NeFBF Hosts 2015 Council of Presidents and Policy Forum
The Nebraska Farm Bureau Federation will be holding the 2015 NFBF Council of Presidents meeting from 1:00-5:30 p.m. on Wednesday, November 11, at the Kearney Holiday Inn. The purpose of this meeting is to have an open dialogue between County Farm Bureau’s and key staff on programs, NFBF’s strategic plan, membership and other organizational matters.
Following the meeting, you're invited to join them for dinner at the Kearney Archway Monument located at 3060 East 1st Street in Kearney.
Then the NeFBF Policy Forum will be held on Thursday, November 12th, from 8:30 a.m.to 5:00 p.m. back at the Holiday Inn in Kearney. The sessions are geared at giving you the opportunity to represent your County Farm Bureau and give input on submitted resolutions.
If you have any questions regarding either meeting, please contact Whittney Kelley at 402-421-4760 or whittneyk@nefb.org.
U.S. Pork Exports Improve in September; Beef Exports Struggle
U.S. pork exports showed modest improvement in September while beef exports endured the most difficult month in some time, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
September pork export volume was up 6 percent from a year ago to 172,012 metric tons (mt). Export value was $456.1 million, down 11 percent year-over-year but the highest since May. Pork exports through the first nine months of the year declined 4 percent in volume (1.58 million mt) and 17 percent in value ($4.21 billion) compared to January-September 2014.
Beef export volume fell 21 percent from a year ago in September to 79,474 metric tons (mt) and value was down 28 percent to $456.6 million – the lowest since January. For the first nine months of 2015, exports were down 12 percent in volume (782,705 mt) and 8 percent in value ($4.8 billion).
September pork volume strong to Mexico, other Western Hemisphere markets
Pork export value per head slaughtered was $46.90 in September, down $11.21 from last year. For January through September, per head value was down $15 to $49.45. January-September exports accounted for just over 24 percent of total pork production and nearly 21 percent for muscle cuts only – down from 27 percent and 23 percent, respectively, during the first nine months of 2014.
Exports to Mexico, the leading volume destination for U.S. pork, fell slightly in volume in September but climbed 5 percent through the first nine months of the year to 529,798 mt, while export value fell 20 percent to $932.6 million.
Other pork export highlights include:
- September exports to Canada were the largest of 2015, though January-September volume was still down 5 percent to 148,669 mt and value was 13 percent lower at $589.9 million.
- Central/South America took 89,712 mt through September, up four percent from a year ago, as growth to Honduras and Chile offset smaller volumes to Colombia. Export value to the region fell 6 percent to $226.1 million.
- January-September exports to South Korea were up 34 percent in volume (129,314 mt) and 23 percent in value ($373.8 million), though the market cooled in September, falling below last year’s monthly volumes for the first time in 2015.
- Japan remains the leading value market for U.S. pork, despite January-September value declining 18 percent year-over-year to $1.23 billion. Export volume to Japan was down 12 percent to 314,760 mt.
Few bright spots for September beef exports
Beef export value in September equated to $233.80 per head of fed slaughter – down nearly $80 from a year ago. For January through September, per-head value was $280.46 – down $6.36 from the same period last year. Exports equated to 13 percent of total beef production and 10 percent for muscle cuts only – both down 1 percentage point from the first nine months of last year.
September exports to leading market Japan fell 34 percent in volume (15,386 mt) and 36 percent in value ($99.7 million) from a year ago. For the first nine months of the year, exports to Japan were down 12 percent in volume (161,961 mt) and 14 percent in value (just over $1 billion).
Other notable results for beef exports include:
- September exports to Korea were the lowest since January, but January-September volume was still up 9 percent to 92,577 mt, while value was 4 percent higher at $612.9 million.
- Exports to Taiwan were also below year-ago levels in September but still up 5 percent in volume (26,772 mt) and 12 percent in value ($241.3 million) for the first nine months of the year.
- January-September exports to Mexico totaled 161,356 mt (down 10 percent year-over-year), valued at $808.4 million (down 6 percent).
- September exports to Hong Kong rebounded somewhat from low summer totals but results for the first nine months of the year were down 26 percent in both volume (78,612 mt) and value ($565.1 million) from a year ago.
Tough year continues for lamb exports
For January through September, U.S. lamb exports fell 17 percent in volume to 6,714 mt year-over-year and were down 32 percent in value to $14.3 million. Exports expanded to the Middle East — up 49 percent in volume to 271 mt and 2 percent in value to $874,000 — but declined to Mexico, Canada and the Caribbean.
Kansas, Iowa Researchers Improving Feed Efficiency in Swine Herds
Researchers at Kansas State University are making steady progress in developing improved diets for pigs, a science so exact that even a 1 percent improvement in feeding efficiency can translate into $100 million of added profit to the U.S. swine industry.
Mike Tokach, Kansas State University distinguished professor of animal sciences and industry, said the university is working in collaboration with researchers at Iowa State University to develop practices that improve feed efficiency on U.S. farms.
"Our first goal is to save feed and thus reduce costs for producers, which ultimately reduces the cost of pork to consumers," Tokach said. "The other very important part of our research is the environmental side. Anything we do to improve feed efficiency reduces the output of nitrogen and phosphorus from that farm."
Based on results from a 2012 survey of more than 200 U.S. swine producers, the two universities developed 13 fact sheets that provide specific direction on how producers can improve feeding efficiency on their farm. The topics include genetics, particle size, pelleting, temperature, market weights, amino acids and more. The materials are available at swinefeedefficiency.com.
One sheet includes a decision tool that producers can use to measure their current practices against research-tested methods.
"Producers can use that to troubleshoot their operation; if their efficiency is not where they want it to be, they go through the decision tree to see what areas they can check out," Tokach said. "Or, they can plug in things they're currently doing into a feed efficiency model on the website that tells them it's good enough, or maybe they should change temperature in the barn, change diets, or change the way their feed is processed."
Since the 2012 survey, the researchers have conducted field trials with farmers in Iowa, Nebraska and Minnesota.
"Each project was done with different production systems to give the data more credence since it was done in many locations and in the field," Tokach said. "Each project explored a different area that influences feed efficiency, such as the level of dried distiller grains, feed particle size, pelleting or sow feed usage."
Also in the field trials, Iowa State University researchers focused on genetic selection as a factor of feed efficiency. Their work led to a genetic line selected for improved feed utilization.
The $5 million project is funded through 2017 by the National Institute of Food and Agriculture.
Tokach said that the federal agency's support is a testament to the importance of feed efficiency on the farm. The annual value of hog feed in the U.S. is $10 billion, and feed accounts for 65-70 percent of the cost of raising a pig, he said.
The work done by Kansas State University and Iowa State University is being updated regularly online. Tokach and many others have been sharing the research results at numerous workshops, professional meetings and in the mass media.
SEEDCorn, Midwest Big Data Hub, Launched
Iowa State University is one of five universities creating a Midwest Big Data Hub with the support of a three-year, $1.5 million grant from the National Science Foundation.
The science foundation announced four regional big data hubs designed to help the country use today's huge data sets to effectively create knowledge and make decisions. The Midwest hub will be known as SEEDCorn, Sustainable Enabling Environment for Data Collaboration. The hub's founding schools are Iowa State, the University of Illinois at Urbana-Champaign, the University of Michigan, Indiana University and the University of North Dakota.
The hub will be led by Edward Seidel of Illinois, where he directs the National Center for Supercomputing Applications and is Founder Professor in Physics and a professor of astronomy. A full-time executive director will be based at Illinois and part-time staff will be based at the other campuses.
Sarah Nusser, Iowa State's vice president for research, is a co-principal investigator for the Midwest Big Data Hub and a member of its steering committee.
"This is an excellent opportunity for Iowa State to build on its data driven science initiative," Nusser said. "President Steven Leath has already invested in 20 new big data faculty positions and will soon announce research projects supported by the Presidential Initiative for Interdisciplinary Research for Data Driven Science. We have many strengths to contribute to the Midwest Big Data Hub."
The hub will be dedicated to meeting the challenges of collecting, managing, mining, storing and analyzing the huge and complex data sets created by today's research, government and commercial activities. A project description said the SEEDCorn project will work "to harness the power and realize the promise of Big Data."
A key strategy for harnessing big data will be to establish partnerships between universities, businesses, government agencies and nonprofits, Nusser said. Those partnerships are expected to help the Midwest respond to big data challenges while capturing opportunities and resources for the region.
Nusser, for example, noted the hub will have research themes (dubbed spokes) that are closely related to Iowa's economy and Iowa State's strengths, including digital agriculture, advanced manufacturing, smart cities, transportation and a spoke related to the water, food, energy nexus.
The digital agriculture spoke, she said, "Connects to our strengths and interest in precision agriculture, sustainability and research projects connecting agronomists, engineers and plant scientists. I like to think of this as the equivalent of precision medicine for agriculture."
Senate Passes Resolution to Withdraw WOTUS Rule
The National Cattlemen’s Beef Association and the Public Lands Council appreciate the bi-partisan show of support in the Senate today against the EPA and Army Corps of Engineers’ “waters of the United States” rule. NCBA President, Philip Ellis said the joint resolution passed today by the Senate (53-44) could finally put this burdensome regulation to rest.
“America’s cattlemen and women are drowning in federal regulation that adds burdens, costs and uncertainty to our businesses,” said Ellis “The WOTUS regulation is the greatest overreach yet. If allowed to take effect, it would give EPA jurisdiction over millions of acres of state and private property. Without action by Congress and the President to withdraw this rule; producers, stakeholders and states will be forced to continue litigation, adding millions of dollars in expenses and years in delay.”
The joint resolution passed by the Senate was brought by Senator Joni Ernst (R-Iowa) under the Congressional Review Act. This resolution would order the EPA and Corps to withdraw the WOTUS rule and would prevent the agencies from further similar rulemaking. The joint resolution must now be passed by the House and signed by the President.
Smith Applauds Senate Passage of Resolution of Disapproval to Block WOTUS
Congressman Adrian Smith (R-NE) released the following statement today after the U.S. Senate passed S.J. Res. 22 to block implementation of the Environmental Protection Agency’s (EPA’s) Waters of the U.S. rule (WOTUS) by congressional disapproval under the Congressional Review Act. This legislation, introduced by Senator Joni Ernst (R-IA), is a companion bill to Smith’s H.J. Res. 59 introduced in the U.S. House in July.
“WOTUS is one of the largest abuses of executive power in modern history, posing a significant threat to Nebraska’s agriculture economy,” Smith said. “While the Obama administration defiantly pushed forward with this damaging rule, I introduced the resolution of disapproval in the House to ensure Congress did not miss an opportunity to block this regulatory overreach.
“With today’s passage of the resolution in the Senate, I am optimistic the House will soon consider this legislation and send it to President Obama’s desk. I am grateful to my Senate colleagues for standing up for rural Americans and following through on our commitment to using every available tool to prevent this devastating rule from ever being implemented.”
NCGA Calls for Collaboration On A New WOTUS Rule
On Tuesday, the Senate failed to pass S. 1140, the Federal Water Quality Protection Act, a bill that would have halted the Environmental Protection Agency (EPA) and Army Corps of Engineer’s Waters of the U.S. (WOTUS) rule. On Wednesday, the Senate passed S.J. Res. 22, a joint resolution of disapproval of WOTUS.
Chip Bowling, president of the National Corn Growers Association and a farmer from Newburg, Maryland, issued the following statement:
“Thank you to the bipartisan group of Senators who have recognized that the Waters of the U.S. rule did not work.
“America’s farmers and ranchers care deeply about clean water, and we are committed to protecting it for future generations. But this rule is not based on science or law, does not clarify farmers’ responsibilities under the Clean Water Act and will not improve water quality.
“We supported S. 1140 because we believe the EPA, the Corps, farmers and other stakeholders must collaborate on a better rule we can all get behind. While that bill did not pass, we appreciate the Senate’s actions today, and we remain hopeful that cooperation and dialogue can win the day. We have been engaged with EPA from the beginning and our door remains open. Let’s work together on a better rule that will give farmers the certainty they need while protecting America’s water resources.”
Statement by Bob Stallman, President, American Farm Bureau Federation, Regarding Senate WOTUS Vote
“While the effort to send the flawed Waters of the U.S. rule back to the drawing board fell a few votes short, we applaud members of the U.S. Senate who today stood up for farmers and ranchers. While we are disappointed in today’s vote, we know this issue will remain a critical one for America’s farmers and ranchers, and we will continue our fight to protect them from federal regulatory overreach.”
Congress Ignores Science; Fails to Include Truck Weight Reform in Highway Bill
Statement by National Cattlemen's Beef Association President Philip Ellis on failure to include Rep. Ribble’s truck reform language in H.R. 22 Surface Transportation Reauthorization and Reform Act.
“The vote taken tonight is an injustice to America’s cattle producers. Truck weight regulations affect every cattle producer’s bottom line. Outdated federal transportation laws force trucks to carry partially full loads, stifling efficiency and requiring more trucks than necessary on the road. While some opponents claim a safety issue, the U.S. Department of Transportation’s own Comprehensive Truck Size and Weight Study shows the numerous benefits to increasing truck weights without sacrificing the safety. Instead of voting on the side of science, our elected officials were bullied into a faulty emotional vote - a dangerous precedent for our lawmakers to follow. Cattlemen and women appreciate the strong leadership of Rep. Ribble (R-WI) for bringing forward legislation that would have made livestock transportation safer, more economical, and less stressful on U.S. roadways. Without meaningful reform to the outdated truck weight laws, NCBA cannot support the passage of the Highway Bill.”
NCBA Strongly Opposes the House Transportation Bill
Statement by National Cattlemen’s Beef Association President Philip Ellis on failure to include Rep. Tom Rooney’s (R-Fla.) commonsense amendment to address the outdated truck weight laws in H.R. 22 Surface Transportation Reauthorization and Reform Act.
“The National Cattlemen’s Beef Association is greatly disappointed in the members of Congress who opposed modernizing America’s transportation laws. The cattle industry relies on trucks for the safe, timely transportation of livestock from all corners of the country in order to keep up with the global demand for our product. The days of the cross-country cattle drive are over, and the livestock industry no longer utilizes the rail system. Rep. Rooney’s amendment would have allowed states the option to issue special permits for livestock shippers to operate vehicles weighing up to 95,000 pounds. Despite the numerous objective science-based transportation studies, including the U.S Department of Transportation’s own study, that support the increase of truck weights both on economical and safety principles, the House failed to vote on the side of science. Without the inclusion of Rep. Rooney’s amendment, Rep. Reid Ribble’s (R-WI) amendment, or language to address the mandatory 30-minute rest period rule, there is nothing to support in H.R. 22 Surface Transportation Reauthorization and Reform Act, and NCBA strongly opposes its passage.”
DDG Exports Up in September
Exports of dried distillers grains to China may have declined month-to-month, but year-to-date exports to China are 30% higher than year-ago levels.
September’s DDG exports totaled 1.109 million metric tons, up 22% from the same month a year ago. The data, which is released by the Foreign Ag Service, is based on U.S. Census Bureau tallies.
China was the biggest DDG customer in September, buying 484,535 metric tons, 192% more than the same month last year. In August, China bought more than 600,000 mt of U.S. DDG.
U.S. ethanol exports are also stronger than last year, up 7% from a year ago. Exports totaled 60.3 million gallons in September, 6% higher than the same month a year prior, with Canada as the largest buyer.
Biodiesel exports in September increased 47% from a year ago to 28,205 mt. Canada bought 17,796 mt of that. Year-to-date exports in 2015 are down 6%.
Ethanol Stocks, Production Higher
Domestic ethanol inventories rebounded from a 10-month low, rising during the week-ended Oct. 30 by 501,000 barrels (bbl), or 2.7%, to 18.774 million bbl while up 9.3% from a year ago, the U.S. Energy Information Administration said on Wednesday, Nov. 4.
The report showed domestic ethanol production surged 25,000 barrels per day (bpd), or 2.6%, to 969,000 bpd while up 4.3% year-on-year. Ethanol imports amounted to 10,000 bpd last week.
Blender inputs, a gauge for ethanol demand, decreased 31,000 bpd, or 3.4%, to 915,000 bpd while up 40,000 bpd, or 4.3%, versus a year earlier.
EIA reports implied demand for gasoline fell 159,000 bpd during the week-ended Oct. 30 to 9.184 million bpd, although 0.2% higher than the same week a year ago.
CME Group Averages 12.8 Million Contracts Per Day in October
CME Group announced that October 2015 volume averaged 12.8 million contracts per day, down 27 percent from an exceptionally strong October 2014.
Total volume during October 2015 was more than 282 million contracts, of which 86 percent was traded electronically. Average daily volume to date in 2015 is 14.1 million contracts, up 3 percent versus the same period in 2014, with year-over-year growth across four of six product lines.
Open interest through October is 102 million contracts, up 8 percent from year-end 2014.
CME Group interest rate volume averaged 5.8 million contracts per day in October 2015, down 37 percent compared with October 2014.
Agricultural commodities volume averaged 1.2 million contracts per day, down 5 percent compared with the prior-year period.
Armezon® PRO herbicide from BASF receives registration for use on all corn types
Armezon® PRO herbicide provides long-lasting residual control of emerged grass and broadleaf weeds. The BASF product has received full Environmental Protection Agency (EPA) registration for use on all corn types.
“Growers want flexible options to control weeds based on their farm’s needs,” said Daniel Waldstein, Technical Market Manager, Ph.D., BASF. “Armezon PRO herbicide has a wide application window and low use rate, resulting in time, storage and money savings.”
Armezon PRO herbicide is a combination of topramezone, the active ingredient in Armezon herbicide, and dimethenamid-P, the active ingredient in Outlook® herbicide. This chemistry combination helps provide strong contact and residual weed control.
Armezon PRO herbicide has high bioavailability to deliver control under wet and dry conditions. This results in better control of grass and small-seeded broadleaf weeds, such as foxtails, barnyardgrass, waterhemp and Palmer amaranth.
“Because Armezon PRO herbicide has strong contact and residual performance, corn growers can rely on its consistency and have less worry about the risk of a re-spray,” said Waldstein. “With Armezon PRO herbicide, we hope to give growers confidence in their weed control.”
