UNL Feedlot Roundtable rescheduled in West Point
Larry F Howard, Extension Educator, Cuming County
The University of Nebraska-Lincoln has rescheduled the Feedlot Roundtable meeting that was originally set on February 21st at West Point and cancelled due to the winter storm. We are offering another chance for producers to join us on Thursday, March 21 starting at 6:00 pm. at the Nielsen Community Center in West Point. The program will be an abbreviated version and will include UNL Beef Specialist, Galen Erickson discussing 2 timely topics: Offsetting High Priced Grain and Cow Confinement. We will also show the archived presentation by Dr Steve Koontz of CSU that discusses Key Issues Related to Formula Pricing. The evening will conclude with Erickson giving a UNL Feedlot Research Update. This program is sponsored by UNL Extension. The Nebraska Beef Council and the Cuming County Feeders Association will be sponsoring dinner. Cost for this event is $10 and payment will be accepted at the door. For more information or to register for please contact Deidra McCarthy (dmccarthy2@unl.edu) at the Panhandle Research and Extension Center ph. #308-632-1260 or the Cuming County Extension office (cuming-county@unl.edu) 402-372-6006.
Drylotting Cows Alternative Practice this Spring
Coming off of a drought season, most grazing experts are recommending delayed turnout on pasture this spring. That means feeding cows and potentially their calves much longer into spring in a sacrifice paddock or in the feedlot. Drylotting cows and calves can work well, but there are important management strategies that need to be considered.
Confinement feeding cows is not what we want to do, but we might have to do it. During the 2012 drought, over 60% of the nation’s cowherd was impacted. In 2011, it was 35% of the nation’s cowherd. Drought on the southern Plains in 2011 sent cows north to Nebraska and other northern Plains states where moisture was adequate. But last season, many Nebraska producers were forced to sell some of their cows.
Cows and calves can be successfully fed in drylot, but special management strategies must be followed to save on expenses and maintain animal health. Drylotting cows could be an alternative to having to sell off the herd. Don’t overfeed them if cows are confined. Feed to a target condition score. Objectives for drylotting cows include keeping the cows and calves healthy and containing costs as much as possible. Feeds in drylot might include crop residues, grains and co-products. Producers don’t have to finely grind feedstuffs. It works to feed grains whole or uncracked.
Cows can be limit fed successfully, but they might act hungry. You must meet their requirements, but you don’t need to give them all they can eat. If cows are lactating, producers need to remember that the calf will eat 1.5% to 2.5% of its body weight on a dry matter basis so the amount fed needs to be adjusted. In designing pens for drylotting cow-calf pairs, it’s important to set aside an area for the calf only, so they have their own creep feeding area if necessary and a water source away from the cows. The drylot could be a sacrifice area in a pasture that can be easily renovated.
For limit-feeding cows, each animal will need between 24 and 36 inches in bunk space and an area of about 500 to 800 square feet per cow. It’s best to sort young cows from the older cows in that situation.
It takes extra equipment to feed cows and calves in drylot, because it is best to have feed delivery equipment that can weigh ingredients, so the rations are correct. Producers can feed once a day, but could feed twice a day for the first week. The time of feed delivery and the amount fed should remain consistent for the best results. The real challenge in drylotting cows and limit feeding is keeping up with energy needs of the animals.
Madison County Farm Bureau to Sponsor Estate Transfer Planning Workshop in Norfolk
The Madison County Farm Bureau is sponsoring an informational workshop entitled: Keeping It In the Family - Wealth Transfer and Business Succession Workshop Wednesday, March 20th, from 2:00 p.m. to 5:00 p.m. at the Lifelong Learning Center on the Northeast Community College campus.
Featured speaker will be estate planning specialist Eryka Morehead. Ms. Morehead teaches farmers, ranchers and small business owners how to keep their business intact for the next generation. She will discuss some step-by step processes for various business scenario’s to help ensure business succession.
There is no cost or obligation to attend however, seating is limited and available on a first come, first served basis.
This is a new date for the meeting that was postponed due to a snow storm last month.
The median age of the Nebraska farmer/rancher is about 60 years. Of course, many are much older and we are seeing a shift in wealth due to death of those who have farm and ranch estates.
Many times, a son has been working with Dad on the farm for several years and when Mom & Dad pass away, his siblings desire their portion of the estate. Because his share of the land will not sustain a family, he must get a job in town as the estate is sold off. This is one of the reasons we are seeing our smaller operations disappear.
If these farmers and ranchers would have done some preliminary planning, there would have been funding set up in the estate to pay off the siblings and the son would continue to operate with a hitch.
Most older farmers and ranchers understand that they should put their affairs in order to achieve the above outcome, but they put it off until they suddenly pass away and it's too late. I believe one of the reasons they fail to prepare is they really have no idea of how to begin the preparation process. They don't know what to do or whom to trust.
This Business Secession workshop is designed to give them some ideas of what their options are and what steps to take to ensure their operation remains in tact for the next generation to continue to farm or ranch.
Sen. Johanns Awarded Farm Bureau ‘Golden Plow’
American Farm Bureau Federation President Bob Stallman presented Sen. Mike Johanns (R-Neb.) with AFBF’s “Golden Plow” award Monday evening during an event at the AFBF office. The Golden Plow is the highest recognition the organization grants members of Congress.
The Nebraska Farm Bureau nominated Johanns for the award because of his dedicated work as a member of Congress on issues important to Farm Bureau members. Soon after being elected to the Senate in 2008, Sen. Johanns immediately began working to seek collaborative solutions to the challenges facing farmers and ranchers, such as tax reform, trade expansion and regulatory oversight, Stallman said. Johanns also serves as a member of the Senate Agriculture Committee.
While the award is based on Johanns’ congressional achievements, Stallman said his commitment to agriculture can be traced throughout a career of political service—first as governor of Nebraska and then as secretary of agriculture under President George W. Bush.
“Regardless of whether he has served as governor, secretary or senator, one thing that is never in doubt is Mike Johanns’ commitment to agriculture,” Stallman said. “Sen. Johanns is a very deserving leader with a long and distinguished career of serving farmers and ranchers and I am pleased to say he was approved unanimously to receive this award by the AFBF board of directors.”
AFBF’s Golden Plow award recognizes members of Congress for distinguished agricultural leadership and support of Farm Bureau policies. Recipients are chosen based on having a philosophy or record that demonstrates a commitment to: the private enterprise system; sound agricultural policies supported by Farm Bureau; fiscal conservatism; and reduced federal regulations on businesses and individuals.
Nebraska Soybean Board Research Advisory Committee Meeting and March Board of Directors Meeting
The Nebraska Soybean Board will meet March 18 & 19, 2013, at the Embassy Suites, 1040 P Street, Lincoln, Nebraska. The Research Advisory Committee meeting will begin March 18, at 8:30 a.m. and end at 1:30 p.m. The Board of Directors regular business meeting will then come to order Monday, at 2:00 p.m. On Tuesday, March 19th the meeting will resume at 7:30 a.m. and adjourn at 12:00 p.m.
A complete agenda for the public meeting is available for inspection on the Nebraska Soybean Board website at www.nebraskasoybeans.org.
April 15th is the Deadline for Filing a Candidacy Petition For the NSB District Elections
April 15 is the deadline for filing a candidacy petition to run for a seat on the Nebraska Soybean Board (NSB). Soybean producers in Districts 2, 4 and 8 are invited to run for election by filing a candidacy petition by the April 15, 2013 deadline. The election of board members will be conducted via direct-mail ballots and candidate information will be provided to all producers residing within the district in which an election is to be held.
NSB Board Members receive no salary but are reimbursed for expenses incurred while carrying out Board business and will serve a three-year term that begins October 1, 2013.
District seats open are:
District 2: Counties Burt, Cuming, Dakota, Dixon, Stanton, Thurston and Wayne.
District 4: Counties of Boone, Hamilton, Merrick, Nance, Platte, Polk and York.
District 8: Counties of Arthur, Banner, Blaine, Box Butte, Brown, Chase, Cherry, Cheyenne, Custer, Dawes, Dawson, Deuel, Dundy, Frontier, Furnas, Garden, Garfield, Gosper, Grant, Greeley, Harlan, Hayes, Hitchcock, Hooker, Howard, Keith, Keya Paha, Kimball, Lincoln, Logan, Loup, McPherson, Morrill, Perkins, Phelps, Red Willow, Rock, Scotts Bluff, Sheridan, Sherman, Sioux, Thomas, Valley and Wheeler.
Candidates for the NSB seats must be:
• A Resident of Nebraska
• 21 years of age or older
• Soybean producer in Nebraska for at least five previous years
Prospective candidates must collect the signatures of 50 soybean producers in their district using an official Nebraska Soybean Board Candidacy Petition and return such petition to the Nebraska Soybean Board office on or before April 15, 2013, to be eligible for placement on the ballot. To obtain a candidacy petition, contact Victor Bohuslavsky at the Nebraska Soybean Board by calling 402-432-5720.
NUBeef-Anatomy App Educates Across Professions
A new app from NUBeef takes the user inside the carcasses of beef cattle.
NUBeef-Anatomy allows users to navigate through the anatomy of beef cattle and learn more about bones and muscles found in the carcass. The app functions as a digital beef anatomy textbook, said Steven Jones, professor of animal science at the University of Nebraska-Lincoln, who developed the media with EdMedia's instructional multimedia designer Vishal Singh.
"It is helpful for students to understand where each muscle is located in the beef carcass, its composition and eating quality," Jones said.
The information offered in the app could be used by animal science and veterinary students, 4-H and FFA members, meat processors, chefs, consumers and others.
As a user views each cross-section, they can view a picture of a selected muscle and learn about the anatomical and physical features of each muscle.
Anatomical information for each muscle includes action, origin, insertion, blood supply and innervation. Meat related information about the muscle includes composition and the eating qualities of tenderness, aroma, flavor and juiciness.
"This makes the app relevant to chefs and consumers as they determine proper methods of preparation," Jones said.
The NUBeef-Anatomy app is available in the Apple iTunes app store for iPhone and iPad for $4.99. For more information, visit the store at https://itunes.apple.com/us/app/nubeef-anatomy/id597656234?mt=8 or the IANR website at http://ianrhome.unl.edu/mobileapps/beefanatomy.
Nebraska Dairy Princess to be Crowned March 12
The Nebraska State Dairy Convention will feature the coronation of a new Nebraska Dairy Princess Tuesday, March 12, at Divots Convention Center. The event is part of the evening banquet beginning at 6:30 p.m.
Two candidates are vying for the title. They are:
- Lisa Temme, 21, daughter of Doug and Mary Temme of Temme Agribusiness near Wayne, and a junior in textile science at the University of Nebraska – Lincoln; and
- Jessica Yoesel, 19, daughter of Richard and Diana Yoesel of Yoesel Brothers Dairy near Falls City, and a freshman in elementary education at the University of Nebraska – Lincoln.
Selection of the new princess is based on an interview and presentation. The outgoing Nebraska Dairy Princess is Emma Lammers, daughter of Joe and Kathy Lammers of Hartington.
The Nebraska Dairy Princess reaches out to consumers to help them understand the important role dairy products play in a healthful diet, and provides information about how dairy farmers care for their cows and the resources used to produce milk. Her appearances include meetings, demonstrations, promotions, presentations, radio and television interviews, passing out trophies and ribbons, school visits and parades. Midwest Dairy Association’s Nebraska Division sponsors the program.
In addition to the princess coronation, the banquet features speaker Dave Hansen, a South Dakota dairy farmer who was featured in a recent Midwest Dairy Association video emphasizing how dairy plays an important role in feeding the world.
Judging for the new princess takes place during convention activities that include a trade show from 9 a.m. to 5 p.m., and informational sessions throughout the day. The Nebraska Holstein Association meets at 11 a.m. and the Nebraska State Dairy Association Annual Meeting takes place at 12:30 p.m.
The 2012 Nebraska Dairy Convention is free to all Nebraska dairy producers, families and guests. Questions about the convention can be directed to Rod Johnson, Nebraska State Dairy Association, at 402-261-5482 or rod@nebraskamilk.org.
Soybean Farmers Chart ASA Policy Course During 2013 Commodity Classic
Members of the voting delegates of the American Soybean Association (ASA) reaffirmed the association’s commitment to a comprehensive long-term farm bill, as well as additional critical soybean industry priorities, including exports and trade, transportation and biotechnology, among many others during its annual meeting Saturday during the final day of the 2013 Commodity Classic in Kissimmee, Fla.
"The resolutions process is a great reminder that ASA’s policies come directly from the ground up," said ASA President Danny Murphy, a soybean farmer from Canton, Miss. "The policies are raised, voted on and established as ASA priorities through an entirely farmer-driven process. It keeps farmers involved and it keeps ASA firmly tied to the everyday concerns of soybean farmers."
Farm Bill
Within the farm bill resolution language, ASA maintained that any new farm bill must not distort planting decisions, and it should protect and strengthen crop insurance as a viable risk management tool for soybean producers. While ASA supported the revenue-based Agriculture Risk Coverage (ARC) program in previous farm bill negotiations, ASA noted that it recognizes funding may be insufficient to cover the cost of this type of program, in which case, ASA also expressed its openness to consider strengthening the current crop insurance program with a Supplemental Coverage Option (SCO) program similar to that which was included in both the Senate and House versions of the bill.
Given that ASA recognizes some commodities also are interested in a program that protects against long-term price declines, the voting delegates affirmed ASA’s openness to including a program based on target prices and price losses in a new farm bill, provided that payments are decoupled from planting decisions. ASA will continue to oppose a target price program that would interfere with the ability of producers to respond to the market by distorting planting decisions.
Also in the farm bill discussion, delegates noted that in order to pay for the costs of improvements to crop insurance, SCO, and a decoupled target price program and to meet part of any deficit reduction targets, Direct Payments may have to be reduced or eliminated. As has been ASA’s position throughout the negotiations, ASA encourages agriculture to accept its fair share of spending reductions, provided they are proportionate with cuts to other federal programs and do not weaken the federal crop insurance program.
The farm bill resolution approved by the delegates also contained language encouraging Congress to protect valuable programs streamlining conservation programs, reauthorizing and funding biodiesel and biobased education programs, agricultural research, trade development and food aid programs.
Trade
ASA’s delegates formalized the association’s support of a comprehensive Transatlantic Trade and Investment Partnership (TTIP) Agreement with the European Union that would provide meaningful market access for exports of U.S. soybean products and address trade barriers, including current EU biotechnology policies, and the Renewable Energy Directive (RED).
Transportation
ASA continues support of funding for waterways infrastructure including additional and alternative financing measures that provide a steadier and more reliable funding stream to reduce project costs and timeframes for completion.
Biotechnology
Biotechnology was also a key topic of discussion, as delegates voted to encourage the swift approval and deregulation of high-oleic soybeans. The delegates also established the association’s opposition to state food labeling requirements that go beyond those implemented by the federal government.
Regulation
On regulatory matters, ASA’s delegates supported raising the quantity of on-farm fuel storage that would be subject to the EPA’s new regulations requiring containment plans and practices to 10,000 gallons or greater. Delegates also expressed support for voluntary conservation and water-quality programs that are farmer led.
Sustainability
Finally, delegates endorsed the work undertaken by the soybean industry to develop a "U.S. Soy Sustainability Assurance Protocol" that documents and promotes to buyers worldwide that U.S. soybeans are the world’s most sustainably-produced soybeans.
The resolutions passed by the delegates on Friday will be available in full on the ASA website,www.soygrowers.com, in the coming weeks.
CME Group Announces Reduced Grain and Oilseed Trading Hours in Response to Customer Outreach
CME Globex and floor hours to be amended for both CBOT grain and oilseed and KCBT markets
CME Group, the world's leading and most diverse derivatives marketplace, today announced it will reduce grain and oilseed trading hours following comprehensive outreach to producers, commercial customers, traders and other industry participants who manage their risk in its markets. Pending CFTC review, trading in CBOT grain and oilseed and KCBT markets will be amended from the current 21 hours, both on the floor and via its CME Globex electronic trading platform, for the Monday, April 8, 2013, trade date.
