NEBRASKA 2015 FARM PRODUCTION EXPENDITURES UP 3 PERCENT
Farm and Ranch Production Expenditures for Nebraska totaled $22.7 billion in 2015, up 3 percent from a year earlier, according to USDA’s National Agricultural Statistics Service. Livestock expenses, the largest expenditure category, at $6.77 billion, increased 17 percent from 2014. Feed, the next largest expense category, at $2.65 billion, increased 22 percent from 2014. Rent, the third largest total expense category at $2.59 billion, decreased 1 percent from 2014.
Livestock expenses accounted for 30 percent of Nebraska’s total production expenditures. Feed accounted for 12, Rent 11, and Farm Services 8 percent.
The total expenditures per farm or ranch in Nebraska averaged $466,940 in 2015, up from $451,527, an increase of 3 percent. The Livestock expense category was the leading expenditure, at $139,014 per operation, more than 6 times the national average. Feed expenditures, at $54,415 per operation, were nearly 2 times the national average. The average Rent expenditure, at $53,183, was over 3.5 times the national average. Farm Services expenditures per operation, at $39,220, were nearly 2 times the national average.
These results are based on data from Nebraska farmers and ranchers who participated in the Agricultural Resource Management Study conducted by USDA’s National Agricultural Statistics Service. Producers were contacted in January through April to collect 2015 farm and ranch expenses. This is the eleventh year of state level information published for Nebraska from the Agricultural Resource Management Study.
IOWA 2015 FARM PRODUCTION EXPENDITURES DOWN 13 PERCENT
Iowa farm production expenditures totaled $27.8 billion in 2015, according to the latest USDA, National Agricultural Statistics Service – Farm Production Expenditures Annual Summary report. This was 13 percent below the 2014 total expenditures.
Feed expense, which fell 16 percent to $5.19 billion, represented the largest single production expense for Iowa farmers in 2015, accounting for 19 percent of the total. Livestock and Poultry purchases, which fell 7 percent to $5.12 billion, were the second largest expense, and accounted for 18 percent of total expenditures. Rent expense fell 5 percent to $3.97 billion, and accounted for 14 percent of the total.
The largest percentage decreases from last year were for Other Farm Machinery (down 37%), Tractors and Self-propelled Machinery (down 34%), and Farm Improvements (down 31%). Truck and Auto purchases (down 30%) and Miscellaneous Capital expenses (down 25%) also decreased significantly from 2014. Crop input expenditures were also lower, as Seeds and Plants dropped 8 percent to $2.01 billion, Agricultural Chemicals fell 8 percent to $990 million, and Fertilizers, Lime, and Soil Conditioners were down 11 percent to $2.04 billion.
2015 United States Total Farm Production Expenditure Highlights
Farm Production Expenditures in the United States are estimated at $362.8 billion for 2015, down from $397.6 billion in 2014. The 2015 total farm production expenditures are down 8.8 percent compared with 2014 total farm production expenditures. All but two expenditure items decreased from the previous year.
The four largest expenditures at the United States level total $177.3 billion and account for 48.9 percent of total expenditures in 2015. These include feed, 16.1 percent, livestock, poultry and related expenses, 12.5 percent, farm services, 11.5 percent, and labor, 8.8 percent.
In 2015, the United States total farm expenditure average per farm is $176,181 down 8.0 percent from $191,500 in 2014. On average, United States farm operations spent $28,408 on feed, $22,047 on livestock, poultry and related expenses, $20,202 on farm services, and $15,443 on labor. For 2014, United States farms spent an average of $30,680 on feed, $21,818 on farm services, $21,722 on livestock, poultry and related expenses, and $16,472 on labor.
Total fuel expense is $12.3 billion. Diesel, the largest sub component, is $8.0 billion, accounting for 65.0 percent. Diesel expenditures are down 24.5 percent from the previous year. Gasoline is $2.3 billion, down 25.8 percent. LP gas is $1.4 billion, down 34.1 percent. Other fuel is $650 million, down 31.6 percent.
The United States economic sales class contributing most to the 2015 United States total expenditures is the $1,000,000 - $4,999,999 class, with expenses of $119.2 billion, 32.8 percent of the United States total, down 11.8 percent from the 2014 level of $135.1 billion. The next highest is the
$5,000,000 and Over class with $81.3 billion, down from $102.0 billion in 2014.
In 2015, crop farms expenditures decreased to $180.3 billion, down 10.9 percent, while livestock farms expenditures decreased to $182.6 billion, down 6.6 percent. The largest expenditures for crop farms are rent at $25.4 billion (14.1 percent of total), farm services at $23.9 billion (13.3 percent), and labor at $22.6 billon (12.5 percent). Combined crop inputs (chemicals, fertilizers, and seeds) are $52.8 billion, accounting for 29.3 percent of crop farms total expenses. The largest expenditures for livestock farms are feed at $57.1 billion (31.3 percent of total), livestock, poultry and related expenses at $43.2 billion (23.7 percent), and farm services at $17.7 billion (9.7 percent). Together, these line items account for 64.7 percent of livestock farms total expenses. The average total
expenditure for a crop farm is $189,710 compared to $164,591 per livestock farm.
The Midwest region contributed the most to United States total expenditures with expenses of $113.1 billion (31.2 percent), down from $124.0 billion in 2014. The other regions, ranked by total expenditures, are Plains at $93.5 billion (25.8 percent), West at $74.9 billion (20.6 percent), Atlantic
at $44.2 billion (12.2 percent), and South at $37.1 billion (10.2 percent). The Midwest decreased $11.0 billion from 2014, which is the largest regional decrease.
Combined total expenditures for the 15 estimate states is $238.1 billion in 2015 (65.6 percent of the United States total expenditures) and $257.9 billion in 2014 (64.9 percent). California contributed most to the 2015 United States total expenditures, with expenses of $35.5 billion, (9.8 percent). California expenditures are down 12.6 percent from the 2014 estimate of $40.7 billion. Iowa, the next leading state, has $27.8 billion in expenses, (7.6 percent). Other states with more than $20 billion in total expenditures are Texas with $24.1 billion, Nebraska with $22.7 billion, and Kansas with $20.2 billion.
HAY & FORAGE HOTLINE BRINGS SELLERS AND BUYERS TOGETHER
Nebraska Department of Agriculture Director Greg Ibach is encouraging Nebraska producers with hay surpluses and pasture for rent, to register as a seller on the department’s online Hay & Forage Hotline service.
“Last year we had an outstanding alfalfa and prairie hay crop throughout much of Nebraska and early signs indicate another good crop this year,” said Ibach. “With drought conditions worsening in some other livestock producing areas of the country, this would be a good time for producers to register on the Hay & Forage Hotline. Buyers will also be looking for pastureland and corn stock ground to rent.”
According to USDA’s National Agricultural Statistics Service, Nebraska had a 16 percent increase in hay stocks from the previous year. As of May 1 of this year, hay stocks for the state were put at 1.45 million tons. The latest crop condition report rated the current alfalfa condition in the state at 77 percent good to excellent.
The most recent National Drought Monitor indicates extreme drought conditions in parts of northeast Wyoming and southwest South Dakota. Moderate drought and abnormally dry conditions are expanding in that region and now includes much of the Nebraska panhandle.
The Hay & Forage Hotline can be accessed on the Nebraska Department of Agriculture website at www.nda.nebraska.gov. Sellers can register by filling out an online form on the NDA website or by calling 800-422-6692.
HAYING WET MEADOWS THAT ARE TOO WET
Bruce Anderson, NE Extension Forage Specialist
The extra rain received on rangelands this year has been mostly welcome. But it has raised havoc with making hay, especially on wet meadows.
Wet meadows are a great resource. Their natural subirrigation enables them to reliably grow many of the plants cut for winter hay on many ranches.
This year, however, many of these meadows have had too much of a good thing – rain. Not only have frequent rain showers made it difficult to put up the hay, many meadows are so wet it’s been impossible to even get in to cut the hay.
So what do you do? I suppose you can continue to wait until the ground dries and firms up enough to drive haying equipment over it. But the quality of this late cut hay isn’t going to be very good and the cost of putting it up will be high. And for many of you, much of your summer hay crew will soon go back to school.
Maybe a better idea would be to winter graze the meadows instead of cutting hay. You might need to build some temporary fence and figure out how cattle will be watered, but there are several advantages to this approach. First, it saves you the time and expense of cutting and feeding hay. Second, it reduces the risk of damaging the meadow with heavy equipment running over it when it’s too soft. Cattle won’t cause damage if you graze only when the ground is firm or frozen. And finally, research on both meadows and uplands has shown that dry cows do well when winter grazing, often needing just a little protein supplement to assure good fiber digestion and healthy calves.
With all these advantages, I wouldn’t be surprised if some of you ranchers who try it decide to do at least some of it on a regular basis.
RESEARCH: EASTERN REDCEDAR MAY AFFECT SCHOOL LAND TRUST
A new article authored by agronomy and horticulture students at the University of Nebraska-Lincoln indicates that the expansion of eastern redcedar into grasslands reduces grazing capacity and therefore could reduce funding available for public school education in Nebraska.
Eastern redcedar is a tree native to Nebraska. Historically, cedar windbreaks have been used around houses and as protection for calves and cattle from spring storms. However, eastern redcedar has been invading into areas where it was previously absent or rare. When this happens, it can threaten livestock production, grassland wildlife, water resources as well as public safety from wildfires.
Dirac Twidwell, assistant professor in the Department of Agronomy and Horticulture and contributing author on the report, said that in multiple regions of the Great Plains a 75 percent reduction in livestock potential has been observed once grassland is fully converted to juniper woodland. In response, the Nebraska Cattleman’s Association recently identified eastern redcedar as “an increasingly serious ecological and economic issue.”
“As a rare plant, eastern redcedar has benefits, but plantings serve as a way for cedar trees to expand into new environments,” Twidwell said. “Once eastern redcedar trees become widely dominant, society bears the consequences, even in terms of funding available for public schools.”
Over the past six years, the School Land Trust, known formerly as the Board of Educational Lands and Funds, has increased spending to control eastern redcedar from $175,000 to $400,000 annually. The School Land Trust serves as a trustee of the lands contributed to the state in 1867 by the federal government. The School Land Trust, the largest landowner in the state, receives no state funding, pays county real estate taxes and all of its net revenue goes to K-12 public schools.
The trust owns and manages nearly 1.26 million acres of agricultural land in Nebraska. More than 950,000 acres of trust land are grasslands that generate income for public schools from grazing leases. In the last 15 years, the trust has contributed $573 million to K-12 public schools in Nebraska.
To limit major economic losses resulting from eastern redcedar invasion on their land, the board is proposing to stop planting cedar trees and to remove existing seed sources, like windbreaks or female trees. The trust, like other landowners, also is increasing steps to control cedar from spreading. Removing the source of the problem and finding long term methods of controlling the spread of eastern redcedar onto grazing land is a key priority of the School Land Trust. By controlling the spread of eastern red cedar, the School Land Trust will maintain profitable grazing leases and revenue can focus on its intended purpose of funding K-12 public schools.
The article urges Nebraskans to become informed of the consequences of the spread of eastern redcedar. In 2014, the Nebraska Conservation Roundtable, consisting of multiple state, federal and university experts, listed eastern redcedar as one of the greatest threats to natural resource conservation in Nebraska.
The article, which has been released in Nebraska Extension's BeefWatch, was authored by students in the ecosystem monitoring and assessment course, along with Craig Allen from the Nebraska Cooperative Fish and Wildlife Research Unit. The Nebraska Board of Educational Lands and Funds also provided input. For more information, visit http://newsroom.unl.edu/announce/beef/5577/31325.
ICA Receives Conservation Collaboration Grant
The Iowa Cattlemen’s Association is a recent recipient of the 2016 Iowa Natural Resources Conservation Service (NRCS) Conservation Collaboration Grants. Grants were awarded to projects that leveraged NRCS resources, addressed local natural resource issues, encouraged collaboration and developed state- and community-level conservation leadership. ICA’s Conservation Collaboration Grant will be used to facilitate the Stewards of the Land project.
According to the ISU Leopold Center for Sustainable Agriculture, when grasslands are managed with a focus on the regenerative crop, cattle not only reduce overall GHG emissions, but also facilitate increased soil carbon sequestration, reduce environmental damage, and create habitat for various wildlife and pollinator species.
In an effort to restore Iowa’s grasslands, the Stewards of the Land project will help farmers and ranchers make positive changes on their farm, such as enhancing current grassland management practices and transitioning current crop ground and expiring CRP contract acres into working grasslands. According to the Iowa Nutrient Reduction Strategy, perennial cover and grazed pastures are estimated to reduce Nitrate loss by 85% and Phosphorus loss by 60%.
Allocating additional acres to grasslands requires financial investment and technical expertise. Through the Stewards of the Land project, ICA will hire a Grazing Advisor that will work to educate Iowa cattlemen and encourage environmentally conscious decisions when it comes to land management. Through technical assistance, the ICA Grazing Advisor will work with area cattlemen to increase the productivity of current grasslands, while encouraging transformation of additional acres.
At this time the Iowa Cattlemen’s Association is seeking applicants for the ICA Grazing Advisor position. Those interested should contact the ICA office at 515.296.2266, or view the job application on the ICA website at www.iacattlemen.org. Applications are due August 30.
The Iowa Cattlemen’s Association is the lead organization for the Stewards of the Land project and sincerely appreciates the support of project partners including the Iowa Cattlemen’s Foundation and Prairie Creek Seeds.
Kansas State University's CEEZAD receives $2.3 million grant for vaccine research
The Center of Excellence for Emerging Zoonotic and Animal Diseases, or CEEZAD, at Kansas State University will use a $2.3 million federal grant to study the safety in livestock of a newly developed vaccine to protect humans from the Ebola Zaire virus.
The grant is from the Defense Threat Reduction Agency in the U.S. Department of Defense through a collaboration with the commercial firm NewLink Genetics. A $100,000 matching contribution from the state of Kansas' NBAF Transition Funds brings the total project funding to $2.4 million.
The university's Biosecurity Research Institute will be used to conduct the project.
The vaccine is called VSV-ZEBOV, which is an acronym for Vesicular Stomatitis Virus-Zaire Ebola Virus. The virus can infect cattle and its clinical presentation is identical to the foot-and-mouth disease virus and the Zaire strain of Ebola virus — the main strain that causes the severe, often fatal, Ebola hemorrhagic fever disease in humans. The virus is thought to be transmitted to people from an as-yet unidentified wild animal reservoir, and then spreads in the human population through human-to-human transmission. The average disease case fatality rate is around 50 percent, but has varied from 25 percent to 90 percent in various outbreaks.
Jürgen Richt, regents distinguished professor at Kansas State University and director of the Center of Excellence for Emerging and Zoonotic Animal Diseases, will be the principal investigator for the project.
"We are very excited to begin research to test the safety of this vaccine, the only efficacious Ebola virus vaccine available," Richt said. "As the world saw with the deadly 2014 outbreak in West Africa, Ebola is one of the most serious emerging zoonotic threats to humans."
Richt also expressed appreciation for the contribution from the state's NBAF fund for the work. NBAF stands for the National Bio and Agro-defense Facility, which is the nation's premiere animal disease research facility that is currently under construction adjacent to the Kansas State University campus in Manhattan.
Zoonotic diseases are those capable of being transmitted from animals to humans and vice versa. It is thought that Ebola virus, which was first identified in 1976, is introduced into the human population through close contact with infected animals such as chimpanzees, gorillas, bats, monkeys, and maybe antelope and porcupines. It is also possible that the Ebola virus can be transmitted through sexual contact involving already-infected persons. The Zaire species of Ebola virus is one of five species that have been identified, and has been associated with large disease outbreaks in Africa — including the 2014 West African outbreak, which infected an estimated 28,600 people and resulted in more than 11,000 deaths.
No infectious Ebola virus will be used in the Biosecurity Research Institute during the studies. The work will provide information to supplement the overall safety of the VSV-ZEBOV vaccine.
USDA Announces Safety Net Assistance for Milk Producers Due to Tightening Dairy Margins
Agriculture Secretary Tom Vilsack today announced approximately $11.2 million in financial assistance to American dairy producers enrolled in the 2016 Margin Protection Program for Dairy (MPP-Dairy). The payment rate for May/June 2016 will be the largest since the program began in 2014. The narrowing margin between milk prices and the cost of feed triggered the payments, as provided for by the 2014 Farm Bill.
"We understand the nation's dairy producers are experiencing challenges due to market conditions," said Vilsack. "MPP-Dairy payments are part of a robust, comprehensive farm safety net that help to provide dairy producing families with greater peace of mind during tough times. Dairy operations enrolled in the 2016 MPP-Dairy program will receive approximately $11.2 million this month. I want to urge dairy producers to use this opportunity to evaluate their enrollment options for 2017, as the enrollment period is currently scheduled to end Sept. 30, 2016. By supporting a strong farm safety net, expanding credit options and growing domestic and foreign markets, USDA is committed to helping America's dairy operations remain successful."
Dairy producers who enrolled at the $6 through $8 margin trigger coverage level will receive payments. MPP-Dairy payments are triggered when the national average margin (the difference between the price of milk and the cost of feed) falls below a level of coverage selected by the dairy producer, ranging from $4 to $8, for a specified consecutive two-month period. All final USDA prices for milk and feed components required to determine the national average margin for May/June 2016 were released on July 29, 2016.
The national average margin for the May/June 2016 two-month consecutive period is $5.76277 per hundred weight (cwt.), resulting in the following MPP payment rates:
Margin Trigger Coverage Levels - Payment Rate/cwt.
$6.00 - $0.23723
$6.50 - $0.73723
$7.00 - $1.23723
$7.50 - $1.73723
$8.00 - $2.23723
State specific payment amounts can be found at www.fsa.usda.gov/dairy.
USDA Dairy Products June 2016 Production Highlights
Total cheese output (excluding cottage cheese) was 987 million pounds, 1.1 percent above June 2015 but 1.5 percent below May 2016. Italian type cheese production totaled 432 million pounds, 2.2 percent above June 2015 but 2.0 percent below May 2016. American type cheese production totaled 390 million pounds, 0.2 percent below June 2015 and 2.6 percent below May 2016. Butter production was 153 million pounds, 6.4 percent above June 2015 but 10.1 percent below May 2016.
Dry milk powders (comparisons with June 2015)
Nonfat dry milk, human - 144 million pounds, down 13.2 percent.
Skim milk powders - 55.3 million pounds, up 59.5 percent.
Whey products (comparisons with June 2015)
Dry whey, total - 79.2 million pounds, down 7.7 percent.
Lactose, human and animal - 91.8 million pounds, up 2.0 percent.
Whey protein concentrate, total - 35.9 million pounds, down 7.9 percent.
Frozen products (comparisons with June 2015)
Ice cream, regular (hard) - 75.6 million gallons, up 4.2 percent.
Ice cream, lowfat (total) - 42.8 million gallons, down 8.0 percent.
Sherbet (hard) - 3.61 million gallons, down 6.8 percent.
Frozen yogurt (total) - 6.33 million gallons, down 10.5 percent.
Quarterly Sales, Earnings Up at Zoetis
Zoetis Inc. reported its financial results for the second quarter of 2016 and increased its revenue and adjusted net income guidance for full year 2016.
The company reported revenue of $1.2 billion for the second quarter of 2016, an increase of 3% compared with the second quarter of 2015. Net income for the second quarter of 2016 was $224 million, or $0.45 per diluted share, compared with a net loss of $37 million for the second quarter of 2015, on a reported basis.
Adjusted net income for the second quarter of 2016 was $246 million, or $0.49 per diluted share, an increase of 14%. Adjusted net income for the second quarter of 2016 excludes the net impact of $22 million for purchase accounting adjustments, acquisition-related costs and certain significant items.
On an operational basis, revenue for the second quarter of 2016 increased 6%, excluding the impact of foreign currency. Adjusted net income for the second quarter of 2016 increased 22% operationally, excluding the impact of foreign currency.
