RFI NEWS RELEASE: Rural Futures Institute to Host Rural Regional Forums
The University of Nebraska's Rural Futures Institute is teaming up with communities to host a series of regional forums this fall aimed at showcasing local success stories, creating crucial conversations about the future and sharing outcomes of RFI-funded projects that are serving the people of the state.
Registration is now open for the forums and can be found at ruralfutures.nebraska.edu/events. The forums will take place on Thursday, Sept. 22, at the Nielsen Center in West Point; Tuesday, Sept. 27 at the Sandhills Convention Center in North Platte; and Wednesday, Sept. 28 at the Chadron State College Student Center in Chadron.
A leadership team from each region is guiding RFI staff in shaping the agenda for each specific forum. "The Rural Futures Institute is uniquely positioned to work with communities to develop real, futuristic solutions tackling some of rural America's most daunting challenges. Our goal is to help communities create their desired futures by connecting the dots between research, community and talent," said Chuck Schroeder, executive director of the Rural Futures Institute.
The day-long forums begin at 9:00 a.m. and conclude at 3:30 p.m. Registration is $25, which covers all activities, tours and lunch. The forums are open to the public, and attendees are encouraged to come prepared to discuss ideas and goals for their community or region and identify ways the Rural Futures Institute can partner or facilitate to achieve those goals.
"The Rural Futures Institute is uniquely positioned to work with communities as well as with University faculty and students to develop futuristic solutions that tackle some of rural America's most daunting challenges. Our goal is to help communities create their desired futures by connecting the dots between research, community and talent," said Chuck Schroeder, executive director of the Rural Futures Institute. "If we're to be successful, we need to continually communicate with our most important stakeholders -citizens whose energy, creativity and leadership is vital to the future of rural.
These regional forums are a way to continue our dialogue about how we can work together to ensure a strong future for all citizens," said Schroeder.
The regional forums will focus on growing economies, energized leadership and vibrant communities. At each forum, attendees will have the opportunity to hear from regional leaders about what they are doing to enhance business growth, engage young adults, expand educational opportunities, and increase the quality of life for all generations.
To get involved, plan to attend one of the 2016 Rural Regional Forums. For more information visit, ruralfutures.nebraska.edu/events or contact the Rural Futures Institute at ruralfutures@nebraska.edu or (402) 472-2940. For the latest information follow Rural Futures on Twitter at twitter.com/rural_futures or Facebook at facebook.com/ruralfutures.
Nebraska firm will conduct Wetland Mitigation Bank Site Study for ADI
Wetland mitigation banking is relatively new to Nebraska agriculture. New Century Environmental LLC (NCE) of Columbus, Nebraska was awarded the contract to perform site selection for the development of an eastern and central Nebraska wetland mitigation bank. Ag Drainage Inc. (ADI) of Golden, Illinois and Veldkamp Drainage of Columbus, Nebraska will be funding the effort to help support landowners with wetland compliance challenges in Nebraska.
This wetland mitigation bank is the first of its kind and would provide Nebraska farmers the opportunity to buy wetland acreage credits. Thereby streamlining the process for agricultural development and subsurface drainage on their properties without having to construct and execute a mitigation of existing wetlands.
“We’re excited to help the farmers of Nebraska as they work to feed the world. The study we’re conducting is being driven by our customers’ needs,” said Aaron Kassing, VP of Marketing for ADI. “Our intention is to work with farmers, landowners and other environmental advocates to improve Nebraska agriculture and its environment.”
ADI and Veldkamp Drainage provide agricultural watertable management systems that improve yields and help better utilize applied nutrients.
Wetland mitigation banking is a market-based approach that involves restoring, creating or enhancing wetlands in one place to compensate for impacts to wetlands at another location. This is a common practice to compensate for wetland impacts from development, but can also be used to offset impacts from agriculture. A mitigation bank established under this program will be used to help agricultural producers who need to mitigate wetland losses to maintain eligibility for USDA programs.
Nebraska wetlands consist of 85% palustrine (depressional), 13% lacustrine (open water) and 2% riverine (flowing water) and the mitigation bank will be designed to compensate for losses to those types of wetlands which are common in crop fields. To develop an offset for impacts to these natural resources will help in achieving environmental goals more efficiently and at a lower cost, while simultaneously addressing complex challenges such as climate change, water shortages, contamination of pesticides, landscape degradation, habitat destruction and biodiversity loss.
For companies in the energy, rail delivery, agriculture, mining, timber, real estate, land management, and other resource-based sectors, eco-asset management offers significant opportunities for increasing revenues, reducing compliance costs, improving environmental quality, protecting public health, and demonstrating corporate citizenship as well as eliminating liabilities and managing risks.
ADI and Veldkamp are family owned and operated businesses that have provided water table management and farm drainage systems for over 30 years. For more information on ADI and the company’s drainage philosophy, visit www.agdrainage.com.
New Century Environmental LLC was formed in 2007 in Columbus Nebraska specializes in environmental compliance, assessment and permitting for agriculture, industry, utilities and a wide diversity of clients such as Indian tribes, and other diverse property ownership. Gutzmer’s firm utilizes environmental professionals from many disciplines who are experts in their scientific field and play a strategic role in challenging projects regarding environmental issues throughout the Great Plains and the rest of the country.
Ricketts Announces Taiwanese Intent to Purchase Over $400 million in Nebraska Ag Commodities
Today, Governor Pete Ricketts and Nebraska Department of Agriculture (NDA) Director Greg Ibach announced Taiwanese trade officials will be signing letters of intent with Nebraska to purchase more than $405 million in corn, soybeans, wheat, beef, pork, and distiller’s grains.
“Taiwan has historically been a very important trade partner with our state,” said Governor Ricketts. “Signing these letters builds on an existing trade relationship for the coming years. It also can provide us with the opportunity to build new relationships and foster additional export sales in Taiwan.”
In past years, Taiwan officials have signed several other similar agreements that have resulted in millions of dollars of purchases of Nebraska agricultural products.
“As one of the top corn, soybeans, and wheat producing states in the country, it is vital for Nebraska to continue to increase international demand for our products,” said NDA Director Ibach. “Being able to export products such as beef, pork, and distiller’s grains is a great example of how we can bring our farmers and ranchers added value to the products they produce.”
Ibach will be leading a Nebraska trade team to Taiwan, August 14-19, 2016 where the letters of intent will be officially signed. One letter outlines intent to purchase the following approximate amount of Nebraska commodities over the next two years:
· 20.2 million bushels to 23.9 million bushels of hard red winter wheat valued at $115 million to $135 million
· 19.7 million bushels to 23.6 million bushels of corn valued at $100 million to $120 million
· 77.2 million bushels to 86.7 million bushels of soybeans valued at $101 million to $113 million
· 77,000 tons of distiller’s grains valued at $14 million
This first letter will be signed by representatives of the Taiwan Feed Industry Association; The Taiwan Vegetable Oil Manufacturers’ Association; the Taiwan Flour Mills Association; Ibach on behalf of the state; and Nebraska Farm Bureau President Steve Nelson on behalf of the commodity boards.
A second letter of intent outlines intent to purchase the following approximate amount of Nebraska commodities over the next two years:
· 1,100 tons to 2,200 tons of pork and pork products valued at $2.3 million to $4.6 million
· 2,100 tons to 2,550 tons of beef and beef products valued at $15.2 million to $18.6 million
This second letter will be signed by representatives of the Taiwan Frozen Meat Packers Association, Importers and Exporters Association of Taipei, Ibach, and Nelson.
While signed by industry officials and a Nebraska government leader, the agreements pledge the purchase of crops through negotiations between importers and private suppliers.
“The signing of these agreements with our Taiwanese partners is of critical importance,” said Nebraska Farm Bureau President Nelson. “The international market place is vital to growing demand for the commodities produced on our farms and ranches, especially in the current environment of depressed prices for almost all of the products we produce. These agreements are a step in the right direction to help boost profitability for Nebraska’s farm and ranch families.”
Joining Ibach and Nelson as members of the Nebraska trade team to Taiwan are Von Johnson, board member, Nebraska Wheat Board; Richard Shrunk, board member, Nebraska Beef Council; and Stan Garbacz, NDA Trade Representative.
While in Taiwan, the delegation will participate in promotional events and meet with government officials and users of Nebraska exports. The group plans to discuss opportunities to grow the Taiwanese market and gain greater market access.
Nebraska Beef Council Announces New Directors
The Nebraska Beef Council Board of Directors approved the following results of the 2016 Board of Directors Elections:
District 1- Ivan Rush, a cow-calf producer from Scottsbluff, NE. District 1 includes the counties of Sioux, Dawes, Box Butte, Sheridan, Scotts Bluff, Banner, Kimball, Morrill, Garden, Cheyenne, and Deuel. This will be Rush’s first four-year term on the board.
District 3- Doug Temme, a dairy operator from Wayne, NE. District 3 includes the counties of Cedar, Dixon, Dakota, Pierce, Wayne, Thruston, Madison, Stanton, Cuming and Burt. This will be Temme’s first four-year term on the board.
District 5- George Cooksley, a cow/calf producer from Anselmo, NE. District 5, includes the counties of Custer, Garfield, Valley, Greeley, Sherman, Buffalo, Hall and Howard. This will be Cooksley’s first four-year term on the board.
District 7- William “Buck” Wehrbein, a feedyard operator form Waterloo, NE. District 7 includes the counties of Nance, Merrick, Hamilton, York, Polk, Platte, Colfax, Butler, Dodge, Saunders, Washington, Douglas, Cass and Sarpy. This will be Wehrbein’s second four-year term on the board.
District 9- Jeff Rudolph, a feedyard operator from Gothenburg, NE. District 9 includes the counties of Dawson, Frontier, Gosper, Phelps, Kearney, Red Willow, Furnas, Harlan and Franklin. This will be Rudolph’s first four-year term on the board.
The new board members will take office on January 2, 2017.
Nebraska Farmers Union Brings 10 Members to Washington to Represent Family Farmers and Ranchers
Nebraska Farmers Union (NeFU) President John Hansen announced today that ten NeFU members will participate in the fall National Farmers Union Fly-In scheduled for September 11-14. Hansen said this year is particularly important because this is the third year in a row of below cost of production ag commodity prices.
Hansen said “Production agriculture is facing a major financial crisis as grain prices continue to sink, grain inventories build, exports are flat, and ag production costs stay at or near historic all time high levels. We are in year three of a grain price collapse that looks to either continue or get worse. The meat sector is not much better. We think the best way for our elected officials to understand the size and scope of the financial hardship farmers and ranchers are facing is to talk directly with the farmers and ranchers themselves. That is why this Fly-In will be an important one for families that farm and ranch. We are extremely pleased that we have 10 Nebraskans willing to share their stories with our elected officials.”
The top four issues for the NFU Fly-In will include:
· The financial crisis in agriculture, short term financial assistance ideas and the need for a much better Farm Bill.
· The Renewable Fuel Standard (RFS) and why especially now with sinking commodity prices why domestic consumption and utilization is so critical.
· The Trans Pacific Partnership and other trade issues that continue to over promise and under deliver while continuing to drive up the U.S. balance of trade deficit.
· The massive consolidation in the ag supply sector and ag processing sector, the continued vertical integration of food production, growing market consolidation, shrinking competition, and a completely inadequate response by Congress and our federal anti-trust agencies.
Hansen said “It is up to those of us who care about family farm and ranch agriculture to sound the alarm bells because the financial situation facing agriculture has not received proper attention from the press or elected officials. The current price levels of ag commodity prices are far below the costs of production. Something needs to be done. Congress needs to respond. All farmers are hurting financially, especially young and beginning farmers.
Hansen said each of Nebraska Farmers Union’s seven districts that cover the state of Nebraska are sending at least one representative to this Fly-In. “It is our responsibility to help family farmers and ranchers tell their stories, especially in this time of financial crisis.
ISA showcases production research, biodiesel at Farm Progress Show Aug. 30-Sept. 1
Soybean yield results obtained from on-farm trials and environmental practices that improve soil fertility and nutrient management will be showcased by the Iowa Soybean Association (ISA) during the Farm Progress Show Aug. 30-Sept. 1 near Boone.
ISA research specialists will be onsite (tent No. 754) to meet and discuss specific replicated strip trial and project results and identify ways to apply the information on individual farms.
“Sixteen years of research compiled by our On-Farm Network® and Environmental Programs and Services teams is ready to go to work to improve the competitiveness of every Iowa soybean farmer,” said ISA Sr. Research Director Ed Anderson. “We’re excited about sharing the latest information about industry products and practices and how they can be integrated with environmental and conservation work.
“Aligning production and environmental performance goes a long way toward helping farmers be more competitive, profitable and sustainable,” he added. “The Farm Progress Show is the ideal venue to bring this information to farmers as they consider new management approaches to implement this fall and next year.”
A working model of a bioreactor will be displayed showing how the carbon based system processes nitrate in tile water. Cover crops, weather stations and in-field imagery also will be featured.
ISA members can enter to win a John Deere Gator sponsored in part by Van Wall Equipment, quadcopter, GPS unit, water monitoring services or biodiesel for use on the farm.
“Iowa is the nation’s top biodiesel producer and it is a powerful option for the Iowa farmers,” said Grant Kimberley, ISA market development director and executive director of the Iowa Biodiesel Board.
Kimberley, who also farms in central Iowa near Maxwell, said biodiesel production contributes more than 60 cents to the market price of a bushel of soybeans.
“We look forward to not only discussing the benefits of America's Advanced Biofuel with farmers, but also allowing four farmers to put it to use on their farm.”
Attendees also can enjoy fresh-popped popcorn made with high-oleic soybean oil and a cold bottle of water.
The ISA tent will be located on Seventh Street near Gate Six. Show hours are 8 a.m. to 5 p.m. Tuesday, Aug. 30 and Wednesday, Aug. 31, and 8 a.m. to 4 p.m. Thursday, Sept. 1.
Fertilizer Prices Still Mostly Lower
Average retail fertilizer prices continued to dip lower the first week of August 2016, with one exception, according to fertilizer retailers surveyed by DTN.
That one exception would be UAN32, which is slightly higher in price compared to a month earlier. The nitrogen fertilizer averaged $307 per ton.
The remaining seven major fertilizers' prices were lower in price compared to the previous month, but once again, none were down significantly. DAP averaged $459/ton, MAP $488/ton, potash $346/ton and urea at $349/ton. 10-34-0 was at $548/ton, anhydrous $552/ton and UAN28 $254/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.38/lb.N, anhydrous $0.34/lb.N, UAN28 $0.45/lb.N and UAN32 $0.48/lb.N.
Based on DTN surveys, retail fertilizer prices remain double-digits lower compared to a year earlier.
Both UAN32 and 10-34-0 are 13% lower, MAP is 17% less expensive and both DAP and anhydrous are 19% lower than August 2015. UAN28 is 20% lower, urea is 25% less expensive and potash is 28% less expensive compared to last year.
EPA Announces Selection of New Deputy Regional Administrator
EPA is pleased to announce the selection of Edward H. Chu as the new Deputy Regional Administrator for EPA Region 7 in Lenexa, Kan. EPA Region 7 encompasses Iowa, Kansas, Missouri, Nebraska and nine tribal nations.
“Ed has a results-driven track record in environmental management,” said Region 7 Administrator Mark Hague. “He brings a diverse background to the Heartland, with leadership and expertise that will be valuable as we face great challenges and even greater opportunities.”
Ed has almost 30 years of experience in environmental and energy policy. He has served in critical senior roles within EPA and at the White House Council on Environmental Quality. Ed has held key leadership positions since arriving at the Environmental Protection Agency in 1995. Most recently, Ed was the Assistant Regional Administrator for the Pacific Northwest and Alaska Region (Region 10), serving four states and 271 federally recognized tribes. He also served as the Assistant Regional Administrator for the Southeast Region (Region 4), the most populous EPA region, serving eight states and six federally recognized tribes.
Prior to public service, Ed spent seven years as an energy and environment consultant. He received a Bachelor of Arts from Michigan State University and a Master of Public Policy from University of Michigan.
USDA Concurs with World Animal Health BSE Designations
The USDA's Animal and Plant Health Inspection Service is announcing concurrence with the World Organization for Animal Health's bovine spongiform encephalopathy (BSE) risk designations for 14 countries. The OIE recognizes these regions as being of negligible risk for BSE. APHIS reviewed the information supporting the OIE's risk designations for these regions and agrees with the OIE designations.
The 14 countries are: Bulgaria, Cyprus, Czech Republic, Estonia, India, Korea (Republic of), Hungary, Latvia, Liechtenstein, Luxembourg, Malta, Portugal, Slovakia, and Switzerland.
The OIE recommendations regarding each of the above countries can be viewed online.
APHIS considers all countries of the world to fall into in one of three BSE risk categories: negligible risk, controlled risk, or undetermined risk. Any region that is not classified by APHIS as presenting either negligible risk or controlled risk for BSE is considered to present an undetermined risk.
Under the regulations, APHIS may classify a region for BSE in one of two ways. One way is for countries that have not received a risk classification from the World Organization for Animal Health (OIE) to request classification by APHIS. The other way is for APHIS to concur with the classification given to a country by the OIE.
Cargill Reports $19M Loss
Cargill Inc. reported a $19 million loss for its most recent quarter, pressured by struggles in its core grain business.
Slowing global demand for agricultural commodities and muted market volatility contributed to weak prices and few profitable trading opportunities, Cargill said, weighing down improvements in its food ingredients and poultry businesses.
David MacLennan, Cargill's chief executive and chairman, said the agricultural company continues to seek better profits and "sustained growth" as it adds and subtracts business lines from its diverse portfolio, and retools others. "We have more work to do, but where we have already made changes we are seeing improved results," he said.
Cargill's fiscal fourth-quarter loss compared with a $230 million profit for the same quarter last year. When adjusting earnings for deals and other one-time events, Cargill earned $15 million in the quarter ended May 31, compared with a $51 million loss for the prior-year period.
Revenue for the quarter declined 5% to $27.1 billion.
Cargill is revamping its business in response to sliding commodity prices, a slumping farm economy and shifting consumer tastes, which have prompted the Minnesota-based company to alter the way it raises poultry and livestock. The largest U.S. private company by sales, which remains family owned, also is positioning for global demographic shifts, investing in the farmed fish business and processing plants capable of producing a wider range of meat products.
The 151-year-old company has also been trimming away some of its dozens of business lines, last year selling its U.S. pork operations and spinning out a hedge fund division.
Cargill's fiscal 2016 earnings totaled $2.38 billion, up 50% from the prior fiscal year. Adjusting for Cargill's sale of its U.S. pork business and other one-time events, Cargill said it earned $1.64 billion, 15% below its fiscal 2015 total.
New research examining link between antibiotic use in farm animals and antibiotic resistance in humans leads to more questions
As controversy continues concerning the use of antibiotics in food animals and the relationship to drug-resistant infections in humans, a team of interdisciplinary scientists at the Medical University of South Carolina and the Charleston VA Medical Center Research Service reviewed published literature for evidence of a relationship between antibiotic use in agricultural animals and drug-resistant foodborne Campylobacter infections in humans, commonly known as campylobacteriosis. According to the 2013 CDC Antibiotic Resistance Threats Report, two of the eighteen pathogens that are of concern in the United States may have a direct link to agriculture – one of them being Campylobacter. Campylobacter can cause foodborne illness when food is not properly handled and cooked, regardless of whether it carries any specific antibiotic resistance. It is of concern because some people infected with Campylobacter develop severe arthritis; while others may develop Guillain-Barré Syndrome (GBS), which is one of the leading causes of acute paralysis in the U.S. The study – conducted by veterinary and nutrition scientists and an infectious disease physician – reviewed 195 articles in the U.S., Canada and Denmark over the past five years and has been published in [volume 56, issue 13] of Critical Reviews in Food Science and Nutrition. Animals included in the reviewed studies were chicken, turkeys, pigs, beef cattle, and dairy cows.
The overall prevalence of Campylobacter and drug resistance found in the systematic review aligns with recent National Antimicrobial Resistance Monitoring System (NARMS) reports. The research team found no conclusive evidence of a definitive link between use of antibiotics in food animals and emergence of drug-resistant Campylobacter. However, their findings did lead the team to important concerns about Campylobacter. For example, recent cases of Campylobacter infections have been linked directly to drinking raw milk or eating food products made from raw milk. It is important to note the USDA and FDA do not recommend consuming raw cow's milk.