Armezon PRO herbicide will be available to all corn growers for the 2016 season. To learn more, ask your local retailer or visit www.agproducts.basf.us/products/armezon-pro-herbicide.html.
Syngenta Crop Challenge details unveiled
The Syngenta Crop Challenge case competition, challenging participants to develop a model that helps predict what farmers should plant next season to maximize yield, launches today. Contestants will use provided data on soil property, weather and seed variety tests to develop their unique models.
Syngenta, a leading innovator in plant genetics, and the Analytics Section of the Institute for Operations Research and the Management Sciences (INFORMS) are proud to sponsor the Syngenta Crop Challenge. Knowing the world is grappling for new ideas to help alleviate hunger challenges, this new, joint competition focuses specifically on using analytics to address the problem.
Each year farmers have to make decisions about what crops to plant given uncertainties in expected weather conditions and knowledge about the soil at their respective farms. This competition asks, how can a farmer make seed variety decisions that optimally reduce risk and increase yield?
Case details were announced at the 2015 INFORMS Annual Meeting in Philadelphia this week. Contestants will be provided the following data:
· Soil property information for the model farm that will be used when choosing which varieties to plant
· Daily weather data for the past 15 years (focused on the growing season) for the farm
· Test data for the seed varieties at various soil types and weather types for the past 4 years, indicating the yield for each variety at each growing season
The winner of the competition will receive a $5,000 prize. The runner-up will receive $2,500, and the third place winner will receive $1,000. Entries must be submitted by January 15 2016, and finalists will be announced in February 26, 2016. Finalists will make their presentation in person or via teleconference on April 12, 2016 at the INFORMS Practice Conference in Orlando, Florida. The winners will be announced at the conference after the final presentations. Contestants must be 18 years or older to participate.
Syngenta, an award winning company for its innovation in plant analytics, is proud to sponsor this competition to fuel the next big innovations in applying advanced analytics to biochemistry and agriculture. As, an extension of the Good Growth Plan, Syngenta’s six commitments to address global food security, this contest broadens its reach to include input from stakeholders the world over.
“Bringing plant potential to life is our purpose at Syngenta. We strive to continually bring new technologies and innovations to the market to help keep farmers at the top of their game. Extending our work through this challenge will help us broaden our reach and scope of ideas even more,” says Joe Byrum, Syngenta head of soybean seeds product development and lead for the Syngenta Crop Challenge. “We’re excited to see the ideas generated through this competition.”
More details about the Syngenta Crop Challenge competition can be found at www.ideaconnection.com/syngenta-crop-challenge.
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
Thursday, November 5, 2015
Tuesday, November 3, 2015
Tuesday November 3 Ag News
Forage, Feed, and Grazing Restrictions for Row Crop Herbicides
Larry Howard, UNL Extension Educator, Cuming County
It’s nice seeing cattle beginning to be turned out into corn stalks. One point that needs mentioned is that we all need to be checking the herbicide label for any grazing restrictions of crop residues.
Check the labels from in-season applied herbicides to row crops and fall-applied herbicides to crop residue for any potential grazing restrictions and also any restrictions on grazing cover crops planted into crop residues following application of those chemicals to a row crop. If the label doesn’t specify any restrictions, then it should be ok. If you want to be on the safe side, a rule of thumb some chemical representatives use is to use the pre-harvest interval for the amount of time to wait before grazing stalks.
Some labels will say that residue should not be grazed or baled and fed to livestock. Sometimes studies were actually conducted to know there is a safety concern. In other cases, the chemical company may not choose to conduct all the studies the Environmental Protection Agency (EPA) required for labeling due to high costs. If that’s the case, the EPA requires the strongest restrictive language be placed on the label.
Regardless, if it says there’s a grazing restriction on the label, the label needs to be followed as it is a legal document and the law. Your cattle may/may not be affected by grazing stalks or cover crops where a chemical with a grazing restriction is on the label, but there may be other concerns such as problems with the chemical affecting the calf or being retained in the cow’s milk.
Hail/rain/wind caused for soybean shatter and harvest loss for some areas of the state. Volunteer beans have created green fields in the area. For those considering grazing, you also need to look at any herbicide grazing restrictions from herbicides applied in-season to soybeans as well. UNL Extension Forage Specialist, Bruce Anderson recently shared, “Soybeans can cause bloat, but the incidence is low. The young green ones may be more risky. Founder would be possible problem with a sudden diet change. Too many unsprouted beans in the diet could cause excess fat; I think maximum is about 3 pounds of beans per cow. I’d try to limit amount of grazing for a few days, maybe feeding a very palatable supplement like a ground forage/distillers mix and reduce the amount of this supplement each day for a week or so. And keep a dry, palatable hay always available free choice.”
For a quick reference, the 2015 UNL Guide for Weed Management shows the Forage, Feed, Grazing Restrictions for Row Crop Herbicides on pages 174-177. A new weed guide will be released January 2016. These pages just provide a reference; it is always best to read and follow the label.
Field to Market Assessments to Improve Efficiency
Keith Glewen, Nebraska Extension Educator
Nebraska Extension in Saunders County announces that the University of Nebraska Agricultural Research and Development Center near Mead, Neb. will be a host site for a new series of workshops that employs the agricultural industry authored Field to Market tool to estimate efficiency of input use and environmental sustainability for your farming practices. The workshop is sponsored by Nebraska Extension, Nebraska Corn Board and Nebraska Soybean Board. Participating farmers will use a new web based tool called the Fieldprint® Calculator.
Calculating "Fieldprints" can help growers to establish benchmark data on a field and track improvements overtime, set energy saving and efficiency goals and compare performance against local, state and national benchmarks said Extension Educator Keith Glewen. The Fieldprint Calculator is simple to use, though the technology behind it is very complex and the metrics are science based.
The Field Assessment workshops in Nebraska are hands-on and will show growers how to document eight sustainability and efficiency indicators via use of a laptop computer. They are Land Use, Conservation, Soil Carbon, Irrigation Water Use, Water Quality, Energy Use, Greenhouse Gas Emissions and Water Quality.
Participants will select a representative corn or soybean field for 2015 and complete a data input sheet in advance of the Fieldprint® Calculator workshops. Meals and workshop materials are sponsored. Computer laptops are provided or bring your own. No prior computer knowledge is necessary, there will be plenty of experienced users to assist all who attend or bring along a helper. Pre-registration is required by Thursday, December 3, 2015, by contacting a host Extension office. Participants from 2014 workshops are invited back to review outcomes from last year’s workshops and complete another cropping sequence.
“We want growers in Nebraska to be better able to understand and communicate how management choices affect overall sustainability performance and operational efficiency of their farm operations, but also be prepared for any new supply chain initiatives in the food sector that could emerge” said Glewen.
The workshop instructors include a core team of Nebraska Extension faculty. For more information and to pre-register by the December 3, 2015 deadline, contact the Nebraska Extension at 402-624-8030 or Saunders-County@unl.edu.
Nebraska Workshop Times, Locations and Pre-registration Information:
LINCOLN: Monday, December 7, 9:00 AM – 1:00 PM
UNL Extension Office in Lancaster County, 444 Cherrycreek Road
Contact: Tyler Williams, (402)441-7180 or tyler.williams@unl.edu
Green Plains Reports Third Quarter 2015 Financial Results
Omaha-based Green Plains Inc. (NASDAQ:GPRE) announced today its financial results for the third quarter of 2015. Net income attributable to the company for the quarter was $6.2 million, or $0.16 per diluted share, compared to net income of $41.7 million, or $1.03 per diluted share, for the same period in 2014. Revenues were $742.8 million for the third quarter of 2015 compared to $833.9 million for the same period in 2014.
"We are pleased with our results considering the tight margin environment experienced during the third quarter," said Todd Becker, president and chief executive officer. "Based on the recent improvement in the forward curve for ethanol margins and current market fundamentals, we believe our fourth quarter operating income will exceed the third quarter of 2015."
With the formation of Green Plains Partners LP, Green Plains restructured its operating segments to create a separate reportable segment for the partnership. The partnership is included in the Green Plains' consolidated financial statements, with public ownership reflected as a noncontrolling interest.
During the third quarter, Green Plains' ethanol production totaled 215.6 million gallons, or approximately 83.8% of its daily average production capacity. As a result of additional intersegment transactions primarily relating to contractual arrangements with Green Plains Partners, the company has added financial disclosure concerning the consolidated ethanol crush margin, i.e. the gross margin earned before charges and fees paid to affiliates. The consolidated ethanol crush margin is operating income before depreciation and amortization from the ethanol production segment, including corn oil production, plus the partnership's intercompany storage and transportation activities and other internal fees. The consolidated ethanol crush margin was $34.9 million, or $0.16 per gallon for the third quarter of 2015, compared to $82.8 million, or $0.34 per gallon for the same period in 2014.
"With our recent acquisition activity, we are putting our strong balance sheet to work for our shareholders," Becker said. "The purchase of ethanol plants in Hopewell and Hereford, along with expansion projects completed to date, will increase our production capacity to over 1.2 billion gallons per year. We believe each of these transactions will be accretive to earnings in the near term."
Revenues were $2.2 billion for the nine-month period ended September 30, 2015 compared to $2.4 billion for the same period of 2014. Net income attributable to Green Plains for the nine-month period ended September 30, 2015 was $10.7 million, or $0.27 per diluted share, compared to net income of $117.3 million, or $2.90 per diluted share, for the same period in 2014.
"Global demand for ethanol remains strong, with domestic blending occurring at a record pace and ethanol exports running approximately 6% ahead of last year," continued Becker. "For the third quarter, ethanol export sales were 21% of our production. We continue to see strong interest from a variety of countries for the ethanol, distillers grains and corn oil we produce."
Green Plains had $512.5 million in total cash and equivalents and $275.3 million available under committed loan agreements at subsidiaries (subject to borrowing base restrictions and other specified lending conditions) at September 30, 2015. EBITDA, which is defined as earnings before interest, income taxes, depreciation and amortization, for the third quarter 2015 was $36.3 million compared to $91.9 million for the same period in 2014.
Green Plains Partners Reports 3rd Quarter 2015 Financial Results
Omaha-based Green Plains Partners LP (NASDAQ:GPP) today announced financial and operating results for the three months ended Sept. 30, 2015. The partnership reported adjusted EBITDA of $13.1 million and distributable cash flow of $12.9 million. Third quarter 2015 net income was $10.9 million, or $0.34 per common unit.
“The partnership’s stable fee-based contract structure allowed us to achieve solid financial results for our first quarter of operation as a public company,” commented Todd Becker, president and chief executive officer of Green Plains Partners.
“Storage and throughput volumes were slightly lower than expected during the quarter due to seasonally scheduled maintenance completed on the production facilities, increased production of export product which reduces plant production rates and the decision by Green Plains Inc. to slow production in response to lower ethanol margins,” continued Becker. “Green Plains has since returned to production levels that are more consistent with prior quarters. As a result, we expect stronger adjusted EBITDA in the fourth quarter.”
“We also expect Green Plains Inc. to offer the partnership its first dropdown opportunity in the fourth quarter as a result of their recent acquisitions. At the same time, we are pursuing organic and acquisitive growth opportunities on our own,” Becker added. “With our strong liquidity position, we are uniquely positioned to move quickly for the right opportunity.”
Green Plains Partners LP is a Delaware limited partnership formed by its parent, Green Plains Inc., to provide fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage tanks, terminals, transportation assets and other related assets and businesses.
On July 1, 2015, the partnership completed its initial public offering of 11,500,000 common units representing limited partner interests at a price of $15.00 per common unit, which included 1,500,000 common units issued in accordance with the underwriters’ over-allotment option. Common units of the partnership are traded under the symbol “GPP” on The NASDAQ Global Market. As of July 1, 2015, the partnership’s assets include:
Ethanol Storage Facilities. The partnership owns 27 ethanol storage facilities located at or near 12 ethanol production plants owned by its parent in Indiana, Iowa, Michigan, Minnesota, Nebraska and Tennessee with combined on-site ethanol storage capacity of approximately 26.6 million gallons, or mmg, and an aggregate throughput capacity of approximately 1,330 million gallons per year, or mmgy. The ethanol storage assets are the principal method of storing and loading the ethanol produced at Green Plains’ ethanol production plants for delivery to its customers.
Fuel Terminal Facilities. The partnership provides terminal services and logistics solutions at fuel terminal facilities it owns and operates. These eight fuel terminal facilities, located in seven south-central states, have fuel holding tanks and access to major rail lines for transporting ethanol or other fuels. The partnership’s fuel terminal facilities have a combined total storage capacity of approximately 7.4 mmg.
Transportation Assets. The partnership’s transportation assets include a leased railcar fleet of approximately 2,200 railcars with an aggregate capacity of approximately 66.3 mmg as of Sept. 30, 2015, which are dedicated to transporting products, including ethanol and other fuels, under commercial agreements with Green Plains Inc. from the partnership’s fuel terminal facilities or third-party production facilities to refineries throughout the United States and international export terminals. In addition, the partnership uses a fleet of tanker trucks to provide fuel transportation services.
The partnership received net proceeds of $157.4 million from the sale of the common units, after deducting underwriting discounts of $10.3 million, structuring fees of $0.9 million and other IPO expenses of approximately $3.9 million. Net proceeds were used to make a distribution of $155.3 million to Green Plains, in part, as reimbursement for capital expenditures incurred and to pay $0.9 million in origination fees under the partnership’s new revolving credit facility. The remaining $1.2 million was retained for general partnership purposes.
Iowa Farm Bureau to feature inspirational speaker, Aaron Thomas, as keynote for 97th Annual Meeting
Members of the Iowa’s largest grassroots farm organization will gather to celebrate the many ways Iowa agriculture is ‘growing for the greater good’ during the 97th annual meeting of the Iowa Farm Bureau Federation (IFBF), Dec. 1 and 2 at the Community Choice Credit Union Convention Center in Des Moines.
To mark the occasion, Governor Terry Branstad has declared Nov. 30- Dec. 6 as ‘Iowa Farm Bureau Week’ to honor the many accomplishments and contributions of the 97-year-old grassroots farm organization, more than 159,000 members strong.
“Our annual meeting theme, ‘Growing for the Greater Good,’ highlights the sustainability, innovation and growth of Iowa agriculture and celebrates the dedication, accomplishments, and potential of our diverse farm families who help move our state forward,” says IFBF President Craig Hill. “Today’s responsible farmers are always looking for ways to improve what we grow and how we grow it, while being exemplary caretakers of the land. We are excited to showcase some of Iowa’s best and brightest farm families during award presentations, and we are bringing a group of high-caliber experts to lead educational breakout sessions. We are also looking forward to having acclaimed inspirational speaker, Aaron Thomas, deliver the keynote address to members.”
Thomas will share his message of overcoming adversity and turning his family’s tragedy into an opportunity to help others. Thomas is the son of the late Aplington-Parkersburg coach, Ed Thomas, who inspired countless student-athletes and community members before and even after his murder, at the hands of a troubled, former student athlete. Thomas not only took over the role of coach after his father’s death, he also serves as a community leader, role model and inspirational speaker.
In addition to innovative and thought-provoking speakers, the 97th IFBF annual meeting will also feature nine different ‘hands-on’ educational seminars to help Farm Bureau members navigate important issues like conservation and water quality, rural transportation, busting food production myths with real science, and new technology and innovation in agriculture.
Iowa’s next generation of farm leaders will also take the stage for the IFBF Young Farmer Discussion Meet Dec. 2, competing for the state title, a John Deere X320 riding lawn mower, and the chance to advance to the national competition during the American Farm Bureau Federation (AFBF) Annual Convention, January 8-13, in Orlando, Florida.
This year’s entertainment includes an evening reception December 1 and features the Dueling Pianos of local musicians Tony Bohnenkamp and Whitney Maxwell. Bohnenkamp is also a member of the popular Iowa band, The Nadas. The nationally-recognized YouTube sensation and TV personality, ‘Iowa Nice Guy’ and IFBF’s ‘Farmer Nice Guy’, Scott Siepker, will serve as emcee for the evening.
Members can register for the 2015 IFBF annual meeting at their county Farm Bureau offices.
Iowa Soybean Association releases how-to guide for on-farm research
Tips, insights and processes to inform farmers’ decision making fill the Guide to On-Farm Replicated Strip Trials published by the Iowa Soybean Association (ISA) On-Farm Network®.
The comprehensive manual provides farmers, agronomists, researchers and consultants details about how to set up trials and collect, summarize and analyze data.
“The guide captures the experiences gained from conducting trials over the last 15 years,” said Pat Reeg, On-Farm Network director. “We’ve continuously improved our methodologies and share these along with science-based practices and ‘watch-outs’ so that more farmers can easily implement trials on their farm — with or without the On-Farm Network — and realize the full potential of each field.”
Replicated strip trials allow farmers first-hand experience evaluating products and practices on limited acres. While technological advancements have made it easier than ever to collect valuable data, knowing how to properly use it remains key to benefiting from that data.
“Farmers may be more open to try new things when commodity prices are high,” said Reeg. “But now, with tightening margins, it is even more important to test and determine the profitability of products and practices.”
Setting up an on-farm trial can be simple and easy for farmers whether utilizing the guide or working with local agronomists, consultants or their regional On-Farm Network field research specialist. Farmers use their own planter, applicators, tillage implements or sprayers to establish the trials. Then in the fall use combines equipped with on-board GPS and yield monitors to collect spatial data. This work can be done utilizing the guide or working with local agronomists
“It is a very simple process from a farmer standpoint,” said Rolland Schnell, farmer from Newton and ISA president-elect. “I’ve being working with the On-Farm Network for several years, and have made many production decisions based on my data and the analysis of data available through ISA. The guide to on-farm research is a great tool for farmers just starting to consider research as well as those who have been doing it a while.”
Schnell says a major benefit to working with the team is the assistance and availability of results from on-farm research across multiple sites and years.
Having access to this type of data, he adds, can help improve understanding of how current management practices, products, weather and soil variability affect yield and profitability.