Clinton Campaign Studying Alternative to Ethanol Mandate
Democratic U.S. presidential candidate Hillary Clinton's campaign has solicited advice from California regulators on how to revamp a federal regulation requiring biofuels like corn-based ethanol be blended into the nation's gasoline supply, according to campaign and state officials. The move is an indication that Clinton would seek to adjust the Renewable Fuel Standard.
The Renewable Fuel Standard mandates that transportation fuel sold in the United States contain a minimum volume of renewable fuels. It was intended to cut greenhouse gas emissions and expand the U.S. renewable fuels sector while lowering reliance on imported oil. It is opposed by the oil industry and environmentalists and has been criticized as a mere subsidy to corn producers.
According to Reuters, Clinton advisers have contacted the California Air Resources Board to discuss whether a policy like California's Low Carbon Fuel Standard, a market-based system rather than a mandate, could be applied at a national level to replace or augment the Renewable Fuel Standard, and other issues, CARB officials said.
The U.S. corn lobby hopes to convince both Clinton and Trump to uphold the regulation, which requires a doubling of U.S. biofuels use to 36 billion gallons per year by 2022, when congressionally mandated volume targets are set to expire. The program is designed to last indefinitely after that.
Environmentalists, anti-hunger activists and the oil sector have called for the rule to be repealed or changed because they say it raises food and fuel costs without delivering the emissions reductions that it was intended to achieve.
Welcome to the KTIC Agriculture Information blog!!! Check back here for the latest in ag news and information, from local events to international happenings and government reports that affect your operation. Please email with suggestions! -Chad Moyer, Farm Director, KTIC Radio
Thursday, August 4, 2016
Wednesday August 3 Ag News
CFI Research Webinar Explores Keys to Food System Transparency
Today's consumers want to know what's in their food, who's producing it, how it's produced and how it will impact their health. It's a new day where transparency is no longer optional; it's expected. The latest research from The Center for Food Integrity (CFI) shows that food companies, many that have made dramatic shifts to meet consumer demand, are held most responsible.
Featuring The Hershey Company, Campbell Soup Company and CFI consumer research, a complimentary one-hour webinar on Wed., Aug. 17, from 10:30 to 11:30 a.m. CDT, will explore both companies’ transparency initiatives, consumer expectations and what this transparency revolution means for the supply chain when it comes to earning trust. Participants will come away with a better understanding of why transparency matters and specific strategies to put transparency into action.
Presenters include:
Niki King, senior manager of the Corporate Social Responsibility Program Office, Campbell Soup Company. The centerpiece of Campbell’s transparency efforts is www.whatsinmyfood.com, where consumers can access a wide range of information about Campbell's products, and have questions addressed in one easily accessible place. In addition, the company is moving toward a "real food" focus, recently committing to sourcing antibiotic-free chicken and to remove artificial colors and flavors from its North American products.
Deb Arcoleo, director of product transparency, The Hershey Company. Hershey launched a Simple Ingredients initiative last year and made continued progress on sourcing sustainable ingredients from its suppliers. Hershey is also making information about its products easier to find and understand through its leadership in the creation of the Grocery Manufacturers Association's (GMA) new SmartLabel™ program.
Charlie Arnot, CFI CEO. Now approaching its 10th anniversary, CFI has conducted the most comprehensive consumer trust research in the country, providing its members with a roadmap to effectively engage consumers. Beginning in 2013, CFI zeroed in on the role of transparency in earning trust and by 2015, developed and tested a tool to measure transparency. Along with seven other companies, The Hershey Company and Campbell Soup Company both participated in a beta test of this new tool. The latest research demonstrates that transparency earns trust and details what consumers expect from today's food industry.
To register for the webinar, log on to www.foodintegrity.org/event/the-transparency-revolution-what-food-companies-expect/. For more information, contact Jana McGuire at jana.mcguire@foodintegrity.org.
Land O’Lakes, Inc. Announces 2016 Second Quarter Results Farmer-owned cooperative reports 67 percent increase in net earnings over second quarter in 2015
Land O’Lakes, Inc. today announced second quarter financial results, reporting quarterly net earnings of $134 million on sales of $3.5 billion for the period ending June 30, 2016. Second quarter results were up 67 percent compared to the same period in 2015. Year-to-date net sales totaled $7.1 billion with net earnings of $238 million. These results were significantly higher over the same period in 2015, with year-to-date earnings up 33 percent year-over-year.
“Despite sustained market volatility and headwinds across the segments where we operate, Land O’Lakes, Inc. is reporting significantly higher results year-over-year with strong performance across all of our business units,” stated Chris Policinski, Land O’Lakes, Inc. president and CEO. “We will continue to invest in growth, innovation and our core businesses, and with the addition of our new business unit SUSTAIN continue to collaborate on and improve environmental sustainability for the benefit of our members, customers and partners.”
Results remained strong across the Animal Feed portfolio – particularly within Milk Replacer and Nutra Blend, and within the Lifestyle segment – during the second quarter of 2016. The division saw strong growth over the same period in 2015, driven by strong margins and growth in certain branded and proprietary products.
The Dairy Foods segment, including the LAND O LAKES brand, saw higher results over the same period in 2015, due in part to less volatile markets and strong volumes and overall performance in the Foodservice division.
Overall second quarter results in Crop Inputs were driven by the addition of United Suppliers, Inc. combined with improved performance in proprietary products. This increase was partially offset by lower seed volumes driven by a strong fourth quarter in 2015 combined with a tighter gross margin environment.
EIA: Ethanol Stocks, Production Higher
Ethanol inventories, domestic production and blender inputs all increased last week, according to a report released Wednesday by the Energy Information Administration.
The data showed total inventories increased 200,000 barrels (bbl), or 1.0%, to 20.6 million bbl for the week-ended July 29 while up 1.4 million bbl, or 7.1%, year over year.
Plant production increased 6,000 barrels per day (bpd), or 0.6%, to 1.004 million bpd while up 42,000 bpd, or 4.5%, year over year. Four-week average production was up 38,000, or 3.8%, at 1.009 million bpd.
Net refinery and blender input increased 15,000 bpd, or 1.6%, to 951,000 bpd during the week-ended July 29, while up 41,000 bpd, or 4.5%, year over year. The four-week average blender input rate was up 37,000 bpd, or 4.1%, at 935,000 bpd.
EIA reported ethanol imports of 36,000 bpd, with the imports received along the West Coast.
DOE Labs Report Shows Significant Benefits of Mid-Level Ethanol Blends
Recently, the Department of Energy’s Oak Ridge, Argonne, and National Renewable Energy Laboratories released their “Summary of High Octane, Mid-Level Ethanol Blends Study.” This scientific analysis showed the numerous benefits of using high octane mid-level ethanol blends in future optimized engines. Some of these benefits include: increased vehicle efficiency, increased acceleration, and significant reductions in greenhouse gas (GHG) emissions. In particular, these mid-level blends such as E25 and E40 have significantly more octane which allows automakers to manufacture more efficient engines without compromising performance, ultimately saving consumers at the pump as well as further reducing GHG emissions.
In response, Growth Energy Director of Regulatory Affairs, Chris Bliley issued the following statement:
“This report reinforces what consumers know today – more ethanol means more consumer savings at the pump and less pollutants in the air we breathe. I am pleased that this report recognizes and confirms what we’ve said for a number of years – automakers can take advantage of ethanol’s high octane properties to achieve the administration’s ambitious climate goals. As the Environmental Protection Agency, the National Highway Traffic Safety Administration, and the California Air Resources Board undertake their mid-term review, they should appropriately recognize the ability of high-octane, mid-level ethanol blends to meet the future greenhouse gas and fuel economy standards.”
Among the report’s conclusions:
“The experimental and analytical results of this study considered together show that high octane fuels (HOF), specifically mid-level ethanol blends (E25-E40), could offer significant benefits for the United States. These benefits include an improvement in vehicle fuel efficiency in vehicles designed and dedicated to use the increased octane…Furthermore, dedicated HOF vehicles would provide lower well-to-wheel GHG emissions from a combination of improved vehicle efficiency and increased use of ethanol.”
ISU Extension and Outreach specialists to present on cover crop use in southwestern Iowa
The Iowa State University Extension and Outreach organic agriculture program’s research will be a focus of the Neely-Kinyon Field Day on Aug. 23 from 4-7 p.m. in Greenfield, Iowa.
“Iowa State’s organic agriculture program has studied best management practices for maintaining high yields while enhancing soil and water quality during transitioning and certification of organic farmers,” said Kathleen Delate, professor and extension organic specialist in horticulture and agronomy at Iowa State University. “Through timely weed management, longer crop rotations and appropriate manure-based fertilization, we have demonstrated comparable organic corn, soybean, oat, alfalfa, vegetable and fruit yields compared to conventional crops.”Kathleen Delate at organic field day
Organic agriculture was listed as a $43 billion industry in the United States in 2015, with the number of organic businesses increasing 12 percent last year.
Field day topics covered by ISU Extension and Outreach researchers and specialists will include cover crop use in southwestern Iowa, a tour of a demonstration site for the STRIPS project, and the effort to grow habitats for monarch butterflies and other pollinators.
Additional field day topics include:
The Long-Term Agroecological Research (LTAR) experiment, one of the oldest comparisons of organic and conventional crops in the U.S., supported by the Leopold Center for Sustainable Agriculture
An organic vegetable research experiment comparing performance of organic no-till production using a roller-crimper, compared to tilled and mulched systems
Soil and water quality data from the organic experiments presented by Dr. Cynthia Cambardella, Soil Scientist at the USDA-ARS in Ames
Organic growing season update and marketing opportunities from David Rosmann, Practical Farmers of Iowa board member and organic farmer
Discussion on an integrated crop and livestock project highlighting the benefits of grass-based cattle production, including a higher Omega-3 healthy fatty acid profile in the resulting meat
The field day will begin at 4 p.m. with a light supper of local, organic foods served at 6 p.m. The farm is located at 2557 Norfolk Avenue, Greenfield, Iowa. The farm can be found by driving two miles south of Greenfield on Highway 25, turning east on 260th Street for one mile before heading north on Norfolk Avenue.
Contact Kathleen Delate at kdelate@iastate.edu or 515-294-7069 for more information. Research information is available at: http://extension.agron.iastate.edu/organicag/. The field day is supported by Practical Farmers of Iowa.
Fertilizer Prices Dip Again
As has been the case for the last several weeks now, average retail fertilizer prices continued to be just slightly lower the fourth week of July 2016, according to fertilizer retailers surveyed by DTN.
All eight of the major fertilizers dipped in price compared to the previous month, but once again none were down by any significance. DAP averaged $459 per ton, MAP $492/ton, potash $356/ton and urea also at $356/ton. 10-34-0 was at $543/ton, anhydrous $545/ton, UAN28 $257/ton and UAN32 $304/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.33/lb.N, UAN28 $0.46/lb.N and UAN32 $0.48/lb.N.
For the time being, DTN's retail fertilizer prices remain lower compared to a year earlier. All fertilizers are now double digits lower.
UAN32 is 14% lower, 10-34-0 is 15% less expensive and MAP 17% lower. DAP is 19% lower and both anhydrous and UAN28 are 21% less expensive. Urea is 24% less expensive and potash is 27% less expensive compared to last year.
CWT-Assisted Member Export Sales Contracts Total 8.4 Million Pounds in July
Cooperatives Working Together member cooperatives captured 29 contracts to sell 1.993 million pounds of American-type cheese, 5.016 million pounds of butter and 1.411 million pounds of whole milk powder in July. These products will go to customers in Asia, Central America, the Middle East, North Africa and Oceania. The product will be shipped from July through November 2016.
In the first seven months of 2016, CWT assisted members in winning export sales contracts totaling 30.090 million pounds of American-type cheese, 10.366 million pounds of butter (82% milkfat) and 22.948 million pounds of whole milk powder for customers in 21 countries on five continents. The sales are the equivalent of 678.497 million pounds of milk on a milkfat basis.
Assisting CWT member cooperatives gain and maintain world market share through the Export Assistance program in the long-term expands the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affect all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.
Rain Disrupts German Grain Harvest; Yields Seen Down 10-20%
Recent rainfall in Germany has disrupted the country's wheat harvest, leading to possible yield losses of up to 20%, the German Farmers' Association said Wednesday.
Due to bad weather in recent days and weeks, only a third of the winter wheat harvest has been completed, the association said, emphasizing that achievable yields are highly uncertain. However, it said yield losses of 10-20% from last year are possible.
Similar yield losses have affected the winter barley harvest, which begins earlier in the year. The 2016 harvest is expected to fall by 10% from 2015 to 8.6 million metric tons, the association said.
Food Ingredient Prices Outpace Values of Other Convenient Food
Beginning in 2004, prices of basic food ingredients purchased in grocery stores grew faster than prices of ready-to-eat meals and snacks purchased in grocery stores. The USDA reports that basic ingredients are raw or minimally processed foods, such as milk, dried beans, and fresh meat, used in producing a meal or snack.
Ready-to-eat meals and snacks, such as refrigerated entrees and side dishes, yogurt, and candy, require no preparation beyond opening a container.
A recent ERS analysis found that between 1999 and 2010, spending by a typical American household on basic ingredients was not as responsive to these price changes as spending on ready-to-eat meals and snacks.
In the first quarter of 1999, 5.2 percent of the average food budget was spent on basic ingredients and 18.0 percent on ready-to-eat meals and snacks.
By the fourth quarter of 2007, the share of total food expenditures spent on basic ingredients remained fairly constant but increased during the 2007-09 recession.
The share of total food expenditures spent on ready-to-eat meals and snacks, on the other hand, steadily declined to 17.1 percent before rising back to 1999 levels during and following the 2007-09 recession.
Spray Technology Equipment Offer Helps Grower Maximize On-Target Herbicide Applications
Growers participating in Roundup Ready PLUS® Crop Management Solutions now have an opportunity to upgrade sprayers with broadcast hoods at low cost to maximize on-target applications during the 2017 Spray Technology Equipment Offer, which runs from July 1, 2016 to January 31, 2017.
Qualified growers will be offered a 30 percent discount and a 10 percent rebate on the purchase of either a Willmar Fabrication SPK645 self-propelled broadcast hooded retrofit kit, or a 642E three-point wheel boom broadcast hooded sprayer with over-center fold. Both products feature the Redball® Gen II Broadcast Spray-Hoods. When used during ground applications, Redball Gen II hoods are proven in field trials to help greatly improve sprayer accuracy and coverage, and minimize pesticide drift by up to 90 percent*, especially when combined with other drift reduction technologies such as drift retardant adjuvants or low drift nozzles.
“Roundup Ready PLUS Crop Management Solutions does an outstanding job of helping farmers choose the best strategies and products for effective over-lapping herbicide programs,” said Steve Claussen, president of Willmar Fabrication. “Together, Willmar and Monsanto are taking things to another step to help farmers improve accuracy and minimize waste when they are spraying their crops.”
To qualify, growers must be active participants in the Roundup Ready PLUS platform and purchase a total of 60 units of Roundup Ready 2 Xtend® Soybeans and/or Genuity® Roundup Ready 2 Yield® Soybeans, or a total of 12 units of Bollgard II® XtendFlex® Cotton before January 31, 2017. Upon purchase of the seed, growers will be offered a 30 percent discount when they purchase a qualifying hooded sprayer directly from Willmar using their Monsanto Tech ID number. By submitting their Willmar proof-of-purchase and the Monsanto Tech ID number, growers will then receive a 10 percent rebate on the qualifying equipment purchase.
A second option to this offer allows growers who purchase the required amount of seed to qualify for a 30 percent discount on the purchase of a qualifying hooded sprayer between February 1, 2017 and June 30, 2017.
Qualifying Equipment
The SPK645 Self-Propelled Broadcast Retrofit Kit includes Redball Gen II Broadcast Hoods, mounting brackets, hardware to mount hoods on center section, and right and left primary booms. The kit is easy to mount and available for most self-propelled makes and models. Initial installation takes approximately 10 hours. After hoods are installed, they can be removed or put back on in 10 minutes. Spray nozzles are mounted inside the hood to protect the spray pattern from wind disruption for better coverage.
The 642E Three-Point Broadcast Hooded Sprayer with Over-Center Fold features a new and simple design that offers the same great drift protection and spraying accuracy. Just like its 642 companion, the 642E is ideal for spraying field borders and buffers. The sprayer also demonstrates good stewardship and is equipped with Redball Gen II Broadcast Spray Hoods. The new optional trailer hitch attachment makes the 642E Hooded Sprayer more versatile than ever. The 642E Sprayer and hitch attachment are ideal for ag retailers as a rental unit. The hitch attachment allows for easy transportation behind a truck for delivery to farmers and field locations and a quick hook-up to a tractor. In addition the hitch attachment can be removed and the sprayer can operate with a three-point hitch.
To place an order, or for more details, call 877-865-5887. Find out more about broadcast hoods at www.willmarfab.com or on our YouTube channel.
For more about Roundup Ready PLUS Crop Management Solutions, visit http://www.roundupreadyplus.com/.
New Vive Crop Protection Products Debut on Acres in Six Midwestern States
After being introduced to the market in March, two products that feature a new nanotech delivery system for fungicide and insecticide have performed well in field observations.
The technology, called Allosperse™, uses polymer nanoparticle shuttles to control how and when crop protection products are delivered to the plant after being applied. This is new technology for agriculture that is comparable to how some pharmaceuticals are delivered to precise targets within the human body.
Farmers in Minnesota, Nebraska, South Dakota, North Dakota, Iowa and Illinois applied the two new products, AZteroid™ and Bifender™, to corn and soybean acres this spring. In addition, trials were conducted in potato and sugarbeet plots.
It’s still too early to assess yield results, said Dr. Darren Anderson, chief communications officer for Vive Crop Protection, but producer feedback and field observations have been excellent. “AZteroid is the first fungicide built for compatibility with liquid fertilizer, and producers were pleased with their new-found ability to apply starter fertilizer and fungicide in-furrow in a single pass.”
In field observations, corn and soybean plants grown with a combination of starter fertilizer and AZteroid applied in-furrow were larger with significantly more root mass when compared with plants that only received starter fertilizer.
This combination of AZteroid and fertilizer was applied as one uniform mixture, thanks to the Allosperse technology. Crop protection products typically fail to mix thoroughly with liquid fertilizer. However, with Allosperse this problem is no longer an issue. As a result, multiple products can be conveniently applied in a single pass across the field.
“One producer relayed a story of mixing AZteroid with starter fertilizer in the tank, only to be delayed for four days because of rain,” Dr. Anderson explained. “When he was finally able to get in the field, there was only a small amount of residue in the check balls and even that came right off once he got moving.”
Producers said the products worked well when mixed directly in the fertilizer tank as well as when applied through a Dosatron. There were no problems even with a high-zinc starter fertilizer, and the products exhibited excellent mixing properties with glyphosate and Capture® LFR®.
About AZteroid and Bifender
AZteroid contains azoxystrobin and provides broad-spectrum control for a variety of seed and seedling diseases. Bifender contains bifenthrin and provides broad-spectrum control of many serious insect pests dwelling at or below the soil surface.
Bifender has the same excellent fertilizer compatibility as AZteroid and can be tank-mixed with AZteroid by growers who want to simultaneously control seedling disease and soil-borne insect pests. Bifender is particularly useful applied to seed that has not received a seed treatment, but both Bifender and AZteroid can also be used to provide extra protection to treated seed.
Today's consumers want to know what's in their food, who's producing it, how it's produced and how it will impact their health. It's a new day where transparency is no longer optional; it's expected. The latest research from The Center for Food Integrity (CFI) shows that food companies, many that have made dramatic shifts to meet consumer demand, are held most responsible.
Featuring The Hershey Company, Campbell Soup Company and CFI consumer research, a complimentary one-hour webinar on Wed., Aug. 17, from 10:30 to 11:30 a.m. CDT, will explore both companies’ transparency initiatives, consumer expectations and what this transparency revolution means for the supply chain when it comes to earning trust. Participants will come away with a better understanding of why transparency matters and specific strategies to put transparency into action.