Lead scientist M.A. McCrackin, D.V.M., Ph.D. remarked, "There is still much more research to be done. The agriculture and health care industries, along with the scientific community and government regulatory agencies, must work collaboratively with the human health community in order to ensure safe, humane, and affordable food sources to the public."
Richard A. Carnevale, V.M.D., Vice President for Regulatory, Scientific and International Affairs at the Animal Health Institute (AHI), who funded the study, refers to the medical and veterinary collaborative approach as an "integrated, 'one-health' approach."
"The agriculture community recognizes that there is more that can be done to protect the effectiveness of antibiotics, which is the goal of both the animal and human health communities. By the end of the year, the agriculture community will be in full compliance with the FDA mandates—Guidances 209 and 213—which eliminate the use of medically important antibiotics for growth promotion purposes and requires veterinary approval for all remaining uses in feed through the veterinary feed directive," said Dr. Carnevale.
Principal investigator on the study, Bernadette Marriott, Ph.D., stated, "Our research results underscore the need for both veterinarians and physicians to work together as we advance toward solutions to concerns about antibiotic resistance."
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 11, 2016
Wednesday, August 10, 2016
Tuesday August 9 Ag News
Beef Feedlot Schools at four locations
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 Aug. 15, 16, 24, and 31 in Curtis, Holdrege, West Point and Mitchell.
The Nebraska Extension Feedlot School will be offered Aug. 15 at the Nebraska College of Technical Agriculture Livestock Teaching Center in Curtis, at the Phelps County Ag Center & Arena in Holdrege on Aug. 16, at the Cuming County Fairgrounds in West Point on Aug. 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. 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, foot 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 Nebraska Extension Faculty that can tailor the program to feedlot employee needs related 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 preregistration 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, phone 308-632-1260, fax 308-632-1365 or e-mail mluebbe2@unl.edu. Or contact Larry Howard at the Cuming County Extension office at 402-372-6006.
AUG. 20 FARM TOUR TO LOOK AT COVER CROPS, FLAMING AND CRIMPING
A Butler County farm tour will look at two operations where growers have integrated cover crops and used flaming or crimper tecnology to manage weeds. The tour will be Saturday, Aug. 20 from 1:30 p.m. to 5:30 p.m. and followed by a meal.
“This is a great opportunity for farmers to share information and ask questions about cover crops, reduced tillage, and weed management using a roller crimper or flamer,” said Rich Little, tour organizer and research technologist in the University of Nebraska–Lincoln’s Department of Agronomy and Horticulture.
The tour starts at 1:30 p.m. at Larry Stanislav's farm two miles north of Abie. Stanislav practices reduced tillage and uses a flamer to manage weeds in soybean. He will discuss how he has incorporated cover crops into his crop rotation, saving money on nitrogen and reducing soil erosion. Participants will view crimping research using UNL experimental lines of early-maturing triticale as mulch for weed suppression and evaluate the cash crop of drilled soybean. Stanislav is a cooperator in a Ceres Trust grant that provided partial funding to develop a twin-roller, adjustable-angle roller crimper, which will be on display at the field day.
At 3:30 pm participants will tour Randy Fendrich's farm three miles southeast of the Stanislav farm. Fendrich has demonstration plots of organic corn and soybean varieties that he is evaluating for yield. He will discuss his cultural practices and crop rotation, his use of a 12-row flamer/cultivator, and his program to build soil health. He also will discuss his succession plan for bringing his daughter into the farming operation.
At 5 pm Randy Anderson, research agronomist in the USDA North Central Agricultural Research Laboratory, will discuss
- canopy architecture of cover crops for planning mixtures,
- berseem clover establishment, and
- improved crop tolerance to weed interference.
At 6 p.m. a free meal will be served. Call Dee at 402-584-3837 by Aug. 12 to reserve your meal.
The UNL event is sponsored by OCIA, the Organic Crop Improvement Association.
CORRECT TIMING MAKES THE BEST SILAGE
Bruce Anderson, NE Extension Forage Specialist
Will you chop corn silage this year? Do it right and time your harvest correctly.
High-quality corn silage often is an economical substitute for some of the grain in finishing and in dairy rations. And corn silage can be an important winter feed for cow-calf producers. All too often, though, we fail to harvest silage to get its best feed value.
Harvest timing is critical for success. Timing needs to be based on moisture content of the silage. Silage chopped too early and wetter than seventy percent moisture can run or seep and it often produces a sour, less palatable fermentation. We often get this wet silage when we rush to salvage hail or wind damaged corn. Live green stalks, leaves, and husks almost always are more than eighty percent moisture so be patient and wait until these tissues start to dry before chopping.
Normal corn, though, is often chopped for silage too dry, below sixty percent moisture. Then it's difficult to pack the silage adequately to force out air. The silage heats, energy and protein digestibility declines, and spoilage increases. If your silage is warm or steams during winter, it probably was too dry when chopped.
Many corn hybrids are at the ideal 60 to 70 percent moisture as corn kernels reach the one-half milkline. This guide isn’t perfect for all hybrids, though, so check your own fields independently.
Corn kernels in silage between half milkline and black layer are more digestible. Drier, more mature corn grain tends to pass through the animal more often without digesting unless processed. Also, older leaves and stalks are less digestible.
So chop your silage at the proper moisture level this year. The outcome will be better feed and better profits.
Burt County as Nebraska’s Newest Livestock Friendly County
On Monday, Governor Pete Ricketts announced that Burt County had become the newest county in the state to be designated as a Livestock Friendly County (LFC) through a program administered by the Nebraska Department of Agriculture (NDA).
“Burt County has a rich history in agriculture, and the livestock industry generates millions of dollars in income for the county’s farm and ranch families,” said Gov. Ricketts. “By seeking the Livestock Friendly County designation, the county is sending the message that they want to continue to grow both their county and the state through livestock development.”
Created in 2003 by the Nebraska Legislature, the LFC program is designed to recognize counties in the state that support the expansion of the livestock industry. In 2014, livestock receipts in the state comprised over half of the almost $25 billion of Nebraska’s total on-farm receipts. The LFC designation gives counties an extra promotional tool to encourage expansion of current livestock operations and attract new businesses that spur local economies.
“Adding new or expanding existing livestock operations can offer opportunities for family members in Burt County to return back to the family operation,” said NDA Director Greg Ibach. “Livestock development will also increase local demand for the large stocks of corn, soybeans and grain sorghum produced by Burt County farmers.”
With the addition of Burt County, there are now 37 counties designated as Livestock Friendly through the state program.
Counties wishing to apply for the LFC designation must hold a public hearing and the county board must pass a resolution to apply for the designation. Then a completed application must be submitted to NDA. Local producers or groups can encourage county officials to apply.
Additional information about the Livestock Friendly County program is available on the NDA website at www.nda.nebraska.gov or by calling 800-422-6692.
NCGA Welcomes Chinese Delegation for Regulatory Discussions
The National Corn Growers Association welcomed two regulators from the Ministry of Agriculture in China today for discussions on the need to better synchronize regulatory systems and the importance U.S. farmers place upon the availability of new technologies. The meeting was only one stop in a three-month long program designed by Dr. Nicholas Kalaitzandonakes, director of the Economics and Management of Agrobiotechnology Center at the University of Missouri - Columbia, through which the officials will delve into how the U.S. regulatory testing system functions.
In addition to NCGA, the team has already met with farmers, the U.S. Soybean Export Council and various private companies. Next, they will travel to Washington for discussions with the U.S. Department of Agriculture.
NCGA Vice President of Production and Stewardship Paul Bertels and Director of Biotechnology and Crop Inputs Nathan Fields participated in today's discussion. In addition to learning more about the regulatory system as a whole, the group is looking at how data is generated to support these processes.
Few Farms Affected by 2014 Farm Act Eligibility Income Cap
The 2014 Farm Act revised the maximum income limitations that determine eligibility for most commodity and conservation programs and payments by replacing the separate limits on farm and nonfarm income specified in the 2008 Farm Act with a single total adjusted gross income cap of $900,000.
Based on data for 2009-14, a period of overall increasing farm sector income, a comparison of the impact of the income caps imposed by the 2008 and 2014 Farm Acts finds that the number of potentially ineligible farms increases over the period under both income caps.
The potential number of farms affected by the 2014 income cap is below the number affected by the 2008 income caps, averaging 1,500 farms per year (about 0.1 percent of all farms) for the period 2009-14.
EIA Maintains 2016 Ethanol Outlook
In its Short-term Energy Outlook for July, the Energy Information Administration left unchanged its projected demand outlook for ethanol while also holding firm its estimate for production of the fuel blendstock for this year and in 2017.
EIA continued to estimate ethanol production for 2015 at an average of almost 970,000 barrels per day (bpd) and reiterated production estimates for this year and 2017 at 980,000 bpd.
The agency repeated that ethanol consumption in 2015 averaged about 910,000 bpd, while holding steady its forecast for consumption for 2016 and 2017 at roughly 930,000 bpd.
"This level of consumption results in the ethanol share of the total gasoline pool averaging 10% in both 2016 and 2017."
The U.S. Environmental Protection Agency on Nov. 30, 2015, finalized a rule setting Renewable Fuel Standard volumes for 2014 through 2016 and on May 18 released its proposed RFS volumes for 2017 along with finalized biomass-based diesel volumes for 2017. The agency used both the final and proposed volumes to develop the current STEO forecast through 2017.
EIA expects that the largest effect of the RFS targets will be on biomass-based diesel consumption, which includes both biodiesel and renewable diesel and helps to meet the RFS targets for use of biomass-based diesel, advanced biofuel, and total renewable fuel. Biodiesel production averaged 82,000 bpd in 2015 and is forecast to average 99,000 bpd this year, unchanged from last month's estimate. In 2017, the estimate is 106,000 bpd, steady on the month. Net imports of biomass-based diesel are also expected to increase from 29,000 bpd in 2015 to 41,000 bpd in 2016 and 47,000 bpd in 2017, each unchanged from the prior two STEOs. EIA assumes about 10,000 bpd of domestic renewable diesel consumption will be used to help meet the biomass-based diesel and advanced biofuels RFS targets in both 2016 and 2017.
The agency estimates that energy-related emissions of carbon dioxide decreased by 2.7% in 2015. Emissions are forecast to decrease by 1.5% this year and then increase by 0.8% in 2017. These forecasts are sensitive to assumptions about weather and economic growth.
Quarantined Washington State Wheat Tests Negative for GMO
No genetically modified wheat has been found in a Washington state farm's crop tested after an unapproved biotech variety was discovered growing there in June, the U.S. Department of Agriculture said on Friday. The quarantined grain will be allowed to enter the marketplace.
According to Reuters, the Animal and Plant Health Inspection Service has launched an investigation into how an unapproved GMO wheat variety developed by Monsanto Co but never approved by federal regulators came to be growing in Washington. It was the third such finding since 2013.
There are no commercially approved varieties of GMO wheat.
The discovery, announced last week, prompted importers such as Japan and South Korea to suspend purchases of some U.S. wheat.
South Korea's Ministry of Food and Drug Safety said on Friday that it has not found any GMO wheat in tests on imported wheat and flour from Washington state after receiving testing supplies on Aug. 1, reports Reuters. The fifth largest buyer of U.S. wheat said it will continue testing incoming U.S. wheat and reject loads containing any rogue wheat.
Tyson Foods Reports Higher Quarterly Profits
Tyson Foods Inc. reported a higher-than-expected quarterly profit, helped by lower feed and livestock costs, and lifted its adjusted earnings forecast for the year. According to Reuters, shares of the maker of Jimmy Dean sausages and Ball Park jerky were up 5 percent in light premarket trading on Monday.
Tyson said it May it expected good cattle supply for its beef business, its largest, through the summer and into 2017. Livestock costs are falling in the United States as farmers build up their cattle herds, which hit a 63-year low in 2014 because of a drought.
Feed costs have also been falling due to a global glut of corn and soybeans that has kept grain prices depressed for three straight years.
The net income attributable to Tyson rose to $484 million, or $1.25 per share, in the third quarter ended July 2, from $343 million, or 83 cents per share, a year earlier.
Excluding items, the company earned $1.21 per share. Sales fell 6.6 percent to $9.40 billion. Cost of sales fell 10 percent to $8.18 billion in the quarter.
AgriBank Reports Second-Quarter 2016 Financial Results
Today St. Paul-based AgriBank announced financial results for the second quarter of 2016 with continued stable net income, sound credit quality, and robust liquidity and capital.
Highlights:
- Stable net income: Net income grew $18.5 million, or 7.7 percent, to $260.2 million for the six months ended June 30, 2016, compared to the same period of the prior year. This increase was driven by continued strong net interest income, significantly offset by a decline in mineral income due to continued lower oil prices.
- Sound credit quality: Total loan portfolio credit quality remained sound, as acceptable loans stood at 99.6 percent. Credit quality of the retail loan portfolio has moderated to 95.5 percent acceptable as of June 30, 2016, compared to 97.3 percent at the end of last year.
- Robust liquidity and capital: Cash and investments totaled $15.9 billion at June 30, 2016, compared to $16.2 billion at the end of last year. End-of-the-quarter liquidity was 151 days, well above the regulatory requirement. Capital also remained well above the regulatory minimum and company targets.
“Our key financial measures remained strong, reflecting the enduring strength of borrowers and affiliated Farm Credit Associations even as the outlook for many producers remains challenging,” said William J. Thone, AgriBank Interim Chief Executive Officer. “For more than 100 years, financial strength has enabled us to be the reliable, consistent source of credit and financial services that rural communities and agriculture need.”
Year-to-date 2016 Results of Operations
Net income increased $18.5 million, or 7.7 percent, to $260.2 million for the six months ended June 30, 2016, compared to the same period of the prior year.
Net interest income increased to $280.8 million for the six months ended June 30, 2016, compared to $255.3 million for the same period in 2015, primarily due to increased wholesale loan volume compared to the same period of the prior year.
Provision for loan losses was $4.5 million for the six months ended June 30, 2016, compared to $3.0 million for the same period in 2015.
Non-interest income decreased to $44.0 million, compared to $48.4 million for the same period in 2015. This decrease was primarily driven by lower mineral income due to continued lower oil prices.
Second Quarter 2016 Results of Operations
Second quarter 2016 net income was $135.8 million, an increase of $17.9 million, or 15.2 percent, compared to the same period of the prior year. This increase was driven by an increase in net interest income and non-recurring gains on sales of available-for-sale investment securities, partially offset by a decline in mineral income driven by continued low oil prices.
Loan Portfolio
Total loans increased $1.7 billion, or 2.0 percent, to $84.5 billion from year-end 2015, primarily due to increases in wholesale loans to affiliated Associations, partially offset by repayments received on real estate mortgage loan participations purchased.
The solid liquidity and equity positions of many retail borrowers are reflected in the sound credit quality of the AgriBank portfolio at 99.6 percent acceptable loans as of June 30, 2016. Acceptable loans represent the highest quality assets. Credit quality remains relatively consistent with the position as of December 31, 2015; however, these historically strong positions are beginning, and will continue, to revert to levels more in line with historical norms. The credit quality of our retail loan portfolio declined to 95.5 percent acceptable at June 30, 2016, compared to 97.3 percent acceptable as of December 31, 2015. This decline was driven primarily by downgrades in credit quality in equipment finance loans purchased through the AgDirect program. Nonaccrual loans increased slightly to $51.6 million at June 30, 2016, but remain at acceptable levels.
The U.S. Department of Agriculture’s Economic Research Service’s (USDA-ERS) projects both net cash and net farm income to decline for the third consecutive year in 2016, after reaching a record high in 2013. Net farm income is projected to fall by 3.0 percent to $54.8 billion for 2016 compared to 2015, primarily related to feed crops, dairy and most protein sectors. Crop producers may benefit somewhat from a projected increase in direct government farm payments as well as reduced expenses, primarily related to energy cost savings.
Macroeconomic events of recent concern to agriculture include the recent Brexit referendum vote by the British public to begin the process of leaving the European Union and the resulting political and economic fallout from the decision. For U.S. agriculture, the immediate risk is through the impact of the decision on exchange rates and the potential for continued appreciation in the U.S. dollar which has had a negative impact upon U.S. agricultural exports.
Capital Resources and Liquidity
Total capital remains very strong, increasing $92.5 million during the period to $5.3 billion, driven primarily by net income, partially offset by patronage and dividends, and other comprehensive losses.
Cash and investments totaled $15.9 billion at quarter-end, compared to $16.2 billion at the end of 2015. The Bank’s end-of-the-period liquidity position represented 151 days coverage of maturing debt obligations, which supports AgriBank’s operational demands, and is well above the 90-day minimum established by AgriBank’s regulator.
AgriBank is one of the largest banks within the national Farm Credit System, with over $100 billion in total assets. Under the Farm Credit System’s cooperative structure, AgriBank is primarily owned by 17 affiliated Farm Credit Associations. The AgriBank District covers America’s Midwest, a 15-state area stretching from Wyoming to Ohio and Minnesota to Arkansas. With about half of the nation’s cropland located in the AgriBank District and over 100 years of experience, the Bank and its Association owners have significant expertise in providing financial products and services for rural communities and agriculture.
2016 full-year earnings outlook maintained; organic sales outlook adjusted to 2-4%
Novozymes, the world’s largest producer of industrial enzymes, today announced its results for the first half of 2016. Sales grew by 3% organically and were flat in DKK compared with the first half of 2015. EBIT was on par, and the EBIT margin was 27.2%, also on par with the first half of 2015. Adjusting for the restructuring costs in Q1, the EBIT margin would have expanded to above 28% and EBIT growth to around 4% compared with the first half of 2015. Net profit grew by 8%. Net investments were DKK 542 million, free cash flow before acquisitions was DKK 1,354 million and ROIC (incl. goodwill) was 25.4%.
The outlook for full-year organic sales growth is adjusted to 2-4%, down from previously 3-5%. The adjustment reflects uncertainty in most of the industries in which Novozymes operates. The outlook for sales in DKK is unchanged. The outlook for each of EBIT, EBIT margin, net profit, net investments, free cash flow and ROIC is also unchanged.
Peder Holk Nielsen, President and CEO of Novozymes, comments:
“Our business improved in the second quarter. We delivered strong earnings, and we increased our sales growth although we had aimed higher. We're on track to reach our full-year profit target, but we adjust our sales expectations due to the performance in the second quarter and the uncertainty facing many of our markets. Our pipeline of sustainable biological solutions remains strong, and we'll soon launch exciting, new innovation in BioAg.”
Zeal® SC Miticide Now Registered for Soybeans
Valent U.S.A. Corporation announced today the Environmental Protection Agency (EPA) registration of Zeal® SC Miticide for soybeans. Zeal is a proven residual miticide to be labeled for use on soybeans, providing growers with a new tool for long-lasting control of spider mites.
Zeal SC Miticide, a proven residual miticide, is now available for soybeans
Zeal helps prevent the yield-loss potential caused by two-spotted spider mites and other spider mite species that could feed in soybeans. The mode of action of Zeal ensures at least three weeks or more of residual control, enabling growers to target all stages of a mite's life cycle, from egg to adult. This residual aids in helping to control multiple generations and ultimately in protecting the crop.
Soybean growers now have a new tool with a long-lasting residual for managing mites and preserving yields," said Katie Tougeron, marketing manager at Valent. "The fast-acting translaminar activity in Zeal is unique among miticides that are currently available to soybean growers."
The translaminar movement of Zeal travels through the soybean leaf to quickly reach mites where they hide and feed. Soybeans are the most recent registration for Zeal, following registration in field corn, cotton and melons. The pursuit of the new registration was sought when Valent noticed an increasing demand for a true miticide for soybeans.
"Zeal is a much-needed solution for soybean growers who are struggling to manage mite populations," said Carlos Granadino, product development manager for Valent. "Mite damage in soybeans is prevalent in drought and dry conditions, which for many soybean geographies, is an annual occurrence."
Zeal is also farm-friendly. The low application rate of Zeal allows aerial applicators to treat more acres with one load. Additionally, the liquid formulation of Zeal helps with ease of mixing.
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 Aug. 15, 16, 24, and 31 in Curtis, Holdrege, West Point and Mitchell.
