PVC Planning Two Events in February
Marcus Urban, President, Platte Valley Cattlemen
Be sure to bring your Valentine for a belated night out Monday, February 19, at Wunderlich’s Catering. The night’s meeting will include Ruth Ready a Commonground member, whom will talk to us about breaking the myths of agriculture. The social hour will begin at 6:00 p.m. with dinner to follow at 7:00 p.m. Thank you to our social hour sponsors Lindsay Farmers Coop and First National Bank for sponsoring our meal.
Additionally, the 2017 Banquet is set for Saturday, February 11, at 5:30 p.m. at River’s Edge Convention Center Ramada Inn. The night’s entertainment is Comedian Michael Joiner. Tickets are on sale now for $35.00 each and are available from any Platte Valley Cattlemen Director.
We hope you and your spouse can join us for both events. Once again the banquet is Saturday, February 11, at River’s Edge Convention Center in Columbus.
Green Plains Reports Fourth Quarter and Full Year 2016 Financial Results
Company Reports 8th Consecutive Year of Profitability
Omaha-based Green Plains Inc. (NASDAQ:GPRE) today announced financial results for the fourth quarter of 2016. Net income attributable to the company was $18.7 million, or $0.47 per diluted share, for the fourth quarter of 2016 compared with net loss of $(3.6) million, or $(0.09) per diluted share, for the same period in 2015. Revenues were $932.1 million for the fourth quarter of 2016 compared with $739.9 million for the same period last year.
"Green Plains finished 2016 on a strong note, generating $74.3 million of segment operating income in the fourth quarter as we successfully integrated the acquisitions of three ethanol plants and Fleischmann's Vinegar Company into our platform," said Todd Becker, president and chief executive officer. "Each of our business units performed well during the quarter and the year, delivering strong results by continuing to focus on executing our long term strategy of diversification and achieving scale in all of our businesses."
With the addition of Fleischmann's Vinegar Company in the fourth quarter of 2016, Green Plains restructured its operating segments. The four segments include: ethanol production, agribusiness and energy services, food and food ingredients and partnership. Please see segment information below for more detail.
During the fourth quarter, Green Plains produced 334.2 million gallons of ethanol compared with 260.8 million gallons for the same period in 2015. The consolidated ethanol crush margin was $81.6 million, or $0.24 per gallon, for the fourth quarter of 2016 compared with $28.9 million, or $0.11 per gallon, for the same period in 2015. The consolidated ethanol crush margin is the ethanol production segment's operating income before depreciation and amortization, which includes corn oil production, plus intercompany storage, transportation and other fees, net of related expenses.
Revenues were $3.4 billion for the year ended Dec. 31, 2016, compared with $3.0 billion for the same period in 2015. Net income attributable to the company for the year ended Dec. 31, 2016, was $10.7 million, or $0.28 per diluted share, compared with net income of $7.1 million, or $0.18 per diluted share, for the same period in 2015.
"U.S. ethanol demand was strong in 2016 and we expect that to continue in 2017. In addition, exports were the strongest we have seen in 5 years. U.S. ethanol remains competitively priced and export demand could be even stronger this year," Becker added. "We expect to see solid infrastructure growth in support of E15 with new locations and more retailers expanding demand for the product. In all, we believe gasoline demand will continue to grow, leading to an improved ethanol margin environment as we approach the beginning of summer driving season in April.
"We invested over $550 million of growth capital in 2016, which we believe positions us to deliver stronger results in the future. We continue to evaluate additional growth opportunities across all of our segments and we look forward to the completion of the Jefferson Energy Terminal joint venture in the second half of this year," stated Becker.
Full Year Highlights
- On Jan. 1, 2016, Green Plains sold the storage and transportation assets of the Hopewell and Hereford ethanol production facilities to Green Plains Partners for $62.3 million.
- On June 14, 2016, Green Plains Inc. and Jefferson Gulf Coast Energy Partners, a subsidiary of Fortress Transportation and Infrastructure Investors LLC, announced the formation of a 50/50 joint venture to construct and operate an intermodal export and import fuels terminal at Jefferson's existing Beaumont, Texas terminal. Green Plains will offer its interest in the joint venture to the partnership once commercial development is complete, which is expected during the second half of 2017.
- In Aug. 2016, Green Plains completed a private offering of $170 million aggregate principal amount of 4.125% convertible senior notes that will mature on Sept. 1, 2022. The net proceeds from the offering were used to finance the recent acquisitions.
- On Sept. 23, 2016, Green Plains acquired three ethanol plants located in Madison, Ill., Mount Vernon, Ind. and York. Neb. for approximately $235 million in cash plus certain working capital adjustments. Concurrently, the ethanol storage assets were sold to Green Plains Partners LP for $90 million. The plants added 230 million gallons per year of ethanol production capacity.
- On Oct. 3, 2016, Green Plains acquired SCI Ingredients Holdings, Inc. and its wholly owned subsidiary, Fleischmann's Vinegar Company, Inc., for approximately $258 million, financing the transaction with $135 million of debt and the balance with cash on hand. Fleischmann's Vinegar Company operates as a standalone business.
Results of Operations
Consolidated revenues increased $192.2 million for the three months ended Dec. 31, 2016, compared with the same period in 2015. Revenues were impacted by an increase in ethanol volumes sold and a higher average price realized for ethanol along with an increase in volumes of cattle sold, plus the addition of Fleischmann's Vinegar in the quarter. The increase in revenues were partially offset by lower volumes and average realized prices for grain sold.
Operating income increased $43.3 million for the three months ended Dec. 31, 2016, compared with the same period last year primarily due to increased margins on ethanol production. Interest expense increased $8.3 million for the three months ended Dec. 31, 2016, compared with the same period last year primarily due to higher average debt outstanding. Income tax expense was $12.2 million for the three months ended Dec. 31, 2016, compared with $4.1 million for the same period in 2015.
Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the fourth quarter of 2016 was $83.5 million compared with $32.5 million for the same period last year.
Net Farm Income Expected to Dip further in 2017; Cash Profit Measure Steadies
USDA Economic Research Service
Farm sector profitability measures are mixed for 2017. A narrow cash-based measure, net cash farm income, is forecast to rise by $1.6 billion to $93.5 billion from the 2016 value, an increase of 1.8 percent. In contrast, net farm income is forecast to decline by 8.7 percent to $62.3 billion, the fourth consecutive year of declines after reaching a record high in 2013. The difference between the two profitability measures is expected to increase in 2017 largely due to an additional $8.2 billion in cash receipts from the sale of crop inventories. The net cash farm income measure counts those sales as part of current-year income while the net farm income measure counted the value of those inventories as part of prior year income. If realized, net farm income in 2017 will be the lowest since 2002, in inflation-adjusted terms.
Overall, cash receipts are forecast to remain largely unchanged, with large offsetting changes in dairy receipts—up by $4.7 billion, or 13.7 percent, based on forecast higher prices—and cattle/calf receipts, which are forecast down by $4.5 billion (6.7 percent) based on anticipated lower prices. The forecast for crops is mostly unchanged, with wheat receipts changing most in absolute and percentage terms, falling $1.4 billion (16.6 percent) relative to 2016. Direct government payments are down by $0.5 billion (4.0 percent) to $12.5 billion.
The 2017 forecast for average net cash income for farm businesses is up by 2.2 percent, with the largest increases for farms specializing in cotton (up 34 percent) and dairy (up 47 percent). These strong gains are offset by a forecast drop in net cash farm income for cattle/calf operations (down 12.9 percent).
After declining for 2 consecutive years, the forecast for 2017 total production expenses is flat, with farm-origin expenses (including feed, livestock, and seed) down 2.6 percent as a group. Manufactured input expenses were more mixed, with fertilizer group expenditures forecast down by 9.1 percent and fuel/oil expenses up by 13.1 percent. Labor costs are also forecast to rise 5.4 percent in 2017.
Farm asset values are forecast to decline by 1.1 percent in 2017, and farm debt is forecast to increase by 5.2 percent. Farm sector equity, the net measure of assets and debt, is forecast down by $51.2 billion (2.1 percent) in 2017. The decline in assets reflects a 0.3-percent drop in the value of farm real estate, as well as declines in the remaining categories. The rise in farm debt is driven by higher real estate debt (up 7.3 percent). Financial liquidity measures, including working capital, are forecast to weaken in 2017, as are solvency measures such as the debt-to-asset ratio. The debt-to-asset measure is now above its average over the previous ten years.
Median Income of Farm Operator Households Expected to Rise 3 Percent in 2017
The median income of U.S. farm households increased steadily over 2010-14, reaching an estimated $81,637 in 2014. After dipping in 2015 to $76,735, median household income is forecast to rise over the next 2 years, reaching an expected $79,733 in 2017. Median farm income earned by farm households is estimated to be -$765 in 2015 and forecast to drop to -$1,328 in 2016 and -1,437 in 2017. In recent years, slightly more than half of farm households have lost money on their farming operations each year; most of these households earn positive off-farm income—median off-farm income is forecast to increase 6.7 percent over the next 2 years, from $67,500 in 2015 to $72,022 in 2017. (Because farm and off-farm income are not distributed identically for every farm, median total income will generally not equal the sum of median off-farm and median farm income.)
Farmer Volunteers Focus on Engaging with Consumers at Winter Meeting
Members of the National Corn Growers Association's Consumer Engagement Action Team met in Savannah, Georgia last week to review programs focused on the organization's strategic goals associated with strengthening consumer trust. The team, which was formed in October of 2016 to better align and focus with the goals of the new strategic plan, delved deeply into ongoing consumer engagement efforts while exploring future opportunities.
At the meeting, the team took a thoughtful look at pertinent sections of NCGA's Policy Book, examining the relevance of current language to the association's public policy work. They also took a deep dive into the ongoing activities of and budget for consumer engagement programs, such as the Corn Reputation project, CommonGround and the U.S. Farmers and Ranchers Alliance.
"With our new strategic focus, the importance of proactively engaging with consumers to foster understanding and mutual trust has come to the forefront as a key to ensuring future demand," said Patty Mann, who serves as chairwoman of the team. "Our farm families have so many challenges right now, whether its farm economics or regulatory intrusion, so we want to do all we can to help them by engaging as trusted advocates for agriculture with the ability to build a brighter future."
The team also spoke with several outside groups, such as Farm Journal Foundation and Bason Research, to explore the broad spectrum of ongoing activities and research relevant to consumer communications about agriculture. Through these presentation, members had the opportunity to view a wide range of activities, including those focused on efforts to explore ag on coastal college campuses.
During the team's visit, the Georgia Corn Growers Association graciously hosted them to a low country boil at the Georgia Coastal Botanical Gardens. Additionally, GCGA Executive Director Dr. Dewey Lee arranged for a series of tours for the group to help them explore consumer outreach activities in that state focused on highlighting the safety around oyster farming and expanding knowledge of local marine ecology.
In addition to Mann, the Grower Services Action Team includes Vice Chairman Ted Mottaz, Corn Board Liaison Tom Haag, and members, Debbie Borg, Dan Cole, Ralph Kauffman, David Merrell, Gerald Mulder, Leah Pottinger, Allen Rowland and state affiliate staff representative Shannon Textor of Iowa. The next meeting will take place in Washington in July.
WATER QUALITY EFFORTS TOUTED TO IOWA LEGISLATURE
Iowa Secretary of Agriculture Bill Northey, Iowa DNR Director Chuck Gipp and Iowa State University College of Agriculture and Life Sciences Associate Dean Dr. John Lawrence today highlighted coordination and scaling-up of water quality efforts in presentations before House and Senate Committees in the Iowa Legislature.
Northey also provided legislators an Iowa Water Quality Initiative scale-up plan that outlines the water quality efforts that will be prioritized as additional funding is available to the Iowa Department of Agriculture and Land Stewardship. The scale-up plan can be found at www.IowaAgriculture.gov under “Hot Topics” or at http://www.cleanwateriowa.org/news-and-blog.aspx.
“The Governor and legislators have been very supportive of the Water Quality Initiative to this point and remain committed of identifying a growing, ongoing source of funding to expand efforts. This scale-up plan identifies how our Department will prioritize additional funding on scientifically proven practices around land use, edge-of-field practices, cover crops and nutrient management to achieve our water quality goals,” Northey said.
Lawrence outlined research accomplishments of the legislatively funded Iowa Nutrient Research Center at Iowa State University. “Over the past four years, we've had more than 40 research collaborations involving nearly 80 scientists across the three Regents universities and including IDALS, DNR and USDA,” he said. “The work is helping us better understand nutrient movement across the landscape, be more precise with conservation practices and address barriers to the use of cover crops.”
Lawrence also shared ideas developed by Iowa State water quality researchers on how the state of Iowa might consider increasing the implementation of water quality and soil conservation practices.
The Iowa Water Quality Initiative was established in 2013 to help implement the Nutrient Reduction Strategy, which is a science and technology based approach to achieving a 45 percent reduction in nitrogen and phosphorus losses to our waters. The strategy brings together both point sources, such as municipal wastewater treatment plants and industrial facilities, and nonpoint sources, including farm fields and urban stormwater runoff, to address these issues.
The Initiative seeks to harness the collective ability of both private and public resources and organizations to deliver a clear and consistent message to stakeholders to reduce nutrient loss and improve water quality.
The initiative is seeing some exciting results. Last fall Northey announced that 1,800 farmers committed $3.8 million in cost share funds to install nutrient reduction practices. The practices that were eligible for this funding are cover crops, no-till or strip till, or using a nitrification inhibitor when applying fall fertilizer. Participants include 980 farmers using a practice for the first time and more than 830 past users that are trying cover crops again and are receiving a reduced-rate of cost share. Farmers using cost-share funding are providing an estimated $6 million in their own funding to adopt these water quality practices.
A total of 45 demonstration projects are currently located across the state to help implement and demonstrate water quality practices. This includes 16 targeted watershed projects, 7 projects focused on expanding the use and innovative delivery of water quality practices and 22 urban water quality demonstration projects. More than 150 organizations are participating in these projects. These partners will provide $25.28 million dollars to go with the $16.09 million in state funding going to these projects.
More than $325 million in state and federal funds have been directed to programs with water quality benefits in Iowa last year. This total does not include the cost-share amount that farmers pay to match state and federal programs and funds spent to build practices built without government assistance.
More information about the initiative can be found at www.CleanWaterIowa.org.
Strong Finish for 2016 Red Meat Exports; New Volume Record for Pork
U.S. pork and beef exports wrapped up an excellent 2016 performance with very strong December results, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Pork export volume reached a record 2.31 million metric tons (mt) in 2016, up 8 percent year-over-year and 2 percent above the previous high in 2012. Export value increased 7 percent from a year ago to $5.94 billion. December pork exports totaled 222,635 mt, up 18 percent year-over-year, valued at $564.2 million, up 20 percent.
Exports accounted for 25.8 percent of total 2016 pork production and 21.5 percent for muscle cuts – up from 24.2 percent and 20.8 percent, respectively, in 2015. December ratios were 28 percent for total production and 23 percent for muscle cuts only – up significantly from December 2015. Export value per head slaughtered averaged $50.20 in 2016, up 4 percent from the previous year. The December average was $56.06, up 24 percent.
Beef exports increased 11 percent in volume (1.19 million mt) and 1 percent in value ($6.34 billion) from 2015. December exports totaled 116,847 mt, up 24 percent year-over-year. This was the largest monthly volume since July 2013 and the largest ever for December. Export value was $619.1 million in December, up 22 percent.
Exports accounted for 13.7 percent of total beef production in 2016 and 10.5 percent for muscle cuts – up from 13.1 percent and 10 percent, respectively, in 2015. December exports accounted for 15.6 percent of total December beef production and 12.1 percent for muscle cuts only – each up more than 2 percentage points from a year ago and the highest since 2011. Export value per head of fed slaughter averaged $262.17, down 6 percent from 2015, but the December average was $301.97 – up 14 percent and the highest in nearly two years.
Pork to Mexico sets fifth straight volume record; China/Hong Kong also record-large
A remarkable second half pushed 2016 pork export volume to Mexico to its fifth consecutive record at 730,316 mt – breaking the previous record by 2 percent. Export value to Mexico totaled $1.36 billion, up 7 percent year-over-year and the second-highest on record, trailing only the $1.56 billion mark reached in 2014.
“At this time of record-large pork production, it would be hard to overstate the importance of Mexican demand to the U.S. industry,” said Philip Seng, USMEF President and CEO. “This is especially true for hams, as we are locked out of Russia – once a large destination for U.S. hams – and China’s demand for imported hams has moderated in recent months. So now more than ever, we need strong demand from our key customers in Mexico, and they have responded with extraordinary results. December exports to Mexico accounted for nearly $16 per head, and that’s absolutely critical to the entire U.S. pork supply chain.”
Though down from the high levels seen earlier in the year, December pork exports to China/Hong Kong were still up 40 percent year-over-year in volume (47,242 mt) and 42 percent higher in value ($96 million). For the full year, exports to China/Hong set a new volume record of 544,943 mt (up 61 percent) and broke the $1 billion mark for the first time ($1.07 billion, up 53 percent).
Other 2016 highlights for U.S. pork exports include:
- Japan remained the leading value destination for U.S. pork, though exports fell 5 percent in volume (387,712 mt) and 2 percent in value ($1.56 billion) compared to 2015. However, chilled exports to Japan set a new record of 218,211 mt, up 8 percent.
- Led by a record performance in Central America and a fourth-quarter surge in Colombia and Chile, exports to the Central/South America region increased 11 percent in volume (135,954 mt) and 9 percent in value ($334.5 million).
- Pork shipments increased to both Australia and New Zealand, as export volume to Oceania reached 69,963 mt (up 10 percent) valued at $197.3 million (up 3 percent).
- Exports to the Dominican Republic set another record in 2016, topping the previous year’s totals by 10 percent in volume (25,591 mt) and 6 percent in value ($56.4 million).
- Fueled by increases in China/Hong Kong and Canada and steady exports to Mexico, pork variety meat exports jumped 20 percent in volume to 523,199 mt and 24 percent in value to $999 million – just short of the record levels reached in 2014.
