissipate harmlessly as a gas into the atmosphere, making groundwater irrigation by center pivot along the proposed pipeline route a potential plus.

            "Groundwater capture zones" created by wells pumping water to center pivots would also help contain and remove dissolved contaminants, Spalding said.      

            The majority of underlying groundwater in or near the proposed Keystone XL pipeline route is heavily laced with nitrate and sulfate contamination from fertilizer and soil amendments that have leached into the groundwater from the intensively farmed area, a not uncommon occurrence where crops are extensively irrigated.

            This nitrate contamination stretches for over 100 miles and over 1 million acres are underlain by non-potable high nitrate Ogallala groundwater. Leached soil amendments enhance the degradation of hazardous petroleum compounds in groundwater, which is another plus to the article's proposed route if a release should occur, the authors say.

            "Most agriculturally based states have extensive areas with groundwater nitrate contamination similar to that in the three-county focus area (of the proposed pipeline). Where appropriate, these contaminated areas deserve consideration in siting future routes for conveying liquid fuels," Spalding and Hirsh said. 

            The Keystone XL pipeline is awaiting U.S. State Department action on an international permit to build the pipeline.



Delegates Urge Prompt Action on Farm Bill, Extension of 2012 Tax Provisions

Delegates to Nebraska Farm Bureau Federation's 95th Annual meeting are urging Congress and the president to take action before year-end to pass a farm bill and extend a number of tax provisions that are vital to the future success of American agriculture. The action came in the form of a special resolution adopted by the House of Delegates. "Nebraska farm and ranch families are facing considerable uncertainty in both our nation's farm and tax policy. We need swift action in Washington to bring certainty in these areas," said Steve Nelson, Nebraska Farm Bureau president. 

The passage of an agricultural safety net via the 2012 farm bill is important to both Nebraska and American agriculture. The exceptional drought experienced across Nebraska and much of the country highlights the continued need for federal crop insurance, livestock disaster programs, as well as other important farm bill programs. "With expiration of the 2008 Farm Bill having already occurred over a month ago, the lame-duck session of Congress provides the last opportunity to move forward with the farm bill yet this year," said Nelson.

Over 100 different tax provisions are set to expire at the end of 2012 including the current estate tax rate of 35 percent with an exemption of $5.1 million per person; a 15 percent capital gains tax rate; lower personal income tax rates; as well as numerous other tax credits and deductions such as equipment depreciation and the biodiesel tax credit. If Congress fails to act before the beginning of January, estate tax rates rise to 55 percent with an exemption of only $1 million, capital gains taxes rise to 20 percent and all personal income tax rates rise between three and five percent.

A reduction in the estate tax exemption amount alone would dramatically affect the number of Nebraska farms and ranches that would be exposed to estate tax liability. Research conducted by the American Farm Bureau Federation shows that lowering the estate tax exemption from $5 million to $1 million would grow the number of Nebraska farms and ranches that exceed the estate tax exemption from 1,628 farms and ranches to more than 15,000 farms and ranches. "We're talking about a nine-fold increase in the number of farms and ranches that could face the implications of the death tax when you combine a reduction in the estate tax exemption with the recent appreciation in agricultural land values in recent years, said Nelson.

"Passing a farm bill and extending the 2012 federal tax provisions are critically important to our members as both greatly affect how our members make decisions related to their operations. The resolution adopted by our delegates sends a strong signal that now is the time for action on these issues," said Nelson.



ASA, Allied Farm Groups Meet with Hoyer to Press for Farm Bill

American Soybean Association (ASA) President Steve Wellman and Vice President Richard Wilkins joined fellow farmer-leaders from the American Farm Bureau Federation, National Milk Producers Federation, National Corn Growers Association and the National Association of Wheat Growers in a meeting today with House Minority Whip Steny Hoyer (D-Md.) to reiterate the critical importance of finishing a new, five-year farm bill before the 112th Congress adjourns.

“We appreciate the opportunity to meet with Minority Whip Hoyer and his staff today. It is imperative that the Minority Whip and all of the House leadership understand the importance of passing a new farm bill to provide certainty for farmers heading into 2013. The bill represents a good-faith investment in an agriculture industry that has been one of the bright spots in the American economy,” said Wellman, a farmer from Syracuse, Neb., who grows soybeans, corn, wheat, alfalfa and raises cattle. “It is critical that we sustain that progress, and ASA and our colleagues in the farm community are committed to working together to do so. We have come to the bargaining table with concrete spending reductions, and remain the only industry that has done so. We are, as we have been, open to compromise, provided that the end product is a new, five-year farm bill that enables America’s farmers to continue producing the safest and most abundant food supply in the world.”

House Speaker John Boehner (R-Ohio) and Majority Leader Eric Cantor (R-Va.) have both given commitments to address the farm bill in the lame duck session, however any effort appears to be delayed as the House remains divided in discussions on the fiscal cliff.

“We hope that, as Congress tackles the fiscal cliff, the farm bill will be resolved as well, but we would remind our elected representatives that the issues we tackle as farmers can’t be solved by political posturing or placing blame,” added Wilkins, who grows soybeans, corn, wheat, barley, vegetables, hay and raises cattle in Greenwood, Del. “We face real challenges every day, and we need real solutions in place to manage risk, protect resources, encourage conservation, foster research and innovation, and grow our market opportunities. The farm bill holds solutions in each of these areas, and we encourage the House to get to work immediately to pass this bill.”
ASA will continue to meet with congressional leaders to encourage passage of a new, five-year farm bill between now and the adjournment of the 112th Congress.



Farm Service Agency Conservation Loans Available

Farm Service Agency (FSA) State Executive Director, Dan Steinkruger, announced that funds are now available for Guaranteed Conservation Loans.  Conservation Loans allow farmers and ranchers to implement conservation practices on their land that will help protect natural resources.

“Guaranteed Conservation Loans are a useful alternative to help operators implement any Natural Resources Conservation Service (NRCS) approved conservation practice including, but not limited to, waste management systems, conservation structures or water conservation measures,” said Steinkruger.

Unlike other FSA guaranteed loan programs, Conservation Loans are not limited to family size farms.  Operators who may not normally qualify for an FSA guaranteed farm operating or ownership loan could be eligible for a Guaranteed Conservation Loan.

According to Steinkruger, the Guaranteed Conservation Loan limit is $1,302,000 and interest rates and terms will vary. The maximum guarantee FSA can issue is 75 percent.

A streamlined application process is available for applicants with a strong financial position. The streamlined process reduces paperwork requirements and eliminates the requirement to provide a cash flow statement and supplementary documentation.

Interested applicants who do not already have a conservation plan approved by NRCS should work with their local NRCS staff to develop a conservation plan. As with other guarantees, lenders can reduce risk, increase liquidity and offer lower rates by selling the guaranteed portion in the secondary market.

For questions regarding Guaranteed Conservation Loans, please contact your lender or your local County FSA Office.



The Andersons Finalizes Purchase of Elevators and Farm Agronomy Centers

The Andersons, Inc. (Nasdaq: ANDE) announces today it has completed the purchase of a majority of the grain and agronomy locations of Green Plains Grain Company, LLC, a subsidiary of Green Plains Renewable Energy, Inc. (Nasdaq: GPRE)

“We are significantly diversifying our grain and agronomy businesses by expanding into Iowa and Tennessee with the acquisition of these high quality assets. Expanding our connectivity to the ‘farm gate’ is part of our long-term strategy,” says Denny Addis, President, Grain Group.

“We are embarking on a new opportunity with a new team in new communities and look forward to providing service to thousands of new customers,” he continues. “We are fortunate to be adding a skillful, knowledgeable and customer-service oriented 130-member workforce to our grain and agronomy teams. The drought aside, this year has been significant for the Grain Group in terms of growth.”

The purchase includes seven facilities in Iowa and five in Tennessee, with a combined grain storage capacity of about 32 million bushels, which increases the Grain Group’s storage capacity by nearly 30 percent.  Two Iowa locations also have 30,000 tons of combined fertilizer storage.     



IFB to Help Members Manage Rising Health Care Costs

Farmers, like many self-employed Iowans, are concerned about the rising costs for health care and the changing environment of health care regulations. To kick off Iowa Farm Bureau Week this week, the Iowa Farm Bureau Federation (IFBF) has added a new benefit partner to help members qualify for an average of over $4,000 in tax savings to reduce out-of-pocket and health insurance premium costs.

BASE, a third party benefit administration company headquartered in Adel, Iowa, will work with Farm Bureau members who are self-employed or small business owners to customize a benefit plan for their specific needs and ensure the plan is in compliance with government regulations. More than 70 percent of self-employed are able to qualify for tax advantaged plans, regardless of how their business is structured. BASE will also offer exclusive savings to Iowa Farm Bureau members on these plans, providing another tool in Farm Bureau's suite of supplemental health care benefits designed to ease the pinch of rising costs.

