Rain/Snow Forecasts and Drought Monitor Offer Hope
Al Dutcher, UNL Extension State Climatologist
The March 19 U.S. Drought Monitor shows a one-category improvement from Exceptional (D4) to Extreme (D3) conditions for a small portion of eastern and north central Nebraska. The largest improvement was in an area east of Clay Center to Albion and south of a line from Columbus to West Point. This area benefitted from a combined rain/snow storm March 9-10.
The second widespread area of improvement was north of a line from Gordon to Ainsworth where several recent snows have improved top soil moisture. Soil moisture monitoring sites operated by the High Plains Regional Climate Center now indicate that field capacity has been reached at the 12-inch depth in the area designated as D3. It should be noted that the primary soil type in this region is sand and that field capacity would be 1 inch of available moisture.
Drought conditions were also degraded in the central Platte River valley for counties adjacent to the south side of the river between Kearney and Grand Island. After an examination of soil moisture values in this region, it was deemed that the Drought Monitor authors had been too aggressive in their depiction of the impacts of recent storm activity.
Although there was a return to D4 conditions in this region, additional storm activity in the next few weeks will likely return this area to D3 conditions. Since the drought has been firmly established for more than 18 months, soil moisture will be the most significant criteria in determining when D4 conditions are reduced to D3.
I and other Drought Monitor contributors in Nebraska have recommended that areas in the remaining D4 area should be improved to D3 conditions once field capacity has been reached at 1 foot. This would signify that 20% of the top five feet of the profile has reached field capacity. It should be noted that almost all soil moisture monitoring sites in the state are lower than they were at the same time last year. In addition, soil moisture depletion was already initiated at this time last year due to excessively warm temperatures that resulted in rapid green-up of grasses and trees.
Models indicate a high probability of below normal temperatures through the end of the month. It also appears that a significant snow event will materialize in the central Plains this weekend, with northern Kansas and Nebraska likely to be at the center of this activity. Projected water equivalent moisture for this storm across the southern half of the state is 0.50-0.75 inches.
Another system is projected to roll into the region at the end of the month and bring additional moisture to the region. It is too early to tell the exact storm track of this system, but early indications are that some areas could receive over an inch of moisture. A return to more spring like warmth is expected across the central Plains the first week of April.
If both of the projected storm systems materialize over the next 10 days, it is likely that most, if not all of the D4 areas will disappear in Nebraska. Unfortunately, the hydrological drought signal will likely remain with us through this growing season.
‘Tode Awards Recognize Results of SCN Sampling
John Wilson, UNL Extension Educator, Burt County
Loren Giesler, UNL Extension Plant Pathologist, Lincoln
The ’Tode Awards are given annually to Nebraska counties for their work in sampling for soybean cyst nematodes, the most devastating pest in our soybean. Last year SCN losses were estimated at $40 million in Nebraska and over $1 billion nationally.
Losses from SCN can be reduced if a farmer knows it is present, but there’s the catch! Farmers can have yield losses of 20-30% with no visible plant symptoms. Often the first indication of an SCN problem is when soybean yields plateau, or even start to drop off, while corn yields continue to increase in the same field.
Identifying the Problem
The best way to determine if SCN is present in a field is to take a soil test. The Nebraska Soybean Board recognizes the seriousness of this pest and has funded a project with UNL to encourage farmers to sample their fields for SCN. The Soybean Board’s support covers the cost of analyzing soil samples, normally a $20 per sample cost.
Project Results
We just completed the eighth year of this project with some staggering results. Since 2005, almost 4,400 samples have been submitted and SCN has been identified in 27 Nebraska counties for the first time. That's twice the number of counties where it had been previously identified. Since it was first discovered in Nebraska in 1986, SCN has now been identified in 54 counties that produce over 90% of Nebraska’s soybeans.
Without the Nebraska Soybean Board’s support, we would not have been able to reach this many Nebraska farmers. In 2012, 540 samples were submitted and 219 (40.6%) were positive for SCN. From these results, our panel of judges has identified the 4th Annual ’Tode Award winners.
And the winners are …
Most Samples Submitted
Winner: Buffalo County (109)
Honorable Mention: Kearney County (45), Saunders County (40), Platte County (29)
Most Samples Positive for SCN
Winner: Buffalo County (32)
Honorable Mention: Saunders County (31), Kearney County (20), Seward County (16)
Highest Perceptage of Samples Positive for SCN
Winner: Douglas County (100%)
Honorable Mention: Dodge County (82%), Polk County (80%), Madison County (78%)
Sample with Highest Egg Count (number of eggs/100 ccs of soil)
Winner: Pierce County (88,200)
Honorable Mention: Seward County (45,240), Saunders County (37,560), Platte County (31,360)
This is the first time in 15 years that we haven’t detected SCN in a new county, but that's not surprising given that less than 10% of the state’s soybean production comes from counties where it hasn't been identified. Having over 40% of the samples come back positive for SCN was the highest level since we began the sampling program.
Although it often goes undetected, SCN is here and is reducing the profitability of Nebraska's soybean production. To learn more about SCN or to pick up bags for submitting soil samples contact your local UNL Extension office.
USDA Accepts Fortenberry Recommendations for Program Reforms
Reforms proposed by Congressman Jeff Fortenberry to reduce fraud and save taxpayer money recently became part of a United States Department of Agriculture (USDA) audit report. Findings of the Inspector General’s audit of the Supplemental Nutrition Assistance Program (SNAP) were highlighted yesterday during a House Appropriations subcommittee hearing.
“SNAP greatly benefits many American families in need,” Fortenberry said. “It’s an important program, and we should always be mindful that it runs efficiently, ensuring its integrity. I raised concerns in 2011 about potential areas of abuse. I am pleased the Inspector General’s audit has found ways to reform practices that may lead to significant taxpayer savings, and I appreciate the Food and Nutrition Service’s cooperation in seeing that the appropriate reforms are implemented.”
At a hearing in December 2011, Fortenberry, as chairman of the House Agriculture Subcommittee on Department Operations, Oversight, and Credit, sought an audit of certain practices within SNAP. This week’s Appropriations hearing outlined the key findings of that audit. The audit sampled 10 states across the country, finding that 27,000 people receive SNAP benefits even though they may be ineligible for the program, potentially costing taxpayers $3.7 million each month. Looking at all 50 states, even a small amount of fraud within SNAP ends up costing hundreds of millions of taxpayer dollars each year.
The Inspector General’s report can be found at http://www.usda.gov/oig/webdocs/27002-0011-13.pdf.
PUBLIC HEARING Scheduled Regarding a District-Wide Change to the Upper Big Blue NRD’s RULE 5 for Water Quantity
A Public Hearing concerning proposed changes to the District’s Rule 5 is scheduled for April 23, 2013, at 7:00 p.m. at the York Holiday Inn (I-80 & HWY 81 south of York, Nebraska). From 7:00 p.m. to 7:30 p.m. an informational meeting will take place outlining the reasons proposed for the rule changes, and to also allow the public to ask questions. Beginning at 7:30 p.m. public testimony will commence and be recorded. The two proposed changes are regarding groundwater transfers and artesian well migration/abatement.
The Upper Big Blue Natural Resources District Proposes New Rules for Groundwater Transfers and Artesian Wells:As far as existing artesian wells are concerned, discussion will address uncontrolled artesian well flow, artesian well flow in relation to possible future allocations of irrigated acres if the groundwater table reaches the allocation trigger, and proper abandonment of artesian wells. Rule changes are also proposed for proper well construction in areas that have artesian conditions.
In regard to groundwater transfers, possible changes to Rule 5 would include prohibiting transfers into, or out of the government survey sections in designated areas in the District. In other words, the rule change could include enactment of Groundwater Transfer Limitation Areas where groundwater should not be transferred into, or out of specific areas where geological conditions have with limited groundwater. The proposed rule changes and a map are available for viewing online at www.upperbigblue.org and at the Upper Big Blue NRD office, 105 N. Lincoln Avenue, York, Nebraska.
Cover Crops and Crop Insurance Requirements in Nebraska for 2013
Monte Vandeveer, UNL Extension Educator, Otoe County
After the severe losses in forage production from the 2012 drought, Nebraska cover crop growers have a special opportunity to hay or graze these crops without endangering crop insurance coverage for their 2013 corn, soybeans, and grain sorghum.
The Topeka regional office of USDA’s Risk Management Agency, which oversees crop insurance operations for Nebraska, has announced some special provisions for haying or grazing cover crops on Nebraska farmland which will later be planted to spring row crops. The purpose of these two special provisions is to increase forage supplies after last year’s drought, provided that this does not increase the chance of loss on the insured crops planted later this spring. The intent of the rules is to see that the haying or grazing of the cover crop does not deplete soil moisture or shorten the growing season of the regular spring crop in ways that would reduce its yield.
Specifically, the rules state that the cover crop must be terminated
- before it reaches a critical stage of maturity (defined differently below for eastern and western Nebraska), and
- so that use of the cover crop does not result in prevented planting to the regular spring crop.
Cover crops may be grown and their forage used for haying or grazing prior to reaching either of these points. If these conditions are violated, insurance coverage will not attach to the regular crop planted later in the spring.
The “critical stage of maturity” in the first provision is defined differently in eastern and western Nebraska, with western Nebraska having an earlier termination point. In eastern Nebraska, cover crops may be allowed to grow until 50% of the field has headed or budded, while in western Nebraska, the cover crop must be terminated before heading or budding occurs. If the cover crop is not destroyed before it reaches this critical stage, the regular crop planted later will not be insured.
RMA’s definition of a cover crop is “a crop generally recognized by agricultural experts as agronomically sound for the area for erosion control or other purposes related to conservation or soil improvement.” A perennial hay crop just harvested does not count as a cover crop in this case. Also, inter-planting (the practice of planting the main crop into the living cover crop) is not permitted; the cover crop must be terminated before the insured crop is planted for the crop insurance coverage to attach.
As always, producers should check with their crop insurance agent to get details on dates and suitable practices for their locale.
NU Water for Food Conference to Focus on Building Resilient Agroecosystems
Recent years have seen major droughts, floods and extreme temperatures affecting vast areas of the globe, including some of its most productive agricultural regions. Experts from around the world will discuss those challenges during the 2013 Water for Food Conference May 5-8 in Lincoln.
The conference, whose theme is "Too Hot, Too Wet, Too Dry: Building Resilient Agroecosystems," will be at the Cornhusker Marriott Hotel in Lincoln, Nebraska.
Hosted by the Robert B. Daugherty Water for Food Institute at the University of Nebraska and the Bill & Melinda Gates Foundation, the fifth annual conference will feature plenary addresses by Benedito Braga, president, World Water Council; Rosina Bierbaum, University of Michigan; Cynthia Rosenzweig, NASA Goddard Institute for Space Studies; Christo Fabricius, Nelson Mandela Metropolitan University, South Africa; Heidi Cullen, Climate Central; and others to be announced.
NU President James B. Milliken said, "The University of Nebraska is pleased to again host the global Water for Food Conference, an event that brings together leading scientists, farmers and ranchers, policymakers, educators and many others to discuss one of the world's most pressing challenges: how to use the world's finite supply of water to feed a growing global population.
"The university and Nebraska are well-positioned to play a leadership role in this critical area and I believe that's why our conference has generated such strong global interest," Milliken added. "This year's theme – building resilient agroecosystems – is particularly timely given the extreme temperatures and weather-related events that have impacted Nebraska and the world in recent years. We look forward to another productive conference."
Registration is $250, which includes all conference events, materials and meals. Online registration and more information are available at the conference website: http://waterforfood.nebraska.edu/wff2013/.
Highlights also include:
– Surviving the 2012 Drought: 80 Years of Innovation
– "A View from the Field" panel featuring an international group of agricultural producers
– Technical sessions on "Resilience in Working Agricultural Landscapes" and "Livestock and Water: Global perspectives"
– Case studies on Drought Preparedness and Planning
– "Communicating about Climate" roundtable discussion
– "Cool Tools and Technologies for Agricultural and Water Research"
– "Research in Action"
– Graduate Student Poster competition focused on conference themes
The annual Water for Food Conference brings together experts from around the globe to discuss one of the greatest challenges facing our world today: how can we double our agricultural production by 2050 to feed an expected population of 9 billion people and do it using less water than we use today?
Since 2009 more than 1,300 people from 28 countries including farmers, scientists, policy-makers, students, educators, politicians, conservationists, industry leaders and philanthropists have gathered to discuss how innovations in science, technology and policy will enable agriculture to sustainably feed an increasingly hungry and thirsty world.
The Water for Food Conference is the preeminent event of the university's Robert B. Daugherty Water for Food Institute, a research, policy and education institute established in 2010 and committed to efficiently using the world's limited freshwater resources to ensure a reliable food supply.
ISU Extension and Outreach Week is March 24-30
Iowa State University Extension and Outreach is celebrating Extension and Outreach Week throughout the state March 24-30, 2013.
“It’s one way we can say ‘thank you’ to the many volunteers, community leaders, organizations, agencies and other partners who support ISU Extension and Outreach work in Iowa,” said Cathann Kress, vice president for ISU Extension and Outreach.
County extension offices will be holding open houses and other activities throughout the week. Iowans may contact their ISU Extension and Outreach county office for details about local events.
“Abraham Lincoln signed the law that gave birth to the land-grant universities. Iowa State was one of the first of these special colleges founded on three big ideas: to open higher education to all, to teach practical classes and to share knowledge far beyond the campus borders,” Kress said. “Our educational programs harness Iowa State University resources to meet the needs of Iowans.”
ISU Extension and Outreach is part of an educational network supported by Iowa State University, local county governments and the United States Department of Agriculture. Every county in Iowa has an elected extension council that decides how local tax dollars are spent to support ISU Extension and Outreach educational programs at the county level. Each year nearly a million people from every county directly benefit from Extension and Outreach programs – and more than a million people are reached online.
Extension and Outreach grows businesses and strengthen communities
Companies who worked with our Center for Industrial Research and Services (CIRAS) last year reported $414 million in total impact which included making $46 million in new investments and creating or retaining more than 5,600 jobs.
We also provide skills training for more than 40,000 community leaders, local government officials, business owners, entrepreneurs, and volunteers each year.
Extension and Outreach supports a safe, sustainable and affordable food supply
More than 6,000 Iowans received information to help them with drought-related issues in 2012.
Our drought response continues as we look ahead to 2013 and anticipate Iowan’s needs for their farms, families, businesses, and communities.
Extension and Outreach helps Iowa become the healthiest state in the nation
Nearly 2,000 child care providers improved nutrition skills leading to healthier eating and activities for the children in their care.
Extension and Outreach prepares our young people for the future
Extension and Outreach programs engage Iowa youth in science, technology, engineering, and math activities and 4-H projects ranging from environmental stewardship to polymer experiments and DNA extraction. We build STEM skills in our young people to prepare Iowa’s future workforce. More than 105,000 – that’s 1-in-5 – school-age youth participated in 4-H programs last year.
Top Ten of Iowa’s Best Burger contest scattered across the state
Burger lovers provided lots of answers to the question “Who has Iowa’s Best Burger?” After counting the votes, the top ten restaurants for 2013 are ready to move on to the next level: the selection of Iowa’s Best Burger, which will be announced the first week of May.
In its fourth year, Iowa’s Best Burger contest received over 6,320 nominations that named 349 Iowa restaurants. The Iowa Beef Industry Council and the Iowa Cattlemen’s Association counted the nominations that came in via online, texting and paper ballots. The results are (in alphabetical order):
61 Chop House Grille, Mediapolis
- Ankeny Diner, Ankeny
- B&B Grocery, Meat & Deli, Des Moines
- Elm’s Club, Creston
- First Street Grille, Keosauqua
- JB’s Bar & Grill, Marcus
- Rosco’s, Norwalk
- Sam’s Sodas and Sandwiches, Carroll
- The Ritz, Arnold’s Park
- Zombie Burger, Des Moines
“The Top Ten nominations are scattered throughout the state,” says Scott Niess, an Osage farmer who is chairman of the Iowa Beef Industry Council. “The nominations covered restaurants over 170 Iowa communities. That response shows that Iowans and Iowa restaurants know that burgers will always be a popular item. Restaurants love to make burgers and their customers love to eat them.”
“Although we won’t announce Iowa’s Best Burger until the first week of May, we encourage everyone to stop at one of the Top Ten restaurants for a burger,” Niess says. “Iowans have a very special place in their heart for burgers. The burger is the all–American classic served in almost every restaurant from the local café to the finest white tablecloth establishment.”
Nominations for the contest were made from Feb. 15 through March 18, 2013. The Top Ten restaurants were the top vote-getters. All Top Ten restaurants will receive a certificate, and will be visited by a secret panel of judges who will evaluate the hamburgers based on taste, appearance, and proper serving temperature.
“We’re really happy to promote Iowa restaurants who do a great job of serving beef,” said ICA President Ed Greiman of Garner. “We have a lot in common. Cattle producers and local restaurants are both small business owners who have a great passion for food – either producing it or preparing it. And, both local restaurants and farmers are important to the economic well-being of hundreds of communities around the state.”
To continue to learn more about the contest, you can visit www.iabeef.org or “friend” the Iowa Beef Council Facebook© page. You’ll also find a map showing the locations of the Top Ten restaurants.
Last year, 4,250 nominations for the Best Burger title were received. The winner was the Coon Bowl III in Coon Rapids. Other previous winners include Sac County Cattle Company of Sac City, 2010; and Rusty Duck in Dexter, 2011.
