Nebraska Cattlemen Members Adopt Policy to Address Issues
From inheritance tax to immigration to beef check off, members of Nebraska Cattlemen adopted polices at their annual meeting on December 7th to define their stands on some issues that could come under legislative or rule making discussions. “The members of Nebraska Cattlemen came together this past week to position themselves on current topics affecting the beef industry,” said newly elected Nebraska Cattlemen President Dale Spencer of Brewster.
The following are brief overviews of new policies that were brought forth:
Antimicrobials – AN R 2012
Cattle and beef producers need access to antimicrobials in a timely manner to maintain healthy animals and prevent diseases. Nebraska Cattlemen supports judicious us of antimicrobials by cattle producers and supports risk assessments, government approval procedure, and guidance rules that are based upon peer reviewed sound science from the appropriate species.
Use of Out-Of-State Brand – BP R 2012
Producers from other states purchase cattle in Nebraska and occasionally need to have the cattle branded with an out-of-state brand prior to loading for movement, because this is currently illegal, Nebraska Cattlemen support legislation to allow a one-time permit be issued to apply an out-of-state brand.
Aerial Surveillance – BPR R 2012
Nebraska Cattlemen asks for the immediate cease of aerial surveillance being conducted by the Environmental Protection Agency (EPA) due to the blatant violation of private property rights of businesses, residents and adjoining businesses and residents.
Updated Brand Statutes – BPR R 2012
Due to needed updates in brand inspection laws, Nebraska Cattlemen will seek legislation that will update and better reflect the current industry as well as resetting fees to keep the inspection system viable.
Alternatives to Hot and Freeze Brands – BPR PS 2012
Nebraska Cattlemen supports the study of alternatives to hot iron and freeze branding methods that new technology may contribute.
FCM Insurance Program – MC R 2012
Due to the effects of the bankruptcy of CME clearing member MF Global, Nebraska Cattlemen urges the development of an insurance program for Futures Commission Merchants (FCM’s) that would protect the value of excess customer funds on deposit in futures margin accounts.
Nebraska State Beef Checkoff – MC R 2012
A working group has come together to discuss the idea of a producer driven, state-base beef checkoff program and released a white paper with preliminary recommendations and is now leaving it up to Nebraska beef producers to consider the issue. Nebraska Cattlemen will work with other beef organizations to conduct a series of a minimum of 9 producer input meetings to further refine the recommendations. Upon approval of the majority of Nebraska beef producers, legislation will be sought to implement such a plan.
Immigration Reform – MC R 2012
Due to needed updates in current immigration laws and that the beef industry relies on immigrants as a substantial portion of its labor force, Nebraska Cattlemen supports federal and state immigration reform legislation that creates items such as, a non-seasonal guest worker program, eliminates barriers for authorized immigrants to purse permanent residence, creates a skilled agricultural worker preference category for visas, allows beef producers to employ H2A visa holders year round, etc. Nebraska Cattlemen also supports education and informational campaigns to increase awareness of immigration issues as they impact the beef industry.
Nebraska Inheritance Tax
Since inheritance tax is paid to county governments, elimination of the Nebraska inheritance tax would result in pressure to replace lost revenue by increasing property taxes. Nebraska Cattlemen supports continuation of the existing Nebraska inheritance tax.
If you would like to see the language of each policy in its entirety, please contact the Nebraska Cattlemen office at 402.475.2333.
Nebraska Cattlemen Members Elect New Leadership
With the 2012 Nebraska Cattlemen Convention, which was held December 5-7th in Kearney, under the boots of Nebraska Cattlemen members, NC is proud to announce the newly elected leadership for the 2013 year.
The following are the newly elected:
Officers
President – Dale Spencer, Brewster
President-Elect – Jeff Rudolph, Cozad
Vice President – Dave McCracken, Friend
Past President – Jim Ramm, Atkinson
Council Leadership
Farmer Stockman Chairman – Chris Bolte, Burning
Farmer Stockman Vice Chairman – Kevin Sladkey, Wahoo
Feedlot Chairman – Mike Drinnin, Columbus
Feedlot Vice Chairman – Bill Rhea, Arlington
Seedstock Chairman – Loren Berger, Stapleton
Seedstock Vice Chairman – Todd Eggerling, Martell
Committee Leadership
Brand & Property Rights Chairman – Jay Martindale, Brewster
Brand & Property Rights Vice Chairman – Paul Schipporeit, Sumner
Natural Resources & Environment Chairman – Bill Bose, Orleans
Natural Resources & Environment Vice Chairman –Chris Schluntz, Republican City
Nebraska CattleWomen Consumer Education and Promotion Chairman – Kelli Loos, Litchfield
Nebraska CattleWomen Consumer Education and Promotion Vice Chairman – Tammy Hansen, Brady
Members Services Vice Chairman
Region 4 – Kurt Kruse, Albion
Region 6 – Tony White, Paxton
“This year’s convention was a huge success. Not only was the time filled with great speakers and presentations, but constructive conversations were sparked by the membership”, said 2013 Nebraska Cattlemen President Dale Spencer. “As leadership, we look forward to serving Nebraska Cattlemen in 2013.”
Cattlemen Honor Leaders in the Beef Industry
The 2012 Nebraska Cattlemen Annual Convention Banquet began on the eve of December 6th. The Master of Ceremonies, Chris Calkins, University of Nebraska Professor of Animal Science, entertained the audience as he introduced industry leaders and speakers.
Governor Heineman addressed the attendees and Baxter Black, Cowboy Humorist, gave the crowd quite a show as he entertained the audience with his charismatic wit.
Nebraska Cattlemen had the honor of presenting two great awards to individuals who have shown exceptional dedication to the cattle industry while helping beef producers raise high quality beef. Dr. Weldon Sleight, Dean of Nebraska College of Technical Agriculture, was honored with the 2012 Nebraska Cattlemen Industry Service award. The Cattle Industry Service award recognizes those for their outstanding service to the Nebraska beef industry through their dedication and commitment to helping shape the beef industry.
The evening concluded with the Nebraska Cattlemen Hall of Fame honoree, Bill Rishel of North Platte. The Hall of Fame Award is Nebraska Cattlemen’s most prestigious award given to those individuals who have played a role in shaping, promoting and preserving the beef industry.
Nebraska Cattlemen Foundation announces two new youth scholarships
The Nebraska Cattlemen Foundation announced during the Nebraska Cattlemen Annual Convention and Trade show the establishment of two new youth scholarship funds – the Colonel Melvin Huss Memorial and the Clarence and Lois Jean Hartmann scholarship funds.
Colonel Melvin Huss was a well-known auctioneer, cattlemen and livestock market owner. Melvin got his start in the livestock marketing business in the Omaha Stockyards, attended auctioneer school in Mason City, Iowa, and then moved to McCook where he auctioned at the livestock market. Melvin managed the Oberlin, Kansas Livestock Market and the Lexington Livestock Market which he later purchased along with the Kearney Livestock Market. Melvin attributed the success of the livestock markets to his loyal and dedicated wife, Delores, his partners, employees and his loyal customers and buyers. A $25,000 endowed memorial scholarship account had been created by the family to honor Melvin. This fund will provide an annual $1,000 scholarship to a student at the University of Nebraska Lincoln majoring in Animal Science with an emphasis in beef production.
The Clarence and Lois Jean Hartmann scholarship fund is being established with an initial donation of $10,000 from the Nebraska Cattlemen Beef Pit Committee. Clarence passed away on November 8 at the age of 87. Clarence and Lois Jean farmed and fed cattle for over 50 years in the Hooper area. Clarence was very active in the Dodge County Cattlemen, Nebraska Cattlemen, and National Cattlemen's Beef Association, holding several offices and directorships. Clarence and Lois Jean also were on the original committee that established the Nebraska Cattlemen's Beef Pit at the Nebraska State Fair and worked the Beef Pit for many years. This fund, once fully endowed at the $25,000 level, will provide an annual $1,000 scholarship a high school senior or college student enrolled or intending to enroll full time in any college or university that offers a bachelor degree, an approved vocation or trade school, or a state accredited junior college.
Nebraska Cattlemen Foundation Honors Industry and University Professionals
Nebraska Cattlemen Foundation (NCF) President, Loretta Hamilton presented the Friend of the Foundation Award and Nebraska Beef Industry Endowment grants at the NCF lunch program held December 6th during the Nebraska Cattlemen Annual Convention and Trade Show.
The Friend of the Foundation award is presented annually to a person and/or business that has shared endless amounts of time, talent and/or treasure with the Nebraska Cattlemen Foundation. The 2012 recipient announced was Bill Pullen with Bill’s Volume Sales, Inc. who have been long time donors and supporters to NCF and its programs. Bill's Volume Sales, Inc. is a service oriented company started in 1963 and offers complete sales and service for major brands of feed mixers.
The Nebraska Beef Industry Endowment was established in December 2009 and provides a $5,000 grant to beef industry-related research and/or teaching positions at Nebraska post-secondary educational institutions. This award honors those professors or instructors that are providing cutting edge research and/or student instruction in a beef industry related area. For 2012, the Foundation awarded two grants – one to Dr. Rick Funston and one to Dr. Jerry Volesky. Dr. Rick Funston is an Associate Professor at the University of Nebraska as a Beef Reproductive Physiology Specialist. Rick is known throughout the country for his cutting edge research with heifer development and fetal programming effects on subsequent reproductive performance in heifer calves. Dr. Volesky is a Professor at the University of Nebraska as an Extension Range and Forage Specialist. Dr. Volesky’s primary area of research is on grazing management and systems. The majority of this work is conducted on Sandhills rangeland at the Gudmundsen Sandhills Laboratory near Whitman or the Barta Brother Ranch located south of Long Pine.”
Cancrete Waterers supports Nebraska Cattlemen Foundation
Funding for Nebraska youth and beef research are high priorities for the Nebraska Cattlemen Foundation (NCF). Advanced Agri-Direct/Cancrete Cattle Waterers out of York, Nebraska have teamed up with the NCF to support their efforts.
During 2012, Cancrete Cattle Waterers donated $25 to NCF for every waterer that it sold. “We want our money to go to programs that make it attractive for young people to get a higher education and stay in the cattle business,” said Shaun Held, Advanced Agri-Direct (USA) Inc. General Manager.
The first donation check was presented at the Nebraska Cattlemen Midyear Meeting in Atkinson last June and the second donation was presented at the recent Nebraska Cattlemen Annual Convention and Trade Show. “With the tremendous success this program had this year, Advanced Agri-Direct/Cancrete Cattle Waterers will be continuing the program for 2013,” says Heldt.
“NCF thanks Cancrete for their support. We at the Foundation are working to improve and advance the beef industry,” stated Loretta Hamilton, President of the Nebraska Cattlemen Foundation. “Cancrete’s backing is very much appreciated and we want to thank them for recognizing the need to support the beef industry.”
For more information on Cancrete Cattle Waterers and their support of the Nebraska Cattlemen Foundation, contact Shaun Heldt at 866.398.5546. For more information concerning NCF, contact Lee Weide, Nebraska Cattlemen Vice President of Operations at 402.475.2333 or Jana Jensen, NCF Fundraising Coordinator at 308.588.6299.
Smith Says Changes to School Lunch Regulations are a Step in the Right Direction, More Flexibility Needed
Congressman Adrian Smith (R-NE) released the following statement on changes to school lunch regulations allowing more meat and grains in meals:
“I appreciate the Department of Agriculture’s decision to allow for more grains and meat in school meals. These changes are a step in the right direction and should be made permanent. However, parents and local officials will need additional flexibility to implement the school lunch program to effectively meet their budgets and the nutritional requirements of their students. These decisions are best made at the local level.”
The new school meal requirements stem from the Healthy, Hunger-Free Kids Act of 2010. This legislation gave USDA the authority to set nutritional standards for all food regularly sold in schools, including cafeterias, school stores and vending machines. The legislation failed to adequately consider budget limitations faced by school lunch providers and provided no credit to schools already taking steps to offer students healthier choices.
In light of the feedback from officials, parents, and students across Nebraska surrounding the implementation of the new meal standards, Smith sent a letter to USDA Secretary Tom Vilsack in September. In the letter, Smith asked the department to review the current guidelines; to consider abandoning the bureaucratic and burdensome approach to school meal planning; for local officials to be given more flexibility in implementing the guidelines; and for the USDA to conduct a thorough evaluation of cost and participation rates across the county.
Iowa Farmland Value Reaches Historic $8,296 Statewide Average
Average Iowa farmland value is estimated to be $8,296 per acre, an increase of 23.7 percent from 2011, according to results of the Iowa Land Value Survey conducted in November. This is the third year in a row where values have increased more than 15 percent. The 2012 values are historical peaks.
The increase is somewhat higher than results of other recent surveys of Iowa farmland value: the Chicago Federal Reserve Bank estimated an 18 percent increase in Iowa land values from October 2011 to October 2012 and the Iowa Chapter of the Realtors Land Institute estimated a 7.7 percent increase from March to September 2012.
“The difference in survey estimates could be due to values increasing more rapidly in the past few months than earlier in the year. Better than expected crop yields and the level of land sale activity due to the proposed changes in land related taxes contributed to the increasing values,” said Mike Duffy, Iowa State University economics professor and extension farm management economist who conducts the survey. “The Iowa State survey samples different populations, and uses different wording than the other surveys. This could also lead to different results especially in times of uncertainty. Even within the Iowa State survey there was considerable variation in the estimates.”
O’Brien County had an estimated $12,862 average value, the highest average county value. O’Brien County also had the highest percentage increase and highest dollar increase in value, 35.2 percent and $3,348, respectively. Osceola, Dickinson and Lyon counties also saw 35.2 percent increases. The Northwest Crop Reporting District, which includes all four counties, reported the highest land values at $12,890, an increase of $3,241 (33.6 percent) from 2011.
“The 2012 land value survey covers one of the most remarkable years in Iowa land value history,” said Duffy. “This is the highest state value recorded by the survey, and the first time county averages have reached levels over $10,000. While this is an interesting time, there is considerable uncertainty surrounding future land values.”
Why Iowa farmland values are increasing
Duffy said understanding some of the causes for the current increase in farmland values is helpful in assessing the situation. Farmland values are highly correlated with farm income. As farm income increases, so will land values. In 2005, corn prices averaged $1.94 per bushel in Iowa. The preliminary estimated price for November 2012 is $6.80. Soybean prices changed from $5.54 to $13.70 over the same period. Coming into 2012 there was a general sentiment that prices would decline from their peaks. But, the drought changed this and the prices remained at high levels. How long the high prices will last is unknown.
There has been considerable variation in commodity prices over the past few years, but farm income has increased substantially. The Iowa State economist goes on to say, the increase in income has been the primary cause for the increase in farmland values, but not the only one.
“There are other causes for the increase,” Duffy said. “Interest rates are at the lowest level in recent memory. Farmland purchased by investors went from 18 percent in 1989 to 39 percent of purchases in 2005, but investor purchases are back to the 1989 level of 18 percent this year after decreasing for the third year in a row.”
Another key component is the costs of production. In the past, costs have risen in response to higher commodity prices. This is especially true for rents. Iowa State University estimated costs of crop production have shown a 61 percent increase in the cost per bushel since 2005. Without land, the increase has been 87 percent.
Duffy believes there is still discipline in the land market, while land values have increased 64 percent in the past three years, in 2009 values did decrease by 2.2 percent. Therefore, it is prudent to be mindful of the factors that influence land values. The economist said there are several key components to watch:
- Weather related problems – both here and around the world
- Government policies – especially policies related to estate and capital gains tax rates
- The amount of debt incurred with land acquisition
- What happens to input costs – land being the residual claimant to any excess profits in agriculture
- Government monetary policies as they relate to inflation and interest rates
- The performance of the U.S. economy and economies throughout the world – which impact commodity prices, which in turn impact land values
Overview of 2012 Iowa land values
While the highest county land values were reported in O’Brien County, Decatur County remained the lowest reported land value, $3,242 per acre, and the lowest dollar increase, $521. Keokuk and Washington Counties had the lowest percentage increase, 14.8 percent, with reported average values of $6,330 and $8,226, respectively.
Low grade land in the state averaged $5,119 per acre and showed a 20.2 percent increase or $862 per acre, while medium grade land averaged $7,773 per acre; high grade land averaged $10,181 per acre. The lowest land value was estimated in the South Central Crop Reporting District, $4,308, while the lowest percentage increase was in the Southeast Crop Reporting District with an 8.2 percent increase. The Northwest Crop Reporting District reported a 36.8 percent increase, the highest district average percentage reported. Maps showing 2012 values, percentage change and comparisons to 2011 data and additional information from Duffy are available at www.extension.iastate.edu/topic/landvalue.
The Iowa Land Value Survey was initiated in 1941 and is sponsored by the Iowa Agriculture and Home Economics Experiment Station, Iowa State University. Only the state average and the district averages are based directly on the Iowa State survey data. The county estimates are derived using a procedure that combines survey results with data from the U.S. Census of Agriculture.
The survey is based on reports by licensed real estate brokers and selected individuals considered knowledgeable of land market conditions. The 2012 survey is based on 486 usable responses providing 663 county land value estimates. The survey is intended to provide information on general land value trends, geographical land price relationships and factors influencing the Iowa land market. It is not intended to provide an estimate for any particular piece of property.
Nominations for Renewable Fuels Marketing Awards
Iowa Secretary of Agriculture Bill Northey encouraged Iowa fuel retailers and gas stations to submit nominations for the Secretary's Renewable Fuels Marketing Awards, which recognize fuel retailers that have gone above and beyond in their efforts to sell renewable fuels. Awards are presented for both the marketing of ethanol and biodiesel.