"As farmers, we depend on our certified public accountant to provide us with every legitimate tax deduction we can get. That's why we've been using the BASE Health Reimbursement Arrangement (HRA) to deduct our medical expenses each year," said Joanne Piercy, a farmer in Lenox. "With such a great tax savings each year, we'll continue to take advantage of the BASE HRA as long as we're farming."



ASA Urges Senate to Vote Yes on Russia PNTR Bill

Reacting to news that a Senate vote on the Russia and Moldova Jackson-Vanik Repeal Act of 2012 may happen as early as Wednesday of this week the American Soybean Association (ASA) is encouraging all senators to vote yes on the House-passed version of the bill without amendment. The bill, if passed by the Senate and signed into law by President Barack Obama, would graduate Russia from the Jackson-Vanik Amendment to the Trade Act of 1974, and establish permanent normal trade relations (PNTR) with the world’s ninth-largest economy. The House overwhelmingly passed its version of the bill, H.R. 6156, on November 16. ASA President Steve Wellman, a soybean farmer from Syracuse, Neb., issued the following statement on the legislation:

“We call on the Senate to vote yes on the Russia and Moldova Jackson-Vanik Repeal Act as quickly and in the same bipartisan fashion as their counterparts in the House of Representatives. By establishing PNTR with Russia, American soybean farmers can reap the benefits of more than 140 million consumers and a fast-growing economy, which last year imported more than $770 million in American meat, poultry, egg and dairy products, each of which require soybean meal as feed in the production process. Until the U.S. graduates Russia from the Jackson-Vanik Amendment and establishes PNTR, we will not be able to fully access the Russian market without penalty. With this bill signed into law, our farmers can compete in one of the world’s largest and most promising economies.”



Despite Drought, Council Report Indicates High Quality US Corn Crop

The overall quality of the 2012 U.S. corn crop is high and improves upon last year’s very good marks across a range of test factors, according to the U.S. Grains Council’s Corn Harvest Quality Report 2012/13. Total U.S. corn production fell in 2012 due to the worst drought in decades, but despite the drought, this year’s crop showed a year-over-year improvement in average text weight, protein levels, and density, as well as lower moisture and BCFM than the 2011 crop. The full report is now available at www.grains.org.

This is the second year for the Council’s Harvest Report. The Harvest Report assess the quality of the U.S. crop as it is delivered from farms to local elevators, the first step in entering international marketing channels.  It will be followed in April 2013 by the second annual Corn Export Cargo Quality Report, which assess quality at the point of export.

The Council produces the reports so global importers will have access to reliable and comparable data from year to year, with samples being gathered and tested using transparent and consistent methods. “With an increasingly competitive global market, the availability of accurate information is in the long-term best interest of U.S. farmers, exporters and international buyers,” said Erick Erickson, USGC director of global strategies. “We received a tremendously positive response to the inaugural reports from international buyers, so certainly there is a need for this type of information.”

For the harvest quality report, samples of U.S. corn were gathered from 12 states that combined are the source for 99 percent of U.S. corn exports. Tests conducted on the samples cover grading factors like test weight, physical factors such as stress cracks and other items such as moisture, protein starch, oil and mycotoxins.

“The samples tested demonstrate that this year’s U.S. corn crop, while smaller due to the drought, is of outstanding quality overall,” Erickson said.

Data indicates the average test weight for the 2012/13 crop was 58.8 pounds per bushel, an increase over 2011 and more than 2 pounds per bushel above the grade limit for No. 1 U.S. corn. At the same time, broken corn and foreign material (BCFM) was lower, as were the number of damaged kernels. Moisture, at 15.3 percent, was also lower than last year.

“Protein numbers were generally higher, starch was marginally lower and oil content was unchanged,” Erickson said.

The frequency of stress cracks, which indicate the relative susceptibility of kernels to break up during handling, are up marginally (from 3 percent last year to 4 percent this year), which could be an indicator that the crop will be more susceptible to breakage during handling, information that may turn up in the Corn Export Cargo Quality Report in the spring.

Erickson noted that the Council’s Corn Harvest Quality Report 2012/13 only assesses the quality of the current U.S. corn harvest as it enters merchandising channels, as quality can be affected by further handling, blending, storage conditions and other downstream factors.

The full report is available at the U.S. Grains Council website, www.grains.org, and from the Council’s international offices.



U.S. Soy Exports Remain Strong

U.S. soybean farmers continue to reassure international customers of U.S. soy by meeting demand with high-quality soybeans. According to U.S. Census Bureau figures, U.S. soybean farmers exported more than 1.8 billion bushels of U.S. soy during the 2011-2012 marketing year, compared with approximately 2 billion bushels in 2010-2011. The 2012 export numbers include 1.3 billion bushels of whole soybeans, meal from more than 404 million bushels of soybeans and the oil from 126.5 million bushels of soybeans. U.S. soy exports this year are valued at more than $23 billion.

U.S. farmers harvested 3.05 billion bushels of soybeans last year, so these exports represent about 55 percent of that production. Soy customers in China, the largest importer, bought almost 850 million bushels of whole soybeans, or more than one out of every four rows U.S. farmers grew.

“Our customers’ main concern has been whether we were going to be a reliable supplier,” says Sharon Covert, soybean farmer from Tiskilwa, Ill., who leads USB’s International Marketing program. “The checkoff continues to assure them that while we may not have as many bushels per acre, we are a reliable supplier of high-quality soybeans.”

Throughout the year, the soy checkoff remains in contact with international customers to discuss many soy industry issues, such as quality and current crop conditions. These conversations proved to be especially important with this summer’s conditions.

Covert adds that it is important for customers of U.S. soy to know that farmers provide this supply of soy in a sustainable manner. The production practices farmers use, such as no-till or low-till, are not only important to many soy buyers but also help soil retain water in dry years such as this past production year.

Top buyers of whole U.S. soybeans include:
-    China: 848.7 million bushels
-    Mexico: 122.1 million bushels
-    Japan: 66.3 million bushels
-    Indonesia: 65.1 million bushels
-    Egypt: 43.1 million bushels
-    Taiwan: 38.7 million bushels

Top buyers of U.S. soy meal include:
-    Mexico: meal from 67.6 million bushels of soybeans
-    Philippines: meal from 53.1 million bushels of soybeans
-    Canada: meal from 50.4 million bushels of soybeans

Top buyers of U.S. soy oil include:
-    Morocco: oil from 30.4 million bushels of soybeans
-    Mexico: oil from 28.8 million bushels of soybeans
-    China: oil from 20.2 million bushels of soybeans



An Ounce of Preparation Now Saves Headaches this Spring

The National Corn Growers Association reminds farmers that early refuge planning helps ensure a smooth planting season. As many complete planting planning, the time to make concrete preparations is now.

"Refuge planning is important for all farmers because it supports the continued viability of important tools," said NCGA Trade Policy and Biotechnology Action Team Chair Jim Zimmermann. "While seed companies work hard to keep a pipeline of new products flowing, it is important that farmers keep up their end of the bargain too. Early planning makes meeting refuge requirements much simpler once planting season arrives."

Farmers should first consider the type of refuge solution they will use next year. Most major technology providers now offer integrated refuge solutions that will ensure compliance. Farmers planning to plant refuge in a block should secure refuge seed now.

While proper refuge planning can be confusing given the host of differing requirements associated with each variety, farmers have many allies who can act as resources. Generally the first and most important resource, seed dealers and crop consultants will help explain requirements and aide in planning.

Farmers interested in reading information supplied directly by seed companies should access the Insect Resistance Management and Technology User Guide supplied by each company.

Finally, NCGA offers an Insect Resistance Management refuge calculator that allows users to easily clarify refuge options and develop a plan. This tool provides information on even for the latest products. To access or download the NCGA calculator, please visit www.irmcalculator.com.

In addition to proper refuge planning, NCGA also recommends that growers pay attention to any signs of insect pressure in their fields and acquaint themselves with more advanced integrated pest management solutions. By keeping up-to-date on all options, farmers increase the tools readily available in their arsenal should the need arise.



Weekly Ethanol Production for 11/30/2012

According to EIA data, ethanol production averaged 835,000 barrels per day (b/d) – or 35.07 million gallons daily.  That is up 32,000 b/d from the week before.  The 4-week average for ethanol production stood at 818,000 b/d for an annualized rate of 12.54 billion gallons.

Stocks of ethanol stood at 19.3 million barrels. That is an increase from last week.

Imports of ethanol showed 92,000 b/d, up dramatically from last week.

Gasoline demand for the week averaged 350.1 million gallons daily.

Expressed as a percentage of daily gasoline demand, daily ethanol production was precisely 10%.