Beef Checkoff Represented at the 1st New England Meat Conference
The beef checkoff, through the Northeast Beef Promotion Initiative was positively represented to over 250 New England packers, restaurant operators, retailers, producers, and meat cutters at the first ever New England Meat Conference held in Concord, New Hampshire on March 22-23, 2013.
Honored as a Porterhouse sponsor, the beef checkoff had a presence at the two-day trade show during the conference where beef educational materials, cut charts, and merchandising materials were distributed. Attendees also had the opportunity to enter the “Best of Beef” raffle basket which included a signed copy of the Art of Beef Cutting by Kari Underly, Founder of Range, Inc. and a 5-piece Beef it’s What’s for Dinner kitchen steak knife set among other promotional materials.
The conference kicked off with a beef checkoff sponsored 60-minute educational demonstration presented by the James Beard Nominated author, Kari Underly who broke down a square chuck primal for the attendees. Underly demonstrated the beef value cuts from both the beef shoulder clod and chuck roll in an effort to highlight the value potential and variety of cuts available from the beef chuck contrasted to the more traditional cuts fabricated from this primal.
“By having a presence at the first New England Meat Conference, the beef checkoff was able to be reach a large crowd of influencers in the New England meat industry and for some of the attendees, this was their first interaction with the beef checkoff program,” notes Christie Brown, Director of Retail and Foodservice for the Northeast Beef Promotion Initiative. “The conference provided attendees with a very unique occasion for producers, packers, chefs, and retailers to all come together and openly discuss the opportunities and challenges throughout the production chain.”
Farm Banks Increase Ag Lending During 2012
U.S. agricultural banks increased farm and ranch lending by 13.9 percent, or $10 billion, in 2012 and held $81.8 billion at the end of the year, according to the American Bankers Association’s annual Farm Bank Performance Report.
The nation's 2,215 farm banks also added more than 3,615 jobs, a 4.2 percent increase, and employed 90,569 rural Americans.
"The continued growth in farm loans demonstrates the important role banks play in the success of farms and ranches both large and small," said John Blanchfield, senior vice president and director of ABA's Center for Agricultural and Rural Banking. "Banks remain the most important source of ag credit holding more than half of all farm loans."
More than 95 percent of farm banks were profitable in 2012, with 67 percent reporting an increase in earnings.
"The ag economy is strong and getting stronger with a favorable outlook. Our nation's farm banks remain optimistic despite the challenge to find additional revenue sources," said Blanchfield.
Farm banks experienced an improvement in asset quality in 2012, as customers benefited from the strong farm economy. Non-performing loans declined to 1.49 percent of total loans, close to pre-recession levels.
AMPI reports $1.7 billion in sales
Associated Milk Producers Inc. (AMPI) delivered sales of $1.7 billion and earnings of $9.3 million in 2012, announced leaders of the milk marketing cooperative owned by 2,900 Upper Midwest dairy farmers. Some 350 voting delegates and guests are reviewing the company’s progress during their annual business meeting that concludes tomorrow at the DoubleTree Hotel in Bloomington, Minn.
AMPI’s core products were the cooperative’s top performers in 2012. Cheese production, which represents 57 percent of total sales, grew by more than 11 million pounds as compared to one year earlier. Butter production continued to grow steadily, increasing 5 million pounds. Consumer-packaged cheese and butter represented nearly half of the cooperative’s sales.
“Our cheese-packaging plant in Portage, Wis., and the New Ulm, Minn., butter plant were major contributors to the cooperative’s bottom line. In the last five years, our consumer-packaged cheese and butter sales have grown exponentially,” said AMPI President and CEO Ed Welch, who indicated orders from food service customers fueled much of the growth.
Following the performance review, AMPI Chairman of the Board Steve Schlangen discussed the cooperative’s strategies for long-term performance. “As a dairy farmer-owned cooperative, AMPI is uniquely positioned to market our locally produced dairy products to food service, retail and food ingredient customers across the nation,” Schlangen said.
Strengthening the cooperative’s manufacturing portfolio, with a renewed focus on cheese, butter and powdered dairy products, led to the sale of two businesses in 2012. “Selling the Cass-Clay plant and brand in Fargo, N.D., and our cheese sauce and pudding business in Dawson, Minn., was a bold step,” Schlangen said. “However, these two businesses accounted for only 5 percent of AMPI’s total annual revenue.”
The annual meeting culminates with delegates considering resolutions and reviewing the cooperative’s legislative priorities.
AGCO Corp. Offering AgCam As A Factory Option On Combines
Dakota Micro, Inc. is proud to announce a new factory install partnership with AGCO Corp. AGCO Customers will now have the ability to purchase Gleaner, Massey Ferguson and Challenger Combines with the AgCam camera as a factory installed option.
"It's a match made in the sieve, and on the auger... and in the grain tank," jokes Charissa Rubey, Director of Sales and Marketing for Dakota Micro, Inc. "AGCO has a rich and diverse product line that includes unforgettable brands such as Gleaner, Massey Ferguson & Challenger, and Dakota Micro is proud to be included as a factory option on these heritage brands that were born in the heartland, just like us."
"The new factory installed AgCam camera option provides total visibility for our customers in any key areas they feel is important to monitor, right from the cab seat. Whether you are an owner operator or a custom harvester, you will find the AgCam will provide our customers with a high quality picture of what is going on anywhere they desire," says Kevin Bien, Brand Marketing Manager for Gleaner combines.
AgCam cameras have been engineered to withstand the harshest environments with ease and reliability. Featuring a completely waterproof housing, these cameras can be used in a variety of situations, producing excellent results, day or night. AgCam features a 3 year warranty, auto darkening lens, crimp resistant cables and infrared night vision.
DEADLINE EXTENDED: Hispanic and Women Farmers and Ranchers Claims Must be Filed by MAY 1, 2013
Agriculture Secretary Tom Vilsack today announced the extension of the voluntary claims process for Hispanic and women farmers and ranchers who allege discrimination by the USDA in past decades. All claims must now be filed by MAY 1, 2013.
"Hispanic and women farmers who believe they have faced discriminatory practices in the past from the USDA have additional time to file a claim in order to have a chance to receive a cash payment or loan forgiveness," said Secretary Vilsack. "USDA urges potential claimants to contact the Claims Administrator for information and to file their claim packages on or before May 1, 2013."
The process offers a voluntary alternative to litigation for each Hispanic or female farmer and rancher who can prove that USDA denied his or her application for loan or loan servicing assistance for discriminatory reasons for certain time periods between 1981 and 2000.
As announced in February 2011, the voluntary claims process will make available at least $1.33 billion for cash awards and tax relief payments, plus up to $160 million in farm debt relief, to eligible Hispanic and women farmers and ranchers. There are no filing fees to participate in the program.
Call center representatives can be reached at 1-888-508-4429. Claimants may register for a claims package (by calling the number or visiting the website) or may download the forms from the website. All those interested in learning more or receiving information about the claims process and claims packages are encouraged to visit the website at any time or to contact the call center telephone number Monday through Friday 9 a.m. to 8 p.m. Eastern Time.
Claim packages and other documentation may be mailed to Hispanic and Women Farmers and Ranchers Claims Administrator, PO Box 4540, Portland, OR 97208-4540. Claim packages and other documentation may also be emailed to claims@hwfr.org. Claimants may also fax claims packages and other documentation to (855) 626-8343. Completed forms and documentation must be received no later than 11:59 p.m. PDT on May 1, 2013.
Once a claim is submitted to the Claims Administrator, the Claims Administrator will determine if it is timely and complete. If it is, the claim will move to the Claims Adjudicator for a determination on the merits of the claim. USDA may submit evidence to the Claims Adjudicator regarding the claim. If a claim is deemed incomplete, a claimant will be notified by the Claims Administrator and given the opportunity to provide additional information within a certain timeframe. Claimants may check the status of their claims on the claims website.
Website: www.farmerclaims.gov
Phone: 1-888-508-4429
Fax: (855) 626-8343
Email: claims@hwfr.org
Claims Period: September 24, 2012 – May 1, 2013.
Independent companies will administer the claims process and adjudicate the claims. Although there are no filing fees to participate and a lawyer is not required to participate in the claims process, persons seeking legal advice may contact a lawyer or other legal services provider.
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
Monday, March 25, 2013
Friday, March 22, 2013
March 22 Cattle on Feed + Ag News
United States Cattle on Feed Down 7 Percent
Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.9 million head on March 1, 2013. The inventory was 7 percent below March 1, 2012.
Placements in feedlots during February totaled 1.48 million, 14 percent below 2012. Net placements were 1.42 million head. During February, placements of cattle and calves weighing less than 600 pounds were 355,000, 600-699 pounds were 270,000, 700-799 pounds were 407,000, and 800 pounds and greater were 450,000. Placements are the lowest for February since the series began in 1996.
Marketings of fed cattle during February totaled 1.64 million, 7 percent below 2012. Other disappearance totaled 60,000 during February, 35 percent below 2012.
State By State Information (1000 head, % compared to the same month one year ago)
State - On Feed - Placements - Marketings
NE - 2,430 (95%) - 350 (85%) - 380 (97%)
IA - 640 (96%) - 71 (84%) - 68 (110%)
KS - 2,050 (93%) - 295 (80%) - 345 (90%)
CO - 990 (91%) - 160 (97%) - 170 (85%)
TX - 2,550 (90%) - 340 (89%) - 395 (95%)
USDA Cold Storage Highlights
Total red meat supplies in freezers were up 3 percent from both the previous month and last year. Total pounds of beef in freezers were up 1 percent from the previous month and up 4 percent from last year. Frozen pork supplies were up 5 percent from the previous month and up 2 percent from last year. Stocks of pork bellies were up 17 percent from last month but down 31 percent from last year.
Total frozen poultry supplies on February 28, 2013 were up 2 percent from the previous month and up 9 percent from a year ago. Total stocks of chicken were down 3 percent from the previous month but up 6 percent from last year. Total pounds of turkey in freezers were up 11 percent from last month and up 14 percent from February 29, 2012.
Total natural cheese stocks in refrigerated warehouses on February 28, 2013 were up 4 percent from both the previous month and from February 29, 2012. Butter stocks were up 16 percent from last month and up 17 percent from a year ago. Total frozen fruit stocks were down 8 percent from last month but up 4 percent from a year ago. Total frozen vegetable stocks were down 7 percent from last month but up 6 percent from a year ago.
Nebraska Corn Board Presents Awards of Recognition and Achievement
The Nebraska Corn Board presented its annual awards to six Nebraskans during its Cooperator and Awards Dinner in Lincoln recently.
The agricultural awards pay tribute to outstanding representatives of Nebraska's grain elevator, livestock, and ethanol industries. Additional recognition goes to a member of the Nebraska media and to recognize overall achievement in agriculture.
The Ag Achievement Award annually honors those who have supported and expanded Nebraska agriculture over the long term. This year's award was presented to two recipients: State Senator Tom Carlson of Holdrege and Rick Leonard, research analyst for the Agriculture Committee of the Nebraska Legislature.
Senator Carlson was instrumental in helping pass the legislation that allowed the corn checkoff rate in Nebraska to increase to a level that is better aligned with the current state of the corn industry and with the challenges and opportunities that exist for Nebraska corn farmers. Carlson has also been a leader in exploring ways to help commodity checkoff programs and other agriculture organizations in the state work more efficiently and cooperatively.
Leonard conducted the critical background work required to introduce legislation in support of the corn checkoff revision. He was also involved in the interim study that looked at changes in the structure of the Nebraska Corn Board and continues to be engaged in the legislative process in this regard.
The Elevator Industry Appreciation Award was presented to George Hohwieler, CEO of Aurora Cooperative, headquartered in Aurora, Nebraska. Hohwieler was recognized for his company's commitment to agriculture and to the development of young people in agriculture. He was also supportive of partnering with Nebraska corn farmers for the Red Cross grain donation program. With this, he supported sending two of his board members with the Corn Board to Japan for relief efforts and a Nebraska corn-fed beef trade mission after the earthquake and tsunami in 2011.
The Livestock Industry Appreciation Award was given to Willow Holoubek, organizational director for the Alliance for the Future of Agriculture in Nebraska (A-FAN). Holoubek has been a champion for animal agriculture in Nebraska, helping consumers appreciate the value of the livestock industry in the state—and supporting efforts to expand livestock production in Nebraska.
The Ethanol Industry Appreciation Award was presented to Seth Harder, plant manager at Husker Ag, LLC of Plainview, Nebraska. He was recognized for his leadership in working with retailers to install flex fuel pumps in northeast Nebraska and for his involvement and engagement in ethanol advocacy groups on both a statewide and national basis.
The Media Appreciation Award was presented to Robert Pore of the Grand Island (Neb.) Independent. Pore was recognized for his commitment and depth of understanding of agriculture and biofuels issues—and his ability to effectively communicate these stories with the general public.
NDA ACCEPTING SPECIALTY CROP GRANT PROPOSALS
The Nebraska Department of Agriculture (NDA) is currently accepting specialty crop grant proposals. Specialty crops are defined as fruits and vegetables, tree nuts, dried fruits, horticulture, and nursery crops (including floriculture).
“The specialty crop industry in Nebraska continues to grow,” said NDA Director Greg Ibach. “I encourage individuals involved in this sector to consider submitting a grant proposal this year.”
NDA will utilize funds from the United States Department of Agriculture (USDA) Specialty Crop Block Grant Program to administer the state program, subject to the availability of funds.
A two-phase competitive process will be used to determine eligible grant recipients in Nebraska. Phase one requires interested organizations and groups of individuals to submit by April 19 a concept proposal explaining the main points of their project idea. All submitted concept proposals will be competitively ranked and the top proposals will be asked to move on to phase two of the process. Phase two will involve a more detailed grant proposal to be submitted as part of the state plan to be reviewed by USDA.
According to USDA guidelines, eligible projects must solely enhance the competitiveness of specialty crops, and may focus on: research, education, consumption, trade enhancement, food safety, food security, plant pest and disease control, organic and sustainable production practices, among other opportunities. Proposals must show how the project will benefit the specialty crop industry or a segment of the industry as a whole; proposals that will profitably benefit one organization or individual will not be accepted.
Grant proposal guidelines and application information are available through NDA by calling (800) 422-6692, or e-mailing casey.foster@nebraska.gov. More information on the process can also be accessed on the NDA web site at www.nda.nebraska.gov. Additional information is also available at the USDA web site at http://www.ams.usda.gov/scbgp.
Pork Producers Reaffirm Industry Support for Producer Choice on Sow Housing
At the National Pork Industry Forum last week, pork producers approved a resolution reaffirming the industry's position that producers should be able to select a sow housing system, including gestation stalls or individual maternity pens, which best promotes employee safety and animal care while ensuring a reliable supply of pork for consumers.
"Pork producers, working with veterinarians, understand what it takes to provide the best care and welfare for their animals," said Karen Richter, a farmer from Montgomery, Minn., and National Pork Board vice president. "The National Pork Board builds its animal and well-being programs on the foundation of what are best for the pig. By adopting this resolution, producers are reaffirming their commitment to choose what type of housing is best for their animals."
The National Pork Board provides educational programs and materials that focus on how producers can best ensure the well-being of their pigs. The programs offer methods that help producers take an objective look at each animal's well-being, independent of the size of farm or the specific type of housing.
A survey conducted in 2012 by University of Missouri Extension economist Ron Plain found that currently 17.3 percent of sows spend a portion of gestation in open pens. Plain surveyed pork farms with 1,000 or more sows and received responses from 70 farms, which combined own about 3.6 million of the nation's 5.7 million sows.
Plain's survey also found that 20.2 percent of sows on operations with 1,000 to 9,999 sows, 18.9 percent on farms with 10,000 to 99,000 sows and 16.4 percent on farms with more than 100,000 sows are in open pens for some portion of gestation. When asked about plans to put more sows in open pens, the largest farms indicated that 23.8 percent of their sows would be in them in two years; farms with 10,000 to 99,999 sows would have 21.3 percent of their pigs in such pens; and farms with 1,000 to 9,999 sows would have 20.7 percent. By comparison, a recent National Pork Board producer survey found that farms producing fewer than 5,000 hogs per year (approximately 200 sows or less) were more likely to use some form of open housing.
"Regardless of the system, what really matters is the individual care given to each pig," Richter said. "And we will continue to rely on science-based standards and our own long history of leadership in animal welfare to ensure that all animals are treated humanely."
National Pork Board Approves $3 Million for Summer Marketing Push
New market challenges and new opportunities inspired the National Pork Board to approve adding $3 million in additional Pork Checkoff funds to bolster the 2013 domestic marketing budget during the crucial summer sales months. The action came at a meeting held in conjunction with last week’s National Pork Industry Forum.
Recent pronouncements from key international trading partners undermining U.S. pork’s international market access threaten to slow pork exports from the record pace set in 2012. “With farmers still reeling from high feed prices associated with the 2012 drought, we felt it was critically important that we do everything we can to keep pork moving through the marketplace,” said National Pork Board President Conley Nelson, Algona, Iowa. “With 75 percent of our customers living in the United States, we believe there is a great opportunity to increase domestic demand for quality U.S. pork.”
“We already can see some momentum building toward the summer grilling season,” Nelson said. “Pork right now is one of the best values in the meatcase. We also are getting some help from the new, 145-degree cooking temperature approved last year by the U.S. Food Safety and Inspection Service. We’re adding new pork lovers once they discover how good it is when cooked to the right temperature.”
Nelson added, “Finally, we’ve launched a new effort to give consumers new ideas for affordable family meals. By putting some new labels on familiar pork cuts, we think it will be easier for consumers to take advantage of pork’s great taste and value. Adding $3 million of marketing muscle to our summer sales promotions makes good sense.”