The Nebraska Extension Feedlot School will be offered Aug. 15 at the Nebraska College of Technical Agriculture Livestock Teaching Center in Curtis, at the Phelps County Ag Center & Arena in Holdrege on Aug. 16, at the Cuming County Fairgrounds in West Point on Aug. 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. 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, foot 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 Nebraska Extension Faculty that can tailor the program to feedlot employee needs related 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 preregistration 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, phone 308-632-1260, fax 308-632-1365 or e-mail mluebbe2@unl.edu. Or contact Larry Howard at the Cuming County Extension office at 402-372-6006.
AUG. 20 FARM TOUR TO LOOK AT COVER CROPS, FLAMING AND CRIMPING
A Butler County farm tour will look at two operations where growers have integrated cover crops and used flaming or crimper tecnology to manage weeds. The tour will be Saturday, Aug. 20 from 1:30 p.m. to 5:30 p.m. and followed by a meal.
“This is a great opportunity for farmers to share information and ask questions about cover crops, reduced tillage, and weed management using a roller crimper or flamer,” said Rich Little, tour organizer and research technologist in the University of Nebraska–Lincoln’s Department of Agronomy and Horticulture.
The tour starts at 1:30 p.m. at Larry Stanislav's farm two miles north of Abie. Stanislav practices reduced tillage and uses a flamer to manage weeds in soybean. He will discuss how he has incorporated cover crops into his crop rotation, saving money on nitrogen and reducing soil erosion. Participants will view crimping research using UNL experimental lines of early-maturing triticale as mulch for weed suppression and evaluate the cash crop of drilled soybean. Stanislav is a cooperator in a Ceres Trust grant that provided partial funding to develop a twin-roller, adjustable-angle roller crimper, which will be on display at the field day.
At 3:30 pm participants will tour Randy Fendrich's farm three miles southeast of the Stanislav farm. Fendrich has demonstration plots of organic corn and soybean varieties that he is evaluating for yield. He will discuss his cultural practices and crop rotation, his use of a 12-row flamer/cultivator, and his program to build soil health. He also will discuss his succession plan for bringing his daughter into the farming operation.
At 5 pm Randy Anderson, research agronomist in the USDA North Central Agricultural Research Laboratory, will discuss
- canopy architecture of cover crops for planning mixtures,
- berseem clover establishment, and
- improved crop tolerance to weed interference.
At 6 p.m. a free meal will be served. Call Dee at 402-584-3837 by Aug. 12 to reserve your meal.
The UNL event is sponsored by OCIA, the Organic Crop Improvement Association.
CORRECT TIMING MAKES THE BEST SILAGE
Bruce Anderson, NE Extension Forage Specialist
Will you chop corn silage this year? Do it right and time your harvest correctly.
High-quality corn silage often is an economical substitute for some of the grain in finishing and in dairy rations. And corn silage can be an important winter feed for cow-calf producers. All too often, though, we fail to harvest silage to get its best feed value.
Harvest timing is critical for success. Timing needs to be based on moisture content of the silage. Silage chopped too early and wetter than seventy percent moisture can run or seep and it often produces a sour, less palatable fermentation. We often get this wet silage when we rush to salvage hail or wind damaged corn. Live green stalks, leaves, and husks almost always are more than eighty percent moisture so be patient and wait until these tissues start to dry before chopping.
Normal corn, though, is often chopped for silage too dry, below sixty percent moisture. Then it's difficult to pack the silage adequately to force out air. The silage heats, energy and protein digestibility declines, and spoilage increases. If your silage is warm or steams during winter, it probably was too dry when chopped.
Many corn hybrids are at the ideal 60 to 70 percent moisture as corn kernels reach the one-half milkline. This guide isn’t perfect for all hybrids, though, so check your own fields independently.
Corn kernels in silage between half milkline and black layer are more digestible. Drier, more mature corn grain tends to pass through the animal more often without digesting unless processed. Also, older leaves and stalks are less digestible.
So chop your silage at the proper moisture level this year. The outcome will be better feed and better profits.
Burt County as Nebraska’s Newest Livestock Friendly County
On Monday, Governor Pete Ricketts announced that Burt County had become the newest county in the state to be designated as a Livestock Friendly County (LFC) through a program administered by the Nebraska Department of Agriculture (NDA).
“Burt County has a rich history in agriculture, and the livestock industry generates millions of dollars in income for the county’s farm and ranch families,” said Gov. Ricketts. “By seeking the Livestock Friendly County designation, the county is sending the message that they want to continue to grow both their county and the state through livestock development.”
Created in 2003 by the Nebraska Legislature, the LFC program is designed to recognize counties in the state that support the expansion of the livestock industry. In 2014, livestock receipts in the state comprised over half of the almost $25 billion of Nebraska’s total on-farm receipts. The LFC designation gives counties an extra promotional tool to encourage expansion of current livestock operations and attract new businesses that spur local economies.
“Adding new or expanding existing livestock operations can offer opportunities for family members in Burt County to return back to the family operation,” said NDA Director Greg Ibach. “Livestock development will also increase local demand for the large stocks of corn, soybeans and grain sorghum produced by Burt County farmers.”
With the addition of Burt County, there are now 37 counties designated as Livestock Friendly through the state program.
Counties wishing to apply for the LFC designation must hold a public hearing and the county board must pass a resolution to apply for the designation. Then a completed application must be submitted to NDA. Local producers or groups can encourage county officials to apply.
Additional information about the Livestock Friendly County program is available on the NDA website at www.nda.nebraska.gov or by calling 800-422-6692.
NCGA Welcomes Chinese Delegation for Regulatory Discussions
The National Corn Growers Association welcomed two regulators from the Ministry of Agriculture in China today for discussions on the need to better synchronize regulatory systems and the importance U.S. farmers place upon the availability of new technologies. The meeting was only one stop in a three-month long program designed by Dr. Nicholas Kalaitzandonakes, director of the Economics and Management of Agrobiotechnology Center at the University of Missouri - Columbia, through which the officials will delve into how the U.S. regulatory testing system functions.
In addition to NCGA, the team has already met with farmers, the U.S. Soybean Export Council and various private companies. Next, they will travel to Washington for discussions with the U.S. Department of Agriculture.
NCGA Vice President of Production and Stewardship Paul Bertels and Director of Biotechnology and Crop Inputs Nathan Fields participated in today's discussion. In addition to learning more about the regulatory system as a whole, the group is looking at how data is generated to support these processes.
Few Farms Affected by 2014 Farm Act Eligibility Income Cap
The 2014 Farm Act revised the maximum income limitations that determine eligibility for most commodity and conservation programs and payments by replacing the separate limits on farm and nonfarm income specified in the 2008 Farm Act with a single total adjusted gross income cap of $900,000.
Based on data for 2009-14, a period of overall increasing farm sector income, a comparison of the impact of the income caps imposed by the 2008 and 2014 Farm Acts finds that the number of potentially ineligible farms increases over the period under both income caps.
The potential number of farms affected by the 2014 income cap is below the number affected by the 2008 income caps, averaging 1,500 farms per year (about 0.1 percent of all farms) for the period 2009-14.
EIA Maintains 2016 Ethanol Outlook
In its Short-term Energy Outlook for July, the Energy Information Administration left unchanged its projected demand outlook for ethanol while also holding firm its estimate for production of the fuel blendstock for this year and in 2017.
EIA continued to estimate ethanol production for 2015 at an average of almost 970,000 barrels per day (bpd) and reiterated production estimates for this year and 2017 at 980,000 bpd.
The agency repeated that ethanol consumption in 2015 averaged about 910,000 bpd, while holding steady its forecast for consumption for 2016 and 2017 at roughly 930,000 bpd.
"This level of consumption results in the ethanol share of the total gasoline pool averaging 10% in both 2016 and 2017."
The U.S. Environmental Protection Agency on Nov. 30, 2015, finalized a rule setting Renewable Fuel Standard volumes for 2014 through 2016 and on May 18 released its proposed RFS volumes for 2017 along with finalized biomass-based diesel volumes for 2017. The agency used both the final and proposed volumes to develop the current STEO forecast through 2017.
EIA expects that the largest effect of the RFS targets will be on biomass-based diesel consumption, which includes both biodiesel and renewable diesel and helps to meet the RFS targets for use of biomass-based diesel, advanced biofuel, and total renewable fuel. Biodiesel production averaged 82,000 bpd in 2015 and is forecast to average 99,000 bpd this year, unchanged from last month's estimate. In 2017, the estimate is 106,000 bpd, steady on the month. Net imports of biomass-based diesel are also expected to increase from 29,000 bpd in 2015 to 41,000 bpd in 2016 and 47,000 bpd in 2017, each unchanged from the prior two STEOs. EIA assumes about 10,000 bpd of domestic renewable diesel consumption will be used to help meet the biomass-based diesel and advanced biofuels RFS targets in both 2016 and 2017.
The agency estimates that energy-related emissions of carbon dioxide decreased by 2.7% in 2015. Emissions are forecast to decrease by 1.5% this year and then increase by 0.8% in 2017. These forecasts are sensitive to assumptions about weather and economic growth.
Quarantined Washington State Wheat Tests Negative for GMO
No genetically modified wheat has been found in a Washington state farm's crop tested after an unapproved biotech variety was discovered growing there in June, the U.S. Department of Agriculture said on Friday. The quarantined grain will be allowed to enter the marketplace.
According to Reuters, the Animal and Plant Health Inspection Service has launched an investigation into how an unapproved GMO wheat variety developed by Monsanto Co but never approved by federal regulators came to be growing in Washington. It was the third such finding since 2013.
There are no commercially approved varieties of GMO wheat.
The discovery, announced last week, prompted importers such as Japan and South Korea to suspend purchases of some U.S. wheat.
South Korea's Ministry of Food and Drug Safety said on Friday that it has not found any GMO wheat in tests on imported wheat and flour from Washington state after receiving testing supplies on Aug. 1, reports Reuters. The fifth largest buyer of U.S. wheat said it will continue testing incoming U.S. wheat and reject loads containing any rogue wheat.
Tyson Foods Reports Higher Quarterly Profits
Tyson Foods Inc. reported a higher-than-expected quarterly profit, helped by lower feed and livestock costs, and lifted its adjusted earnings forecast for the year. According to Reuters, shares of the maker of Jimmy Dean sausages and Ball Park jerky were up 5 percent in light premarket trading on Monday.
Tyson said it May it expected good cattle supply for its beef business, its largest, through the summer and into 2017. Livestock costs are falling in the United States as farmers build up their cattle herds, which hit a 63-year low in 2014 because of a drought.
Feed costs have also been falling due to a global glut of corn and soybeans that has kept grain prices depressed for three straight years.
The net income attributable to Tyson rose to $484 million, or $1.25 per share, in the third quarter ended July 2, from $343 million, or 83 cents per share, a year earlier.
Excluding items, the company earned $1.21 per share. Sales fell 6.6 percent to $9.40 billion. Cost of sales fell 10 percent to $8.18 billion in the quarter.
AgriBank Reports Second-Quarter 2016 Financial Results
Today St. Paul-based AgriBank announced financial results for the second quarter of 2016 with continued stable net income, sound credit quality, and robust liquidity and capital.
Highlights:
- Stable net income: Net income grew $18.5 million, or 7.7 percent, to $260.2 million for the six months ended June 30, 2016, compared to the same period of the prior year. This increase was driven by continued strong net interest income, significantly offset by a decline in mineral income due to continued lower oil prices.
- Sound credit quality: Total loan portfolio credit quality remained sound, as acceptable loans stood at 99.6 percent. Credit quality of the retail loan portfolio has moderated to 95.5 percent acceptable as of June 30, 2016, compared to 97.3 percent at the end of last year.
- Robust liquidity and capital: Cash and investments totaled $15.9 billion at June 30, 2016, compared to $16.2 billion at the end of last year. End-of-the-quarter liquidity was 151 days, well above the regulatory requirement. Capital also remained well above the regulatory minimum and company targets.
“Our key financial measures remained strong, reflecting the enduring strength of borrowers and affiliated Farm Credit Associations even as the outlook for many producers remains challenging,” said William J. Thone, AgriBank Interim Chief Executive Officer. “For more than 100 years, financial strength has enabled us to be the reliable, consistent source of credit and financial services that rural communities and agriculture need.”
Year-to-date 2016 Results of Operations
Net income increased $18.5 million, or 7.7 percent, to $260.2 million for the six months ended June 30, 2016, compared to the same period of the prior year.
Net interest income increased to $280.8 million for the six months ended June 30, 2016, compared to $255.3 million for the same period in 2015, primarily due to increased wholesale loan volume compared to the same period of the prior year.
Provision for loan losses was $4.5 million for the six months ended June 30, 2016, compared to $3.0 million for the same period in 2015.
Non-interest income decreased to $44.0 million, compared to $48.4 million for the same period in 2015. This decrease was primarily driven by lower mineral income due to continued lower oil prices.
Second Quarter 2016 Results of Operations
Second quarter 2016 net income was $135.8 million, an increase of $17.9 million, or 15.2 percent, compared to the same period of the prior year. This increase was driven by an increase in net interest income and non-recurring gains on sales of available-for-sale investment securities, partially offset by a decline in mineral income driven by continued low oil prices.
Loan Portfolio
Total loans increased $1.7 billion, or 2.0 percent, to $84.5 billion from year-end 2015, primarily due to increases in wholesale loans to affiliated Associations, partially offset by repayments received on real estate mortgage loan participations purchased.
The solid liquidity and equity positions of many retail borrowers are reflected in the sound credit quality of the AgriBank portfolio at 99.6 percent acceptable loans as of June 30, 2016. Acceptable loans represent the highest quality assets. Credit quality remains relatively consistent with the position as of December 31, 2015; however, these historically strong positions are beginning, and will continue, to revert to levels more in line with historical norms. The credit quality of our retail loan portfolio declined to 95.5 percent acceptable at June 30, 2016, compared to 97.3 percent acceptable as of December 31, 2015. This decline was driven primarily by downgrades in credit quality in equipment finance loans purchased through the AgDirect program. Nonaccrual loans increased slightly to $51.6 million at June 30, 2016, but remain at acceptable levels.
The U.S. Department of Agriculture’s Economic Research Service’s (USDA-ERS) projects both net cash and net farm income to decline for the third consecutive year in 2016, after reaching a record high in 2013. Net farm income is projected to fall by 3.0 percent to $54.8 billion for 2016 compared to 2015, primarily related to feed crops, dairy and most protein sectors. Crop producers may benefit somewhat from a projected increase in direct government farm payments as well as reduced expenses, primarily related to energy cost savings.
Macroeconomic events of recent concern to agriculture include the recent Brexit referendum vote by the British public to begin the process of leaving the European Union and the resulting political and economic fallout from the decision. For U.S. agriculture, the immediate risk is through the impact of the decision on exchange rates and the potential for continued appreciation in the U.S. dollar which has had a negative impact upon U.S. agricultural exports.
Capital Resources and Liquidity
Total capital remains very strong, increasing $92.5 million during the period to $5.3 billion, driven primarily by net income, partially offset by patronage and dividends, and other comprehensive losses.
Cash and investments totaled $15.9 billion at quarter-end, compared to $16.2 billion at the end of 2015. The Bank’s end-of-the-period liquidity position represented 151 days coverage of maturing debt obligations, which supports AgriBank’s operational demands, and is well above the 90-day minimum established by AgriBank’s regulator.
AgriBank is one of the largest banks within the national Farm Credit System, with over $100 billion in total assets. Under the Farm Credit System’s cooperative structure, AgriBank is primarily owned by 17 affiliated Farm Credit Associations. The AgriBank District covers America’s Midwest, a 15-state area stretching from Wyoming to Ohio and Minnesota to Arkansas. With about half of the nation’s cropland located in the AgriBank District and over 100 years of experience, the Bank and its Association owners have significant expertise in providing financial products and services for rural communities and agriculture.
2016 full-year earnings outlook maintained; organic sales outlook adjusted to 2-4%
Novozymes, the world’s largest producer of industrial enzymes, today announced its results for the first half of 2016. Sales grew by 3% organically and were flat in DKK compared with the first half of 2015. EBIT was on par, and the EBIT margin was 27.2%, also on par with the first half of 2015. Adjusting for the restructuring costs in Q1, the EBIT margin would have expanded to above 28% and EBIT growth to around 4% compared with the first half of 2015. Net profit grew by 8%. Net investments were DKK 542 million, free cash flow before acquisitions was DKK 1,354 million and ROIC (incl. goodwill) was 25.4%.
The outlook for full-year organic sales growth is adjusted to 2-4%, down from previously 3-5%. The adjustment reflects uncertainty in most of the industries in which Novozymes operates. The outlook for sales in DKK is unchanged. The outlook for each of EBIT, EBIT margin, net profit, net investments, free cash flow and ROIC is also unchanged.
Peder Holk Nielsen, President and CEO of Novozymes, comments:
“Our business improved in the second quarter. We delivered strong earnings, and we increased our sales growth although we had aimed higher. We're on track to reach our full-year profit target, but we adjust our sales expectations due to the performance in the second quarter and the uncertainty facing many of our markets. Our pipeline of sustainable biological solutions remains strong, and we'll soon launch exciting, new innovation in BioAg.”
Zeal® SC Miticide Now Registered for Soybeans
Valent U.S.A. Corporation announced today the Environmental Protection Agency (EPA) registration of Zeal® SC Miticide for soybeans. Zeal is a proven residual miticide to be labeled for use on soybeans, providing growers with a new tool for long-lasting control of spider mites.
Zeal SC Miticide, a proven residual miticide, is now available for soybeans
Zeal helps prevent the yield-loss potential caused by two-spotted spider mites and other spider mite species that could feed in soybeans. The mode of action of Zeal ensures at least three weeks or more of residual control, enabling growers to target all stages of a mite's life cycle, from egg to adult. This residual aids in helping to control multiple generations and ultimately in protecting the crop.
Soybean growers now have a new tool with a long-lasting residual for managing mites and preserving yields," said Katie Tougeron, marketing manager at Valent. "The fast-acting translaminar activity in Zeal is unique among miticides that are currently available to soybean growers."
The translaminar movement of Zeal travels through the soybean leaf to quickly reach mites where they hide and feed. Soybeans are the most recent registration for Zeal, following registration in field corn, cotton and melons. The pursuit of the new registration was sought when Valent noticed an increasing demand for a true miticide for soybeans.
"Zeal is a much-needed solution for soybean growers who are struggling to manage mite populations," said Carlos Granadino, product development manager for Valent. "Mite damage in soybeans is prevalent in drought and dry conditions, which for many soybean geographies, is an annual occurrence."
Zeal is also farm-friendly. The low application rate of Zeal allows aerial applicators to treat more acres with one load. Additionally, the liquid formulation of Zeal helps with ease of mixing.
Tuesday, August 9, 2016
Monday August 8 Ag News + Crop Progress
NEBRASKA CROP PROGRESS AND CONDITION
For the week ending August 7, 2016, temperatures averaged near normal as cooler conditions arrived the last half of the week, according to the USDA’s National Agricultural Statistics Service. Precipitation of an inch or more was limited to portions of the southeast and some central areas. In the west, Panhandle producers were preparing for winter wheat planting. Irrigation was active in many counties. There were 5.9 days suitable for fieldwork. Topsoil moisture supplies rated 7 percent very short, 29 short, 63 adequate, and 1 surplus. Subsoil moisture supplies rated 5 percent very short, 26 short, 68 adequate, and 1 surplus.
Field Crops Report:
Corn condition rated 1 percent very poor, 4 poor, 19 fair, 59 good, and 17 excellent. Corn dough was 47 percent, ahead of 37 last year, and near the five-year average of 45. Dented was 9 percent, ahead of 4 last year, and equal to average.
Sorghum condition rated 0 percent very poor, 0 poor, 14 fair, 70 good, and 16 excellent. Sorghum headed was 73 percent, near 75 last year, but ahead of 62 average. Coloring was 5 percent, near 4 last year, and equal to average.
Soybeans condition rated 1 percent very poor, 3 poor, 19 fair, 62 good, and 15 excellent. Soybeans blooming was 94 percent, near 93 both last year and average. Setting pods was 65 percent, near 63 both last year and average.
Oats harvested was 85 percent, near 81 last year, but behind 90 average.
Alfalfa condition rated 4 percent very poor, 3 poor, 16 fair, 64 good, and 13 excellent. Alfalfa third cutting was 59 percent, well ahead of 38 last year, and ahead of 45 average. Fourth cutting was 4 percent, near 3 last year.
Livestock, Pasture and Range Report:
Pasture and range conditions rated 2 percent very poor, 4 poor, 22 fair, 61 good, and 11 excellent. Stock water supplies rated 1 percent very short, 9 short, 88 adequate, and 2 surplus.