On the co-products side, ethanol producers were using 12.661 million bushels of corn to produce ethanol and 93,188 metric tons of livestock feed, 83,078 metric tons of which were distillers grains.  The rest is comprised of corn gluten feed and corn gluten meal.  Additionally, ethanol producers were providing 4.35 million pounds of corn oil daily.



EIA projections show U.S. energy production growing faster than consumption through 2040

EIA has just issued its Annual Energy Outlook 2013 (AEO2013) Reference case, which highlights a growth in total U.S. energy production that exceeds growth in total U.S. energy consumption through 2040.

"EIA's updated Reference case shows how evolving consumer preferences, improved technology, and economic changes are pushing the nation toward more domestic energy production, greater vehicle efficiency, greater use of clean energy, and reduced energy imports," said EIA Administrator Adam Sieminski.

"This combination has markedly reduced projected energy-related carbon dioxide emissions," said Mr. Sieminski.

AEO2013 offers a number of key findings, including:

Crude oil production, especially from tight oil plays, rises sharply over the next decade. Domestic oil production will rise to 7.5 million barrels per day (bpd) in 2019, up from less than 6 million bpd in 2011.

Motor gasoline consumption will be less than previously estimated. Compared with the last AEO, the AEO2013 shows lower gasoline use, reflecting the introduction of more stringent corporate average fuel economy (CAFE) standards. Growth in diesel fuel consumption will be moderated by the increased use of natural gas in heavy-duty vehicles.

The United States becomes a net exporter of natural gas earlier than estimated a year ago. Because quickly rising natural gas production outpaces domestic consumption, the United States will become a net exporter of liquefied natural gas (LNG) in 2016 and a net exporter of total natural gas (including via pipelines) in 2020.

Renewable fuel use grows at a much faster rate than fossil fuel use. The share of electricity generation from renewables grows to 16 percent in 2040 from 13 percent in 2011.

Net imports of energy decline. The decline reflects increased domestic production of both petroleum and natural gas, increased use of biofuels, and lower demand resulting from the adoption of new vehicle fuel efficiency standards and rising energy prices. The net import share of total U.S. energy consumption falls to 9 percent in 2040 from 19 percent in 2011.

The AEO2013 Reference case focuses on the drivers that shape U.S. energy markets under the assumption that current laws and regulations remain generally unchanged throughout the projection period. The complete AEO2013, to be released in early 2013, will include many alternative cases in recognition of the uncertainty inherent in making projections about energy markets, which in part arises from assumptions about policies and other market drivers such as trends in prices and economic growth.

Key updates made for the AEO2013 Reference case include the following:
    Extension of the projection period through 2040, an additional 5 years beyond AEO2012.
    A revised outlook for industrial production to reflect the impacts of increased shale gas production and lower natural gas prices, which result in faster growth for industrial production and energy consumption. The industries affected include, in particular, bulk chemicals and primary metals.
    Adoption of final model year 2017 to 2025 greenhouse gas emissions and CAFE standards for light-duty vehicles (LDVs), which increases the projected combined fuel economy of new LDVs to 47.3 mpg in 2025.
    Updated modeling of LNG export potential.
    Updated power generation unit costs that capture recent cost declines for some renewable technologies, which tend to lead to greater use of renewable generation, particularly solar technologies.

Details of the AEO2013 Reference case are available at http://www.eia.gov/forecasts/aeo/er/.



EIA Cuts Biofuels Growth Rate

The Energy Information Administration projects a slower growth rate for biofuels than what its forecast called for last year, in part on lower gasoline demand, according to the EIA's Annual Energy Outlook 2013 that assesses the 2012 to 2040 period.

"Biofuels are now expected to grow at a slower rate," commented Adam Sieminski, EIA administrator who presented the report in a webcast this afternoon.

"For one thing, the gasoline pool is shrinking," said Sieminski, who referenced higher efficiency ratings mandated for future model vehicles in the United States. "So we need to move to E85 to accommodate growth in a lot more biofuels including ethanol and cellulosic biofuels."

He added previous projections showed cellulosic ethanol facilities building out sooner, with the Environmental Protection Agency, the administrator of the Renewable Fuel Standard that mandates progressively higher renewables to be used in lieu of petroleum-based products, forced to cut demand targets for cellulosic fuels the last couple of years.

"It looks like it has proven to be more difficult than expected," said Sieminski of the slower than expected commercialization of cellulosic fuels.

The outlook sees biomass use for fuel totaling 4.2 quadrillion Btu by 2035 compared to 5.4 quadrillion Btu projected in the 2012 outlook, and 4.9 quadrillion Btu in 2040, up from 2.7 quadrillion Btu in 2011.



ACE says EIA’s energy outlook misreads purpose of RFS

The American Coalition for Ethanol (ACE) today cautioned those who would cite the Energy Information Administration’s (EIA) “reference case” energy outlook for 2013 in an attempt to undermine the Renewable Fuels Standard.

“Doing so would only prove their lack of understanding of EIA’s report and, more importantly, show their ignorance of the purpose of the RFS,” said ACE Executive Vice President Brian Jennings. “Congress designed the RFS as a flexible and forward-looking policy to serve as a catalyst for biofuel use, and by design, the RFS is built to help break through the blend wall,”

“EIA, on the other hand, makes its projections based on market conditions and known technology. Ten years ago, the EIA Outlook said we could only make 3.4 billion gallons of ethanol in the U.S. by 2020. Congress deemed that unacceptable, and passed the RFS to encourage alternatives to oil, and they were right. The RFS works. Our industry produced almost four times that much ethanol two years ago - ten years ahead of schedule.”

“EIA also appears to recognize that current market conditions include an artificial limitation on ethanol use, known as the blend wall, which is a creation of Big Oil and their supporters in Congress. The oil industry is spending their time and tens of millions of dollars trying to repeal the RFS through frivolous lawsuits and anti-competitive Congressional action, rather than working with retailers and ethanol producers to break down that wall by blending newly-approved E15 and other ethanol-blended fuels. It’s a little bit like a five-year-old trying to get his parents to say he doesn’t have to eat his vegetables by whining and refusing to even try them. We can’t allow oil companies to overturn a policy that’s good for all of us simply by refusing to follow their rules.”

“Despite Big Oil’s war on the RFS, it continues to be the most successful renewable fuel policy ever enacted by Congress. It has reduced oil imports and saved consumers money at the pump. Thanks to EPA’s recent approval of grain sorghum as an advanced biofuel feedstock under the RFS, we now have an American-made source of advanced ethanol/biofuel which can help fulfill the RFS,” said Jennings.



 Novozymes on EIA Energy Outlook: Biofuels Ready Now

 Novozymes, the world leader in making industrial enzymes for biofuels, issued a statement on the U.S. Energy Information Administration Annual Energy Outlook for 2013, focusing on the drivers that shape U.S. energy markets. The Outlook predicts that crude oil prices will continue to rise.

“As oil prices climb, Americans deserve affordable alternatives,” said Adam Monroe, President of Novozymes North America. “We agree it’s going to take a mix of solutions to meet our nation’s energy needs. Biofuels have proven they are one of those solutions, reducing prices at the pump, creating careers and economic growth, reducing carbon emissions, and putting steel in the ground in rural communities. If smart, market-based policies like the RFS are maintained, advanced biofuels will continue to succeed and grow.”

Biofuels have already created more than 400,000 good paying jobs, $42 billion in economic activity last year and reduced our foreign oil imports by 25 percent. Advanced biofuels have the potential to support 800,000 careers by 2022 while continuing to enhance the energy security of the United States.

In May 2012, Novozymes opened the largest enzyme plant dedicated to biofuels in the United States in Blair, Nebraska. The plant was built with $200 million in private investment and created 100 career positions and 400 construction jobs. Other advanced biofuel projects have steel in the ground or are underway include:
    POET’s Project LIBERTY in Iowa;
    DuPont’s cellulosic facility in Nevada,
    Fiberight’s trash to fuel plant in Virginia,
    KiOR’s biomass facility in Mississippi,
    and INEOS Bio’s Indian River BioEnergy Center in Florida.



Federation of State Beef Councils to Celebrate 50th Anniversary in 2013

It was a presence well before the mandatory $1-per-head beef checkoff was created in 1985. And in 2013 the Federation of State Beef Councils will recognize that presence, celebrating its 50th anniversary as a force for grassroots participation in beef checkoff programs.

The Federation was created as the Beef Industry Council of the National Live Stock and Meat Board in 1963. It moved to the National Cattlemen’s Beef Association (NCBA) when the Meat Board and National Cattlemen’s Association merged in 1996 to form NCBA. While it has had two homes in its lifetime, the Federation’s role has not changed through the years, according to Federation Chairman Craig Uden, a beef producer from Elwood, Neb.