Asian markets drive strong beef export growth
Driven by strong demand for higher-value chilled cuts, beef exports achieved new value records in South Korea and Taiwan in 2016, and rebounded strongly in Japan.
In Korea, December beef exports soared by 81 percent in volume (20,333 mt) and 88 percent in value ($130 million) from a year ago, capping a remarkable year in which exports totaled 179,280 mt (up 42 percent) valued at $1.06 billion – up 31 percent from a year ago and breaking the previous value record by more than 20 percent. Korea’s per capita beef consumption set a new record in 2016 of 34 pounds (carcass weight) – so the U.S. not only gained market share, but also capitalized on the market’s overall growth.
Beef exports to Taiwan were also strong in December, with export value ($43.3 million) hitting its highest level ever. Full-year exports to Taiwan were up 25 percent in volume to 44,053 mt and 14 percent in value to $362.8 million.
2016 exports to Japan were the largest of the post-BSE era at 258,653 mt, up 26 percent year-over-year. Export value totaled $1.51 billion, up 18 percent. Chilled beef exports to Japan totaled 112,334 mt, up 44 percent from 2015.
“In addition to the strength of the U.S. dollar, U.S. beef overcame other severe challenges in these north Asian markets and achieved remarkable results,” Seng said. “Despite facing higher tariff rates in Japan compared to Australian beef, U.S. beef displaced its competition and won back significant market share. And the investment the U.S. industry made to rebuild consumer confidence in Korea is paying tremendous dividends, especially in the retail sector. We’re seeing U.S. beef featured regularly by retailers who were once reluctant to carry the product.”
Other 2016 highlights for U.S. beef included:
- Beef exports to Mexico increased 7 percent year-over-year in volume to 242,373 mt, though value fell 11 percent to $974.9 million. While challenged by a weak peso, Mexico remains a key destination for muscle cuts such as shoulder clods and rounds, as well as for beef variety meat.
- Led by strong growth in Chile and a doubling of exports to Colombia, beef exports to South America increased 6 percent in volume to 22,810 mt, valued at $92.7 million (down 2 percent). The region should see further growth in 2017 with the reopening of Brazil.
- Exports to Central America were up 7 percent in volume (12,745 mt) with top market Guatemala up 1 percent and exports to Honduras nearly doubling. Export value was $71.8 million, up 1 percent.
- Fueled by a resurgence in Indonesia and solid growth in Vietnam, beef exports to the ASEAN region were up 41 percent in volume (29,920 mt) and 15 percent in value ($156.9 million). Indonesia expanded access for U.S. beef in early August. Despite being closed to many products through the first seven months of the year, U.S. exports to Indonesia set a new value record of $39.4 million.
- Beef variety meat exports increased 10 percent in volume (341,433 mt) and 4 percent in value ($902.2 million) in 2016. Liver exports increased 12 percent to 81,727 and reached a broader range of markets. While liver exports to Egypt – the largest destination for U.S. livers – increased 4 percent, further growth was achieved in Central and South America and with the reopening of South Africa to U.S. beef.
Lamb muscle cut exports continue upward trend
Although U.S. lamb exports were down in 2016, this was largely due to a sharp decline in variety meat exports. While total exports fell 11 percent in volume (8,248 mt) and 4 percent in value ($18.4 million), muscle cut exports increased 26 percent (2,239 mt) and 16 percent ($12.3 million) respectively. Leading market Mexico followed a similar pattern, as variety meat exports declined significantly, but muscle cut exports increased 9 percent in volume (965 mt) and 1 percent in value ($2.8 million). Emerging markets showing promise in 2016 included Bermuda, the Philippines, Vietnam and the United Arab Emirates.
UAN Fertilizers Higher Once Again
A majority of retail fertilizer prices continue to push higher, according to fertilizer prices tracked by DTN for the last week of January 2017. This marks the second consecutive week prices have been significantly higher, although prices have been trending higher much longer.
All but one of the eight major fertilizers were higher although only two were higher by any considerable amount. UAN28 was 8% higher compared to a month earlier while UAN32 was 6% more expensive. UAN28 had an average price of $236/ton while UAN32 was at $270/ton.
The remaining five fertilizers were slightly higher but not by a significant amount. MAP had an average price of $448/ton, potash $329/ton, urea $353/ton, 10-34-0 $439/ton and anhydrous $482/ton.
One lone fertilizer is slightly lower, but this move to the low side was not that notable. DAP had an average price of $430/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.29/lb.N, UAN28 $0.42/lb.N and UAN32 $0.42/lb.N.
Retail fertilizers are lower compared to a year earlier. All fertilizers but one are now double-digits lower.
The one fertilizer no longer down double-digits is urea, which is now down 5%. UAN28 is now 10% less expensive while MAP is 11% lower. Both DAP and UAN32 are 12% lower, anhydrous is 13% less expensive, potash is 14% less expensive and 10-34-0 is 20% lower compared to a year prior.
EIA: Ethanol Stockpiles Build
The U.S. Energy Information Administration reported Wednesday total ethanol stockpiles rose last week for the fifth-consecutive week to a nine-month high even as blending demand surged to a six-week high. Ethanol plant production edged off a record high.
EIA's weekly petroleum status report showed domestic fuel ethanol inventories increased last week by 200,000 barrels to 22.1 million bbl. It is the highest level since the week-ended April 29, 2016, although supply is down 900,000 bbl or 3.8% against the comparable week a year ago.
The inventory building coincides with strong domestic plant production, which edged down 6,000 barrels per day to 1.055 million bpd from a record high during the week-ended Feb. 3. For the four weeks ended Feb. 3, ethanol production averaged 1.055 bpd, 87,000 bpd or 9% above the output rate during the corresponding period in 2016.
Net refiner and blender inputs of ethanol- a measure for demand- surged 38,000 bpd or 4.5% to 875,000 bpd during the week-ended Feb. 3. It is the highest blend rate since the week-ended Dec. 23. On a year-over-year basis, refiner and blender inputs are up 17,000 bpd or 2%, although the four-week average at 846,000 bpd is flat, down 2,000 bpd, against the prior year.
USGC, RFA, Growth Energy Urge Administration To Address China Trade Tariffs On Ethanol, DDGS
In a letter to President Donald Trump this week, the U.S. Grains Council (USGC), Renewable Fuels Association (RFA) and Growth Energy are asking for help "in urgently addressing China’s recent implementation of protectionist trade barriers that are shutting out U.S. exports of ethanol and distillers dried grains (DDGS)." Specifically, the three groups are asking the incoming U.S. Trade Representative to put China’s recent actions near the top of the administration’s China trade agenda.
In September 2016, after a nine-month investigation, China imposed a preliminary anti-dumping duty of 33.8 percent against U.S. DDGS and a countervailing duty of 10-10.7 percent. In a final ruling last month, China increased its DDGS anti-dumping duty to 42.2-53.7 percent and its DDGS countervailing duty to 11.2-12 percent. Additionally, the tariffs on U.S. ethanol have increased from 5 percent to 30-40 percent.
"It is widely believed that raising these tariffs will put an immediate end to ethanol exports to China, erasing the significant progress our industry made in developing that market over the past several years," wrote the groups to Trump. "[W]e respectfully ask that reform of these punitive ethanol tariff rates be included in any potential upcoming trade negotiations with China."
China has grown to be a top export market for U.S. DDGS. In 2015, the country imported 6.5 million metric tons of the ethanol co-product, worth $1.6 billion and accounting for 51 percent of total U.S. DDGS exports. By the end of 2016, China had become the U.S. ethanol industry’s third-largest export market, receiving nearly 20 percent of total exports. Nearly 200 million gallons of ethanol worth more than $300 million were shipped to China last year.
As the letter explained, China’s recent actions have contributed to lower prices for ethanol and DDGS. Ethanol prices have fallen 15 percent since mid-December 2016 while DDGS prices have fallen steadily since the summer of 2016. DDGS prices are currently approximately 40 percent lower than in June 2016.
“President Trump’s message of ‘America First’ with regard to trade policy resonated with the U.S. ethanol industry and farmers across the country,” said RFA President and CEO Bob Dinneen. “China’s growing demand for protein and renewable fuel has triggered significant investment to meet their needs. The sudden and unnecessary reversal in China’s trade policy, and the barriers to U.S. imports they have imposed, have jeopardized our industry and penalized Chinese consumers. They need to end. We look forward to working with the President and his Administration to restore free and fair trade to the betterment of both.”
“The U.S. Grains Council has worked for 35 years in China to help promote export of U.S. grains and their products and, as importantly, the development of the Chinese agriculture sector. We value these partnerships, however several recent moves in China policy are concerning,” said Tom Sleight, USGC president and CEO. “We are working with our industry and will work with the Trump Administration to get our relationship back on an even and fair footing.”
“Growth Energy is extremely disappointed with the decision by China to subject U.S. DDGS to anti-dumping and countervailing duties,” said Growth Energy CEO, Emily Skor. “While DDGS sales into other markets have partially offset the reduction in U.S. shipments to China, the economic loss to the industry and U.S. farmers is significant and underscores the uncertainty of China’s reliability as a trade partner. We will continue working with all parties on this important relationship and look forward to the opportunity of revisiting this decision in the future.”
FARM Environmental Stewardship Releases New Materials in Preparation for Launch
The Farmers Assuring Responsible Management (FARM) Environmental Stewardship Program is releasing educational materials for those interested in utilizing the new FARM Environmental Stewardship (ES) module, launching Feb. 13. FARM Environmental Stewardship is a voluntary tool that provides a comprehensive estimate of the greenhouse gas (GHG) emissions and energy use associated with dairy farming.
The tool is based on a life-cycle assessment (LCA) of fluid milk conducted by the Applied Sustainability Center at the University of Arkansas, incorporating data from more than 500 dairy farms across the United States. The FARM ES module asks a limited set of questions to assess a farm’s carbon and energy footprint – reducing the burden on farmers while still providing reliable, statistically robust estimates.
U.S. dairy farmers have a long-standing history of environmental stewardship. As dairy production has become more efficient, it requires fewer resources to produce the same amount of milk. Compared to 70 years ago, producing a gallon of milk uses 65 percent less water, requires 90 percent less land and has a 63 percent smaller carbon footprint. According to a study by the United Nations Food and Agriculture Organization, dairy farming in North America has the lowest greenhouse gas emissions intensity of any region in the world.
The FARM Environmental Stewardship (ES) module helps dairy companies capture and explain those improvements, and helps dairy farmers identify opportunities for continued improvements that benefit their farm’s bottom line. Cooperatives wishing to participate in the program can opt-in through the existing FARM database, which will allow FARM evaluators to see the assessment in the existing web and mobile data entry applications. FARM will also launch a random sampling protocol for those cooperatives wishing to participate in the program without having to do an assessment on each farm, while still receiving a statistically robust randomized result for their milk supply chain.
NMPF Opposes Proposal to Reduce Dairy Offerings in WIC Program
The National Milk Producers Federation pushed back against a proposal last month from the National Academies of Science (NAS) to reduce the amount of dairy foods offered through the federal assistance WIC program. In criticizing the recommendation, NMPF noted that dairy – an irreplaceable source of nutrition for Americans – is already widely under-consumed among WIC recipients.
Congress requested that the NAS review the WIC food offerings to provide support for aligning the WIC basket with those foods recommended by the Dietary Guidelines for Americans. NMPF noted that milk, cheese and yogurt are “the No. 1 source of nine essential nutrients in children’s diets: protein, calcium, phosphorus, magnesium, potassium, vitamins A, B12, D and riboflavin.
The reason dairy foods are included in the WIC package is that no other food source can deliver such a wide range of vital nutrients to mothers and young children. Cutting back on dairy is a step in the wrong direction,” said Jim Mulhern, President and CEO of NMPF, who noted that milk has always been central to the WIC program’s goal of providing low-income participants with foods and nutrients they typically under-consume.
The NAS report did contain some pro-dairy provisions, such as that yogurt should be easier for women obtain through the WIC program. The NAS recommendations will now be reviewed by USDA. NMPF will work with the International Dairy Foods Association to highlight the value to all Americans of dairy foods.
Implanting Calves, Increasing Gain
With nearly 70 years in the business, Graham Angus Farm in Georgia is known for its quality Angus genetics. The farm runs a commercial cattle operation and uses every edge to improve production and wean more pounds. Kip McMillan, cattle manager, implemented an implant program several years ago and continues to see value and return on his investment.
“The extra gain from using implants translates to extra dollars,” McMillan said. “With an average $2 investment per implant, we can see an added 25 pounds in weight on cattle, which easily brings an extra $50 per head. I feel comfortable that implants are a very solid investment.”
Calving at Graham Angus Farm runs from January through early March. At 45 days old, calves are tagged, tattooed and banded and receive their first round of vaccinations. At this time, calves are implanted with SYNOVEX® C. At weaning when calves are 8 months old, steers are implanted with SYNOVEX S to boost gain.
“Our steers are just as heavy as the bull calves, and I think the implants are making up for that,” McMillan said.
Implants change the rate at which animals deposit muscle, and it makes them more efficient in dietary protein utilization, transferring protein to muscle, explains Daniel Scruggs, DVM, managing veterinarian with Zoetis.
“When calves are on the cow and nursing, gaining 1.5 to 2 pounds a day, you can anticipate you’ll have between 15 and 22 pounds additional weaning weights on the calves, if they’ve been implanted,” Dr. Scruggs said. “Calves receive a lower dose implant because of their size, but like any implant, the magnitude of increased gain is improved with better nutrition.”
Calves are mostly nursing, so implant performance is improved with better milking cows. Creep feed or other supplemental nutrition can improve calf implant performance in less optimally milking cows. If calves aren’t receiving proper nutrition, the benefit of the implant will be reduced.
There is a commonly held misconception of lower prices for implanted cattle.
“Our cattle are always implanted and top every sale we go to,” McMillan said. “The gain you see is going to offset any premium you might receive by not being implanted and selling ‘natural’ calves. Implants are an inexpensive investment and offer a great return. I wouldn’t recommend implanting to other cattlemen if I wasn’t already doing it myself."
AGCO Introduces High Speed White Planters 9800VE Series Planters
AGCO Corporation (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, is bringing to market White Planters™ 9800VE Series planters equipped with SpeedTube® seed tubes from Precision Planting®. The planter will be introduced and on display at the AGCO Exhibit, Lots 7801 and 7823 during the 2017 National Farm Machinery Show in Louisville, Ky.
“To achieve the best yields in corn, producers focus on getting as many acres as possible planted during that very narrow, five-to-10-day ‘optimum planting window’,” says Larry Kuster, senior product specialist for Seeding and Tillage at AGCO. “With SpeedTube on White Planters 9800VE Series planters, they can now achieve precise seed placement of corn at speeds nearly double traditional operating speeds.”
With SpeedTube on White Planters 9800VE Series planters, producers can now achieve precise seed placement of corn at speeds nearly double traditional operating speeds.
In field tests, the 9800VE Series planter with SpeedTube produced the same consistent seed spacing at ground speeds less than four miles per hour, as it did when planting at more than 9.8 miles per hour. That means more acres planted per day and a better chance of hitting the narrow five-to-10-day ‘optimum planting window’ important for top yields.
With traditionally designed seed tubes on planters, high speeds create a ricochet effect as seed travels down the tube, causing poor seed spacing in the furrow. SpeedTube controls the seed all the way from the meter to the furrow. Feeder wheels at the top take control of the seed from the seed meter disk and pull it into a flighted belt that places it in the bottom of the seed trench. The belt speed increases or decreases with planter speed and seeding rates, to ensure the desired seed placement.
The 9800VE Series planters with SpeedTube are the latest outcome from AGCO’s application of planting technology from Precision Planting.
“As more and more producers strive to cover more acres in less time and manage inputs on a prescription basis, AGCO is delivering the equipment, technology and crop production expertise our customers need,” Kuster adds. “White Planters 9800VE Series planters with SpeedTube components are just one example among many recent additions to AGCO’s full-line offering.”
White Planters 9800VE Series planters were introduced in early 2016 and take the renowned seed placement accuracy of White Planters to an even higher level, exemplifying AGCO’s commitment to helping producers improve yields.
The VE Series planters feature the vSet® seed meter, vDrive® electronic drive system, optional automated DeltaForce® hydraulic downforce plus fully integrated 20/20 SeedSense® monitoring so the operator can make needed adjustments to seed precisely, maintain depth, avoid compaction and troubleshoot mechanical problems. FieldView® data collection is available as a factory-installed option and offers real-time, high definition mapping and data collection.
As with other planters in the series, the White Planters 9800VE Series planters may be equipped to fit the needs of nearly any production system.
Wednesday, February 8, 2017
Tuesday February 7 Ag News
No-till, cover crops, and planned grazing workshop to be held on Feb 15th
The annual no-till, cover crops, and planned grazing workshop will be held Wednesday, February 15th in the Lifelong Learning Center on the campus of Northeast Community College in Norfolk.
Registration begins at 9:00 a.m. with coffee and rolls provided by the Lower Elkhorn Natural Resources District (LENRD).
In the morning session, Dan Leininger will be talking about soil moisture monitoring and telemetry. Leininger has worked at the Upper Big Blue NRD for 13 years as a Water Conservationist and was instrumental in developing the Nebraska Agricultural Water Use Network which measures soil moisture and crop evapo-transpiration to schedule irrigation on crops. Leininger also manages the Upper Big Blue NRD’s demonstration farm that uses crop rotation and cover crops to improve soil health which will reduce input costs and increase profit per acre.
Keith Berns will present: Carbonomics – The “Currency” of Biological Systems. Berns combines 20 years of no-till farming with 10 years of teaching Agriculture and Computers. He is no-tilling 2,500 acres of irrigated and dryland corn, soybeans, rye, triticale, peas, sunflowers, and buckwheat. Berns speaks on cover crops and soil health more than 20 times per year to various groups and audiences.
Mary Drewnoski will talk about the impacts of cattle grazing on croplands. Drewnoski is a Beef Systems Specialist with UNL and is researching utilization of corn residue and cover crop forages for backgrounding calves and feeding beef cows. She will talk about how corn residue and cover crop grazing impacts soil health and how grazing cover crops positively impact crop yields.
Lunch will be provided by the LENRD at noon.
