Orange Gall Midge in Soybeans
Justin McMechan - NE Extension Crop Protection and Cropping Systems Specialist
Thomas Hunt - NE Extension Entomologist
Aaron Nygren - NE Extension Educator, Colfax County
In late June we began receiving reports from a number of consultants, growers, and extension educators who were observing dying soybean plants in fields across eastern Nebraska. These soybean plants typically have dark discolorations near the soil surface that can extend up to the unifoliate node. The symptomatic plants easily snap off near the soil surface and orange to white maggots are often found feeding within the darkened area of the plant.
Orange gall midge is not a new insect to soybeans in Nebraska. Tom Hunt, Keith Jarvi and Bob Wright reported on the orange gall midge in a CropWatch article from August 2011 with some small isolated cases mostly associated with soybean plants that had some type of mechanical damage earlier in the season. Sporadic and isolated cases of orange gall midge have occurred over the last few years, but in all cases it appeared to be associated with a pathogen or damage and wasn’t considered a primary pest of soybeans.
This year we’re tracking a number of soybean fields where orange gall midge was reported in late June through early July. These infestations are much earlier than had been reported historically, raising concerns about yield losses in soybean fields. In late June infested soybean plants were already showing signs of necrosis and wilting with the greatest frequency of damaged plants occurring at the field edge. Randomly selected symptomatic plants from the field edge had an average of seven maggots per plant with the number of maggots and frequency of infested plants declining rapidly with distance from the field edge. Field samples found infested plants were still present over 100 feet into the field. Soybean fields exhibiting these symptoms have also been reported in northeast Nebraska, eastern South Dakota, and Iowa.
Little is known about the orange gall midge. Nebraska, South Dakota and Iowa researchers are currently attempting to rear adults from the maggots for species identification. In Nebraska, we’ve repotted infested plants from the field and placed them in a greenhouse with cages to capture the adults. In addition, we’ve also placed cages on infested plants in the field. Some adult midges have recently emerged from the repotted soybean plants in the greenhouse and we’ve transferred them to healthy and mechanically damaged soybean plants to see if we can recreate the symptoms. It is still not known if these midges are associated with orange gall midge. If emergence and adult numbers continue to increase, we will submit these specimens for identification.
Management
Many growers and consultants are asking us how to manage this pest. As of now, we don’t recommend applying any pesticides to fields due to the following factors. First, it’s unclear whether orange gall midge is responsible for the damage observed in soybean plants or if it’s a secondary pest. Mounting evidence is suggesting that orange gall midge may have a role in the damage. Second, pesticides are not likely to control the maggots that are feeding inside the stem. Lastly, it’s not known when adult orange gall midges emerge or the duration of emergence in soybean fields. Such factors are critical for determining if any economic returns will occur from a pesticide application.
If you suspect orange gall midge damage in your field, please report it to us via email to justin.mcmechan@unl.edu to help us catalogue the distribution of this potential pest.
GOVERNMENT OFFICIALS ENCOURAGED TO REGISTER FOR CLIMATE, WATER WORKSHOP
Nebraska Extension, the National Drought Mitigation Center at the University of Nebraska–Lincoln and the university’s School of Natural Resources are partnering to deliver a workshop focused on climate and water issues for government officials and other key community leaders.
The Climate and Water Institute of Excellence will be held from 9 a.m. – 4 p.m. Sept. 7 at the Lancaster Co. extension office, 444 Cherrycreek Rd. in Lincoln.
Water and a changing climate can greatly impact communities economically, through lost tax revenue; physically, when infrastructure is damaged; and socially, with decreased visitors and population. Organizers are encouraging anyone working with these complex issues in government, economic/community development, tourism, recreation, transportation, public works or other interested stakeholders to the day-long workshop.
During the event experts will highlight the science and impacts of Nebraska’s climate and water, and how these intersect with city and county planning and decision-making. Another session will cover policy so that changes in the state’s climate and water can be factored into business and government discussions. Additionally, a panel of presenters will discuss preparing for future climate conditions.
The cost of the workshop is $60. Registration is required by Aug. 31. To view the agenda and register, visit http://communityvitality.unl.edu/nacoie.
For more information, contact Jessica Jones at 402-335-3669 or jessica.jones.@unl.edu; or Carroll Welte at 402-374-2929 or cwelte1@unl.edu.
Congress Moves Closer to a One-Year ELD Delay
Senator Deb Fischer secured an amendment to the U.S. Senate Minibus Appropriation bill that would extend the electronic logging device (ELD) waiver for livestock haulers by one year.
"Nebraska's livestock industry greatly appreciates Senator Fischer's help to delay the ELD mandate while our industry works on a long-term solution to existing hours of service laws. One-size-fits-all regulations do not work when hauling live animals. Senator Fischer is a rancher and she understands that these regulations, as currently written, will cause serious animal welfare concerns," said Galen Frenzen, Nebraska Cattlemen President.
The one-year extension still needs to pass the U.S. House before it can become law. Similar language is already included in the FY 2019 Transportation, Housing & Urban Development spending bill. Nebraska Cattlemen encourages our federal delegation and those representing livestock constituents to pass this legislation and help alleviate the tremendous regulatory burden facing livestock haulers.
Smith Announces Tax Reform Roundtables
Today, Congressman Adrian Smith (R-NE) announced a series of roundtables to provide an opportunity for small business owners, including farmers and ranchers, to share their opinions of the Tax Cuts and Jobs Act and how to further improve the tax code. The House Committee on Ways and Means, of which Smith is a member, is expected to begin consideration of a second round of tax reform, dubbed “Tax Reform 2.0,” in the near future.
Tax reform roundtables will be held at the following times and locations:
Monday, August 13
2:00-3:00 PM MDT
Weborg 21 Centre, Hospitality Room
2625 10th Street, Gering
Wednesday, August 15
12:30-1:30 PM CDT
Central Community College, Room 131
1215 30th Avenue, Kearney
Thursday, August 30
12:00-1:00 PM CDT
Nebraska State Fair
Nebraska Building, Second Floor Board Room
501 E Fonner Park Road, Grand Island
Iowa Corn Farmer-Leader Duane Aistrope Elected to U.S. Grains Council
Delegates of the U.S. Grains Council elected Duane Aistrope, a farmer from Randolph, Iowa as an At-Large Director during its Annual Board of Delegates Meeting in Denver on Wednesday. Aistrope currently serves as Iowa Corn Promotion Board President.
“Being able to meet face-to-face with our international customers and form a friendship or a connection with them has been a highlight of my career as an Iowa Corn Promotion Board farmer-leader,” said Duane in his election speech. “After that first mission, I knew that I wanted to be more involved. I am passionate about creating new markets for our grain and that I have a dedication and drive to be a successful member of USGC board.”
Aistrope said he hopes to keep the Council a leader in global trade in developing markets, enabling trade and improving lives by ensuring they have the resources available to allow our International offices to promote our corn in all forms in the most efficient way. Iowa Corn checkoff funds are invested to support market development programs for USGC. The ultimate goal is to build more markets and increase corn consumption throughout the world.
Checkoff Sector Director, Craig Floss (the Iowa Corn CEO) has retired from the board after serving four and a half years. Deb Keller, Chair of the U.S. Grains Council will now serve as Past-Chair for the 2018-2019 year. She is a farmer from Clarion. She said during her address, “We gather at this meeting to discuss the dynamic and developing environment for global grains trade as well as demand opportunities for feed grains and their co-products around the world. Our goal is always to better understand agriculture’s role in world trade and how to maintain good working relationships with our international trading partners while we explore new export frontiers.”
In a global trade environment challenged by tariffs and tensions, emerging markets for grains and ethanol exports provided a bright spot for U.S. farmers, agribusinesses and industry officials attending the meeting. Navigating the new global trade landscape while maintaining and strengthening relationships with key partners, including Mexico and China, was the theme that took center stage during the meeting. Delegates heard from several speakers who talked about potential market opportunities. All agreed the long-term outlook for U.S. grains demand remains positive. U.S. Grain Council’s Chief Economist Mike Dwyer updated the delegates on the Council’s ethanol market development efforts. Dwyer told delegates, “Ethanol is the cheapest octane by far. No other grain-in-all-forms category comes close as a driver of growing corn demand.”
Webinar Explores Decomposition of Tea as Low-Cost, Scientifically-Robust Soil Health Indicator
Iowa Learning Farms will host a webinar exploring the decomposition of tea as a low-cost, scientifically-robust soil health indicator on Wednesday, Aug. 15 at 12 p.m.
The term soil health recently has become popular due, in large part, to the increased awareness of the importance of soil biology. However, current biological soil health tests are expensive, highly variable and difficult to interpret. Marshall McDaniel, assistant professor in soil-plant interactions at Iowa State University, studies the relationship between soils and plants, and how this relationship is affected by management and the environment. The McDaniel Research Group’s ultimate goal is to understand what enhances soil-plant synergy, soil health and agroecosystem sustainability. One thrust of the research is using decomposition of tea bags as an inexpensive, yet scientifically-robust, indicator of soil health.
“Increasing soil health is not only good for the environment, but also for the bottom line through increased yields and decreased money spent on farm inputs,” commented McDaniel. “Citizen Science is a great way to educate and engage farmers in measuring their own soil health, and also help to inform professional scientists’ understanding of soil health.”
The Iowa Learning Farms webinar series takes place on the third Wednesday of the month. To watch, go to www.iowalearningfarms.org/page/webinars and click the link to join the webinar shortly before 12 p.m. on Aug. 15 to download the Zoom software and log in option. The webinar will be recorded and archived on the ILF website for watching at any time at https://www.iowalearningfarms.org/page/webinars.
$60 Billion in Tariffs: Iowa Soybean Farmer and FFT Spokesman Scott Henry Reacts to More Tariffs that Threaten the American Heartland
Today, Farmers for Free Trade spokesman and Iowa soybean farmer, Scott Henry issued the following statement after China announced further retaliation that would target $60 billion in American exports. The products listed by China include additional American ag exports, including additional soybean products. Farmers for Free Trade last week announced a new, multi-million dollar campaign called Tariffs Hurt the Heartland that will highlight how tariffs are impacting farmers like Scott, along with others in rural America. For more on that campaign visit TariffsHurt.com.
“The tariffs announced today will cause more pain for American farmers and rural communities. At the top of the list of the over 5,000 American exports being targeted for new taxes are even more ag products, including more soy products. This latest escalation from China could threaten my livelihood and the livelihoods of other American farmers like me. Our patience is wearing thin.”
“What’s particularly concerning right now is that China is adjusting to a new normal that locks U.S. soybean farmers like me out of their market. While this trade war escalates, they are encouraging domestic planting, looking to alternative feed sources, and ramping up imports from Brazil, Canada, and Russia. The Chinese are leaving American farmers, who for years have reliably supplied their market, on the outside looking in, not just in the short-term, but potentially for decades to come.
“The eyes of rural America are trained on Washington right now. As farmers head into a harvest and borrowing season that could make or break family farms, they want to know two things: when will this trade war end and when are we going to get back in the business of opening markets to Made-in-America exports?”
SHOOT HOOPS, LEARN ABOUT IOWA AGRICULTURE DURING THE IOWA STATE FAIR
Iowa Secretary of Agriculture Mike Naig today encouraged visitors to the Iowa State Fair to shoot hoops and learn more about Iowa agriculture when visiting the “Ag Park” on the first floor of the Agriculture Building. Kids will also have the opportunity to experience “driving” through rural Iowa and see how all roads lead to agriculture with our simulated truck experience.
“The State Fair is a celebration of Iowa and a wonderful opportunity for fairgoers to have fun while seeing the many aspects of our state’s agriculture industry up-close. The Department is excited to again be able to interact with Iowans at our booths and work with ag organizations to help showcase how important agriculture is in our state,” Naig said. “I hope Iowans will stop by our booths to have some fun, but also take the opportunity to learn more about our state’s exciting and diverse agriculture industry.”
The Iowa Soybean Association, the Iowa Corn Growers Association, the Iowa Egg Council, Midwest Dairy Association, Iowa Turkey Federation, Iowa Pork Producers, and the Iowa Beef Industry Council will also be present in the “Ag Park” and have information available about Iowa agriculture. The Iowa Egg Council will be offering eggs on a stick to fairgoers from 9 a.m. to 6 p.m. every day of the fair.
In the Varied Industries building the Department will also have a display to educate Iowans about the activities of the Department and continue the tradition of weighing fairgoers on a scale certified by the Weights and Measures Bureau. The Department will also be handing out tech cleaning cloths with www.CleanWaterIowa.org on them, a website that was created for all Iowans learn about what they can do to help protect water quality. The cloths can be used to clean phone screens or glasses.
The Iowa Century Farm and Heritage Farm Awards will be presented on Thursday, Aug. 16 starting at 8:30 a.m. at the Livestock Pavilion. Everyone is invited to attend and help recognize the families receiving the awards. Century Farm awards recognize farms that have been in the same family for 100 years and Heritage Farms awards recognize farms that have been owned by the same family for 150 years.
There are 361 Century Farm winners and 148 Heritage Farm winners that will be recognized this year. The awards are sponsored by the Iowa Department of Agriculture and Land Stewardship and the Iowa Farm Bureau. The lists of the 2018 Century and Heritage Farm Award winners are available on www.IowaCenturyFarms.com. The site also includes a full, searchable list of Century Farm recipients from past years.
On Wednesday, Aug. 15 starting at 10:00 a.m. Gov. Kim Reynolds, Lt. Gov. Adam Gregg, Naig and Iowa DNR Acting Director Bruce Trautman will recognize 66 Iowa Farm Environmental Leader Award winners. The awards will be presented at the Penningroth Center inside the Cattle Barn and recognize the efforts of Iowa’s farmers as environmental leaders committed to healthy soils and improved water quality.
The awards recognize the exemplary actions of farmers that improve and protect the environment and natural resources of our state while also encouraging other farmers to follow in their footsteps by building success upon success. Hagie Manufacturing sponsors a luncheon for award winners following the ceremony at the Farm Bureau shelter that Naig will also attend. A full list of award recipients is available here.
At 10:00 a.m. on Tuesday, Aug. 14 the Department will be recognizing the winners of the 2018-2019 From the Farm to You Calendar drawing contest in the Agriculture Building. Kids from across the state submitted pictures for the calendar. Copies of the calendar are available to fairgoers at the Department’s booths in the Ag Building and the Varied Industries Building.
Naig will also participate in the 2018 Governor's Charity Steer Show on Saturday, Aug. 11, at 4:00 p.m., in the Pioneer Livestock Pavilion at the Iowa State Fair. Naig will be showing a steer owned by Alec Staudt from Floyd County. Immediately following the competition the steers will be sold at auction with proceeds going to the Ronald McDonald House Charities of Iowa.
The Iowa State Fair runs from Aug. 9 to 19 at the state fairgrounds in Des Moines.
USDA: Winter Wheat Production Down Less Than 1 Percent from June
Winter wheat production is forecast at 1.19 billion bushels, down less than 1 percent from the June 1 forecast and down 6 percent from 2017. As of July 1, the United States yield is forecast at 48.0 bushels per acre, down 0.4 bushel from last month and down 2.2 bushels from last year's average yield of 50.2 bushels per acre. The area expected to be harvested for grain totals 24.8 million acres, unchanged from the Acreage report released on June 29, 2018, but down 2 percent from last year.
Hard Red Winter production, at 657 million bushels, is up 1 percent from last month. Soft Red Winter, at 303 million bushels, is down 4 percent from the June forecast. White Winter, at 232 million bushels, is up less than 1 percent from last month. Of the White Winter production, 21.1 million bushels are Hard White and 211 million bushels are Soft White.
Durum wheat production is forecast at 74.9 million bushels, up 36 percent from 2017. The United States yield is forecast at 40.7 bushels per acre, up 15.0 bushels from last year. Area expected to be harvested for grain or seed totals 1.84 million acres, unchanged from the Acreage report released on June 29, 2018, but 14 percent below 2017.
Other spring wheat production is forecast at 614 million bushels, up 48 percent from last year. Area harvested for grain or seed is expected to total 12.9 million acres, unchanged from the Acreage report released on June 29, 2018, but 27 percent above 2017. The United States yield is forecast at a record high 47.6 bushels per acre, up 6.6 bushels from last year. Of the total production, 584 million bushels are Hard Red Spring wheat, up 52 percent from last year.
NPPC SUPPORTS CFTC COMMISSIONER NOMINEES
The National Pork Producers Council was one of nearly two dozen agricultural organizations on a letter addressed to U.S. Senate leadership this week in support of the nominations of Dawn DeBerry Stump and Dan Berkovitz as commissioners for the Commodity Futures Trading Commission (CFTC). The nominees, both approved by the Senate Committee on Agriculture, Nutrition and Forestry, will now be considered by the full Senate.
NPPC, along with the other organizations, urged the Senate to confirm Stump and Berkovitz in a timely manner, noting that farmers rely on well-functioning agriculture and energy derivative markets to hedge risks. The CFTC oversees those markets.
Smithfield Ordered to Pay $473.5M
(AP) -- A federal jury decided Friday that the world's largest pork producer should pay $473.5 million to neighbors of three North Carolina industrial-scale hog farms for unreasonable nuisances they suffered from odors, flies and rumbling trucks.
The jury found that Smithfield Foods owes compensation to 16 neighbors who complained in their lawsuit that the company failed to stop "the obnoxious, recurrent odors and other causes of nuisance" resulting from closely packed hogs, which "generate many times more sewage than entire towns."
The jury awarded $23.5 million in compensatory damages and $450 million in punitive damages, which will be reduced under a state law that limits punitive damages.
The case comes after two previous, related lawsuits rocked agribusiness in the country's No. 2 pork-producing state. Juries in those two cases awarded damages of about $75 million intended to punish Smithfield, though those amounts also were required to be cut.
North Carolina legislators reacted by adopting new barriers against nuisance lawsuits that all but eliminate the right of neighbors to sue Smithfield Foods or any other agribusiness. Critics billed the legislation as an attack on private property rights in order to protect a well-heeled industry.
U.S. Sen Thom Tillis and U.S. Rep. David Rouzer suggested they might seek national legislation after hearing Friday from agribusiness executives and agriculture officials from North Carolina, Georgia, Delaware and Texas in Raleigh.
"Today's nuisance lawsuits that are destroying livelihoods and communities in North Carolina are the tip of the iceberg for what is to come absent a well-informed public and good public policy," Rouzer said in a prepared statement Thursday. "This is a very slippery slope that threatens the very existence of every form of agriculture nationwide."
The Pender County, North Carolina, farms held thousands of hogs owned by a Smithfield Foods subsidiary. Smithfield was sued because plaintiffs' lawyers said the company used strict contracts to dictate how farmers raised Smithfield's animals.
One neighbor who was not part of the lawsuit compared the waste stench to long-dead corpses he found during his career as a police officer and firefighter, news outlets reported. Wesley Sewell testified that he bought his house out of foreclosure without realizing the hog operations were nearby and sometimes fled to another home when the smells were too strong.
Lawyers for the neighbors said Smithfield hasn't taken measures that would minimize the nuisances, for example by sending trucks along a back road to pick up hogs for slaughter in the middle of the night instead of rumbling past sleeping homes. Nor has the company covered the waste pits or otherwise tried to capture the smell and bacteria resulting from pooling liquefied waste, lawyers for the neighbors said. The company has done that in Missouri and Colorado, attorneys said.
The predominant method of handling hog waste in North Carolina is collecting it in open-air pits that are emptied by spraying liquid excrement on farm fields. The method was banned at new livestock operations in 1997, when industrial-scale hog operations began to be planned near the Pinehurst golf resort two years before it would host the U.S. Open tournament.
Smithfield has continued using the low-cost method because it helps the company produce pork for less than in China, lawyers for the neighbors said. Smithfield is owned by Hong Kong-headquartered WH Group, which posted profits of about $1 billion last year.
The neighbors' attorney, Michael Kaeske, asked the president of Smithfield's hog production division last week why the company couldn't afford to finance technology improvements on the farms that grow the company's hogs under contracts.
Smithfield's Gregg Schmidt testified even if the company shelled out the money, there was a risk farm owners couldn't afford to maintain it for the prices Smithfield would pay.
"The farm would not be sustainable, and in a short period of time it would be out of business," Schmidt said.
THIRD VERDICT AGAINST N.C. HOG FARM; PORK PRODUCERS TELL OFFICIALS ‘MADNESS’ MUST STOP
Another verdict against a North Carolina hog farm came the same day outraged farmers and National Pork Producers Council Past President Dr. Howard Hill gathered for a discussion of the suits’ threat to the state’s pork industry. North Carolina congressional lawmakers Sen. Thom Tillis and Rep. David Rouzer joined U.S. House Agriculture Committee Chairman Mike Conaway, R-Texas, USDA Farm and Foreign Agricultural Service Under Secretary Bill Northey, North Carolina Agriculture Commissioner Steve Troxler and agriculture officials from several other states for the National Agriculture Leaders Roundtable in Raleigh today to hear from hog farmers about nuisance lawsuits brought against 26 pork operations over noise and odors. Three of the cases have been decided over the past three months.
In testimony to the officials, Hill noted that the judge in all three cases believes people who have moved to North Carolina’s rural communities can sue farmers for millions of dollars “for doing nothing more than simply farming. Enough is enough,” said Hill. “It’s time for our elected leaders to step up and stop this madness.” So far, the “madness” has resulted in three verdicts of nearly $100 million against family hog farmers who’ve operated in eastern North Carolina for decades.
The North Carolina Legislature in June approved the Farm Act of 2018 to address nuisance lawsuits against agricultural operations. The new law sets a deadline for bringing such suits of one year from an operation’s start and allows punitive damages only against a farm that had a criminal charge or code violation. (In late June state lawmakers overrode Gov. Roy Cooper’s veto of the measure.) Tillis and Rouzer indicated they may introduced federal legislation to check such lawsuits.
National Roundtable on Lawsuit Abuse
American Farm Bureau Federation President Zippy Duvall today joined a special national agriculture roundtable highlighting a recent wave of nuisance lawsuits targeting North Carolina hog farms. The event, which was held in Raleigh, North Carolina, brought together legislators and agriculture leaders to discuss the growing threat to farmers and exposed how out-of-state trial lawyers are using nuisance lawsuits to circumvent state right-to-farm laws.
The discussion centered on the economic impact of nuisance lawsuits on America’s farmers and rural communities.
“This is pitting neighbor against neighbor and community against community,” said Duvall. “The regulations need to be on the trial lawyers. We need to let our farmers and ranchers do what they do best, and that is feeding the world. They will not be a nuisance. They deserve a fair shot. They deserve to grow and succeed,” he said.
North Carolina Farm Bureau President Larry Wooten also addressed the panel. “What concerns me are the scars that could be left in rural North Carolina and in our rural communities due to these types of lawsuits,” he said.
Attendees also heard about the looming threat to all aspects of U.S. agriculture nationwide.