"Fuel retailers continue to take steps to make ethanol and biodiesel more available to Iowa customers and this award is an opportunity to recognize those who have shown leadership in promoting these renewable fuels and making them more available to customers," Northey said.
Qualifying entities will be those that market the renewable fuels they have available through creative efforts including, but not limited to: hosting special events highlighting their renewable fuels, development of creative signage, initiation of new advertisements or marketing efforts, and efforts dramatically increase renewable fuel availability.
Nominations forms can be found on the Iowa Department of Agriculture and Land Stewardship's website at www.IowaAgriculture.gov. Completed nominations can be submitted via email at Dustin.VandeHoef@iowaagriculture.gov or mail at Henry A. Wallace Building, Attn: Dustin Vande Hoef, 502 East 9th Street, Des Moines IA 50319. Nominations must be submitted by Dec. 31, 2012.
This is the sixth year for the award. Last year Jim Mulgrew of Mulgrew Oil Company and Greg Emick of W&H Cooperative in Humboldt were recognized.
Iowa leads the nation in the production of ethanol and biodiesel. According to the Iowa Renewable Fuels Association, Iowa has 41 ethanol refineries with the capacity to produce nearly 3.7 billion gallons annually. Iowa also has 13 biodiesel refineries with a combined annual capacity of over 320 million gallons.
The Iowa Renewable Fuels Infrastructure Program offers cost-share grants for the installation of E85 dispensers, blender pumps, biodiesel dispensers, and biodiesel storage facilities. The grant program is managed by Iowa Department of Agriculture and Land Stewardship and more information can be found on the Department's website at www.IowaAgriculture.gov.
McGrath Named 2012 Iowa 'Woman in Ag'
Two of Beth McGrath's passions are teaching and farming and she strives to do both every day. The former teacher and current farmer from Woodbury County is a life-long learner who strives to share information with a variety of audiences, ranging from farm wives to state legislators. Her commitment to agriculture has earned her the Iowa Farm Bureau's 2012 Woman in Agriculture honor, an annual tribute that recognizes one woman who demonstrates outstanding leadership abilities in the promotion of agriculture. The announcement was made at the Iowa Farm Bureau Federation's (IFBF) 94th annual meeting in Des Moines.
McGrath farms with her husband near Lawton, running a no-till soybean and corn operation and raising a small cow-calf herd. McGrath takes the lead on several duties, including the planting and combining, pasture care and loading semi-trucks. She also keeps the business' books and works with her husband when marketing grain.
In addition to her farm work, McGrath is active in a variety of education-based initiatives including IFBF's state Ag in the Classroom committee, Ag Leaders program and the Woodbury County Farm Bureau board of directors and women's committee. She is also involved with Women in Denim, Council on Sexual Assault and Domestic Violence and Ronald McDonald House.
"Farm women have always been responsible for the health, nutrition and well-being of their families, but never have we faced so many issues concerning them," said McGrath. "We are just as responsible for the security and environmental issues surrounding our families."
She credits Farm Bureau educational opportunities for helping her to become more involved with the family farm and encouraging her to be more active in sharing agriculture's concerns with local and state leaders.
"Farm Bureau has enriched my knowledge of farming, as a whole and I am much more in tune with the issues facing farmers, both locally and nationally," said McGrath. She said women play important roles on their farming operations and in their communities. She encourages women to be more aware of the many issues facing agriculture, including immigration, taxes, economics and regulations.
"Women own a huge percentage of farm ground (in Iowa) and we need to be able to address issues concerning that land," said McGrath.
McGrath's recognition includes a plaque, a $250 cash prize and up to $500 to cover expenses for an Iowa conference for women.
Former MF Global Employee Admits Fault
A former commodities trader for MF Global Holdings Ltd. on Tuesday admitted guilt in a rogue trading episode that rocked the brokerage firm nearly five years ago and set in motion the events that led to its collapse.
Evan Dooley, previously an "associated person" in the Memphis, Tenn., office of MF Global, pleaded guilty Tuesday to futures trading violations in 2008 that drove a $141 million loss for MF Global, according to authorities.
Mr. Dooley, whose trades jostled prices in wheat markets in February 2008, couldn't immediately be reached for comment. His lawyer didn't respond to a request for comment.
The episode triggered senior management changes at MF Global and raised red flags over its internal risk controls, ultimately leading to the arrival of private equity investor J. Christopher Flowers, who helped in 2010 to install former New Jersey Gov. Jon Corzine as MF Global's chief executive. Mr. Corzine's outsized bets on European sovereign debt a year and a half later contributed to the firm's October 2011 collapse.
Mr. Dooley, of Olive Branch, Miss., admitted to two counts of exceeding government limits on speculative commodity trading, according to a statement from the U.S. district attorney for the Northern District of Illinois. Mr. Dooley, 44 years old, is due to be sentenced in March and faces a maximum sentence of 10 years in prison and a $1 million fine. He has also agreed to pay restitution to MF Global, which filed for bankruptcy Oct. 31, 2011.
As an employee with access to MF Global's system used for entering futures orders, Mr. Dooley used this Feb. 26, 2008, to buy and sell nearly 32,000 wheat futures contracts, according to a plea agreement released Tuesday by the U.S. government.
By 6 a.m. Central time the following morning, Mr. Dooley had piled up an approximate 16,000-contract position, amounting to an $872 million wager that wheat prices would fall in trading on the Chicago Board of Trade.
The position was nearly three times the legal limit allowed under U.S. futures law, according to Tuesday's plea agreement. Prices of the contracts shot higher throughout the morning as Mr. Dooley tried to unwind his position, confusing traders at the futures exchange.
New Avian Flu Outbreak Hits China
An outbreak of highly pathogenic avian influenza has been reported to the OIE. The outbreak of avian flu, subtype H5N2, was reported by Dr Kwo-Ching Huang, Chief Veterinary Officer and Deputy Director General, Bureau of Animal and Plant Health Inspection and Quarantine Council of agriculture, Chinese Taipei.
Clinical suspected cases were notified by the owner because of the abnormal mortality rate. The local government conducted movement restriction, epidemiological investigation and sampling on the index native chicken farm and destroyed all chickens as the measure for precaution on 22 November 2012 in accordance with its authority.
The results of pathogenicity tests confirmed this event as H5N2 HPAI. The clinical and epidemiological investigation of three surrounding poultry farms was conducted. No other NAI case was detected.
In total, there were 300 cases, with 200 deaths and 631 birds were destroyed.
OPEC Considers Oil Output
(AP) -- Tough decisions await OPEC oil ministers sitting down this week for a policy meeting. The 12-nation cartel has to deal not only with how much crude to produce for the next few months but must also fill a senior position coveted both by Saudi Arabia and archrival Iran.
With world supplies ample, there is some rationale for curbing output when the ministers meet Wednesday in Vienna.
Oil inventories in the major industrialized countries are high, with an energy boom in non-OPEC member resulting in stocks of oil at their most plentiful there since 2008. Meanwhile, the Organization of the Petroleum Exporting Countries is pushing out over 31 million barrels a day. That's substantially more than its official daily ceiling of 30 million barrels and the highest in four years, when calculated over a year.
But other factors suggest there may be no change.
The world economy remains weak, despite some signs of a halting recovery in the United States and a bottoming out in the downturn in China. Reducing output now would spike prices, endangering the fragile recovery and further cutting back on the world's oil consumption.
Then there is the "fiscal cliff." The U.S. risks slipping into recession if hundreds of billions of dollars in expiring tax cuts and automatic spending reductions take effect on Jan. 1. Mideast tensions focused on Syria, Israel and the Palestinians and Iran's nuclear program could also drive up prices, even without any OPEC cutbacks.
As always, the price of a barrel of crude is likely to be the main decider.
Welcome to the KTIC Agriculture Information blog!!! Check back here for the latest in ag news and information, from local events to international happenings and government reports that affect your operation. Please email with suggestions! -Chad Moyer, Farm Director, KTIC Radio
Tuesday, December 11, 2012
WASDE Dec 11, 2012
World Agricultural Supply and Demand Estimates
United States Department of Agriculture 12-11-12
WHEAT:
Projected U.S. wheat ending stocks for 2012/13 are raised 50 million bushels reflecting lower prospects for exports again this month. Projected exports are lowered 50 million bushels reflecting the slow pace of sales and shipments to date and higher expected competition from foreign supplies. U.S. exports are projected 45 million bushels lower for Hard Red Winter wheat, 10 million bushels lower for Soft Red Winter wheat, and 5 million bushels lower for Hard Red Spring wheat. White wheat exports are raised 10 million bushels. The projected 2012/13 season-average farm price for all wheat is lowered 10 cents at the midpoint and the range is narrowed to $7.70 to $8.30 per bushel.
Global wheat supplies for 2012/13 are projected 1.6 million tons higher as a 3.7-million-ton increase in world production more than offsets lower beginning stocks mostly reflecting higher 2011/12 wheat feeding for China. China wheat production for 2012/13 is raised 2.6 million tons based on the latest official estimates from the National Bureau of Statistics. Production for Australia and Canada are raised 1.0 million tons and 0.5 million tons, respectively, also based on the latest official government estimates. Partly offsetting these increases are small reductions for Brazil and EU-27.
Global wheat exports for 2012/13 are raised slightly this month. Exports are raised 0.5 million tons each for Australia, EU-27, and India, more than offsetting the U.S. reduction. Exports are lowered for Paraguay and Turkey. Imports are raised for Brazil, China, Iran, and Russia, but lowered for Turkey. Global wheat feeding for 2012/13 is raised slightly with reductions for EU-27 and Australia more than offset by increases for China, Canada, and Iran. For EU-27, higher corn imports and feeding offset the reduction in expected wheat feed use. World wheat ending stocks for 2012/13 are projected 2.8 million tons higher on increases for the United States, Australia, Russia, and EU-27.
COARSE GRAINS:
U.S. feed grain supply and use projections for 2012/13 are unchanged this month, but price outlooks for corn and sorghum are lowered based on prices reported to date. The season-average farm price for corn is lowered 20 cents at the midpoint and the projected range is narrowed to $6.80 to $8.00 per bushel. Prices received by farmers through October remained well below cash market bids and this year’s early corn harvest appears to have boosted early season marketings placing further downward pressure on the outlook for the season-average price. The season-average sorghum price is lowered 10 cents at the midpoint and the projected range is narrowed to $6.50 to $7.70 per bushel. The projected barley and oats season-average price ranges are narrowed 5 cents on each end to $6.10 to $6.80 per bushel and $3.55 to $4.05 per bushel, respectively.
Global coarse grain supplies for 2012/13 are projected 7.0 million tons higher mostly reflecting a larger reported corn crop for China. Beginning coarse grain stocks for 2012/13 are lowered 1.0 million tons in part reflecting higher 2011/12 corn exports for Argentina. Global 2012/13 corn production is raised 9.4 million tons with China corn output up 8.0 million tons based on recent estimates from the National Bureau of Statistics. Strong price incentives to expand corn plantings and favorable summer rainfall, particularly in the northeast provinces, support increases in area and yields raising them to new records. Corn production for Canada is raised 1.5 million tons this month to a new record on higher yields and a record area as reported by Statistics Canada. Russia corn production is raised 1.0 million tons, also a new record. Corn production is increased for North Korea and Chile, up 0.4 million tons, and 0.3 million tons, respectively. Offsetting these increases are reductions for Argentina, Moldova, and Ukraine corn, down 0.5 million tons each, with lower expected area for Argentina, lower area and yields for Moldova, and lower yields for Ukraine. Belarus corn production is also lowered 0.2 million tons.
Other notable 2012/13 coarse grain production changes this month include a 0.6-million-ton reduction for Canada barley, a 0.3-million-ton reduction for Australia sorghum, and 0.3-million-ton and 0.2-million-ton reductions, respectively, for Canada and Australia oats. All are based on the latest official estimates from Statistics Canada and the Australian Bureau of Agricultural and Resource Economics and Sciences.
Global 2012/13 coarse grain trade is increased mostly on higher expected corn imports and exports. Corn imports are raised 1.5 million tons for EU-27. Corn exports are raised 0.5 million tons each for Canada and Russia. Increases in local marketing year 2011/12 exports for Argentina, Paraguay, and South Africa support higher 2012/13 consumption this month for Northern Hemisphere countries. Global corn consumption for 2012/13 is raised 8.7 million tons mostly with increases of 6.0 million tons and 1.5 million tons, respectively, for China and EU-27 corn feeding. Corn feed and residual use is also raised for Canada and Russia, but lowered for Argentina, Ukraine, and Moldova. Corn food, seed, and industrial use is raised 2.0 million tons for China, also boosting global corn consumption. World corn ending stocks for 2012/13 are projected 0.4 million tons lower, mostly on reductions in Argentina, Colombia, and Ukraine. Small increases in a number of countries, including Canada, are partly offsetting.
OILSEEDS:
Total U.S. oilseed production for 2012/13 is projected at 91.3 million tons, down slightly due to a small reduction in cottonseed. Soybean crush is raised 10 million bushels to 1.570 billion due to strong foreign demand for soybean products. Soybean oil production is raised 460 million pounds on the increased crush and on a higher soybean oil extraction rate. Soybean oil exports are projected at 1.8 billion pounds, up sharply from 1.2 billion last month on exceptionally strong November sales of just over 700 million pounds to several markets including China, Mexico, and undeclared destinations. Soybean meal exports are raised 0.3 million short tons to 8.2 million on strong sales to EU-27, Egypt, and several Asian markets including the Philippines and South Korea. Soybean meal domestic use is reduced 0.1 million short tons to 29.4 million in line with current meat production forecasts. With soybean exports unchanged at 1.345 billion bushels, soybean ending stocks for 2012/13 are projected at 130 million bushels, down 10 million from last month.
Prices for soybeans and products are all projected lower this month. The U.S. season-average soybean price range for 2012/13 is projected at $13.55 to $15.55 per bushel, down 35 cents on both ends of the range. The soybean meal price is projected at $440 to $470 per short ton, down 15 dollars on both ends of the range. The soybean oil price range is projected at 49 to 53 cents per pound, down 2 cents on both ends.
Global oilseed production for 2012/13 is projected at 463 million tons, up 0.9 million tons from last month. Foreign oilseed production accounts for most of the change with increases projected for soybeans, cottonseed, and sunflowerseed only partly offset by reductions for rapeseed and peanuts. Global soybean production is projected at 267.7 million tons, up 0.1 million. Increased production for Canada is mostly offset by lower projections for EU-27 and Paraguay. Lower soybean production for Paraguay reflects reduced yields in line with historical production and yield revisions. Global rapeseed production is projected slightly lower as reduced estimates for Canada and EU-27 are mostly offset by a larger crop in Russia. Global sunflowerseed production is projected at 35.7 million tons, up 0.9 million as larger crops in EU-27, Russia, and India are only partly offset by a lower projection for Argentina. The Argentina crop is reduced on lower area reflecting the impact of excessive moisture throughout the planting season.
Global oilseed trade for 2012/13 is projected at 115.2 million tons, up 0.5 million from last month. Increased soybean exports from Canada and increased peanut exports from India account for most of the gains. Global oilseed ending stocks are projected at 66.9 million tons,up 0.3 million from last month reflecting higher rapeseed stocks in EU-27 and Australia.
LIVESTOCK, POULTRY, AND DAIRY:
The forecast for 2013 red meat and poultry production is reduced from last month as lower pork production more than offsets higher beef production. Beef production is raised as both fed and non-fed cattle slaughter is expected to be higher and forecast carcass weights are raised. Pork production forecasts are reduced from last month as first-quarter slaughter is expected to be slightly lower and carcass weights are reduced in the first half of the year. USDA will release the Quarterly Hogs and Pigs report on December 28, providing an indication of producer farrowing intentions for the first half of 2013. Poultry production forecasts for 2013 are unchanged. For 2012, the total meat production forecast is raised as higher forecast fourth-quarter beef and broiler production more than offsets lower expected pork production. Cattle slaughter has been higher than expected and carcass weights remain high. Hog slaughter and carcass weights in the fourth quarter are forecast lower than last month. The broiler production forecast is raised based on production data to date. Turkey production is unchanged. Egg production is raised for both 2012 and 2013 based on hatchery data.
Red meat and poultry import and export forecasts are unchanged from last month.
Cattle prices are raised for both 2012 and 2013, reflecting strong demand for cattle through the end of this year and into 2013. The hog price forecasts for both 2012 and 2013 are raised as lower forecast production is expected to support prices. Broiler prices are raised for both 2012 and 2013 as demand has been firm. The turkey price forecast for 2012 is raised slightly, but the forecast for 2013 is unchanged from last month.
The 2012 and 2013 milk production forecasts are unchanged from last month. Lower forecast fat basis exports in 2012 reflect weakness in butter exports but exports in 2013 are raised on higher expected cheese and whey protein solids shipments.
Cheese prices are forecast lower in 2012 on current weakness but the forecast is raised for 2013 as demand is expected to improve. Butter prices for both 2012 and 2013 are lowered as demand is expected to remain relatively weak. Nonfat dry milk (NDM) and whey prices are raised for 2012 and 2013. The Class III price for 2012 is reduced on the lower cheese price but the Class IV price is unchanged as the lower butter price is offset by a higher NDM price. For 2013, Class III and Class IV price forecasts are raised as prices for cheese, NDM, and whey are increased. The 2012 all milk price is unchanged from last month at $18.50 to $18.60 per cwt, but the range of the 2013 price is tightened to $19.15 to $19.95 per cwt.