The afternoon program will include: Ray Ward - Managing Fertility with Cover Crops in No-till Soils. Ward, founder and president of Ward Laboratories says “Soil Health” is simply a measure of the interaction of plant growth to microbial activity”. Ward will talk about the soil fertility concepts of this “new paradigm” in nutrient management where cover crops are added to continuous no-till cash cropping systems.
Lance Gunderson will present: Integrating Soil Health Tests with Traditional Soil Tests. Gunderson joined Ward Laboratories in the fall of 2002 and is currently the Director of Soil Health and New Test Development. Gunderson will talk about correlating PLFA, Solvita, and Haney tests with standard soil tests in making a “modern day” recommendation for nutrient management plans.
Dan Gillespie, State No-Till Specialist, will discuss Cover Crop Management in corn/soybean rotations, and will highlight management options: seeding, termination, and planting cash crops.
The workshop will end at 3:00 p.m. and is sponsored by: the Natural Resources Conservation Service (NRCS), and the LENRD.
Reserve your seat by Friday, February 10th for the meal count by calling your local NRCS office or the LENRD at 402.371.7313.
AG EDGE CONFERENCE IS FEB. 9-10 IN LINCOLN
The Nebraska Farm Bureau’s (NEFB) Ag Edge Conference will be held at the Embassy Suites in downtown Lincoln, Neb. Feb. 9 and 10.
The conference brings both local and national experts to Lincoln to give farmers and ranchers a competitive edge today for success tomorrow. The weather, global markets, new technologies, and politics all impact agriculture and volatility in the marketplace. The focus of this conference is to give attendees information and tools to help manage these issues.
Thursday, February 9 - 9:00 a.m. - Welcome at Innovation Campus Conference Center
· Steve Nelson, Nebraska Farm Bureau president
· Dan Duncan, executive director of Innovation Campus
9:30 a.m. - Innovation Campus Tours
· Greenhouse Innovation
· Innovation Commons
· Food Innovation
12:00 p.m. - Speaker – Dr. Chuck Hibberd, dean and director of Nebraska Extension
· Dr. Chuck Hibberd, a Lexington, Neb. native and UNL graduate assumed the position of Dean of Cooperative Extension Division Oct. 1, 2012. UNL Extension, with a network of 83 offices serving Nebraska's 93 counties, is part of the Institute of Agriculture and Natural Resources.
1:30 p.m. - Livestock Matrix Panel
· Steve Martin, Department of Agriculture
· Mark McHargue, Matrix Committee Member
· Jen Myers, Merrick County zoning administrator
2:15 p.m. - Washington D.C. Update: Elections and Farm Bill
· Jordan Dux, director of national affairs, NEFB
3:30 p.m. - Latest News from the Legislature
· Bruce Rieker, vice president of governmental relations, NEFB
· Ansley Mick, director of NFBF-PAC and state affairs, NEFB
Friday, February 10 - 8:30 a.m. - 2017 Legislature Outlook
· Sen. Jim Scheer, Speaker of the Legislature
10:00 a.m. - The Fight for Water: Who Regulates Water Quality?
· Don Parrish, senior sirector, American Farm Bureau Federation
· Jim Macy, director, Nebraska Department of Environmental Quality
· Mike Sousek, general manager of Lower Elkhorn NRD
11:15 a.m. - 2017 Weather Outlook – Al Dutcher, state climatologist
· Al Dutcher from the University of Nebraska, will talk about weather patterns during the 2017 growing season.
12:00 p.m. - Speaker – Dr. Ronnie Green, University of Nebraska-Lincoln Chancellor
· Dr. Ronnie Green assumed full authority as the University of Nebraska-Lincoln’s 20th chancellor on May 8, 2016. Prior to being named chancellor, Green served for six years as the Harlan Vice Chancellor of the Institute of Agriculture and Natural Resources.
NCTA presents college dairy program Feb. 21
A new college program aimed at dairy production in Nebraska will be outlined Feb. 21 at the Nebraska State Dairy Association convention in Columbus.
The dairy production curriculum which is slated to be offered starting this fall at the Nebraska College of Technical Agriculture in Curtis will be summarized for dairy producers and industry leaders during the NSDA conference.
“We are pleased to help prepare NCTA graduates for a career with the Nebraska dairy industry,” said NCTA Dean Ron Rosati. “This project began as a result of a statewide initiative to support the growth of Nebraska’s dairy industry. NCTA is delighted to be able to work with the Nebraska Department of Agriculture and the Nebraska State Dairy Association to support this industry.”
Rosati and Doug Smith, chairman of the NCTA Animal Science and Agricultural Education Division, were invited to outline the new statewide academic program at the dairy meeting which draws dairy producers and allied industries, said Rod Johnson, NSDA executive director.
“There is a real need for people who understand the dairy industry,” Johnson said. “Our dairy farmers are constantly looking for employees who have specialized training and the ability to care for dairy animals at any stage of the production cycle.”
The college’s presentations will be at 8:30 a.m. and 4 p.m. at the Ramada Hotel and Conference Center in Columbus. NCTA also will have an information table at the trade show throughout the day.
NCTA is actively recruiting college students now to major in dairy production, Smith said. A partnership between NCTA and South Dakota State University was developed late last year.
Classes will begin Fall, 2017, with three semesters of coursework at NCTA in Curtis, and one semester at Brookings, S.D., where the SDSU Dairy Science department includes dairy production with a commercial scale dairy herd, along with dairy science and processing programs.
New students would be joining the program annually, with semesters staggered between NCTA and SDSU.
“The program involves 76 credit hours of courses, labs, and practical hands-on experience in dairy production and herd management,” said Smith. “Our University courses in Lincoln and Curtis do not include on-site dairy herds so the partnership with SDSU is a win-win industrywide, here for Nebraska residents as well as out-of-state students.”
The University’s Board of Regents recently approved a single tuition rate per credit hour for all NCTA students, which also begins Fall, 2017. The low NCTA tuition rate, currently $121 per credit hour, will apply to Nebraskans and non-Nebraskans, alike.
Conservation practice adoption spikes among soybean farmers
Adoption of conservation practices by Iowa soybean farmers, including the planting of cover crops, spiked in 2016. This is further proof, says the Iowa Soybean Association (ISA), that momentum is building behind the state’s innovative nutrient reduction strategy.
The annual survey of 321 soybean farmers, conducted by West Des Moines-based Blue Compass on behalf of the ISA, also affirms the willingness of producers to participate in multiple conservation practices and monitor their effectiveness.
The findings were released in conjunction with ISA’s annual research conference being held today and tomorrow (Feb. 7-8) in Des Moines.
Nearly 50 percent of soybean farmers completing the online survey said they planted cover crops in 2016, a 20 percent increase from the previous year and more than triple the adoption in 2013.
Another 71 percent practice no-tillage farming, up from 61 percent the previous year and 49 percent just four years ago.
In-field studies by ISA find that tillage reduction results in less surface erosion and improved water quality, specifically related to suspended sediment and phosphorus. Research of the Raccoon River Watershed shows sediment loads peaked in the early 1970's and have decreased ever since.
Also, tile monitoring conducted last year by the ISA documented a 29 percent reduction in nitrate concentrations in fields planted to cover crops.
“Leadership is defined by positive action that truly addresses a need or challenge,” said ISA President Rolland Schnell of Newton. “On the issue of improving water quality, Iowa soybean farmers are demonstrating their commitment by greater adoption of conservation practices.”
All 321 soybean farmers surveyed say they use at least one method of conservation on their farm, with a whopping 77 percent using four or more practices. They include terraces, buffer strips, grassed waterways, strip tillage, bioreactors and saturated buffers.
When asked which conservation practices provide the greatest economic return for their operation, respondents cited rotating crops, using nutrients efficiently and effectively, no or reduced tillage, grassed waterways and terraces.
Farmers were equally split when asked if cover crops have a positive economic net return on their farming operation. Saturated buffers, wetlands and bioreactors were cited as providing the least economic return.
Schnell said this finding recognizes the fact that edge-of-field practices often come with a high price tag and no direct financial return to the farmer or landowner.
“This dilemma underscores the need for making cost-share dollars available for conservation work, particularly for practices providing the most significant benefits downstream,” Schnell said. “We’ll also continue to make the case for dedicated, long-term funding to increase the pace and number of water quality projects being implemented statewide.
He says the survey also reaffirms ISA’s long-held belief that action rather than rhetoric, lawsuits or regulatory schemes is the most effective approach to better water.
“For more than a decade, the ISA has advocated the best approach for sustaining water quality improvements is by demonstrating how conservation practices work on the land and measuring their impact,” Schnell said. “Our survey of farmers shows this approach, funded by individual producers and cost-share programs and backed by the soybean checkoff, is effective and constructive.”
The survey also found:
- Sixty percent of survey respondents said landowners should be directly involved in implementing basic conservation practices.
- By a margin of nearly 2-1, farmers plan to grow more soybeans this year than last. Eighteen percent said they will increase soybean acres while 10 percent said they’ll plant fewer acres. Nearly 70 percent say the number of acres they plant to soybeans will remain unchanged while 2 percent were unsure.
- When asked to predict the long-term profitability of their soybean farm, 45 percent of farmers foresee it remaining status quo. Twenty-five percent believe it will steadily improve while 22 percent predict it will worsen. Eight percent were unsure.
- In terms of survey demographics, 21 percent of respondents grow fewer than 180 acres of soybeans; 46 percent 180-500 acres; 22 percent 500-1,000; 11 percent more than 1,000 acres.
The survey was completed two weeks prior to the Jan. 27 decision by the Iowa Supreme Court prohibiting Des Moines Water Works from seeking damages from drainage districts in three northwest Iowa counties.
Sioux County Extension to Host First in Nation Farm Bill Hearing
Two program specialists with Iowa State University Extension and Outreach in northwest Iowa will host a live webinar of the first hearing on the 2018 Farm Bill reauthorization later this month. Extension beef specialist Beth Doran and extension dairy Fred Hall will host the Feb. 23 webinar in the basement meeting room of the Sioux County Extension Office, located at 400 Central Ave. NW, Suite 700 in Orange City.
There’s no preregistration and seating will be on a first-come, first-seated basis. The time of the hearing will be announced as soon as it is released.
Sen. Pat Roberts of Kansas announced that the hearing will be held on the Kansas State University campus in Manhattan. Roberts, who also is chairman of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, said the hearing will feature testimony from a variety of specifically invited agricultural producers. He said lawmakers need clear direction from producers on what is working and what is not working in farm country.
For more information on the hearing webinar, contact the Sioux County Extension and Outreach office at 712-737-4230.
GIPSA Rule Comment Period Extended
The Trump administration today extended the deadline for submitting comments on a regulation related to the buying and selling of livestock, a move hailed by the National Pork Producers Council, which opposes the Obama-era rule.
The so-called Farmer Fair Practices Rules, written by the U.S. Department of Agriculture’s Grain Inspection, Packers and Stockyards Administration (GIPSA), include two proposed regulations and an interim final rule, comments on which now are due by March 24.
NPPC is most concerned with the latter, which would broaden the scope of the Packers and Stockyards Act (PSA) of 1921 on the use of “unfair, unjustly discriminatory or deceptive practices” and “undue or unreasonable preferences or advantages.” Specifically, the regulation would deem such actions per se violations of federal law even if they didn’t harm competition or cause competitive injury, prerequisites for winning PSA cases.
“We’re very pleased that the Trump administration has extended the time we have to educate regulators about the devastating effects this rule would have on America’s pork producers,” said NPPC President John Weber, a pork producer from Dysart, Iowa. “The regulation likely would restrict the buying and selling of livestock, lead to consolidation of the livestock industry – putting farmers out of business – and increase consumer prices for meat.”
USDA in 2010 proposed a number of PSA provisions – collectively known as the GIPSA Rule – that Congress mandated in the 2008 Farm Bill; eliminating the need to prove a competitive injury to win a PSA lawsuit was not one of them. In fact, Congress rejected such a “no competitive injury” provision during debate on the Farm Bill. Additionally, eight federal appeals courts have held that harm to competition must be an element of a PSA case.
“Eliminating the need to prove injury to competition would prompt an explosion in PSA lawsuits by turning every contract dispute into a federal case subject to triple damages,” Weber said. “The inevitable costs associated with that and the legal uncertainty it would create could lead to further vertical integration of our industry and drive packers to own more of their own hogs.
“That would reduce competition, stifle innovation and provide no benefits to anyone other than trial lawyers and activist groups that will use the rule to attack the livestock industry. And for those reasons, we’ll be asking the administration to withdraw the rule.”
An Informa Economics study found that the GIPSA Rule, including the interim final rule, would cost the U.S. pork industry more than $420 million annually, with most of the costs related to PSA lawsuits brought under the “no competitive injury” provision.
The deadline for submitting public comments on the Farmer Fair Practices Rules was extended to March 24 from Feb. 21; the effective date of the interim final rule was pushed back to April 22 from Feb. 21.
Trump Urged To Start Trade Talks With Japan
Ahead of Japanese Prime Minister Shinzo Abe’s state visit here, the National Cattlemen’s Beef Association and the National Pork Producers Council urged President Trump to begin negotiations on a free trade agreement with Japan.
In a joint letter transmitted today to the White House, NCBA and NPPC asked the president “to initiate free trade agreement negotiations with nations in the Asia-Pacific region beginning with Japan. … As you continue to lead America forward, we want to be a resource for your administration for possible strategies in improving existing and future trade agreements for the benefit of our producers.”
Abe will be in Washington Friday to meet with Trump on a number of matters, including security challenges and bilateral trade.
“A successful, comprehensive agreement with Japan would result in one of the greatest trade agreements for the U.S. pork and beef industries and for many other sectors,” said NCBA President Craig Uden, a cattle rancher from Elwood, Neb.
Said NPPC President John Weber, a pork producer from Dysart, Iowa, “Securing strong market access to Japan and other Asian markets is a priority for the U.S. beef and pork industries, and we appreciate the president’s leadership and dedication to making our products the most competitive around the world.”
For U.S. beef and pork exports, Japan is the highest value international market. In fiscal 2016, Japanese consumers purchased $1.4 billion of U.S. beef products and $1.5 billion of U.S. pork products. Demand in the Asian nation for U.S. beef and pork is very strong despite Japanese tariffs and other import measures that limit market access for both products.
Under terms of the Trans-Pacific Partnership (TPP) agreement, Japan’s 38.5 percent tariff on fresh and frozen beef would have been cut to 9 percent over the agreement’s phase-in period and would have given the U.S. beef industry parity with Australia in the Japanese market. Japan’s tariffs on pork, which are determined through a so-called gate price system, would have been substantially reduced as part of the TPP agreement.
An analysis by the U.S. International Trade Commission found that beef exports to TPP countries, which included the United States, Japan and 10 other Asia-Pacific nations, would grow by $876 million a year by the end of the phase-in period and that most of the growth would be in trade to Japan. Likewise, it found that pork exports to TPP countries would grow by $387 million, with most of the exports going to Japan. Nearly 9,000 U.S. jobs would be generated by increased exports of livestock products, according to the U.S. Department of Agriculture’s export multiplier.
Iowa Farm Groups to Trump: Maintain, Expand NAFTA
Iowa Farm Groups sent a letter to President Trump and his adminstration Monday asking them to maintain and expand upon agriculture sector gains achieved in the North American market, specifically with the North American Free Trade Agreement (NAFTA).
Over the past two decades since NAFTA, U.S. agricultural exports to Canada and Mexico tripled and quintupled, respectively, according to the U.S. Chamber of Commerce. Iowa farmers want to continue to serve this important international customer base and further expand their export opportunities.
In a statement issued by Iowa Corn Growers Association President Kurt Hora, the Iowa groups urged Trump to expand North American trade partnerships because trade policy has a significant impact on Iowa's farmers.
"The success of our rural economies depends on expanding markets for U.S. agricultural products. We look forward to working with President Trump and his Administration in the coming years to ensure that Iowa farmers are both economically viable and globally competitive," Hora said.
For Iowa agriculture to thrive, we need trade agreements that recognize how important it is that the U.S. meat and grain industries including beef, pork, corn, soybeans, and biofuels, have market access at a competitive level in North America and across the globe. As an organization, we are committed to banding with other farm organizations in working with President Trump's administration on ways to both preserve and expand upon agriculture sector gains achieved in the North American market, Hora pledged.
Since its passage more than two decades ago, the North American Free Trade Agreement (NAFTA) has profoundly changed North American agriculture. NAFTA eliminated nearly all tariff and quota restrictions in agriculture resulting in an integrated system between Canada, Mexico and the United States. This has propelled these countries to the top of the U.S. list in importance for agricultural trade. For the past 20 years, U.S. agricultural exports to Canada and Mexico tripled and quintupled, respectively. One in every 10 acres on American farms is planted to feed our neighbors to the north and south, he pointed out.
"Mexico is the number one market for U.S. corn and the number two market for U.S. distiller's dried grains with solubles (DDGS). Canada ranks as our ninth largest customer for U.S. corn, DDGS, and ethanol. To give an example of how NAFTA has benefitted the corn sector, prior to the agreement, Mexico maintained strict controls on grains via licensing requirements and provided guaranteed prices to their domestic producers of many field crops, including corn. Under NAFTA, Mexico transitioned to a system featuring duty-free trade with the U.S. and Canada and rising demand for feed and food has created new opportunities for intraregional trade in grains," Hora said.
The U.S. meat industry has also benefited from duty-free access to Mexico and Canada, he noted. In 2016, the value red meat exports from corn production in Iowa is valued at $315 million (USDA). These are both top five markets for beef and pork, with Mexico being the leading volume market for pork and second largest market for beef.
"Iowa farmers want to continue to serve this important international customer base and further expand our export opportunities. We look forward to working the Trump Administration to preserve and expand our competitive edge in agriculture as he improves this vital agreement," Hora added.
Food And Agriculture Groups Join Together On Letter To President Trump In Support Of Asia Trade
A total of 87 organizations and companies from the food and agriculture sector, which supports more than 15 million jobs nationally, sent President Donald J. Trump a letter this week highlighting the importance of trade with countries in the Asia-Pacific region and the industry’s interest in working with the administration to build strong trade relationships with the world’s largest market for food and agriculture.