“The Federation helps assure that grassroots producers, through their state beef councils, have significant input in the workings of the national Beef Checkoff Program,” said Uden. “That grassroots control was paramount to producers when the mandatory checkoff was created in the 1980s. But it really got its start when state beef councils began establishing their own programs more than a half century ago and pushed for a national effort.”

By the time the BIC was created in 1963, five states – Montana and California in 1954, Alabama and Florida in 1955 and Oregon in 1959 – had created their own state checkoff programs, and supported a coordinated national effort that could build on their efforts. More states would soon join them; by 1980 another 25 states had formed councils. Today there are 45 state beef councils qualified by the Cattlemen’s Beef Board to collect the $1-per-head mandatory national beef checkoff in their states.

Beef Councils voted overwhelmingly in July, 2010 to maintain their partnership between the Federation and NCBA, while creating more independence for the Federation. Since that time, Federation leaders and staff have been working to perfect a structure that ensures greater independence, while still preserving a 16-year successful working relationship with NCBA.

The Beef Checkoff Program was established as part of the 1985 Farm Bill. The checkoff assesses $1 per head on the sale of live domestic and imported cattle, in addition to a comparable assessment on imported beef and beef products. States with qualified beef councils retain up to 50 cents on the dollar and forward the other 50 cents per head to the Cattlemen’s Beef Promotion and Research Board, which administers the national checkoff program, subject to USDA approval.

The NCBA, a contractor to the beef checkoff, was established in 1898. Through its Federation Division the organization helps preserve the strength of the industry through consumer promotion and education, working to create new markets and increase demand for beef.



South Korea: Rebuilding Confidence in U.S. Beef

Only four years ago, 100,000 South Koreans lined the streets of Seoul to protest the return of U.S. beef to Korea. Consumer confidence in American beef was at an all-time low. Media outlets would not even accept paid ads promoting the products for fear of getting pulled into the protest backlash – instead joining the outrage by declaring U.S. beef to be unsafe from BSE (bovine spongiform encephalopathy).

Flash forward four years and we find the editors of three influential Korean culinary magazines on a detailed tour of the U.S. beef industry, visiting a Wyoming ranch, receiving a scientific briefing at Colorado State University, talking with beef industry distributors and retailers in New York City and enjoying the world’s finest grain-fed beef. And writing about their experiences in glowing terms.

The evolution of Korea, from No. 3 destination for U.S. beef exports in 2003 to a tumultuous scene of angry protests and back to a growing and vibrant market, has been a rollercoaster ride. However, for the American beef industry, the time and energy spent wooing Korean importers, retailers, food service operators, media and consumers has been a worthwhile investment.

“Korean consumers have a very high standard for quality,” said Jihae Yang, U.S. Meat Export Federation (USMEF) director in South Korea, whose team organized the media visit. “We have remained confident that when we can tell the real story behind U.S. beef – and the industry’s commitment to quality and safety – that we would find a receptive audience for that message.”

The story told by the three Korean culinary magazines is evidence that the positive message of U.S. beef is getting through. Following the editors’ visit in late August and early September, each of the magazines has produced impressive multi-page articles with full-color photos documenting their trip, with extensive focus on the Wyoming ranching operation of Irv Petsch and the world-class quality of USDA prime steaks the editors enjoyed at several of New York’s finest restaurants.

“This was an extremely positive experience for those editors,” said Suzanne Strassburger, president of Strassburger Meats and creator of the Suzy Sirloin line of meat products. Strassburger, a USMEF member, served as guide for the team for a behind-the-scenes tour of famed New York steakhouses Smith & Wollensky and Peter Luger. “Whether they’re meeting with chefs, suppliers, butcher shop owners or ranchers, this tour allowed them to see the faces behind our industry and get to know them personally.”

The editors of Lemon Tree (top-tier lifestyle magazine with 80,000 circulation), Essen (leading culinary and fine dining magazine with 55,000 circulation) and Cookand (influential cooking and lifestyle magazine with 40,000 circulation) brought home messages that told a story of the quality production practices that go a long way to building consumer confidence in American beef.

“The quality of U.S. beef is world-class,” reported Essen. “U.S. producers care about animal welfare,” adding that many American livestock operations have adopted systems designed by Dr. Temple Grandin, “one of the top scientists in humane livestock handling,” to reduce stress in animals.

The messages of corn-fed quality were echoed in the other magazines, which detailed the journalists’ visits to the Agricultural Research Development and Education Center at Colorado State University, briefings by USMEF staff in Denver, the Petsch family’s ranching and feeding operation near Meriden, Wyo., and to New York to see the retail and food service side of the industry.

The U.S. beef industry tour, the first by any Korean media team since the first BSE finding in the United States in 2003, was made possible through support from the Beef Checkoff Program and the USDA Market Access Program (MAP).

“I was very surprised and impressed by the academic support available to the U.S. beef industry, and by the support producers receive from USMEF and other organizations,” said Ho Sun Lee, editor-in-chief of Lemon Tree. “It was good for us to see not only the production practices, but to experience the entire culture that is responsible for producing U.S. beef.”

“This type of positive reporting on the U.S. beef industry in a key market like Korea is invaluable for our industry, from producers to processors to exporters,” said Philip Seng, USMEF president and CEO. “Many months of education and cultivation have gone on behind the scenes to encourage these independent journalists to embark on this ‘farm to fork’ experience. The results speak for themselves.”

USMEF has been active in the market working to rebuild consumer confidence in U.S. beef. After market access was regained in 2008, USMEF introduced its “Trust” campaign to educate importers, buyers, consumers and key influencers with factual information about U.S. beef. The campaign is now in its third phase, “World Class Beef,” which focuses on the quality that makes U.S. beef the most highly prized grain-fed beef in the world.

In 2003, South Korea was the No. 3 market for U.S. beef, buying 246,595 metric tons (543.6 million pounds) valued at $815 million – accounting for 19.4 percent of all U.S. beef exports by volume 21.1 percent by value. Since falling to virtually nothing (233 metric tons valued at $610,000) in 2006, Korea rebounded in 2011 to be the No. 4 market for U.S. beef, purchasing 154,019 metric tons (339.6 million pounds) valued at $686 million.

“We have seen a lot of progress in Korea, but great opportunities remain,” said Seng. “During the years we were effectively out of the Korean market, we lost market share to our global competitors, but with the help of initiatives like this media outreach program and our ongoing initiatives at all levels of the meat industry trade, we are confident that Korea will once again be a key customer for U.S. beef in the years ahead.”    



All Quiet on Fertilizer Front

Fertilizer prices continue to remain quiet with little move in either direction, according to retail fertilizer prices tracked by DTN for the fourth week of November. But the cease fire in price movements could be temporary if water levels on the Mississippi River don't improve in time for spring deliveries.

Two fertilizers edged higher compared to the fourth week of October but these moves were fairly minuscule. MAP had an average price of $679/ton while anhydrous was at $864/ton.  Four fertilizers were just slightly lower compared to a month earlier. Potash had an average price of $617/ton, urea $580/ton, 10-34-0 $616/ton, UAN28 $377/ton and UAN32 $418/ton.  One fertilizer, DAP, was unchanged. The phosphorus fertilizer had an average price of $642/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.63/lb.N, anhydrous $0.53/lb.N, UAN28 $0.67/lb.N and UAN32 $0.65/lb.N.

Only one of the eight major fertilizers is still showing a price increase compared to one year earlier. Anhydrous is now 6% higher compared to last year.  Six fertilizers are actually lower in price compared to November 2011. Urea, potash and UAN28 are all 7% lower while MAP is 8% less expensive and both DAP and UAN32 are 9% lower compared to last year.  The remaining fertilizer is now down double digits from a year ago. 10-34-0 is 25% less expensive from a year earlier.



Informa Ups Brazil Soy Estimate

Private analytical firm Informa Economics on Tuesday raised its outlook for Brazil's soybean production, traders said.

Informa, a closely watched crop forecaster, pegged Brazil soybean production at 81.4 million metric tons, up 150,000 metric tons from its November estimate, traders said. The firm projected Brazil corn production at 66.2 million metric tons, down 600,000 metric tons from its November forecast.

Informa lowered its forecasts for Argentina corn and soybean production. Informa pegged Argentina soybean output at 58.4 million metric tons, down 1.1 million from its November forecast, and it lowered its Argentina corn forecast by one million metric tons to 27 million.

Informa lowered Argentina soy and corn forecasts due to an expected 300,000-hectare reduction in expected soy plantings and a 100,000-hectare reduction in area estimated to be harvested for grain.

Problems have arisen in Argentina due to wet conditions. Planting progress is behind average, especially in the case of corn as progress is lagging behind normal by about four weeks, Informa notes in the report, traders said.

U.S. Department of Agriculture in its Nov. 9 supply-and-demand report estimated Brazil soy production at 81 million metric tons and Argentina soy output at 55 million. USDA pegged Brazil corn production at 70 million metric tons and Argentina's corn crop at 28 million.

