Farmers Pride Announces Earnings and Dividends Distribution
Farmers Pride an area leading farmer cooperative, today reported earnings of $3.8 million for its 2015 fiscal year at their annual meeting held in Norfolk. Earnings attributed to Farmers Pride operations for fiscal 2014 (Dec 1, 2014 – Nov 30, 2015) decreased 7% over the $4.1 million earnings for fiscal 2014. Revenues for fiscal 2015 reached $158 million, reflecting higher volumes for the energy, grain and crop nutrients products.
"Despite lower grain prices during the fall 2015, we are proud of our financial results for fiscal 2015. Our strong balance sheet and overall financial strength has allowed us to make substantial upgrades to equipment and facilities all designed to help our farmer-owners with their operations. We are happy to continue a long history of bringing value for our producer owners who count on Famers Pride for their agronomic, grain, energy and feed needs," said Dean Thernes, President of Farmers Pride.
Farmers Pride customers will share a $547,000 cash patronage disbursement in addition to $802,000 of retired equities this past summer from the 2014 fiscal earnings. This brings the total cash returned to Farmers Pride customers over the past six years of over $11 million.
"This cash distribution represents the value of being a cooperative owner and customer," said Jerry Dolesh, Farmers Pride board chairman and a Tilden, NE farmer. "Not only do Farmers Pride customers benefit from our services and facilities, they also share in our profits. This allows Farmers Pride’s customers to invest in the future of a local businesses and their rural community."
Patronage is based on business done with Farmers Pride by individual farmers and ranchers during fiscal 2015, while equity redemptions represent retirement of ownership in Farmers Pride earned in past years.
Farmers Pride is a leading cooperative, owned by 6,000 farmers and ranchers across northeast Nebraska with locations in Battle Creek, Bloomfield, Ewing, Madison, Newman Grove, Neligh, O’Neill, Oakdale, Oakland, Osmond, Pierce, Plainview and Snyder.
IANR to host Twitter Town Hall with AgisAmerica
Extension specialists and researchers at the Institute of Agriculture and Natural Resources at the University of Nebraska–Lincoln will partner with Agriculture is America (AgisAmerica), a national communications initiative aimed at highlighting the nation’s land grant institutions, to host a Twitter Town Hall on Friday March 4 from 1 – 2 p.m. CST.
Scientists, researchers and extension educators will answer questions regarding IANR’s role in the advancement of agricultural science and agricultural technological innovation. Specifically, experts will discuss the role of unmanned aerial systems in agriculture, water management, and nutrient management; how technology can be used to track foodborne illnesses; how consumers can reduce food waste; and groundwater availability and quality.
A Twitter Town Hall, like a pubic meeting or seminar, gives the opportunity for a live question and answer period. To follow the conversation or submit a question, include the hashtag, “#agischat” in a tweet. All agriculture-related organizations, industry leaders, friends and supporters are invited to join the discussion. Participating Twitter handles include @UNL_IANR and @agisamerica.
USDA Officially Repeals COOL Requirements for Beef & Pork
The USDA's Agricultural Marketing Service is issuing a final rule that amends the Country of Origin Labeling regulations by removing the requirements for muscle cuts of beef and pork, and ground beef and pork.
The Consolidated Appropriations Act of 2016 repealed these COOL requirements and immediately after the legislation was passed, USDA stopped enforcing the COOL requirements for beef and pork effective Dec. 18, 2015.
COOL is a labeling law that for marketing purposes requires retailers to provide their customers with information regarding the country of origin of regulated commodities. AMS is responsible for the administration and enforcement of COOL regulations.
Under this final rule, beef and pork muscle cuts and ground beef and pork are removed from the list of covered commodities subject to the COOL regulation. Retailers are no longer required to provide this information for beef and pork at the point of sale. COOL regulatory requirements for chicken, lamb, goat, farm-raised and wild caught fish and shellfish, perishable agricultural commodities, peanuts, pecans, macadamia nuts, and ginseng are still in effect.
All imported and domestic meat products continue to be subject to rigorous inspections by USDA to ensure food safety.
The final rule will be published in the Federal Register and is effective upon publication.
Pig Farmers from Across the U.S. Get Updates on Changing Antibiotic Guidance
Nearly 300 National Pork Industry Forum delegates, pig farmers and U.S. pork industry staff assembled in Indianapolis today to learn more about the upcoming regulatory changes to on-farm antibiotic use. The producer update session – an annual activity at Forum – included case studies and tips on how farmers can be ready when new Federal Drug Administration regulations take effect Jan. 1, 2017.
“Producers have been preparing the past 18 months for the very real and substantive changes that are occurring on pig farms across the country in regard to responsible antibiotic use. Producers are very aware of the challenge of antibiotic resistance and are working hard to preserve the effectiveness of antibiotics, both on the farm and in human medicine,” said Derrick Sleezer, National Pork Board president and a pig farmer from Cherokee, Iowa. “Our industry is committed to continuous improvement, and these sessions today ensure that we all have the latest information to apply to our operations when we return home.”
The new FDA guidelines define how medically important feed-grade antibiotics will be used to treat, control and prevent disease, as well as remove medically important antibiotic use for growth promotion. Also, the new regulations define the importance of a veterinarian-client-patient relationship (VCPR), establish a veterinary feed directive (VFD) requirement for many more antibiotics and establish a higher standard for on-farm record-keeping.
Moderated by National Pork Producer Council Chief Veterinarian Dr. Liz Wagstrom, update session presenters covered all aspects of on-farm antibiotic use, including:
- Dr. Lonnie King, Ohio State University, focused broadly on the subject of antibiotic resistance.
- Dr. Tom Burkgren, American Association of Swine Veterinarians, detailed the importance of establishing a VCPR and how the new requirements for feed directives will work.
- Randy Spronk of Spronk Brothers Farms, Minnesota, shared real-life challenges and opportunities facing pig farmers as they improve practices to reduce the need for antibiotics.“The bottom-line message to pork producers is act now – do not wait until January of next year to make these important changes in how you raise pigs,” Spronk said. “This is a defining moment for our industry, and change will not come without some sacrifice. But preserving the effectiveness of medically important antibiotics is critical in our commitment to ensure a safe food supply and to build consumer trust.”As part of the education session, the National Pork Board introduced its new Pork Industry Guide to Responsible Antibiotic Use. The 12-page guide expands on the industry’s Pork Quality Assurance® Plus (PQA Plus®) program, supports the industry’s stewardship plan and defines a six-point checklist for success that will help pork producers best prepare for the regulatory changes. -more-
The PQA Plus supplement is just one element of a nearly $2 million investment that the Pork Checkoff is making in 2016 to support antibiotic awareness and education among the industry’s 60,000 pork producers. Other activities include facilitating five distinct research projects, developing producer education materials and advertising in national farm trade publications. Also, the Pork Checkoff will host special events to ensure that packers, processors, foodservice and retail customers fully understand how seriously the U.S. pork industry is addressing this production change.
Survey: Producers Aware and Many Ready for Antibiotic Use Changes
In a recent survey, 82 percent of pig farmers say they are aware of the upcoming regulatory changes regarding on-farm antibiotic use. And of those surveyed, on average, 71 percent have a defined record-keeping protocol in place that they follow. That number grows to 83 percent among the country’s largest pork operations, or those that market more than 80,000 hogs per year.
“This level of awareness underscores the real and substantive changes occurring today on how pig farmers use antibiotics on the farm,” said National Pork Board President Derrick Sleezer, Cherokee, Iowa. “The high level of awareness of the changing regulation is encouraging, but not surprising. The U.S. pork industry is working hard to educate its pork producers about the upcoming deadline.”
Sleezer added that the Pork Checkoff has developed and is sharing many new materials with pig farmers to make certain packers, processors and foodservice and retail customers understand how seriously the pork Industry is taking the impending regulation changes.
In the past 18 months, the National Pork Board has taken steps to educate pork producers on the details of Food and Drug Administration guidance 209 and 213. The rules define how medically important feed-grade antibiotics should be used to treat, control and prevent disease, as well as the importance of farmers establishing a veterinarian-client-patient relationship. The guidance also mandates that medically important antibiotics can no longer be used to promote animal growth and sets a higher standard for on-farm record keeping. The regulatory changes take effect Jan. 1, 2017.
“Consumers can have confidence that the U.S. pork industry is doing the right thing in regard to antibiotic stewardship,” Sleezer said. “Understanding the role responsible antibiotic use plays on a farm is one of our top priorities and why we introduced the U.S. pork industry antibiotic stewardship plan in June.”
These results, among others designed to take the pulse of U.S. pork production, are from the annual survey of pork producers conducted by the National Pork Board late last year. In other findings, for the sixth consecutive year, pork producer support for the Pork Checkoff increased and is now at a record 90 percent – up 1 percent from last year. Meanwhile, opposition to the Checkoff declined one percent to a record low of just 4 percent. These results are the most positive in survey history.
Other highlights include:
- Right direction/wrong track: 70 percent of producers feel the industry is heading “in the right direction,” dropping from a 2015 score of 83 percent. Of those surveyed, 23 percent feel the industry is “on the wrong track.” This decline in optimism is largely due to changing market dynamics outside of a producer’s individual control, according to those surveyed.
- Managing hog health and disease: This continues to be the No. 1 challenge facing pig farmers. The Pork Checkoff’s investment in the Swine Health Information Center and plans to understand foreign animal disease risk and create readiness plans directly address this concern.
- Single most important request: Producers’ No. 1 request of the Checkoff is to educate consumers about the safety of pork. This was followed by advertising and promoting pork and opening new markets.
“Marketing is always top of mind for producers, and it starts with building trust by educating consumers about pork’s safety and nutritional value,” Sleezer said. “Pig farmers want to see their investment at work to build U.S. consumer demand and take tangible steps to expand international trade.” In response to specific questions about the National Pork Board’s new strategic plan that was implemented early in 2015, the awareness and importance of each goal increased. On a 10-point scale:
- Build Consumer Trust rated a mean score of 9.04, which was the highest result and up from 8.85 in the previous survey. Nearly three out of four producers (73 percent) surveyed ranked this as the No. 1 priority.
- Grow Consumer Demand rated a mean score of 8.63, up from 8.39 a year ago.
- Drive Sustainable Production rated a mean score of 7.96, up from 7.86 a year ago. “This tells the Board that the development of our strategic plan is aligned with the concerns, interests and thoughts of producers,” Sleezer said. “We have 17 defined objectives that directly support each of the three goals.”
The national survey, based on phone interviews with 550 producers, was conducted in November.
Cost To Developing Nations Of Opposing GMOs Is $1.5 Trillion, Study Indicates
A recently-released Information Technology and Innovation Foundation (ITIF) study estimates that current activism against genetically modified organisms (GMOs) has created significant obstacles for its adoption in the world’s poorest nations and will cost them $1.5 trillion by 2050. These campaigns have also created significant challenges for the development and adoption of genetically modified crops in general, according to the study.
“There are a lot of misperceptions about GMO technology around the globe that are leading to barriers to adoption and trade for biotechnology,” said Dean Taylor, an Iowa farmer who leads the U.S. Grains Council’s Biotechnology Advisory Team.
“The Council is committed to working with policy makers and policy influencers to remove these barriers and develop policies that are science-based, risk-appropriate and consistent. These strong policy guidelines make it easier to originate grain from more sources, ensuring a reliable supply for feed and food uses, lower costs and enhanced diets.”
Smallholder farmers in developing countries are among the biggest beneficiaries of agricultural biotechnology, which continues to offer yield and environmental benefits around the globe. However, the African continent in particular has lagged in GM adoption, according to the study, with just three of 54 countries in Africa currently growing any biotech-improved crops.
The ITIF report said that the two greatest barriers in these countries were regulations limiting GMO use and export limits, which have largely been driven by the Europe Union. The EU purchases six times as many goods from Africa’s farms as the United States does, which means that African farmers are more likely to adjust their production to fit EU regulations.
While the EU has approved some varieties of GM soybeans, corn and corn co-products for feed and food uses, many African farmers and their government officials assume the EU is 100 percent non-GM because of differences between the European media’s reporting on biotechnology and the reality of biotech use within the EU’s feed and livestock industries.
“In the past, the Council worked with select Sub-Saharan African countries to advance the acceptance of biotechnology,” Taylor said. “Today, we are once again examining the region as Sub-Saharan Africa is experiencing a severe drought and needs to import corn and/or corn co-products.”
For example, in the midst of the worst drought in two decades and reports that only eight weeks of corn remain in the country, Zimbabwe’s Grain Millers Association asked for permission to import GMO corn in December. Despite the country’s needs, its Agricultural Minister Joseph Made told lawmakers in February that all corn imported as food aid will be inspected to ensure it does not contain GMOs.
Since this announcement, local crop researchers and scientists have been pushing for a policy change to ensure the country’s food security. Zimbabwe consumes around 1.7 million metric tons (66.9 million bushels) of corn annually and will likely need to import corn before the harvest in March 2016.
American Farm Bureau Federation Joins Initiative To Give Farmers Control of Data They Collect
The American Farm Bureau Federation and a host of other agricultural stakeholders today revealed a ground-breaking data repository that supporters say will give farmers ultimate control over the ever-increasing business data gathered and transmitted by high-tech farm machinery.
Tractors, tilling equipment, planters, sprayers, harvesters and agricultural drones are increasingly connected to the Internet. Farmers don’t always have the ability to precisely control where that data goes, nor transfer it from one data processor to another. The newly formed Agricultural Data Coalition (ADC) will empower farmers to better control, manage and maximize the value of the data they collect every day in the fields.
“Farmers must retain ownership and control of the private agricultural data that originates from the work they do in their fields,” AFBF President Zippy Duvall said. “Harnessing that proprietary information for field-level efficiency and effectiveness is the key that will unlock more profitability and the greater adoption of precision agriculture. That’s good for business and the environment, too.”
The ADC is the result of years of planning and coordination by AFBF, Auburn University, Ohio State University, the University of Nebraska-Lincoln, AGCO, CNH Industrial, Crop IMS, Raven Industries, Mississippi State University and Topcon Positioning Systems, Inc.
The goal of the ADC, a non-profit venture, is to build a national online repository where farmers can securely store and control the information collected by their tractors, harvesters, aerial drones and other devices. Over time, that data can then be scrubbed, synced and transmitted in an efficient and uniform way to third parties — whether researchers, crop insurance agents, government officials, farm managers, input providers or any trusted advisor the farmer chooses.
“The key is that farmers are in complete control, and they decide who is allowed access to their data,” ADC Interim Executive Director Matt Bechdol said. “That’s what sets ADC apart. This is not about profit for others; it’s about streamlining data management, establishing clear lines of control, and helping growers utilize their data in ways that ultimately benefit them.”
Farmers interested in learning more about data collection, and organizations interested in joining ADC’s efforts, should visit www.AgDataCoalition.org.
Democratic Senators Introduce Bill to Require Labeling of Genetically Modified Foods
Manufacturers would be required to label genetically modified foods on their packages under a bill introduced by four Democratic senators on Wednesday. The move is a sign of the difficulties Senate Agriculture Committee Chairman Pat Roberts, R-Kan., will face in getting 60 votes for his bill to ban state labeling of genetically modified foods and to establish federal voluntary labeling.
The new bill was introduced by Democratic Sens. Jeff Merkley of Oregon, Patrick Leahy of Vermont, Jon Tester of Montana and Diane Feinstein of California.
In a joint statement, the senators said their legislation "presents an alternative to a Senate Agriculture Committee bill that would hide ingredient information from consumers by overturning state GMO labeling laws."
The Senate Agriculture Committee passed the bill written by Roberts on Tuesday. The vote was 14-6, and three Democratic senators -- Amy Klobuchar of Minnesota, Joe Donnelly of Indiana and Heidi Heitkamp of North Dakota -- voted with all the committee Republicans to advance.
Specifically, the Biotechnology Food Labeling Uniformity Act would amend the Food Drug and Cosmetic Act to require manufacturers to disclose the presence of GM ingredients on the Nutrition Fact Panel in one of four ways:
1. Manufacturers could use a parenthesis following an ingredient to indicate that the ingredient is "genetically engineered."
2. Manufacturers could identify GM ingredients with an asterisk and provide an explanation at the bottom of the ingredients list.
3. Manufacturers could apply a catch-all statement at the end of the ingredient list stating the product was "produced with genetic engineering."
4. The FDA would have the authority to develop a symbol, in consultation with food manufacturers that would clearly disclose the presence of GM ingredients on packaging.
None of these options would require front-panel disclosures or "warning" statements intending to disparage GM ingredients, the senators noted.
Farm Leaders Discuss Still-Needed Cuba Reforms at Classic
At a press conference held Wednesday in association with the 2016 Commodity Classic, farm leaders representing producers of crops including corn and sorghum called for removal of trade barriers with Cuba so U.S. producers can capture sales there and in the region.
The event, sponsored by the U.S. Agriculture Coalition for Cuba, was a pitch at one of the nation's largest farm shows to “allow agriculture to be the engine that helps us down this road toward reconciliation,” as Coalition Co-Chair Paul Johnson said in his opening remarks.
U.S. Grains Council President and CEO Tom Sleight spoke at the event, offering figures to show how drastically U.S. grain farmers have been affected by remaining Cuba trade restrictions.
In marketing year 2015, just $4 million of $160 million worth of corn sold to Cuba was sourced from the United States. An estimated $240 million of additional business was lost by U.S. farmers with Cuba’s neighbors because once sales to the island nation are on the books, South American competitors can find efficiencies delivering to others in the region.
Sleight said that trade has the opportunity to bridge political and financial divides between Cuba and the United States, with this time of challenging farm prices offering opportunities to redevelop relationships with Cuban leaders and meet this competition.
“I’ve seen it time and again - trade creates relationships between two countries. Trade fills that basic need,” he said. “It’s time for us to address this.”
USGC activities in Cuba, which are entirely funded by state checkoff organizations, would work to both promote near-term sales and pave the way for long-term demand growth. Sleight said the strongest market development needs in Cuba right now are education on grain handling and storage and production technology in livestock.
Wayne Cleveland, executive director of the Texas Sorghum Producers, also spoke at the conference, outlining work his industry has done to help Cubans learn to feed sorghum.
He said education like what the Grains Council provides, starting with how to create compound feed efficiently, is a first step in building feed and livestock markets that can support the nutritional needs of the Cuban people and meet demand from consumers who come to the country as tourists.
“It’s time we move on, do away with trade barriers and open up the market," he said.
New NAWG Officer Team Installed at Commodity Classic
Gordon Stoner, a wheat grower from Montana, was elected to serve as the new President of the National Association of Wheat Growers (NAWG) at the Association’s Board of Directors meeting at Commodity Classic.
“I’m looking forward to the year ahead and the challenges facing the American wheat farmer” says Stoner. “In collaboration with our industry partners, NAWG is developing the National Wheat Action Plan which seeks to chart the path forward in returning profitability to wheat and reversing the long term decline in U.S. wheat acres. I see these challenges as opportunities to make the industry stronger, and am excited to meet them head on.”
Gordon manages a fourth-generation farm near Outlook, Mont., in the northeast part of the state. Stoner Farms is a 100 percent no-till, continuous cropping operation raising durum, peas, corn, oil seeds and lentils, along with a commercial cow/calf operation. Gordon’s farm celebrated its centennial in 2009.
Prior to returning to the family farm in 1980, Gordon received a bachelor’s degree in business administration and economics, obtained his CPA and continued working winters at a local accounting firm though 2002. Gordon and his high-school sweetheart, Bonnie, have four adult children pursuing careers in the Chicago area and on the East Coast.
Additionally, NAWG gained another new officer, Ben Scholz. Ben is a wheat grower from Lavon, Texas. Upon graduation from college in 1969, he began a career in farming/ranching in partnership with his father that continues today with his wife, Beth, as partner in B Scholz Farms. In 1999, Ben diversified his interests by becoming president/CEO of Producers Compress Inc., a business offering warehouse space for lease and cotton storage. Ben’s farming operation consists of wheat, grain sorghum, corn, cotton, soybeans and hay in various rotations year to year.
Ben has been named Farmer of the Year by the Collin County Soil and Water Conservation District; Alumni Ambassador, the highest award an academic department can bestow upon a graduate, awarded by the Agricultural Department of Texas A&M-Commerce University; and won the Brother of the Century award from the Alpha Gamma Rho fraternity.