“Reducing and eliminating tariffs and other restrictive agricultural policies in this region will help American workers in our sector compete, creating an opportunity to supply Asian markets with high-quality food and agricultural goods,” the letter says.
“We hope your Administration will create such opportunities for our sector by deepening U.S. economic engagement in this critical region while responding to the Asia-only regional trade agreements being negotiated by our foreign competitors. While many in our sector strongly supported the Trans-Pacific Partnership, we hope future agreements build upon the valuable aspects of that agreement to increase our market access in the Asia-Pacific.
“We welcome an opportunity to work with your Administration to ensure that America’s farmers, ranchers, processors and food companies do not fall behind our foreign peers in this vitally important economic region,” the letter adds.
ASA, Farm Groups Stress Importance of Trade in Asia-Pacific Region
In a letter to President Donald Trump Tuesday, the American Soybean Association (ASA), along with 87 other agriculture groups, called on the administration to reduce and eliminate tariffs and other restrictive agricultural policies in the Asia-Pacific region, allowing American workers to supply Asian markets with high-quality food and agricultural goods.
“We hope your Administration will create such opportunities for our sector by deepening U.S. economic engagement in this critical region while responding to the Asia-only regional trade agreements being negotiated by our foreign competitors,” wrote the groups.
The letter stressed job creation in the U.S. farm sector as a result of international trade, noting that the food and agricultural industry from farm to fork employs more than 15 million Americans, and the food and beverage industry alone represents 12 percent of all U.S. manufacturing jobs.
“America’s food and agriculture sector is poised to grow internationally, building upon its well-deserved reputation for high quality products, trusted brands and constant innovation. Our ability to continue to create jobs and support economic growth in rural America depends on maintaining and increasing access to markets outside the United States through existing and future trade agreements,” the letter continued.
ASA remains committed to engage with President Trump and his administration on the importance of international trade as it affect soy growers across the country.
NGFA, food and agriculture groups, ready to work with President Trump on expanding Asia-Pacific trade
The National Grain and Feed Association (NGFA), with a total of 87 organizations and companies from the food and agriculture sector, sent President Donald Trump a letter this week expressing eagerness to work with his administration to expand access to markets in the Asia-Pacific region.
"Reducing and eliminating tariffs and other restrictive agricultural policies in this region will help American workers in our sector compete, creating an opportunity to supply Asian markets with high-quality food and agricultural goods," the letter states, adding that the food and agriculture sector supports more than 15 million U.S. jobs. The letter also noted that the U.S. food and beverage industry alone constitutes 12 percent of all U.S. manufacturing jobs, making it the largest employer in the U.S. manufacturing sector.
The letter notes that more than 95 percent of the agricultural industry's current and potential customers live outside the United States, making increased access to international markets essential for future success. While many agricultural companies and organizations strongly supported the Trans-Pacific Partnership (TPP) negotiations, the letter was forward-looking and emphasized that future agreements can build upon the valuable aspects of the TPP agreement.
"America's food and agricultural sector is poised to grow internationally, building upon its well-deserved reputation for high-quality products, trusted brands and constant innovation," the letter states. "Our ability to continue to create jobs and support economic growth in rural America depends on maintaining and increasing access to markets outside the United States through existing and future trade agreements.
"We hope your Administration will create such opportunities for our sector by deepening U.S. economic engagement in this critical region while responding to the Asia-only regional trade agreements being negotiated by our foreign competitors," the letter stated. "We welcome an opportunity to work with your administration to ensure that America's farmers, ranchers, processors and food companies do not fall behind our foreign peers in this vitally important economic region."
Commodity Classic Trade Show Features 400+ Exhibitors; Wide Array of Equipment, Technology & Innovation
With a trade show featuring more than 400 exhibitors commanding more than 2,200 booth spaces, Commodity Classic attendees are strongly encouraged to wear comfortable shoes!
The 2017 Commodity Classic, the nation’s largest farmer-led, farmer-focused convention and trade show, will be held March 2-4, 2017, in San Antonio, Tex.
“Agribusiness companies know that Commodity Classic attracts the nation’s best farmers, so they bring their best equipment, technology, innovations and people,” said Kevin Ross, an Iowa farmer and co-chair of the 2017 Commodity Classic. “That means you can engage in deep conversations with representatives of the companies you do business with, get answers to your questions and provide input to them on their products and services.”
While many of the world’s leading agribusiness companies are on site, so are scores of other smaller exhibitors offering a wide range of technology, equipment and innovation. “We really encourage farmers to visit the smaller booths on the trade show floor,” Ross said. “Many times that’s where you’ll discover the emerging technologies and out-of-the-box ideas that could be just what you’re looking for to help you address challenges in your operation.”
Admission to the trade show is included with the registration fee.
The trade show is just one of the many reasons to attend Commodity Classic. In addition to the General Session, Commodity Classic offers a wide range of educational sessions including Learning Centers, What’s New Sessions, Mini What’s New Sessions, Early Riser Sessions and the AG CONNECT Main Stage on the trade show floor. Commodity Classic also includes entertainment and the opportunity to network with thousands of America’s best farmers.
Detailed information on all educational sessions and the entire Commodity Classic schedule are available at www.commodityclassic.com. Online registration and housing are also available on the website.
Whitehead Named as National Biodiesel Board Chief Operating Officer
The National Biodiesel Board (NBB) today named Doug Whitehead as its Chief Operating Officer. Whitehead joins the executive team after 10 years in various roles with the organization, most recently as the Director of Operations and Membership.
“Doug has admirably served the biodiesel industry in his various roles at NBB over the years and his experience and expertise in operations, membership, strategic thinking, and management uniquely position us to continue our growth as an organization and as an industry,” said NBB CEO Donnell Rehagen. “His deep understanding of the day-to-day operations of the organization allow us to continue serving our members in a highly effective, efficient way as a member association.”
As Director of Operations and Membership, Whitehead managed the planning, implementation, administration, and reporting of all contracts for funding and subcontracting. He was also responsible for recruiting new members to the organization and served as the main point of contact for current members.
“I’m extremely excited to serve the biodiesel industry in my new executive role with NBB,” said Whitehead. “We have a tremendous team that is committed to growing the market for America’s advanced biofuel. It will be critical to continue to face our challenges head on to maintain our more than 2-billion-gallon market share.”
The announcement comes as US consumers saw record volumes of advanced biofuels in the US marketplace – almost 2.9 billion gallons of biodiesel and renewable diesel in 2016. The industry supports 64,000 US jobs and $11.42 billion in total economic impact according to independent economic analysis conducted by LMC International. Based in Jefferson City, Mo., the National Biodiesel Board is the U.S. trade association representing the entire biodiesel value chain, including producers, feedstock suppliers, and fuel distributors, as well as the U.S. renewable diesel industry. It counts more than 150 companies and organizations among its membership.
Whitehead is a graduate of the Professional School of Architecture at Kansas State University. Prior to his time with NBB, he was a business development and management consultant where he worked with a wide range of non-profit and for-profit organizations including “bricks and mortar” projects, technology, strategic planning, budgeting, issues management, and government affairs.
Jefferson City is Doug’s hometown, where he and his wife Alana have raised their two children and been active members of the community. He served for 15 years on the Jefferson City Public Schools board of education, served as president of the Missouri School Board’s Association in 2014/2015, and has participated in a number of charitable foundations, boards, and executive committees including the YMCA as past Chair and currently a member of the Jefferson City YMCA Board of Trustees.
Holstein Association Identifies Record Number of Cattle in '16
Holstein Association USA, Inc. officially identified an all-time record number of Holstein cattle in 2016 through their registration and Basic ID programs. In total, 690,553 Holsteins were identified in 2016, which is 108,867 more or 18 percent higher than 2015. Registrations totaled 377,305 and 313,248 head were enrolled in the Basic ID program.
The Basic ID program is a stepping stone to full registry status. Participation in Holstein Association USA identification programs has never been higher.
"These statistics speak to the value dairy producers realize from Holstein Association identification programs," said Holstein Association CEO John M. Meyer. "As we all know, the dairy economy was tough in 2016. Even so, dairymen across the country continued to increase their participation in our programs."
He adds that one of the great things about being in the Holstein business is that it has a bountiful array of diversified genetics to choose from that allows dairies to be the best in class in any dairy market they want to be in.
Tyson Foods Quarterly Profit Jumps Nearly 30-Percent
Tyson Foods Inc. reported a 28.6 percent rise in quarterly profit, helped by higher exports of beef and pork and lower livestock costs.
Net income attributable to Tyson rose to $593 million, or $1.59 per share, in the first quarter ended Dec. 31, from $461 million, or $1.15 per share, a year earlier.
Sales rose marginally to $9.18 billion from $9.15 billion.
AGCO Reports Fourth Quarter Results
AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, reported net sales of approximately $2.1 billion for the fourth quarter of 2016, an increase of approximately 6.9% compared to net sales of approximately $2.0 billion for the fourth quarter of 2015. Reported net income was $0.77 per share and adjusted net income, which excludes restructuring expenses, was $0.84 per share for the fourth quarter of 2016. These results compare to reported net income of $0.73 per share and adjusted net income, which excludes restructuring expenses, of $0.80 per share for the fourth quarter of 2015. Excluding unfavorable currency translation impacts of approximately 1.8%, net sales in the fourth quarter of 2016 increased approximately 8.7% compared to the fourth quarter of 2015.
Net sales for the full year of 2016 were approximately $7.4 billion, a decrease of approximately 0.8% compared to 2015. Excluding the unfavorable impact of currency translation of approximately 2.6%, net sales for the full year of 2016 increased approximately 1.9% compared to 2015. For the full year of 2016, reported net income was $1.96 per share and adjusted net income, which excludes restructuring expenses and a non-cash deferred income tax adjustment, was $2.47 per share. These results compare to reported net income of $3.06 per share and adjusted net income, which excludes restructuring expenses, of $3.24 per share for the full year of 2015.
Highlights
- Reported fourth quarter regional sales results(1): Europe/Africa/Middle East (“EAME”) (2.0)%, North America +3.0%, South America +63.6%, Asia/Pacific (“APAC”) +21.8%
- Constant currency fourth quarter regional sales results(1)(2): EAME +1.8%, North America +4.4%, South America +53.9%, APAC +22.7%
- Generated $370 million in cash flow from operations and $168 million in free cash flow in 2016
- Share repurchase program resulted in reduction of 4.4 million shares during 2016
- New $300 million share repurchase program authorized through December 2019
- Quarterly dividend increased to $0.14 per share effective first quarter 2017
- Full-year earnings per share forecast for 2017 remains at approximately $2.50
(1) As compared to fourth quarter 2015
(2) Excludes currency translation impact. See reconciliation of Non-GAAP measures in appendix.
“The past year was a challenging year due to continued weakening global market demand for agricultural equipment,” stated Martin Richenhagen, AGCO’s Chairman, President and Chief Executive Officer. “Despite these difficult conditions, our solid operational execution during 2016 allowed us to exceed our financial targets and be well-positioned to seek new opportunities for growth. Looking forward to 2017, industry conditions are expected to remain near the bottom of the agricultural equipment cycle in key markets. In response to the industry challenges, our focus continues to be on cost and expense reduction through globalizing processes, reducing complexity and better leveraging scale. In addition to diligent cost management, we will continue to make long-term investments to raise the efficiency of our factories, improve our service levels and strengthen our product offering.”
The annual no-till, cover crops, and planned grazing workshop will be held Wednesday, February 15th in the Lifelong Learning Center on the campus of Northeast Community College in Norfolk.
Registration begins at 9:00 a.m. with coffee and rolls provided by the Lower Elkhorn Natural Resources District (LENRD).
In the morning session, Dan Leininger will be talking about soil moisture monitoring and telemetry. Leininger has worked at the Upper Big Blue NRD for 13 years as a Water Conservationist and was instrumental in developing the Nebraska Agricultural Water Use Network which measures soil moisture and crop evapo-transpiration to schedule irrigation on crops. Leininger also manages the Upper Big Blue NRD’s demonstration farm that uses crop rotation and cover crops to improve soil health which will reduce input costs and increase profit per acre.
Keith Berns will present: Carbonomics – The “Currency” of Biological Systems. Berns combines 20 years of no-till farming with 10 years of teaching Agriculture and Computers. He is no-tilling 2,500 acres of irrigated and dryland corn, soybeans, rye, triticale, peas, sunflowers, and buckwheat. Berns speaks on cover crops and soil health more than 20 times per year to various groups and audiences.
Mary Drewnoski will talk about the impacts of cattle grazing on croplands. Drewnoski is a Beef Systems Specialist with UNL and is researching utilization of corn residue and cover crop forages for backgrounding calves and feeding beef cows. She will talk about how corn residue and cover crop grazing impacts soil health and how grazing cover crops positively impact crop yields.
Lunch will be provided by the LENRD at noon.
The afternoon program will include: Ray Ward - Managing Fertility with Cover Crops in No-till Soils. Ward, founder and president of Ward Laboratories says “Soil Health” is simply a measure of the interaction of plant growth to microbial activity”. Ward will talk about the soil fertility concepts of this “new paradigm” in nutrient management where cover crops are added to continuous no-till cash cropping systems.
Lance Gunderson will present: Integrating Soil Health Tests with Traditional Soil Tests. Gunderson joined Ward Laboratories in the fall of 2002 and is currently the Director of Soil Health and New Test Development. Gunderson will talk about correlating PLFA, Solvita, and Haney tests with standard soil tests in making a “modern day” recommendation for nutrient management plans.
Dan Gillespie, State No-Till Specialist, will discuss Cover Crop Management in corn/soybean rotations, and will highlight management options: seeding, termination, and planting cash crops.
The workshop will end at 3:00 p.m. and is sponsored by: the Natural Resources Conservation Service (NRCS), and the LENRD.
Reserve your seat by Friday, February 10th for the meal count by calling your local NRCS office or the LENRD at 402.371.7313.
AG EDGE CONFERENCE IS FEB. 9-10 IN LINCOLN
The Nebraska Farm Bureau’s (NEFB) Ag Edge Conference will be held at the Embassy Suites in downtown Lincoln, Neb. Feb. 9 and 10.
The conference brings both local and national experts to Lincoln to give farmers and ranchers a competitive edge today for success tomorrow. The weather, global markets, new technologies, and politics all impact agriculture and volatility in the marketplace. The focus of this conference is to give attendees information and tools to help manage these issues.
Thursday, February 9 - 9:00 a.m. - Welcome at Innovation Campus Conference Center
· Steve Nelson, Nebraska Farm Bureau president
· Dan Duncan, executive director of Innovation Campus
9:30 a.m. - Innovation Campus Tours
· Greenhouse Innovation
· Innovation Commons
· Food Innovation
12:00 p.m. - Speaker – Dr. Chuck Hibberd, dean and director of Nebraska Extension
· Dr. Chuck Hibberd, a Lexington, Neb. native and UNL graduate assumed the position of Dean of Cooperative Extension Division Oct. 1, 2012. UNL Extension, with a network of 83 offices serving Nebraska's 93 counties, is part of the Institute of Agriculture and Natural Resources.
1:30 p.m. - Livestock Matrix Panel
· Steve Martin, Department of Agriculture
· Mark McHargue, Matrix Committee Member
· Jen Myers, Merrick County zoning administrator
2:15 p.m. - Washington D.C. Update: Elections and Farm Bill
· Jordan Dux, director of national affairs, NEFB
3:30 p.m. - Latest News from the Legislature
· Bruce Rieker, vice president of governmental relations, NEFB
· Ansley Mick, director of NFBF-PAC and state affairs, NEFB
Friday, February 10 - 8:30 a.m. - 2017 Legislature Outlook
· Sen. Jim Scheer, Speaker of the Legislature
10:00 a.m. - The Fight for Water: Who Regulates Water Quality?
· Don Parrish, senior sirector, American Farm Bureau Federation
· Jim Macy, director, Nebraska Department of Environmental Quality
· Mike Sousek, general manager of Lower Elkhorn NRD
11:15 a.m. - 2017 Weather Outlook – Al Dutcher, state climatologist
· Al Dutcher from the University of Nebraska, will talk about weather patterns during the 2017 growing season.
12:00 p.m. - Speaker – Dr. Ronnie Green, University of Nebraska-Lincoln Chancellor
· Dr. Ronnie Green assumed full authority as the University of Nebraska-Lincoln’s 20th chancellor on May 8, 2016. Prior to being named chancellor, Green served for six years as the Harlan Vice Chancellor of the Institute of Agriculture and Natural Resources.
NCTA presents college dairy program Feb. 21
A new college program aimed at dairy production in Nebraska will be outlined Feb. 21 at the Nebraska State Dairy Association convention in Columbus.
The dairy production curriculum which is slated to be offered starting this fall at the Nebraska College of Technical Agriculture in Curtis will be summarized for dairy producers and industry leaders during the NSDA conference.
“We are pleased to help prepare NCTA graduates for a career with the Nebraska dairy industry,” said NCTA Dean Ron Rosati. “This project began as a result of a statewide initiative to support the growth of Nebraska’s dairy industry. NCTA is delighted to be able to work with the Nebraska Department of Agriculture and the Nebraska State Dairy Association to support this industry.”
Rosati and Doug Smith, chairman of the NCTA Animal Science and Agricultural Education Division, were invited to outline the new statewide academic program at the dairy meeting which draws dairy producers and allied industries, said Rod Johnson, NSDA executive director.
“There is a real need for people who understand the dairy industry,” Johnson said. “Our dairy farmers are constantly looking for employees who have specialized training and the ability to care for dairy animals at any stage of the production cycle.”
The college’s presentations will be at 8:30 a.m. and 4 p.m. at the Ramada Hotel and Conference Center in Columbus. NCTA also will have an information table at the trade show throughout the day.
NCTA is actively recruiting college students now to major in dairy production, Smith said. A partnership between NCTA and South Dakota State University was developed late last year.
Classes will begin Fall, 2017, with three semesters of coursework at NCTA in Curtis, and one semester at Brookings, S.D., where the SDSU Dairy Science department includes dairy production with a commercial scale dairy herd, along with dairy science and processing programs.
New students would be joining the program annually, with semesters staggered between NCTA and SDSU.