United States Department of Agriculture 12-11-12
WHEAT:
Projected U.S. wheat ending stocks for 2012/13 are raised 50 million bushels reflecting lower prospects for exports again this month. Projected exports are lowered 50 million bushels reflecting the slow pace of sales and shipments to date and higher expected competition from foreign supplies. U.S. exports are projected 45 million bushels lower for Hard Red Winter wheat, 10 million bushels lower for Soft Red Winter wheat, and 5 million bushels lower for Hard Red Spring wheat. White wheat exports are raised 10 million bushels. The projected 2012/13 season-average farm price for all wheat is lowered 10 cents at the midpoint and the range is narrowed to $7.70 to $8.30 per bushel.
Global wheat supplies for 2012/13 are projected 1.6 million tons higher as a 3.7-million-ton increase in world production more than offsets lower beginning stocks mostly reflecting higher 2011/12 wheat feeding for China. China wheat production for 2012/13 is raised 2.6 million tons based on the latest official estimates from the National Bureau of Statistics. Production for Australia and Canada are raised 1.0 million tons and 0.5 million tons, respectively, also based on the latest official government estimates. Partly offsetting these increases are small reductions for Brazil and EU-27.
Global wheat exports for 2012/13 are raised slightly this month. Exports are raised 0.5 million tons each for Australia, EU-27, and India, more than offsetting the U.S. reduction. Exports are lowered for Paraguay and Turkey. Imports are raised for Brazil, China, Iran, and Russia, but lowered for Turkey. Global wheat feeding for 2012/13 is raised slightly with reductions for EU-27 and Australia more than offset by increases for China, Canada, and Iran. For EU-27, higher corn imports and feeding offset the reduction in expected wheat feed use. World wheat ending stocks for 2012/13 are projected 2.8 million tons higher on increases for the United States, Australia, Russia, and EU-27.
COARSE GRAINS:
U.S. feed grain supply and use projections for 2012/13 are unchanged this month, but price outlooks for corn and sorghum are lowered based on prices reported to date. The season-average farm price for corn is lowered 20 cents at the midpoint and the projected range is narrowed to $6.80 to $8.00 per bushel. Prices received by farmers through October remained well below cash market bids and this year’s early corn harvest appears to have boosted early season marketings placing further downward pressure on the outlook for the season-average price. The season-average sorghum price is lowered 10 cents at the midpoint and the projected range is narrowed to $6.50 to $7.70 per bushel. The projected barley and oats season-average price ranges are narrowed 5 cents on each end to $6.10 to $6.80 per bushel and $3.55 to $4.05 per bushel, respectively.
Global coarse grain supplies for 2012/13 are projected 7.0 million tons higher mostly reflecting a larger reported corn crop for China. Beginning coarse grain stocks for 2012/13 are lowered 1.0 million tons in part reflecting higher 2011/12 corn exports for Argentina. Global 2012/13 corn production is raised 9.4 million tons with China corn output up 8.0 million tons based on recent estimates from the National Bureau of Statistics. Strong price incentives to expand corn plantings and favorable summer rainfall, particularly in the northeast provinces, support increases in area and yields raising them to new records. Corn production for Canada is raised 1.5 million tons this month to a new record on higher yields and a record area as reported by Statistics Canada. Russia corn production is raised 1.0 million tons, also a new record. Corn production is increased for North Korea and Chile, up 0.4 million tons, and 0.3 million tons, respectively. Offsetting these increases are reductions for Argentina, Moldova, and Ukraine corn, down 0.5 million tons each, with lower expected area for Argentina, lower area and yields for Moldova, and lower yields for Ukraine. Belarus corn production is also lowered 0.2 million tons.
Other notable 2012/13 coarse grain production changes this month include a 0.6-million-ton reduction for Canada barley, a 0.3-million-ton reduction for Australia sorghum, and 0.3-million-ton and 0.2-million-ton reductions, respectively, for Canada and Australia oats. All are based on the latest official estimates from Statistics Canada and the Australian Bureau of Agricultural and Resource Economics and Sciences.
Global 2012/13 coarse grain trade is increased mostly on higher expected corn imports and exports. Corn imports are raised 1.5 million tons for EU-27. Corn exports are raised 0.5 million tons each for Canada and Russia. Increases in local marketing year 2011/12 exports for Argentina, Paraguay, and South Africa support higher 2012/13 consumption this month for Northern Hemisphere countries. Global corn consumption for 2012/13 is raised 8.7 million tons mostly with increases of 6.0 million tons and 1.5 million tons, respectively, for China and EU-27 corn feeding. Corn feed and residual use is also raised for Canada and Russia, but lowered for Argentina, Ukraine, and Moldova. Corn food, seed, and industrial use is raised 2.0 million tons for China, also boosting global corn consumption. World corn ending stocks for 2012/13 are projected 0.4 million tons lower, mostly on reductions in Argentina, Colombia, and Ukraine. Small increases in a number of countries, including Canada, are partly offsetting.
OILSEEDS:
Total U.S. oilseed production for 2012/13 is projected at 91.3 million tons, down slightly due to a small reduction in cottonseed. Soybean crush is raised 10 million bushels to 1.570 billion due to strong foreign demand for soybean products. Soybean oil production is raised 460 million pounds on the increased crush and on a higher soybean oil extraction rate. Soybean oil exports are projected at 1.8 billion pounds, up sharply from 1.2 billion last month on exceptionally strong November sales of just over 700 million pounds to several markets including China, Mexico, and undeclared destinations. Soybean meal exports are raised 0.3 million short tons to 8.2 million on strong sales to EU-27, Egypt, and several Asian markets including the Philippines and South Korea. Soybean meal domestic use is reduced 0.1 million short tons to 29.4 million in line with current meat production forecasts. With soybean exports unchanged at 1.345 billion bushels, soybean ending stocks for 2012/13 are projected at 130 million bushels, down 10 million from last month.
Prices for soybeans and products are all projected lower this month. The U.S. season-average soybean price range for 2012/13 is projected at $13.55 to $15.55 per bushel, down 35 cents on both ends of the range. The soybean meal price is projected at $440 to $470 per short ton, down 15 dollars on both ends of the range. The soybean oil price range is projected at 49 to 53 cents per pound, down 2 cents on both ends.
Global oilseed production for 2012/13 is projected at 463 million tons, up 0.9 million tons from last month. Foreign oilseed production accounts for most of the change with increases projected for soybeans, cottonseed, and sunflowerseed only partly offset by reductions for rapeseed and peanuts. Global soybean production is projected at 267.7 million tons, up 0.1 million. Increased production for Canada is mostly offset by lower projections for EU-27 and Paraguay. Lower soybean production for Paraguay reflects reduced yields in line with historical production and yield revisions. Global rapeseed production is projected slightly lower as reduced estimates for Canada and EU-27 are mostly offset by a larger crop in Russia. Global sunflowerseed production is projected at 35.7 million tons, up 0.9 million as larger crops in EU-27, Russia, and India are only partly offset by a lower projection for Argentina. The Argentina crop is reduced on lower area reflecting the impact of excessive moisture throughout the planting season.
Global oilseed trade for 2012/13 is projected at 115.2 million tons, up 0.5 million from last month. Increased soybean exports from Canada and increased peanut exports from India account for most of the gains. Global oilseed ending stocks are projected at 66.9 million tons,up 0.3 million from last month reflecting higher rapeseed stocks in EU-27 and Australia.
LIVESTOCK, POULTRY, AND DAIRY:
The forecast for 2013 red meat and poultry production is reduced from last month as lower pork production more than offsets higher beef production. Beef production is raised as both fed and non-fed cattle slaughter is expected to be higher and forecast carcass weights are raised. Pork production forecasts are reduced from last month as first-quarter slaughter is expected to be slightly lower and carcass weights are reduced in the first half of the year. USDA will release the Quarterly Hogs and Pigs report on December 28, providing an indication of producer farrowing intentions for the first half of 2013. Poultry production forecasts for 2013 are unchanged. For 2012, the total meat production forecast is raised as higher forecast fourth-quarter beef and broiler production more than offsets lower expected pork production. Cattle slaughter has been higher than expected and carcass weights remain high. Hog slaughter and carcass weights in the fourth quarter are forecast lower than last month. The broiler production forecast is raised based on production data to date. Turkey production is unchanged. Egg production is raised for both 2012 and 2013 based on hatchery data.
Red meat and poultry import and export forecasts are unchanged from last month.
Cattle prices are raised for both 2012 and 2013, reflecting strong demand for cattle through the end of this year and into 2013. The hog price forecasts for both 2012 and 2013 are raised as lower forecast production is expected to support prices. Broiler prices are raised for both 2012 and 2013 as demand has been firm. The turkey price forecast for 2012 is raised slightly, but the forecast for 2013 is unchanged from last month.
The 2012 and 2013 milk production forecasts are unchanged from last month. Lower forecast fat basis exports in 2012 reflect weakness in butter exports but exports in 2013 are raised on higher expected cheese and whey protein solids shipments.
Cheese prices are forecast lower in 2012 on current weakness but the forecast is raised for 2013 as demand is expected to improve. Butter prices for both 2012 and 2013 are lowered as demand is expected to remain relatively weak. Nonfat dry milk (NDM) and whey prices are raised for 2012 and 2013. The Class III price for 2012 is reduced on the lower cheese price but the Class IV price is unchanged as the lower butter price is offset by a higher NDM price. For 2013, Class III and Class IV price forecasts are raised as prices for cheese, NDM, and whey are increased. The 2012 all milk price is unchanged from last month at $18.50 to $18.60 per cwt, but the range of the 2013 price is tightened to $19.15 to $19.95 per cwt.
Monday, December 10, 2012
Lower Elkhorn NRD to consider irrigation flow meters, Limiting Irrigated Acres
LENRD Considers Drought Impacts at Meeting This Week
Due to the well problems caused by groundwater declines this summer, the Lower Elkhorn Natural Resources District will consider designating additional groundwater management areas. Their regular Subcommittee Meeting will be held Thursday, December 13th at 7:30 p.m. in the Lifelong Learning Center on the campus of Northeast Community College in Norfolk. During this meeting, the board will also be considering requiring flow meters for irrigation use, setting maximum irrigation amounts to prohibit excessive irrigation use, and restricting new irrigated acres. The meeting is open to the public.
Due to the well problems caused by groundwater declines this summer, the Lower Elkhorn Natural Resources District will consider designating additional groundwater management areas. Their regular Subcommittee Meeting will be held Thursday, December 13th at 7:30 p.m. in the Lifelong Learning Center on the campus of Northeast Community College in Norfolk. During this meeting, the board will also be considering requiring flow meters for irrigation use, setting maximum irrigation amounts to prohibit excessive irrigation use, and restricting new irrigated acres. The meeting is open to the public.
Monday December 10 Ag News
Planning for Next Year's Drought
Bruce Anderson, University of Nebraska Extension Forage Specialist
The data are in and the climate experts have made their forecasts. The chances of you having average soil moisture going into next year are slim and none. So what are you going to do to prepare? Stay tuned.
Drought is hard to prepare for and even harder to predict. Last summer caught a lot of people by surprise and now we are paying the price with high feed costs and limited availability.
Next year, though, shouldn't catch anyone by surprise. We know already that it is nearly impossible to fully recharge moisture into the soil profile by next spring. Unless you receive lots of extra, good soaking moisture next spring, dryland yields are likely to be below average. And since there will be very little hay carryover, prices are likely to stay high.
We also know that most pastures were grazed more heavily last year than usual. They have almost no forage remaining for use next year and most root systems were weakened going into winter. Therefore, carrying capacity next year probably will be less than average unless you receive way above average precipitation. Even with extra rain, though, spring growth could be slower or later than usual.
What should you do with all this depressing information? I suggest you begin by taking a realistic look at your livestock forage program. If it stays dry, can you afford to keep doing what you have been doing? Should you plant annual forages to get more hay? Or rent more corn stalks for winter grazing? How about grazing more stockers and fewer cows? Or even sell all your cattle and rent out your pasture? And if it does rain, how can you take the most advantage of it?
The time to think about and answer these questions really was a year ago, but now is better than next summer. What will you do?
Learn More About Iowa Nutrient Strategy at Meetings
Three informational meetings regarding the recently released Iowa Nutrient Reduction Strategy will be held in Denison, Ames and Waterloo the week of Dec. 17. "These meetings are an important opportunity for the public and key stakeholders to ask questions and learn more about this plan," said Chuck Gipp, director of the Iowa Department of Natural Resources.
The goal of reducing nutrients in Iowa's waters is an effort that will require everyone working together, according to Iowa Secretary of Agriculture Bill Northey. "This is what makes this plan so exciting. It's the first time we have had all the key stakeholders moving in the same direction toward the common goal of reducing nutrients, both here in Iowa and eventually the Gulf of Mexico," said Northey.
The time and location of the meetings include...
-- Denison -- Dec. 17, 6:30 p.m., Boulders Conference Center, 2507 Boulders Dr., Denison
-- Ames -- Dec. 19, 10 a.m., South Ballroom, Memorial Union, Iowa State University, Ames
-- Waterloo -- Dec. 21, 10 a.m., Ramada Waterloo/Five Sullivan Brothers Convention Center, 205 W Fourth St., Waterloo
Comments on the strategy will not be accepted during the meeting, but all Iowans are invited to review the full strategy and provide comment at www.nutrientstrategy.iastate.edu.
China Soybean Purchase, Drought Defining Events in 2012 for Iowa’s Soybean Farmers
A $4 billion purchase of soybeans by China, severe drought conditions that continue across most of Iowa and the Midwest and a scientific breakthrough in soybean research were defining moments for Iowa’s soybean farmers in 2012.
“There were both planned and unexpected events that shaped the year that was for Iowa agriculture and Iowa’s soybean farmers,” says Mark Jackson, Iowa Association (ISA) president from Rose Hill. “Some had an immediate impact while others will have lasting affects well into 2013 and beyond.”
Events of significance in 2012 included:
- Chinese leaders, including then-Vice Premier Xi Jinping, arrive in Iowa in February and commit to purchase $4 billion of U.S. soybeans during signing ceremonies at the World Food Prize Center in Des Moines.
- Food purchasers representing Kraft, Kellogg’s and Sodexo are hosted by the ISA in May as part of a three-state “Soy Sustainability Farm Tour.” The group participates in on-farm tours where farmers showcase activities the strengthen soil and water quality.
- Lt. Gov. Kim Reynolds and Ag Secretary Bill Northey join ISA leaders and guests at a news conference hosted by Sukup Manufacturing Co. in Sheffield to announce more than $400,000 in contributions to “Special Delivery. Homes. Help. Hope. For Haiti.” The campaign, launched Dec. 2011 by Iowa Food & Family Project and co-chaired by Reynolds and Northey, totaled the equivalent of 64 Safe T Homes® and more than 230,000 servings of Meals from the Heartland for Haitians.
- ISA leaders travel to the European Union (EU) in July and meet with farmers, industry stakeholders and officials to better understand the impact of EU legislation and its impact on U.S. trade relations.
- Summer brings continued drought. Called worst in nearly 50 years, dry conditions plague large portions of Iowa and the nation’s soybean growing region. Weather worries temper soybean production estimates causing per-bushel soybean prices to climb to nearly $17.
- Soybean checkoff-funded research yields potential breakthroughs in fighting the soybean cyst nematode (SCN), a pest that costs U.S. soybean farmers billions of dollars annually in crop losses. Scientists identify the gene at the Rhg4 locus, a key player in the soybean plant’s resistance to SCN. Researchers are hopeful discovery will lead to understanding how the resistant genes work and ultimately to improved crop yields.
- Soybean farmers take to the field in September as drought continues to grip the state. Many are pleasantly surprised by strength of soybean yields. Better plant genetics and soil management cited as reason for better-than-expected crop performance.
- Iowa Environmental Protection Commission meets in October and maintains use of manure on acres that may grow soybeans at the precautionary rate of 100 pounds Nitrogen. The rate was maintained as illustrated and recommended by Iowa State University scientists and backed by the ISA and other farm groups.
- Nearly 100 World Food Prize (WFP) attendees participate in tours of two central Iowa grain farms. The events, sponsored by the ISA, were a new feature of this year's WFP providing visitors from around the world their first opportunity to see Iowa agriculture up close.
- Renewable Fuel Standard 2 (RFS) target for biodiesel volumes is increased in October by 28 percent for 2013 to 1.28 billion gallons. This responsible growth in the biodiesel market is supported by available production capacity and available feedstock to meet the ever-growing energy needs of our country.
- USDA’s November crop report bumps soybean production by 111 million bushels, largest-ever, one-month increase from October. Also includes a 100 million-bushel increase in demand, yet soybean prices recede as attention shifts to South America where favorable growing conditions indicate potential for strong global soybean supplies.
- Elected leaders and trade groups push for an emergency declaration in December to keep barges moving on the drought-riddled Mississippi River. Action comes after Army Corps of Engineers begins reducing the outflow into the Missouri River from the Gavins Point Dam in South Dakota from 37,500 cubic feet per second to 12,000. “This is an economic disaster in the making,” said Mike Toohey, president and CEO of Waterways Council Inc. Experts say the economic impact of terminating barge traffic would reach into the billions of dollars.