"Over the past several months, we have received significant customer feedback about the current CBOT grain trading hours," said Tim Andriesen, Managing Director, Agricultural Commodities and Alternative Investments, CME Group. "As a result, we engaged our customers more formally through one-on-one conversations, focus groups and an online survey, which attracted more than 4,000 responses, to determine what hours best meet their needs. While there were varying opinions about what the modifications to hours should be, we believe these changes balance the needs of our diverse global customers based on their feedback."
Beginning April 8, electronic and floor trading hours for CBOT Corn, Soybeans, Wheat, Soybean Meal, Soybean Oil, Rough Rice, Oats, and KCBT Wheat futures and options, plus all related CBOT and KCBT calendar spread options and inter-commodity spread options, will be amended as follows:
- Sunday to Friday, electronic trading from 7:00 p.m. to 7:45 a.m. CT
- Monday to Friday, break in electronic trading from 7:45 a.m. to 8:30 a.m. CT
- Monday to Friday, floor and CME Globex trading from 8:30 a.m. to 1:15 p.m. CT
Daily settlements for CME Globex and floor trading of these products will be based on market activity at or around 1:15 p.m. CT each day. Mini-Sized Corn, Mini-Sized Soybeans and Mini-Sized Wheat will continue to trade on CME Globex and on the floor until 1:45 p.m. CT.
Healthy Students Are Better Students: New Report Illustrates “The Wellness Impact” of Nutrition and Physical Activity on Improving Academic Achievement
As schools prepare for standardized testing this spring, school leaders, teachers and parents are focused on ensuring students are prepared to do their best. However, research shows that regular access to better nutrition — starting with breakfast — coupled with increased opportunities for physical activity may help students reach their potential throughout the school year, which may lead to better performance at testing time and beyond. Nutrient-rich foods and physical activity are not only good for child health, but also learning. Finding a balance between academic rigor and health and wellness efforts in the school environment has become an increasing priority.
A report issued yesterday, The Wellness Impact: Enhancing Academic Success through Healthy School Environments1, reinforces the “learning connection” — the crucial link between quality nutrition, physical activity and academic performance. The report was released by the GENYOUth Foundation, National Dairy Council (NDC), American College of Sports Medicine (ACSM) and the American School Health Association (ASHA).
Findings from The Wellness Impact: Enhancing Academic Success through Healthy School Environments suggest:
- More than half (62%) of all teens say they do not eat breakfast every day of the week.2
- Breakfast eaters have better attention and memory than breakfast skippers.3
- Three-in-four high school students aren’t active for the recommended 60 minutes each day.2
- Students who were more active during school performed better on standardized tests for reading, math and spelling.4
However, despite the report’s findings, U.S. schools face tremendous challenges to meet economic, health and academic demands. Many schools lack the funds to execute school wellness policies or to start breakfast programs. And as pressures mount to improve standardized test scores, many districts are shortening or eliminating opportunities for physical activity, such as recess and physical education (PE) classes.
To help overcome these challenges, Midwest Dairy Council, an affiliate of NDC, supports schools in their effort to set up healthy learning environments for students. Specifically, within the last two school years, Midwest Dairy has worked with schools on 42 projects among schools in 10 states to improve school breakfast programs. This represents works in 42 school buildings in 11 different school districts and amounts to an investment of more than $168,000 made by Midwest dairy farmers.
Proven school wellness programs such as Fuel Up to Play 60 — a program founded by NDC and the National Football League (NFL), in collaboration with the U.S. Department of Agriculture (USDA) — encourages students to take charge in making small, everyday changes toward a healthy lifestyle at school. In partnership with GENYOUth Foundation, Fuel Up to Play 60 has provided schools with more than $10 million in grants to help develop healthy in-school initiatives ranging from breakfast programs to walking clubs. Administrators and teachers have shared success stories indicating improved attention spans and increased attendance as a result of participating in Fuel Up to Play 60.
“The challenges of addressing student health in schools are many, and the obstacles are abundant,” says Dr. John Skretta, school district superintendent for the Norris District in Firth, Neb. “Fuel Up to Play 60 and the additional program resources available from Midwest Dairy Council should bolster the confidence and the can-do spirit of school wellness councils everywhere.”
To read how Fuel Up to Play 60 has made a positive impact in schools in the Midwest, visit: http://www.midwestdairy.com/0t181p190/fuel-up-to-play-60/.
While schools are the focal point in the movement to improve childhood health and wellness, they cannot act alone. The broader community, including business leaders, food and beverage companies, health professionals, community organizers, parents and students can help tackle the status quo by creating and sustaining opportunities for good nutrition and physical activity in schools.
Everyone from community leaders to parents can work together to champion for improved child health and wellness in schools. To read the full report visit www.GENYOUthFoundation.org and to get involved visit http://www.midwestdairy.com.
CWT Assists with 15.2 Million Pounds of Cheese, Butter and Whole Milk Powder Export Sales
Cooperatives Working Together (CWT) has accepted 12 requests for export assistance from Dairy Farmers of America, Northwest Dairy Association (Darigold), Foremost Farms USA, Maryland & Virginia Milk Producers Cooperative Association, Michigan Milk Producers Association, United Dairymen of Arizona and Upstate Niagara Cooperative (O-AT-KA) to sell 6.360 million pounds (2,885 metric tons) of Cheddar and Monterey Jack cheese, 8.794 million pounds (3,989 metric tons) of butter and 85,980 pounds (39 metric tons) of whole milk powder (WMP) to customers in Asia, Europe, the Middle East, North Africa, Oceania and South America. The product will be delivered March through August 2013.
Year-to-date, CWT has assisted member cooperatives in selling 30.095 million pounds of cheese, 21.618 million pounds of butter and 218,258 pounds of whole milk powder to 24 countries on six continents. These sales are the equivalent of 749.1 million pounds of milk on a milkfat basis, or the annual milk output of 35,670 cows. It is also more than 10 times the amount that the January 2013 U.S. milk production was above January 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.
Welcome to the KTIC Agriculture Information blog!!! Check back here for the latest in ag news and information, from local events to international happenings and government reports that affect your operation. Please email with suggestions! -Chad Moyer, Farm Director, KTIC Radio
Wednesday, March 6, 2013
Tuesday, March 5, 2013
Monday March 4 Ag News
Agricultural Groups Welcome U.S.-EU Trade Talks
A coalition of U.S. food and agricultural organizations led by the National Pork Producers Council today praised the Obama administration for launching negotiations with the European Union (EU) on a transatlantic free trade agreement (FTA) and for its insistence that the agreement be comprehensive and ambitious.
In a letter signed by 64 organizations sent today to the Office of the U.S. Trade Representative, the coalition said any FTA with the EU “must fit the excellent model established with the Trans-Pacific Partnership (TPP) … This means no less than a negotiation that covers all significant barriers in a single comprehensive agreement.”
The coalition expressed concern, however, with a trade working group report that suggested an initial U.S.-EU FTA be designed to “evolve over time,” eliminating most barriers to trade and investment but setting up a mechanism to address other barriers.
Recent statements from EU officials, for example, have raised doubts about the EU’s commitment to dealing with sanitary and phytosanitary (SPS) issues as part of the negotiations.
SPS issues must be addressed as part of the negotiations, the coalition wrote, not simply left to some future consultative mechanism, and SPS provisions must be enforceable.
The coalition pointed out that a comprehensive and ambitious U.S.-EU FTA will generate economic growth, reduce market volatility and create thousands of new jobs on both sides of the Atlantic.
“But such a momentous free trade agreement must be built on the foundation established by the United States in the TPP and other U.S. free trade agreements, which build … ‘the best trade policy for the future,’” wrote the coalition.
Iowa Weather Summary for February 2013
February brought temperatures varying from below zero to near 60. Precipitation during the month arrived as both rain and snow. Although most farmers welcomed any precipitation—whether rain or snow—concerns remained about the level of moisture that will be available as the growing season begins.
As February came to a close, topsoil moisture levels rated 45 percent very short, 41 percent short, 13 percent adequate, and 1 percent surplus. North Central Iowa is the driest area of the state with 66 percent very short. Over half the land is reported to be very short of moisture in 3 of the 9 districts in the State. North central, west central and southwest Iowa all report 57 percent or more of the land is very short of moisture.
Grain movement rated 47 percent none, 38 percent light, 13 percent moderate and 2 percent heavy. February had a few snowstorms which caused interruptions to grain transportation in some areas.
Availablity of hay and roughage supplies fell to 50 percent short, 49 percent adequate and 1 percent surplus with 31 percent of the remaining supply in good condition. Livestock conditions have been reported as normal. Hog and pig losses in February were 20 percent light, 79 percent average and 1 percent heavy. Cattle and calf losses were 23 percent light, 75 percent average and 2 percent heavy. For most of the winter farmers have been able to graze cattle on corn stalks which has helped stretch hay supplies. Calving has begun on some farms.
IOWA PRELIMINARY WEATHER SUMMARY
Provided by Harry Hillaker, State Climatologist, Iowa Department of Agriculture & Land Stewardship
FEBRUARY 2013
General Summary.
Iowa temperatures averaged 23.6 degrees or 0.4 degrees below normal while precipitation totaled 1.31 inches or 0.26 inches above normal. This ranks as the 66th warmest and 40th wettest February among 141 years of records.
Temperatures.
The month’s coldest weather came on the first day with actual temperatures falling to -14 degrees at Elkader and Indianola and wind chills down to -31 degrees at Mason City. However, the cold did not last long as above normal temperatures prevailed for 11 of the first 14 days of the month. Daytime temperatures frequently reached into the low fifties in southwestern and southern Iowa from the 3rd to the 13th. Keokuk recorded the month’s highest temperature at 59 degrees on the 10th. The second one-half of the month was mostly on the cold side with below normal temperatures prevailing on all but three of the last 14 days of the month. The colder late month weather was mostly the result of lower daytime temperatures owing to persistent cloudiness with only a few dates with subzero overnight lows.
Heating Degree Day Totals.
Home heating requirements, as estimated by heating degree day totals, averaged 10 percent greater than last February but the same as normal. Degree day totals for the season-to-date (since July 1, 2012) are running 8 percent greater than last season but 5% less than normal.
Precipitation.
The statewide average precipitation was slightly above normal for the third consecutive month thanks to four widespread precipitation events. Light to moderate rain fell over the southeast one-half of Iowa on the 6th-7th and statewide on the 9th-11th. Greatest precipitation totals fell across northern Iowa with the second storm with rain changing to light snow late in the event. The largest of the month’s storm systems came on the 21st-22nd with snow falling statewide. Greatest snow amounts of seven to ten inches fell mostly across northern and western Iowa while extreme eastern areas saw only two to four inches of accumulation. Finally, snow fell across the southeast two-thirds of the state on the 26th-27th with widespread eight to twelve inch amounts across central Iowa from Winterset to Waterloo. Traer in Tama County reported the most snow during this last event with 16 inches. Monthly precipitation totals were well above normal over parts of eastern Iowa and below normal over much of the west central and southwest. Preliminary totals varied from only 0.27 inches at Hastings in Mills County to 3.49 inches at Burlington. The statewide average snowfall was 10.5 inches or 3.7 inches above normal to rank as the 23rd snowiest February among 126 years of records.
Winter Summary.
The three mid-winter months averaged 24.3 degrees or 2.2 degrees above normal while precipitation totaled 3.84 inches or 0.50 inches above normal. This ranks as the 41st warmest and 42nd wettest winter among 140 years of records. This was the seventh consecutive wetter than normal winter for the state.
Russia/China Actions Renew Debate on Science-based Trade
The big news in the meat industry in recent weeks has involved two of our leading export markets, Russia and China. Neither country allows the production, sale or use of the two beta agonists that are registered for use in the United States, and in the past few months both have taken steps to enforce their bans on beta agonist residues in imported pork and beef.
The first to move was Russia, which notified the United States and other countries in December that they were required to certify that their pork and beef exports were free of ractopamine residues. When the U.S. government did not implement a program for certifying exports, Russia closed its market to imports of beef and pork from the United States. In the past week China also has notified USDA of its intention to implement new enforcement measures for its zero tolerance policy for ractopamine residues in pork imported from the United States.
Since beta agonists are widely used by U.S. producers, the only practical way to meet Russia’s or China’s zero tolerance requirement would be to segregate meat from animals that have been fed beta agonists from those that have not. This kind of product segregation program would add costs to the packer in addition to those incurred by producers who forego the use of these compounds. Nonetheless, before the Russian market closed, several large pork packing companies were giving serious consideration to implementing ractopamine-free programs and dedicating some part of their production to a product that is free of ractopamine residues.
This raises several important questions which have implications for the U.S. meat industry’s participation in the global marketplace and which, therefore, deserve the careful consideration of every member of this industry.
To understand why these packers are interested in meeting Russia’s zero-residue standard requires a closer look at the economics of the meat export business. Although Russia only accounts for roughly 7 percent of U.S. beef exports and 4 percent of pork exports, this understates its importance to the U.S. red meat industry that in 2012 found willing buyers for American pork in 116 different countries and beef in 132.
Last year Russia imported $566 million of U.S. beef and pork, but most of this trade was in only a few items (inside and gooseneck rounds, beef livers and hams). Because Russian buyers pay a premium for these items over customers in other foreign markets or here at home, where excess supplies of round and ham cuts as well as livers often put downward pressure on prices, the closure of the Russian market will have a larger negative impact on live hog and cattle prices here in the U.S. than the value of the lost trade alone. This is because these items will be sold at lower prices and the added supply will depress prices on the U.S. market. When you take into consideration the lower prices that will be paid for these items, the impact of losing the Russian market is closer to $800 million for the U.S. industry as a whole. This converts to roughly $15 per head for cattle and $4 per head for hogs.
China adds another dimension to the discussion. Although it remains closed to U.S. beef, China in 2012 purchased nearly 16 percent of all U.S. pork exports by volume, accounting for more than $704 million of U.S. product. That translates to about $4.75 per head for variety meat alone and closer to $7 per head when muscle cuts are included. Like Russia, China pays a premium for items that are undervalued by other markets. From feet to snouts to stomachs, the offal items purchased by China have a minimal alternative value, and up to 50 percent of the entire U.S. production of certain offals and byproducts is exported to China. While these are attention-getting numbers for an industry that operates with very low margins, Russia’s decision to enforce its ban on beta agonist residues and the recent action by China are not isolated events. Taiwan and the EU also have ractopamine-related import restrictions in place, and there are other markets where the lack of domestic regulations regarding beta agonist usage and residues make the trade environment uncertain. Over the past few months, as packers have contemplated how they would respond to Russia’s enforcement of its ban on beta agonist residues, they have also had in mind opportunities for supplying customers in these other markets.
The U.S. red meat industry has accomplished remarkable increases in efficiency and productivity by adopting new production technologies as they have been approved and brought to market. The use of those technologies has been a significant factor in the U.S. industries’ efficiency, with beta agonists alone adding up to $5 per head to producer profitability. Because our industry is so technology-driven and exports account for a growing share of our production, we have become strong advocates of the need for countries to base their health standards on the best available science. At the same time, one of the keys to the success the U.S. red meat industry has enjoyed in export markets has been our dedication and commitment to meeting customers’ expectations.
Russia’s ban on residues of beta agonists in imported meat brings into clear focus the dilemma that arises when our support for science-based trade and meeting the demands of our customers collide with a foreign country’s non-science-based import requirements. In the days and weeks leading up to the Russian market closure, the industry worked closely with the U.S. government to find a way to preserve access to the market. The industry has encouraged our government to press Russia to adopt a science-based standard for beta agonists. At the same time, we also asked USDA to develop a program for certifying residue-free exports. This two-track approach reflected the industry’s continued commitment to safe, effective production technologies and global trading rules that set science as the foundation for health standards. But it also reflected the industry’s commitment to supplying markets with the products they demand.