“The program involves 76 credit hours of courses, labs, and practical hands-on experience in dairy production and herd management,” said Smith. “Our University courses in Lincoln and Curtis do not include on-site dairy herds so the partnership with SDSU is a win-win industrywide, here for Nebraska residents as well as out-of-state students.”
The University’s Board of Regents recently approved a single tuition rate per credit hour for all NCTA students, which also begins Fall, 2017. The low NCTA tuition rate, currently $121 per credit hour, will apply to Nebraskans and non-Nebraskans, alike.
Conservation practice adoption spikes among soybean farmers
Adoption of conservation practices by Iowa soybean farmers, including the planting of cover crops, spiked in 2016. This is further proof, says the Iowa Soybean Association (ISA), that momentum is building behind the state’s innovative nutrient reduction strategy.
The annual survey of 321 soybean farmers, conducted by West Des Moines-based Blue Compass on behalf of the ISA, also affirms the willingness of producers to participate in multiple conservation practices and monitor their effectiveness.
The findings were released in conjunction with ISA’s annual research conference being held today and tomorrow (Feb. 7-8) in Des Moines.
Nearly 50 percent of soybean farmers completing the online survey said they planted cover crops in 2016, a 20 percent increase from the previous year and more than triple the adoption in 2013.
Another 71 percent practice no-tillage farming, up from 61 percent the previous year and 49 percent just four years ago.
In-field studies by ISA find that tillage reduction results in less surface erosion and improved water quality, specifically related to suspended sediment and phosphorus. Research of the Raccoon River Watershed shows sediment loads peaked in the early 1970's and have decreased ever since.
Also, tile monitoring conducted last year by the ISA documented a 29 percent reduction in nitrate concentrations in fields planted to cover crops.
“Leadership is defined by positive action that truly addresses a need or challenge,” said ISA President Rolland Schnell of Newton. “On the issue of improving water quality, Iowa soybean farmers are demonstrating their commitment by greater adoption of conservation practices.”
All 321 soybean farmers surveyed say they use at least one method of conservation on their farm, with a whopping 77 percent using four or more practices. They include terraces, buffer strips, grassed waterways, strip tillage, bioreactors and saturated buffers.
When asked which conservation practices provide the greatest economic return for their operation, respondents cited rotating crops, using nutrients efficiently and effectively, no or reduced tillage, grassed waterways and terraces.
Farmers were equally split when asked if cover crops have a positive economic net return on their farming operation. Saturated buffers, wetlands and bioreactors were cited as providing the least economic return.
Schnell said this finding recognizes the fact that edge-of-field practices often come with a high price tag and no direct financial return to the farmer or landowner.
“This dilemma underscores the need for making cost-share dollars available for conservation work, particularly for practices providing the most significant benefits downstream,” Schnell said. “We’ll also continue to make the case for dedicated, long-term funding to increase the pace and number of water quality projects being implemented statewide.
He says the survey also reaffirms ISA’s long-held belief that action rather than rhetoric, lawsuits or regulatory schemes is the most effective approach to better water.
“For more than a decade, the ISA has advocated the best approach for sustaining water quality improvements is by demonstrating how conservation practices work on the land and measuring their impact,” Schnell said. “Our survey of farmers shows this approach, funded by individual producers and cost-share programs and backed by the soybean checkoff, is effective and constructive.”
The survey also found:
- Sixty percent of survey respondents said landowners should be directly involved in implementing basic conservation practices.
- By a margin of nearly 2-1, farmers plan to grow more soybeans this year than last. Eighteen percent said they will increase soybean acres while 10 percent said they’ll plant fewer acres. Nearly 70 percent say the number of acres they plant to soybeans will remain unchanged while 2 percent were unsure.
- When asked to predict the long-term profitability of their soybean farm, 45 percent of farmers foresee it remaining status quo. Twenty-five percent believe it will steadily improve while 22 percent predict it will worsen. Eight percent were unsure.
- In terms of survey demographics, 21 percent of respondents grow fewer than 180 acres of soybeans; 46 percent 180-500 acres; 22 percent 500-1,000; 11 percent more than 1,000 acres.
The survey was completed two weeks prior to the Jan. 27 decision by the Iowa Supreme Court prohibiting Des Moines Water Works from seeking damages from drainage districts in three northwest Iowa counties.
Sioux County Extension to Host First in Nation Farm Bill Hearing
Two program specialists with Iowa State University Extension and Outreach in northwest Iowa will host a live webinar of the first hearing on the 2018 Farm Bill reauthorization later this month. Extension beef specialist Beth Doran and extension dairy Fred Hall will host the Feb. 23 webinar in the basement meeting room of the Sioux County Extension Office, located at 400 Central Ave. NW, Suite 700 in Orange City.
There’s no preregistration and seating will be on a first-come, first-seated basis. The time of the hearing will be announced as soon as it is released.
Sen. Pat Roberts of Kansas announced that the hearing will be held on the Kansas State University campus in Manhattan. Roberts, who also is chairman of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, said the hearing will feature testimony from a variety of specifically invited agricultural producers. He said lawmakers need clear direction from producers on what is working and what is not working in farm country.
For more information on the hearing webinar, contact the Sioux County Extension and Outreach office at 712-737-4230.
GIPSA Rule Comment Period Extended
The Trump administration today extended the deadline for submitting comments on a regulation related to the buying and selling of livestock, a move hailed by the National Pork Producers Council, which opposes the Obama-era rule.
The so-called Farmer Fair Practices Rules, written by the U.S. Department of Agriculture’s Grain Inspection, Packers and Stockyards Administration (GIPSA), include two proposed regulations and an interim final rule, comments on which now are due by March 24.
NPPC is most concerned with the latter, which would broaden the scope of the Packers and Stockyards Act (PSA) of 1921 on the use of “unfair, unjustly discriminatory or deceptive practices” and “undue or unreasonable preferences or advantages.” Specifically, the regulation would deem such actions per se violations of federal law even if they didn’t harm competition or cause competitive injury, prerequisites for winning PSA cases.
“We’re very pleased that the Trump administration has extended the time we have to educate regulators about the devastating effects this rule would have on America’s pork producers,” said NPPC President John Weber, a pork producer from Dysart, Iowa. “The regulation likely would restrict the buying and selling of livestock, lead to consolidation of the livestock industry – putting farmers out of business – and increase consumer prices for meat.”
USDA in 2010 proposed a number of PSA provisions – collectively known as the GIPSA Rule – that Congress mandated in the 2008 Farm Bill; eliminating the need to prove a competitive injury to win a PSA lawsuit was not one of them. In fact, Congress rejected such a “no competitive injury” provision during debate on the Farm Bill. Additionally, eight federal appeals courts have held that harm to competition must be an element of a PSA case.
“Eliminating the need to prove injury to competition would prompt an explosion in PSA lawsuits by turning every contract dispute into a federal case subject to triple damages,” Weber said. “The inevitable costs associated with that and the legal uncertainty it would create could lead to further vertical integration of our industry and drive packers to own more of their own hogs.
“That would reduce competition, stifle innovation and provide no benefits to anyone other than trial lawyers and activist groups that will use the rule to attack the livestock industry. And for those reasons, we’ll be asking the administration to withdraw the rule.”
An Informa Economics study found that the GIPSA Rule, including the interim final rule, would cost the U.S. pork industry more than $420 million annually, with most of the costs related to PSA lawsuits brought under the “no competitive injury” provision.
The deadline for submitting public comments on the Farmer Fair Practices Rules was extended to March 24 from Feb. 21; the effective date of the interim final rule was pushed back to April 22 from Feb. 21.
Trump Urged To Start Trade Talks With Japan
Ahead of Japanese Prime Minister Shinzo Abe’s state visit here, the National Cattlemen’s Beef Association and the National Pork Producers Council urged President Trump to begin negotiations on a free trade agreement with Japan.
In a joint letter transmitted today to the White House, NCBA and NPPC asked the president “to initiate free trade agreement negotiations with nations in the Asia-Pacific region beginning with Japan. … As you continue to lead America forward, we want to be a resource for your administration for possible strategies in improving existing and future trade agreements for the benefit of our producers.”
Abe will be in Washington Friday to meet with Trump on a number of matters, including security challenges and bilateral trade.
“A successful, comprehensive agreement with Japan would result in one of the greatest trade agreements for the U.S. pork and beef industries and for many other sectors,” said NCBA President Craig Uden, a cattle rancher from Elwood, Neb.
Said NPPC President John Weber, a pork producer from Dysart, Iowa, “Securing strong market access to Japan and other Asian markets is a priority for the U.S. beef and pork industries, and we appreciate the president’s leadership and dedication to making our products the most competitive around the world.”
For U.S. beef and pork exports, Japan is the highest value international market. In fiscal 2016, Japanese consumers purchased $1.4 billion of U.S. beef products and $1.5 billion of U.S. pork products. Demand in the Asian nation for U.S. beef and pork is very strong despite Japanese tariffs and other import measures that limit market access for both products.
Under terms of the Trans-Pacific Partnership (TPP) agreement, Japan’s 38.5 percent tariff on fresh and frozen beef would have been cut to 9 percent over the agreement’s phase-in period and would have given the U.S. beef industry parity with Australia in the Japanese market. Japan’s tariffs on pork, which are determined through a so-called gate price system, would have been substantially reduced as part of the TPP agreement.
An analysis by the U.S. International Trade Commission found that beef exports to TPP countries, which included the United States, Japan and 10 other Asia-Pacific nations, would grow by $876 million a year by the end of the phase-in period and that most of the growth would be in trade to Japan. Likewise, it found that pork exports to TPP countries would grow by $387 million, with most of the exports going to Japan. Nearly 9,000 U.S. jobs would be generated by increased exports of livestock products, according to the U.S. Department of Agriculture’s export multiplier.
Iowa Farm Groups to Trump: Maintain, Expand NAFTA
Iowa Farm Groups sent a letter to President Trump and his adminstration Monday asking them to maintain and expand upon agriculture sector gains achieved in the North American market, specifically with the North American Free Trade Agreement (NAFTA).
Over the past two decades since NAFTA, U.S. agricultural exports to Canada and Mexico tripled and quintupled, respectively, according to the U.S. Chamber of Commerce. Iowa farmers want to continue to serve this important international customer base and further expand their export opportunities.
In a statement issued by Iowa Corn Growers Association President Kurt Hora, the Iowa groups urged Trump to expand North American trade partnerships because trade policy has a significant impact on Iowa's farmers.
"The success of our rural economies depends on expanding markets for U.S. agricultural products. We look forward to working with President Trump and his Administration in the coming years to ensure that Iowa farmers are both economically viable and globally competitive," Hora said.
For Iowa agriculture to thrive, we need trade agreements that recognize how important it is that the U.S. meat and grain industries including beef, pork, corn, soybeans, and biofuels, have market access at a competitive level in North America and across the globe. As an organization, we are committed to banding with other farm organizations in working with President Trump's administration on ways to both preserve and expand upon agriculture sector gains achieved in the North American market, Hora pledged.
Since its passage more than two decades ago, the North American Free Trade Agreement (NAFTA) has profoundly changed North American agriculture. NAFTA eliminated nearly all tariff and quota restrictions in agriculture resulting in an integrated system between Canada, Mexico and the United States. This has propelled these countries to the top of the U.S. list in importance for agricultural trade. For the past 20 years, U.S. agricultural exports to Canada and Mexico tripled and quintupled, respectively. One in every 10 acres on American farms is planted to feed our neighbors to the north and south, he pointed out.
"Mexico is the number one market for U.S. corn and the number two market for U.S. distiller's dried grains with solubles (DDGS). Canada ranks as our ninth largest customer for U.S. corn, DDGS, and ethanol. To give an example of how NAFTA has benefitted the corn sector, prior to the agreement, Mexico maintained strict controls on grains via licensing requirements and provided guaranteed prices to their domestic producers of many field crops, including corn. Under NAFTA, Mexico transitioned to a system featuring duty-free trade with the U.S. and Canada and rising demand for feed and food has created new opportunities for intraregional trade in grains," Hora said.
The U.S. meat industry has also benefited from duty-free access to Mexico and Canada, he noted. In 2016, the value red meat exports from corn production in Iowa is valued at $315 million (USDA). These are both top five markets for beef and pork, with Mexico being the leading volume market for pork and second largest market for beef.
"Iowa farmers want to continue to serve this important international customer base and further expand our export opportunities. We look forward to working the Trump Administration to preserve and expand our competitive edge in agriculture as he improves this vital agreement," Hora added.
Food And Agriculture Groups Join Together On Letter To President Trump In Support Of Asia Trade
A total of 87 organizations and companies from the food and agriculture sector, which supports more than 15 million jobs nationally, sent President Donald J. Trump a letter this week highlighting the importance of trade with countries in the Asia-Pacific region and the industry’s interest in working with the administration to build strong trade relationships with the world’s largest market for food and agriculture.
“Reducing and eliminating tariffs and other restrictive agricultural policies in this region will help American workers in our sector compete, creating an opportunity to supply Asian markets with high-quality food and agricultural goods,” the letter says.
“We hope your Administration will create such opportunities for our sector by deepening U.S. economic engagement in this critical region while responding to the Asia-only regional trade agreements being negotiated by our foreign competitors. While many in our sector strongly supported the Trans-Pacific Partnership, we hope future agreements build upon the valuable aspects of that agreement to increase our market access in the Asia-Pacific.
“We welcome an opportunity to work with your Administration to ensure that America’s farmers, ranchers, processors and food companies do not fall behind our foreign peers in this vitally important economic region,” the letter adds.
ASA, Farm Groups Stress Importance of Trade in Asia-Pacific Region
In a letter to President Donald Trump Tuesday, the American Soybean Association (ASA), along with 87 other agriculture groups, called on the administration to reduce and eliminate tariffs and other restrictive agricultural policies in the Asia-Pacific region, allowing American workers to supply Asian markets with high-quality food and agricultural goods.
“We hope your Administration will create such opportunities for our sector by deepening U.S. economic engagement in this critical region while responding to the Asia-only regional trade agreements being negotiated by our foreign competitors,” wrote the groups.
The letter stressed job creation in the U.S. farm sector as a result of international trade, noting that the food and agricultural industry from farm to fork employs more than 15 million Americans, and the food and beverage industry alone represents 12 percent of all U.S. manufacturing jobs.
“America’s food and agriculture sector is poised to grow internationally, building upon its well-deserved reputation for high quality products, trusted brands and constant innovation. Our ability to continue to create jobs and support economic growth in rural America depends on maintaining and increasing access to markets outside the United States through existing and future trade agreements,” the letter continued.
ASA remains committed to engage with President Trump and his administration on the importance of international trade as it affect soy growers across the country.
NGFA, food and agriculture groups, ready to work with President Trump on expanding Asia-Pacific trade
The National Grain and Feed Association (NGFA), with a total of 87 organizations and companies from the food and agriculture sector, sent President Donald Trump a letter this week expressing eagerness to work with his administration to expand access to markets in the Asia-Pacific region.
"Reducing and eliminating tariffs and other restrictive agricultural policies in this region will help American workers in our sector compete, creating an opportunity to supply Asian markets with high-quality food and agricultural goods," the letter states, adding that the food and agriculture sector supports more than 15 million U.S. jobs. The letter also noted that the U.S. food and beverage industry alone constitutes 12 percent of all U.S. manufacturing jobs, making it the largest employer in the U.S. manufacturing sector.
The letter notes that more than 95 percent of the agricultural industry's current and potential customers live outside the United States, making increased access to international markets essential for future success. While many agricultural companies and organizations strongly supported the Trans-Pacific Partnership (TPP) negotiations, the letter was forward-looking and emphasized that future agreements can build upon the valuable aspects of the TPP agreement.
"America's food and agricultural sector is poised to grow internationally, building upon its well-deserved reputation for high-quality products, trusted brands and constant innovation," the letter states. "Our ability to continue to create jobs and support economic growth in rural America depends on maintaining and increasing access to markets outside the United States through existing and future trade agreements.
"We hope your Administration will create such opportunities for our sector by deepening U.S. economic engagement in this critical region while responding to the Asia-only regional trade agreements being negotiated by our foreign competitors," the letter stated. "We welcome an opportunity to work with your administration to ensure that America's farmers, ranchers, processors and food companies do not fall behind our foreign peers in this vitally important economic region."
Commodity Classic Trade Show Features 400+ Exhibitors; Wide Array of Equipment, Technology & Innovation
With a trade show featuring more than 400 exhibitors commanding more than 2,200 booth spaces, Commodity Classic attendees are strongly encouraged to wear comfortable shoes!
The 2017 Commodity Classic, the nation’s largest farmer-led, farmer-focused convention and trade show, will be held March 2-4, 2017, in San Antonio, Tex.
“Agribusiness companies know that Commodity Classic attracts the nation’s best farmers, so they bring their best equipment, technology, innovations and people,” said Kevin Ross, an Iowa farmer and co-chair of the 2017 Commodity Classic. “That means you can engage in deep conversations with representatives of the companies you do business with, get answers to your questions and provide input to them on their products and services.”
While many of the world’s leading agribusiness companies are on site, so are scores of other smaller exhibitors offering a wide range of technology, equipment and innovation. “We really encourage farmers to visit the smaller booths on the trade show floor,” Ross said. “Many times that’s where you’ll discover the emerging technologies and out-of-the-box ideas that could be just what you’re looking for to help you address challenges in your operation.”
Admission to the trade show is included with the registration fee.
The trade show is just one of the many reasons to attend Commodity Classic. In addition to the General Session, Commodity Classic offers a wide range of educational sessions including Learning Centers, What’s New Sessions, Mini What’s New Sessions, Early Riser Sessions and the AG CONNECT Main Stage on the trade show floor. Commodity Classic also includes entertainment and the opportunity to network with thousands of America’s best farmers.
Detailed information on all educational sessions and the entire Commodity Classic schedule are available at www.commodityclassic.com. Online registration and housing are also available on the website.
Whitehead Named as National Biodiesel Board Chief Operating Officer
The National Biodiesel Board (NBB) today named Doug Whitehead as its Chief Operating Officer. Whitehead joins the executive team after 10 years in various roles with the organization, most recently as the Director of Operations and Membership.