Informa increased China's 2013 corn production forecast 4.0 million metric tons to 205.0 million.

Informa forecasts Argentina's wheat production at 11.5 million metric tons, down 500,000 metric tons from last month and, if realized, would be 4.5 million below the previous year, traders said.

Informa also issued estimates for U.S. cotton, forecasting for 2012 production at 17.55 million 480-pound bales, 100,000 larger than USDA's November forecast but would be about 2.0 million above last year.

USDA will release its latest estimates on U.S. and world supply and demand on Dec. 11.



CWT Export Assistance Uses 75% of Milk Production Increase

November was another very active month for the Cooperatives Working Together (CWT) Export Assistance program. Of the 79 requests received, CWT provided members with competitive assistance on 18 cheese bids totaling 7.315 million pounds, 14 butter bids totaling 9.306 million pounds, and one whole milk powder bid for 85,980 pounds.

When combined with assisted sales from the previous ten months, this activity brings the total pounds of cheese sold with the help of CWT to 113.6 million pounds for the year. The total butter CWT has helped members to sell is 70.5 million pounds. Total anhydrous milkfat and whole milk powder sales assisted by CWT are 127,868 pounds and 171,961 pounds, respectively.

These sales are the equivalent of 2.590 billion pounds of milk on a milkfat basis. That means that CWT-assisted export sales will utilize 75% of the 3.4 billion pounds of additional milk produced so far in 2012.



Corporate support of National FFA Organization in 2012 tops $16.2 million

Corporate and individual contributions to the National FFA Foundation in 2012 to support national FFA programs and agricultural education climbed to more than $16.2 million.

Corporate support this year exceeded the $15.8 million donated in 2011 and $15.6 million in 2010. Individual giving also rose to $558,000, up from $475,000 a year ago and $292,000 two years ago.

Pfizer Animal Health gave $1.27 million to FFA this year to link veterinarians in local communities with FFA members planning careers in animal health. Other million-dollar corporate contributors were CSX Transportation and RFD Communications, which operates RFD-TV and Rural TV. Monsanto provided more than $890,000 to support national student leadership conferences, educational awards, awareness campaigns and more.

And Cargill and General Mills committed more than a half-million dollars to fund the creation of a new food science and safety curriculum for agriculture students.

“Financially backing FFA and agricultural education creates critical educational opportunities for our students as they grow and learn about the science, business and technology of agriculture,” said National FFA Foundation executive director Rob Cooper. “Corporate and individual donations help ensure our members will become leaders with core skills necessary to meet world needs for food, fiber and renewable energy.”

Individuals also stepped up to support FFA in 2012. A group of eight people who advise FFA in matters concerning individual giving created a pool of donations to serve as matching-fund incentives and encourage others to support FFA. The group will give more than $312,000 over the next three years and each new donation to FFA of $1,000 to $100,000 will be matched by the group.

And Nebraska business owner and former FFA member Ron Grapes established a major endowment that will provide grants for FFA members to use and complete their required supervised agricultural experience, marking the first time in the 85-year history of FFA that an endowment was established to support the organization’s SAE program.

Funds donated to the National FFA Foundation help sponsor leadership development training initiatives, national award and recognition programs, scholarships, service-learning activities, global engagement programs, nationwide teacher training and more. Since its inception, the foundation has raised more than $260 million.



Dillon Wins! American Ethanol Celebrates "Rookie of the Year" Award

American Ethanol congratulates spokesman and driver Austin Dillon on being named 2012 NASCAR® Nationwide Series Sunoco Rookie of the Year. Now, fans have an opportunity to congratulate Dillon personally too during the American Ethanol live Twitter chat which Dillon will host next week from 10:30 to 11:30 a.m. CST Monday, Dec. 10.

"All of the American Ethanol partners are so excited for Austin," said National Corn Growers Association NASCAR Advisory Committee Chairman Jon Holzfaster. "Rookie of the Year is a big win both for him personally and for farmers across the country. With all eyes on Austin, NASCAR fans also get to see the performance and benefits another homegrown winner offers when E15 fuels the race. Every car in every series races to the finish with E15 in the tank, but we are particularly proud that such a talented young driver speaks on our behalf."

Austin Dillon was officially named the 2012 NASCAR Nationwide Series Sunoco Rookie of the Year recently at Homestead-Miami Speedway. Dillon joins his younger brother, Ty Dillon, as a 2012 Sunoco Rookie of the Year. The younger Dillon clinched the NASCAR Camping World Truck Series version of the award on Friday evening.

Austin Dillon, who drives the No. 3 car for Richard Childress Racing, culminated his first full season in NASCAR's No. 2 tour with two race wins, sweeping both Kentucky Speedway events, along with 16 top-five finishes, 27-top-10s and 3 pole awards. Dillon finished third in the championship point standings and was formally honored for his 2012 accolades at the NASCAR Nationwide Series and Camping World Truck Series championship awards banquet.

To join the conversation on Twitter, follow @AmericanEthanol on Twitter and use the hashtag #CongratsAD3 from 10:30 to 11:30 a.m. CST Monday, Dec. 10.

Monday December 3 Ag News

Farmers Tax Guide Now Available
Larry F Howard, Extension Educator, Cuming County

Farmers can better understand their 2012 tax returns with help from a guide available through the University of Nebraska-Lincoln Extension.  The 2012 Farmers Tax guide has illustrated examples, a sample return and describes available deductions. The tax guides are in and are free to local producers.  They can be picked up at the UNL Extension office in Cuming County, area tax preparers or any Cuming County bank.



Heineman Sends Ibach to Agricultural Event in China

Gov. Dave Heineman today announced he will send Nebraska Agriculture Director Greg Ibach to Beijing, China, later this week to represent the state at a workshop designed to spark mutual U.S. - China investment in agriculture and bioenergy.

“As the most populous country in the world, China already is an important part of Nebraska’s trade economy,” said Gov. Heineman. “The opportunities there are endless, and we need to position our state to be actively engaged in events such as this workshop to maintain a competitive edge.”

Seizing Investment Opportunities in Agribusiness: A U.S.-China Workshop is being coordinated by The Paulson Institute, the Chinese Agricultural Association for International Exchange and the Chinese Ministry of Agriculture. The event will take place Dec. 7. Ibach is slated to be a presenter at the workshop, discussing the opportunity for Chinese companies to add value to Nebraska-grown commodities within the state’s borders.

The Paulson Institute is chaired by Henry M. Paulson, Jr., former U.S. Treasury secretary. The Institute is working to promote sustainable, world economic growth and a cleaner environment, with its initial focus on actions by the governments and businesses of the United States and China. At the Governor’s request, Ibach is serving as an adviser on the U.S.-China Agricultural Investment Experts Group of The Institute.

“The trading landscape with China continues to evolve, and Nebraska must be part of the conversation and prepared to adapt,” said Dir. Ibach. “I appreciate the opportunity to represent our farmers, ranchers and agribusinesses on The Paulson Institute and as part of this workshop.”

Participants will include representatives of Chinese and international companies and investment banks, national and state agricultural leaders, and agribusiness consultants. The event is designed to look at opportunities for agriculture-related investment between the United States and China.



NEBRASKA STUDENTS TO TOUR TAIWAN

Next week, three Nebraska students will travel over 7,000 miles to Taiwan where they will experience the country’s agricultural education system, agricultural industry and learn more about the role Nebraska agriculture plays in Taiwan.

This is the ninth year for the student exchange program between the Nebraska Department of Agriculture (NDA) and the Taipei Economic and Cultural Office in Kansas City.  Each year, three students from Taiwan visit Nebraska to attend the annual Nebraska Agricultural Youth Institute (NAYI), a week-long summer program coordinated by NDA.  In return, NDA chooses three NAYI delegates to travel to Taiwan.

NDA Director Greg Ibach hopes the exchange program will continue, as it benefits agriculture in both countries.  “Agriculture is a global industry, and it’s important that our students are educated and understand the important role our trading partners, such as Taiwan, play in our state’s agricultural industry.”

The trip is sponsored by the Nebraska Farm Bureau and the Taipei Economic and Cultural Office in Kansas City and is coordinated by NDA.

The students will leave for Taiwan on December 9 and will return to Nebraska on December 14.  While in Taiwan, the students will be staying at the Taichung Senior High School of Agriculture and Technology.  Their visit will include tours of the campus, interaction with Taiwanese students, participation in presentations, visits to local farms, and observations of several agricultural research institutes.  They will also have the opportunity to do a little sightseeing.

The students will return to the 2013 NAYI where they will share their experiences with the delegates.