Presenters include:
Niki King, senior manager of the Corporate Social Responsibility Program Office, Campbell Soup Company. The centerpiece of Campbell’s transparency efforts is www.whatsinmyfood.com, where consumers can access a wide range of information about Campbell's products, and have questions addressed in one easily accessible place. In addition, the company is moving toward a "real food" focus, recently committing to sourcing antibiotic-free chicken and to remove artificial colors and flavors from its North American products.
Deb Arcoleo, director of product transparency, The Hershey Company. Hershey launched a Simple Ingredients initiative last year and made continued progress on sourcing sustainable ingredients from its suppliers. Hershey is also making information about its products easier to find and understand through its leadership in the creation of the Grocery Manufacturers Association's (GMA) new SmartLabel™ program.
Charlie Arnot, CFI CEO. Now approaching its 10th anniversary, CFI has conducted the most comprehensive consumer trust research in the country, providing its members with a roadmap to effectively engage consumers. Beginning in 2013, CFI zeroed in on the role of transparency in earning trust and by 2015, developed and tested a tool to measure transparency. Along with seven other companies, The Hershey Company and Campbell Soup Company both participated in a beta test of this new tool. The latest research demonstrates that transparency earns trust and details what consumers expect from today's food industry.
To register for the webinar, log on to www.foodintegrity.org/event/the-transparency-revolution-what-food-companies-expect/. For more information, contact Jana McGuire at jana.mcguire@foodintegrity.org.
Land O’Lakes, Inc. Announces 2016 Second Quarter Results Farmer-owned cooperative reports 67 percent increase in net earnings over second quarter in 2015
Land O’Lakes, Inc. today announced second quarter financial results, reporting quarterly net earnings of $134 million on sales of $3.5 billion for the period ending June 30, 2016. Second quarter results were up 67 percent compared to the same period in 2015. Year-to-date net sales totaled $7.1 billion with net earnings of $238 million. These results were significantly higher over the same period in 2015, with year-to-date earnings up 33 percent year-over-year.
“Despite sustained market volatility and headwinds across the segments where we operate, Land O’Lakes, Inc. is reporting significantly higher results year-over-year with strong performance across all of our business units,” stated Chris Policinski, Land O’Lakes, Inc. president and CEO. “We will continue to invest in growth, innovation and our core businesses, and with the addition of our new business unit SUSTAIN continue to collaborate on and improve environmental sustainability for the benefit of our members, customers and partners.”
Results remained strong across the Animal Feed portfolio – particularly within Milk Replacer and Nutra Blend, and within the Lifestyle segment – during the second quarter of 2016. The division saw strong growth over the same period in 2015, driven by strong margins and growth in certain branded and proprietary products.
The Dairy Foods segment, including the LAND O LAKES brand, saw higher results over the same period in 2015, due in part to less volatile markets and strong volumes and overall performance in the Foodservice division.
Overall second quarter results in Crop Inputs were driven by the addition of United Suppliers, Inc. combined with improved performance in proprietary products. This increase was partially offset by lower seed volumes driven by a strong fourth quarter in 2015 combined with a tighter gross margin environment.
EIA: Ethanol Stocks, Production Higher
Ethanol inventories, domestic production and blender inputs all increased last week, according to a report released Wednesday by the Energy Information Administration.
The data showed total inventories increased 200,000 barrels (bbl), or 1.0%, to 20.6 million bbl for the week-ended July 29 while up 1.4 million bbl, or 7.1%, year over year.
Plant production increased 6,000 barrels per day (bpd), or 0.6%, to 1.004 million bpd while up 42,000 bpd, or 4.5%, year over year. Four-week average production was up 38,000, or 3.8%, at 1.009 million bpd.
Net refinery and blender input increased 15,000 bpd, or 1.6%, to 951,000 bpd during the week-ended July 29, while up 41,000 bpd, or 4.5%, year over year. The four-week average blender input rate was up 37,000 bpd, or 4.1%, at 935,000 bpd.
EIA reported ethanol imports of 36,000 bpd, with the imports received along the West Coast.
DOE Labs Report Shows Significant Benefits of Mid-Level Ethanol Blends
Recently, the Department of Energy’s Oak Ridge, Argonne, and National Renewable Energy Laboratories released their “Summary of High Octane, Mid-Level Ethanol Blends Study.” This scientific analysis showed the numerous benefits of using high octane mid-level ethanol blends in future optimized engines. Some of these benefits include: increased vehicle efficiency, increased acceleration, and significant reductions in greenhouse gas (GHG) emissions. In particular, these mid-level blends such as E25 and E40 have significantly more octane which allows automakers to manufacture more efficient engines without compromising performance, ultimately saving consumers at the pump as well as further reducing GHG emissions.
In response, Growth Energy Director of Regulatory Affairs, Chris Bliley issued the following statement:
“This report reinforces what consumers know today – more ethanol means more consumer savings at the pump and less pollutants in the air we breathe. I am pleased that this report recognizes and confirms what we’ve said for a number of years – automakers can take advantage of ethanol’s high octane properties to achieve the administration’s ambitious climate goals. As the Environmental Protection Agency, the National Highway Traffic Safety Administration, and the California Air Resources Board undertake their mid-term review, they should appropriately recognize the ability of high-octane, mid-level ethanol blends to meet the future greenhouse gas and fuel economy standards.”
Among the report’s conclusions:
“The experimental and analytical results of this study considered together show that high octane fuels (HOF), specifically mid-level ethanol blends (E25-E40), could offer significant benefits for the United States. These benefits include an improvement in vehicle fuel efficiency in vehicles designed and dedicated to use the increased octane…Furthermore, dedicated HOF vehicles would provide lower well-to-wheel GHG emissions from a combination of improved vehicle efficiency and increased use of ethanol.”
ISU Extension and Outreach specialists to present on cover crop use in southwestern Iowa
The Iowa State University Extension and Outreach organic agriculture program’s research will be a focus of the Neely-Kinyon Field Day on Aug. 23 from 4-7 p.m. in Greenfield, Iowa.
“Iowa State’s organic agriculture program has studied best management practices for maintaining high yields while enhancing soil and water quality during transitioning and certification of organic farmers,” said Kathleen Delate, professor and extension organic specialist in horticulture and agronomy at Iowa State University. “Through timely weed management, longer crop rotations and appropriate manure-based fertilization, we have demonstrated comparable organic corn, soybean, oat, alfalfa, vegetable and fruit yields compared to conventional crops.”Kathleen Delate at organic field day
Organic agriculture was listed as a $43 billion industry in the United States in 2015, with the number of organic businesses increasing 12 percent last year.
Field day topics covered by ISU Extension and Outreach researchers and specialists will include cover crop use in southwestern Iowa, a tour of a demonstration site for the STRIPS project, and the effort to grow habitats for monarch butterflies and other pollinators.
Additional field day topics include:
The Long-Term Agroecological Research (LTAR) experiment, one of the oldest comparisons of organic and conventional crops in the U.S., supported by the Leopold Center for Sustainable Agriculture
An organic vegetable research experiment comparing performance of organic no-till production using a roller-crimper, compared to tilled and mulched systems
Soil and water quality data from the organic experiments presented by Dr. Cynthia Cambardella, Soil Scientist at the USDA-ARS in Ames
Organic growing season update and marketing opportunities from David Rosmann, Practical Farmers of Iowa board member and organic farmer
Discussion on an integrated crop and livestock project highlighting the benefits of grass-based cattle production, including a higher Omega-3 healthy fatty acid profile in the resulting meat
The field day will begin at 4 p.m. with a light supper of local, organic foods served at 6 p.m. The farm is located at 2557 Norfolk Avenue, Greenfield, Iowa. The farm can be found by driving two miles south of Greenfield on Highway 25, turning east on 260th Street for one mile before heading north on Norfolk Avenue.
Contact Kathleen Delate at kdelate@iastate.edu or 515-294-7069 for more information. Research information is available at: http://extension.agron.iastate.edu/organicag/. The field day is supported by Practical Farmers of Iowa.
Fertilizer Prices Dip Again
As has been the case for the last several weeks now, average retail fertilizer prices continued to be just slightly lower the fourth week of July 2016, according to fertilizer retailers surveyed by DTN.
All eight of the major fertilizers dipped in price compared to the previous month, but once again none were down by any significance. DAP averaged $459 per ton, MAP $492/ton, potash $356/ton and urea also at $356/ton. 10-34-0 was at $543/ton, anhydrous $545/ton, UAN28 $257/ton and UAN32 $304/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.33/lb.N, UAN28 $0.46/lb.N and UAN32 $0.48/lb.N.
For the time being, DTN's retail fertilizer prices remain lower compared to a year earlier. All fertilizers are now double digits lower.
UAN32 is 14% lower, 10-34-0 is 15% less expensive and MAP 17% lower. DAP is 19% lower and both anhydrous and UAN28 are 21% less expensive. Urea is 24% less expensive and potash is 27% less expensive compared to last year.
CWT-Assisted Member Export Sales Contracts Total 8.4 Million Pounds in July
Cooperatives Working Together member cooperatives captured 29 contracts to sell 1.993 million pounds of American-type cheese, 5.016 million pounds of butter and 1.411 million pounds of whole milk powder in July. These products will go to customers in Asia, Central America, the Middle East, North Africa and Oceania. The product will be shipped from July through November 2016.
In the first seven months of 2016, CWT assisted members in winning export sales contracts totaling 30.090 million pounds of American-type cheese, 10.366 million pounds of butter (82% milkfat) and 22.948 million pounds of whole milk powder for customers in 21 countries on five continents. The sales are the equivalent of 678.497 million pounds of milk on a milkfat basis.
Assisting CWT member cooperatives gain and maintain world market share through the Export Assistance program in the long-term expands the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affect all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.
Rain Disrupts German Grain Harvest; Yields Seen Down 10-20%
Recent rainfall in Germany has disrupted the country's wheat harvest, leading to possible yield losses of up to 20%, the German Farmers' Association said Wednesday.
Due to bad weather in recent days and weeks, only a third of the winter wheat harvest has been completed, the association said, emphasizing that achievable yields are highly uncertain. However, it said yield losses of 10-20% from last year are possible.
Similar yield losses have affected the winter barley harvest, which begins earlier in the year. The 2016 harvest is expected to fall by 10% from 2015 to 8.6 million metric tons, the association said.
Food Ingredient Prices Outpace Values of Other Convenient Food
Beginning in 2004, prices of basic food ingredients purchased in grocery stores grew faster than prices of ready-to-eat meals and snacks purchased in grocery stores. The USDA reports that basic ingredients are raw or minimally processed foods, such as milk, dried beans, and fresh meat, used in producing a meal or snack.
Ready-to-eat meals and snacks, such as refrigerated entrees and side dishes, yogurt, and candy, require no preparation beyond opening a container.
A recent ERS analysis found that between 1999 and 2010, spending by a typical American household on basic ingredients was not as responsive to these price changes as spending on ready-to-eat meals and snacks.
In the first quarter of 1999, 5.2 percent of the average food budget was spent on basic ingredients and 18.0 percent on ready-to-eat meals and snacks.
By the fourth quarter of 2007, the share of total food expenditures spent on basic ingredients remained fairly constant but increased during the 2007-09 recession.
The share of total food expenditures spent on ready-to-eat meals and snacks, on the other hand, steadily declined to 17.1 percent before rising back to 1999 levels during and following the 2007-09 recession.
Spray Technology Equipment Offer Helps Grower Maximize On-Target Herbicide Applications
Growers participating in Roundup Ready PLUS® Crop Management Solutions now have an opportunity to upgrade sprayers with broadcast hoods at low cost to maximize on-target applications during the 2017 Spray Technology Equipment Offer, which runs from July 1, 2016 to January 31, 2017.
Qualified growers will be offered a 30 percent discount and a 10 percent rebate on the purchase of either a Willmar Fabrication SPK645 self-propelled broadcast hooded retrofit kit, or a 642E three-point wheel boom broadcast hooded sprayer with over-center fold. Both products feature the Redball® Gen II Broadcast Spray-Hoods. When used during ground applications, Redball Gen II hoods are proven in field trials to help greatly improve sprayer accuracy and coverage, and minimize pesticide drift by up to 90 percent*, especially when combined with other drift reduction technologies such as drift retardant adjuvants or low drift nozzles.
“Roundup Ready PLUS Crop Management Solutions does an outstanding job of helping farmers choose the best strategies and products for effective over-lapping herbicide programs,” said Steve Claussen, president of Willmar Fabrication. “Together, Willmar and Monsanto are taking things to another step to help farmers improve accuracy and minimize waste when they are spraying their crops.”
To qualify, growers must be active participants in the Roundup Ready PLUS platform and purchase a total of 60 units of Roundup Ready 2 Xtend® Soybeans and/or Genuity® Roundup Ready 2 Yield® Soybeans, or a total of 12 units of Bollgard II® XtendFlex® Cotton before January 31, 2017. Upon purchase of the seed, growers will be offered a 30 percent discount when they purchase a qualifying hooded sprayer directly from Willmar using their Monsanto Tech ID number. By submitting their Willmar proof-of-purchase and the Monsanto Tech ID number, growers will then receive a 10 percent rebate on the qualifying equipment purchase.
A second option to this offer allows growers who purchase the required amount of seed to qualify for a 30 percent discount on the purchase of a qualifying hooded sprayer between February 1, 2017 and June 30, 2017.
Qualifying Equipment
The SPK645 Self-Propelled Broadcast Retrofit Kit includes Redball Gen II Broadcast Hoods, mounting brackets, hardware to mount hoods on center section, and right and left primary booms. The kit is easy to mount and available for most self-propelled makes and models. Initial installation takes approximately 10 hours. After hoods are installed, they can be removed or put back on in 10 minutes. Spray nozzles are mounted inside the hood to protect the spray pattern from wind disruption for better coverage.
The 642E Three-Point Broadcast Hooded Sprayer with Over-Center Fold features a new and simple design that offers the same great drift protection and spraying accuracy. Just like its 642 companion, the 642E is ideal for spraying field borders and buffers. The sprayer also demonstrates good stewardship and is equipped with Redball Gen II Broadcast Spray Hoods. The new optional trailer hitch attachment makes the 642E Hooded Sprayer more versatile than ever. The 642E Sprayer and hitch attachment are ideal for ag retailers as a rental unit. The hitch attachment allows for easy transportation behind a truck for delivery to farmers and field locations and a quick hook-up to a tractor. In addition the hitch attachment can be removed and the sprayer can operate with a three-point hitch.
To place an order, or for more details, call 877-865-5887. Find out more about broadcast hoods at www.willmarfab.com or on our YouTube channel.
For more about Roundup Ready PLUS Crop Management Solutions, visit http://www.roundupreadyplus.com/.
New Vive Crop Protection Products Debut on Acres in Six Midwestern States
After being introduced to the market in March, two products that feature a new nanotech delivery system for fungicide and insecticide have performed well in field observations.
The technology, called Allosperse™, uses polymer nanoparticle shuttles to control how and when crop protection products are delivered to the plant after being applied. This is new technology for agriculture that is comparable to how some pharmaceuticals are delivered to precise targets within the human body.
Farmers in Minnesota, Nebraska, South Dakota, North Dakota, Iowa and Illinois applied the two new products, AZteroid™ and Bifender™, to corn and soybean acres this spring. In addition, trials were conducted in potato and sugarbeet plots.
It’s still too early to assess yield results, said Dr. Darren Anderson, chief communications officer for Vive Crop Protection, but producer feedback and field observations have been excellent. “AZteroid is the first fungicide built for compatibility with liquid fertilizer, and producers were pleased with their new-found ability to apply starter fertilizer and fungicide in-furrow in a single pass.”
In field observations, corn and soybean plants grown with a combination of starter fertilizer and AZteroid applied in-furrow were larger with significantly more root mass when compared with plants that only received starter fertilizer.
This combination of AZteroid and fertilizer was applied as one uniform mixture, thanks to the Allosperse technology. Crop protection products typically fail to mix thoroughly with liquid fertilizer. However, with Allosperse this problem is no longer an issue. As a result, multiple products can be conveniently applied in a single pass across the field.
“One producer relayed a story of mixing AZteroid with starter fertilizer in the tank, only to be delayed for four days because of rain,” Dr. Anderson explained. “When he was finally able to get in the field, there was only a small amount of residue in the check balls and even that came right off once he got moving.”
Producers said the products worked well when mixed directly in the fertilizer tank as well as when applied through a Dosatron. There were no problems even with a high-zinc starter fertilizer, and the products exhibited excellent mixing properties with glyphosate and Capture® LFR®.
About AZteroid and Bifender
AZteroid contains azoxystrobin and provides broad-spectrum control for a variety of seed and seedling diseases. Bifender contains bifenthrin and provides broad-spectrum control of many serious insect pests dwelling at or below the soil surface.
Bifender has the same excellent fertilizer compatibility as AZteroid and can be tank-mixed with AZteroid by growers who want to simultaneously control seedling disease and soil-borne insect pests. Bifender is particularly useful applied to seed that has not received a seed treatment, but both Bifender and AZteroid can also be used to provide extra protection to treated seed.
Wednesday, August 3, 2016
Tuesday August 2 Ag News
Beef Feedlot Schools at Four Locations in August
Beef feedlot employees and supporting industry personnel will get a hands-on learning experience in feedlot horse care and ruminant nutrition at the 2016 Beef Feedlot Schools August 15, 16, 24, and 31 in Curtis, Holdrege, West Point and Mitchell.
The Nebraska Extension Feedlot School will be offered August 15 at the Nebraska College of Technical Agriculture Livestock Teaching Center in Curtis, at the Phelps County & Arena in Holdrege on August 16, at the Cuming County Fairgrounds in West Point on August 24, and at the Scottsbluff County Fairgrounds in Mitchell on August 31.
Registration begins at 12:30 p.m. with introductions and welcome at 1:00 p.m. The program will conclude by 5 p.m.
The afternoon sessions will cover feedlot horse management topics that include: horse psychology/behavior, body condition scoring, basic health grooming, tack, food care and other horse management topics unique to feedlot use. General ruminant nutrition concepts will also be discussed as they relate to animal health crews. This hands-on learning opportunity will include a team of Extension Faculty that can tailor the program to feedlot employee needs relate to horse care.
Pre-registration is available by phone, fax, e-mail or mail and requested one week prior to the event at each location. Cost is $20 and will be accepted with pre-registration at the door. Cost for those who have not pre-registered will be $30. For more information or a registration form contact Matt Luebbe at the Panhandle Research and Extension Center, 4502 Ave I, Scottsbluff NE 69361, phone 308-632-1260, fax 308-632-1365 or e-mail mluebbe2@unl.edu.
Beef Industry Recognizes Bosshamer for 20 Years of Service
The Nebraska Beef Council congratulates their executive director, Ann Marie Bosshamer for dedicating 20 years of service to the beef industry. Bosshamer leads a team that oversees the collection and management of the $1 per head Beef Checkoff in Nebraska.
Recognized by many Nebraskans as the “Voice of Beef,” Bosshamer has been featured on radio and television commercials as part of the “Beef. It’s What’s For Dinner” advertising campaign. Over the years, Bosshamer’s voice has joined the likes of Sam Elliott and Matthew McConaughey to deliver beef nutrition and preparation messages to consumers across the state.
“Ann Marie has been a tremendous asset to the beef community over the years,” said Buck Wehrbein, current board chairman for the Nebraska Beef Council. “We couldn’t ask for a more passionate, tireless ambassador for our industry.”
During her 20 years of service at the Beef Council, Bosshamer has worked closely with various other agriculture organizations including the Alliance for the Future of Agriculture (A-FAN), the U.S. Meat Export Federation and the Nebraska Department of Agriculture. She has served as the chair of the Federation Advisory Council and as a member of the National Cattlemen’s Beef Association Executive Committee. She is an alumni of the Nebraska LEAD program and served as a member of the Cattlemen’s Ball Advisory Board. Recently, Bosshamer was recognized as the newest UNL Bock & Bridle honoree.
“Ann Marie brings unmatched energy and dedication to the Nebraska Beef Council,” said Greg Ibach, director of the Nebraska Department of Agriculture. “Her passion for the beef industry is evident through her commitment to all Nebraska beef producers.”