The On-Farm Network team also aggregates information to influence management decisions. Data is then available to participating farmers and the public anonymously online.
The Guide to On-Farm Replicated Strip Trials is available www.isafarmnet.com. The print version will be offered at the ISU Extension Crop Advantage meetings in January and provided to attendees of the annual ISA Research Conference to be held Feb. 16-17 in Des Moines.
Fischer Votes for Bill to Stop WOTUS
U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Environment and Public Works Committee, released the following statement this afternoon after voting for S. 1140 – The Federal Water Quality Protection Act, which she cosponsored:
“Today, I voted to stop the federal government’s attack on Nebraska families, taxpayers, job creators, ag producers, and communities.
“The Federal Water Quality Protection Act would require the government to do its homework and work with states and local stakeholders before imposing such a rule – something that should have happened in the first place.
“I will continue to hold the administration accountable and ensure the citizens of Nebraska, not bureaucrats in Washington, remain in control of our water resources.”
This afternoon, the U.S. Senate voted on The Federal Water Quality Protection Act, which would direct the administration to withdraw the rule and issue a revised proposal. The bill would set clear limits on federal regulation of water, require consultation with states and impacted stakeholders, and ensure that a thorough economic analysis is conducted. It failed to pass the necessary 60-vote threshold to advance by a margin of 57-41.
Fischer is also an original cosponsor of S. 1178 – The Defending Rivers from Overreaching Policies Act. This bill targets the flawed science used by the EPA to expand the definition of water.
The WOTUS rule has been marked with strong, bipartisan opposition since it was first announced last year. On August 27, 2015, hours before the rule went live, a temporary injunction was issued by U.S. District Court Judge Ralph Erickson of North Dakota. Nebraska was one of 13 states exempted from the rule. Last month, on October 9, the U.S. Court of Appeals for the Sixth Circuit ruled against WOTUS. This ruling immediately blocked the implementation of WOTUS nationwide.
NCBA and PLC Urge Senate Support for Federal Water Quality Protection Act
Today the National Cattlemen’s Beef Association and Public Lands Council sent a letter urging the Senate to vote for S. 1140, the Federal Water Quality Protection Act. This bipartisan legislation would direct the EPA and Army Corps of Engineers to withdraw the current “waters of the United States” rule and immediately work with all stakeholders to draft a rule that would bring clarity to the Clean Water Act without usurping state and private water rights. NCBA President and Chugwater, Wyo., cattleman Philip Ellis said this legislation is the best option for ensuring the rights of producers are recognized.
“The WOTUS rule is the most burdensome and far reaching piece of regulation we have ever seen, touching almost every producer and leaving a path of regulatory uncertainty,” said Ellis. “While cattlemen and women continue in litigation with the agencies over this regulation, the Senate has the opportunity to step in and withdraw this disastrous rule. Action by the Senate now will save cattle producers and states millions of dollars in legal fees and years in litigation.”
Currently, the United States Court of Appeals for the Sixth Circuit has temporarily stayed implementation of the WOTUS rule across the country until they can determine jurisdiction. In granting the stay, the Court found that the WOTUS rule may violate established law on the extent of the Clean Water Act. Moreover, the Court cited the flawed rulemaking process used by the EPA and the arbitrary nature of the limits set in the rule.
“The preliminary court rulings in this case show that cattle producers are likely to succeed in their case and point to EPA’s failed rulemaking process,” said Ellis. “With the doubt cast by the Court, added to the concerns expressed by the Army Corps over this rule, it is clear that a failed rule resulted from a failed process. The House acted in a bi-partisan way to withdraw this rule, and it is time for the Senate to do the same.”
NCBA and PLC support the Federal Water Quality Protection Act and will continue to pursue legislation and litigation to withdraw the WOTUS rule.
Farmer Co-ops Urge Support for Senate "Waters of the U.S." Bill
The National Council of Farmer Cooperatives (NCFC) today urged the Senate to proceed to debate on S. 1140, the Federal Water Quality Protection Act of 2015. The bill would instruct the Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers to put forth a new rule based on set criteria about what constitutes a “water of the United States” (WOTUS) under the Clean Water Act.
“The recent redefinition of what constitutes a WOTUS goes far beyond what Congress intended in passing the Clean Water Act and expands EPA regulatory jurisdiction in an unprecedented way. The fact that the Sixth Circuit Court has enjoined enforcement of the rules shows that there are major problems with what EPA and the Corps produced and that Congress should provide additional direction to the agencies to fix it,” said Chuck Conner, president and CEO of NCFC. “A debate on S. 1140 would be an important step in that direction, and so we urge senators to vote ‘yes’ on the motion to proceed later today.”
Informa Boosts US Estimates
Private analytical firm Informa Economics sees U.S. corn and soybean crops increasing slightly from USDA’s last forecast.
It estimated the national average corn yield at 170.1 bushels per acre, up 2.1 bpa from last month. Production was pegged at 13.72 billion bushels. Informa increased its estimated yields in Illinois and Iowa by 5 bpa and Indiana, Minnesota, the Dakotas and Arkansas by 2 bpa.
The soybean crop, estimated at 3.95 bb, is 64 million bushels higher than USDA’s October forecast. Informa’s national average yield estimate increased 0.8 bpa from last month to a record 47.9 bpa. Yield estimates increased in more than a dozen states.
Informa also released its estimates of world crop production as market focus increasingly shifts to planting in Brazil and Argentina. It’s still early for these estimates to be entirely accurate, Hultman said, adding that they should be watched through the lens of changes in the weather as planting continues.
Forecasts for Brazilian corn and soybean production both increased in Informa’s latest report. Soybean production is now forecast at 101 million metric tons, 1 mmt higher than last month, based on Informa’s planting survey that indicated a 5% increase in planted acres.
Informa projects that Brazil’s corn production will total 81.8 mmt, which is 700,000 metric tons above last month. Farmers are expected to harvest 27.8 mmt of main season corn and 54 mmt of winter corn.
Argentina producers are expected to increase soybean production at the expense of corn harvest. Informa’s estimate for soybean production increased 3 mmt from last month to 59 mmt, and is based on a recent planting survey. Argentina’s corn production is forecast at 18.5 mmt, down 1.5 mmt from Informa’s report last month.
Fertilizer Prices Level Slightly in Past Week
Retail prices of most fertilizers followed no particular trend in the past week, with some falling, some increasing and some remaining unchanged, according to dealers tracked by DTN for the fourth week of October 2015.
The bottom line is that compared to a month ago, all fertilizers trended lower but none have budged more than 4%.
DAP averaged $546/ton, MAP $562/ton, potash $431/ton, urea $409/ton, 10-34-0 $583/ton, anhydrous $638/ton, UAN28 $292/ton and UAN32 $234/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.44/lb.N, anhydrous $0.39/lb.N, UAN28 $0.52/lb.N and UAN32 $0.52/lb.N.
All retail fertilizer prices except 10-34-0 are lower now compared to a year earlier.
Urea has seen the most dramatic fall with prices now 19% lower than last year. Prices of UAN28 and UAN32 are both 11% lower than last year, while potash comes in at 10% lower.
Anhydrous prices are 9% lower than last year, while DAP and MAP come in at a 6% decline respectively. Starter fertilizer, 10-34-0, runs 5% above year ago levels.
Alternatives to Corn Ethanol Would Cut Carbon Emissions
Compared to dirty corn ethanol, biofuels from next-generation feedstocks could greatly reduce carbon emissions that contribute to climate change, according to a new report by EWG and University of California experts.
EWG measured the carbon emitted over the life cycle of ethanol made from switchgrass and from corn stover, the stalks and leaves left on fields after harvest. EWG’s analysis found that the life-cycle carbon intensity of corn stover ethanol is 96 percent lower than gasoline and that of switchgrass ethanol is 47 percent lower than gasoline.
By contrast, EPA studies show that the life-cycle carbon intensity of conventional corn ethanol is greater than gasoline. Yet current federal policy – the Renewable Fuel Standard, or RFS, established in 2005 – strongly favors the production of corn ethanol at the expense of cleaner alternatives.
“When the Renewable Fuel Standard was established, corn ethanol was touted as being cleaner than gasoline, but 10 years later we know it’s just the opposite,” said EWG Research Analyst Emily Cassidy, author of the report. “It’s time to break up the corn ethanol monopoly to make room for next-generation biofuels that could reduce carbon emissions.”
The RFS mandates that by 2022 refiners must blend 36 billion gallons of biofuel into gasoline each year. This has driven the conversion of millions of acres of grasslands and wetlands to grow corn for making ethanol.
But converting grasslands and wetlands into corn fields releases the carbon stored in the soil. Growing corn also requires fertilizers that emit nitrous oxide, another powerful greenhouse gas. As a result, the boom in corn ethanol has contributed to more climate-warming emissions than if there were no mandate, and will do so for at least another 20 years.
The report concludes that Congress should reform the RFS to eliminate the mandate for adding increasing amounts of corn ethanol to gasoline, and to accelerate development of biofuels from lower-carbon feedstocks. If Congress fails to act, EPA should employ the reset provisions of the RFS to gradually reduce the mandate for corn ethanol and encourage development of cleaner second-generation fuels.
House Science Committee Subcommittees on Oversight and Environment Fail to Acknowledge Success of RFS
This morning, the House Science Committee held a hearing on the 10th anniversary of the Renewable Fuel Standard (RFS). The Science Committee has a history of misrepresenting biofuels, relying on misinformation and outright lies to cast a negative light on an American success story. In response to today’s hearing, Tom Buis, co-chair of Growth Energy, issued the following statement:
“Today’s hearing was nothing more than a coordinated attack against biofuels. Minus a few open-minded individuals who examined this issue based on facts, not pre-determined bias, this hearing did nothing to reflect the overwhelming contributions of the RFS.
“The RFS has been a resounding success since its passage a decade ago. It is important that we recognize how much this policy has done to help improve the lives of all Americans. This bipartisan law was passed in Congress in 2005 and strengthened in 2007 with several policy goals: improved energy security, job creation and reduced greenhouse gas emissions. Ten years later, any objective analysis will prove this policy has done exactly what it was designed to do.
“With regards to the environmental benefits of ethanol, the facts are clear. According to Argonne National Laboratory, – an objective national laboratory – ethanol reduces greenhouse gas (GHG) emissions by an average of 34 percent compared to gasoline, even when the highly controversial and disputed theory on Indirect Land Use Change (ILUC) is factored into the modeling. Furthermore, Argonne has found that without ILUC included, ethanol reduces GHG emissions by 57 percent compared to gasoline.
“It is unfortunate that the Science Committee missed an opportunity to provide an unbiased examination of the RFS. Instead, the Committee – which has no jurisdiction over this policy – continued to present a misguided agenda to smear biofuels, hosting several witnesses that fabricated information on the impact biofuels have on food prices, the environment and the American economy. This treatment of homegrown American fuels is insulting to the hardworking Americans across our country who are helping fuel our energy independence.
“Since the enactment of the RFS, biofuels have helped reduced our dependence on foreign oil by more than half — from 60 percent to 27 percent. We have created nearly 400,000 jobs that cannot be outsourced and our industry is helping mitigate climate change by reducing harmful greenhouse gas emissions. Additionally, the RFS is the only meaningful policy that has helped loosen the near monopoly Big Oil has on the motor fuel marketplace, as well as provide market access to higher blends of renewable fuels, giving consumers a choice at the pump.
“The RFS is working. It is doing exactly what it was intended to do. This success should renew Congress and EPA’s faith in this program. They must ensure that we continue down a path of renewable fuel innovation by continuing to support the RFS and refuse to accept the status quo of foreign oil and fossil fuels as our transportation energy future.”
USDA Dairy Products September 2015 Production Highlights
Total cheese output (excluding cottage cheese) was 956 million pounds, 2.4 percent above September 2014 but 2.3 percent below August 2015. Italian type cheese production totaled 403 million pounds, 0.4 percent above September 2014 but 1.6 percent below August 2015. American type cheese production totaled 376 million pounds, 2.8 percent above September 2014 but 3.8 percent below August 2015.
Butter production was 134 million pounds, 0.9 percent above September 2014 and 4.3 percent above August 2015.
Dry milk powders (comparisons with September 2014)
Nonfat dry milk, human - 121 million pounds, up 7.3 percent.
Skim milk powders - 26.8 million pounds, down 34.4 percent.
Whey products (comparisons with September 2014)
Dry whey, total - 78.4 million pounds, up 12.5 percent.
Lactose, human and animal - 86.5 million pounds, down 5.3 percent.
Whey protein concentrate, total - 37.4 million pounds, down 9.4 percent.
Frozen products (comparisons with September 2014)
Ice cream, regular (hard) - 64.4 million gallons, up 2.9 percent.
Ice cream, lowfat (total) - 34.3 million gallons, up 2.0 percent.
Sherbet (hard) - 3.48 million gallons, down 1 percent.
Frozen yogurt (total) - 4.93 million gallons, down 3.8 percent.
ADM's Profit, Revenue Slide
Archer Daniels Midland Co. reported steeper-than-expected drops in revenue and profit in its third quarter, as the grain trader and processor was hurt by weak ethanol margins and lower North American export volumes.
Shares fell 2.8% in premarket trading.
ADM, among the world's largest agribusinesses and a major ethanol producer, has been buffeted recently by lower ethanol-production margins and sluggish overseas demand for North American crops.
The Chicago company has also faced weakness in its grain-trading business as a strong U.S. dollar and large crops in South America crimped export demand for North American grain.
In the third quarter, revenue in ADM's corn-processing business fell 17% to $2.52 billion.
Revenue in ADM's agricultural-services segment fell 6.2% to $6.6 billion.
ADM's oilseed-processing business posted a 12% drop in revenue to $6.75 billion.
The wild flavors and specialty ingredients segment was a bright spot, as revenue more than doubled to $588 million in the quarter.
Overall, the company posted earnings of $252 million, or 41 cents a share, down from $747 million, or $1.14 a share, a year earlier.
The quarter included $65 million in impairment, exit and restructuring costs.
Excluding those charges and other special items, per-share earnings fell to 60 cents a share from 86 cents a year earlier.
Revenue slid 8.6% to $16.57 billion.
JBS Concludes Purchase of Cargill Pork Unit
Brazilian meatpacker JBS SA has concluded its $1.45 billion acquisition of Cargill Inc's U.S. pork assets without any restrictions from regulators, making it one of the largest meat companies in the United States. According to Reuters, the deal closed on the earlier end of the forecast JBS gave in early July, when officials said they expected antitrust approval of the pork assets to clear within four to seven months. In August, JBS raised $1.2 billion in the syndicated loan market to help fund the acquisition.
The U.S. Justice Department on Friday declined to comment on the deal. JBS USA, a wholly owned subsidiary of JBS SA, did not return requests for comment.
The deal includes Cargill's two meat processing plants in Iowa and Illinois, as well as five feed mills in Missouri, Arkansas, Iowa and Texas and four hog farms in Arkansas, Oklahoma and Texas.
The transition was already under way at the two plants in Beardstown, Illinois, and Ottumwa, Iowa.
While pork products were still shipping out of the plants to customers on Friday, both were shuttered for slaughtering hogs, Cargill spokesman Michael Martin said.
JBS USA is a leading processor of beef, pork and lamb, as well as a majority shareholder in chicken processor Pilgrim's Pride Corp.
By adding Cargill's hog slaughter capacity, JBS USA becomes the second-largest pork packer in the country - just behind Smithfield Foods Inc, a wholly owned subsidiary of China-based pork processor WH Group Ltd.
NFU Calls Yet Another Approval of Massive Meat Industry Acquisition
The Department of Justice (DOJ) has announced its approval of the purchase by JBS SA of Cargill Inc.'s pork unit. National Farmers Union President Roger Johnson made this statement:
“Despite the fact that American agriculture is already highly concentrated, the DOJ has once again approved a major acquisition by one meat industry behemoth of another. The continued string of acquisitions and mergers that we’ve seen over the last few years creates a marketplace that is controlled by just a handful of companies, placing family farmers and ranchers at a significant disadvantage. For America’s family farmers and ranchers, this is nothing short of ‘death by a thousand cuts.’
“In fact, with the approval of this deal, more than seventy percent of the pork processing ability in the United States is controlled by just four companies. This increased concentration further reduces marketing opportunities for family farmers and could directly impact pork prices for consumers. Brazilian meatpacker JBS is now the second-largest pork packer in the country, with Chinese-owned Smithfield Foods remaining the largest.
“What is additionally troubling is that the DOJ has not asked for a single restriction on this deal. While they have argued that family farmers are free to comment if they have any concerns, the unfortunate fact is that most producers are afraid to speak out, fearing retribution by the handful of meatpackers who run the show.
“It’s time for the Department of Justice to wake up and realize that simply rubber stamping every merger and acquisition request that comes before it is directly undermining our nation’s already vulnerable family farmers and small producers.”
John Deere and The Climate Corporation Expand Precision and Digital Agriculture Options for Farmers
Deere & Company (NYSE: DE) and The Climate Corporation, a subsidiary of Monsanto Company (NYSE: MON), have signed definitive agreements for Deere to acquire the Precision Planting LLC equipment business and to enable exclusive near real-time data connectivity between certain John Deere farm equipment and the Climate FieldViewTM platform. The agreements represent the industry’s first and only near real-time in-cab wireless connection to John Deere equipment by a third party.
“To maximize the value of digital agriculture, farmers need solutions for simple and seamless collection of in-field agronomic data,” said Mike Stern, president and chief operating officer for The Climate Corporation. “As a result of these milestone agreements, farmers will experience the fastest, most frequent and highest resolution third-party connectivity between John Deere’s equipment and the Climate FieldView platform.”
John May, president, agricultural solutions and chief information officer at Deere, said, “The agreements we are announcing allow John Deere to extend the range of retrofit options available from Precision Planting to many more products and into new geographies.
John Deere strengthens its position as the most open platform in the industry both in our equipment and the cloud-based data management solution known as the John Deere Operations Center.”
Under the terms of the agreements, Deere will purchase Precision Planting while Climate will retain the digital agriculture portfolio that has been integrated into the Climate FieldView platform. The acquisition is subject to customary closing conditions, including the approval of the relevant antitrust authorities to the extent required.