We remain hopeful that a way can be found to resume beef and pork exports to Russia but, for the foreseeable future, this is likely to be possible only if the U.S. and Russian governments can agree on a program under which USDA will certify beta agonist residue-free exports. Many in the industry are concerned that agreeing to such a program for Russia sets a precedent that could be followed by other countries. This is why it is so important for the U.S. government to continue to defend the principle of science-based trade and to press other governments to respect international scientific opinion on the safety and low risk of these compounds when properly utilized.
As we think about the implications of decisions that the industry and the U.S. government make in response to Russia’s decision to close its market to our exports, it is important to keep in mind that beta agonists are not approved for use in the EU, which is the principal pork exporter to Russia (and China). In addition, other pork exporting countries where beta agonists are approved for use, notably Canada and Brazil, are working with the Russian government to secure continued access to the Russian market.
Russia’s move to enforce its beta agonist policy is a clear reminder that if we are going to succeed in a very competitive global market, we are likely to be faced with some difficult decisions. Some of these decisions could require compromises that none of us like, but increasingly we are learning that this is an inevitable consequence of participating in a growing, lucrative and complicated global market.
Obama Nominates 3 to Cabinet Posts
(AP) -- President Barack Obama filled in more pieces of his second term leadership team Monday, nominating a trio of new advisers to lead the Energy Department, Environmental Protection Agency and budget office.
The nominations signal the White House's desire to get back to normal business after the president and Congress failed to avert the $85 billion in automatic spending cuts that started taking effect Friday. While the president has warned of dire consequences for the economy as a result of the cuts, the White House does not want the standoff with Congress to keep Obama from focusing on other second term priorities, including making nominations for top jobs and pursuing stricter gun laws and an overhaul of the nation's immigration system.
Two of Obama's new nominees will also focus on another second term priority — tackling the threat of climate change. To head that effort, Obama promoted current EPA official Gina McCarthy to lead the agency and MIT scientist Ernest Moniz to run the Energy Department.
"They're going to be making sure we're investing in American energy, that we're doing everything we can to combat the threat of climate change, that we're going to be creating jobs and economic opportunity," Obama said of McCarthy and Moniz. "They are going to be a great team."
The president also tapped Wal-Mart's Sylvia Mathews Burwell as his next budget chief, thrusting her into the center of Washington's heated partisan fiscal fights.
Speaking at a White House ceremony, Obama said Burwell not only knows how "to make the numbers add up" but to ignite middle class economic growth. He said Burwell and her team would face particular challenges as the so-called sequester cuts take hold, but said he was confident they would "do everything in their power to blunt the impact of these cuts on businesses and middle class families."
Burwell is Washington veteran, having served in several posts during the Clinton administration, including deputy OMB director. She currently heads the Wal-Mart Foundation, the philanthropic arm of the retail giant, and previously served as president of the Gates Foundation's Global Development Program.
Moniz, 68, oversees MIT's Energy Initiative, a research group that focuses on innovative ways to produce power while curbing greenhouse gas emissions. But unlike outgoing Energy Secretary Steven Chu, he is also well-versed in the ways of Washington, having served as the Energy Department's undersecretary in the Clinton administration.
Moniz has also advised Obama on central components of the administration's energy plan, including a retooling of the country's stalled nuclear waste program, energy research and development, and unconventional gas.
In a 2009 alumni interview published on Boston College's website, Moniz noted that he learned to balance both political and scientific demands while working in the Clinton administration. "Physics sometimes looked easy compared to doing the people's business," he said.
In nominating McCarthy to be the nation's top environmental steward, Obama is promoting a climate change champion and a 25-year veteran of environmental policy and politics. McCarthy has served under both Republicans and Democrats, and is known for a matter-of-fact approach appreciated by both businesses and environmental advocacy groups.
Among her past bosses: former Massachusetts governor and Obama's Republican presidential opponent Mitt Romney, for whom she was a special adviser on climate and environmental issues.
Since coming to Washington in 2009, McCarthy has been the most prominent defender of EPA policies. As the head of the air pollution division, she has been behind many of the agency's most controversial new rules — from placing the first limits on greenhouse gases on newly built power plants to the first-ever standard for toxic mercury pollution from burning coal for electricity.
All three nominees announced Monday must be confirmed by the Senate.
RFA Welcomes McCarthy and Moniz Appointments to EPA and Department of Energy
Bob Dinneen, President and CEO of the Renewable Fuels Association, today welcomed President Obama’s nominations of Gina McCarthy as Administrator of the Environmental Protection Agency (EPA) and Ernest Moniz as the next Secretary of Energy (DoE).
“Gina McCarthy is a very solid choice for EPA. She is knowledgeable, willing to listen, and straight-forward. She knows the EPA inside and out and has typically approached challenges with a common-sense determination to resolve them in a timely manner. As a Bostonian, I have to say I like her accent too.
“RFA and the ethanol producers we represent look forward to meeting with Secretary-designee Moniz to update him on the state of the U.S. ethanol industry, our track record of success in fostering greater energy independence, and the exciting results of ongoing investment in next generation biofuels.”
ACE statement on the nomination of Gina McCarthy to head up the EPA
The Executive Vice President for the American Coalition for Ethanol, Brian Jennings today released the following statement on Gina McCarthy’s nomination to replace Lisa Jackson as Administrator for the U.S. Environmental Protection Agency (EPA).
“We appreciate President Obama nominating Gina McCarthy as Administrator of EPA, a step which shows the President’s continued commitment to ethanol and other renewable fuels. Gina McCarthy understands the Renewable Fuel Standard to be the linchpin to our continued success reducing petroleum use and greenhouse gas emissions. She’s also familiar with how E15 passed the tests EPA administered before approving it as a safe option for 2001 and later model year passenger vehicles. Upon
AEC Applauds McCarthy Appointment as Administrator to EPA
Brooke Coleman, Executive Director of the Advanced Ethanol Council (AEC), applauded President Obama’s nomination of Gina McCarthy as Administrator of the Environmental Protection Agency (EPA).
“Gina McCarthy is the perfect choice. Her reputation as a doer with a deep understanding of the mechanics of critical air and energy regulations is well-earned. She has been very engaged on the development of the cellulosic biofuels industry and the administration of the Renewable Fuel Standard (RFS). She clearly knows how to get things done inside and outside of the agency, and the advanced ethanol industry looks forward to working with Gina McCarthy and her team.”
NCGA Praises Choice for EPA Administrator
National Corn Growers Association President Pam Johnson today congratulated Gina McCarthy on her nomination as administrator of the U.S. Environmental Protection Agency, as announced today by President Obama.
"We appreciated working with Assistant Administrator McCarthy over the past few years in her role as head of the EPA's Office of Air and Radiation, which was responsible for the approval of the E15 ethanol blend fuel option in 2012. We look forward to working closely with her and her team on ethanol and other issues that come before the agency."
Ethanol, Farm Bill Front-and-Center for Corn Farmers
Delegates to the National Corn Growers Association's Corn Congress policy meeting and corn growers elsewhere during the 2013 Commodity Classic last week talked up the importance of defending the Renewable Fuel Standard and getting a smart and strong five-year farm bill passed this year after the numerous delays of 2012.
At a time when corn yields are still rising strong, the importance of protecting a growing market like ethanol is paramount to corn farmers. Despite the drought last year, for example, more corn growers than ever before had yields of 300 or higher on the National Corn Yield Contest, demonstrating that all markets - livestock feed, exports, and others as well as ethanol - will be important to the organization.
"The Renewable Fuel Standard is important because it provides a level of stability to the marketplace and ensure that there is a good supply of domestic, renewable biofuel available," NCGA President Pam Johnson said. "It helps create jobs and save struggling rural communities."
Johnson also noted that corn growers believe it is time to make fundamental changes to long established farm programs, and growers support reforms that include programs that will provide assistance to growers only when it is most needed.
"An effective, affordable federal crop insurance program remains our No. 1 farm policy priority," Johnson said. "And we have long supported programs that complement growers' crop insurance protection in those years where prices or yields are significantly reduced. For growers, especially young farmers, managing the potential loss of revenue is critically important.''
Vilsack to Appoint Voting Members to FSA County Committees to Ensure Fair Representation
Agriculture Secretary Tom Vilsack announced today that he will appoint voting members from socially disadvantaged (SDA) communities to serve on county committees in county jurisdictions that lack fair SDA representation under the authority granted in the Farm Security and Rural Investment Act of 2002 (2002 Farm Bill). Appointments will be made beginning next week. The final rule that will be published in the March 4, 2013, Federal Register affirms the interim rule from June 4, 2012.
“For decades, county committees have played a critical role in delivering important federal farm programs to citizens of rural communities across our nation,” said Vilsack. “By strengthening county committees so that they fully represent the ethnic, racial and gender segments within the counties they serve, we are helping to ensure that these governing bodies play a vital and relevant role well into the future.”
Secretary Vilsack will use the authority granted in the 2002 Farm Bill to appoint SDA committee members with voting privileges. The appointed SDA committee members do not replace voting members who were elected but will supplement the existing election process. Currently there are 7,700 elected county committee members representing 2,244 county jurisdictions. Individuals who serve as non-voting minority advisors were encouraged to submit a nomination form indicating their willingness to serve. Nomination forms also have been accepted from community-based organizations representing SDA producers. The Secretary will appoint SDA voting members from the nominations received.
FSA will continue outreach efforts to increase SDA voter participation and SDA representation on county committees through the regular election process. Additionally, each year, USDA will conduct a fresh statistical analysis, and appointments with voting authority will continue to occur in areas identified as under-representing the diversity of area producers.
County committees were formed in the 1930s to oversee federal farm programs, a tool for grassroots engagement whereby locally elected committees give farmers effective self-government authority. That authority continues today, making farmers primary stewards of farm programs passed by Congress, including administration and outreach to all farmers and ranchers in their area.
USDA Dairy Products January 2013 Production Highlights
Total cheese output (excluding cottage cheese) was 933 million pounds, 2.4 percent above January 2012 but 2.0 percent below December 2012. Italian type cheese production totaled 400 million pounds, 0.2 percent below January 2012 and 2.3 percent below December 2012. American type cheese production totaled 375 million pounds, 2.4 percent above January 2012 but 2.4 percent below December 2012. Butter production was 185 million pounds, 2.6 percent above January 2012 and 7 percent above December 2012.
Dry milk powders (comparisons with January 2012)
Nonfat dry milk, human - 143 million pounds, down 6.9 percent.
Skim milk powders - 48.0 million pounds, up 20.8 percent.
Whey products (comparisons with January 2012)
Dry whey, total - 87.2 million pounds, down 9.3 percent.
Lactose, human and animal - 88.1 million pounds, up 1.6 percent.
Whey protein concentrate, total - 38.8 million pounds, up 0.8 percent.
Frozen products (comparisons with January 2012)
Ice cream, regular (hard) - 58.4 million gallons, up 5.9 percent.
Ice cream, lowfat (total) - 27.4 million gallons, down 3.9 percent.
Sherbet (hard) - 2.94 million gallons, down 3.9 percent.
Frozen yogurt (total) - 3.60 million gallons, up 3.4 percent.
National Dairy Producers Conference to Focus on Farm Bill, Immigration Reform Challenges
The outlook for a new farm bill, and a better safety net for dairy farmers, will be one of the key sessions at the upcoming National Dairy Producers Conference (NDPC) April 7 – 9 in Indianapolis, Indiana.
The conference, open to dairy farmers from across the country, will provide an in-depth discussion of the issues facing the dairy industry, with educational discussions on topics ranging from farm policy to immigration reform to agricultural finance. The meeting is organized by the National Milk Producers Federation (NMPF).
On Monday, April 8th, a two-hour session will address the prospects in 2013 for the NMPF-backed dairy reforms contained in the 2012 Farm Bill. That session will feature presentations from congressional staff, NMPF leadership, and agricultural economists – all discussing the outlook for getting the Dairy Security Act (DSA) passed this year, and how that measure would benefit farmers. Although the DSA came close to passage at the end of 2012, the agriculture committees in the House and Senate will have to restart the farm bill process this spring. The NDPC panel will review how that process will unfold, and will examine why a dairy margin insurance program with market stabilization will provide better financial protection for farmers compared to current programs.
"The National Dairy Producers Conference is the only forum where dairy farmers from across America can meet together and have in-depth discussions about the policy issues affecting them," said Jerry Kozak, President and CEO of NMPF. "There’s no shortage of major challenges right now in our business. The focus of this conference is on addressing solutions for the future."
In addition to reviewing the farm bill, the conference will include another session about the prospect for immigration reform legislation on Capitol Hill, with presentations from individuals representing dairy farmers, the White House and Congress. The National Dairy Producers Conference will also examine the state of the agricultural banking sector as it relates to dairy farming. A trade policy panel will address how the U.S. can both protect and promote its dairy products in world markets, while a panel on dairy cow marketing will focus on the marketing of cull dairy cows.
Guest speakers at the NDPC include Purdue agricultural economist Christopher Hurt, who will review the outlook for feed prices this year, and Bill Weldon of Elanco, who will discuss new ideas under development for products to enhance a dairy cow’s productivity.
The NDPC sessions will be preceded by an optional farm tour that will take place on Sunday, April 7th. Participants will be able to get an insider tour of Fair Oaks Farms, one of the largest dairies in the country, with a consumer education facility.
Although the conference is geared primarily toward dairy producers, anyone with a stake in the dairy industry is invited to attend. This may include dairy cooperative executives and directors, dairy processors, suppliers and consultants to the dairy industry, state and federal regulators, promotion organization executives, and academics.
The hotel registration deadline is March 14th. More information on the NDPC is available at www.nmpf.org/NDPC.
The Andersons Announces Second Quarter Cash Dividend
The Andersons, Inc. announced a second quarter 2013 cash dividend of 16 cents ($0.16) per share payable April 22, 2013, to shareholders of record on April 1, 2013. This is The Andersons' 66th consecutive quarterly cash dividend since its listing on the Nasdaq on February 20, 1996. There are approximately 18.7 million common shares outstanding.
A coalition of U.S. food and agricultural organizations led by the National Pork Producers Council today praised the Obama administration for launching negotiations with the European Union (EU) on a transatlantic free trade agreement (FTA) and for its insistence that the agreement be comprehensive and ambitious.
In a letter signed by 64 organizations sent today to the Office of the U.S. Trade Representative, the coalition said any FTA with the EU “must fit the excellent model established with the Trans-Pacific Partnership (TPP) … This means no less than a negotiation that covers all significant barriers in a single comprehensive agreement.”
The coalition expressed concern, however, with a trade working group report that suggested an initial U.S.-EU FTA be designed to “evolve over time,” eliminating most barriers to trade and investment but setting up a mechanism to address other barriers.
Recent statements from EU officials, for example, have raised doubts about the EU’s commitment to dealing with sanitary and phytosanitary (SPS) issues as part of the negotiations.
SPS issues must be addressed as part of the negotiations, the coalition wrote, not simply left to some future consultative mechanism, and SPS provisions must be enforceable.
The coalition pointed out that a comprehensive and ambitious U.S.-EU FTA will generate economic growth, reduce market volatility and create thousands of new jobs on both sides of the Atlantic.
“But such a momentous free trade agreement must be built on the foundation established by the United States in the TPP and other U.S. free trade agreements, which build … ‘the best trade policy for the future,’” wrote the coalition.
Iowa Weather Summary for February 2013
February brought temperatures varying from below zero to near 60. Precipitation during the month arrived as both rain and snow. Although most farmers welcomed any precipitation—whether rain or snow—concerns remained about the level of moisture that will be available as the growing season begins.