Bosshamer graduated from UNL in 1992 with a degree in diversified agriculture. After a short time as a Nebraska Extension assistant in Lancaster County, she began her career with the Nebraska Beef Council on August 7, 1996 as Director of Consumer Affairs. She later transitioned into Director of Retail and Foodservice before becoming the Director of Marketing. In 2006 she was promoted to her current position as the Executive Director for the organization.
Bosshamer grew up on the family farm near David City. She and her husband Brian raise cattle near Amherst along with their two daughters, Brooke and Breanna.
BE WARY OF NITRATES
Bruce Anderson, NE Extension Forage Specialist
Will you graze or feed hay from cane, millet, or oats, or maybe corn stalk bales, to your cows this year? If so, don’t let high nitrate levels kill your cows or cause abortions.
Nitrates occur naturally in all forages. At low levels, nitrates either are converted into microbial protein by bacteria in the rumen or they are excreted. But when nitrate concentrations get too high, they can kill cows and maybe abort calves.
Some plants are much more likely to be high in nitrates than others. Annual grasses like cane, millet, oats, and even corn often have elevated nitrate levels. Weeds like pigweed, lambsquarter, and kochia can be especially troublesome. If your hay has lots of these weeds or is an annual grass, be alert to the potential for high nitrates.
That doesn’t mean these forages always are toxic or that high-nitrate forages can’t be grazed or fed safely. But always test these forages for nitrates in a lab to determine how to feed them safely.
There are many ways to use high nitrate forages safely. Diluting with grain or low nitrate forages is most common. Frequent, small meals that slowly increase the amount of nitrate fed helps cattle adapt to high nitrate forages. And make sure cattle have plenty of clean, low nitrate water at all times.
Nitrates cause deaths most often when very hungry animals are given free access to high nitrate hay or pasture. Avoid feeding even marginally high nitrate forage at this time because hungry cattle will rapidly eat an extra large meal. This could create an overload of nitrates to their system, leading to death.
More details about nitrates in forages are available in a NebGuide at your local extension office or online to help you feed safely.
Twelve Pursue 63rd Iowa State Dairy Princess Title
Twelve young women involved with the Iowa dairy community will compete to win the title of 63rd Iowa State Dairy Princess Wednesday,Aug. 10, at 8 p.m. at the Multi-Media Center of the Cattle Barn at the state fairgrounds in Des Moines. The princess and her alternate are charged with helping consumers learn more about dairy products and the farm families who tend the farms and cows that provide them.
The contestants are:
Ally Bierschenk, 16, daughter of Cary and Jen Bierschenk of Van Horne, representing Benton County;
Haley Burken, 16, daughter of Martin Burken and Lisa Burken of Clinton, representing Jackson and Clinton counties;
Kylie Burmeister, 19, daughter of Kerry and Keri Burmeister of Humboldt, representing Humboldt County;
Mikayla Gavin, 18, daughter of Mike and Kay Gavin of Lansing, representing Allamakee County;
Katelyn Goldsmith, 18, daughter of Jim and Kristi Goldsmith of Earlville, representing Delaware County;
Rachel Grober, 16, daughter of Todd and Sherry Grober of Ionia, representing Chickasaw County;
Sally Hamlett, 18, daughter of Mark and Jennifer Hamlett of Aurora, representing the Iowa Holstein Association;
Jennifer Hammerand, 18, daughter of Jerry and Lois Hammerand of Sherrill, representing Dubuque County;
Shana Hilgerson, 19, daughter of Scott and Suzy Hilgerson of Elkader, representing Clayton County;
Jordan Kalenske, 17, daughter of Tommy and Tracy Kalenske of Fairbank, representing Iowa Brown Swiss Association;
Mary Scott, 19, daughter of Mike and Kathleen Scott of Westgate, representing Iowa Holstein Association; and
Jessica Stempfle, 18, daughter of Paul and Jody Stempfle of Maynard, representing Fayette County.
The winners are chosen on the basis of their knowledge and enthusiasm about dairy, personality and communication ability during judging which begins Wednesday, Aug. 9. Both the princess and alternate will receive scholarships from Midwest Dairy Association, which sponsors the contest and princess program on behalf of Iowa’s dairy farmers.
The outgoing 2015-16 Iowa Dairy Princess is Kate Stewart, daughter of Matt and Diana Stewart of Oelwein, and the Alternate Princess is Leslie Sivesind, daughter of Dan and Jane Sivesind of Waukon. Their reigns will be completed at the end of the Iowa State Fair, and the new Princess and Alternate will begin their duties Sept. 1.
EPA's Latest Atrazine Report Ignores Science
A recent Environmental Protection Agency (EPA) draft report on atrazine ignores a large body of scientific evidence affirming the herbicide's safety, setting a dangerous precedent for all crop protection tools, says Brent Hostetler, a farmer from Plain City, Ohio, and chair of the National Corn Growers Association's Production and Stewardship Action Team.
"Federal law requires the EPA to base its decisions on science. And the science on this is pretty clear," said Hostetler. "Atrazine is one of the safest and most effective crop management tools farmers have. It's also one of the most studied pesticides in history-and more than 50 years' worth of data show it is safe."
EPA released its draft ecological risk assessment for atrazine in June 2016. All pesticides sold or distributed in the U.S. must be registered by EPA and re-registered every 15 years. Ecological risk assessments are one step of that registration process. EPA is accepting public comments on the ecological assessment through October 4.
In the report, EPA recommends an aquatic life level of concern (LOC) be set at 3.4 parts per billion (ppb) on a 60-day average. EPA's current LOC for atrazine is 10 ppb; however, scientific evidence points to a safe aquatic life LOC at 25 ppb or greater.
In drafting this assessment, EPA discounted several high-quality studies showing atrazine to be safe, relying instead on studies its own Science Advisory Panel deemed "flawed" in 2012.
"This sets a dangerous precedent for all crop protection tools," said Hostetler. "Atrazine deserves a thorough review based on sound science. This report does not meet that standard."
Farmers are urged to contact the EPA to voice their concerns at www.FightEPA.com.
USDA Continues to Quantify Ag Conservation Effects
The National Agricultural Statistics Service is contacting 25,000 farmers and ranchers now through August to take part in a national survey that will more accurately measure the environmental benefits associated with implementation and installation of conservation practices on agricultural land. The results will help further develop the science-based solutions for managing the agricultural landscape to improve environmental quality.
"The survey gives farmers and ranchers the power to provide a more complete and accurate picture of the conservation practices on their operations," said NASS Administrator Hubert Hamer. "If contacted, I encourage farmers and ranchers to participate. Their collective responses can directly benefit themselves and all producers by helping leaders focus on what producers need to install conservation practices that are best for their operations environmentally and financially."
By documenting the work of America's farmers to conserve natural resources while producing the food, fuel and fiber the world requires, participating farmers and ranchers support the case for continued science-based conservation programs that protect natural resources while supporting farm-related jobs. Survey results will guide USDA conservation policy and program development and help conservationists, farmers and ranchers more efficiently and effectively conserve natural resources.
In addition to helping determine the effectiveness of existing conservation practices, CEAP analysis also provides estimates of resources farmers may need to further protect the soil, water and related resources. Additional information about CEAP is available at the Conservation Effects Assessment Project survey web page.
In the first survey, which is shorter, NASS will determine eligibility for the more in-depth survey that will take place between October 2016 and February 2017.
Importing Raw Brazil Beef Political, Terribly Reckless
"Today's announcement by Agriculture Secretary Tom Vilsack stating he is reopening the U.S. market to raw Brazilian beef and Brazil is reopening its market to U.S. beef is a political tit-for-tat that will expose U.S. consumers and the U.S. cattle herd to an unnecessary and avoidable risk of disease," said R-CALF USA CEO Bill Bullard.
Bullard said Vilsack's announcement for the nearly simultaneous market reopenings reads like talking points created by high-paid, multinational meatpacker lobbyists.
Vilsack stated in his announcement: 'The Brazilian market offers excellent long-term potential for U.S. beef exporters. The United States looks forward to providing Brazil's 200-million-plus consumers, and growing middle class, with high-quality American beef and beef products.'
"This is absurd," said Bullard adding, "Brazil produces far more beef than it can consume. This is why, with the world's second largest cattle herd, which far and away dwarfs the size of the U.S. herd, Brazil is the world's third largest beef exporter, behind only India and Australia. And like India and Australia, Brazil's imports of U.S. beef for longer than a decade before it closed its borders to U.S. beef in 2003 were miniscule.
"To say that the Brazilian market affords U.S. cattle producers with economic opportunities would be laughable if not for the significant risk associated with Vilsack's weakening of our longstanding import restrictions for countries like Brazil that continue to battle foot-and-mouth disease (FMD) and other dangerous livestock diseases."
Bullard claims that one of the reasons it has taken so long for the USDA to approve raw beef imports from Brazil was because Brazilian cattle and their resulting beef continued to exceed tolerance levels for pesticides such as Ivermectin.
"Brazil lacks the resources and infrastructure to maintain health and safety standards that are at least equal to that of the United States," said Bullard adding, "That is why the USDA lowered the U.S. standard to that of mere equivalency - which essentially means "close enough."
"This reckless action by the Secretary, which helps multinational meatpackers leverage down U.S. cattle prices with increased imports that do not meet identical U.S. safety standards is yet another in a long line of failures by the USDA to do anything to strengthen the economic condition of the U.S. cattle industry.
"The Secretary capitulated on country-of-origin labeling (COOL) and continues to weaken U.S. import standards that protect our cattle herd and our customers from foreign diseases, including his most recent proposal to relax our import standards for raw beef from Namibia, Africa. He has refused to protect the competitiveness of the U.S. cattle market from antitrust and anticompetitive practices of the monopolistic meatpackers. He has refused to reform the beef checkoff program that funds a lobbying group that represents the economic interests of multinational meatpackers. And, under the Secretary's watch, our industry continues to experience an alarming exodus of cattle farmers and ranchers, feedlot numbers have declined by the tens of thousands, domestic beef production has fallen to the lowest level since before NAFTA, and the U.S. cattle herd shrank to the lowest level in over 70 years.
"Even the Secretary's depiction of exports over the past seven years as they relate to this particular announcement is deceitful at best. While the Secretary boasts that 'the past seven years have represented the strongest period in history for American agricultural exports,' this irresponsible statement purposely omits the fact that while the dollar value of beef and cattle exports did increase over the past seven years, they were decisively overwhelmed by record imports, which caused the trade deficit for our industry to grow from less than $1 billion in 2009 to more than $2.5 billion in 2015.
"We couldn't be more disappointed in the Secretary's actions, which clearly demonstrate that he is advocating the interests of multinational meatpackers at the expense of independent U.S. farmers and ranchers and consumers," concluded Bullard.
Mosaic Swings to a Loss
Fertilizer maker Mosaic Co. swung to a loss in its latest quarter, as its top line fell sharply, hurt by lower prices and volumes.
Mosaic stock fell 2.4% premarket to $26.63. Shares have lost 38% of their value over the past 12 months through Monday's close.
"We are taking the necessary actions to ensure Mosaic remains competitive across all points of the business cycle," said Chief Executive Joc O'Rourke.
The company faces a challenging environment, but it is optimistic about the second half of the year and sees signs of stabilization "with fertilizer prices bottoming and solid demand for our products," Mr. O'Rourke said.
He said the company is preserving its cash and trying to cut back on operating expenses to further help its bottom line. Mosaic had $1.1 billion in cash and $3.8 billion in long-term debt as of the quarter's end.
For the quarter ended June 30, the company posted a loss $10.2 million, or 3 cents a share, compared with a profit of $390.6 million, or $1.08 a share, a year earlier.
Overall, sales fell 32% to $1.7 billion, reflecting lower potash and phosphate prices and lower sales volumes.
Mosaic missed the expectations of analysts polled by Thomson Reuters, who had forecast 12 cents in per-share earnings on $1.74 billion in revenue.
The fertilizer company's phosphate segment reported $976 million in sales, a fall from $1.4 billion a year ago. Its sales in potash, a potassium-based fertilizer, also fell to $457 million from $730 million a year ago, weighed down by lower average realized prices and lower sales volumes. Mosaic said signing delays in India and China also hurt its buying activity and prices.
The international distribution segment saw $534 million in second-quarter sales, down from $637 million a year earlier. Average selling price was $374 per ton compared with $427 per ton a year ago.
ADM Reports Second Quarter Earnings of $0.48 per Share, $0.41 per Share on an Adjusted Basis
• Net earnings of $284 million
• Market conditions began to turn in the quarter, presenting improved opportunities for second half
Archer Daniels Midland Company (NYSE: ADM) today reported financial results for the quarter ended June 30, 2016.
“After a challenging start to the year, general market conditions began to turn at the end of the second quarter, providing us with improved opportunities for the second half of the year,” said ADM Chairman and CEO Juan Luciano. “Weak grain handling margins and merchandising results continued for Ag Services. Results for Corn included strong performance in sweeteners and starches offset by lower ethanol results. Our Oilseeds operations leveraged their flex capacity to crush record volumes of soybeans in the second quarter as global protein demand continues to grow. WFSI saw strong growth in flavors and systems, with operating profit in line with the year-ago quarter.
“During the quarter, we continued to advance our strategic plan, acquiring full ownership of Amazon Flavors, a leading Brazilian manufacturer of natural extracts, emulsions and compounds. We added soybean crushing capability to our facility in Straubing, Germany, allowing us to utilize flex capacity while also meeting growing customer demand for non-GMO soybean meal and oil in Western Europe.
We continued to invest in Asia’s growing and evolving food demand by further increasing our strategic ownership stake in Wilmar from 20 percent to 22 percent. In addition, we continue to make progress in the strategic review of our ethanol dry mills. We have implemented almost $150 million of new runrate savings actions in the first half of the year and remain on track to meet our $275 million target by the end of the calendar year. Also, we repurchased about $500 million of shares in the first half as we continue to execute on our balanced capital allocation framework.
“The first half of the year was very challenging. However, with improved fundamentals, we anticipate a more favorable second half of the year.”
During the first six months of 2016, the company returned $0.8 billion to shareholders through dividends and share repurchases.
S&W Seed Company Signs First U.S. Sorghum License Agreement
S&W Seed Company (Nasdaq: SANW) today announced the Company has signed a licensing agreement with a leading U.S.-based seed company for production and marketing of a proprietary hybrid grain sorghum variety in the United States as well as Mexico. The United States is one of the largest sorghum markets in the world with an estimated 597 million bushels harvested from approximately 7 to 8 million acres in 2015. This is the first U.S.-based licensing agreement by S&W for any of its sorghum varieties, positioning it to benefit in a crop that is gaining increasing popularity in food products due to its gluten-free characteristics, as well as its antioxidant, high protein, low fat, high fiber and non-GM properties.
“Sorghum is gaining increasing importance throughout the world due to its efficiency as a high-energy, drought tolerant crop that is environmentally friendly, and has favorable consumer attributes,” said Mark Grewal, CEO of S&W Seed Company. “We believe our hybrid grain sorghum varieties are some of the highest yielding in the world, and incorporate other important traits such as disease resistance and drought tolerance. This agreement allows us entry into a growing U.S. sorghum market with a producer that has tremendous capabilities to expand production and drive distribution. We look forward to a long-term and successful relationship with this new licensee.”
2015 sorghum food consumption increased by nearly 40 percent compared to 2014. More than 350 products on grocery store shelves contain sorghum, and mainstream brands are adding sorghum to new product formulations every year. U.S. sorghum is traditionally grown throughout the Sorghum Belt, which runs from South Dakota to Southern Texas, primarily on dryland acres. Recently, acreage increases have been seen in non-traditional areas like the Mississippi Delta and Southeast regions. The top five sorghum-producing states in 2015 were Kansas, Texas, Arkansas, Oklahoma, and Colorado. The company estimates the U.S. sorghum seed market at between 25 and 30 million pounds of planting seed, worth an estimated $100 million annually.
In addition to this new agreement in the United States, S&W has licensing agreements with different partners to provide its grain sorghum and forage sorghum genetics throughout the world, including Australia, parts of South America, South Africa, China, Pakistan and South Africa.
Beef feedlot employees and supporting industry personnel will get a hands-on learning experience in feedlot horse care and ruminant nutrition at the 2016 Beef Feedlot Schools August 15, 16, 24, and 31 in Curtis, Holdrege, West Point and Mitchell.
The Nebraska Extension Feedlot School will be offered August 15 at the Nebraska College of Technical Agriculture Livestock Teaching Center in Curtis, at the Phelps County & Arena in Holdrege on August 16, at the Cuming County Fairgrounds in West Point on August 24, and at the Scottsbluff County Fairgrounds in Mitchell on August 31.
Registration begins at 12:30 p.m. with introductions and welcome at 1:00 p.m. The program will conclude by 5 p.m.
The afternoon sessions will cover feedlot horse management topics that include: horse psychology/behavior, body condition scoring, basic health grooming, tack, food care and other horse management topics unique to feedlot use. General ruminant nutrition concepts will also be discussed as they relate to animal health crews. This hands-on learning opportunity will include a team of Extension Faculty that can tailor the program to feedlot employee needs relate to horse care.
Pre-registration is available by phone, fax, e-mail or mail and requested one week prior to the event at each location. Cost is $20 and will be accepted with pre-registration at the door. Cost for those who have not pre-registered will be $30. For more information or a registration form contact Matt Luebbe at the Panhandle Research and Extension Center, 4502 Ave I, Scottsbluff NE 69361, phone 308-632-1260, fax 308-632-1365 or e-mail mluebbe2@unl.edu.
Beef Industry Recognizes Bosshamer for 20 Years of Service
The Nebraska Beef Council congratulates their executive director, Ann Marie Bosshamer for dedicating 20 years of service to the beef industry. Bosshamer leads a team that oversees the collection and management of the $1 per head Beef Checkoff in Nebraska.
Recognized by many Nebraskans as the “Voice of Beef,” Bosshamer has been featured on radio and television commercials as part of the “Beef. It’s What’s For Dinner” advertising campaign. Over the years, Bosshamer’s voice has joined the likes of Sam Elliott and Matthew McConaughey to deliver beef nutrition and preparation messages to consumers across the state.
“Ann Marie has been a tremendous asset to the beef community over the years,” said Buck Wehrbein, current board chairman for the Nebraska Beef Council. “We couldn’t ask for a more passionate, tireless ambassador for our industry.”
During her 20 years of service at the Beef Council, Bosshamer has worked closely with various other agriculture organizations including the Alliance for the Future of Agriculture (A-FAN), the U.S. Meat Export Federation and the Nebraska Department of Agriculture. She has served as the chair of the Federation Advisory Council and as a member of the National Cattlemen’s Beef Association Executive Committee. She is an alumni of the Nebraska LEAD program and served as a member of the Cattlemen’s Ball Advisory Board. Recently, Bosshamer was recognized as the newest UNL Bock & Bridle honoree.
“Ann Marie brings unmatched energy and dedication to the Nebraska Beef Council,” said Greg Ibach, director of the Nebraska Department of Agriculture. “Her passion for the beef industry is evident through her commitment to all Nebraska beef producers.”
Bosshamer graduated from UNL in 1992 with a degree in diversified agriculture. After a short time as a Nebraska Extension assistant in Lancaster County, she began her career with the Nebraska Beef Council on August 7, 1996 as Director of Consumer Affairs. She later transitioned into Director of Retail and Foodservice before becoming the Director of Marketing. In 2006 she was promoted to her current position as the Executive Director for the organization.
Bosshamer grew up on the family farm near David City. She and her husband Brian raise cattle near Amherst along with their two daughters, Brooke and Breanna.
BE WARY OF NITRATES
Bruce Anderson, NE Extension Forage Specialist
Will you graze or feed hay from cane, millet, or oats, or maybe corn stalk bales, to your cows this year? If so, don’t let high nitrate levels kill your cows or cause abortions.
Nitrates occur naturally in all forages. At low levels, nitrates either are converted into microbial protein by bacteria in the rumen or they are excreted. But when nitrate concentrations get too high, they can kill cows and maybe abort calves.