Iowa Learning Farms’ December Webinar Discusses ISA Bioreactors
Iowa Soybean Association watershed management specialist Keegan Kult will be featured in the Iowa Learning Farms’ webinar Wednesday, Dec. 19 at 11:30 a.m. The webinar is part of a free series, hosted by ILF, through Adobe Connect. The series is usually held on the third Wednesday of each month. All that is needed to participate is a computer with Internet access.
Kult has been at ISA for four years, after graduating from Iowa State University with an M.S. in environmental science and a B.S. in forestry. Kult works with farmers to incorporate best management practices into their operations and also conducts edge-of-field monitoring. He currently monitors a network of 18 bioreactors on private farms for ISA. During his webinar he will discuss the latest results from these bioreactors.
A denitrifying bioreactor is an edge-of-field practice featuring an excavated area that is filled with woodchips and then covered with soil. Water flowing through tile drains in the field is routed through the bioreactor to reduce the amount of nitrate through conversion to nitrogen gas by natural denitrifying bacteria. After passing through the bioreactor, water released through the outlet contains 30 to 70 percent less nitrate than the water flowing in the bioreactor. This process helps to lessen the amount of nitrate that eventually ends up in the Mississippi River and downstream to the Gulf of Mexico’s hypoxic zone (or Dead Zone).
To connect to the webinars, go to https://connect.extension.iastate.edu/ilf/. Kult will be able to answer questions from webinar “attendees” via the Adobe Connect chat box. The ILF website contains links for archived webinars from previous months at http://www.extension.iastate.edu/ilf/Webinars/.
Iowa Learning Farms is a partnership of the Iowa Department of Agriculture and Land Stewardship, Iowa State University Extension and Outreach, Leopold Center for Sustainable Agriculture, Iowa Natural Resources Conservation Service and Iowa Department of Natural Resources (USEPA section 319); in cooperation with Conservation Districts of Iowa, the Iowa Farm Bureau and the Iowa Water Center.
ASA Provides Views on Final Farm Bill to Ag Committee Leadership
As Congress continues to debate potential solutions to the fiscal cliff issue, the American Soybean Association (ASA) reached out today to leaders of the House and Senate Agriculture Committees to provide its views on potential provisions in a comprehensive five-year farm bill.
In a letter from ASA President Danny Murphy, ASA restated its support for many of the provisions included in both the House and Senate versions of the farm bill, and expressed specific support for the Senate’s Agricultural Risk Coverage (ARC) program, which will provide important protection against reductions in both price and yield. ASA also pointed out major drawbacks to the Price Loss Coverage (PLC) option included in the House bill identified in a recent analysis by AgRisk Management, LLC.
The PLC program “establishes much higher and disproportionate reference or target prices that bear little relation to recent average market prices or production costs,” stated ASA. “Moreover, by tying payments to crops that are actually grown in the current year, the PLC option has the potential to significantly distort planting decisions, production, commodity prices, and government program costs in the event market prices fall. ASA noted that, according to the analysis, “soybean farmers would receive less protection than producers of other crops, and the soybean share of crop production in almost all regions would be adversely affected.”
ASA’s letter concluded that “if this option is included in the final farm bill, payments must be decoupled from current-year production and tied to historical crop acreages.”
ASA remains committed to a farm bill that protects planting flexibility, and protects and strengthens the current federal crop insurance program. ASA also strongly supports streamlining and eliminating duplication of conservation programs, authorization of the MAP and FMD export promotion programs, and renewal of research, biofuels, and biobased product program authorities.
NCBA Environmental Stewardship Award Calls for Entries
The 23rd annual Environmental Stewardship Award Program (ESAP) has officially opened its nomination season for 2013. Established in 1991 by the National Cattlemen’s Beef Association (NCBA), the program has recognized the outstanding stewardship practices and conservation achievements of U.S. cattle producers for more than two decades. Regional and national award winners are honored for their commitment to protecting the environment and improving fish and wildlife habitat while operating profitable cattle businesses.
Seven regional winners and one national winner are selected annually by a committee of representatives from universities, conservation organizations, and federal and state agencies. The nominees compete for regional awards based on their state of residency, and these seven regional winners then compete for the national award. Candidates are judged on management of water, wildlife, vegetation, soil, as well as the nominee’s leadership and the sustainability of his or her business as a whole.
“Environmental stewardship and conservation have long been the focus of farmers and ranchers, who are America’s foremost land stewards,” said NCBA President J.D. Alexander. “Responsible use of land and resources is a priority for cattlemen and women. The ESAP award highlights efforts by producers who are committed to conservation and sustainability efforts.”
Any individual, group or organization is eligible to nominate one individual or business who raises or feeds cattle. Past nominees are eligible and encouraged to resubmit their application; previous winners may not reapply. Along with a completed application, the applicant must submit one nomination letter and three letters of recommendation highlighting the nominee’s leadership in conservation.
The program is sponsored by Dow AgroSciences; the U.S. Department of Agriculture’s (USDA) Natural Resource Conservation Service (NRCS); the U.S. Fish and Wildlife Service; the National Cattlemen’s Foundation (NCF); and NCBA.
Applications for the 2013 ESAP award are due Mar. 1, 2013. For more information and a complete application packet, visit www.environmentalstewardship.org.
Blank and Kirk to Convene 23rd Session of U.S.-China Joint Commission on Commerce and Trade
Acting U.S. Secretary of Commerce Rebecca Blank and U.S. Trade Representative Ron Kirk will host Chinese Vice Premier Wang Qishan for the 23rd session of the U.S.-China Joint Commission on Commerce and Trade (JCCT), December 18-19, in Washington. U.S. Secretary of Agriculture Tom Vilsack will also take part in the discussions to address key agricultural trade concerns.
"This year's JCCT is an opportunity for the United States to continue building a strong foundation for our bilateral trade with China," said Acting Secretary Blank. "These discussions come at an important time and are an opportunity to set the future trajectory of U.S.-China economic relations. Creating a healthy and balanced trade relationship with China is important to the United States, and our goals for these discussions include securing markets for U.S. exports, protecting intellectual property, and eliminating regulatory obstacles in China that obstruct trade. The annual high-level JCCT meeting is the culmination of a year of work, and we look forward to once again engaging with the Chinese on issues of mutual importance to our two countries."
"The JCCT is critical to resolving important trade and investment issues for American stakeholders and to moving our trade relationship with China forward. This year we're focused on delivering meaningful results on issues including enforcement of intellectual property rights, combating pressures to transfer technology, eliminating trade-distortive industrial policies, and removing key obstacles to our exports," said Ambassador Kirk.
"The JCCT provides an important forum to discuss ways we can reduce trade barriers for American agricultural products and provide greater export opportunities for our farmers, producers, and ranchers," said Secretary Vilsack. "China remains a valued trading partner and the bilateral relationship will be strengthened through the exchange that will take place at these meetings. Specifically, we plan to address a range of market access issues affecting exports of U.S. meat and poultry products, as well as horticultural products."
The JCCT holds high-level plenary meetings on an annual basis to review progress made by working groups that focus on a wide variety of trade issues. These working groups meet throughout the year to address topics such as intellectual property rights, agriculture, pharmaceuticals and medical devices, information technology, tourism, commercial law, environment, and statistics.
Established in 1983, the JCCT is the main forum for addressing bilateral trade issues and promoting commercial opportunities between the United States and China. The 2011 JCCT meeting was held in Chengdu, China, where China agreed, among other issues, to improve intellectual property enforcement, delink innovation policies to government procurement preferences, and provide a fair and level playing field in China's Strategic Emerging Industries.
China was the largest supplier of U.S. goods imports in 2011, and the third-largest market for U.S. exports in 2011 (after Canada and Mexico). U.S. goods exports to China were $104 billion in 2011, up 542 percent since 2000. Trade in services with China (exports and imports) totaled $38 billion in 2011; services exports were $27 billion and services imports were $11 billion.
USMEF Supports Efforts to Lift Russian Trade Restrictions
Last week, the U.S. Meat Export Federation (USMEF) advised U.S. red meat exporters of the declaration published by Russia's Veterinary and Phytosanitary Surveillance Service (VPSS) on Wednesday, Dec. 5, concerning pre-export certification of meat products destined to Russia and of the ongoing exchanges between government officials of both countries.
While USMEF does not comment on ongoing government-to-government discussions, we support calls by U.S. Trade Representative Ron Kirk and USDA Secretary Tom Vilsack for Russia to suspend these new measures and restore market access for U.S. beef and pork products.
Later this week, further meetings will take place between representatives of the U.S. and Russian governments and USMEF looks forward to the outcome of these discussions. U.S. beef and pork customers throughout the world can be confident that the U.S. industry is committed to supplying healthy, nutritious beef and pork. This commitment is based on the best available science and has the backing of the United States government. We are confident that a science-based solution to the disagreement over testing and certification can be found quickly so that exports of U.S. beef and pork to Russia can resume in the near future.
CWT Assists with 3 Million Pounds of Cheese and Butter Export Sales
Cooperatives Working Together (CWT) has accepted 24 requests for export assistance from Bongards Creameries, Northwest Dairy Association (Darigold) and United Dairymen of Arizona to sell 2.068 million pounds (938 metric tons) of Cheddar, Gouda and Monterey Jack cheese, and 947,988 pounds (430 metric tons) of butter, to customers in Asia, the Middle East and North Africa. The product will be delivered December 2012 through May 2013.
In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 115.7 million pounds, butter totaling 71.5 million pounds, anhydrous milk fat totaling 127,868 pounds and whole milk powder 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 2.630 billion pounds, or the same as 76.6% 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.
Weather Leads Argentina Cuts 2012-13 Wheat Export Quota
Argentina has cut the amount of wheat it will allow for export from the 2012-13 crop by 1.5 million metric tons because of disappointing output from the winter crop, according to a person representing the grain export sector.
Argentina was expected to be the world's No. 5 wheat exporter this season, according to the U.S. Department of Agriculture, with most of that going to neighboring Brazil. Argentina will likely slip to seventh place now, and a smaller Argentine crop will likely send Brazilian buyers to other markets like North America to sate demand.
In June, the Argentine government said it planned to allow six million tons of wheat exports from the 2012-13 crop, but with the harvest about a third complete, damage from flooding and other problems led the government to trim that to 4.5 mmt, the grain exporter representative said, on condition of anonymity. The representative confirmed a report in local newspaper La Nacion. A spokesman for the Agriculture Ministry didn't immediately return a message seeking comment.
Domestic wheat demand for 2013 is estimated at 6.5 mmt, according to the Agriculture Ministry.
Total 2012-13 wheat production is estimated at 11.5 mmt by the ministry, while the Buenos Aires cereals exchange pegs the crop at 10.1 mmt.
New Study Finds Global Warming Is Not Hurting Plant Growth
A new study by the Center for the Study of Carbon Dioxide and Global Change – The State of Earth’s Terrestrial Biosphere: How is it Responding to Rising Atmospheric CO2 and Warmer Temperatures? – refutes claims by the United Nations’ Intergovernmental Panel on Climate Change (IPCC) that global warming is stressing Earth’s natural and agro-ecosystems by reducing plant growth and development.
“Such claims are simply not justified when one examines the balance of evidence as reported in the peer-reviewed scientific literature,” said report author Dr. Craig Idso, founder and chairman of the Center for the Study of Carbon Dioxide and Global Change and a senior fellow for environment policy at The Heartland Institute.
“Far from being in danger, the vitality of global vegetation is better off now than it was a hundred years ago, 50 years ago, or even a mere two-to-three decades ago,” Idso said. “And the observed increases in vegetative productivity and growth are happening in spite of all the many real and imagined assaults on Earth’s vegetation that have occurred during this time period, including wildfires, disease, pest outbreaks, deforestation, and climatic changes in temperature and precipitation.”
Specific findings in the meta-analysis examining hundreds of scientific studies on the subject include:
- The productivity of the planet’s terrestrial biosphere, on the whole, has been increasing with time, revealing a great greening of the Earth that extends throughout the entire globe.
- Satellite-based analyses of net terrestrial primary productivity (NPP) reveal an increase of around 6 to 13 percent since the 1980s.
- There is no empirical evidence to support the model-based IPCC claim that future carbon uptake by plants will diminish on a global scale due to rising temperatures. In fact, just the opposite situation has been observed in the real world.
- Earth’s land surfaces were a net source of CO2-carbon to the atmosphere until about 1940. From 1940 onward, however, the terrestrial biosphere has become, in the mean, an increasingly greater sink for CO2-carbon.
- Over the past 50 years, for example, global carbon uptake has doubled from 2.4 ± 0.8 billion tons in 1960 to 5.0 ± 0.9 billion tons in 2010.
- There is compelling evidence that the atmosphere’s rising CO2 content – the chief reason behind the IPCC’s concerns about the future of the biosphere, due to the indirect threats the IPCC claims will result from CO2-induced climate change – is actually most likely the primary cause of the observed greening trends.
- In the future, Earth’s plants should be able to successfully adjust their physiology to accommodate a warming of the magnitude and rate-of-rise that is typically predicted by climate models to accompany the projected future increase in the air’s CO2 content. And factoring in the plant productivity gains that will occur as a result of the aerial fertilization effect of the ongoing rise in atmospheric CO2, plus its accompanying transpiration-reducing effect that boosts plant water use efficiency, the world’s vegetation possesses an ideal mix of abilities to reap a tremendous benefit in the years and decades to come.
Given these findings, the report contends the recent “greening of the Earth” observed by a host of scientists will likely continue. Government leaders and policy makers should take notice of the findings of this important new assessment on the state of the Earth’s terrestrial biosphere.
The report can be viewed or downloaded here at The Heartland Institute, or at the Web site of the Center for the Study of Carbon Dioxide and Global Change.
Bruce Anderson, University of Nebraska Extension Forage Specialist
The data are in and the climate experts have made their forecasts. The chances of you having average soil moisture going into next year are slim and none. So what are you going to do to prepare? Stay tuned.
Drought is hard to prepare for and even harder to predict. Last summer caught a lot of people by surprise and now we are paying the price with high feed costs and limited availability.
Next year, though, shouldn't catch anyone by surprise. We know already that it is nearly impossible to fully recharge moisture into the soil profile by next spring. Unless you receive lots of extra, good soaking moisture next spring, dryland yields are likely to be below average. And since there will be very little hay carryover, prices are likely to stay high.
We also know that most pastures were grazed more heavily last year than usual. They have almost no forage remaining for use next year and most root systems were weakened going into winter. Therefore, carrying capacity next year probably will be less than average unless you receive way above average precipitation. Even with extra rain, though, spring growth could be slower or later than usual.
What should you do with all this depressing information? I suggest you begin by taking a realistic look at your livestock forage program. If it stays dry, can you afford to keep doing what you have been doing? Should you plant annual forages to get more hay? Or rent more corn stalks for winter grazing? How about grazing more stockers and fewer cows? Or even sell all your cattle and rent out your pasture? And if it does rain, how can you take the most advantage of it?
The time to think about and answer these questions really was a year ago, but now is better than next summer. What will you do?
Learn More About Iowa Nutrient Strategy at Meetings
Three informational meetings regarding the recently released Iowa Nutrient Reduction Strategy will be held in Denison, Ames and Waterloo the week of Dec. 17. "These meetings are an important opportunity for the public and key stakeholders to ask questions and learn more about this plan," said Chuck Gipp, director of the Iowa Department of Natural Resources.
The goal of reducing nutrients in Iowa's waters is an effort that will require everyone working together, according to Iowa Secretary of Agriculture Bill Northey. "This is what makes this plan so exciting. It's the first time we have had all the key stakeholders moving in the same direction toward the common goal of reducing nutrients, both here in Iowa and eventually the Gulf of Mexico," said Northey.
The time and location of the meetings include...
-- Denison -- Dec. 17, 6:30 p.m., Boulders Conference Center, 2507 Boulders Dr., Denison
-- Ames -- Dec. 19, 10 a.m., South Ballroom, Memorial Union, Iowa State University, Ames
-- Waterloo -- Dec. 21, 10 a.m., Ramada Waterloo/Five Sullivan Brothers Convention Center, 205 W Fourth St., Waterloo
Comments on the strategy will not be accepted during the meeting, but all Iowans are invited to review the full strategy and provide comment at www.nutrientstrategy.iastate.edu.
China Soybean Purchase, Drought Defining Events in 2012 for Iowa’s Soybean Farmers
A $4 billion purchase of soybeans by China, severe drought conditions that continue across most of Iowa and the Midwest and a scientific breakthrough in soybean research were defining moments for Iowa’s soybean farmers in 2012.
“There were both planned and unexpected events that shaped the year that was for Iowa agriculture and Iowa’s soybean farmers,” says Mark Jackson, Iowa Association (ISA) president from Rose Hill. “Some had an immediate impact while others will have lasting affects well into 2013 and beyond.”
Events of significance in 2012 included:
- Chinese leaders, including then-Vice Premier Xi Jinping, arrive in Iowa in February and commit to purchase $4 billion of U.S. soybeans during signing ceremonies at the World Food Prize Center in Des Moines.
- Food purchasers representing Kraft, Kellogg’s and Sodexo are hosted by the ISA in May as part of a three-state “Soy Sustainability Farm Tour.” The group participates in on-farm tours where farmers showcase activities the strengthen soil and water quality.
- Lt. Gov. Kim Reynolds and Ag Secretary Bill Northey join ISA leaders and guests at a news conference hosted by Sukup Manufacturing Co. in Sheffield to announce more than $400,000 in contributions to “Special Delivery. Homes. Help. Hope. For Haiti.” The campaign, launched Dec. 2011 by Iowa Food & Family Project and co-chaired by Reynolds and Northey, totaled the equivalent of 64 Safe T Homes® and more than 230,000 servings of Meals from the Heartland for Haitians.