As February came to a close, topsoil moisture levels rated 45 percent very short, 41 percent short, 13 percent adequate, and 1 percent surplus. North Central Iowa is the driest area of the state with 66 percent very short. Over half the land is reported to be very short of moisture in 3 of the 9 districts in the State. North central, west central and southwest Iowa all report 57 percent or more of the land is very short of moisture.
Grain movement rated 47 percent none, 38 percent light, 13 percent moderate and 2 percent heavy. February had a few snowstorms which caused interruptions to grain transportation in some areas.
Availablity of hay and roughage supplies fell to 50 percent short, 49 percent adequate and 1 percent surplus with 31 percent of the remaining supply in good condition. Livestock conditions have been reported as normal. Hog and pig losses in February were 20 percent light, 79 percent average and 1 percent heavy. Cattle and calf losses were 23 percent light, 75 percent average and 2 percent heavy. For most of the winter farmers have been able to graze cattle on corn stalks which has helped stretch hay supplies. Calving has begun on some farms.
IOWA PRELIMINARY WEATHER SUMMARY
Provided by Harry Hillaker, State Climatologist, Iowa Department of Agriculture & Land Stewardship
FEBRUARY 2013
General Summary.
Iowa temperatures averaged 23.6 degrees or 0.4 degrees below normal while precipitation totaled 1.31 inches or 0.26 inches above normal. This ranks as the 66th warmest and 40th wettest February among 141 years of records.
Temperatures.
The month’s coldest weather came on the first day with actual temperatures falling to -14 degrees at Elkader and Indianola and wind chills down to -31 degrees at Mason City. However, the cold did not last long as above normal temperatures prevailed for 11 of the first 14 days of the month. Daytime temperatures frequently reached into the low fifties in southwestern and southern Iowa from the 3rd to the 13th. Keokuk recorded the month’s highest temperature at 59 degrees on the 10th. The second one-half of the month was mostly on the cold side with below normal temperatures prevailing on all but three of the last 14 days of the month. The colder late month weather was mostly the result of lower daytime temperatures owing to persistent cloudiness with only a few dates with subzero overnight lows.
Heating Degree Day Totals.
Home heating requirements, as estimated by heating degree day totals, averaged 10 percent greater than last February but the same as normal. Degree day totals for the season-to-date (since July 1, 2012) are running 8 percent greater than last season but 5% less than normal.
Precipitation.
The statewide average precipitation was slightly above normal for the third consecutive month thanks to four widespread precipitation events. Light to moderate rain fell over the southeast one-half of Iowa on the 6th-7th and statewide on the 9th-11th. Greatest precipitation totals fell across northern Iowa with the second storm with rain changing to light snow late in the event. The largest of the month’s storm systems came on the 21st-22nd with snow falling statewide. Greatest snow amounts of seven to ten inches fell mostly across northern and western Iowa while extreme eastern areas saw only two to four inches of accumulation. Finally, snow fell across the southeast two-thirds of the state on the 26th-27th with widespread eight to twelve inch amounts across central Iowa from Winterset to Waterloo. Traer in Tama County reported the most snow during this last event with 16 inches. Monthly precipitation totals were well above normal over parts of eastern Iowa and below normal over much of the west central and southwest. Preliminary totals varied from only 0.27 inches at Hastings in Mills County to 3.49 inches at Burlington. The statewide average snowfall was 10.5 inches or 3.7 inches above normal to rank as the 23rd snowiest February among 126 years of records.
Winter Summary.
The three mid-winter months averaged 24.3 degrees or 2.2 degrees above normal while precipitation totaled 3.84 inches or 0.50 inches above normal. This ranks as the 41st warmest and 42nd wettest winter among 140 years of records. This was the seventh consecutive wetter than normal winter for the state.
Russia/China Actions Renew Debate on Science-based Trade
The big news in the meat industry in recent weeks has involved two of our leading export markets, Russia and China. Neither country allows the production, sale or use of the two beta agonists that are registered for use in the United States, and in the past few months both have taken steps to enforce their bans on beta agonist residues in imported pork and beef.
The first to move was Russia, which notified the United States and other countries in December that they were required to certify that their pork and beef exports were free of ractopamine residues. When the U.S. government did not implement a program for certifying exports, Russia closed its market to imports of beef and pork from the United States. In the past week China also has notified USDA of its intention to implement new enforcement measures for its zero tolerance policy for ractopamine residues in pork imported from the United States.
Since beta agonists are widely used by U.S. producers, the only practical way to meet Russia’s or China’s zero tolerance requirement would be to segregate meat from animals that have been fed beta agonists from those that have not. This kind of product segregation program would add costs to the packer in addition to those incurred by producers who forego the use of these compounds. Nonetheless, before the Russian market closed, several large pork packing companies were giving serious consideration to implementing ractopamine-free programs and dedicating some part of their production to a product that is free of ractopamine residues.
This raises several important questions which have implications for the U.S. meat industry’s participation in the global marketplace and which, therefore, deserve the careful consideration of every member of this industry.
To understand why these packers are interested in meeting Russia’s zero-residue standard requires a closer look at the economics of the meat export business. Although Russia only accounts for roughly 7 percent of U.S. beef exports and 4 percent of pork exports, this understates its importance to the U.S. red meat industry that in 2012 found willing buyers for American pork in 116 different countries and beef in 132.
Last year Russia imported $566 million of U.S. beef and pork, but most of this trade was in only a few items (inside and gooseneck rounds, beef livers and hams). Because Russian buyers pay a premium for these items over customers in other foreign markets or here at home, where excess supplies of round and ham cuts as well as livers often put downward pressure on prices, the closure of the Russian market will have a larger negative impact on live hog and cattle prices here in the U.S. than the value of the lost trade alone. This is because these items will be sold at lower prices and the added supply will depress prices on the U.S. market. When you take into consideration the lower prices that will be paid for these items, the impact of losing the Russian market is closer to $800 million for the U.S. industry as a whole. This converts to roughly $15 per head for cattle and $4 per head for hogs.
China adds another dimension to the discussion. Although it remains closed to U.S. beef, China in 2012 purchased nearly 16 percent of all U.S. pork exports by volume, accounting for more than $704 million of U.S. product. That translates to about $4.75 per head for variety meat alone and closer to $7 per head when muscle cuts are included. Like Russia, China pays a premium for items that are undervalued by other markets. From feet to snouts to stomachs, the offal items purchased by China have a minimal alternative value, and up to 50 percent of the entire U.S. production of certain offals and byproducts is exported to China. While these are attention-getting numbers for an industry that operates with very low margins, Russia’s decision to enforce its ban on beta agonist residues and the recent action by China are not isolated events. Taiwan and the EU also have ractopamine-related import restrictions in place, and there are other markets where the lack of domestic regulations regarding beta agonist usage and residues make the trade environment uncertain. Over the past few months, as packers have contemplated how they would respond to Russia’s enforcement of its ban on beta agonist residues, they have also had in mind opportunities for supplying customers in these other markets.
The U.S. red meat industry has accomplished remarkable increases in efficiency and productivity by adopting new production technologies as they have been approved and brought to market. The use of those technologies has been a significant factor in the U.S. industries’ efficiency, with beta agonists alone adding up to $5 per head to producer profitability. Because our industry is so technology-driven and exports account for a growing share of our production, we have become strong advocates of the need for countries to base their health standards on the best available science. At the same time, one of the keys to the success the U.S. red meat industry has enjoyed in export markets has been our dedication and commitment to meeting customers’ expectations.
Russia’s ban on residues of beta agonists in imported meat brings into clear focus the dilemma that arises when our support for science-based trade and meeting the demands of our customers collide with a foreign country’s non-science-based import requirements. In the days and weeks leading up to the Russian market closure, the industry worked closely with the U.S. government to find a way to preserve access to the market. The industry has encouraged our government to press Russia to adopt a science-based standard for beta agonists. At the same time, we also asked USDA to develop a program for certifying residue-free exports. This two-track approach reflected the industry’s continued commitment to safe, effective production technologies and global trading rules that set science as the foundation for health standards. But it also reflected the industry’s commitment to supplying markets with the products they demand.
We remain hopeful that a way can be found to resume beef and pork exports to Russia but, for the foreseeable future, this is likely to be possible only if the U.S. and Russian governments can agree on a program under which USDA will certify beta agonist residue-free exports. Many in the industry are concerned that agreeing to such a program for Russia sets a precedent that could be followed by other countries. This is why it is so important for the U.S. government to continue to defend the principle of science-based trade and to press other governments to respect international scientific opinion on the safety and low risk of these compounds when properly utilized.
As we think about the implications of decisions that the industry and the U.S. government make in response to Russia’s decision to close its market to our exports, it is important to keep in mind that beta agonists are not approved for use in the EU, which is the principal pork exporter to Russia (and China). In addition, other pork exporting countries where beta agonists are approved for use, notably Canada and Brazil, are working with the Russian government to secure continued access to the Russian market.
Russia’s move to enforce its beta agonist policy is a clear reminder that if we are going to succeed in a very competitive global market, we are likely to be faced with some difficult decisions. Some of these decisions could require compromises that none of us like, but increasingly we are learning that this is an inevitable consequence of participating in a growing, lucrative and complicated global market.
Obama Nominates 3 to Cabinet Posts
(AP) -- President Barack Obama filled in more pieces of his second term leadership team Monday, nominating a trio of new advisers to lead the Energy Department, Environmental Protection Agency and budget office.
The nominations signal the White House's desire to get back to normal business after the president and Congress failed to avert the $85 billion in automatic spending cuts that started taking effect Friday. While the president has warned of dire consequences for the economy as a result of the cuts, the White House does not want the standoff with Congress to keep Obama from focusing on other second term priorities, including making nominations for top jobs and pursuing stricter gun laws and an overhaul of the nation's immigration system.
Two of Obama's new nominees will also focus on another second term priority — tackling the threat of climate change. To head that effort, Obama promoted current EPA official Gina McCarthy to lead the agency and MIT scientist Ernest Moniz to run the Energy Department.
"They're going to be making sure we're investing in American energy, that we're doing everything we can to combat the threat of climate change, that we're going to be creating jobs and economic opportunity," Obama said of McCarthy and Moniz. "They are going to be a great team."
The president also tapped Wal-Mart's Sylvia Mathews Burwell as his next budget chief, thrusting her into the center of Washington's heated partisan fiscal fights.
Speaking at a White House ceremony, Obama said Burwell not only knows how "to make the numbers add up" but to ignite middle class economic growth. He said Burwell and her team would face particular challenges as the so-called sequester cuts take hold, but said he was confident they would "do everything in their power to blunt the impact of these cuts on businesses and middle class families."
Burwell is Washington veteran, having served in several posts during the Clinton administration, including deputy OMB director. She currently heads the Wal-Mart Foundation, the philanthropic arm of the retail giant, and previously served as president of the Gates Foundation's Global Development Program.
Moniz, 68, oversees MIT's Energy Initiative, a research group that focuses on innovative ways to produce power while curbing greenhouse gas emissions. But unlike outgoing Energy Secretary Steven Chu, he is also well-versed in the ways of Washington, having served as the Energy Department's undersecretary in the Clinton administration.
Moniz has also advised Obama on central components of the administration's energy plan, including a retooling of the country's stalled nuclear waste program, energy research and development, and unconventional gas.
In a 2009 alumni interview published on Boston College's website, Moniz noted that he learned to balance both political and scientific demands while working in the Clinton administration. "Physics sometimes looked easy compared to doing the people's business," he said.
In nominating McCarthy to be the nation's top environmental steward, Obama is promoting a climate change champion and a 25-year veteran of environmental policy and politics. McCarthy has served under both Republicans and Democrats, and is known for a matter-of-fact approach appreciated by both businesses and environmental advocacy groups.
Among her past bosses: former Massachusetts governor and Obama's Republican presidential opponent Mitt Romney, for whom she was a special adviser on climate and environmental issues.
Since coming to Washington in 2009, McCarthy has been the most prominent defender of EPA policies. As the head of the air pollution division, she has been behind many of the agency's most controversial new rules — from placing the first limits on greenhouse gases on newly built power plants to the first-ever standard for toxic mercury pollution from burning coal for electricity.
All three nominees announced Monday must be confirmed by the Senate.
RFA Welcomes McCarthy and Moniz Appointments to EPA and Department of Energy
Bob Dinneen, President and CEO of the Renewable Fuels Association, today welcomed President Obama’s nominations of Gina McCarthy as Administrator of the Environmental Protection Agency (EPA) and Ernest Moniz as the next Secretary of Energy (DoE).
“Gina McCarthy is a very solid choice for EPA. She is knowledgeable, willing to listen, and straight-forward. She knows the EPA inside and out and has typically approached challenges with a common-sense determination to resolve them in a timely manner. As a Bostonian, I have to say I like her accent too.
“RFA and the ethanol producers we represent look forward to meeting with Secretary-designee Moniz to update him on the state of the U.S. ethanol industry, our track record of success in fostering greater energy independence, and the exciting results of ongoing investment in next generation biofuels.”
ACE statement on the nomination of Gina McCarthy to head up the EPA
The Executive Vice President for the American Coalition for Ethanol, Brian Jennings today released the following statement on Gina McCarthy’s nomination to replace Lisa Jackson as Administrator for the U.S. Environmental Protection Agency (EPA).
“We appreciate President Obama nominating Gina McCarthy as Administrator of EPA, a step which shows the President’s continued commitment to ethanol and other renewable fuels. Gina McCarthy understands the Renewable Fuel Standard to be the linchpin to our continued success reducing petroleum use and greenhouse gas emissions. She’s also familiar with how E15 passed the tests EPA administered before approving it as a safe option for 2001 and later model year passenger vehicles. Upon
AEC Applauds McCarthy Appointment as Administrator to EPA
Brooke Coleman, Executive Director of the Advanced Ethanol Council (AEC), applauded President Obama’s nomination of Gina McCarthy as Administrator of the Environmental Protection Agency (EPA).
“Gina McCarthy is the perfect choice. Her reputation as a doer with a deep understanding of the mechanics of critical air and energy regulations is well-earned. She has been very engaged on the development of the cellulosic biofuels industry and the administration of the Renewable Fuel Standard (RFS). She clearly knows how to get things done inside and outside of the agency, and the advanced ethanol industry looks forward to working with Gina McCarthy and her team.”
NCGA Praises Choice for EPA Administrator
National Corn Growers Association President Pam Johnson today congratulated Gina McCarthy on her nomination as administrator of the U.S. Environmental Protection Agency, as announced today by President Obama.
"We appreciated working with Assistant Administrator McCarthy over the past few years in her role as head of the EPA's Office of Air and Radiation, which was responsible for the approval of the E15 ethanol blend fuel option in 2012. We look forward to working closely with her and her team on ethanol and other issues that come before the agency."
Ethanol, Farm Bill Front-and-Center for Corn Farmers
Delegates to the National Corn Growers Association's Corn Congress policy meeting and corn growers elsewhere during the 2013 Commodity Classic last week talked up the importance of defending the Renewable Fuel Standard and getting a smart and strong five-year farm bill passed this year after the numerous delays of 2012.
At a time when corn yields are still rising strong, the importance of protecting a growing market like ethanol is paramount to corn farmers. Despite the drought last year, for example, more corn growers than ever before had yields of 300 or higher on the National Corn Yield Contest, demonstrating that all markets - livestock feed, exports, and others as well as ethanol - will be important to the organization.
"The Renewable Fuel Standard is important because it provides a level of stability to the marketplace and ensure that there is a good supply of domestic, renewable biofuel available," NCGA President Pam Johnson said. "It helps create jobs and save struggling rural communities."
Johnson also noted that corn growers believe it is time to make fundamental changes to long established farm programs, and growers support reforms that include programs that will provide assistance to growers only when it is most needed.