Some plants are much more likely to be high in nitrates than others. Annual grasses like cane, millet, oats, and even corn often have elevated nitrate levels. Weeds like pigweed, lambsquarter, and kochia can be especially troublesome. If your hay has lots of these weeds or is an annual grass, be alert to the potential for high nitrates.
That doesn’t mean these forages always are toxic or that high-nitrate forages can’t be grazed or fed safely. But always test these forages for nitrates in a lab to determine how to feed them safely.
There are many ways to use high nitrate forages safely. Diluting with grain or low nitrate forages is most common. Frequent, small meals that slowly increase the amount of nitrate fed helps cattle adapt to high nitrate forages. And make sure cattle have plenty of clean, low nitrate water at all times.
Nitrates cause deaths most often when very hungry animals are given free access to high nitrate hay or pasture. Avoid feeding even marginally high nitrate forage at this time because hungry cattle will rapidly eat an extra large meal. This could create an overload of nitrates to their system, leading to death.
More details about nitrates in forages are available in a NebGuide at your local extension office or online to help you feed safely.
Twelve Pursue 63rd Iowa State Dairy Princess Title
Twelve young women involved with the Iowa dairy community will compete to win the title of 63rd Iowa State Dairy Princess Wednesday,Aug. 10, at 8 p.m. at the Multi-Media Center of the Cattle Barn at the state fairgrounds in Des Moines. The princess and her alternate are charged with helping consumers learn more about dairy products and the farm families who tend the farms and cows that provide them.
The contestants are:
Ally Bierschenk, 16, daughter of Cary and Jen Bierschenk of Van Horne, representing Benton County;
Haley Burken, 16, daughter of Martin Burken and Lisa Burken of Clinton, representing Jackson and Clinton counties;
Kylie Burmeister, 19, daughter of Kerry and Keri Burmeister of Humboldt, representing Humboldt County;
Mikayla Gavin, 18, daughter of Mike and Kay Gavin of Lansing, representing Allamakee County;
Katelyn Goldsmith, 18, daughter of Jim and Kristi Goldsmith of Earlville, representing Delaware County;
Rachel Grober, 16, daughter of Todd and Sherry Grober of Ionia, representing Chickasaw County;
Sally Hamlett, 18, daughter of Mark and Jennifer Hamlett of Aurora, representing the Iowa Holstein Association;
Jennifer Hammerand, 18, daughter of Jerry and Lois Hammerand of Sherrill, representing Dubuque County;
Shana Hilgerson, 19, daughter of Scott and Suzy Hilgerson of Elkader, representing Clayton County;
Jordan Kalenske, 17, daughter of Tommy and Tracy Kalenske of Fairbank, representing Iowa Brown Swiss Association;
Mary Scott, 19, daughter of Mike and Kathleen Scott of Westgate, representing Iowa Holstein Association; and
Jessica Stempfle, 18, daughter of Paul and Jody Stempfle of Maynard, representing Fayette County.
The winners are chosen on the basis of their knowledge and enthusiasm about dairy, personality and communication ability during judging which begins Wednesday, Aug. 9. Both the princess and alternate will receive scholarships from Midwest Dairy Association, which sponsors the contest and princess program on behalf of Iowa’s dairy farmers.
The outgoing 2015-16 Iowa Dairy Princess is Kate Stewart, daughter of Matt and Diana Stewart of Oelwein, and the Alternate Princess is Leslie Sivesind, daughter of Dan and Jane Sivesind of Waukon. Their reigns will be completed at the end of the Iowa State Fair, and the new Princess and Alternate will begin their duties Sept. 1.
EPA's Latest Atrazine Report Ignores Science
A recent Environmental Protection Agency (EPA) draft report on atrazine ignores a large body of scientific evidence affirming the herbicide's safety, setting a dangerous precedent for all crop protection tools, says Brent Hostetler, a farmer from Plain City, Ohio, and chair of the National Corn Growers Association's Production and Stewardship Action Team.
"Federal law requires the EPA to base its decisions on science. And the science on this is pretty clear," said Hostetler. "Atrazine is one of the safest and most effective crop management tools farmers have. It's also one of the most studied pesticides in history-and more than 50 years' worth of data show it is safe."
EPA released its draft ecological risk assessment for atrazine in June 2016. All pesticides sold or distributed in the U.S. must be registered by EPA and re-registered every 15 years. Ecological risk assessments are one step of that registration process. EPA is accepting public comments on the ecological assessment through October 4.
In the report, EPA recommends an aquatic life level of concern (LOC) be set at 3.4 parts per billion (ppb) on a 60-day average. EPA's current LOC for atrazine is 10 ppb; however, scientific evidence points to a safe aquatic life LOC at 25 ppb or greater.
In drafting this assessment, EPA discounted several high-quality studies showing atrazine to be safe, relying instead on studies its own Science Advisory Panel deemed "flawed" in 2012.
"This sets a dangerous precedent for all crop protection tools," said Hostetler. "Atrazine deserves a thorough review based on sound science. This report does not meet that standard."
Farmers are urged to contact the EPA to voice their concerns at www.FightEPA.com.
USDA Continues to Quantify Ag Conservation Effects
The National Agricultural Statistics Service is contacting 25,000 farmers and ranchers now through August to take part in a national survey that will more accurately measure the environmental benefits associated with implementation and installation of conservation practices on agricultural land. The results will help further develop the science-based solutions for managing the agricultural landscape to improve environmental quality.
"The survey gives farmers and ranchers the power to provide a more complete and accurate picture of the conservation practices on their operations," said NASS Administrator Hubert Hamer. "If contacted, I encourage farmers and ranchers to participate. Their collective responses can directly benefit themselves and all producers by helping leaders focus on what producers need to install conservation practices that are best for their operations environmentally and financially."
By documenting the work of America's farmers to conserve natural resources while producing the food, fuel and fiber the world requires, participating farmers and ranchers support the case for continued science-based conservation programs that protect natural resources while supporting farm-related jobs. Survey results will guide USDA conservation policy and program development and help conservationists, farmers and ranchers more efficiently and effectively conserve natural resources.
In addition to helping determine the effectiveness of existing conservation practices, CEAP analysis also provides estimates of resources farmers may need to further protect the soil, water and related resources. Additional information about CEAP is available at the Conservation Effects Assessment Project survey web page.
In the first survey, which is shorter, NASS will determine eligibility for the more in-depth survey that will take place between October 2016 and February 2017.
Importing Raw Brazil Beef Political, Terribly Reckless
"Today's announcement by Agriculture Secretary Tom Vilsack stating he is reopening the U.S. market to raw Brazilian beef and Brazil is reopening its market to U.S. beef is a political tit-for-tat that will expose U.S. consumers and the U.S. cattle herd to an unnecessary and avoidable risk of disease," said R-CALF USA CEO Bill Bullard.
Bullard said Vilsack's announcement for the nearly simultaneous market reopenings reads like talking points created by high-paid, multinational meatpacker lobbyists.
Vilsack stated in his announcement: 'The Brazilian market offers excellent long-term potential for U.S. beef exporters. The United States looks forward to providing Brazil's 200-million-plus consumers, and growing middle class, with high-quality American beef and beef products.'
"This is absurd," said Bullard adding, "Brazil produces far more beef than it can consume. This is why, with the world's second largest cattle herd, which far and away dwarfs the size of the U.S. herd, Brazil is the world's third largest beef exporter, behind only India and Australia. And like India and Australia, Brazil's imports of U.S. beef for longer than a decade before it closed its borders to U.S. beef in 2003 were miniscule.
"To say that the Brazilian market affords U.S. cattle producers with economic opportunities would be laughable if not for the significant risk associated with Vilsack's weakening of our longstanding import restrictions for countries like Brazil that continue to battle foot-and-mouth disease (FMD) and other dangerous livestock diseases."
Bullard claims that one of the reasons it has taken so long for the USDA to approve raw beef imports from Brazil was because Brazilian cattle and their resulting beef continued to exceed tolerance levels for pesticides such as Ivermectin.
"Brazil lacks the resources and infrastructure to maintain health and safety standards that are at least equal to that of the United States," said Bullard adding, "That is why the USDA lowered the U.S. standard to that of mere equivalency - which essentially means "close enough."
"This reckless action by the Secretary, which helps multinational meatpackers leverage down U.S. cattle prices with increased imports that do not meet identical U.S. safety standards is yet another in a long line of failures by the USDA to do anything to strengthen the economic condition of the U.S. cattle industry.
"The Secretary capitulated on country-of-origin labeling (COOL) and continues to weaken U.S. import standards that protect our cattle herd and our customers from foreign diseases, including his most recent proposal to relax our import standards for raw beef from Namibia, Africa. He has refused to protect the competitiveness of the U.S. cattle market from antitrust and anticompetitive practices of the monopolistic meatpackers. He has refused to reform the beef checkoff program that funds a lobbying group that represents the economic interests of multinational meatpackers. And, under the Secretary's watch, our industry continues to experience an alarming exodus of cattle farmers and ranchers, feedlot numbers have declined by the tens of thousands, domestic beef production has fallen to the lowest level since before NAFTA, and the U.S. cattle herd shrank to the lowest level in over 70 years.
"Even the Secretary's depiction of exports over the past seven years as they relate to this particular announcement is deceitful at best. While the Secretary boasts that 'the past seven years have represented the strongest period in history for American agricultural exports,' this irresponsible statement purposely omits the fact that while the dollar value of beef and cattle exports did increase over the past seven years, they were decisively overwhelmed by record imports, which caused the trade deficit for our industry to grow from less than $1 billion in 2009 to more than $2.5 billion in 2015.
"We couldn't be more disappointed in the Secretary's actions, which clearly demonstrate that he is advocating the interests of multinational meatpackers at the expense of independent U.S. farmers and ranchers and consumers," concluded Bullard.
Mosaic Swings to a Loss
Fertilizer maker Mosaic Co. swung to a loss in its latest quarter, as its top line fell sharply, hurt by lower prices and volumes.
Mosaic stock fell 2.4% premarket to $26.63. Shares have lost 38% of their value over the past 12 months through Monday's close.
"We are taking the necessary actions to ensure Mosaic remains competitive across all points of the business cycle," said Chief Executive Joc O'Rourke.
The company faces a challenging environment, but it is optimistic about the second half of the year and sees signs of stabilization "with fertilizer prices bottoming and solid demand for our products," Mr. O'Rourke said.
He said the company is preserving its cash and trying to cut back on operating expenses to further help its bottom line. Mosaic had $1.1 billion in cash and $3.8 billion in long-term debt as of the quarter's end.
For the quarter ended June 30, the company posted a loss $10.2 million, or 3 cents a share, compared with a profit of $390.6 million, or $1.08 a share, a year earlier.
Overall, sales fell 32% to $1.7 billion, reflecting lower potash and phosphate prices and lower sales volumes.
Mosaic missed the expectations of analysts polled by Thomson Reuters, who had forecast 12 cents in per-share earnings on $1.74 billion in revenue.
The fertilizer company's phosphate segment reported $976 million in sales, a fall from $1.4 billion a year ago. Its sales in potash, a potassium-based fertilizer, also fell to $457 million from $730 million a year ago, weighed down by lower average realized prices and lower sales volumes. Mosaic said signing delays in India and China also hurt its buying activity and prices.
The international distribution segment saw $534 million in second-quarter sales, down from $637 million a year earlier. Average selling price was $374 per ton compared with $427 per ton a year ago.
ADM Reports Second Quarter Earnings of $0.48 per Share, $0.41 per Share on an Adjusted Basis
• Net earnings of $284 million
• Market conditions began to turn in the quarter, presenting improved opportunities for second half
Archer Daniels Midland Company (NYSE: ADM) today reported financial results for the quarter ended June 30, 2016.
“After a challenging start to the year, general market conditions began to turn at the end of the second quarter, providing us with improved opportunities for the second half of the year,” said ADM Chairman and CEO Juan Luciano. “Weak grain handling margins and merchandising results continued for Ag Services. Results for Corn included strong performance in sweeteners and starches offset by lower ethanol results. Our Oilseeds operations leveraged their flex capacity to crush record volumes of soybeans in the second quarter as global protein demand continues to grow. WFSI saw strong growth in flavors and systems, with operating profit in line with the year-ago quarter.
“During the quarter, we continued to advance our strategic plan, acquiring full ownership of Amazon Flavors, a leading Brazilian manufacturer of natural extracts, emulsions and compounds. We added soybean crushing capability to our facility in Straubing, Germany, allowing us to utilize flex capacity while also meeting growing customer demand for non-GMO soybean meal and oil in Western Europe.
We continued to invest in Asia’s growing and evolving food demand by further increasing our strategic ownership stake in Wilmar from 20 percent to 22 percent. In addition, we continue to make progress in the strategic review of our ethanol dry mills. We have implemented almost $150 million of new runrate savings actions in the first half of the year and remain on track to meet our $275 million target by the end of the calendar year. Also, we repurchased about $500 million of shares in the first half as we continue to execute on our balanced capital allocation framework.
“The first half of the year was very challenging. However, with improved fundamentals, we anticipate a more favorable second half of the year.”
During the first six months of 2016, the company returned $0.8 billion to shareholders through dividends and share repurchases.
S&W Seed Company Signs First U.S. Sorghum License Agreement
S&W Seed Company (Nasdaq: SANW) today announced the Company has signed a licensing agreement with a leading U.S.-based seed company for production and marketing of a proprietary hybrid grain sorghum variety in the United States as well as Mexico. The United States is one of the largest sorghum markets in the world with an estimated 597 million bushels harvested from approximately 7 to 8 million acres in 2015. This is the first U.S.-based licensing agreement by S&W for any of its sorghum varieties, positioning it to benefit in a crop that is gaining increasing popularity in food products due to its gluten-free characteristics, as well as its antioxidant, high protein, low fat, high fiber and non-GM properties.
“Sorghum is gaining increasing importance throughout the world due to its efficiency as a high-energy, drought tolerant crop that is environmentally friendly, and has favorable consumer attributes,” said Mark Grewal, CEO of S&W Seed Company. “We believe our hybrid grain sorghum varieties are some of the highest yielding in the world, and incorporate other important traits such as disease resistance and drought tolerance. This agreement allows us entry into a growing U.S. sorghum market with a producer that has tremendous capabilities to expand production and drive distribution. We look forward to a long-term and successful relationship with this new licensee.”
2015 sorghum food consumption increased by nearly 40 percent compared to 2014. More than 350 products on grocery store shelves contain sorghum, and mainstream brands are adding sorghum to new product formulations every year. U.S. sorghum is traditionally grown throughout the Sorghum Belt, which runs from South Dakota to Southern Texas, primarily on dryland acres. Recently, acreage increases have been seen in non-traditional areas like the Mississippi Delta and Southeast regions. The top five sorghum-producing states in 2015 were Kansas, Texas, Arkansas, Oklahoma, and Colorado. The company estimates the U.S. sorghum seed market at between 25 and 30 million pounds of planting seed, worth an estimated $100 million annually.
In addition to this new agreement in the United States, S&W has licensing agreements with different partners to provide its grain sorghum and forage sorghum genetics throughout the world, including Australia, parts of South America, South Africa, China, Pakistan and South Africa.
Monday, August 1, 2016
Monday August 1 Crop Progress + Ag News
NEBRASKA CROP PROGRESS AND CONDITION
For the week ending July 31, 2016, temperatures averaged two to four degrees below normal, lessening crop moisture demands and livestock stress, according to the USDA’s National Agricultural Statistics Service. Precipitation was widespread, but amounts varied from over three inches in portions of central Nebraska to little or no accumulations in extreme eastern counties. Hail was reported in localized areas. There were 5.7 days suitable for fieldwork. Topsoil moisture supplies rated 7 percent very short, 27 short, 65 adequate, and 1 surplus. Subsoil moisture supplies rated 5 percent very short, 25 short, 69 adequate, and 1 surplus.
Field Crops Report:
Corn condition rated 1 percent very poor, 4 poor, 18 fair, 59 good, and 18 excellent. Corn silking was 95 percent, near 91 both last year and the five-year average. Dough was 25 percent, ahead of 20 last year, but near 26 average.
Sorghum condition rated 0 percent very poor, 0 poor, 16 fair, 68 good, and 16 excellent. Sorghum headed was 42 percent, behind 52 last year, but ahead of 37 average. Coloring was 1 percent, near 3 both last year and average.
Soybeans condition rated 1 percent very poor, 3 poor, 20 fair, 62 good, and 14 excellent. Soybeans blooming was 87 percent, near 86 both last year and average. Setting pods was 43 percent, behind 48 last year, and near 46 average.
Winter wheat condition rated 3 percent very poor, 8 poor, 24 fair, 50 good, and 15 excellent. Winter wheat harvested was 97 percent, ahead of 90 last year and 89 average.
Oats condition rated 2 percent very poor, 1 poor, 26 fair, 63 good, and 8 excellent. Oats harvested was 76 percent, ahead of 71 last year, but behind 82 average.
Alfalfa condition rated 4 percent very poor, 3 poor, 16 fair, 63 good, and 14 excellent. Alfalfa second cutting was 96 percent, ahead of 86 last year and 90 average. Third cutting was 41 percent, ahead of 29 last year and 32 average.
Livestock, Pasture and Range Report:
Pasture and range conditions rated 2 percent very poor, 4 poor, 21 fair, 62 good, and 11 excellent. Stock water supplies rated 1 percent very short, 8 short, 89 adequate, and 2 surplus.
IOWA CROP PROGRESS & CONDITION
Relatively dry conditions throughout the week were ideal for crop development and allowed Iowa farmers 5.4 days suitable for fieldwork for the week ending July 31, 2016, according to the USDA, National Agricultural Statistics Service. Activities for the week included cutting hay and aerial spraying of corn with fungicide and insecticide.
Topsoil moisture levels rated 2 percent very short, 10 percent short, 82 percent adequate and 6 percent surplus. Subsoil moisture levels rated 2 percent very short, 12 percent short, 81 percent adequate and 5 percent surplus.
Ninety-five percent of the corn crop reached the silking stage, five days ahead of last year and almost two weeks ahead of the five-year average. Thirty-five percent of the corn crop reached the dough stage. Isolated reports of corn starting to dent were received from across the State. Corn condition rated 83 percent good to excellent.
Soybeans blooming reached 90 percent, 6 days ahead of the previous year. Sixty-four percent of soybeans were setting pods, 5 days ahead of last year. Soybean condition rated 83 percent good to excellent. Seventy-eight percent of the oat crop for grain or seed was harvested, 2 days ahead of both last year and the average.
The second cutting of alfalfa hay reached 93 percent, more than 2 weeks ahead of last year and 10 days ahead of normal. The third cutting of alfalfa hay was 28 percent complete, 6 days ahead of average. Hay condition was rated 73 percent good to excellent, while pasture condition was rated 61 percent good to excellent. Reduced temperatures improved livestock conditions which were reported to be good.
IOWA PRELIMINARY WEATHER SUMMARY
Provided by Harry J. Hillaker, State Climatologist
Iowa Department of Agriculture & Land Stewardship
It was a dry week with seasonal temperatures across Iowa. Temperatures averaged slightly above normal in most areas through Wednesday (27th) and below normal for the remainder of the reporting week. Temperature extremes varied from Wednesday afternoon highs of 90 degrees at Sioux City and Donnellson to Saturday (30th) morning lows of 51 degrees at Sheldon and Spencer. Temperatures for the week as a whole averaged 0.6 degrees below normal. No rain of consequence fell over about one-half of the state with most of central, south central and southeast Iowa recording no rain at all. There were isolated thunderstorms on several days, but coverage was minimal. There was a small area of an inch or more of rain from western Crawford County down to Cass County on Wednesday. Similar storms popped up over the northeast and southeast corners of Iowa on Friday with localized inch or more rain amounts in northern Fayette, southern Allamakee and portions of Washington and Louisa counties. The maximum rainfall reported for the week was from Yellow River State Forest in southeast Allamakee County with 2.55 inches. The statewide average precipitation was 0.18 inches while normal for the week is 0.94 inches. This was the driest week in eleven weeks (mid-May).
USDA Weekly Crop Progress
Soybean condition ratings improved slightly while corn held steady during the week ended July 31, according to USDA's latest Crop Progress report released Monday.