Stern said, “Our agreements enable farmers to combine the industry-leading technology of John Deere equipment with Climate FieldView, the platform that offers farmers the broadest equipment connectivity in the industry backed by data science. This connectivity allows farmers to collect and directly share data to the Climate cloud, enables data visualization in the cab and supports the development of customized data science-driven insights.”
“This strategic acquisition expands the John Deere precision agriculture business and accelerates our momentum as a market leader,” May said. “Strategic use of information is an important factor in successful agriculture. Today’s actions demonstrate John Deere’s ongoing investments to enhance the product and service solutions we offer our customers.”
The companies said customers will have the option to share their current and historical agronomic data between the John Deere Operations Center and the Climate FieldView platform and seamlessly execute agronomic prescriptions with John Deere equipment.
Larry Howard, UNL Extension Educator, Cuming County
It’s nice seeing cattle beginning to be turned out into corn stalks. One point that needs mentioned is that we all need to be checking the herbicide label for any grazing restrictions of crop residues.
Check the labels from in-season applied herbicides to row crops and fall-applied herbicides to crop residue for any potential grazing restrictions and also any restrictions on grazing cover crops planted into crop residues following application of those chemicals to a row crop. If the label doesn’t specify any restrictions, then it should be ok. If you want to be on the safe side, a rule of thumb some chemical representatives use is to use the pre-harvest interval for the amount of time to wait before grazing stalks.
Some labels will say that residue should not be grazed or baled and fed to livestock. Sometimes studies were actually conducted to know there is a safety concern. In other cases, the chemical company may not choose to conduct all the studies the Environmental Protection Agency (EPA) required for labeling due to high costs. If that’s the case, the EPA requires the strongest restrictive language be placed on the label.
Regardless, if it says there’s a grazing restriction on the label, the label needs to be followed as it is a legal document and the law. Your cattle may/may not be affected by grazing stalks or cover crops where a chemical with a grazing restriction is on the label, but there may be other concerns such as problems with the chemical affecting the calf or being retained in the cow’s milk.
Hail/rain/wind caused for soybean shatter and harvest loss for some areas of the state. Volunteer beans have created green fields in the area. For those considering grazing, you also need to look at any herbicide grazing restrictions from herbicides applied in-season to soybeans as well. UNL Extension Forage Specialist, Bruce Anderson recently shared, “Soybeans can cause bloat, but the incidence is low. The young green ones may be more risky. Founder would be possible problem with a sudden diet change. Too many unsprouted beans in the diet could cause excess fat; I think maximum is about 3 pounds of beans per cow. I’d try to limit amount of grazing for a few days, maybe feeding a very palatable supplement like a ground forage/distillers mix and reduce the amount of this supplement each day for a week or so. And keep a dry, palatable hay always available free choice.”
For a quick reference, the 2015 UNL Guide for Weed Management shows the Forage, Feed, Grazing Restrictions for Row Crop Herbicides on pages 174-177. A new weed guide will be released January 2016. These pages just provide a reference; it is always best to read and follow the label.
Field to Market Assessments to Improve Efficiency
Keith Glewen, Nebraska Extension Educator
Nebraska Extension in Saunders County announces that the University of Nebraska Agricultural Research and Development Center near Mead, Neb. will be a host site for a new series of workshops that employs the agricultural industry authored Field to Market tool to estimate efficiency of input use and environmental sustainability for your farming practices. The workshop is sponsored by Nebraska Extension, Nebraska Corn Board and Nebraska Soybean Board. Participating farmers will use a new web based tool called the Fieldprint® Calculator.
Calculating "Fieldprints" can help growers to establish benchmark data on a field and track improvements overtime, set energy saving and efficiency goals and compare performance against local, state and national benchmarks said Extension Educator Keith Glewen. The Fieldprint Calculator is simple to use, though the technology behind it is very complex and the metrics are science based.
The Field Assessment workshops in Nebraska are hands-on and will show growers how to document eight sustainability and efficiency indicators via use of a laptop computer. They are Land Use, Conservation, Soil Carbon, Irrigation Water Use, Water Quality, Energy Use, Greenhouse Gas Emissions and Water Quality.
Participants will select a representative corn or soybean field for 2015 and complete a data input sheet in advance of the Fieldprint® Calculator workshops. Meals and workshop materials are sponsored. Computer laptops are provided or bring your own. No prior computer knowledge is necessary, there will be plenty of experienced users to assist all who attend or bring along a helper. Pre-registration is required by Thursday, December 3, 2015, by contacting a host Extension office. Participants from 2014 workshops are invited back to review outcomes from last year’s workshops and complete another cropping sequence.
“We want growers in Nebraska to be better able to understand and communicate how management choices affect overall sustainability performance and operational efficiency of their farm operations, but also be prepared for any new supply chain initiatives in the food sector that could emerge” said Glewen.
The workshop instructors include a core team of Nebraska Extension faculty. For more information and to pre-register by the December 3, 2015 deadline, contact the Nebraska Extension at 402-624-8030 or Saunders-County@unl.edu.
Nebraska Workshop Times, Locations and Pre-registration Information:
LINCOLN: Monday, December 7, 9:00 AM – 1:00 PM
UNL Extension Office in Lancaster County, 444 Cherrycreek Road
Contact: Tyler Williams, (402)441-7180 or tyler.williams@unl.edu
Green Plains Reports Third Quarter 2015 Financial Results
Omaha-based Green Plains Inc. (NASDAQ:GPRE) announced today its financial results for the third quarter of 2015. Net income attributable to the company for the quarter was $6.2 million, or $0.16 per diluted share, compared to net income of $41.7 million, or $1.03 per diluted share, for the same period in 2014. Revenues were $742.8 million for the third quarter of 2015 compared to $833.9 million for the same period in 2014.
"We are pleased with our results considering the tight margin environment experienced during the third quarter," said Todd Becker, president and chief executive officer. "Based on the recent improvement in the forward curve for ethanol margins and current market fundamentals, we believe our fourth quarter operating income will exceed the third quarter of 2015."
With the formation of Green Plains Partners LP, Green Plains restructured its operating segments to create a separate reportable segment for the partnership. The partnership is included in the Green Plains' consolidated financial statements, with public ownership reflected as a noncontrolling interest.
During the third quarter, Green Plains' ethanol production totaled 215.6 million gallons, or approximately 83.8% of its daily average production capacity. As a result of additional intersegment transactions primarily relating to contractual arrangements with Green Plains Partners, the company has added financial disclosure concerning the consolidated ethanol crush margin, i.e. the gross margin earned before charges and fees paid to affiliates. The consolidated ethanol crush margin is operating income before depreciation and amortization from the ethanol production segment, including corn oil production, plus the partnership's intercompany storage and transportation activities and other internal fees. The consolidated ethanol crush margin was $34.9 million, or $0.16 per gallon for the third quarter of 2015, compared to $82.8 million, or $0.34 per gallon for the same period in 2014.
"With our recent acquisition activity, we are putting our strong balance sheet to work for our shareholders," Becker said. "The purchase of ethanol plants in Hopewell and Hereford, along with expansion projects completed to date, will increase our production capacity to over 1.2 billion gallons per year. We believe each of these transactions will be accretive to earnings in the near term."
Revenues were $2.2 billion for the nine-month period ended September 30, 2015 compared to $2.4 billion for the same period of 2014. Net income attributable to Green Plains for the nine-month period ended September 30, 2015 was $10.7 million, or $0.27 per diluted share, compared to net income of $117.3 million, or $2.90 per diluted share, for the same period in 2014.
"Global demand for ethanol remains strong, with domestic blending occurring at a record pace and ethanol exports running approximately 6% ahead of last year," continued Becker. "For the third quarter, ethanol export sales were 21% of our production. We continue to see strong interest from a variety of countries for the ethanol, distillers grains and corn oil we produce."
Green Plains had $512.5 million in total cash and equivalents and $275.3 million available under committed loan agreements at subsidiaries (subject to borrowing base restrictions and other specified lending conditions) at September 30, 2015. EBITDA, which is defined as earnings before interest, income taxes, depreciation and amortization, for the third quarter 2015 was $36.3 million compared to $91.9 million for the same period in 2014.
Green Plains Partners Reports 3rd Quarter 2015 Financial Results
Omaha-based Green Plains Partners LP (NASDAQ:GPP) today announced financial and operating results for the three months ended Sept. 30, 2015. The partnership reported adjusted EBITDA of $13.1 million and distributable cash flow of $12.9 million. Third quarter 2015 net income was $10.9 million, or $0.34 per common unit.
“The partnership’s stable fee-based contract structure allowed us to achieve solid financial results for our first quarter of operation as a public company,” commented Todd Becker, president and chief executive officer of Green Plains Partners.
“Storage and throughput volumes were slightly lower than expected during the quarter due to seasonally scheduled maintenance completed on the production facilities, increased production of export product which reduces plant production rates and the decision by Green Plains Inc. to slow production in response to lower ethanol margins,” continued Becker. “Green Plains has since returned to production levels that are more consistent with prior quarters. As a result, we expect stronger adjusted EBITDA in the fourth quarter.”
“We also expect Green Plains Inc. to offer the partnership its first dropdown opportunity in the fourth quarter as a result of their recent acquisitions. At the same time, we are pursuing organic and acquisitive growth opportunities on our own,” Becker added. “With our strong liquidity position, we are uniquely positioned to move quickly for the right opportunity.”
Green Plains Partners LP is a Delaware limited partnership formed by its parent, Green Plains Inc., to provide fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage tanks, terminals, transportation assets and other related assets and businesses.
On July 1, 2015, the partnership completed its initial public offering of 11,500,000 common units representing limited partner interests at a price of $15.00 per common unit, which included 1,500,000 common units issued in accordance with the underwriters’ over-allotment option. Common units of the partnership are traded under the symbol “GPP” on The NASDAQ Global Market. As of July 1, 2015, the partnership’s assets include:
Ethanol Storage Facilities. The partnership owns 27 ethanol storage facilities located at or near 12 ethanol production plants owned by its parent in Indiana, Iowa, Michigan, Minnesota, Nebraska and Tennessee with combined on-site ethanol storage capacity of approximately 26.6 million gallons, or mmg, and an aggregate throughput capacity of approximately 1,330 million gallons per year, or mmgy. The ethanol storage assets are the principal method of storing and loading the ethanol produced at Green Plains’ ethanol production plants for delivery to its customers.
Fuel Terminal Facilities. The partnership provides terminal services and logistics solutions at fuel terminal facilities it owns and operates. These eight fuel terminal facilities, located in seven south-central states, have fuel holding tanks and access to major rail lines for transporting ethanol or other fuels. The partnership’s fuel terminal facilities have a combined total storage capacity of approximately 7.4 mmg.
Transportation Assets. The partnership’s transportation assets include a leased railcar fleet of approximately 2,200 railcars with an aggregate capacity of approximately 66.3 mmg as of Sept. 30, 2015, which are dedicated to transporting products, including ethanol and other fuels, under commercial agreements with Green Plains Inc. from the partnership’s fuel terminal facilities or third-party production facilities to refineries throughout the United States and international export terminals. In addition, the partnership uses a fleet of tanker trucks to provide fuel transportation services.
The partnership received net proceeds of $157.4 million from the sale of the common units, after deducting underwriting discounts of $10.3 million, structuring fees of $0.9 million and other IPO expenses of approximately $3.9 million. Net proceeds were used to make a distribution of $155.3 million to Green Plains, in part, as reimbursement for capital expenditures incurred and to pay $0.9 million in origination fees under the partnership’s new revolving credit facility. The remaining $1.2 million was retained for general partnership purposes.
Iowa Farm Bureau to feature inspirational speaker, Aaron Thomas, as keynote for 97th Annual Meeting
Members of the Iowa’s largest grassroots farm organization will gather to celebrate the many ways Iowa agriculture is ‘growing for the greater good’ during the 97th annual meeting of the Iowa Farm Bureau Federation (IFBF), Dec. 1 and 2 at the Community Choice Credit Union Convention Center in Des Moines.
To mark the occasion, Governor Terry Branstad has declared Nov. 30- Dec. 6 as ‘Iowa Farm Bureau Week’ to honor the many accomplishments and contributions of the 97-year-old grassroots farm organization, more than 159,000 members strong.
“Our annual meeting theme, ‘Growing for the Greater Good,’ highlights the sustainability, innovation and growth of Iowa agriculture and celebrates the dedication, accomplishments, and potential of our diverse farm families who help move our state forward,” says IFBF President Craig Hill. “Today’s responsible farmers are always looking for ways to improve what we grow and how we grow it, while being exemplary caretakers of the land. We are excited to showcase some of Iowa’s best and brightest farm families during award presentations, and we are bringing a group of high-caliber experts to lead educational breakout sessions. We are also looking forward to having acclaimed inspirational speaker, Aaron Thomas, deliver the keynote address to members.”
Thomas will share his message of overcoming adversity and turning his family’s tragedy into an opportunity to help others. Thomas is the son of the late Aplington-Parkersburg coach, Ed Thomas, who inspired countless student-athletes and community members before and even after his murder, at the hands of a troubled, former student athlete. Thomas not only took over the role of coach after his father’s death, he also serves as a community leader, role model and inspirational speaker.
In addition to innovative and thought-provoking speakers, the 97th IFBF annual meeting will also feature nine different ‘hands-on’ educational seminars to help Farm Bureau members navigate important issues like conservation and water quality, rural transportation, busting food production myths with real science, and new technology and innovation in agriculture.
Iowa’s next generation of farm leaders will also take the stage for the IFBF Young Farmer Discussion Meet Dec. 2, competing for the state title, a John Deere X320 riding lawn mower, and the chance to advance to the national competition during the American Farm Bureau Federation (AFBF) Annual Convention, January 8-13, in Orlando, Florida.
This year’s entertainment includes an evening reception December 1 and features the Dueling Pianos of local musicians Tony Bohnenkamp and Whitney Maxwell. Bohnenkamp is also a member of the popular Iowa band, The Nadas. The nationally-recognized YouTube sensation and TV personality, ‘Iowa Nice Guy’ and IFBF’s ‘Farmer Nice Guy’, Scott Siepker, will serve as emcee for the evening.
Members can register for the 2015 IFBF annual meeting at their county Farm Bureau offices.
Iowa Soybean Association releases how-to guide for on-farm research
Tips, insights and processes to inform farmers’ decision making fill the Guide to On-Farm Replicated Strip Trials published by the Iowa Soybean Association (ISA) On-Farm Network®.
The comprehensive manual provides farmers, agronomists, researchers and consultants details about how to set up trials and collect, summarize and analyze data.
“The guide captures the experiences gained from conducting trials over the last 15 years,” said Pat Reeg, On-Farm Network director. “We’ve continuously improved our methodologies and share these along with science-based practices and ‘watch-outs’ so that more farmers can easily implement trials on their farm — with or without the On-Farm Network — and realize the full potential of each field.”
Replicated strip trials allow farmers first-hand experience evaluating products and practices on limited acres. While technological advancements have made it easier than ever to collect valuable data, knowing how to properly use it remains key to benefiting from that data.
“Farmers may be more open to try new things when commodity prices are high,” said Reeg. “But now, with tightening margins, it is even more important to test and determine the profitability of products and practices.”
Setting up an on-farm trial can be simple and easy for farmers whether utilizing the guide or working with local agronomists, consultants or their regional On-Farm Network field research specialist. Farmers use their own planter, applicators, tillage implements or sprayers to establish the trials. Then in the fall use combines equipped with on-board GPS and yield monitors to collect spatial data. This work can be done utilizing the guide or working with local agronomists
“It is a very simple process from a farmer standpoint,” said Rolland Schnell, farmer from Newton and ISA president-elect. “I’ve being working with the On-Farm Network for several years, and have made many production decisions based on my data and the analysis of data available through ISA. The guide to on-farm research is a great tool for farmers just starting to consider research as well as those who have been doing it a while.”
Schnell says a major benefit to working with the team is the assistance and availability of results from on-farm research across multiple sites and years.
Having access to this type of data, he adds, can help improve understanding of how current management practices, products, weather and soil variability affect yield and profitability.
The On-Farm Network team also aggregates information to influence management decisions. Data is then available to participating farmers and the public anonymously online.
The Guide to On-Farm Replicated Strip Trials is available www.isafarmnet.com. The print version will be offered at the ISU Extension Crop Advantage meetings in January and provided to attendees of the annual ISA Research Conference to be held Feb. 16-17 in Des Moines.
Fischer Votes for Bill to Stop WOTUS
U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Environment and Public Works Committee, released the following statement this afternoon after voting for S. 1140 – The Federal Water Quality Protection Act, which she cosponsored:
“Today, I voted to stop the federal government’s attack on Nebraska families, taxpayers, job creators, ag producers, and communities.
“The Federal Water Quality Protection Act would require the government to do its homework and work with states and local stakeholders before imposing such a rule – something that should have happened in the first place.
“I will continue to hold the administration accountable and ensure the citizens of Nebraska, not bureaucrats in Washington, remain in control of our water resources.”
This afternoon, the U.S. Senate voted on The Federal Water Quality Protection Act, which would direct the administration to withdraw the rule and issue a revised proposal. The bill would set clear limits on federal regulation of water, require consultation with states and impacted stakeholders, and ensure that a thorough economic analysis is conducted. It failed to pass the necessary 60-vote threshold to advance by a margin of 57-41.
Fischer is also an original cosponsor of S. 1178 – The Defending Rivers from Overreaching Policies Act. This bill targets the flawed science used by the EPA to expand the definition of water.
The WOTUS rule has been marked with strong, bipartisan opposition since it was first announced last year. On August 27, 2015, hours before the rule went live, a temporary injunction was issued by U.S. District Court Judge Ralph Erickson of North Dakota. Nebraska was one of 13 states exempted from the rule. Last month, on October 9, the U.S. Court of Appeals for the Sixth Circuit ruled against WOTUS. This ruling immediately blocked the implementation of WOTUS nationwide.