"An effective, affordable federal crop insurance program remains our No. 1 farm policy priority," Johnson said. "And we have long supported programs that complement growers' crop insurance protection in those years where prices or yields are significantly reduced. For growers, especially young farmers, managing the potential loss of revenue is critically important.''
Vilsack to Appoint Voting Members to FSA County Committees to Ensure Fair Representation
Agriculture Secretary Tom Vilsack announced today that he will appoint voting members from socially disadvantaged (SDA) communities to serve on county committees in county jurisdictions that lack fair SDA representation under the authority granted in the Farm Security and Rural Investment Act of 2002 (2002 Farm Bill). Appointments will be made beginning next week. The final rule that will be published in the March 4, 2013, Federal Register affirms the interim rule from June 4, 2012.
“For decades, county committees have played a critical role in delivering important federal farm programs to citizens of rural communities across our nation,” said Vilsack. “By strengthening county committees so that they fully represent the ethnic, racial and gender segments within the counties they serve, we are helping to ensure that these governing bodies play a vital and relevant role well into the future.”
Secretary Vilsack will use the authority granted in the 2002 Farm Bill to appoint SDA committee members with voting privileges. The appointed SDA committee members do not replace voting members who were elected but will supplement the existing election process. Currently there are 7,700 elected county committee members representing 2,244 county jurisdictions. Individuals who serve as non-voting minority advisors were encouraged to submit a nomination form indicating their willingness to serve. Nomination forms also have been accepted from community-based organizations representing SDA producers. The Secretary will appoint SDA voting members from the nominations received.
FSA will continue outreach efforts to increase SDA voter participation and SDA representation on county committees through the regular election process. Additionally, each year, USDA will conduct a fresh statistical analysis, and appointments with voting authority will continue to occur in areas identified as under-representing the diversity of area producers.
County committees were formed in the 1930s to oversee federal farm programs, a tool for grassroots engagement whereby locally elected committees give farmers effective self-government authority. That authority continues today, making farmers primary stewards of farm programs passed by Congress, including administration and outreach to all farmers and ranchers in their area.
USDA Dairy Products January 2013 Production Highlights
Total cheese output (excluding cottage cheese) was 933 million pounds, 2.4 percent above January 2012 but 2.0 percent below December 2012. Italian type cheese production totaled 400 million pounds, 0.2 percent below January 2012 and 2.3 percent below December 2012. American type cheese production totaled 375 million pounds, 2.4 percent above January 2012 but 2.4 percent below December 2012. Butter production was 185 million pounds, 2.6 percent above January 2012 and 7 percent above December 2012.
Dry milk powders (comparisons with January 2012)
Nonfat dry milk, human - 143 million pounds, down 6.9 percent.
Skim milk powders - 48.0 million pounds, up 20.8 percent.
Whey products (comparisons with January 2012)
Dry whey, total - 87.2 million pounds, down 9.3 percent.
Lactose, human and animal - 88.1 million pounds, up 1.6 percent.
Whey protein concentrate, total - 38.8 million pounds, up 0.8 percent.
Frozen products (comparisons with January 2012)
Ice cream, regular (hard) - 58.4 million gallons, up 5.9 percent.
Ice cream, lowfat (total) - 27.4 million gallons, down 3.9 percent.
Sherbet (hard) - 2.94 million gallons, down 3.9 percent.
Frozen yogurt (total) - 3.60 million gallons, up 3.4 percent.
National Dairy Producers Conference to Focus on Farm Bill, Immigration Reform Challenges
The outlook for a new farm bill, and a better safety net for dairy farmers, will be one of the key sessions at the upcoming National Dairy Producers Conference (NDPC) April 7 – 9 in Indianapolis, Indiana.
The conference, open to dairy farmers from across the country, will provide an in-depth discussion of the issues facing the dairy industry, with educational discussions on topics ranging from farm policy to immigration reform to agricultural finance. The meeting is organized by the National Milk Producers Federation (NMPF).
On Monday, April 8th, a two-hour session will address the prospects in 2013 for the NMPF-backed dairy reforms contained in the 2012 Farm Bill. That session will feature presentations from congressional staff, NMPF leadership, and agricultural economists – all discussing the outlook for getting the Dairy Security Act (DSA) passed this year, and how that measure would benefit farmers. Although the DSA came close to passage at the end of 2012, the agriculture committees in the House and Senate will have to restart the farm bill process this spring. The NDPC panel will review how that process will unfold, and will examine why a dairy margin insurance program with market stabilization will provide better financial protection for farmers compared to current programs.
"The National Dairy Producers Conference is the only forum where dairy farmers from across America can meet together and have in-depth discussions about the policy issues affecting them," said Jerry Kozak, President and CEO of NMPF. "There’s no shortage of major challenges right now in our business. The focus of this conference is on addressing solutions for the future."
In addition to reviewing the farm bill, the conference will include another session about the prospect for immigration reform legislation on Capitol Hill, with presentations from individuals representing dairy farmers, the White House and Congress. The National Dairy Producers Conference will also examine the state of the agricultural banking sector as it relates to dairy farming. A trade policy panel will address how the U.S. can both protect and promote its dairy products in world markets, while a panel on dairy cow marketing will focus on the marketing of cull dairy cows.
Guest speakers at the NDPC include Purdue agricultural economist Christopher Hurt, who will review the outlook for feed prices this year, and Bill Weldon of Elanco, who will discuss new ideas under development for products to enhance a dairy cow’s productivity.
The NDPC sessions will be preceded by an optional farm tour that will take place on Sunday, April 7th. Participants will be able to get an insider tour of Fair Oaks Farms, one of the largest dairies in the country, with a consumer education facility.
Although the conference is geared primarily toward dairy producers, anyone with a stake in the dairy industry is invited to attend. This may include dairy cooperative executives and directors, dairy processors, suppliers and consultants to the dairy industry, state and federal regulators, promotion organization executives, and academics.
The hotel registration deadline is March 14th. More information on the NDPC is available at www.nmpf.org/NDPC.
The Andersons Announces Second Quarter Cash Dividend
The Andersons, Inc. announced a second quarter 2013 cash dividend of 16 cents ($0.16) per share payable April 22, 2013, to shareholders of record on April 1, 2013. This is The Andersons' 66th consecutive quarterly cash dividend since its listing on the Nasdaq on February 20, 1996. There are approximately 18.7 million common shares outstanding.
Saturday, March 2, 2013
Friday March 1 Ag News
SIGNUP FOR THE 2013 FARM PROGRAM HAS STARTED
Farmers and landowners should be aware that signup for the 2013 Farm Program called the Direct and Counter-cyclical Payment (DCP) Program/Average Crop Revenue Program (ACRE) started in February stated Bruce J Coffey County Executive Director of the Colfax County Farm Service Agency. The Colfax County FSA Office is currently taking appointments for sign-up for the 2013 farm program.
Prior to calling the office for an appointment the producer should consider the following items:
-Have you added new farms to your operation this year --if yes then you will need to provide a copy of the lease or have the owner call our office to put your name on the farm.
-Has there been a change in ownership on any of the farms -if yes we need a copy of the filed deeds before changing our records.
-Has there been a change in your operation such as you are farming jointly with another producer or you have formed an entity (LLC or corporation). You need to provide this information immediately.
-Are any of the owners on the farm deceased? If yes we need to have the land records updated with a copy of the filed deed provided by you or the new landowner.
Producers can choose to go into DCP or ACRE on any of their farms regardless of which program they were in for crop year 2012. Coffey noted producers are encouraged to signup now rather than waiting until later when they will want to be in the field or have other commitments. If there is a written cash lease for the 2013 crop year, a copy of that lease can be provided to the office instead of getting the landowner signatures. Eligibility documents will also be required to be updated for 2013 including compliance with Adjusted Gross Income provisions and Highly Erodible Land/Wetland provisions reminded Coffey.
FARM RECORDS NEED UPDATED AT FARM SERVICE AGENCY
Farmers and landowners should make sure the records concerning ownership of the farm, operator of the farm, shareholders in corporations, etc. are updated immediately at your local FSA office. Colfax County FSA County Executive Director Bruce Coffey says. The farm records at FSA should match the records at the county courthouse. Also in many situations there are deceased producers that show as landowners on our records –these situations must be updated to the correct ownership. This is the producer’s responsibility. Our office cannot change the records until we are notified and the proper title transfer documents are provided. If you operate a farm with this situation, please contact the heirs or personal representative and get the needed records. Your efforts to ensure your farm records are correct will save all of us time during farm program signup noted Coffey.
Changes of land ownership must be updated in our office by providing a copy of the deed or other legal document showing this transfer. Our office is required to pay the correct producers on the farm based on land ownership and risk in the crop based on inputs in the growing crop. Coffey stated if you fail to update the ownership records at FSA, everyone on the farm will lose program benefits. Producers need to plan ahead to save everyone time during signup in the farm program. Anyone that has questions on what documents are needed, please contact the Colfax County FSA office at 402-352-5200.
FOREIGN LANDOWNERS MUST REPORT LAND TRANSACTIONS
Also, foreign investors who buy, sell, or hold a direct or indirect interest in agricultural lands in the United States are required under the Agricultural Foreign Investment Disclosure Act to report their holdings to USDA.
Coffey says, “The law requires foreign investors who buy or sell agricultural land to report the transactions within 90 days of the date of the sale." Report forms (FSA-153, Agricultural Foreign Investment Disclosure Act Report) are available at all Farm Service Agency offices and may be downloaded from the agency’s Web site http://www.fsa.usda.gov. The completed reports must be turned in to the Farm Service Agency county office where the land is located. The reporting requirement is nothing new Coffey said. It’s been on the books since 1978 and we work to remind investors and real estate professionals of the requirement at least once a year. Failure to file an accurate or timely report can result in a penalty with fines up to 25 percent of the fair market value of the agricultural land. If you need additional details, contact your local Farm Service Agency office.
Soil Testing Critical After a Drought Year
Steve Tonn, UNL Extension, Washington County
Most crop producers are beginning to think about the upcoming planting season. However, before planting season gets started, if you didn’t do soil testing in the fall then soil sampling should be near the top of your to do list this spring. The combination of drought conditions, heavy irrigation, and widely varying yields means that soil testing is more important than ever this year.
The big question is how the 2012 drought will affect nutrient requirements for this year. The net effect of crop nutrient removal on soil nutrient availability will vary from field to field, and with locations within fields.
For very low-yielding, rainfed corn fields, expect residual nitrate levels to be high. This will primarily be from unused fertilizer nitrogen. Soil mineralization of N will have been quite low in rainfed fields due to low moisture. Limited crop nitrogen removal and little or no leaching means that unused fertilizer nitrogen remains in the soil. Since we have not had an unusually wet winter, this nitrate-N will be mostly available for crop use this year. The only way to accurately account for residual nitrate-N is through deep sampling, to a depth of at least 2 feet. Unusually high residual nitrate levels following soybean harvest are not likely as soybean typically depletes soil nitrate-N to reduce energy needed for biological N fixation.
For irrigated fields, total irrigation amounts for 2012 were double or more compared to 2011 applications, with many more irrigation events for sprinkler-irrigated fields. Generally nitrate leaching with irrigation is not a concern with sprinkler-irrigated fields, due to irrigation amounts being one inch or less per event. Such frequent irrigation, combined with warm soil temperatures all summer, may have led to above-average mineralization of nitrogen from organic matter. Consequently, residual nitrate-N levels for sprinkler-irrigated fields may still be higher than normal, even if yields are not that much lower.
For irrigated fields with yields close to normal, expect little impact from drought on soil test levels of phosphorus (P), potassium (K), and other nutrients. For dryland fields, crop uptake of these nutrients will be less than normal. However, this may have little impact on soil test levels for P, K, and other nutrients. There may be some tendency toward higher soil test values, but soil tests for these nutrients are an estimate of plant availability over the growing season. However, most Nebraska soils are quite high in potassium, and thus slight differences in soil test K that can occur with the analytical process have no impact on the fertilizer recommendation.
In some cases, growers harvested fields intended for grain production as silage. In other cases, we saw more producers harvest crop residue as feed due to reduced pasture and hay production. Either way, growers should be aware of nutrient removal resulting from biomass harvest. Significant amounts of P, K, and micronutrients, as well as carbon, can be removed from the field with biomass harvest. If stalks are grazed rather than baled, expect much of the nutrient content in grazed residues to return to the field, minus the harvested weight of cattle once they are taken off the field.
Expect soil nutrient values — particularly residual nitrate — to be more variable this spring than in recent years from field to field, and within fields. The only way to know the availability of soil nutrients is to soil test. Making accurate estimates of profitable fertilizer rates for this year will require accurate soil test information.
There is still time before planting season to get soil samples taken and analyzed in order to make sound fertility decisions. Spring sampling should result in a more accurate prediction of nitrate-N availability. We are fortunate to have several good analytical labs where growers can have soil samples tested. Contact the Washington County Extension Office or visit the CropWatch web site cropwatch.unl.edu for a list of soil testing labs. Contact any of these labs for information on current pricing and how to ship samples.
Nebraska Farmers Union Sponsors College Students Attendance to College Conference on Cooperatives
18 agricultural students and their professors from 4 different Nebraska Colleges traveled to Minneapolis, Minnesota February 14-17 to learn about cooperatives under the guidance of Nebraska Farmers Union. The participating colleges included the University of Nebraska at Lincoln, Northeast Community College at Norfolk, Southeast Community College at Beatrice, and Nebraska College of Technical Agriculture at Curtis. The College Conference on Cooperatives brought a total of 97 students from 32 different Midwestern colleges and universities making it the largest College Conference on Cooperatives held to date.
The Cooperative Conference included tours of the CHS (Cenex Harvest States) Headquarters, the REI Sports Sales Coop, housing coops, food coops, and the Mill City Flour Museum. The Conference brought in speakers from a vast array of areas including renewable energy, ag coops, rural electric coops, credit unions, and new coops. NeFU Public Affairs Director Graham Christensen said, “We had another great conference. The feedback we received from the students and professors was very positive. The students learned about a host of different ways cooperatives can serve communities, and the wide range of career opportunities available that utilize the benefits of the cooperative approach to economic development. Everyone left Minneapolis excited about these new opportunities.”
The conference evaluations revealed that 47% of the students in attendance were from farms or ranches, 31% were rural, 12% were from small towns, and the remaining 10% were urban. Christensen said, “The College Cooperative Conference helps make more students aware of additional cooperative tools that can be used to create the economic opportunities needed to help our rural youth stay in their communities. We are pleased to partner with these Nebraska colleges to help send Nebraska kids to this Conference.”
The annual College Cooperative Conference is co-sponsored by the CHS Foundation in cooperation with the National Farmers Union Foundation. Nebraska Farmers Union was awarded a grant from the CHS Foundation to help defray the attendance costs for the Nebraska participants.
Upper Big Blue NRD Places Nitrate Management Zone 5 into Phase III Status; Zone 11 Moves to Phase II Designation
The Upper Big Blue NRD Board of Directors met on Tuesday, February 26, 2013, and approved placing Nitrate Management Zone 5 (York County) into a Phase III Status. Cities and villages located in Zone 5 include Bradshaw, Waco, and York.
Changes to District Rule 5 for setting the trigger levels in Phase II and Phase III management areas went into effect on February 1, 2013. The Phase III trigger is now 10 milligrams per liter (mg/l). Zone 5 has been a Phase II management area since 2003. Zone 5 has a median groundwater nitrate level of 12 mg/l.
The Phase II trigger is now 7 milligrams per liter (mg/l). The rules change also provides that no more than one management zone would be designated a Phase II management area each year. There are currently four management zones with a median nitrate level exceeding the Phase II trigger. Zone 11 (Seward County), which has a median groundwater nitrate level of 8.6 mg/l, has the highest level of the four zones, and has now been designated as a Phase II Management Zone. Cities and villages located in Zone 11 include Goehner, Milford, Seward, Tamora, and Utica.