The nation's corn crop is 91% silked and 30% in the dough stage, compared to 79% and 13% last week, 87% and 25% last year and five-year averages of 85% and 25%. Corn condition was unchanged from a week ago at 76% good to excellent.
Soybeans are 85% blooming and 54% setting pods, compared to 76% and 35% last week, 78% and 48% last year and five-year averages of 79% and 44%. Seventy-two percent of the nation's beans are rated good to excellent, up one percentage point from last week's 71%.
Winter wheat was 89% harvested as of Sunday, compared to 83% last week, 91% last year and an 86% average. "Monday's report is neutral for winter wheat," Hultman said.
Spring wheat harvest was reported for the first time this growing season at 10% complete. Last year at this time 6% of the harvest was complete and the average is 9%. Spring wheat condition was rated as 68% good to excellent, even with last week.
Cotton squaring was at 92%, compared to 85% last week, 90% last year and a 91% average. Setting bolls was reported at 54%, compared to 46% last week, 53% last year and a 57% average. Cotton condition worsened to 15% poor to very poor, compared to 13% last week.
Rice was 71% headed, compared to 57% last week, 60% last year and a 54% average. Rice condition worsened slightly to 66% good to excellent, compared to 67% last week.
Sorghum was 61% headed, compared to 49% last week, 54% last year and 50% on average. Coloring was reported at 26%, compared to 23% last week, 27% last year and a 29% average. Sorghum condition improved to 66% good to excellent compared to 65% last week.
Oats were 53% harvested as of Sunday, compared to 37% last week, 38% last year and a 42% average. Oats condition remained steady at 64% good to excellent.
Barley harvest was reported at 11% complete, compared to 14% last year and an 8% average. Barley condition was slightly worse at 72% good to excellent compared to 73% last week.
KREHBIEL NAMED HEAD OF UNL ANIMAL SCIENCE DEPARTMENT
Clinton Krehbiel, Regents Professor of Animal Science and Dennis and Marta White Endowed Chair at Oklahoma State University, will join the University of Nebraska-Lincoln Jan. 1, 2017, as head of the animal science department. In addition to his faculty responsibilities, Krehbiel is assistant department head of animal science at Oklahoma State University.
"The animal science department serves a part of agriculture that is very important to the economy of Nebraska," said Institute of Agriculture and Natural Resources Interim Vice Chancellor Ron Yoder. "I am pleased a leader and scientist with the stature of Dr. Krehbiel will be joining IANR to lead the department."
"I am honored to be named head of the animal science department at UNL," Krehbiel said. "With the current leadership and vision at IANR and UNL, I believe the department is in a position to continue operating as one of the strongest worldwide. I look forward to working with faculty, staff and the student body to discover how we can make a significant contribution to the people of Nebraska and the growing population throughout the world."
The animal science department provides resident instruction, extension programs and research in breeding and genetics, meat science, ruminant and non-ruminant nutrition, physiology, animal well-being, production and management. Species represented in these programs include beef cattle, dairy cattle, horses, poultry, swine, sheep, companion animals and laboratory animals. Students who graduate with a degree in animal science go into animal production, veterinary medicine, sales and marketing, research and many other career fields.
Krehbiel has been at Oklahoma State University since 2000, coming through the ranks of assistant, associate, professor and Regents Professor. He is the inaugural holder of the Dennis and Marta White Endowed Chair in Ruminant Nutrition and Health. Krehbiel’s research interests focus on developing methods to reduce costs of production and optimize outputs that enable cattle producers to improve animal health, increase consistency and quality of their end product and become more profitable.
Krehbiel received his bachelor and master's degrees from Kansas State University. He earned his doctorate from UNL in 1994 and was a postdoctoral fellow at the U.S. Meat Animal Research Center near Clay Center from March 1995 to July 1996. Prior to his time at Oklahoma State University, Krehbiel was an assistant professor of animal science at New Mexico State University.
Krehbiel succeeds Larry Berger, who retired June 30 after being the department head for six years. Phil Miller, professor of animal science, will continue to be the interim department head until Krehbiel assumes the role.
SPREADING MANURE ON ALFALFA
Bruce Anderson, NE Extension Forage Specialist
Will spreading manure during summer help or harm alfalfa? To avoid much damage, some guidelines are needed.
If you have manure to spread during summer, sometimes the only place available is an alfalfa field. But be careful; manure can cause problems on alfalfa.
Liquid manure can burn leaves due to salt injury, and dry manure can smother plants if it is applied too heavily or in large chunks. Manure can spread weed seeds, and the nitrogen in manure can stimulate grasses already in the alfalfa to become more competitive. Also, manure application equipment can damage alfalfa crowns and compact soil.
Obviously, to avoid any of these problems, spread the manure on other land if it is available. But if you have no other choice but to spread manure on alfalfa, follow these suggestions:
First — apply less than three thousand gallons of liquid manure or ten tons of solid manure per acre to minimize salt burn or smothering. If manure is dry, adjust the spreader to break up large chunks that can smother growth.
Second — spread manure immediately after removing a cutting to minimize direct contact with foliage.
Third — only spread manure when fields are dry and firm to limit soil compaction and avoid wheel traffic damaging plant crowns.
And finally — if you wish to stimulate grass yield, apply manure to fields with lots of grass, otherwise select fields with little grass in order to minimize grassy competition.
Manure is a great source of nutrients and can enhance biological activity and soil physical properties. But be careful when applying it to alfalfa so you don't do more harm than good.
Latino Beginning Farmer and Rancher Workshops Coming to Central Nebraska
The Center for Rural Affairs is offering a six-week series of Latino Beginning Farmer and Rancher workshops in Schuyler, Nebraska. The sessions will be held every Tuesday from August 23 to September 27, 2016.
Workshops are designed for those in the Latino community who are interested in starting their own farm or ranch.
“These in-depth workshops are perfect for those with the passion to start your own farm or ranch business,” said Lucia Schulz with the Center for Rural Affairs. “You'll learn about business and financial themes, as well as production and marketing. You don't have to have land or experience to attend.”
What: six-session series of Latino Beginning Farmer & Rancher Workshops
When: Tuesdays August 23-September 27
Where: Schuyler Public Library, 1123 A St, Schuyler, Ne 68661
Time: 5-7 p.m.
Workshops are free and open to the public, and will be instructed in both Spanish and English. Attendees will build their capacity for agricultural success, learning business management, financial literacy, and leadership tools. Expert speakers, including farmer and financial experts, will present on topics such as producer associations and marketing. At the end of the series, attendees will have the opportunity to visit specific area farms, participating in more hands-on workshops, to learn more about direct-marketing and crop and animal handling.
“The goal of the program is to help aspiring and beginning Latino farmers become viable producers and be connected to the resources necessary to be successful,” added Schulz. "We will be bringing in different agencies to talk about opportunities Beginning Latino farmers have. From crop insurance, to conservation programs and different low interest loans available, there is a lot of different opportunities out there."
For more information or to register, contact Lucia Schulz at lucias@cfra.org or (402) 750-5727. Additional information can be found here: http://www.cfra.org/latino-beg-farmer-workshops.
Green Plains Reports Second Quarter 2016 Financial Results
Green Plains Inc. (NASDAQ:GPRE) today announced financial results for the second quarter of 2016. Net income attributable to the company was $8.2 million, or $0.21 per diluted share, for the second quarter of 2016 compared with net income of $7.8 million, or $0.19 per diluted share, for the same period in 2015. Revenues were $887.7 million for the second quarter of 2016 compared with $744.5 million for the same period last year.
"We are pleased with our performance in the second quarter of 2016, which resulted in a $50 million increase of operating income compared with the first quarter," said Todd Becker, president and chief executive officer. "Our agribusiness and marketing and distribution segments reported strong results and the partnership segment generated its best results since going public in June of 2015. During the second quarter of 2016, we produced record ethanol volumes and with the current ethanol margin environment, we expect stronger production levels in the last half of the year."
During the second quarter, Green Plains produced 274.3 million gallons of ethanol compared with 238.7 million gallons for the same period in 2015. The consolidated ethanol crush margin was $45.3 million, or $0.17 per gallon, for the second quarter of 2016 compared with $46.5 million, or $0.20 per gallon, for the same period in 2015. The consolidated ethanol crush margin is the ethanol production segment's operating income before depreciation and amortization, which includes corn oil production, plus intercompany storage, transportation and other fees, net of related expenses.
Revenues were $1.6 billion for the six-month period ended June 30, 2016, compared with $1.5 billion for the same period in 2015. Net loss for the six-month period ended June 30, 2016, was $(15.9) million, or $(0.42) per diluted share, compared with net income of $4.5 million, or $0.11 per diluted share, for the same period in 2015.
"Ethanol demand continues to grow, supported by a 3% growth in domestic ethanol consumption and a 6% increase in U.S. ethanol exports year-to-date," commented Becker. "We continue to execute on our core strategy of capital allocation with an intense focus on growing our company, including both organic and acquisitive opportunities."
Second Quarter Highlights
During the second quarter of 2016, Green Plains repurchased 323,290 shares of common stock for approximately $6.0 million. To date, 514,990 shares of common stock have been repurchased for approximately $10.0 million under the company's $100 million share repurchase program.
On June 14, 2016, Green Plains and Jefferson Gulf Coast Energy Partners, a subsidiary of Fortress Transportation and Infrastructure Investors LLC, announced the formation of a 50/50 joint venture to construct and operate an intermodal export and import fuels terminal at Jefferson's existing Beaumont, Texas terminal. The joint venture is expected to invest approximately $55 million in its Phase I development, focused initially on storage and throughput capabilities for multiple grades of ethanol. Green Plains will offer its interest in the joint venture to the partnership once commercial development is complete.
On June 12, 2016, Green Plains entered into an asset purchase agreement with Abengoa Bioenergy of Illinois, LLC and Abengoa Bioenergy of Indiana, LLC to acquire two ethanol plants located in Madison, Ill. and Mount Vernon, Ind. for approximately $200 million in cash, plus certain inventory adjustments and liabilities. The two plants have combined annual production capacity of approximately 180 million gallons of ethanol. The sellers and other affiliates have pending cases under Chapter 11 of the U.S. Bankruptcy Code. The asset purchase agreement constitutes a stalking horse bid, which is subject to bidding procedures and receipt of higher or otherwise better bids at the proposed auction for the plants, and approval by the U.S. Bankruptcy Court. If Green Plains is not the successful bidder at the auction, the sellers must pay a break-up fee equal to $2.5 million per plant, plus reimbursement of expenses up to $500,000. Should Green Plains submit the winning bid, the company expects the transaction to close during the third quarter of 2016 and to offer the plants' transportation and storage assets to the partnership.
Results of Operations
Consolidated revenues increased $143.2 million for the three months ended June 30, 2016, compared with the same period in 2015. Revenues from ethanol, corn oil and grain sales increased $103.4 million, $21.4 million and $11.0 million, respectively. Ethanol revenues were affected by increased volumes sold, partially offset by lower average realized prices. Corn oil revenues and grain revenues were impacted by increased volumes sold.
Operating income increased $3.0 million for the three months ended June 30, 2016, compared with the same period last year primarily due to increased margins on merchant trading activity and cattle. Interest expense remained flat for the three months ended June 30, 2016, compared with the same period in 2015. Income tax expense was $5.5 million for the three months ended June 30, 2016, compared with $5.2 million for the same period in 2015.
Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the second quarter of 2016 was $47.7 million compared with $39.7 million for the same period last year.
USDA Announces Reopening of Brazilian Market to U.S. Beef Exports
The U.S. Department of Agriculture (USDA) has reached agreement with Brazil's Ministry of Agriculture, Livestock and Food Supply to allow access for U.S. beef and beef products to the Brazilian market for the first time since 2003. Brazil's action reflects the United States' negligible risk classification for bovine spongiform encephalopathy (BSE) by the World Organization for Animal Health (OIE) and aligns Brazil's regulations to the OIE's scientific international animal health guidelines.
"After many years of diligently working to regain access to the Brazilian market, the United States welcomes the news that Brazil has removed all barriers to U.S. beef and beef product exports," said Agriculture Secretary Tom Vilsack. "We are pleased that Brazil, a major agricultural producing and trading country, has aligned with science-based international standards, and we encourage other nations to do the same. Since last year alone, USDA has eliminated BSE-related restrictions in 16 countries, regaining market access for U.S. beef and pumping hundreds-of-millions of dollars into the American economy.
"The Brazilian market offers excellent long-term potential for U.S. beef exporters. The United States looks forward to providing Brazil's 200-million-plus consumers, and growing middle class, with high-quality American beef and beef products," Vilsack said.
Both countries will immediately begin updating their administrative procedures in order to allow trade to resume. U.S. companies will need to complete Brazil's regular facilities registration process.
In a separate decision, USDA's Food Safety and Inspection Service (FSIS) also recently determined that Brazil's food safety system governing meat products remains equivalent to that of the United States and that fresh (chilled or frozen) beef can be safely imported from Brazil. Following a multi-year science based review consistent with U.S. food safety regulations for countries that export meat, poultry and egg products to the U.S., FSIS is amending the list of eligible countries and products authorized for export to the United States to allow fresh (chilled or frozen) beef from Brazil.
The Brazilian agreement is just the latest example of USDA's ongoing efforts to knock down barriers to U.S. exports. In 2016 alone, these efforts have led to the reopening of the Saudi Arabian and Peruvian markets for U.S. beef, the South Korean market for U.S. poultry, and the South African market for U.S. poultry, pork and beef. In 2015, U.S. beef exports reached $6.3 billion thanks to aggressive efforts by USDA to eliminate BSE-related restrictions in 16 countries since January 2015, gaining additional market access for U.S. beef in Colombia, Costa Rica, Egypt, Guatemala, Iraq, Lebanon, Macau, New Zealand, Peru, Philippines, Saint Lucia, Singapore, South Africa, Ukraine, Vietnam and, now, Brazil.
Rabobank Releases Report on Protein Markets - Report explores outlook for U.S. Farmers
As U.S. protein producers are currently seeing record growth in demand, prices over the next couple years are predicted to fall. These findings are part of “Chickens, Cows, and Pigs… Oh My! Implications of Record U.S. Protein Expansion,” a new report from the Rabobank Food & Agribusiness Research and Advisory group, that explores the impact of growth on the future of the market.
Production of protein in the U.S. is projected to grow at a rate of 2.5 percent annually. However, after a 5 percent jump in consumption within the domestic market, there are still many questions about demand at home.
“While we don’t foresee margins falling to the lows of 2008 and 2009 as prices decline through 2018, any producer considering a possible sale or divestiture should move quickly, as the outlook for margins and valuation multiples isn’t moving in their favor,” notes report author and Rabobank senior analyst Will Sawyer.
The report finds the next couple years will be significant for all protein markets due to the strengthening of the dollar. Specifically against currencies such as the Canadian dollar, Japanese yen, and Mexican peso.
“2015 saw the largest increase in U.S. per capita meat consumption in 40 years. We expect growth to taper in the coming years (2016 through 2018) and for it to be much more evenly weighted between the three proteins,” says Sawyer.
The report, “Chickens, Cows, and Pigs… Oh My!: Implications of Record U.S. Protein Expansion,” also mentions that consumers can expect lower meat prices in the near future, especially in terms of beef and pork.
USDA Announces Commodity Credit Corporation Lending Rates for August 2016
The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for August 2016. The CCC borrowing rate-based charge for August is 0.500 percent, down from 0.625 percent in July.
The interest rate for crop year commodity loans less than one year disbursed during August is 1.500 percent, down from 1.625 percent in July.
Interest rates for Farm Storage Facility Loans approved for August are as follows, .750 percent with three-year loan terms, down from 1.000 percent in July; 1.125 percent with five-year loan terms, down from 1.250 percent in July; 1.375 percent with seven-year loan terms, down from 1.500 percent in July; 1.500 percent with 10-year loan terms, down from 1.750 percent in July and; 1.625 percent with 12-year loan terms, down from 1.875 percent in July.
CWT Assists with 3.7 Million Pounds of Cheese, Butter and Whole Milk Powder Export Sales
Cooperatives Working Together (CWT) has accepted seven requests for export assistance from Dairy Farmers of America, Maryland & Virginia Milk Producers Cooperative Association and Michigan Milk Producers Association, who have contracts to sell 174,165 pounds (79 metric tons) of Cheddar cheese, 3.417 million pounds (1550 metric tons) of butter and 88,185 pounds (40 metric tons) of whole milk powder to customers in Asia, Central America, the Middle East, North Africa and Oceania. The product has been contracted for delivery in the period from August through November 2016.
So far this year, CWT has assisted member cooperatives who have contracts to sell 30.091 million pounds of American-type cheeses, 10.366 million pounds of butter (82% milkfat) and 22.948 million pounds of whole milk powder to 21 countries on five continents. The sales are the equivalent of 678.497 million pounds of milk on a milkfat basis.
Assisting CWT members through the Export Assistance Program in the long term helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affects all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.
USDA Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks
Soybeans crushed for crude oil was 4.62 million tons (154 million bushels) in June 2016, compared to 4.83 million tons (161 million bushels) in May 2016 and 4.55 million tons (152 million bushels) in June 2015. Crude oil produced was 1.79 billion pounds down 5 percent from May 2016 but up 5 percent from June 2015. Soybean once refined oil production at 1.37 billion pounds during June 2016 decreased 5 percent from May 2016 and decreased 6 percent from June 2015.
Canola seeds crushed for crude oil was 194 thousand tons in June 2016, compared to 132 thousand tons in May 2016 and 104 thousand tons in June 2015. Canola crude oil produced was 168 million pounds up 49 percent from May 2016 and up 89 percent from June 2015. Canola once refined oil production at 152 million pounds during June 2016 was up 11 percent from May 2016 and up 42 percent from June 2015. Cottonseeds crushed for crude oil was 114 thousand tons in June 2016, compared to 127 thousand tons in May 2016 and 126 thousand tons in June 2015. Cottonseed crude oil produced was 32.2 million pounds, down 16 percent from May 2016 and down 17 percent from June 2015. Cottonseed once refined oil production at 37.4 million pounds during June 2016 was down 15 percent from May 2016 and down 23 percent from June 2015.
Edible tallow production was 74.1 million pounds during June 2016, down 11 percent from May 2016 but up 15 percent from June 2015. Inedible tallow production was 291 million pounds during June 2016, down slightly from May 2016 but up 3 percent from June 2015. Technical tallow production was 97.7 million pounds during June 2016, down 13 percent from May 2016 but up 13 percent from June 2015. Choice white grease production at 116 million pounds during June 2016 decreased 1 percent from May 2016 and decreased 1 percent from June 2015.
USDA Grain Crushings and Co-Products Production
Total corn consumed for alcohol and other uses was 472 million bushels in June 2016. Total corn consumption was down 1 percent from May 2016 and down 4 percent from June 2015. June 2016 usage included 90.9 percent for alcohol and 9.1 percent for other purposes. Corn for beverage alcohol totaled 2.60 million bushels, down 9 percent from May 2016 but up 4 percent from June 2015. Corn for fuel alcohol, at 421 million bushels, was down 1 percent from May 2016 and down 5 percent from June 2015. Corn consumed in June 2016 for dry milling fuel production and wet milling fuel production was 89.4 percent and 10.6 percent respectively.
Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.89 million tons during June 2016, up 3 percent from May 2016 but down 3 percent from June 2015. Distillers wet grains (DWG) 65 percent or more moisture was 1.22 million tons in June 2016, down 1 percent from May 2016 and down 5 percent from June 2015.
Wet mill corn gluten feed production was 332 thousand tons during June 2016, down slightly from May 2016 but up 3 percent from June 2015. Wet corn gluten feed 40 to 60 percent moisture was 312 thousand tons in June 2016, up 2 percent from May 2016 and up 3 percent from June 2015.