“This is something that not only affects our animal agriculture, it affects our crop agriculture. If we don’t do something about it now, there is not a farm in the country that won’t be affected,” said North Carolina Agriculture Commissioner Steve Troxler.
ASA is Now Accepting Applications for the Conservation Legacy Awards
Share the story of how conservation is part of your farm operation and you could be recognized with a Conservation Legacy Award. The awards recognize farm management practices of U.S. soybean farmers that are both environmentally friendly and profitable.
Are you using a reduced tillage practice on your farm? Do you grow cover crops? Have you taken steps to improve energy efficiency or water quality? These are just a few conservation practices used on some farms today that can help produce sustainable U.S. soybeans. Different regions of the country have their own unique challenges and ways to approach conservation and sustainability. We want to hear your farm’s conservation story!
All U.S. soybean farmers are eligible to enter to win a Conservation Legacy Award. Entries are judged on soil management, water management, input management, conservation, environmental management and sustainability.
A new region has been added to this year’s program in order to recognize the conservation accomplishments of more U.S. soybean farmers. The four regions are now the Midwest, Upper Midwest, the Northeast and the South. One farmer from each of these regions will be recognized at the 2019 Commodity Classic in Orlando, Florida, and one of these farmers will be named the National Conservation Legacy Award recipient.
Award Winners Receive:
- An expense paid trip for two to Commodity Classic, Feb. 28 – March 2, 2019, in Orlando, Florida.
- Recognition at the ASA Awards Banquet at Commodity Classic.
- A feature story in Corn & Soybean Digest and a video featuring the award winner’s farm and conservation practices.
- Potential opportunity for the national winner to join other farmer-leaders on an international trip to visit U.S. soy customers overseas.
The Conservation Legacy Awards are sponsored by the American Soybean Association (ASA), BASF, Corn & Soybean Digest, Monsanto, the United Soybean Board/soybean checkoff and Valent U.S.A.
More information on past winners of the award and how to submit your application is available in the “Awards” section of the ASA website www.soygrowers.com. All applications must be submitted by Friday, Sept. 7, 2018.
Rabobank financial sustainability expert and ruminant nutritionist from Rothamsted Research to speak at Global Conference on Sustainable Beef in Ireland
The Global Roundtable for Sustainable Beef (GRSB) is proud to announce two key global industry leaders who will join the important conversations surrounding global beef sustainability at the Global Conference on Sustainable Beef (GCSB) to be held in Kilkenny, Ireland at the Lyrath Estate, October 9-12, 2018.
The opening keynote will explore the Economic Impacts of Sustainability Today and Forecasts for Tomorrow with Rabobank. From its cooperative and agricultural roots, Rabobank has grown to become the world's leading financial services provider for the food and agribusiness sector.
Rabobank brings its extensive knowledge of food chain links, as generated, enhanced and distributed by the RaboResearch Food & Agribusiness department. The Bank has over 80 food and agribusiness research analysts around the world collecting information and spotting opportunities using local knowledge and global reach across all food and agricultural sectors.
Justin Sherrad, Global Animal Protein Strategist at Rabobank stated, “Participating in the Global Conference on Sustainable Beef is in line with our mission of Growing a Better World Together. The partnership with leading international organizations like GRSB, helps us in our drive to make a serious contribution to addressing and creating sustainable approaches to food and agribusiness around the world.”
The Capstone for the conference will be Professor Michael Lee, of Rothamsted Research, the oldest agricultural research institute in the world. Professor Lee is Head of Sustainable Agriculture Sciences at North Wyke and professor of Sustainable Livestock Systems at the University of Bristol. As a ruminant nutritionist, Lee is leading key conversations around how to maximize livestock production efficiency through feeding systems and animal genetics at a global scale.
Lee stated, “Ruminants make an important contribution to global food security as they can convert feed that is unsuitable for human consumption to high value protein, demand for which is currently increasing at an unprecedented rate.”
The conference, co-hosted by the European Roundtable for Beef Sustainability (ERBS) and Bord Bia, will highlight sustainability in action: impacts on the ground, and more than 200 beef sustainability stakeholders from over 20 countries are expected to attend.
Registration details and a full conference agenda can be found at https://grsbeef.org/2018-Global-Conference.
AGCO will Debut New TerraGator C Series from Challenger at MAGIE 2018
AGCO Corporation (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, will debut the new TerraGator® C Series high-flotation nutrient applicator and redesigned spray system at the Midwest Ag Industries Expo (MAGIE) in Bloomington, Ill., August 22 – 23. Show attendees will see the latest TerraGator 4-wheel and 3-wheel floaters from Challenger® at the AGCO Lot, #806. There also will be a sneak peek of the RoGator® AirMax Precision™ dry application system that will be introduced in 2019 for precision application in and out of the growing season.
Since their introduction, TerraGator high flotation applicators have led the industry in accurately applying more products in a single pass through the field. Today, TerraGator C Series applicators by Challenger® continue this legacy, providing nearly endless choices in single-pass fall or spring preemergence nutrient application, bringing even more accuracy and versatility to variable-rate crop input application to help optimize yields.
“We continuously look for ways to further improve the precision, power and versatility of our application equipment,” says Mark Mohr, tactical marketing manager for AGCO’s application division. “The TerraGator C Series floaters deliver unmatched productivity because we understand timeliness drives our retail customers’ business and producers’ agronomic needs. These applicators are built to get the job done quickly and efficiently no matter the crop or the conditions.”
For operator convenience, the TerraGator C Series features the same application-focused operator environment, intuitive command center and touchscreen AccuTerminal found in the RoGator C Series row crop applicators. Enhanced cab suspension provides a comfortable ride that helps operators be just as productive at the end of a long day as they are at the start. Improved visibility and transmission upgrades that put more power to the ground are other new features of the TerraGator C Series high flotation applicators.
When it comes specifically to liquid application, the TerraGator C Series delivers major on-target, efficiency and uptime benefits. The re-designed spray system has robust, full-featured booms and a new reload station that delivers greater control, exceptional accuracy and added convenience when applying liquid products.
“During MAGIE, operators will want to check out the new TerraGators, the new boom features, sprayer reload station, and other updates that help save time and increase productivity,” says Mohr.
Welcome to the KTIC Agriculture Information blog!!! Check back here for the latest in ag news and information, from local events to international happenings and government reports that affect your operation. Please email with suggestions! -Chad Moyer, Farm Director, KTIC Radio
Saturday, August 4, 2018
Friday, August 3, 2018
Thursday August 2 Ag News
Nebraska partners to fight antimicrobial resistance
The University of Nebraska–Lincoln will help lead a new national institute addressing antimicrobial resistance, an increasingly urgent global public health concern, the Association of Public and Land-grant Universities and the Association of American Veterinary Medical Colleges announced July 26.
The university is partnering with Iowa State University, the University of Nebraska Medical Center and the University of Iowa. The proposal was selected from among nine submitted by major universities throughout the nation.
Each year in the U.S., at least 2 million people are sickened from bacteria resistant to antibiotics, and 23,000 people die from those infections. Many more die from other conditions complicated by an antibiotic-resistant infection, according to the Centers for Disease Control and Prevention. Infections from drug-resistant “superbugs” result in an estimated $20 billion a year in direct health care costs and up to $35 billion in lost productivity from hospitalizations and sick days.
“Antimicrobials are critically important tools for maintaining human, animal and crop health,” said Mike Boehm, University of Nebraska vice president and Harlan Vice Chancellor for the University of Nebraska-Lincoln Institute of Agriculture and Natural Resources.
“This new institute will accelerate discoveries and engage producers in new and impactful ways that will enhance the stewardship and prolong the shelf life of these disease-prevention tools. The establishment of this institute is a big deal and we are excited about this next chapter of our partnership with our colleagues from Iowa, the industry and beyond.”
The institute will be jointly funded by the University of Nebraska–Lincoln and Iowa State at a combined $525,000 per year for three years ($1.575 million total). Rodney Moxley, Charles Bessey Professor of Veterinary Medicine and Biomedical Sciences at Nebraska, will play a leadership role.
The Institute for Antimicrobial Resistance Research and Education stems from recommendations by a joint AAVMC/APLU task force, which authored a 2015 report outlining an array of research and education initiatives to address antimicrobial resistance. The report recommended that veterinarians, physicians and other scientific experts work closely together to attain optimal health for people, animals and the environment. The institute will help coordinate and implement those recommendations at universities and veterinary medical colleges across the country.
The new institute will build upon an existing partnership. The universities involved began to address some of these same problems three years ago through the Antimicrobial Resistance Consortium, a research initiative that has involved Nebraska, UNMC, Iowa State, Iowa, the USDA Agricultural Research Service, the Mayo Clinic and a team of more than 100 researchers, educators, clinicians and extension personnel.
“Antimicrobial resistance touches each of us in our daily lives. This new institute provides a great resource for the entire country as we work to build strong, collaborative research and educational programs to mitigate this risk,” said Paul Plummer, associate professor of veterinary diagnostic and production animal medicine at Iowa State. Plummer directed the AMR Consortium and will serve as executive director of the institute, which will be housed at Iowa State.
Nebraska Extension trains first responders for livestock emergencies
On any given day, thousands of livestock such as cattle, swine, poultry and equine are in transit throughout Nebraska. When accidents happen involving these livestock, it makes the scene much more complex to manage. Nebraska Extension’s livestock emergency response plan training is educating first responders on how to deal with such accidents.
“Knowing how to assess the situation of the animals and how to properly handle the animals – for everyone’s safety is a key factor,” said Nebraska Extension Educator Rob Eirich.
In 2017, there were 2,558 accidents involving animals, according to the Nebraska Department of Transportation. When livestock are involved in accidents it adds a layer of complexity. Animals may not be contained; they could be injured or trapped, or could even cause additional accidents or harm. The livestock emergency response plan training sets out to educate any first responders who may be involved with livestock accidents.
In June, extension and the Nebraska Department of Agriculture partnered to host the first livestock emergency response plan training in Grand Island for first responders, including the state patrol, fire departments, emergency medical technicians, sheriffs, county emergency planners, veterinarians and others. Over 30 people attended the training.
Livestock training is not common in traditional emergency response fields so those that respond to accidents often are unaware of how livestock will respond to stress. For example, most livestock are color blind, have no depth perception and see 330 degrees around them, all of which will affect how they react in certain situations. Bright floodlights and flashing lights could cause a response that could do more harm or damage.
According to Eirich, a key part of the training is helping first responders develop a plan before arriving at an accident where livestock are involved, so they are prepared and know how to approach the scene appropriately. The Grand Island training day was so well-received that Nebraska Extension is planning more for the future.
“The plan is to now use a core group from this first training to expand across the state with two more trainings currently in the process of planning,” said Eirich. “With the livestock industry strong and growing in Nebraska, the need for first responders to be trained in emergency planning with livestock will drive demand.”
Others included on the core livestock emergency response plan team include Kim Clark, Ashley Mueller and Megan Patent-Nygren with Nebraska Extension and Chelsea Kramer with the Nebraska Department of Agriculture.
For more information about livestock emergency response training, contact Nebraska Extension Educator Rob Eirich at 308-632-1230 or reirich2@unl.edu.
NEBRASKA 2018 FARM REAL ESTATE VALUE AND CASH RENT
Nebraska's farm real estate value, a measurement of the value of all land and buildings on farms, decreased from 2017, according to USDA's National Agricultural Statistics Service. Farm real estate value for 2018 averaged $2,850 per acre, down $50 per acre (2 percent) from last year.
Cropland value decreased slightly from last year to $4,540 per acre. Dryland cropland value averaged $3,550 per acre, unchanged from last year. Irrigated cropland value averaged $6,150 per acre, $30 below a year ago. Pastureland, at a record high $1,010 per acre, was $80 higher than the previous year.
Cash rents paid to landlords in 2018 for cropland were mixed from last year. Irrigated cropland rent averaged $238 per acre, unchanged from last year. Dryland cropland rent averaged $150 per acre, $1 higher than a year earlier. Pasture rented for cash averaged $22.50 per acre, $2 below the previous year.
Iowa Crop Values Report
The production of Iowa’s field and miscellaneous crops was valued at $14.0 billion in 2017, according to the USDA, National Agricultural Statistics Service – Crop Values summary. This was a 4 percent decrease from 2016.
The value of corn for grain production totaled $8.47 billion, down 6 percent from the previous year, and production was down 5 percent. Iowa’s corn price averaged $3.25 per bushel, a decrease of $0.05 from the last marketing year.
Down 2 percent from 2016, the value of soybean production was $5.19 billion, and production was down 1 percent. Average prices decreased $0.09 from the previous year to $9.25 per bushel.
Value of production increased in 2017 from 2016 for oats, alfalfa hay, other hay, and all forage. Value of production decreased from the previous year for winter wheat.
Cash Rent
Cropland cash rent paid to Iowa landlords in 2018 averaged $231.00 per acre according to the USDA, National Agricultural Statistics Service. Non-irrigated cropland rent averaged $231.00 per acre, unchanged from last year. Pasture rented for cash averaged $54.00 per acre, unchanged from the previous year.
Farm Production Expenditures
Iowa farm production expenditures totaled $26.4 billion in 2017, according to the latest USDA, National Agricultural Statistics Service – Farm Production Expenditures Annual Summary report. This was $55 million more than the 2016 total expenditures. Feed expense, which declined 16 percent to $4.40 billion, represented the largest single production expense in Iowa in 2017, accounting for 17 percent of the total. Livestock, Poultry, and Related purchases, which rose 14 percent to $4.31 billion, was the second largest expense, and accounted for 16 percent of total expenditures. Rent expense increased 2 percent to $3.64 billion, and accounted for 14 percent of the total. The largest percentage increases from last year were for Trucks and Autos (up 50 percent), Labor (up 18 percent), Livestock (up 14 percent), and Interest (up 12 percent).
2017 United States Total Farm Production Expenditure Highlights
Farm production expenditures in the United States are estimated at $359.8 billion for 2017, up from $346.9 billion in 2016. The 2017 total farm production expenditures are up 3.7 percent compared with 2016 total farm production expenditures. For the 17 line items, 13 showed an increase from previous year, while the rest showed a decrease.
The four largest expenditures at the United States level total $176.2 billion and account for 49.0 percent of total expenditures in 2017. These include feed, 15.3 percent, farm services, 12.2 percent, livestock, poultry, and related expenses, 11.7 percent, and labor, 9.8 percent.
In 2017, the United States total farm expenditure average per farm is $176,352, up 4.3 percent from $169,035 in 2016. On average, United States farm operations spent $27,056 on feed, $20,635 on livestock, poultry, and related expenses, $21,468 on farm services, and $17,204 on labor. For 2016, United States farms spent an average of $27,092 on feed, $20,319 on farm services, $19,491 on livestock, poultry, and related expenses, and $16,616 on labor.
Total fuel expense is $12.0 billion. Diesel, the largest sub component, is $7.6 billion, accounting for 63.3 percent. Diesel expenditures are up 2.7 percent from the previous year. Gasoline is $2.2 billion, up 4.8 percent. LP gas is $1.4 billion, up 22.4 percent. Other fuel is $780 million, up 21.9 percent.
The United States economic sales class contributing most to the 2017 United States total expenditures is the $1,000,000 - $4,999,999 class, with expenses of $114.9 billion, 31.9 percent of the United States total, up 1.7 percent from the 2016 level of $113.0 billion. The next highest is the $5,000,000 and over class with $84.2 billion, up from $80.6 billion in 2016.
In 2017, crop farms expenditures increased to $183.9 billion, up 3.9 percent, while livestock farms expenditures also increased to $175.9 billion, up 3.5 percent. The largest expenditures for crop farms are labor at $25.4 billon (13.8 percent), rent at $24.9 billion (13.5 percent of total), and farm services at $24.4 billion (13.3 percent). Combined crop inputs (chemicals, fertilizers, and seeds) are $51.8 billion, accounting for 28.2 percent of crop farms total expenses. The largest expenditures for livestock farms are feed at $53.4 billion (30.4 percent of total), livestock, poultry and related expenses at $40.1 billion (22.8 percent), and farm services at $19.4 billion (11.0 percent). Together, these line items account for 64.2 percent of livestock farms total expenses. The average total expenditure for a crop farm is $210,081 compared to $151,005 per livestock farm.
The Midwest region contributed the most to United States total expenditures with expenses of $109.1 billion (30.3 percent), up from $108.9 billion in 2016. Other regions, ranked by total expenditures, are the Plains at $93.7 billion (26.0 percent), West at $77.7 billion (21.6 percent), Atlantic at $43.1 billion (12.0 percent), and South at $36.2 billion (10.1 percent). The West increased $6.34 billion from 2016, which is the largest regional increase.
Combined total expenditures for the 15 estimate states is $238.3 billion in 2017 (66.22 percent of the United States total expenditures) and $228.0 billion in 2016 (65.7 percent). California contributed most to the 2017 United States total expenditures, with expenses of $37.4 billion, (10.4 percent). California expenditures are up 9.3 percent from the 2016 estimate of $34.2 billion. Iowa, the next leading state, has $26.4 billion in expenses, (7.3 percent). Other states with more than $20 billion in total expenditures are Texas with $25.9 billion and Nebraska with $22.6 billion.
Agricultural Land Values Highlights
The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $3,140 per acre for 2018, up $60 per acre (1.9 percent) from 2017 values. Regional changes in the average value of farm real estate ranged from an 8.3 percent increase in the Southern Plains region to 1.4 percent decrease in the Northern Plains region. The highest farm real estate values were in the Corn Belt region at $6,430 per acre. The Mountain region had the lowest farm real estate value at $1,140 per acre.
The United States cropland value averaged $4,130 per acre, an increase of $40 per acre from the previous year. In the Southern Plains region, the average cropland value increased 4.7 percent from the previous year, while in the Lake region, cropland values decreased by 0.6 percent.
The United States pasture value increased by $40 per acre (3.0 percent) from 2017 values. The Southern Plains region had the highest increase from 2017 at 5.6 percent. The Pacific region remained unchanged at $1,650 per acre.
Cattle Krush App now free for Iowa Cattlemen’s Association Members
The Iowa Cattlemen’s Association (ICA) and Performance Livestock Analytics (PLA) have partnered to bring Iowa’s cattle producers the Cattle Krush service for free.
Cattle Krush, one of the software programs created by the award-winning PLA team, helps cattle producers predict and capture profit opportunities.
Beef producers’ profit is determined by the price of feeder calves, the cost of gain, and the price received for the fed cattle. But those three prices are changing minute by minute in today’s fast-paced world. PLA’s Cattle Krush integrates all of the data and puts it in the palm of your hand.
Producers can use Cattle Krush at the auction house when buying calves, and the app will calculate the profitability of the lot, based on the auction price, grain prices, and cattle futures markets. Then, once calves are purchased, cattle producers can use the “My Lots” feature. The app alerts users when profit opportunities appear, at which point the feeder can contact their broker to lock in the profit.
PLA’s CEO Dane Kuper explains, “Our Cattle Krush App puts the key data already custom analyzed to the farmer’s unique situation into an easy to understand format on a 4G high-speed smartphone or tablet. It’s in the farmer’s hand whether he or she’s in the pickup, at the sale barn, or in the field. A desktop computer sitting in the farm office just isn’t convenient or timely enough. To succeed today, it has to be my farm’s data and current prices in my local markets. Our pop-up alerts help farmers pull the trigger before the target disappears.”
Cattle Krush, a $75/month value, is now available to Iowa Cattlemen’s Association members for free. “Our mission is to grow Iowa’s beef business through advocacy, leadership and education,” says ICA CEO Matt Deppe. “Our producers have told us, through surveys and listening sessions, that they want more information about cattle prices, marketing and profitability. Cattle Krush is going to fill that need and help our independent Iowa cattle producers improve their operations and profits.”
To take advantage of this offer, producers should visit http://www.performancelivestockanalytics.com/ and click on Cattle Krush, then enter the discount code “iacattle” at checkout. For questions about Cattle Krush, or PLA’s additional services, including Performance Beef, call (515) 337-2187.
This Week's Drought Summary
droughtmonitor.unl.edu
Early in the drought week, moderate precipitation fell along the East Coast with the heaviest rains falling in the eastern Carolinas and central Pennsylvania. Much-needed rains fell in a swath of area covering eastern Wyoming, much of Nebraska, Kansas and Oklahoma, eastern Colorado and the majority of New Mexico. The northern Plains, Midwest and South saw lighter precipitation amounts. Central and south Texas saw little to no precipitation during the week while the dry pattern continued for much of the West. For the month of July, preliminary statewide temperature data suggest much of the U.S. was warmer than average. The West, Southwest, South, and Northeast were among the warmest third of historical records which date back 124 years. Total precipitation amounts for the month of July were below average for much of the Midwest and Northwest. Also during the month of July, above average precipitation fell in the Mid-Atlantic States to Northeast, Southwest and parts of the High Plains.
Midwest
Generally, precipitation was below normal for much of the Midwest during the week. The only areas that received above-normal rains were eastern Missouri, central Illinois and western Indiana. There, a swath of light rains (one to three quarters of an inch) fell. However, the rains were only enough to contract drought in western Illinois. Elsewhere, D0 and D1 was expanded to cover the rapidly deteriorating conditions which were mostly concentrated in Missouri but also in southern Iowa and the southern tip of Illinois. Abnormal dryness remained in Wisconsin where 30-day precipitation was generally 25-50 percent of normal in some places. Average streamflows during the last 28 days in southeast Michigan were running at the 10-30 percentile level. Moderate drought was expanded in Michigan and parts of northern Ohio.
High Plains
A swath of light to moderate precipitation fell in an area roughly covering north and east Wyoming, east Colorado and much of Nebraska and Kansas. The heaviest precipitation fell in western Nebraska, Kansas and eastern Colorado where amounts of 2 inches were widespread. Despite the rains, long-term drought was hardly effected. There was a slight improvement in southeast Colorado, and D1 was removed in southwest Kansas where short term indicators have rebounded. Despite the monsoon season ramping up, dryness continued in west central Colorado where D3 was expanded. Moderate drought was expanded in southwest Wyoming where it remained dry during the period. There was also a slight expansion of D0 and D1 in North Dakota while D0 was contracted in southeast North Dakota into northeast South Dakota.
Looking Ahead
During the next five days, moderate to heavy precipitation is projected to fall along the East Coast with amounts generally totaling up to five inches. The heaviest rains are forecasted to fall in the Southern Appalachians and the Panhandle of Florida. Much of the South is forecasted to remain dry during the next five days but average temperatures are expected to remain near normal. Temperatures could be as much as 10-20 degrees F below normal for parts of the Midwest early in the period along with 1-2 inches of precipitation. Temperatures in this area are expected to rebound later in the period. The Southwest Monsoon is expected to continue, producing beneficial rains for New Mexico and parts of Arizona. The Climate Prediction Center expects the greatest odds of above normal temperatures in the Southern Rockies stretching into the High Plains and in the Northeast during the next 6-10 days. The greatest probability of below normal precipitation during this period is centered in the High Plains.