Both Zone 5 and 6 have been in Phase II up to this point, however with Zone 5 moving into Phase III, certain requirements now must be met. Fall-Winter application of anhydrous ammonia in the Phase III Area must include a nitrification inhibitor. Spring anhydrous application would not require the use of a nitrification inhibitor. Zone 6 will remain in Phase II for now. Cities and villages in Zone 6 include Henderson, Luston, and a portion of McCool Junction.
Phase II and Phase III producers would also be required to use electrical resistance blocks or capacitance probes to schedule irrigation in one field. Scheduling irrigation using soil moisture information can reduce the risk of excess irrigation leaching nutrients from the root zone.
Increasing nitrates in groundwater have been a concern in the Upper Big Blue NRD for several years. Several communities in the District have found it necessary to construct new wells to comply with state and federal drinking water standards. Some communities have built, or are considering, treatment plants. Many rural residents have also replaced wells or installed private water treatment systems.
Nitrate is found naturally in the environment, however excess nitrates that are causing groundwater contamination come primarily from the use of commercial fertilizers. Nitrogen fertilizer is needed to produce corn, however the amount and timing of the fertilizer application can reduce the risks of groundwater contamination. Anhydrous ammonia is the most common form of nitrogen fertilizer used throughout the District.
Since 1996, the NRD has required that farmers wait until November 1st to apply anhydrous, and to wait until March 1st to apply other formulations of nitrogen fertilizer. In some parts of the District where groundwater nitrate is the highest, farmers are required by existing regulations to attend training classes, take soil samples, and calculate crop nitrogen needs. Despite these efforts, groundwater nitrate levels have continued to rise. The proposed changes to District Rule 5 are designed to encourage farmers to adopt fertilizer management practices that will reduce the opportunity time for nitrate leaching out of the crop root zone.
2013 GrillMaster Experience BBQ Tour Kicks Off
Today the Beef Checkoff Program, in partnership with the American GrillMaster Experience, announced the kick-off of a nationwide grilling tour taking place at Sam’s Club National BBQ Tour events. Using beef grilling demonstrations, product samples, recipes and other checkoff-funded resources, the American GrillMaster Experience educates and informs consumers about the value and benefits of cooking with beef and grilling techniques.
A total of 30 events covering 25 states are slated for the 2013 tour, which runs from March to November. Events will take place at Sam’s Club® locations, as part of the Sam’s Club National BBQ Tour, which is the largest Kansas City Barbeque Society (KCBS) sanctioned competition series. The Grill Master’s samples are sourced from premium quality Sam’s Club beef, which has a 200 percent freshness guarantee.
“I had the opportunity to experience the 2012 Bentonville, Ark., event and was thoroughly impressed,” says Brett Morris, producer from Ninnekah, Okla., and vice-chair of the Beef Image Committee. “It truly is an event everyone should experience because of the professionalism the checkoff sponsored Grill Master, Michael McDearman, puts into it.. In addition, when going behind the scenes, I thought I had eaten good beef before until I sampled the competition food and there was not one bad entry to be tasted! What really connects consumers to the experience is that the competitors demonstrate the potential beef taste and tenderness it can achieve. It will knock their socks off.”
In 2010, Sam’s Club launched a pilot competitive barbecue program and became the first major retailer to sponsor KCBS, the largest and most respected barbecue sanctioning body in the world. From that pilot program, the Sam’s Club National BBQ Tour was born. During 2011, the inaugural tour became the largest competitive barbecue series in America, and in 2013, the extremely popular competition series will award a whopping $500,000 in prize money.
“These events provide the beef checkoff with an opportunity to encourage interaction between the grillers and consumers,” said Morris. “The Grill Master showcases the different ways to prepare premium-quality beef and to bring out the full flavor and taste each product provides. He speaks about unique pairings for beef products and educates consumers with information they can take home and apply on their own grills.”
Click here to view the GrillMaster events schedule... GrillMasterTour.com. Stops include...
4/27/2013 - Overland Park, KS
7/20/2013 - Des Moines, IA
11/1/2013 - World Food Championships, Las Vegas, NV
General Session Offers Insight, Inspiration to a Packed House
This morning, emcee Mark Mayfield once again welcomed Commodity Classic General Session attendees to the forum. The packed house listened intently as Mayfield led the program through a series of exciting presentations from sponsor Dow AgroSciences, U.S. Secretary of Agriculture Tom Vilsack and inspirational speaker Chad Hymas. Rounded out by a talk show-style panel during which the presidents of all four hosting associations, General Session 2013 provided insight into the broader political climate affecting farmers as well as inspirational messages to take into the upcoming planting season.
Mayfield opened the presidents' roundtable conducting brief interviews with each participant. Speaking with National Corn Growers Association President Pam Johnson, Mayfield inquired first about the growing push for sustainability and what it means today for farmers.
"Sustainability for corn growers means that we continuously improve the way we grow corn," said Johnson, a farmer from Floyd, Iowa. "In our effort to improve, we need access to the best seed technology, genetics and agronomic practices. For us, sustainability is leaving the land in better shape for our kids and our grandkids."
Mayfield followed up by asking what Johnson believes will help shape a strong future for farmers.
"We have a great story to tell, but sadly we don't have that many farmers out there telling their story," she replied. "This is hurting us in D.C. with our policymakers and in our dialogue with consumers, who want to know who we are, what we do and that their food is safe."
Johnson called upon not only Commodity Classic attendees, but also on Americans across the country, to act now. Coming out of morning discussions with U.S. Secretary of Agriculture Tom Vilsack, she noted that the failure of Congress to pass a farm bill was only one small example of how inaction on the part of our legislators is impacting the country in major ways.
"If there is anything I can leave today with the audience, it is a call to action," said Johnson. "Everyone out there as an American and as a farmer needs to call their representatives in Congress. They need to say that we are mad as hell. We are sick of people pointing fingers and assigning blame. We aren't going to accept it anymore. You have to act responsibly, and you have to act now."
Mayfield then conducted similar interviews with American Soybean Association President Danny Murphy, National Association of Wheat Growers President Eric Youngren and National Sorghum Producers President Terry Swanson. Then, the conversation shifted to a more open format as the presidents discussed questions about the continued relevancy of agriculture. In addition to presenting their organization's thoughts on the issues, the discussion offered a glimpse into the many shared concerns and unique issues facing each group.
For the fourth consecutive year, Secretary Vilsack addressed attendees of Commodity Classic's General Session. He began by expressing his commitment to working with America's farmers.
"I want to start by expressing what every Secretary of Agriculture and all Americans should," said Sec. Vilsack. "Thank you for what you do, and what your families do, every single day. You not only produce enough food for all of our needs every single day, but you produce an abundance that enables us to export much of what you grow to feed the rest of the world and grow U.S. jobs."
Calling farmers both food providers and job creators, the Secretary noted how American farmers' willingness to embrace technology, advanced production practices and conservation techniques allows them to grow an abundance while acting as good stewards of the land and the water.
Next, he noted that most of the energy used across the country comes from rural America with more and more of this energy coming from the feed stock growers produce. This movement toward domestically-produced biofuels has helped reduce our nation's imports of foreign oil. He noted that upon entering his position the country imported 62 percent of its oil supply and now has been able to reduce that level to only 41 percent. He stated that, as this continues to drop steadily, rural America is making the entire nation stronger and more energy secure.
Acknowledging the drought of 2012, Sec. Vilsack outlined how the USDA will work to find ways to mitigate difficulties as the climate continues to warm. He then noted that, over the next year, the USDA will work toward initial steps to help agriculture deal with these challenges. In addition to initial steps, he affirmed that research into the possible challenges and ways to deal with them will continue into the foreseeable future.
The Secretary called on Congress to pass a five-year farm bill that helps build a safety net for farmers and provides support for the growing rural bioeconomy. As he did in prior speeches, he stressed the importance of forward-looking, comprehensive legislation in this area that helps continue the country's tradition of agricultural strength.
Finally, he noted that, before doing so, the Congress must pass a budget. Reminding the audience that the sequester will most probably go into effect later today, Sec. Vilsack described the ways in which these budget cuts must be implemented, how they will impact the USDA and how this will impact farmers.
As he concluded, Sec. Vilsack clarified earlier remarks about the relevance of rural America. He stressed that he is well aware of the important role that farmers play, but that shrinking populations have made farmers less of a voice in the federal government. Then, he stressed that by working together with those who want an economically secure, ecologically secure, energy secure country to fully realize the enormous opportunity in rural America.
NOAA Revises Winter's End Forecast
Government weather forecasts scrapped a dramatic forecast made just a week ago calling for above-normal March temperatures in the eastern two-thirds of the U.S., from southeast Arizona across the Midwest and the East Coast, with the lone exception of south Florida.
In an end-month update to the forecast issued Thursday, the National Oceanic and Atmospheric Administration said the outlook for temperatures in the entire region is cloudy. The entire area now carries an "equal chances" designation on NOAA's forecast map, meaning that temperatures could be normal, below-normal or above-normal.
NOAA also broadened the area of the Northwest were below-normal March temperatures were expected in its Feb. 21 forecast. The update shows below normal temperatures reaching from the entire Pacific Coast inward to Nebraska and stretching northeastwardly to western Iowa and western Wisconsin.
USDA Announces Commodity Credit Corporation Lending Rates for March 2013
U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for March 2013. The CCC borrowing rate-based charge for March 2013 is 0.125 percent, unchanged from 0.125 in February 2013. For 1996 and subsequent crop year commodity and marketing assistance loans, the interest rate for loans disbursed during March 2013 is 1.125 percent, unchanged from 1.125 in February 2013.
Interest rates for Farm Storage Facility Loans approved for March 2013 are as follows, 1.375 percent with seven-year loan terms, up from 1.250 in February 2013; 2.000 percent with 10-year loan terms, up from 1.875 in February 2013 and; 2.250 percent with 12-year loan terms, up from 2.125 percent in February 2013.
USDA to Simplify Guaranteed Farm Loans by Setting Thresholds on Interest Rates
The U.S. Department of Agriculture (USDA) today announced an interim rule that sets thresholds on the interest rates charged by lenders on guaranteed farm ownership and operating loans. The changes will amend guidelines for interest rates and establish new policies that clearly set the maximum interest rate lenders may charge to borrowers.
"By providing clear thresholds on interest rates for federally-guaranteed farm loans, USDA is ensuring greater certainty to producers, making compliance easier for our lenders and ensuring greater benefits for all farmers and ranchers," said Agriculture Secretary Tom Vilsack. "It is important that American agriculture continue to play a key role in driving economic growth and creating good-paying jobs across the American middle class. By setting thresholds on interest rates, USDA will strengthen access to farm credit."
USDA's Farm Service Agency (FSA) guaranteed loans reduce the risk of loss to lenders (banks, farm credit institutions and credit unions) by guaranteeing up to 95 percent of the loss of principal and interest on a loan. By reducing a lender's risk, borrowers benefit from a lower rate.
The interim rule on maximum interest rates for FSA-guaranteed loans will benefit lenders and producers alike. Lenders have expressed a desire to see greater clarity in FSA's interest rate policy. At the same time, FSA seeks greater consistency with industry standards and other government agencies that administer similar programs. The improvements in the new rule will make credit pricing procedures easier to follow and improve compliance for lenders.
At this time, FSA is also requesting additional comments on the interim policies in the rule, aiming to assure that the benchmark rates required of lenders do not prevent farmers and ranchers from obtaining guaranteed loans. USDA is seeking comments through June 3, 2013.
This interim rule is part of USDA's work to expand credit opportunities for America's farmers and ranchers. In January, USDA announced a new microloan program to help small and family operations, and beginning and socially disadvantaged farmers secure loans under $35,000. The new microloan program is aimed at bolstering the progress of producers through their start-up years by providing needed resources and helping to increase equity so that farmers may eventually graduate to commercial credit and expand their operations. The interest rate for microloans changes monthly and is currently 1.25 percent.
While USDA continues to introduce new products that are more responsive to the credit needs of its diverse customer base, the Department continues to expand its traditional farms loans. In fact, since 2009 USDA has made a record amount of farm loans—more than 134,000 loans totaling nearly $18 billion. USDA has increased the number of loans to beginning farmers and ranchers from 11,000 loans in 2008 to 15,000 loans in 2011. More than 40 percent of USDA's farm loans now go to beginning farmers. In addition, USDA has increased its lending to socially-disadvantaged producers by nearly 50 percent since 2008.
Informa Ups Brazil Estimates
Private analytical firm Informa Economics increased its crop projections for Brazil while holding its estimates for Argentina steady.
Informa pegged Brazil corn production at 71.6 million metric tons, a 1.3 mmt increase from its previous forecast. Even if the upwardly-revised estimate is realized, the crop will still be 1.4 mmt below last year's output. On soybeans, Informa boosted its Brazilian estimate to 84.5 mmt, a 500,000 mt jump. Brazil's harvest was 28% complete.
After receiving below-normal rains from early January to late February, Argentina's precipitation has returned to near-normal levels, Informa reports, and that's why it kept its corn forecast at 25 mmt. Informa expects Argentina will produce 51 mmt, also unchanged from last month, noting that rains in late February stabilized yields, given that the majority of beans there are flowering and filling.
USDA's estimate is higher on Brazilian corn production at 72.5 mmt and lower on soybean production at 83.5 mmt. As for Argentina, USDA is 2 mmt higher than Informa on soybeans and corn at 53 mmt and 27 mmt, respectively.
Paraguayan Soy Harvest Looks Good
With a large portion of the soybean harvest complete, farmers in Paraguay are celebrating what they believe will be a record harvest. While farmers in Argentina and parts of southern Brazil suffered from dry weather, the principle growing regions in Paraguay got decent showers in January. As a result, this week soy exporters association reaffirmed its forecast for a record crop of 8.5 million metric tons (mmt), nearly double last year's drought-hit output. Much of Paraguay's soy is produced along the borders with the Brazilian states of Parana and Mato Grosso do Sul.
AgriBank Reports Fourth Quarter 2012 and Year End Financial Results
Today St. Paul based AgriBank announced financial results for the fourth quarter of 2012 and year end, reporting continued strong levels of net income, capital, liquidity and credit quality.
“Continued demand, coupled with the 2012 drought, and resulting anticipated small carryover stocks, kept key district commodity prices strong. Most crop producers purchased crop insurance which contributed to solid incomes. Many livestock producers used hedging strategies to mitigate exposure to higher feed costs,” said AgriBank CEO Bill York. “Near record net farm income fueled increasing land values, and concerns about tax changes drove many real estate transactions. These factors, and continued opportunities to refinance to lower cost debt, contributed to the strong growth and earnings achieved.”
Year End 2012 Results Compared to Year End 2011 Results
Net income rose 11% to $514.2 million for the year, up from $464.9 million in 2011. Net interest income was $483.9 million compared with $457.7 million last year, driven primarily by an increase in retail volume, including significant growth in loan participations purchased from the AgDirect equipment financing program. Net interest income remains elevated as the Bank continued to take advantage of a favorable interest rate environment by re-pricing callable debt at lower costs.
Loan loss provisions decreased 13% to $7.4 million.
Non-interest income was up 26% to $153.7 million from $121.7 million in 2011. The increase was attributable to a $30.7 million (67%) increase in income from mineral rights held by AgriBank, the majority of which are in North Dakota and a $15.0 million non-recurring refund from the Farm Credit System Insurance Corporation.
Fourth Quarter 2012 Results
Quarterly net income was $129.4 million compared with $126.5 million for the same period of 2011. The positive impacts of higher net interest income and continued strong mineral income were primarily offset by a reduction in loan prepayment and fee income which are leveling off from highs experienced during the same period of last year.
Loan Portfolio
Total loans grew 12% year-over-year to $69.7 billion at the end of the year, reflecting the growth in retail loans made by Associations in the AgriBank District primarily due to demand for cropland, tax planning strategies and uncertainty regarding tax law changes at year end.