IOWA CROP PROGRESS & CONDITION REPORT
Frequent but scattered precipitation throughout the week allowed Iowa farmers 5.1 days suitable for fieldwork for the week ending August 7, 2016, according to the USDA, National Agricultural Statistics Service. Activities for the week included cutting hay and fungicide and insecticide applications.
Topsoil moisture levels rated 1 percent very short, 11 percent short, 83 percent adequate and 5 percent surplus. Subsoil moisture levels rated 2 percent very short, 10 percent short, 83 percent adequate and 5 percent surplus. South central and southeast Iowa reported the lowest levels of subsoil moisture with over one-quarter short to very short.
Ninety-eight percent of the corn crop reached the silking stage, 11 days ahead of normal. Sixty-one percent reached the dough stage, 5 days ahead of last year and 9 days ahead of the 5-year average. Seven percent of Iowa’s corn crop reached the dent stage. Corn condition rated 83 percent good to excellent.
Soybeans blooming reached 94 percent, 6 days ahead of the previous year. Seventy-nine percent of soybeans were setting pods, one week ahead of normal. Soybean condition rated 82 percent good to excellent. Ninety percent of the oat crop for grain or seed has been harvested.
The second cutting of alfalfa hay reached 97 percent, more than 2 weeks ahead of last year and 9 days ahead of normal. The third cutting of alfalfa hay was 42 percent complete, 6 days ahead of average. Hay condition rated 73 percent good to excellent, while pasture condition rated 62 percent good to excellent. Frequent rains have been good for pastures, but made it difficult to cut and bale hay. Livestock were reported to be in good condition with very little stress.
IOWA PRELIMINARY WEATHER SUMMARY
Provided by Harry J. Hillaker, State Climatologist
Iowa Department of Agriculture & Land Stewardship
Very warm and humid weather prevailed from Monday (1st) through Thursday (4th). The hottest weather was on Thursday when actual temperatures peaked at 96 degrees at Lamoni while the heat index reached 111 degrees at Newton, Perry and Shenandoah. Drier and cooler weather finished out the week with Sheldon and Spencer recording Saturday (6th) morning lows of 50 degrees. Temperatures for the week as a whole averaged 0.7 degrees above normal although much of far southern Iowa averaged a little cooler than usual thanks to heavier rainfall in that area. Showers and thunderstorms were widespread over about the southwest one-half of Iowa on both Monday (1st) morning and Tuesday (2nd) morning. Heavy rains of two to four inches were common from Carroll County to Ringgold County on Monday with one to three inch amounts common from near Knoxville south to Centerville and Bloomfield on Tuesday. The most widespread rains of the week came on Thursday (4th) and Thursday night with rain falling over most of the southeast three-fourths of the state. High winds accompanied the Thursday storms over parts of central and northeastern Iowa. Weekly rain totals varied from only sprinkles at Swea City and Estherville to 4.83 inches at Mount Ayr and 4.68 inches at Creston. The statewide average precipitation was 1.25 inches while normal for the week is 0.96 inches.
USDA Weekly Crop Progress
Corn condition fell as 9% of the nation's crop moved into the dent stage, while soybean conditions held steady during the week ended Aug. 7, according to USDA's latest Crop Progress report released Monday.
The nation's corn crop is 97% silked, 53% in the dough stage, and 95% dented, compared to 91%, 30% and not available last week, 94%, 44% and 8% last year and averages of 94%, 42% and 12%. Corn condition fell from 76% good to excellent to 74%.
Soybeans are 91% blooming and 69% setting pods, compared to 85% and 54% last week, 86% and 65% last year and five-year averages of 88% and 61%. Seventy-two percent of the nation's beans are rated good to excellent, equal to last week.
Winter wheat was 94% harvested as of Sunday, compared to 89% last week, 96% last year and a 91% average.
Spring wheat harvest is 30% complete, compared to 10% last week, 22% last year and 18% on average. Spring wheat condition was rated as 68% good to excellent, even with last week.
Cotton squaring was at 96%, compared to 92% last week, 95% last year and a 96% average. Setting bolls was reported at 70%, compared to 54% last week, 65% last year and a 72% average. Nine percent of cotton bolls were opening, compared to 6% last year and a 7% average. Cotton condition worsened to 48% good to excellent, compared to 50% last week.
Rice was 86% headed, compared to 71% last week, 76% last year and a 68% average. Nine percent of the rice crop was harvested, compared to 7% last year and a 5% average. Rice condition held steady at 66% good to excellent.
Sorghum was 74% headed, compared to 61% last week, 68% last year and 61% on average. Coloring was reported at 31%, compared to 26% last week, 31% last year and a 33% average. Sorghum condition fell slightly to 65% good to excellent compared to 66% last week.
Oats were 68% harvested as of Sunday, compared to 53% last week, 57% last year and a 57% average.
Barley harvest was reported at 32% complete, compared to 11% last week, 35% last year and a 19% average. Barley condition was equal to last week at 72% good to excellent.
Frogeye Leaf Spot Starting to Show Up in Soybean
Loren Giesler - Extension Plant Pathologist
Over the past week some initial reports of frogeye leaf spot of soybean started coming in. Frogeye leaf spot is a fungal disease caused by Cercospora sojina. It is not common across the state but is becoming more widespread.
Nationally, yield loss due to frogeye leaf spot with extensive leaf blighting has been estimated as high as 30%; however, in Nebraska I would estimate potential loss in highly susceptible varieties at less than 20%. The disease is most severe when soybean is grown continuously in the same field, particularly in fields where tillage is reduced, since this is a residue-borne disease.
The primary sources for this disease are infested residue, infected seed, and airborne spores. In areas where this disease was observed in past years it will typically show up again if weather conditions are favorable.
What to Look For
Infection can occur at any stage of soybean development, but most often occurs after flowering and in the upper canopy. Initial symptoms are small, dark spots on the leaves. Spots eventually enlarge to a diameter of about ¼ inch. Lesion centers will turn gray to brown and have a reddish purple margin. Individual leaf spots can coalesce to create irregular patterns of blighting on the leaf.
Management of Frogeye Leaf Spot
Resistance. Soybean varieties vary in their resistance to frogeye leaf spot. Several genes are commonly used for resistance. You will want to know the susceptibility of your variety if you’re trying to decide whether a fungicide is warranted.
Cultural Practices. Frogeye leaf spot is more severe in continuously cropped soybean fields. Reduced tillage systems will tend to have more as the pathogen overwinters in residue.
Fungicide Application. In Nebraska a fungicide application typically is not warranted to manage frogeye leaf spot. Fields with a history of frogeye should be watched carefully and if disease develops, application of a strobilurin fungicide at the R3 (pod set) to early R4 growth stage is considered to be most effective.
In 2010 resistance of this pathogen to strobilurin fungicide was reported for the first time in Tennessee. Since then there has been significant spread of the resistance in the Mississippi valley, but none has been observed in Nebraska. If an application is made and control is not as expected, it is possible that resistance has spread; however, most likely, it will not be an issue for us in Nebraska for several years. In addition, most fungicide products on the market today are combinations with different modes of action with activity against this fungus.
Aug. 20 Farm Tour to Look at Cover Crops, Flaming, and Crimping August 1, 2016
A Butler County farm tour will look at two operations where growers have integrated cover crops and used flaming or crimper tecnology to manage weeds. The tour will be Saturday, August 20 from 1:30 p.m. to 5:30 p.m. and followed by a meal.
"This is a great opportunity for farmers to share information and ask questions about cover crops, reduced tillage, and weed management using a roller crimper or flamer," said Rich Little, tour organizer and research technologist in UNL's Department of Agronomy and Horticulture.
The tour starts at 1:30 p.m. at Larry Stanislav's farm two miles north of Abie. Stanislav practices reduced tillage and uses a flamer to manage weeds in soybean. He will discuss how he has incorporated cover crops into his crop rotation, saving money on nitrogen and reducing soil erosion. Participants will view crimping research using UNL experimental lines of early-maturing triticale as mulch for weed suppression and evaluate the cash crop of drilled soybean. Stanislav is a cooperator in a Ceres Trust grant that provided partial funding to develop a twin-roller, adjustable-angle roller crimper, which will be on display at the field day.
At 3:30 pm participants will tour Randy Fendrich's farm three miles southeast of the Stanislav farm. Fendrich has demonstration plots of organic corn and soybean varieties that he is evaluating for yield. He will discuss his cultural practices and crop rotation, his use of a 12-row flamer/cultivator, and his program to build soil health. He also will discuss his succession plan for bringing his daughter into the farming operation.
At 5 pm Randy Anderson, research agronomist in the USDA North Central Agricultural Research Laboratory, will discuss
- canopy architecture of cover crops for planning mixtures,
- berseem clover establishment, and
- improved crop tolerance to weed interference.
At 6 p.m. a free meal will be served. Call Dee at 402-584-3837 by Aug. 12 to reserve your meal.
The UNL event is sponsored by OCIA, the Organic Crop Improvement Association. For more information about the farm tour contact Little at 402-805-7482 or email rlittle2@unl.edu.
PLANNING NEXT YEAR'S GRAZING TODAY
Bruce Anderson, NE Extension Forage Specialist
Do you have extra grass this year? If so, there are ways you can improve next year's grazing by managing this year's grass.
Extra grass is not normal. If you are lucky enough to have more grass than needed this year, don’t forget that next year could be hotter and drier than this year – producing less grass.
But you can boost carrying capacity and gains on next year's pasture by strategically managing your extra grass this year.
Start by identifying pasture improvements that could help future grazing. Control weeds, accumulate enough growth on warm-season grass pastures to conduct an effective prescribed burn next spring, or select pastures where stressing the existing stand will help you establish legumes next spring. All these practices can temporarily reduce pasture growth, but they can provide long-term benefits. Thus, it is better to do them when you have extra grass rather than when grass is short.
Another way to help next year's growth is to avoid overgrazing this fall unless you are doing it intentionally to prepare for interseeding next spring. Heavy fall grazing weakens plants as they go into winter and causes them to grow less vigorously after spring green-up. If you do graze heavy this fall, though, do it on pastures that will be used last next spring. This will give them extra time to recover.
A particularly valuable way to manage extra grass is to begin to stockpile some growth now for either grazing this winter or to start grazing extra early next spring. This could save on winter hay needs or give you an area to get animals away from mud next spring. Plus, it's usually good for your grass, too.
Take advantage of extra grass to begin long-term pasture improvements. It happens so rarely that next year might be too late.
RURAL POLL SHOWS NEBRASKANS’ OPTIMISM
Rural Nebraskans continue to be optimistic about their current situation and future, according to the 2016 Nebraska Rural Poll.
Fifty-two percent of respondents said they are better off this year than five years ago, holding steady from 53 percent last year, the highest proportion in all 21 years of the study, also occurring in 2008. Only 16 percent said they were worse off.
The University of Nebraska-Lincoln Department of Agricultural Economics conducts the poll in cooperation with the Rural Futures Institute at the University of Nebraska, with funding from Nebraska Extension and the Agricultural Research Division in the Institute of Agriculture and Natural Resources.
This optimism was also reflected in their outlook on the future, with 46 percent believing they will be better off in 10 years. The results were similar to last year's 48 percent. The percentage of those who thought they will be worse off increased slightly, from 17 percent in 2015 to 20 percent this year.
Respondents' assessment of their current situation reflects a general pattern of growing optimism over the 21 years of poll results, with bigger declines occurring in 2003, 2006, 2009 and 2013. When looking to the future, there has also been a general trend of increasing optimism over the past 21 years, with two bigger declines in 2003 and 2013. This poll was conducted in the spring.
“There can be quite bit of annual variation in these confidence measures resulting from timing with regard to large events and statistical error. However, the trend over the poll’s entire 21 years has been for that confidence to slowly increase,” said Randy Cantrell, rural sociologist with the Nebraska Rural Futures Institute. “If one considers the array of the things that affect an individual’s day-to-day life, many if not most have in fact improved. If nothing else, technology has made a lot of things easier and created a new set of possibilities for individuals to learn, to participate with others in pursuing their interests, to engage in commerce, and in general to see more opportunities for themselves and their surroundings.”
Brad Lubben, assistant professor of agricultural economics, said he was surprised by the continued optimism from those employed in agriculture.
“I would have expected the ag sector to be less optimistic. They may still be better than five years ago from accumulated wealth, but the outlook for the next 10 years is surprisingly strong,” Lubben said. “Maybe they are looking past the short-run difficulties at the long-run opportunities for growth.”
In addition, most rural Nebraskans disagreed that people are powerless to control their own lives (55 percent). The proportion remained the same as last year.
Differences in satisfaction with respondents’ financial security during retirement were found by community size. Over one-half of persons living in or near the smallest communities (55 percent) report being dissatisfied with their financial security during retirement. In comparison, only 39 percent of persons living in or near communities with populations ranging from 5,000 to 9,999 are dissatisfied with this item.
Other results:
* Rural Nebraskans continued to be most satisfied with their marriage, family, friends, the outdoors, their safety and their general quality of life. They continue to be less satisfied with job opportunities, current income level, their ability to build assets and wealth and financial security during retirement.
* Certain groups remained pessimistic about their current and future situation. Those with lower household incomes, older respondents and those with lower educational levels were most likely to be pessimistic about the present and the future.
* Rural Nebraskans with lower education levels were more likely than persons with more education to believe that people are powerless to control their own lives. Thirty-six percent of respondents with a high school diploma or less education agreed that people are powerless to control their own lives. However, only 19 percent of those with at least a four-year college degree shared this opinion.
The Rural Poll is the largest annual poll of rural Nebraskans’ perceptions on quality of life and policy issues. The poll has a collection of data about rural trends and perceptions that is unmatched in the country, said Becky Vogt, survey research manager who has worked on the Rural Poll since its second year. This year’s response rate was 29 percent and the margin of error was plus or minus 2 percent.
The 21st annual poll was sent to 6,115 households in 86 Nebraska counties in April. Results are based on 1,746 responses. Complete results are available at http://ruralpoll.unl.edu.
Although the Grand Island area -- Hall, Hamilton, Howard and Merrick counties -- was designated a metropolitan area by the U.S. Census Bureau in 2013, the Rural Poll continues to include those counties in its sample. Also, Dixon and Dakota counties were added to the poll in 2014.
Northey and India Ag Minister to Sign Memorandum of Cooperation
Iowa Secretary of Agriculture Bill Northey and Om Prakash Dhankar, Cabinet Minister of Agriculture, Animal Husbandry & Dairying, Fisheries, Irrigation and Development for the state of Haryana, India, have signed a Memorandum of Cooperation during a meeting in the Iowa Capitol yesterday.
Dhankar and a delegation from Haryana are visiting Iowa to learn about our state's agriculture production. In addition to the event at the capitol, the delegation will also visit Iowa State University, tour an Iowa farm and meet with representatives of Iowa agriculture groups.
Northey visited India twice in 2013, including participating in a trade mission lead by Gov. Terry Branstad in September of that year. This visit by a delegation from Haryana is a step by the two state's Departments of Agriculture to work more closely together to promote collaborations and partnerships in agriculture.
Haryana is located in the northwestern part of India and approximately 84 percent of the state's land is under cultivation. As a result, agriculture is the principal occupation with about 65 percent of the population engaged in agriculture and its allied sectors.
The Green Revolution of 1960's that made India self-sufficient in food grain production was first established in Haryana and the neighboring Punjab and West Uttar Pradesh, together considered as the 'Grain Basket' of India. Haryana is now a leading contributor to the country's production of food grains and milk and have the major share in exports of long grain Basmati rice from India.
Scoular Names Paul Maass Chief Executive Officer
The Scoular Company announced today that its Board of Directors has appointed Paul Maass as Chief Executive Officer, effective August 22, 2016. Maass will office in the company's Omaha, Nebraska headquarters and be responsible for worldwide strategic leadership.
Maass most recently served as President of ConAgra Foods' Commercial Foods and Private Brands segments as well as Chairman of the Ardent Mills joint venture. In that role, he led businesses with total annual revenue of $13 billion and more than 15,000 employees and 90 manufacturing facilities in seven countries.
He began his 27-year career with ConAgra as a commodity merchandiser after graduating from Iowa State University with a degree in agricultural business. Throughout his career, he served in various leadership positions, including Director, ConAgra Trade Group (now Gavilon, LLC); President, ConAgra Mills; President, Lamb Weston; and President, Commercial Foods division.
"Following a six-month search, we are pleased to have found a seasoned, accomplished agribusiness executive like Paul," said David Faith, Chairman of the Board for The Scoular Company. "His diverse background and solid experience are an excellent fit for Scoular, from commodity merchandising and logistics to commercial food ingredient processing, sales and P&L management. Further, his proven experience in successful corporate strategy will be a great asset to Scoular as we continue to pursue growth opportunities, domestically and internationally."
"I am thrilled with the opportunity to join the team and lead Scoular. I've known Scoular my entire career and have always admired the great people and the integrity of the company," said Maass. "I am excited about the future as we work together to leverage our unique potential and create value."
U.S. Pork, Beef Exports Solid in June; First-half Volumes Ahead of Last Year
U.S. red meat exports ended the first half of 2016 on a positive note, as June export values for both pork and beef were the highest of the year. June also marked the second consecutive month of solid year-over-year volume growth, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Pork exports reached 187,939 metric tons (mt) in June, up 8 percent from a year ago, while export value increased 11 percent to $505.4 million. For the first half of the year, pork export volume was up 2 percent to 1.1 million mt, but value was down 4 percent to $2.77 billion.
Exports accounted for 26 percent of total pork production in June and 22 percent for muscle cuts only – each up one percentage point from a year ago. For January through June, these ratios were 25 percent and 21 percent, respectively, up slightly from last year. Export value per head slaughtered was $52.83 in June – up 10 percent from a year ago. First-half per-head value was $48.34, down 5 percent.
June beef export volume increased 2 percent from a year ago to 98,920 mt, while export value was $545.4 million, down 5 percent. First-half export volume was up 3 percent to 541,547 mt, while value fell 10 percent to $2.91 billion.
Exports accounted for 13 percent of total beef production in June and 10 percent for muscle cuts only – each down about 1 percentage point from a year ago. For January through June, these ratios were also 13 percent and 10 percent, respectively, steady with last year. Export value per head of fed slaughter was $250 in June and $249.67 for the first half – each down 14 percent from a year ago.
Pork exports strong to China/Hong Kong, Canada, Central America
June pork exports to China/Hong Kong remained well ahead of last year’s pace, increasing 84 percent in volume (50,374 mt) and 73 percent in value ($98.8 million). But June volume was the lowest since February, reflecting some cooling of the market. Exports to China/Hong Kong finished the first half 80 percent higher than a year ago in volume (284,900 mt) and 63 percent higher in value ($540.5 million).
“New opportunities for U.S. pork were developed in China/Hong Kong over the past year, and the inroads we made with importers and other key buyers in the region will pay long-term dividends,” said USMEF President and CEO Philip Seng. “But it is important to recognize the shift in market conditions in China, which means growth in other key markets is essential to achieving a successful second half in 2016.”
Leading pork value market Japan showed renewed momentum in June, with exports up 1 percent from a year ago in volume (32,879 mt) and 6 percent higher in value ($138.1 million). First-half exports to Japan were still down 13 percent in volume (192,862 mt) and 10 percent in value ($749.6 million), as record volumes of chilled U.S. pork entering Japan (109,665 mt, up 19 percent, valued at $485 million, up 14 percent) were offset by lower imports of frozen product.
After a strong May performance, pork exports to Mexico took a step back in June, falling 13 percent from a year ago in volume (54,335 mt) and 5 percent in value ($105.4 million). First-half export volume to Mexico was 324,745 mt, down 8 percent from a year ago, while value fell 9 percent to $566 million. A spike in ham prices, compounded by the weak peso, significantly impacted June export results. But with ham prices moderating by mid-July, USMEF anticipates a rebound in demand.
June results were better north of the border, as pork exports to Canada totaled 16,731 mt – up 11 percent from a year ago and the largest of 2016 – while export value increased 13 percent to $69.5 million. This pushed first-half exports to Canada slightly ahead of last year’s pace at 96,582 mt, while value was steady at $381.6 million.