Ceci Snyder, the Checkoff’s vice president of domestic marketing, told board members that the additional funds will make it possible to emphasize the value of pork in the meatcase at a time when many consumers are feeling a financial pinch.
“As we’ve listened to consumers, we know they are seeking affordable and convenient dinner ideas – and pork today offers a great combination of flavor, versatility and value,” said Snyder. “The other thing we’ve learned from consumers is that people who like meat cooked to a medium temperature may still overcook pork. Our pork lovers have discovered that if you cook your pork like a steak, you end up with a tender and juicy product that offers great taste and flavor.”
Nelson noted that the board took similar action in 2011 to grow demand at a critical juncture. “As pork producers, we know firsthand how high feed prices are leading to losses throughout our industry. We are excited about the opportunity to invest Checkoff dollars in a Summer campaign that we believe can grow consumer demand and create a return on investment for our producers.”
The budget addition must be approved by the U.S. Department of Agriculture, which oversees the National Pork Board budget.
Informa Trims Corn Estimate, Ups Soybean Acreage
Private analytical firm Informa Economics revised its forecast for corn acreage to 97.75 million acres, a 1.6 million acre drop from its January estimate but a nearly 600,000-acre increase from last year. Informa's latest report predicts farmers will plant fewer total crop acres than implied by previous analyses, largely in the form of fewer corn acres. The report says this is consistent with what economic returns would suggest as corn's net revenue premium over soybeans (and other major row crops) has declined since their mid-January acreage survey.
The soybean acreage estimate increased to 78.5 million acres, a 320,000-acre jump from January. That's 1.3 million acres higher than last year's planting. Informa shifted some production from the Western Corn Belt to the east and trimmed acres from the mid-South.
All-wheat planted acres are estimated at 56.1 million. Informa estimates 12.4 million acres will be planted to spring wheat. Informa projects a winter wheat crop of 1.61 billion bushel crop, down 38 million bushels from last year, on a slightly lower-than-trend yield and a 470,000-acre increase in abandoned acres. Hard red winter wheat production is projected at 901 million bushels, down 103 million bushels from last year.
USDA will release its Prospective Plantings report on Thursday, March 28, at 11 a.m. CDT.
US-EU FTA Provides Pathway to Address Ongoing Biotech Concerns
Floyd Gaibler, U.S. Grains Council Director of Trade Policy and Biotechnology
The office of the U.S. Trade Representative (USTR) has officially notified Congress of its intent to enter into negotiations with the European Union (EU) on the Transatlantic Trade and Investment Partnership. This is an opportunity to elevate ongoing discussions on a number of significant longstanding issues, among the most important of which is timely approval of genetically modified (GM) events in crops destined for export.
In its letter to Congress, USTR indicated that its objectives include elimination or reduction of non-tariff barriers that decrease market opportunities for U.S. exports, provide a competitive advantage to products of the EU, or otherwise distort trade, such as sanitary and phytosanitary (SPS) restrictions that are not based on science. The U.S. Grains Council will take an active role in working with both governments and our customers to seek a systematic approach to resolving these challenges.
The USTR's goals also include building on key principles and disciplines of the World Trade Organization Agreement on the application of SPS measures. This includes the commitment to base SPS measures on science and international standards or scientific risk assessments; to apply them only to extent necessary to protect human, animal, or plant life or health; to develop such measures in a transparent manner, without undue delay; and to establish an on-going mechanism for improved dialogue and cooperation addressing bilateral SPS issues.
These are top priorities for the Council and the U.S. feed grain sector in addressing ongoing concerns with loss of market share in key EU country markets. Traditionally, until 1997/98, U.S. exports represented the lion's share of EU imports of corn and corn co-products. Since then, U.S. corn exports have fallen dramatically to historically low levels and have varied widely year to year. The decline coincided with the introduction of genetically modified organisms in the U.S. market, and the variability in exports can be tied to the timing of EU approvals of GM corn traits.
The EU's authorization system on GM product approval requests routinely fails to meet its own prescribed timelines. This creates a backlog and a growing gap between approval timelines of the U.S. and the EU. With a steady stream of new, mostly stacked events being submitted for approval, the backlog is likely to increase and create likelihood of not yet EU-authorized GMs in imports. Thus, the ability to respond to market conditions and opportunities to export U.S. feed grains to the EU is severely constrained and unpredictable. Increased trade disruptions will limit markets for U.S. feed grain exports, and ultimately they will result in increased costs for our customers.
Port Congestion Delays China Soy Import
China's April soybean imports will likely be less than 4.5 million metric tons, lower than market expectations of about 5 million tons, due to severe port congestion in Brazil that has delayed shipments, an executive said Friday.
Guo Feng, vice general manager of the trading unit of Chinatex Grain & Oils Co., told an industry conference that the delays may prompt some importers to seek old-crop U.S. soybeans to meet crushing demand, despite higher prices.
Portside inventories will continue to decline, supporting cash prices, Guo said, as China needs about 4.8 million tons for crushing each month.
March imports are expected to be less than 4 million tons, he said.
The state-backed China National Grain & Oils Information Center estimated March soybean imports at 3.77 million tons.
Congress Approves Funds For Meat Inspectors
Furloughs Of FSIS Personnel Prevented; Disruptions At Packing Plants Avoided
The National Pork Producers Council today expressed strong support – and relief – for funding approved by Congress to prevent furloughs of federal meat inspectors, a move that would have had negative effects on pork producers, meat packers and consumers.
The House of Representatives today passed a continuing resolution, which funds all federal programs through Sept. 30, that includes $55 million for the U.S. Department of Agriculture’s Food Safety Inspection Service (FSIS). The Senate approved the funding bill yesterday, with an amendment sponsored by Sens. Roy Blunt, R-Mo., and Mark Pryor, D-Ark., that added the money for FSIS inspectors, who are required in packing plants that process meat, poultry and eggs.
“This is very good news for pork producers and other livestock and poultry producers,” said NPPC President Randy Spronk, a hog farmer from Edgerton, Minn. “Federal meat inspection is a function that should be maintained to protect the public health by ensuring the safety of the U.S. meat supply. We’re pleased meat inspections will continue, and we are very grateful to Sens. Blunt and Pryor for their efforts to protect food-animal producers and meat packers from costly losses and consumers from higher prices.”
Agriculture Secretary Tom Vilsack last month said federal budget sequestration – automatic across-the-board cuts – could force furloughs of up to 15 days for FSIS inspectors. More recently, USDA was considering furloughs of one day a week for 11 weeks between July and Sept. 30 – the end of the 2013 fiscal year.
Without inspectors, packing plants cannot process meat. USDA estimated the furloughs would have resulted in lost production of more than 2 billion pounds of meat, 2.8 billion to 3.3 billion pounds of poultry and more than 200 million pounds of egg products at a cost of as much as $11 billion.
NPPC had asked the secretary to recognize meat inspectors as “essential” workers – as they had been in similar situations, such as a government shutdown – and forego furloughing them.
The money for FSIS is offset by not increasing funds for USDA’s building and facilities account and its School Breakfast Grant Program as much as was requested in the original continuing resolution. (Both, however, receive more funding in fiscal 2013 than they did in fiscal 2012.)
Record Year for Meat and Poultry Exports Bolsters Demand for U.S. Soy
These little piggies went to market – international markets, that is, and in record numbers. Despite challenging issues, such as the struggling global economy and trade barriers, U.S. poultry and livestock farmers enjoyed a record year for meat exports, which helps keep domestic demand for U.S. soy strong.
U.S. poultry, egg and pork shipments exceeded previous highs for value and volume set in 2011. International beef sales dipped slightly in volume but broke the previous value record.
Growing U.S. meat and poultry exports reinforce demand for U.S. soy since soy meal constitutes a significant portion of animal feeds. Domestic animal agriculture uses about 98 percent of the domestic supply of U.S. soy meal, making it the U.S. soy industry’s No. 1 customer.
“Exporting meat and poultry is a big issue for U.S. soybean farmers,” says John Butler, a farmer-leader from Dyersburg, Tenn. “If we can feed animals soybeans here and sell them abroad, we’re creating a value-added product. Adding that value here has a tremendous positive impact on not only the U.S. soy industry but the national economy as well.”
Poultry and hogs remain the biggest users of U.S. soy meal. According to the most recent statistics, poultry consume roughly 12.9 million metric tons annually. That’s the meal from 601 million bushels of soybeans. And hogs account for 6.8 million metric tons of U.S. soy meal, or the meal from 318 million bushels of soybeans.
To support U.S. soy meal’s largest customer, the soy checkoff partners with organizations like the U.S. Meat Export Federation (USMEF) and USA Poultry and Egg Export Council to market U.S. meat and poultry abroad. A recent checkoff and USMEF effort helped increase consumption of pork back ribs in Japan from zero to 4.5 million pounds over the last three years.
The U.S. meat and poultry export figures for 2012 include:
- Pork exports nearly reached 2.3 million metric tons, valued at over $6.3 billion.
- Broiler meat exports, excluding chicken paws, reached 3.3 million metric tons, valued at nearly $4.2 billion.
- Beef exports reached 1.1 million metric tons, valued at $5.5 billion.
- Turkey exports reached 361,597 metric tons, valued at $678 million.
- Chicken paw exports reached 363,974 metric tons, valued at $450.1 million.
- Egg exports, table eggs and processed egg products in shell equivalents reached 274.1 million dozen, valued at $263.7 million.
Dairy Situation and Outlook
Bob Cropp, Professor Emeritus, University of Wisconsin Cooperative Extension
Despite widespread drought last year and high feed prices milk production continues to run above year ago levels, but up just slightly. USDA’s release of February’s milk production when adjusted for leap year showed production compared to a year earlier up just 0.1% for the 23 reporting states and estimated to be even for the U.S. This is down from increases in January of 0.5% for the 23 states and 0.6% for the U.S.
Milk per cow fell below year ago levels for two months last year, August and September and has been above year ago levels ever since. February milk per cow was up just slightly for both the 23 states (0.2%) and the U.S. (0.3%). Milk cow numbers peaked in April last year and then declined May through October. Since then milk cow numbers have been increasing despite heavier cow slaughter. February cow numbers were 2,000 head higher than January for both the 23 states and the U.S. The net result was milk production below a year ago during August through October of last year and above year ago since then.
Adjusted for leap year February milk production was below a year ago for Western states. February milk production was below a year ago by 3.5% for Arizona, 4.7% for California, 0.8% for Idaho, 0.5% for New Mexico, and 2.0% for Texas. Each of these states had fewer milk cows than a year ago. In the Northeast February milk production was above a year ago by 1.5% for New York, 1.6% for Pennsylvania, 2.6% for Ohio and 4.2% for Michigan. And for the Midwest production was above a year ago by 1.3% for Iowa, 2.6% for Minnesota and 3.9% for Wisconsin.
With milk production running above a year ago dairy product production is also higher. January production compared to a year ago shows butter up 2.6%, cheddar cheese up 2.9% and total cheese up 2.4%. Exports have been lighter and domestic buyers have not been aggressive resulting in increased stocks. January 31st stocks compared to a year ago shows butter up 21.3% (increased 35% since the end of December), American cheese up just 0.2% and total cheese up 1.2%. Stocks of nonfat dry milk were up 57.2% and dry whey stocks up 17.5%.
Dairy exports were a record in 2012 accounting for 13.2% of U.S. total milk solids. But, exports trended lower the last quarter with December exports the lowest in two years. December exports were equivalent to just 11.6% of total milk solids. Exports suffered due to increased milk production in New Zealand which allowed for greater exports and at prices lower than U.S. prices. But, weather has turned unfavorable in New Zealand with dry weather causing deteriorating pastures lowering milk production and bringing their seasonal production to a quicker end. Dry weather in parts of Australia and wet in other parts has reduced Australia’s milk production as well. Argentina’s milk production is now running below a year ago and production is flat in the EU. The result has been increase prices on the Global Dairy Trade for the past seven trading sessions bringing prices closer to U.S. prices. So once international buyers work off inventories U.S. dairy exports ought to increase giving strength to milk prices. In fact exports already started to improve in January. Compared to a year ago exports were up 13% for cheese, 54% for whey protein concentrate, 11% for lactose and 40% for butter. Exports of nonfat dry milk were down 18% and dry whey exports down 14%. Yet exports as a percentage of total milk solids improved to 12.3%.
Dairy product prices weakened early March from where they were the end of February. Butter was an exception with the end of February at $1.55 per pound and increasing to $1.70 by March 19th. Cheddar blocks were $1.595 per pound the end of February, fell to $1.55 on March 4th, but started to increase on March 7th and are now $1.62. Cheddar barrels were $1.57 per pound the end of February, fell to $1.535 on March 4th, but started to increase on March 5th and are now $1.60. Both nonfat dry milk and dry whey prices have softened since February.
Early forecasts were for milk prices to start to increase in March. But, as noted above cheese prices surprisingly weakened from what was expected with rather tight stocks. However, cheese production and stocks were building. The Class III price was $17.25 for February and will be about $16.95 for March. Class IV was $17.75 in February and will be about $17.80 in March. With cheese prices strengthening Class III futures have strengthened with April at $17.53, reaching $18.13 in May and $19 or higher from July through October and ending in December at $18.20. With lower milk production in New Zealand opening up possible export opportunities for the U.S. Class IV futures have also strengthened. March Class IV futures are $17.80 with April at $18.15, hitting $19 in June and staying in the high $18s the remainder of the year. Earlier forecasts had no or little increase in 2013 milk production. USDA and others have revised the forecast for increases in 2013 milk production of between 1% and 1.8%. As a result forecast for average milk prices for the year were lowered. But, the range in forecasts is rather wide with Class III price reaching $20 by September and October to those who still have prices below $18.00. I still feel the probability of Class III reaching and holding at $19 plus by summer and fall as current futures show is quite high. But, as mentioned before the crop conditions and resulting feed prices this summer and fall will be critical to milk production and final milk prices the last half of the year.
DFA Reaches Settlement in Cheese Class Action Lawsuit
“Dairy Farmers of America has reached a settlement agreement in a portion of the class action lawsuit regarding DFA’s trading activity on the Chicago Mercantile Exchange in 2004.
“Under the terms of the settlement with the class of direct purchasers of dairy products, filed this week, DFA makes no admission of wrongdoing and will pay $46 million to the plaintiff class.
“Our farmer leadership and management team have worked diligently to put certain old issues behind us and resolve pending litigation. Recently we were able to settle a class action lawsuit in the Southeast United States. Resolution of both of these lawsuits allows us to remove a source of distraction for our leadership and to avoid additional legal fees.
“The payment of the settlement will not affect the Cooperative’s day-to-day operations or its ability to market members’ milk and pay them a competitive price for that milk. Member milk checks and the member equity program will not be impacted.”
Papa John’s Raises the Bar with Premium Pork Toppings
Any way you slice it, pork is proving that Better ingredients. "Better pizza" is more than a slogan at Papa John’s restaurants.
“Papa John’s is a trend setter in the highly competitive pizza arena,” said David Bottagaro, national foodservice marketing manager for the Pork Checkoff. “The chain is raising the bar by offering new innovative premium pork toppings on its menu.”
The Checkoff teamed with Papa John’s on two signature pizza promotions that ran back to back in 2012. The Five Sausage Pizza featured chorizo, pork sausage crumbles, spicy and mild Italian sausage and smoked sausage.
Papa John’s also debuted its Double Bacon Six Cheese Pizza, featuring Canadian bacon, hickory-smoked bacon and a six-cheese blend of mozzarella, Parmesan, Romano, Asiago, provolone and fontina. It was so popular that it is now a full-time, core menu offering at the chain’s 3,500 restaurants in all 50 states.
“When a major operator like Papa John’s introduces a new pork topping option, such as chorizo, or offers pork on two new signature pizzas, this enhances pork demand,” Bottagaro said. “Papa John’s also has the ability to shift the dynamics in the whole pizza category by prompting other brands to re-evaluate their menu and provide additional pork topping items.”
Canadian Bacon Featured
Of America’s top-five pizza companies, Papa John’s is the only brand to offer Canadian bacon as a topping choice on its permanent menu. Three of Papa John’s specialty signature pizzas also showcase Canadian bacon.
“In the beginning of 2012, Papa John’s exchanged all of ham toppings in its North America stores with Canadian bacon prepared from domestic, loin meat as raw material,” said Bottagaro, noting that the Checkoff has been working with Papa John’s for two years.
To spread the word about the premium pork toppings on its Five Sausage Pizza and Double Bacon Six Cheese Pizza, Papa John’s launched a nationwide, integrated marketing campaign supported by Pork® Be inspired® and El Sabor De Mil PlatillosSM. The promotions targeted general consumers, as well as Hispanic consumers with national TV and print ads, social media and other tools.
“Working with a leading company such as Papa John’s offers unique opportunities to amplify pork’s message and build momentum for future promotions,” Bottagaro said. “Capitalizing on Papa John’s media buying power and impressive customer loyalty helps the Checkoff strengthen pork’s brand position as a premium protein and help drive demand for pork.”
Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.9 million head on March 1, 2013. The inventory was 7 percent below March 1, 2012.
Placements in feedlots during February totaled 1.48 million, 14 percent below 2012. Net placements were 1.42 million head. During February, placements of cattle and calves weighing less than 600 pounds were 355,000, 600-699 pounds were 270,000, 700-799 pounds were 407,000, and 800 pounds and greater were 450,000. Placements are the lowest for February since the series began in 1996.
Marketings of fed cattle during February totaled 1.64 million, 7 percent below 2012. Other disappearance totaled 60,000 during February, 35 percent below 2012.