AgriBank’s loan portfolio credit quality remains strong with 99.7% non-adverse loans at the end of the year, the same as the end of last year. Nonaccrual loans declined to $51.4 million from $62.0 million at the end of last year while the allowance for loan losses was $13.3 million compared with $9.2 million.
AgriBank’s overall strong results reflect a continued robust Midwest farm economy despite the effects of the 2012 drought. The significant majority of U.S. corn and soybean production occurs in the AgriBank District. The February 11, 2013 U. S. Department of Agriculture Economic Research Service report projects high levels for both U.S. net farm income ($112.8 billion) and net cash income ($135.6 billion) in 2012. Net farm income for 2012 is forecasted to be down 4.3% from 2011. The income levels forecasted are driven by increased price levels in the grain commodities of corn, soybean and wheat and increases in crop insurance indemnities due to the significant 2012 drought.
Significantly lower production levels, due to drought conditions, are the primary driver for higher corn, soybean and other feed grain prices. The Federal crop insurance program, which is widely used by crop producers, will mitigate the worst impacts of the drought. Usage of the Federal crop insurance program, that includes revenue protection plans, is expected to allow crop producer income to remain adequate. Strong liquidity and equity positions of many borrowers in the loan portfolios are reflected in continued favorable credit quality.
However, high grain commodity prices, which are a primary expense component for the livestock sector, have negatively impacted the livestock sector. Price risk and margin management strategies employed by many livestock producers have allowed many to remain profitable in 2012 or at a minimum minimize losses. However, negative operating margins are likely, for at least a portion of 2013, as the effect of high grain commodity prices are generally unavoidable.
NASA Tests 50% Camelina-Based Jet Fuel
NASA researchers have begun a series of flights using the agency's DC-8 flying laboratory to study the effects of a 50% blend of camelina-based jet fuel on engine performance, emissions and aircraft-generated contrails at altitude.
The Alternative Fuel Effects on Contrails and Cruise Emissions, or ACCESS, research involves flying the DC-8 as high as 40,000 feet while an instrumented NASA Falcon HU-25 aircraft trails behind at distances ranging from 300 feet to more than 10 miles.
"We believe this study will improve understanding of contrails formation and quantify potential benefits of renewable alternate fuels in terms of aviation's impact on the environment," said Ruben Del Rosario, manager of NASA's Fixed Wing Project.
ACCESS flight operations are being staged from NASA's Dryden Aircraft Operations Facility in Palmdale, Calif., and will take place mostly within restricted airspace over Edwards Air Force Base, Calif.
During the flights, the DC-8's four CFM56 engines will be powered by conventional JP-8 jet fuel, or a 50-50 blend of JP-8 and an alternative fuel of hydroprocessed esters and fatty acids that comes from camelina plants.
More than a dozen instruments mounted on the Falcon jet will characterize the soot and gases streaming from the DC-8, monitor the way exhaust plumes change in composition as they mix with air, and investigate the role emissions play in contrail formation.
Also, if weather conditions permit, the Falcon jet will trail commercial aircraft flying in the southern California region in coordination with air traffic controllers to survey the exhaust emissions from a safe distance of 10 miles.
The flight campaign began Feb. 28 and is expected to take as long as three weeks to complete.
Farmers and landowners should be aware that signup for the 2013 Farm Program called the Direct and Counter-cyclical Payment (DCP) Program/Average Crop Revenue Program (ACRE) started in February stated Bruce J Coffey County Executive Director of the Colfax County Farm Service Agency. The Colfax County FSA Office is currently taking appointments for sign-up for the 2013 farm program.
Prior to calling the office for an appointment the producer should consider the following items:
-Have you added new farms to your operation this year --if yes then you will need to provide a copy of the lease or have the owner call our office to put your name on the farm.
-Has there been a change in ownership on any of the farms -if yes we need a copy of the filed deeds before changing our records.
-Has there been a change in your operation such as you are farming jointly with another producer or you have formed an entity (LLC or corporation). You need to provide this information immediately.
-Are any of the owners on the farm deceased? If yes we need to have the land records updated with a copy of the filed deed provided by you or the new landowner.
Producers can choose to go into DCP or ACRE on any of their farms regardless of which program they were in for crop year 2012. Coffey noted producers are encouraged to signup now rather than waiting until later when they will want to be in the field or have other commitments. If there is a written cash lease for the 2013 crop year, a copy of that lease can be provided to the office instead of getting the landowner signatures. Eligibility documents will also be required to be updated for 2013 including compliance with Adjusted Gross Income provisions and Highly Erodible Land/Wetland provisions reminded Coffey.
FARM RECORDS NEED UPDATED AT FARM SERVICE AGENCY
Farmers and landowners should make sure the records concerning ownership of the farm, operator of the farm, shareholders in corporations, etc. are updated immediately at your local FSA office. Colfax County FSA County Executive Director Bruce Coffey says. The farm records at FSA should match the records at the county courthouse. Also in many situations there are deceased producers that show as landowners on our records –these situations must be updated to the correct ownership. This is the producer’s responsibility. Our office cannot change the records until we are notified and the proper title transfer documents are provided. If you operate a farm with this situation, please contact the heirs or personal representative and get the needed records. Your efforts to ensure your farm records are correct will save all of us time during farm program signup noted Coffey.
Changes of land ownership must be updated in our office by providing a copy of the deed or other legal document showing this transfer. Our office is required to pay the correct producers on the farm based on land ownership and risk in the crop based on inputs in the growing crop. Coffey stated if you fail to update the ownership records at FSA, everyone on the farm will lose program benefits. Producers need to plan ahead to save everyone time during signup in the farm program. Anyone that has questions on what documents are needed, please contact the Colfax County FSA office at 402-352-5200.
FOREIGN LANDOWNERS MUST REPORT LAND TRANSACTIONS
Also, foreign investors who buy, sell, or hold a direct or indirect interest in agricultural lands in the United States are required under the Agricultural Foreign Investment Disclosure Act to report their holdings to USDA.
Coffey says, “The law requires foreign investors who buy or sell agricultural land to report the transactions within 90 days of the date of the sale." Report forms (FSA-153, Agricultural Foreign Investment Disclosure Act Report) are available at all Farm Service Agency offices and may be downloaded from the agency’s Web site http://www.fsa.usda.gov. The completed reports must be turned in to the Farm Service Agency county office where the land is located. The reporting requirement is nothing new Coffey said. It’s been on the books since 1978 and we work to remind investors and real estate professionals of the requirement at least once a year. Failure to file an accurate or timely report can result in a penalty with fines up to 25 percent of the fair market value of the agricultural land. If you need additional details, contact your local Farm Service Agency office.
Soil Testing Critical After a Drought Year
Steve Tonn, UNL Extension, Washington County
Most crop producers are beginning to think about the upcoming planting season. However, before planting season gets started, if you didn’t do soil testing in the fall then soil sampling should be near the top of your to do list this spring. The combination of drought conditions, heavy irrigation, and widely varying yields means that soil testing is more important than ever this year.
The big question is how the 2012 drought will affect nutrient requirements for this year. The net effect of crop nutrient removal on soil nutrient availability will vary from field to field, and with locations within fields.
For very low-yielding, rainfed corn fields, expect residual nitrate levels to be high. This will primarily be from unused fertilizer nitrogen. Soil mineralization of N will have been quite low in rainfed fields due to low moisture. Limited crop nitrogen removal and little or no leaching means that unused fertilizer nitrogen remains in the soil. Since we have not had an unusually wet winter, this nitrate-N will be mostly available for crop use this year. The only way to accurately account for residual nitrate-N is through deep sampling, to a depth of at least 2 feet. Unusually high residual nitrate levels following soybean harvest are not likely as soybean typically depletes soil nitrate-N to reduce energy needed for biological N fixation.
For irrigated fields, total irrigation amounts for 2012 were double or more compared to 2011 applications, with many more irrigation events for sprinkler-irrigated fields. Generally nitrate leaching with irrigation is not a concern with sprinkler-irrigated fields, due to irrigation amounts being one inch or less per event. Such frequent irrigation, combined with warm soil temperatures all summer, may have led to above-average mineralization of nitrogen from organic matter. Consequently, residual nitrate-N levels for sprinkler-irrigated fields may still be higher than normal, even if yields are not that much lower.
For irrigated fields with yields close to normal, expect little impact from drought on soil test levels of phosphorus (P), potassium (K), and other nutrients. For dryland fields, crop uptake of these nutrients will be less than normal. However, this may have little impact on soil test levels for P, K, and other nutrients. There may be some tendency toward higher soil test values, but soil tests for these nutrients are an estimate of plant availability over the growing season. However, most Nebraska soils are quite high in potassium, and thus slight differences in soil test K that can occur with the analytical process have no impact on the fertilizer recommendation.
In some cases, growers harvested fields intended for grain production as silage. In other cases, we saw more producers harvest crop residue as feed due to reduced pasture and hay production. Either way, growers should be aware of nutrient removal resulting from biomass harvest. Significant amounts of P, K, and micronutrients, as well as carbon, can be removed from the field with biomass harvest. If stalks are grazed rather than baled, expect much of the nutrient content in grazed residues to return to the field, minus the harvested weight of cattle once they are taken off the field.
Expect soil nutrient values — particularly residual nitrate — to be more variable this spring than in recent years from field to field, and within fields. The only way to know the availability of soil nutrients is to soil test. Making accurate estimates of profitable fertilizer rates for this year will require accurate soil test information.
There is still time before planting season to get soil samples taken and analyzed in order to make sound fertility decisions. Spring sampling should result in a more accurate prediction of nitrate-N availability. We are fortunate to have several good analytical labs where growers can have soil samples tested. Contact the Washington County Extension Office or visit the CropWatch web site cropwatch.unl.edu for a list of soil testing labs. Contact any of these labs for information on current pricing and how to ship samples.
Nebraska Farmers Union Sponsors College Students Attendance to College Conference on Cooperatives
18 agricultural students and their professors from 4 different Nebraska Colleges traveled to Minneapolis, Minnesota February 14-17 to learn about cooperatives under the guidance of Nebraska Farmers Union. The participating colleges included the University of Nebraska at Lincoln, Northeast Community College at Norfolk, Southeast Community College at Beatrice, and Nebraska College of Technical Agriculture at Curtis. The College Conference on Cooperatives brought a total of 97 students from 32 different Midwestern colleges and universities making it the largest College Conference on Cooperatives held to date.
The Cooperative Conference included tours of the CHS (Cenex Harvest States) Headquarters, the REI Sports Sales Coop, housing coops, food coops, and the Mill City Flour Museum. The Conference brought in speakers from a vast array of areas including renewable energy, ag coops, rural electric coops, credit unions, and new coops. NeFU Public Affairs Director Graham Christensen said, “We had another great conference. The feedback we received from the students and professors was very positive. The students learned about a host of different ways cooperatives can serve communities, and the wide range of career opportunities available that utilize the benefits of the cooperative approach to economic development. Everyone left Minneapolis excited about these new opportunities.”
The conference evaluations revealed that 47% of the students in attendance were from farms or ranches, 31% were rural, 12% were from small towns, and the remaining 10% were urban. Christensen said, “The College Cooperative Conference helps make more students aware of additional cooperative tools that can be used to create the economic opportunities needed to help our rural youth stay in their communities. We are pleased to partner with these Nebraska colleges to help send Nebraska kids to this Conference.”
The annual College Cooperative Conference is co-sponsored by the CHS Foundation in cooperation with the National Farmers Union Foundation. Nebraska Farmers Union was awarded a grant from the CHS Foundation to help defray the attendance costs for the Nebraska participants.
Upper Big Blue NRD Places Nitrate Management Zone 5 into Phase III Status; Zone 11 Moves to Phase II Designation
The Upper Big Blue NRD Board of Directors met on Tuesday, February 26, 2013, and approved placing Nitrate Management Zone 5 (York County) into a Phase III Status. Cities and villages located in Zone 5 include Bradshaw, Waco, and York.
Changes to District Rule 5 for setting the trigger levels in Phase II and Phase III management areas went into effect on February 1, 2013. The Phase III trigger is now 10 milligrams per liter (mg/l). Zone 5 has been a Phase II management area since 2003. Zone 5 has a median groundwater nitrate level of 12 mg/l.
The Phase II trigger is now 7 milligrams per liter (mg/l). The rules change also provides that no more than one management zone would be designated a Phase II management area each year. There are currently four management zones with a median nitrate level exceeding the Phase II trigger. Zone 11 (Seward County), which has a median groundwater nitrate level of 8.6 mg/l, has the highest level of the four zones, and has now been designated as a Phase II Management Zone. Cities and villages located in Zone 11 include Goehner, Milford, Seward, Tamora, and Utica.
Both Zone 5 and 6 have been in Phase II up to this point, however with Zone 5 moving into Phase III, certain requirements now must be met. Fall-Winter application of anhydrous ammonia in the Phase III Area must include a nitrification inhibitor. Spring anhydrous application would not require the use of a nitrification inhibitor. Zone 6 will remain in Phase II for now. Cities and villages in Zone 6 include Henderson, Luston, and a portion of McCool Junction.
Phase II and Phase III producers would also be required to use electrical resistance blocks or capacitance probes to schedule irrigation in one field. Scheduling irrigation using soil moisture information can reduce the risk of excess irrigation leaching nutrients from the root zone.
Increasing nitrates in groundwater have been a concern in the Upper Big Blue NRD for several years. Several communities in the District have found it necessary to construct new wells to comply with state and federal drinking water standards. Some communities have built, or are considering, treatment plants. Many rural residents have also replaced wells or installed private water treatment systems.
Nitrate is found naturally in the environment, however excess nitrates that are causing groundwater contamination come primarily from the use of commercial fertilizers. Nitrogen fertilizer is needed to produce corn, however the amount and timing of the fertilizer application can reduce the risks of groundwater contamination. Anhydrous ammonia is the most common form of nitrogen fertilizer used throughout the District.
Since 1996, the NRD has required that farmers wait until November 1st to apply anhydrous, and to wait until March 1st to apply other formulations of nitrogen fertilizer. In some parts of the District where groundwater nitrate is the highest, farmers are required by existing regulations to attend training classes, take soil samples, and calculate crop nitrogen needs. Despite these efforts, groundwater nitrate levels have continued to rise. The proposed changes to District Rule 5 are designed to encourage farmers to adopt fertilizer management practices that will reduce the opportunity time for nitrate leaching out of the crop root zone.
2013 GrillMaster Experience BBQ Tour Kicks Off
Today the Beef Checkoff Program, in partnership with the American GrillMaster Experience, announced the kick-off of a nationwide grilling tour taking place at Sam’s Club National BBQ Tour events. Using beef grilling demonstrations, product samples, recipes and other checkoff-funded resources, the American GrillMaster Experience educates and informs consumers about the value and benefits of cooking with beef and grilling techniques.
A total of 30 events covering 25 states are slated for the 2013 tour, which runs from March to November. Events will take place at Sam’s Club® locations, as part of the Sam’s Club National BBQ Tour, which is the largest Kansas City Barbeque Society (KCBS) sanctioned competition series. The Grill Master’s samples are sourced from premium quality Sam’s Club beef, which has a 200 percent freshness guarantee.
“I had the opportunity to experience the 2012 Bentonville, Ark., event and was thoroughly impressed,” says Brett Morris, producer from Ninnekah, Okla., and vice-chair of the Beef Image Committee. “It truly is an event everyone should experience because of the professionalism the checkoff sponsored Grill Master, Michael McDearman, puts into it.. In addition, when going behind the scenes, I thought I had eaten good beef before until I sampled the competition food and there was not one bad entry to be tasted! What really connects consumers to the experience is that the competitors demonstrate the potential beef taste and tenderness it can achieve. It will knock their socks off.”