“I’m excited for this new opportunity to serve my fellow farmers and our national association,” said Scholz. “I look forward to getting to know our growers better, so that I can be a stronger voice for our industry. I will strive to assist the officer team to strengthen our association on the local, state and national levels.”
Other NAWG officers elected and installed at the meeting include:
• David Schemm, Kans., vice president
• Jimmie Musick, Okla., treasurer
• Brett Blankenship, Wash., immediate past president
Members of NAWG’s Executive Committee, known as officers, commit to serve five years when they first run for the role of secretary. The NAWG Nominating Committee and NAWG board reaffirm their selection each year as they move into new roles on the officer team.
Applications for America’s Pig Farmer of the Year Due March 13
The deadline to apply to be the next America’s Pig Farmer of the YearSM is quickly approaching. Applications are being accepted through March 13 at americaspigfarmer.com. The award recognizes a U.S. pork producer who demonstrates excellence in raising pigs using the We CareSM ethical principles and in sharing his or her story with the public.
On March 7 at 6 p.m. CST, the 2015 America’s Pig Farmer of the Year, Keith Schoettmer from Tipton, Indiana, will hold a conference call for those interested in applying this year. During the call, Schoettmer will answer questions about the application process and his experience with the award. The information for the call is below and can also be found at americaspigfarmer.com.
“It wasn’t a light decision for me to apply last year. My family and I decided to apply because we felt like it was a great way to give back to an industry that has taken good care of my employees and family over the years,” Schoettmer said. “I encourage all pork producers to apply for this award.”
Any U.S. pig farmer, who is 30 years of age or older on Jan. 1, 2016, can apply through March 13. Anyone that knows of a deserving pig farmer can also nominate a producer for this award. Instructions and frequently asked questions can be found at americaspigfarmer.com or via a link on pork.org.
Third-party judges, along with the American public, will help determine the final award recipient, which will be announced during National Pork Month in October. In early September, videos of the award finalists will be displayed at americaspigfarmer.com and on the Pork Checkoff’s social media outlets for the public to vote.
America’s Pig Farmer of the Year Conference Call Information
(877) 668-4490 Call-in toll-free number. Access code: 807 147 409
USDA Dairy Products January 2016 Production Highlights
Total cheese output (excluding cottage cheese) was 1.00 billion pounds, 2.6 percent above January 2015 but 2.6 percent below December 2015. Italian type cheese production totaled 435 million pounds, 2.2 percent above January 2015 but 5.4 percent below December 2015. American type cheese production totaled 400 million pounds, 0.9 percent above January 2015 and 0.3 percent above December 2015. Butter production was 176 million pounds, 2.1 percent below January 2015 but
1.6 percent above December 2015.
Dry milk powders (comparisons with January 2015)
Nonfat dry milk, human - 136 million pounds, down 17.4 percent.
Skim milk powders - 51.2 million pounds, up 17.3 percent.
Whey products (comparisons with January 2015)
Dry whey, total - 83.0 million pounds, up 9.8 percent.
Lactose, human and animal - 85.1 million pounds, down 5.5 percent.
Whey protein concentrate, total - 38.8 million pounds, down 17.7 percent.
Frozen products (comparisons with January 2015)
Ice cream, regular (hard) - 57.0 million gallons, up 2.7 percent.
Ice cream, lowfat (total) - 25.8 million gallons, down 10.4 percent.
Sherbet (hard) - 2.43 million gallons, down 19.0 percent.
Frozen yogurt (total) - 4.13 million gallons, down 5.0 percent.
NMPF President Tells Senate Panel about Possibilities, Pitfalls with Past Free Trade Agreements
Even after free trade agreements are negotiated by the U.S. government, the value of the pacts depends greatly on the ability of the United States to make other countries live up to their commitments when the agreements are enforced, according to the National Milk Producers Federation, whose president testified today at a Senate hearing on the lessons from how past trade agreements have been implemented.
Jim Mulhern, president and CEO of NMPF, told members of the Senate Finance committee Thursday that trade has become critically important to America’s dairy sector, thanks to the Uruguay Round and numerous new U.S. free trade agreements since 1994. Even as dairy exports have grown, assisted in sizable part by the arduous, careful negotiations of the treaties, in some cases we have “to work almost as hard to ensure that the market access terms of the agreements are not subsequently undermined,” Mulhern said.
Mulhern cited as an example of this dynamic the ongoing challenge to maintain access to the Canadian dairy market through the North American Free Trade Agreement and the Uruguay Round. Canada continues to erect impediments to block dairy imports from the U.S., he said. One of its latest targets “is U.S. exports of ultra-filtered milk. Canada has been considering expanding its restrictions on the use of certain dairy inputs in cheese-making to hinder imports. If Canada is allowed to continue with this pattern of eroding existing U.S. dairy access, it is difficult to see how new trade commitments with them will benefit our dairy industry,” Mulhern said.
Similar post-FTA issues arose with South Korea, but prompt and proactive U.S. government actions were successful in “ensuring that Korean officials worked with our government to resolve most of them,” he said.
Mulhern said that the best window of opportunity for influencing how countries will implement their FTA obligations “is during the period prior to congressional approval of an agreement. Action during this window not only ensures that Congress has a clear understanding of how the agreement is intended to work in practice, but it utilizes the strongest point of leverage the U.S. possesses: whether or not we will decide to put in place a strengthening of our trade ties with the FTA partner.”
“This becomes especially important now that the Trans-Pacific Partnership negotiations have concluded, and consideration in Congress will at some point begin. It is also important given that our attention is now turning to intensifying the Transatlantic Trade and Investment Partnership negotiations with the European Union.” He noted that a concrete approach to addressing the serious regulatory and technical barriers to trade with Europe has yet to develop in the TTIP talks.
“At this stage, given our past experiences, we do not believe TTIP is currently on the right track” for a successful and truly market-opening conclusion, Mulhern said. In addition to the dairy regulatory challenges, another very troubling issue in those negotiations is the EU’s geographical indications strategy, where the EU is seeking to restrict the use of common food names just for European food producers, both in the U.S. and in other nations to which the EU exports food.
“It is essential that we protect our trade rights from the onslaught of EU efforts to bully our trading partners into blocking imports of products from countries that allow the use of product names the EU wishes to reserve for itself through overly broad GI restrictions. This market eroding pattern began in Korea and soon spread to our Latin American FTA partners before impacting others around the world as well,” he said.
The geographical indications text in the pending TransPacific Partnership “was conceived as a direct response to trade restrictions that were threatening to crop up in our FTA markets,” Mulhern said. “But our experience tells us that we will have to work hard not only to enforce the letter of that agreement, but also to ensure that its intention to help promote robust competition is not undermined as a result of ongoing pressure from the EU. With the right focus and strategic efforts, positive results in this area are achievable, as this week's good news about a breakthrough on GI issues with Honduras helps to demonstrate.”
DEKALB® DISEASE SHIELD™ TRAITS OFFER INDUSTRY-LEADING PROTECTION AGAINST MAJOR CORN DISEASES
Every year corn farmers face the risk of costly plant diseases that can significantly reduce their yields and profitability. To help combat this issue DEKALB® brand is introducing an advanced new lineup – using predictive analytics and state of the art technology like genome wide selection – called DEKALB® Disease Shield™. These products will be available for the 2017 growing season and will be the latest solution on the market to help farmers maximize yield through industry-leading protection against major corn diseases.
Rebecca Waller, DEKALB brand manager, said DEKALB Disease Shield features an exclusive combination of genetics with enhanced disease protection developed by the brand’s breeding program. These new products, she said, provide a broad spectrum of protection against the most common, yield-robbing corn diseases today, including anthracnose stalk rot, gray leaf spot, Goss’s wilt, northern corn leaf blight and, in limited geographies, southern rust.
“Farmers typically experience these diseases every one or two seasons out of every five, but in any given season, they never know whether their fields will be at risk,” Waller noted. “With DEKALB Disease Shield, farmers can grow more confidently, maximizing the potential of their top-yielding DEKALB products on every acre, from field to field.”
Waller said these products also promote enhanced plant health, better standability and improved harvestability. “DEKALB Disease Shield products have shown strong performance in trials and demonstrated an advantage over competitor products,” she said. "On-farm trials are planned for the 2016 season to give farmers the opportunity to experience the comprehensive disease protection firsthand and to provide feedback to help us make future commercialization decisions.”
The DEKALB Disease Shield lineup will be available for purchase this fall for planting in 2017.
Leading Decision Agriculture Nitrogen Management Service Goes Mobile
DuPont Pioneer today launched the Encirca℠ Yield Nitrogen app, a new mobile application that enables additional grower-friendly features as part of the leading Encirca℠ Yield Nitrogen Management Service. The new app allows growers enrolled in the service to view and track the status of their fields’ nitrogen levels anywhere they have a cellular or wireless signal. Learn More
“Encirca℠ services continues to offer new tools and services to increase grower productivity and sustainability,” said Eric Boeck, DuPont Pioneer Marketing director, Encirca℠ services. “This mobile app is just the most recent example of that innovation and a clear reason the demand for Encirca℠ services continues to rise.”
With the new mobile app, growers can match nitrogen application rates to variations in productivity that naturally exist within fields, adapt to the impact of ever-changing weather conditions, and be confident in their nitrogen investment. The application provides daily field-by-field weather updates that include crop growth stage, precipitation, temperature and growing degree units. It also gives growers a tool to take geo-location-tagged crop notes that they may reference later or share with their Encirca℠ certified services agent and anyone else they choose.
“Growers can monitor the impact of every weather event, record crop observations, and even have the app follow them to display nitrogen status as they move through the various Decision Zones in their fields,” said Travis Kriegshauser, DuPont Pioneer Agronomy Services manager, Encirca℠ services.
In more than 80 Pioneer on-farm comparison trials, growers who implemented the Encirca℠ Yield Nitrogen Management Service realized a more profitable result than their traditional practices 77 percent of the time. The results from winning trials averaged 6 bushels per acre in increased yield while applying 5 pounds less of nitrogen, or about a $30 per acre return-on-investment*.
As a result of the unseasonably warm and wet winter, many growers who applied fall anhydrous are interested in knowing how much nitrogen they may still need to hit their yield targets for the 2016 growing season. “Enrolling fields in the Encirca℠ Yield Nitrogen Management Service, working with a local Encirca℠ certified services agent and utilizing the Encirca℠ Yield Nitrogen app can provide Decision Zone based rate and timing recommendations to help answer that important question,” said Kriegshauser.
The Encirca℠ Yield Nitrogen app is driven by the strong agronomic expertise, proprietary soil analysis and classifications, advanced crop modeling and exclusive hyper-local weather network of DuPont Pioneer and Encirca℠ services.
New Program Assesses Performance of Fertilizer Management Tools
The Environmental Defense Fund (EDF) today launched NutrientStar, a new independent, science-based program that reviews the performance of commercially available nutrient management tools.
Nitrogen fertilizer is one of the most important inputs in agriculture, but up to 50 percent of nutrients applied are not absorbed by crops, leading to air and water pollution and wasted money for farmers, who spend approximately half of their input costs (seed, nutrients, and chemicals) on fertilizer.
Major food companies are launching sustainable sourcing programs to reduce fertilizer runoff, improve air and water quality, and reduce the risk of supply chain disruptions. Precision agriculture tools, in particular those that improve nutrient management, can help farmers meet this demand and reduce fertilizer losses, but little data is publicly available on how these tools work in the field.
“NutrientStar will showcase how well products work in real-world farming scenarios,” said Karen Chapman, agricultural sustainability project manager at EDF and administrator of the NutrientStar program. “NutrientStar’s independent science review panel conducts rigorous assessments of all tools on the market, particularly looking at on-farm field trials, to determine how a tool works in croplands, in different regions, and on different soil types.”
Fertilizer management tools reviewed through NutrientStar include enhanced efficiency fertilizer compounds, such as nitrogen stabilizers, and decision support tools, such as optical sensor technologies or models used to aid nutrient applications in the field. Tools and products already assessed or soon to be assessed include:
- Adapt-N (made by Agronomic Technology Corp.), an online software program that uses a linked crop model and soil model to estimate nitrogen rates for individual fields or areas within fields.
- Fertilizer management products including N-Serve® (made by Dow AgroSciences); AGROTAIN®, AGROTAIN PLUS®, and SUPER U® (made by Koch Agronomic Services).
- Reviews being made public this spring include: Nutrisphere N (made by Verdesian); Instinct II, ESN (made by Agrium); DCD; Thiosulfate; and, Slow Release Foliar N products made from methylene urea.
Assessments later in 2016 will focus on Fieldview Pro Nitrogen Advisor (made by Climate Corporation) and Encirca (made by DuPont Pioneer).
“NutrientStar is the first-ever review program to provide famers, their advisors, and agricultural supply chain companies with reliable data on the performance of these popular tools,” added John McGuire, EDF advisor and precision agriculture expert. “Farmers need certainty that the tools they purchase will work as advertised.”
An independent review panel, composed of leading soil and agronomy scientists from across the country, establishes the criteria for NutrientStar review. The panel assesses tools based upon available data demonstrating their ability to improve nutrient use efficiency, defined as unit of yield over unit of applied nutrient, in the field. NutrientStar review will also show yield impacts from use of a tool and summarize key characteristics important to farmers and advisors such as cost/benefit, ease of use, and required data inputs.
The NutrientStar program also establishes guidelines for field testing nutrient-use efficiency tools, setting standards and providing a geographical framework that can substantially advance the research agenda in ways that will benefit the entire agriculture industry.
NutrientStar assessments provide numerous other benefits, including:
- Farmers gain confidence by knowing that the nutrient management tools they purchase will work as advertised to reduce fertilizer losses, improve soil health, lower input costs, and maintain yields. Farmers can also showcase their stewardship to food companies and suppliers by using the NutrientStar review to inform their decisions.
- Ag retailers and crop advisors earn a competitive advantage by offering field-tested and geographically relevant products to their grower customers.
- Food companies improve transparency with customers, more easily navigate the fertilizer management world, and can now directly support farmers in implementing on-farm conservation practices.
- Agribusinesses ensure they are offering the most competitive, farm-tested products to growers, thereby earning customer loyalty.
“As food companies’ demand for sustainably produced ingredients continues to skyrocket, they’ll need to support farmers and the entire supply chain in implementing on-farm conservation practices,” added Chapman. “NutrientStar will help food companies navigate the fertilizer management world, and will spark further innovation, research and development for better nutrient management tools.”
“NutrientStar also enables farmers to more easily execute the 4Rs of nutrient stewardship, which include applying fertilizer at the right source, the right rate, the right time, and the right place,” noted McGuire. “NutrientStar complements the 4Rs by informing farmers on tools that will most effectively help implement these important practices.”
For more information on NutrientStar, including scientific assessment criteria, visit www.nutrientstar.org.
MICHELIN AG Launches New CerexBib Tire for Large Harvesting Equipment
Today at the 2016 Commodity Classic, MICHELIN® Agricultural Tires introduced the new MICHELIN® VF520/85R42 CFO 177A8 CerexBib™ tire. Michelin’s Very High Flexion (VF) tires include a class of agricultural tires designed to handle bigger and heavier farm equipment that has a greater ability to flex under increased loads than standard radials. Designed expressly for large combines and grain carts, the new CerexBib is one of the first true VF tires for today’s heaviest harvesting equipment.
CerexBib, now available at Michelin Ag tire dealers in the Unites States and Canada, offers a more comfortable ride because it:
• functions at a lower pressure,
• provides improved traction in all conditions because of the larger tread footprint,
• delivers excellent service life (even at low pressure) because of a casing with reinforced sidewalls and
• is better for on-road travel because it enables farmers to use a narrower tire to carry the load.
“This new CerexBib offers a massive load capacity, up to21,960 pounds, and has a giant footprint of approximately 486 square inches,” said James Crouch, Michelin farm segment marketing manager. “It is built with Michelin Ultraflex Technology, which enables tires to operate at up to 40 percent lower air pressure than standard radial tires. This results in a considerable reduction of ruts and compaction, and higher yield potential.”
The new MICHELIN® BibLoad™ Hard Surface backhoe tire for use on asphalt and other hard surfaces, introduced last season, will also be showcased in Booth #2408 at the show which is scheduled for March 3-6. This tire features a non-directional tread design to provide superior tread life when used in hard surface applications.
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
Friday, March 4, 2016
Thursday, March 3, 2016
Wednesday March 2 Ag News
NEBRASKA EXTENSION OFFERS MID-PLAINS BEEF EDUCATIONAL SERIES SESSION
Nebraska Extension's Mid-Plains Beef Educational Series will conduct a special session March 29 on beef quality assurance practices for spring calving cows and calves, and using reproductive technologies in cow herds.
The session will be from 10:30 a.m. to 3:30 p.m. at the University of Nebraska-Lincoln's Agricultural Research and Development Center, 1071 County Road G near Ithaca.
The session will draw on the expertise of Rob Eirich, Nebraska Extension educator of beef quality assurance; Richard Randle, Nebraska Extension beef veterinarian and doctor of veterinary medicine; and Dave Hardin, professor in the UNL School of Veterinary Medicine and Biomedical Sciences and doctor of veterinary medicine.
The program is designed for producers, veterinarians or others involved in the beef industry. The special session will deal with animal health stewardship, the veterinary feed directive, positioning cow herds to use reproductive technologies, and a demonstration of low-stress cattle-handing facilities and beef quality assurance practices for handling cattle. Participants will become beef quality assurance certified for two years.
Registration is requested by March 21. Pre-registration is $25 by March 21, or $40 on March 29. The registration fee covers certification, educational materials and lunch.
To register or obtain more information, contact Steve Tonn, extension educator in Washington County, at 402-426-9455 or stonn2@unl.edu.
50th Annual TRIUMPH OF AG EXPO – Farm and Ranch Machinery Show Announces Agri-Award Winner
Over 1,000 booths with over 200,000 square feet of Exhibit space of the latest technology will be showcased at the 50th Annual TRIUMPH OF AGRICULTURE EXPOSITION Farm & Ranch Machinery Show, Wednesday, March 9th and Thursday, March 10th at the CenturyLink Center Omaha.
Regarded as the Area's Largest Indoor Short-line Farm Machinery Show, the EXPO has become a tradition for area farmers, ranchers, stockmen, and their families to come to the show and ask questions directly to the leading farm manufacturers and suppliers for ways to improve their farm operation right before spring fieldwork begins all at one time and under one roof. The Seminar schedule is listed below and provides a chance to learn more about some of the new products and services available at the Show. The Farm Show is open Wed - from 9 AM to 4 PM and Thursday 9 AM to 3 PM.
Bob Mancuso, Jr., the Show’s Director, says, “Farming today is more challenging and Midwest farmers are interested in keeping up with the changes and ways to increase their profits and yields per acre while reducing their costs.” The Triumph of Ag Expo offers a one stop opportunity to see and compare hundreds of hands - on demonstrations from the newest farm machinery to the day-to-day supplies and product information that's available for today’s farming decisions. The TRIUMPH OF AG EXPO is proud that they have been able to keep the Admission to the Show FREE for the past 50 years. Advance Free admission tickets can be obtained from County extension agents, farm machinery and equipment dealers, or at the CenturyLink Center Omaha’s door. There are over 4,500 parking spaces on site right at the convention center entrance.
At no other time this spring will area farmers be able to see all these agricultural suppliers indoors at one time and under one roof than on these two days at the Triumph of Ag Expo. Bob Mancuso, Jr., the Show Director, said “Many first-time visitors cannot believe the wide selection of products on display and the tremendous opportunity for savings at the Show”. The Triumph of Ag Expo has something for every kind of farm operation, including tillage equipment, planters, monitor and control systems, soil testing equipment, mowers, cattle chutes, augers, fertilizers, various seed hybrids, feeders, tanks and pumps, hay moving and handling equipment, plows, combines, computers and software, tractors and many more agricultural products and services for today's farmers and ranchers.
Bob Mancuso, Jr., said, “This year there are many show features. There will be antique tractors and equipment from the Camp Creek Threshers, Elkhorn Valley Antique Power Association, and the Keg Creek Antique Machinery Club.