State By State Information (1000 head, % compared to the same month one year ago)
State - On Feed - Placements - Marketings
NE - 2,430 (95%) - 350 (85%) - 380 (97%)
IA - 640 (96%) - 71 (84%) - 68 (110%)
KS - 2,050 (93%) - 295 (80%) - 345 (90%)
CO - 990 (91%) - 160 (97%) - 170 (85%)
TX - 2,550 (90%) - 340 (89%) - 395 (95%)
USDA Cold Storage Highlights
Total red meat supplies in freezers were up 3 percent from both the previous month and last year. Total pounds of beef in freezers were up 1 percent from the previous month and up 4 percent from last year. Frozen pork supplies were up 5 percent from the previous month and up 2 percent from last year. Stocks of pork bellies were up 17 percent from last month but down 31 percent from last year.
Total frozen poultry supplies on February 28, 2013 were up 2 percent from the previous month and up 9 percent from a year ago. Total stocks of chicken were down 3 percent from the previous month but up 6 percent from last year. Total pounds of turkey in freezers were up 11 percent from last month and up 14 percent from February 29, 2012.
Total natural cheese stocks in refrigerated warehouses on February 28, 2013 were up 4 percent from both the previous month and from February 29, 2012. Butter stocks were up 16 percent from last month and up 17 percent from a year ago. Total frozen fruit stocks were down 8 percent from last month but up 4 percent from a year ago. Total frozen vegetable stocks were down 7 percent from last month but up 6 percent from a year ago.
Nebraska Corn Board Presents Awards of Recognition and Achievement
The Nebraska Corn Board presented its annual awards to six Nebraskans during its Cooperator and Awards Dinner in Lincoln recently.
The agricultural awards pay tribute to outstanding representatives of Nebraska's grain elevator, livestock, and ethanol industries. Additional recognition goes to a member of the Nebraska media and to recognize overall achievement in agriculture.
The Ag Achievement Award annually honors those who have supported and expanded Nebraska agriculture over the long term. This year's award was presented to two recipients: State Senator Tom Carlson of Holdrege and Rick Leonard, research analyst for the Agriculture Committee of the Nebraska Legislature.
Senator Carlson was instrumental in helping pass the legislation that allowed the corn checkoff rate in Nebraska to increase to a level that is better aligned with the current state of the corn industry and with the challenges and opportunities that exist for Nebraska corn farmers. Carlson has also been a leader in exploring ways to help commodity checkoff programs and other agriculture organizations in the state work more efficiently and cooperatively.
Leonard conducted the critical background work required to introduce legislation in support of the corn checkoff revision. He was also involved in the interim study that looked at changes in the structure of the Nebraska Corn Board and continues to be engaged in the legislative process in this regard.
The Elevator Industry Appreciation Award was presented to George Hohwieler, CEO of Aurora Cooperative, headquartered in Aurora, Nebraska. Hohwieler was recognized for his company's commitment to agriculture and to the development of young people in agriculture. He was also supportive of partnering with Nebraska corn farmers for the Red Cross grain donation program. With this, he supported sending two of his board members with the Corn Board to Japan for relief efforts and a Nebraska corn-fed beef trade mission after the earthquake and tsunami in 2011.
The Livestock Industry Appreciation Award was given to Willow Holoubek, organizational director for the Alliance for the Future of Agriculture in Nebraska (A-FAN). Holoubek has been a champion for animal agriculture in Nebraska, helping consumers appreciate the value of the livestock industry in the state—and supporting efforts to expand livestock production in Nebraska.
The Ethanol Industry Appreciation Award was presented to Seth Harder, plant manager at Husker Ag, LLC of Plainview, Nebraska. He was recognized for his leadership in working with retailers to install flex fuel pumps in northeast Nebraska and for his involvement and engagement in ethanol advocacy groups on both a statewide and national basis.
The Media Appreciation Award was presented to Robert Pore of the Grand Island (Neb.) Independent. Pore was recognized for his commitment and depth of understanding of agriculture and biofuels issues—and his ability to effectively communicate these stories with the general public.
NDA ACCEPTING SPECIALTY CROP GRANT PROPOSALS
The Nebraska Department of Agriculture (NDA) is currently accepting specialty crop grant proposals. Specialty crops are defined as fruits and vegetables, tree nuts, dried fruits, horticulture, and nursery crops (including floriculture).
“The specialty crop industry in Nebraska continues to grow,” said NDA Director Greg Ibach. “I encourage individuals involved in this sector to consider submitting a grant proposal this year.”
NDA will utilize funds from the United States Department of Agriculture (USDA) Specialty Crop Block Grant Program to administer the state program, subject to the availability of funds.
A two-phase competitive process will be used to determine eligible grant recipients in Nebraska. Phase one requires interested organizations and groups of individuals to submit by April 19 a concept proposal explaining the main points of their project idea. All submitted concept proposals will be competitively ranked and the top proposals will be asked to move on to phase two of the process. Phase two will involve a more detailed grant proposal to be submitted as part of the state plan to be reviewed by USDA.
According to USDA guidelines, eligible projects must solely enhance the competitiveness of specialty crops, and may focus on: research, education, consumption, trade enhancement, food safety, food security, plant pest and disease control, organic and sustainable production practices, among other opportunities. Proposals must show how the project will benefit the specialty crop industry or a segment of the industry as a whole; proposals that will profitably benefit one organization or individual will not be accepted.
Grant proposal guidelines and application information are available through NDA by calling (800) 422-6692, or e-mailing casey.foster@nebraska.gov. More information on the process can also be accessed on the NDA web site at www.nda.nebraska.gov. Additional information is also available at the USDA web site at http://www.ams.usda.gov/scbgp.
Pork Producers Reaffirm Industry Support for Producer Choice on Sow Housing
At the National Pork Industry Forum last week, pork producers approved a resolution reaffirming the industry's position that producers should be able to select a sow housing system, including gestation stalls or individual maternity pens, which best promotes employee safety and animal care while ensuring a reliable supply of pork for consumers.
"Pork producers, working with veterinarians, understand what it takes to provide the best care and welfare for their animals," said Karen Richter, a farmer from Montgomery, Minn., and National Pork Board vice president. "The National Pork Board builds its animal and well-being programs on the foundation of what are best for the pig. By adopting this resolution, producers are reaffirming their commitment to choose what type of housing is best for their animals."
The National Pork Board provides educational programs and materials that focus on how producers can best ensure the well-being of their pigs. The programs offer methods that help producers take an objective look at each animal's well-being, independent of the size of farm or the specific type of housing.
A survey conducted in 2012 by University of Missouri Extension economist Ron Plain found that currently 17.3 percent of sows spend a portion of gestation in open pens. Plain surveyed pork farms with 1,000 or more sows and received responses from 70 farms, which combined own about 3.6 million of the nation's 5.7 million sows.
Plain's survey also found that 20.2 percent of sows on operations with 1,000 to 9,999 sows, 18.9 percent on farms with 10,000 to 99,000 sows and 16.4 percent on farms with more than 100,000 sows are in open pens for some portion of gestation. When asked about plans to put more sows in open pens, the largest farms indicated that 23.8 percent of their sows would be in them in two years; farms with 10,000 to 99,999 sows would have 21.3 percent of their pigs in such pens; and farms with 1,000 to 9,999 sows would have 20.7 percent. By comparison, a recent National Pork Board producer survey found that farms producing fewer than 5,000 hogs per year (approximately 200 sows or less) were more likely to use some form of open housing.
"Regardless of the system, what really matters is the individual care given to each pig," Richter said. "And we will continue to rely on science-based standards and our own long history of leadership in animal welfare to ensure that all animals are treated humanely."
National Pork Board Approves $3 Million for Summer Marketing Push
New market challenges and new opportunities inspired the National Pork Board to approve adding $3 million in additional Pork Checkoff funds to bolster the 2013 domestic marketing budget during the crucial summer sales months. The action came at a meeting held in conjunction with last week’s National Pork Industry Forum.
Recent pronouncements from key international trading partners undermining U.S. pork’s international market access threaten to slow pork exports from the record pace set in 2012. “With farmers still reeling from high feed prices associated with the 2012 drought, we felt it was critically important that we do everything we can to keep pork moving through the marketplace,” said National Pork Board President Conley Nelson, Algona, Iowa. “With 75 percent of our customers living in the United States, we believe there is a great opportunity to increase domestic demand for quality U.S. pork.”
“We already can see some momentum building toward the summer grilling season,” Nelson said. “Pork right now is one of the best values in the meatcase. We also are getting some help from the new, 145-degree cooking temperature approved last year by the U.S. Food Safety and Inspection Service. We’re adding new pork lovers once they discover how good it is when cooked to the right temperature.”
Nelson added, “Finally, we’ve launched a new effort to give consumers new ideas for affordable family meals. By putting some new labels on familiar pork cuts, we think it will be easier for consumers to take advantage of pork’s great taste and value. Adding $3 million of marketing muscle to our summer sales promotions makes good sense.”
Ceci Snyder, the Checkoff’s vice president of domestic marketing, told board members that the additional funds will make it possible to emphasize the value of pork in the meatcase at a time when many consumers are feeling a financial pinch.
“As we’ve listened to consumers, we know they are seeking affordable and convenient dinner ideas – and pork today offers a great combination of flavor, versatility and value,” said Snyder. “The other thing we’ve learned from consumers is that people who like meat cooked to a medium temperature may still overcook pork. Our pork lovers have discovered that if you cook your pork like a steak, you end up with a tender and juicy product that offers great taste and flavor.”
Nelson noted that the board took similar action in 2011 to grow demand at a critical juncture. “As pork producers, we know firsthand how high feed prices are leading to losses throughout our industry. We are excited about the opportunity to invest Checkoff dollars in a Summer campaign that we believe can grow consumer demand and create a return on investment for our producers.”
The budget addition must be approved by the U.S. Department of Agriculture, which oversees the National Pork Board budget.
Informa Trims Corn Estimate, Ups Soybean Acreage
Private analytical firm Informa Economics revised its forecast for corn acreage to 97.75 million acres, a 1.6 million acre drop from its January estimate but a nearly 600,000-acre increase from last year. Informa's latest report predicts farmers will plant fewer total crop acres than implied by previous analyses, largely in the form of fewer corn acres. The report says this is consistent with what economic returns would suggest as corn's net revenue premium over soybeans (and other major row crops) has declined since their mid-January acreage survey.
The soybean acreage estimate increased to 78.5 million acres, a 320,000-acre jump from January. That's 1.3 million acres higher than last year's planting. Informa shifted some production from the Western Corn Belt to the east and trimmed acres from the mid-South.
All-wheat planted acres are estimated at 56.1 million. Informa estimates 12.4 million acres will be planted to spring wheat. Informa projects a winter wheat crop of 1.61 billion bushel crop, down 38 million bushels from last year, on a slightly lower-than-trend yield and a 470,000-acre increase in abandoned acres. Hard red winter wheat production is projected at 901 million bushels, down 103 million bushels from last year.
USDA will release its Prospective Plantings report on Thursday, March 28, at 11 a.m. CDT.
US-EU FTA Provides Pathway to Address Ongoing Biotech Concerns
Floyd Gaibler, U.S. Grains Council Director of Trade Policy and Biotechnology
The office of the U.S. Trade Representative (USTR) has officially notified Congress of its intent to enter into negotiations with the European Union (EU) on the Transatlantic Trade and Investment Partnership. This is an opportunity to elevate ongoing discussions on a number of significant longstanding issues, among the most important of which is timely approval of genetically modified (GM) events in crops destined for export.
In its letter to Congress, USTR indicated that its objectives include elimination or reduction of non-tariff barriers that decrease market opportunities for U.S. exports, provide a competitive advantage to products of the EU, or otherwise distort trade, such as sanitary and phytosanitary (SPS) restrictions that are not based on science. The U.S. Grains Council will take an active role in working with both governments and our customers to seek a systematic approach to resolving these challenges.
The USTR's goals also include building on key principles and disciplines of the World Trade Organization Agreement on the application of SPS measures. This includes the commitment to base SPS measures on science and international standards or scientific risk assessments; to apply them only to extent necessary to protect human, animal, or plant life or health; to develop such measures in a transparent manner, without undue delay; and to establish an on-going mechanism for improved dialogue and cooperation addressing bilateral SPS issues.
These are top priorities for the Council and the U.S. feed grain sector in addressing ongoing concerns with loss of market share in key EU country markets. Traditionally, until 1997/98, U.S. exports represented the lion's share of EU imports of corn and corn co-products. Since then, U.S. corn exports have fallen dramatically to historically low levels and have varied widely year to year. The decline coincided with the introduction of genetically modified organisms in the U.S. market, and the variability in exports can be tied to the timing of EU approvals of GM corn traits.
The EU's authorization system on GM product approval requests routinely fails to meet its own prescribed timelines. This creates a backlog and a growing gap between approval timelines of the U.S. and the EU. With a steady stream of new, mostly stacked events being submitted for approval, the backlog is likely to increase and create likelihood of not yet EU-authorized GMs in imports. Thus, the ability to respond to market conditions and opportunities to export U.S. feed grains to the EU is severely constrained and unpredictable. Increased trade disruptions will limit markets for U.S. feed grain exports, and ultimately they will result in increased costs for our customers.
Port Congestion Delays China Soy Import
China's April soybean imports will likely be less than 4.5 million metric tons, lower than market expectations of about 5 million tons, due to severe port congestion in Brazil that has delayed shipments, an executive said Friday.
Guo Feng, vice general manager of the trading unit of Chinatex Grain & Oils Co., told an industry conference that the delays may prompt some importers to seek old-crop U.S. soybeans to meet crushing demand, despite higher prices.
Portside inventories will continue to decline, supporting cash prices, Guo said, as China needs about 4.8 million tons for crushing each month.
March imports are expected to be less than 4 million tons, he said.
The state-backed China National Grain & Oils Information Center estimated March soybean imports at 3.77 million tons.
Congress Approves Funds For Meat Inspectors
Furloughs Of FSIS Personnel Prevented; Disruptions At Packing Plants Avoided
The National Pork Producers Council today expressed strong support – and relief – for funding approved by Congress to prevent furloughs of federal meat inspectors, a move that would have had negative effects on pork producers, meat packers and consumers.
The House of Representatives today passed a continuing resolution, which funds all federal programs through Sept. 30, that includes $55 million for the U.S. Department of Agriculture’s Food Safety Inspection Service (FSIS). The Senate approved the funding bill yesterday, with an amendment sponsored by Sens. Roy Blunt, R-Mo., and Mark Pryor, D-Ark., that added the money for FSIS inspectors, who are required in packing plants that process meat, poultry and eggs.
“This is very good news for pork producers and other livestock and poultry producers,” said NPPC President Randy Spronk, a hog farmer from Edgerton, Minn. “Federal meat inspection is a function that should be maintained to protect the public health by ensuring the safety of the U.S. meat supply. We’re pleased meat inspections will continue, and we are very grateful to Sens. Blunt and Pryor for their efforts to protect food-animal producers and meat packers from costly losses and consumers from higher prices.”
Agriculture Secretary Tom Vilsack last month said federal budget sequestration – automatic across-the-board cuts – could force furloughs of up to 15 days for FSIS inspectors. More recently, USDA was considering furloughs of one day a week for 11 weeks between July and Sept. 30 – the end of the 2013 fiscal year.
Without inspectors, packing plants cannot process meat. USDA estimated the furloughs would have resulted in lost production of more than 2 billion pounds of meat, 2.8 billion to 3.3 billion pounds of poultry and more than 200 million pounds of egg products at a cost of as much as $11 billion.
NPPC had asked the secretary to recognize meat inspectors as “essential” workers – as they had been in similar situations, such as a government shutdown – and forego furloughing them.
The money for FSIS is offset by not increasing funds for USDA’s building and facilities account and its School Breakfast Grant Program as much as was requested in the original continuing resolution. (Both, however, receive more funding in fiscal 2013 than they did in fiscal 2012.)
Record Year for Meat and Poultry Exports Bolsters Demand for U.S. Soy
These little piggies went to market – international markets, that is, and in record numbers. Despite challenging issues, such as the struggling global economy and trade barriers, U.S. poultry and livestock farmers enjoyed a record year for meat exports, which helps keep domestic demand for U.S. soy strong.
U.S. poultry, egg and pork shipments exceeded previous highs for value and volume set in 2011. International beef sales dipped slightly in volume but broke the previous value record.
Growing U.S. meat and poultry exports reinforce demand for U.S. soy since soy meal constitutes a significant portion of animal feeds. Domestic animal agriculture uses about 98 percent of the domestic supply of U.S. soy meal, making it the U.S. soy industry’s No. 1 customer.
“Exporting meat and poultry is a big issue for U.S. soybean farmers,” says John Butler, a farmer-leader from Dyersburg, Tenn. “If we can feed animals soybeans here and sell them abroad, we’re creating a value-added product. Adding that value here has a tremendous positive impact on not only the U.S. soy industry but the national economy as well.”
Poultry and hogs remain the biggest users of U.S. soy meal. According to the most recent statistics, poultry consume roughly 12.9 million metric tons annually. That’s the meal from 601 million bushels of soybeans. And hogs account for 6.8 million metric tons of U.S. soy meal, or the meal from 318 million bushels of soybeans.
To support U.S. soy meal’s largest customer, the soy checkoff partners with organizations like the U.S. Meat Export Federation (USMEF) and USA Poultry and Egg Export Council to market U.S. meat and poultry abroad. A recent checkoff and USMEF effort helped increase consumption of pork back ribs in Japan from zero to 4.5 million pounds over the last three years.