The three students selected by the Nebraska Department of Agriculture are:
·         Ms. Amanda Clymer from David City.  Amanda is a senior at David City High School.  Her parents are Kent and Gina Clymer.
·         Mr. Justin Korth from Randolph.  Justin is a senior at Randolph High School.  His parents are Rick and Susan Korth.
·         Mr. Conner Kozisek from Ainsworth.  Conner is a senior at Ainsworth High School.  His parents are Mark and Joni Kozisek.



Crop Production Clinics Offer Continuing Education at Nine Locations in 2013

The annual Crop Production Clinics will help producers and professionals alike to improve profitability, sustainability and safety.

The 2013 meeting series will be held at nine locations throughout the state in January. Topics vary slightly by location, but could include soil fertility, soil water and irrigation management, crop production, ag business management and policy, pesticide safety and disease, insect and weed pest management. Information on the topics for each location will be available at cpc.unl.edu.

The clinics are the primary venue for commercial and noncommercial pesticide applicators to renew their licenses in the Ag Plant, Regulatory and Demonstration/Research categories.

Certified Crop Advisors can earn a maximum of six continuing education units when they bring their CCA number to apply. Available units include: six for integrated pest management, two for soil and water, one for nutrient management, one for crop production and two for professional development.

This year's locations are:
– Jan. 8, Hastings, Adams County Fairgrounds
– Jan. 9, North Platte, Sandhills Convention Center
– Jan. 10, Gering, Gering Civic Center
– Jan. 15, Atkinson, Atkinson Community Center
– Jan. 16, York, The Auditorium
– Jan. 17, Beatrice, Armed Forces Reserve Center
– Jan. 22, Kearney, Younes Conference Center
– Jan. 23, Norfolk, Lifelong Learning Center, Northeast Community College
– Jan. 24, Fremont, Midland University Event Center

Registration fee for the clinic is $50 for a meal, refreshments and the 2013 Guide for Weed Management and the 2013 Crop Production Clinic Proceedings. For those recertifying as pesticide applicators, the fee is $60. Online pre-registration at cpc.unl.edu is strongly encouraged. As an incentive to promote online pre-registration, on site/day-of registration will be $70 per person. Contact your local Extension office or 402-472-2811 or 402-472-1632 with questions.



J. Dudley Butler To Keynote Nebraska Farmers Union State Convention
ICON President Dave Wright to Report On Beef Checkoff Issues

Nebraska Farmers Union (NeFU) will highlight livestock issues Saturday morning December 8th at their 99th annual state convention to be held in Grand Island at the Midtown Holiday Inn.  Livestock producers and the public are invited to attend.

Nationally recognized livestock market expert and retired USDA GIPSA Chief Administrator J. Dudley Butler will report on the particulars of the recent Congressional efforts to strengthen and update USDA’s anti-trust regulations and agricultural marketing definitions and standards.  Butler will also speak on the future of the livestock industry.  Butler will make his presentation 9:00 a.m. Saturday morning, the second day of the two day convention.

Later Saturday morning, Independent Cattlemen of Nebraska President and Cattlemen’s Beef Promotion Board member Dave Wright will report on beef checkoff activities and issues.

NeFU President John Hansen said, “Since 1980, meat packer consolidation, non-competitive marketing practices, and vertical integration have squeezed thousands of livestock producers in Nebraska out of business.  Nationally, according to the latest USDA data, there are 42% fewer beef producers, 91% fewer swine producers, 82% fewer dairy producers, and 33% fewer sheep producers.  Unfortunately, while livestock producers have done an outstanding job of producing high quality livestock and milk, they failed to produce the necessary profit to pay their bills and stay in business.

It is high time we address the root cause for the loss of livestock producers instead of chasing meat packer financed media disinformation  generated wild goose chase diversions.”

The agenda for the entire NeFU Convention held December 7-8th can be found at: http://nebraskafarmersunion.org/ai1ec_event/killa_agenda/?instance_id=122.

Registration begins at 8am Friday morning. Convention begins at 9am Friday, and resumes 8:30am Saturday.  As always, Farmers Union members and the public are invited to attend.   For more information call the NeFU State Office at 402-476-8815.



Iowa DNR: Manure Applicators Take Annual Training Now
Nearly 1,000 confinement site manure applicators may need to complete their annual training requirements by Dec. 31 according to the DNR.

"It's not too late for applicators who are currently certified but haven't completed their annual training requirement to get it done before the end of the year," said Jeff Prier, who coordinates the DNR's manure applicator certification.

While some applicators may not need the training -- changing their certification type or not raising livestock anymore -- the DNR's records show that about one-third of the 2,720 confinement site applicators need to complete annual training.

"If they get in and get the training all three years, they can avoid taking a make-up test to renew their certificate," said Prier.

Applicators should make an appointment at the nearest Iowa State University Extension and Outreach office for the training. Some Extension offices offer training on set schedules. Others may charge a fee.

More information and a list of Extension offices are available at www.agronext.iastate.edu/immag/mac.html. The DNR administers the program. Information is available at www.iowadnr.gov/afo/.



Commercial Manure Applicator Training Scheduled for Jan. 4 in Iowa

Commercial manure applicators can attend three hours of training on Friday, Jan. 4, 2013 to meet commercial manure applicator certification requirements. Iowa State University Extension and Outreach and the Iowa Department of Natural Resources will conduct Commercial Manure Applicator training from 9 a.m. to noon at 69 locations in Iowa and one location in Wisconsin. Registration begins at 8:30 a.m. There is no fee for the workshop, but applicators must register by Dec. 28, 2012 with the ISU Extension county office where they plan to attend. A complete list of workshop locations can be found at http://www.agronext.iastate.edu/immag/certification/macprogrampostcard.pdf.

Commercial manure applicators needing to recertify and those wanting to certify for the first time should attend. All currently certified commercial manure applicator licenses will expire on March 1, 2013. Those wanting to renew must complete training requirements and submit forms and fees to the DNR prior to March 1, to avoid paying late fees. 

Those unable to attend the program on Jan. 4 need to schedule time with their ISU Extension county office to watch the training DVD. Due to scheduling conflicts, many county extension offices will no longer accept walk-in appointments to watch these DVDs, but do offer scheduled dates and times to provide this training. There will not be a fee charged for scheduled training dates. Anyone requesting a non-scheduled reshow at the county extension office will be charged a $10 fee. If attending the workshops or watching the three-hour DVD is not convenient, commercial applicators may contact their local DNR field office to schedule an appointment to take the certification exam.

In addition to the commercial manure applicator training offered on Jan. 4, ISU Extension and Outreach will offer seven dry/solid manure workshops for commercial manure applicators in February 2013. Information regarding these workshops and locations is also contained in the link to the brochure listed above.

For more information about the commercial manure applicator certification program, contact an ISU Extension county office or visit http://www.agronext.iastate.edu/immag/mac.html.



Confinement Site Manure Applicator Workshops Scheduled for 2013

Confinement site manure applicators and anyone interested in learning about manure issues should plan to attend a two-hour workshop offered by Iowa State University Extension and Outreach in January or February 2013. The workshops are offered in cooperation with the Iowa Department of Natural Resources. There is no fee to attend the workshops, but applicators will need to pay certification fees to complete certification requirements.

“Iowa law requires confinement site manure applicators to attend two hours of continuing education each year of their three-year certification period, or take and pass an exam once every three years,” said Angela Rieck-Hinz, ISU Extension and Outreach program specialist and coordinator of the manure applicator certification program.

A total of 61 confinement site manure applicator workshops will be held in 57 different counties. In addition, a series of seven dry/solid manure applicator certification meetings will be held in February. ISU Extension county offices have a complete list of workshop dates and locations, or find the list at http://www.agronext.iastate.edu/immag/certification/confdates.html.

The workshops serve as initial certification for those applicators that are not currently certified, recertification for those renewing licenses and continuing education for those applicators in their second or third year of their license.

Due to uniform certification deadlines, applicators are encouraged to attend workshops prior to March 1 to avoid being assessed a late fee of $12.50. Those unable to attend one of the workshops need to schedule time with an ISU Extension county office to watch the training DVD. Due to scheduling conflicts, many county extension offices will no longer accept walk-in appointments to watch these DVDs, but do offer scheduled dates and times to provide this training. There will not be a fee charged for scheduled training dates and workshops; however anyone requesting a non-scheduled showing will be charged a $10 fee to view the training.If attending the workshops or watching the two-hour training DVD is not convenient, confinement site manure applicators may contact their local DNR field office to schedule an appointment to take the certification exam to meet certification requirements.

Contact an ISU Extension county office for more information about the Manure Applicator Certification Program or visit http://www.agronext.iastate.edu/immag/mac.html.



CME Group Completes Acquisition of Kansas City Board of Trade

CME Group, the world’s leading and most diverse derivatives marketplace, today announced it has completed its acquisition of the Kansas City Board of Trade (KCBT), the leading futures market for hard red winter (HRW) wheat. The completion of the acquisition will provide both CME Group and KCBT customers with greater capital efficiencies, new trading opportunities and additional products to manage their global wheat price risk. 