TRIUMPH OF AGRICULTURE ANNUAL AGRI- AWARD
The Triumph of Agriculture Exposition established the Annual “Agri-Award” as part of Nebraska’s Centennial Celebration, in 1976 to recognize outstanding organizations and individuals that have contributed to the Agricultural Development in the Midwestern area. This year’s winner is Greg Ibach, Director of the Nebraska Department of Agriculture. He will receive the award at the Opening Day Luncheon on Wednesday, March 9th at 12 Noon at the CenturyLink Center Omaha.
THE TRIUMPH OF AGRICULTURE EXPOSITION Farm & Ranch Machinery Show is produced by Mid-America Expositions, Inc., sponsored by the Mid-America Farm & Ranch Machinery Council and is a member of the North American Farm Show Council consisting of the top 25 shows in the nation.
Nebraska Legislature Ag Committee Revives ‘Right to Farm’
(AP) A proposal that would restrict the Nebraska Legislature’s power to regulate agriculture has advanced out of a committee one day after that committee’s members rejected it.
The committee unexpectedly revived the measure on Wednesday and voted 5-2 to send it to the full Legislature for debate.
The constitutional amendment would prevent lawmakers from passing new regulations on farming and ranching technology, if voters approve it in the November election. The version that advanced Wednesday would allow state and local governments to continue regulating water.
Sen. Jerry Johnson, the committee chairman, says he agreed to schedule another vote after he received calls from state and local water regulators who supported the amended version of the proposal.
Critics say the amendment still fails to define agricultural technology.
Iowa Learning Farms March Webinar to Discuss Economic Value of Cover Crops
The next monthly Iowa Learning Farms webinar will be Wednesday, March 16 at 1 p.m. This month’s guest speaker is Liz Juchems, events coordinator with Iowa Learning Farms. Juchems will discuss a recent case study conducted by the Iowa Cover Crop Working Group examining the economic value of cover crops.
This study is unique because of its focus on the economic value of retaining soil and soil nutrients. Scenarios in the Iowa Nutrient Reduction Strategy call for cover crops on up to 60 percent of row crop acres in Iowa (about 12 million acres). As farmers seek more information about cover crops, this research study provides one method to quantify the economic value of cover crops and their ability to prevent soil erosion.
Juchems works closely with ILF Partners to conduct on-farm research, organize field days and schedule community and youth outreach events. Juchems obtained her undergraduate degree from Iowa State University in agricultural business and economics, and a master’s degree from University of Nebraska-Lincoln in agricultural economics.
The ILF webinars are held on the third Wednesday of each month at 1 p.m. They are free, and all that is needed to participate is a computer with Internet access. To log in, go to https://connect.extension.iastate.edu/ilf/ at 1 p.m. on the afternoon of the webinar and log in through the “guest” option. Webinar participants will be able to converse with Juchems by typing their questions through the chat function. The webinar will be recorded and archived on the ILF website for viewing at any time at http://www.extension.iastate.edu/ilf/Webinars/.
Beef Production, Exports Projected to be Higher at USDA Outlook Forum
Brian R. Williams, Assistant Extension Professor
Department of Agricultural Economics, Mississippi State University
The United States Department of Agriculture's Office of the Chief Economist held its annual Outlook Forum last week. Mr. Shayle D. Shagam, a Livestock Analyst for the World Agricultural Outlook Board presented his projections for 2016. Not surprisingly, beef production is projected to be 3.8% higher in 2016 with 24.58 billion pounds. Production for competing proteins are also projected to be higher, with pork expected to be 2.2% higher while broiler production is expected to be 2.5% higher in 2016. All indications point toward 2016 having the first year-over year increase in beef production since 2008-2009. Among the largest drivers of the increase in beef production is the beef herd expansion that has been discussed for several years, but has only materialized within the last year. January 2015 beef cow numbers saw their first increase in over 10 years. The calf crop in 2015 also marked the first year-over year increase in more than 10 years. Many of those calves are either already on feed or will be entering the feedlots soon and will likely be included in the year's beef supply numbers.
Lower feed costs are expected to be a major driver of continued herd expansion as well as increased beef production. Increased corn production is expected to outpace demand for corn, further building upon already large ending stocks. The increased supply of corn will likely bring corn prices down even more in 2016 to a projected $3.45/bu, down $0.15/bu from last year's price. Soybean production is projected to be 3% lower than a year ago, but despite lower production, prices are still projected to be about $0.30/bu lower than a year ago. Lower soybean prices should translate into lower soybean meal prices for cattle feeders. The lower feed prices provide feedlots with an incentive to feed cattle for a longer period of time. When combined with the continued placement of heavier cattle, carcass weights are also expected to increase in 2016.
Cattle prices are expected to be lower in 2016. Feeder steer prices are projected to range from $176 to $185/cwt, down from $203 average in 2015 but more in line with current prices; which suggests an expectation of a sideways market in 2016. The 5-area fed steer price is forecast to fall between $133 and $142/cwt, also lower than a year ago but slightly higher than what prices were a week ago. The lower cattle prices are expected to contribute to increased beef exports in 2016. Mr. Shagam also points out that Australia will likely have sharply lower exports as a result of their herd-rebuilding efforts. That should open additional doors for U.S. beef exports, however exports could also be held back some by a strong dollar.
Dow AgroSciences to Launch New Burndown Herbicide
Dow AgroSciences plans to release Elevore™ herbicide, a new herbicide designed to elevate growers’ weed control programs. Registration for Elevore is expected in 2017.
Elevore will feature Arylex™ active, a new Group 4 growth regulator herbicide developed by Dow AgroSciences, and is expected to be labeled for burndown applications in multiple crops, including soybeans and corn. When added to a burndown program, Elevore will offer thorough control of labeled broadleaf weeds, including glyphosate- and ALS-resistant weed species such as henbit, chickweed and marestail.
“Ultimately, if growers achieve good weed control with a burndown program, they will likely be set up for success for the entire season,” says Lindsey Hecht, soybean herbicides product manager, Dow AgroSciences. “Upon regulatory approval, this new herbicide will be an excellent fit in reduced and no-till production systems to control actively growing weed species and give growers peace of mind that they will plant into a clean field.”
The need for new weed control tools continues to increase as more weeds become increasingly difficult to control.
Research trials for Elevore have resulted in thorough, effective control of targeted high-anxiety weeds, including 8-inch-tall marestail. Marestail is believed to be the first glyphosate-resistant weed in the United States and continues to drive weed control decisions for many growers.
“Growers are seeking new, better ways to control marestail,” Hecht says. “We look forward to offering Elevore to mitigate the ever-growing threat of weed pressure and provide improved control of marestail.”
Fertilizer Prices Slip Again But May Be Turning Corner
Average retail fertilizer prices continued to move lower the fourth week of February 2016, according to fertilizer retails surveyed by DTN. However, retailers report there are signs these lower fertilizer prices could reverse in the coming weeks and months. With spring application season gaining steam, DTN Fertilizer Columnist Ken Johnson's Feb. 29 report also confirms that UAN and anhydrous prices will likely begin running steady to higher over the next few weeks.
As was the case last week, all eight major fertilizers were lower compared to a month earlier with three fertilizers down some significance.
Anhydrous slid 6% compared to last month and the nitrogen fertilizer had an average price of $536 per ton. Both MAP and potash dropped 5% compared to the fourth week of January. MAP averaged $492/ton and potash was at $373/ton.
The remaining five fertilizers were lower, but just slightly. DAP had an average price of $477/ton, urea $371/ton, 10-34-0 $566/ton, UAN28 $260/ton and UAN32 $309/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.40/lb.N, anhydrous $0.33/lb.N, UAN28 $0.46/lb.N and UAN32 $0.48/lb.N.
With retail fertilizer moving lower in recent months, all fertilizers have sunk below year-ago levels. All but one fertilizer is now double digits lower. The only fertilizer not down much is 10-34-0, which is down 5%.
DAP is now 16% lower, UAN32 is 17% less expensive and MAP is 18% below a year ago. In addition, both urea and UAN28 are 22% less expensive while both potash and anhydrous are 24% lower compared to a year earlier.
Rabobank Releases Report on U.S. Row Crops Nearing the Point of Stabilization
As U.S. row crop farmers brace themselves for a third year of negative net income, Rabobank believes that – for at least the next five years – market forces will drive stabilization in profit margins near the long-term average breakeven levels. These findings are part of a new report from the Rabobank Food & Agribusiness Research and Advisory group, which explores the period of tight margins U.S. row crop farmers are currently operating in and the ways in which farmer focus will change.
“Farmers will need to continue conserving liquidity and maintain alternative sources of capital as the industry adjusts to this ‘new normal’ environment of lower profitability and trends toward more stability,” notes report co-author and Rabobank analyst Ken Zuckerberg.
The report notes there is a cost to this stability, namely that individual input categories will need to readjust as a proportion of the new total crop value.
“The most likely scenario is that high-value-added inputs, particularly specialty seed and crop protection products, will represent a greater portion of farmer wallet share, compared to machinery and bulk fertilizers,” notes report co-author and Rabobank senior analyst Sterling Liddell. “As the crop cycle transitions to stability, we see several implications.”
The report, “Ch-ch-changes: U.S. Row Crops Near the Point of Stabilization,” also finds farm input providers will need to deliver more value to cost conscious growers and smaller scale farms may be forced into strategic mergers or vertical integration strategies.
“There is no doubt that in order for U.S. row crop farmers to be successful and sustainable, they will need to readjust and reposition for the future,” says Zuckerberg.
Ethanol Stocks, Production Fall
The Energy Information Administration released data Wednesday, March 2, showing both U.S. ethanol inventories and domestic production fell last week while implied demand was unchanged.
The data showed total inventories decreased for the second straight week, down 500,000 barrels (bbl), or 2.1%, to 22.6 million bbl during the week-ended Feb. 26, reducing the year-over-year surplus to 1.1 million bbl, or 5.1%.
Plant production fell 7,000 barrels per day (bpd), or 0.7%, to 987,000 bpd last week, while up about 6.0% year-over-year.
Blender inputs, a proxy for ethanol demand, were unchanged at 882,000 bpd for the week, while up 4.3% year-over-year.
National FFA Organization Helps Members Ease Hunger in Local Communities through Recent Grants
FFA members across the country are helping feed the hungry in their communities thanks to more than $360,000 awarded in grants by the National FFA Organization.
This year, FFA chapters in 40 states and the Virgin Islands received FFA: Food For All Grants, which are sponsored by the Donaldson Foundation, Elanco, Land O'Lakes, Nationwide Foundation, Nutra Blend, Sealed Air, Tractor Supply Company and Tyson as a special project of the National FFA Foundation.
Using the monies received from the grant, FFA members from coast to coast implement long-term, real-world solutions to ease hunger in their communities.
The South Rowan FFA chapter in North Carolina has donated 2,900 pounds of produce and 400 dozen eggs to the Main Street Mission and Unity Mobile Meals, who distributed them to the community, helping fill the gap of fresh products for the hunger fighting agencies.
In California, FFA members from the Vista FFA chapter raised high quality protein for the school's backpack program and food pantry, including over 200 pounds of lamb, 100 pounds of rabbit and hundreds of eggs, thanks to the grant. They were also able to produce several hundred pounds of produce including tomatoes, lettuce, strawberries, apples, raspberries and an assortment of other vegetables.
The Roland-Story FFA in Iowa plans to continue their project which included planting row crops on three acres of land and building seven raised garden beds which allowed FFA members to donate nearly 5,500 pounds of produce to a local food bank. The donation included twenty varieties of fruits and vegetables.
Using skills they've learned in their agricultural education classes, the Holmen chapter in Wisconsin raised and processed 450 chickens that were donated to the school lunch program.
FFA chapters across the country are working on ways they can help their local communities while sharing with others the importance of agriculture by living out the leadership skills they've developed through FFA.
Other FFA chapters who received grants are located in Alabama; Arkansas; California; Colorado; Connecticut; Delaware; Florida; Georgia; Iowa; Idaho; Illinois; Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, West Virginia and the Virgin Islands.
In 2015, 137 chapters received Food For All grants. Those grants resulted in more than 15,585 people involved with helping ease hunger in their community by donating 164,261 hours of their time. In terms of food, chapters donated more than 112,000 pounds of produce; more than 12,250 pounds of meat and fish and more than 46,620 eggs.
Growth Energy and RFA Send Letter to the President Urging Administration to Take Action Against China AD/CVD DDG Case
On January 12, 2016, the People’s Republic of China, through its Ministry of Commerce (MOFCOM), filed antidumping and countervailing duty cases against the U.S. distiller’s dried grains (DDG) industry.
Today, Growth Energy and the Renewable Fuels Association sent a joint letter to President Obama urging the administration to take action through the Office of the U.S. Trade Representative, Department of Commerce and Department of Agriculture “to challenge both the process and preliminary determinations made by China’s investigating authority through comments to MOFCOM and through the World Trade Organization.”
Furthermore, the letter noted that, “The uncertainty and market risk resulting from China’s actions has already triggered substantial financial losses for U.S. distiller’s grains producers. Distiller’s grains prices have plunged more than 25 percent since last summer, while prices for corn and other feedstuffs have been stable or even increased slightly. At a time when both U.S. ethanol producers and farmers are facing serious economic challenges, it is estimated that China’s actions have already resulted in distillers grains losing $30-35/ton in value. This is equivalent to an annualized aggregate loss of $1.2 to $1.6 billion to U.S. ethanol producers, many of whom are small businesses in rural America. Losses would mount further, potentially to $50-60/ton or more, if the anti-dumping and countervailing duty actions ultimately result in a total collapse of distillers grains exports to China, meaning a loss to the U.S. economy of more than $2 billion.”
The letter concluded by asking President Obama to “work closely with the U.S. distiller’s grains industry to mount an aggressive defense of our access to the Chinese livestock feed market throughout China’s antidumping and countervailing duty investigations.”
How do you define sustainability in agriculture?
Often when we talk about sustainability in agriculture it takes on an agronomic context, focusing on technology and farming practices. But is a farm sustainable if there are no customers for the food it produces? I think you're going to enjoy these stories of two farmers taking a unique approach to sustainable farming.
Tyler Wegmeyer, the 2016 Bayer Young Farmer Sustainability Award winner, grew up on a Midwestern dairy farm but moved to Washtington D.C. after college to work on Capitol Hill. Despite his important work advocating for fair agricultural policy, his dream job was always to be a farmer. Soon enough, Tyler achieved his dream and his experience on the Hill broadened his perspective on the importance of consumer connections. Watch Tyler's amazing story here: https://youtu.be/vxTrKvaX0DM.
Amy Machamer, co-owner of Hurd Orchards, is a 7th-generation fruit farmer and the winner of the 2016 Produce Innovation Award. Together with her mom, Susan, Amy has developed multiple educational and experiential programs that bring thousands of community members out to the 200-year-old farm each year. Amy's love of the land and her passion for farming shine through in this video: https://youtu.be/ZNyC2scN20Q.
NAWG Participates in U.S. Agriculture Coalition for Cuba Press Conference
Today, NAWG President Brett Blankenship joined agriculture leaders from the U.S. Agriculture Coalition for Cuba (USACC) to show support for the progress made to open up trade with Cuba and advance the agricultural exports and industry. Speakers at the press conference shared experiences they have had in Cuba, and discussed opportunities, as well as challenges, that exist to further expand this market and strengthen the relationship the U.S. has with a country so close to home.
“I love any chance that other grower leaders and I have to discuss these great opportunities we have to strengthen our market share and trade,” said Blankenship. “Not only do wheat growers need this new market, all of agriculture needs this new market, and it is my hope that action will come quickly.”
NAWG is a member of the U.S. Ag Coalition for Cuba, a broad coalition of more than 100 agriculture organizations and businesses seeking to liberalize trade with Cuba. The coalition formed a year ago following President Obama’s announcement of several Administration efforts to ease some trade and travel restrictions.
Top Tips to Improve Nitrogen Efficiency
Last year, excessive rainfall drenched the Midwest, soaking cornfields and leaving soil vulnerable to increased nitrogen loss.
Improving nitrogen efficiency should be top of mind as growers evaluate last season and prepare to plant corn this spring. From nitrogen application timing to using proven technology to protect this valuable asset, consider these tips to maximize spring nitrogen applications.
Timing matters. For healthy growth, nitrogen should be applied as close as possible to the point when the crop needs it most, says Eric Scherder, Ph.D., field scientist, Dow AgroSciences. Corn takes up a significant amount of nutrients between the V5 and V8 growth stages, or up to 75 days after emergence. It’s vital to preserve nitrogen by using tools such as a nitrogen stabilizer so corn has the nutrients it needs during these periods of maximum crop uptake, Scherder says.
“We can’t limit the nitrogen corn needs at the front end and expect to have maximum yield come harvest,” he says. “Using a nitrogen stabilizer maintains the largest portion of nitrogen in the root zone.”
Scherder recommends growers follow the 4R program this spring — a concept to use the right fertilizer source, at the right rate, at the right time, with the right placement. The 4R framework takes an innovative approach that provides educational tools, advocacy support and implementation recommendations for crop nutrient stewardship.
Weigh the loss factors. Timely fertilizer applications are important; however, even the perfect time can be derailed by weather. Early spring rains drive nitrogen lower into soil profiles, out of the reach of corn roots through nitrate leaching, Scherder says.
“If a grower has experienced nitrogen loss and didn’t stabilize a given application, the grower may have applied the right rate, at the right time, and at the right place. Yet without stabilization, nitrogen was subjected to leaching, and yield and nitrogen loss occurred,” Scherder says. “Using a nitrogen stabilizer such as N-Serve or Instinct II acts as an insurance policy for your nitrogen so it stays where it needs to be for corn to use.”
The type and level of nitrogen loss is dependent on temperature, weather and the environment. Even if rain is not in the forecast, nitrogen loss can occur all year due to leaching and denitrification.
“For example, in a silt loam or sandy silt loam, nitrate movement down lower into the soil is the key loss mechanism,” Scherder says. “In heavier soils such as clay and clay loams, downward movement is less, yet denitrification is typically a key driver.”
Pick a proven product. With a cluttered market of fertilizer efficiency products, be sure to research which products are proven to work, says Tiffany Dean, nitrogen stabilizers product manager, Dow AgroSciences.
Nitrapyrin, the active ingredient in N-Serve® and Instinct® II nitrogen stabilizers, has been rigorously tested by third-party experts for more than four decades. Instinct II and N-Serve have been proven to provide an average 6-bushel-per-acre increase compared with untreated acres by slowing the nitrification process.* Slowing the nitrification process keeps more nitrogen available to crops during the critical period of nutrient uptake.
“Growers rely on our technology to work more efficiently, effectively and profitably,” Dean says. “Instinct II and N-Serve represent two options that fit in a variety of fertilizer programs and have a positive impact on growers’ ROI at the end of the year by reducing leaching and denitrification.”
N-Serve can be applied with anhydrous ammonia. Instinct II protects nitrogen when applied with UAN, urea and liquid manure. Both products have been proven to perform in fall or spring.
Enlist™ Field Specialists Offer Experts for Help Controlling Challenging Weeds
Herbicide-resistant and tough-to-control weeds are making life difficult for many western Corn Belt growers. Enlist™ field specialists help growers understand their options and get the most out of their weed control programs. Enlist corn, Enlist soybeans and Enlist cotton provide tolerance to Enlist Duo® herbicide, a proprietary blend of glyphosate and new 2,4-D choline.
Van Malter, Enlist™ field specialist, understands the weed issues growers in Missouri, Kansas and Nebraska face. He is part of a team of Enlist field specialists, experts who provide in-field technical support for growers, distributors, seed companies and retailers.
“The weed control landscape is evolving,” Malter says. “I highly recommend a weed control program that includes the Enlist system, which offers flexibility and multiple modes of action.”
Resistant species proliferate
The Enlist™ system can help Midwest growers control the toughest weeds, including many glyphosate-resistant species. Malter notes growers in Missouri and Kansas are challenged by up to seven glyphosate-resistant species, while Nebraska growers face four resistant species with more likely on the way.
“The three biggest threats for most growers in the region are waterhemp, marestail and Palmer amaranth,” Malter says. “Resistant Palmer amaranth is spreading rapidly.”