The U.S. meat and poultry export figures for 2012 include:
- Pork exports nearly reached 2.3 million metric tons, valued at over $6.3 billion.
- Broiler meat exports, excluding chicken paws, reached 3.3 million metric tons, valued at nearly $4.2 billion.
- Beef exports reached 1.1 million metric tons, valued at $5.5 billion.
- Turkey exports reached 361,597 metric tons, valued at $678 million.
- Chicken paw exports reached 363,974 metric tons, valued at $450.1 million.
- Egg exports, table eggs and processed egg products in shell equivalents reached 274.1 million dozen, valued at $263.7 million.
Dairy Situation and Outlook
Bob Cropp, Professor Emeritus, University of Wisconsin Cooperative Extension
Despite widespread drought last year and high feed prices milk production continues to run above year ago levels, but up just slightly. USDA’s release of February’s milk production when adjusted for leap year showed production compared to a year earlier up just 0.1% for the 23 reporting states and estimated to be even for the U.S. This is down from increases in January of 0.5% for the 23 states and 0.6% for the U.S.
Milk per cow fell below year ago levels for two months last year, August and September and has been above year ago levels ever since. February milk per cow was up just slightly for both the 23 states (0.2%) and the U.S. (0.3%). Milk cow numbers peaked in April last year and then declined May through October. Since then milk cow numbers have been increasing despite heavier cow slaughter. February cow numbers were 2,000 head higher than January for both the 23 states and the U.S. The net result was milk production below a year ago during August through October of last year and above year ago since then.
Adjusted for leap year February milk production was below a year ago for Western states. February milk production was below a year ago by 3.5% for Arizona, 4.7% for California, 0.8% for Idaho, 0.5% for New Mexico, and 2.0% for Texas. Each of these states had fewer milk cows than a year ago. In the Northeast February milk production was above a year ago by 1.5% for New York, 1.6% for Pennsylvania, 2.6% for Ohio and 4.2% for Michigan. And for the Midwest production was above a year ago by 1.3% for Iowa, 2.6% for Minnesota and 3.9% for Wisconsin.
With milk production running above a year ago dairy product production is also higher. January production compared to a year ago shows butter up 2.6%, cheddar cheese up 2.9% and total cheese up 2.4%. Exports have been lighter and domestic buyers have not been aggressive resulting in increased stocks. January 31st stocks compared to a year ago shows butter up 21.3% (increased 35% since the end of December), American cheese up just 0.2% and total cheese up 1.2%. Stocks of nonfat dry milk were up 57.2% and dry whey stocks up 17.5%.
Dairy exports were a record in 2012 accounting for 13.2% of U.S. total milk solids. But, exports trended lower the last quarter with December exports the lowest in two years. December exports were equivalent to just 11.6% of total milk solids. Exports suffered due to increased milk production in New Zealand which allowed for greater exports and at prices lower than U.S. prices. But, weather has turned unfavorable in New Zealand with dry weather causing deteriorating pastures lowering milk production and bringing their seasonal production to a quicker end. Dry weather in parts of Australia and wet in other parts has reduced Australia’s milk production as well. Argentina’s milk production is now running below a year ago and production is flat in the EU. The result has been increase prices on the Global Dairy Trade for the past seven trading sessions bringing prices closer to U.S. prices. So once international buyers work off inventories U.S. dairy exports ought to increase giving strength to milk prices. In fact exports already started to improve in January. Compared to a year ago exports were up 13% for cheese, 54% for whey protein concentrate, 11% for lactose and 40% for butter. Exports of nonfat dry milk were down 18% and dry whey exports down 14%. Yet exports as a percentage of total milk solids improved to 12.3%.
Dairy product prices weakened early March from where they were the end of February. Butter was an exception with the end of February at $1.55 per pound and increasing to $1.70 by March 19th. Cheddar blocks were $1.595 per pound the end of February, fell to $1.55 on March 4th, but started to increase on March 7th and are now $1.62. Cheddar barrels were $1.57 per pound the end of February, fell to $1.535 on March 4th, but started to increase on March 5th and are now $1.60. Both nonfat dry milk and dry whey prices have softened since February.
Early forecasts were for milk prices to start to increase in March. But, as noted above cheese prices surprisingly weakened from what was expected with rather tight stocks. However, cheese production and stocks were building. The Class III price was $17.25 for February and will be about $16.95 for March. Class IV was $17.75 in February and will be about $17.80 in March. With cheese prices strengthening Class III futures have strengthened with April at $17.53, reaching $18.13 in May and $19 or higher from July through October and ending in December at $18.20. With lower milk production in New Zealand opening up possible export opportunities for the U.S. Class IV futures have also strengthened. March Class IV futures are $17.80 with April at $18.15, hitting $19 in June and staying in the high $18s the remainder of the year. Earlier forecasts had no or little increase in 2013 milk production. USDA and others have revised the forecast for increases in 2013 milk production of between 1% and 1.8%. As a result forecast for average milk prices for the year were lowered. But, the range in forecasts is rather wide with Class III price reaching $20 by September and October to those who still have prices below $18.00. I still feel the probability of Class III reaching and holding at $19 plus by summer and fall as current futures show is quite high. But, as mentioned before the crop conditions and resulting feed prices this summer and fall will be critical to milk production and final milk prices the last half of the year.
DFA Reaches Settlement in Cheese Class Action Lawsuit
“Dairy Farmers of America has reached a settlement agreement in a portion of the class action lawsuit regarding DFA’s trading activity on the Chicago Mercantile Exchange in 2004.
“Under the terms of the settlement with the class of direct purchasers of dairy products, filed this week, DFA makes no admission of wrongdoing and will pay $46 million to the plaintiff class.
“Our farmer leadership and management team have worked diligently to put certain old issues behind us and resolve pending litigation. Recently we were able to settle a class action lawsuit in the Southeast United States. Resolution of both of these lawsuits allows us to remove a source of distraction for our leadership and to avoid additional legal fees.
“The payment of the settlement will not affect the Cooperative’s day-to-day operations or its ability to market members’ milk and pay them a competitive price for that milk. Member milk checks and the member equity program will not be impacted.”
Papa John’s Raises the Bar with Premium Pork Toppings
Any way you slice it, pork is proving that Better ingredients. "Better pizza" is more than a slogan at Papa John’s restaurants.
“Papa John’s is a trend setter in the highly competitive pizza arena,” said David Bottagaro, national foodservice marketing manager for the Pork Checkoff. “The chain is raising the bar by offering new innovative premium pork toppings on its menu.”
The Checkoff teamed with Papa John’s on two signature pizza promotions that ran back to back in 2012. The Five Sausage Pizza featured chorizo, pork sausage crumbles, spicy and mild Italian sausage and smoked sausage.
Papa John’s also debuted its Double Bacon Six Cheese Pizza, featuring Canadian bacon, hickory-smoked bacon and a six-cheese blend of mozzarella, Parmesan, Romano, Asiago, provolone and fontina. It was so popular that it is now a full-time, core menu offering at the chain’s 3,500 restaurants in all 50 states.
“When a major operator like Papa John’s introduces a new pork topping option, such as chorizo, or offers pork on two new signature pizzas, this enhances pork demand,” Bottagaro said. “Papa John’s also has the ability to shift the dynamics in the whole pizza category by prompting other brands to re-evaluate their menu and provide additional pork topping items.”
Canadian Bacon Featured
Of America’s top-five pizza companies, Papa John’s is the only brand to offer Canadian bacon as a topping choice on its permanent menu. Three of Papa John’s specialty signature pizzas also showcase Canadian bacon.
“In the beginning of 2012, Papa John’s exchanged all of ham toppings in its North America stores with Canadian bacon prepared from domestic, loin meat as raw material,” said Bottagaro, noting that the Checkoff has been working with Papa John’s for two years.
To spread the word about the premium pork toppings on its Five Sausage Pizza and Double Bacon Six Cheese Pizza, Papa John’s launched a nationwide, integrated marketing campaign supported by Pork® Be inspired® and El Sabor De Mil PlatillosSM. The promotions targeted general consumers, as well as Hispanic consumers with national TV and print ads, social media and other tools.
“Working with a leading company such as Papa John’s offers unique opportunities to amplify pork’s message and build momentum for future promotions,” Bottagaro said. “Capitalizing on Papa John’s media buying power and impressive customer loyalty helps the Checkoff strengthen pork’s brand position as a premium protein and help drive demand for pork.”
Thursday, March 21, 2013
Thursday March 21 Ag News
UNL Report: Agland Values Up Again, but Trend May Reverse in Next Year
Despite an extreme drought and indicators of weaker agricultural earnings on the horizon, Nebraska's agricultural land markets remain strong, with an overall increase of 25 percent in the last year, according to preliminary findings from the University of Nebraska-Lincoln.
Following the advances of 22 and 32 percent in the previous two years, the 2013 all-land value of $3,040 per acre is more than double the value in early 2010.
"Few would disagree that this period has clearly been a land boom," said UNL agricultural economist Bruce Johnson, who leads the annual Nebraska Farm Real Estate Market Developments survey.
Survey reporters across the state reported percentage gains for all the farmland classes for the period from Feb. 1, 2012 to Feb. 1, 2013, but "the variation across the classes as well as across sub-state regions was extreme," Johnson said.
Drought conditions in 2012 lifted market demand for irrigated cropland, Johnson said, as irrigated land classes had the largest percentage value gains across the state.
"Income flows from irrigated land have been phenomenal in recent years, and 2012 was no exception," he said. "The combination of favorable irrigated yields while widespread drought was seen across the nation's Corn Belt fueled high crop commodity prices."
In the southern parts of Nebraska (Southwest, South, and Southeast districts) the percentage value advances for irrigated land were particularly strong over the past year.
For dryland cropland values, the percentage increases over the past year varied greatly across the state. In the Northwest and North districts, the value gains were below 10 percent, while reported values were more than 30 percent higher in the South and Southeast districts. The land class, dryland cropland with irrigation potential, shows considerable variation as well. The presence of water moratoriums across much of the state precludes irrigation development even if groundwater sources exist.
Despite the heavy toll of drought that cut forage capacity as much as 50 percent or more during the 2012 grazing season, grazing land value values still rose, Johnson said.
"Forage shortfalls for cattlemen may have actually caused a more spirited bidding for additional land just to maintain their cow herd numbers," he added. "Unfortunately, even if the drought ends quickly, it may be several years before grazing capacity may be able to return to pre-drought levels."
Survey reporters "frequently commented that current land prices being paid seem over-optimistic," Johnson said. "In turn, when asked what they expected land value movements to be for the remainder of 2013 as well as out three to five years, the vast majority saw a market which had topped out with little if any upward movement in the near future.
"In fact, a sizable number of reporters thought values could weaken somewhat in the next few years," he added.
Survey reporters also indicated that 2013 cash rental rates for cropland were up from 2012 levels. Preliminary estimates for dryland cropland cash rents in eastern Nebraska averaged about 8 percent above a year ago, while rates in the rest of the state rose 5 percent or less. The increase was much below the annual rises of the past few years, reflecting the seriousness of soil moisture deficits going into the 2013 crop year.
Across the state, center pivot irrigated cropland cash rental rates for 2013 were reportedly 13 to 15 percent above a year earlier. Reported rates for the high-third quality center pivot cropland were over $400 per acre across the eastern third of the state. The value of water in rain-deficit periods, particularly with the efficiency of the center pivot technology, is clearly being reflected in these rates.
Pasture land rates on a per-acre basis moved upward for 2013 in most regions of the state. Last year's forage production shortfalls with depleted carry-over stocks into this year have sharpened the market for pasture, even though the potential grazing output will very likely be below normal for the year. On a cow-calf pair per month basis, the rates were up from a year earlier in all regions with most districts showing gains in the 3 to 6 percent range.
Comparing the recent percentage gains in value of agricultural land classes with the associated lower percentage gains in cash rental rates indicate a continuing pattern of lower rent-to-value ratios associated with all farmland classes, Johnson said.
"At some point, the implied economic returns to land as a percent of value can fall to a point where market participants say 'enough' and no longer bid values higher," he said. "Here in Nebraska, we well may be quickly approaching that point."
The findings in this report are preliminary. A final report will be released this summer.
More information, including tables showing details of average land values for all classes of land, is at www.agecon.unl.edu. Click on the March 21 Cornhusker Economics.
NE CLIMATE ASSESSMENT RESPONSE COMMITTEE TO MEET
Bobbie Kriz-Wickham, assistant director of the Nebraska Department of Agriculture, has scheduled a meeting of the Climate Assessment Response Committee (CARC) for Monday, March 25. The meeting will begin at 1:30 p.m. at the East Campus Student Union of the University of Nebraska-Lincoln. Climate officials will brief CARC members on existing, as well as predicted, weather conditions and provide a water availability outlook. Mitigation activities will be discussed. For more details, call the Nebraska Department of Agriculture at (402) 471-2341.
Contract Grazing Fact Sheet Series Now Available
A new four-part series of fact sheets on contract grazing for cattle is now available on the Iowa Beef Center (IBC) website. The resource was developed by a specialized working group within the Green Lands, Blue Water project, including two Iowa State University specialists. Joe Sellers, ISU Extension and Outreach beef specialist, and Andy Larson, small farms specialist with ISU Extension and Outreach, worked with project members from Wisconsin and Minnesota to identify needs and information for those who graze cattle.
“Our group has been working on the fact sheets as a source of assistance to graziers and cattle owners who use custom grazing in their management schemes,” Sellers said. “As cow numbers increase and available pasture acres decrease, we want people to recognize and learn more about options for their operations.”
One such option is the development of working partnerships with other producers to access pasture through contract grazing. Each fact sheet focuses on one topic related to contract grazing: contract grazing basics, evaluating land suitability, rental and lease agreements, and contract grazing rates.
The fact sheets can be viewed, download and printed at no cost from these links:
- The Basics of Contract Grazing www.iowabeefcenter.org/information/ContractGrazing1Basics.pdf
- Evaluating Land Suitability for Grazing Cattle www.iowabeefcenter.org/information/ContractGrazing2LandEval.pdf
- Pasture Rental and Lease Agreements www.iowabeefcenter.org/information/ContractGrazing3Leases.pdf
- Rates Charged for Contract Grazing Arrangements www.iowabeefcenter.org/information/ContractGrazing4Rates.pdf
This resource can be used to supplement existing grazing-related information on the IBC website, specifically under “Cattle Grazing Survey 2007”... http://www.iowabeefcenter.org/research_projects.html.
INTERNATIONAL LEADER IN GLOBAL SUSTAINABLE DEVELOPMENT TO SPEAK AT ISU APRIL 7
An internationally recognized scientist and World Food Prize recipient will speak about opportunities and challenges for advancing integrated sustainable development during the 2013 Shivvers Memorial Lecture at Iowa State University.
Hans Herren's talk, "Changing Course in Global Agriculture," will be at 7 p.m. Sunday, April 7, in the Memorial Union Sun Room. It is free and open to the public.
Herren is president of the Millennium Institute, an international non-governmental organization that facilitates sustainable development. A Swiss entomologist, Herren received the 1995 World Food Prize for leading a major biological pest development campaign in Africa, successfully fighting the cassava mealy bug and averting a catastrophic food shortage.
Over the years, Herren's interests shifted toward integrated sustainable development, in particular, linking environmental, plant, animal and human health issues. Herren points to three major challenges in food systems: finding solutions to sustainable productivity, feeding a growing global population and rising food prices.
The Millennium Institute's president since May 2005, Herren previously was director-general of the International Center for Insect Physiology and Ecology in Nairobi, Kenya. He also served as director of the Africa Biological Control Center of International Institute of Tropical Agriculture in Benin.
Herren is the recipient of numerous awards that recognize his distinguished and continuing achievements in original research, including election to the U.S, National Academy of Sciences and to the Academy of Sciences of the Developing World.
Herren's presentation is co-sponsored by the Leopold Center for Sustainable Agriculture and the Committee on Lectures, which is funded by the Government of the Student Body. More information on ISU lectures is available online at http://www.lectures.iastate.edu, or by calling 515-294-9935.
Congress Approves CR
(from NAWG)
Congress has successfully passed a Continuing Resolution (CR) to fund the government for the next six months. The House passed their version of the CR earlier this month. After eight days of floor debate, the Senate passed an updated version of their CR on Wednesday with a vote of 73-26. The Senate bill went much further than the House bill, and included appropriations for the departments of Defense, Veterans Affairs, Justice, Commerce, Agriculture and Homeland Security. As part of a deal with the House Republicans, the Senate bill didn’t overturn sequester, but included an amendment offered by Senators Roy Blunt (R-Mo.) and Mark Pryor (D-Ark.). The amendment allows the USDA to shift money from other areas of their budget to avoid furloughing meat inspectors. The House approved the Senate bill with a vote of 318-109. The bill will be sent to the White House, and is expected to be signed into law this week.
House Passes Continuing Resolution Funding FSIS Inspectors
The National Cattlemen’s Beef Association (NCBA) applauds the action of the House and Senate as this morning the House passed H.R. 933, the continuing resolution which contained a similar amendment to that which passed the Senate yesterday. The amendment, authored by Senators Roy Blunt of Missouri and Mark Pryor of Arkansas would shift $55 million from the United States Department of Agriculture’s (USDA) accounts to pay Food Safety Inspection Service (FSIS) inspectors through Oct. 1, 2013, when the new fiscal year begins. The bill now heads to the President’s desk for his signature.