- ISA leaders travel to the European Union (EU) in July and meet with farmers, industry stakeholders and officials to better understand the impact of EU legislation and its impact on U.S. trade relations.
- Summer brings continued drought. Called worst in nearly 50 years, dry conditions plague large portions of Iowa and the nation’s soybean growing region. Weather worries temper soybean production estimates causing per-bushel soybean prices to climb to nearly $17.
- Soybean checkoff-funded research yields potential breakthroughs in fighting the soybean cyst nematode (SCN), a pest that costs U.S. soybean farmers billions of dollars annually in crop losses. Scientists identify the gene at the Rhg4 locus, a key player in the soybean plant’s resistance to SCN. Researchers are hopeful discovery will lead to understanding how the resistant genes work and ultimately to improved crop yields.
- Soybean farmers take to the field in September as drought continues to grip the state. Many are pleasantly surprised by strength of soybean yields. Better plant genetics and soil management cited as reason for better-than-expected crop performance.
- Iowa Environmental Protection Commission meets in October and maintains use of manure on acres that may grow soybeans at the precautionary rate of 100 pounds Nitrogen. The rate was maintained as illustrated and recommended by Iowa State University scientists and backed by the ISA and other farm groups.
- Nearly 100 World Food Prize (WFP) attendees participate in tours of two central Iowa grain farms. The events, sponsored by the ISA, were a new feature of this year's WFP providing visitors from around the world their first opportunity to see Iowa agriculture up close.
- Renewable Fuel Standard 2 (RFS) target for biodiesel volumes is increased in October by 28 percent for 2013 to 1.28 billion gallons. This responsible growth in the biodiesel market is supported by available production capacity and available feedstock to meet the ever-growing energy needs of our country.
- USDA’s November crop report bumps soybean production by 111 million bushels, largest-ever, one-month increase from October. Also includes a 100 million-bushel increase in demand, yet soybean prices recede as attention shifts to South America where favorable growing conditions indicate potential for strong global soybean supplies.
- Elected leaders and trade groups push for an emergency declaration in December to keep barges moving on the drought-riddled Mississippi River. Action comes after Army Corps of Engineers begins reducing the outflow into the Missouri River from the Gavins Point Dam in South Dakota from 37,500 cubic feet per second to 12,000. “This is an economic disaster in the making,” said Mike Toohey, president and CEO of Waterways Council Inc. Experts say the economic impact of terminating barge traffic would reach into the billions of dollars.
Iowa Learning Farms’ December Webinar Discusses ISA Bioreactors
Iowa Soybean Association watershed management specialist Keegan Kult will be featured in the Iowa Learning Farms’ webinar Wednesday, Dec. 19 at 11:30 a.m. The webinar is part of a free series, hosted by ILF, through Adobe Connect. The series is usually held on the third Wednesday of each month. All that is needed to participate is a computer with Internet access.
Kult has been at ISA for four years, after graduating from Iowa State University with an M.S. in environmental science and a B.S. in forestry. Kult works with farmers to incorporate best management practices into their operations and also conducts edge-of-field monitoring. He currently monitors a network of 18 bioreactors on private farms for ISA. During his webinar he will discuss the latest results from these bioreactors.
A denitrifying bioreactor is an edge-of-field practice featuring an excavated area that is filled with woodchips and then covered with soil. Water flowing through tile drains in the field is routed through the bioreactor to reduce the amount of nitrate through conversion to nitrogen gas by natural denitrifying bacteria. After passing through the bioreactor, water released through the outlet contains 30 to 70 percent less nitrate than the water flowing in the bioreactor. This process helps to lessen the amount of nitrate that eventually ends up in the Mississippi River and downstream to the Gulf of Mexico’s hypoxic zone (or Dead Zone).
To connect to the webinars, go to https://connect.extension.iastate.edu/ilf/. Kult will be able to answer questions from webinar “attendees” via the Adobe Connect chat box. The ILF website contains links for archived webinars from previous months at http://www.extension.iastate.edu/ilf/Webinars/.
Iowa Learning Farms is a partnership of the Iowa Department of Agriculture and Land Stewardship, Iowa State University Extension and Outreach, Leopold Center for Sustainable Agriculture, Iowa Natural Resources Conservation Service and Iowa Department of Natural Resources (USEPA section 319); in cooperation with Conservation Districts of Iowa, the Iowa Farm Bureau and the Iowa Water Center.
ASA Provides Views on Final Farm Bill to Ag Committee Leadership
As Congress continues to debate potential solutions to the fiscal cliff issue, the American Soybean Association (ASA) reached out today to leaders of the House and Senate Agriculture Committees to provide its views on potential provisions in a comprehensive five-year farm bill.
In a letter from ASA President Danny Murphy, ASA restated its support for many of the provisions included in both the House and Senate versions of the farm bill, and expressed specific support for the Senate’s Agricultural Risk Coverage (ARC) program, which will provide important protection against reductions in both price and yield. ASA also pointed out major drawbacks to the Price Loss Coverage (PLC) option included in the House bill identified in a recent analysis by AgRisk Management, LLC.
The PLC program “establishes much higher and disproportionate reference or target prices that bear little relation to recent average market prices or production costs,” stated ASA. “Moreover, by tying payments to crops that are actually grown in the current year, the PLC option has the potential to significantly distort planting decisions, production, commodity prices, and government program costs in the event market prices fall. ASA noted that, according to the analysis, “soybean farmers would receive less protection than producers of other crops, and the soybean share of crop production in almost all regions would be adversely affected.”
ASA’s letter concluded that “if this option is included in the final farm bill, payments must be decoupled from current-year production and tied to historical crop acreages.”
ASA remains committed to a farm bill that protects planting flexibility, and protects and strengthens the current federal crop insurance program. ASA also strongly supports streamlining and eliminating duplication of conservation programs, authorization of the MAP and FMD export promotion programs, and renewal of research, biofuels, and biobased product program authorities.
NCBA Environmental Stewardship Award Calls for Entries
The 23rd annual Environmental Stewardship Award Program (ESAP) has officially opened its nomination season for 2013. Established in 1991 by the National Cattlemen’s Beef Association (NCBA), the program has recognized the outstanding stewardship practices and conservation achievements of U.S. cattle producers for more than two decades. Regional and national award winners are honored for their commitment to protecting the environment and improving fish and wildlife habitat while operating profitable cattle businesses.
Seven regional winners and one national winner are selected annually by a committee of representatives from universities, conservation organizations, and federal and state agencies. The nominees compete for regional awards based on their state of residency, and these seven regional winners then compete for the national award. Candidates are judged on management of water, wildlife, vegetation, soil, as well as the nominee’s leadership and the sustainability of his or her business as a whole.
“Environmental stewardship and conservation have long been the focus of farmers and ranchers, who are America’s foremost land stewards,” said NCBA President J.D. Alexander. “Responsible use of land and resources is a priority for cattlemen and women. The ESAP award highlights efforts by producers who are committed to conservation and sustainability efforts.”
Any individual, group or organization is eligible to nominate one individual or business who raises or feeds cattle. Past nominees are eligible and encouraged to resubmit their application; previous winners may not reapply. Along with a completed application, the applicant must submit one nomination letter and three letters of recommendation highlighting the nominee’s leadership in conservation.
The program is sponsored by Dow AgroSciences; the U.S. Department of Agriculture’s (USDA) Natural Resource Conservation Service (NRCS); the U.S. Fish and Wildlife Service; the National Cattlemen’s Foundation (NCF); and NCBA.
Applications for the 2013 ESAP award are due Mar. 1, 2013. For more information and a complete application packet, visit www.environmentalstewardship.org.
Blank and Kirk to Convene 23rd Session of U.S.-China Joint Commission on Commerce and Trade
Acting U.S. Secretary of Commerce Rebecca Blank and U.S. Trade Representative Ron Kirk will host Chinese Vice Premier Wang Qishan for the 23rd session of the U.S.-China Joint Commission on Commerce and Trade (JCCT), December 18-19, in Washington. U.S. Secretary of Agriculture Tom Vilsack will also take part in the discussions to address key agricultural trade concerns.
"This year's JCCT is an opportunity for the United States to continue building a strong foundation for our bilateral trade with China," said Acting Secretary Blank. "These discussions come at an important time and are an opportunity to set the future trajectory of U.S.-China economic relations. Creating a healthy and balanced trade relationship with China is important to the United States, and our goals for these discussions include securing markets for U.S. exports, protecting intellectual property, and eliminating regulatory obstacles in China that obstruct trade. The annual high-level JCCT meeting is the culmination of a year of work, and we look forward to once again engaging with the Chinese on issues of mutual importance to our two countries."
"The JCCT is critical to resolving important trade and investment issues for American stakeholders and to moving our trade relationship with China forward. This year we're focused on delivering meaningful results on issues including enforcement of intellectual property rights, combating pressures to transfer technology, eliminating trade-distortive industrial policies, and removing key obstacles to our exports," said Ambassador Kirk.
"The JCCT provides an important forum to discuss ways we can reduce trade barriers for American agricultural products and provide greater export opportunities for our farmers, producers, and ranchers," said Secretary Vilsack. "China remains a valued trading partner and the bilateral relationship will be strengthened through the exchange that will take place at these meetings. Specifically, we plan to address a range of market access issues affecting exports of U.S. meat and poultry products, as well as horticultural products."
The JCCT holds high-level plenary meetings on an annual basis to review progress made by working groups that focus on a wide variety of trade issues. These working groups meet throughout the year to address topics such as intellectual property rights, agriculture, pharmaceuticals and medical devices, information technology, tourism, commercial law, environment, and statistics.
Established in 1983, the JCCT is the main forum for addressing bilateral trade issues and promoting commercial opportunities between the United States and China. The 2011 JCCT meeting was held in Chengdu, China, where China agreed, among other issues, to improve intellectual property enforcement, delink innovation policies to government procurement preferences, and provide a fair and level playing field in China's Strategic Emerging Industries.
China was the largest supplier of U.S. goods imports in 2011, and the third-largest market for U.S. exports in 2011 (after Canada and Mexico). U.S. goods exports to China were $104 billion in 2011, up 542 percent since 2000. Trade in services with China (exports and imports) totaled $38 billion in 2011; services exports were $27 billion and services imports were $11 billion.
USMEF Supports Efforts to Lift Russian Trade Restrictions
Last week, the U.S. Meat Export Federation (USMEF) advised U.S. red meat exporters of the declaration published by Russia's Veterinary and Phytosanitary Surveillance Service (VPSS) on Wednesday, Dec. 5, concerning pre-export certification of meat products destined to Russia and of the ongoing exchanges between government officials of both countries.
While USMEF does not comment on ongoing government-to-government discussions, we support calls by U.S. Trade Representative Ron Kirk and USDA Secretary Tom Vilsack for Russia to suspend these new measures and restore market access for U.S. beef and pork products.
Later this week, further meetings will take place between representatives of the U.S. and Russian governments and USMEF looks forward to the outcome of these discussions. U.S. beef and pork customers throughout the world can be confident that the U.S. industry is committed to supplying healthy, nutritious beef and pork. This commitment is based on the best available science and has the backing of the United States government. We are confident that a science-based solution to the disagreement over testing and certification can be found quickly so that exports of U.S. beef and pork to Russia can resume in the near future.
CWT Assists with 3 Million Pounds of Cheese and Butter Export Sales
Cooperatives Working Together (CWT) has accepted 24 requests for export assistance from Bongards Creameries, Northwest Dairy Association (Darigold) and United Dairymen of Arizona to sell 2.068 million pounds (938 metric tons) of Cheddar, Gouda and Monterey Jack cheese, and 947,988 pounds (430 metric tons) of butter, to customers in Asia, the Middle East and North Africa. The product will be delivered December 2012 through May 2013.
In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 115.7 million pounds, butter totaling 71.5 million pounds, anhydrous milk fat totaling 127,868 pounds and whole milk powder 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 2.630 billion pounds, or the same as 76.6% 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.
Weather Leads Argentina Cuts 2012-13 Wheat Export Quota
Argentina has cut the amount of wheat it will allow for export from the 2012-13 crop by 1.5 million metric tons because of disappointing output from the winter crop, according to a person representing the grain export sector.
Argentina was expected to be the world's No. 5 wheat exporter this season, according to the U.S. Department of Agriculture, with most of that going to neighboring Brazil. Argentina will likely slip to seventh place now, and a smaller Argentine crop will likely send Brazilian buyers to other markets like North America to sate demand.
In June, the Argentine government said it planned to allow six million tons of wheat exports from the 2012-13 crop, but with the harvest about a third complete, damage from flooding and other problems led the government to trim that to 4.5 mmt, the grain exporter representative said, on condition of anonymity. The representative confirmed a report in local newspaper La Nacion. A spokesman for the Agriculture Ministry didn't immediately return a message seeking comment.
Domestic wheat demand for 2013 is estimated at 6.5 mmt, according to the Agriculture Ministry.
Total 2012-13 wheat production is estimated at 11.5 mmt by the ministry, while the Buenos Aires cereals exchange pegs the crop at 10.1 mmt.
New Study Finds Global Warming Is Not Hurting Plant Growth
A new study by the Center for the Study of Carbon Dioxide and Global Change – The State of Earth’s Terrestrial Biosphere: How is it Responding to Rising Atmospheric CO2 and Warmer Temperatures? – refutes claims by the United Nations’ Intergovernmental Panel on Climate Change (IPCC) that global warming is stressing Earth’s natural and agro-ecosystems by reducing plant growth and development.
“Such claims are simply not justified when one examines the balance of evidence as reported in the peer-reviewed scientific literature,” said report author Dr. Craig Idso, founder and chairman of the Center for the Study of Carbon Dioxide and Global Change and a senior fellow for environment policy at The Heartland Institute.
“Far from being in danger, the vitality of global vegetation is better off now than it was a hundred years ago, 50 years ago, or even a mere two-to-three decades ago,” Idso said. “And the observed increases in vegetative productivity and growth are happening in spite of all the many real and imagined assaults on Earth’s vegetation that have occurred during this time period, including wildfires, disease, pest outbreaks, deforestation, and climatic changes in temperature and precipitation.”
Specific findings in the meta-analysis examining hundreds of scientific studies on the subject include:
- The productivity of the planet’s terrestrial biosphere, on the whole, has been increasing with time, revealing a great greening of the Earth that extends throughout the entire globe.
- Satellite-based analyses of net terrestrial primary productivity (NPP) reveal an increase of around 6 to 13 percent since the 1980s.
- There is no empirical evidence to support the model-based IPCC claim that future carbon uptake by plants will diminish on a global scale due to rising temperatures. In fact, just the opposite situation has been observed in the real world.
- Earth’s land surfaces were a net source of CO2-carbon to the atmosphere until about 1940. From 1940 onward, however, the terrestrial biosphere has become, in the mean, an increasingly greater sink for CO2-carbon.
- Over the past 50 years, for example, global carbon uptake has doubled from 2.4 ± 0.8 billion tons in 1960 to 5.0 ± 0.9 billion tons in 2010.
- There is compelling evidence that the atmosphere’s rising CO2 content – the chief reason behind the IPCC’s concerns about the future of the biosphere, due to the indirect threats the IPCC claims will result from CO2-induced climate change – is actually most likely the primary cause of the observed greening trends.
- In the future, Earth’s plants should be able to successfully adjust their physiology to accommodate a warming of the magnitude and rate-of-rise that is typically predicted by climate models to accompany the projected future increase in the air’s CO2 content. And factoring in the plant productivity gains that will occur as a result of the aerial fertilization effect of the ongoing rise in atmospheric CO2, plus its accompanying transpiration-reducing effect that boosts plant water use efficiency, the world’s vegetation possesses an ideal mix of abilities to reap a tremendous benefit in the years and decades to come.
Given these findings, the report contends the recent “greening of the Earth” observed by a host of scientists will likely continue. Government leaders and policy makers should take notice of the findings of this important new assessment on the state of the Earth’s terrestrial biosphere.
The report can be viewed or downloaded here at The Heartland Institute, or at the Web site of the Center for the Study of Carbon Dioxide and Global Change.
Sunday, December 9, 2012
Friday December 7 Ag News
Nebraska Farmers Union Announces New “Farm To Fitness” Program
At their 99th annual convention at the Midtown Holiday Inn, the Nebraska Farmers Union (NeFU) announced the launch of the Farm To Fitness Program as part of their ongoing efforts resulting from an agreement with the Humane Society of the United States to identify, expand and promote new markets for humanely-raised livestock products in Nebraska.
“Farm To Fitness connects health-minded consumers to local producers of nutritious, humanely-raised foods,” said Ben Gotschall, Lancaster County Farmers Union president. “The program can include gyms promoting local producers to their members, personal trainers developing diets for their clients based on locally-sourced meats, and fitness centers providing a drop point for cooperatively-purchased food orders.” Partner gyms, personal trainer profiles, and participating farmers will be promoted on the Farm To Fitness website (www.farmtofitness.com), which will feature other links and information for interested consumers.
“Farm to Fitness presents a great opportunity to provide quality food to people who have made an effort to increase their overall health,” said Jordan Barnes, a personal trainer in Lincoln. “Access to this service enables people to make positive changes not only to their personal health but also to their local communities and the environment,” Barnes added. “I believe that this is a first step to creating a market that, with enough support, could change how our food is produced.”