Malter suggests growers adopt a program approach. This entails an early burndown to start fields off clean and the use of a preemergence residual herbicide that includes multiple modes of action. Growers then can manage the second flush of weeds with a postemergence application featuring additional modes of action. The Enlist system allows growers to use Enlist Duo herbicide, which offers superior effectiveness and flexibility postemergence.
Growers who plant Enlist corn and Enlist soybeans will be able to use Enlist Duo, a proprietary blend of glyphosate and new 2,4-D choline, postemergence. Because this technology uses two modes of action, it helps preserve and prolong the efficacy of both ingredient herbicides. And it controls the stubborn weeds that rob yield.
Ensuring effective application
Enlist Duo features Colex-D® technology, which provides several benefits, including near-zero volatility, minimized potential for physical drift, low odor and improved handling characteristics. Enlist field specialists can help growers get more out of Enlist Duo herbicide by educating them on using the appropriate nozzles, spray pressure and boom height.
In addition to Malter and other Enlist™ field specialists, growers, applicators and retailers can take advantage of the Enlist Ahead resource to achieve the best results from the Enlist system today and in the future.
“Enlist field specialists are passionate in our efforts to educate growers, applicators and retailers,” Malter says. “We want to make sure they understand Enlist technology. It’s a superior weed control system. We have developed application procedures to ensure both growers and their neighbors have a positive experience.”
Malter invites questions from growers and retailers.
“Don’t be shy,” he says. “Feel free to reach out to your Dow AgroSciences sales rep or myself. We want to help growers understand this technology and make an informed decision on how it fits in their operation. We’re working to help growers improve their weed management programs both today and down the road.”
Nebraska Extension's Mid-Plains Beef Educational Series will conduct a special session March 29 on beef quality assurance practices for spring calving cows and calves, and using reproductive technologies in cow herds.
The session will be from 10:30 a.m. to 3:30 p.m. at the University of Nebraska-Lincoln's Agricultural Research and Development Center, 1071 County Road G near Ithaca.
The session will draw on the expertise of Rob Eirich, Nebraska Extension educator of beef quality assurance; Richard Randle, Nebraska Extension beef veterinarian and doctor of veterinary medicine; and Dave Hardin, professor in the UNL School of Veterinary Medicine and Biomedical Sciences and doctor of veterinary medicine.
The program is designed for producers, veterinarians or others involved in the beef industry. The special session will deal with animal health stewardship, the veterinary feed directive, positioning cow herds to use reproductive technologies, and a demonstration of low-stress cattle-handing facilities and beef quality assurance practices for handling cattle. Participants will become beef quality assurance certified for two years.
Registration is requested by March 21. Pre-registration is $25 by March 21, or $40 on March 29. The registration fee covers certification, educational materials and lunch.
To register or obtain more information, contact Steve Tonn, extension educator in Washington County, at 402-426-9455 or stonn2@unl.edu.
50th Annual TRIUMPH OF AG EXPO – Farm and Ranch Machinery Show Announces Agri-Award Winner
Over 1,000 booths with over 200,000 square feet of Exhibit space of the latest technology will be showcased at the 50th Annual TRIUMPH OF AGRICULTURE EXPOSITION Farm & Ranch Machinery Show, Wednesday, March 9th and Thursday, March 10th at the CenturyLink Center Omaha.
Regarded as the Area's Largest Indoor Short-line Farm Machinery Show, the EXPO has become a tradition for area farmers, ranchers, stockmen, and their families to come to the show and ask questions directly to the leading farm manufacturers and suppliers for ways to improve their farm operation right before spring fieldwork begins all at one time and under one roof. The Seminar schedule is listed below and provides a chance to learn more about some of the new products and services available at the Show. The Farm Show is open Wed - from 9 AM to 4 PM and Thursday 9 AM to 3 PM.
Bob Mancuso, Jr., the Show’s Director, says, “Farming today is more challenging and Midwest farmers are interested in keeping up with the changes and ways to increase their profits and yields per acre while reducing their costs.” The Triumph of Ag Expo offers a one stop opportunity to see and compare hundreds of hands - on demonstrations from the newest farm machinery to the day-to-day supplies and product information that's available for today’s farming decisions. The TRIUMPH OF AG EXPO is proud that they have been able to keep the Admission to the Show FREE for the past 50 years. Advance Free admission tickets can be obtained from County extension agents, farm machinery and equipment dealers, or at the CenturyLink Center Omaha’s door. There are over 4,500 parking spaces on site right at the convention center entrance.
At no other time this spring will area farmers be able to see all these agricultural suppliers indoors at one time and under one roof than on these two days at the Triumph of Ag Expo. Bob Mancuso, Jr., the Show Director, said “Many first-time visitors cannot believe the wide selection of products on display and the tremendous opportunity for savings at the Show”. The Triumph of Ag Expo has something for every kind of farm operation, including tillage equipment, planters, monitor and control systems, soil testing equipment, mowers, cattle chutes, augers, fertilizers, various seed hybrids, feeders, tanks and pumps, hay moving and handling equipment, plows, combines, computers and software, tractors and many more agricultural products and services for today's farmers and ranchers.
Bob Mancuso, Jr., said, “This year there are many show features. There will be antique tractors and equipment from the Camp Creek Threshers, Elkhorn Valley Antique Power Association, and the Keg Creek Antique Machinery Club.
TRIUMPH OF AGRICULTURE ANNUAL AGRI- AWARD
The Triumph of Agriculture Exposition established the Annual “Agri-Award” as part of Nebraska’s Centennial Celebration, in 1976 to recognize outstanding organizations and individuals that have contributed to the Agricultural Development in the Midwestern area. This year’s winner is Greg Ibach, Director of the Nebraska Department of Agriculture. He will receive the award at the Opening Day Luncheon on Wednesday, March 9th at 12 Noon at the CenturyLink Center Omaha.
THE TRIUMPH OF AGRICULTURE EXPOSITION Farm & Ranch Machinery Show is produced by Mid-America Expositions, Inc., sponsored by the Mid-America Farm & Ranch Machinery Council and is a member of the North American Farm Show Council consisting of the top 25 shows in the nation.
Nebraska Legislature Ag Committee Revives ‘Right to Farm’
(AP) A proposal that would restrict the Nebraska Legislature’s power to regulate agriculture has advanced out of a committee one day after that committee’s members rejected it.
The committee unexpectedly revived the measure on Wednesday and voted 5-2 to send it to the full Legislature for debate.
The constitutional amendment would prevent lawmakers from passing new regulations on farming and ranching technology, if voters approve it in the November election. The version that advanced Wednesday would allow state and local governments to continue regulating water.
Sen. Jerry Johnson, the committee chairman, says he agreed to schedule another vote after he received calls from state and local water regulators who supported the amended version of the proposal.
Critics say the amendment still fails to define agricultural technology.
Iowa Learning Farms March Webinar to Discuss Economic Value of Cover Crops
The next monthly Iowa Learning Farms webinar will be Wednesday, March 16 at 1 p.m. This month’s guest speaker is Liz Juchems, events coordinator with Iowa Learning Farms. Juchems will discuss a recent case study conducted by the Iowa Cover Crop Working Group examining the economic value of cover crops.
This study is unique because of its focus on the economic value of retaining soil and soil nutrients. Scenarios in the Iowa Nutrient Reduction Strategy call for cover crops on up to 60 percent of row crop acres in Iowa (about 12 million acres). As farmers seek more information about cover crops, this research study provides one method to quantify the economic value of cover crops and their ability to prevent soil erosion.
Juchems works closely with ILF Partners to conduct on-farm research, organize field days and schedule community and youth outreach events. Juchems obtained her undergraduate degree from Iowa State University in agricultural business and economics, and a master’s degree from University of Nebraska-Lincoln in agricultural economics.
The ILF webinars are held on the third Wednesday of each month at 1 p.m. They are free, and all that is needed to participate is a computer with Internet access. To log in, go to https://connect.extension.iastate.edu/ilf/ at 1 p.m. on the afternoon of the webinar and log in through the “guest” option. Webinar participants will be able to converse with Juchems by typing their questions through the chat function. The webinar will be recorded and archived on the ILF website for viewing at any time at http://www.extension.iastate.edu/ilf/Webinars/.
Beef Production, Exports Projected to be Higher at USDA Outlook Forum
Brian R. Williams, Assistant Extension Professor
Department of Agricultural Economics, Mississippi State University
The United States Department of Agriculture's Office of the Chief Economist held its annual Outlook Forum last week. Mr. Shayle D. Shagam, a Livestock Analyst for the World Agricultural Outlook Board presented his projections for 2016. Not surprisingly, beef production is projected to be 3.8% higher in 2016 with 24.58 billion pounds. Production for competing proteins are also projected to be higher, with pork expected to be 2.2% higher while broiler production is expected to be 2.5% higher in 2016. All indications point toward 2016 having the first year-over year increase in beef production since 2008-2009. Among the largest drivers of the increase in beef production is the beef herd expansion that has been discussed for several years, but has only materialized within the last year. January 2015 beef cow numbers saw their first increase in over 10 years. The calf crop in 2015 also marked the first year-over year increase in more than 10 years. Many of those calves are either already on feed or will be entering the feedlots soon and will likely be included in the year's beef supply numbers.
Lower feed costs are expected to be a major driver of continued herd expansion as well as increased beef production. Increased corn production is expected to outpace demand for corn, further building upon already large ending stocks. The increased supply of corn will likely bring corn prices down even more in 2016 to a projected $3.45/bu, down $0.15/bu from last year's price. Soybean production is projected to be 3% lower than a year ago, but despite lower production, prices are still projected to be about $0.30/bu lower than a year ago. Lower soybean prices should translate into lower soybean meal prices for cattle feeders. The lower feed prices provide feedlots with an incentive to feed cattle for a longer period of time. When combined with the continued placement of heavier cattle, carcass weights are also expected to increase in 2016.
Cattle prices are expected to be lower in 2016. Feeder steer prices are projected to range from $176 to $185/cwt, down from $203 average in 2015 but more in line with current prices; which suggests an expectation of a sideways market in 2016. The 5-area fed steer price is forecast to fall between $133 and $142/cwt, also lower than a year ago but slightly higher than what prices were a week ago. The lower cattle prices are expected to contribute to increased beef exports in 2016. Mr. Shagam also points out that Australia will likely have sharply lower exports as a result of their herd-rebuilding efforts. That should open additional doors for U.S. beef exports, however exports could also be held back some by a strong dollar.
Dow AgroSciences to Launch New Burndown Herbicide
Dow AgroSciences plans to release Elevore™ herbicide, a new herbicide designed to elevate growers’ weed control programs. Registration for Elevore is expected in 2017.
Elevore will feature Arylex™ active, a new Group 4 growth regulator herbicide developed by Dow AgroSciences, and is expected to be labeled for burndown applications in multiple crops, including soybeans and corn. When added to a burndown program, Elevore will offer thorough control of labeled broadleaf weeds, including glyphosate- and ALS-resistant weed species such as henbit, chickweed and marestail.
“Ultimately, if growers achieve good weed control with a burndown program, they will likely be set up for success for the entire season,” says Lindsey Hecht, soybean herbicides product manager, Dow AgroSciences. “Upon regulatory approval, this new herbicide will be an excellent fit in reduced and no-till production systems to control actively growing weed species and give growers peace of mind that they will plant into a clean field.”
The need for new weed control tools continues to increase as more weeds become increasingly difficult to control.
Research trials for Elevore have resulted in thorough, effective control of targeted high-anxiety weeds, including 8-inch-tall marestail. Marestail is believed to be the first glyphosate-resistant weed in the United States and continues to drive weed control decisions for many growers.
“Growers are seeking new, better ways to control marestail,” Hecht says. “We look forward to offering Elevore to mitigate the ever-growing threat of weed pressure and provide improved control of marestail.”
Fertilizer Prices Slip Again But May Be Turning Corner
Average retail fertilizer prices continued to move lower the fourth week of February 2016, according to fertilizer retails surveyed by DTN. However, retailers report there are signs these lower fertilizer prices could reverse in the coming weeks and months. With spring application season gaining steam, DTN Fertilizer Columnist Ken Johnson's Feb. 29 report also confirms that UAN and anhydrous prices will likely begin running steady to higher over the next few weeks.
As was the case last week, all eight major fertilizers were lower compared to a month earlier with three fertilizers down some significance.
Anhydrous slid 6% compared to last month and the nitrogen fertilizer had an average price of $536 per ton. Both MAP and potash dropped 5% compared to the fourth week of January. MAP averaged $492/ton and potash was at $373/ton.
The remaining five fertilizers were lower, but just slightly. DAP had an average price of $477/ton, urea $371/ton, 10-34-0 $566/ton, UAN28 $260/ton and UAN32 $309/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.40/lb.N, anhydrous $0.33/lb.N, UAN28 $0.46/lb.N and UAN32 $0.48/lb.N.
With retail fertilizer moving lower in recent months, all fertilizers have sunk below year-ago levels. All but one fertilizer is now double digits lower. The only fertilizer not down much is 10-34-0, which is down 5%.
DAP is now 16% lower, UAN32 is 17% less expensive and MAP is 18% below a year ago. In addition, both urea and UAN28 are 22% less expensive while both potash and anhydrous are 24% lower compared to a year earlier.
Rabobank Releases Report on U.S. Row Crops Nearing the Point of Stabilization
As U.S. row crop farmers brace themselves for a third year of negative net income, Rabobank believes that – for at least the next five years – market forces will drive stabilization in profit margins near the long-term average breakeven levels. These findings are part of a new report from the Rabobank Food & Agribusiness Research and Advisory group, which explores the period of tight margins U.S. row crop farmers are currently operating in and the ways in which farmer focus will change.
“Farmers will need to continue conserving liquidity and maintain alternative sources of capital as the industry adjusts to this ‘new normal’ environment of lower profitability and trends toward more stability,” notes report co-author and Rabobank analyst Ken Zuckerberg.
The report notes there is a cost to this stability, namely that individual input categories will need to readjust as a proportion of the new total crop value.
“The most likely scenario is that high-value-added inputs, particularly specialty seed and crop protection products, will represent a greater portion of farmer wallet share, compared to machinery and bulk fertilizers,” notes report co-author and Rabobank senior analyst Sterling Liddell. “As the crop cycle transitions to stability, we see several implications.”
The report, “Ch-ch-changes: U.S. Row Crops Near the Point of Stabilization,” also finds farm input providers will need to deliver more value to cost conscious growers and smaller scale farms may be forced into strategic mergers or vertical integration strategies.
“There is no doubt that in order for U.S. row crop farmers to be successful and sustainable, they will need to readjust and reposition for the future,” says Zuckerberg.
Ethanol Stocks, Production Fall
The Energy Information Administration released data Wednesday, March 2, showing both U.S. ethanol inventories and domestic production fell last week while implied demand was unchanged.
The data showed total inventories decreased for the second straight week, down 500,000 barrels (bbl), or 2.1%, to 22.6 million bbl during the week-ended Feb. 26, reducing the year-over-year surplus to 1.1 million bbl, or 5.1%.
Plant production fell 7,000 barrels per day (bpd), or 0.7%, to 987,000 bpd last week, while up about 6.0% year-over-year.
Blender inputs, a proxy for ethanol demand, were unchanged at 882,000 bpd for the week, while up 4.3% year-over-year.
National FFA Organization Helps Members Ease Hunger in Local Communities through Recent Grants
FFA members across the country are helping feed the hungry in their communities thanks to more than $360,000 awarded in grants by the National FFA Organization.
This year, FFA chapters in 40 states and the Virgin Islands received FFA: Food For All Grants, which are sponsored by the Donaldson Foundation, Elanco, Land O'Lakes, Nationwide Foundation, Nutra Blend, Sealed Air, Tractor Supply Company and Tyson as a special project of the National FFA Foundation.
Using the monies received from the grant, FFA members from coast to coast implement long-term, real-world solutions to ease hunger in their communities.
The South Rowan FFA chapter in North Carolina has donated 2,900 pounds of produce and 400 dozen eggs to the Main Street Mission and Unity Mobile Meals, who distributed them to the community, helping fill the gap of fresh products for the hunger fighting agencies.
In California, FFA members from the Vista FFA chapter raised high quality protein for the school's backpack program and food pantry, including over 200 pounds of lamb, 100 pounds of rabbit and hundreds of eggs, thanks to the grant. They were also able to produce several hundred pounds of produce including tomatoes, lettuce, strawberries, apples, raspberries and an assortment of other vegetables.
The Roland-Story FFA in Iowa plans to continue their project which included planting row crops on three acres of land and building seven raised garden beds which allowed FFA members to donate nearly 5,500 pounds of produce to a local food bank. The donation included twenty varieties of fruits and vegetables.
Using skills they've learned in their agricultural education classes, the Holmen chapter in Wisconsin raised and processed 450 chickens that were donated to the school lunch program.
FFA chapters across the country are working on ways they can help their local communities while sharing with others the importance of agriculture by living out the leadership skills they've developed through FFA.
Other FFA chapters who received grants are located in Alabama; Arkansas; California; Colorado; Connecticut; Delaware; Florida; Georgia; Iowa; Idaho; Illinois; Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, West Virginia and the Virgin Islands.
In 2015, 137 chapters received Food For All grants. Those grants resulted in more than 15,585 people involved with helping ease hunger in their community by donating 164,261 hours of their time. In terms of food, chapters donated more than 112,000 pounds of produce; more than 12,250 pounds of meat and fish and more than 46,620 eggs.
Growth Energy and RFA Send Letter to the President Urging Administration to Take Action Against China AD/CVD DDG Case
On January 12, 2016, the People’s Republic of China, through its Ministry of Commerce (MOFCOM), filed antidumping and countervailing duty cases against the U.S. distiller’s dried grains (DDG) industry.
Today, Growth Energy and the Renewable Fuels Association sent a joint letter to President Obama urging the administration to take action through the Office of the U.S. Trade Representative, Department of Commerce and Department of Agriculture “to challenge both the process and preliminary determinations made by China’s investigating authority through comments to MOFCOM and through the World Trade Organization.”
Furthermore, the letter noted that, “The uncertainty and market risk resulting from China’s actions has already triggered substantial financial losses for U.S. distiller’s grains producers. Distiller’s grains prices have plunged more than 25 percent since last summer, while prices for corn and other feedstuffs have been stable or even increased slightly. At a time when both U.S. ethanol producers and farmers are facing serious economic challenges, it is estimated that China’s actions have already resulted in distillers grains losing $30-35/ton in value. This is equivalent to an annualized aggregate loss of $1.2 to $1.6 billion to U.S. ethanol producers, many of whom are small businesses in rural America. Losses would mount further, potentially to $50-60/ton or more, if the anti-dumping and countervailing duty actions ultimately result in a total collapse of distillers grains exports to China, meaning a loss to the U.S. economy of more than $2 billion.”
The letter concluded by asking President Obama to “work closely with the U.S. distiller’s grains industry to mount an aggressive defense of our access to the Chinese livestock feed market throughout China’s antidumping and countervailing duty investigations.”
How do you define sustainability in agriculture?
Often when we talk about sustainability in agriculture it takes on an agronomic context, focusing on technology and farming practices. But is a farm sustainable if there are no customers for the food it produces? I think you're going to enjoy these stories of two farmers taking a unique approach to sustainable farming.
Tyler Wegmeyer, the 2016 Bayer Young Farmer Sustainability Award winner, grew up on a Midwestern dairy farm but moved to Washtington D.C. after college to work on Capitol Hill. Despite his important work advocating for fair agricultural policy, his dream job was always to be a farmer. Soon enough, Tyler achieved his dream and his experience on the Hill broadened his perspective on the importance of consumer connections. Watch Tyler's amazing story here: https://youtu.be/vxTrKvaX0DM.
Amy Machamer, co-owner of Hurd Orchards, is a 7th-generation fruit farmer and the winner of the 2016 Produce Innovation Award. Together with her mom, Susan, Amy has developed multiple educational and experiential programs that bring thousands of community members out to the 200-year-old farm each year. Amy's love of the land and her passion for farming shine through in this video: https://youtu.be/ZNyC2scN20Q.