“This is great news for every segment of American agriculture,” said NCBA President Scott George a cattleman from Cody, Wyo. “With this shift of finances, Congress was able to avoid the crisis created by the administration and keep FSIS inspectors in the plants where they belong. While cattlemen and women were disappointed Secretary Vilsack threw in the towel on his agency’s 107-year-old duty to provide federal food safety inspections, we sincerely thank Senators Blunt and Pryor for ensuring the nation’s food supply will not be limited by politics.”
Under the Federal Meat Inspection Act of 1906 and related legislation, all meat, poultry and egg products produced here in the United States or imported must be inspected by a federal food safety inspector and that service must be paid for by the federal government. Without the inspection, no product can be sold or shipped interstate.
“Had inspection been halted, this would have resulted in a backlog of animals, shortened supply of beef to market, higher prices and harm to the futures markets,” said George. “By the Secretary’s own estimates, this would have equated to $10 billion in production losses and $400 million in lost wages, only compounding the issues faced by ranchers dealing with the worst drought in fifty years.”
Under sequestration the FSIS was expected to take a total cut of $52.8 million, or 5 percent of its budget. In that event, furloughs would have been required of all 9,212 employees of the FSIS, including 8,136 meat inspectors and others on the front line such as lab technicians. The furloughs were expected to be taken one day per week between July and the end of the fiscal year in September.
Commercial Red Meat Production Down From Last Year
Commercial red meat production for the United States totaled 3.67 billion pounds in February, down 6 percent from the 3.91 billion pounds produced in February 2012.
Beef production, at 1.87 billion pounds, was 7 percent below the previous year. Cattle slaughter totaled 2.36 million head, down 8 percent from February 2012. The average live weight was up 13 pounds from the previous year, at 1,320 pounds.
Veal production totaled 9.0 million pounds, 9 percent below February a year ago. Calf slaughter totaled 59,600 head, down 1 percent from February 2012. The average live weight was down 18 pounds from last year, at 258 pounds.
Pork production totaled 1.78 billion pounds, down 6 percent from the previous year. Hog slaughter totaled 8.59 million head, down 5 percent from February 2012. The average live weight was down 1 pound from the previous year, at 277 pounds.
Lamb and mutton production, at 11.5 million pounds, was down 7 percent from February 2012. Sheep slaughter totaled 161,700 head, 2 percent below last year. The average live weight was 142 pounds, down 7 pounds from February a year ago.
January to February 2013 commercial red meat production was 8.0 billion pounds, down slightly from 2012. Accumulated beef production was up slightly from last year, veal was down 4 percent, pork was down 1 percent from last year, and lamb and mutton production was down 2 percent.
By State (Feb 2013 prod, % of Feb 2012)
Nebraska ......: 526.5 million pounds - 92%
Iowa .............: 501.4 million pounds - 94%
Kansas ........: 396.2 million pounds - 100%
Program Helps Growers Advance in Leadership
Seven corn farmers who are leaders in the industry underwent an extensive session in advanced leadership training this week in Washington, as part of the National Corn Growers Association Advanced Leadership program, co-sponsored by Syngenta. Taking part in the program are Martin Barbre (Ill.), Wesley Spurlock (Texas), Joel Grams (Neb.), Dean Taylor (Iowa), Keith Alverson (S.D.), Paul Herringshaw (Ohio), and H. Grant Troop (Pa.).
While in the nation's capital they underwent extensive media training and discussions with NCGA Washington staff about current and emerging issues affecting corn farmers. They also joined in activities surrounding National Agriculture Day, including the National Celebration of Agriculture Dinner, featuring U.S. Agriculture Secretary Tom Vilsack and key members of Congress.
"This has been a busy, but important, week in Washington," said program participant Martin Barbre, an Illinois grower who serves as NCGA's first vice president. "At a time when it is so important for our nation's farmers to be active and engaged leaders, sessions such as these give us the opportunity to build our knowledge and experience and have meaningful conversations with policymakers and influencers, so they can understand and appreciate our perspective."
Wrapping up its third year, this program aims to help develop top-notch state and national leadership that is empowered to share its skill sets within the industry and community. It builds upon the Leadership at Its Best Program that has helped develop corn industry leadership since 1986.
Brazilian Government, Unions Reach Agreement on Port Operations
Representatives of Brazil's government and union leaders reached an agreement Thursday to alter a recent decree governing port operations, averting a threatened strike.
"We have an agreement; there won't be a strike," said Paulo Pereira da Silva, president of the Forca Sindical federation of unions.
The unions had objected to new rules that would have let privately owned port owners and operators hire nonunion workers and let those ports operate under rules that would lower costs for exporters compared with the public ports.
Details of Thursday's agreement weren't immediately available.
A strike would have come at a particularly bad time. Brazil's ports are already a bottleneck, slowing exports of the recent bumper crop of soybeans and grains.
Unions held a six-hour strike on Feb. 22 that halted the movement of goods through the country's biggest port, Santos, and union leaders were planning a 24-hour strike Monday if their main demands weren't met.
The government issued the decree in early December. President Dilma Rousseff is promoting private investment in ports, roads, railways and airport to help improve the country's transportation infrastructure, reduce costs and make the economy more competitive.
New Skyraider™ insecticide/miticide receives EPA approval
Skyraider™ insecticide/miticide, manufactured by MANA, has received approval by the EPA for broad-spectrum control against soil and foliar insects on soybeans, cotton, potatoes and other crops.
New Skyraider is an optimized formulation of proven crop protection technology that includes two different modes of action. This advanced offering hosts an increased ratio of a pyrethroid to support rapid insect knockdown while delivering longer lasting residual, which is driven by the formulation’s neonicotinoid component.
Skyraider has unique attributes proven to perform equal to or better than the market leaders by delivering highly efficacious control of tough-to-manage pests like aphids, Lygus species, stink bugs and wireworms.
It provides both translaminar and systemic movement, which allows improved penetration and relocation of the active ingredients throughout the plant, including feeding sites on the underside of leaves.
“With this kind of systemic activity, Skyraider has a clear-cut advantage in controlling foliar insects, including aphids,” said Dave Rummel, MANA brand leader. “At recommended rates, it also controls mites, which several competitors don’t support as part of their insect control lineup.”
Extensive field trials have delivered high performance ratings for Skyraider in regard to efficacy and economic value in addition to performance advantages over several competitive products.
On potatoes, Rummel indicates that the Skyraider label includes wireworms and Colorado potato beetle, which are two pests that require growers to remain on constant high alert.
“Skyraider is a premier insecticide with differentiating performance advantages,” said Rummel. “We’re proud of this new MANA offering and its rapid acceptance as one of the most powerful pest control tools available to date. Pests can’t run or hide from Skyraider.”
Convenience in handling
The Skyraider formulation and packaging delivers simplified handling and preparation steps for growers and applicators prior to treatments in comparison to other insecticide inputs.
“The formulation is easy to use and offers a more optimized use rate while protecting the grower’s investment along with time savings,” Rummel added. “It also offers the convenience of one product for multiple crop uses.
“Skyraider will be a critical tool for growers who want protection from high levels of insect infestation. And, with two different modes of action in a single application, it’s a perfect fit in a complete insect management program.”
Despite an extreme drought and indicators of weaker agricultural earnings on the horizon, Nebraska's agricultural land markets remain strong, with an overall increase of 25 percent in the last year, according to preliminary findings from the University of Nebraska-Lincoln.
Following the advances of 22 and 32 percent in the previous two years, the 2013 all-land value of $3,040 per acre is more than double the value in early 2010.
"Few would disagree that this period has clearly been a land boom," said UNL agricultural economist Bruce Johnson, who leads the annual Nebraska Farm Real Estate Market Developments survey.
Survey reporters across the state reported percentage gains for all the farmland classes for the period from Feb. 1, 2012 to Feb. 1, 2013, but "the variation across the classes as well as across sub-state regions was extreme," Johnson said.
Drought conditions in 2012 lifted market demand for irrigated cropland, Johnson said, as irrigated land classes had the largest percentage value gains across the state.
"Income flows from irrigated land have been phenomenal in recent years, and 2012 was no exception," he said. "The combination of favorable irrigated yields while widespread drought was seen across the nation's Corn Belt fueled high crop commodity prices."
In the southern parts of Nebraska (Southwest, South, and Southeast districts) the percentage value advances for irrigated land were particularly strong over the past year.
For dryland cropland values, the percentage increases over the past year varied greatly across the state. In the Northwest and North districts, the value gains were below 10 percent, while reported values were more than 30 percent higher in the South and Southeast districts. The land class, dryland cropland with irrigation potential, shows considerable variation as well. The presence of water moratoriums across much of the state precludes irrigation development even if groundwater sources exist.
Despite the heavy toll of drought that cut forage capacity as much as 50 percent or more during the 2012 grazing season, grazing land value values still rose, Johnson said.
"Forage shortfalls for cattlemen may have actually caused a more spirited bidding for additional land just to maintain their cow herd numbers," he added. "Unfortunately, even if the drought ends quickly, it may be several years before grazing capacity may be able to return to pre-drought levels."
Survey reporters "frequently commented that current land prices being paid seem over-optimistic," Johnson said. "In turn, when asked what they expected land value movements to be for the remainder of 2013 as well as out three to five years, the vast majority saw a market which had topped out with little if any upward movement in the near future.
"In fact, a sizable number of reporters thought values could weaken somewhat in the next few years," he added.
Survey reporters also indicated that 2013 cash rental rates for cropland were up from 2012 levels. Preliminary estimates for dryland cropland cash rents in eastern Nebraska averaged about 8 percent above a year ago, while rates in the rest of the state rose 5 percent or less. The increase was much below the annual rises of the past few years, reflecting the seriousness of soil moisture deficits going into the 2013 crop year.
Across the state, center pivot irrigated cropland cash rental rates for 2013 were reportedly 13 to 15 percent above a year earlier. Reported rates for the high-third quality center pivot cropland were over $400 per acre across the eastern third of the state. The value of water in rain-deficit periods, particularly with the efficiency of the center pivot technology, is clearly being reflected in these rates.
Pasture land rates on a per-acre basis moved upward for 2013 in most regions of the state. Last year's forage production shortfalls with depleted carry-over stocks into this year have sharpened the market for pasture, even though the potential grazing output will very likely be below normal for the year. On a cow-calf pair per month basis, the rates were up from a year earlier in all regions with most districts showing gains in the 3 to 6 percent range.
Comparing the recent percentage gains in value of agricultural land classes with the associated lower percentage gains in cash rental rates indicate a continuing pattern of lower rent-to-value ratios associated with all farmland classes, Johnson said.
"At some point, the implied economic returns to land as a percent of value can fall to a point where market participants say 'enough' and no longer bid values higher," he said. "Here in Nebraska, we well may be quickly approaching that point."
The findings in this report are preliminary. A final report will be released this summer.
More information, including tables showing details of average land values for all classes of land, is at www.agecon.unl.edu. Click on the March 21 Cornhusker Economics.
NE CLIMATE ASSESSMENT RESPONSE COMMITTEE TO MEET
Bobbie Kriz-Wickham, assistant director of the Nebraska Department of Agriculture, has scheduled a meeting of the Climate Assessment Response Committee (CARC) for Monday, March 25. The meeting will begin at 1:30 p.m. at the East Campus Student Union of the University of Nebraska-Lincoln. Climate officials will brief CARC members on existing, as well as predicted, weather conditions and provide a water availability outlook. Mitigation activities will be discussed. For more details, call the Nebraska Department of Agriculture at (402) 471-2341.
Contract Grazing Fact Sheet Series Now Available
A new four-part series of fact sheets on contract grazing for cattle is now available on the Iowa Beef Center (IBC) website. The resource was developed by a specialized working group within the Green Lands, Blue Water project, including two Iowa State University specialists. Joe Sellers, ISU Extension and Outreach beef specialist, and Andy Larson, small farms specialist with ISU Extension and Outreach, worked with project members from Wisconsin and Minnesota to identify needs and information for those who graze cattle.
“Our group has been working on the fact sheets as a source of assistance to graziers and cattle owners who use custom grazing in their management schemes,” Sellers said. “As cow numbers increase and available pasture acres decrease, we want people to recognize and learn more about options for their operations.”
One such option is the development of working partnerships with other producers to access pasture through contract grazing. Each fact sheet focuses on one topic related to contract grazing: contract grazing basics, evaluating land suitability, rental and lease agreements, and contract grazing rates.
The fact sheets can be viewed, download and printed at no cost from these links:
- The Basics of Contract Grazing www.iowabeefcenter.org/information/ContractGrazing1Basics.pdf
- Evaluating Land Suitability for Grazing Cattle www.iowabeefcenter.org/information/ContractGrazing2LandEval.pdf
- Pasture Rental and Lease Agreements www.iowabeefcenter.org/information/ContractGrazing3Leases.pdf
- Rates Charged for Contract Grazing Arrangements www.iowabeefcenter.org/information/ContractGrazing4Rates.pdf
This resource can be used to supplement existing grazing-related information on the IBC website, specifically under “Cattle Grazing Survey 2007”... http://www.iowabeefcenter.org/research_projects.html.
INTERNATIONAL LEADER IN GLOBAL SUSTAINABLE DEVELOPMENT TO SPEAK AT ISU APRIL 7
An internationally recognized scientist and World Food Prize recipient will speak about opportunities and challenges for advancing integrated sustainable development during the 2013 Shivvers Memorial Lecture at Iowa State University.
Hans Herren's talk, "Changing Course in Global Agriculture," will be at 7 p.m. Sunday, April 7, in the Memorial Union Sun Room. It is free and open to the public.
Herren is president of the Millennium Institute, an international non-governmental organization that facilitates sustainable development. A Swiss entomologist, Herren received the 1995 World Food Prize for leading a major biological pest development campaign in Africa, successfully fighting the cassava mealy bug and averting a catastrophic food shortage.
Over the years, Herren's interests shifted toward integrated sustainable development, in particular, linking environmental, plant, animal and human health issues. Herren points to three major challenges in food systems: finding solutions to sustainable productivity, feeding a growing global population and rising food prices.
The Millennium Institute's president since May 2005, Herren previously was director-general of the International Center for Insect Physiology and Ecology in Nairobi, Kenya. He also served as director of the Africa Biological Control Center of International Institute of Tropical Agriculture in Benin.
Herren is the recipient of numerous awards that recognize his distinguished and continuing achievements in original research, including election to the U.S, National Academy of Sciences and to the Academy of Sciences of the Developing World.
Herren's presentation is co-sponsored by the Leopold Center for Sustainable Agriculture and the Committee on Lectures, which is funded by the Government of the Student Body. More information on ISU lectures is available online at http://www.lectures.iastate.edu, or by calling 515-294-9935.
Congress Approves CR
(from NAWG)
Congress has successfully passed a Continuing Resolution (CR) to fund the government for the next six months. The House passed their version of the CR earlier this month. After eight days of floor debate, the Senate passed an updated version of their CR on Wednesday with a vote of 73-26. The Senate bill went much further than the House bill, and included appropriations for the departments of Defense, Veterans Affairs, Justice, Commerce, Agriculture and Homeland Security. As part of a deal with the House Republicans, the Senate bill didn’t overturn sequester, but included an amendment offered by Senators Roy Blunt (R-Mo.) and Mark Pryor (D-Ark.). The amendment allows the USDA to shift money from other areas of their budget to avoid furloughing meat inspectors. The House approved the Senate bill with a vote of 318-109. The bill will be sent to the White House, and is expected to be signed into law this week.
House Passes Continuing Resolution Funding FSIS Inspectors
The National Cattlemen’s Beef Association (NCBA) applauds the action of the House and Senate as this morning the House passed H.R. 933, the continuing resolution which contained a similar amendment to that which passed the Senate yesterday. The amendment, authored by Senators Roy Blunt of Missouri and Mark Pryor of Arkansas would shift $55 million from the United States Department of Agriculture’s (USDA) accounts to pay Food Safety Inspection Service (FSIS) inspectors through Oct. 1, 2013, when the new fiscal year begins. The bill now heads to the President’s desk for his signature.
“This is great news for every segment of American agriculture,” said NCBA President Scott George a cattleman from Cody, Wyo. “With this shift of finances, Congress was able to avoid the crisis created by the administration and keep FSIS inspectors in the plants where they belong. While cattlemen and women were disappointed Secretary Vilsack threw in the towel on his agency’s 107-year-old duty to provide federal food safety inspections, we sincerely thank Senators Blunt and Pryor for ensuring the nation’s food supply will not be limited by politics.”
Under the Federal Meat Inspection Act of 1906 and related legislation, all meat, poultry and egg products produced here in the United States or imported must be inspected by a federal food safety inspector and that service must be paid for by the federal government. Without the inspection, no product can be sold or shipped interstate.
“Had inspection been halted, this would have resulted in a backlog of animals, shortened supply of beef to market, higher prices and harm to the futures markets,” said George. “By the Secretary’s own estimates, this would have equated to $10 billion in production losses and $400 million in lost wages, only compounding the issues faced by ranchers dealing with the worst drought in fifty years.”
Under sequestration the FSIS was expected to take a total cut of $52.8 million, or 5 percent of its budget. In that event, furloughs would have been required of all 9,212 employees of the FSIS, including 8,136 meat inspectors and others on the front line such as lab technicians. The furloughs were expected to be taken one day per week between July and the end of the fiscal year in September.
Commercial Red Meat Production Down From Last Year
Commercial red meat production for the United States totaled 3.67 billion pounds in February, down 6 percent from the 3.91 billion pounds produced in February 2012.
Beef production, at 1.87 billion pounds, was 7 percent below the previous year. Cattle slaughter totaled 2.36 million head, down 8 percent from February 2012. The average live weight was up 13 pounds from the previous year, at 1,320 pounds.