Led by mainstay markets Honduras and Guatemala, U.S. pork posted a very strong first half in Central America as exports climbed 16 percent from a year ago in volume (31,274 mt) and 7 percent in value ($72.5 million). In addition to Honduras and Guatemala, exports also increased year-over-year to Nicaragua, Costa Rica, El Salvador and Belize.
June was also a very strong month for U.S. pork in the Philippines, a highly competitive market that purchases large volumes of raw material for further processing. June exports to the Philippines increased 54 percent from a year ago in volume (3,454 mt) and more than doubled in value ($10.3 million, up 126 percent). First-half exports totaled 15,995 mt (up 6 percent) valued at $37 million (up 23 percent).
U.S. beef reclaims market share in Japan; June ASEAN volume doubles
June beef exports to Japan were the largest in nearly two years at 25,836 mt, up 29 percent from a year ago. First-half exports climbed 12 percent in volume (122,316 mt) and 5 percent in value ($707.2 million). Showing strong demand for high-quality cuts, Japan’s first-half imports of chilled U.S. beef surged 51 percent from a year ago to 50,795 mt. These shipments were valued at $369 million, up 32 percent. Japan’s first-half import data also show a strong rebound in market share for U.S. beef at 38.5 percent – up from 33 percent in 2015 and about one percentage point higher than in 2014. Australia’s market share, which was nearly 57 percent in the first half of last year, fell to 52 percent.
“U.S. beef faces a significant tariff rate disadvantage in Japan, and this gap will grow larger unless and until the Trans-Pacific Partnership is ratified,” Seng said. “But rather than dwell on the challenges we face in this market, the U.S. industry needs to capitalize on its opportunities. And USMEF is doing so by educating retail and foodservice buyers about the wide range of U.S. beef cuts that appeal to their customers. We’re pushing well beyond the forequarter cuts traditionally marketed in Japan, and consumers are responding in a very positive way.”
Beef exports to Mexico remained strong in June, increasing 14 percent from a year ago to 20,021 mt, though value was down 13 percent to $76.2 million. First-half exports to Mexico were up 3 percent in volume to 111,834 mt, valued at $475.4 million (down 11 percent).
U.S. beef continues to gain market share in South Korea, with June export volume up 2 percent from a year ago at 12,880 mt. For January through June, exports to Korea were up 21 percent from a year ago in volume (73,942 mt), while value was 3 percent higher at $436.4 million. Chilled beef to Korea totaled 10,288 mt (up 45 percent) valued at $89 million (up 33 percent) as U.S. beef rapidly expands its retail presence.
Fueled by strong growth in the Philippines, Indonesia and Vietnam, June exports to the ASEAN region reached 2,582 mt, up 113 percent from a year ago, while export value climbed 57 percent to $12.6 million. First-half exports totaled 11,091 mt (up 7 percent) valued at $61.6 million (down 14 percent).
Lamb exports slump due to low variety meat volume
June lamb exports were the lowest of 2016 at 457 mt, down 58 percent from a year ago, though this was due in large part to a sharp decline in variety meat exports to Mexico. June export value fell 39 percent to $1.1 million. For the first half of 2016, lamb exports were down 9 percent from a year ago in volume (4,330 mt) and fell 13 percent in value ($8.7 million). Exports to Bermuda continued to perform well in June.
Advocates Celebrate 11th Anniversary of America's Most Successful Biofuels Program
Eleven years ago this Monday, August 8, the Renewable Fuel Standard (RFS) was signed into law, ushering in a new era of rising energy security, cleaner air, and more affordable options at the pump. After more than a decade, the program continues to drive U.S. job creation and startling new innovations in renewable energy, a fact celebrated today by the nation's leading biofuel advocates.
"Our government challenged the biofuels industry to produce the world's cleanest, most affordable and sustainable fuel for cars and trucks. We delivered - and America continues to benefit," said Adam Monroe, President, Americas, Novozymes North America Inc. "The RFS is a proven winner: it grows communities with hundreds of thousands of good-paying jobs; saves American drivers money and keeps billions of their dollars in the US versus going to the Middle East; and fights climate change by preventing millions of tons of carbon emissions from getting into our air. Let's not roll back a winner; let's let it work to its full potential. We urge the administration to maximize renewable fuel production."
"This is a good opportunity to remind the Environmental Protection Agency (EPA) that the RFS is designed to get stronger over time, delivering a greater share of renewable energy into our fuel mix," said Emily Skor, CEO of Growth Energy. "The agency has proposed cutting RFS targets for 2017, which would needlessly undermine eleven years of progress toward a cleaner environment and a healthier, more secure America. Ethanol producers, retailers and the current auto fleet are 100 percent capable of providing consumers with a true choice at the pump, and now is certainly not the time to roll back the clock. EPA must get the program back on track and deliver on the promise of new, more affordable options for consumers."
"Passage of the 2005 Energy Policy Act could not have been possible were it not for the cooperation between the ethanol, agriculture and oil sectors," said Bob Dinneen, president and CEO of the Renewable Fuels Association. "The oil industry needed an off ramp from the use of MTBE, which was polluting groundwater across the country, and the ethanol industry needed a growth path if farmers were ever to realize the promise of value-added markets. Every stakeholder cheered the passage of this groundbreaking legislation, and it was an immediate success. MTBE disappeared as a gasoline additive, investments in U.S. biofuel production soared, farmers saw increased demand for their commodities allowing Congress to dramatically cut farm program costs, consumers saw pump prices fall as ethanol displaced more expensive oil, and carbon emissions from the transportation sector fell precipitously. All of those benefits continue to this day."
"The RFS guarantees America's leadership in the global transition to ethanol, which has cut world-wide carbon emissions 589 million metric tons over the past decade, the equivalent of taking more than 124 million cars off of the road," said Chip Bowling, president of the National Corn Growers Association. "And thanks to innovation in U.S. agriculture, we are growing more crops on less land than we cultivated when the RFS was first enacted."
"Simply put, the RFS is delivering on its promise," said Brooke Coleman, executive director of the Advanced Biofuels Business Council. "Almost every gallon of gasoline in the country now contains renewable fuel. Consumers are gaining access to new biofuel blends that reduce pump prices, increase octane, deliver better performance, and replace cancer-causing gasoline additives like benzene. With cellulosic biofuels -- the lowest carbon motor fuel in the world -- now coming online, the RFS is driving innovation like we have never seen before in the transportation fuel sector."
On August 8, 2005, the bipartisan RFS was signed into law by President George W. Bush as part of the Energy Policy Act of 2005 (EPAct). The legislation was passed by the House by a vote of 275 to 156 and the Senate by a vote of 74 to 26. Expanded in 2007, it requires refiners to blend increasing amounts of biofuels into new options for consumers at the pump. It has since sparked billions of dollars in U.S. investments and driven America's emergence as a world leader in renewable technology.
Growth Energy Applauds California Delegation Letter to EPA
Today, representatives from the California delegation sent a letter to Environmental Protection Agency (EPA) Administrator Gina McCarthy, urging the EPA to finalize blending targets under the Renewable Fuel Standard (RFS) to the statutory limits as originally called for by Congress. The letter highlights the importance of this program, and points out the EPA’s flawed methodology that would absolve the obligated party’s requirements to continue to provide higher biofuel blends. Emily Skor, Growth Energy CEO, issued the following statement:
“The letter explicitly urges EPA to put the RFS program back on track by finalizing blending targets that are in line with Congress’ original intent. The RFS program has been a resounding success. EPA’s methodology, as it currently stands will let the obligated parties off the hook, decreasing the commercial availability of higher blends, such as E15. By returning to the statutory levels, the administration would will send a signal to the renewable fuels industry that they are committed to achieving the goals of carbon reduction, a free and fair fuel marketplace where consumers have a choice, and reaffirm their commitment to reduce our dangerous dependence on foreign oil.
“We commend these members of Congress for supporting renewable fuels by acknowledging the industry’s tremendous innovation, investment and contributions. The biofuels industry and the RFS are advancing consumer choice, job creation and environmental improvement by reducing greenhouse gas emissions and removing other toxic alternatives, which have been proven to cause cancer, smog and groundwater contamination. Getting the RFS back on track is critical if we wish to continue to build on the progress already achieved.
“The RFS is our nation’s most successful energy policy, and the biofuels industry is an American success story. We thank this group of representatives for their commitment to fostering growth in the American biofuels industry, and stand with them in support.”
Which is Bigger: Brazil-US Beef Trade Announcement or US Jobs Report?
Glynn T. Tonsor, Professor
Department of Agricultural Economics, Kansas State University
This past week included several reports, announcements, and market updates of central interest to US cattle producers. The CME announcement of changes to their Live Cattle contracts warrants a separate discussion and will not be covered here. Similarly, ongoing declines in expected upcoming corn prices are supportive to cattle markets but will not be outlined in this article. Rather this week's article is a synthesis comparison of changes in US-Brazil beef trade and employment in the US.
Last Monday an updated agreement to bilateral beef trade between Brazil and the US was announced. Going forward the trade deal terms may well change, exchange rates are bound to move over time, underlying supply and demand fundamentals are certain to adjust, and a wealth of additional research and discussion is sure to focus on updating and expanding understanding of animal health risks involved. What is easier to speak to is the shorter-term likely economic impacts.
While the US has been accepting beef from Brazil it has largely been confined to cooked or processed product, rather than fresh or frozen, due to past concerns regarding FMD (Foot and Mouth Disease) risks. The updated agreement will extend Brazil's access by allowing fresh or frozen beef to be imported as part of the Other countries tariff rate quota (TRQ) currently available. What is most important from an aggregate economic impact perspective is that this Other countries TRQ currently amounts to about 15% of what is available to Australia. Coupling this with the observation of FSIS (Food Safety and Inspection Service) having yet to approve any Brazilian plants suggests the net economic impact under the current TRQ and broader economic situation will likely be rather minimal.
The flip side of the US-Brazil beef trade announcement is Brazil allowing imports of US beef for the first time since the BSE event of 2003. While any enhancement in ability to export beef is a positive for the US industry, on balance this likely will also have a small impact in the short term.
A report released later last week is arguably more important to the near term cattle market situation. The US jobs report indicates that 255,000 jobs were added in July which is a full 75,000 jobs above pre-report expectations. Coupled with an increase in base wages this is certainly a positive update for meat demand. Increases in employment and wages is beneficial to meat demand given protein is one of the more expensive food items. Going further, given the heavy reliance on domestic consumption this report is particularly good for the beef industry and increases the viability of ongoing production expansion while at least partially mitigating downward pressure on retail beef (and hence cattle) prices.
I'll end by emphasizing it is important to appreciate the relative impact of US employment changes and the Brazil-US beef trade announcement. The increase in employment and wages is certainlysupportive of beef and cattle prices while the Brazil-US beef trade announcement seems likely to have a much lower net economic impact in the near term.
CWT Assists with 1.2 Million Pounds of Cheese and Whole Milk Powder Export Sales
Cooperatives Working Together (CWT) has accepted four requests for export assistance from Dairy Farmers of America, Northwest Dairy Association (Darigold) and Michigan Milk Producers Association, who have contracts to sell 608,476 pounds (276 metric tons) of Cheddar cheese and 573,202 pounds (260 metric tons) of whole milk powder to customers in Asia and South America. The product has been contracted for delivery in the period from August through October 2016.
So far this year, CWT has assisted member cooperatives who have contracts to sell 30.699 million pounds of American-type cheeses, 8.415 million pounds of butter (82% milkfat) and 21.301 million pounds of whole milk powder to 21 countries on five continents. The sales are the equivalent of 628.192 million pounds of milk on a milkfat basis. Totals have been adjusted due to cancellations.
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.
Brazil to Plant More Soybeans, Corn in 2016-17
High prices will prompt summer corn to rob soybean area in southern Brazil during the upcoming 2016-17 season, according to Agroconsult, a local farm consultancy.
But expansion elsewhere will mean soybean area also grows, said Andre Pessoa, an Agroconsult director, during an agribusiness event in Sao Paulo Monday.
First-crop summer corn area will grow around 6% to 8.4 million acres, going against the trend over the last decade for area to decline.
But the preference for corn won't be enough to stop the juggernaut that is Brazil's soybean crop.
Soybean planted area will grow by approximately 1.5% to 83.2 million acres, Pessoa told reporters.
Even with soybean futures slipping from recent highs and a strengthening Brazilian real, the prospects for planting beans remains positive and, with around 25% of the crop sold in Mato Grosso, farmers are already committed to increasing area.
For the week ending August 7, 2016, temperatures averaged near normal as cooler conditions arrived the last half of the week, according to the USDA’s National Agricultural Statistics Service. Precipitation of an inch or more was limited to portions of the southeast and some central areas. In the west, Panhandle producers were preparing for winter wheat planting. Irrigation was active in many counties. There were 5.9 days suitable for fieldwork. Topsoil moisture supplies rated 7 percent very short, 29 short, 63 adequate, and 1 surplus. Subsoil moisture supplies rated 5 percent very short, 26 short, 68 adequate, and 1 surplus.
Field Crops Report:
Corn condition rated 1 percent very poor, 4 poor, 19 fair, 59 good, and 17 excellent. Corn dough was 47 percent, ahead of 37 last year, and near the five-year average of 45. Dented was 9 percent, ahead of 4 last year, and equal to average.
Sorghum condition rated 0 percent very poor, 0 poor, 14 fair, 70 good, and 16 excellent. Sorghum headed was 73 percent, near 75 last year, but ahead of 62 average. Coloring was 5 percent, near 4 last year, and equal to average.
Soybeans condition rated 1 percent very poor, 3 poor, 19 fair, 62 good, and 15 excellent. Soybeans blooming was 94 percent, near 93 both last year and average. Setting pods was 65 percent, near 63 both last year and average.
Oats harvested was 85 percent, near 81 last year, but behind 90 average.
Alfalfa condition rated 4 percent very poor, 3 poor, 16 fair, 64 good, and 13 excellent. Alfalfa third cutting was 59 percent, well ahead of 38 last year, and ahead of 45 average. Fourth cutting was 4 percent, near 3 last year.
Livestock, Pasture and Range Report:
Pasture and range conditions rated 2 percent very poor, 4 poor, 22 fair, 61 good, and 11 excellent. Stock water supplies rated 1 percent very short, 9 short, 88 adequate, and 2 surplus.
IOWA CROP PROGRESS & CONDITION REPORT
Frequent but scattered precipitation throughout the week allowed Iowa farmers 5.1 days suitable for fieldwork for the week ending August 7, 2016, according to the USDA, National Agricultural Statistics Service. Activities for the week included cutting hay and fungicide and insecticide applications.
Topsoil moisture levels rated 1 percent very short, 11 percent short, 83 percent adequate and 5 percent surplus. Subsoil moisture levels rated 2 percent very short, 10 percent short, 83 percent adequate and 5 percent surplus. South central and southeast Iowa reported the lowest levels of subsoil moisture with over one-quarter short to very short.
Ninety-eight percent of the corn crop reached the silking stage, 11 days ahead of normal. Sixty-one percent reached the dough stage, 5 days ahead of last year and 9 days ahead of the 5-year average. Seven percent of Iowa’s corn crop reached the dent stage. Corn condition rated 83 percent good to excellent.
Soybeans blooming reached 94 percent, 6 days ahead of the previous year. Seventy-nine percent of soybeans were setting pods, one week ahead of normal. Soybean condition rated 82 percent good to excellent. Ninety percent of the oat crop for grain or seed has been harvested.
The second cutting of alfalfa hay reached 97 percent, more than 2 weeks ahead of last year and 9 days ahead of normal. The third cutting of alfalfa hay was 42 percent complete, 6 days ahead of average. Hay condition rated 73 percent good to excellent, while pasture condition rated 62 percent good to excellent. Frequent rains have been good for pastures, but made it difficult to cut and bale hay. Livestock were reported to be in good condition with very little stress.
IOWA PRELIMINARY WEATHER SUMMARY
Provided by Harry J. Hillaker, State Climatologist
Iowa Department of Agriculture & Land Stewardship
Very warm and humid weather prevailed from Monday (1st) through Thursday (4th). The hottest weather was on Thursday when actual temperatures peaked at 96 degrees at Lamoni while the heat index reached 111 degrees at Newton, Perry and Shenandoah. Drier and cooler weather finished out the week with Sheldon and Spencer recording Saturday (6th) morning lows of 50 degrees. Temperatures for the week as a whole averaged 0.7 degrees above normal although much of far southern Iowa averaged a little cooler than usual thanks to heavier rainfall in that area. Showers and thunderstorms were widespread over about the southwest one-half of Iowa on both Monday (1st) morning and Tuesday (2nd) morning. Heavy rains of two to four inches were common from Carroll County to Ringgold County on Monday with one to three inch amounts common from near Knoxville south to Centerville and Bloomfield on Tuesday. The most widespread rains of the week came on Thursday (4th) and Thursday night with rain falling over most of the southeast three-fourths of the state. High winds accompanied the Thursday storms over parts of central and northeastern Iowa. Weekly rain totals varied from only sprinkles at Swea City and Estherville to 4.83 inches at Mount Ayr and 4.68 inches at Creston. The statewide average precipitation was 1.25 inches while normal for the week is 0.96 inches.
USDA Weekly Crop Progress
Corn condition fell as 9% of the nation's crop moved into the dent stage, while soybean conditions held steady during the week ended Aug. 7, according to USDA's latest Crop Progress report released Monday.
The nation's corn crop is 97% silked, 53% in the dough stage, and 95% dented, compared to 91%, 30% and not available last week, 94%, 44% and 8% last year and averages of 94%, 42% and 12%. Corn condition fell from 76% good to excellent to 74%.
Soybeans are 91% blooming and 69% setting pods, compared to 85% and 54% last week, 86% and 65% last year and five-year averages of 88% and 61%. Seventy-two percent of the nation's beans are rated good to excellent, equal to last week.
Winter wheat was 94% harvested as of Sunday, compared to 89% last week, 96% last year and a 91% average.
Spring wheat harvest is 30% complete, compared to 10% last week, 22% last year and 18% on average. Spring wheat condition was rated as 68% good to excellent, even with last week.
Cotton squaring was at 96%, compared to 92% last week, 95% last year and a 96% average. Setting bolls was reported at 70%, compared to 54% last week, 65% last year and a 72% average. Nine percent of cotton bolls were opening, compared to 6% last year and a 7% average. Cotton condition worsened to 48% good to excellent, compared to 50% last week.
Rice was 86% headed, compared to 71% last week, 76% last year and a 68% average. Nine percent of the rice crop was harvested, compared to 7% last year and a 5% average. Rice condition held steady at 66% good to excellent.
Sorghum was 74% headed, compared to 61% last week, 68% last year and 61% on average. Coloring was reported at 31%, compared to 26% last week, 31% last year and a 33% average. Sorghum condition fell slightly to 65% good to excellent compared to 66% last week.
Oats were 68% harvested as of Sunday, compared to 53% last week, 57% last year and a 57% average.
Barley harvest was reported at 32% complete, compared to 11% last week, 35% last year and a 19% average. Barley condition was equal to last week at 72% good to excellent.
Frogeye Leaf Spot Starting to Show Up in Soybean
Loren Giesler - Extension Plant Pathologist
Over the past week some initial reports of frogeye leaf spot of soybean started coming in. Frogeye leaf spot is a fungal disease caused by Cercospora sojina. It is not common across the state but is becoming more widespread.
Nationally, yield loss due to frogeye leaf spot with extensive leaf blighting has been estimated as high as 30%; however, in Nebraska I would estimate potential loss in highly susceptible varieties at less than 20%. The disease is most severe when soybean is grown continuously in the same field, particularly in fields where tillage is reduced, since this is a residue-borne disease.
The primary sources for this disease are infested residue, infected seed, and airborne spores. In areas where this disease was observed in past years it will typically show up again if weather conditions are favorable.
What to Look For
Infection can occur at any stage of soybean development, but most often occurs after flowering and in the upper canopy. Initial symptoms are small, dark spots on the leaves. Spots eventually enlarge to a diameter of about ¼ inch. Lesion centers will turn gray to brown and have a reddish purple margin. Individual leaf spots can coalesce to create irregular patterns of blighting on the leaf.
Management of Frogeye Leaf Spot
Resistance. Soybean varieties vary in their resistance to frogeye leaf spot. Several genes are commonly used for resistance. You will want to know the susceptibility of your variety if you’re trying to decide whether a fungicide is warranted.
Cultural Practices. Frogeye leaf spot is more severe in continuously cropped soybean fields. Reduced tillage systems will tend to have more as the pathogen overwinters in residue.