NCBA and PLC Urge Senate Support for Federal Water Quality Protection Act
Today the National Cattlemen’s Beef Association and Public Lands Council sent a letter urging the Senate to vote for S. 1140, the Federal Water Quality Protection Act. This bipartisan legislation would direct the EPA and Army Corps of Engineers to withdraw the current “waters of the United States” rule and immediately work with all stakeholders to draft a rule that would bring clarity to the Clean Water Act without usurping state and private water rights. NCBA President and Chugwater, Wyo., cattleman Philip Ellis said this legislation is the best option for ensuring the rights of producers are recognized.
“The WOTUS rule is the most burdensome and far reaching piece of regulation we have ever seen, touching almost every producer and leaving a path of regulatory uncertainty,” said Ellis. “While cattlemen and women continue in litigation with the agencies over this regulation, the Senate has the opportunity to step in and withdraw this disastrous rule. Action by the Senate now will save cattle producers and states millions of dollars in legal fees and years in litigation.”
Currently, the United States Court of Appeals for the Sixth Circuit has temporarily stayed implementation of the WOTUS rule across the country until they can determine jurisdiction. In granting the stay, the Court found that the WOTUS rule may violate established law on the extent of the Clean Water Act. Moreover, the Court cited the flawed rulemaking process used by the EPA and the arbitrary nature of the limits set in the rule.
“The preliminary court rulings in this case show that cattle producers are likely to succeed in their case and point to EPA’s failed rulemaking process,” said Ellis. “With the doubt cast by the Court, added to the concerns expressed by the Army Corps over this rule, it is clear that a failed rule resulted from a failed process. The House acted in a bi-partisan way to withdraw this rule, and it is time for the Senate to do the same.”
NCBA and PLC support the Federal Water Quality Protection Act and will continue to pursue legislation and litigation to withdraw the WOTUS rule.
Farmer Co-ops Urge Support for Senate "Waters of the U.S." Bill
The National Council of Farmer Cooperatives (NCFC) today urged the Senate to proceed to debate on S. 1140, the Federal Water Quality Protection Act of 2015. The bill would instruct the Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers to put forth a new rule based on set criteria about what constitutes a “water of the United States” (WOTUS) under the Clean Water Act.
“The recent redefinition of what constitutes a WOTUS goes far beyond what Congress intended in passing the Clean Water Act and expands EPA regulatory jurisdiction in an unprecedented way. The fact that the Sixth Circuit Court has enjoined enforcement of the rules shows that there are major problems with what EPA and the Corps produced and that Congress should provide additional direction to the agencies to fix it,” said Chuck Conner, president and CEO of NCFC. “A debate on S. 1140 would be an important step in that direction, and so we urge senators to vote ‘yes’ on the motion to proceed later today.”
Informa Boosts US Estimates
Private analytical firm Informa Economics sees U.S. corn and soybean crops increasing slightly from USDA’s last forecast.
It estimated the national average corn yield at 170.1 bushels per acre, up 2.1 bpa from last month. Production was pegged at 13.72 billion bushels. Informa increased its estimated yields in Illinois and Iowa by 5 bpa and Indiana, Minnesota, the Dakotas and Arkansas by 2 bpa.
The soybean crop, estimated at 3.95 bb, is 64 million bushels higher than USDA’s October forecast. Informa’s national average yield estimate increased 0.8 bpa from last month to a record 47.9 bpa. Yield estimates increased in more than a dozen states.
Informa also released its estimates of world crop production as market focus increasingly shifts to planting in Brazil and Argentina. It’s still early for these estimates to be entirely accurate, Hultman said, adding that they should be watched through the lens of changes in the weather as planting continues.
Forecasts for Brazilian corn and soybean production both increased in Informa’s latest report. Soybean production is now forecast at 101 million metric tons, 1 mmt higher than last month, based on Informa’s planting survey that indicated a 5% increase in planted acres.
Informa projects that Brazil’s corn production will total 81.8 mmt, which is 700,000 metric tons above last month. Farmers are expected to harvest 27.8 mmt of main season corn and 54 mmt of winter corn.
Argentina producers are expected to increase soybean production at the expense of corn harvest. Informa’s estimate for soybean production increased 3 mmt from last month to 59 mmt, and is based on a recent planting survey. Argentina’s corn production is forecast at 18.5 mmt, down 1.5 mmt from Informa’s report last month.
Fertilizer Prices Level Slightly in Past Week
Retail prices of most fertilizers followed no particular trend in the past week, with some falling, some increasing and some remaining unchanged, according to dealers tracked by DTN for the fourth week of October 2015.
The bottom line is that compared to a month ago, all fertilizers trended lower but none have budged more than 4%.
DAP averaged $546/ton, MAP $562/ton, potash $431/ton, urea $409/ton, 10-34-0 $583/ton, anhydrous $638/ton, UAN28 $292/ton and UAN32 $234/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.44/lb.N, anhydrous $0.39/lb.N, UAN28 $0.52/lb.N and UAN32 $0.52/lb.N.
All retail fertilizer prices except 10-34-0 are lower now compared to a year earlier.
Urea has seen the most dramatic fall with prices now 19% lower than last year. Prices of UAN28 and UAN32 are both 11% lower than last year, while potash comes in at 10% lower.
Anhydrous prices are 9% lower than last year, while DAP and MAP come in at a 6% decline respectively. Starter fertilizer, 10-34-0, runs 5% above year ago levels.
Alternatives to Corn Ethanol Would Cut Carbon Emissions
Compared to dirty corn ethanol, biofuels from next-generation feedstocks could greatly reduce carbon emissions that contribute to climate change, according to a new report by EWG and University of California experts.
EWG measured the carbon emitted over the life cycle of ethanol made from switchgrass and from corn stover, the stalks and leaves left on fields after harvest. EWG’s analysis found that the life-cycle carbon intensity of corn stover ethanol is 96 percent lower than gasoline and that of switchgrass ethanol is 47 percent lower than gasoline.
By contrast, EPA studies show that the life-cycle carbon intensity of conventional corn ethanol is greater than gasoline. Yet current federal policy – the Renewable Fuel Standard, or RFS, established in 2005 – strongly favors the production of corn ethanol at the expense of cleaner alternatives.
“When the Renewable Fuel Standard was established, corn ethanol was touted as being cleaner than gasoline, but 10 years later we know it’s just the opposite,” said EWG Research Analyst Emily Cassidy, author of the report. “It’s time to break up the corn ethanol monopoly to make room for next-generation biofuels that could reduce carbon emissions.”
The RFS mandates that by 2022 refiners must blend 36 billion gallons of biofuel into gasoline each year. This has driven the conversion of millions of acres of grasslands and wetlands to grow corn for making ethanol.
But converting grasslands and wetlands into corn fields releases the carbon stored in the soil. Growing corn also requires fertilizers that emit nitrous oxide, another powerful greenhouse gas. As a result, the boom in corn ethanol has contributed to more climate-warming emissions than if there were no mandate, and will do so for at least another 20 years.
The report concludes that Congress should reform the RFS to eliminate the mandate for adding increasing amounts of corn ethanol to gasoline, and to accelerate development of biofuels from lower-carbon feedstocks. If Congress fails to act, EPA should employ the reset provisions of the RFS to gradually reduce the mandate for corn ethanol and encourage development of cleaner second-generation fuels.
House Science Committee Subcommittees on Oversight and Environment Fail to Acknowledge Success of RFS
This morning, the House Science Committee held a hearing on the 10th anniversary of the Renewable Fuel Standard (RFS). The Science Committee has a history of misrepresenting biofuels, relying on misinformation and outright lies to cast a negative light on an American success story. In response to today’s hearing, Tom Buis, co-chair of Growth Energy, issued the following statement:
“Today’s hearing was nothing more than a coordinated attack against biofuels. Minus a few open-minded individuals who examined this issue based on facts, not pre-determined bias, this hearing did nothing to reflect the overwhelming contributions of the RFS.
“The RFS has been a resounding success since its passage a decade ago. It is important that we recognize how much this policy has done to help improve the lives of all Americans. This bipartisan law was passed in Congress in 2005 and strengthened in 2007 with several policy goals: improved energy security, job creation and reduced greenhouse gas emissions. Ten years later, any objective analysis will prove this policy has done exactly what it was designed to do.
“With regards to the environmental benefits of ethanol, the facts are clear. According to Argonne National Laboratory, – an objective national laboratory – ethanol reduces greenhouse gas (GHG) emissions by an average of 34 percent compared to gasoline, even when the highly controversial and disputed theory on Indirect Land Use Change (ILUC) is factored into the modeling. Furthermore, Argonne has found that without ILUC included, ethanol reduces GHG emissions by 57 percent compared to gasoline.
“It is unfortunate that the Science Committee missed an opportunity to provide an unbiased examination of the RFS. Instead, the Committee – which has no jurisdiction over this policy – continued to present a misguided agenda to smear biofuels, hosting several witnesses that fabricated information on the impact biofuels have on food prices, the environment and the American economy. This treatment of homegrown American fuels is insulting to the hardworking Americans across our country who are helping fuel our energy independence.
“Since the enactment of the RFS, biofuels have helped reduced our dependence on foreign oil by more than half — from 60 percent to 27 percent. We have created nearly 400,000 jobs that cannot be outsourced and our industry is helping mitigate climate change by reducing harmful greenhouse gas emissions. Additionally, the RFS is the only meaningful policy that has helped loosen the near monopoly Big Oil has on the motor fuel marketplace, as well as provide market access to higher blends of renewable fuels, giving consumers a choice at the pump.
“The RFS is working. It is doing exactly what it was intended to do. This success should renew Congress and EPA’s faith in this program. They must ensure that we continue down a path of renewable fuel innovation by continuing to support the RFS and refuse to accept the status quo of foreign oil and fossil fuels as our transportation energy future.”
USDA Dairy Products September 2015 Production Highlights
Total cheese output (excluding cottage cheese) was 956 million pounds, 2.4 percent above September 2014 but 2.3 percent below August 2015. Italian type cheese production totaled 403 million pounds, 0.4 percent above September 2014 but 1.6 percent below August 2015. American type cheese production totaled 376 million pounds, 2.8 percent above September 2014 but 3.8 percent below August 2015.
Butter production was 134 million pounds, 0.9 percent above September 2014 and 4.3 percent above August 2015.
Dry milk powders (comparisons with September 2014)
Nonfat dry milk, human - 121 million pounds, up 7.3 percent.
Skim milk powders - 26.8 million pounds, down 34.4 percent.
Whey products (comparisons with September 2014)
Dry whey, total - 78.4 million pounds, up 12.5 percent.
Lactose, human and animal - 86.5 million pounds, down 5.3 percent.
Whey protein concentrate, total - 37.4 million pounds, down 9.4 percent.
Frozen products (comparisons with September 2014)
Ice cream, regular (hard) - 64.4 million gallons, up 2.9 percent.
Ice cream, lowfat (total) - 34.3 million gallons, up 2.0 percent.
Sherbet (hard) - 3.48 million gallons, down 1 percent.
Frozen yogurt (total) - 4.93 million gallons, down 3.8 percent.
ADM's Profit, Revenue Slide
Archer Daniels Midland Co. reported steeper-than-expected drops in revenue and profit in its third quarter, as the grain trader and processor was hurt by weak ethanol margins and lower North American export volumes.
Shares fell 2.8% in premarket trading.
ADM, among the world's largest agribusinesses and a major ethanol producer, has been buffeted recently by lower ethanol-production margins and sluggish overseas demand for North American crops.
The Chicago company has also faced weakness in its grain-trading business as a strong U.S. dollar and large crops in South America crimped export demand for North American grain.
In the third quarter, revenue in ADM's corn-processing business fell 17% to $2.52 billion.
Revenue in ADM's agricultural-services segment fell 6.2% to $6.6 billion.
ADM's oilseed-processing business posted a 12% drop in revenue to $6.75 billion.
The wild flavors and specialty ingredients segment was a bright spot, as revenue more than doubled to $588 million in the quarter.
Overall, the company posted earnings of $252 million, or 41 cents a share, down from $747 million, or $1.14 a share, a year earlier.
The quarter included $65 million in impairment, exit and restructuring costs.
Excluding those charges and other special items, per-share earnings fell to 60 cents a share from 86 cents a year earlier.
Revenue slid 8.6% to $16.57 billion.
JBS Concludes Purchase of Cargill Pork Unit
Brazilian meatpacker JBS SA has concluded its $1.45 billion acquisition of Cargill Inc's U.S. pork assets without any restrictions from regulators, making it one of the largest meat companies in the United States. According to Reuters, the deal closed on the earlier end of the forecast JBS gave in early July, when officials said they expected antitrust approval of the pork assets to clear within four to seven months. In August, JBS raised $1.2 billion in the syndicated loan market to help fund the acquisition.
The U.S. Justice Department on Friday declined to comment on the deal. JBS USA, a wholly owned subsidiary of JBS SA, did not return requests for comment.
The deal includes Cargill's two meat processing plants in Iowa and Illinois, as well as five feed mills in Missouri, Arkansas, Iowa and Texas and four hog farms in Arkansas, Oklahoma and Texas.
The transition was already under way at the two plants in Beardstown, Illinois, and Ottumwa, Iowa.
While pork products were still shipping out of the plants to customers on Friday, both were shuttered for slaughtering hogs, Cargill spokesman Michael Martin said.
JBS USA is a leading processor of beef, pork and lamb, as well as a majority shareholder in chicken processor Pilgrim's Pride Corp.
By adding Cargill's hog slaughter capacity, JBS USA becomes the second-largest pork packer in the country - just behind Smithfield Foods Inc, a wholly owned subsidiary of China-based pork processor WH Group Ltd.
NFU Calls Yet Another Approval of Massive Meat Industry Acquisition
The Department of Justice (DOJ) has announced its approval of the purchase by JBS SA of Cargill Inc.'s pork unit. National Farmers Union President Roger Johnson made this statement:
“Despite the fact that American agriculture is already highly concentrated, the DOJ has once again approved a major acquisition by one meat industry behemoth of another. The continued string of acquisitions and mergers that we’ve seen over the last few years creates a marketplace that is controlled by just a handful of companies, placing family farmers and ranchers at a significant disadvantage. For America’s family farmers and ranchers, this is nothing short of ‘death by a thousand cuts.’
“In fact, with the approval of this deal, more than seventy percent of the pork processing ability in the United States is controlled by just four companies. This increased concentration further reduces marketing opportunities for family farmers and could directly impact pork prices for consumers. Brazilian meatpacker JBS is now the second-largest pork packer in the country, with Chinese-owned Smithfield Foods remaining the largest.
“What is additionally troubling is that the DOJ has not asked for a single restriction on this deal. While they have argued that family farmers are free to comment if they have any concerns, the unfortunate fact is that most producers are afraid to speak out, fearing retribution by the handful of meatpackers who run the show.
“It’s time for the Department of Justice to wake up and realize that simply rubber stamping every merger and acquisition request that comes before it is directly undermining our nation’s already vulnerable family farmers and small producers.”
John Deere and The Climate Corporation Expand Precision and Digital Agriculture Options for Farmers
Deere & Company (NYSE: DE) and The Climate Corporation, a subsidiary of Monsanto Company (NYSE: MON), have signed definitive agreements for Deere to acquire the Precision Planting LLC equipment business and to enable exclusive near real-time data connectivity between certain John Deere farm equipment and the Climate FieldViewTM platform. The agreements represent the industry’s first and only near real-time in-cab wireless connection to John Deere equipment by a third party.
“To maximize the value of digital agriculture, farmers need solutions for simple and seamless collection of in-field agronomic data,” said Mike Stern, president and chief operating officer for The Climate Corporation. “As a result of these milestone agreements, farmers will experience the fastest, most frequent and highest resolution third-party connectivity between John Deere’s equipment and the Climate FieldView platform.”
John May, president, agricultural solutions and chief information officer at Deere, said, “The agreements we are announcing allow John Deere to extend the range of retrofit options available from Precision Planting to many more products and into new geographies.
John Deere strengthens its position as the most open platform in the industry both in our equipment and the cloud-based data management solution known as the John Deere Operations Center.”
Under the terms of the agreements, Deere will purchase Precision Planting while Climate will retain the digital agriculture portfolio that has been integrated into the Climate FieldView platform. The acquisition is subject to customary closing conditions, including the approval of the relevant antitrust authorities to the extent required.
Stern said, “Our agreements enable farmers to combine the industry-leading technology of John Deere equipment with Climate FieldView, the platform that offers farmers the broadest equipment connectivity in the industry backed by data science. This connectivity allows farmers to collect and directly share data to the Climate cloud, enables data visualization in the cab and supports the development of customized data science-driven insights.”
“This strategic acquisition expands the John Deere precision agriculture business and accelerates our momentum as a market leader,” May said. “Strategic use of information is an important factor in successful agriculture. Today’s actions demonstrate John Deere’s ongoing investments to enhance the product and service solutions we offer our customers.”
The companies said customers will have the option to share their current and historical agronomic data between the John Deere Operations Center and the Climate FieldView platform and seamlessly execute agronomic prescriptions with John Deere equipment.
Monday, November 2, 2015
November 2 Crop Progress & Condition Report NE - IA - US
NEBRASKA CROP PROGRESS AND CONDITION
For the week ending November 1, 2015, limited precipitation combined with near normal temperatures allowed fall harvest activities to advance, according to the USDA’s National Agricultural Statistics Service. Precipitation was limited to half an inch or less in most areas. Corn harvest was slow to advance in Panhandle counties as producers waited for grain moisture levels to decline. Cattle producers continued to move livestock to crop residues. There were 5.6 days suitable for fieldwork. Topsoil moisture supplies rated 7 percent very short, 28 short, 64 adequate, and 1 surplus. Subsoil moisture supplies rated 6 percent very short, 29 short, 64 adequate, and 1 surplus.
Field Crops Report:
Corn harvested was at 75 percent, ahead of 57 last year, but near 77 for the five-year average.
Soybeans harvested was at 97 percent, near 94 last year, and equal to the average.
Sorghum harvested was at 70 percent, near 68 last year, but behind 76 average.