Soybean Farmers Return to DC to Drive Home Their Message:
We Need Long-Term Solutions to the Trade War
Returning to Washington just weeks after their July Board of Directors meeting, grower leaders from the American Soybean Association (ASA) met again with officials at the U.S. Department of Agriculture (USDA) and Members of Congress to consider options for offsetting the long-term damage from China’s retaliatory tariff on American soybeans.
John Heisdorffer, a soy grower from Keota, Iowa, and President of ASA said, “We know that President Trump is aware of how hard this is hitting agriculture and specifically soybeans. The recent announcement that the European Union has agreed to buy more U.S. soybeans is a welcome step. Given the scale of potential damage from the tariff, we need more market-opening measures if we are going to survive the long-term repercussions on soybean exports.”
“We are asking, first, that Congress pass a new long-term farm bill that increases funding for export promotion under MAP and FMD. The Trade Promotion Program announced by USDA last month will supplement these much-needed efforts, and we hope to see this funding extended over a multi-year period so that activities can be coordinated with the Congressionally-mandated programs.”
In addition to asking Congress to pass the Farm Bill, ASA grower leaders urged the House Ways and Means Committee and Senate Finance Committee to support negotiation of new free trade agreements. ASA is asking that NAFTA be in place by the end of 2018, and that bilateral FTAs be initiated with Japan and other countries that offer increased markets for soy and livestock products. ASA also asked lawmakers to support funding to upgrade inland waterways infrastructure in order to maintain the U.S. competitive advantage.
“We need these tools,” said Heisdorffer. “The certainty and stability of our industry depends on, number one, getting these tariffs removed as quickly as possible and, number two, taking steps now to offset the damage done by this trade war by negotiating trade agreements and funding programs essential to opening new markets for our farm products.”
China imported 31% of U.S. production in 2017, equal to 60% of total U.S exports and nearly 1 in every 3 rows of harvested beans, which makes expanding existing and finding new markets crucial for the U.S. soybean industry.
South Dakota Feedlot Honored for Outstanding Environmental Stewardship
Moes Feedlot, in Watertown, S.D., has been selected as one of six regional honorees of the Environmental Stewardship Award Program (ESAP). The award, announced during the 2018 Cattle Industry Summer Business Meeting Aug. 1, 2018, recognizes the operation’s outstanding stewardship and conservation efforts. This year’s regional winners will compete for the national award, which will be announced during the Annual Cattle Industry Convention in New Orleans, La., in February 2019.
Established in 1991 by the National Cattlemen’s Beef Association to recognize outstanding land stewards in the cattle industry, ESAP is generously sponsored by Corteva Agriscience, Agriculture Division of DowDuPont, McDonald’s, USDA Natural Resources Conservation Service (NRCS), U.S. Fish and Wildlife Service, and the National Cattlemen’s Foundation.
“Cattlemen and women everywhere understand that the land, air and water resources in their care are the cornerstone of their success and they are only stewards of those resources for a short time,” said NCBA President Kevin Kester. “Each of us understands the importance of improving those resources and leaving them better for future generations. This year’s nominees are outstanding examples of what is possible for the beef industry and they serve as an inspiration for producers everywhere to continue improving their stewardship practices.”
Moes Feedlot got started in 1987, with 20 bred heifers in 1988. The operation got to the point where they were feeding 400 head on outside lots without much in the way of their own facilities, but changed when John Moes’ son, Bryan, returned to the operation. The Moes family knew that they needed a way to support future generations, so they installed a new monoslope facility in order to increase the capacity of the feedyard.
“We didn’t really have the availability to buy any land,” said Bryan, “so we started investing in the feedlot. In 2011 we did another expansion to have 1,999 head.”
With the feedlot expansion came the need to control any runoff. All of the facilities were carefully designed so water and nutrients are captured before they can reach sensitive wetlands and watersheds.
“It was very important for us to make sure that all of our runoff was contained and handled in a safe matter to the environment,” said Bryan. “So, everything is collected from the manure for rain runoff where nothing goes to our slews. That was very important for us to coexist with the water holes we have around us.”
Manure scraped from the pens is a valued asset and applying it to the fields has improved soil quality and crop yields while decreasing the use of commercial fertilizer.
“We’ve raised our organic matter from a two to a 6 ½,” said John. “With that, every percent of organic matter that you increase you get an extra inch of holding capacity. We’re keeping the water on the ground, and it’s going up to the atmosphere and coming back down on our area instead of running down the river.”
The Moes family is always on the lookout for new technology that can help them become better stewards of the land. Their feeding systems includes identification tags to allow for increased efficiency in sorting. They also use their tablets and smartphones to keep track of the feed wagon and monitor the health of the cattle—even when they’re away from home.
For more than a decade, John has worked with South Dakota State University (SDSU) on beef cattle reproduction projects. The research has helped them tighten up their breeding and calving seasons. “This family’s really willing to try new things,” said Stephanie Perkins, a lab technician at SDSU. “Every year when we finish with the study John wants to know the results right away. He’s very keen on knowing what the next step is and what he can do to better his operation.”
The Moes family has also planted 25 acres of trees to serve as a windbreak and to provide habitat for wildlife. Their pastures are currently in a 10-year easement program, and they put a perpetual easement on 230 acres. Over the years they’ve cross-fenced pastures and installed pipelines and water tanks to help improve their rotational grazing system.
“When we do all this, we’re thinking of the next generation,” said Bryan. “We want to make this land as good—or better—than when we got it for them. So by making it as good or better for them they can keep growing and expanding, and keep this symbiotic relationship with the livestock and the wildlife.”
USDA Dairy Products June 2018 Production Highlights
Total cheese output (excluding cottage cheese) was 1.06 billion pounds, 1.8 percent above June 2017 but 1.9 percent below May 2018. Italian type cheese production totaled 450 million pounds, 0.1 percent below June 2017 and 1.8 percent below May 2018. American type cheese production totaled 431 million pounds, 2.7 percent above June 2017 but 2.9 percent below May 2018. Butter production was 143 million pounds, 3.1 percent above June 2017 but 14.7 percent below May 2018.
Dry milk products (comparisons in percentage with June 2017)
Nonfat dry milk, human - 148 million pounds, down 9.0 percent.
Skim milk powder - 58.9 million pounds, up 49.2 percent.
Whey products (comparisons in percentage with June 2017)
Dry whey, total - 87.4 million pounds, down 0.7 percent.
Lactose, human and animal - 91.3 million pounds, down 5.0 percent.
Whey protein concentrate, total - 39.9 million pounds, down 1.1 percent.
Frozen products (comparisons in percentage with June 2017)
Ice cream, regular (hard) - 71.3 million gallons, down 4.7 percent.
Ice cream, lowfat (total) - 45.5 million gallons, down 0.8 percent.
Sherbet (hard) - 3.46 million gallons, down 9.5 percent.
Frozen yogurt (total) - 5.43 million gallons, down 3.3 percent.
NCGA Welcomes Administration Support for High Octane Fuels
The Environmental Protection Agency (EPA) and Department of Transportation (DOT) today recognized the benefits of high octane fuels, such as mid-level ethanol blend, in their proposed SAFE Vehicles rule. The agencies specifically requested comments on how EPA, “could support the production and use of higher octane gasoline” to support compliance with vehicle fuel economy and greenhouse gas emissions standards.
As corn growers know, ethanol is a high octane fuel that provides a cost effective means for automakers to reduce GHG emissions and improve fuel economy when used with optimized engines. Analyzing fuels and vehicles as a system provides automakers with more flexibility and options to meet vehicle standards.
As an active member of the High Octane Low Carbon Alliance (HOLC), NCGA has advocated for the benefits of high octane fuels. The agencies’ proposed rule today acknowledges HOLC and information we provided on high octane fuels as this proposed rule was drafted.
Moving forward, NCGA will provide comments to EPA and DOT focused on the high octane portions of the proposed rule as part of the organization’s mission to create and increase opportunities for corn growers.
Growth Energy Welcomes ELEMENT as 100th Plant Member
Growth Energy, the nation’s top ethanol advocate, is proud to welcome ELEMENT, LLC as its newest member. The addition of the new Colwich, Kansas-based bio-refinery marks the 100th plant member for Growth Energy.
The Andersons, Inc. have partnered with ICM, a current Growth Energy member, to form ELEMENT, LLC, to build and operate a 70 million gallon per year facility that is expected to be the lowest environmental impact ethanol production facility in the United States. ELEMENT expects to commence production in the second quarter of 2019.
Growth Energy, The Andersons, and ICM issued the following statements:
“We are so proud to welcome ELEMENT as the hundredth member of the Growth Energy family,” said Emily Skor, CEO of Growth Energy. “ELEMENT is the result of an invaluable partnership between ICM and The Andersons, and we look forward to collaborating with these industry leaders to provide Americans with cleaner burning renewable biofuels at the pump.”
“We’re thrilled to team up with Growth Energy as ELEMENT builds the most technologically advanced and greenest dry mill ethanol plant in the world,” said Mike Irmen, President of The Andersons Ethanol Group. “Growth Energy has supported our industry for 10 years. We’re looking forward to tapping their knowledge and supporting the ethanol promotion effort.”
“ICM is extremely excited about working on this project. We are about a year away from launching the plant, but we look forward to working with Growth Energy as a strategic partner,” said Dave Vander Griend, CEO of ICM. “They are an excellent advocate for the industry and we are proud to be a part of their association.”
The University of Nebraska–Lincoln will help lead a new national institute addressing antimicrobial resistance, an increasingly urgent global public health concern, the Association of Public and Land-grant Universities and the Association of American Veterinary Medical Colleges announced July 26.
The university is partnering with Iowa State University, the University of Nebraska Medical Center and the University of Iowa. The proposal was selected from among nine submitted by major universities throughout the nation.
Each year in the U.S., at least 2 million people are sickened from bacteria resistant to antibiotics, and 23,000 people die from those infections. Many more die from other conditions complicated by an antibiotic-resistant infection, according to the Centers for Disease Control and Prevention. Infections from drug-resistant “superbugs” result in an estimated $20 billion a year in direct health care costs and up to $35 billion in lost productivity from hospitalizations and sick days.
“Antimicrobials are critically important tools for maintaining human, animal and crop health,” said Mike Boehm, University of Nebraska vice president and Harlan Vice Chancellor for the University of Nebraska-Lincoln Institute of Agriculture and Natural Resources.
“This new institute will accelerate discoveries and engage producers in new and impactful ways that will enhance the stewardship and prolong the shelf life of these disease-prevention tools. The establishment of this institute is a big deal and we are excited about this next chapter of our partnership with our colleagues from Iowa, the industry and beyond.”
The institute will be jointly funded by the University of Nebraska–Lincoln and Iowa State at a combined $525,000 per year for three years ($1.575 million total). Rodney Moxley, Charles Bessey Professor of Veterinary Medicine and Biomedical Sciences at Nebraska, will play a leadership role.
The Institute for Antimicrobial Resistance Research and Education stems from recommendations by a joint AAVMC/APLU task force, which authored a 2015 report outlining an array of research and education initiatives to address antimicrobial resistance. The report recommended that veterinarians, physicians and other scientific experts work closely together to attain optimal health for people, animals and the environment. The institute will help coordinate and implement those recommendations at universities and veterinary medical colleges across the country.
The new institute will build upon an existing partnership. The universities involved began to address some of these same problems three years ago through the Antimicrobial Resistance Consortium, a research initiative that has involved Nebraska, UNMC, Iowa State, Iowa, the USDA Agricultural Research Service, the Mayo Clinic and a team of more than 100 researchers, educators, clinicians and extension personnel.
“Antimicrobial resistance touches each of us in our daily lives. This new institute provides a great resource for the entire country as we work to build strong, collaborative research and educational programs to mitigate this risk,” said Paul Plummer, associate professor of veterinary diagnostic and production animal medicine at Iowa State. Plummer directed the AMR Consortium and will serve as executive director of the institute, which will be housed at Iowa State.
Nebraska Extension trains first responders for livestock emergencies
On any given day, thousands of livestock such as cattle, swine, poultry and equine are in transit throughout Nebraska. When accidents happen involving these livestock, it makes the scene much more complex to manage. Nebraska Extension’s livestock emergency response plan training is educating first responders on how to deal with such accidents.
“Knowing how to assess the situation of the animals and how to properly handle the animals – for everyone’s safety is a key factor,” said Nebraska Extension Educator Rob Eirich.
In 2017, there were 2,558 accidents involving animals, according to the Nebraska Department of Transportation. When livestock are involved in accidents it adds a layer of complexity. Animals may not be contained; they could be injured or trapped, or could even cause additional accidents or harm. The livestock emergency response plan training sets out to educate any first responders who may be involved with livestock accidents.
In June, extension and the Nebraska Department of Agriculture partnered to host the first livestock emergency response plan training in Grand Island for first responders, including the state patrol, fire departments, emergency medical technicians, sheriffs, county emergency planners, veterinarians and others. Over 30 people attended the training.
Livestock training is not common in traditional emergency response fields so those that respond to accidents often are unaware of how livestock will respond to stress. For example, most livestock are color blind, have no depth perception and see 330 degrees around them, all of which will affect how they react in certain situations. Bright floodlights and flashing lights could cause a response that could do more harm or damage.
According to Eirich, a key part of the training is helping first responders develop a plan before arriving at an accident where livestock are involved, so they are prepared and know how to approach the scene appropriately. The Grand Island training day was so well-received that Nebraska Extension is planning more for the future.
“The plan is to now use a core group from this first training to expand across the state with two more trainings currently in the process of planning,” said Eirich. “With the livestock industry strong and growing in Nebraska, the need for first responders to be trained in emergency planning with livestock will drive demand.”
Others included on the core livestock emergency response plan team include Kim Clark, Ashley Mueller and Megan Patent-Nygren with Nebraska Extension and Chelsea Kramer with the Nebraska Department of Agriculture.
For more information about livestock emergency response training, contact Nebraska Extension Educator Rob Eirich at 308-632-1230 or reirich2@unl.edu.
NEBRASKA 2018 FARM REAL ESTATE VALUE AND CASH RENT
Nebraska's farm real estate value, a measurement of the value of all land and buildings on farms, decreased from 2017, according to USDA's National Agricultural Statistics Service. Farm real estate value for 2018 averaged $2,850 per acre, down $50 per acre (2 percent) from last year.
Cropland value decreased slightly from last year to $4,540 per acre. Dryland cropland value averaged $3,550 per acre, unchanged from last year. Irrigated cropland value averaged $6,150 per acre, $30 below a year ago. Pastureland, at a record high $1,010 per acre, was $80 higher than the previous year.
Cash rents paid to landlords in 2018 for cropland were mixed from last year. Irrigated cropland rent averaged $238 per acre, unchanged from last year. Dryland cropland rent averaged $150 per acre, $1 higher than a year earlier. Pasture rented for cash averaged $22.50 per acre, $2 below the previous year.
Iowa Crop Values Report
The production of Iowa’s field and miscellaneous crops was valued at $14.0 billion in 2017, according to the USDA, National Agricultural Statistics Service – Crop Values summary. This was a 4 percent decrease from 2016.
The value of corn for grain production totaled $8.47 billion, down 6 percent from the previous year, and production was down 5 percent. Iowa’s corn price averaged $3.25 per bushel, a decrease of $0.05 from the last marketing year.
Down 2 percent from 2016, the value of soybean production was $5.19 billion, and production was down 1 percent. Average prices decreased $0.09 from the previous year to $9.25 per bushel.
Value of production increased in 2017 from 2016 for oats, alfalfa hay, other hay, and all forage. Value of production decreased from the previous year for winter wheat.
Cash Rent
Cropland cash rent paid to Iowa landlords in 2018 averaged $231.00 per acre according to the USDA, National Agricultural Statistics Service. Non-irrigated cropland rent averaged $231.00 per acre, unchanged from last year. Pasture rented for cash averaged $54.00 per acre, unchanged from the previous year.
Farm Production Expenditures
Iowa farm production expenditures totaled $26.4 billion in 2017, according to the latest USDA, National Agricultural Statistics Service – Farm Production Expenditures Annual Summary report. This was $55 million more than the 2016 total expenditures. Feed expense, which declined 16 percent to $4.40 billion, represented the largest single production expense in Iowa in 2017, accounting for 17 percent of the total. Livestock, Poultry, and Related purchases, which rose 14 percent to $4.31 billion, was the second largest expense, and accounted for 16 percent of total expenditures. Rent expense increased 2 percent to $3.64 billion, and accounted for 14 percent of the total. The largest percentage increases from last year were for Trucks and Autos (up 50 percent), Labor (up 18 percent), Livestock (up 14 percent), and Interest (up 12 percent).
2017 United States Total Farm Production Expenditure Highlights
Farm production expenditures in the United States are estimated at $359.8 billion for 2017, up from $346.9 billion in 2016. The 2017 total farm production expenditures are up 3.7 percent compared with 2016 total farm production expenditures. For the 17 line items, 13 showed an increase from previous year, while the rest showed a decrease.
The four largest expenditures at the United States level total $176.2 billion and account for 49.0 percent of total expenditures in 2017. These include feed, 15.3 percent, farm services, 12.2 percent, livestock, poultry, and related expenses, 11.7 percent, and labor, 9.8 percent.
In 2017, the United States total farm expenditure average per farm is $176,352, up 4.3 percent from $169,035 in 2016. On average, United States farm operations spent $27,056 on feed, $20,635 on livestock, poultry, and related expenses, $21,468 on farm services, and $17,204 on labor. For 2016, United States farms spent an average of $27,092 on feed, $20,319 on farm services, $19,491 on livestock, poultry, and related expenses, and $16,616 on labor.
Total fuel expense is $12.0 billion. Diesel, the largest sub component, is $7.6 billion, accounting for 63.3 percent. Diesel expenditures are up 2.7 percent from the previous year. Gasoline is $2.2 billion, up 4.8 percent. LP gas is $1.4 billion, up 22.4 percent. Other fuel is $780 million, up 21.9 percent.
The United States economic sales class contributing most to the 2017 United States total expenditures is the $1,000,000 - $4,999,999 class, with expenses of $114.9 billion, 31.9 percent of the United States total, up 1.7 percent from the 2016 level of $113.0 billion. The next highest is the $5,000,000 and over class with $84.2 billion, up from $80.6 billion in 2016.
In 2017, crop farms expenditures increased to $183.9 billion, up 3.9 percent, while livestock farms expenditures also increased to $175.9 billion, up 3.5 percent. The largest expenditures for crop farms are labor at $25.4 billon (13.8 percent), rent at $24.9 billion (13.5 percent of total), and farm services at $24.4 billion (13.3 percent). Combined crop inputs (chemicals, fertilizers, and seeds) are $51.8 billion, accounting for 28.2 percent of crop farms total expenses. The largest expenditures for livestock farms are feed at $53.4 billion (30.4 percent of total), livestock, poultry and related expenses at $40.1 billion (22.8 percent), and farm services at $19.4 billion (11.0 percent). Together, these line items account for 64.2 percent of livestock farms total expenses. The average total expenditure for a crop farm is $210,081 compared to $151,005 per livestock farm.
The Midwest region contributed the most to United States total expenditures with expenses of $109.1 billion (30.3 percent), up from $108.9 billion in 2016. Other regions, ranked by total expenditures, are the Plains at $93.7 billion (26.0 percent), West at $77.7 billion (21.6 percent), Atlantic at $43.1 billion (12.0 percent), and South at $36.2 billion (10.1 percent). The West increased $6.34 billion from 2016, which is the largest regional increase.
Combined total expenditures for the 15 estimate states is $238.3 billion in 2017 (66.22 percent of the United States total expenditures) and $228.0 billion in 2016 (65.7 percent). California contributed most to the 2017 United States total expenditures, with expenses of $37.4 billion, (10.4 percent). California expenditures are up 9.3 percent from the 2016 estimate of $34.2 billion. Iowa, the next leading state, has $26.4 billion in expenses, (7.3 percent). Other states with more than $20 billion in total expenditures are Texas with $25.9 billion and Nebraska with $22.6 billion.
Agricultural Land Values Highlights
The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $3,140 per acre for 2018, up $60 per acre (1.9 percent) from 2017 values. Regional changes in the average value of farm real estate ranged from an 8.3 percent increase in the Southern Plains region to 1.4 percent decrease in the Northern Plains region. The highest farm real estate values were in the Corn Belt region at $6,430 per acre. The Mountain region had the lowest farm real estate value at $1,140 per acre.
The United States cropland value averaged $4,130 per acre, an increase of $40 per acre from the previous year. In the Southern Plains region, the average cropland value increased 4.7 percent from the previous year, while in the Lake region, cropland values decreased by 0.6 percent.
The United States pasture value increased by $40 per acre (3.0 percent) from 2017 values. The Southern Plains region had the highest increase from 2017 at 5.6 percent. The Pacific region remained unchanged at $1,650 per acre.
Cattle Krush App now free for Iowa Cattlemen’s Association Members
The Iowa Cattlemen’s Association (ICA) and Performance Livestock Analytics (PLA) have partnered to bring Iowa’s cattle producers the Cattle Krush service for free.
Cattle Krush, one of the software programs created by the award-winning PLA team, helps cattle producers predict and capture profit opportunities.
Beef producers’ profit is determined by the price of feeder calves, the cost of gain, and the price received for the fed cattle. But those three prices are changing minute by minute in today’s fast-paced world. PLA’s Cattle Krush integrates all of the data and puts it in the palm of your hand.
Producers can use Cattle Krush at the auction house when buying calves, and the app will calculate the profitability of the lot, based on the auction price, grain prices, and cattle futures markets. Then, once calves are purchased, cattle producers can use the “My Lots” feature. The app alerts users when profit opportunities appear, at which point the feeder can contact their broker to lock in the profit.
PLA’s CEO Dane Kuper explains, “Our Cattle Krush App puts the key data already custom analyzed to the farmer’s unique situation into an easy to understand format on a 4G high-speed smartphone or tablet. It’s in the farmer’s hand whether he or she’s in the pickup, at the sale barn, or in the field. A desktop computer sitting in the farm office just isn’t convenient or timely enough. To succeed today, it has to be my farm’s data and current prices in my local markets. Our pop-up alerts help farmers pull the trigger before the target disappears.”
Cattle Krush, a $75/month value, is now available to Iowa Cattlemen’s Association members for free. “Our mission is to grow Iowa’s beef business through advocacy, leadership and education,” says ICA CEO Matt Deppe. “Our producers have told us, through surveys and listening sessions, that they want more information about cattle prices, marketing and profitability. Cattle Krush is going to fill that need and help our independent Iowa cattle producers improve their operations and profits.”
To take advantage of this offer, producers should visit http://www.performancelivestockanalytics.com/ and click on Cattle Krush, then enter the discount code “iacattle” at checkout. For questions about Cattle Krush, or PLA’s additional services, including Performance Beef, call (515) 337-2187.