Fungicide Application. In Nebraska a fungicide application typically is not warranted to manage frogeye leaf spot. Fields with a history of frogeye should be watched carefully and if disease develops, application of a strobilurin fungicide at the R3 (pod set) to early R4 growth stage is considered to be most effective.
In 2010 resistance of this pathogen to strobilurin fungicide was reported for the first time in Tennessee. Since then there has been significant spread of the resistance in the Mississippi valley, but none has been observed in Nebraska. If an application is made and control is not as expected, it is possible that resistance has spread; however, most likely, it will not be an issue for us in Nebraska for several years. In addition, most fungicide products on the market today are combinations with different modes of action with activity against this fungus.
Aug. 20 Farm Tour to Look at Cover Crops, Flaming, and Crimping August 1, 2016
A Butler County farm tour will look at two operations where growers have integrated cover crops and used flaming or crimper tecnology to manage weeds. The tour will be Saturday, August 20 from 1:30 p.m. to 5:30 p.m. and followed by a meal.
"This is a great opportunity for farmers to share information and ask questions about cover crops, reduced tillage, and weed management using a roller crimper or flamer," said Rich Little, tour organizer and research technologist in UNL's Department of Agronomy and Horticulture.
The tour starts at 1:30 p.m. at Larry Stanislav's farm two miles north of Abie. Stanislav practices reduced tillage and uses a flamer to manage weeds in soybean. He will discuss how he has incorporated cover crops into his crop rotation, saving money on nitrogen and reducing soil erosion. Participants will view crimping research using UNL experimental lines of early-maturing triticale as mulch for weed suppression and evaluate the cash crop of drilled soybean. Stanislav is a cooperator in a Ceres Trust grant that provided partial funding to develop a twin-roller, adjustable-angle roller crimper, which will be on display at the field day.
At 3:30 pm participants will tour Randy Fendrich's farm three miles southeast of the Stanislav farm. Fendrich has demonstration plots of organic corn and soybean varieties that he is evaluating for yield. He will discuss his cultural practices and crop rotation, his use of a 12-row flamer/cultivator, and his program to build soil health. He also will discuss his succession plan for bringing his daughter into the farming operation.
At 5 pm Randy Anderson, research agronomist in the USDA North Central Agricultural Research Laboratory, will discuss
- canopy architecture of cover crops for planning mixtures,
- berseem clover establishment, and
- improved crop tolerance to weed interference.
At 6 p.m. a free meal will be served. Call Dee at 402-584-3837 by Aug. 12 to reserve your meal.
The UNL event is sponsored by OCIA, the Organic Crop Improvement Association. For more information about the farm tour contact Little at 402-805-7482 or email rlittle2@unl.edu.
PLANNING NEXT YEAR'S GRAZING TODAY
Bruce Anderson, NE Extension Forage Specialist
Do you have extra grass this year? If so, there are ways you can improve next year's grazing by managing this year's grass.
Extra grass is not normal. If you are lucky enough to have more grass than needed this year, don’t forget that next year could be hotter and drier than this year – producing less grass.
But you can boost carrying capacity and gains on next year's pasture by strategically managing your extra grass this year.
Start by identifying pasture improvements that could help future grazing. Control weeds, accumulate enough growth on warm-season grass pastures to conduct an effective prescribed burn next spring, or select pastures where stressing the existing stand will help you establish legumes next spring. All these practices can temporarily reduce pasture growth, but they can provide long-term benefits. Thus, it is better to do them when you have extra grass rather than when grass is short.
Another way to help next year's growth is to avoid overgrazing this fall unless you are doing it intentionally to prepare for interseeding next spring. Heavy fall grazing weakens plants as they go into winter and causes them to grow less vigorously after spring green-up. If you do graze heavy this fall, though, do it on pastures that will be used last next spring. This will give them extra time to recover.
A particularly valuable way to manage extra grass is to begin to stockpile some growth now for either grazing this winter or to start grazing extra early next spring. This could save on winter hay needs or give you an area to get animals away from mud next spring. Plus, it's usually good for your grass, too.
Take advantage of extra grass to begin long-term pasture improvements. It happens so rarely that next year might be too late.
RURAL POLL SHOWS NEBRASKANS’ OPTIMISM
Rural Nebraskans continue to be optimistic about their current situation and future, according to the 2016 Nebraska Rural Poll.
Fifty-two percent of respondents said they are better off this year than five years ago, holding steady from 53 percent last year, the highest proportion in all 21 years of the study, also occurring in 2008. Only 16 percent said they were worse off.
The University of Nebraska-Lincoln Department of Agricultural Economics conducts the poll in cooperation with the Rural Futures Institute at the University of Nebraska, with funding from Nebraska Extension and the Agricultural Research Division in the Institute of Agriculture and Natural Resources.
This optimism was also reflected in their outlook on the future, with 46 percent believing they will be better off in 10 years. The results were similar to last year's 48 percent. The percentage of those who thought they will be worse off increased slightly, from 17 percent in 2015 to 20 percent this year.
Respondents' assessment of their current situation reflects a general pattern of growing optimism over the 21 years of poll results, with bigger declines occurring in 2003, 2006, 2009 and 2013. When looking to the future, there has also been a general trend of increasing optimism over the past 21 years, with two bigger declines in 2003 and 2013. This poll was conducted in the spring.
“There can be quite bit of annual variation in these confidence measures resulting from timing with regard to large events and statistical error. However, the trend over the poll’s entire 21 years has been for that confidence to slowly increase,” said Randy Cantrell, rural sociologist with the Nebraska Rural Futures Institute. “If one considers the array of the things that affect an individual’s day-to-day life, many if not most have in fact improved. If nothing else, technology has made a lot of things easier and created a new set of possibilities for individuals to learn, to participate with others in pursuing their interests, to engage in commerce, and in general to see more opportunities for themselves and their surroundings.”
Brad Lubben, assistant professor of agricultural economics, said he was surprised by the continued optimism from those employed in agriculture.
“I would have expected the ag sector to be less optimistic. They may still be better than five years ago from accumulated wealth, but the outlook for the next 10 years is surprisingly strong,” Lubben said. “Maybe they are looking past the short-run difficulties at the long-run opportunities for growth.”
In addition, most rural Nebraskans disagreed that people are powerless to control their own lives (55 percent). The proportion remained the same as last year.
Differences in satisfaction with respondents’ financial security during retirement were found by community size. Over one-half of persons living in or near the smallest communities (55 percent) report being dissatisfied with their financial security during retirement. In comparison, only 39 percent of persons living in or near communities with populations ranging from 5,000 to 9,999 are dissatisfied with this item.
Other results:
* Rural Nebraskans continued to be most satisfied with their marriage, family, friends, the outdoors, their safety and their general quality of life. They continue to be less satisfied with job opportunities, current income level, their ability to build assets and wealth and financial security during retirement.
* Certain groups remained pessimistic about their current and future situation. Those with lower household incomes, older respondents and those with lower educational levels were most likely to be pessimistic about the present and the future.
* Rural Nebraskans with lower education levels were more likely than persons with more education to believe that people are powerless to control their own lives. Thirty-six percent of respondents with a high school diploma or less education agreed that people are powerless to control their own lives. However, only 19 percent of those with at least a four-year college degree shared this opinion.
The Rural Poll is the largest annual poll of rural Nebraskans’ perceptions on quality of life and policy issues. The poll has a collection of data about rural trends and perceptions that is unmatched in the country, said Becky Vogt, survey research manager who has worked on the Rural Poll since its second year. This year’s response rate was 29 percent and the margin of error was plus or minus 2 percent.
The 21st annual poll was sent to 6,115 households in 86 Nebraska counties in April. Results are based on 1,746 responses. Complete results are available at http://ruralpoll.unl.edu.
Although the Grand Island area -- Hall, Hamilton, Howard and Merrick counties -- was designated a metropolitan area by the U.S. Census Bureau in 2013, the Rural Poll continues to include those counties in its sample. Also, Dixon and Dakota counties were added to the poll in 2014.
Northey and India Ag Minister to Sign Memorandum of Cooperation
Iowa Secretary of Agriculture Bill Northey and Om Prakash Dhankar, Cabinet Minister of Agriculture, Animal Husbandry & Dairying, Fisheries, Irrigation and Development for the state of Haryana, India, have signed a Memorandum of Cooperation during a meeting in the Iowa Capitol yesterday.
Dhankar and a delegation from Haryana are visiting Iowa to learn about our state's agriculture production. In addition to the event at the capitol, the delegation will also visit Iowa State University, tour an Iowa farm and meet with representatives of Iowa agriculture groups.
Northey visited India twice in 2013, including participating in a trade mission lead by Gov. Terry Branstad in September of that year. This visit by a delegation from Haryana is a step by the two state's Departments of Agriculture to work more closely together to promote collaborations and partnerships in agriculture.
Haryana is located in the northwestern part of India and approximately 84 percent of the state's land is under cultivation. As a result, agriculture is the principal occupation with about 65 percent of the population engaged in agriculture and its allied sectors.
The Green Revolution of 1960's that made India self-sufficient in food grain production was first established in Haryana and the neighboring Punjab and West Uttar Pradesh, together considered as the 'Grain Basket' of India. Haryana is now a leading contributor to the country's production of food grains and milk and have the major share in exports of long grain Basmati rice from India.
Scoular Names Paul Maass Chief Executive Officer
The Scoular Company announced today that its Board of Directors has appointed Paul Maass as Chief Executive Officer, effective August 22, 2016. Maass will office in the company's Omaha, Nebraska headquarters and be responsible for worldwide strategic leadership.
Maass most recently served as President of ConAgra Foods' Commercial Foods and Private Brands segments as well as Chairman of the Ardent Mills joint venture. In that role, he led businesses with total annual revenue of $13 billion and more than 15,000 employees and 90 manufacturing facilities in seven countries.
He began his 27-year career with ConAgra as a commodity merchandiser after graduating from Iowa State University with a degree in agricultural business. Throughout his career, he served in various leadership positions, including Director, ConAgra Trade Group (now Gavilon, LLC); President, ConAgra Mills; President, Lamb Weston; and President, Commercial Foods division.
"Following a six-month search, we are pleased to have found a seasoned, accomplished agribusiness executive like Paul," said David Faith, Chairman of the Board for The Scoular Company. "His diverse background and solid experience are an excellent fit for Scoular, from commodity merchandising and logistics to commercial food ingredient processing, sales and P&L management. Further, his proven experience in successful corporate strategy will be a great asset to Scoular as we continue to pursue growth opportunities, domestically and internationally."
"I am thrilled with the opportunity to join the team and lead Scoular. I've known Scoular my entire career and have always admired the great people and the integrity of the company," said Maass. "I am excited about the future as we work together to leverage our unique potential and create value."
U.S. Pork, Beef Exports Solid in June; First-half Volumes Ahead of Last Year
U.S. red meat exports ended the first half of 2016 on a positive note, as June export values for both pork and beef were the highest of the year. June also marked the second consecutive month of solid year-over-year volume growth, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Pork exports reached 187,939 metric tons (mt) in June, up 8 percent from a year ago, while export value increased 11 percent to $505.4 million. For the first half of the year, pork export volume was up 2 percent to 1.1 million mt, but value was down 4 percent to $2.77 billion.
Exports accounted for 26 percent of total pork production in June and 22 percent for muscle cuts only – each up one percentage point from a year ago. For January through June, these ratios were 25 percent and 21 percent, respectively, up slightly from last year. Export value per head slaughtered was $52.83 in June – up 10 percent from a year ago. First-half per-head value was $48.34, down 5 percent.
June beef export volume increased 2 percent from a year ago to 98,920 mt, while export value was $545.4 million, down 5 percent. First-half export volume was up 3 percent to 541,547 mt, while value fell 10 percent to $2.91 billion.
Exports accounted for 13 percent of total beef production in June and 10 percent for muscle cuts only – each down about 1 percentage point from a year ago. For January through June, these ratios were also 13 percent and 10 percent, respectively, steady with last year. Export value per head of fed slaughter was $250 in June and $249.67 for the first half – each down 14 percent from a year ago.
Pork exports strong to China/Hong Kong, Canada, Central America
June pork exports to China/Hong Kong remained well ahead of last year’s pace, increasing 84 percent in volume (50,374 mt) and 73 percent in value ($98.8 million). But June volume was the lowest since February, reflecting some cooling of the market. Exports to China/Hong Kong finished the first half 80 percent higher than a year ago in volume (284,900 mt) and 63 percent higher in value ($540.5 million).
“New opportunities for U.S. pork were developed in China/Hong Kong over the past year, and the inroads we made with importers and other key buyers in the region will pay long-term dividends,” said USMEF President and CEO Philip Seng. “But it is important to recognize the shift in market conditions in China, which means growth in other key markets is essential to achieving a successful second half in 2016.”
Leading pork value market Japan showed renewed momentum in June, with exports up 1 percent from a year ago in volume (32,879 mt) and 6 percent higher in value ($138.1 million). First-half exports to Japan were still down 13 percent in volume (192,862 mt) and 10 percent in value ($749.6 million), as record volumes of chilled U.S. pork entering Japan (109,665 mt, up 19 percent, valued at $485 million, up 14 percent) were offset by lower imports of frozen product.
After a strong May performance, pork exports to Mexico took a step back in June, falling 13 percent from a year ago in volume (54,335 mt) and 5 percent in value ($105.4 million). First-half export volume to Mexico was 324,745 mt, down 8 percent from a year ago, while value fell 9 percent to $566 million. A spike in ham prices, compounded by the weak peso, significantly impacted June export results. But with ham prices moderating by mid-July, USMEF anticipates a rebound in demand.
June results were better north of the border, as pork exports to Canada totaled 16,731 mt – up 11 percent from a year ago and the largest of 2016 – while export value increased 13 percent to $69.5 million. This pushed first-half exports to Canada slightly ahead of last year’s pace at 96,582 mt, while value was steady at $381.6 million.
Led by mainstay markets Honduras and Guatemala, U.S. pork posted a very strong first half in Central America as exports climbed 16 percent from a year ago in volume (31,274 mt) and 7 percent in value ($72.5 million). In addition to Honduras and Guatemala, exports also increased year-over-year to Nicaragua, Costa Rica, El Salvador and Belize.
June was also a very strong month for U.S. pork in the Philippines, a highly competitive market that purchases large volumes of raw material for further processing. June exports to the Philippines increased 54 percent from a year ago in volume (3,454 mt) and more than doubled in value ($10.3 million, up 126 percent). First-half exports totaled 15,995 mt (up 6 percent) valued at $37 million (up 23 percent).
U.S. beef reclaims market share in Japan; June ASEAN volume doubles
June beef exports to Japan were the largest in nearly two years at 25,836 mt, up 29 percent from a year ago. First-half exports climbed 12 percent in volume (122,316 mt) and 5 percent in value ($707.2 million). Showing strong demand for high-quality cuts, Japan’s first-half imports of chilled U.S. beef surged 51 percent from a year ago to 50,795 mt. These shipments were valued at $369 million, up 32 percent. Japan’s first-half import data also show a strong rebound in market share for U.S. beef at 38.5 percent – up from 33 percent in 2015 and about one percentage point higher than in 2014. Australia’s market share, which was nearly 57 percent in the first half of last year, fell to 52 percent.
“U.S. beef faces a significant tariff rate disadvantage in Japan, and this gap will grow larger unless and until the Trans-Pacific Partnership is ratified,” Seng said. “But rather than dwell on the challenges we face in this market, the U.S. industry needs to capitalize on its opportunities. And USMEF is doing so by educating retail and foodservice buyers about the wide range of U.S. beef cuts that appeal to their customers. We’re pushing well beyond the forequarter cuts traditionally marketed in Japan, and consumers are responding in a very positive way.”
Beef exports to Mexico remained strong in June, increasing 14 percent from a year ago to 20,021 mt, though value was down 13 percent to $76.2 million. First-half exports to Mexico were up 3 percent in volume to 111,834 mt, valued at $475.4 million (down 11 percent).
U.S. beef continues to gain market share in South Korea, with June export volume up 2 percent from a year ago at 12,880 mt. For January through June, exports to Korea were up 21 percent from a year ago in volume (73,942 mt), while value was 3 percent higher at $436.4 million. Chilled beef to Korea totaled 10,288 mt (up 45 percent) valued at $89 million (up 33 percent) as U.S. beef rapidly expands its retail presence.
Fueled by strong growth in the Philippines, Indonesia and Vietnam, June exports to the ASEAN region reached 2,582 mt, up 113 percent from a year ago, while export value climbed 57 percent to $12.6 million. First-half exports totaled 11,091 mt (up 7 percent) valued at $61.6 million (down 14 percent).
Lamb exports slump due to low variety meat volume
June lamb exports were the lowest of 2016 at 457 mt, down 58 percent from a year ago, though this was due in large part to a sharp decline in variety meat exports to Mexico. June export value fell 39 percent to $1.1 million. For the first half of 2016, lamb exports were down 9 percent from a year ago in volume (4,330 mt) and fell 13 percent in value ($8.7 million). Exports to Bermuda continued to perform well in June.
Advocates Celebrate 11th Anniversary of America's Most Successful Biofuels Program
Eleven years ago this Monday, August 8, the Renewable Fuel Standard (RFS) was signed into law, ushering in a new era of rising energy security, cleaner air, and more affordable options at the pump. After more than a decade, the program continues to drive U.S. job creation and startling new innovations in renewable energy, a fact celebrated today by the nation's leading biofuel advocates.
"Our government challenged the biofuels industry to produce the world's cleanest, most affordable and sustainable fuel for cars and trucks. We delivered - and America continues to benefit," said Adam Monroe, President, Americas, Novozymes North America Inc. "The RFS is a proven winner: it grows communities with hundreds of thousands of good-paying jobs; saves American drivers money and keeps billions of their dollars in the US versus going to the Middle East; and fights climate change by preventing millions of tons of carbon emissions from getting into our air. Let's not roll back a winner; let's let it work to its full potential. We urge the administration to maximize renewable fuel production."
"This is a good opportunity to remind the Environmental Protection Agency (EPA) that the RFS is designed to get stronger over time, delivering a greater share of renewable energy into our fuel mix," said Emily Skor, CEO of Growth Energy. "The agency has proposed cutting RFS targets for 2017, which would needlessly undermine eleven years of progress toward a cleaner environment and a healthier, more secure America. Ethanol producers, retailers and the current auto fleet are 100 percent capable of providing consumers with a true choice at the pump, and now is certainly not the time to roll back the clock. EPA must get the program back on track and deliver on the promise of new, more affordable options for consumers."
"Passage of the 2005 Energy Policy Act could not have been possible were it not for the cooperation between the ethanol, agriculture and oil sectors," said Bob Dinneen, president and CEO of the Renewable Fuels Association. "The oil industry needed an off ramp from the use of MTBE, which was polluting groundwater across the country, and the ethanol industry needed a growth path if farmers were ever to realize the promise of value-added markets. Every stakeholder cheered the passage of this groundbreaking legislation, and it was an immediate success. MTBE disappeared as a gasoline additive, investments in U.S. biofuel production soared, farmers saw increased demand for their commodities allowing Congress to dramatically cut farm program costs, consumers saw pump prices fall as ethanol displaced more expensive oil, and carbon emissions from the transportation sector fell precipitously. All of those benefits continue to this day."
"The RFS guarantees America's leadership in the global transition to ethanol, which has cut world-wide carbon emissions 589 million metric tons over the past decade, the equivalent of taking more than 124 million cars off of the road," said Chip Bowling, president of the National Corn Growers Association. "And thanks to innovation in U.S. agriculture, we are growing more crops on less land than we cultivated when the RFS was first enacted."
"Simply put, the RFS is delivering on its promise," said Brooke Coleman, executive director of the Advanced Biofuels Business Council. "Almost every gallon of gasoline in the country now contains renewable fuel. Consumers are gaining access to new biofuel blends that reduce pump prices, increase octane, deliver better performance, and replace cancer-causing gasoline additives like benzene. With cellulosic biofuels -- the lowest carbon motor fuel in the world -- now coming online, the RFS is driving innovation like we have never seen before in the transportation fuel sector."
On August 8, 2005, the bipartisan RFS was signed into law by President George W. Bush as part of the Energy Policy Act of 2005 (EPAct). The legislation was passed by the House by a vote of 275 to 156 and the Senate by a vote of 74 to 26. Expanded in 2007, it requires refiners to blend increasing amounts of biofuels into new options for consumers at the pump. It has since sparked billions of dollars in U.S. investments and driven America's emergence as a world leader in renewable technology.