“Doug has admirably served the biodiesel industry in his various roles at NBB over the years and his experience and expertise in operations, membership, strategic thinking, and management uniquely position us to continue our growth as an organization and as an industry,” said NBB CEO Donnell Rehagen. “His deep understanding of the day-to-day operations of the organization allow us to continue serving our members in a highly effective, efficient way as a member association.”
As Director of Operations and Membership, Whitehead managed the planning, implementation, administration, and reporting of all contracts for funding and subcontracting. He was also responsible for recruiting new members to the organization and served as the main point of contact for current members.
“I’m extremely excited to serve the biodiesel industry in my new executive role with NBB,” said Whitehead. “We have a tremendous team that is committed to growing the market for America’s advanced biofuel. It will be critical to continue to face our challenges head on to maintain our more than 2-billion-gallon market share.”
The announcement comes as US consumers saw record volumes of advanced biofuels in the US marketplace – almost 2.9 billion gallons of biodiesel and renewable diesel in 2016. The industry supports 64,000 US jobs and $11.42 billion in total economic impact according to independent economic analysis conducted by LMC International. Based in Jefferson City, Mo., the National Biodiesel Board is the U.S. trade association representing the entire biodiesel value chain, including producers, feedstock suppliers, and fuel distributors, as well as the U.S. renewable diesel industry. It counts more than 150 companies and organizations among its membership.
Whitehead is a graduate of the Professional School of Architecture at Kansas State University. Prior to his time with NBB, he was a business development and management consultant where he worked with a wide range of non-profit and for-profit organizations including “bricks and mortar” projects, technology, strategic planning, budgeting, issues management, and government affairs.
Jefferson City is Doug’s hometown, where he and his wife Alana have raised their two children and been active members of the community. He served for 15 years on the Jefferson City Public Schools board of education, served as president of the Missouri School Board’s Association in 2014/2015, and has participated in a number of charitable foundations, boards, and executive committees including the YMCA as past Chair and currently a member of the Jefferson City YMCA Board of Trustees.
Holstein Association Identifies Record Number of Cattle in '16
Holstein Association USA, Inc. officially identified an all-time record number of Holstein cattle in 2016 through their registration and Basic ID programs. In total, 690,553 Holsteins were identified in 2016, which is 108,867 more or 18 percent higher than 2015. Registrations totaled 377,305 and 313,248 head were enrolled in the Basic ID program.
The Basic ID program is a stepping stone to full registry status. Participation in Holstein Association USA identification programs has never been higher.
"These statistics speak to the value dairy producers realize from Holstein Association identification programs," said Holstein Association CEO John M. Meyer. "As we all know, the dairy economy was tough in 2016. Even so, dairymen across the country continued to increase their participation in our programs."
He adds that one of the great things about being in the Holstein business is that it has a bountiful array of diversified genetics to choose from that allows dairies to be the best in class in any dairy market they want to be in.
Tyson Foods Quarterly Profit Jumps Nearly 30-Percent
Tyson Foods Inc. reported a 28.6 percent rise in quarterly profit, helped by higher exports of beef and pork and lower livestock costs.
Net income attributable to Tyson rose to $593 million, or $1.59 per share, in the first quarter ended Dec. 31, from $461 million, or $1.15 per share, a year earlier.
Sales rose marginally to $9.18 billion from $9.15 billion.
AGCO Reports Fourth Quarter Results
AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, reported net sales of approximately $2.1 billion for the fourth quarter of 2016, an increase of approximately 6.9% compared to net sales of approximately $2.0 billion for the fourth quarter of 2015. Reported net income was $0.77 per share and adjusted net income, which excludes restructuring expenses, was $0.84 per share for the fourth quarter of 2016. These results compare to reported net income of $0.73 per share and adjusted net income, which excludes restructuring expenses, of $0.80 per share for the fourth quarter of 2015. Excluding unfavorable currency translation impacts of approximately 1.8%, net sales in the fourth quarter of 2016 increased approximately 8.7% compared to the fourth quarter of 2015.
Net sales for the full year of 2016 were approximately $7.4 billion, a decrease of approximately 0.8% compared to 2015. Excluding the unfavorable impact of currency translation of approximately 2.6%, net sales for the full year of 2016 increased approximately 1.9% compared to 2015. For the full year of 2016, reported net income was $1.96 per share and adjusted net income, which excludes restructuring expenses and a non-cash deferred income tax adjustment, was $2.47 per share. These results compare to reported net income of $3.06 per share and adjusted net income, which excludes restructuring expenses, of $3.24 per share for the full year of 2015.
Highlights
- Reported fourth quarter regional sales results(1): Europe/Africa/Middle East (“EAME”) (2.0)%, North America +3.0%, South America +63.6%, Asia/Pacific (“APAC”) +21.8%
- Constant currency fourth quarter regional sales results(1)(2): EAME +1.8%, North America +4.4%, South America +53.9%, APAC +22.7%
- Generated $370 million in cash flow from operations and $168 million in free cash flow in 2016
- Share repurchase program resulted in reduction of 4.4 million shares during 2016
- New $300 million share repurchase program authorized through December 2019
- Quarterly dividend increased to $0.14 per share effective first quarter 2017
- Full-year earnings per share forecast for 2017 remains at approximately $2.50
(1) As compared to fourth quarter 2015
(2) Excludes currency translation impact. See reconciliation of Non-GAAP measures in appendix.
“The past year was a challenging year due to continued weakening global market demand for agricultural equipment,” stated Martin Richenhagen, AGCO’s Chairman, President and Chief Executive Officer. “Despite these difficult conditions, our solid operational execution during 2016 allowed us to exceed our financial targets and be well-positioned to seek new opportunities for growth. Looking forward to 2017, industry conditions are expected to remain near the bottom of the agricultural equipment cycle in key markets. In response to the industry challenges, our focus continues to be on cost and expense reduction through globalizing processes, reducing complexity and better leveraging scale. In addition to diligent cost management, we will continue to make long-term investments to raise the efficiency of our factories, improve our service levels and strengthen our product offering.”
Friday, February 3, 2017
Friday February 3 Ag News
Nebraska Farm Bureau Says Ag Land Valuation Bill Could Be Helpful, But Doesn’t Deliver Property Tax Reform
Nebraska Farm Bureau says a legislative proposal to change the way agricultural land is valued in Nebraska could be helpful, but the measure won’t deliver the property tax reform being sought by rural and urban Nebraskans who’ve seen their property taxes skyrocket over the last decade.
“LB 338 introduced by Sen. Lydia Brasch on behalf of Governor Ricketts is a step in the right direction to fixing a long-term issue we’ve had with the state using a market approach to valuing agricultural land for tax purposes, but the impact of the bill on property taxes will be minimal and it doesn’t provide tax reform that benefits all property taxpayers in Nebraska; a principle we believe must be considered as we work to correct an imbalance in our tax system,” said Steve Nelson, Nebraska Farm Bureau president.
LB 338 would change the way agricultural land is valued for tax purposes by moving away from the current market based approach to an approach where land is more closely tied to its ability to generate income. Farm Bureau supports the concept as a way to bring agricultural land values closer to true production capability while minimizing outside influences that can drive market values beyond production capability.
Nebraska Farm Bureau Senior Economist Jay Rempe conducted an analysis of LB 338 to evaluate the potential impacts of the bill.
“The bill does achieve part of the goal of trying to link agricultural land values closer to income conditions and it would bring Nebraska in line with other states in terms of how they value agricultural land. It might also provide some stability year to year in changes in agricultural land values, so there’s some good there in terms of trying to better value ag land, but in terms of trying to achieve overall property tax reductions, I don’t see much coming out of it in that regard,” said Rempe.
The Governor’s office estimates that had the income approach included in LB 338 been in place in 2017, taxable values for agricultural land would have been $2.2 billion lower statewide. According to Rempe, a $2.2 billion reduction in statewide agricultural land values using 2016 data equates to roughly a two percent reduction in agriculture land values.
“A two percent reduction in land values for most farmers and ranchers isn’t likely to translate into much property tax savings when you consider agricultural land values statewide increased more than six percent alone from 2015 to 2016 and more than 263 percent over the last ten years. When we talk about LB 338 and property tax reductions, we’re looking at a statewide reduction of $20 million out of $3.8 billion in property taxes levied statewide. The bill could be helpful in how we value agriculture land, but it’s not a big property tax savings bill,” said Rempe.
Rempe noted that if LB 338 passed, farmers and ranchers would see their valuations change in 2019, but wouldn’t see any potential property tax savings until 2020.
“Several bills have been introduced this legislative session that chart a path forward in providing meaningful property tax reform for all Nebraska property taxpayers and move us toward our goal of $600 million in property tax reductions statewide,” said Nelson.
Bills identified by Nebraska Farm Bureau as key measures to achieve property tax reform to this point include:
LB 545, Sen. Watermeier
Directs an additional $200 million per year over the next three years, to the state’s Property Tax Credit Fund to bring the annual appropriation to the fund to $824 million.
LB 569, Sen. Friesen
The bill creates a Community College Task Force related to evaluating duplication and funding sources for the Nebraska Community College System, and sunsets community college property tax levying authority on January 1, 2019.
LB 44, Sen. Watermeier
This bill would tax sales by online retailers without a physical presence in Nebraska. The measure could generate as much as $100 million in new revenue that could be used to reduce property taxes.
LB 312, Sen. Briese
Expands the sales tax base by eliminating certain sales tax exemptions, including those on many services. The bill could generate around $225-250 million that would be directed to reduce property taxes.
LB 313, Sen. Briese
Raises the state sales tax rate 1 percent, to 6.5 percent. The bill could generate an estimated $275 million to be used to reduce property taxes.
LB 570, Sen. Friesen
Provides a property tax exemption for all tangible personal property, including vehicles, trailers, business and agricultural inventory, and tangible personal property which is not depreciable.
LB 576, Sen. Brewer
Provides a landowner’s property tax bills in 2017 and 2018 shall not exceed their property tax bill in 2016. Places a ceiling on property taxes but allows them to go down if valuations decline.
LB 601, Sen. Erdman
Directs revenue generated from the internet sales tax to the Property Tax Credit Fund.
According to Nelson, property taxes account for roughly 48 percent of the total combined collections of property, state sales, and state income taxes in Nebraska.
“We’re looking for revenue neutral solutions that balance the tax burden and reduce the overreliance on property taxes to fund government services, including education,” said Nelson.
National Beef Ambassador Contest
Congratulations to Liz Loseke of Columbus, NE for making the National Beef Ambassador team!
Omaha to host ANCW Joint Regional Meeting
The joint meeting of American National CattleWomen regions III and VII will be held May 18-20th in historic downtown Omaha near The Old Market, world famous zoo, Iowa Casinos, Orpheum Theatre, etc. The accommodations will also be historic at the Magnolia Hotel.
Thursday begins with shopping in the Old Market, registration, and supper at Spaghetti Works. Friday and Saturday will consist of a range of speakers from an award winning poet/quilter, a nutrition update, presidents' updates, sponsor product research, and some more surprises! A very special supper will be held at the original, family-owned, famous Johnny's Cafe (featured in magazines and even a movie) near the Omaha Stockyard!
Please, look forward to more information coming your way as they make final preparations! More information will be posted to www.ancw.org as well.
Vote Now for the 2017 Cattle Feeders HoF Industry Leadership Award
The 2017 nominees for the Industry Leadership Award have contributed to the cattle-feeding industry through outstanding advocacy and leadership. Their efforts embody our core beliefs and help us communicate our message within the industry and to American families.
Industry Leadership Award nominees include....
Dee Griffin
Dee Griffin, D.V.M., is the feedlot production management professor at the University of Nebraska’s Great Plains Veterinary Educational Center. Dr. Griffin has developed and taught techniques for BQA and production monitoring in the packing plant.
Dr. Kenneth Eng
Dr. Kenneth Eng hasled a successful career as a pioneering consulting nutritionist and rancher. He became one of the early consulting nutritionists who helped boost the efficiencies of a surging commercial cattle-feeding industry in the Southern Plains and western United States. In 2013, Dr. Eng started the Kenneth S. and Caroline McDonald Eng Foundation, which provides an endowment of two million dollars to fund research in cow efficiency.
Willard Wall
Willard Wall helped bring together Livestock Supply – a company he started in 1954 – with nine other companies to form Walco International Inc., which later became Animal Health International Inc. Many cattlemen recognize Willard as a mentor and credit him for their success.
Vote here.... http://cattlefeeders.org/vote-ila/.
Ricketts Announces Schedule for this Year’s Governor’s Ag Conference
Today, Governor Pete Ricketts announced the agenda for the 29th Annual Governor’s Ag Conference, an important event for farmers, ranchers, ag leaders and key agri-business managers in Nebraska. The conference is scheduled for Tuesday and Wednesday, March 14-15, 2017, at the Holiday Inn and Convention Center in Kearney.
“As we celebrate Nebraska’s 150th birthday this year, we praise the pioneers who worked the land and gave the state such a solid foundation. It took Nebraska grit for our ancestors to come to what was then considered as the Great American Desert and turn it into some of the most valuable agricultural land in the world,” said Governor Ricketts. “This conference is a way to support Nebraska’s producers by identifying new opportunities and promoting the Nebraska brand of ag products to keep the state’s number one industry growing for the next 150 years and beyond.”
The Governor’s Ag conference speakers understand the importance of Nebraska agriculture and the role it plays in the economic well-being of the state. The theme, “Riding the Nebraska Brand” through domestic and international trade, will be a prevailing topic throughout the conference. Speakers will also address economic development in rural Nebraska; the importance of effective partnerships.
“Agriculture is the backbone of this state,” said Nebraska Department of Agriculture (NDA) Director Greg Ibach. “The Governor’s Ag Conference is an opportunity to keep current in our industry and to network with colleagues, share ideas and concerns, and prepare for the future. I strongly encourage anyone with an interest in agriculture to attend.”
The conference starts Tuesday, March 14, 2017, at 3:30 p.m. with welcomes and remarks from Governor Ricketts and Director Ibach.
Also on Tuesday’s agenda is a panel discussion on economic development in rural Nebraska. The panel features Broken Bow’s community leaders from city government, the Chamber of Commerce, and agriculture, including specialists in purchasing, production and finance.
The annual “Celebrate Nebraska Agriculture” reception begins at 6:00 p.m. on March 14 and features a mix of Nebraska food products and entertainment by leadership expert and author Rhett Laubach.
The conference resumes on Wednesday, March 15, 2017, featuring the following speakers and topics:
· Doug Carr, senior account executive at Firespring, who will discuss domestic trade and the value of a brand;
· Bobby Richey, Jr., deputy administrator of USDA's Foreign Agricultural Service,
Discussing working with USDA/Foreign Ag Service and Nebraska’s international branding efforts;
· Dr. Michael Boehm, vice chancellor for the Institute of Agriculture and Natural Resources at UN-L and vice president for NU’s Agriculture and Natural Resources who will discuss people, places, partnerships and possibilities.
Anyone interested in agriculture issues is invited to attend. A $100 registration fee covers participation at activities on both Tuesday and Wednesday. Registration and additional information is available online at www.nda.nebraska.gov, or by calling NDA toll-free at (800) 831-0550.
Nebraska Pioneer and Heritage Farm Award Applications Now Available
The AKSARBEN Foundation is currently accepting applications for the annual Nebraska Pioneer and Heritage Farm Awards. Sponsored by AKSARBEN Foundation and Nebraska Farm Bureau, the program honors farm families in Nebraska whose land has been owned by members of the same family for 100 years (Pioneer) and 150 years (Heritage). To date, more than 9,000 families in all 93 Nebraska counties have been honored at their respective county fairs. Each farm honoree receives one engraved plaque and one gatepost marker as permanent recognition of their milestone.
Application details must be verified by the county fair board in which the land is located prior to submission to AKSARBEN Foundation. The 2017 Nebraska Farm Award applications are due to county fair boards no later than April 21, 2017. Application forms can be obtained:
Online: http://www.aksarben.org/p/coreinitiatives/agriculture/264
Email: Jody Siedelmann at Siedelmannj@aksarben.org
Phone: 402-554-9600, ext. 107
Mail: 6910 Pacific St, Ste 102, Omaha, NE 68106
Iowa Century and Heritage Farm Owners Encouraged to Apply
Iowa Secretary of Agriculture Bill Northey encouraged eligible farm owners to apply for the 2017 Century and Heritage Farm Program. The program is sponsored by the Iowa Department of Agriculture and Land Stewardship and the Iowa Farm Bureau Federation and recognizes families that have owned their farm for 100 years in the case of Century Farms and 150 years for Heritage Farms.
"These awards are an opportunity to recognize the hard work and commitment by these families that is necessary to keep a farm in the same family for 100 or 150 years," Northey said. "If you consider all the challenges and unexpected obstacles each of them would have had to overcome during their life on the farm, it gives you a greater appreciation of the dedication and perseverance of each of the families being recognized."
Applications are available on the Department's website at www.IowaAgriculture.gov by clicking on the Century Farm or Heritage Farm link under "Hot Topics."
Applications may also be requested from Becky Lorenz, Coordinator of the Century and Heritage Farm Program via phone at 515-281-3645, email at Becky.Lorenz@IowaAgriculture.gov or by writing to Century or Heritage Farms Program, Iowa Department of Agriculture and Land Stewardship, Henry A. Wallace Building, 502 E. 9th St., Des Moines, IA 50319.
Farm families seeking to qualify for the Century or Heritage Farms Program must submit an application to the Department no later than June 1.
The Century Farm program was started in 1976 as part of the Nation's Bicentennial Celebration. To date more than 19,000 farms from across the state have received this recognition. The Heritage Farm program was started in 2006, on the 30th anniversary of the Century Farm program, and more than 900 farms have been recognized. Last year 320 Century Farms and 103 Heritage Farms were recognized.
The ceremony to recognize the 2017 Century and Heritage Farms is scheduled to be held at the Iowa State Fair on Aug. 17 in the Pioneer Livestock Pavilion.
"Century and Heritage Farm recognitions at the Iowa State Fair are a great celebration of Iowa agriculture and the families that care for the land and produce our food," Northey said. "I hope eligible families will take the time to apply and then come to the State Fair to be recognized."