NAWG Participates in U.S. Agriculture Coalition for Cuba Press Conference
Today, NAWG President Brett Blankenship joined agriculture leaders from the U.S. Agriculture Coalition for Cuba (USACC) to show support for the progress made to open up trade with Cuba and advance the agricultural exports and industry. Speakers at the press conference shared experiences they have had in Cuba, and discussed opportunities, as well as challenges, that exist to further expand this market and strengthen the relationship the U.S. has with a country so close to home.
“I love any chance that other grower leaders and I have to discuss these great opportunities we have to strengthen our market share and trade,” said Blankenship. “Not only do wheat growers need this new market, all of agriculture needs this new market, and it is my hope that action will come quickly.”
NAWG is a member of the U.S. Ag Coalition for Cuba, a broad coalition of more than 100 agriculture organizations and businesses seeking to liberalize trade with Cuba. The coalition formed a year ago following President Obama’s announcement of several Administration efforts to ease some trade and travel restrictions.
Top Tips to Improve Nitrogen Efficiency
Last year, excessive rainfall drenched the Midwest, soaking cornfields and leaving soil vulnerable to increased nitrogen loss.
Improving nitrogen efficiency should be top of mind as growers evaluate last season and prepare to plant corn this spring. From nitrogen application timing to using proven technology to protect this valuable asset, consider these tips to maximize spring nitrogen applications.
Timing matters. For healthy growth, nitrogen should be applied as close as possible to the point when the crop needs it most, says Eric Scherder, Ph.D., field scientist, Dow AgroSciences. Corn takes up a significant amount of nutrients between the V5 and V8 growth stages, or up to 75 days after emergence. It’s vital to preserve nitrogen by using tools such as a nitrogen stabilizer so corn has the nutrients it needs during these periods of maximum crop uptake, Scherder says.
“We can’t limit the nitrogen corn needs at the front end and expect to have maximum yield come harvest,” he says. “Using a nitrogen stabilizer maintains the largest portion of nitrogen in the root zone.”
Scherder recommends growers follow the 4R program this spring — a concept to use the right fertilizer source, at the right rate, at the right time, with the right placement. The 4R framework takes an innovative approach that provides educational tools, advocacy support and implementation recommendations for crop nutrient stewardship.
Weigh the loss factors. Timely fertilizer applications are important; however, even the perfect time can be derailed by weather. Early spring rains drive nitrogen lower into soil profiles, out of the reach of corn roots through nitrate leaching, Scherder says.
“If a grower has experienced nitrogen loss and didn’t stabilize a given application, the grower may have applied the right rate, at the right time, and at the right place. Yet without stabilization, nitrogen was subjected to leaching, and yield and nitrogen loss occurred,” Scherder says. “Using a nitrogen stabilizer such as N-Serve or Instinct II acts as an insurance policy for your nitrogen so it stays where it needs to be for corn to use.”
The type and level of nitrogen loss is dependent on temperature, weather and the environment. Even if rain is not in the forecast, nitrogen loss can occur all year due to leaching and denitrification.
“For example, in a silt loam or sandy silt loam, nitrate movement down lower into the soil is the key loss mechanism,” Scherder says. “In heavier soils such as clay and clay loams, downward movement is less, yet denitrification is typically a key driver.”
Pick a proven product. With a cluttered market of fertilizer efficiency products, be sure to research which products are proven to work, says Tiffany Dean, nitrogen stabilizers product manager, Dow AgroSciences.
Nitrapyrin, the active ingredient in N-Serve® and Instinct® II nitrogen stabilizers, has been rigorously tested by third-party experts for more than four decades. Instinct II and N-Serve have been proven to provide an average 6-bushel-per-acre increase compared with untreated acres by slowing the nitrification process.* Slowing the nitrification process keeps more nitrogen available to crops during the critical period of nutrient uptake.
“Growers rely on our technology to work more efficiently, effectively and profitably,” Dean says. “Instinct II and N-Serve represent two options that fit in a variety of fertilizer programs and have a positive impact on growers’ ROI at the end of the year by reducing leaching and denitrification.”
N-Serve can be applied with anhydrous ammonia. Instinct II protects nitrogen when applied with UAN, urea and liquid manure. Both products have been proven to perform in fall or spring.
Enlist™ Field Specialists Offer Experts for Help Controlling Challenging Weeds
Herbicide-resistant and tough-to-control weeds are making life difficult for many western Corn Belt growers. Enlist™ field specialists help growers understand their options and get the most out of their weed control programs. Enlist corn, Enlist soybeans and Enlist cotton provide tolerance to Enlist Duo® herbicide, a proprietary blend of glyphosate and new 2,4-D choline.
Van Malter, Enlist™ field specialist, understands the weed issues growers in Missouri, Kansas and Nebraska face. He is part of a team of Enlist field specialists, experts who provide in-field technical support for growers, distributors, seed companies and retailers.
“The weed control landscape is evolving,” Malter says. “I highly recommend a weed control program that includes the Enlist system, which offers flexibility and multiple modes of action.”
Resistant species proliferate
The Enlist™ system can help Midwest growers control the toughest weeds, including many glyphosate-resistant species. Malter notes growers in Missouri and Kansas are challenged by up to seven glyphosate-resistant species, while Nebraska growers face four resistant species with more likely on the way.
“The three biggest threats for most growers in the region are waterhemp, marestail and Palmer amaranth,” Malter says. “Resistant Palmer amaranth is spreading rapidly.”
Malter suggests growers adopt a program approach. This entails an early burndown to start fields off clean and the use of a preemergence residual herbicide that includes multiple modes of action. Growers then can manage the second flush of weeds with a postemergence application featuring additional modes of action. The Enlist system allows growers to use Enlist Duo herbicide, which offers superior effectiveness and flexibility postemergence.
Growers who plant Enlist corn and Enlist soybeans will be able to use Enlist Duo, a proprietary blend of glyphosate and new 2,4-D choline, postemergence. Because this technology uses two modes of action, it helps preserve and prolong the efficacy of both ingredient herbicides. And it controls the stubborn weeds that rob yield.
Ensuring effective application
Enlist Duo features Colex-D® technology, which provides several benefits, including near-zero volatility, minimized potential for physical drift, low odor and improved handling characteristics. Enlist field specialists can help growers get more out of Enlist Duo herbicide by educating them on using the appropriate nozzles, spray pressure and boom height.
In addition to Malter and other Enlist™ field specialists, growers, applicators and retailers can take advantage of the Enlist Ahead resource to achieve the best results from the Enlist system today and in the future.
“Enlist field specialists are passionate in our efforts to educate growers, applicators and retailers,” Malter says. “We want to make sure they understand Enlist technology. It’s a superior weed control system. We have developed application procedures to ensure both growers and their neighbors have a positive experience.”
Malter invites questions from growers and retailers.
“Don’t be shy,” he says. “Feel free to reach out to your Dow AgroSciences sales rep or myself. We want to help growers understand this technology and make an informed decision on how it fits in their operation. We’re working to help growers improve their weed management programs both today and down the road.”
Wednesday, March 2, 2016
Tuesday March 1 Ag News
Controlling Muddy Conditions in the Feedlot
Erin Laborie, Nebraska Extension Educator
Prolonged periods of mud and moisture in the feedlot can significantly hinder cattle performance and profitability. When cattle are standing in four to eight inches of mud, gain can decrease by nearly 15 percent. A feedlot with mud that is belly deep can depress gain by nearly 25 percent. Consequently, the negative impact of mud on feed efficiency can result in up to a 56 percent increase in cost of gain as more days on feed are necessary to reach finish.
Several factors figure in to this profit loss situation:
1) Cattle make fewer trips to the feedbunk during muddy conditions which results in lower feed intake.
2) Cattle utilize more energy trucking through the mud to reach the feedbunk. Muddy conditions can increase energy requirements by 10 percent.
3) Cattle can tolerate extremely cold temperatures when their hair coat is dry. However, if their hair coat is wet, maintenance requirements increase two percent for every degree below 30 degrees. For example, a feedlot steer has a 20 percent increase in requirements when his hair coat is wet and the outside temperature is 20 degrees.
Pen maintenance and design can greatly influence the level of moisture in the feedlot. Proper drainage and prevention of runoff water from entering pens is the first step in reducing mud within the pen. A slope of two to five percent from the pad to the lower end of the pen will provide adequate drainage; a three percent slope is ideal. Providing adequate space per animal can reduce mud depth especially in the high traffic areas around water troughs and feedbunks. It is recommended that finishing cattle have 250 square feet per animal.
Mounds should be utilized to provide a dry area for cattle to rest. They should be four to six feet tall, provide 20 to 40 square feet of space per head on each side of the mound, and be constructed so that cattle can step off the mound and onto the feeding apron without having to move through mud.
When muddy conditions do occur, a box scraper can be used to remove some of the mud. Frequent removal of excess manure and bedding will reduce moisture retention and help pens dry out more quickly. Considering every 10 inches of snow equates to about an inch of moisture, be prepared to remove snow before it melts.
Although adverse weather conditions cannot always be predicted or prevented, preparing for these unfavorable circumstances by having a plan in place can help. For more information, see “Mud Effects on Feedlot Cattle” in the 2011 Nebraska Beef Cattle Report (http://beef.unl.edu/c9405542-1c41-4b9c-a143-f192e1e72917.pdf). Feedlot design is also discussed in UNL Extension Circular EC777, “Planning a New Cattle Feedlot” (http://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=5873&context=extensionhist).
Private Applicators Need Certification
All farmers who use restricted use pesticide must have a current certification card according to the Nebraska Department of Agriculture.
The Nebraska Extension is conducting the following training sessions which are approved for renewal or initial certification according to Nebraska Educator Larry Howard of Cuming County. Again this year, there will be a fee charged to support the cost of materials. Producers are reminded to bring their old cards or the letter with the form at the bottom that they received from the Nebraska Department of Agriculture if they are recertifying.
Each session last approximately three hours and will be held in West Point at the Nielsen Community Center on Monday, March 14 at 1:30 p.m. and 7:00 p.m.
For additional information, contact the Nebraska Extension office in Cuming County at 402/372-6006.
Nebraska Beef Council Seeks Director Candidates
The Nebraska Beef Council will be holding board of director elections in 5 of the 9 districts in 2016. Producers interested in becoming a beef council director are encouraged to attend one of the following informational sessions:
(Each session will last approximately 1 hour)
March 15, 2016 - Wayne, UNL Extension Office, 1:00 p.m.
March 15, 2016 - Columbus Public Library, 5:00 p.m.
March 16, 2016 - Kearney, Nebraska Beef Council Office, 9:00 a.m.
March 16, 2016 - Broken Bow Public Library, 1:00 p.m.
March 17, 2016 -Box Butte, UNL Extension Office, Alliance, 1:00 p.m.
*Additional sessions will be added if necessary
Election packets will be available on April 1, 2016 and must be returned to the Nebraska Beef Council by June 15, 2016.
For more information, including districts to hold elections in 2016 and candidate requirements, please log on to www.nebeef.org or call 800-241-5326.
UNL Block and Bridle PorkFest
Dr. Benny Mote, NE Swine Extension Specialist
This is the first year that UNL’s Block & Bridle is putting on a PorkFest. It is led by the newly formed Future Pork Leaders group. I am really excited by this new found interest in pork at the undergrad level and want to keep feeding that fire. They are a little behind getting everything put out in a timely manner, but have everything on track now. If you are going to be anywhere near Lincoln next Thursday, you can purchase tickets below for a good meal. Also if you are interested in entering the rib contest, let me know and I can put you in contact with the person running that portion of the event.
Porkfest will be held March 10th from 5:30-7:30 in the Animal Science Commons. Your ticket gets you a meal (pork loin sandwich, baked potato, beans, cookie, drink) and in to watch the Bacon Eating Contest!
Tickets are available online at this link https://www.eventbrite.com/e/unl-block-and-bridle-porkfest-tickets-21417019883?utm-medium=discovery&utm-campaign=social&utm-content=attendeeshare&utm-source=cp&utm-term=listing.
Smith Featured at Briefing on Lifting Ethanol Regulations to Increase Consumer Choice
Congressman Adrian Smith (R-NE) presented at a briefing today to educate congressional staff on the impacts of an Environmental Protection Agency (EPA) regulation which currently prevents the sale of E15 during the summer months.
Though E15 is cheaper and has a higher octane rating than both E10 and standard gasoline, retailers are unable to market E15 during the summer months due to EPA volatility standards. The EPA granted E10 a waiver from these volatility standards in 1990, but this waiver has not yet been extended to E15.
In April 2015, Smith introduced H.R. 1736 to extend this waiver to E15, allowing it to be sold year-round.
“Ethanol provides consumers with greater choice at the pump, and retailers should have the opportunity to market more options to meet our country’s fuel demand,” Smith said. “For many retailers, the steps required to comply with the EPA’s arbitrary regulation makes E15 uncompetitive. Today’s panel made the case for extending to E15 the waiver already granted to E10 in order to diversify our fuel supply, increase consumer choice, and promote American energy independence.”
Poll Reaffirms Iowans Support of Ethanol and RFS
A new poll conducted by Selzer and Company and released by Mediacom and the Des Moines Register yesterday showed 71 percent of Iowans support ethanol and the Renewable Fuel Standard (RFS). More importantly Republicans’ support for the federal policy has grown since the Iowa caucuses. In a Des Moines Register/Bloomberg poll this past December, Republicans surveyed supported the RFS by 61 percent. The most recent poll conducted by the Des Moines Register/Mediacom showed a five percent growth in support among Republicans to 66 percent, while support among Democrats stayed consistent.
“Iowans know ethanol and the RFS are allowing America’s farmers and innovators to produce clean, secure, renewable fuel right here at home that reduces toxic emissions and is better for the air we all breathe. The immense benefits and potential of biofuels, like ethanol, plays a critical role in America’s energy policy and in developing a 21st century fuel for 21st century vehicles,” noted Tom Buis, co-chair of Growth Energy.
Buis added, “Contrary to the oil industry spin, this poll reinforces the fact that the issue gained ground with Iowans during the 2016 caucuses and now they support it in even greater numbers than before. The relevancy of the issue is why an overwhelming 83 percent of Iowans caucused for pro-RFS candidates in 2016, higher percentage than in 2012.”
Furthermore, as the Des Moines Register highlighted overwhelming support for the RFS, regardless of political party affiliation, noting that 66 percent of Republicans, 76 percent of Democrats and 71 percent of independents are in favor of the RFS. Additionally, the Des Moines Register noted that, “Iowans who consider themselves tea party supporters also like it, with 64 percent in favor.”
Iowa Cattlemen’s Foundation scholarship deadline is March 15
High school seniors who have been involved in cattle or beef activities may be eligible for scholarships from the Iowa Cattlemen's Foundation. Eligible students must graduate from high school this year, and meet any of these criteria:
- received Youth Beef Team training,
- completed the Masters of Beef Advocacy, or
- served as a county Beef Ambassador/Queen/Princess
Candidates will compete for $1,000 scholarships, and up to three scholarships will be awarded.
An additional $500 will be awarded to any $1,000 scholarship winner who has completed the online course for MBA (Master of Beef Advocacy) by the time of the personal interviews in April.
Applications for the scholarship must be emailed or postmarked by March 15, 2016. The complete guidelines for the applications can be found at www.iowacattlemensfoundation.org.
Finalists will participate in a personal interview and presentation in Ames, scheduled for Saturday, April 2, 2016. Each finalist will give a five to eight minute presentation on an issue of their choice that impacts the beef industry, and be interviewed by a panel of judges. Scholarship winners will be announced at the conclusion of the day's events.
Questions about the scholarship program can be directed to Mary Greiman, mary@iabeef.org, or call 641-425-1533.
Corn Growers Applaud Senate Ag Committee Action on GMO Labeling
The National Corn Growers Association today thanked members of the Senate Agriculture Committee who voted to stand with farmers and move forward Sen. Pat Roberts’s bill to address the growing threat of a patchwork of state labeling laws and called for the full Senate to urgently take up this important legislation.
“We find the forward momentum building behind this bill encouraging, and we urge the Senate to quickly pass this bill for the good of America’s farmers and consumers,” said National Corn Growers Association President Chip Bowling, a farmer from Maryland. “U.S. farmers rely on GMOs, a safe, proven technology, to protect our crops from insects, weeds and drought. The FDA should remain the party responsible for important food safety and labeling decisions based in science. Despite the scientific evidence, states such as Vermont are quickly moving toward costly, confusing mandatory labeling legislation pushed forth by agenda-driven activists. We ask the Senate to quickly move forward with this legislation to avoid a situation in which all American consumers pay a high price and gain little actual information.”
Vermont’s mandatory law requiring on-package labels of foods containing ingredients that have been genetically modified takes effect in July, and unless Congress acts swiftly, families, farmers and food companies will face chaos in the market and higher costs. Multiple studies have shown that the associated costs with Vermont’s GMO-labeling law and a subsequent patchwork of state laws will cost American families hundreds of dollars more in groceries each year – with low-income Americans being hit the hardest.
Roberts’s proposal brings continuity to the marketplace, ensuring that consumers have the access to product information they deserve without stigmatizing this safe, proven technology valued by American farmers. The bill, which will go through a markup by the Senate Committee on Agriculture next Thursday, will provide a national framework that places standards in the hands of the U.S. Department of Agriculture and creates a campaign that will educate the public on both the safety of GMOs and on the way in which they can find out more about the foods they purchase.
NCGA, working with partners across the value chain, has pushed for a solution to this issue for more than two years now as a member of the Coalition for Safe Affordable Food.
For more information on the need for a federal labeling standard, visit the Coalition for Safe Affordable Food, at www.CFSAF.org.
Soy Growers Welcome Committee Passage of GMO Labeling Bill
The American Soybean Association applauds the Senate Agriculture Committee for its passage earlier today of legislation from Chairman Pat Roberts that would establish a national framework for the labeling of bioengineered food products, or GMOs. The legislation passed the committee with the support of all 11 Republican members, as well as Democrats Amy Klobuchar, Joe Donnelly and Heidi Heitkamp. ASA President and Delaware farmer Richard Wilkins praised Roberts' leadership on the bill in a statement:
"ASA is extremely pleased to see this bill come through committee, and we are very appreciative of the leadership shown by Chairman Roberts throughout the process. We're also thankful for the Democratic support from Sens. Klobuchar, Donnelly and Heitkamp on this bill, as support from Senate Democrats will be key when the bill reaches the Senate floor in the coming weeks.
"Now, our attention turns to the full Senate, and we will begin our press on senators from both parties to support this legislation. For soybean farmers, the bill represents our continued ability to use biotechnology within our operations. It means growing more while using less, and it means meeting the needs of a demanding American marketplace, and growing global population. We will communicate those benefits to senators every day until this bill is passed and signed into law."
NMPF Supports New Senate Food Labeling Bill Approved Today by Agriculture Committee
The National Milk Producers Federation today urged the full Senate to act quickly on legislation that would establish national regulations to bring consistency and transparency to the labeling of ingredients and processes used in the food supply.
The Senate Agriculture Committee today approved, by a 14-6 vote, a bill introduced last week by its Chairman, Sen. Pat Roberts (R-KS), that would create a common-sense, national food labeling standard offering consumers information about products that contain ingredients such as Genetically Modified Organisms (GMOs). The legislation would preempt state laws that create labeling mandates for foods with ingredients that have been genetically modified.
Food labeling “is an area where we need a clear federal standard, not a piecemeal approach across the 50 states,” said Jim Mulhern, president and CEO of NMPF. “We’ve learned from experience in the dairy sector that we need a strong federal policy governing labeling claims. Otherwise, we’ll end up with an unworkable series of competing and confusing state policies.”
NMPF urged the Senate to expedite passage of Roberts’s measure, in order to prevent confusing marketing environment in the food industry this summer, when Vermont’s new law, requiring labeling of foods containing GMOs, goes into effect on July 1st. The Senate’s approach “will provide information that shoppers want, without requiring that stigmatizing label claims be mandated at the state or federal level,” Mulhern said. “Any requirement, even at the state level, to use labels to call out GMO ingredients is a de facto scarlet letter being forced on many foods, without warrant. Mandatory GMO labels play into the fear-based marketing we see too frequently in the food industry.”
NMPF and its 31 cooperative members co-signed a letter last Tuesday with more than 600 other farm and food groups urging action on Sen. Roberts’ bill by the Senate. The House of Representatives already passed a version of a national food labeling bill last July.