“We’re pleased to complete this transaction, combining KCBT Hard Red Winter Wheat products with our deep and liquid CBOT Soft Red Winter Wheat futures and options markets,” said CME Group Executive Chairman and President Terry Duffy. “The integration of these two global wheat benchmarks will provide new trading opportunities to commercial grain market participants, wheat traders and customers who continue to rely on these tools to manage their price risk.”

“The addition of KCBT to CME Group will provide significant value to the customers, shareholders and members, beginning on day one,” said CME Group CEO Phupinder Gill. “Starting today, we’re integrating hard red winter wheat futures and options into our suite of already deep and liquid grain and oilseed products. Moving forward, we’ll work with customers to grow existing KCBT and CBOT Wheat futures and options, while developing new and innovative products that will benefit customers of both varieties of wheat.” 

Beginning today, CME and CBOT members and KCBT permit holders will immediately benefit from the ability to trade each other’s wheat futures and options products in a more cost-effective manner on the CME Globex electronic trading platform. Following the integration of clearing services, customers will benefit from cross-margining and other capital efficiencies. 

Beginning Monday, December 10, customers will be able to take advantage of the implied spread between these two distinct wheat futures products. The implied inter-exchange KCBT-CBOT Wheat futures spread will be available for trading on CME Globex.  

CME Group will begin integrating KCBT business operations and clearing services in order to achieve efficiencies for members, customers and shareholders. The timetable for integration includes:
-  Ongoing operation of the KCBT trading floor for at least six months;
-  Integration of clearing systems (specific timeline to be announced Q1 2013); and
-  Maintenance of a committee made up of KCBT market participants to advise on HRW wheat contract terms and conditions for at least three years.



USDA Announces Commodity Credit Corporation Lending Rates for December 2012

The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for December 2012. The CCC borrowing rate-based charge for December 2012 is 0.125 percent, unchanged from 0.125 in November 2012. For 1996 and subsequent crop year commodity and marketing assistance loans, the interest rate for loans disbursed during December 2012 is 1.125 percent, unchanged from 1.125 in November 2012.

Interest rates for Farm Storage Facility Loans approved for December 2012 are as follows, 1.125 percent with seven-year loan terms, unchanged from 1.125 in November 2012; 1.750 percent with 10-year loan terms, unchanged from 1.750 in November 2012 and; 1.875 percent with 12-year loan terms, down from 2.000 percent in November 2012.



RFA to EPA: “Time is Now” to Revise Lifecycle GHG Analyses of Corn and Sugarcane Ethanol

The Environmental Protection Agency (EPA) should immediately initiate a process to update its obsolete lifecycle greenhouse gas (GHG) analyses of corn and sugarcane ethanol for the Renewable Fuel Standard (RFS2), according to a letter sent Friday to EPA Administrator Lisa Jackson from Renewable Fuels Association (RFA) President and CEO Bob Dinneen.

“There have been literally dozens of new studies and modeling improvements since EPA finalized the RFS2 almost three years ago,” Dinneen said. “Overwhelmingly, these new reports and data show that the corn ethanol process is far less carbon intensive than assumed by EPA. Corn ethanol is offering real and significant GHG savings today. Meanwhile, the carbon intensity of crude oil production continues to worsen, as we drill farther and deeper than ever before and get more of our energy from marginal crude sources like tar sands.”

Dinneen also said recent research shows that the lifecycle GHG emissions associated with Brazilian sugarcane ethanol production are worse than originally estimated by EPA for the RFS2. Harvested sugarcane area in Brazil has expanded 55 percent since 2006, with at least 70 percent of that expansion occurring on previous pasture land, research shows. EPA’s analysis assumed virtually no land use change emissions for sugarcane ethanol.

The RFA letter summarizes the results of numerous recent studies and data showing that EPA overestimated ethanol plant energy use, corn farming energy use, and land use change (LUC) emissions. “Indeed, improved modeling and better data show that the corn ethanol process is more efficient and producing less GHG emissions today than EPA assumed would be the case in 2022,” the letter states. On the issue of land use change, Dinneen wrote, “…based on newer data and improved methodologies, the independent estimates of corn ethanol LUC produced since the RFS2 was finalized have generally trended in the range of 8-18 g/MJ. This compares to EPA’s net LUC emissions estimate for corn ethanol of 28.4 g/MJ.”

When recent modeling and data improvements are combined into one analysis, as was done in a recent peer-reviewed paper by researchers at Purdue University and the Department of Energy (DOE), the results are striking. The Purdue and DOE scientists found corn ethanol, on average, reduces GHG emissions today by at least 24 percent compared to gasoline even with speculative LUC emissions included. GHG reductions for ethanol from dry mill plants are even larger.

Dinneen said it is imperative that EPA recognizes this new science and data for several reasons. “EPA has been a leader in the field of biofuels lifecycle assessment, and initiating a process to update the RFS2 analysis ensures that the Agency maintains an active and relevant role in the scientific discussion around biofuel lifecycle GHG accounting,” he wrote. “Second, an effort by EPA to update its analysis will enhance the public’s understanding of corn ethanol’s lifecycle GHG impacts and serve to inform debate on future biofuels policies. In addition, updated analyses of corn and sugarcane ethanol will allow for fairer comparisons of the two fuels moving forward. Finally, updating EPA’s analysis would help ease the Agency’s workload and reduce the backlog of petitions for new pathways.”



EPA Approves Grain Sorghum Pathway

The Environmental Protection Agency (EPA) today announced it has approved grain sorghum as an eligible feedstock under the Renewable Fuels Standard (RFS).

The EPA’s annoncement is significant in allowing the domestic production of advanced biofuels from grain sorghum as envisioned in the 2007 Energy Bill. National Sorghum Producers has worked closely with EPA for 34 months to establish a biofuels pathway for grain sorghum-based ethanol in the RFS.

“This is a great day for the U.S. sorghum industry,” said NSP Chairman Terry Swanson, a sorghum grower from Walsh, Colo. “NSP has worked tirelessly for more than two years to make this happen. A pathway for grain sorghum as an advanced biofuel not only incentivizes ethanol plants to use grain sorghum as a biofuel feedstock, but it also adds value and profitability for the producer.”

In June, the EPA released a notice of data availability (NODA) concerning renewable fuels produced from grain sorghum under the RFS program, followed by a 30-day comment period. EPA’s analysis showed grain sorghum, when used to make ethanol at facilities that use natural gas, has a greenhouse gas (GHG) emissions reduction of 32 percent, qualifying it as conventional ethanol. This will give individual ethanol plants the ability to finalize their qualification process to produce advanced biofuels. NSP expects at least one existing ethanol plant to qualify very soon.

According to EPA, when grain sorghum is used to make ethanol at facilities that use biogas digesters in combination with combined heat and power technology, it achieves a lifecycle GHG emissions reduction of 53 percent, qualifying it as an advanced biofuel feedstock under the RFS.

Unfortunately, carbon dioxide capture was not included in the pathway. NSP will continue working with the EPA to get this completed to allow even more ethanol plants to produce advanced biofuels domestically.



Jim Mulhern to Join NMPF Staff as Chief Operating Officer

The National Milk Producers Federation (NMPF) announced today that Jim Mulhern, a veteran public affairs professional with three decades of government policy and communications experience in Washington, DC, will join the NMPF staff January 1st, 2013, as Chief Operating Officer.

Mulhern’s position is a new one within NMPF. He will report directly to President & CEO Jerry Kozak and have direct oversight of the communications, government relations, and membership functions of the organization.

“As the scope of NMPF’s activities has broadened in recent years, and as we plan for the future, we are fortunate to bring Jim on board to help the organization and its members with the significant challenges our industry is facing,” Kozak said. “Jim’s deep knowledge of both the dairy industry and Capitol Hill, coupled with his demonstrated ability to get things done, will greatly benefit National Milk. His strategic insight and extensive network of contacts both inside and outside the Beltway perfectly complement our existing capabilities.”

Mulhern has an extensive dairy industry background, including earlier work with NMPF. A Wisconsin native and a graduate of the University of Wisconsin, Mulhern began his professional career working for a dairy cooperative in Madison.

Mulhern came to Washington, DC, to work on Capitol Hill in 1983. He first joined the staff of NMPF in 1985 before returning to Capitol Hill to serve as Chief of Staff to Wisconsin Senator Herb Kohl. Mulhern has since worked in senior management positions for Fleishman-Hillard, the Fratelli Group, and Watson/Mulhern LLC. Throughout his time at each of these Washington, DC, public affairs companies, Mulhern maintained his relationship with NMPF by working as a consultant to the organization on numerous projects.

“I am very excited by the opportunity to return to NMPF in this leadership capacity,” Mulhern said. “I have been privileged to work on issues of importance to the nation’s dairy producers throughout my career, and I’m looking forward to expanding those efforts.”