USDA Flour Milling Products
All wheat ground for flour during the second quarter 2016 was 225 million bushels, up slightly from the first quarter 2016 grind of 224 million bushels but down 1 percent from the second quarter 2015 grind of 227 million bushels. Second quarter 2016 total flour production was 104 million hundredweight, up slightly from the first quarter 2016 but down 1 percent from the second quarter 2015. Whole wheat flour production at 5.17 million hundredweight during the second quarter 2016 accounted for 5 percent of the total flour production. Millfeed production from wheat in the second quarter 2016 was 1.62 million tons. The daily 24-hour milling capacity of wheat flour during the second quarter 2016 was 1.61 million hundredweight.
Durum wheat ground for flour and semolina production during the second quarter of 2016 totaled 15.6 million bushels, down 7 percent from the first quarter 2016 but up 3 percent from the second quarter 2015. Second quarter 2016 durum flour and semolina production was 7.43 million hundredweight, down 4 percent from the first quarter 2016 but up 5 percent from the second quarter 2015. Whole wheat durum flour and semolina production was 158 thousand hundredweight, down 24 percent from 209 thousand hundredweight in the first quarter 2016 and down 7 percent from 170 thousand hundredweight from the second quarter 2015. Second quarter durum wheat millfeed production was 107 thousand tons and the daily 24-hour milling capacity for durum and
semolina production was 127 thousand hundredweight.
Rye ground for flour during the second quarter of 2016 was 633 thousand bushels, up 16 percent from the first quarter 2016 and up 21 percent from the second quarter 2015. Rye flour production during the second quarter of 2016 was 306 thousand hundredweight, compared to 266 thousand hundredweight in the previous quarter and 250 thousand hundredweight in the same quarter for the previous year. The daily 24-hour milling capacity for rye milling was 9.38 thousand hundredweight for the second quarter 2016.
EPA Releases Minutes from Third FIFRA SAP Questioning Role of Epidemiological Studies
On July 20, the U.S. Environmental Protection Agency (EPA) released the minutes from a Federal Insecticide, Fungicide & Rodenticide Act (FIFRA) Scientific Advisory Panel (SAP) titled, “Chlorpyrifos: Analysis of Biomonitoring Data.” During an open public meeting held by the SAP on April 19-21, panel members listened to comments from a diverse audience regarding EPA’s proposed use of an epidemiological study produced by the Columbia Center for Children’ s Environmental Health (CCCEH) in human health risk assessments. The minutes, dated July 15, and the final transcript confirm that the SAP questioned the usefulness of the outcomes from this specific epidemiological study.
“We see yet again, in the minutes submitted to EPA by the SAP, that the panelists question EPA’s shift to the use of certain epidemiological study outcomes, rather than toxicological data, in human health risk assessments,” stated Jay Vroom, president and CEO of CropLife America (CLA). “In our written comments submitted to the SAP, we specifically asked panelists to examine the question, ‘Can these epidemiological studies be appropriately used for quantitative risk assessment purposes?’ The answer is loud and clear – a resounding no. The crop protection industry now calls on EPA to base regulatory decision-making on hard toxicological data, helping farmers get and keep access to highly advanced products and keeping our food production standards high.”
Highlights from the SAP minutes include:
- The SAP agrees with EPA that applying additional safety factors to the existing point of departure to account for a potential new mode of action would be problematic due to the challenges in justifying any particular value for such an adjustment;
- Some SAP members stated that the sample size may have limited the CCCEH study’s ability to examine the association of chlorpyrifos blood concentration on neurodevelopment in more vulnerable populations; and
- With respect to fetal exposure, the Panel noted that much uncertainty in the use of cord blood as a measure would be removed if the raw data from CCCEH were provided for reanalysis.
“We applaud the report of the SAP as the majority of the panel did not agree with the Agency’s use of the results from a single longitudinal study to make a decision based on the use of cord blood measures of chlorpyrifos to initiate risk assessment,” noted Dr. Janet Collins, senior vice president of science and regulatory affairs at CLA. “These epidemiologic studies were not designed to demonstrate cause of any human health impact and the effects of exposure to a single compound.”
Collins added, “We further applaud the SAP in its determination the panel did not have confidence that the CCCEH analytical data could accurately be used in quantitative risk assessment as a point of departure, due to the many uncertainties that cannot be clarified, since the raw data are not available for verification or validation of the analytical data. CLA has maintained for years that epidemiological data have an important role for EPA in decision making, but that the CCCEH study and EPA’s various considered uses of it do not serve a human health purpose.”
Early Registration Discount for the 2016 Global Conference on Sustainable Beef ends on August 15
The Conference will be held October 4-7, 2016 at The Fairmont Hotel in Banff Springs, Alberta, Canada. The conference's focus is building on experience both regionally and globally. It brings together beef value chain stakeholders and others from across the globe who are committed to making beef production more sustainable. In addition to seminars and moderator-led discussion groups, recent industry research will be presented. Participants will also have the opportunity to see sustainability at work through special tours arranged by the Canadian Roundtable for Sustainable Beef.
The Conference will also feature several sessions created to be highly interactive and focused on work being done in various regions of the world in myriad areas of beef sustainability. In 2014, GRSB adopted a set of five core principles to define global sustainable beef including natural resources; people & the community; animal health & welfare; food; and efficiency & innovation. These principles will be at the center of discussions of future efforts to advance sustainable practices globally in the production, processing, and merchandising of beef.
Dr. David Hughes, Emeritus Professor of Food Marketing at Imperial College London, is the Keynote Speaker for the Conference. Dr. Hughes is a much sought-after speaker on a wide variety of global food industry topics, including retail and consumer trends. He also serves as a consultant to food and beverage companies worldwide to assist them in management training, strategy, and leadership level decision making.
Early Registration Discount ends on August 15. Register today at https://www.regonline.com/2016GlobalConference.
More information on the 2016 Global Conference on Sustainable Beef is available at http://www.grsbeef.org/events.
Appeals Board Allows Growers to Use Existing Stocks of Belt While Siding with EPA on Cancellation
The U.S. Environmental Protection Agency's Environmental Appeals Board (EAB) has upheld an earlier EPA decision to cancel registration for Bayer’s insecticide flubendiamide, marketed in the U.S. as Belt®, but is allowing sales of existing stocks to growers.
The EAB overruled EPA’s proposed existing stocks determination and will permit distributors and retailers to distribute and sell remaining flubendiamide inventories, and permit growers to continue using product consistent with label use directions.
While Bayer intends to comply with the order, it will fully review the EAB’s decision and evaluate its options going forward.
Today’s ruling follows an earlier appeal to the EPA’s Administrative Law Judge, who ruled in favor of the Agency after excluding any documentary evidence and testimony regarding the scientific issues raised by EPA’s actions on flubendiamide.
From Dana Sargent, Bayer’s Vice President of Regulatory Affairs:
“Bayer maintains the EPA’s actions on flubendiamide are unlawful and inconsistent with sound regulatory risk assessment practices. The science supporting the registration of flubendiamide may be complex, but it is solid, and it’s unfortunate that we were denied the opportunity to argue the scientific merits of our case. You cannot use the regulatory process as a shield to avoid engaging in meaningful dialogue, but that is exactly what the EPA has done.”
“Since we first learned of the EPA’s actions on flubendiamide a few months ago, we have tried our best to argue on behalf of our industry and the many growers who depend on these products for sustainable pest control. In the end it is they who will be most impacted by this decision.”
“The ruling was narrowly focused on process issues around the registration. It is notable that it did not weigh in on the lawfulness of EPA’s cancellation nor did it consider the fundamental science underpinning Bayer’s argument.”
“I want to express Bayer’s deep appreciation to everyone who supported us during this process, with a special thank you to Crop Life America, Agriculture Retailers Association, American Soybean Association, and all the groups that signed amici in support of a sound science regulatory process.”
Growers, retailers and distributors with questions about this issue, should contact their local Bayer Field Sales Representative, or call 1-866-99-BAYER (1-866-992-2937).
For the week ending July 31, 2016, temperatures averaged two to four degrees below normal, lessening crop moisture demands and livestock stress, according to the USDA’s National Agricultural Statistics Service. Precipitation was widespread, but amounts varied from over three inches in portions of central Nebraska to little or no accumulations in extreme eastern counties. Hail was reported in localized areas. There were 5.7 days suitable for fieldwork. Topsoil moisture supplies rated 7 percent very short, 27 short, 65 adequate, and 1 surplus. Subsoil moisture supplies rated 5 percent very short, 25 short, 69 adequate, and 1 surplus.
Field Crops Report:
Corn condition rated 1 percent very poor, 4 poor, 18 fair, 59 good, and 18 excellent. Corn silking was 95 percent, near 91 both last year and the five-year average. Dough was 25 percent, ahead of 20 last year, but near 26 average.
Sorghum condition rated 0 percent very poor, 0 poor, 16 fair, 68 good, and 16 excellent. Sorghum headed was 42 percent, behind 52 last year, but ahead of 37 average. Coloring was 1 percent, near 3 both last year and average.
Soybeans condition rated 1 percent very poor, 3 poor, 20 fair, 62 good, and 14 excellent. Soybeans blooming was 87 percent, near 86 both last year and average. Setting pods was 43 percent, behind 48 last year, and near 46 average.
Winter wheat condition rated 3 percent very poor, 8 poor, 24 fair, 50 good, and 15 excellent. Winter wheat harvested was 97 percent, ahead of 90 last year and 89 average.
Oats condition rated 2 percent very poor, 1 poor, 26 fair, 63 good, and 8 excellent. Oats harvested was 76 percent, ahead of 71 last year, but behind 82 average.
Alfalfa condition rated 4 percent very poor, 3 poor, 16 fair, 63 good, and 14 excellent. Alfalfa second cutting was 96 percent, ahead of 86 last year and 90 average. Third cutting was 41 percent, ahead of 29 last year and 32 average.
Livestock, Pasture and Range Report:
Pasture and range conditions rated 2 percent very poor, 4 poor, 21 fair, 62 good, and 11 excellent. Stock water supplies rated 1 percent very short, 8 short, 89 adequate, and 2 surplus.
IOWA CROP PROGRESS & CONDITION
Relatively dry conditions throughout the week were ideal for crop development and allowed Iowa farmers 5.4 days suitable for fieldwork for the week ending July 31, 2016, according to the USDA, National Agricultural Statistics Service. Activities for the week included cutting hay and aerial spraying of corn with fungicide and insecticide.
Topsoil moisture levels rated 2 percent very short, 10 percent short, 82 percent adequate and 6 percent surplus. Subsoil moisture levels rated 2 percent very short, 12 percent short, 81 percent adequate and 5 percent surplus.
Ninety-five percent of the corn crop reached the silking stage, five days ahead of last year and almost two weeks ahead of the five-year average. Thirty-five percent of the corn crop reached the dough stage. Isolated reports of corn starting to dent were received from across the State. Corn condition rated 83 percent good to excellent.
Soybeans blooming reached 90 percent, 6 days ahead of the previous year. Sixty-four percent of soybeans were setting pods, 5 days ahead of last year. Soybean condition rated 83 percent good to excellent. Seventy-eight percent of the oat crop for grain or seed was harvested, 2 days ahead of both last year and the average.
The second cutting of alfalfa hay reached 93 percent, more than 2 weeks ahead of last year and 10 days ahead of normal. The third cutting of alfalfa hay was 28 percent complete, 6 days ahead of average. Hay condition was rated 73 percent good to excellent, while pasture condition was rated 61 percent good to excellent. Reduced temperatures improved livestock conditions which were reported to be good.
IOWA PRELIMINARY WEATHER SUMMARY
Provided by Harry J. Hillaker, State Climatologist
Iowa Department of Agriculture & Land Stewardship
It was a dry week with seasonal temperatures across Iowa. Temperatures averaged slightly above normal in most areas through Wednesday (27th) and below normal for the remainder of the reporting week. Temperature extremes varied from Wednesday afternoon highs of 90 degrees at Sioux City and Donnellson to Saturday (30th) morning lows of 51 degrees at Sheldon and Spencer. Temperatures for the week as a whole averaged 0.6 degrees below normal. No rain of consequence fell over about one-half of the state with most of central, south central and southeast Iowa recording no rain at all. There were isolated thunderstorms on several days, but coverage was minimal. There was a small area of an inch or more of rain from western Crawford County down to Cass County on Wednesday. Similar storms popped up over the northeast and southeast corners of Iowa on Friday with localized inch or more rain amounts in northern Fayette, southern Allamakee and portions of Washington and Louisa counties. The maximum rainfall reported for the week was from Yellow River State Forest in southeast Allamakee County with 2.55 inches. The statewide average precipitation was 0.18 inches while normal for the week is 0.94 inches. This was the driest week in eleven weeks (mid-May).
USDA Weekly Crop Progress
Soybean condition ratings improved slightly while corn held steady during the week ended July 31, according to USDA's latest Crop Progress report released Monday.
The nation's corn crop is 91% silked and 30% in the dough stage, compared to 79% and 13% last week, 87% and 25% last year and five-year averages of 85% and 25%. Corn condition was unchanged from a week ago at 76% good to excellent.
Soybeans are 85% blooming and 54% setting pods, compared to 76% and 35% last week, 78% and 48% last year and five-year averages of 79% and 44%. Seventy-two percent of the nation's beans are rated good to excellent, up one percentage point from last week's 71%.
Winter wheat was 89% harvested as of Sunday, compared to 83% last week, 91% last year and an 86% average. "Monday's report is neutral for winter wheat," Hultman said.
Spring wheat harvest was reported for the first time this growing season at 10% complete. Last year at this time 6% of the harvest was complete and the average is 9%. Spring wheat condition was rated as 68% good to excellent, even with last week.
Cotton squaring was at 92%, compared to 85% last week, 90% last year and a 91% average. Setting bolls was reported at 54%, compared to 46% last week, 53% last year and a 57% average. Cotton condition worsened to 15% poor to very poor, compared to 13% last week.
Rice was 71% headed, compared to 57% last week, 60% last year and a 54% average. Rice condition worsened slightly to 66% good to excellent, compared to 67% last week.
Sorghum was 61% headed, compared to 49% last week, 54% last year and 50% on average. Coloring was reported at 26%, compared to 23% last week, 27% last year and a 29% average. Sorghum condition improved to 66% good to excellent compared to 65% last week.
Oats were 53% harvested as of Sunday, compared to 37% last week, 38% last year and a 42% average. Oats condition remained steady at 64% good to excellent.
Barley harvest was reported at 11% complete, compared to 14% last year and an 8% average. Barley condition was slightly worse at 72% good to excellent compared to 73% last week.
KREHBIEL NAMED HEAD OF UNL ANIMAL SCIENCE DEPARTMENT
Clinton Krehbiel, Regents Professor of Animal Science and Dennis and Marta White Endowed Chair at Oklahoma State University, will join the University of Nebraska-Lincoln Jan. 1, 2017, as head of the animal science department. In addition to his faculty responsibilities, Krehbiel is assistant department head of animal science at Oklahoma State University.
"The animal science department serves a part of agriculture that is very important to the economy of Nebraska," said Institute of Agriculture and Natural Resources Interim Vice Chancellor Ron Yoder. "I am pleased a leader and scientist with the stature of Dr. Krehbiel will be joining IANR to lead the department."
"I am honored to be named head of the animal science department at UNL," Krehbiel said. "With the current leadership and vision at IANR and UNL, I believe the department is in a position to continue operating as one of the strongest worldwide. I look forward to working with faculty, staff and the student body to discover how we can make a significant contribution to the people of Nebraska and the growing population throughout the world."
The animal science department provides resident instruction, extension programs and research in breeding and genetics, meat science, ruminant and non-ruminant nutrition, physiology, animal well-being, production and management. Species represented in these programs include beef cattle, dairy cattle, horses, poultry, swine, sheep, companion animals and laboratory animals. Students who graduate with a degree in animal science go into animal production, veterinary medicine, sales and marketing, research and many other career fields.
Krehbiel has been at Oklahoma State University since 2000, coming through the ranks of assistant, associate, professor and Regents Professor. He is the inaugural holder of the Dennis and Marta White Endowed Chair in Ruminant Nutrition and Health. Krehbiel’s research interests focus on developing methods to reduce costs of production and optimize outputs that enable cattle producers to improve animal health, increase consistency and quality of their end product and become more profitable.
Krehbiel received his bachelor and master's degrees from Kansas State University. He earned his doctorate from UNL in 1994 and was a postdoctoral fellow at the U.S. Meat Animal Research Center near Clay Center from March 1995 to July 1996. Prior to his time at Oklahoma State University, Krehbiel was an assistant professor of animal science at New Mexico State University.
Krehbiel succeeds Larry Berger, who retired June 30 after being the department head for six years. Phil Miller, professor of animal science, will continue to be the interim department head until Krehbiel assumes the role.
SPREADING MANURE ON ALFALFA
Bruce Anderson, NE Extension Forage Specialist
Will spreading manure during summer help or harm alfalfa? To avoid much damage, some guidelines are needed.
If you have manure to spread during summer, sometimes the only place available is an alfalfa field. But be careful; manure can cause problems on alfalfa.
Liquid manure can burn leaves due to salt injury, and dry manure can smother plants if it is applied too heavily or in large chunks. Manure can spread weed seeds, and the nitrogen in manure can stimulate grasses already in the alfalfa to become more competitive. Also, manure application equipment can damage alfalfa crowns and compact soil.
Obviously, to avoid any of these problems, spread the manure on other land if it is available. But if you have no other choice but to spread manure on alfalfa, follow these suggestions:
First — apply less than three thousand gallons of liquid manure or ten tons of solid manure per acre to minimize salt burn or smothering. If manure is dry, adjust the spreader to break up large chunks that can smother growth.
Second — spread manure immediately after removing a cutting to minimize direct contact with foliage.
Third — only spread manure when fields are dry and firm to limit soil compaction and avoid wheel traffic damaging plant crowns.
And finally — if you wish to stimulate grass yield, apply manure to fields with lots of grass, otherwise select fields with little grass in order to minimize grassy competition.
Manure is a great source of nutrients and can enhance biological activity and soil physical properties. But be careful when applying it to alfalfa so you don't do more harm than good.
Latino Beginning Farmer and Rancher Workshops Coming to Central Nebraska
The Center for Rural Affairs is offering a six-week series of Latino Beginning Farmer and Rancher workshops in Schuyler, Nebraska. The sessions will be held every Tuesday from August 23 to September 27, 2016.
Workshops are designed for those in the Latino community who are interested in starting their own farm or ranch.
“These in-depth workshops are perfect for those with the passion to start your own farm or ranch business,” said Lucia Schulz with the Center for Rural Affairs. “You'll learn about business and financial themes, as well as production and marketing. You don't have to have land or experience to attend.”
What: six-session series of Latino Beginning Farmer & Rancher Workshops
When: Tuesdays August 23-September 27
Where: Schuyler Public Library, 1123 A St, Schuyler, Ne 68661
Time: 5-7 p.m.
Workshops are free and open to the public, and will be instructed in both Spanish and English. Attendees will build their capacity for agricultural success, learning business management, financial literacy, and leadership tools. Expert speakers, including farmer and financial experts, will present on topics such as producer associations and marketing. At the end of the series, attendees will have the opportunity to visit specific area farms, participating in more hands-on workshops, to learn more about direct-marketing and crop and animal handling.
“The goal of the program is to help aspiring and beginning Latino farmers become viable producers and be connected to the resources necessary to be successful,” added Schulz. "We will be bringing in different agencies to talk about opportunities Beginning Latino farmers have. From crop insurance, to conservation programs and different low interest loans available, there is a lot of different opportunities out there."
For more information or to register, contact Lucia Schulz at lucias@cfra.org or (402) 750-5727. Additional information can be found here: http://www.cfra.org/latino-beg-farmer-workshops.
Green Plains Reports Second Quarter 2016 Financial Results
Green Plains Inc. (NASDAQ:GPRE) today announced financial results for the second quarter of 2016. Net income attributable to the company was $8.2 million, or $0.21 per diluted share, for the second quarter of 2016 compared with net income of $7.8 million, or $0.19 per diluted share, for the same period in 2015. Revenues were $887.7 million for the second quarter of 2016 compared with $744.5 million for the same period last year.