This Week's Drought Summary
droughtmonitor.unl.edu
Early in the drought week, moderate precipitation fell along the East Coast with the heaviest rains falling in the eastern Carolinas and central Pennsylvania. Much-needed rains fell in a swath of area covering eastern Wyoming, much of Nebraska, Kansas and Oklahoma, eastern Colorado and the majority of New Mexico. The northern Plains, Midwest and South saw lighter precipitation amounts. Central and south Texas saw little to no precipitation during the week while the dry pattern continued for much of the West. For the month of July, preliminary statewide temperature data suggest much of the U.S. was warmer than average. The West, Southwest, South, and Northeast were among the warmest third of historical records which date back 124 years. Total precipitation amounts for the month of July were below average for much of the Midwest and Northwest. Also during the month of July, above average precipitation fell in the Mid-Atlantic States to Northeast, Southwest and parts of the High Plains.
Midwest
Generally, precipitation was below normal for much of the Midwest during the week. The only areas that received above-normal rains were eastern Missouri, central Illinois and western Indiana. There, a swath of light rains (one to three quarters of an inch) fell. However, the rains were only enough to contract drought in western Illinois. Elsewhere, D0 and D1 was expanded to cover the rapidly deteriorating conditions which were mostly concentrated in Missouri but also in southern Iowa and the southern tip of Illinois. Abnormal dryness remained in Wisconsin where 30-day precipitation was generally 25-50 percent of normal in some places. Average streamflows during the last 28 days in southeast Michigan were running at the 10-30 percentile level. Moderate drought was expanded in Michigan and parts of northern Ohio.
High Plains
A swath of light to moderate precipitation fell in an area roughly covering north and east Wyoming, east Colorado and much of Nebraska and Kansas. The heaviest precipitation fell in western Nebraska, Kansas and eastern Colorado where amounts of 2 inches were widespread. Despite the rains, long-term drought was hardly effected. There was a slight improvement in southeast Colorado, and D1 was removed in southwest Kansas where short term indicators have rebounded. Despite the monsoon season ramping up, dryness continued in west central Colorado where D3 was expanded. Moderate drought was expanded in southwest Wyoming where it remained dry during the period. There was also a slight expansion of D0 and D1 in North Dakota while D0 was contracted in southeast North Dakota into northeast South Dakota.
Looking Ahead
During the next five days, moderate to heavy precipitation is projected to fall along the East Coast with amounts generally totaling up to five inches. The heaviest rains are forecasted to fall in the Southern Appalachians and the Panhandle of Florida. Much of the South is forecasted to remain dry during the next five days but average temperatures are expected to remain near normal. Temperatures could be as much as 10-20 degrees F below normal for parts of the Midwest early in the period along with 1-2 inches of precipitation. Temperatures in this area are expected to rebound later in the period. The Southwest Monsoon is expected to continue, producing beneficial rains for New Mexico and parts of Arizona. The Climate Prediction Center expects the greatest odds of above normal temperatures in the Southern Rockies stretching into the High Plains and in the Northeast during the next 6-10 days. The greatest probability of below normal precipitation during this period is centered in the High Plains.
Soybean Farmers Return to DC to Drive Home Their Message:
We Need Long-Term Solutions to the Trade War
Returning to Washington just weeks after their July Board of Directors meeting, grower leaders from the American Soybean Association (ASA) met again with officials at the U.S. Department of Agriculture (USDA) and Members of Congress to consider options for offsetting the long-term damage from China’s retaliatory tariff on American soybeans.
John Heisdorffer, a soy grower from Keota, Iowa, and President of ASA said, “We know that President Trump is aware of how hard this is hitting agriculture and specifically soybeans. The recent announcement that the European Union has agreed to buy more U.S. soybeans is a welcome step. Given the scale of potential damage from the tariff, we need more market-opening measures if we are going to survive the long-term repercussions on soybean exports.”
“We are asking, first, that Congress pass a new long-term farm bill that increases funding for export promotion under MAP and FMD. The Trade Promotion Program announced by USDA last month will supplement these much-needed efforts, and we hope to see this funding extended over a multi-year period so that activities can be coordinated with the Congressionally-mandated programs.”
In addition to asking Congress to pass the Farm Bill, ASA grower leaders urged the House Ways and Means Committee and Senate Finance Committee to support negotiation of new free trade agreements. ASA is asking that NAFTA be in place by the end of 2018, and that bilateral FTAs be initiated with Japan and other countries that offer increased markets for soy and livestock products. ASA also asked lawmakers to support funding to upgrade inland waterways infrastructure in order to maintain the U.S. competitive advantage.
“We need these tools,” said Heisdorffer. “The certainty and stability of our industry depends on, number one, getting these tariffs removed as quickly as possible and, number two, taking steps now to offset the damage done by this trade war by negotiating trade agreements and funding programs essential to opening new markets for our farm products.”
China imported 31% of U.S. production in 2017, equal to 60% of total U.S exports and nearly 1 in every 3 rows of harvested beans, which makes expanding existing and finding new markets crucial for the U.S. soybean industry.
South Dakota Feedlot Honored for Outstanding Environmental Stewardship
Moes Feedlot, in Watertown, S.D., has been selected as one of six regional honorees of the Environmental Stewardship Award Program (ESAP). The award, announced during the 2018 Cattle Industry Summer Business Meeting Aug. 1, 2018, recognizes the operation’s outstanding stewardship and conservation efforts. This year’s regional winners will compete for the national award, which will be announced during the Annual Cattle Industry Convention in New Orleans, La., in February 2019.
Established in 1991 by the National Cattlemen’s Beef Association to recognize outstanding land stewards in the cattle industry, ESAP is generously sponsored by Corteva Agriscience, Agriculture Division of DowDuPont, McDonald’s, USDA Natural Resources Conservation Service (NRCS), U.S. Fish and Wildlife Service, and the National Cattlemen’s Foundation.
“Cattlemen and women everywhere understand that the land, air and water resources in their care are the cornerstone of their success and they are only stewards of those resources for a short time,” said NCBA President Kevin Kester. “Each of us understands the importance of improving those resources and leaving them better for future generations. This year’s nominees are outstanding examples of what is possible for the beef industry and they serve as an inspiration for producers everywhere to continue improving their stewardship practices.”
Moes Feedlot got started in 1987, with 20 bred heifers in 1988. The operation got to the point where they were feeding 400 head on outside lots without much in the way of their own facilities, but changed when John Moes’ son, Bryan, returned to the operation. The Moes family knew that they needed a way to support future generations, so they installed a new monoslope facility in order to increase the capacity of the feedyard.
“We didn’t really have the availability to buy any land,” said Bryan, “so we started investing in the feedlot. In 2011 we did another expansion to have 1,999 head.”
With the feedlot expansion came the need to control any runoff. All of the facilities were carefully designed so water and nutrients are captured before they can reach sensitive wetlands and watersheds.
“It was very important for us to make sure that all of our runoff was contained and handled in a safe matter to the environment,” said Bryan. “So, everything is collected from the manure for rain runoff where nothing goes to our slews. That was very important for us to coexist with the water holes we have around us.”
Manure scraped from the pens is a valued asset and applying it to the fields has improved soil quality and crop yields while decreasing the use of commercial fertilizer.
“We’ve raised our organic matter from a two to a 6 ½,” said John. “With that, every percent of organic matter that you increase you get an extra inch of holding capacity. We’re keeping the water on the ground, and it’s going up to the atmosphere and coming back down on our area instead of running down the river.”
The Moes family is always on the lookout for new technology that can help them become better stewards of the land. Their feeding systems includes identification tags to allow for increased efficiency in sorting. They also use their tablets and smartphones to keep track of the feed wagon and monitor the health of the cattle—even when they’re away from home.
For more than a decade, John has worked with South Dakota State University (SDSU) on beef cattle reproduction projects. The research has helped them tighten up their breeding and calving seasons. “This family’s really willing to try new things,” said Stephanie Perkins, a lab technician at SDSU. “Every year when we finish with the study John wants to know the results right away. He’s very keen on knowing what the next step is and what he can do to better his operation.”
The Moes family has also planted 25 acres of trees to serve as a windbreak and to provide habitat for wildlife. Their pastures are currently in a 10-year easement program, and they put a perpetual easement on 230 acres. Over the years they’ve cross-fenced pastures and installed pipelines and water tanks to help improve their rotational grazing system.
“When we do all this, we’re thinking of the next generation,” said Bryan. “We want to make this land as good—or better—than when we got it for them. So by making it as good or better for them they can keep growing and expanding, and keep this symbiotic relationship with the livestock and the wildlife.”
USDA Dairy Products June 2018 Production Highlights
Total cheese output (excluding cottage cheese) was 1.06 billion pounds, 1.8 percent above June 2017 but 1.9 percent below May 2018. Italian type cheese production totaled 450 million pounds, 0.1 percent below June 2017 and 1.8 percent below May 2018. American type cheese production totaled 431 million pounds, 2.7 percent above June 2017 but 2.9 percent below May 2018. Butter production was 143 million pounds, 3.1 percent above June 2017 but 14.7 percent below May 2018.
Dry milk products (comparisons in percentage with June 2017)
Nonfat dry milk, human - 148 million pounds, down 9.0 percent.
Skim milk powder - 58.9 million pounds, up 49.2 percent.
Whey products (comparisons in percentage with June 2017)
Dry whey, total - 87.4 million pounds, down 0.7 percent.
Lactose, human and animal - 91.3 million pounds, down 5.0 percent.
Whey protein concentrate, total - 39.9 million pounds, down 1.1 percent.
Frozen products (comparisons in percentage with June 2017)
Ice cream, regular (hard) - 71.3 million gallons, down 4.7 percent.
Ice cream, lowfat (total) - 45.5 million gallons, down 0.8 percent.
Sherbet (hard) - 3.46 million gallons, down 9.5 percent.
Frozen yogurt (total) - 5.43 million gallons, down 3.3 percent.
NCGA Welcomes Administration Support for High Octane Fuels
The Environmental Protection Agency (EPA) and Department of Transportation (DOT) today recognized the benefits of high octane fuels, such as mid-level ethanol blend, in their proposed SAFE Vehicles rule. The agencies specifically requested comments on how EPA, “could support the production and use of higher octane gasoline” to support compliance with vehicle fuel economy and greenhouse gas emissions standards.
As corn growers know, ethanol is a high octane fuel that provides a cost effective means for automakers to reduce GHG emissions and improve fuel economy when used with optimized engines. Analyzing fuels and vehicles as a system provides automakers with more flexibility and options to meet vehicle standards.
As an active member of the High Octane Low Carbon Alliance (HOLC), NCGA has advocated for the benefits of high octane fuels. The agencies’ proposed rule today acknowledges HOLC and information we provided on high octane fuels as this proposed rule was drafted.
Moving forward, NCGA will provide comments to EPA and DOT focused on the high octane portions of the proposed rule as part of the organization’s mission to create and increase opportunities for corn growers.
Growth Energy Welcomes ELEMENT as 100th Plant Member
Growth Energy, the nation’s top ethanol advocate, is proud to welcome ELEMENT, LLC as its newest member. The addition of the new Colwich, Kansas-based bio-refinery marks the 100th plant member for Growth Energy.
The Andersons, Inc. have partnered with ICM, a current Growth Energy member, to form ELEMENT, LLC, to build and operate a 70 million gallon per year facility that is expected to be the lowest environmental impact ethanol production facility in the United States. ELEMENT expects to commence production in the second quarter of 2019.
Growth Energy, The Andersons, and ICM issued the following statements:
“We are so proud to welcome ELEMENT as the hundredth member of the Growth Energy family,” said Emily Skor, CEO of Growth Energy. “ELEMENT is the result of an invaluable partnership between ICM and The Andersons, and we look forward to collaborating with these industry leaders to provide Americans with cleaner burning renewable biofuels at the pump.”
“We’re thrilled to team up with Growth Energy as ELEMENT builds the most technologically advanced and greenest dry mill ethanol plant in the world,” said Mike Irmen, President of The Andersons Ethanol Group. “Growth Energy has supported our industry for 10 years. We’re looking forward to tapping their knowledge and supporting the ethanol promotion effort.”
“ICM is extremely excited about working on this project. We are about a year away from launching the plant, but we look forward to working with Growth Energy as a strategic partner,” said Dave Vander Griend, CEO of ICM. “They are an excellent advocate for the industry and we are proud to be a part of their association.”
Wednesday, August 1, 2018
Wednesday August 1 Ag News
Senate Passes One-Year ELD Extension
Today, U.S. Senator Deb Fischer (R-Neb) praised the Senate’s passage of her amendment that would extend the electronic logging device (ELD) waiver for livestock haulers by one year, while she continues working to make the hours-of-service requirements more flexible. Senator Fischer, a member of the Senate Agriculture Committee and the Senate Commerce Committee, has continued to fight for hours-of-service relief and issued the following statement:
“Nebraskans who transport livestock face unique challenges. Today the Senate passed my amendment to delay electronic logging device requirements for livestock haulers for one year. With this extension, we will have more time to bring common-sense to these rules and provide additional flexibility.”
Senator Fischer worked closely with Senate Commerce Committee leadership, Chairman John Thune and Ranking Member Bill Nelson, to include her ELD amendment in the Minibus Appropriations bill that passed the Senate.
Senator Fischer first brought concerns about the inflexibility of hours-of-service requirements to Secretary of Transportation Elaine Chao in August of 2017. Senator Fischer held subsequent meetings with leadership at the Federal Motor Carrier Safety Administration (FMCSA) to stress the need for flexible hours-of-service.
Following those meetings, the agency extended the temporary waiver from the ELD requirement for ag and livestock haulers while it continued reviewing its guidance. Additionally, Senator Fischer worked to ensure an extension of the ELD waiver for livestock haulers the through September 30, 2018, was signed into law in March. In May, FMCSA issued its guidance on hours-of-service requirements that provided some flexibility for truckers, including livestock haulers. Senator Fischer has continued working to expand on that hours-of-service flexibility, both with the administration and members of the Senate.
The livestock industry plays a critical role in the viability of Nebraska’s agriculture industry and the state’s economy. Nebraska ranks first in the country for cattle on feed, second in total number of cattle and calves, and sixth in hog production.
Statement by Steve Nelson, President, Regarding Adoption of Sen. Fischer Amendment on Livestock Hauler Exemption
“Today the Senate acted to provide livestock haulers with a one-year extension from having to comply with electronic logging device requirements under federal hours of service regulations. This is an important step in the ongoing process to make sure federal regulations governing livestock transport provide much needed flexibility to our state’s livestock haulers. We greatly appreciate Sen. Fischer’s leadership and efforts to successfully bring this amendment to the table and secure its passage as part of broader legislation to fund government programs. We look forward to continuing to work with Sen. Fischer to find a permanent solution that provides a common-sense approach to regulations that recognize the unique challenges that exist in hauling livestock animals.”
NEBRASKA EXTENSION OFFERS CORN AND SOYBEAN PRODUCTION CLINICS IN AUGUST
Nebraska Extension’s Aug. 22 Midwest Soybean Production Clinic and Aug. 23 Midwest Corn Production Clinic will provide an in-field opportunity for participants to work with crops in the early vegetative stages of growth through maturity.
“Agribusiness professionals and crop producers will take a close-up look at field conditions, research and techniques at the University of Nebraska’s Crop Management Diagnostic Clinics,” said Nebraska Extension Educator Keith Glewen. “The clinics provide opportunities for hands-on interaction.”
Soybean clinic topics include: cultural practices; genetics/agronomics; insect management; plant pathology; soil fertility; and weed management.
Corn clinic topics include: cultural practices; genetics/production; insect damage; plant pathology; soil fertility; and weed science.
Registration begins at 8 a.m. both days and the clinics run from 8:30 a.m. to 5 p.m. Participants will meet at the August N. Christenson Research and Education Building at the university’s Eastern Nebraska Research and Extension Center near Mead.
A total of 8 Certified Crop Adviser credits (crop management – 2, nutrient management – 2, and pest management - 4) have been applied for and are pending approval for each clinic. Participants will earn 16 credits by attending both days.
Early registration is recommended to reserve a seat (limit 60) and resource materials. Cost for one clinic is $95 for those registering one week in advance and $120 after. Special pricing is available for those registering for both clinics - $150 by Aug. 17, $200 after.
For more information or to register, contact the Nebraska Extension CMDC Programs, 1071 County Road G, Ithaca, NE 68033, call (800) 529-8030, fax (402) 624-8010, e-mail cdunbar2@unl.edu or visit https://enre.unl.edu/crop/.
From County Bridges to Chinese Markets, Ag Transportation Summit Focuses on Connecting Supply to Demand
Issues from international trade relations to domestic infrastructure concerns were discussed at the Ag Transportation Summit July 25 and 26.
The summit, held every two years, is hosted by the National Grain and Feed Association and the Soy Transportation Coalition. The summit’s goal is to bring leaders from producer organizations, agribusiness and the government to focus on maintaining and improving waterway, rail, truck and vessel transportation of U.S. agriculture.
“It’s kind of ironic that these trade and tariff issues are going on right now,” Nebraska Soybean Board and Soy Transportation Coalition member Richard Bartek said, noting that over half of Nebraska’s soybeans are exported to foreign markets.
While Bartek said most of those soybeans travel by railroad to the Pacific Northwest, they may begin to travel in another direction if China buys fewer U.S. soybeans.
“In our meeting, we had people concerned about where our product’s going to go,” Bartek said. “We know in this day and age people aren’t going to stop eating, and livestock’s got to have food. The world’s not going to stop just because of this trade issue.”
Infrastructure at the local level was a primary topic during both the summit and the Soy Transportation Coalition’s meeting leading up to it.
“When it comes to bridges and highways and railroads, that’s what I’m concerned about in Nebraska,” Bartek said. “The bridges are getting older and needing work. A lot of them are being closed, and this puts a hardship on school districts as well agriculture transportation.”
Nebraska Soybean Board and Soy Transportation Coalition member Doug Saathoff said he learned about load testing and geosynthetic reinforced soil bridge systems during the meeting.
“A local farmer could build them, using the materials he could find at Menard’s,” Saathoff said. “They’re strong and safe and reduce costs for everybody.”
Saathoff said the highlight of the summit was hearing Secretary of Agriculture Sonny Perdue speak reassuringly about the future of trade.
“We’re good at what we do,” Saathoff said. “We’re raising a quality product, and we’re raising a lot of it. We just need to keep our markets open and the demand for our products high.”
Senators confront Acting EPA Administrator on ethanol during EPW hearing
Today, Acting Environmental Protection Agency (EPA) Administrator Andrew Wheeler testified before the Senate Committee on Environment and Public Works (EPW). American Coalition for Ethanol (ACE) CEO Brian Jennings commended a handful of bipartisan Senators for demanding answers to the biofuel industry’s priority issues with the following statement:
“ACE extends our highest gratitude to Senators Joni Ernst (R-Iowa), Mike Rounds (R-S.D.), Deb Fischer (R-Neb.), and Tammy Duckworth (D-Ill.) for confronting Acting EPA Administrator Wheeler about the ethanol demand destruction created by an unprecedented number of small refinery exemptions (SREs) and how EPA intends to reallocate the waived gallons, as well as the need to make good on the President’s repeated promises to allow E15 use year-round. This is another example of the strong bipartisan support in Congress for making sure EPA follows the law while implementing the Renewable Fuel Standard.
“While we appreciate Acting Administrator Wheeler is looking into how EPA might reallocate the SREs and intends to publicize a “dashboard” to provide more transparency about the circumstances around why refineries receive exemptions from RFS compliance, farmers and biofuel producers are suffering the consequences of demand destruction and collapsed RIN and commodity markets. We need reallocation sooner rather than later.
“Finally, as I have said many times, actions speak louder than words. The President has promised to allow E15 use year-round on multiple occasions, including the public statement in Iowa last week about being “very close” to making this happen. I am disappointed Acting Administrator Wheeler said “some don’t think we have the authority” to allow E15 use year-round because even former administrator Scott Pruitt admitted EPA has the legal authority when speaking with ACE members in Kansas and South Dakota in June. It is important for Acting Administrator Wheeler to make good on the president’s promises to maintain the RFS as the law of the land and allow E15 year-round.”
Soybeans are BIG as ISA Celebrates August Soybean Month
The Iowa Soybean Association (ISA) continues its commitment to soybean farmers and their industry by ringing in August as Soybean Month.
The celebration touting Iowa’s 40,000-plus soybean farmers and their commitment to sustainably producing more than 550 million bushels of soybeans annually valued at nearly $5 billion include numerous events and activities.
They include a Soybeans Are Big In Iowa Month proclamation signing by Gov. Kim Reynolds Friday, Aug. 10. ISA members and staff will also be present throughout the month at events across Iowa to meet with farmers and share the local, state and national benefits of soybean production.
“As we prepare for another harvest, August is always a great reminder to celebrate soybean production and promote how soybeans help feed and fuel a growing global population,” says ISA President Bill Shipley of Nodaway. “We celebrate soybeans year-round at the ISA, but August provides a timely opportunity to bring added attention to the industry’s contributions to Iowa, the nation and the world.”
The ISA will bring the story of soybean production to:
Iowa State Fair, Aug. 9 – 19
ISA will sponsor activities in venues throughout the fairgrounds including the Ag Building and Animal Learning Center.
Soybean farmers will converse with fairgoers in the Ag Building Aug. 9 and 16 from 9 a.m. to 6 p.m. They’ll share insights about the soybean industry, and answer questions about production, environmental stewardship and trade. Visitors can test their agricultural knowledge and win prizes.
The ISA is also proud to sponsor the Little Hands on the Farm Kids Zone on the fairground’s north side. Little Hands on the Farm teaches children the importance of agriculture and how it affects their daily lives in a fun and interactive way.
On Sunday, Aug. 12, nearly 100 farmers will welcome 400 guests as they gather around the largest dinner table ever set at the Iowa State Fair. The table will be set in the middle of the Grand Concourse.. The ISA is proud to help sponsor this unique event where farmers will share how food is grown and makes its way from the farm to the fair as they encourage additional farm and city fellowship.
Soybeans will also be on display at the Varied Industries building as part of the Iowa Food and Family Project exhibit. The ISA is a founding partner of the Iowa Food & Family project that encourages Iowans to become more confident and trusting in agriculture and food production through community activities, educational programs and information sharing.
Expedition Farm Tour, Aug. 24 - 25
The ISA is helping sponsor the Iowa Food & Family project’s fourth annual Expedition Farm Country. Fifty consumers will be selected to participate in the two-day tour of farms, historic sites and local eateries. One of the stops includes ISA farmer director, Suzanne Shirbroun and her husband, Joe. To learn more or enter for the opportunity to participate, go to www.iowafoodandfamily.com.