Winter wheat condition rated 0 percent very poor, 5 poor, 32 fair, 55 good, and 8 excellent. Winter wheat emerged was at 97 percent, near 96 last year, but ahead of 92 average.
Livestock, Pasture and Range Report:
Pasture and range conditions rated 3 percent very poor, 9 poor, 28 fair, 54 good, and 6 excellent. Stock water supplies rated 2 percent very short, 11 short, 86 adequate, and 1 surplus.
Access the National publication for Crop Progress and Condition tables at:
http://usda.mannlib.cornell.edu/usda/nass/CropProg/2010s/2015/CropProg-11-02-2015.pdf.
Access the High Plains Region Climate Center for Temperature and Precipitation Maps at:
http://www.hprcc.unl.edu/maps.php?map=ACISClimateMaps.
Access the U.S. Drought Monitor at:
http://droughtmonitor.unl.edu/Home/StateDroughtMonitor.aspx?NE.
IOWA CROP PROGRESS & CONDITOIN REPORT
Harvest and fieldwork activities were dampened due to rain during the week ending November 1, 2015, according to the USDA, National Agricultural Statistics Service. Farmers used the 4.2 days suitable for fieldwork to harvest corn for grain, harvest soybeans, work on fall tillage, install and repair tile and terraces, and apply dry fertilizer. Other activities included baling corn stalks, as well as manure hauling and spreading.
Topsoil moisture levels rated 1 percent very short, 13 percent short, 79 percent adequate, and 7 percent surplus. Subsoil moisture levels rated 2 percent very short, 12 percent short, 81 percent adequate and 5 percent surplus.
Eighty-five percent of the corn crop for grain has been harvested, 10 days ahead of last year, and 2 days ahead of the 5-year average.
Ninety-six percent of the soybean crop has been harvested, 8 days ahead of last year, but equal to normal. Although farmers in southwest and south central Iowa were able to harvest 10 percent of their soybean crop during the week, those were the only areas of the State where over 10 percent of the soybean crop remains to be harvested.
Grain movement from farm to elevator was rated 57 percent moderate to heavy. Off-farm grain storage availability was rated 78 percent adequate to surplus. On-farm grain storage availability was rated 69 percent adequate to surplus.
Hay and roughage supplies were rated 97 percent adequate to surplus. Livestock conditions were described as excellent, with reports of cattle being turned out to graze corn stalks.
IOWA PRELIMINARY WEATHER SUMMARY
Provided by Harry Hillaker, State Climatologist
Iowa Department of Agriculture & Land Stewardship
Iowa recorded its wettest week in six weeks. Dry weather prevailed on Monday (26th) with rain falling statewide on Tuesday (27th) into Wednesday (28th) morning with light precipitation lingering into Thursday morning over the northeast. Heaviest precipitation fell over eastern Iowa where amounts were mostly in the one to two inch range. The season’s first snow flurries were reported over northern Iowa, but with little if any accumulation, on Wednesday afternoon into Thursday morning. There was a break in the precipitation on Thursday with another round of statewide rain from Friday (30th) afternoon into Saturday (31st) morning. Rain totals with this second event averaged around one-third of an inch across the state. Weekly precipitation totals varied from 0.21 inches at Lester (Lyon County) to 2.86 inches at Marion. The statewide average precipitation was 1.15 inches, or a little more than double the weekly normal of 0.55 inches. Meanwhile, temperatures were slightly above normal on Monday (26th) and Tuesday (27th) with a relatively cool period from Wednesday (28th) through Saturday (31st) morning. Much warmer weather returned on Sunday (1st). Temperature extremes varied from a Friday morning low of 23 degrees at Battle Creek to a Sunday (1st) afternoon high of 77 degrees at Shenandoah and Sidney. Temperatures for the week as a whole averaged from about two degrees cooler than usual over the far southeast to three degrees above normal over the west. The statewide average temperature was 1.1 degrees above normal. Soil temperatures as of Sunday (1st) were averaging in the upper forties over the northwest one-half of Iowa to the lower fifties across the southeast. Soil temperatures are expected to rise with unseasonably warm weather prevailing through Wednesday and into Thursday of the coming week.
USDA Weekly Crop Progress - Harvest in Home Stretch
Eighty-five percent of the nation's corn and 92% of the soybeans were harvested as of Nov. 1, according to USDA's latest weekly Crop Progress report.
Corn is 85% harvested, compared to 75% last week and a 79% five-year average.
Soybeans are 92% harvested, compared to 87% last week and an 88% five-year average.
Winter wheat planting is 88% complete, compared to 83% last week and a 90% five-year average. Seventy-two percent of the crop is emerged, compared to 62% last week and a 73% five-year average. Also, 49% of winter wheat was rated good-to-excellent.
Seventy-nine percent of sorghum is harvested, compared to 71% last week and a 72% five-year average.
Fifty percent of the cotton crop is harvested, compared to 42% last week and the five-year average of 54%.
For the week ending November 1, 2015, limited precipitation combined with near normal temperatures allowed fall harvest activities to advance, according to the USDA’s National Agricultural Statistics Service. Precipitation was limited to half an inch or less in most areas. Corn harvest was slow to advance in Panhandle counties as producers waited for grain moisture levels to decline. Cattle producers continued to move livestock to crop residues. There were 5.6 days suitable for fieldwork. Topsoil moisture supplies rated 7 percent very short, 28 short, 64 adequate, and 1 surplus. Subsoil moisture supplies rated 6 percent very short, 29 short, 64 adequate, and 1 surplus.
Field Crops Report:
Corn harvested was at 75 percent, ahead of 57 last year, but near 77 for the five-year average.
Soybeans harvested was at 97 percent, near 94 last year, and equal to the average.
Sorghum harvested was at 70 percent, near 68 last year, but behind 76 average.
Winter wheat condition rated 0 percent very poor, 5 poor, 32 fair, 55 good, and 8 excellent. Winter wheat emerged was at 97 percent, near 96 last year, but ahead of 92 average.
Livestock, Pasture and Range Report:
Pasture and range conditions rated 3 percent very poor, 9 poor, 28 fair, 54 good, and 6 excellent. Stock water supplies rated 2 percent very short, 11 short, 86 adequate, and 1 surplus.
Access the National publication for Crop Progress and Condition tables at:
http://usda.mannlib.cornell.edu/usda/nass/CropProg/2010s/2015/CropProg-11-02-2015.pdf.
Access the High Plains Region Climate Center for Temperature and Precipitation Maps at:
http://www.hprcc.unl.edu/maps.php?map=ACISClimateMaps.
Access the U.S. Drought Monitor at:
http://droughtmonitor.unl.edu/Home/StateDroughtMonitor.aspx?NE.
IOWA CROP PROGRESS & CONDITOIN REPORT
Harvest and fieldwork activities were dampened due to rain during the week ending November 1, 2015, according to the USDA, National Agricultural Statistics Service. Farmers used the 4.2 days suitable for fieldwork to harvest corn for grain, harvest soybeans, work on fall tillage, install and repair tile and terraces, and apply dry fertilizer. Other activities included baling corn stalks, as well as manure hauling and spreading.
Topsoil moisture levels rated 1 percent very short, 13 percent short, 79 percent adequate, and 7 percent surplus. Subsoil moisture levels rated 2 percent very short, 12 percent short, 81 percent adequate and 5 percent surplus.
Eighty-five percent of the corn crop for grain has been harvested, 10 days ahead of last year, and 2 days ahead of the 5-year average.
Ninety-six percent of the soybean crop has been harvested, 8 days ahead of last year, but equal to normal. Although farmers in southwest and south central Iowa were able to harvest 10 percent of their soybean crop during the week, those were the only areas of the State where over 10 percent of the soybean crop remains to be harvested.
Grain movement from farm to elevator was rated 57 percent moderate to heavy. Off-farm grain storage availability was rated 78 percent adequate to surplus. On-farm grain storage availability was rated 69 percent adequate to surplus.
Hay and roughage supplies were rated 97 percent adequate to surplus. Livestock conditions were described as excellent, with reports of cattle being turned out to graze corn stalks.
IOWA PRELIMINARY WEATHER SUMMARY
Provided by Harry Hillaker, State Climatologist
Iowa Department of Agriculture & Land Stewardship
Iowa recorded its wettest week in six weeks. Dry weather prevailed on Monday (26th) with rain falling statewide on Tuesday (27th) into Wednesday (28th) morning with light precipitation lingering into Thursday morning over the northeast. Heaviest precipitation fell over eastern Iowa where amounts were mostly in the one to two inch range. The season’s first snow flurries were reported over northern Iowa, but with little if any accumulation, on Wednesday afternoon into Thursday morning. There was a break in the precipitation on Thursday with another round of statewide rain from Friday (30th) afternoon into Saturday (31st) morning. Rain totals with this second event averaged around one-third of an inch across the state. Weekly precipitation totals varied from 0.21 inches at Lester (Lyon County) to 2.86 inches at Marion. The statewide average precipitation was 1.15 inches, or a little more than double the weekly normal of 0.55 inches. Meanwhile, temperatures were slightly above normal on Monday (26th) and Tuesday (27th) with a relatively cool period from Wednesday (28th) through Saturday (31st) morning. Much warmer weather returned on Sunday (1st). Temperature extremes varied from a Friday morning low of 23 degrees at Battle Creek to a Sunday (1st) afternoon high of 77 degrees at Shenandoah and Sidney. Temperatures for the week as a whole averaged from about two degrees cooler than usual over the far southeast to three degrees above normal over the west. The statewide average temperature was 1.1 degrees above normal. Soil temperatures as of Sunday (1st) were averaging in the upper forties over the northwest one-half of Iowa to the lower fifties across the southeast. Soil temperatures are expected to rise with unseasonably warm weather prevailing through Wednesday and into Thursday of the coming week.
USDA Weekly Crop Progress - Harvest in Home Stretch
Eighty-five percent of the nation's corn and 92% of the soybeans were harvested as of Nov. 1, according to USDA's latest weekly Crop Progress report.
Corn is 85% harvested, compared to 75% last week and a 79% five-year average.
Soybeans are 92% harvested, compared to 87% last week and an 88% five-year average.
Winter wheat planting is 88% complete, compared to 83% last week and a 90% five-year average. Seventy-two percent of the crop is emerged, compared to 62% last week and a 73% five-year average. Also, 49% of winter wheat was rated good-to-excellent.
Seventy-nine percent of sorghum is harvested, compared to 71% last week and a 72% five-year average.
Fifty percent of the cotton crop is harvested, compared to 42% last week and the five-year average of 54%.
Monday November 02 Ag News
2015 Crop Insurance Workshop Targets Risk Management
"Risk Management Decisions for Tomorrow" will be the focus of four crop insurance workshops to be held in the Midwest in November. The Nebraska workshop will be Nov. 11 in College Park in Grand Island at 3180 W. Highway 34.
The event begins at 8 a.m. with registration and coffee, with the program beginning at 9 a.m. and ending after closing comments at 3:30 p.m.
The program is intended for farmers and ranchers who want to enhance their knowledge of risk management, as well as consultants, crop insurance agents, lenders, farm managers, grain merchandisers, and financial advisers.
Topics and Presenters
- Past As A Prologue — Lessons from the 1970s and 1980s with Allen Featherstone, Department Head, Ag Economics Department, Kansas State University
- Financial Picture at the Farm the Level with Tina Barrett, Nebraska Farm Business Association, University of Nebraska-Lincoln
- How Insurance Will Use Technology and Big Data with Terry Griffin, Cropping Systems Economist, Kansas State University
- Market Outlook for Grain with Cory Walters, Assistant Professor Ag Economics, University of Nebraska-Lincoln
- Market Outlook for Livestock with Kate Brooks, Assistant Professor Ag Economics, University of Nebraska-Lincoln
- Eliminating Harvest Price – Are We Looking at Cuts in the Farm Safety Net? with Art Barnaby, professor and Extension Ag Economist, Kansas State University
Register online at http://cropinsure.unl.edu. Cost is $100 if registering more than five days before the event or $120 after that point. See program brochure for nearby accommodations and registration information and form.
Cornhusker Economics Outlook
The 2015 Cornhusker Economics Outlook meeting series will focus on the ag outlook and management decisions for Nebraska farmers and ranchers at six locations across the state on November 17-24. The annual meeting series is offered by Nebraska Extension and the University of Nebraska Lincoln Department of Agricultural Economics. The meetings are free to participants thanks to the statewide series support of Great Western Bank along with local meeting sponsors.
The outlook meetings are scheduled for a concise, fast-paced discussion of crop, livestock, policy, and financial outlook with attention to production, management, and marketing decisions for 2016.
Kate Brooks, Extension Livestock Economist at UNL will provide outlook and analysis for beef and other livestock producers. Kate will digest emerging livestock market fundamentals, meat supplies, and meat demand to assess producer profit potential and sound marketing and production decisions in 2016.
Cory Walters, Extension Crop Economist at UNL will discuss the crop outlook and implications for producers. Cory will discuss the current price environment and market outlook for Nebraska crop producers and the implications for production, marketing, and risk management decisions in the year ahead.
Brad Lubben, Extension Policy Specialist at UNL will discuss the ag policy outlook. Beyond the current policy environment in Washington, Lubben will focus on the role of the farm income safety net and the projected support from farm programs and crop insurance for cash flow planning and risk management decision-making.
Tina Barrett, Director of Nebraska Farm Business, Inc. will discuss the farm financial outlook and financial management decisions ahead for producers. Building on data from hundreds of farm cooperators in NFBI, Tina will focus on the current financial position and trends for Nebraska agriculture and the financial management challenges and decisions facing producers, with a focus on budgeting and cost control for the year ahead.
Jay Parsons, Extension Economist at UNL will discuss farm and ranch risk management issues and decisions. Jay will draw on his expertise in risk management to incorporate the marketing, production, policy, and financial discussion into risk management decisions and strategies for producers for 2016.
Locations, Dates, Times, and Local Contacts
York
Tuesday, November 17, 1:00 – 4:00 p.m. CST
Holthus Convention Center
3130 Holen Avenue, York, NE
Contact: Gary Zoubek, York County Extension – 402-362-5508 or gzoubek1@unl.edu or Brandy VanDeWalle, Fillmore County Extension – 402759-3712 or bvandewalle2@unl.edu
Bridgeport
Wednesday, November 18, 9:00 a.m. – 12:00 noon MST
Prairie Winds Community Center
428 Main St., Bridgeport, NE
Contact: Jessica Groskopf, Panhandle Research and Extension Center – 308-632-1247 or jjohnson@unl.edu
McCook
Thursday, November 19, 9:00 a.m. – 12:00 noon CST
McCook Christian Church
507 West B Street, McCook, NE
Contact: Robert Tigner, Red Willow County Extension – 308-345-3390 or rtigner2@unl.edu
Kearney
Thursday, November 19, 1:00 – 4:00 p.m. CST
Buffalo County Fairgrounds in conjunction with the Gateway Farm Expo
3807 Ave. N Kearney, NE
Contact: Brent Plugge, Kearney County Extension – 308-236-1235 or bplugge1@unl.edu
Nebraska City
Monday, November 23, 9:00 a.m. – 12:00 noon CST
Kimmel Education and Research Center
5985 G Road, Nebraska City, NE
Contact: Monte Vandeveer, Otoe County Extension – 402-269-2301 or mvandeveer2@unl.edu
Wayne
Tuesday, November 24, 9:00 a.m. – 12:00 noon CST
Wayne Fire Hall
510 Tomar Drive. Wayne, NE
Contact: Tim Lemmons, Northeast Research and Extension Center – 402-370-4061 or tlemmons2@unl.edu or Jim Jansen, Cedar County Extension – 402-254-6821 or jjansen4@unl.edu
Winter Weeds: Control or Not to Control?
Amit Jhala, UNL Extension Weed Management Specialist
Recently we received several phone calls about winter weeds, particularly marestail. It is important for growers to decide now if they want to apply a herbicide. The following FAQs about winter weeds can help growers make a decision.
1. What winter weeds should growers watch for?
The most common winter weeds in Nebraska are marestail, henbit, field pennycress, prickly lettuce, shepherd’s purse, downy brome, tansy mustard, and dandelion.
2. Is a fall herbicide application needed?
Not necessarily. Herbicide timing to achieve the most effective control varies with the weed species present. Field scouting (see this Crop Watch article) and weed identification (see EC 304) are important. For example, if you see a lot of marestail, a fall herbicide application is needed.
3. Why focus on marestail?
Marestail is a significant problem weed in Nebraska. Most marestail in Nebraska is resistant to glyphosate and the ALS group of herbicides and is challenging to control with only a glyphosate burndown program. A recent survey reported that more than 2 million acres in Nebraska is infested with resistant marestail.
4. Why do you think a fall herbicide treatment is important in controlling glyphosate-resistant marestail?
Marestail can emerge in the fall and in the spring. However, most marestail in Nebraska is fall emerging and more effectively controlled then when it's in a seedling stage.
5. What do growers risk if they don’t use a fall herbicide treatment to control glyphosate-resistant marestail?
Growers can choose an early spring application of herbicides; however, sometimes early spring weather is not very cooperative. For example, this year, early spring was too wet and growers couldn't apply early spring burndown herbicide applications. In fact, pre-emergence herbicides also were not applied due to wet fields, leaving post-emergence herbicide applications as the only option to control marestail. By then, the marestail was too tall to be effectively controlled. Additionally, options for effective post-emergence herbicides are limited.
Variable response has been observed with early spring application of herbicides for marestail control. Some biennials and cool season perennials, including dandelion, wild carrot, and poison hamlock, also can be controlled more effectively with fall herbicide application.
6. When to control winter weeds?
UNL research has shown that most fall emergence was completed by early November, thus, targeting herbicide applications from late October to mid November would be important. Younger weeds tend to be more susceptible to herbicide treatments than those at an advanced growth stage.
7. What herbicides to consider?
Several herbicide tank-mix options are available for control of most winter annual weeds. Consult pages 61 (corn) and 105 (soybeans) of the 2015 Guide for Weed Management in Nebraska (EC 130) for effective options.