"We are pleased with our performance in the second quarter of 2016, which resulted in a $50 million increase of operating income compared with the first quarter," said Todd Becker, president and chief executive officer. "Our agribusiness and marketing and distribution segments reported strong results and the partnership segment generated its best results since going public in June of 2015. During the second quarter of 2016, we produced record ethanol volumes and with the current ethanol margin environment, we expect stronger production levels in the last half of the year."
During the second quarter, Green Plains produced 274.3 million gallons of ethanol compared with 238.7 million gallons for the same period in 2015. The consolidated ethanol crush margin was $45.3 million, or $0.17 per gallon, for the second quarter of 2016 compared with $46.5 million, or $0.20 per gallon, for the same period in 2015. The consolidated ethanol crush margin is the ethanol production segment's operating income before depreciation and amortization, which includes corn oil production, plus intercompany storage, transportation and other fees, net of related expenses.
Revenues were $1.6 billion for the six-month period ended June 30, 2016, compared with $1.5 billion for the same period in 2015. Net loss for the six-month period ended June 30, 2016, was $(15.9) million, or $(0.42) per diluted share, compared with net income of $4.5 million, or $0.11 per diluted share, for the same period in 2015.
"Ethanol demand continues to grow, supported by a 3% growth in domestic ethanol consumption and a 6% increase in U.S. ethanol exports year-to-date," commented Becker. "We continue to execute on our core strategy of capital allocation with an intense focus on growing our company, including both organic and acquisitive opportunities."
Second Quarter Highlights
During the second quarter of 2016, Green Plains repurchased 323,290 shares of common stock for approximately $6.0 million. To date, 514,990 shares of common stock have been repurchased for approximately $10.0 million under the company's $100 million share repurchase program.
On June 14, 2016, Green Plains and Jefferson Gulf Coast Energy Partners, a subsidiary of Fortress Transportation and Infrastructure Investors LLC, announced the formation of a 50/50 joint venture to construct and operate an intermodal export and import fuels terminal at Jefferson's existing Beaumont, Texas terminal. The joint venture is expected to invest approximately $55 million in its Phase I development, focused initially on storage and throughput capabilities for multiple grades of ethanol. Green Plains will offer its interest in the joint venture to the partnership once commercial development is complete.
On June 12, 2016, Green Plains entered into an asset purchase agreement with Abengoa Bioenergy of Illinois, LLC and Abengoa Bioenergy of Indiana, LLC to acquire two ethanol plants located in Madison, Ill. and Mount Vernon, Ind. for approximately $200 million in cash, plus certain inventory adjustments and liabilities. The two plants have combined annual production capacity of approximately 180 million gallons of ethanol. The sellers and other affiliates have pending cases under Chapter 11 of the U.S. Bankruptcy Code. The asset purchase agreement constitutes a stalking horse bid, which is subject to bidding procedures and receipt of higher or otherwise better bids at the proposed auction for the plants, and approval by the U.S. Bankruptcy Court. If Green Plains is not the successful bidder at the auction, the sellers must pay a break-up fee equal to $2.5 million per plant, plus reimbursement of expenses up to $500,000. Should Green Plains submit the winning bid, the company expects the transaction to close during the third quarter of 2016 and to offer the plants' transportation and storage assets to the partnership.
Results of Operations
Consolidated revenues increased $143.2 million for the three months ended June 30, 2016, compared with the same period in 2015. Revenues from ethanol, corn oil and grain sales increased $103.4 million, $21.4 million and $11.0 million, respectively. Ethanol revenues were affected by increased volumes sold, partially offset by lower average realized prices. Corn oil revenues and grain revenues were impacted by increased volumes sold.
Operating income increased $3.0 million for the three months ended June 30, 2016, compared with the same period last year primarily due to increased margins on merchant trading activity and cattle. Interest expense remained flat for the three months ended June 30, 2016, compared with the same period in 2015. Income tax expense was $5.5 million for the three months ended June 30, 2016, compared with $5.2 million for the same period in 2015.
Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the second quarter of 2016 was $47.7 million compared with $39.7 million for the same period last year.
USDA Announces Reopening of Brazilian Market to U.S. Beef Exports
The U.S. Department of Agriculture (USDA) has reached agreement with Brazil's Ministry of Agriculture, Livestock and Food Supply to allow access for U.S. beef and beef products to the Brazilian market for the first time since 2003. Brazil's action reflects the United States' negligible risk classification for bovine spongiform encephalopathy (BSE) by the World Organization for Animal Health (OIE) and aligns Brazil's regulations to the OIE's scientific international animal health guidelines.
"After many years of diligently working to regain access to the Brazilian market, the United States welcomes the news that Brazil has removed all barriers to U.S. beef and beef product exports," said Agriculture Secretary Tom Vilsack. "We are pleased that Brazil, a major agricultural producing and trading country, has aligned with science-based international standards, and we encourage other nations to do the same. Since last year alone, USDA has eliminated BSE-related restrictions in 16 countries, regaining market access for U.S. beef and pumping hundreds-of-millions of dollars into the American economy.
"The Brazilian market offers excellent long-term potential for U.S. beef exporters. The United States looks forward to providing Brazil's 200-million-plus consumers, and growing middle class, with high-quality American beef and beef products," Vilsack said.
Both countries will immediately begin updating their administrative procedures in order to allow trade to resume. U.S. companies will need to complete Brazil's regular facilities registration process.
In a separate decision, USDA's Food Safety and Inspection Service (FSIS) also recently determined that Brazil's food safety system governing meat products remains equivalent to that of the United States and that fresh (chilled or frozen) beef can be safely imported from Brazil. Following a multi-year science based review consistent with U.S. food safety regulations for countries that export meat, poultry and egg products to the U.S., FSIS is amending the list of eligible countries and products authorized for export to the United States to allow fresh (chilled or frozen) beef from Brazil.
The Brazilian agreement is just the latest example of USDA's ongoing efforts to knock down barriers to U.S. exports. In 2016 alone, these efforts have led to the reopening of the Saudi Arabian and Peruvian markets for U.S. beef, the South Korean market for U.S. poultry, and the South African market for U.S. poultry, pork and beef. In 2015, U.S. beef exports reached $6.3 billion thanks to aggressive efforts by USDA to eliminate BSE-related restrictions in 16 countries since January 2015, gaining additional market access for U.S. beef in Colombia, Costa Rica, Egypt, Guatemala, Iraq, Lebanon, Macau, New Zealand, Peru, Philippines, Saint Lucia, Singapore, South Africa, Ukraine, Vietnam and, now, Brazil.
Rabobank Releases Report on Protein Markets - Report explores outlook for U.S. Farmers
As U.S. protein producers are currently seeing record growth in demand, prices over the next couple years are predicted to fall. These findings are part of “Chickens, Cows, and Pigs… Oh My! Implications of Record U.S. Protein Expansion,” a new report from the Rabobank Food & Agribusiness Research and Advisory group, that explores the impact of growth on the future of the market.
Production of protein in the U.S. is projected to grow at a rate of 2.5 percent annually. However, after a 5 percent jump in consumption within the domestic market, there are still many questions about demand at home.
“While we don’t foresee margins falling to the lows of 2008 and 2009 as prices decline through 2018, any producer considering a possible sale or divestiture should move quickly, as the outlook for margins and valuation multiples isn’t moving in their favor,” notes report author and Rabobank senior analyst Will Sawyer.
The report finds the next couple years will be significant for all protein markets due to the strengthening of the dollar. Specifically against currencies such as the Canadian dollar, Japanese yen, and Mexican peso.
“2015 saw the largest increase in U.S. per capita meat consumption in 40 years. We expect growth to taper in the coming years (2016 through 2018) and for it to be much more evenly weighted between the three proteins,” says Sawyer.
The report, “Chickens, Cows, and Pigs… Oh My!: Implications of Record U.S. Protein Expansion,” also mentions that consumers can expect lower meat prices in the near future, especially in terms of beef and pork.
USDA Announces Commodity Credit Corporation Lending Rates for August 2016
The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for August 2016. The CCC borrowing rate-based charge for August is 0.500 percent, down from 0.625 percent in July.
The interest rate for crop year commodity loans less than one year disbursed during August is 1.500 percent, down from 1.625 percent in July.
Interest rates for Farm Storage Facility Loans approved for August are as follows, .750 percent with three-year loan terms, down from 1.000 percent in July; 1.125 percent with five-year loan terms, down from 1.250 percent in July; 1.375 percent with seven-year loan terms, down from 1.500 percent in July; 1.500 percent with 10-year loan terms, down from 1.750 percent in July and; 1.625 percent with 12-year loan terms, down from 1.875 percent in July.
CWT Assists with 3.7 Million Pounds of Cheese, Butter and Whole Milk Powder Export Sales
Cooperatives Working Together (CWT) has accepted seven requests for export assistance from Dairy Farmers of America, Maryland & Virginia Milk Producers Cooperative Association and Michigan Milk Producers Association, who have contracts to sell 174,165 pounds (79 metric tons) of Cheddar cheese, 3.417 million pounds (1550 metric tons) of butter and 88,185 pounds (40 metric tons) of whole milk powder to customers in Asia, Central America, the Middle East, North Africa and Oceania. The product has been contracted for delivery in the period from August through November 2016.
So far this year, CWT has assisted member cooperatives who have contracts to sell 30.091 million pounds of American-type cheeses, 10.366 million pounds of butter (82% milkfat) and 22.948 million pounds of whole milk powder to 21 countries on five continents. The sales are the equivalent of 678.497 million pounds of milk on a milkfat basis.
Assisting CWT members through the Export Assistance Program in the long term helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affects all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.
USDA Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks
Soybeans crushed for crude oil was 4.62 million tons (154 million bushels) in June 2016, compared to 4.83 million tons (161 million bushels) in May 2016 and 4.55 million tons (152 million bushels) in June 2015. Crude oil produced was 1.79 billion pounds down 5 percent from May 2016 but up 5 percent from June 2015. Soybean once refined oil production at 1.37 billion pounds during June 2016 decreased 5 percent from May 2016 and decreased 6 percent from June 2015.
Canola seeds crushed for crude oil was 194 thousand tons in June 2016, compared to 132 thousand tons in May 2016 and 104 thousand tons in June 2015. Canola crude oil produced was 168 million pounds up 49 percent from May 2016 and up 89 percent from June 2015. Canola once refined oil production at 152 million pounds during June 2016 was up 11 percent from May 2016 and up 42 percent from June 2015. Cottonseeds crushed for crude oil was 114 thousand tons in June 2016, compared to 127 thousand tons in May 2016 and 126 thousand tons in June 2015. Cottonseed crude oil produced was 32.2 million pounds, down 16 percent from May 2016 and down 17 percent from June 2015. Cottonseed once refined oil production at 37.4 million pounds during June 2016 was down 15 percent from May 2016 and down 23 percent from June 2015.
Edible tallow production was 74.1 million pounds during June 2016, down 11 percent from May 2016 but up 15 percent from June 2015. Inedible tallow production was 291 million pounds during June 2016, down slightly from May 2016 but up 3 percent from June 2015. Technical tallow production was 97.7 million pounds during June 2016, down 13 percent from May 2016 but up 13 percent from June 2015. Choice white grease production at 116 million pounds during June 2016 decreased 1 percent from May 2016 and decreased 1 percent from June 2015.
USDA Grain Crushings and Co-Products Production
Total corn consumed for alcohol and other uses was 472 million bushels in June 2016. Total corn consumption was down 1 percent from May 2016 and down 4 percent from June 2015. June 2016 usage included 90.9 percent for alcohol and 9.1 percent for other purposes. Corn for beverage alcohol totaled 2.60 million bushels, down 9 percent from May 2016 but up 4 percent from June 2015. Corn for fuel alcohol, at 421 million bushels, was down 1 percent from May 2016 and down 5 percent from June 2015. Corn consumed in June 2016 for dry milling fuel production and wet milling fuel production was 89.4 percent and 10.6 percent respectively.
Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.89 million tons during June 2016, up 3 percent from May 2016 but down 3 percent from June 2015. Distillers wet grains (DWG) 65 percent or more moisture was 1.22 million tons in June 2016, down 1 percent from May 2016 and down 5 percent from June 2015.
Wet mill corn gluten feed production was 332 thousand tons during June 2016, down slightly from May 2016 but up 3 percent from June 2015. Wet corn gluten feed 40 to 60 percent moisture was 312 thousand tons in June 2016, up 2 percent from May 2016 and up 3 percent from June 2015.
USDA Flour Milling Products
All wheat ground for flour during the second quarter 2016 was 225 million bushels, up slightly from the first quarter 2016 grind of 224 million bushels but down 1 percent from the second quarter 2015 grind of 227 million bushels. Second quarter 2016 total flour production was 104 million hundredweight, up slightly from the first quarter 2016 but down 1 percent from the second quarter 2015. Whole wheat flour production at 5.17 million hundredweight during the second quarter 2016 accounted for 5 percent of the total flour production. Millfeed production from wheat in the second quarter 2016 was 1.62 million tons. The daily 24-hour milling capacity of wheat flour during the second quarter 2016 was 1.61 million hundredweight.
Durum wheat ground for flour and semolina production during the second quarter of 2016 totaled 15.6 million bushels, down 7 percent from the first quarter 2016 but up 3 percent from the second quarter 2015. Second quarter 2016 durum flour and semolina production was 7.43 million hundredweight, down 4 percent from the first quarter 2016 but up 5 percent from the second quarter 2015. Whole wheat durum flour and semolina production was 158 thousand hundredweight, down 24 percent from 209 thousand hundredweight in the first quarter 2016 and down 7 percent from 170 thousand hundredweight from the second quarter 2015. Second quarter durum wheat millfeed production was 107 thousand tons and the daily 24-hour milling capacity for durum and
semolina production was 127 thousand hundredweight.
Rye ground for flour during the second quarter of 2016 was 633 thousand bushels, up 16 percent from the first quarter 2016 and up 21 percent from the second quarter 2015. Rye flour production during the second quarter of 2016 was 306 thousand hundredweight, compared to 266 thousand hundredweight in the previous quarter and 250 thousand hundredweight in the same quarter for the previous year. The daily 24-hour milling capacity for rye milling was 9.38 thousand hundredweight for the second quarter 2016.
EPA Releases Minutes from Third FIFRA SAP Questioning Role of Epidemiological Studies
On July 20, the U.S. Environmental Protection Agency (EPA) released the minutes from a Federal Insecticide, Fungicide & Rodenticide Act (FIFRA) Scientific Advisory Panel (SAP) titled, “Chlorpyrifos: Analysis of Biomonitoring Data.” During an open public meeting held by the SAP on April 19-21, panel members listened to comments from a diverse audience regarding EPA’s proposed use of an epidemiological study produced by the Columbia Center for Children’ s Environmental Health (CCCEH) in human health risk assessments. The minutes, dated July 15, and the final transcript confirm that the SAP questioned the usefulness of the outcomes from this specific epidemiological study.
“We see yet again, in the minutes submitted to EPA by the SAP, that the panelists question EPA’s shift to the use of certain epidemiological study outcomes, rather than toxicological data, in human health risk assessments,” stated Jay Vroom, president and CEO of CropLife America (CLA). “In our written comments submitted to the SAP, we specifically asked panelists to examine the question, ‘Can these epidemiological studies be appropriately used for quantitative risk assessment purposes?’ The answer is loud and clear – a resounding no. The crop protection industry now calls on EPA to base regulatory decision-making on hard toxicological data, helping farmers get and keep access to highly advanced products and keeping our food production standards high.”
Highlights from the SAP minutes include:
- The SAP agrees with EPA that applying additional safety factors to the existing point of departure to account for a potential new mode of action would be problematic due to the challenges in justifying any particular value for such an adjustment;
- Some SAP members stated that the sample size may have limited the CCCEH study’s ability to examine the association of chlorpyrifos blood concentration on neurodevelopment in more vulnerable populations; and
- With respect to fetal exposure, the Panel noted that much uncertainty in the use of cord blood as a measure would be removed if the raw data from CCCEH were provided for reanalysis.
“We applaud the report of the SAP as the majority of the panel did not agree with the Agency’s use of the results from a single longitudinal study to make a decision based on the use of cord blood measures of chlorpyrifos to initiate risk assessment,” noted Dr. Janet Collins, senior vice president of science and regulatory affairs at CLA. “These epidemiologic studies were not designed to demonstrate cause of any human health impact and the effects of exposure to a single compound.”
Collins added, “We further applaud the SAP in its determination the panel did not have confidence that the CCCEH analytical data could accurately be used in quantitative risk assessment as a point of departure, due to the many uncertainties that cannot be clarified, since the raw data are not available for verification or validation of the analytical data. CLA has maintained for years that epidemiological data have an important role for EPA in decision making, but that the CCCEH study and EPA’s various considered uses of it do not serve a human health purpose.”
Early Registration Discount for the 2016 Global Conference on Sustainable Beef ends on August 15
The Conference will be held October 4-7, 2016 at The Fairmont Hotel in Banff Springs, Alberta, Canada. The conference's focus is building on experience both regionally and globally. It brings together beef value chain stakeholders and others from across the globe who are committed to making beef production more sustainable. In addition to seminars and moderator-led discussion groups, recent industry research will be presented. Participants will also have the opportunity to see sustainability at work through special tours arranged by the Canadian Roundtable for Sustainable Beef.
The Conference will also feature several sessions created to be highly interactive and focused on work being done in various regions of the world in myriad areas of beef sustainability. In 2014, GRSB adopted a set of five core principles to define global sustainable beef including natural resources; people & the community; animal health & welfare; food; and efficiency & innovation. These principles will be at the center of discussions of future efforts to advance sustainable practices globally in the production, processing, and merchandising of beef.
Dr. David Hughes, Emeritus Professor of Food Marketing at Imperial College London, is the Keynote Speaker for the Conference. Dr. Hughes is a much sought-after speaker on a wide variety of global food industry topics, including retail and consumer trends. He also serves as a consultant to food and beverage companies worldwide to assist them in management training, strategy, and leadership level decision making.
Early Registration Discount ends on August 15. Register today at https://www.regonline.com/2016GlobalConference.
More information on the 2016 Global Conference on Sustainable Beef is available at http://www.grsbeef.org/events.
Appeals Board Allows Growers to Use Existing Stocks of Belt While Siding with EPA on Cancellation
The U.S. Environmental Protection Agency's Environmental Appeals Board (EAB) has upheld an earlier EPA decision to cancel registration for Bayer’s insecticide flubendiamide, marketed in the U.S. as Belt®, but is allowing sales of existing stocks to growers.
The EAB overruled EPA’s proposed existing stocks determination and will permit distributors and retailers to distribute and sell remaining flubendiamide inventories, and permit growers to continue using product consistent with label use directions.
While Bayer intends to comply with the order, it will fully review the EAB’s decision and evaluate its options going forward.
Today’s ruling follows an earlier appeal to the EPA’s Administrative Law Judge, who ruled in favor of the Agency after excluding any documentary evidence and testimony regarding the scientific issues raised by EPA’s actions on flubendiamide.
From Dana Sargent, Bayer’s Vice President of Regulatory Affairs:
“Bayer maintains the EPA’s actions on flubendiamide are unlawful and inconsistent with sound regulatory risk assessment practices. The science supporting the registration of flubendiamide may be complex, but it is solid, and it’s unfortunate that we were denied the opportunity to argue the scientific merits of our case. You cannot use the regulatory process as a shield to avoid engaging in meaningful dialogue, but that is exactly what the EPA has done.”
“Since we first learned of the EPA’s actions on flubendiamide a few months ago, we have tried our best to argue on behalf of our industry and the many growers who depend on these products for sustainable pest control. In the end it is they who will be most impacted by this decision.”
“The ruling was narrowly focused on process issues around the registration. It is notable that it did not weigh in on the lawfulness of EPA’s cancellation nor did it consider the fundamental science underpinning Bayer’s argument.”
“I want to express Bayer’s deep appreciation to everyone who supported us during this process, with a special thank you to Crop Life America, Agriculture Retailers Association, American Soybean Association, and all the groups that signed amici in support of a sound science regulatory process.”
Growers, retailers and distributors with questions about this issue, should contact their local Bayer Field Sales Representative, or call 1-866-99-BAYER (1-866-992-2937).
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