Farm Progress Show, Aug.28 – 30
Guests are encouraged to visit tent No. 740 for farmer/industry dialogue and hands-on learning. Show-goers can learn the latest information regarding soybean research, markets, and get a chance to talk with ISA directors. American Soybean Association representatives will also be on hand to offer additional perspectives about policy issues impacting soybean farmers. Attendees who join the ISA as an Advocate member during the show will receive a personalized farm sign painted on authentic barn wood and be entered to win a $500 biodiesel gift card sponsored by the Iowa Renewable Fuels Association.
Why are Soybeans Big in Iowa?
Iowa routinely ranks first or second nationally in soybean production.. It accounts for approximately 14 percent of all soybeans grown in the U.S.. The state’s soybean farmers have invested more than $40 million in research to further promote conservation and sustainability efforts since the ISA was launched in 1964. Iowa-grown soybeans also contribute to the local and global economy in a variety of ways:
· Biodiesel: Iowa is the leading biodiesel-producing state. Iowa biodiesel supported nearly 3,800 full-time equivalent jobs in the state in 2017 and adds $457 million of GDP annually, per the National Biodiesel board. Biodiesel alone contributes to 63 cents in market value while also lowering the price of soybean meal for livestock farmers.
· Livestock: One of every four rows of soybeans grown in Iowa is fed to the more than 38 million pigs raised annually in Iowa. Domestic animal agriculture uses over 26 million metric tons of U.S. soybean meal. That’s the meal from more than 1.2 billion bushels of U.S. soybeans.
· Research: The ISA works to improve the profitability and sustainability of Iowa soybean farmers. Research done through the ISA On-Farm Network contributes to improve sustainability efforts such as bioreactors, which can reduce nitrogen runoff by up to 90%.
· Soyfoods: With protein being the most sought-out nutritional attribute, 52 percent of millennials are consuming soy, which is low in fat and cholesterol, at least once a week. Over the past four years, more than 170 new soy products have been brought to market.
Iowa DNR Claims Mission Accomplished - Environmental Groups Say They Fall Short
Food and Water Watch press release
Today, Iowa’s Department of Natural Resources (DNR) submitted its fifth annual report of its progress implementing the precedent-setting Work Plan Agreement between the department and the Environmental Protection Agency (EPA). The report states that DNR believes it has met all of the requirements of the Work Plan and brought its factory farm program into compliance with the Clean Water Act (CWA).
But, local and national farm and environment groups say the DNR continues to allow factory farms to pollute Iowa waters. Because more oversight is needed, the EPA should take further action in response to the pending “de-delegation” petition to strip DNR of its CWA authority for failure to adequately regulate concentrated animal feeding operations (CAFOs), or factory farms.
The DNR/EPA Work Plan Agreement followed an EPA investigation, which was conducted in response to a de-delegation petition filed by Iowa CCI, the Environmental Integrity Project, and Iowa Sierra Club. EPA’s investigation found that DNR was failing to issue CWA permits to polluting factory farms and was taking inadequate enforcement actions that do not deter future pollution. The Work Plan required DNR to inspect thousands of facilities to identify polluters, issue permits to dischargers, and strengthen its enforcement actions.
After five years, DNR reports that it has completed the required inspections of the factory farms in its database. But the CAFO inventory the Work Plan required has also uncovered thousands of additional facilities that could be livestock confinements in need of CWA permits. Today’s report confirms that DNR has yet to identify or inspect thousands of these recently discovered facilities.
Of the “unknown” factory farms that DNR has identified so far, over 500 are medium livestock operations and several are large CAFOs, as defined by the EPA.
“Over 500 operations produce a lot of unaccounted for toxic liquid manure. We have a water crisis. It’s DNR’s job to make sure factory farm manure is accounted for and does not make its way into our waterways,” said Cherie Mortice, former hog farmer, retired teacher, and Board President of Iowa CCI.
The 2018 Report also shows that DNR is still failing to issue discharge permits to CAFOs, despite a dozen documented discharges to Iowa waters since last year’s report. In fact, the total number of CWA permits in effect for CAFOs has actually declined over the past year.
“Any factory farm that discharges pollution needs a Clean Water Act permit and needs to be held accountable, not just given a slap on the wrist,” said Barb Kalbach, 4th generation family farmer from Dexter.
Iowa’s more than 22 million hogs confined in thousands of factory farms produce nearly 22 billion gallons of toxic manure every year. There have been more than 800 documented manure spills since 1996 and Iowa currently has more than 750 polluted waterways. Iowa’s 2014 list of impaired waterways shows manure is a leading cause of impairments in Iowa lakes and rivers.
“Checking the boxes on the Work Plan has failed to address widespread manure pollution in state waterways, and additional EPA action is clearly needed,” said Tarah Heinzen, Staff Attorney with Food & Water Watch.
“DNR may think it has escaped any further requirements under the Work Plan, but we expect DNR to inspect animal feeding operations and issue permits and penalties as required by the Clean Water Act,” said Wally Taylor, Iowa Sierra Club Attorney.
“This Work Plan will only be successful if it leads to real oversight of factory farm pollution in Iowa. That means serious inspections, strong permits, and enforcement actions that ensure it doesn’t pay to pollute. DNR hasn’t shown that it takes permitting and enforcement seriously. Iowa needs NPDES permits for all existing factory farms and a moratorium on new or expanding factory farms,” said Jess Mazour, Farm & Environment Organizer at Iowa CCI.
Statement on Senate’s 84-14 Rejection of Lee-Booker Effort to Block FDA Food Labeling Standards Enforcement
Jim Mulhern, President and CEO, National Milk Producers Federation
“We are very pleased with the Senate’s overwhelming rejection of Sen. Lee’s blatant attempt to interfere with the ability of the Food and Drug Administration to enforce standards of identity for dairy products and other foods. We fought this amendment because it would have undermined the decades-long policy, established by Congress, that the FDA should regulate food names in order to promote honesty and fair dealing in the interest of consumers.
Standards of identity for milk and other products guarantee that consumers’ expectations are met both in terms of minimum levels of key ingredients and consistency of key sensory and quality attributes. As FDA Commissioner Gottlieb stated last week, consumers are being misled by the nutritional content of plant-based beverages that use the term “milk” on their labels.
Today’s vote should send a very strong message to food marketers who have long been ignoring FDA’s food labeling standards by inappropriately using dairy terms on products that do not contain any dairy. Those days are numbered. FDA now knows it has strong, bipartisan support in Congress in its efforts to assure a fair marketplace. We thank Senators Tammy Baldwin (D-WI) and Jim Risch (R-ID) for their bipartisan work to defeat this amendment.
We also commend Sen. Baldwin for her successful work on a separate amendment that will create additional dairy innovation grants to help companies expand initiatives that will add more value to the milk farmers produce.”
Roberts, Stabenow Applaud Vote to Begin Farm Bill Conference, Appointment of Conferees
U.S. Senate Agriculture Committee Chairman Pat Roberts, R-Kan., and Ranking Member Debbie Stabenow, D-Mich., today are pleased the Senate has voted to move forward with the 2018 Farm Bill Conference Committee. The Senators also applauded the announcement of the Senators who will serve on the 2018 Farm Bill Conference Committee.
- Chairman Pat Roberts, R-Kan.
- Senate Majority Leader Mitch McConnell, R-Ky.
- Sen. John Boozman, R-Ark.
- Sen. John Hoeven, R-N.D.
- Sen. Joni Ernst, R-Iowa
- Ranking Member Debbie Stabenow, D-Mich.
- Sen. Patrick Leahy, D-Vt.
- Sen. Sherrod Brown, D-Ohio
- Sen. Heidi Heitkamp, D-N.D.
“This strong group of Senate conferees knows how to work together on a bipartisan basis to get the Farm Bill across the finish line,” said Roberts and Stabenow. “We look forward to beginning the conference process so we can provide certainty to our farmers, families, and rural communities.”
On June 28, 2018, the U.S. Senate passed the 2018 Farm Bill on a strong bipartisan 86-11 vote – the most votes a Senate Farm Bill has ever received. The bipartisan 5-year legislation encompasses a broad array of agriculture, nutrition, conservation, and forestry policy. The Senate bill has the support of more than 500 groups representing thousands of agriculture, food, nutrition, hunger, forestry, conservation, rural, business, faith-based, research, and academic interests. Click here to read the legislation, summaries, and amendments.
The Conference Committee will be composed of members of the U.S. House and Senate. The House conferees were announced earlier this month. A public meeting of the Conference Committee will be announced at a later date.
NAWG Applauds Congress for Moving Forward with Farm Bill Conference Committee
The House and Senate have officially announced their respective conferees for the 2018 Farm Bill. In total, 56 have been assigned to the Conference Committee, including members from both the Senate and House Agriculture Committees as well as from committees with jurisdiction in the bill. NAWG President and Sentinel, OK wheat farmer Jimmie Musick made the following statement:
“NAWG applauds that the House and Senate for moving forward with the 2018 Farm Bill reauthorization process by assigning members to the Conference Committee. While there is still much work to be done, we are pleased that House and Senate leadership are keeping up the momentum by completing this crucial next step in finalizing a 2018 Farm Bill.
“While reconciling differences between the two bills, NAWG urges Members to put politics aside and growers first by completing one bill that works for all of agriculture. In our discussions with the Conference Committee, we will continue to fight to prevent cuts to crop insurance and ensure growers have access to a strong safety net program.
“NAWG remains committed to prioritizing working lands programs in the Farm Bill and ensuring that wheat growers have access to conservation stewardship and practices-based payments. Voluntary conservation programs should address the resource concerns of all production areas and especially semi-arid regions with dryland farming where there is significant wheat production.
“Additionally, we will work to make sure the final bill has a fully funded Research Title, so growers can have access to the innovative technology allowing them to continue to produce a healthy crop at a lower cost for the consumer.
“NAWG will also work with the Committee to make sure the 2018 Farm Bill includes strong investment in the Market Access Program (MAP) and the Foreign Market Development Program (FMD) which allow small agricultural businesses to build export markets overseas.
“We are looking forward to working with members and their staff throughout this process and hope to finalize a bill by the September 30th deadline.”
Retail Fertilizer Trends Remain High
Retail fertilizer prices tracked by DTN for the fourth week of July 2018 once again show most fertilizers are slightly higher. Seven of the eight major fertilizers were higher compared to last month, but none were up a substantial amount. DAP had an average price of $486/ton, potash $356/ton, urea $366/ton, 10-34-0 $442/ton, anhydrous $501/ton, UAN28 $243/ton and UAN32 $279/ton.
One fertilizer was slightly lower than the previous month. MAP had an average price of $504/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.40/lb.N, anhydrous $0.31/lb.N, UAN28 $0.43/lb.N and UAN32 $0.44/lb.N.
All eight of the major fertilizers are now higher compared to last year with prices shifting higher in recent months. 10-34-0 is 4% higher; both potash and UAN32 are 5% more expensive; UAN28 is 6% higher; MAP is 9% more expensive; DAP is 12% higher; and both anhydrous and urea are now 19% more expensive compared to last year.
USDA Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks
Soybeans crushed for crude oil was 5.09 million tons (170 million bushels) in June 2018, compared to 5.17 million tons (172 million bushels) in May 2018 and 4.45 million tons (148 million bushels) in June 2017. Crude oil produced was 1.94 billion pounds down 2 percent from May 2018 but up 12 percent from June 2017. Soybean once refined oil production at 1.44 billion pounds during June 2018 decreased 2 percent from May 2018 but increased 6 percent from June 2017.
USDA Grain Crushings and Co-Products Production
Total corn consumed for alcohol and other uses was 517 million bushels in June 2018. Total corn consumption was down 1 percent from May 2018 but up 6 percent from June 2017. June 2018 usage included 91.2 percent for alcohol and 8.8 percent for other purposes. Corn consumed for beverage alcohol totaled 3.12 million bushels, up 7 percent from May 2018 and up 13 percent from June 2017. Corn for fuel alcohol, at 463 million bushels, was down 2 percent from May 2018 but up 6 percent from June 2017. Corn consumed in June 2018 for dry milling fuel production and wet milling fuel production was 91.1 percent and 8.9 percent respectively.
Dry mill co-product production of distillers dried grains with solubles (DDGS) was 2.02 million tons during June 2018, up 3 percent from May 2018 and up 9 percent from June 2017. Distillers wet grains (DWG) 65 percent or more moisture was 1.28 million tons in June 2018, down 8 percent from May 2018 but up slightly from June 2017.
Wet mill corn gluten feed production was 302 thousand tons during June 2018, up 4 percent from May 2018 but down 12 percent from June 2017. Wet corn gluten feed 40 to 60 percent moisture was 262 thousand tons in June 2018, down 7 percent from May 2018 and down 12 percent from June 2017.
USDA Flour Milling Products Report
All wheat ground for flour during the second quarter 2018 was 227 million bushels, down slightly from the first quarter 2018 grind of 227 million bushels but up 1 percent from the second quarter 2017 grind of 224 million bushels. Second quarter 2018 total flour production was 105 million hundredweight, down slightly from the first quarter 2018 but up 1 percent from the second quarter 2017. Whole wheat flour production at 5.39 million hundredweight during the second quarter 2018 accounted for 5 percent of the total flour production. Millfeed production from wheat in the second quarter 2018 was 1.59 million tons. The daily 24-hour milling capacity of wheat flour during the second quarter 2018 was 1.64 million hundredweight.
US Ethanol Production Capacity Up
Fuel ethanol production in the United States reached more than 16 billion gallons per year, or 1.06 million barrels per day (bpd), at the beginning of 2018, according to data highlighted by the Energy Information Administration in its latest Today in Energy series.
EIA's most recent U.S. Fuel Ethanol Plant Production Capacity report shows total listed, or nameplate capacity, of operable ethanol plants increased 5% -- more than 700 million gallons per year -- between January 2017 and 2018.
Part of the increase in nameplate fuel ethanol production capacity in the most recent report is the result of EIA's outreach to survey respondents that were operating at levels higher than their listed production capacities, which had resulted in utilization rates above 100%.
In previous surveys, these respondents reported the facilities' original design capacity values and may not have accounted for expansions or modifications at the plants. This year, some respondents increased their nameplate production capacity to values consistent with EIA's definition.
The remaining increase in production capacity was a result of plant improvements and process modifications such as equipment upgrades, plant expansions, improved maintenance routines and installation of new equipment at some facilities.
EIA reports actual U.S. production of fuel ethanol reached a total of 15.8 billion gallons, or 1.03 million bpd in 2017. In its Short-term Outlook, EIA forecast ethanol production to reach 15.9 billion gallons this year, which would equate to 98% utilization of reported nameplate capacity as of Jan. 1.
USDA Announces Commodity Credit Corporation Lending Rates for August 2018
The U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation, today, announced interest rates for August 2018. The Commodity Credit Corporation borrowing rate-based charge for August is 2.375 percent, up from 2.250 percent in July.
The interest rate for crop year commodity loans less than one year disbursed during August is 3.375 percent, up from 3.250 percent in July.
Interest rates for Farm Storage Facility Loans approved for August are as follows: 2.625 percent with three-year loan terms, the same as 2.625 percent in July; 2.750 percent with five-year loan terms, the same as 2.750 percent in July; 2.875 percent with seven-year loan terms, the same as 2.875 percent in July; 2.875 percent with 10-year loan terms, the same as 2.875 percent in July and; 2.875 percent with 12-year loan terms, down from 3.000 percent in July.
Critical Issues to be Addressed at 2018 Cattle Industry Summer Meeting
More than 600 cattle industry leaders will be attending the Cattle Industry Summer Business Meeting in Denver this week to help create direction for critical industry programs. The meeting is taking place Aug. 1-4.
The event includes meetings of cattlemen and women representing the National Cattlemen’s Beef Association, Cattlemen’s Beef Promotion and Research Board, American National CattleWomen and National Cattlemen’s Foundation. Among the purposes of the yearly conference is to create a framework for checkoff and policy efforts on behalf of U.S. cattle producers for the upcoming fiscal year, which for NCBA and the Cattlemen’s Beef Board begins Oct. 1.
Keynoter at the Thursday, Aug. 2, Opening General Session will be Tom Hayes, president and CEO of Tyson Foods, Inc., the country’s largest food company. Leading Tyson since 2016, Hayes has been focused on creating shared value and addressing societal needs and challenges in a way that benefits company stakeholders. He will engage with General Session attendees in a lively, informal discussion of topics of prime importance to the entire beef community. The session is sponsored by Boehringer Ingelheim Animal Health.
Also at the Summer Business Meeting, 2018 Environmental Stewardship Awards Program (ESAP) regional winners will be announced. Regional winners will compete for the national ESAP award, to be named during the 2019 Cattle Industry Convention and NCBA Trade Show next January in New Orleans, La.
“During these important meetings U.S. cattle producer leaders actively discuss and develop the direction of industrywide policy and demand-building programs,” said Kevin Kester, a California beef producer and NCBA president. “It’s a critical component of our grassroots process as we set stage for upcoming organizational efforts.”
Joint Committees and Subcommittees will meet on Thursday and Friday to develop proposals for 2019 checkoff-funded research, education and promotion programs. Also on Friday NCBA policy committees will meet to determine priorities and discuss strategies for 2019. The NCBA Board will hold its board meeting on Saturday, Aug. 4. The meeting of the Cattlemen’s Beef Board will take place on Friday, Aug. 3.
“The Cattle Industry Summer Business Meeting is a demonstration of the dedication and broad vision of hundreds of cattlemen and women from across the country, “said Kester. “Despite their busy schedules at home, these U.S. cattle producers have taken the time to help assure the beef cattle industry has the best chance of future success.”
Emerging Markets For Grains, Ethanol Take Center Stage At U.S Grains Council Meeting In Denver
In a global trade environment challenged by tariffs and tensions, emerging markets for grains and ethanol provided a bright spot for U.S. farmers, agribusinesses and industry officials at the U.S. Grains Council’s 58th Annual Board of Delegates meeting in Denver.
The Council’s Middle East and Africa Director Ramy Taieb and Manager of Global Trade Alvaro Cordero spoke on a panel moderated by the Council’s Senior Director of Global Strategies Kurt Shultz, highlighting the Middle East and North Africa as a 10 million metric ton (394 million bushel) market for U.S. grains in all forms.
They focused on new demand in Saudi Arabia for U.S. sorghum and distiller’s dried grains with solubles (DDGS), near-term opportunities developed following years of work by Council staff and members to set the stage with local customers.
“The Middle East and North African is a vast area with a lot of complexity,” Taieb said to the group. “However, from the perspective of the U.S. producer, it’s an important area of the world that encompasses 17 countries importing grains products valued at more than $1.8 billion.”
The Council has a regional office in Tunisia and consultants in Turkey, Pakistan, Morocco, Algeria, Egypt, Saudi Arabia and Jordan, who also covers Oman and the United Arab Emirates.
“Regional imports have been growing over the past five years from 2.5 MMT (98 million bushels) in marketing year 2013/2014 to 8 MMT (315 million bushels) in marketing year 2016/2017. We are expecting to reach 10 MMT (394 million bushels) of grains in all forms to the region this year,” Taieb said. “The U.S. Grains Council has focused on being flexible and responsive to the shifting market opportunities as they arise in the region.”
In addition to other sales in the region, speakers shared that U.S. corn sales to Saudi Arabia totaled $383 million in the 2016/2017 marketing year, a 150 percent growth over the previous marketing year.
Tuesday’s general sessions also featured a presentation on the economic conditions facing the United States and the farm economy by Will Secor, an economist in the knowledge exchange division at CoBank, a national cooperative bank serving industries across rural America. Secor said that despite developing challenges on the global trade stage, the long-term outlook for U.S. grains demand is positive.
Council Chief Economist Mike Dwyer led off the afternoon’s round of speakers, updating the farmers and other delegates in attendance on the industry’s ethanol market development efforts. The U.S. is the world’s largest producer, consumer and exporter of fuel ethanol and is the most cost-competitive ethanol supplier due to large-scale production, industry innovation and access to competitively-priced feedstock.
“No other grain-in-all-forms category comes close as a driver of growing corn demand,” Dwyer told the delegates about ethanol exports. “U.S. exports of grains in all forms could rise to a record 138 MMT by 2022 if we meet our ambitious goals.”
Dwyer was followed by Dan Halstrom, president and CEO of the U.S. Meat Export Federation, and James Sumner, president of the USA Poultry and Egg Export Council, who provided insights from their sectors, both of which are working to grow new overseas demand while defending established markets in a complicated trade environment.
According to a recent USGC and National Corn Growers Association study, grain-in-all-forms exports accounted for $55.5 billion in economic output in 2015, the most recent year with full data available, with more than 262,000 U.S. jobs connected to these sales.
Jim Stitzlein Elected U.S. Grains Council Chairman At Denver Meeting
Delegates of the U.S. Grains Council (USGC) elected as chairman Jim Stitzlein, manager of market development for Consolidated Grain and Barge Co., at its 58th Annual Board of Delegates Meeting on Wednesday.
Stitzlein unveiled his chairman’s theme during the final general session: “When Trade Works, the World Wins.”
“The diversity of the U.S. Grains Council is key to the work it does,” Stitzlein said. “From farmers to traders and agribusinesses, each role is important in the Council’s mission of developing markets, enabling trade and improving lives.
"Working with those diverse perspectives within the global trade market is one way to encourage effective and efficient trade in both supply and price for international customers, steady growth in world markets and political stability throughout the world.”
Stitzlein has more than 40 years of experience in the commodity grain handling and export business, including local origination programs; hedging and merchandising; transportation, logistics and facility management; and export trading and documentation.
Involved with the Council for more than 20 years, Stitzlein has traveled extensively for the organization, is active in the National Grain and Feed Association (NGFA), from which he received the NGFA Distinguished Service Award, and has broadly participated in other activities related to quality and biotechnology as they impact the grain trade.
Stitzlein grew up working on his family farm in Ohio where he was active in 4-H and FFA. He earned both a bachelor’s and master’s degrees in agricultural economics from Ohio State University.
In addition to Stitzlein’s ascendency, the Council’s delegates elected Jim Raben from the Illinois Corn Marketing Board as secretary/treasurer, sector directors and three at-large directors.
The Board of Directors now includes:
Jim Stitzlein, Chairman, Consolidated Grain and Barge Co.
Darren Armstrong, Corn Growers Association of North Carolina, Inc., Vice Chairman
Jim Raben, Illinois Corn Marketing Board, Secretary/Treasurer
Deb Keller, Past Chairman, Iowa Corn Promotion Board
Thomas N. Sleight, President and CEO
Duane Aistrope, Iowa Corn Promotion Board, At-Large Director
Ray Defenbaugh, Big River Resources LLC, Agribusiness/Ethanol And Co-Products Sector Director
Greg Hibner, J.D. Heiskell Hawkeye Gold Office, Agribusiness Sector Director
Charles Ray Huddleston, United Sorghum Checkoff Program, Sorghum Sector Director
Joshua Miller, Indiana Corn Marketing Council, At-Large Director
Tom Mueller, Illinois Corn Marketing Board, Corn Sector Director
Tadd Nicholson, Ohio Corn and Wheat Growers Association, Checkoff Sector Director
Mark Seastrand, North Dakota Barley Council, Barley Sector Director
Ryan Wagner, South Dakota Corn Utilization Council, At-Large Director
Chad Willis, Minnesota Corn Research & Promotion Council, At-Large Director
The new Board of Directors seated Wednesday will serve until July 2019.