Smith Receives Fueling Growth Award for Support of Ethanol
Congressman Adrian Smith (R-NE) has received the 2015 Fueling Growth Award for his leadership in supporting domestic energy production and the ethanol industry. The award was presented by Growth Energy.
“Ethanol provides consumers in Nebraska and across America with a competitive alternative,” Smith said. “In April, I introduced H.R. 1736 to expand consumer choice at the fuel pump by extending to E15 the same waiver from EPA volatility standards already granted to E10, allowing both blends of ethanol to be sold year-round. I am honored to be recognized by Growth Energy as a leading advocate for biofuels and will continue working to advance domestic energy production in Nebraska and nationwide.”
In presenting the award, Tom Buis, co-chairman of Growth Energy, said, “Representative Smith has been a long-time champion for the ethanol industry. He has always worked to ensure sound federal policies are in place to ensure the growth of the industry. He understands the importance renewable fuels add to our energy security. Furthermore, Representative Smith understands the importance of consumer choice and savings at the pump. His tenure in Congress has been one that has helped the industry grow and thrive, and we are grateful for his continued and unwavering support.”
Green Plains to Purchase Texas Ethanol Facility From Murphy USA
Omaha-based Green Plains Inc. (NASDAQ:GPRE) and Murphy USA Inc. (NYSE:MUSA) today announced that they have signed a definitive agreement regarding the purchase by Green Plains of Murphy USA's ethanol production facility located in Hereford, Texas. Under the terms of the agreement, Green Plains will acquire Hereford Renewable Energy, LLC for approximately $93.8 million, subject to customary closing adjustments. The transaction value includes $78.5 million for the ethanol production facility with the balance for working capital. The transaction is expected to close this month subject to customary closing conditions and regulatory approvals.
The facility is a Lurgi-designed, ICM-modified ethanol plant with approximately 100 million gallons per year of production capacity, a corn oil extraction system and other related assets.
"The Hereford facility has many strategic and financial advantages over other destination plants because of its location, leading to both export and domestic market opportunities for ethanol and distillers grains," commented Todd Becker, president and chief executive officer of Green Plains. "Because it is located near the largest concentration of cattle in the world, with over a million head of cattle fed within a 50-mile radius, the plant can produce a low carbon intensity fuel which is typically sold for a premium to ethanol produced at most other plants."
Andrew Clyde, president and CEO of Murphy USA, added, "The Hereford facility has become a high-performing facility and we want to recognize the commitment of the Hereford employees who executed the two-year turnaround plan and established a track record of consistent, strong performance. Their commitment created the opportunity for us to attract a prominent, long-term focused buyer such as Green Plains who can build on the progress demonstrated to date at Hereford. This transaction reinforces Murphy USA's strategic intent of selling our non-core assets in a manner that captures the most value for our shareholders."
The facility's production capacity is complemented by a shuttle unload facility that can unload 40,000 bushels of corn per hour, a double-loop track that holds two unit trains at a time and a grain handling system with over 4.8 million bushels of storage. The plant also has 4.5 million gallons of ethanol storage capacity.
"We intend to utilize this asset and its shuttle train unload capability to serve the local market with corn and distillers grains produced in the Midwest to further improve the overall economics of the facility," stated Becker. "The value of this acquisition goes well beyond just producing ethanol."
The company will offer the facility's transportation and storage assets to its master limited partnership, Green Plains Partners LP.
Nugent is New Habitat Specialist for Rainwater Basin Joint Venture
The Rainwater Basin Joint Venture has named Ele Nugent of Grand Island as the partnership’s new Habitat Specialist. Nugent will assist the Joint Venture in planning and coordinating the restoration and management of wetlands throughout the Rainwater Basin region. She will also work with Rainwater Basin landowners and agriculture producers who are interested in learning about the Joint Venture’s conservation programs, including the Working Landscapes initiative for grazing wetlands.
Prior to assuming the position of Habitat Specialist, Nugent worked in the RWBJV’s science office where, among other projects, she led a region-wide assessment of changes over the past twelve years in waterfowl and shorebird habitat.
Nugent earned her bachelor’s degree in Environmental Studies at Michigan State University. At Oklahoma State University, where she earned a master’s degree in Natural Resource Ecology and Management, her research focused on avian response to wetland habitat restored through NRCS’s Wetlands Reserve Program.
RWBJV coordinator Andy Bishop noted that Nugent has experience in not only assessing landscapes but also in implementing conservation measures. “Ele’s background has allowed her to hit the ground running; she is already working with public land managers and private lands biologists to implement wetland management and control invasive species,” he said.
Adopt Financial Contingency Plan for Unexpected Farm Downturns
Farmers need to evaluate their cash and asset management if they experience negative cash flow during this period of downward-sliding crop prices, according to Iowa State University Extension and Outreach economic experts. They advise every farmer to have a financial contingency plan in place to cover cash flow shortfalls.
“People need to know their current situation and make sure that they have the reserves to make it through the lean years,” said Tim Eggers, ISU Extension and Outreach farm management specialist.
A recent ISU Extension and Outreach publication, “Farm financial management: 16 ways to stretch cash flow,” details the actions that farmers can take to improve their liquidity when times get tough. Available on the ISU Extension’s Ag Decision Maker website www.extension.iastate.edu/agdm, it was written by William Edwards, a retired farm management economist with 40 years of ISU Extension and Outreach experience.
Edwards witnessed numerous farm economy slowdowns during his long tenure and reinforces “behaviors that work when things aren’t bright and shiny,” Eggers said. The steps in the publication are listed from the easiest to the most difficult.
Cash management is the first tactic that farmers can take. Edwards’ suggestions include using cash surpluses from previous years, liquidating stored crops, marketing livestock, tapping into credit reserves and refinancing loans. The last may involve lengthening the loan repayment period or adding balloon payments.
“There may be machinery with a fair amount of equity or equipment that was financed with a short-term note when cash flowed in the good years,” Eggers said. “When times are lean, spreading loan payments over more years can help with cash flow.”
Other options that could help when money is tight include to own equipment jointly with others, trade use with someone else or lease it. Machinery lease payments are often lower than loan payments. But selling assets may be hard if prices are trending down.
“Timeliness is a real issue when it comes to any equipment decision,” Eggers said. “Was that piece of equipment purchased with the notion that it would be putting in a decade or more on the farm? If so, selling it may be tough. It may be doubly tough if there isn’t equity to recapture due to decreasing values.”
Farmers can take other actions related to asset management to improve their financial picture. These alternatives include deferring capital purchases, refurbishing equipment instead of buying new and reducing livestock culling rates rather than replacing breeding stock. “It’s important to carefully consider any new purchases to determine whether you can afford them,” Eggers said.
A decline in the farm economy has wide-ranging ramifications and can be difficult for individuals to handle alone.
“Low prices and high costs affect everyone,” wrote Edwards in his publication. “Financial stress can lead to increased stress in other areas. During unprofitable times in agriculture, check in with friends and neighbors. If you or someone you know is struggling, encourage them to seek professional help.”
Available assistance
ISU Extension and Outreach has assistance available at any time through the Iowa Concern Hotline, 800-447-1985.
Farm financial planning also is available at no charge from extension farm financial management associates. They provide one-on-one financial counseling, a computerized analysis of the farm business and referral to other useful services. Learn more at www.extension.iastate.edu/farmanalysis/.
18 Students Named To Iowa Corn Collegiate Advisory Team
Iowa Corn would like to announce the 18 Iowa college students who will make up the fifth Iowa Corn Collegiate Advisory Team (CAT).
The CAT team is sponsored by the Iowa Corn Growers Association (ICGA) and the Iowa Corn Promotion Board (ICPB). The advisory team helps ICGA and ICPB in developing programs that target and enhance Iowa Corn’s relationship with students who are pursuing careers in agriculture production, business and the industry as a whole.
The 2015/2016 participants:
· Dalton Webster, Dordt College
· Jacquie Kenyon, Ellsworth Community College (?)
· Jacob Still, Graceland College
· Jayden Van Berkum, Hawkeye Community College (?)
· Hannah Wilson, Indian Hills Community College
· Keyton Strutzenburg, Iowa Central Community College
· Trent Taglauer, Iowa State
· Warren Bailey, Iowa State University
· Michael Barr, Iowa State University
· Mikayla Edwards, Iowa State University
· Kaitlin Ihns, Iowa State University
· Kellin Chambers, Iowa Western Community College
· Kayla Smith, Kirkwood Community College
· Valarie Hernandez, Morningside College
· Ty Schillerstrom, Muscatine Community College
· Sami Searle, Northern Iowa Area Community College
· Natalie Te Grootenhuis, Northwestern College
· Michaella Beckman, Southeastern Community College
“Iowa Corn is very excited to work with these 18 bright students on ways we can cultivate and promote the industry, “said Don Hunerdosse who is the chair of the committee who oversees the team. “We look forward to hearing their ideas on how we can become more engaged.”
USDA Announces Commodity Credit Corporation Lending Rates for November 2015
The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for November 2015. The CCC borrowing rate-based charge for November is 0.250 percent, down from 0.375 percent in October.
The interest rate for crop year commodity loans less than one year disbursed during November is 1.250 percent, down from 1.375 percent in October.
Interest rates for Farm Storage Facility Loans approved for November are as follows, 1.750 percent with seven-year loan terms, down from 1.875 percent in October; 2.125 percent with 10-year loan terms, unchanged from 2.125 percent in October and; 2.250 percent with 12-year loan terms, down from 2.375 percent in October.
Selection of 2015-16 Officers Concludes 88th National FFA Convention & Expo
Students from Arkansas, Tennessee, Ohio, Iowa, Georgia and Utah have been elected by delegates from throughout the United States to serve on the 2015-16 National FFA Officer team.
Taylor McNeel of Arkansas, an agricultural business major at Southern Arkansas University, was elected president. Nick Baker of Tennessee, an agricultural communications major at the University of Tennessee, will serve as secretary.
Sydney Snider of Ohio, an agricultural communications major at The Ohio State University, was elected eastern region vice president and Abrah Meyer of Iowa, an agricultural business major at Iowa State University, will serve as central region vice president.
Abbey Gretsch of Georgia, an agricultural communications major at the University of Georgia, was elected southern region vice president and Sarah Draper of Utah, an agricultural education major at Utah State University, will serve as western region vice president.
Each year at the National FFA Convention & Expo, six students are elected by delegates to represent the organization as National FFA officers. Delegates elect a president, secretary and vice presidents representing the central, southern, eastern and western regions of the country.
Pilgrim's Pride Reports Lower Third Quarter Sales
Pilgrim's Pride Corporation reports third quarter 2015 financial results with Net Sales of $2.11 billion for the 13-week period, compared to $2.27 billion for the same period in 2014. The 2015 Q3 Net Income was $137.1 million compared to the $256.0 million reported in the same period in 2014.
The company says continued challenges in the export markets, the strong dollar, and the lowest chicken cutout in the past five years during the quarter have had an impact on the commodity segments of our business, and on our U.S. export and Mexico sales.
"Despite these challenges, our team has managed to produce solid margins compared to periods when prices were at similar levels," stated Bill Lovette, CEO of Pilgrim's. "The Q3 results are a strong validation of our portfolio model, and the strategy we have pursued and implemented over the past four years is fundamental in improving our ability to maintain strong performance, minimize the impact of different market conditions, and give us more consistent financial results."
Lovette says the firm is also on track to extract $200 million in operational improvements for the year.
Kellogg Commits to Gage-Free Eggs, Eliminating Gestation Stalls
Kellogg Company announced its plans to build on its commitment to animal welfare by sourcing only cage-free eggs for its foods and eliminating gestation stalls from its pork supply chain by the end of 2025. Kellogg says it will also consider the "Five Freedoms" of animal welfare, an internationally recognized set of humane treatment principles, as part of its process to continuously improve its supply chain in the future.
"Even though we are a grains-based company and use very few animal products in our foods, we understand that we have a role to play in influencing responsible behavior throughout our supply chain," said Paul Norman, President, Kellogg North America. "Today's announcement allows us to lead positive change in a way we know gives consumers more of what they want from brands and companies - a strong focus on social responsibility."
Kellogg uses eggs in some of its foods, including Eggo frozen breakfast foods and MorningStar Farms frozen veggie foods brands. The company also purchases a very small amount of pork for some of its frozen breakfast sandwiches.
Kellogg has already reduced its use of eggs from caged hens in MorningStar Farms products by 20 million eggs since 2007, and by the end of 2016, the company has committed to switch one million more cage-free eggs within its MorningStar Farms brand.
The announcement, which applies to its U.S. operations, takes those promises one step further with the move to 100 percent cage-free eggs.
Movember is here - Join the dairy industry to support men’s health during the month of November.
Movember is here, and it’s time to shave for a cause. Support prostate cancer awareness by growing a mustache – starting now! If you can’t sport a ‘stache, you can support the cause by spreading the word or making a donation.
The MoDairy campaign supports the Movember Foundation, a national organization committed to raising awareness of men’s health issues including prostate cancer, testicular cancer and mental health. The foundation uses the mustache as a symbol and suggests men grow mustaches to raise awareness of men’s health issues.
“We need to continue to emphasize men’s health issues such as prostate cancer throughout our industry,” says Amy Throndsen with Advanced Comfort Technology/DCC Waterbeds, sponsor of the MoDairy campaign. Many of us know of someone we care about that has been impacted by these health issues, and we need to bond together to raise awareness.”
MoDairy will once again be hosting the “Show Us Your ‘Stache” contest to start conversations about men’s health. If you currently have facial hair, consider shaving and growing a new mustache throughout November. Post pictures of your mustache at www.facebook.com/MoDairy. For every image posted, MoDairy will donate $5 to the Movember Foundation. The person featured photo with the most likes at the end of Movember will win his or her choice of a 20- by 20-inch Steel Cow print.
Want to get involved and support the cause? Here are a few ideas:
Throw a MoDairy party or decorate your office and social media channels with MoDairy art. MoDairy social media content, printable mustaches and more are available at: http://bitly.com/MoDairy_PartyKit.
Contact your doctor to schedule your annual health screening.
Join the MoDairy network and donate to the Movember USA campaign to fund prostate cancer research. Visit: http://moteam.co/modairy to donate.
Sponsors of the 2015 MoDairy campaign include Advanced Comfort Technology/DCC Waterbeds, Filament Marketing, Jaylor, Schaefer Ventilation, Udder Tech and Rock River Laboratory.
"Risk Management Decisions for Tomorrow" will be the focus of four crop insurance workshops to be held in the Midwest in November. The Nebraska workshop will be Nov. 11 in College Park in Grand Island at 3180 W. Highway 34.
The event begins at 8 a.m. with registration and coffee, with the program beginning at 9 a.m. and ending after closing comments at 3:30 p.m.
The program is intended for farmers and ranchers who want to enhance their knowledge of risk management, as well as consultants, crop insurance agents, lenders, farm managers, grain merchandisers, and financial advisers.
Topics and Presenters
- Past As A Prologue — Lessons from the 1970s and 1980s with Allen Featherstone, Department Head, Ag Economics Department, Kansas State University
- Financial Picture at the Farm the Level with Tina Barrett, Nebraska Farm Business Association, University of Nebraska-Lincoln
- How Insurance Will Use Technology and Big Data with Terry Griffin, Cropping Systems Economist, Kansas State University
- Market Outlook for Grain with Cory Walters, Assistant Professor Ag Economics, University of Nebraska-Lincoln
- Market Outlook for Livestock with Kate Brooks, Assistant Professor Ag Economics, University of Nebraska-Lincoln
- Eliminating Harvest Price – Are We Looking at Cuts in the Farm Safety Net? with Art Barnaby, professor and Extension Ag Economist, Kansas State University
Register online at http://cropinsure.unl.edu. Cost is $100 if registering more than five days before the event or $120 after that point. See program brochure for nearby accommodations and registration information and form.
Cornhusker Economics Outlook
The 2015 Cornhusker Economics Outlook meeting series will focus on the ag outlook and management decisions for Nebraska farmers and ranchers at six locations across the state on November 17-24. The annual meeting series is offered by Nebraska Extension and the University of Nebraska Lincoln Department of Agricultural Economics. The meetings are free to participants thanks to the statewide series support of Great Western Bank along with local meeting sponsors.
The outlook meetings are scheduled for a concise, fast-paced discussion of crop, livestock, policy, and financial outlook with attention to production, management, and marketing decisions for 2016.
Kate Brooks, Extension Livestock Economist at UNL will provide outlook and analysis for beef and other livestock producers. Kate will digest emerging livestock market fundamentals, meat supplies, and meat demand to assess producer profit potential and sound marketing and production decisions in 2016.
Cory Walters, Extension Crop Economist at UNL will discuss the crop outlook and implications for producers. Cory will discuss the current price environment and market outlook for Nebraska crop producers and the implications for production, marketing, and risk management decisions in the year ahead.
Brad Lubben, Extension Policy Specialist at UNL will discuss the ag policy outlook. Beyond the current policy environment in Washington, Lubben will focus on the role of the farm income safety net and the projected support from farm programs and crop insurance for cash flow planning and risk management decision-making.
Tina Barrett, Director of Nebraska Farm Business, Inc. will discuss the farm financial outlook and financial management decisions ahead for producers. Building on data from hundreds of farm cooperators in NFBI, Tina will focus on the current financial position and trends for Nebraska agriculture and the financial management challenges and decisions facing producers, with a focus on budgeting and cost control for the year ahead.
Jay Parsons, Extension Economist at UNL will discuss farm and ranch risk management issues and decisions. Jay will draw on his expertise in risk management to incorporate the marketing, production, policy, and financial discussion into risk management decisions and strategies for producers for 2016.