Multiple studies have shown that the associated costs with Vermont’s GMO-labeling law, and a subsequent patchwork of similar state laws, will cost American families hundreds of dollars more in groceries each year – with low-income Americans being hit the hardest.
The Roberts bill “will gives consumers the information they want in a consistent and factual way,” said Mulhern. “It also reaffirms the authority of federal regulators over food safety and labeling, and prevents the creeping development of dozens of different state food labeling laws.”
Genetically modified food ingredients have been proven safe by nearly 2,000 studies from the leading scientific bodies worldwide. Included are the World Health Organization and the American Medical Association. Up to 80 percent of the food available in the United States contains genetically modified ingredients.
Policy to be Focus at Commodity Classic
When corn farmers from around the country gather in New Orleans this week for the 21st annual Commodity Classic convention and trade show, it's not going to be just to enjoy much warmer weather than back on the farm - a series of important policy meetings are also taking place for members and leaders of the National Corn Growers Association.
"Commodity Classic gives us the opportunity not just to celebrate great work, meet with friends and learn about new products and services, it allows growers to get together in one place to shape policy for our organization," said NCGA President Chip Bowling. "This year, all eyes and ears will be focused on the importance of protecting the farm safety net and building profitable demand for our farmers when corn production is high and corn prices are low."
On Wednesday, growers will meet for an issues briefing and open forum, followed by caucuses at the state level, where they will discuss proposed resolutions and organizational priorities to come before NCGA at the two Corn Congress sessions, held Thursday morning and Saturday afternoon. With such topics as potential free trade agreements, ethanol market development and environmental regulations up for discussion, growers will have a lot to talk about this week. Growers will also have the chance to meet with candidates for the NCGA Corn Board for the 2017 fiscal year.
Also this week, growers are scheduled to hear from Val Docini, the administrator of the U.S. Department of Agriculture's Farm Service Agency, and Alexis Taylor, USDA acting under secretary for farm and foreign agricultural services, at the Thursday Corn Congress session. And USDA Secretary Tom Vilsack will speak before several thousand Classic attendees at the show's general session Friday morning.
USDA Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks
Soybeans crushed for crude oil was 4.81 million tons in January 2016, compared to 5.01 million tons in December 2015 and 4.97 million tons in November 2015. Crude oil produced was 1.86 billion pounds down 3 percent from December 2015 and down 2 percent from November 2015. Soybean once refined oil production at 1.30 billion pounds during January 2016 decreased 7 percent from December 2015 and decreased 9 percent from November 2015.
Canola seeds crushed for crude oil was 148.4 thousand tons in January 2016, compared to 165.8 thousand tons in December 2015 and 128.9 thousand tons in November 2015. Canola crude oil produced was 126.1 million pounds down 7 percent from December 2015 but up 17 percent from November 2015. Canola once refined oil production at 123.8 million pounds during January 2016 was up 28 percent from December 2015 and up 26 percent from November 2015. Cottonseeds crushed for crude oil was 131.6 thousand tons in January 2016, compared to 149.6 thousand tons in December 2015 and 135.7 thousand tons in November 2015. Cottonseed crude oil produced was 41.4 million pounds, down 12 percent from December 2015 and down 1 percent from November 2015. Cottonseed once refined oil production at 48.4 million pounds during January 2016 was down 10 percent from December 2015 and down 2 percent from November 2015.
Edible tallow production was 88.9 million pounds during January 2016, up 13 percent from December 2015 and up 6 percent from November 2015. Inedible tallow production was 276.7 million pounds during January 2016, down 4 percent from December 2015 and down 9 percent from November 2015. Technical tallow production was 91.1 million pounds during January 2016, down 3 percent from December 2015 and down 14 percent from November 2015. Choice white grease production at 111.9 million pounds during January 2016 decreased 5 percent from December 2015 and decreased 4 percent from November 2015.
2015 Fats and Oils Oilseed Crushings, Production, Consumption and Stocks Data Published
As part of the Current Agricultural Industrial Reports (CAIR) program, the 2015 Annual Summary of the Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks contains data for May through December of 2015. Annual totals are not included in this report since a partial year was collected and summarized.
While the program was in place during 2015, monthly totals of soybeans crushed for crude oil ranged from 4.04 million tons in September 2015 to 5.10 million tons in October 2015. Crude oil production ranged from 1.53 billion pounds to 1.96 billion pounds. The two regions with the largest amount of
crush were the North and East Region, which is comprised of Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and Virginia, and the Iowa Region.
Canola seeds crushed for crude oil spanned between 99.1 thousand tons crushed in October 2015 to 187.4 thousand tons in September 2015.
Tallow was published in three categories (edible, inedible, and technical). The largest percentage of tallow production was inedible tallow at approximately 63%. Choice white grease production ranged from 107.2 million pounds during August 2015 to 118.8 million pounds in May 2015.
USDA Grain Crushings and Co-Products Production
Total corn consumed for alcohol and other uses was 491.3 million bushels in January 2016. Total corn consumption was down 2 percent from December 2015 and down 1 percent from January 2015. January 2016 usage included 91.6 percent for alcohol and 8.4 percent for other purposes. Corn for beverage alcohol totaled 3.41 million bushels, up 21 percent from December 2015 and up 63 percent from January 2015. Corn for fuel alcohol, at 441.3 million bushels, was down 2 percent from December 2015 and down 1 percent from January 2015. Corn consumed in January 2016 for dry milling fuel production and wet milling fuel production was 89.3 percent and 10.7 percent respectively.
Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.87 million tons during January 2016, down 4 percent from December 2015 but up 2 percent from January 2015. Distillers wet grains (DWG) 65 percent or more moisture was 1.31 million tons in January 2016, down 6 percent from December 2015 and down 11 percent from January 2015.
Wet mill corn gluten feed production was 322.0 thousand tons during January 2016, down 5 percent from December 2015 but up slightly from January 2015. Wet corn gluten feed 40 to 60 percent moisture was 291.9 thousand tons in January 2016, down 5 percent from December 2015 and down 7 percent from January 2015.
2015 Grain Crushings and Co-Products Production
As part of the Current Agricultural Industrial Reports (CAIR) program, the 2015 Annual Summary of the Grain Crushings and Co-Products Production contains data and annual totals for January through December 2015.
Total corn consumed for alcohol and other uses for 2015 was 5.84 million bushels. Corn for beverage alcohol in 2015 totaled 33.9 thousand bushels. Corn for fuel alcohol was 5.22 million bushels in 2015. May 2015 was peak month for total corn consumed.
Dry mill co-product production of distillers dried grains with solubles (DDGS) was 22.3 million tons during 2015. Distillers wet grains (DWG) 65 percent or more moisture was 16 million tons in 2015. Distillers dried grain (DDG) was 5.12 million tons in 2015.
Wet mill corn gluten feed production was 3.90 million tons during 2015. Wet corn gluten feed 40 to 60 percent moisture was 3.63 million tons.
Dry and wet mill carbon dioxide captured was 2.50 million tons in 2015.
USDA Announces Commodity Credit Corporation Lending Rates for March 2016
The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for March 2016. The CCC borrowing rate-based charge for March is 0.500 percent, down from 0.625 percent in February.
The interest rate for crop year commodity loans less than one year disbursed during March is 1.500 percent, down from 1.625 percent in February.
Interest rates for Farm Storage Facility Loans approved for March are as follows, 1.625 percent with seven-year loan terms, down from 2.000 percent in February; 1.875 percent with 10-year loan terms, down from 2.125 percent in February and; 2.000 percent with 12-year loan terms, down from 2.250 percent in February.
Cattleman Testifies to Importance of Voluntary Conservation
Today, Frank Price testified on behalf of the National Cattlemen’s Beef Association to the importance of voluntary conservation during the House Agriculture Subcommittee on Conservation and Forestry hearing “Voluntary Conservation: Utilizing Innovation and Technology”. Price is co-owner and operator of the Frank and Sims Price Ranch in Sterling City, Texas, and recipient of the 2014 NCBA Environmental Stewardship Award. Price, a member of the Texas and Southwestern Cattle Raisers Association and NCBA, told the committee that given the diversity of range lands across the country voluntary conservation programs are key to achieving meaningful results.
“A one-size fits all approach that accompanies a top-down regulation does not work,” said Price. “It’s the voluntary part of the conservation practices that really make them work for ranchers. We’ve had success using some of these conservation programs, but just because a system works for us does not mean it is right for everybody. If these programs were to become mandatory, the rules and regulations that follow would make it harder for farmers and ranchers to use unique conservation practices to ensure their individual operations thrive.”
Price stresses that voluntary conservation efforts have allowed him and his son to achieve their top goals: ensuring the ranch remains profitable and that they leave the land in better condition for future generations. While drought and wildfire decimated their ranch in 2011 and 2012, conservation and grazing management allowed them to improve their rangelands through these difficult times. One of the programs he says has helped him achieve their goals is the Environmental Quality Incentive Program.
“When wildfire came through our ranch in 2011, we had to rebuild miles of fencing,” said Price. “EQIP helped us do it through a cost-share. One of the reasons EQIP has become popular among ranchers is because it is a working-lands program. Conservation programs that keep land in production and do not limit its use are the best for both the ranchers and conserving our resources.”
While drought is a constant problem in West Texas, innovative practices and voluntary conservation programs have allowed the Prices to improve their ranch and make their grasslands resilient. For Price, the success of conservation and the ranch economy are not at odds in ensuring we can sustain our country’s natural resources and our way of life for generations.
“I believe that economic activity and conservation go hand-in-hand,” said Price. “We are always looking for new, innovative conservation programs that will have tangible benefits for the environment and help improve our ranching lands. USDA’s conservation programs have been a great asset to cattle producers and it is important that these programs continue to be implemented in the same practical, producer friendly, and voluntary manner for years to come.”
Pork Industry - A Little Profit for 2016
The outlook for the pork industry has turned somewhat more optimistic in recent weeks. The sources of that optimism include a $2 to $4 increase in spring and summer lean hog futures prices since the first of the year and slightly lower new-crop soybean meal prices. According to Purdue University Extension economist Chris Hurt, a bit higher hog prices and a little lower cost add to the potential for a profitable year.
"Currently, the 2016 pork outlook looks a lot like 2015, which featured losses in the first and fourth quarters with the second and third quarters providing some profit," says Hurt. "That pattern appears to be repeating this year. However, the industry is expected to register a $4 per head profit in 2016 in comparison to an estimated $3 per head loss last year."
Hurt says pork supplies in the first two months of 2016 were down about 1 percent from the same period a year ago. This is in alignment with the last hog inventory count from USDA. The relative accuracy of the last USDA count adds credibility to using their inventory numbers as a measure of spring and summer supplies.
"Based on that last report, March, April, and May pork production is expected to be down about 1 to 2 percent," Hurt says. "Summer pork production is expected to be unchanged from year-ago levels and fall production is expected to rise by 2 percent. These numbers would indicate that domestic pork production would be unchanged for the year, while USDA analysts suggest that production will rise by 2 percent."
The estimated cost of farrow-to-finish pork production in calendar 2015 was near $51 per live hundredweight. Hurt believes that is expected to drop a bit in 2016 to average near $50. The decline is related to lower costs for soybean meal. In 2015, high-protein soybean meal at Decatur, Ill. averaged $341 per ton, but is expected to drop to about $283 for all of 2016. If so, Hurt says this will be the lowest cost meal since 2007 when it averaged $231 per ton. For corn, the U.S. average price received for calendar 2015 was $3.71 per bushel. Current futures prices suggest that price will be similar for calendar 2016.
Live hog prices in 2015 averaged $50.23, according to USDA. "My current forecast for 2016 is for hog prices to average about $51 per live hundredweight," Hurt says. "Quarterly price estimates are $45 to $48 in the first quarter, $54 to $58 in the second quarter, $53 to $57 in the third quarter, and $45 to $49 in the final quarter.
"These forecasts suggest that the average cost farrow-to-finish pork producer lost about $3 per head in 2015, a near breakeven year in which producers nearly covered all of their costs, including depreciation and all hired and family labor costs," Hurt says. "The year of 2016 also appears to be one near breakeven, but with a more positive tone of about $4 per head of profit above all costs."
As the spring planting season approaches, Hurt says pork producers are well aware of the uncertainties of the upcoming growing season. Corn and soybean meal prices are at the lowest levels in nine years. Harmful growing season weather in the United States would increase feed costs. How could producers help protect against some of these price increases should they occur?
According to Hurt, one possible answer is to buy December 2016 corn calls and December 2016 soybean meal calls. At this writing, the premium for at-the-money December 2016 corn call options was 28.5 cents per bushel. If a pork producer were to buy the equivalent bushels to cover one year of feeding needs, this premium would raise the cost of production by an estimated $1.25 per live hundredweight. The at-the-money December 2016 soybean meal call option had a premium of $16.60 per ton. If a one-year's was purchased for the hog operation, the premium costs adds 44 cents per live hundredweight to costs. Therefore, to cover both corn and soybean meal with new-crop call options would be about $1.69 per live hundredweight.
"The calls provide potential financial protection if the new-crop futures prices for corn and soybean meal were to rise," Hurt says. "They do not eliminate the opportunity to buy corn and meal with even lower futures prices should another high-yield year develop. However, one has to pay the option premiums and any transaction costs for these rights.
"The more difficult question is 'should' pork producers use options to protect against the potential for rising feed prices," Hurt says. "That depends upon the risk preferences of each producer, their perception of the risk of harmful weather this summer, their financial situation, and their overall outlook."
Land O’Lakes, Inc. Announces Record Earnings in 2015
Land O’Lakes, Inc. today announced record net earnings of $308 million, up from $266 million in 2014.
“Delivering record earnings in the current market environment underscores the strength of Land O’Lakes’ core business strategy,” said Chris Policinski, president and CEO of Land O’Lakes, Inc. “This was a record earnings year for Land O’Lakes in spite of challenging commodity markets, declining on-farm income and increasing industry consolidation. Additionally, we completed the largest merger in our company history and extended our global reach to Africa.”
In 2015, Land O’Lakes successfully merged United Suppliers, Inc. crop protection and seed business with Winfield Solutions, LLC. Land O’Lakes also purchased a majority ownership stake in Villa Crop Protection, a leading crop protection products company based in South Africa, the company’s first commercial investment in Africa.
Land O’Lakes had a strong financial year in 2015. The balance sheet is the strongest in its 94-year history. Cash returned to members in 2015 totaled $161 million, the seventh consecutive year that cash returned to members has exceeded $100 million. Net sales in 2015 totaled $13 billion.
For the quarter ending December 31, 2015, Land O’Lakes delivered quarterly sales of $3.3 billion, a slight decrease in year-over-year sales. Net earnings for the fourth quarter were $119.4 million, with Dairy Foods, Feed and Crop Inputs delivering strong quarterly earnings well ahead of the same quarter in 2014.
Business Segments
Dairy Foods reported 2015 net sales of $4 billion in 2015, down from 2014. Pretax earnings for Dairy Foods totaled $83.1 million in 2015, up from $39.7 million in 2014. Dairy Foods earnings reflect a one-time gain on the sale of Land O’Lakes’ 35 percent interest in Advanced Food Products, LLC. The business saw growth in butter, branded cheese, foodservice and refrigerated desserts and successfully managed the downside in milk powder and overall commodity markets.
Crop Inputs reported 2015 net sales of $4.8 billion in 2015, down slightly from 2014. Pretax earnings totaled $189.6 million in 2015, down from 2014. Low commodity prices impacted results across the portfolio and was offset to some extent through strength in CROPLAN® corn, soybeans and alfalfa. The business continued to focus on productivity, sustainability and decision tools to help farmers make the right choices to increase on-farm productivity using fewer resources. The business introduced nine new products, experienced a strong year for data at more than 200 Answer Plot® locations across the country and world, and provided greater access to data and insights through decision technologies like the R7® Tool and AnswerTech™ platform.
Feed reported 2015 net sales of $4.2 billion, down from 2014. However, pretax earnings of $57.8 million in 2015 were up from $27.8 million in 2014. The core Purina-branded feed lines delivered record-setting performance as a result of the execution of operational strategies that drove market share and accelerated growth. The business experienced growth in all customer channels. Land O’Lakes, Inc. also launched PMI Nutritional Additives, a new segment of the business focused on products that optimize nutrient utilization and gut health and integrity.
Additionally, Land O’Lakes completed the divestiture of the commodity egg business, operated through Moark, LLC, which contributed pre-tax earnings of $13 million.
EPA Orders Widely Used Insecticide Pulled From Market
(AP) -- Federal regulators on Tuesday ordered the makers of a widely used insecticide to take it off the market because it harms tiny aquatic animals.
The Environmental Protection Agency ordered Bayer CropScience and Nichino America to cancel production of all products containing flubendiamide. The decision comes after studies showed the insecticide harms species at the bottom of aquatic food chains in streams and ponds, impacting the fish that feed on them.
Flubendiamide is used on more than 200 crops, including soybeans, tobacco, cotton and numerous varieties of lettuce, fruits and nuts.
"EPA concluded that continued use of the product would result in unreasonable adverse effects on the environment," the agency said in a statement issued Tuesday. "EPA had issued a time-limited registration to the companies with conditions that were understood and agreed upon. If unreasonable adverse effects on the environment were found by EPA, the companies would submit a request for voluntary cancellation of all flubendiamide registrations within one week of EPA notification."
In January, the EPA asked the companies to voluntarily withdraw products containing the problematic insecticide. After they refused, regulators moved to cancel the government registration required to manufacture the product.
Flubendiamide is the active ingredient in Bayer's Belt pesticide. The German chemical giant says its product is safe to use and has sought an administrative law review of the agency's decision.
The company says the methods used by the EPA exaggerated the environmental risk posed by the chemical and would deny farmers access to "a critical pest management tool."
"We are disappointed the EPA places so much trust on computer modeling and predictive capabilities when real-world monitoring shows no evidence of concern after seven years of safe use," Peter Coody, Bayer's vice president of environmental safety, said last month.
Nichino America is a subsidiary of the Japanese chemical maker Nihon Nohyaku Co. A woman who answered the phone Tuesday at the company's U.S. headquarters hung up when a reporter asked for comment on the EPA's decision.
The EPA said crops already treated with flubendiamide or that may be treated with existing supplies can still be sold.
MONSANTO, AMERICAN RED CROSS ANNOUNCE SAFETY PARTNERSHIP
Monsanto Company and the American Red Cross announced today a three-year partnership that adds rural safety content to the American Red Cross First Aid App. The collaboration will help ensure that individuals and families in both rural and urban communities have access to life-saving information and other safety resources.
“Spring planting will begin soon in regions across the United States, and may have already started in some locations,” said Rod Denton, Global Environmental Safety & Health Lead at Monsanto. ”It’s extremely important to keep safety top-of-mind during this busy time of year for farmers and everyone involved in U.S. agriculture. The Red Cross First Aid App and its new farm-focused content will be a valuable safety resource for both our customers and employees.”
Monsanto is the exclusive sponsor of the Red Cross’ award-winning first aid app, which now features videos, tips and other interactive content to promote topics such as child safety and emergency preparedness on the farm, as well as safety content related to all-terrain vehicles (ATVs), grain bins, farm electrical safety and more. Designed for Apple® and Android® mobile devices and tablets, the app features preloaded content that gives instant access to all safety information at any time, regardless of internet or data connection. To date, the app has been downloaded more than 3 million times.
“We are extremely grateful to Monsanto for their help bringing this lifesaving information to our agricultural communities. Our rural families will be safer and better prepared thanks to this partnership with Monsanto,” said Cindy Erickson, CEO, American Red Cross of Eastern Missouri.
“The Red Cross has had a strong presence in local communities throughout the country for more than 135 years,” said Denton. “The new content mirrors our strong focus on safety and support for rural communities, and we’re proud to partner with them through this unique sponsorship.”
Download the FREE Red Cross First Aid app by texting "GETFIRST" to 90999, searching "Red Cross First Aid" in the Apple® iTunes® app store, Google Play™ store or Amazon® Marketplace or by going to redcross.org/apps.