“The farm to Fitness program is a good match between food producers and food consumers,” said John Hansen, president of Nebraska Farmers Union. “This collaborative effort is a win-win for everyone. We have made a lot of progress this past year with our joint efforts with HSUS to identify new value-added markets that our livestock producers can utilize.”
“We at are very excited to be a part of the Farm to Fitness program,” said Heath Murray, co-owner and trainer at iThinkFit gym in Omaha. “We take pride in providing our clients with proper workouts, supplementation, and now, some of the finest meats in the world. This relationship is going to take our business to the next level.”
“This new program is clear evidence that the HSUS collaboration with the Nebraska Farmers Union is delivering results that are good for animals, good for farmers and good for consumers. I congratulate John Hansen for his leadership in this effort.” Stated Joe Maxwell, Director of Rural Development and Outreach for HSUS.
ASA Announces 2013 Officers and Committee Assignments
The Board of Directors of the American Soybean Association (ASA) has confirmed Danny Murphy from Canton, Miss., as President and Steve Wellman from Syracuse, Neb., as Chairman. Board members also elected Ray Gaesser from Corning, Iowa, to serve as First Vice President, an office that places Gaesser in line to be ASA President in 2014.
Also elected were Randy Mann from Auburn, Ky. as Secretary and Richard Wilkins from Greenwood, Del. as Treasurer. Four Vice Presidents were also elected: Bob Henry from Robinson, Kan.; Bob Worth from Lake Benton, Minn.; Wade Cowan from Brownfield, Texas; and Mark Jackson from Rose Hill, Iowa. These soybean farmer-leaders form the nine-member ASA Executive Committee. Elections were held on Friday, Dec. 7, during ASA’s winter Board of Director’s meeting in St. Louis.
"My goals include completing the 2012 Farm Bill, continuing to work with the other organizations in our soy family and impressing upon soybean farmers the need for and value of ASA’s representation in Washington, D.C.,” Murphy said. “ASA will continue working to get a Farm Bill done in the Lame Duck session or early next year – the drought this year should make it evident how critical crop insurance is to soybean farmers. And to meet the demand for food and feed that will be required by the expected world population of 9 billion people in 2050, U.S. soybean farmers will need to sustainably increase our production in the face of increased regulation, competition from other crops, unfounded questions on the safety of biotechnology, and slow approvals of new biotech traits.”
Following the elections, committee assignments were announced. Public Affairs Committee Chairman Ray Gaesser is joined by committee members Jim Andrew (Iowa), Sam Butler (Ala.), Ted Glaub (Ark.), Bill Gordon (Minn.), Bruce Hall (Va.), Mark Huston (Canada), Rob Joslin (Ohio), Eric Maupin (Tenn.), Matt McCrate (Mo.), Dave Poppens (S.D.), Robert Ross (Okla.), Joe Steinkamp (Ohio), Davie Stephens (Ky.), Andy Welden (Mich.), Wyatt Whitford (N.C.) and Richard Wilkins (Mid.-Atl.).
The Membership & Corporate Relations Committee Chairman is Bob Worth, with committee members Dennis Bogaards (Iowa), Ron Bunjer (Minn.), Dean Campbell (Ill.), Wade Cowan (Texas), Cory Devillier (La.), Ed Erickson (N.D.), Walter Godwin (Ga./Fla.), Tom Raffety (Mo.), John Rivers (S.C.), Dan Roe (Wis.) and Jeff Sollars (Ohio).
Bob Henry was appointed Chairman of the Trade Policy & International Affairs Committee. Committee members are Mike Cunningham (Ill.), Bret Davis (Ohio), Todd Du Mond (N.Y.), Mark Jackson (Iowa), Ron Kindred (Ill.), Lance Peterson (Minn.), John Heisdorffer (Iowa), Kevin Hoyer (Wis.), Alan Kemper (Ind.), Randy Mann (Ky.), Jim Miller (Neb.), Kevin Scott (S.D.) and Lawrence Sukalski (Minn.).
Richard Wilkins was appointed Chairman of the Finance Committee, with James Andrew (Iowa), Ron Bunjer (Minn.), Ray Gaesser (Iowa), Ted Glaub (Ark.), Jim Miller (Neb.) and Jeff Sollars (Ohio) serving as committee members.
The Board welcomed eight new members who are Bret Davis (Ohio), Cory Devillier (La.), Bill Gordon (Minn.), Mark Huston (Canada), John Rivers (S.C.), Dan Roe (Wis.), Joe Steinkamp (Ind.) and Davie Stephens (Ky.).
ASA also recognized retiring directors Joe Steiner (Ohio), Charles Cannatella (La.), Barb Overlie (Minn.), Kevin Marriott (Canada), M.D. Floyd (S.C.), Tim Goodenough (Wis.), Scott Fritz (Ind.) and Jack Trumbo (Ky.)
Leaders Elected at 94th IFB Meeting in Des Moines
Joe Heinrich of Maquoketa was re-elected vice president of the Iowa Farm Bureau Federation (IFBF) at the organization's 94th annual meeting in Des Moines. County delegates also re-elected two district directors to the board. They include Carlton Kjos, District 1, of Decorah and Phil Sundblad, District 3, of Albert City. The board also elected challenger Mark Buskohl of Grundy Center as director of District 5.
Heinrich was voted as vice president of the Iowa Farm Bureau Federation in 2011. He served as a member of the IFBF board of directors, representing District 6 in eastern Iowa. He and his family run a dairy and beef cow-calf farm with his nephew. Together, their diversified farm also grows corn, soybeans, oats and hay.
Before Heinrich was elected to the board in 2004, he was active in both county and state Farm Bureau activities, serving as Jackson County president, vice president, voting delegate, young farmer chair and on the state internal study committee. Active in his local church and community, Heinrich also served as Jackson County Dairy Association county president and on the Jackson County Extension Council.
Heinrich is a graduate of Kirkwood Community College. He and his wife, Shelley, have two daughters.
Re-elected board member Kjos represents District 1, which consists of 11 counties in northeast Iowa. He was first elected to the position in 2006. Carlton has served in numerous leadership capacities as a Farm Bureau member, which includes county president, vice president, voting delegate, internal study committee, AFBF voting delegate, PAC committee member, and chairman of the beef advisory committee.
Additionally, Kjos was a member of the Winneshiek County Board of Supervisors and chairman of the Winneshiek County Planning and Zoning Commission. He was a board member of the Oneota Care Facility and served on the board of Spectrum Industries.
Kjos is a graduate of the University of Northern Iowa. He and wife, Cynthia, raise corn, soybeans, alfalfa, oats, and have a cow/calf herd. Their Winneshiek County farm has been in the family since 1862.
Sundblad, who also won re-election, represents District 3, which consists of 12 counties in northwest Iowa. He was first elected to the position in 2000. Before Sundblad was elected to the board in November 2000, he served in many leadership positions for the Buena Vista County Farm Bureau, including president, vice president, voting delegate and treasurer.
Sundblad currently serves as president of a locally-owned wind farm in Palo Alto County -- Crosswind Energy, LLC; chairman of the Food Board for Albert City Threshermen and Collectors; chairman of IOWA AgSTATE and is active in his local church. He and his wife, Brenda, have a corn and soybean operation. They have two children.
Newly-elected District 5 Board member Mark Buskohl represents District 5, which consists of 11 counties in central Iowa. Buskohl and his wife, Nancy, run a diversified cow, cattle, sheep, hay and grain farm near Grundy Center. Active in his local community and church, Buskhol has also served in many Farm Bureau leadership positions including county president, vice president and voting delegate. He most recently served as a member of the state internal study committee.
The IFBF delegates also elected five members to represent Iowa at the 2013 American Farm Bureau Federation (AFBF) convention in Nashville, TN. They are Jim Boyer of Ringsted, David Hommel of Eldora, Kevin Krumwiede of Ledyard, Karen Seipold of Hastings and Kyle Holthaus of Waukon.
Guy Petersen of Wyoming (Jones County) was elected to a three-year term on the IFBF internal study committee. Dave Seil of Gowrie (Webster County) was elected to the internal study committee to complete a one-year term vacated by Mark Buskohl. The internal study committee serves as a liaison between the county Farm Bureau voting delegates and the state board of directors.
RMA Announces Expansion of Trend-Adjusted Yield Endorsement
The Risk Management Agency (RMA) has announced that the "Trend-Adjusted APH" endorsement has been expanded into additional crops and locations for the 2013 crop year. It will be available in additional counties for soybeans, corn and wheat, and will also be expanded to canola, cotton, grain sorghum and rice in certain locations. This endorsement was first available in some soybean and corn counties for 2012 crops, and proved popular among farmers. Under the policy, a trend adjustment factor is estimated for each crop and county. This factor is equal to the estimated annual increase in yield, and is based on county average yields determined by the National Agricultural Statistics Service each year.
To be eligible for the Yield Option, the policyholder’s APH database must include at least one actual yield determined in one of the four most recent crop years. If the producer’s APH database has fewer than four actual yields within the previous 12 years, the adjustment is prorated. With this expansion, the trend-adjusted APH will be available for nearly all soybean farmers in 2013. For more information, contact your crop insurance agent.
Vilsack and Kirk Call on Russia to Suspend its new Testing Requirements for U.S. Meat Exports to Russia
United States Agriculture Secretary Tom Vilsack and United States Trade Representative Ron Kirk today issued the following statement in response to Russia's new requirements that U.S. beef and pork exports to Russia be tested and certified free of the feed additive ractopamine:
"The United States is very concerned that Russia has taken these actions, which appear to be inconsistent with its obligations as a member of the World Trade Organization. The United States calls on Russia to suspend these new measures and restore market access for U.S. beef and pork products. The United States sought, and Russia committed as part of its WTO accession package, to ensure that it adhered rigorously to WTO requirements and that it would use international standards unless it had a risk assessment to justify use of a more stringent standard. Especially in light of its commitment to use international standards, this is an important opportunity for Russia to demonstrate that it takes its WTO commitments seriously."
Industry Partnership Seeks Significant High-Oleic Expansion
In a bold, strategic move to expand demand for U.S. soy, the national soy checkoff has authorized the formation of a major industry partnership aimed at growing the market for a promising, healthier soy oil.
"This is what the soy checkoff is all about -- maximizing profit opportunities for all U.S. soybean farmers," says Vanessa Kummer, a former chair of the United Soybean Board (USB) and soybean farmer from North Dakota. "We have an opportunity to expand the acreage for high-oleic soybeans and strengthen U.S. soy's competitive position in the food and industrial sectors."
The promising new soy oil, high-oleic, features significantly increased oxidative stability which is critical for high heat applications like frying foods and also contains less saturated fats. This increased functionality will be important for both food and industrial customers.
The partnership accelerates the market development of high-oleic soybeans. It aims to have high-oleic soybeans available in maturity groups that cover up to 80 percent of U.S. soybean acres by 2020. Without the proposal, current industry projections put high-oleic soybeans at five to 10 percent of acres in 2020.
USB is partnering with the two seed companies with high-oleic varieties in the approval pipeline, DuPont Pioneer and Monsanto. The project outlines development of a broader range of maturity groups at a more rapid pace to reach the goal acreage and meet customer demands.
Partnerships with industry stakeholders aren't new for the checkoff. USB regularly partners with companies, such as John Deere and Goodyear, on projects that will benefit soybean farmers and maximize their profit potential.
Although a five-year project, checkoff farmer-leaders will annually review the project's impact on farmer profitability before making each year's financial commitments. Like all checkoff-funded activities, this project is subject to USDA approval, which is pending.
"This partnership will rapidly drive market adoption in key soybean-producing areas," adds Kummer. "By expanding high-oleic soy's availability, we are sending the right signals to the entire value chain and helping to develop new markets for our soybeans. This is a strategic move for our entire industry."
Oregon producer will chair board of farmer co-op CHS Inc.
Oregon farmer David Bielenberg has been elected chairman of the board of CHS Inc. (NASDAQ: CHSCP), the nation's leading farmer-owned cooperative and a global energy, grains and foods company.
Bielenberg was selected during the 17-member board's yearly reorganization meeting which followed the company's 2012 annual meeting on Dec. 6. He succeeds Jerry Hasnedl, a St. Hilaire, Minn., farmer who held the post during the past 12 months.
"This company has achieved unprecedented success in delivering value for its owners in recent years," Bielenberg said. "In the year ahead, the CHS Board of Directors will focus on continuing to deliver that for the producers and cooperatives that own CHS. This will include maximizing the value of CHS ownership for producers and cooperatives through a continued focus on our equity management program.
"In addition, we'll continue building on the company's success by driving our strategic momentum, growing enterprise value, maintaining an aggressive risk management approach and developing our skills as leaders."
Bielenberg has served a total of seven years on the CHS board, with terms from 2002-2006 and from 2009 to the present. During 2012, he was the board's assistant secretary-treasurer, chaired its Audit Committee and served on its Government Relations and board Executive committees. He operates a diverse agricultural operation near Silverton, Ore., which includes seed crops, vegetables, soft white wheat, greenhouse production and timberland.
He has held numerous cooperative and agricultural leadership roles including service as board member and president of Wilco Farmers Cooperative, Mt. Angel, Ore., and the East Valley Water District. Bielenberg holds a bachelor's of science degree in agricultural engineering from Oregon State University and is a graduate of the Texas A & M University executive program for agricultural producers. He completed the National Association of Corporate Directors comprehensive Director Professionalism course and received its Certificate of Director Education.
Also elected to one-year leadership terms were:
Dennis Carlson, Bismarck, N.D., as first vice chairman; elected to the board in 2001 and previously was second vice chairman.
Dan Schurr, LeClaire, Iowa, as secretary-treasurer; elected to the board in 2006 and previously was first vice chairman.
Steve Fritel, Rugby, N.D., as second vice chairman; elected to the board in 2003 and previously was secretary-treasurer.
Curt Eischens, Minneota, Minn., as assistant secretary-treasurer; elected to the board in 1990 and previously served as second vice chairman.
During the annual meeting, delegates elected David Johnsrud of Starbuck, Minn., to a three-year term on the CHS Board. He succeeds Michael Mulcahy of Waseca, Minn., who served nine years. Johnsrud farms in partnership with his brother and nephew. He has been a member of the board of directors of AgCountry Farm Credit Services since 2001, and currently serves as chairman. He also serves on the Minnesota Farm Credit Legislative Committee, with three years as chairman; was chairman of the Minnesota Farm Credit nominating committee for the AgriBank election in 2012, served on the Farmers Union Oil and Prairie Lake Co-op boards of directors from 1987 through 2007, with 15 years as board secretary; and was on the Mid-Minnesota Association Board, with terms as secretary and chairman, as well as on the State Directors' Association, with terms as treasurer. In 2010 he completed the Farm Credit Services Premier Governance Series and became a Certified Director and is a 2010 graduate of Minnesota Agricultural Rural Leadership Class V.
Members also re-elected Bielenberg, Fritel, David Kayser of Alexandria, S.D, and Don Anthony of Lexington, Neb., to three-year terms on the CHS Board.
Earnings, investments, global strategy position cooperative CHS for long-term success
Consistent strong financial performance, coupled with strategic domestic and global investments, have positioned CHS (NASDAQ: CHSCP) producer and co-op owners for long-term growth, leaders of the nation's largest cooperative reported at its annual meeting today.
"When it comes to the producers and cooperatives who own us, and the customers we serve around the world, we must not only invest in the future, but make sure we provide relevant options for doing business with us," said Carl Casale, CHS president and chief executive officer.
"In the last two years we've made three dozen major news announcements on investments and acquisitions on our owners' behalf that strengthen our presence at home and round the world in energy, grains, processing and food ingredients."
Casale and other leaders reported on 2012 results to more than 2,200 of the cooperative's owners and other guests at its annual meeting at the Minneapolis Convention Center.
In November, CHS reported record net income of $1.26 billion for fiscal 2012 (Sept. 1, 2011 – Aug. 31, 2012) on revenues of $40.6 billion, setting a new mark for U.S. agriculture cooperatives. During fiscal 2013, CHS will return an estimated $600 million of its fiscal 2012 earnings to its owners in cash.
"When other forms of business achieve this level of profit, the benefits are shared by those who may not have a direct relationship with the company beyond its earnings," said Jerry Hasnedl, CHS Board chairman and a St. Hilaire, Minn., farmer. "But this business not only provides its owners with energy, crop inputs, grain marketing and more, it delivers a direct return that helps farmers, ranchers and local cooperatives invest in their own growth."
CHS Chief Financial Officer David Kastelic reported that in 2012 CHS "made key investments in current business operations and in new ventures that will drive long-term success while maintaining a healthy balance sheet that will allow the company to continue investing in the future."
Among those attending were more than 300 young farmers and ranchers who participated in the CHS New Leaders Forum which included a focus on trends in precision agriculture.
Highlights for fiscal 2012 included:
Plans to acquire sole ownership of the McPherson, Kan., refinery in which it has long been majority owner. The facility also is the site of a $555 million coker project. CHS also continues to invest in its Laurel, Mont., refinery, as well as strengthening refined fuels supply and distribution in the northern tier of the U.S. and growing its propane, lubricants and renewable fuels businesses.
Expanded global commodities presence with new offices in South Korea, Singapore and Paraguay, along with grain origination and export acquisitions and joint ventures in the Black Sea region and South America. Strengthened U.S. grain exports through expansion of and investments in its TEMCO joint venture in the Pacific Northwest and establishment of a Port of Houston, Texas, grain through-put agreement.