Growth Energy Applauds California Delegation Letter to EPA
Today, representatives from the California delegation sent a letter to Environmental Protection Agency (EPA) Administrator Gina McCarthy, urging the EPA to finalize blending targets under the Renewable Fuel Standard (RFS) to the statutory limits as originally called for by Congress. The letter highlights the importance of this program, and points out the EPA’s flawed methodology that would absolve the obligated party’s requirements to continue to provide higher biofuel blends. Emily Skor, Growth Energy CEO, issued the following statement:
“The letter explicitly urges EPA to put the RFS program back on track by finalizing blending targets that are in line with Congress’ original intent. The RFS program has been a resounding success. EPA’s methodology, as it currently stands will let the obligated parties off the hook, decreasing the commercial availability of higher blends, such as E15. By returning to the statutory levels, the administration would will send a signal to the renewable fuels industry that they are committed to achieving the goals of carbon reduction, a free and fair fuel marketplace where consumers have a choice, and reaffirm their commitment to reduce our dangerous dependence on foreign oil.
“We commend these members of Congress for supporting renewable fuels by acknowledging the industry’s tremendous innovation, investment and contributions. The biofuels industry and the RFS are advancing consumer choice, job creation and environmental improvement by reducing greenhouse gas emissions and removing other toxic alternatives, which have been proven to cause cancer, smog and groundwater contamination. Getting the RFS back on track is critical if we wish to continue to build on the progress already achieved.
“The RFS is our nation’s most successful energy policy, and the biofuels industry is an American success story. We thank this group of representatives for their commitment to fostering growth in the American biofuels industry, and stand with them in support.”
Which is Bigger: Brazil-US Beef Trade Announcement or US Jobs Report?
Glynn T. Tonsor, Professor
Department of Agricultural Economics, Kansas State University
This past week included several reports, announcements, and market updates of central interest to US cattle producers. The CME announcement of changes to their Live Cattle contracts warrants a separate discussion and will not be covered here. Similarly, ongoing declines in expected upcoming corn prices are supportive to cattle markets but will not be outlined in this article. Rather this week's article is a synthesis comparison of changes in US-Brazil beef trade and employment in the US.
Last Monday an updated agreement to bilateral beef trade between Brazil and the US was announced. Going forward the trade deal terms may well change, exchange rates are bound to move over time, underlying supply and demand fundamentals are certain to adjust, and a wealth of additional research and discussion is sure to focus on updating and expanding understanding of animal health risks involved. What is easier to speak to is the shorter-term likely economic impacts.
While the US has been accepting beef from Brazil it has largely been confined to cooked or processed product, rather than fresh or frozen, due to past concerns regarding FMD (Foot and Mouth Disease) risks. The updated agreement will extend Brazil's access by allowing fresh or frozen beef to be imported as part of the Other countries tariff rate quota (TRQ) currently available. What is most important from an aggregate economic impact perspective is that this Other countries TRQ currently amounts to about 15% of what is available to Australia. Coupling this with the observation of FSIS (Food Safety and Inspection Service) having yet to approve any Brazilian plants suggests the net economic impact under the current TRQ and broader economic situation will likely be rather minimal.
The flip side of the US-Brazil beef trade announcement is Brazil allowing imports of US beef for the first time since the BSE event of 2003. While any enhancement in ability to export beef is a positive for the US industry, on balance this likely will also have a small impact in the short term.
A report released later last week is arguably more important to the near term cattle market situation. The US jobs report indicates that 255,000 jobs were added in July which is a full 75,000 jobs above pre-report expectations. Coupled with an increase in base wages this is certainly a positive update for meat demand. Increases in employment and wages is beneficial to meat demand given protein is one of the more expensive food items. Going further, given the heavy reliance on domestic consumption this report is particularly good for the beef industry and increases the viability of ongoing production expansion while at least partially mitigating downward pressure on retail beef (and hence cattle) prices.
I'll end by emphasizing it is important to appreciate the relative impact of US employment changes and the Brazil-US beef trade announcement. The increase in employment and wages is certainlysupportive of beef and cattle prices while the Brazil-US beef trade announcement seems likely to have a much lower net economic impact in the near term.
CWT Assists with 1.2 Million Pounds of Cheese and Whole Milk Powder Export Sales
Cooperatives Working Together (CWT) has accepted four requests for export assistance from Dairy Farmers of America, Northwest Dairy Association (Darigold) and Michigan Milk Producers Association, who have contracts to sell 608,476 pounds (276 metric tons) of Cheddar cheese and 573,202 pounds (260 metric tons) of whole milk powder to customers in Asia and South America. The product has been contracted for delivery in the period from August through October 2016.
So far this year, CWT has assisted member cooperatives who have contracts to sell 30.699 million pounds of American-type cheeses, 8.415 million pounds of butter (82% milkfat) and 21.301 million pounds of whole milk powder to 21 countries on five continents. The sales are the equivalent of 628.192 million pounds of milk on a milkfat basis. Totals have been adjusted due to cancellations.
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.
Brazil to Plant More Soybeans, Corn in 2016-17
High prices will prompt summer corn to rob soybean area in southern Brazil during the upcoming 2016-17 season, according to Agroconsult, a local farm consultancy.
But expansion elsewhere will mean soybean area also grows, said Andre Pessoa, an Agroconsult director, during an agribusiness event in Sao Paulo Monday.
First-crop summer corn area will grow around 6% to 8.4 million acres, going against the trend over the last decade for area to decline.
But the preference for corn won't be enough to stop the juggernaut that is Brazil's soybean crop.
Soybean planted area will grow by approximately 1.5% to 83.2 million acres, Pessoa told reporters.
Even with soybean futures slipping from recent highs and a strengthening Brazilian real, the prospects for planting beans remains positive and, with around 25% of the crop sold in Mato Grosso, farmers are already committed to increasing area.
Saturday, August 6, 2016
Friday August 5 Ag News
NEBRASKA 2016 FARM REAL ESTATE VALUE AND CASH RENT
Nebraska’s farm real estate value, a measurement of the value of all land and buildings on farms, decreased from 2015, according to USDA’s National Agricultural Statistics Service. Farm real estate value for 2016 averaged $2,950 per acre. This is down $100 per acre or 3 percent lower than last year.
Cropland value decreased 4 percent from last year to $4,850 per acre. Dryland cropland value averaged $3,800 per acre, down $170 from last year. Irrigated cropland value averaged $6,560 per acre, down $310 from a year ago. Pastureland, at $910 per acre, increased $40 from a year ago.
Cash rents paid to landlords in 2016 for cropland decreased from last year. Irrigated cropland rent averaged $243 per acre, a decrease of $11 from last year. Dryland cropland rent averaged $150 per acre, down $10 from a year earlier. Pasture rented for cash, averaged $24 per acre, down $4.50 from the previous year.
County level averages of 2016 cash rents paid to landlords will be released on September 9, 2016 and will be available through NASS Quick Stats located at http://quickstats.nass.usda.gov/.
IOWA 2016 LAND VALUE AND CASH RENT
Iowa’s farm real estate value, a measurement of the value of all land and buildings on farms, averaged $7,850 per acre in 2016, according to the USDA, National Agricultural Statistics Service – Land Values 2016 Summary. This is down $150 per acre or 2 percent below last year’s level. Cropland value decreased 2 percent from last year to $8,000 per acre. Pasture, at $3,400 per acre, is unchanged from a year ago.
Cropland cash rent paid to Iowa landlords in 2016 averaged $235.00 per acre according to the USDA, National Agricultural Statistics Service. Non-irrigated cropland rent averaged $235.00 per acre, down $15.00 from a year earlier. Irrigated cropland rent averaged $240.00 per acre. Pasture rented for cash averaged $52.00 per acre, up $2.00 from the previous year. County level cash rent averages will be released on September 9, 2016
Agricultural Land Values Highlights
The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $3,010 per acre for 2016, down $10 per acre (0.3 percent) from 2015 values. Regional changes in the average value of farm real estate ranged from a 3.3 percent increase in the Pacific region to 4.3 percent decrease in the Northern Plains region. The highest farm real estate values were in the Corn Belt region at $6,290 per acre. The Mountain region had the lowest farm real estate value at $1,110 per acre.
The United States cropland value decreased by $40 per acre (1.0 percent) to $4,090 per acre from the previous year. In the Southeast region, the average cropland value increased 4.0 percent from the previous year. However, in the Northern Plains region, cropland values decreased by 5.4 percent.
The United States pasture value remained constant at $1,330 per acre. The Delta region had the highest increase of 3.9 percent from 2015. The Northeast region had the highest decrease in pasture land at 2.6 percent.
GROWING SEGMENT OF NEBRASKA AGRICULTURE HIGHLIGHTED DURING NATIONAL FARMERS MARKET WEEK
Farmers markets in Nebraska are a great opportunity for vegetable and fruit growers in the state to sell to consumers seeking locally produced products.
“We continue to see considerable growth in the number of farmers markets in the state, and don’t expect that trend to end anytime as consumer demand for ‘farm to table’ produce remains strong,” Nebraska Department of Agriculture (NDA) Director Greg Ibach said. “We have had a good mix of vendors at these markets. They range from fulltime producers, to hobbyists, to farmers who use the opportunity to diversify their current operation.”
National Farmers Market week is being celebrated across the country Aug. 7-14.
The number of farmers markets in the state, registered with NDA, has seen a dramatic increase of 259 percent the past 16 years. In 2000, the number of registered markets was 39, increasing to 101 this year.
“Because of the rapidly growing number of farmers markets across the state, we launched an online database last year that can be accessed by both vendors and consumers,” NDA Ag Promotions Coordinator Casey Foster said. “The webpage provides details on locations, days and times of farmers markets across the state. Produce farmers also are given the opportunity to list locations where they sell from, as well as the types of produce they sell.”
Foster said there are over 600 producers and 100 farmers markets listed on the site which can be accessed through the NDA website at www.nda.nebraska.gov. There are farmers markets located in 50 counties statewide. Market managers and vendors can be added to the database by contacting Foster at 800-422-6692.
In addition to coordinating farmer’s market programs, Foster also manages several federally-funded programs. The Seniors Farmers Market Nutrition Program and the Women, Infants and Children (WIC) Farmers Market Nutrition Program both are designed to increase sales for produce growers by encouraging the consumption of fresh fruits and vegetables among qualified senior citizens and individuals in the WIC Supplemental Nutrition Assistance Program.
Foster is working with program officials in Omaha to host cooking demonstrations for WIC Farmers Market Nutrition Program participants during National Farmers Market Week. The cooking demos are being held Aug. 11, at 1p.m., 2 p.m. and 3 p.m., at the OneWorld Community Health Center, 4920 South 30th Street in Omaha.
“The growth of farmers markets in the state has been a win-win for Nebraska,” said Ibach. “It provides more opportunities to grow agriculture and more choices for consumers.”
INOCULATING CORN AND SORGHUM SILAGE
Bruce Anderson, NE Extension Forage Specialist
To make good silage, a little help from inoculants can improve fermentation. When and how can you get the best use from them?
Silage inoculants can be hard to figure out. There is no clear cut, consistent way to predict when inoculants will be most useful or cost effective. Silage fermentation is just too complex.
Inoculants primarily reduce storage losses. The most effective ones contain homolactic acid bacteria like Lactobacillus plantarum. Fermentation starts and ends quicker with inoculated silage so more silage remains for feeding. Typically, you save about 5 percent. Some inoculants also improve aerobic stability by using the heterolactic acid bacteria Lactobacillus buchneri. They reduce spoilage losses when silage is re-exposed to air, thus extending bunk life. These bacteria are especially useful at reducing spoilage on the face of bunker silos.
Inoculants consistently improve wet silage, especially sorghum silage. If you start chopping early enough to prevent silage from being too dry at the end, inoculants should help.
In the past, inoculants rarely improved properly made corn silage – silage at the right moisture, chopped fine, packed well, and sealed tight. Nor did they improve dry silage. But recently developed inoculants, with more effective strains of fermentation bacteria, are producing slightly better quality silage even from these feeds.
If you use an inoculant, make sure that it contains live bacteria. Also check to see that the inoculant provides at least 100,000 colony forming units per gram of wet forage when applied at the recommended rate at the chopper. You need plenty of live bacteria for the inoculant to do you any good.
But used in the right conditions, inoculants can be worth it.
PLATTE VALLEY CATTLEMEN MOVE UP ANNUAL OUTLOOK MEETING
This year, the board of directors for Platte Valley Cattlemen decided to move the outlook meeting up to see if they can capture a larger audience. On Monday, August 15th at Jarad and Kathy Doernemann’s barn venue in Clarkson, the annual Outlook meeting will get started with a social hour at 6:00 p.m. and the meal to begin at 7:00 p.m.
Directions to the Barn:
Off of Highway 91, turn north and take the main entrance into Clarkson. The street sign should read Bryant Street or Road 8. Go north through town past the park until you get to Road X. Then go east a quarter mile and turn north on 570th Ave. The barn will be on the east side of the road.
PVC President Marcus Urban says the featured speakers for the night will be Jim Jansen, Livestock Extension Educator, and Dr. Jay Parsons, UNL Ag Extension Economist. He also thanks Pinnacle Bank for sponsoring the social hour.
See you on August 15th!
NE Corn Board to Meet
The Nebraska Corn Board will hold its next meeting on Friday, August 19, 2016 at Embassy Suites located at 1040 P Street in Lincoln, Nebraska.
The meeting is open to the public, providing the opportunity for public comment. The Board will conduct regular board business and hold election of officers. The meeting is open to the public. A copy of the agenda is available by writing the Nebraska Corn Board, PO Box 95107, Lincoln, NE 68509, sending an email to susan.zabel@nebraska.gov or calling 402/471-2676.
Current National Drought Summary
droughtmonitor.unl.edu
Shower and thunderstorm activity was scattered across much of the eastern two-thirds of the country, but in most places, moderate to heavy precipitation was not widespread enough to bring significant drought relief. Some exceptions included southwest New England and the lower Northeast, the central Appalachians and Piedmont, the lower Mississippi Valley, parts of the central Great Plains, the Black Hills and adjacent areas, southeast Arizona, and Hawaii. Heavy rains in the latter area were primarily associated with Tropical Storm Darby.
The Middle Mississippi Valley and the Plains States
Bands of heavy rain were not widespread, but did drop 2 to 7 inches of precipitation to areas where they set up, specifically the central tier of Nebraska, part of central and northern Missouri, part of central and southern Iowa, and upper southern Texas. Beneficial moderate to locally heavy precipitation dampened much of the Black Hills and adjacent Wyoming, the northeastern quarter of Oklahoma, and scattered small areas in both Kansas and Texas. This precipitation brought improvement to the areas that received the heaviest amounts, but also to the Black Hills and adjacent Wyoming, where 30-day totals were sufficient to bring improvement to some of the extant drought areas. In addition, dryness and drought changed in relatively small areas through the rest of the region, improving where isolated heavy rain was reported, and deteriorating in places where significant rain has not been observed for two or more weeks, at least.
Looking Ahead
During the next 5 days (August 4 – 8), heavy precipitation (1.5 to locally approaching 6 inches) is expected along the central Gulf Coast, the central and northern Florida Peninsula, and the central and southern Carolinas. Farther west, similar amounts of rain are anticipated in a swath from eastern Arizona northeastward through Iowa and northern Missouri. Moderate amounts are forecast in the eastern Great Basin and northern Arizona, through part of the north-central Plains, and in the interior Southeast. Only a few tenths of an inch at best are expected elsewhere, with little or none falling on Texas and California.
During August 9 – 13, the odds favor drier than normal weather in eastern Virginia, the East Coast Megalopolis, and portions of New England. Most of the Four Corners states and the Great Basin also have enhanced chances for subnormal precipitation. In contrast, wetter than normal weather is favored from the northern Rockies eastward through the Great Lakes Region, in the lower Ohio and middle Mississippi Valleys, and across the areas of current dryness and drought in the interior Southeast.
Biotech Working Group Discusses Consumer Engagement, More in Indianapolis
Members of the American Soybean Association’s (ASA) Biotech Working Group discussed how farmers can better engage with consumers and also met with Dow Agro Sciences CEO Tim Hassinger and several members of the Dow team.
Members of the American Soybean Association’s (ASA) Biotech Working Group met in Indianapolis this week to discuss issues facing the industry.
Participants included industry representatives and grower leaders from ASA, United Soybean Board (USB) and the U.S. Soybean Export Council (USSEC), including Vice-Chair Jim Miller from Belden, NE.
Featured speaker, Dan Nowicki of the JM Smucker Company, engaged the group in a discussion on post-Vermont reformulation in the U.S. food industry. Nowicki stressed the importance of consumer engagement from all sectors involved in food production, stating that farmer involvement is critical. Participants also heard updates on the U.S. Biotech Crops Alliance, International Soy Grower Alliance and the status of technology in both the European Union (EU) and China.
While in Indiana, grower members also met with Dow Agro Sciences CEO Tim Hassinger and several members of the Dow team.
The Biotech Working Group is a confidential forum for technology providers and soybean growers to discuss the issues facing the biotechnology industry. The forum also provides industry members the opportunity for one-on-one consultations with grower leaders from ASA, USB and USSEC to discuss issues and technologies related to their organization and develop action plans specific to those technologies.
Recent changes to the CME Live Cattle Futures Contracts Alarm Iowa Cattlemen
The Chicago Mercantile Exchange (CME) announced recently that a $1.50 per hundredweight discount would be applied to cattle delivered to the Worthing, SD delivery point on the October 2017 cattle futures contract. Even more concerning, however, are CME’s threats to move to a cash settled live cattle futures contract if price discovery and cash negotiated trade do not increase, and increase quickly, across the major cattle feeding regions.
The Iowa Cattlemen’s Association has been vocal in their opposition to the Worthing discount and successfully advocated for changes to NCBA’s policy reflecting this stance.
“It’s upsetting that CME has gone against industry wishes and applied the discount. The discount takes place during a time when cattle in the north are typically ready to go to the packer. That’s an issue for us. Frankly, this decision feels like a mandate to our folks on how and when they can and should feed cattle for market. It’s a multi-faceted marketing disadvantage that may decrease cash negotiated trade in the upper midwest,” says Matt Deppe, ICA CEO.
In a seemingly contradictory move, CME expressed concern about lack of negotiated trade across the country and subtly threatened to move to a cash settled contract if price discovery and transparency does not increase. While Iowa and surrounding states average 60% cash negotiated trade, other major cattle feeding states, including Texas and Oklahoma, average less than 5%.
“Our problem, from a price discovery standpoint, is in the south. We have not yet, as an industry, found a way to encourage states like Texas and Oklahoma to put more cattle on the cash market,” explains Deppe.
The Iowa Cattlemen’s Association brought strong policy to the National Cattlemen’s Beef Association’s Summer Business Meeting, encouraging 50% cash negotiated trade across all major cattle feeding regions. NCBA adopted policy encouraging more cash negotiated trade.
However, the move does not seem to be enough for the CME. The December 2017 cattle futures contract is scheduled to be listed in the next 30-60 days, which leaves precious little time for the major changes in price discovery that are needed to avoid a cash settled futures contract.
ICA members do not believe a cash settled contract will solve any of the price discovery problems cattlemen are currently facing. “If we don’t have enough cash negotiated cattle, there’s no way to have an accurate cash settled contract. Price discovery is an issue that will only be made worse through a cash settled contract.
Further compounding cattlemen’s frustrations with the CME Live Cattle Futures Contract is that data on high frequency or algorithmic traders has remained inaccessible. ICA would like a third party to audit the data to determine how these traders have influenced the cattle market volatility that has taken place over the past several months.
Recent efforts by Iowa’s cattlemen to improve the cattle futures contract and delivery point system
Cattle market volatility has been a concern for Iowa cattle producers, especially since the historic drop in fed cattle prices that occurred in October of 2015. Since that time, volunteer leaders from the Iowa Cattlemen’s Association have been actively working toward solutions to the current issues in cattle marketing.
Many of those solutions became part of the National Cattlemen’s Beef Association (NCBA) official policy during the annual Summer Business Meeting. The NCBA meeting took place in Denver July 13-16. Several Iowa Cattlemen’s Association leaders attended the meeting including Brad Kooima of Rock Valley, Mike Cline of Elgin, David Trowbridge of Tabor, Justine Rowe of Dallas Center, Ben Novak of Elberon and Ed Greiman of Garner.