Livestock Master Matrix Adopted in 88 Counties
Once again, 88 of 99 Iowa counties notified DNR in January that they plan to evaluate construction permit applications and proposed locations for animal confinements by using the master matrix.
With 11 exceptions, all counties will use the matrix during the next 12 months. The following counties will not use the matrix in 2017: Davis, Decatur, Des Moines, Keokuk, Lee, Mahaska, Osceola, Plymouth, Wapello, Warren and Washington.
Animal producers in these counties must meet higher standards than other confinement producers who also need a construction permit. They qualify by choosing a site and using practices that reduce impacts on air, water and the community.
Counties that adopt the master matrix can provide more input to producers on site selection, and proposed structures and facility management. Participating counties score each master matrix submitted in their county and can recommend to approve or deny the construction permit. They can also join in DNR visits to a proposed confinement site.
While all counties may submit comments to DNR during the permitting process, counties that adopt the master matrix can also appeal a preliminary permit to the state Environmental Protection Commission. The deadline for enrolling in the program is Jan. 31 of each year.
Find more information, including a map of participating counties by searching for Master Matrix at www.iowadnr.gov/afo.
The master matrix applies to producers who must get a construction permit to build, expand or modify a totally roofed facility. Generally, these are confinement feeding operations with more than 2,500 finishing hogs, 1,000 beef cattle or 715 mature dairy cows.
IA Producers: Verify Calibration and Distribution When Applying Manure
Liquid manure application in Iowa typically happens in spring and fall each year. The majority of liquid manure application takes place using a tank or a dragline applicator, providing additional nutrients to crops.
Tank applicators transport manure from the livestock facility to agricultural fields and apply manure using a tank-mounted tool-bar. For fields that are close-by, manure can be pumped directly to the dragline-mounted tool-bar. In either case, a pre-determined application rate is used to pump manure through a manifold, which distributes manure to the application points across the tool-bar.
“Environmental regulations require producers to make sure manure is being applied to agricultural fields in accordance with their manure management plans,” said Dan Anderson, assistant professor and extension agricultural engineering specialist with Iowa State University. “It is important to ensure that the nutrients for use by the crops are being applied in appropriate proportions.”
Variations in tank capacities, manure densities and the presence of foam can cause the application rate to be different from the target number, as can variations in drive speed. Application rate should be verified, and both tank and dragline applicators need to be calibrated to ensure accurate application.
Both distribution of manure and calibrating the applicators are covered in a pair of new ISU Extension and Outreach publications. “Distribution of Liquid Manure Application” (AE 3600) and “Calibrating Liquid Tank Manure Applicators” (AE 3601A) are both available through the Extension Store. A “Calibration Worksheet for Liquid Manure Tank Applicators” (AE 3601B) also is available.
NCBA Recognizes 2016 Top Hand Club Winners at Cattle Industry Convention and Trade Show
The National Cattlemen’s Beef Association’s 2016 Top Hand Club celebrated today the recruitment of 499 new NCBA members, all recruited by NCBA members over the past year.
The Top Hand Club was initiated in 1982 as NCBA’s member-recruit-a-member program that recognizes volunteer leaders for their commitment in growing a strong national association. To become a Top Hand Club member, individuals must recruit at least three new NCBA members. To remain in the club, members must recruit two new members each subsequent year. The Top Hand Club recruitment year runs Oct. 1 through Sept. 30. The program is sponsored by Case IH and Roper, Stetson, Tin Haul.
Each year, three high achieving Top Hands are recognized for their recruitment efforts, as those members who signed on the most new NCBA members. Again this year, the Top Hand Club sponsored an additional award which recognizes the Top Hand who recruited the most in dues revenue. Congratulations to the 2016 Top Hand Club top three recruiters and the top recruiter for revenue.
2016 Top Hand Club Champion and Top Recruiter for Revenue – Billy Flournoy, California Cattlemen’s Association
Billy Flournoy of Likely, California is the 2016 Champion Recruiter for Membership and the Champion Recruiter for Revenue, bringing in 63 recruits adding up to $12,800.00 in revenue during the 2016 Top Hand Club year. Flournoy has earned airline tickets, housing and registration for the 2016 Cattle Industry Annual Convention and NCBA Trade show, boots and apparel from Roper, Stetson, Tin Haul, and an exclusive personalized Top Hand Red Bluff Buckle.
2016 Top Hand Club Res. Champion– Melody Benjamin, Nebraska Cattlemen’s Association
With 40 recruits, Melody Benjamin of Lakeside, Nebraska is the 2nd Top Recruiter for the 2016 Top Hand Club year. This is Melody’s thirteenth year as a Top Hand Club recruiter. Melody has also received prizes for her recruiting efforts including $500 in Cabela’s gift cards and registration to annual convention.
2016 Top Hand Club 3rd Place Recruiter – Ryan Higbie, Kansas Livestock Association
Third Top Recruiter goes to Ryan Higbie with 32 recruits. This is Ryan’s eleventh year in the Top Hand Club. His recruiting efforts have earned him a variety of prizes including boots from Roper, Stetson and Tin Haul as well as Cabela’s gift cards.
In addition to being the 2016 Top Hand Club sponsor, Case IH added an additional incentive for recruiter’s – $15,000 toward a Case IH purchase. Those who recruited five or more members were entered into a drawing for this grand prize, and for every five additional recruits, they received an extra entry into the contest. This year’s winner, drawn on stage at the annual Best of Beef awards breakfast, is Charlie Swanson of Oklahoma. Case IH announced today that they are proud to sponsor this same promotion for the 2017 recruitment year.
Five Beef Quality Assurance Awards Presented
On February 2, three producers were honored with the checkoff’s annual national Beef Quality Assurance (BQA) award and Dairy Beef Quality Assurance (DBQA) award, which were created to recognize outstanding beef and dairy producers from across the country who incorporate BQA principles as part of the day-to-day activities on their operations. In addition, key cattle industry influencers who promote BQA principles on a daily basis were honored. One individual was recognized with the BQA Marketer Award, and one individual received the BQA Educator of the Year Award.
2017 winners were:
- Robyn Metzger, Wulf Cattle Company from Morris, Minn. (BQA Cow-Calf Award)
- Steve Gabel, Magnum Feedyards from Wiggins, Colo. (BQA Feedyard Award)
- Tricia Adams, Hoffman Farms from Shinglehouse, Penn. (BQA Dairy Award)
- John & Leann Saunders, IMI Global from Castle Rock, Colo. (BQA Marketer Award)
- Bob Smith, Veterinary Research and Consulting, Oklahoma (BQA Educator of the Year Award)
“Our 2017 award winners are exemplary models for promoting beef as a quality product from the local to the national level,” says Chase Decoite, associate director of BQA. “They are working diligently to implement the newest, safest, most efficient animal health, handling, daily management and record-keeping practices. They are truly examples of sharing the BQA story!”
Insider Shares Political Realities at Record-Breaking Cattle Industry Convention
Actions of the new administration are like “a dog on ice chasing a marble,” Dana Perino told an audience at the 2017 Cattle Industry Convention and NCBA Trade Show in Nashville, Tenn., Feb. 3. “You have to expect the unexpected.”
Perino spoke to many of the more than 9,000 cattlemen and women at the event – a record number of attendees for any cattle industry convention – at Friday’s general session. The previous convention record was in Nashville in 2014, at just under 8,300.
Renowned ag broadcast journalist Max Armstrong emceed the event, and introduced National Cattlemen’s Beef Association incoming president Craig Uden of Nebraska. Uden briefly visited with Armstrong about his vision for the organization and the industry. High Fidelity, a Nashville a capella singing quartet sang patriotic songs to open and close the event.
Perino was the press secretary for President George W. Bush for seven years and is now a panelist on The Five, which airs daily on the Fox News Channel. Her exposure to the Washington scene brought an insider’s knowledge as keynote speaker at the general session, which was sponsored by Laird Manufacturing. Having grown up in Colorado and Wyoming, she said she felt “right at home” in front of the audience of thousands of cattlemen and women.
Perino said the recent presidential election was unique. The odds of getting an inside straight are 254 to 1, she told the audience, and those are the kind of odds Trump beat to win the presidency. “It was a hard hand to play, and he played it perfectly,” she said. While Hillary Clinton won the popular vote, she didn’t win states she needed, including Pennsylvania, Michigan and Wisconsin. For two years she didn’t visit Wisconsin, Perino said, and she should have listened to her volunteers in the state, instead of her statisticians, who said the state was safe.
According to Perino, cattle producers should work to make sure they “get in front of the administration as much as possible” on things like trade. She suggested giving away the upper hand in trade to China through destruction of the TPP was not a good idea, but “he (Trump) can change his mind.”
“Government doesn’t work just like a business,” she said, adding that she hoped “things would settle down for them.” Donald Trump “thrives on chaos,” according to Perino. At some point, however, things will get calmer “or the chaos will take over.”
Perino was also confident that the nomination of Neil Gorsuch to the country’s highest court would be successful. “Mark my words,” she said, “he will get confirmed to the Supreme Court.”
BILL INTRODUCED TO CLARIFY WASTE LAW DOESN’T COVER NUTRIENT APPLICATION
Rep. Dan Newhouse, R-Wash., this week introduced legislation to clarify congressional intent on applying the Resources Conservation and Recovery Act of 1976 to agricultural activities. RCRA deals with the proper management of hazardous and non-hazardous solid waste; it does not cover agriculture, and U.S. Environmental Protection Agency RCRA regulations state that the statute doesn’t apply to agricultural waste, “including manure and crop residue, returned to the soil as fertilizers or soil conditioners.” But some courts have allowed citizen lawsuits against farmers over application to cropland of manure.
The “Farm Regulatory Certainty Act” would:
· Reaffirm and clarify congressional intent that RCRA should not cover agricultural byproducts.
· Codify EPA regulations on the treatment of agricultural byproducts under RCRA.
· Prevent farmers who are engaged in legal action or making an attempt to work with the state or federal government to address nutrient management issues from being targeted by citizen suits.
Newhouse sponsored similar legislation in the last Congress.
AgriPro® brand wheat varieties break records for 2016 yields and top lists of acres planted
A dedication to continued research and development from the largest private wheat breeding program in North America is reaping results for wheat growers across the country. In 2016, growers proved that they are recognizing the benefits of AgriPro® brand wheat varieties from Syngenta through increases in acreage planted and with record-breaking yields.
In Kansas, SY Wolf winter wheat achieved the highest wheat yield (109.38 bushels per acre) in the 2016 Kansas Wheat Yield Contest for the Central region. In Michigan, new SY 100 winter wheat topped the 2016 Michigan State University Wheat Performance Trial with a yield of 124.8 bu/A.
“We’re proud of the record-breaking performance of AgriPro wheat in 2016 and expect to see this trend continue,” said Darcy Pawlik, product marketing manager for Syngenta Cereals. “Our investment and expertise in wheat breeding is paying off, allowing Syngenta to bring to market new and better varieties with strong agronomic characteristics and higher top-end yield potential. We are pleased to see growers benefiting from our investment by choosing to plant more acres of AgriPro varieties than ever before.”
In 2016, AgriPro varieties were the top planted in five key wheat growing states. SY Wolf was the number one planted winter wheat variety in both Nebraska and South Dakota. In South Dakota, SY Wolf comprised 32 percent of all winter wheat planted. In Nebraska, SY Wolf comprised 7.4 percent of winter wheat planted with 94,000 acres.
In North Dakota, SY Soren and SY Ingmar were the top two spring wheat varieties planted with 15.4 percent and 11.5 percent, respectively, of the 6.30 million acres of the state’s spring wheat. In Washington, SY Ovation has become the number one planted winter wheat variety with 248,368 acres, 13 percent of the total winter wheat acres planted. SY Ovation was also the number one planted winter wheat variety in Idaho.
Syngenta is an industry leader in the development of superior wheat varieties, offering growers consistent performance in the field. AgriPro brand wheat varieties target high yield potential, good test weights, quality grain and superior disease protection. From seed to harvest, Syngenta supports the cereals market with a robust portfolio of seed and crop protection solutions. The unique portfolio breadth enables us to innovate and deliver integrated solutions to help farmers start strong and ultimately grow more wheat.
Nebraska Farm Bureau says a legislative proposal to change the way agricultural land is valued in Nebraska could be helpful, but the measure won’t deliver the property tax reform being sought by rural and urban Nebraskans who’ve seen their property taxes skyrocket over the last decade.
“LB 338 introduced by Sen. Lydia Brasch on behalf of Governor Ricketts is a step in the right direction to fixing a long-term issue we’ve had with the state using a market approach to valuing agricultural land for tax purposes, but the impact of the bill on property taxes will be minimal and it doesn’t provide tax reform that benefits all property taxpayers in Nebraska; a principle we believe must be considered as we work to correct an imbalance in our tax system,” said Steve Nelson, Nebraska Farm Bureau president.
LB 338 would change the way agricultural land is valued for tax purposes by moving away from the current market based approach to an approach where land is more closely tied to its ability to generate income. Farm Bureau supports the concept as a way to bring agricultural land values closer to true production capability while minimizing outside influences that can drive market values beyond production capability.
Nebraska Farm Bureau Senior Economist Jay Rempe conducted an analysis of LB 338 to evaluate the potential impacts of the bill.
“The bill does achieve part of the goal of trying to link agricultural land values closer to income conditions and it would bring Nebraska in line with other states in terms of how they value agricultural land. It might also provide some stability year to year in changes in agricultural land values, so there’s some good there in terms of trying to better value ag land, but in terms of trying to achieve overall property tax reductions, I don’t see much coming out of it in that regard,” said Rempe.
The Governor’s office estimates that had the income approach included in LB 338 been in place in 2017, taxable values for agricultural land would have been $2.2 billion lower statewide. According to Rempe, a $2.2 billion reduction in statewide agricultural land values using 2016 data equates to roughly a two percent reduction in agriculture land values.
“A two percent reduction in land values for most farmers and ranchers isn’t likely to translate into much property tax savings when you consider agricultural land values statewide increased more than six percent alone from 2015 to 2016 and more than 263 percent over the last ten years. When we talk about LB 338 and property tax reductions, we’re looking at a statewide reduction of $20 million out of $3.8 billion in property taxes levied statewide. The bill could be helpful in how we value agriculture land, but it’s not a big property tax savings bill,” said Rempe.
Rempe noted that if LB 338 passed, farmers and ranchers would see their valuations change in 2019, but wouldn’t see any potential property tax savings until 2020.
“Several bills have been introduced this legislative session that chart a path forward in providing meaningful property tax reform for all Nebraska property taxpayers and move us toward our goal of $600 million in property tax reductions statewide,” said Nelson.
Bills identified by Nebraska Farm Bureau as key measures to achieve property tax reform to this point include:
LB 545, Sen. Watermeier
Directs an additional $200 million per year over the next three years, to the state’s Property Tax Credit Fund to bring the annual appropriation to the fund to $824 million.
LB 569, Sen. Friesen
The bill creates a Community College Task Force related to evaluating duplication and funding sources for the Nebraska Community College System, and sunsets community college property tax levying authority on January 1, 2019.
LB 44, Sen. Watermeier
This bill would tax sales by online retailers without a physical presence in Nebraska. The measure could generate as much as $100 million in new revenue that could be used to reduce property taxes.
LB 312, Sen. Briese
Expands the sales tax base by eliminating certain sales tax exemptions, including those on many services. The bill could generate around $225-250 million that would be directed to reduce property taxes.
LB 313, Sen. Briese
Raises the state sales tax rate 1 percent, to 6.5 percent. The bill could generate an estimated $275 million to be used to reduce property taxes.
LB 570, Sen. Friesen
Provides a property tax exemption for all tangible personal property, including vehicles, trailers, business and agricultural inventory, and tangible personal property which is not depreciable.
LB 576, Sen. Brewer
Provides a landowner’s property tax bills in 2017 and 2018 shall not exceed their property tax bill in 2016. Places a ceiling on property taxes but allows them to go down if valuations decline.
LB 601, Sen. Erdman
Directs revenue generated from the internet sales tax to the Property Tax Credit Fund.
According to Nelson, property taxes account for roughly 48 percent of the total combined collections of property, state sales, and state income taxes in Nebraska.
“We’re looking for revenue neutral solutions that balance the tax burden and reduce the overreliance on property taxes to fund government services, including education,” said Nelson.
National Beef Ambassador Contest
Congratulations to Liz Loseke of Columbus, NE for making the National Beef Ambassador team!
Omaha to host ANCW Joint Regional Meeting
The joint meeting of American National CattleWomen regions III and VII will be held May 18-20th in historic downtown Omaha near The Old Market, world famous zoo, Iowa Casinos, Orpheum Theatre, etc. The accommodations will also be historic at the Magnolia Hotel.
Thursday begins with shopping in the Old Market, registration, and supper at Spaghetti Works. Friday and Saturday will consist of a range of speakers from an award winning poet/quilter, a nutrition update, presidents' updates, sponsor product research, and some more surprises! A very special supper will be held at the original, family-owned, famous Johnny's Cafe (featured in magazines and even a movie) near the Omaha Stockyard!
Please, look forward to more information coming your way as they make final preparations! More information will be posted to www.ancw.org as well.
Vote Now for the 2017 Cattle Feeders HoF Industry Leadership Award
The 2017 nominees for the Industry Leadership Award have contributed to the cattle-feeding industry through outstanding advocacy and leadership. Their efforts embody our core beliefs and help us communicate our message within the industry and to American families.
Industry Leadership Award nominees include....
Dee Griffin
Dee Griffin, D.V.M., is the feedlot production management professor at the University of Nebraska’s Great Plains Veterinary Educational Center. Dr. Griffin has developed and taught techniques for BQA and production monitoring in the packing plant.
Dr. Kenneth Eng
Dr. Kenneth Eng hasled a successful career as a pioneering consulting nutritionist and rancher. He became one of the early consulting nutritionists who helped boost the efficiencies of a surging commercial cattle-feeding industry in the Southern Plains and western United States. In 2013, Dr. Eng started the Kenneth S. and Caroline McDonald Eng Foundation, which provides an endowment of two million dollars to fund research in cow efficiency.