The Council’s summer meeting has been ongoing since Monday, featuring general sessions focused on the emerging trade policy landscape, meetings of the organization’s Advisory Teams and sessions of membership sectors.
Biodiesel Board Files Opening Brief to Challenge 2018 RFS
The National Biodiesel Board has filed an opening brief in its lawsuit objecting to EPA's methodology for establishing the 2018 Renewable Fuel Standards. The group is specifically disputing three issues with EPA's final RFS rule for 2018, arguing EPA must account for all small refinery exemptions in the annual percentage standard; the agency acted arbitrarily when it set the 2018 advanced biofuel volume below what it found to be "reasonably attainable;" and the agency set the 2019 biomass-based diesel volume based on impermissible considerations.
NBB's brief is the first the courts will consider in arguing that EPA must account for all small refinery "hardship" exemptions -- including retroactively granted exemptions -- when it sets the annual RFS volumes and Renewable Volume Obligations (RVOs).
NBB's brief states, "EPA unlawfully has failed to account for all small-refinery exemptions it awards, violating its duty to promulgate percentage standards that 'ensure' all aggregate volumes are met. Unaccounted for small-refinery exemptions reduce aggregate volumes, and EPA's approach creates a new, de facto waiver authority contrary to Congress's design. Despite knowing those consequences, EPA declines to adjust percentage standards to account for that shortfall, either before it is likely to happen or after it actually does."
EPA has disclosed that it recently retroactively granted 48 small refinery hardship exemptions, reducing the 2016 and 2017 RVOs by a combined 2.25 billion RINs.
NBB forcefully argues that EPA violated its duty to ensure that the annual volumes it sets are met.
The agency asked for comment in the 2018 RFS rulemaking process on how to treat retroactive small refinery exemptions but decided not to account for them in the final standards.
American Soybean Association Joins Farmers for Free Trade
This week, the American Soybean Association (ASA), the voice for more than 30 soybean-producing states and 300,000 soybean farmers across America, announced that it will be joining Farmers for Free Trade.
Farmers for Free Trade is a bipartisan campaign co-chaired by former Senators Max Baucus and Richard Lugar that is amplifying the voices of American farmers, ranchers and agricultural businesses that support free trade. The American Soybean Association joins the American Farm Bureau Federation, the National Pork Producers Council, and multiple other agriculture, trade and commodity groups that are partnering with Farmers for Free Trade to strengthen support for trade in rural communities.
Ryan Findlay, CEO of ASA, commented, “We need strong, likeminded allies to galvanize farmers in a collective call for solutions from the Administration and Congressional leaders on advocating for new trade agreements and expanding international markets. We have watched for some time and with appreciation the efforts of Farmers for Free Trade and the spirit of collaboration it has fostered to help ag and those industries related to agriculture and are happy to join their efforts.”
“The American Soybean Association has been a leader in promoting free trade in the agriculture sector,” said Senator Baucus. “Their addition to this important bipartisan effort will be invaluable in expanding our reach to soybean farmers across the country. Right now, soybean farmers are bearing the brunt of the ongoing trade war. Working together with Farmers for Free Trade, we aim to amplify the voices of these farmers to ensure that decision makers in Washington D.C. know the pain that tariffs are causing at the local level.”
“We are thrilled to add the American Soybean Association to the momentum of this rapidly growing effort,” said Senator Lugar. “The American Soybean Association knows that promoting agriculture-friendly, bipartisan trade policies on Capitol Hill starts with organizing America’s farmers at the grassroots level. With their help, we’ll be able to mobilize even more farmers whose livelihoods depend on trade. Their organization will significantly increase the voice of farmers at both the state and federal level. During a period of uncertainty caused by the imposition of new tariffs and declining farm income, we are especially glad to welcome soybean farmers to this bipartisan cause.”
Farmers for Free Trade is currently working at the grassroots level to organize and educate farmers about the importance of trade, including through work at state commodity conventions, through state proclamations, by reaching farmers through social media, and by identifying local spokespeople, among other efforts.
NFU Emphasizes Severity of Trade Dispute, Urges Long-Term Solutions in Farm Bill
In a letter sent today to congressional leadership, National Farmers Union (NFU) President Roger Johnson emphasized the need to address agricultural economic hardships in the 2018 Farm Bill. The NFU Board of Directors unanimously approved the motion to send this letter during a meeting held Monday afternoon.
“Net farm income is less than half of what it was in 2014 when Congress passed the last farm bill,” wrote NFU President Roger Johnson. “Indicators of stress, including debt to asset ratios, net farm income, debt servicing capacity, and other factors, paint a grim picture of the financial health of farms nationwide.”
An escalating global trade war and uncertainty in export markets has pushed prices even lower in the last month, thus exacerbating farmers’ financial stress. “Soybean, corn, and wheat farmers alone have lost $13 billion in market value,” Johnson offered as examples. “Prices paid to dairy farmers are comparable to prices received in the 1980s, forcing an alarming number of dairy farms out of business.”
To add insult to injury, as Johnson notes, farmers and ranchers are also subject to the unintended consequences of steel and aluminum tariffs. “In addition to price declines, producers are now coping with cost increases, especially on farm equipment and machinery, which often rely on steel and aluminum.”
The severity of the situation has not gone unnoticed by the administration: last week, the U.S. Department of Agriculture announced it would allocate $12 billion in emergency assistance to producers most impacted by trade tensions. Though Johnson expressed appreciation for the gesture, he stressed that it was not enough. “Paying farmers small, one-time, fixed payments is woefully inadequate to keep farmers in business,” he said. “The administration’s actions will have long-term effects on our markets, necessitating a long-term safety net.”
Johnson continued the letter by urging Congress to provide “substantive and long-term relief to farmers.” In particular, he asked that they “provide the agriculture committees with substantially greater resources to be incorporated into the 2018 Farm Bill, including the ability to manage farm inventories to be more responsive to market conditions.”
“Congressional inaction will have very tangible and harmful impacts as farmers and ranchers get closer to fall harvest,” Johnson concluded. “We urge you to take strong action on behalf of American farmers and ranchers.”
Farmers and farm advocates interested in advocating a strong farm bill are encouraged to visit 2018FarmBill.org to learn more about the farm bill and information on how to contact members of Congress.
Early Registration For Export Exchange 2018 Closes Aug. 6
Early registration for Export Exchange 2018 is set to close Aug. 6, and potential attendees from the U.S. coarse grains and co-products value chains should register before that date to receive the lowest registration rate.
The event is scheduled from Oct. 22 to 24 in Minneapolis, sponsored by the U.S. Grains Council (USGC), Growth Energy and the Renewable Fuels Association (RFA).
The biennial event is expected to bring together nearly 500 farmers, agribusiness representatives, international buyers and end-users of coarse grains and co-products, including distiller’s dried grains with solubles (DDGS).
In addition to building relationships with domestic suppliers of corn, DDGS, sorghum, barley and other commodities, the conference will have general sessions that address issues facing U.S. agricultural exports and offer customers and sellers in attendance an increased awareness of the benefits of U.S. coarse grains and ethanol.
Registration is available online via www.exportexchange.org. USGC, Growth Energy and RFA members will be eligible for discounted registration pricing but should identify themselves as such when registering. Reporters wishing to cover Export Exchange are eligible for complimentary registration by sending an email to info@exportexchange.org and asking for the registration code.
More information will be distributed in the coming months to members of the grains industries and will be made available online at www.exportexchange.org or on social media using the hashtag #ExEx18. Those interested can sign up for a mailing list to automatically receive conference updates by emailing info@exportexchange.org.
Please visit www.grains.org for more information about the Council.
For more information about RFA, visit www.ethanolrfa.org.
For more information about Growth Energy, visit www.growthenergy.org.
Land O'Lakes, Inc. reports results for second quarter 2018
Land O’Lakes, Inc. today reported quarterly net sales of $4.2 billion and net earnings of $67.2 million in the second quarter ending June 30, 2018, compared with 2017 second quarter net sales of $3.7 billion and net earnings of $113.0 million. Year-to-date net sales totaled $8.1 billion with net earnings of $182.9 million compared to net sales of $7.3 billion and net earnings of $222.9 million for the same period in the prior year.
"The diversity of our business portfolio and our consistent ‘long view’ approach to growth equips Land O’Lakes to continue making steady progress, even as we face significant headwinds across the agricultural economy,” said Land O’Lakes, Inc. President and CEO Beth Ford. “It’s an important and exciting time to be at Land O’Lakes because our solid financial footing, clear plan for growth, and commitment to innovation by farmers and employees keep us nimble and confident during a time of uncertainty and change in our industry. We’ll continue building on what’s worked, with new value-added branding, expansion in high-potential markets and product categories, and innovative business models that leverage our ‘farm-to-fork’ scope.”
Despite growth in crop protection volumes, year-to-date earnings in Crop Inputs declined due to a shift in product mix resulting from growers trading down, late planting resulting in fewer applications and increased competitiveness. Earnings in Dairy Foods were higher with improved product mix in the branded butter portfolio and foodservice offsetting the impact of lower commodity markets in the ingredients business. Earnings in Animal Nutrition were flat with the prior year. The company’s Crop Nutrient business, which was added as part of the United Suppliers merger in October 2017, contributed an incremental $11 million to year-to-date earnings.
ADM Reports Second Quarter Earnings
Archer Daniels Midland Company (NYSE: ADM) today reported financial results for the quarter ended June 30, 2018. “Our team executed exceptionally well to deliver outstanding results in the second quarter,” said ADM Chairman and CEO Juan Luciano.
“We continue to accelerate the execution of our strategic plan — optimizing our core, driving efficiencies, and expanding strategically — generating more than $150 million in run-rate savings, announcing three acquisitions in Nutrition, and closing on two new joint ventures overseas. Our actions, combined with robust global demand, position us to navigate today’s dynamic business environment and deliver strong results in the second half of 2018, and put us on a trajectory for continued future growth in earnings, returns and shareholder value.
“We are proud of the results we are delivering, committed to our continued improvement and growth, and confident about ADM’s future.”
Bunge Struggles With Trade Losses and Currency
Bunge Ltd. announced lower-than-expected earnings on Wednesday due largely to some hedging losses that Bunge expects will turn around in the second half of the year.
Bunge reported a $12 million loss on Wednesday, compared to $81 million in net income for the second quarter a year ago. Adjusted earnings came in at 10 cents a share. Bunge's quarterly numbers were a surprise to analysts as Reuters had reported analysts had expected Bunge's adjusted earnings to come in closer to $1.04 a share. Bunge's earnings struggled despite overall sales for the quarter growing 4.3% to $12.15 billion from last year.
Bunge's losses were driven heavily by hedging losses and currency exchanges. Bunge was hit with $125 million in losses on contracts for soy crushing, but Bunge is carrying forward approximately $185 million in market-to-market accounts that the company anticipates "will reverse as we execute on these contracts in the second half of the year."
Bunge noted oilseeds remain driven by strong soy crush margins and "within range of expectations when considering market-to-market impact."
In grains, Bunge lost $22 million in trades, mainly because of a $24 million foreign exchange loss on hedges in Brazil that Bunge expects to reverse in the second half of the year as contracts are executed. Outside of the hedge loss, Bunge noted results in Brazil were better than 2017 due to higher volumes and margins, but results in Argentina were negative due to the impact of smaller crops caused by drought.
Bunge's fertilizer business was also hit with a $13 million loss because of foreign exchange losses on imported inventory and the devaluation of the Argentine currency. Bunge expects a gain in the second half of the year when those fertilizer inventories are sold.
Despite the poor quarter and first half of the year, Bunge stated it still expects to hit a goal of $1.3 billion in earnings before interest and taxes (EBIT) for 2018. In its SEC filing, Bunge expects its agribusiness units to generate $800 million to $1 billion in EBIT by the end of the year.
Tyson Blames Trade War as it Cuts Profit Forecast
Tyson Foods Inc., the largest U.S.-based meat producer, said profit this year will be less than it previously forecast because of the country's escalating trade dispute with major importers of agricultural products. According to Bloomberg, both China and Mexico have imposed import tariffs on American pork recently in retaliation against U.S. duties on metal shipments. The measures have sent hog prices plunging, eroding the profitability at Tyson's pork business. The Springdale, Arkansas-based company said Monday it's also grappling with higher commodity-market volatility and "sluggish" domestic demand for chicken.
"The combination of changing global trade policies here and abroad, and the uncertainty of any resolution, have created a challenging market environment of increased volatility, lower prices and oversupply of protein," Chief Executive Officer Tom Hayes said in a statement.
The American farm sector is one of the few areas of the economy that typically operates with a trade surplus, and agriculture groups have sounded off against the trade war's potential toll on exports. Net farm income is poised to reach a 12-year low in 2018, and challenges for meat demand may offset some of the benefits of cheaper feed-grain prices. The Trump administration last week announced a plan to provide $12 billion in assistance to U.S. farmers.
Tyson said its earnings in fiscal 2018 excluding one-time items will be about $5.70 to $6 a share, compared with a previous view of $6.55 to $6.70, Bloomberg reports.
The shares slumped as much as 8.2 percent, the biggest intraday drop since November 2016. They were down 5.5 percent at $60.04 at 10:49 a.m. in New York. Rival poultry producers Pilgrim's Pride Corp. and Sanderson Farms Inc., and Hormel Foods Corp., which processes pork, declined.
The trade challenges come amid a surge in U.S. meat production, making exports increasingly vital to offload surpluses. American output of red meat and poultry is expected to reach an all-time high and swell further in 2019. Wholesale chicken breast prices are the cheapest for this time of year since at least 2010 and pork is at a seasonal nine-year low, government data show.
National Agriculture Leaders Roundtable: Nuisance Lawsuits & their threat to all of Agriculture and Farm Families Nationwide
On Friday, August 3rd, 2018 at 9:00 a.m., U.S. Congressman David Rouzer (R-NC), U.S. Senator Thom Tillis (R-NC), U.S. House Agriculture Committee Chairman Mike Conaway (R-TX), and North Carolina Agriculture Commissioner Steve Troxler will convene a National Agriculture Leaders Roundtable to discuss the threat that nuisance lawsuits pose to the U.S. agriculture industry, rural America, and farm families nationwide. The roundtable will be comprised of federal officials, state officials, economists, and national agriculture industry representatives, including the President of the American Farm Bureau, Zippy Duvall.
“Today’s nuisance lawsuits that are destroying livelihoods and communities in North Carolina are the tip of the iceberg for what is to come absent a well-informed public and good public policy. A ‘nuisance’ is very much in the eye of the beholder and every single farm family that is in compliance with all applicable regulations – no matter what they are growing – should have a safe harbor from legal action being brought against them. This is a very slippery slope that threatens the very existence of every form of agriculture nationwide,” said Congressman David Rouzer.
"I want to thank Congressman Rouzer for hosting this roundtable to hear directly from North Carolina's farmers about how the nuisance lawsuits could affect their livelihoods. The influence from outside lawyers in this case has the potential to decimate our state’s vibrant agriculture industry and the countless rural communities supported by it. Agriculture is the number one industry in North Carolina, and it is important to hear from those affected by this threat. These lawsuits have the potential to affect the agriculture community and farmers nationwide, and I look forward to participating in this event to learn how North Carolinians could be affected and how we can help," said Senator Thom Tillis.
“Agriculture is a blessing that most of us count on at least three times a day. Not a nuisance. People need to understand that every food item starts on a farm, not a grocery store shelf. When we take our farmers and food production for granted, we stand to literally lose the hand that feeds us. I am grateful that others are paying attention to this issue which could affect farmers everywhere,” said Agriculture Commissioner Steve Troxler.
Those individuals and organizations that intend to participate include:
Chairman David Rouzer, U.S. House Subcommittee on Livestock and Foreign Agriculture
Chairman Michael Conaway, U.S. House Committee on Agriculture
Senator Thom Tillis
Commissioner Steve Troxler, North Carolina Department of Agriculture & Consumer Services
President Zippy Duvall, American Farm Bureau Federation
Commissioner Hugh Weathers, South Carolina Department of Agriculture
North Carolina State Senator Brent Jackson
North Carolina State Representative Jimmy Dixon
North Carolina State Representative Ken Goodman
Lieutenant Governor Dan Forest
North Carolina House Majority Leader John Bell
Dr. Kelly Zering, North Carolina State University
U.S. Department of Agriculture Under Secretary Bill Northey, Farm Production and Conservation
Barb Glenn, CEO of National Association of State Departments of Agriculture
Commissioner Gary Black, Georgia Department of Agriculture
Secretary Michael Scuse, Delaware Department of Agriculture
Commissioner Sid Miller, Texas Department of Agriculture
Dr. Howard Hill, Past President of National Pork Producers Council
Kerry Doughty, CEO of Butterball
Brad Cornelius, CEO of Cape Fear Farm Credit
Dave Corum, CEO of AgCarolina
Vance Dalton, Jr., CEO of Carolina Farm Credit
Gary Floyd, Executive Vice President of L. Harvey Inc.
American Soybean Association
National Association of Wheat Growers
National Cotton Council
National Corn Growers Association
United Egg Producers
NC Peanut Growers Association
North Carolina Sweet Potato Commission
National Chicken Council
American Feed Industry Association
National Cattlemen’s Beef Association
National Turkey Federation
Agricultural Retailers Association
National Pork Producers Council
It will take place on Friday, August 3rd, at the North Carolina Fairgrounds, Raleigh, North Carolina.
Today, U.S. Senator Deb Fischer (R-Neb) praised the Senate’s passage of her amendment that would extend the electronic logging device (ELD) waiver for livestock haulers by one year, while she continues working to make the hours-of-service requirements more flexible. Senator Fischer, a member of the Senate Agriculture Committee and the Senate Commerce Committee, has continued to fight for hours-of-service relief and issued the following statement:
“Nebraskans who transport livestock face unique challenges. Today the Senate passed my amendment to delay electronic logging device requirements for livestock haulers for one year. With this extension, we will have more time to bring common-sense to these rules and provide additional flexibility.”
Senator Fischer worked closely with Senate Commerce Committee leadership, Chairman John Thune and Ranking Member Bill Nelson, to include her ELD amendment in the Minibus Appropriations bill that passed the Senate.
Senator Fischer first brought concerns about the inflexibility of hours-of-service requirements to Secretary of Transportation Elaine Chao in August of 2017. Senator Fischer held subsequent meetings with leadership at the Federal Motor Carrier Safety Administration (FMCSA) to stress the need for flexible hours-of-service.
Following those meetings, the agency extended the temporary waiver from the ELD requirement for ag and livestock haulers while it continued reviewing its guidance. Additionally, Senator Fischer worked to ensure an extension of the ELD waiver for livestock haulers the through September 30, 2018, was signed into law in March. In May, FMCSA issued its guidance on hours-of-service requirements that provided some flexibility for truckers, including livestock haulers. Senator Fischer has continued working to expand on that hours-of-service flexibility, both with the administration and members of the Senate.
The livestock industry plays a critical role in the viability of Nebraska’s agriculture industry and the state’s economy. Nebraska ranks first in the country for cattle on feed, second in total number of cattle and calves, and sixth in hog production.
Statement by Steve Nelson, President, Regarding Adoption of Sen. Fischer Amendment on Livestock Hauler Exemption
“Today the Senate acted to provide livestock haulers with a one-year extension from having to comply with electronic logging device requirements under federal hours of service regulations. This is an important step in the ongoing process to make sure federal regulations governing livestock transport provide much needed flexibility to our state’s livestock haulers. We greatly appreciate Sen. Fischer’s leadership and efforts to successfully bring this amendment to the table and secure its passage as part of broader legislation to fund government programs. We look forward to continuing to work with Sen. Fischer to find a permanent solution that provides a common-sense approach to regulations that recognize the unique challenges that exist in hauling livestock animals.”
NEBRASKA EXTENSION OFFERS CORN AND SOYBEAN PRODUCTION CLINICS IN AUGUST
Nebraska Extension’s Aug. 22 Midwest Soybean Production Clinic and Aug. 23 Midwest Corn Production Clinic will provide an in-field opportunity for participants to work with crops in the early vegetative stages of growth through maturity.
“Agribusiness professionals and crop producers will take a close-up look at field conditions, research and techniques at the University of Nebraska’s Crop Management Diagnostic Clinics,” said Nebraska Extension Educator Keith Glewen. “The clinics provide opportunities for hands-on interaction.”
Soybean clinic topics include: cultural practices; genetics/agronomics; insect management; plant pathology; soil fertility; and weed management.
Corn clinic topics include: cultural practices; genetics/production; insect damage; plant pathology; soil fertility; and weed science.
Registration begins at 8 a.m. both days and the clinics run from 8:30 a.m. to 5 p.m. Participants will meet at the August N. Christenson Research and Education Building at the university’s Eastern Nebraska Research and Extension Center near Mead.
A total of 8 Certified Crop Adviser credits (crop management – 2, nutrient management – 2, and pest management - 4) have been applied for and are pending approval for each clinic. Participants will earn 16 credits by attending both days.
Early registration is recommended to reserve a seat (limit 60) and resource materials. Cost for one clinic is $95 for those registering one week in advance and $120 after. Special pricing is available for those registering for both clinics - $150 by Aug. 17, $200 after.
For more information or to register, contact the Nebraska Extension CMDC Programs, 1071 County Road G, Ithaca, NE 68033, call (800) 529-8030, fax (402) 624-8010, e-mail cdunbar2@unl.edu or visit https://enre.unl.edu/crop/.
From County Bridges to Chinese Markets, Ag Transportation Summit Focuses on Connecting Supply to Demand
Issues from international trade relations to domestic infrastructure concerns were discussed at the Ag Transportation Summit July 25 and 26.
The summit, held every two years, is hosted by the National Grain and Feed Association and the Soy Transportation Coalition. The summit’s goal is to bring leaders from producer organizations, agribusiness and the government to focus on maintaining and improving waterway, rail, truck and vessel transportation of U.S. agriculture.
“It’s kind of ironic that these trade and tariff issues are going on right now,” Nebraska Soybean Board and Soy Transportation Coalition member Richard Bartek said, noting that over half of Nebraska’s soybeans are exported to foreign markets.
While Bartek said most of those soybeans travel by railroad to the Pacific Northwest, they may begin to travel in another direction if China buys fewer U.S. soybeans.
“In our meeting, we had people concerned about where our product’s going to go,” Bartek said. “We know in this day and age people aren’t going to stop eating, and livestock’s got to have food. The world’s not going to stop just because of this trade issue.”
Infrastructure at the local level was a primary topic during both the summit and the Soy Transportation Coalition’s meeting leading up to it.