Proposed construction of the first CHS nitrogen fertilizer manufacturing facility, planned for Spiritwood, N.D., and an investment in a Texas clean fuels project that includes sole access to 700,000 tons of urea.
Acquisition of an Israel-based soy foods and food ingredients business with two locations in that country, one in China and one in Nebraska. CHS also acquired a Creston, Iowa, soybean crushing plant focused on soy flour to supply the company's existing soy protein foods business.
Stronger cooperative system alignment as five co-ops and a Canadian firm chose to join the CHS Country Operations retail business unit and CHS partnered with several local co-ops on a variety of grain, crop nutrients and energy projects.
CHS University Initiative on Cooperative Education Launched
CHS Inc. (NASDAQ: CHSCP), the nation's leading farmer-owned cooperative, announced today it will launch a $2 million CHS University Initiative on Cooperative Education program, a major investment in building understanding of the cooperative business model through education, development and practical experience.
"As a farmer-owned cooperative, CHS is committed to investing in the future of the cooperative system," said Jerry Hasnedl, CHS Board chairman and a St. Hilaire, Minn. farmer. "This exciting new initiative will enable the next generation to achieve new levels of success as farmers and ranchers in the global marketplace, as employees with challenging careers in agriculture and as contributing citizens of rural communities."
The CHS University Initiative on Cooperative Education will support an extensive range of programs at universities and organizations across the country that integrate cooperative education into agribusiness curriculums, cooperative development and farm business studies. It will also support graduate-level cooperative education programs, soil, water and environmental studies, as well as technology-based learning programs.
"We are proud to launch the CHS University Initiative on Cooperative Education, which builds on more than eight decades of working with agricultural, cooperative and education entities, as well as the 20-year legacy of our Cooperative Education program," added William Nelson, president, CHS Foundation and vice president, CHS Corporate Citizenship. "
Partner universities and organizations include: University of Wisconsin, University of Minnesota, University of Missouri, The Ohio State University, North Dakota State University, University of Saskatchewan, Kansas State University, University of Idaho, Iowa State University, Cornell University and Southern Federation of Cooperatives.
25x'25 REsource: Standard Definition of Biomass Needed
With a new Congress coming to Washington next month, policy makers are presented with another significant opportunity to discuss, develop and implement a comprehensive, longstanding national energy plan. In any strategy aimed at meeting America's soaring energy demand, biomass must be considered a principal among the several renewable, sustainable solutions that make up the fastest growing domestic energy sector since 2006.
Still, the development of biomass has faced technical and commercial barriers, requiring significant investments in research and development, as well as infrastructure. The federal Renewable Fuel Standard, which remains under assault in Washington, must be retained and protected to ensure the continued developmental progress of fuel sources produced from farm and forestry residues, and, increasingly, purpose-grown biomass.
While there also has been criticism in some circles over the environmental impact of using biomass as an energy source, the 25x'25 Alliance believes that developing biomass under the 25x'25 Sustainability Principles insures that it can be harvested and used in a way that conserves, enhances and protects natural resources, as well as be economically viable, environmentally sound and socially acceptable.
However, there still remains another critical and, unfortunately, longstanding barrier to the unfettered development of biomass as a key energy resource: the variation in definition among legislative approaches to utilizing this resource.
A recent report issued by the Congressional Research Service, a nonpartisan agency charged with providing lawmakers background information pertinent to legislative issues, addresses the conflicts that have arisen since 2004 over how various proposals determine eligible biomass.
Biomass is basically organic matter that can be converted into energy. While most legislation involving biomass has focused on encouraging the production of liquid fuels from corn, other efforts to promote the use of biomass for power generation have focused on wood, wood residues, and milling waste.
For more than 30 years, the term biomass has been a part of legislation enacted by Congress for various programs, but U.S. consumers, utility groups, refinery managers, and others have not fully adopted biomass as an energy resource, attributable in large part to the varying characterizations of biomass in proposed legislation.
For example, the RFS, as updated in the 2007 Energy Independence and Security Act, specifically cites the use of biomass feedstocks such as crop residues; forest thinnings and solid residue remaining from forest product production; secondary annual crops planted on existing crop land; separated food and yard waste; and perennial grasses including switchgrass and miscanthus.
However, that RFS definition renders ineligible those same feedstocks if they come from idle cropland, naturally occurring forestland, federal lands, or former industrial land that could be producing energy crops. Blenders and refiners have no incentive or requirement to purchase biofuels produced from those sources. It prevents millions of acres of farm and forestlands from contributing to the nation's energy independence, costing rural jobs and income.
The restricted definition under the RFS also shrinks the environmental benefits available from forest biomass, including benefits to forests themselves from new investment in quality forest management. By excluding biomass from private forests as a tool in the U.S. clean energy strategy, the EISA definition negates a critical part of the solution to reducing the nation's dependence on foreign, high-carbon sources of fuel.
In fact, the limited EISA designation is one of at least four different definitions of qualifying forest biomass in federal statute, including a broader, more inclusive classification in the energy title of the now expired 2008 Farm Bill. The farm law more broadly defines renewable biomass as organic material available on a recurring basis. It also allows use of "materials, pre-commercial clippings or invasive species" from national forests and federal land.
There is certain to be discussion in the new, 113th Congress about energy, and stakeholders are encouraged to read the CRS report and be fully knowledgeable of the issue. They can then be prepared to informatively reach out to lawmakers and use the upcoming debate platforms to pursue a full and viable definition of biomass for energy. The use of biomass as an energy feedstock is a sustainable alternative to address U.S. energy security concerns, foreign oil dependence, rural economic development and diminishing sources of conventional energy.
R-CALF: Apparent Conflict of Interest in Checkoff
In a recent complaint sent to U.S. Agriculture Secretary Tom Vilsack and the U.S. Department of Agriculture's (USDA's) Inspector General Phyllis Fong, R-CALF USA seeks to confirm the accuracy of a news article indicating that an officer of the Beef Checkoff Program's Cattlemen's Beef Board (CBB) also is an officer of an organization that receives Beef Checkoff Program funding.
"If our information is correct, this is an outrageous conflict of interest," R-CALF USA wrote in its complaint.
The complaint explained that a Nov. 19 news article stated that Weldon Wynn, vice chair of the CBB, had been elected vice chairman of the U.S. Farmers and Ranchers Alliance, an organization that R-CALF USA claims already receives funding from the Beef Checkoff Program.
The complaint alleges that the U.S. Farmers and Ranchers Alliance (USFRA) also is seeking a 2013 grant in the amount of $216,958 from the Beef Checkoff Program through the National Cattlemen's Beef Association (NCBA).
The complaint states it would be unconscionable for USDA to tolerate a CBB appointee that serves in a fiduciary capacity for an organization that is a recipient of Beef Checkoff Program funds.
"It would be equally unconscionable if USDA does not provide even rudimentary oversight over the Beef Checkoff Program to ensure that such a blatant conflict of interest does not occur.
"If our information is correct and Weldon Wynn serves both to decide who is to receive Beef Checkoff Program funds (in his official capacity as a CBB officer) as well as to benefit directly from his own decisions (by directly representing the interests of Checkoff funds recipient USFRA), then this is further evidence of the ongoing, insidious and systemic corruption within the Beef Checkoff Program that USDA has chosen not to address.
"Please confirm whether or not USDA is allowing a CBB official to also represent the interests of a Beef Checkoff Program fund recipient," the complaint concludes.
In 2011 R-CALF USA filed an earlier complaint regarding a conflict of interest in the Beef Checkoff Program after it learned that the Deputy Administrator for the USDA Agricultural Marketing Service, Craig Morris, Ph.D., who oversaw the Beef Checkoff Program, was then listed as a current board member for the International Stockmen's Education Foundation, an organization like the U.S. Farmers and Ranchers Alliance that receives funding from the Beef Checkoff Program.
"As far as we know the only action USDA took in response to our 2011 complaint was to remove Dr. Morris from the board of directors of the International Stockmen's Education Foundation," said R-CALF USA CEO Bill Bullard.
"We are becoming increasingly frustrated with the recalcitrance of the USDA that knows full well there is deep-rooted corruption within the Beef Checkoff Program but refuses to do anything about it to protect cattle-producer contributions. All we know to do under these circumstances is to keep urging them to do what is right," Bullard added.
At their 99th annual convention at the Midtown Holiday Inn, the Nebraska Farmers Union (NeFU) announced the launch of the Farm To Fitness Program as part of their ongoing efforts resulting from an agreement with the Humane Society of the United States to identify, expand and promote new markets for humanely-raised livestock products in Nebraska.
“Farm To Fitness connects health-minded consumers to local producers of nutritious, humanely-raised foods,” said Ben Gotschall, Lancaster County Farmers Union president. “The program can include gyms promoting local producers to their members, personal trainers developing diets for their clients based on locally-sourced meats, and fitness centers providing a drop point for cooperatively-purchased food orders.” Partner gyms, personal trainer profiles, and participating farmers will be promoted on the Farm To Fitness website (www.farmtofitness.com), which will feature other links and information for interested consumers.
“Farm to Fitness presents a great opportunity to provide quality food to people who have made an effort to increase their overall health,” said Jordan Barnes, a personal trainer in Lincoln. “Access to this service enables people to make positive changes not only to their personal health but also to their local communities and the environment,” Barnes added. “I believe that this is a first step to creating a market that, with enough support, could change how our food is produced.”
“The farm to Fitness program is a good match between food producers and food consumers,” said John Hansen, president of Nebraska Farmers Union. “This collaborative effort is a win-win for everyone. We have made a lot of progress this past year with our joint efforts with HSUS to identify new value-added markets that our livestock producers can utilize.”
“We at are very excited to be a part of the Farm to Fitness program,” said Heath Murray, co-owner and trainer at iThinkFit gym in Omaha. “We take pride in providing our clients with proper workouts, supplementation, and now, some of the finest meats in the world. This relationship is going to take our business to the next level.”
“This new program is clear evidence that the HSUS collaboration with the Nebraska Farmers Union is delivering results that are good for animals, good for farmers and good for consumers. I congratulate John Hansen for his leadership in this effort.” Stated Joe Maxwell, Director of Rural Development and Outreach for HSUS.
ASA Announces 2013 Officers and Committee Assignments
The Board of Directors of the American Soybean Association (ASA) has confirmed Danny Murphy from Canton, Miss., as President and Steve Wellman from Syracuse, Neb., as Chairman. Board members also elected Ray Gaesser from Corning, Iowa, to serve as First Vice President, an office that places Gaesser in line to be ASA President in 2014.
Also elected were Randy Mann from Auburn, Ky. as Secretary and Richard Wilkins from Greenwood, Del. as Treasurer. Four Vice Presidents were also elected: Bob Henry from Robinson, Kan.; Bob Worth from Lake Benton, Minn.; Wade Cowan from Brownfield, Texas; and Mark Jackson from Rose Hill, Iowa. These soybean farmer-leaders form the nine-member ASA Executive Committee. Elections were held on Friday, Dec. 7, during ASA’s winter Board of Director’s meeting in St. Louis.
"My goals include completing the 2012 Farm Bill, continuing to work with the other organizations in our soy family and impressing upon soybean farmers the need for and value of ASA’s representation in Washington, D.C.,” Murphy said. “ASA will continue working to get a Farm Bill done in the Lame Duck session or early next year – the drought this year should make it evident how critical crop insurance is to soybean farmers. And to meet the demand for food and feed that will be required by the expected world population of 9 billion people in 2050, U.S. soybean farmers will need to sustainably increase our production in the face of increased regulation, competition from other crops, unfounded questions on the safety of biotechnology, and slow approvals of new biotech traits.”
Following the elections, committee assignments were announced. Public Affairs Committee Chairman Ray Gaesser is joined by committee members Jim Andrew (Iowa), Sam Butler (Ala.), Ted Glaub (Ark.), Bill Gordon (Minn.), Bruce Hall (Va.), Mark Huston (Canada), Rob Joslin (Ohio), Eric Maupin (Tenn.), Matt McCrate (Mo.), Dave Poppens (S.D.), Robert Ross (Okla.), Joe Steinkamp (Ohio), Davie Stephens (Ky.), Andy Welden (Mich.), Wyatt Whitford (N.C.) and Richard Wilkins (Mid.-Atl.).
The Membership & Corporate Relations Committee Chairman is Bob Worth, with committee members Dennis Bogaards (Iowa), Ron Bunjer (Minn.), Dean Campbell (Ill.), Wade Cowan (Texas), Cory Devillier (La.), Ed Erickson (N.D.), Walter Godwin (Ga./Fla.), Tom Raffety (Mo.), John Rivers (S.C.), Dan Roe (Wis.) and Jeff Sollars (Ohio).
Bob Henry was appointed Chairman of the Trade Policy & International Affairs Committee. Committee members are Mike Cunningham (Ill.), Bret Davis (Ohio), Todd Du Mond (N.Y.), Mark Jackson (Iowa), Ron Kindred (Ill.), Lance Peterson (Minn.), John Heisdorffer (Iowa), Kevin Hoyer (Wis.), Alan Kemper (Ind.), Randy Mann (Ky.), Jim Miller (Neb.), Kevin Scott (S.D.) and Lawrence Sukalski (Minn.).
Richard Wilkins was appointed Chairman of the Finance Committee, with James Andrew (Iowa), Ron Bunjer (Minn.), Ray Gaesser (Iowa), Ted Glaub (Ark.), Jim Miller (Neb.) and Jeff Sollars (Ohio) serving as committee members.
The Board welcomed eight new members who are Bret Davis (Ohio), Cory Devillier (La.), Bill Gordon (Minn.), Mark Huston (Canada), John Rivers (S.C.), Dan Roe (Wis.), Joe Steinkamp (Ind.) and Davie Stephens (Ky.).
ASA also recognized retiring directors Joe Steiner (Ohio), Charles Cannatella (La.), Barb Overlie (Minn.), Kevin Marriott (Canada), M.D. Floyd (S.C.), Tim Goodenough (Wis.), Scott Fritz (Ind.) and Jack Trumbo (Ky.)
Leaders Elected at 94th IFB Meeting in Des Moines
Joe Heinrich of Maquoketa was re-elected vice president of the Iowa Farm Bureau Federation (IFBF) at the organization's 94th annual meeting in Des Moines. County delegates also re-elected two district directors to the board. They include Carlton Kjos, District 1, of Decorah and Phil Sundblad, District 3, of Albert City. The board also elected challenger Mark Buskohl of Grundy Center as director of District 5.
Heinrich was voted as vice president of the Iowa Farm Bureau Federation in 2011. He served as a member of the IFBF board of directors, representing District 6 in eastern Iowa. He and his family run a dairy and beef cow-calf farm with his nephew. Together, their diversified farm also grows corn, soybeans, oats and hay.
Before Heinrich was elected to the board in 2004, he was active in both county and state Farm Bureau activities, serving as Jackson County president, vice president, voting delegate, young farmer chair and on the state internal study committee. Active in his local church and community, Heinrich also served as Jackson County Dairy Association county president and on the Jackson County Extension Council.
Heinrich is a graduate of Kirkwood Community College. He and his wife, Shelley, have two daughters.
Re-elected board member Kjos represents District 1, which consists of 11 counties in northeast Iowa. He was first elected to the position in 2006. Carlton has served in numerous leadership capacities as a Farm Bureau member, which includes county president, vice president, voting delegate, internal study committee, AFBF voting delegate, PAC committee member, and chairman of the beef advisory committee.
Additionally, Kjos was a member of the Winneshiek County Board of Supervisors and chairman of the Winneshiek County Planning and Zoning Commission. He was a board member of the Oneota Care Facility and served on the board of Spectrum Industries.
Kjos is a graduate of the University of Northern Iowa. He and wife, Cynthia, raise corn, soybeans, alfalfa, oats, and have a cow/calf herd. Their Winneshiek County farm has been in the family since 1862.
Sundblad, who also won re-election, represents District 3, which consists of 12 counties in northwest Iowa. He was first elected to the position in 2000. Before Sundblad was elected to the board in November 2000, he served in many leadership positions for the Buena Vista County Farm Bureau, including president, vice president, voting delegate and treasurer.
Sundblad currently serves as president of a locally-owned wind farm in Palo Alto County -- Crosswind Energy, LLC; chairman of the Food Board for Albert City Threshermen and Collectors; chairman of IOWA AgSTATE and is active in his local church. He and his wife, Brenda, have a corn and soybean operation. They have two children.
Newly-elected District 5 Board member Mark Buskohl represents District 5, which consists of 11 counties in central Iowa. Buskohl and his wife, Nancy, run a diversified cow, cattle, sheep, hay and grain farm near Grundy Center. Active in his local community and church, Buskhol has also served in many Farm Bureau leadership positions including county president, vice president and voting delegate. He most recently served as a member of the state internal study committee.
The IFBF delegates also elected five members to represent Iowa at the 2013 American Farm Bureau Federation (AFBF) convention in Nashville, TN. They are Jim Boyer of Ringsted, David Hommel of Eldora, Kevin Krumwiede of Ledyard, Karen Seipold of Hastings and Kyle Holthaus of Waukon.
Guy Petersen of Wyoming (Jones County) was elected to a three-year term on the IFBF internal study committee. Dave Seil of Gowrie (Webster County) was elected to the internal study committee to complete a one-year term vacated by Mark Buskohl. The internal study committee serves as a liaison between the county Farm Bureau voting delegates and the state board of directors.