Willard Wall
Willard Wall helped bring together Livestock Supply – a company he started in 1954 – with nine other companies to form Walco International Inc., which later became Animal Health International Inc. Many cattlemen recognize Willard as a mentor and credit him for their success.
Vote here.... http://cattlefeeders.org/vote-ila/.
Ricketts Announces Schedule for this Year’s Governor’s Ag Conference
Today, Governor Pete Ricketts announced the agenda for the 29th Annual Governor’s Ag Conference, an important event for farmers, ranchers, ag leaders and key agri-business managers in Nebraska. The conference is scheduled for Tuesday and Wednesday, March 14-15, 2017, at the Holiday Inn and Convention Center in Kearney.
“As we celebrate Nebraska’s 150th birthday this year, we praise the pioneers who worked the land and gave the state such a solid foundation. It took Nebraska grit for our ancestors to come to what was then considered as the Great American Desert and turn it into some of the most valuable agricultural land in the world,” said Governor Ricketts. “This conference is a way to support Nebraska’s producers by identifying new opportunities and promoting the Nebraska brand of ag products to keep the state’s number one industry growing for the next 150 years and beyond.”
The Governor’s Ag conference speakers understand the importance of Nebraska agriculture and the role it plays in the economic well-being of the state. The theme, “Riding the Nebraska Brand” through domestic and international trade, will be a prevailing topic throughout the conference. Speakers will also address economic development in rural Nebraska; the importance of effective partnerships.
“Agriculture is the backbone of this state,” said Nebraska Department of Agriculture (NDA) Director Greg Ibach. “The Governor’s Ag Conference is an opportunity to keep current in our industry and to network with colleagues, share ideas and concerns, and prepare for the future. I strongly encourage anyone with an interest in agriculture to attend.”
The conference starts Tuesday, March 14, 2017, at 3:30 p.m. with welcomes and remarks from Governor Ricketts and Director Ibach.
Also on Tuesday’s agenda is a panel discussion on economic development in rural Nebraska. The panel features Broken Bow’s community leaders from city government, the Chamber of Commerce, and agriculture, including specialists in purchasing, production and finance.
The annual “Celebrate Nebraska Agriculture” reception begins at 6:00 p.m. on March 14 and features a mix of Nebraska food products and entertainment by leadership expert and author Rhett Laubach.
The conference resumes on Wednesday, March 15, 2017, featuring the following speakers and topics:
· Doug Carr, senior account executive at Firespring, who will discuss domestic trade and the value of a brand;
· Bobby Richey, Jr., deputy administrator of USDA's Foreign Agricultural Service,
Discussing working with USDA/Foreign Ag Service and Nebraska’s international branding efforts;
· Dr. Michael Boehm, vice chancellor for the Institute of Agriculture and Natural Resources at UN-L and vice president for NU’s Agriculture and Natural Resources who will discuss people, places, partnerships and possibilities.
Anyone interested in agriculture issues is invited to attend. A $100 registration fee covers participation at activities on both Tuesday and Wednesday. Registration and additional information is available online at www.nda.nebraska.gov, or by calling NDA toll-free at (800) 831-0550.
Nebraska Pioneer and Heritage Farm Award Applications Now Available
The AKSARBEN Foundation is currently accepting applications for the annual Nebraska Pioneer and Heritage Farm Awards. Sponsored by AKSARBEN Foundation and Nebraska Farm Bureau, the program honors farm families in Nebraska whose land has been owned by members of the same family for 100 years (Pioneer) and 150 years (Heritage). To date, more than 9,000 families in all 93 Nebraska counties have been honored at their respective county fairs. Each farm honoree receives one engraved plaque and one gatepost marker as permanent recognition of their milestone.
Application details must be verified by the county fair board in which the land is located prior to submission to AKSARBEN Foundation. The 2017 Nebraska Farm Award applications are due to county fair boards no later than April 21, 2017. Application forms can be obtained:
Online: http://www.aksarben.org/p/coreinitiatives/agriculture/264
Email: Jody Siedelmann at Siedelmannj@aksarben.org
Phone: 402-554-9600, ext. 107
Mail: 6910 Pacific St, Ste 102, Omaha, NE 68106
Iowa Century and Heritage Farm Owners Encouraged to Apply
Iowa Secretary of Agriculture Bill Northey encouraged eligible farm owners to apply for the 2017 Century and Heritage Farm Program. The program is sponsored by the Iowa Department of Agriculture and Land Stewardship and the Iowa Farm Bureau Federation and recognizes families that have owned their farm for 100 years in the case of Century Farms and 150 years for Heritage Farms.
"These awards are an opportunity to recognize the hard work and commitment by these families that is necessary to keep a farm in the same family for 100 or 150 years," Northey said. "If you consider all the challenges and unexpected obstacles each of them would have had to overcome during their life on the farm, it gives you a greater appreciation of the dedication and perseverance of each of the families being recognized."
Applications are available on the Department's website at www.IowaAgriculture.gov by clicking on the Century Farm or Heritage Farm link under "Hot Topics."
Applications may also be requested from Becky Lorenz, Coordinator of the Century and Heritage Farm Program via phone at 515-281-3645, email at Becky.Lorenz@IowaAgriculture.gov or by writing to Century or Heritage Farms Program, Iowa Department of Agriculture and Land Stewardship, Henry A. Wallace Building, 502 E. 9th St., Des Moines, IA 50319.
Farm families seeking to qualify for the Century or Heritage Farms Program must submit an application to the Department no later than June 1.
The Century Farm program was started in 1976 as part of the Nation's Bicentennial Celebration. To date more than 19,000 farms from across the state have received this recognition. The Heritage Farm program was started in 2006, on the 30th anniversary of the Century Farm program, and more than 900 farms have been recognized. Last year 320 Century Farms and 103 Heritage Farms were recognized.
The ceremony to recognize the 2017 Century and Heritage Farms is scheduled to be held at the Iowa State Fair on Aug. 17 in the Pioneer Livestock Pavilion.
"Century and Heritage Farm recognitions at the Iowa State Fair are a great celebration of Iowa agriculture and the families that care for the land and produce our food," Northey said. "I hope eligible families will take the time to apply and then come to the State Fair to be recognized."
Livestock Master Matrix Adopted in 88 Counties
Once again, 88 of 99 Iowa counties notified DNR in January that they plan to evaluate construction permit applications and proposed locations for animal confinements by using the master matrix.
With 11 exceptions, all counties will use the matrix during the next 12 months. The following counties will not use the matrix in 2017: Davis, Decatur, Des Moines, Keokuk, Lee, Mahaska, Osceola, Plymouth, Wapello, Warren and Washington.
Animal producers in these counties must meet higher standards than other confinement producers who also need a construction permit. They qualify by choosing a site and using practices that reduce impacts on air, water and the community.
Counties that adopt the master matrix can provide more input to producers on site selection, and proposed structures and facility management. Participating counties score each master matrix submitted in their county and can recommend to approve or deny the construction permit. They can also join in DNR visits to a proposed confinement site.
While all counties may submit comments to DNR during the permitting process, counties that adopt the master matrix can also appeal a preliminary permit to the state Environmental Protection Commission. The deadline for enrolling in the program is Jan. 31 of each year.
Find more information, including a map of participating counties by searching for Master Matrix at www.iowadnr.gov/afo.
The master matrix applies to producers who must get a construction permit to build, expand or modify a totally roofed facility. Generally, these are confinement feeding operations with more than 2,500 finishing hogs, 1,000 beef cattle or 715 mature dairy cows.
IA Producers: Verify Calibration and Distribution When Applying Manure
Liquid manure application in Iowa typically happens in spring and fall each year. The majority of liquid manure application takes place using a tank or a dragline applicator, providing additional nutrients to crops.
Tank applicators transport manure from the livestock facility to agricultural fields and apply manure using a tank-mounted tool-bar. For fields that are close-by, manure can be pumped directly to the dragline-mounted tool-bar. In either case, a pre-determined application rate is used to pump manure through a manifold, which distributes manure to the application points across the tool-bar.
“Environmental regulations require producers to make sure manure is being applied to agricultural fields in accordance with their manure management plans,” said Dan Anderson, assistant professor and extension agricultural engineering specialist with Iowa State University. “It is important to ensure that the nutrients for use by the crops are being applied in appropriate proportions.”
Variations in tank capacities, manure densities and the presence of foam can cause the application rate to be different from the target number, as can variations in drive speed. Application rate should be verified, and both tank and dragline applicators need to be calibrated to ensure accurate application.
Both distribution of manure and calibrating the applicators are covered in a pair of new ISU Extension and Outreach publications. “Distribution of Liquid Manure Application” (AE 3600) and “Calibrating Liquid Tank Manure Applicators” (AE 3601A) are both available through the Extension Store. A “Calibration Worksheet for Liquid Manure Tank Applicators” (AE 3601B) also is available.
NCBA Recognizes 2016 Top Hand Club Winners at Cattle Industry Convention and Trade Show
The National Cattlemen’s Beef Association’s 2016 Top Hand Club celebrated today the recruitment of 499 new NCBA members, all recruited by NCBA members over the past year.
The Top Hand Club was initiated in 1982 as NCBA’s member-recruit-a-member program that recognizes volunteer leaders for their commitment in growing a strong national association. To become a Top Hand Club member, individuals must recruit at least three new NCBA members. To remain in the club, members must recruit two new members each subsequent year. The Top Hand Club recruitment year runs Oct. 1 through Sept. 30. The program is sponsored by Case IH and Roper, Stetson, Tin Haul.
Each year, three high achieving Top Hands are recognized for their recruitment efforts, as those members who signed on the most new NCBA members. Again this year, the Top Hand Club sponsored an additional award which recognizes the Top Hand who recruited the most in dues revenue. Congratulations to the 2016 Top Hand Club top three recruiters and the top recruiter for revenue.
2016 Top Hand Club Champion and Top Recruiter for Revenue – Billy Flournoy, California Cattlemen’s Association
Billy Flournoy of Likely, California is the 2016 Champion Recruiter for Membership and the Champion Recruiter for Revenue, bringing in 63 recruits adding up to $12,800.00 in revenue during the 2016 Top Hand Club year. Flournoy has earned airline tickets, housing and registration for the 2016 Cattle Industry Annual Convention and NCBA Trade show, boots and apparel from Roper, Stetson, Tin Haul, and an exclusive personalized Top Hand Red Bluff Buckle.
2016 Top Hand Club Res. Champion– Melody Benjamin, Nebraska Cattlemen’s Association
With 40 recruits, Melody Benjamin of Lakeside, Nebraska is the 2nd Top Recruiter for the 2016 Top Hand Club year. This is Melody’s thirteenth year as a Top Hand Club recruiter. Melody has also received prizes for her recruiting efforts including $500 in Cabela’s gift cards and registration to annual convention.
2016 Top Hand Club 3rd Place Recruiter – Ryan Higbie, Kansas Livestock Association
Third Top Recruiter goes to Ryan Higbie with 32 recruits. This is Ryan’s eleventh year in the Top Hand Club. His recruiting efforts have earned him a variety of prizes including boots from Roper, Stetson and Tin Haul as well as Cabela’s gift cards.
In addition to being the 2016 Top Hand Club sponsor, Case IH added an additional incentive for recruiter’s – $15,000 toward a Case IH purchase. Those who recruited five or more members were entered into a drawing for this grand prize, and for every five additional recruits, they received an extra entry into the contest. This year’s winner, drawn on stage at the annual Best of Beef awards breakfast, is Charlie Swanson of Oklahoma. Case IH announced today that they are proud to sponsor this same promotion for the 2017 recruitment year.
Five Beef Quality Assurance Awards Presented
On February 2, three producers were honored with the checkoff’s annual national Beef Quality Assurance (BQA) award and Dairy Beef Quality Assurance (DBQA) award, which were created to recognize outstanding beef and dairy producers from across the country who incorporate BQA principles as part of the day-to-day activities on their operations. In addition, key cattle industry influencers who promote BQA principles on a daily basis were honored. One individual was recognized with the BQA Marketer Award, and one individual received the BQA Educator of the Year Award.
2017 winners were:
- Robyn Metzger, Wulf Cattle Company from Morris, Minn. (BQA Cow-Calf Award)
- Steve Gabel, Magnum Feedyards from Wiggins, Colo. (BQA Feedyard Award)
- Tricia Adams, Hoffman Farms from Shinglehouse, Penn. (BQA Dairy Award)
- John & Leann Saunders, IMI Global from Castle Rock, Colo. (BQA Marketer Award)
- Bob Smith, Veterinary Research and Consulting, Oklahoma (BQA Educator of the Year Award)
“Our 2017 award winners are exemplary models for promoting beef as a quality product from the local to the national level,” says Chase Decoite, associate director of BQA. “They are working diligently to implement the newest, safest, most efficient animal health, handling, daily management and record-keeping practices. They are truly examples of sharing the BQA story!”
Insider Shares Political Realities at Record-Breaking Cattle Industry Convention
Actions of the new administration are like “a dog on ice chasing a marble,” Dana Perino told an audience at the 2017 Cattle Industry Convention and NCBA Trade Show in Nashville, Tenn., Feb. 3. “You have to expect the unexpected.”
Perino spoke to many of the more than 9,000 cattlemen and women at the event – a record number of attendees for any cattle industry convention – at Friday’s general session. The previous convention record was in Nashville in 2014, at just under 8,300.
Renowned ag broadcast journalist Max Armstrong emceed the event, and introduced National Cattlemen’s Beef Association incoming president Craig Uden of Nebraska. Uden briefly visited with Armstrong about his vision for the organization and the industry. High Fidelity, a Nashville a capella singing quartet sang patriotic songs to open and close the event.
Perino was the press secretary for President George W. Bush for seven years and is now a panelist on The Five, which airs daily on the Fox News Channel. Her exposure to the Washington scene brought an insider’s knowledge as keynote speaker at the general session, which was sponsored by Laird Manufacturing. Having grown up in Colorado and Wyoming, she said she felt “right at home” in front of the audience of thousands of cattlemen and women.
Perino said the recent presidential election was unique. The odds of getting an inside straight are 254 to 1, she told the audience, and those are the kind of odds Trump beat to win the presidency. “It was a hard hand to play, and he played it perfectly,” she said. While Hillary Clinton won the popular vote, she didn’t win states she needed, including Pennsylvania, Michigan and Wisconsin. For two years she didn’t visit Wisconsin, Perino said, and she should have listened to her volunteers in the state, instead of her statisticians, who said the state was safe.
According to Perino, cattle producers should work to make sure they “get in front of the administration as much as possible” on things like trade. She suggested giving away the upper hand in trade to China through destruction of the TPP was not a good idea, but “he (Trump) can change his mind.”
“Government doesn’t work just like a business,” she said, adding that she hoped “things would settle down for them.” Donald Trump “thrives on chaos,” according to Perino. At some point, however, things will get calmer “or the chaos will take over.”
Perino was also confident that the nomination of Neil Gorsuch to the country’s highest court would be successful. “Mark my words,” she said, “he will get confirmed to the Supreme Court.”
BILL INTRODUCED TO CLARIFY WASTE LAW DOESN’T COVER NUTRIENT APPLICATION
Rep. Dan Newhouse, R-Wash., this week introduced legislation to clarify congressional intent on applying the Resources Conservation and Recovery Act of 1976 to agricultural activities. RCRA deals with the proper management of hazardous and non-hazardous solid waste; it does not cover agriculture, and U.S. Environmental Protection Agency RCRA regulations state that the statute doesn’t apply to agricultural waste, “including manure and crop residue, returned to the soil as fertilizers or soil conditioners.” But some courts have allowed citizen lawsuits against farmers over application to cropland of manure.
The “Farm Regulatory Certainty Act” would:
· Reaffirm and clarify congressional intent that RCRA should not cover agricultural byproducts.
· Codify EPA regulations on the treatment of agricultural byproducts under RCRA.
· Prevent farmers who are engaged in legal action or making an attempt to work with the state or federal government to address nutrient management issues from being targeted by citizen suits.
Newhouse sponsored similar legislation in the last Congress.
AgriPro® brand wheat varieties break records for 2016 yields and top lists of acres planted
A dedication to continued research and development from the largest private wheat breeding program in North America is reaping results for wheat growers across the country. In 2016, growers proved that they are recognizing the benefits of AgriPro® brand wheat varieties from Syngenta through increases in acreage planted and with record-breaking yields.
In Kansas, SY Wolf winter wheat achieved the highest wheat yield (109.38 bushels per acre) in the 2016 Kansas Wheat Yield Contest for the Central region. In Michigan, new SY 100 winter wheat topped the 2016 Michigan State University Wheat Performance Trial with a yield of 124.8 bu/A.
“We’re proud of the record-breaking performance of AgriPro wheat in 2016 and expect to see this trend continue,” said Darcy Pawlik, product marketing manager for Syngenta Cereals. “Our investment and expertise in wheat breeding is paying off, allowing Syngenta to bring to market new and better varieties with strong agronomic characteristics and higher top-end yield potential. We are pleased to see growers benefiting from our investment by choosing to plant more acres of AgriPro varieties than ever before.”
In 2016, AgriPro varieties were the top planted in five key wheat growing states. SY Wolf was the number one planted winter wheat variety in both Nebraska and South Dakota. In South Dakota, SY Wolf comprised 32 percent of all winter wheat planted. In Nebraska, SY Wolf comprised 7.4 percent of winter wheat planted with 94,000 acres.
In North Dakota, SY Soren and SY Ingmar were the top two spring wheat varieties planted with 15.4 percent and 11.5 percent, respectively, of the 6.30 million acres of the state’s spring wheat. In Washington, SY Ovation has become the number one planted winter wheat variety with 248,368 acres, 13 percent of the total winter wheat acres planted. SY Ovation was also the number one planted winter wheat variety in Idaho.
Syngenta is an industry leader in the development of superior wheat varieties, offering growers consistent performance in the field. AgriPro brand wheat varieties target high yield potential, good test weights, quality grain and superior disease protection. From seed to harvest, Syngenta supports the cereals market with a robust portfolio of seed and crop protection solutions. The unique portfolio breadth enables us to innovate and deliver integrated solutions to help farmers start strong and ultimately grow more wheat.
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