“When it comes to bridges and highways and railroads, that’s what I’m concerned about in Nebraska,” Bartek said. “The bridges are getting older and needing work. A lot of them are being closed, and this puts a hardship on school districts as well agriculture transportation.”
Nebraska Soybean Board and Soy Transportation Coalition member Doug Saathoff said he learned about load testing and geosynthetic reinforced soil bridge systems during the meeting.
“A local farmer could build them, using the materials he could find at Menard’s,” Saathoff said. “They’re strong and safe and reduce costs for everybody.”
Saathoff said the highlight of the summit was hearing Secretary of Agriculture Sonny Perdue speak reassuringly about the future of trade.
“We’re good at what we do,” Saathoff said. “We’re raising a quality product, and we’re raising a lot of it. We just need to keep our markets open and the demand for our products high.”
Senators confront Acting EPA Administrator on ethanol during EPW hearing
Today, Acting Environmental Protection Agency (EPA) Administrator Andrew Wheeler testified before the Senate Committee on Environment and Public Works (EPW). American Coalition for Ethanol (ACE) CEO Brian Jennings commended a handful of bipartisan Senators for demanding answers to the biofuel industry’s priority issues with the following statement:
“ACE extends our highest gratitude to Senators Joni Ernst (R-Iowa), Mike Rounds (R-S.D.), Deb Fischer (R-Neb.), and Tammy Duckworth (D-Ill.) for confronting Acting EPA Administrator Wheeler about the ethanol demand destruction created by an unprecedented number of small refinery exemptions (SREs) and how EPA intends to reallocate the waived gallons, as well as the need to make good on the President’s repeated promises to allow E15 use year-round. This is another example of the strong bipartisan support in Congress for making sure EPA follows the law while implementing the Renewable Fuel Standard.
“While we appreciate Acting Administrator Wheeler is looking into how EPA might reallocate the SREs and intends to publicize a “dashboard” to provide more transparency about the circumstances around why refineries receive exemptions from RFS compliance, farmers and biofuel producers are suffering the consequences of demand destruction and collapsed RIN and commodity markets. We need reallocation sooner rather than later.
“Finally, as I have said many times, actions speak louder than words. The President has promised to allow E15 use year-round on multiple occasions, including the public statement in Iowa last week about being “very close” to making this happen. I am disappointed Acting Administrator Wheeler said “some don’t think we have the authority” to allow E15 use year-round because even former administrator Scott Pruitt admitted EPA has the legal authority when speaking with ACE members in Kansas and South Dakota in June. It is important for Acting Administrator Wheeler to make good on the president’s promises to maintain the RFS as the law of the land and allow E15 year-round.”
Soybeans are BIG as ISA Celebrates August Soybean Month
The Iowa Soybean Association (ISA) continues its commitment to soybean farmers and their industry by ringing in August as Soybean Month.
The celebration touting Iowa’s 40,000-plus soybean farmers and their commitment to sustainably producing more than 550 million bushels of soybeans annually valued at nearly $5 billion include numerous events and activities.
They include a Soybeans Are Big In Iowa Month proclamation signing by Gov. Kim Reynolds Friday, Aug. 10. ISA members and staff will also be present throughout the month at events across Iowa to meet with farmers and share the local, state and national benefits of soybean production.
“As we prepare for another harvest, August is always a great reminder to celebrate soybean production and promote how soybeans help feed and fuel a growing global population,” says ISA President Bill Shipley of Nodaway. “We celebrate soybeans year-round at the ISA, but August provides a timely opportunity to bring added attention to the industry’s contributions to Iowa, the nation and the world.”
The ISA will bring the story of soybean production to:
Iowa State Fair, Aug. 9 – 19
ISA will sponsor activities in venues throughout the fairgrounds including the Ag Building and Animal Learning Center.
Soybean farmers will converse with fairgoers in the Ag Building Aug. 9 and 16 from 9 a.m. to 6 p.m. They’ll share insights about the soybean industry, and answer questions about production, environmental stewardship and trade. Visitors can test their agricultural knowledge and win prizes.
The ISA is also proud to sponsor the Little Hands on the Farm Kids Zone on the fairground’s north side. Little Hands on the Farm teaches children the importance of agriculture and how it affects their daily lives in a fun and interactive way.
On Sunday, Aug. 12, nearly 100 farmers will welcome 400 guests as they gather around the largest dinner table ever set at the Iowa State Fair. The table will be set in the middle of the Grand Concourse.. The ISA is proud to help sponsor this unique event where farmers will share how food is grown and makes its way from the farm to the fair as they encourage additional farm and city fellowship.
Soybeans will also be on display at the Varied Industries building as part of the Iowa Food and Family Project exhibit. The ISA is a founding partner of the Iowa Food & Family project that encourages Iowans to become more confident and trusting in agriculture and food production through community activities, educational programs and information sharing.
Expedition Farm Tour, Aug. 24 - 25
The ISA is helping sponsor the Iowa Food & Family project’s fourth annual Expedition Farm Country. Fifty consumers will be selected to participate in the two-day tour of farms, historic sites and local eateries. One of the stops includes ISA farmer director, Suzanne Shirbroun and her husband, Joe. To learn more or enter for the opportunity to participate, go to www.iowafoodandfamily.com.
Farm Progress Show, Aug.28 – 30
Guests are encouraged to visit tent No. 740 for farmer/industry dialogue and hands-on learning. Show-goers can learn the latest information regarding soybean research, markets, and get a chance to talk with ISA directors. American Soybean Association representatives will also be on hand to offer additional perspectives about policy issues impacting soybean farmers. Attendees who join the ISA as an Advocate member during the show will receive a personalized farm sign painted on authentic barn wood and be entered to win a $500 biodiesel gift card sponsored by the Iowa Renewable Fuels Association.
Why are Soybeans Big in Iowa?
Iowa routinely ranks first or second nationally in soybean production.. It accounts for approximately 14 percent of all soybeans grown in the U.S.. The state’s soybean farmers have invested more than $40 million in research to further promote conservation and sustainability efforts since the ISA was launched in 1964. Iowa-grown soybeans also contribute to the local and global economy in a variety of ways:
· Biodiesel: Iowa is the leading biodiesel-producing state. Iowa biodiesel supported nearly 3,800 full-time equivalent jobs in the state in 2017 and adds $457 million of GDP annually, per the National Biodiesel board. Biodiesel alone contributes to 63 cents in market value while also lowering the price of soybean meal for livestock farmers.
· Livestock: One of every four rows of soybeans grown in Iowa is fed to the more than 38 million pigs raised annually in Iowa. Domestic animal agriculture uses over 26 million metric tons of U.S. soybean meal. That’s the meal from more than 1.2 billion bushels of U.S. soybeans.
· Research: The ISA works to improve the profitability and sustainability of Iowa soybean farmers. Research done through the ISA On-Farm Network contributes to improve sustainability efforts such as bioreactors, which can reduce nitrogen runoff by up to 90%.
· Soyfoods: With protein being the most sought-out nutritional attribute, 52 percent of millennials are consuming soy, which is low in fat and cholesterol, at least once a week. Over the past four years, more than 170 new soy products have been brought to market.
Iowa DNR Claims Mission Accomplished - Environmental Groups Say They Fall Short
Food and Water Watch press release
Today, Iowa’s Department of Natural Resources (DNR) submitted its fifth annual report of its progress implementing the precedent-setting Work Plan Agreement between the department and the Environmental Protection Agency (EPA). The report states that DNR believes it has met all of the requirements of the Work Plan and brought its factory farm program into compliance with the Clean Water Act (CWA).
But, local and national farm and environment groups say the DNR continues to allow factory farms to pollute Iowa waters. Because more oversight is needed, the EPA should take further action in response to the pending “de-delegation” petition to strip DNR of its CWA authority for failure to adequately regulate concentrated animal feeding operations (CAFOs), or factory farms.
The DNR/EPA Work Plan Agreement followed an EPA investigation, which was conducted in response to a de-delegation petition filed by Iowa CCI, the Environmental Integrity Project, and Iowa Sierra Club. EPA’s investigation found that DNR was failing to issue CWA permits to polluting factory farms and was taking inadequate enforcement actions that do not deter future pollution. The Work Plan required DNR to inspect thousands of facilities to identify polluters, issue permits to dischargers, and strengthen its enforcement actions.
After five years, DNR reports that it has completed the required inspections of the factory farms in its database. But the CAFO inventory the Work Plan required has also uncovered thousands of additional facilities that could be livestock confinements in need of CWA permits. Today’s report confirms that DNR has yet to identify or inspect thousands of these recently discovered facilities.
Of the “unknown” factory farms that DNR has identified so far, over 500 are medium livestock operations and several are large CAFOs, as defined by the EPA.
“Over 500 operations produce a lot of unaccounted for toxic liquid manure. We have a water crisis. It’s DNR’s job to make sure factory farm manure is accounted for and does not make its way into our waterways,” said Cherie Mortice, former hog farmer, retired teacher, and Board President of Iowa CCI.
The 2018 Report also shows that DNR is still failing to issue discharge permits to CAFOs, despite a dozen documented discharges to Iowa waters since last year’s report. In fact, the total number of CWA permits in effect for CAFOs has actually declined over the past year.
“Any factory farm that discharges pollution needs a Clean Water Act permit and needs to be held accountable, not just given a slap on the wrist,” said Barb Kalbach, 4th generation family farmer from Dexter.
Iowa’s more than 22 million hogs confined in thousands of factory farms produce nearly 22 billion gallons of toxic manure every year. There have been more than 800 documented manure spills since 1996 and Iowa currently has more than 750 polluted waterways. Iowa’s 2014 list of impaired waterways shows manure is a leading cause of impairments in Iowa lakes and rivers.
“Checking the boxes on the Work Plan has failed to address widespread manure pollution in state waterways, and additional EPA action is clearly needed,” said Tarah Heinzen, Staff Attorney with Food & Water Watch.
“DNR may think it has escaped any further requirements under the Work Plan, but we expect DNR to inspect animal feeding operations and issue permits and penalties as required by the Clean Water Act,” said Wally Taylor, Iowa Sierra Club Attorney.
“This Work Plan will only be successful if it leads to real oversight of factory farm pollution in Iowa. That means serious inspections, strong permits, and enforcement actions that ensure it doesn’t pay to pollute. DNR hasn’t shown that it takes permitting and enforcement seriously. Iowa needs NPDES permits for all existing factory farms and a moratorium on new or expanding factory farms,” said Jess Mazour, Farm & Environment Organizer at Iowa CCI.
Statement on Senate’s 84-14 Rejection of Lee-Booker Effort to Block FDA Food Labeling Standards Enforcement
Jim Mulhern, President and CEO, National Milk Producers Federation
“We are very pleased with the Senate’s overwhelming rejection of Sen. Lee’s blatant attempt to interfere with the ability of the Food and Drug Administration to enforce standards of identity for dairy products and other foods. We fought this amendment because it would have undermined the decades-long policy, established by Congress, that the FDA should regulate food names in order to promote honesty and fair dealing in the interest of consumers.
Standards of identity for milk and other products guarantee that consumers’ expectations are met both in terms of minimum levels of key ingredients and consistency of key sensory and quality attributes. As FDA Commissioner Gottlieb stated last week, consumers are being misled by the nutritional content of plant-based beverages that use the term “milk” on their labels.
Today’s vote should send a very strong message to food marketers who have long been ignoring FDA’s food labeling standards by inappropriately using dairy terms on products that do not contain any dairy. Those days are numbered. FDA now knows it has strong, bipartisan support in Congress in its efforts to assure a fair marketplace. We thank Senators Tammy Baldwin (D-WI) and Jim Risch (R-ID) for their bipartisan work to defeat this amendment.
We also commend Sen. Baldwin for her successful work on a separate amendment that will create additional dairy innovation grants to help companies expand initiatives that will add more value to the milk farmers produce.”
Roberts, Stabenow Applaud Vote to Begin Farm Bill Conference, Appointment of Conferees
U.S. Senate Agriculture Committee Chairman Pat Roberts, R-Kan., and Ranking Member Debbie Stabenow, D-Mich., today are pleased the Senate has voted to move forward with the 2018 Farm Bill Conference Committee. The Senators also applauded the announcement of the Senators who will serve on the 2018 Farm Bill Conference Committee.
- Chairman Pat Roberts, R-Kan.
- Senate Majority Leader Mitch McConnell, R-Ky.
- Sen. John Boozman, R-Ark.
- Sen. John Hoeven, R-N.D.
- Sen. Joni Ernst, R-Iowa
- Ranking Member Debbie Stabenow, D-Mich.
- Sen. Patrick Leahy, D-Vt.
- Sen. Sherrod Brown, D-Ohio
- Sen. Heidi Heitkamp, D-N.D.
“This strong group of Senate conferees knows how to work together on a bipartisan basis to get the Farm Bill across the finish line,” said Roberts and Stabenow. “We look forward to beginning the conference process so we can provide certainty to our farmers, families, and rural communities.”
On June 28, 2018, the U.S. Senate passed the 2018 Farm Bill on a strong bipartisan 86-11 vote – the most votes a Senate Farm Bill has ever received. The bipartisan 5-year legislation encompasses a broad array of agriculture, nutrition, conservation, and forestry policy. The Senate bill has the support of more than 500 groups representing thousands of agriculture, food, nutrition, hunger, forestry, conservation, rural, business, faith-based, research, and academic interests. Click here to read the legislation, summaries, and amendments.
The Conference Committee will be composed of members of the U.S. House and Senate. The House conferees were announced earlier this month. A public meeting of the Conference Committee will be announced at a later date.
NAWG Applauds Congress for Moving Forward with Farm Bill Conference Committee
The House and Senate have officially announced their respective conferees for the 2018 Farm Bill. In total, 56 have been assigned to the Conference Committee, including members from both the Senate and House Agriculture Committees as well as from committees with jurisdiction in the bill. NAWG President and Sentinel, OK wheat farmer Jimmie Musick made the following statement:
“NAWG applauds that the House and Senate for moving forward with the 2018 Farm Bill reauthorization process by assigning members to the Conference Committee. While there is still much work to be done, we are pleased that House and Senate leadership are keeping up the momentum by completing this crucial next step in finalizing a 2018 Farm Bill.
“While reconciling differences between the two bills, NAWG urges Members to put politics aside and growers first by completing one bill that works for all of agriculture. In our discussions with the Conference Committee, we will continue to fight to prevent cuts to crop insurance and ensure growers have access to a strong safety net program.
“NAWG remains committed to prioritizing working lands programs in the Farm Bill and ensuring that wheat growers have access to conservation stewardship and practices-based payments. Voluntary conservation programs should address the resource concerns of all production areas and especially semi-arid regions with dryland farming where there is significant wheat production.
“Additionally, we will work to make sure the final bill has a fully funded Research Title, so growers can have access to the innovative technology allowing them to continue to produce a healthy crop at a lower cost for the consumer.
“NAWG will also work with the Committee to make sure the 2018 Farm Bill includes strong investment in the Market Access Program (MAP) and the Foreign Market Development Program (FMD) which allow small agricultural businesses to build export markets overseas.
“We are looking forward to working with members and their staff throughout this process and hope to finalize a bill by the September 30th deadline.”
Retail Fertilizer Trends Remain High
Retail fertilizer prices tracked by DTN for the fourth week of July 2018 once again show most fertilizers are slightly higher. Seven of the eight major fertilizers were higher compared to last month, but none were up a substantial amount. DAP had an average price of $486/ton, potash $356/ton, urea $366/ton, 10-34-0 $442/ton, anhydrous $501/ton, UAN28 $243/ton and UAN32 $279/ton.
One fertilizer was slightly lower than the previous month. MAP had an average price of $504/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.40/lb.N, anhydrous $0.31/lb.N, UAN28 $0.43/lb.N and UAN32 $0.44/lb.N.
All eight of the major fertilizers are now higher compared to last year with prices shifting higher in recent months. 10-34-0 is 4% higher; both potash and UAN32 are 5% more expensive; UAN28 is 6% higher; MAP is 9% more expensive; DAP is 12% higher; and both anhydrous and urea are now 19% more expensive compared to last year.
USDA Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks
Soybeans crushed for crude oil was 5.09 million tons (170 million bushels) in June 2018, compared to 5.17 million tons (172 million bushels) in May 2018 and 4.45 million tons (148 million bushels) in June 2017. Crude oil produced was 1.94 billion pounds down 2 percent from May 2018 but up 12 percent from June 2017. Soybean once refined oil production at 1.44 billion pounds during June 2018 decreased 2 percent from May 2018 but increased 6 percent from June 2017.
USDA Grain Crushings and Co-Products Production
Total corn consumed for alcohol and other uses was 517 million bushels in June 2018. Total corn consumption was down 1 percent from May 2018 but up 6 percent from June 2017. June 2018 usage included 91.2 percent for alcohol and 8.8 percent for other purposes. Corn consumed for beverage alcohol totaled 3.12 million bushels, up 7 percent from May 2018 and up 13 percent from June 2017. Corn for fuel alcohol, at 463 million bushels, was down 2 percent from May 2018 but up 6 percent from June 2017. Corn consumed in June 2018 for dry milling fuel production and wet milling fuel production was 91.1 percent and 8.9 percent respectively.
Dry mill co-product production of distillers dried grains with solubles (DDGS) was 2.02 million tons during June 2018, up 3 percent from May 2018 and up 9 percent from June 2017. Distillers wet grains (DWG) 65 percent or more moisture was 1.28 million tons in June 2018, down 8 percent from May 2018 but up slightly from June 2017.
Wet mill corn gluten feed production was 302 thousand tons during June 2018, up 4 percent from May 2018 but down 12 percent from June 2017. Wet corn gluten feed 40 to 60 percent moisture was 262 thousand tons in June 2018, down 7 percent from May 2018 and down 12 percent from June 2017.
USDA Flour Milling Products Report
All wheat ground for flour during the second quarter 2018 was 227 million bushels, down slightly from the first quarter 2018 grind of 227 million bushels but up 1 percent from the second quarter 2017 grind of 224 million bushels. Second quarter 2018 total flour production was 105 million hundredweight, down slightly from the first quarter 2018 but up 1 percent from the second quarter 2017. Whole wheat flour production at 5.39 million hundredweight during the second quarter 2018 accounted for 5 percent of the total flour production. Millfeed production from wheat in the second quarter 2018 was 1.59 million tons. The daily 24-hour milling capacity of wheat flour during the second quarter 2018 was 1.64 million hundredweight.
US Ethanol Production Capacity Up
Fuel ethanol production in the United States reached more than 16 billion gallons per year, or 1.06 million barrels per day (bpd), at the beginning of 2018, according to data highlighted by the Energy Information Administration in its latest Today in Energy series.
EIA's most recent U.S. Fuel Ethanol Plant Production Capacity report shows total listed, or nameplate capacity, of operable ethanol plants increased 5% -- more than 700 million gallons per year -- between January 2017 and 2018.
Part of the increase in nameplate fuel ethanol production capacity in the most recent report is the result of EIA's outreach to survey respondents that were operating at levels higher than their listed production capacities, which had resulted in utilization rates above 100%.
In previous surveys, these respondents reported the facilities' original design capacity values and may not have accounted for expansions or modifications at the plants. This year, some respondents increased their nameplate production capacity to values consistent with EIA's definition.
The remaining increase in production capacity was a result of plant improvements and process modifications such as equipment upgrades, plant expansions, improved maintenance routines and installation of new equipment at some facilities.
EIA reports actual U.S. production of fuel ethanol reached a total of 15.8 billion gallons, or 1.03 million bpd in 2017. In its Short-term Outlook, EIA forecast ethanol production to reach 15.9 billion gallons this year, which would equate to 98% utilization of reported nameplate capacity as of Jan. 1.
USDA Announces Commodity Credit Corporation Lending Rates for August 2018
The U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation, today, announced interest rates for August 2018. The Commodity Credit Corporation borrowing rate-based charge for August is 2.375 percent, up from 2.250 percent in July.
The interest rate for crop year commodity loans less than one year disbursed during August is 3.375 percent, up from 3.250 percent in July.
Interest rates for Farm Storage Facility Loans approved for August are as follows: 2.625 percent with three-year loan terms, the same as 2.625 percent in July; 2.750 percent with five-year loan terms, the same as 2.750 percent in July; 2.875 percent with seven-year loan terms, the same as 2.875 percent in July; 2.875 percent with 10-year loan terms, the same as 2.875 percent in July and; 2.875 percent with 12-year loan terms, down from 3.000 percent in July.
Critical Issues to be Addressed at 2018 Cattle Industry Summer Meeting
More than 600 cattle industry leaders will be attending the Cattle Industry Summer Business Meeting in Denver this week to help create direction for critical industry programs. The meeting is taking place Aug. 1-4.
The event includes meetings of cattlemen and women representing the National Cattlemen’s Beef Association, Cattlemen’s Beef Promotion and Research Board, American National CattleWomen and National Cattlemen’s Foundation. Among the purposes of the yearly conference is to create a framework for checkoff and policy efforts on behalf of U.S. cattle producers for the upcoming fiscal year, which for NCBA and the Cattlemen’s Beef Board begins Oct. 1.
Keynoter at the Thursday, Aug. 2, Opening General Session will be Tom Hayes, president and CEO of Tyson Foods, Inc., the country’s largest food company. Leading Tyson since 2016, Hayes has been focused on creating shared value and addressing societal needs and challenges in a way that benefits company stakeholders. He will engage with General Session attendees in a lively, informal discussion of topics of prime importance to the entire beef community. The session is sponsored by Boehringer Ingelheim Animal Health.
Also at the Summer Business Meeting, 2018 Environmental Stewardship Awards Program (ESAP) regional winners will be announced. Regional winners will compete for the national ESAP award, to be named during the 2019 Cattle Industry Convention and NCBA Trade Show next January in New Orleans, La.
“During these important meetings U.S. cattle producer leaders actively discuss and develop the direction of industrywide policy and demand-building programs,” said Kevin Kester, a California beef producer and NCBA president. “It’s a critical component of our grassroots process as we set stage for upcoming organizational efforts.”
Joint Committees and Subcommittees will meet on Thursday and Friday to develop proposals for 2019 checkoff-funded research, education and promotion programs. Also on Friday NCBA policy committees will meet to determine priorities and discuss strategies for 2019. The NCBA Board will hold its board meeting on Saturday, Aug. 4. The meeting of the Cattlemen’s Beef Board will take place on Friday, Aug. 3.
“The Cattle Industry Summer Business Meeting is a demonstration of the dedication and broad vision of hundreds of cattlemen and women from across the country, “said Kester. “Despite their busy schedules at home, these U.S. cattle producers have taken the time to help assure the beef cattle industry has the best chance of future success.”
Emerging Markets For Grains, Ethanol Take Center Stage At U.S Grains Council Meeting In Denver
In a global trade environment challenged by tariffs and tensions, emerging markets for grains and ethanol provided a bright spot for U.S. farmers, agribusinesses and industry officials at the U.S. Grains Council’s 58th Annual Board of Delegates meeting in Denver.