In 2010, Sam’s Club launched a pilot competitive barbecue program and became the first major retailer to sponsor KCBS, the largest and most respected barbecue sanctioning body in the world. From that pilot program, the Sam’s Club National BBQ Tour was born. During 2011, the inaugural tour became the largest competitive barbecue series in America, and in 2013, the extremely popular competition series will award a whopping $500,000 in prize money.
“These events provide the beef checkoff with an opportunity to encourage interaction between the grillers and consumers,” said Morris. “The Grill Master showcases the different ways to prepare premium-quality beef and to bring out the full flavor and taste each product provides. He speaks about unique pairings for beef products and educates consumers with information they can take home and apply on their own grills.”
Click here to view the GrillMaster events schedule... GrillMasterTour.com. Stops include...
4/27/2013 - Overland Park, KS
7/20/2013 - Des Moines, IA
11/1/2013 - World Food Championships, Las Vegas, NV
General Session Offers Insight, Inspiration to a Packed House
This morning, emcee Mark Mayfield once again welcomed Commodity Classic General Session attendees to the forum. The packed house listened intently as Mayfield led the program through a series of exciting presentations from sponsor Dow AgroSciences, U.S. Secretary of Agriculture Tom Vilsack and inspirational speaker Chad Hymas. Rounded out by a talk show-style panel during which the presidents of all four hosting associations, General Session 2013 provided insight into the broader political climate affecting farmers as well as inspirational messages to take into the upcoming planting season.
Mayfield opened the presidents' roundtable conducting brief interviews with each participant. Speaking with National Corn Growers Association President Pam Johnson, Mayfield inquired first about the growing push for sustainability and what it means today for farmers.
"Sustainability for corn growers means that we continuously improve the way we grow corn," said Johnson, a farmer from Floyd, Iowa. "In our effort to improve, we need access to the best seed technology, genetics and agronomic practices. For us, sustainability is leaving the land in better shape for our kids and our grandkids."
Mayfield followed up by asking what Johnson believes will help shape a strong future for farmers.
"We have a great story to tell, but sadly we don't have that many farmers out there telling their story," she replied. "This is hurting us in D.C. with our policymakers and in our dialogue with consumers, who want to know who we are, what we do and that their food is safe."
Johnson called upon not only Commodity Classic attendees, but also on Americans across the country, to act now. Coming out of morning discussions with U.S. Secretary of Agriculture Tom Vilsack, she noted that the failure of Congress to pass a farm bill was only one small example of how inaction on the part of our legislators is impacting the country in major ways.
"If there is anything I can leave today with the audience, it is a call to action," said Johnson. "Everyone out there as an American and as a farmer needs to call their representatives in Congress. They need to say that we are mad as hell. We are sick of people pointing fingers and assigning blame. We aren't going to accept it anymore. You have to act responsibly, and you have to act now."
Mayfield then conducted similar interviews with American Soybean Association President Danny Murphy, National Association of Wheat Growers President Eric Youngren and National Sorghum Producers President Terry Swanson. Then, the conversation shifted to a more open format as the presidents discussed questions about the continued relevancy of agriculture. In addition to presenting their organization's thoughts on the issues, the discussion offered a glimpse into the many shared concerns and unique issues facing each group.
For the fourth consecutive year, Secretary Vilsack addressed attendees of Commodity Classic's General Session. He began by expressing his commitment to working with America's farmers.
"I want to start by expressing what every Secretary of Agriculture and all Americans should," said Sec. Vilsack. "Thank you for what you do, and what your families do, every single day. You not only produce enough food for all of our needs every single day, but you produce an abundance that enables us to export much of what you grow to feed the rest of the world and grow U.S. jobs."
Calling farmers both food providers and job creators, the Secretary noted how American farmers' willingness to embrace technology, advanced production practices and conservation techniques allows them to grow an abundance while acting as good stewards of the land and the water.
Next, he noted that most of the energy used across the country comes from rural America with more and more of this energy coming from the feed stock growers produce. This movement toward domestically-produced biofuels has helped reduce our nation's imports of foreign oil. He noted that upon entering his position the country imported 62 percent of its oil supply and now has been able to reduce that level to only 41 percent. He stated that, as this continues to drop steadily, rural America is making the entire nation stronger and more energy secure.
Acknowledging the drought of 2012, Sec. Vilsack outlined how the USDA will work to find ways to mitigate difficulties as the climate continues to warm. He then noted that, over the next year, the USDA will work toward initial steps to help agriculture deal with these challenges. In addition to initial steps, he affirmed that research into the possible challenges and ways to deal with them will continue into the foreseeable future.
The Secretary called on Congress to pass a five-year farm bill that helps build a safety net for farmers and provides support for the growing rural bioeconomy. As he did in prior speeches, he stressed the importance of forward-looking, comprehensive legislation in this area that helps continue the country's tradition of agricultural strength.
Finally, he noted that, before doing so, the Congress must pass a budget. Reminding the audience that the sequester will most probably go into effect later today, Sec. Vilsack described the ways in which these budget cuts must be implemented, how they will impact the USDA and how this will impact farmers.
As he concluded, Sec. Vilsack clarified earlier remarks about the relevance of rural America. He stressed that he is well aware of the important role that farmers play, but that shrinking populations have made farmers less of a voice in the federal government. Then, he stressed that by working together with those who want an economically secure, ecologically secure, energy secure country to fully realize the enormous opportunity in rural America.
NOAA Revises Winter's End Forecast
Government weather forecasts scrapped a dramatic forecast made just a week ago calling for above-normal March temperatures in the eastern two-thirds of the U.S., from southeast Arizona across the Midwest and the East Coast, with the lone exception of south Florida.
In an end-month update to the forecast issued Thursday, the National Oceanic and Atmospheric Administration said the outlook for temperatures in the entire region is cloudy. The entire area now carries an "equal chances" designation on NOAA's forecast map, meaning that temperatures could be normal, below-normal or above-normal.
NOAA also broadened the area of the Northwest were below-normal March temperatures were expected in its Feb. 21 forecast. The update shows below normal temperatures reaching from the entire Pacific Coast inward to Nebraska and stretching northeastwardly to western Iowa and western Wisconsin.
USDA Announces Commodity Credit Corporation Lending Rates for March 2013
U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for March 2013. The CCC borrowing rate-based charge for March 2013 is 0.125 percent, unchanged from 0.125 in February 2013. For 1996 and subsequent crop year commodity and marketing assistance loans, the interest rate for loans disbursed during March 2013 is 1.125 percent, unchanged from 1.125 in February 2013.
Interest rates for Farm Storage Facility Loans approved for March 2013 are as follows, 1.375 percent with seven-year loan terms, up from 1.250 in February 2013; 2.000 percent with 10-year loan terms, up from 1.875 in February 2013 and; 2.250 percent with 12-year loan terms, up from 2.125 percent in February 2013.
USDA to Simplify Guaranteed Farm Loans by Setting Thresholds on Interest Rates
The U.S. Department of Agriculture (USDA) today announced an interim rule that sets thresholds on the interest rates charged by lenders on guaranteed farm ownership and operating loans. The changes will amend guidelines for interest rates and establish new policies that clearly set the maximum interest rate lenders may charge to borrowers.
"By providing clear thresholds on interest rates for federally-guaranteed farm loans, USDA is ensuring greater certainty to producers, making compliance easier for our lenders and ensuring greater benefits for all farmers and ranchers," said Agriculture Secretary Tom Vilsack. "It is important that American agriculture continue to play a key role in driving economic growth and creating good-paying jobs across the American middle class. By setting thresholds on interest rates, USDA will strengthen access to farm credit."
USDA's Farm Service Agency (FSA) guaranteed loans reduce the risk of loss to lenders (banks, farm credit institutions and credit unions) by guaranteeing up to 95 percent of the loss of principal and interest on a loan. By reducing a lender's risk, borrowers benefit from a lower rate.
The interim rule on maximum interest rates for FSA-guaranteed loans will benefit lenders and producers alike. Lenders have expressed a desire to see greater clarity in FSA's interest rate policy. At the same time, FSA seeks greater consistency with industry standards and other government agencies that administer similar programs. The improvements in the new rule will make credit pricing procedures easier to follow and improve compliance for lenders.
At this time, FSA is also requesting additional comments on the interim policies in the rule, aiming to assure that the benchmark rates required of lenders do not prevent farmers and ranchers from obtaining guaranteed loans. USDA is seeking comments through June 3, 2013.
This interim rule is part of USDA's work to expand credit opportunities for America's farmers and ranchers. In January, USDA announced a new microloan program to help small and family operations, and beginning and socially disadvantaged farmers secure loans under $35,000. The new microloan program is aimed at bolstering the progress of producers through their start-up years by providing needed resources and helping to increase equity so that farmers may eventually graduate to commercial credit and expand their operations. The interest rate for microloans changes monthly and is currently 1.25 percent.
While USDA continues to introduce new products that are more responsive to the credit needs of its diverse customer base, the Department continues to expand its traditional farms loans. In fact, since 2009 USDA has made a record amount of farm loans—more than 134,000 loans totaling nearly $18 billion. USDA has increased the number of loans to beginning farmers and ranchers from 11,000 loans in 2008 to 15,000 loans in 2011. More than 40 percent of USDA's farm loans now go to beginning farmers. In addition, USDA has increased its lending to socially-disadvantaged producers by nearly 50 percent since 2008.
Informa Ups Brazil Estimates
Private analytical firm Informa Economics increased its crop projections for Brazil while holding its estimates for Argentina steady.
Informa pegged Brazil corn production at 71.6 million metric tons, a 1.3 mmt increase from its previous forecast. Even if the upwardly-revised estimate is realized, the crop will still be 1.4 mmt below last year's output. On soybeans, Informa boosted its Brazilian estimate to 84.5 mmt, a 500,000 mt jump. Brazil's harvest was 28% complete.
After receiving below-normal rains from early January to late February, Argentina's precipitation has returned to near-normal levels, Informa reports, and that's why it kept its corn forecast at 25 mmt. Informa expects Argentina will produce 51 mmt, also unchanged from last month, noting that rains in late February stabilized yields, given that the majority of beans there are flowering and filling.
USDA's estimate is higher on Brazilian corn production at 72.5 mmt and lower on soybean production at 83.5 mmt. As for Argentina, USDA is 2 mmt higher than Informa on soybeans and corn at 53 mmt and 27 mmt, respectively.
Paraguayan Soy Harvest Looks Good
With a large portion of the soybean harvest complete, farmers in Paraguay are celebrating what they believe will be a record harvest. While farmers in Argentina and parts of southern Brazil suffered from dry weather, the principle growing regions in Paraguay got decent showers in January. As a result, this week soy exporters association reaffirmed its forecast for a record crop of 8.5 million metric tons (mmt), nearly double last year's drought-hit output. Much of Paraguay's soy is produced along the borders with the Brazilian states of Parana and Mato Grosso do Sul.
AgriBank Reports Fourth Quarter 2012 and Year End Financial Results
Today St. Paul based AgriBank announced financial results for the fourth quarter of 2012 and year end, reporting continued strong levels of net income, capital, liquidity and credit quality.
“Continued demand, coupled with the 2012 drought, and resulting anticipated small carryover stocks, kept key district commodity prices strong. Most crop producers purchased crop insurance which contributed to solid incomes. Many livestock producers used hedging strategies to mitigate exposure to higher feed costs,” said AgriBank CEO Bill York. “Near record net farm income fueled increasing land values, and concerns about tax changes drove many real estate transactions. These factors, and continued opportunities to refinance to lower cost debt, contributed to the strong growth and earnings achieved.”
Year End 2012 Results Compared to Year End 2011 Results
Net income rose 11% to $514.2 million for the year, up from $464.9 million in 2011. Net interest income was $483.9 million compared with $457.7 million last year, driven primarily by an increase in retail volume, including significant growth in loan participations purchased from the AgDirect equipment financing program. Net interest income remains elevated as the Bank continued to take advantage of a favorable interest rate environment by re-pricing callable debt at lower costs.
Loan loss provisions decreased 13% to $7.4 million.
Non-interest income was up 26% to $153.7 million from $121.7 million in 2011. The increase was attributable to a $30.7 million (67%) increase in income from mineral rights held by AgriBank, the majority of which are in North Dakota and a $15.0 million non-recurring refund from the Farm Credit System Insurance Corporation.
Fourth Quarter 2012 Results
Quarterly net income was $129.4 million compared with $126.5 million for the same period of 2011. The positive impacts of higher net interest income and continued strong mineral income were primarily offset by a reduction in loan prepayment and fee income which are leveling off from highs experienced during the same period of last year.
Loan Portfolio
Total loans grew 12% year-over-year to $69.7 billion at the end of the year, reflecting the growth in retail loans made by Associations in the AgriBank District primarily due to demand for cropland, tax planning strategies and uncertainty regarding tax law changes at year end.
AgriBank’s loan portfolio credit quality remains strong with 99.7% non-adverse loans at the end of the year, the same as the end of last year. Nonaccrual loans declined to $51.4 million from $62.0 million at the end of last year while the allowance for loan losses was $13.3 million compared with $9.2 million.
AgriBank’s overall strong results reflect a continued robust Midwest farm economy despite the effects of the 2012 drought. The significant majority of U.S. corn and soybean production occurs in the AgriBank District. The February 11, 2013 U. S. Department of Agriculture Economic Research Service report projects high levels for both U.S. net farm income ($112.8 billion) and net cash income ($135.6 billion) in 2012. Net farm income for 2012 is forecasted to be down 4.3% from 2011. The income levels forecasted are driven by increased price levels in the grain commodities of corn, soybean and wheat and increases in crop insurance indemnities due to the significant 2012 drought.
Significantly lower production levels, due to drought conditions, are the primary driver for higher corn, soybean and other feed grain prices. The Federal crop insurance program, which is widely used by crop producers, will mitigate the worst impacts of the drought. Usage of the Federal crop insurance program, that includes revenue protection plans, is expected to allow crop producer income to remain adequate. Strong liquidity and equity positions of many borrowers in the loan portfolios are reflected in continued favorable credit quality.
However, high grain commodity prices, which are a primary expense component for the livestock sector, have negatively impacted the livestock sector. Price risk and margin management strategies employed by many livestock producers have allowed many to remain profitable in 2012 or at a minimum minimize losses. However, negative operating margins are likely, for at least a portion of 2013, as the effect of high grain commodity prices are generally unavoidable.
NASA Tests 50% Camelina-Based Jet Fuel
NASA researchers have begun a series of flights using the agency's DC-8 flying laboratory to study the effects of a 50% blend of camelina-based jet fuel on engine performance, emissions and aircraft-generated contrails at altitude.
The Alternative Fuel Effects on Contrails and Cruise Emissions, or ACCESS, research involves flying the DC-8 as high as 40,000 feet while an instrumented NASA Falcon HU-25 aircraft trails behind at distances ranging from 300 feet to more than 10 miles.
"We believe this study will improve understanding of contrails formation and quantify potential benefits of renewable alternate fuels in terms of aviation's impact on the environment," said Ruben Del Rosario, manager of NASA's Fixed Wing Project.
ACCESS flight operations are being staged from NASA's Dryden Aircraft Operations Facility in Palmdale, Calif., and will take place mostly within restricted airspace over Edwards Air Force Base, Calif.
During the flights, the DC-8's four CFM56 engines will be powered by conventional JP-8 jet fuel, or a 50-50 blend of JP-8 and an alternative fuel of hydroprocessed esters and fatty acids that comes from camelina plants.
More than a dozen instruments mounted on the Falcon jet will characterize the soot and gases streaming from the DC-8, monitor the way exhaust plumes change in composition as they mix with air, and investigate the role emissions play in contrail formation.
Also, if weather conditions permit, the Falcon jet will trail commercial aircraft flying in the southern California region in coordination with air traffic controllers to survey the exhaust emissions from a safe distance of 10 miles.
The flight campaign began Feb. 28 and is expected to take as long as three weeks to complete.
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