Zoetis Launches CLARIFIDE® Plus
Zoetis today announced the launch of CLARIFIDE® Plus, the first commercially available, U.S.-based genomic test that gives dairy producers the ability to directly predict disease risk in Holstein cattle.
CLARIFIDE Plus includes new genomic predictions for wellness traits that provide direct indication of the genetic risk factors for six of the most common and costly animal health challenges on dairies. CLARIFIDE Plus also includes an exclusive new selection index, called the Dairy Wellness Profit Index™ (DWP$™). By using DWP$ for their animal ranking, producers may incorporate all economically important traits, including the new wellness traits and the polled trait*, to make more comprehensive and profitable genetic selection decisions.
“For the first time, dairy producers can genomically select heifers based on wellness and other economically important traits to help build a healthier, more productive herd,” said David Erf, geneticist, Zoetis Dairy Technical Services. “CLARIFIDE Plus offers dairy producers an unprecedented opportunity to test Holstein animals early in life in order to make genetic management decisions that can significantly impact their future operation success.”
New genomic predictions for wellness traits
To help producers manage and reduce risk for costly health events, CLARIFIDE Plus provides reliable assessments at an early age for these six common dairy health challenges:
· Mastitis
· Lameness
· Metritis
· Retained placenta
· Displaced abomasum
· Ketosis
CLARIFIDE Plus derives genetic predictions based on data collected from millions of health records within U.S. commercial herds, so U.S. producers can be confident results will be relevant to their operations. CLARIFIDE Plus predictions have an unprecedented average estimated reliability of 49% to 51% for the six traits in young animals, compared with no existing information without CLARIFIDE Plus testing.
“We did a lot of research, which was published over 10 years ago, to show there are genetic differences between sire families and their chances of developing health challenges such as milk fever or mastitis,” said Kent Weigel, PhD, professor and chair of the Department of Dairy Science at University of Wisconsin-Madison. “Finally seeing this research get to the point of being an available tool that producers can use for making genetic selection decisions to raise animals with reduced risk for health problems is really encouraging. When you have traits that have an emphasis on health, longevity and wellness, all integrated into one package, this allows producers to make decisions earlier and invest in raising healthy animals. Healthier cows stay in the herd longer and make an enormous difference in a herd’s profitability.”
Use of economic indexes help support more profitable solutions
Zoetis also developed two proprietary economic selection indexes in CLARIFIDE Plus. These selection indexes are a critical component of all genetic selection strategies, as they provide a path for dairy producers to be able to select for comprehensive genetic improvement across a host of traits. These new indexes are:
· Dairy Wellness Profit Index (DWP$): CLARIFIDE Plus is the only genomic test that includes this multitrait selection index based on novel health traits along with other economically important traits that affect dairy production, profitability and saleable milk. DWP$ combines production, fertility, type and longevity traits, as well as the new wellness traits, to provide opportunity to make more profitable animal rankings and decisions.
· Wellness Trait Index™ (WT$™): This multitrait selection index focuses solely on the wellness traits — mastitis, lameness, metritis, retained placenta, displaced abomasum, ketosis and polled. This selection index directly estimates differences in expected profitability related to differences in genetic risk for disease.
Together, all of this information combined in CLARIFIDE Plus gives producers the most comprehensive package of trait predictions for Holstein cattle, enabling use of genetic selection along with good herd management to help reach their herd health and profitability goals.
CLARIFIDE Plus builds on the proven success of CLARIFIDE®, the most widely used genomic test in the dairy industry.1 As with CLARIFIDE, the new genomic test comes with industry-leading support to help producers make the best use of their genomic information and integrate test results with other Zoetis management solutions to achieve desired outcomes.
Erin Laborie, Nebraska Extension Educator
Prolonged periods of mud and moisture in the feedlot can significantly hinder cattle performance and profitability. When cattle are standing in four to eight inches of mud, gain can decrease by nearly 15 percent. A feedlot with mud that is belly deep can depress gain by nearly 25 percent. Consequently, the negative impact of mud on feed efficiency can result in up to a 56 percent increase in cost of gain as more days on feed are necessary to reach finish.
Several factors figure in to this profit loss situation:
1) Cattle make fewer trips to the feedbunk during muddy conditions which results in lower feed intake.
2) Cattle utilize more energy trucking through the mud to reach the feedbunk. Muddy conditions can increase energy requirements by 10 percent.
3) Cattle can tolerate extremely cold temperatures when their hair coat is dry. However, if their hair coat is wet, maintenance requirements increase two percent for every degree below 30 degrees. For example, a feedlot steer has a 20 percent increase in requirements when his hair coat is wet and the outside temperature is 20 degrees.
Pen maintenance and design can greatly influence the level of moisture in the feedlot. Proper drainage and prevention of runoff water from entering pens is the first step in reducing mud within the pen. A slope of two to five percent from the pad to the lower end of the pen will provide adequate drainage; a three percent slope is ideal. Providing adequate space per animal can reduce mud depth especially in the high traffic areas around water troughs and feedbunks. It is recommended that finishing cattle have 250 square feet per animal.
Mounds should be utilized to provide a dry area for cattle to rest. They should be four to six feet tall, provide 20 to 40 square feet of space per head on each side of the mound, and be constructed so that cattle can step off the mound and onto the feeding apron without having to move through mud.
When muddy conditions do occur, a box scraper can be used to remove some of the mud. Frequent removal of excess manure and bedding will reduce moisture retention and help pens dry out more quickly. Considering every 10 inches of snow equates to about an inch of moisture, be prepared to remove snow before it melts.
Although adverse weather conditions cannot always be predicted or prevented, preparing for these unfavorable circumstances by having a plan in place can help. For more information, see “Mud Effects on Feedlot Cattle” in the 2011 Nebraska Beef Cattle Report (http://beef.unl.edu/c9405542-1c41-4b9c-a143-f192e1e72917.pdf). Feedlot design is also discussed in UNL Extension Circular EC777, “Planning a New Cattle Feedlot” (http://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=5873&context=extensionhist).
Private Applicators Need Certification
All farmers who use restricted use pesticide must have a current certification card according to the Nebraska Department of Agriculture.
The Nebraska Extension is conducting the following training sessions which are approved for renewal or initial certification according to Nebraska Educator Larry Howard of Cuming County. Again this year, there will be a fee charged to support the cost of materials. Producers are reminded to bring their old cards or the letter with the form at the bottom that they received from the Nebraska Department of Agriculture if they are recertifying.
Each session last approximately three hours and will be held in West Point at the Nielsen Community Center on Monday, March 14 at 1:30 p.m. and 7:00 p.m.
For additional information, contact the Nebraska Extension office in Cuming County at 402/372-6006.
Nebraska Beef Council Seeks Director Candidates
The Nebraska Beef Council will be holding board of director elections in 5 of the 9 districts in 2016. Producers interested in becoming a beef council director are encouraged to attend one of the following informational sessions:
(Each session will last approximately 1 hour)
March 15, 2016 - Wayne, UNL Extension Office, 1:00 p.m.
March 15, 2016 - Columbus Public Library, 5:00 p.m.
March 16, 2016 - Kearney, Nebraska Beef Council Office, 9:00 a.m.
March 16, 2016 - Broken Bow Public Library, 1:00 p.m.
March 17, 2016 -Box Butte, UNL Extension Office, Alliance, 1:00 p.m.
*Additional sessions will be added if necessary
Election packets will be available on April 1, 2016 and must be returned to the Nebraska Beef Council by June 15, 2016.
For more information, including districts to hold elections in 2016 and candidate requirements, please log on to www.nebeef.org or call 800-241-5326.
UNL Block and Bridle PorkFest
Dr. Benny Mote, NE Swine Extension Specialist
This is the first year that UNL’s Block & Bridle is putting on a PorkFest. It is led by the newly formed Future Pork Leaders group. I am really excited by this new found interest in pork at the undergrad level and want to keep feeding that fire. They are a little behind getting everything put out in a timely manner, but have everything on track now. If you are going to be anywhere near Lincoln next Thursday, you can purchase tickets below for a good meal. Also if you are interested in entering the rib contest, let me know and I can put you in contact with the person running that portion of the event.
Porkfest will be held March 10th from 5:30-7:30 in the Animal Science Commons. Your ticket gets you a meal (pork loin sandwich, baked potato, beans, cookie, drink) and in to watch the Bacon Eating Contest!
Tickets are available online at this link https://www.eventbrite.com/e/unl-block-and-bridle-porkfest-tickets-21417019883?utm-medium=discovery&utm-campaign=social&utm-content=attendeeshare&utm-source=cp&utm-term=listing.
Smith Featured at Briefing on Lifting Ethanol Regulations to Increase Consumer Choice
Congressman Adrian Smith (R-NE) presented at a briefing today to educate congressional staff on the impacts of an Environmental Protection Agency (EPA) regulation which currently prevents the sale of E15 during the summer months.
Though E15 is cheaper and has a higher octane rating than both E10 and standard gasoline, retailers are unable to market E15 during the summer months due to EPA volatility standards. The EPA granted E10 a waiver from these volatility standards in 1990, but this waiver has not yet been extended to E15.
In April 2015, Smith introduced H.R. 1736 to extend this waiver to E15, allowing it to be sold year-round.
“Ethanol provides consumers with greater choice at the pump, and retailers should have the opportunity to market more options to meet our country’s fuel demand,” Smith said. “For many retailers, the steps required to comply with the EPA’s arbitrary regulation makes E15 uncompetitive. Today’s panel made the case for extending to E15 the waiver already granted to E10 in order to diversify our fuel supply, increase consumer choice, and promote American energy independence.”
Poll Reaffirms Iowans Support of Ethanol and RFS
A new poll conducted by Selzer and Company and released by Mediacom and the Des Moines Register yesterday showed 71 percent of Iowans support ethanol and the Renewable Fuel Standard (RFS). More importantly Republicans’ support for the federal policy has grown since the Iowa caucuses. In a Des Moines Register/Bloomberg poll this past December, Republicans surveyed supported the RFS by 61 percent. The most recent poll conducted by the Des Moines Register/Mediacom showed a five percent growth in support among Republicans to 66 percent, while support among Democrats stayed consistent.
“Iowans know ethanol and the RFS are allowing America’s farmers and innovators to produce clean, secure, renewable fuel right here at home that reduces toxic emissions and is better for the air we all breathe. The immense benefits and potential of biofuels, like ethanol, plays a critical role in America’s energy policy and in developing a 21st century fuel for 21st century vehicles,” noted Tom Buis, co-chair of Growth Energy.
Buis added, “Contrary to the oil industry spin, this poll reinforces the fact that the issue gained ground with Iowans during the 2016 caucuses and now they support it in even greater numbers than before. The relevancy of the issue is why an overwhelming 83 percent of Iowans caucused for pro-RFS candidates in 2016, higher percentage than in 2012.”
Furthermore, as the Des Moines Register highlighted overwhelming support for the RFS, regardless of political party affiliation, noting that 66 percent of Republicans, 76 percent of Democrats and 71 percent of independents are in favor of the RFS. Additionally, the Des Moines Register noted that, “Iowans who consider themselves tea party supporters also like it, with 64 percent in favor.”
Iowa Cattlemen’s Foundation scholarship deadline is March 15
High school seniors who have been involved in cattle or beef activities may be eligible for scholarships from the Iowa Cattlemen's Foundation. Eligible students must graduate from high school this year, and meet any of these criteria:
- received Youth Beef Team training,
- completed the Masters of Beef Advocacy, or
- served as a county Beef Ambassador/Queen/Princess
Candidates will compete for $1,000 scholarships, and up to three scholarships will be awarded.
An additional $500 will be awarded to any $1,000 scholarship winner who has completed the online course for MBA (Master of Beef Advocacy) by the time of the personal interviews in April.
Applications for the scholarship must be emailed or postmarked by March 15, 2016. The complete guidelines for the applications can be found at www.iowacattlemensfoundation.org.
Finalists will participate in a personal interview and presentation in Ames, scheduled for Saturday, April 2, 2016. Each finalist will give a five to eight minute presentation on an issue of their choice that impacts the beef industry, and be interviewed by a panel of judges. Scholarship winners will be announced at the conclusion of the day's events.
Questions about the scholarship program can be directed to Mary Greiman, mary@iabeef.org, or call 641-425-1533.
Corn Growers Applaud Senate Ag Committee Action on GMO Labeling
The National Corn Growers Association today thanked members of the Senate Agriculture Committee who voted to stand with farmers and move forward Sen. Pat Roberts’s bill to address the growing threat of a patchwork of state labeling laws and called for the full Senate to urgently take up this important legislation.
“We find the forward momentum building behind this bill encouraging, and we urge the Senate to quickly pass this bill for the good of America’s farmers and consumers,” said National Corn Growers Association President Chip Bowling, a farmer from Maryland. “U.S. farmers rely on GMOs, a safe, proven technology, to protect our crops from insects, weeds and drought. The FDA should remain the party responsible for important food safety and labeling decisions based in science. Despite the scientific evidence, states such as Vermont are quickly moving toward costly, confusing mandatory labeling legislation pushed forth by agenda-driven activists. We ask the Senate to quickly move forward with this legislation to avoid a situation in which all American consumers pay a high price and gain little actual information.”
Vermont’s mandatory law requiring on-package labels of foods containing ingredients that have been genetically modified takes effect in July, and unless Congress acts swiftly, families, farmers and food companies will face chaos in the market and higher costs. Multiple studies have shown that the associated costs with Vermont’s GMO-labeling law and a subsequent patchwork of state laws will cost American families hundreds of dollars more in groceries each year – with low-income Americans being hit the hardest.
Roberts’s proposal brings continuity to the marketplace, ensuring that consumers have the access to product information they deserve without stigmatizing this safe, proven technology valued by American farmers. The bill, which will go through a markup by the Senate Committee on Agriculture next Thursday, will provide a national framework that places standards in the hands of the U.S. Department of Agriculture and creates a campaign that will educate the public on both the safety of GMOs and on the way in which they can find out more about the foods they purchase.
NCGA, working with partners across the value chain, has pushed for a solution to this issue for more than two years now as a member of the Coalition for Safe Affordable Food.
For more information on the need for a federal labeling standard, visit the Coalition for Safe Affordable Food, at www.CFSAF.org.
Soy Growers Welcome Committee Passage of GMO Labeling Bill
The American Soybean Association applauds the Senate Agriculture Committee for its passage earlier today of legislation from Chairman Pat Roberts that would establish a national framework for the labeling of bioengineered food products, or GMOs. The legislation passed the committee with the support of all 11 Republican members, as well as Democrats Amy Klobuchar, Joe Donnelly and Heidi Heitkamp. ASA President and Delaware farmer Richard Wilkins praised Roberts' leadership on the bill in a statement:
"ASA is extremely pleased to see this bill come through committee, and we are very appreciative of the leadership shown by Chairman Roberts throughout the process. We're also thankful for the Democratic support from Sens. Klobuchar, Donnelly and Heitkamp on this bill, as support from Senate Democrats will be key when the bill reaches the Senate floor in the coming weeks.
"Now, our attention turns to the full Senate, and we will begin our press on senators from both parties to support this legislation. For soybean farmers, the bill represents our continued ability to use biotechnology within our operations. It means growing more while using less, and it means meeting the needs of a demanding American marketplace, and growing global population. We will communicate those benefits to senators every day until this bill is passed and signed into law."
NMPF Supports New Senate Food Labeling Bill Approved Today by Agriculture Committee
The National Milk Producers Federation today urged the full Senate to act quickly on legislation that would establish national regulations to bring consistency and transparency to the labeling of ingredients and processes used in the food supply.
The Senate Agriculture Committee today approved, by a 14-6 vote, a bill introduced last week by its Chairman, Sen. Pat Roberts (R-KS), that would create a common-sense, national food labeling standard offering consumers information about products that contain ingredients such as Genetically Modified Organisms (GMOs). The legislation would preempt state laws that create labeling mandates for foods with ingredients that have been genetically modified.
Food labeling “is an area where we need a clear federal standard, not a piecemeal approach across the 50 states,” said Jim Mulhern, president and CEO of NMPF. “We’ve learned from experience in the dairy sector that we need a strong federal policy governing labeling claims. Otherwise, we’ll end up with an unworkable series of competing and confusing state policies.”
NMPF urged the Senate to expedite passage of Roberts’s measure, in order to prevent confusing marketing environment in the food industry this summer, when Vermont’s new law, requiring labeling of foods containing GMOs, goes into effect on July 1st. The Senate’s approach “will provide information that shoppers want, without requiring that stigmatizing label claims be mandated at the state or federal level,” Mulhern said. “Any requirement, even at the state level, to use labels to call out GMO ingredients is a de facto scarlet letter being forced on many foods, without warrant. Mandatory GMO labels play into the fear-based marketing we see too frequently in the food industry.”
NMPF and its 31 cooperative members co-signed a letter last Tuesday with more than 600 other farm and food groups urging action on Sen. Roberts’ bill by the Senate. The House of Representatives already passed a version of a national food labeling bill last July.
Multiple studies have shown that the associated costs with Vermont’s GMO-labeling law, and a subsequent patchwork of similar state laws, will cost American families hundreds of dollars more in groceries each year – with low-income Americans being hit the hardest.
The Roberts bill “will gives consumers the information they want in a consistent and factual way,” said Mulhern. “It also reaffirms the authority of federal regulators over food safety and labeling, and prevents the creeping development of dozens of different state food labeling laws.”
Genetically modified food ingredients have been proven safe by nearly 2,000 studies from the leading scientific bodies worldwide. Included are the World Health Organization and the American Medical Association. Up to 80 percent of the food available in the United States contains genetically modified ingredients.
Policy to be Focus at Commodity Classic
When corn farmers from around the country gather in New Orleans this week for the 21st annual Commodity Classic convention and trade show, it's not going to be just to enjoy much warmer weather than back on the farm - a series of important policy meetings are also taking place for members and leaders of the National Corn Growers Association.
"Commodity Classic gives us the opportunity not just to celebrate great work, meet with friends and learn about new products and services, it allows growers to get together in one place to shape policy for our organization," said NCGA President Chip Bowling. "This year, all eyes and ears will be focused on the importance of protecting the farm safety net and building profitable demand for our farmers when corn production is high and corn prices are low."
On Wednesday, growers will meet for an issues briefing and open forum, followed by caucuses at the state level, where they will discuss proposed resolutions and organizational priorities to come before NCGA at the two Corn Congress sessions, held Thursday morning and Saturday afternoon. With such topics as potential free trade agreements, ethanol market development and environmental regulations up for discussion, growers will have a lot to talk about this week. Growers will also have the chance to meet with candidates for the NCGA Corn Board for the 2017 fiscal year.
Also this week, growers are scheduled to hear from Val Docini, the administrator of the U.S. Department of Agriculture's Farm Service Agency, and Alexis Taylor, USDA acting under secretary for farm and foreign agricultural services, at the Thursday Corn Congress session. And USDA Secretary Tom Vilsack will speak before several thousand Classic attendees at the show's general session Friday morning.
USDA Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks
Soybeans crushed for crude oil was 4.81 million tons in January 2016, compared to 5.01 million tons in December 2015 and 4.97 million tons in November 2015. Crude oil produced was 1.86 billion pounds down 3 percent from December 2015 and down 2 percent from November 2015. Soybean once refined oil production at 1.30 billion pounds during January 2016 decreased 7 percent from December 2015 and decreased 9 percent from November 2015.
Canola seeds crushed for crude oil was 148.4 thousand tons in January 2016, compared to 165.8 thousand tons in December 2015 and 128.9 thousand tons in November 2015. Canola crude oil produced was 126.1 million pounds down 7 percent from December 2015 but up 17 percent from November 2015. Canola once refined oil production at 123.8 million pounds during January 2016 was up 28 percent from December 2015 and up 26 percent from November 2015. Cottonseeds crushed for crude oil was 131.6 thousand tons in January 2016, compared to 149.6 thousand tons in December 2015 and 135.7 thousand tons in November 2015. Cottonseed crude oil produced was 41.4 million pounds, down 12 percent from December 2015 and down 1 percent from November 2015. Cottonseed once refined oil production at 48.4 million pounds during January 2016 was down 10 percent from December 2015 and down 2 percent from November 2015.