Veal production totaled 9.0 million pounds, 9 percent below February a year ago. Calf slaughter totaled 59,600 head, down 1 percent from February 2012. The average live weight was down 18 pounds from last year, at 258 pounds.
Pork production totaled 1.78 billion pounds, down 6 percent from the previous year. Hog slaughter totaled 8.59 million head, down 5 percent from February 2012. The average live weight was down 1 pound from the previous year, at 277 pounds.
Lamb and mutton production, at 11.5 million pounds, was down 7 percent from February 2012. Sheep slaughter totaled 161,700 head, 2 percent below last year. The average live weight was 142 pounds, down 7 pounds from February a year ago.
January to February 2013 commercial red meat production was 8.0 billion pounds, down slightly from 2012. Accumulated beef production was up slightly from last year, veal was down 4 percent, pork was down 1 percent from last year, and lamb and mutton production was down 2 percent.
By State (Feb 2013 prod, % of Feb 2012)
Nebraska ......: 526.5 million pounds - 92%
Iowa .............: 501.4 million pounds - 94%
Kansas ........: 396.2 million pounds - 100%
Program Helps Growers Advance in Leadership
Seven corn farmers who are leaders in the industry underwent an extensive session in advanced leadership training this week in Washington, as part of the National Corn Growers Association Advanced Leadership program, co-sponsored by Syngenta. Taking part in the program are Martin Barbre (Ill.), Wesley Spurlock (Texas), Joel Grams (Neb.), Dean Taylor (Iowa), Keith Alverson (S.D.), Paul Herringshaw (Ohio), and H. Grant Troop (Pa.).
While in the nation's capital they underwent extensive media training and discussions with NCGA Washington staff about current and emerging issues affecting corn farmers. They also joined in activities surrounding National Agriculture Day, including the National Celebration of Agriculture Dinner, featuring U.S. Agriculture Secretary Tom Vilsack and key members of Congress.
"This has been a busy, but important, week in Washington," said program participant Martin Barbre, an Illinois grower who serves as NCGA's first vice president. "At a time when it is so important for our nation's farmers to be active and engaged leaders, sessions such as these give us the opportunity to build our knowledge and experience and have meaningful conversations with policymakers and influencers, so they can understand and appreciate our perspective."
Wrapping up its third year, this program aims to help develop top-notch state and national leadership that is empowered to share its skill sets within the industry and community. It builds upon the Leadership at Its Best Program that has helped develop corn industry leadership since 1986.
Brazilian Government, Unions Reach Agreement on Port Operations
Representatives of Brazil's government and union leaders reached an agreement Thursday to alter a recent decree governing port operations, averting a threatened strike.
"We have an agreement; there won't be a strike," said Paulo Pereira da Silva, president of the Forca Sindical federation of unions.
The unions had objected to new rules that would have let privately owned port owners and operators hire nonunion workers and let those ports operate under rules that would lower costs for exporters compared with the public ports.
Details of Thursday's agreement weren't immediately available.
A strike would have come at a particularly bad time. Brazil's ports are already a bottleneck, slowing exports of the recent bumper crop of soybeans and grains.
Unions held a six-hour strike on Feb. 22 that halted the movement of goods through the country's biggest port, Santos, and union leaders were planning a 24-hour strike Monday if their main demands weren't met.
The government issued the decree in early December. President Dilma Rousseff is promoting private investment in ports, roads, railways and airport to help improve the country's transportation infrastructure, reduce costs and make the economy more competitive.
New Skyraider™ insecticide/miticide receives EPA approval
Skyraider™ insecticide/miticide, manufactured by MANA, has received approval by the EPA for broad-spectrum control against soil and foliar insects on soybeans, cotton, potatoes and other crops.
New Skyraider is an optimized formulation of proven crop protection technology that includes two different modes of action. This advanced offering hosts an increased ratio of a pyrethroid to support rapid insect knockdown while delivering longer lasting residual, which is driven by the formulation’s neonicotinoid component.
Skyraider has unique attributes proven to perform equal to or better than the market leaders by delivering highly efficacious control of tough-to-manage pests like aphids, Lygus species, stink bugs and wireworms.
It provides both translaminar and systemic movement, which allows improved penetration and relocation of the active ingredients throughout the plant, including feeding sites on the underside of leaves.
“With this kind of systemic activity, Skyraider has a clear-cut advantage in controlling foliar insects, including aphids,” said Dave Rummel, MANA brand leader. “At recommended rates, it also controls mites, which several competitors don’t support as part of their insect control lineup.”
Extensive field trials have delivered high performance ratings for Skyraider in regard to efficacy and economic value in addition to performance advantages over several competitive products.
On potatoes, Rummel indicates that the Skyraider label includes wireworms and Colorado potato beetle, which are two pests that require growers to remain on constant high alert.
“Skyraider is a premier insecticide with differentiating performance advantages,” said Rummel. “We’re proud of this new MANA offering and its rapid acceptance as one of the most powerful pest control tools available to date. Pests can’t run or hide from Skyraider.”
Convenience in handling
The Skyraider formulation and packaging delivers simplified handling and preparation steps for growers and applicators prior to treatments in comparison to other insecticide inputs.
“The formulation is easy to use and offers a more optimized use rate while protecting the grower’s investment along with time savings,” Rummel added. “It also offers the convenience of one product for multiple crop uses.
“Skyraider will be a critical tool for growers who want protection from high levels of insect infestation. And, with two different modes of action in a single application, it’s a perfect fit in a complete insect management program.”
Wednesday, March 20, 2013
Wednesday March 20 Ag News
CUMING COUNTY 4-H BEEF PREVIEW
The 39th annual Cuming County 4-H Beef Preview will be held Saturday, April 13 at the Cuming County Fairgrounds in West Point. The show gives 4-H youth a chance to exhibit the progress of their beef projects. The show is sponsored by the Cuming County Livestock Feeders Association and University of Nebraska Lincoln Extension in Cuming County.
According to Extension Educator, Larry Howard, events at the preview show will include showmanship, breeding heifers, market heifers and market steers. Breeding classes will include Angus, Charolais, Chianina, Gelbvieh, Hereford, Limousin, Maine Anjou, Shorthorn and Simmental. There is also a class for commercial breeding heifers.
Jackie McKenney from Lincoln, Nebraska will be the judge of the show.
All projects must weigh-in and check-in on Saturday from 7:30-8:30 a.m. The show will begin at 10:00 a.m. on Saturday, April 14.
The show is open to 4-H members from Cuming, Burt, and Colfax, Dakota, Dodge, Stanton, Thurston, Washington, Wayne, Douglas and Sarpy counties.
For additional information, contact the Cuming County Extension office at 402/372-6006.
Smith and McIntyre Co-chair Bipartisan Congressional Rural Caucus
Congressman Adrian Smith (R-NE) and Congressman Mike McIntyre (D-NC) will serve as co-chairmen of the bipartisan Congressional Rural Caucus for the 113th Congress.
“Rural Americans need a strong voice in Congress to represent their interests, regardless of party or geography,” said Smith. “I look forward to continuing to serve as a co-chairman of the Congressional Rural Caucus, and am excited Congressman McIntyre will be working with me to raise awareness of and address the shared challenges of rural communities.”
McIntyre stated, “Rural communities, counties, and crossroads are the backbone of North Carolina. We must do all we can to help them thrive, create opportunity, and protect their wonderful way of life. The Congressional Rural Caucus is a voice in Congress for these issues, and I am honored to serve in this critical position.”
The bipartisan Congressional Rural Caucus provides a forum to find workable solutions to the unique issues facing rural Americans. The caucus will work to strengthen rural communities, help them prepare for the future, and jumpstart initiatives to rejuvenate rural communities struggling under today’s difficult economic conditions.
For more information on the Congressional Rural Caucus, please visit: http://ruralcaucus-adriansmith.house.gov/.
Farm Payments to be Cut By Budget Sequester
The U.S. government will trim payments to 350,000 farmers by about $152 million to comply with automatic spending cuts that took effect at the start of this month, Agriculture Secretary Tom Vilsack said on Tuesday.
According to Reuters, Vilsack said the money would come out of the $5 billion-a-year direct-payment subsidy, which is paid in the fall, to offset reductions due in three USDA programs that have already disbursed money to farmers.
During a speech to trade group officials, Vilsack said comparatively small amounts are due for each farmer, so it would be more efficient to pro-rate the direct-payment subsidy than to ask the farmers for a refund on checks already cut.
Affected are the Milk Income Loss Contract subsidy to dairy farmers, the Supplemental Revenue Assistance program and the Noninsured Assistance Program.
USDA Adds Pork to Export Reports, Requests DDG Comments
Beginning this week, all exporters of U.S. pork will begin reporting weekly export sales to the U.S. Department of Agriculture's Foreign Agricultural Service. The data will allow USDA to issue weekly export sales reports to the public, allowing for information on the total volume of pork export sales and shipments to be available within two weeks of the activity, rather than the two month period customary to exports as reported by the U.S. Bureau of the Census. More frequent reporting will improve market transparency and enable the pork commodity market to better adjust to changing export activity.
The Agricultural Trade Act of 1978 requires the reporting of exports of certain commodities and gives the Secretary of Agriculture the authority to include others. Recent amendments to that act mandated the addition of pork as a commodity for which export reporting is required. A final rule published in today's Federal Register amends the Export Sales Reporting requirements to add pork to the list of commodities covered by the program, including wheat and wheat flour, feed grains, oilseeds, cotton, rice, cattle hides and skins, and beef.
Exporters will report the quantity, destination, and marketing year of all pork export sales totaling one metric ton or greater, including certain changes in previously reported sales. Exports of U.S. pork have nearly doubled from fiscal years 2007 to 2012. In fiscal year 2012, exports of U.S. pork and products reached more than 2.2 million tons.
In addition, a proposed rule was also published in today’s Federal Register seeking public comment on the addition of distillers dried grain (DDG) as a reportable commodity under the ESR requirements.
Novozymes Applauds Senate Biofuels Vote
For the third time, the Senate voted down an attempt to prevent the Department of Defense from using renewable fuels for its transportation needs, allowing the military to become less reliant on foreign oil. Novozymes, the world leader in converting biomass – from corn stover and energy crops to household trash – into biofuels, praised the United Sates Senate today for continuing its support of the Navy’s advanced biofuels program. Today’s defeated amendment was offered by Senator Pat Toomey (R –PA).
“Every day we import oil, we’re putting our troops, families and country at needless risk. We can reduce that risk with a secure energy supply, including renewable fuels,” Adam Monroe, President of Novozymes North America, said. “Imagine how much safer our troops and country will be when we’re making more fuel at home, instead of getting it from abroad. Our military understands its needs. Renewables are domestically-made and being used now. Let’s follow today’s bipartisan example in the Senate and let our military move forward getting its energy – and America another way to improve its security.”
Rising jet fuel prices could cost the military an additional $1 billion in 2013, according to the Biotechnology Industry Association. In November 2012, the Senate voted twice to keep the DOD’s biofuel program moving forward:
- November 28th, 2012 – Senator Mark Udall’s amendment to allow the Department of Defense (DOD) to purchase biofuels passed the Senate.
- November 29th, 2012 – Senator Kay Hagan’s amendment to allow the DOD to fund advanced biofuel projects passed the Senate.
In May 2012, Novozymes inaugurated the largest enzyme plant dedicated to biofuels in the United States with the opening of its advanced manufacturing plant in Blair, Nebraska. Funded with $200 million in private investment, the plant created 100 career positions and 400 construction jobs, and specializes in enzymes for both the conventional and advanced biofuel markets.
To date, domestic, clean and renewable transportation fuel production and investment has:
- Created 400,000 good paying jobs and careers;
- Laid the groundwork for 800,000 jobs for advanced biofuels by 2022;
- Generated $40 billion in GDP in 2012;
- Helped reduce foreign oil imports by 25 percent.
Ethanol Supply Hits Nearly 4-Month Low
U.S. ethanol supply was drawn down 200,000 barrels (bbl) to 18.5 million bbl, a nearly four-month low, during the week-ended March 15, the Energy Information Administration reported on Wednesday, with regional supply declines occurring in the Midwest and along the East and Gulf coasts while West Coast inventory jumped.
The decline in domestic supply comes despite a 12,000-barrel-per-day (bpd) increase in output at U.S. ethanol plants to 809,000 bpd, a three-week high. Domestic output is down 84,000 bpd, or 9.4%, compared with the year-ago production pace and 104,000 bpd or 11.4% compared with the production rate for the corresponding week in 2011. During the four weeks ended March 15, domestic ethanol production averaged 806,000 bpd, down 91,000 bpd, or 10.2%, versus the comparable year-ago output rate.
At 18.5 million bbl, domestic ethanol supply is down a sharp 4.2 million bbl or 18.5% from the same week in 2012.
Imports returned for the first time in three weeks, with the 27,000 bpd supply from foreign sources all received along the West Coast.
Implied demand for ethanol fell during the week-ended March 15, with refiner and blender net inputs sliding 15,000 bpd to 810,000 bpd. The four-week average through mid-March is 814,000 bpd, up 3,000 bpd compared with 2012.
Gasoline supplied to market tumbled 303,000 bpd to 8.324 million bpd, a two-month low. During the four weeks through March 15, implied demand averaged 8.478 million bpd, up 123,000 bpd or 1.5% versus the comparable year-ago period.
Expressed as a percentage of daily gasoline demand, daily ethanol production was 9.72% — the highest since the first week of the year.
On the co-products side, ethanol producers were using 12.266 million bushels of corn to produce ethanol and 90,287 metric tons of livestock feed, 80,491 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 4.21 million pounds of corn oil daily.
Top Economist Predicts A Tighter Farm Safety Net That Cements Crop Insurance
Former USDA Chief Economist Keith Collins, Ph.D., predicts a smaller farm safety net in the future, but one that cements crop insurance. "We will see a greater evolution in the reliance on crop insurance in 2013," Collins said. Collins stated that one only needs to look at the past few years to recognize the important role crop insurance plays in helping farmers hit by Mother Nature. “Crop insurance has prevented lots of farm stress that would have occurred and as a result, farmers are paying their bills,” Collins said.
Collins made his remarks during the Capitol Hill Ag Day forum, “Farm to Fork Politics: An Insider's Look at the Year Ahead.”
Other panelists included J.B. Penn, chief economist at Deere & Company and B. Hudson Riehle, senior vice president, National Restaurant Association. During his remarks, Penn addressed supply and demand, noting that growing population, especially in urban areas, will continue to put pressure on agriculture. By 2050, more than 70 percent of the world population will live in urban areas, Penn predicted. “On the supply side, global agriculture struggles to keep pace,” Penn said. “The 2013 outlook is very weather dependent.”
Penn also noted an increase in regional competition. “Overall, we are seeing traditional exporters losing market shares and we have more competitors.”
Riehle shared some insights from the restaurant industry, predicting an increase in business in 2013. “Americans now are more interested in food (and where it comes from) than at any other point,” Riehle said.
ANNUAL MEETING EMPHASIZES OPPORTUNITIES IN GLOBAL MARKETPLACE
Paying respect to the contributions its farmer-owners make to the global marketplace, Dairy Farmers of America’s 15th Annual Meeting explored the diverse ways the Cooperative and dairy industry are preparing for the future. Nearly 1,500 members and guests convened in Kansas City for the event this week.
For generations, DFA members have been feeding the nation, and now, as the Cooperative expands its footprint in the global marketplace, the world. During the meeting, speakers discussed how DFA and the industry are strengthening their position in the global marketplace to create a stronger and more innovative Cooperative for generations to come.
“As a national milk marketing cooperative, DFA is delivering its members’ high-quality milk around the globe through dairy ingredients, its own branded products and those of its customers,” said Randy Mooney, chairman of DFA’s Board of Directors. “From this land, we are all making a difference. Members are producing nature’s most perfect food. From our plants and our customers’ plants, that milk is being processed into cheese, butter, ice cream, yogurt, ingredients and more. Through that process, we are feeding the world.”
The meeting kicked off with the chairman’s report, delivered by Mooney, who operates a dairy in Rogersville, Mo. He focused on the steps DFA has taken to seize opportunities in the global marketplace, as well as its strategy to capture these prospects in the future. Mooney also discussed issues, such as animal activism, that are affecting farmers every day at home.
An overview of the Cooperative’s business was delivered by President and Chief Executive Officer Rick Smith. His report also explored how the Cooperative has evolved during the past several years and highlighted ongoing efforts to better serve and provide value to its members.
“As a dairy farmer-owned Cooperative, our mission is to bring value to members,” Smith said. “One way to do this is to participate in value-added opportunities for dairy, both domestically and globally. This supports our goal and obligation to help feed people around the world, and meet the unmet demand for healthy and nutritious dairy products worldwide.”
Special guests and additional highlights of the meeting program included:
· A panel discussion, “World of Opportunity,” featuring Tom Suber, president, U.S. Dairy Export Council; Jay Waldvogel, senior vice president of strategy and international development, DFA; and Larry Jensen, president, Leprino Foods
· “Feeding 9 Billion People — Maintaining the Planet,” a presentation by Jason Clay, senior vice president of market transformation, World Wildlife Fund
· An update on National Milk Producers Federation’s work for the dairy industry by Jerry Kozak, president and chief executive officer
· An overview of the latest dairy promotion activities by Tom Gallagher, chief executive officer of Dairy Management Inc.
The Cooperative’s Annual Banquet brought a host of recognitions, including the 2013 Members of Distinction — one member farm from each of DFA’s seven regional Areas that is excelling on their operations, in their communities and in the industry.