The Council’s Middle East and Africa Director Ramy Taieb and Manager of Global Trade Alvaro Cordero spoke on a panel moderated by the Council’s Senior Director of Global Strategies Kurt Shultz, highlighting the Middle East and North Africa as a 10 million metric ton (394 million bushel) market for U.S. grains in all forms.
They focused on new demand in Saudi Arabia for U.S. sorghum and distiller’s dried grains with solubles (DDGS), near-term opportunities developed following years of work by Council staff and members to set the stage with local customers.
“The Middle East and North African is a vast area with a lot of complexity,” Taieb said to the group. “However, from the perspective of the U.S. producer, it’s an important area of the world that encompasses 17 countries importing grains products valued at more than $1.8 billion.”
The Council has a regional office in Tunisia and consultants in Turkey, Pakistan, Morocco, Algeria, Egypt, Saudi Arabia and Jordan, who also covers Oman and the United Arab Emirates.
“Regional imports have been growing over the past five years from 2.5 MMT (98 million bushels) in marketing year 2013/2014 to 8 MMT (315 million bushels) in marketing year 2016/2017. We are expecting to reach 10 MMT (394 million bushels) of grains in all forms to the region this year,” Taieb said. “The U.S. Grains Council has focused on being flexible and responsive to the shifting market opportunities as they arise in the region.”
In addition to other sales in the region, speakers shared that U.S. corn sales to Saudi Arabia totaled $383 million in the 2016/2017 marketing year, a 150 percent growth over the previous marketing year.
Tuesday’s general sessions also featured a presentation on the economic conditions facing the United States and the farm economy by Will Secor, an economist in the knowledge exchange division at CoBank, a national cooperative bank serving industries across rural America. Secor said that despite developing challenges on the global trade stage, the long-term outlook for U.S. grains demand is positive.
Council Chief Economist Mike Dwyer led off the afternoon’s round of speakers, updating the farmers and other delegates in attendance on the industry’s ethanol market development efforts. The U.S. is the world’s largest producer, consumer and exporter of fuel ethanol and is the most cost-competitive ethanol supplier due to large-scale production, industry innovation and access to competitively-priced feedstock.
“No other grain-in-all-forms category comes close as a driver of growing corn demand,” Dwyer told the delegates about ethanol exports. “U.S. exports of grains in all forms could rise to a record 138 MMT by 2022 if we meet our ambitious goals.”
Dwyer was followed by Dan Halstrom, president and CEO of the U.S. Meat Export Federation, and James Sumner, president of the USA Poultry and Egg Export Council, who provided insights from their sectors, both of which are working to grow new overseas demand while defending established markets in a complicated trade environment.
According to a recent USGC and National Corn Growers Association study, grain-in-all-forms exports accounted for $55.5 billion in economic output in 2015, the most recent year with full data available, with more than 262,000 U.S. jobs connected to these sales.
Jim Stitzlein Elected U.S. Grains Council Chairman At Denver Meeting
Delegates of the U.S. Grains Council (USGC) elected as chairman Jim Stitzlein, manager of market development for Consolidated Grain and Barge Co., at its 58th Annual Board of Delegates Meeting on Wednesday.
Stitzlein unveiled his chairman’s theme during the final general session: “When Trade Works, the World Wins.”
“The diversity of the U.S. Grains Council is key to the work it does,” Stitzlein said. “From farmers to traders and agribusinesses, each role is important in the Council’s mission of developing markets, enabling trade and improving lives.
"Working with those diverse perspectives within the global trade market is one way to encourage effective and efficient trade in both supply and price for international customers, steady growth in world markets and political stability throughout the world.”
Stitzlein has more than 40 years of experience in the commodity grain handling and export business, including local origination programs; hedging and merchandising; transportation, logistics and facility management; and export trading and documentation.
Involved with the Council for more than 20 years, Stitzlein has traveled extensively for the organization, is active in the National Grain and Feed Association (NGFA), from which he received the NGFA Distinguished Service Award, and has broadly participated in other activities related to quality and biotechnology as they impact the grain trade.
Stitzlein grew up working on his family farm in Ohio where he was active in 4-H and FFA. He earned both a bachelor’s and master’s degrees in agricultural economics from Ohio State University.
In addition to Stitzlein’s ascendency, the Council’s delegates elected Jim Raben from the Illinois Corn Marketing Board as secretary/treasurer, sector directors and three at-large directors.
The Board of Directors now includes:
Jim Stitzlein, Chairman, Consolidated Grain and Barge Co.
Darren Armstrong, Corn Growers Association of North Carolina, Inc., Vice Chairman
Jim Raben, Illinois Corn Marketing Board, Secretary/Treasurer
Deb Keller, Past Chairman, Iowa Corn Promotion Board
Thomas N. Sleight, President and CEO
Duane Aistrope, Iowa Corn Promotion Board, At-Large Director
Ray Defenbaugh, Big River Resources LLC, Agribusiness/Ethanol And Co-Products Sector Director
Greg Hibner, J.D. Heiskell Hawkeye Gold Office, Agribusiness Sector Director
Charles Ray Huddleston, United Sorghum Checkoff Program, Sorghum Sector Director
Joshua Miller, Indiana Corn Marketing Council, At-Large Director
Tom Mueller, Illinois Corn Marketing Board, Corn Sector Director
Tadd Nicholson, Ohio Corn and Wheat Growers Association, Checkoff Sector Director
Mark Seastrand, North Dakota Barley Council, Barley Sector Director
Ryan Wagner, South Dakota Corn Utilization Council, At-Large Director
Chad Willis, Minnesota Corn Research & Promotion Council, At-Large Director
The new Board of Directors seated Wednesday will serve until July 2019.
The Council’s summer meeting has been ongoing since Monday, featuring general sessions focused on the emerging trade policy landscape, meetings of the organization’s Advisory Teams and sessions of membership sectors.
Biodiesel Board Files Opening Brief to Challenge 2018 RFS
The National Biodiesel Board has filed an opening brief in its lawsuit objecting to EPA's methodology for establishing the 2018 Renewable Fuel Standards. The group is specifically disputing three issues with EPA's final RFS rule for 2018, arguing EPA must account for all small refinery exemptions in the annual percentage standard; the agency acted arbitrarily when it set the 2018 advanced biofuel volume below what it found to be "reasonably attainable;" and the agency set the 2019 biomass-based diesel volume based on impermissible considerations.
NBB's brief is the first the courts will consider in arguing that EPA must account for all small refinery "hardship" exemptions -- including retroactively granted exemptions -- when it sets the annual RFS volumes and Renewable Volume Obligations (RVOs).
NBB's brief states, "EPA unlawfully has failed to account for all small-refinery exemptions it awards, violating its duty to promulgate percentage standards that 'ensure' all aggregate volumes are met. Unaccounted for small-refinery exemptions reduce aggregate volumes, and EPA's approach creates a new, de facto waiver authority contrary to Congress's design. Despite knowing those consequences, EPA declines to adjust percentage standards to account for that shortfall, either before it is likely to happen or after it actually does."
EPA has disclosed that it recently retroactively granted 48 small refinery hardship exemptions, reducing the 2016 and 2017 RVOs by a combined 2.25 billion RINs.
NBB forcefully argues that EPA violated its duty to ensure that the annual volumes it sets are met.
The agency asked for comment in the 2018 RFS rulemaking process on how to treat retroactive small refinery exemptions but decided not to account for them in the final standards.
American Soybean Association Joins Farmers for Free Trade
This week, the American Soybean Association (ASA), the voice for more than 30 soybean-producing states and 300,000 soybean farmers across America, announced that it will be joining Farmers for Free Trade.
Farmers for Free Trade is a bipartisan campaign co-chaired by former Senators Max Baucus and Richard Lugar that is amplifying the voices of American farmers, ranchers and agricultural businesses that support free trade. The American Soybean Association joins the American Farm Bureau Federation, the National Pork Producers Council, and multiple other agriculture, trade and commodity groups that are partnering with Farmers for Free Trade to strengthen support for trade in rural communities.
Ryan Findlay, CEO of ASA, commented, “We need strong, likeminded allies to galvanize farmers in a collective call for solutions from the Administration and Congressional leaders on advocating for new trade agreements and expanding international markets. We have watched for some time and with appreciation the efforts of Farmers for Free Trade and the spirit of collaboration it has fostered to help ag and those industries related to agriculture and are happy to join their efforts.”
“The American Soybean Association has been a leader in promoting free trade in the agriculture sector,” said Senator Baucus. “Their addition to this important bipartisan effort will be invaluable in expanding our reach to soybean farmers across the country. Right now, soybean farmers are bearing the brunt of the ongoing trade war. Working together with Farmers for Free Trade, we aim to amplify the voices of these farmers to ensure that decision makers in Washington D.C. know the pain that tariffs are causing at the local level.”
“We are thrilled to add the American Soybean Association to the momentum of this rapidly growing effort,” said Senator Lugar. “The American Soybean Association knows that promoting agriculture-friendly, bipartisan trade policies on Capitol Hill starts with organizing America’s farmers at the grassroots level. With their help, we’ll be able to mobilize even more farmers whose livelihoods depend on trade. Their organization will significantly increase the voice of farmers at both the state and federal level. During a period of uncertainty caused by the imposition of new tariffs and declining farm income, we are especially glad to welcome soybean farmers to this bipartisan cause.”
Farmers for Free Trade is currently working at the grassroots level to organize and educate farmers about the importance of trade, including through work at state commodity conventions, through state proclamations, by reaching farmers through social media, and by identifying local spokespeople, among other efforts.
NFU Emphasizes Severity of Trade Dispute, Urges Long-Term Solutions in Farm Bill
In a letter sent today to congressional leadership, National Farmers Union (NFU) President Roger Johnson emphasized the need to address agricultural economic hardships in the 2018 Farm Bill. The NFU Board of Directors unanimously approved the motion to send this letter during a meeting held Monday afternoon.
“Net farm income is less than half of what it was in 2014 when Congress passed the last farm bill,” wrote NFU President Roger Johnson. “Indicators of stress, including debt to asset ratios, net farm income, debt servicing capacity, and other factors, paint a grim picture of the financial health of farms nationwide.”
An escalating global trade war and uncertainty in export markets has pushed prices even lower in the last month, thus exacerbating farmers’ financial stress. “Soybean, corn, and wheat farmers alone have lost $13 billion in market value,” Johnson offered as examples. “Prices paid to dairy farmers are comparable to prices received in the 1980s, forcing an alarming number of dairy farms out of business.”
To add insult to injury, as Johnson notes, farmers and ranchers are also subject to the unintended consequences of steel and aluminum tariffs. “In addition to price declines, producers are now coping with cost increases, especially on farm equipment and machinery, which often rely on steel and aluminum.”
The severity of the situation has not gone unnoticed by the administration: last week, the U.S. Department of Agriculture announced it would allocate $12 billion in emergency assistance to producers most impacted by trade tensions. Though Johnson expressed appreciation for the gesture, he stressed that it was not enough. “Paying farmers small, one-time, fixed payments is woefully inadequate to keep farmers in business,” he said. “The administration’s actions will have long-term effects on our markets, necessitating a long-term safety net.”
Johnson continued the letter by urging Congress to provide “substantive and long-term relief to farmers.” In particular, he asked that they “provide the agriculture committees with substantially greater resources to be incorporated into the 2018 Farm Bill, including the ability to manage farm inventories to be more responsive to market conditions.”
“Congressional inaction will have very tangible and harmful impacts as farmers and ranchers get closer to fall harvest,” Johnson concluded. “We urge you to take strong action on behalf of American farmers and ranchers.”
Farmers and farm advocates interested in advocating a strong farm bill are encouraged to visit 2018FarmBill.org to learn more about the farm bill and information on how to contact members of Congress.
Early Registration For Export Exchange 2018 Closes Aug. 6
Early registration for Export Exchange 2018 is set to close Aug. 6, and potential attendees from the U.S. coarse grains and co-products value chains should register before that date to receive the lowest registration rate.
The event is scheduled from Oct. 22 to 24 in Minneapolis, sponsored by the U.S. Grains Council (USGC), Growth Energy and the Renewable Fuels Association (RFA).
The biennial event is expected to bring together nearly 500 farmers, agribusiness representatives, international buyers and end-users of coarse grains and co-products, including distiller’s dried grains with solubles (DDGS).
In addition to building relationships with domestic suppliers of corn, DDGS, sorghum, barley and other commodities, the conference will have general sessions that address issues facing U.S. agricultural exports and offer customers and sellers in attendance an increased awareness of the benefits of U.S. coarse grains and ethanol.
Registration is available online via www.exportexchange.org. USGC, Growth Energy and RFA members will be eligible for discounted registration pricing but should identify themselves as such when registering. Reporters wishing to cover Export Exchange are eligible for complimentary registration by sending an email to info@exportexchange.org and asking for the registration code.
More information will be distributed in the coming months to members of the grains industries and will be made available online at www.exportexchange.org or on social media using the hashtag #ExEx18. Those interested can sign up for a mailing list to automatically receive conference updates by emailing info@exportexchange.org.
Please visit www.grains.org for more information about the Council.
For more information about RFA, visit www.ethanolrfa.org.
For more information about Growth Energy, visit www.growthenergy.org.
Land O'Lakes, Inc. reports results for second quarter 2018
Land O’Lakes, Inc. today reported quarterly net sales of $4.2 billion and net earnings of $67.2 million in the second quarter ending June 30, 2018, compared with 2017 second quarter net sales of $3.7 billion and net earnings of $113.0 million. Year-to-date net sales totaled $8.1 billion with net earnings of $182.9 million compared to net sales of $7.3 billion and net earnings of $222.9 million for the same period in the prior year.
"The diversity of our business portfolio and our consistent ‘long view’ approach to growth equips Land O’Lakes to continue making steady progress, even as we face significant headwinds across the agricultural economy,” said Land O’Lakes, Inc. President and CEO Beth Ford. “It’s an important and exciting time to be at Land O’Lakes because our solid financial footing, clear plan for growth, and commitment to innovation by farmers and employees keep us nimble and confident during a time of uncertainty and change in our industry. We’ll continue building on what’s worked, with new value-added branding, expansion in high-potential markets and product categories, and innovative business models that leverage our ‘farm-to-fork’ scope.”
Despite growth in crop protection volumes, year-to-date earnings in Crop Inputs declined due to a shift in product mix resulting from growers trading down, late planting resulting in fewer applications and increased competitiveness. Earnings in Dairy Foods were higher with improved product mix in the branded butter portfolio and foodservice offsetting the impact of lower commodity markets in the ingredients business. Earnings in Animal Nutrition were flat with the prior year. The company’s Crop Nutrient business, which was added as part of the United Suppliers merger in October 2017, contributed an incremental $11 million to year-to-date earnings.
ADM Reports Second Quarter Earnings
Archer Daniels Midland Company (NYSE: ADM) today reported financial results for the quarter ended June 30, 2018. “Our team executed exceptionally well to deliver outstanding results in the second quarter,” said ADM Chairman and CEO Juan Luciano.
“We continue to accelerate the execution of our strategic plan — optimizing our core, driving efficiencies, and expanding strategically — generating more than $150 million in run-rate savings, announcing three acquisitions in Nutrition, and closing on two new joint ventures overseas. Our actions, combined with robust global demand, position us to navigate today’s dynamic business environment and deliver strong results in the second half of 2018, and put us on a trajectory for continued future growth in earnings, returns and shareholder value.
“We are proud of the results we are delivering, committed to our continued improvement and growth, and confident about ADM’s future.”
Bunge Struggles With Trade Losses and Currency
Bunge Ltd. announced lower-than-expected earnings on Wednesday due largely to some hedging losses that Bunge expects will turn around in the second half of the year.
Bunge reported a $12 million loss on Wednesday, compared to $81 million in net income for the second quarter a year ago. Adjusted earnings came in at 10 cents a share. Bunge's quarterly numbers were a surprise to analysts as Reuters had reported analysts had expected Bunge's adjusted earnings to come in closer to $1.04 a share. Bunge's earnings struggled despite overall sales for the quarter growing 4.3% to $12.15 billion from last year.
Bunge's losses were driven heavily by hedging losses and currency exchanges. Bunge was hit with $125 million in losses on contracts for soy crushing, but Bunge is carrying forward approximately $185 million in market-to-market accounts that the company anticipates "will reverse as we execute on these contracts in the second half of the year."
Bunge noted oilseeds remain driven by strong soy crush margins and "within range of expectations when considering market-to-market impact."
In grains, Bunge lost $22 million in trades, mainly because of a $24 million foreign exchange loss on hedges in Brazil that Bunge expects to reverse in the second half of the year as contracts are executed. Outside of the hedge loss, Bunge noted results in Brazil were better than 2017 due to higher volumes and margins, but results in Argentina were negative due to the impact of smaller crops caused by drought.
Bunge's fertilizer business was also hit with a $13 million loss because of foreign exchange losses on imported inventory and the devaluation of the Argentine currency. Bunge expects a gain in the second half of the year when those fertilizer inventories are sold.
Despite the poor quarter and first half of the year, Bunge stated it still expects to hit a goal of $1.3 billion in earnings before interest and taxes (EBIT) for 2018. In its SEC filing, Bunge expects its agribusiness units to generate $800 million to $1 billion in EBIT by the end of the year.
Tyson Blames Trade War as it Cuts Profit Forecast
Tyson Foods Inc., the largest U.S.-based meat producer, said profit this year will be less than it previously forecast because of the country's escalating trade dispute with major importers of agricultural products. According to Bloomberg, both China and Mexico have imposed import tariffs on American pork recently in retaliation against U.S. duties on metal shipments. The measures have sent hog prices plunging, eroding the profitability at Tyson's pork business. The Springdale, Arkansas-based company said Monday it's also grappling with higher commodity-market volatility and "sluggish" domestic demand for chicken.
"The combination of changing global trade policies here and abroad, and the uncertainty of any resolution, have created a challenging market environment of increased volatility, lower prices and oversupply of protein," Chief Executive Officer Tom Hayes said in a statement.
The American farm sector is one of the few areas of the economy that typically operates with a trade surplus, and agriculture groups have sounded off against the trade war's potential toll on exports. Net farm income is poised to reach a 12-year low in 2018, and challenges for meat demand may offset some of the benefits of cheaper feed-grain prices. The Trump administration last week announced a plan to provide $12 billion in assistance to U.S. farmers.
Tyson said its earnings in fiscal 2018 excluding one-time items will be about $5.70 to $6 a share, compared with a previous view of $6.55 to $6.70, Bloomberg reports.
The shares slumped as much as 8.2 percent, the biggest intraday drop since November 2016. They were down 5.5 percent at $60.04 at 10:49 a.m. in New York. Rival poultry producers Pilgrim's Pride Corp. and Sanderson Farms Inc., and Hormel Foods Corp., which processes pork, declined.
The trade challenges come amid a surge in U.S. meat production, making exports increasingly vital to offload surpluses. American output of red meat and poultry is expected to reach an all-time high and swell further in 2019. Wholesale chicken breast prices are the cheapest for this time of year since at least 2010 and pork is at a seasonal nine-year low, government data show.
National Agriculture Leaders Roundtable: Nuisance Lawsuits & their threat to all of Agriculture and Farm Families Nationwide
On Friday, August 3rd, 2018 at 9:00 a.m., U.S. Congressman David Rouzer (R-NC), U.S. Senator Thom Tillis (R-NC), U.S. House Agriculture Committee Chairman Mike Conaway (R-TX), and North Carolina Agriculture Commissioner Steve Troxler will convene a National Agriculture Leaders Roundtable to discuss the threat that nuisance lawsuits pose to the U.S. agriculture industry, rural America, and farm families nationwide. The roundtable will be comprised of federal officials, state officials, economists, and national agriculture industry representatives, including the President of the American Farm Bureau, Zippy Duvall.
“Today’s nuisance lawsuits that are destroying livelihoods and communities in North Carolina are the tip of the iceberg for what is to come absent a well-informed public and good public policy. A ‘nuisance’ is very much in the eye of the beholder and every single farm family that is in compliance with all applicable regulations – no matter what they are growing – should have a safe harbor from legal action being brought against them. This is a very slippery slope that threatens the very existence of every form of agriculture nationwide,” said Congressman David Rouzer.
"I want to thank Congressman Rouzer for hosting this roundtable to hear directly from North Carolina's farmers about how the nuisance lawsuits could affect their livelihoods. The influence from outside lawyers in this case has the potential to decimate our state’s vibrant agriculture industry and the countless rural communities supported by it. Agriculture is the number one industry in North Carolina, and it is important to hear from those affected by this threat. These lawsuits have the potential to affect the agriculture community and farmers nationwide, and I look forward to participating in this event to learn how North Carolinians could be affected and how we can help," said Senator Thom Tillis.
“Agriculture is a blessing that most of us count on at least three times a day. Not a nuisance. People need to understand that every food item starts on a farm, not a grocery store shelf. When we take our farmers and food production for granted, we stand to literally lose the hand that feeds us. I am grateful that others are paying attention to this issue which could affect farmers everywhere,” said Agriculture Commissioner Steve Troxler.
Those individuals and organizations that intend to participate include:
Chairman David Rouzer, U.S. House Subcommittee on Livestock and Foreign Agriculture
Chairman Michael Conaway, U.S. House Committee on Agriculture
Senator Thom Tillis
Commissioner Steve Troxler, North Carolina Department of Agriculture & Consumer Services
President Zippy Duvall, American Farm Bureau Federation
Commissioner Hugh Weathers, South Carolina Department of Agriculture
North Carolina State Senator Brent Jackson
North Carolina State Representative Jimmy Dixon
North Carolina State Representative Ken Goodman
Lieutenant Governor Dan Forest
North Carolina House Majority Leader John Bell
Dr. Kelly Zering, North Carolina State University
U.S. Department of Agriculture Under Secretary Bill Northey, Farm Production and Conservation
Barb Glenn, CEO of National Association of State Departments of Agriculture
Commissioner Gary Black, Georgia Department of Agriculture
Secretary Michael Scuse, Delaware Department of Agriculture
Commissioner Sid Miller, Texas Department of Agriculture
Dr. Howard Hill, Past President of National Pork Producers Council
Kerry Doughty, CEO of Butterball
Brad Cornelius, CEO of Cape Fear Farm Credit
Dave Corum, CEO of AgCarolina
Vance Dalton, Jr., CEO of Carolina Farm Credit
Gary Floyd, Executive Vice President of L. Harvey Inc.
American Soybean Association
National Association of Wheat Growers
National Cotton Council
National Corn Growers Association
United Egg Producers
NC Peanut Growers Association
North Carolina Sweet Potato Commission
National Chicken Council
American Feed Industry Association
National Cattlemen’s Beef Association
National Turkey Federation
Agricultural Retailers Association
National Pork Producers Council
It will take place on Friday, August 3rd, at the North Carolina Fairgrounds, Raleigh, North Carolina.
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