RMA Announces Expansion of Trend-Adjusted Yield Endorsement
The Risk Management Agency (RMA) has announced that the "Trend-Adjusted APH" endorsement has been expanded into additional crops and locations for the 2013 crop year. It will be available in additional counties for soybeans, corn and wheat, and will also be expanded to canola, cotton, grain sorghum and rice in certain locations. This endorsement was first available in some soybean and corn counties for 2012 crops, and proved popular among farmers. Under the policy, a trend adjustment factor is estimated for each crop and county. This factor is equal to the estimated annual increase in yield, and is based on county average yields determined by the National Agricultural Statistics Service each year.
To be eligible for the Yield Option, the policyholder’s APH database must include at least one actual yield determined in one of the four most recent crop years. If the producer’s APH database has fewer than four actual yields within the previous 12 years, the adjustment is prorated. With this expansion, the trend-adjusted APH will be available for nearly all soybean farmers in 2013. For more information, contact your crop insurance agent.
Vilsack and Kirk Call on Russia to Suspend its new Testing Requirements for U.S. Meat Exports to Russia
United States Agriculture Secretary Tom Vilsack and United States Trade Representative Ron Kirk today issued the following statement in response to Russia's new requirements that U.S. beef and pork exports to Russia be tested and certified free of the feed additive ractopamine:
"The United States is very concerned that Russia has taken these actions, which appear to be inconsistent with its obligations as a member of the World Trade Organization. The United States calls on Russia to suspend these new measures and restore market access for U.S. beef and pork products. The United States sought, and Russia committed as part of its WTO accession package, to ensure that it adhered rigorously to WTO requirements and that it would use international standards unless it had a risk assessment to justify use of a more stringent standard. Especially in light of its commitment to use international standards, this is an important opportunity for Russia to demonstrate that it takes its WTO commitments seriously."
Industry Partnership Seeks Significant High-Oleic Expansion
In a bold, strategic move to expand demand for U.S. soy, the national soy checkoff has authorized the formation of a major industry partnership aimed at growing the market for a promising, healthier soy oil.
"This is what the soy checkoff is all about -- maximizing profit opportunities for all U.S. soybean farmers," says Vanessa Kummer, a former chair of the United Soybean Board (USB) and soybean farmer from North Dakota. "We have an opportunity to expand the acreage for high-oleic soybeans and strengthen U.S. soy's competitive position in the food and industrial sectors."
The promising new soy oil, high-oleic, features significantly increased oxidative stability which is critical for high heat applications like frying foods and also contains less saturated fats. This increased functionality will be important for both food and industrial customers.
The partnership accelerates the market development of high-oleic soybeans. It aims to have high-oleic soybeans available in maturity groups that cover up to 80 percent of U.S. soybean acres by 2020. Without the proposal, current industry projections put high-oleic soybeans at five to 10 percent of acres in 2020.
USB is partnering with the two seed companies with high-oleic varieties in the approval pipeline, DuPont Pioneer and Monsanto. The project outlines development of a broader range of maturity groups at a more rapid pace to reach the goal acreage and meet customer demands.
Partnerships with industry stakeholders aren't new for the checkoff. USB regularly partners with companies, such as John Deere and Goodyear, on projects that will benefit soybean farmers and maximize their profit potential.
Although a five-year project, checkoff farmer-leaders will annually review the project's impact on farmer profitability before making each year's financial commitments. Like all checkoff-funded activities, this project is subject to USDA approval, which is pending.
"This partnership will rapidly drive market adoption in key soybean-producing areas," adds Kummer. "By expanding high-oleic soy's availability, we are sending the right signals to the entire value chain and helping to develop new markets for our soybeans. This is a strategic move for our entire industry."
Oregon producer will chair board of farmer co-op CHS Inc.
Oregon farmer David Bielenberg has been elected chairman of the board of CHS Inc. (NASDAQ: CHSCP), the nation's leading farmer-owned cooperative and a global energy, grains and foods company.
Bielenberg was selected during the 17-member board's yearly reorganization meeting which followed the company's 2012 annual meeting on Dec. 6. He succeeds Jerry Hasnedl, a St. Hilaire, Minn., farmer who held the post during the past 12 months.
"This company has achieved unprecedented success in delivering value for its owners in recent years," Bielenberg said. "In the year ahead, the CHS Board of Directors will focus on continuing to deliver that for the producers and cooperatives that own CHS. This will include maximizing the value of CHS ownership for producers and cooperatives through a continued focus on our equity management program.
"In addition, we'll continue building on the company's success by driving our strategic momentum, growing enterprise value, maintaining an aggressive risk management approach and developing our skills as leaders."
Bielenberg has served a total of seven years on the CHS board, with terms from 2002-2006 and from 2009 to the present. During 2012, he was the board's assistant secretary-treasurer, chaired its Audit Committee and served on its Government Relations and board Executive committees. He operates a diverse agricultural operation near Silverton, Ore., which includes seed crops, vegetables, soft white wheat, greenhouse production and timberland.
He has held numerous cooperative and agricultural leadership roles including service as board member and president of Wilco Farmers Cooperative, Mt. Angel, Ore., and the East Valley Water District. Bielenberg holds a bachelor's of science degree in agricultural engineering from Oregon State University and is a graduate of the Texas A & M University executive program for agricultural producers. He completed the National Association of Corporate Directors comprehensive Director Professionalism course and received its Certificate of Director Education.
Also elected to one-year leadership terms were:
Dennis Carlson, Bismarck, N.D., as first vice chairman; elected to the board in 2001 and previously was second vice chairman.
Dan Schurr, LeClaire, Iowa, as secretary-treasurer; elected to the board in 2006 and previously was first vice chairman.
Steve Fritel, Rugby, N.D., as second vice chairman; elected to the board in 2003 and previously was secretary-treasurer.
Curt Eischens, Minneota, Minn., as assistant secretary-treasurer; elected to the board in 1990 and previously served as second vice chairman.
During the annual meeting, delegates elected David Johnsrud of Starbuck, Minn., to a three-year term on the CHS Board. He succeeds Michael Mulcahy of Waseca, Minn., who served nine years. Johnsrud farms in partnership with his brother and nephew. He has been a member of the board of directors of AgCountry Farm Credit Services since 2001, and currently serves as chairman. He also serves on the Minnesota Farm Credit Legislative Committee, with three years as chairman; was chairman of the Minnesota Farm Credit nominating committee for the AgriBank election in 2012, served on the Farmers Union Oil and Prairie Lake Co-op boards of directors from 1987 through 2007, with 15 years as board secretary; and was on the Mid-Minnesota Association Board, with terms as secretary and chairman, as well as on the State Directors' Association, with terms as treasurer. In 2010 he completed the Farm Credit Services Premier Governance Series and became a Certified Director and is a 2010 graduate of Minnesota Agricultural Rural Leadership Class V.
Members also re-elected Bielenberg, Fritel, David Kayser of Alexandria, S.D, and Don Anthony of Lexington, Neb., to three-year terms on the CHS Board.
Earnings, investments, global strategy position cooperative CHS for long-term success
Consistent strong financial performance, coupled with strategic domestic and global investments, have positioned CHS (NASDAQ: CHSCP) producer and co-op owners for long-term growth, leaders of the nation's largest cooperative reported at its annual meeting today.
"When it comes to the producers and cooperatives who own us, and the customers we serve around the world, we must not only invest in the future, but make sure we provide relevant options for doing business with us," said Carl Casale, CHS president and chief executive officer.
"In the last two years we've made three dozen major news announcements on investments and acquisitions on our owners' behalf that strengthen our presence at home and round the world in energy, grains, processing and food ingredients."
Casale and other leaders reported on 2012 results to more than 2,200 of the cooperative's owners and other guests at its annual meeting at the Minneapolis Convention Center.
In November, CHS reported record net income of $1.26 billion for fiscal 2012 (Sept. 1, 2011 – Aug. 31, 2012) on revenues of $40.6 billion, setting a new mark for U.S. agriculture cooperatives. During fiscal 2013, CHS will return an estimated $600 million of its fiscal 2012 earnings to its owners in cash.
"When other forms of business achieve this level of profit, the benefits are shared by those who may not have a direct relationship with the company beyond its earnings," said Jerry Hasnedl, CHS Board chairman and a St. Hilaire, Minn., farmer. "But this business not only provides its owners with energy, crop inputs, grain marketing and more, it delivers a direct return that helps farmers, ranchers and local cooperatives invest in their own growth."
CHS Chief Financial Officer David Kastelic reported that in 2012 CHS "made key investments in current business operations and in new ventures that will drive long-term success while maintaining a healthy balance sheet that will allow the company to continue investing in the future."
Among those attending were more than 300 young farmers and ranchers who participated in the CHS New Leaders Forum which included a focus on trends in precision agriculture.
Highlights for fiscal 2012 included:
Plans to acquire sole ownership of the McPherson, Kan., refinery in which it has long been majority owner. The facility also is the site of a $555 million coker project. CHS also continues to invest in its Laurel, Mont., refinery, as well as strengthening refined fuels supply and distribution in the northern tier of the U.S. and growing its propane, lubricants and renewable fuels businesses.
Expanded global commodities presence with new offices in South Korea, Singapore and Paraguay, along with grain origination and export acquisitions and joint ventures in the Black Sea region and South America. Strengthened U.S. grain exports through expansion of and investments in its TEMCO joint venture in the Pacific Northwest and establishment of a Port of Houston, Texas, grain through-put agreement.
Proposed construction of the first CHS nitrogen fertilizer manufacturing facility, planned for Spiritwood, N.D., and an investment in a Texas clean fuels project that includes sole access to 700,000 tons of urea.
Acquisition of an Israel-based soy foods and food ingredients business with two locations in that country, one in China and one in Nebraska. CHS also acquired a Creston, Iowa, soybean crushing plant focused on soy flour to supply the company's existing soy protein foods business.
Stronger cooperative system alignment as five co-ops and a Canadian firm chose to join the CHS Country Operations retail business unit and CHS partnered with several local co-ops on a variety of grain, crop nutrients and energy projects.
CHS University Initiative on Cooperative Education Launched
CHS Inc. (NASDAQ: CHSCP), the nation's leading farmer-owned cooperative, announced today it will launch a $2 million CHS University Initiative on Cooperative Education program, a major investment in building understanding of the cooperative business model through education, development and practical experience.
"As a farmer-owned cooperative, CHS is committed to investing in the future of the cooperative system," said Jerry Hasnedl, CHS Board chairman and a St. Hilaire, Minn. farmer. "This exciting new initiative will enable the next generation to achieve new levels of success as farmers and ranchers in the global marketplace, as employees with challenging careers in agriculture and as contributing citizens of rural communities."
The CHS University Initiative on Cooperative Education will support an extensive range of programs at universities and organizations across the country that integrate cooperative education into agribusiness curriculums, cooperative development and farm business studies. It will also support graduate-level cooperative education programs, soil, water and environmental studies, as well as technology-based learning programs.
"We are proud to launch the CHS University Initiative on Cooperative Education, which builds on more than eight decades of working with agricultural, cooperative and education entities, as well as the 20-year legacy of our Cooperative Education program," added William Nelson, president, CHS Foundation and vice president, CHS Corporate Citizenship. "
Partner universities and organizations include: University of Wisconsin, University of Minnesota, University of Missouri, The Ohio State University, North Dakota State University, University of Saskatchewan, Kansas State University, University of Idaho, Iowa State University, Cornell University and Southern Federation of Cooperatives.
25x'25 REsource: Standard Definition of Biomass Needed
With a new Congress coming to Washington next month, policy makers are presented with another significant opportunity to discuss, develop and implement a comprehensive, longstanding national energy plan. In any strategy aimed at meeting America's soaring energy demand, biomass must be considered a principal among the several renewable, sustainable solutions that make up the fastest growing domestic energy sector since 2006.
Still, the development of biomass has faced technical and commercial barriers, requiring significant investments in research and development, as well as infrastructure. The federal Renewable Fuel Standard, which remains under assault in Washington, must be retained and protected to ensure the continued developmental progress of fuel sources produced from farm and forestry residues, and, increasingly, purpose-grown biomass.
While there also has been criticism in some circles over the environmental impact of using biomass as an energy source, the 25x'25 Alliance believes that developing biomass under the 25x'25 Sustainability Principles insures that it can be harvested and used in a way that conserves, enhances and protects natural resources, as well as be economically viable, environmentally sound and socially acceptable.
However, there still remains another critical and, unfortunately, longstanding barrier to the unfettered development of biomass as a key energy resource: the variation in definition among legislative approaches to utilizing this resource.
A recent report issued by the Congressional Research Service, a nonpartisan agency charged with providing lawmakers background information pertinent to legislative issues, addresses the conflicts that have arisen since 2004 over how various proposals determine eligible biomass.
Biomass is basically organic matter that can be converted into energy. While most legislation involving biomass has focused on encouraging the production of liquid fuels from corn, other efforts to promote the use of biomass for power generation have focused on wood, wood residues, and milling waste.
For more than 30 years, the term biomass has been a part of legislation enacted by Congress for various programs, but U.S. consumers, utility groups, refinery managers, and others have not fully adopted biomass as an energy resource, attributable in large part to the varying characterizations of biomass in proposed legislation.
For example, the RFS, as updated in the 2007 Energy Independence and Security Act, specifically cites the use of biomass feedstocks such as crop residues; forest thinnings and solid residue remaining from forest product production; secondary annual crops planted on existing crop land; separated food and yard waste; and perennial grasses including switchgrass and miscanthus.
However, that RFS definition renders ineligible those same feedstocks if they come from idle cropland, naturally occurring forestland, federal lands, or former industrial land that could be producing energy crops. Blenders and refiners have no incentive or requirement to purchase biofuels produced from those sources. It prevents millions of acres of farm and forestlands from contributing to the nation's energy independence, costing rural jobs and income.
The restricted definition under the RFS also shrinks the environmental benefits available from forest biomass, including benefits to forests themselves from new investment in quality forest management. By excluding biomass from private forests as a tool in the U.S. clean energy strategy, the EISA definition negates a critical part of the solution to reducing the nation's dependence on foreign, high-carbon sources of fuel.
In fact, the limited EISA designation is one of at least four different definitions of qualifying forest biomass in federal statute, including a broader, more inclusive classification in the energy title of the now expired 2008 Farm Bill. The farm law more broadly defines renewable biomass as organic material available on a recurring basis. It also allows use of "materials, pre-commercial clippings or invasive species" from national forests and federal land.
There is certain to be discussion in the new, 113th Congress about energy, and stakeholders are encouraged to read the CRS report and be fully knowledgeable of the issue. They can then be prepared to informatively reach out to lawmakers and use the upcoming debate platforms to pursue a full and viable definition of biomass for energy. The use of biomass as an energy feedstock is a sustainable alternative to address U.S. energy security concerns, foreign oil dependence, rural economic development and diminishing sources of conventional energy.
R-CALF: Apparent Conflict of Interest in Checkoff
In a recent complaint sent to U.S. Agriculture Secretary Tom Vilsack and the U.S. Department of Agriculture's (USDA's) Inspector General Phyllis Fong, R-CALF USA seeks to confirm the accuracy of a news article indicating that an officer of the Beef Checkoff Program's Cattlemen's Beef Board (CBB) also is an officer of an organization that receives Beef Checkoff Program funding.
"If our information is correct, this is an outrageous conflict of interest," R-CALF USA wrote in its complaint.
The complaint explained that a Nov. 19 news article stated that Weldon Wynn, vice chair of the CBB, had been elected vice chairman of the U.S. Farmers and Ranchers Alliance, an organization that R-CALF USA claims already receives funding from the Beef Checkoff Program.
The complaint alleges that the U.S. Farmers and Ranchers Alliance (USFRA) also is seeking a 2013 grant in the amount of $216,958 from the Beef Checkoff Program through the National Cattlemen's Beef Association (NCBA).
The complaint states it would be unconscionable for USDA to tolerate a CBB appointee that serves in a fiduciary capacity for an organization that is a recipient of Beef Checkoff Program funds.
"It would be equally unconscionable if USDA does not provide even rudimentary oversight over the Beef Checkoff Program to ensure that such a blatant conflict of interest does not occur.
"If our information is correct and Weldon Wynn serves both to decide who is to receive Beef Checkoff Program funds (in his official capacity as a CBB officer) as well as to benefit directly from his own decisions (by directly representing the interests of Checkoff funds recipient USFRA), then this is further evidence of the ongoing, insidious and systemic corruption within the Beef Checkoff Program that USDA has chosen not to address.
"Please confirm whether or not USDA is allowing a CBB official to also represent the interests of a Beef Checkoff Program fund recipient," the complaint concludes.
In 2011 R-CALF USA filed an earlier complaint regarding a conflict of interest in the Beef Checkoff Program after it learned that the Deputy Administrator for the USDA Agricultural Marketing Service, Craig Morris, Ph.D., who oversaw the Beef Checkoff Program, was then listed as a current board member for the International Stockmen's Education Foundation, an organization like the U.S. Farmers and Ranchers Alliance that receives funding from the Beef Checkoff Program.
"As far as we know the only action USDA took in response to our 2011 complaint was to remove Dr. Morris from the board of directors of the International Stockmen's Education Foundation," said R-CALF USA CEO Bill Bullard.
"We are becoming increasingly frustrated with the recalcitrance of the USDA that knows full well there is deep-rooted corruption within the Beef Checkoff Program but refuses to do anything about it to protect cattle-producer contributions. All we know to do under these circumstances is to keep urging them to do what is right," Bullard added.
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