Edible tallow production was 88.9 million pounds during January 2016, up 13 percent from December 2015 and up 6 percent from November 2015. Inedible tallow production was 276.7 million pounds during January 2016, down 4 percent from December 2015 and down 9 percent from November 2015. Technical tallow production was 91.1 million pounds during January 2016, down 3 percent from December 2015 and down 14 percent from November 2015. Choice white grease production at 111.9 million pounds during January 2016 decreased 5 percent from December 2015 and decreased 4 percent from November 2015.
2015 Fats and Oils Oilseed Crushings, Production, Consumption and Stocks Data Published
As part of the Current Agricultural Industrial Reports (CAIR) program, the 2015 Annual Summary of the Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks contains data for May through December of 2015. Annual totals are not included in this report since a partial year was collected and summarized.
While the program was in place during 2015, monthly totals of soybeans crushed for crude oil ranged from 4.04 million tons in September 2015 to 5.10 million tons in October 2015. Crude oil production ranged from 1.53 billion pounds to 1.96 billion pounds. The two regions with the largest amount of
crush were the North and East Region, which is comprised of Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and Virginia, and the Iowa Region.
Canola seeds crushed for crude oil spanned between 99.1 thousand tons crushed in October 2015 to 187.4 thousand tons in September 2015.
Tallow was published in three categories (edible, inedible, and technical). The largest percentage of tallow production was inedible tallow at approximately 63%. Choice white grease production ranged from 107.2 million pounds during August 2015 to 118.8 million pounds in May 2015.
USDA Grain Crushings and Co-Products Production
Total corn consumed for alcohol and other uses was 491.3 million bushels in January 2016. Total corn consumption was down 2 percent from December 2015 and down 1 percent from January 2015. January 2016 usage included 91.6 percent for alcohol and 8.4 percent for other purposes. Corn for beverage alcohol totaled 3.41 million bushels, up 21 percent from December 2015 and up 63 percent from January 2015. Corn for fuel alcohol, at 441.3 million bushels, was down 2 percent from December 2015 and down 1 percent from January 2015. Corn consumed in January 2016 for dry milling fuel production and wet milling fuel production was 89.3 percent and 10.7 percent respectively.
Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.87 million tons during January 2016, down 4 percent from December 2015 but up 2 percent from January 2015. Distillers wet grains (DWG) 65 percent or more moisture was 1.31 million tons in January 2016, down 6 percent from December 2015 and down 11 percent from January 2015.
Wet mill corn gluten feed production was 322.0 thousand tons during January 2016, down 5 percent from December 2015 but up slightly from January 2015. Wet corn gluten feed 40 to 60 percent moisture was 291.9 thousand tons in January 2016, down 5 percent from December 2015 and down 7 percent from January 2015.
2015 Grain Crushings and Co-Products Production
As part of the Current Agricultural Industrial Reports (CAIR) program, the 2015 Annual Summary of the Grain Crushings and Co-Products Production contains data and annual totals for January through December 2015.
Total corn consumed for alcohol and other uses for 2015 was 5.84 million bushels. Corn for beverage alcohol in 2015 totaled 33.9 thousand bushels. Corn for fuel alcohol was 5.22 million bushels in 2015. May 2015 was peak month for total corn consumed.
Dry mill co-product production of distillers dried grains with solubles (DDGS) was 22.3 million tons during 2015. Distillers wet grains (DWG) 65 percent or more moisture was 16 million tons in 2015. Distillers dried grain (DDG) was 5.12 million tons in 2015.
Wet mill corn gluten feed production was 3.90 million tons during 2015. Wet corn gluten feed 40 to 60 percent moisture was 3.63 million tons.
Dry and wet mill carbon dioxide captured was 2.50 million tons in 2015.
USDA Announces Commodity Credit Corporation Lending Rates for March 2016
The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for March 2016. The CCC borrowing rate-based charge for March is 0.500 percent, down from 0.625 percent in February.
The interest rate for crop year commodity loans less than one year disbursed during March is 1.500 percent, down from 1.625 percent in February.
Interest rates for Farm Storage Facility Loans approved for March are as follows, 1.625 percent with seven-year loan terms, down from 2.000 percent in February; 1.875 percent with 10-year loan terms, down from 2.125 percent in February and; 2.000 percent with 12-year loan terms, down from 2.250 percent in February.
Cattleman Testifies to Importance of Voluntary Conservation
Today, Frank Price testified on behalf of the National Cattlemen’s Beef Association to the importance of voluntary conservation during the House Agriculture Subcommittee on Conservation and Forestry hearing “Voluntary Conservation: Utilizing Innovation and Technology”. Price is co-owner and operator of the Frank and Sims Price Ranch in Sterling City, Texas, and recipient of the 2014 NCBA Environmental Stewardship Award. Price, a member of the Texas and Southwestern Cattle Raisers Association and NCBA, told the committee that given the diversity of range lands across the country voluntary conservation programs are key to achieving meaningful results.
“A one-size fits all approach that accompanies a top-down regulation does not work,” said Price. “It’s the voluntary part of the conservation practices that really make them work for ranchers. We’ve had success using some of these conservation programs, but just because a system works for us does not mean it is right for everybody. If these programs were to become mandatory, the rules and regulations that follow would make it harder for farmers and ranchers to use unique conservation practices to ensure their individual operations thrive.”
Price stresses that voluntary conservation efforts have allowed him and his son to achieve their top goals: ensuring the ranch remains profitable and that they leave the land in better condition for future generations. While drought and wildfire decimated their ranch in 2011 and 2012, conservation and grazing management allowed them to improve their rangelands through these difficult times. One of the programs he says has helped him achieve their goals is the Environmental Quality Incentive Program.
“When wildfire came through our ranch in 2011, we had to rebuild miles of fencing,” said Price. “EQIP helped us do it through a cost-share. One of the reasons EQIP has become popular among ranchers is because it is a working-lands program. Conservation programs that keep land in production and do not limit its use are the best for both the ranchers and conserving our resources.”
While drought is a constant problem in West Texas, innovative practices and voluntary conservation programs have allowed the Prices to improve their ranch and make their grasslands resilient. For Price, the success of conservation and the ranch economy are not at odds in ensuring we can sustain our country’s natural resources and our way of life for generations.
“I believe that economic activity and conservation go hand-in-hand,” said Price. “We are always looking for new, innovative conservation programs that will have tangible benefits for the environment and help improve our ranching lands. USDA’s conservation programs have been a great asset to cattle producers and it is important that these programs continue to be implemented in the same practical, producer friendly, and voluntary manner for years to come.”
Pork Industry - A Little Profit for 2016
The outlook for the pork industry has turned somewhat more optimistic in recent weeks. The sources of that optimism include a $2 to $4 increase in spring and summer lean hog futures prices since the first of the year and slightly lower new-crop soybean meal prices. According to Purdue University Extension economist Chris Hurt, a bit higher hog prices and a little lower cost add to the potential for a profitable year.
"Currently, the 2016 pork outlook looks a lot like 2015, which featured losses in the first and fourth quarters with the second and third quarters providing some profit," says Hurt. "That pattern appears to be repeating this year. However, the industry is expected to register a $4 per head profit in 2016 in comparison to an estimated $3 per head loss last year."
Hurt says pork supplies in the first two months of 2016 were down about 1 percent from the same period a year ago. This is in alignment with the last hog inventory count from USDA. The relative accuracy of the last USDA count adds credibility to using their inventory numbers as a measure of spring and summer supplies.
"Based on that last report, March, April, and May pork production is expected to be down about 1 to 2 percent," Hurt says. "Summer pork production is expected to be unchanged from year-ago levels and fall production is expected to rise by 2 percent. These numbers would indicate that domestic pork production would be unchanged for the year, while USDA analysts suggest that production will rise by 2 percent."
The estimated cost of farrow-to-finish pork production in calendar 2015 was near $51 per live hundredweight. Hurt believes that is expected to drop a bit in 2016 to average near $50. The decline is related to lower costs for soybean meal. In 2015, high-protein soybean meal at Decatur, Ill. averaged $341 per ton, but is expected to drop to about $283 for all of 2016. If so, Hurt says this will be the lowest cost meal since 2007 when it averaged $231 per ton. For corn, the U.S. average price received for calendar 2015 was $3.71 per bushel. Current futures prices suggest that price will be similar for calendar 2016.
Live hog prices in 2015 averaged $50.23, according to USDA. "My current forecast for 2016 is for hog prices to average about $51 per live hundredweight," Hurt says. "Quarterly price estimates are $45 to $48 in the first quarter, $54 to $58 in the second quarter, $53 to $57 in the third quarter, and $45 to $49 in the final quarter.
"These forecasts suggest that the average cost farrow-to-finish pork producer lost about $3 per head in 2015, a near breakeven year in which producers nearly covered all of their costs, including depreciation and all hired and family labor costs," Hurt says. "The year of 2016 also appears to be one near breakeven, but with a more positive tone of about $4 per head of profit above all costs."
As the spring planting season approaches, Hurt says pork producers are well aware of the uncertainties of the upcoming growing season. Corn and soybean meal prices are at the lowest levels in nine years. Harmful growing season weather in the United States would increase feed costs. How could producers help protect against some of these price increases should they occur?
According to Hurt, one possible answer is to buy December 2016 corn calls and December 2016 soybean meal calls. At this writing, the premium for at-the-money December 2016 corn call options was 28.5 cents per bushel. If a pork producer were to buy the equivalent bushels to cover one year of feeding needs, this premium would raise the cost of production by an estimated $1.25 per live hundredweight. The at-the-money December 2016 soybean meal call option had a premium of $16.60 per ton. If a one-year's was purchased for the hog operation, the premium costs adds 44 cents per live hundredweight to costs. Therefore, to cover both corn and soybean meal with new-crop call options would be about $1.69 per live hundredweight.
"The calls provide potential financial protection if the new-crop futures prices for corn and soybean meal were to rise," Hurt says. "They do not eliminate the opportunity to buy corn and meal with even lower futures prices should another high-yield year develop. However, one has to pay the option premiums and any transaction costs for these rights.
"The more difficult question is 'should' pork producers use options to protect against the potential for rising feed prices," Hurt says. "That depends upon the risk preferences of each producer, their perception of the risk of harmful weather this summer, their financial situation, and their overall outlook."
Land O’Lakes, Inc. Announces Record Earnings in 2015
Land O’Lakes, Inc. today announced record net earnings of $308 million, up from $266 million in 2014.
“Delivering record earnings in the current market environment underscores the strength of Land O’Lakes’ core business strategy,” said Chris Policinski, president and CEO of Land O’Lakes, Inc. “This was a record earnings year for Land O’Lakes in spite of challenging commodity markets, declining on-farm income and increasing industry consolidation. Additionally, we completed the largest merger in our company history and extended our global reach to Africa.”
In 2015, Land O’Lakes successfully merged United Suppliers, Inc. crop protection and seed business with Winfield Solutions, LLC. Land O’Lakes also purchased a majority ownership stake in Villa Crop Protection, a leading crop protection products company based in South Africa, the company’s first commercial investment in Africa.
Land O’Lakes had a strong financial year in 2015. The balance sheet is the strongest in its 94-year history. Cash returned to members in 2015 totaled $161 million, the seventh consecutive year that cash returned to members has exceeded $100 million. Net sales in 2015 totaled $13 billion.
For the quarter ending December 31, 2015, Land O’Lakes delivered quarterly sales of $3.3 billion, a slight decrease in year-over-year sales. Net earnings for the fourth quarter were $119.4 million, with Dairy Foods, Feed and Crop Inputs delivering strong quarterly earnings well ahead of the same quarter in 2014.
Business Segments
Dairy Foods reported 2015 net sales of $4 billion in 2015, down from 2014. Pretax earnings for Dairy Foods totaled $83.1 million in 2015, up from $39.7 million in 2014. Dairy Foods earnings reflect a one-time gain on the sale of Land O’Lakes’ 35 percent interest in Advanced Food Products, LLC. The business saw growth in butter, branded cheese, foodservice and refrigerated desserts and successfully managed the downside in milk powder and overall commodity markets.
Crop Inputs reported 2015 net sales of $4.8 billion in 2015, down slightly from 2014. Pretax earnings totaled $189.6 million in 2015, down from 2014. Low commodity prices impacted results across the portfolio and was offset to some extent through strength in CROPLAN® corn, soybeans and alfalfa. The business continued to focus on productivity, sustainability and decision tools to help farmers make the right choices to increase on-farm productivity using fewer resources. The business introduced nine new products, experienced a strong year for data at more than 200 Answer Plot® locations across the country and world, and provided greater access to data and insights through decision technologies like the R7® Tool and AnswerTech™ platform.
Feed reported 2015 net sales of $4.2 billion, down from 2014. However, pretax earnings of $57.8 million in 2015 were up from $27.8 million in 2014. The core Purina-branded feed lines delivered record-setting performance as a result of the execution of operational strategies that drove market share and accelerated growth. The business experienced growth in all customer channels. Land O’Lakes, Inc. also launched PMI Nutritional Additives, a new segment of the business focused on products that optimize nutrient utilization and gut health and integrity.
Additionally, Land O’Lakes completed the divestiture of the commodity egg business, operated through Moark, LLC, which contributed pre-tax earnings of $13 million.
EPA Orders Widely Used Insecticide Pulled From Market
(AP) -- Federal regulators on Tuesday ordered the makers of a widely used insecticide to take it off the market because it harms tiny aquatic animals.
The Environmental Protection Agency ordered Bayer CropScience and Nichino America to cancel production of all products containing flubendiamide. The decision comes after studies showed the insecticide harms species at the bottom of aquatic food chains in streams and ponds, impacting the fish that feed on them.
Flubendiamide is used on more than 200 crops, including soybeans, tobacco, cotton and numerous varieties of lettuce, fruits and nuts.
"EPA concluded that continued use of the product would result in unreasonable adverse effects on the environment," the agency said in a statement issued Tuesday. "EPA had issued a time-limited registration to the companies with conditions that were understood and agreed upon. If unreasonable adverse effects on the environment were found by EPA, the companies would submit a request for voluntary cancellation of all flubendiamide registrations within one week of EPA notification."
In January, the EPA asked the companies to voluntarily withdraw products containing the problematic insecticide. After they refused, regulators moved to cancel the government registration required to manufacture the product.
Flubendiamide is the active ingredient in Bayer's Belt pesticide. The German chemical giant says its product is safe to use and has sought an administrative law review of the agency's decision.
The company says the methods used by the EPA exaggerated the environmental risk posed by the chemical and would deny farmers access to "a critical pest management tool."
"We are disappointed the EPA places so much trust on computer modeling and predictive capabilities when real-world monitoring shows no evidence of concern after seven years of safe use," Peter Coody, Bayer's vice president of environmental safety, said last month.
Nichino America is a subsidiary of the Japanese chemical maker Nihon Nohyaku Co. A woman who answered the phone Tuesday at the company's U.S. headquarters hung up when a reporter asked for comment on the EPA's decision.
The EPA said crops already treated with flubendiamide or that may be treated with existing supplies can still be sold.
MONSANTO, AMERICAN RED CROSS ANNOUNCE SAFETY PARTNERSHIP
Monsanto Company and the American Red Cross announced today a three-year partnership that adds rural safety content to the American Red Cross First Aid App. The collaboration will help ensure that individuals and families in both rural and urban communities have access to life-saving information and other safety resources.
“Spring planting will begin soon in regions across the United States, and may have already started in some locations,” said Rod Denton, Global Environmental Safety & Health Lead at Monsanto. ”It’s extremely important to keep safety top-of-mind during this busy time of year for farmers and everyone involved in U.S. agriculture. The Red Cross First Aid App and its new farm-focused content will be a valuable safety resource for both our customers and employees.”
Monsanto is the exclusive sponsor of the Red Cross’ award-winning first aid app, which now features videos, tips and other interactive content to promote topics such as child safety and emergency preparedness on the farm, as well as safety content related to all-terrain vehicles (ATVs), grain bins, farm electrical safety and more. Designed for Apple® and Android® mobile devices and tablets, the app features preloaded content that gives instant access to all safety information at any time, regardless of internet or data connection. To date, the app has been downloaded more than 3 million times.
“We are extremely grateful to Monsanto for their help bringing this lifesaving information to our agricultural communities. Our rural families will be safer and better prepared thanks to this partnership with Monsanto,” said Cindy Erickson, CEO, American Red Cross of Eastern Missouri.
“The Red Cross has had a strong presence in local communities throughout the country for more than 135 years,” said Denton. “The new content mirrors our strong focus on safety and support for rural communities, and we’re proud to partner with them through this unique sponsorship.”
Download the FREE Red Cross First Aid app by texting "GETFIRST" to 90999, searching "Red Cross First Aid" in the Apple® iTunes® app store, Google Play™ store or Amazon® Marketplace or by going to redcross.org/apps.
Zoetis Launches CLARIFIDE® Plus
Zoetis today announced the launch of CLARIFIDE® Plus, the first commercially available, U.S.-based genomic test that gives dairy producers the ability to directly predict disease risk in Holstein cattle.
CLARIFIDE Plus includes new genomic predictions for wellness traits that provide direct indication of the genetic risk factors for six of the most common and costly animal health challenges on dairies. CLARIFIDE Plus also includes an exclusive new selection index, called the Dairy Wellness Profit Index™ (DWP$™). By using DWP$ for their animal ranking, producers may incorporate all economically important traits, including the new wellness traits and the polled trait*, to make more comprehensive and profitable genetic selection decisions.
“For the first time, dairy producers can genomically select heifers based on wellness and other economically important traits to help build a healthier, more productive herd,” said David Erf, geneticist, Zoetis Dairy Technical Services. “CLARIFIDE Plus offers dairy producers an unprecedented opportunity to test Holstein animals early in life in order to make genetic management decisions that can significantly impact their future operation success.”
New genomic predictions for wellness traits
To help producers manage and reduce risk for costly health events, CLARIFIDE Plus provides reliable assessments at an early age for these six common dairy health challenges:
· Mastitis
· Lameness
· Metritis
· Retained placenta
· Displaced abomasum
· Ketosis
CLARIFIDE Plus derives genetic predictions based on data collected from millions of health records within U.S. commercial herds, so U.S. producers can be confident results will be relevant to their operations. CLARIFIDE Plus predictions have an unprecedented average estimated reliability of 49% to 51% for the six traits in young animals, compared with no existing information without CLARIFIDE Plus testing.
“We did a lot of research, which was published over 10 years ago, to show there are genetic differences between sire families and their chances of developing health challenges such as milk fever or mastitis,” said Kent Weigel, PhD, professor and chair of the Department of Dairy Science at University of Wisconsin-Madison. “Finally seeing this research get to the point of being an available tool that producers can use for making genetic selection decisions to raise animals with reduced risk for health problems is really encouraging. When you have traits that have an emphasis on health, longevity and wellness, all integrated into one package, this allows producers to make decisions earlier and invest in raising healthy animals. Healthier cows stay in the herd longer and make an enormous difference in a herd’s profitability.”
Use of economic indexes help support more profitable solutions
Zoetis also developed two proprietary economic selection indexes in CLARIFIDE Plus. These selection indexes are a critical component of all genetic selection strategies, as they provide a path for dairy producers to be able to select for comprehensive genetic improvement across a host of traits. These new indexes are:
· Dairy Wellness Profit Index (DWP$): CLARIFIDE Plus is the only genomic test that includes this multitrait selection index based on novel health traits along with other economically important traits that affect dairy production, profitability and saleable milk. DWP$ combines production, fertility, type and longevity traits, as well as the new wellness traits, to provide opportunity to make more profitable animal rankings and decisions.
· Wellness Trait Index™ (WT$™): This multitrait selection index focuses solely on the wellness traits — mastitis, lameness, metritis, retained placenta, displaced abomasum, ketosis and polled. This selection index directly estimates differences in expected profitability related to differences in genetic risk for disease.
Together, all of this information combined in CLARIFIDE Plus gives producers the most comprehensive package of trait predictions for Holstein cattle, enabling use of genetic selection along with good herd management to help reach their herd health and profitability goals.
CLARIFIDE Plus builds on the proven success of CLARIFIDE®, the most widely used genomic test in the dairy industry.1 As with CLARIFIDE, the new genomic test comes with industry-leading support to help producers make the best use of their genomic information and integrate test results with other Zoetis management solutions to achieve desired outcomes.
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