“We are pleased to welcome Jim back to NMPF next month, where he will bolster our team of professionals working on issues as diverse as farm policy, immigration reform, trade expansion, environmental regulation, animal care, and milk pricing,” Kozak said.



CWT Assists with 2.4 Million Pounds of Cheese, Butter, and Whole Milk Powder Export Sales

Cooperatives Working Together (CWT) has accepted 10 requests for export assistance from Bongards, Dairy Farmers of America, Darigold, Maryland & Virginia Milk Producers Cooperative, and Michigan Milk Producers Association to sell 1.285 million pounds (583 metric tons) of Cheddar and Monterey Jack cheese, 1.058 million pounds (480 metric tons) of butter, and 85,890 pounds of whole milk powder (WMP) to customers in Asia and the Middle East. The product will be delivered December 2012 through February 2013.

In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack, and Gouda cheese totaling 113.6 million pounds, butter totaling 70.5 million pounds (adjusted for cancellations), anhydrous milk fat totaling 127,868 pounds, and WMP totaling 171,961 pounds. The product is going to 36 countries on four continents. On a butterfat basis, the milk equivalent of these exports is 2.590 billion pounds, or the same as 75% of the increase in U.S. milk production through October 2012.

Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by helping to maintain inventories of cheese and butter at desirable levels. 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.



USDA Dairy Products October 2012 Highlights

Total cheese output (excluding cottage cheese) was 928 million pounds, 3.2 percent above October 2011 and 6.3 percent above September 2012.  Italian type cheese production totaled 388 million pounds, 0.9 percent above October 2011 and 4.8 percent above September 2012.  American type cheese production totaled 371 million pounds, 5.1 percent above October 2011 and 6.1 percent above September 2012.  Butter production was 146 million pounds, slightly above October 2011 and 6.8 percent above September 2012.

Dry milk powders (comparisons with October 2011)
Nonfat dry milk, human - 95.0 million pounds, down 5.6 percent.
Skim milk powders - 45.6 million pounds, up 8.7 percent.

Whey products (comparisons with October 2011)
Dry whey, total - 76.0 million pounds, down 1.9 percent.
Lactose, human and animal - 83.0 million pounds, down 0.4 percent.
Whey protein concentrate, total - 37.0 million pounds, down 0.8 percent.

Frozen products (comparisons with October 2011)
Ice cream, regular (hard) - 64.0 million gallons, up 6.1 percent.
Ice cream, lowfat (total) - 31.6 million gallons, down 6.6 percent.
Sherbet (hard) - 3.06 million gallons, up 18.5 percent.
Frozen yogurt (total) - 4.60 million gallons, up 4.2 percent.



USDA to Survey Sheep and Goat Producers
This January, the U.S. Department of Agriculture's National Agricultural Statistics Service (NASS) will reach out to producers throughout the United States for the annual Sheep and Goat Survey. The survey provides critical information on breeding and marketing herds, as well as lamb and kid crops in the United States.

"NASS will contact sheep and goat producers in Pennsylvania during the first two weeks of January to obtain animal inventory and lamb and kid crop information," said Kevin Pautler, Director, NASS PA Field Office. "Results of this survey will provide the latest information on conditions and trends in the U.S. sheep and goat industry for 2013."

Producers selected to participate in the January survey will be asked to provide information on inventory of breeding and market sheep and goats, as well as lambs and kids born. For convenience, producers have the option of responding to the survey by telephone, mail, during a personal interview, or online.

"The results of the Sheep and Goat Survey are primarily used by producers themselves to help determine their production and marketing strategies," added Pautler. "This information also increases consumer understanding and awareness of the benefits of U.S. sheep and goats and their products."

Pautler noted that, as is the case with all NASS surveys, information provided by respondents is confidential by law. NASS safeguards the privacy of all survey responses ensuring that no individual operation or producer can be identified.

Results will be published in the Sheep and Goats report, scheduled for release on February 1, 2013.



ADM Raises Offer to Buy GrainCorp by 3.8% to A$2.8 Billion

Archer Daniels Midland Co. (ADM) has sweetened its takeover bid for Australia's GrainCorp Ltd. by 3.8%, a deal that now values the world's second-largest wheat exporter at about A$2.8 billion.

ADM is now offering GrainCorp shareholders A$12.20 a share in cash, up from its October offer of A$11.75. Archer noted that the new offer represents a 40% premium to the last closing price of GrainCorp shares on the day before the initial offer was unveiled.

Shareholders would keep the dividend of A$0.35 announced Nov. 15.

"Our proposal also offers more certainty, greater value and immediate realization of potential future value for GrainCorp shareholders than GrainCorp's standalone plan," Archer Daniels Chief Executive Patricia Woertz said. She added that the revised proposal takes into account GrainCorp's results for the year, certain new initiatives and its recently announced ordinary and special dividends.

ADM owns 19.9% of GrainCorp's shares, the maximum allowed under the Australian Foreign Investment Review Board.

Last month, GrainCorp rejected Archer's offer, saying it "materially undervalued" its business as it reported its third-consecutive year of record profit -- up 19% for the fiscal year ended September.

In October, ADM reported its first-quarter earnings slumped 60%, as tight U.S. grain supplies limited its grain-trading opportunities and triggered losses in its ethanol business. Both Fitch Ratings and Standard & Poor's placed ADM on watch for a potential credit downgrade following the bid for GrainCorp, citing concerns that the deal could increase the company's debt pile, and Archer has since said it plans to sell its stake in Mexican corn flour maker Gruma SAB (GMK) to help finance the deal.

ADM has also faced opposition from Australian politicians such as Shadow Treasurer Joe Hockey. Critics fear international companies will exploit Australia's natural resources without any concern for the long-term impact.



CRA Calls for Caution in Consideration of Study Alleging HFCS-Diabetes Link

A study released last week by researchers from the University of Southern California and Oxford University claiming to find a unique link between high fructose corn syrup and Type 2 diabetes is flawed both in its design and conclusions, according to the Corn Refiners Association.

Authored by Dr. Michael I. Goran, the report has met with severe criticism for failing to account for the widespread agreement among scientists and medical doctors that HFCS and sucrose (table sugar) are nutritionally equivalent. 

"This latest article by Dr. Goran is severely flawed, misleading and risks setting off unfounded alarm about a safe and proven food and beverage ingredient," said CRA President Audrae Erickson.  "There is broad scientific consensus that table sugar and high fructose corn syrup are nutritionally and metabolically equivalent.  It is, therefore, highly dubious of Dr. Goran--without any human studies demonstrating a meaningful nutritional difference between high fructose corn syrup and sugar--to point an accusatory finger at one and not the other.  Dr. Goran commits the most fundamental of research errors:  Just because an ingredient is available in a nation's diet does not mean it is uniquely the cause of a disease."

In her statement, Erickson explained one of the study's flaws in that it fails to account for factors which have commonly been held as direct factors in the development of Type 2 diabetes.

"If this study shows anything, it is that there is an association between body mass index and diabetes prevalence," she said. "Take for example, Japan, where the average BMI is 22.59, and Mexico, where the average BMI is 27.59.  Even though Japan consumes more HFCS every year than Mexico, the prevalence rates of diabetes in Japan are about half of Mexico.  This example alone shows that Dr. Goran's hypothesis is totally flawed."

Erickson also noted that Goran, whose repeated claims against HFCS have often been refuted, relies upon the work of scientists which has already been widely discredited.

"This is not the first time HFCS detractors have tried to use statistical analysis to 'suggest' a unique causal link between HFCS and obesity," she explained. "The co-authors of the infamous 2004 Bray and Popkin paper, which Dr. Goran relies on, now admit they reached an erroneous hypothesis.  As one author of the 2004 paper confirmed, 'All sugar you eat is the same, that's what we know now that we didn't know in 2004.'"

Noting that rigorous, credible scientific inquiry into the health effects of sweeteners is essential to advancing our understanding of a healthy diet, Erickson summarized the study as the latest in a quest  to condemn high fructose corn syrup that crosses the line from science to advocacy. 

"The bottom line is this is a poorly conducted analysis, based on a well-known statistical fallacy, by a known detractor of HFCS whose previous attack on the ingredient was deeply flawed and roundly criticized," she concluded. "The common sense message for consumers to understand is to watch their intake of all extra calories, including all added sugars."

In addition to Erickson's statement, CRA also released a statement from University of Central Florida Professor of BioMedical Sciences James M. Rippe, M.D., who consults for CRA.

"Diabetes is a complex disease with many underlying factors," said Dr. Rippe. "It is highly unlikely that one component of the diet is uniquely related to diabetes. There are well-established links between obesity and diabetes. That is where we should be focusing our attention rather than vilifying one component of the diet."