Locations, Dates, Times, and Local Contacts
York
Tuesday, November 17, 1:00 – 4:00 p.m. CST
Holthus Convention Center
3130 Holen Avenue, York, NE
Contact: Gary Zoubek, York County Extension – 402-362-5508 or gzoubek1@unl.edu or Brandy VanDeWalle, Fillmore County Extension – 402759-3712 or bvandewalle2@unl.edu
Bridgeport
Wednesday, November 18, 9:00 a.m. – 12:00 noon MST
Prairie Winds Community Center
428 Main St., Bridgeport, NE
Contact: Jessica Groskopf, Panhandle Research and Extension Center – 308-632-1247 or jjohnson@unl.edu
McCook
Thursday, November 19, 9:00 a.m. – 12:00 noon CST
McCook Christian Church
507 West B Street, McCook, NE
Contact: Robert Tigner, Red Willow County Extension – 308-345-3390 or rtigner2@unl.edu
Kearney
Thursday, November 19, 1:00 – 4:00 p.m. CST
Buffalo County Fairgrounds in conjunction with the Gateway Farm Expo
3807 Ave. N Kearney, NE
Contact: Brent Plugge, Kearney County Extension – 308-236-1235 or bplugge1@unl.edu
Nebraska City
Monday, November 23, 9:00 a.m. – 12:00 noon CST
Kimmel Education and Research Center
5985 G Road, Nebraska City, NE
Contact: Monte Vandeveer, Otoe County Extension – 402-269-2301 or mvandeveer2@unl.edu
Wayne
Tuesday, November 24, 9:00 a.m. – 12:00 noon CST
Wayne Fire Hall
510 Tomar Drive. Wayne, NE
Contact: Tim Lemmons, Northeast Research and Extension Center – 402-370-4061 or tlemmons2@unl.edu or Jim Jansen, Cedar County Extension – 402-254-6821 or jjansen4@unl.edu
Winter Weeds: Control or Not to Control?
Amit Jhala, UNL Extension Weed Management Specialist
Recently we received several phone calls about winter weeds, particularly marestail. It is important for growers to decide now if they want to apply a herbicide. The following FAQs about winter weeds can help growers make a decision.
1. What winter weeds should growers watch for?
The most common winter weeds in Nebraska are marestail, henbit, field pennycress, prickly lettuce, shepherd’s purse, downy brome, tansy mustard, and dandelion.
2. Is a fall herbicide application needed?
Not necessarily. Herbicide timing to achieve the most effective control varies with the weed species present. Field scouting (see this Crop Watch article) and weed identification (see EC 304) are important. For example, if you see a lot of marestail, a fall herbicide application is needed.
3. Why focus on marestail?
Marestail is a significant problem weed in Nebraska. Most marestail in Nebraska is resistant to glyphosate and the ALS group of herbicides and is challenging to control with only a glyphosate burndown program. A recent survey reported that more than 2 million acres in Nebraska is infested with resistant marestail.
4. Why do you think a fall herbicide treatment is important in controlling glyphosate-resistant marestail?
Marestail can emerge in the fall and in the spring. However, most marestail in Nebraska is fall emerging and more effectively controlled then when it's in a seedling stage.
5. What do growers risk if they don’t use a fall herbicide treatment to control glyphosate-resistant marestail?
Growers can choose an early spring application of herbicides; however, sometimes early spring weather is not very cooperative. For example, this year, early spring was too wet and growers couldn't apply early spring burndown herbicide applications. In fact, pre-emergence herbicides also were not applied due to wet fields, leaving post-emergence herbicide applications as the only option to control marestail. By then, the marestail was too tall to be effectively controlled. Additionally, options for effective post-emergence herbicides are limited.
Variable response has been observed with early spring application of herbicides for marestail control. Some biennials and cool season perennials, including dandelion, wild carrot, and poison hamlock, also can be controlled more effectively with fall herbicide application.
6. When to control winter weeds?
UNL research has shown that most fall emergence was completed by early November, thus, targeting herbicide applications from late October to mid November would be important. Younger weeds tend to be more susceptible to herbicide treatments than those at an advanced growth stage.
7. What herbicides to consider?
Several herbicide tank-mix options are available for control of most winter annual weeds. Consult pages 61 (corn) and 105 (soybeans) of the 2015 Guide for Weed Management in Nebraska (EC 130) for effective options.
Smith Receives Fueling Growth Award for Support of Ethanol
Congressman Adrian Smith (R-NE) has received the 2015 Fueling Growth Award for his leadership in supporting domestic energy production and the ethanol industry. The award was presented by Growth Energy.
“Ethanol provides consumers in Nebraska and across America with a competitive alternative,” Smith said. “In April, I introduced H.R. 1736 to expand consumer choice at the fuel pump by extending to E15 the same waiver from EPA volatility standards already granted to E10, allowing both blends of ethanol to be sold year-round. I am honored to be recognized by Growth Energy as a leading advocate for biofuels and will continue working to advance domestic energy production in Nebraska and nationwide.”
In presenting the award, Tom Buis, co-chairman of Growth Energy, said, “Representative Smith has been a long-time champion for the ethanol industry. He has always worked to ensure sound federal policies are in place to ensure the growth of the industry. He understands the importance renewable fuels add to our energy security. Furthermore, Representative Smith understands the importance of consumer choice and savings at the pump. His tenure in Congress has been one that has helped the industry grow and thrive, and we are grateful for his continued and unwavering support.”
Green Plains to Purchase Texas Ethanol Facility From Murphy USA
Omaha-based Green Plains Inc. (NASDAQ:GPRE) and Murphy USA Inc. (NYSE:MUSA) today announced that they have signed a definitive agreement regarding the purchase by Green Plains of Murphy USA's ethanol production facility located in Hereford, Texas. Under the terms of the agreement, Green Plains will acquire Hereford Renewable Energy, LLC for approximately $93.8 million, subject to customary closing adjustments. The transaction value includes $78.5 million for the ethanol production facility with the balance for working capital. The transaction is expected to close this month subject to customary closing conditions and regulatory approvals.
The facility is a Lurgi-designed, ICM-modified ethanol plant with approximately 100 million gallons per year of production capacity, a corn oil extraction system and other related assets.
"The Hereford facility has many strategic and financial advantages over other destination plants because of its location, leading to both export and domestic market opportunities for ethanol and distillers grains," commented Todd Becker, president and chief executive officer of Green Plains. "Because it is located near the largest concentration of cattle in the world, with over a million head of cattle fed within a 50-mile radius, the plant can produce a low carbon intensity fuel which is typically sold for a premium to ethanol produced at most other plants."
Andrew Clyde, president and CEO of Murphy USA, added, "The Hereford facility has become a high-performing facility and we want to recognize the commitment of the Hereford employees who executed the two-year turnaround plan and established a track record of consistent, strong performance. Their commitment created the opportunity for us to attract a prominent, long-term focused buyer such as Green Plains who can build on the progress demonstrated to date at Hereford. This transaction reinforces Murphy USA's strategic intent of selling our non-core assets in a manner that captures the most value for our shareholders."
The facility's production capacity is complemented by a shuttle unload facility that can unload 40,000 bushels of corn per hour, a double-loop track that holds two unit trains at a time and a grain handling system with over 4.8 million bushels of storage. The plant also has 4.5 million gallons of ethanol storage capacity.
"We intend to utilize this asset and its shuttle train unload capability to serve the local market with corn and distillers grains produced in the Midwest to further improve the overall economics of the facility," stated Becker. "The value of this acquisition goes well beyond just producing ethanol."
The company will offer the facility's transportation and storage assets to its master limited partnership, Green Plains Partners LP.
Nugent is New Habitat Specialist for Rainwater Basin Joint Venture
The Rainwater Basin Joint Venture has named Ele Nugent of Grand Island as the partnership’s new Habitat Specialist. Nugent will assist the Joint Venture in planning and coordinating the restoration and management of wetlands throughout the Rainwater Basin region. She will also work with Rainwater Basin landowners and agriculture producers who are interested in learning about the Joint Venture’s conservation programs, including the Working Landscapes initiative for grazing wetlands.
Prior to assuming the position of Habitat Specialist, Nugent worked in the RWBJV’s science office where, among other projects, she led a region-wide assessment of changes over the past twelve years in waterfowl and shorebird habitat.
Nugent earned her bachelor’s degree in Environmental Studies at Michigan State University. At Oklahoma State University, where she earned a master’s degree in Natural Resource Ecology and Management, her research focused on avian response to wetland habitat restored through NRCS’s Wetlands Reserve Program.
RWBJV coordinator Andy Bishop noted that Nugent has experience in not only assessing landscapes but also in implementing conservation measures. “Ele’s background has allowed her to hit the ground running; she is already working with public land managers and private lands biologists to implement wetland management and control invasive species,” he said.
Adopt Financial Contingency Plan for Unexpected Farm Downturns
Farmers need to evaluate their cash and asset management if they experience negative cash flow during this period of downward-sliding crop prices, according to Iowa State University Extension and Outreach economic experts. They advise every farmer to have a financial contingency plan in place to cover cash flow shortfalls.
“People need to know their current situation and make sure that they have the reserves to make it through the lean years,” said Tim Eggers, ISU Extension and Outreach farm management specialist.
A recent ISU Extension and Outreach publication, “Farm financial management: 16 ways to stretch cash flow,” details the actions that farmers can take to improve their liquidity when times get tough. Available on the ISU Extension’s Ag Decision Maker website www.extension.iastate.edu/agdm, it was written by William Edwards, a retired farm management economist with 40 years of ISU Extension and Outreach experience.
Edwards witnessed numerous farm economy slowdowns during his long tenure and reinforces “behaviors that work when things aren’t bright and shiny,” Eggers said. The steps in the publication are listed from the easiest to the most difficult.
Cash management is the first tactic that farmers can take. Edwards’ suggestions include using cash surpluses from previous years, liquidating stored crops, marketing livestock, tapping into credit reserves and refinancing loans. The last may involve lengthening the loan repayment period or adding balloon payments.
“There may be machinery with a fair amount of equity or equipment that was financed with a short-term note when cash flowed in the good years,” Eggers said. “When times are lean, spreading loan payments over more years can help with cash flow.”
Other options that could help when money is tight include to own equipment jointly with others, trade use with someone else or lease it. Machinery lease payments are often lower than loan payments. But selling assets may be hard if prices are trending down.
“Timeliness is a real issue when it comes to any equipment decision,” Eggers said. “Was that piece of equipment purchased with the notion that it would be putting in a decade or more on the farm? If so, selling it may be tough. It may be doubly tough if there isn’t equity to recapture due to decreasing values.”
Farmers can take other actions related to asset management to improve their financial picture. These alternatives include deferring capital purchases, refurbishing equipment instead of buying new and reducing livestock culling rates rather than replacing breeding stock. “It’s important to carefully consider any new purchases to determine whether you can afford them,” Eggers said.
A decline in the farm economy has wide-ranging ramifications and can be difficult for individuals to handle alone.
“Low prices and high costs affect everyone,” wrote Edwards in his publication. “Financial stress can lead to increased stress in other areas. During unprofitable times in agriculture, check in with friends and neighbors. If you or someone you know is struggling, encourage them to seek professional help.”
Available assistance
ISU Extension and Outreach has assistance available at any time through the Iowa Concern Hotline, 800-447-1985.
Farm financial planning also is available at no charge from extension farm financial management associates. They provide one-on-one financial counseling, a computerized analysis of the farm business and referral to other useful services. Learn more at www.extension.iastate.edu/farmanalysis/.
18 Students Named To Iowa Corn Collegiate Advisory Team
Iowa Corn would like to announce the 18 Iowa college students who will make up the fifth Iowa Corn Collegiate Advisory Team (CAT).
The CAT team is sponsored by the Iowa Corn Growers Association (ICGA) and the Iowa Corn Promotion Board (ICPB). The advisory team helps ICGA and ICPB in developing programs that target and enhance Iowa Corn’s relationship with students who are pursuing careers in agriculture production, business and the industry as a whole.
The 2015/2016 participants:
· Dalton Webster, Dordt College
· Jacquie Kenyon, Ellsworth Community College (?)
· Jacob Still, Graceland College
· Jayden Van Berkum, Hawkeye Community College (?)
· Hannah Wilson, Indian Hills Community College
· Keyton Strutzenburg, Iowa Central Community College
· Trent Taglauer, Iowa State
· Warren Bailey, Iowa State University
· Michael Barr, Iowa State University
· Mikayla Edwards, Iowa State University
· Kaitlin Ihns, Iowa State University
· Kellin Chambers, Iowa Western Community College
· Kayla Smith, Kirkwood Community College
· Valarie Hernandez, Morningside College
· Ty Schillerstrom, Muscatine Community College
· Sami Searle, Northern Iowa Area Community College
· Natalie Te Grootenhuis, Northwestern College
· Michaella Beckman, Southeastern Community College
“Iowa Corn is very excited to work with these 18 bright students on ways we can cultivate and promote the industry, “said Don Hunerdosse who is the chair of the committee who oversees the team. “We look forward to hearing their ideas on how we can become more engaged.”
USDA Announces Commodity Credit Corporation Lending Rates for November 2015
The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for November 2015. The CCC borrowing rate-based charge for November is 0.250 percent, down from 0.375 percent in October.
The interest rate for crop year commodity loans less than one year disbursed during November is 1.250 percent, down from 1.375 percent in October.
Interest rates for Farm Storage Facility Loans approved for November are as follows, 1.750 percent with seven-year loan terms, down from 1.875 percent in October; 2.125 percent with 10-year loan terms, unchanged from 2.125 percent in October and; 2.250 percent with 12-year loan terms, down from 2.375 percent in October.
Selection of 2015-16 Officers Concludes 88th National FFA Convention & Expo
Students from Arkansas, Tennessee, Ohio, Iowa, Georgia and Utah have been elected by delegates from throughout the United States to serve on the 2015-16 National FFA Officer team.
Taylor McNeel of Arkansas, an agricultural business major at Southern Arkansas University, was elected president. Nick Baker of Tennessee, an agricultural communications major at the University of Tennessee, will serve as secretary.
Sydney Snider of Ohio, an agricultural communications major at The Ohio State University, was elected eastern region vice president and Abrah Meyer of Iowa, an agricultural business major at Iowa State University, will serve as central region vice president.
Abbey Gretsch of Georgia, an agricultural communications major at the University of Georgia, was elected southern region vice president and Sarah Draper of Utah, an agricultural education major at Utah State University, will serve as western region vice president.
Each year at the National FFA Convention & Expo, six students are elected by delegates to represent the organization as National FFA officers. Delegates elect a president, secretary and vice presidents representing the central, southern, eastern and western regions of the country.
Pilgrim's Pride Reports Lower Third Quarter Sales
Pilgrim's Pride Corporation reports third quarter 2015 financial results with Net Sales of $2.11 billion for the 13-week period, compared to $2.27 billion for the same period in 2014. The 2015 Q3 Net Income was $137.1 million compared to the $256.0 million reported in the same period in 2014.
The company says continued challenges in the export markets, the strong dollar, and the lowest chicken cutout in the past five years during the quarter have had an impact on the commodity segments of our business, and on our U.S. export and Mexico sales.
"Despite these challenges, our team has managed to produce solid margins compared to periods when prices were at similar levels," stated Bill Lovette, CEO of Pilgrim's. "The Q3 results are a strong validation of our portfolio model, and the strategy we have pursued and implemented over the past four years is fundamental in improving our ability to maintain strong performance, minimize the impact of different market conditions, and give us more consistent financial results."
Lovette says the firm is also on track to extract $200 million in operational improvements for the year.
Kellogg Commits to Gage-Free Eggs, Eliminating Gestation Stalls
Kellogg Company announced its plans to build on its commitment to animal welfare by sourcing only cage-free eggs for its foods and eliminating gestation stalls from its pork supply chain by the end of 2025. Kellogg says it will also consider the "Five Freedoms" of animal welfare, an internationally recognized set of humane treatment principles, as part of its process to continuously improve its supply chain in the future.
"Even though we are a grains-based company and use very few animal products in our foods, we understand that we have a role to play in influencing responsible behavior throughout our supply chain," said Paul Norman, President, Kellogg North America. "Today's announcement allows us to lead positive change in a way we know gives consumers more of what they want from brands and companies - a strong focus on social responsibility."
Kellogg uses eggs in some of its foods, including Eggo frozen breakfast foods and MorningStar Farms frozen veggie foods brands. The company also purchases a very small amount of pork for some of its frozen breakfast sandwiches.
Kellogg has already reduced its use of eggs from caged hens in MorningStar Farms products by 20 million eggs since 2007, and by the end of 2016, the company has committed to switch one million more cage-free eggs within its MorningStar Farms brand.
The announcement, which applies to its U.S. operations, takes those promises one step further with the move to 100 percent cage-free eggs.
Movember is here - Join the dairy industry to support men’s health during the month of November.
Movember is here, and it’s time to shave for a cause. Support prostate cancer awareness by growing a mustache – starting now! If you can’t sport a ‘stache, you can support the cause by spreading the word or making a donation.
The MoDairy campaign supports the Movember Foundation, a national organization committed to raising awareness of men’s health issues including prostate cancer, testicular cancer and mental health. The foundation uses the mustache as a symbol and suggests men grow mustaches to raise awareness of men’s health issues.
“We need to continue to emphasize men’s health issues such as prostate cancer throughout our industry,” says Amy Throndsen with Advanced Comfort Technology/DCC Waterbeds, sponsor of the MoDairy campaign. Many of us know of someone we care about that has been impacted by these health issues, and we need to bond together to raise awareness.”
MoDairy will once again be hosting the “Show Us Your ‘Stache” contest to start conversations about men’s health. If you currently have facial hair, consider shaving and growing a new mustache throughout November. Post pictures of your mustache at www.facebook.com/MoDairy. For every image posted, MoDairy will donate $5 to the Movember Foundation. The person featured photo with the most likes at the end of Movember will win his or her choice of a 20- by 20-inch Steel Cow print.
Want to get involved and support the cause? Here are a few ideas:
Throw a MoDairy party or decorate your office and social media channels with MoDairy art. MoDairy social media content, printable mustaches and more are available at: http://bitly.com/MoDairy_PartyKit.
Contact your doctor to schedule your annual health screening.
Join the MoDairy network and donate to the Movember USA campaign to fund prostate cancer research. Visit: http://moteam.co/modairy to donate.
Sponsors of the 2015 MoDairy campaign include Advanced Comfort Technology/DCC Waterbeds, Filament Marketing, Jaylor, Schaefer Ventilation, Udder Tech and Rock River Laboratory.
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