One of the priorities for Iowa cattle producers was strengthening support for the Worthing, South Dakota delivery point. Amendments to NCBA’s policy now include broader support for the delivery point process, including opposition to “any changes by the CME group that would adversely affect cattle feeders’ ability to deliver on Live Cattle contracts including, but not limited to, the discounting of deliveries to any delivery point.” The same policy, passed by the Cattle Marketing and International Trade (CMIT) committee, includes the resolution to “encourage and support the existence of numerous well-designed and efficient physical delivery points to which cattle may be delivered.”
Increasing price discovery in all major cattle feeding regions was another priority for Iowa Cattlemen’s Association members. The NCBA CMIT committee passed a resolution to “pursue market-driven initiatives that encourage and increase negotiated cash trade in all major cattle feeding regions.”
CME’s announcement regarding Worthing and threat to move to a cash-settled contract stand in clear opposition to industry input. “The Iowa Cattlemen’s Association whole-heartedly believes that producers should have options when it comes to marketing their cattle. That said, it’s disheartening that we have yet to see all market participants understand that each non-cash negotiated trade is reliant on true price discovery and cash negotiated trade for its foundation,” says Deppe. “Increasing confidence in cattle market price discovery will take full industry participation, not just among the producers in our state, but among producers all the way across the feeding sector in the US Beef Belt. Solutions are working forward, but the question is whether the pace and frequency of cash offerings will be enough in the south.”
Informa Raises Crop Forecasts
In one of the flurry of report estimates leading up to next week's USDA crop production report, private analytical firm Informa Economics on Friday bumped up its forecasts for corn and soybean production.
Informa projects corn production at a record 14.69 billion bushels and a yield of 169.8 bushels per acre. If realized, the corn crop would be 1.09 billion bushels higher than last year's crop. Informa cited higher corn conditions since the first week of July that remained steady throughout the month. As of July 31, 76% of the corn crop was rated as good to excellent.
Informa pegged soybean production at 3.958 billion bushels with a yield at 47.4 bushels per acre. Both are also increases from Informa's forecast last month and the July WASDE report. Informa projected higher yields in the western side of the production areas and Midsouth, tempered with some potential declines in Ohio, Pennsylvania and New York.
Informa also raised its projection for all wheat production to 2.318 billion bushels, which is 57 million bushels higher than the July WASDE projection. For winter wheat, Informa pegged the production at 1.671 billion bushels, which also is 8 million bushels higher than the July USDA Crop Production report.
US Rail Traffic Down 4%, May Be Bottoming Out
Total U.S. rail traffic fell only 4% last week, another sign that cargoes may be starting to bottom out. According to the Association of American Railroads, total carloads were down 5.3%, as gains in chemicals, farm products and grain helped stem losses. Coal, still the largest commodity group by carload, was down 12% compared with weekly YoY comparisons of more than 30% earlier this year. Intermodal declined 2.6%, while total year-to-date traffic was down 7.4%, or more than 15M carloads, trailers and containers.
Nebraska’s farm real estate value, a measurement of the value of all land and buildings on farms, decreased from 2015, according to USDA’s National Agricultural Statistics Service. Farm real estate value for 2016 averaged $2,950 per acre. This is down $100 per acre or 3 percent lower than last year.
Cropland value decreased 4 percent from last year to $4,850 per acre. Dryland cropland value averaged $3,800 per acre, down $170 from last year. Irrigated cropland value averaged $6,560 per acre, down $310 from a year ago. Pastureland, at $910 per acre, increased $40 from a year ago.
Cash rents paid to landlords in 2016 for cropland decreased from last year. Irrigated cropland rent averaged $243 per acre, a decrease of $11 from last year. Dryland cropland rent averaged $150 per acre, down $10 from a year earlier. Pasture rented for cash, averaged $24 per acre, down $4.50 from the previous year.
County level averages of 2016 cash rents paid to landlords will be released on September 9, 2016 and will be available through NASS Quick Stats located at http://quickstats.nass.usda.gov/.
IOWA 2016 LAND VALUE AND CASH RENT
Iowa’s farm real estate value, a measurement of the value of all land and buildings on farms, averaged $7,850 per acre in 2016, according to the USDA, National Agricultural Statistics Service – Land Values 2016 Summary. This is down $150 per acre or 2 percent below last year’s level. Cropland value decreased 2 percent from last year to $8,000 per acre. Pasture, at $3,400 per acre, is unchanged from a year ago.
Cropland cash rent paid to Iowa landlords in 2016 averaged $235.00 per acre according to the USDA, National Agricultural Statistics Service. Non-irrigated cropland rent averaged $235.00 per acre, down $15.00 from a year earlier. Irrigated cropland rent averaged $240.00 per acre. Pasture rented for cash averaged $52.00 per acre, up $2.00 from the previous year. County level cash rent averages will be released on September 9, 2016
Agricultural Land Values Highlights
The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $3,010 per acre for 2016, down $10 per acre (0.3 percent) from 2015 values. Regional changes in the average value of farm real estate ranged from a 3.3 percent increase in the Pacific region to 4.3 percent decrease in the Northern Plains region. The highest farm real estate values were in the Corn Belt region at $6,290 per acre. The Mountain region had the lowest farm real estate value at $1,110 per acre.
The United States cropland value decreased by $40 per acre (1.0 percent) to $4,090 per acre from the previous year. In the Southeast region, the average cropland value increased 4.0 percent from the previous year. However, in the Northern Plains region, cropland values decreased by 5.4 percent.
The United States pasture value remained constant at $1,330 per acre. The Delta region had the highest increase of 3.9 percent from 2015. The Northeast region had the highest decrease in pasture land at 2.6 percent.
GROWING SEGMENT OF NEBRASKA AGRICULTURE HIGHLIGHTED DURING NATIONAL FARMERS MARKET WEEK
Farmers markets in Nebraska are a great opportunity for vegetable and fruit growers in the state to sell to consumers seeking locally produced products.
“We continue to see considerable growth in the number of farmers markets in the state, and don’t expect that trend to end anytime as consumer demand for ‘farm to table’ produce remains strong,” Nebraska Department of Agriculture (NDA) Director Greg Ibach said. “We have had a good mix of vendors at these markets. They range from fulltime producers, to hobbyists, to farmers who use the opportunity to diversify their current operation.”
National Farmers Market week is being celebrated across the country Aug. 7-14.
The number of farmers markets in the state, registered with NDA, has seen a dramatic increase of 259 percent the past 16 years. In 2000, the number of registered markets was 39, increasing to 101 this year.
“Because of the rapidly growing number of farmers markets across the state, we launched an online database last year that can be accessed by both vendors and consumers,” NDA Ag Promotions Coordinator Casey Foster said. “The webpage provides details on locations, days and times of farmers markets across the state. Produce farmers also are given the opportunity to list locations where they sell from, as well as the types of produce they sell.”
Foster said there are over 600 producers and 100 farmers markets listed on the site which can be accessed through the NDA website at www.nda.nebraska.gov. There are farmers markets located in 50 counties statewide. Market managers and vendors can be added to the database by contacting Foster at 800-422-6692.
In addition to coordinating farmer’s market programs, Foster also manages several federally-funded programs. The Seniors Farmers Market Nutrition Program and the Women, Infants and Children (WIC) Farmers Market Nutrition Program both are designed to increase sales for produce growers by encouraging the consumption of fresh fruits and vegetables among qualified senior citizens and individuals in the WIC Supplemental Nutrition Assistance Program.
Foster is working with program officials in Omaha to host cooking demonstrations for WIC Farmers Market Nutrition Program participants during National Farmers Market Week. The cooking demos are being held Aug. 11, at 1p.m., 2 p.m. and 3 p.m., at the OneWorld Community Health Center, 4920 South 30th Street in Omaha.
“The growth of farmers markets in the state has been a win-win for Nebraska,” said Ibach. “It provides more opportunities to grow agriculture and more choices for consumers.”
INOCULATING CORN AND SORGHUM SILAGE
Bruce Anderson, NE Extension Forage Specialist
To make good silage, a little help from inoculants can improve fermentation. When and how can you get the best use from them?
Silage inoculants can be hard to figure out. There is no clear cut, consistent way to predict when inoculants will be most useful or cost effective. Silage fermentation is just too complex.
Inoculants primarily reduce storage losses. The most effective ones contain homolactic acid bacteria like Lactobacillus plantarum. Fermentation starts and ends quicker with inoculated silage so more silage remains for feeding. Typically, you save about 5 percent. Some inoculants also improve aerobic stability by using the heterolactic acid bacteria Lactobacillus buchneri. They reduce spoilage losses when silage is re-exposed to air, thus extending bunk life. These bacteria are especially useful at reducing spoilage on the face of bunker silos.
Inoculants consistently improve wet silage, especially sorghum silage. If you start chopping early enough to prevent silage from being too dry at the end, inoculants should help.
In the past, inoculants rarely improved properly made corn silage – silage at the right moisture, chopped fine, packed well, and sealed tight. Nor did they improve dry silage. But recently developed inoculants, with more effective strains of fermentation bacteria, are producing slightly better quality silage even from these feeds.
If you use an inoculant, make sure that it contains live bacteria. Also check to see that the inoculant provides at least 100,000 colony forming units per gram of wet forage when applied at the recommended rate at the chopper. You need plenty of live bacteria for the inoculant to do you any good.
But used in the right conditions, inoculants can be worth it.
PLATTE VALLEY CATTLEMEN MOVE UP ANNUAL OUTLOOK MEETING
This year, the board of directors for Platte Valley Cattlemen decided to move the outlook meeting up to see if they can capture a larger audience. On Monday, August 15th at Jarad and Kathy Doernemann’s barn venue in Clarkson, the annual Outlook meeting will get started with a social hour at 6:00 p.m. and the meal to begin at 7:00 p.m.
Directions to the Barn:
Off of Highway 91, turn north and take the main entrance into Clarkson. The street sign should read Bryant Street or Road 8. Go north through town past the park until you get to Road X. Then go east a quarter mile and turn north on 570th Ave. The barn will be on the east side of the road.
PVC President Marcus Urban says the featured speakers for the night will be Jim Jansen, Livestock Extension Educator, and Dr. Jay Parsons, UNL Ag Extension Economist. He also thanks Pinnacle Bank for sponsoring the social hour.
See you on August 15th!
NE Corn Board to Meet
The Nebraska Corn Board will hold its next meeting on Friday, August 19, 2016 at Embassy Suites located at 1040 P Street in Lincoln, Nebraska.
The meeting is open to the public, providing the opportunity for public comment. The Board will conduct regular board business and hold election of officers. The meeting is open to the public. A copy of the agenda is available by writing the Nebraska Corn Board, PO Box 95107, Lincoln, NE 68509, sending an email to susan.zabel@nebraska.gov or calling 402/471-2676.
Current National Drought Summary
droughtmonitor.unl.edu
Shower and thunderstorm activity was scattered across much of the eastern two-thirds of the country, but in most places, moderate to heavy precipitation was not widespread enough to bring significant drought relief. Some exceptions included southwest New England and the lower Northeast, the central Appalachians and Piedmont, the lower Mississippi Valley, parts of the central Great Plains, the Black Hills and adjacent areas, southeast Arizona, and Hawaii. Heavy rains in the latter area were primarily associated with Tropical Storm Darby.
The Middle Mississippi Valley and the Plains States
Bands of heavy rain were not widespread, but did drop 2 to 7 inches of precipitation to areas where they set up, specifically the central tier of Nebraska, part of central and northern Missouri, part of central and southern Iowa, and upper southern Texas. Beneficial moderate to locally heavy precipitation dampened much of the Black Hills and adjacent Wyoming, the northeastern quarter of Oklahoma, and scattered small areas in both Kansas and Texas. This precipitation brought improvement to the areas that received the heaviest amounts, but also to the Black Hills and adjacent Wyoming, where 30-day totals were sufficient to bring improvement to some of the extant drought areas. In addition, dryness and drought changed in relatively small areas through the rest of the region, improving where isolated heavy rain was reported, and deteriorating in places where significant rain has not been observed for two or more weeks, at least.
Looking Ahead
During the next 5 days (August 4 – 8), heavy precipitation (1.5 to locally approaching 6 inches) is expected along the central Gulf Coast, the central and northern Florida Peninsula, and the central and southern Carolinas. Farther west, similar amounts of rain are anticipated in a swath from eastern Arizona northeastward through Iowa and northern Missouri. Moderate amounts are forecast in the eastern Great Basin and northern Arizona, through part of the north-central Plains, and in the interior Southeast. Only a few tenths of an inch at best are expected elsewhere, with little or none falling on Texas and California.
During August 9 – 13, the odds favor drier than normal weather in eastern Virginia, the East Coast Megalopolis, and portions of New England. Most of the Four Corners states and the Great Basin also have enhanced chances for subnormal precipitation. In contrast, wetter than normal weather is favored from the northern Rockies eastward through the Great Lakes Region, in the lower Ohio and middle Mississippi Valleys, and across the areas of current dryness and drought in the interior Southeast.
Biotech Working Group Discusses Consumer Engagement, More in Indianapolis
Members of the American Soybean Association’s (ASA) Biotech Working Group discussed how farmers can better engage with consumers and also met with Dow Agro Sciences CEO Tim Hassinger and several members of the Dow team.
Members of the American Soybean Association’s (ASA) Biotech Working Group met in Indianapolis this week to discuss issues facing the industry.
Participants included industry representatives and grower leaders from ASA, United Soybean Board (USB) and the U.S. Soybean Export Council (USSEC), including Vice-Chair Jim Miller from Belden, NE.
Featured speaker, Dan Nowicki of the JM Smucker Company, engaged the group in a discussion on post-Vermont reformulation in the U.S. food industry. Nowicki stressed the importance of consumer engagement from all sectors involved in food production, stating that farmer involvement is critical. Participants also heard updates on the U.S. Biotech Crops Alliance, International Soy Grower Alliance and the status of technology in both the European Union (EU) and China.
While in Indiana, grower members also met with Dow Agro Sciences CEO Tim Hassinger and several members of the Dow team.
The Biotech Working Group is a confidential forum for technology providers and soybean growers to discuss the issues facing the biotechnology industry. The forum also provides industry members the opportunity for one-on-one consultations with grower leaders from ASA, USB and USSEC to discuss issues and technologies related to their organization and develop action plans specific to those technologies.
Recent changes to the CME Live Cattle Futures Contracts Alarm Iowa Cattlemen
The Chicago Mercantile Exchange (CME) announced recently that a $1.50 per hundredweight discount would be applied to cattle delivered to the Worthing, SD delivery point on the October 2017 cattle futures contract. Even more concerning, however, are CME’s threats to move to a cash settled live cattle futures contract if price discovery and cash negotiated trade do not increase, and increase quickly, across the major cattle feeding regions.
The Iowa Cattlemen’s Association has been vocal in their opposition to the Worthing discount and successfully advocated for changes to NCBA’s policy reflecting this stance.
“It’s upsetting that CME has gone against industry wishes and applied the discount. The discount takes place during a time when cattle in the north are typically ready to go to the packer. That’s an issue for us. Frankly, this decision feels like a mandate to our folks on how and when they can and should feed cattle for market. It’s a multi-faceted marketing disadvantage that may decrease cash negotiated trade in the upper midwest,” says Matt Deppe, ICA CEO.
In a seemingly contradictory move, CME expressed concern about lack of negotiated trade across the country and subtly threatened to move to a cash settled contract if price discovery and transparency does not increase. While Iowa and surrounding states average 60% cash negotiated trade, other major cattle feeding states, including Texas and Oklahoma, average less than 5%.
“Our problem, from a price discovery standpoint, is in the south. We have not yet, as an industry, found a way to encourage states like Texas and Oklahoma to put more cattle on the cash market,” explains Deppe.
The Iowa Cattlemen’s Association brought strong policy to the National Cattlemen’s Beef Association’s Summer Business Meeting, encouraging 50% cash negotiated trade across all major cattle feeding regions. NCBA adopted policy encouraging more cash negotiated trade.
However, the move does not seem to be enough for the CME. The December 2017 cattle futures contract is scheduled to be listed in the next 30-60 days, which leaves precious little time for the major changes in price discovery that are needed to avoid a cash settled futures contract.
ICA members do not believe a cash settled contract will solve any of the price discovery problems cattlemen are currently facing. “If we don’t have enough cash negotiated cattle, there’s no way to have an accurate cash settled contract. Price discovery is an issue that will only be made worse through a cash settled contract.
Further compounding cattlemen’s frustrations with the CME Live Cattle Futures Contract is that data on high frequency or algorithmic traders has remained inaccessible. ICA would like a third party to audit the data to determine how these traders have influenced the cattle market volatility that has taken place over the past several months.
Recent efforts by Iowa’s cattlemen to improve the cattle futures contract and delivery point system
Cattle market volatility has been a concern for Iowa cattle producers, especially since the historic drop in fed cattle prices that occurred in October of 2015. Since that time, volunteer leaders from the Iowa Cattlemen’s Association have been actively working toward solutions to the current issues in cattle marketing.
Many of those solutions became part of the National Cattlemen’s Beef Association (NCBA) official policy during the annual Summer Business Meeting. The NCBA meeting took place in Denver July 13-16. Several Iowa Cattlemen’s Association leaders attended the meeting including Brad Kooima of Rock Valley, Mike Cline of Elgin, David Trowbridge of Tabor, Justine Rowe of Dallas Center, Ben Novak of Elberon and Ed Greiman of Garner.
One of the priorities for Iowa cattle producers was strengthening support for the Worthing, South Dakota delivery point. Amendments to NCBA’s policy now include broader support for the delivery point process, including opposition to “any changes by the CME group that would adversely affect cattle feeders’ ability to deliver on Live Cattle contracts including, but not limited to, the discounting of deliveries to any delivery point.” The same policy, passed by the Cattle Marketing and International Trade (CMIT) committee, includes the resolution to “encourage and support the existence of numerous well-designed and efficient physical delivery points to which cattle may be delivered.”
Increasing price discovery in all major cattle feeding regions was another priority for Iowa Cattlemen’s Association members. The NCBA CMIT committee passed a resolution to “pursue market-driven initiatives that encourage and increase negotiated cash trade in all major cattle feeding regions.”
CME’s announcement regarding Worthing and threat to move to a cash-settled contract stand in clear opposition to industry input. “The Iowa Cattlemen’s Association whole-heartedly believes that producers should have options when it comes to marketing their cattle. That said, it’s disheartening that we have yet to see all market participants understand that each non-cash negotiated trade is reliant on true price discovery and cash negotiated trade for its foundation,” says Deppe. “Increasing confidence in cattle market price discovery will take full industry participation, not just among the producers in our state, but among producers all the way across the feeding sector in the US Beef Belt. Solutions are working forward, but the question is whether the pace and frequency of cash offerings will be enough in the south.”
Informa Raises Crop Forecasts
In one of the flurry of report estimates leading up to next week's USDA crop production report, private analytical firm Informa Economics on Friday bumped up its forecasts for corn and soybean production.
Informa projects corn production at a record 14.69 billion bushels and a yield of 169.8 bushels per acre. If realized, the corn crop would be 1.09 billion bushels higher than last year's crop. Informa cited higher corn conditions since the first week of July that remained steady throughout the month. As of July 31, 76% of the corn crop was rated as good to excellent.
Informa pegged soybean production at 3.958 billion bushels with a yield at 47.4 bushels per acre. Both are also increases from Informa's forecast last month and the July WASDE report. Informa projected higher yields in the western side of the production areas and Midsouth, tempered with some potential declines in Ohio, Pennsylvania and New York.
Informa also raised its projection for all wheat production to 2.318 billion bushels, which is 57 million bushels higher than the July WASDE projection. For winter wheat, Informa pegged the production at 1.671 billion bushels, which also is 8 million bushels higher than the July USDA Crop Production report.
US Rail Traffic Down 4%, May Be Bottoming Out
Total U.S. rail traffic fell only 4% last week, another sign that cargoes may be starting to bottom out. According to the Association of American Railroads, total carloads were down 5.3%, as gains in chemicals, farm products and grain helped stem losses. Coal, still the largest commodity group by carload, was down 12% compared with weekly YoY comparisons of more than 30% earlier this year. Intermodal declined 2.6%, while total year-to-date traffic was down 7.4%, or more than 15M carloads, trailers and containers.
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