The 2013 Members of Distinction are: Krause Holsteins Inc., Buffalo, Minn.; Ayers Farms, Perrysville, Ohio; J.R. Hall Farms, Rigby, Idaho; Piper Farm LLC, Embden, Maine; Huffard Dairy Farms, Crockett, Va.; Bentwood Dairy, Waco, Texas; and Van Warmerdam Dairy, Galt, Calif.
In addition, outgoing Board directors were recognized for their contributions to DFA during the Cooperative’s Annual Banquet. They are Mickey Childers, Somerville, Ala., Southeast Area; Larry Frederick, Baring, Mo., Central Area; Lew Gardner, Galeton, Pa., Northeast Area; Les Hardesty, Greeley, Colo., Mountain Area; Pete Mensonides, Turlock, Calif., Western Area; Ellis Roberts, Preston, Idaho, Mountain Area; and Rob Wonderlich, Ollie, Iowa, Central Area.
Winners of the 2013 DFA Cares Foundation Scholarship were announced at the banquet. Scholarships are awarded to outstanding students pursuing a career in the dairy industry. This year’s 29 recipients will receive a combined total of $28,000 toward their undergraduate and graduate level studies.
Also at the banquet, guests learned about the new Be More Employee Recognition Program, which encourages employees to demonstrate DFA’s core values and reinforce the meaning of “More Cooperative.” The inaugural group of 11 Be More Award winners was honored among their peers and the Cooperative’s farmer leadership.
Each year the Annual Meeting concludes with the Resolutions process, which brings together 250 elected delegates from across the nation to vote on a slate of issues that guide the policy position and business activities of the Cooperative for the coming year.
JPMorgan, MF Global Trustee Reach Agreement
(AP) — JPMorgan Chase has agreed to a deal that will return $546 million to former customers of trading firm MF Global Holdings Ltd., which collapsed in 2011 with $1.6 billion missing from its accounts.
MF Global failed in October after a calamitous bet on European debt spooked its investors, partners and clients. The bankruptcy was the eighth-largest in the U.S. and the largest on Wall Street since the 2008 collapse of Lehman Brothers. Much of the missing money belonged to farmers, ranchers and other business owners who used MF Global to reduce their risks from fluctuating prices of commodities such as corn and wheat. A House panel has said credit rating agencies and federal regulators contributed to MF Global's collapse. But it pinned most of the blame on risky strategies by ex-CEO Jon Corzine, the former New Jersey governor.
JPMorgan held MF Global funds in several accounts and also processed the firm's securities trades. The trustee tasked with getting customers' money back, James W. Giddens, threatened to sue the New York bank if it didn't return money that was transferred to the bank from MF Global. By June 2012, JPMorgan had returned $608 million to the firm.
Under a settlement agreement filed Tuesday in Manhattan bankruptcy court, JPMorgan Chase has agreed to pay $100 million to reimburse customers and will relinquish claims on $417 million that it previously returned. JPMorgan also will return over $29 million that it is holding as security on an MF Global credit line. The recovered money will eventually be passed along to customers.
The bank doesn't comment on the reserves it sets aside to pay for specific legal cases. But it said the settlement would not have a material impact on its results.
Bank spokeswoman Jennifer Zuccarelli said the bank was pleased to reach the settlement, which would help restore funds to MF Global's customers.
"As we have said before, JPMorgan worked to assist our client in a responsible manner under very challenging circumstances," she added.
The deal must be approved by Bankruptcy Court Judge Martin Glenn and District Court Judge Victor Marrero.
The 39th annual Cuming County 4-H Beef Preview will be held Saturday, April 13 at the Cuming County Fairgrounds in West Point. The show gives 4-H youth a chance to exhibit the progress of their beef projects. The show is sponsored by the Cuming County Livestock Feeders Association and University of Nebraska Lincoln Extension in Cuming County.
According to Extension Educator, Larry Howard, events at the preview show will include showmanship, breeding heifers, market heifers and market steers. Breeding classes will include Angus, Charolais, Chianina, Gelbvieh, Hereford, Limousin, Maine Anjou, Shorthorn and Simmental. There is also a class for commercial breeding heifers.
Jackie McKenney from Lincoln, Nebraska will be the judge of the show.
All projects must weigh-in and check-in on Saturday from 7:30-8:30 a.m. The show will begin at 10:00 a.m. on Saturday, April 14.
The show is open to 4-H members from Cuming, Burt, and Colfax, Dakota, Dodge, Stanton, Thurston, Washington, Wayne, Douglas and Sarpy counties.
For additional information, contact the Cuming County Extension office at 402/372-6006.
Smith and McIntyre Co-chair Bipartisan Congressional Rural Caucus
Congressman Adrian Smith (R-NE) and Congressman Mike McIntyre (D-NC) will serve as co-chairmen of the bipartisan Congressional Rural Caucus for the 113th Congress.
“Rural Americans need a strong voice in Congress to represent their interests, regardless of party or geography,” said Smith. “I look forward to continuing to serve as a co-chairman of the Congressional Rural Caucus, and am excited Congressman McIntyre will be working with me to raise awareness of and address the shared challenges of rural communities.”
McIntyre stated, “Rural communities, counties, and crossroads are the backbone of North Carolina. We must do all we can to help them thrive, create opportunity, and protect their wonderful way of life. The Congressional Rural Caucus is a voice in Congress for these issues, and I am honored to serve in this critical position.”
The bipartisan Congressional Rural Caucus provides a forum to find workable solutions to the unique issues facing rural Americans. The caucus will work to strengthen rural communities, help them prepare for the future, and jumpstart initiatives to rejuvenate rural communities struggling under today’s difficult economic conditions.
For more information on the Congressional Rural Caucus, please visit: http://ruralcaucus-adriansmith.house.gov/.
Farm Payments to be Cut By Budget Sequester
The U.S. government will trim payments to 350,000 farmers by about $152 million to comply with automatic spending cuts that took effect at the start of this month, Agriculture Secretary Tom Vilsack said on Tuesday.
According to Reuters, Vilsack said the money would come out of the $5 billion-a-year direct-payment subsidy, which is paid in the fall, to offset reductions due in three USDA programs that have already disbursed money to farmers.
During a speech to trade group officials, Vilsack said comparatively small amounts are due for each farmer, so it would be more efficient to pro-rate the direct-payment subsidy than to ask the farmers for a refund on checks already cut.
Affected are the Milk Income Loss Contract subsidy to dairy farmers, the Supplemental Revenue Assistance program and the Noninsured Assistance Program.
USDA Adds Pork to Export Reports, Requests DDG Comments
Beginning this week, all exporters of U.S. pork will begin reporting weekly export sales to the U.S. Department of Agriculture's Foreign Agricultural Service. The data will allow USDA to issue weekly export sales reports to the public, allowing for information on the total volume of pork export sales and shipments to be available within two weeks of the activity, rather than the two month period customary to exports as reported by the U.S. Bureau of the Census. More frequent reporting will improve market transparency and enable the pork commodity market to better adjust to changing export activity.
The Agricultural Trade Act of 1978 requires the reporting of exports of certain commodities and gives the Secretary of Agriculture the authority to include others. Recent amendments to that act mandated the addition of pork as a commodity for which export reporting is required. A final rule published in today's Federal Register amends the Export Sales Reporting requirements to add pork to the list of commodities covered by the program, including wheat and wheat flour, feed grains, oilseeds, cotton, rice, cattle hides and skins, and beef.
Exporters will report the quantity, destination, and marketing year of all pork export sales totaling one metric ton or greater, including certain changes in previously reported sales. Exports of U.S. pork have nearly doubled from fiscal years 2007 to 2012. In fiscal year 2012, exports of U.S. pork and products reached more than 2.2 million tons.
In addition, a proposed rule was also published in today’s Federal Register seeking public comment on the addition of distillers dried grain (DDG) as a reportable commodity under the ESR requirements.
Novozymes Applauds Senate Biofuels Vote
For the third time, the Senate voted down an attempt to prevent the Department of Defense from using renewable fuels for its transportation needs, allowing the military to become less reliant on foreign oil. Novozymes, the world leader in converting biomass – from corn stover and energy crops to household trash – into biofuels, praised the United Sates Senate today for continuing its support of the Navy’s advanced biofuels program. Today’s defeated amendment was offered by Senator Pat Toomey (R –PA).
“Every day we import oil, we’re putting our troops, families and country at needless risk. We can reduce that risk with a secure energy supply, including renewable fuels,” Adam Monroe, President of Novozymes North America, said. “Imagine how much safer our troops and country will be when we’re making more fuel at home, instead of getting it from abroad. Our military understands its needs. Renewables are domestically-made and being used now. Let’s follow today’s bipartisan example in the Senate and let our military move forward getting its energy – and America another way to improve its security.”
Rising jet fuel prices could cost the military an additional $1 billion in 2013, according to the Biotechnology Industry Association. In November 2012, the Senate voted twice to keep the DOD’s biofuel program moving forward:
- November 28th, 2012 – Senator Mark Udall’s amendment to allow the Department of Defense (DOD) to purchase biofuels passed the Senate.
- November 29th, 2012 – Senator Kay Hagan’s amendment to allow the DOD to fund advanced biofuel projects passed the Senate.
In May 2012, Novozymes inaugurated the largest enzyme plant dedicated to biofuels in the United States with the opening of its advanced manufacturing plant in Blair, Nebraska. Funded with $200 million in private investment, the plant created 100 career positions and 400 construction jobs, and specializes in enzymes for both the conventional and advanced biofuel markets.
To date, domestic, clean and renewable transportation fuel production and investment has:
- Created 400,000 good paying jobs and careers;
- Laid the groundwork for 800,000 jobs for advanced biofuels by 2022;
- Generated $40 billion in GDP in 2012;
- Helped reduce foreign oil imports by 25 percent.
Ethanol Supply Hits Nearly 4-Month Low
U.S. ethanol supply was drawn down 200,000 barrels (bbl) to 18.5 million bbl, a nearly four-month low, during the week-ended March 15, the Energy Information Administration reported on Wednesday, with regional supply declines occurring in the Midwest and along the East and Gulf coasts while West Coast inventory jumped.
The decline in domestic supply comes despite a 12,000-barrel-per-day (bpd) increase in output at U.S. ethanol plants to 809,000 bpd, a three-week high. Domestic output is down 84,000 bpd, or 9.4%, compared with the year-ago production pace and 104,000 bpd or 11.4% compared with the production rate for the corresponding week in 2011. During the four weeks ended March 15, domestic ethanol production averaged 806,000 bpd, down 91,000 bpd, or 10.2%, versus the comparable year-ago output rate.
At 18.5 million bbl, domestic ethanol supply is down a sharp 4.2 million bbl or 18.5% from the same week in 2012.
Imports returned for the first time in three weeks, with the 27,000 bpd supply from foreign sources all received along the West Coast.
Implied demand for ethanol fell during the week-ended March 15, with refiner and blender net inputs sliding 15,000 bpd to 810,000 bpd. The four-week average through mid-March is 814,000 bpd, up 3,000 bpd compared with 2012.
Gasoline supplied to market tumbled 303,000 bpd to 8.324 million bpd, a two-month low. During the four weeks through March 15, implied demand averaged 8.478 million bpd, up 123,000 bpd or 1.5% versus the comparable year-ago period.
Expressed as a percentage of daily gasoline demand, daily ethanol production was 9.72% — the highest since the first week of the year.
On the co-products side, ethanol producers were using 12.266 million bushels of corn to produce ethanol and 90,287 metric tons of livestock feed, 80,491 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 4.21 million pounds of corn oil daily.
Top Economist Predicts A Tighter Farm Safety Net That Cements Crop Insurance
Former USDA Chief Economist Keith Collins, Ph.D., predicts a smaller farm safety net in the future, but one that cements crop insurance. "We will see a greater evolution in the reliance on crop insurance in 2013," Collins said. Collins stated that one only needs to look at the past few years to recognize the important role crop insurance plays in helping farmers hit by Mother Nature. “Crop insurance has prevented lots of farm stress that would have occurred and as a result, farmers are paying their bills,” Collins said.
Collins made his remarks during the Capitol Hill Ag Day forum, “Farm to Fork Politics: An Insider's Look at the Year Ahead.”
Other panelists included J.B. Penn, chief economist at Deere & Company and B. Hudson Riehle, senior vice president, National Restaurant Association. During his remarks, Penn addressed supply and demand, noting that growing population, especially in urban areas, will continue to put pressure on agriculture. By 2050, more than 70 percent of the world population will live in urban areas, Penn predicted. “On the supply side, global agriculture struggles to keep pace,” Penn said. “The 2013 outlook is very weather dependent.”
Penn also noted an increase in regional competition. “Overall, we are seeing traditional exporters losing market shares and we have more competitors.”
Riehle shared some insights from the restaurant industry, predicting an increase in business in 2013. “Americans now are more interested in food (and where it comes from) than at any other point,” Riehle said.
ANNUAL MEETING EMPHASIZES OPPORTUNITIES IN GLOBAL MARKETPLACE
Paying respect to the contributions its farmer-owners make to the global marketplace, Dairy Farmers of America’s 15th Annual Meeting explored the diverse ways the Cooperative and dairy industry are preparing for the future. Nearly 1,500 members and guests convened in Kansas City for the event this week.
For generations, DFA members have been feeding the nation, and now, as the Cooperative expands its footprint in the global marketplace, the world. During the meeting, speakers discussed how DFA and the industry are strengthening their position in the global marketplace to create a stronger and more innovative Cooperative for generations to come.
“As a national milk marketing cooperative, DFA is delivering its members’ high-quality milk around the globe through dairy ingredients, its own branded products and those of its customers,” said Randy Mooney, chairman of DFA’s Board of Directors. “From this land, we are all making a difference. Members are producing nature’s most perfect food. From our plants and our customers’ plants, that milk is being processed into cheese, butter, ice cream, yogurt, ingredients and more. Through that process, we are feeding the world.”
The meeting kicked off with the chairman’s report, delivered by Mooney, who operates a dairy in Rogersville, Mo. He focused on the steps DFA has taken to seize opportunities in the global marketplace, as well as its strategy to capture these prospects in the future. Mooney also discussed issues, such as animal activism, that are affecting farmers every day at home.
An overview of the Cooperative’s business was delivered by President and Chief Executive Officer Rick Smith. His report also explored how the Cooperative has evolved during the past several years and highlighted ongoing efforts to better serve and provide value to its members.
“As a dairy farmer-owned Cooperative, our mission is to bring value to members,” Smith said. “One way to do this is to participate in value-added opportunities for dairy, both domestically and globally. This supports our goal and obligation to help feed people around the world, and meet the unmet demand for healthy and nutritious dairy products worldwide.”
Special guests and additional highlights of the meeting program included:
· A panel discussion, “World of Opportunity,” featuring Tom Suber, president, U.S. Dairy Export Council; Jay Waldvogel, senior vice president of strategy and international development, DFA; and Larry Jensen, president, Leprino Foods
· “Feeding 9 Billion People — Maintaining the Planet,” a presentation by Jason Clay, senior vice president of market transformation, World Wildlife Fund
· An update on National Milk Producers Federation’s work for the dairy industry by Jerry Kozak, president and chief executive officer
· An overview of the latest dairy promotion activities by Tom Gallagher, chief executive officer of Dairy Management Inc.
The Cooperative’s Annual Banquet brought a host of recognitions, including the 2013 Members of Distinction — one member farm from each of DFA’s seven regional Areas that is excelling on their operations, in their communities and in the industry.
The 2013 Members of Distinction are: Krause Holsteins Inc., Buffalo, Minn.; Ayers Farms, Perrysville, Ohio; J.R. Hall Farms, Rigby, Idaho; Piper Farm LLC, Embden, Maine; Huffard Dairy Farms, Crockett, Va.; Bentwood Dairy, Waco, Texas; and Van Warmerdam Dairy, Galt, Calif.
In addition, outgoing Board directors were recognized for their contributions to DFA during the Cooperative’s Annual Banquet. They are Mickey Childers, Somerville, Ala., Southeast Area; Larry Frederick, Baring, Mo., Central Area; Lew Gardner, Galeton, Pa., Northeast Area; Les Hardesty, Greeley, Colo., Mountain Area; Pete Mensonides, Turlock, Calif., Western Area; Ellis Roberts, Preston, Idaho, Mountain Area; and Rob Wonderlich, Ollie, Iowa, Central Area.
Winners of the 2013 DFA Cares Foundation Scholarship were announced at the banquet. Scholarships are awarded to outstanding students pursuing a career in the dairy industry. This year’s 29 recipients will receive a combined total of $28,000 toward their undergraduate and graduate level studies.
Also at the banquet, guests learned about the new Be More Employee Recognition Program, which encourages employees to demonstrate DFA’s core values and reinforce the meaning of “More Cooperative.” The inaugural group of 11 Be More Award winners was honored among their peers and the Cooperative’s farmer leadership.
Each year the Annual Meeting concludes with the Resolutions process, which brings together 250 elected delegates from across the nation to vote on a slate of issues that guide the policy position and business activities of the Cooperative for the coming year.
JPMorgan, MF Global Trustee Reach Agreement
(AP) — JPMorgan Chase has agreed to a deal that will return $546 million to former customers of trading firm MF Global Holdings Ltd., which collapsed in 2011 with $1.6 billion missing from its accounts.
MF Global failed in October after a calamitous bet on European debt spooked its investors, partners and clients. The bankruptcy was the eighth-largest in the U.S. and the largest on Wall Street since the 2008 collapse of Lehman Brothers. Much of the missing money belonged to farmers, ranchers and other business owners who used MF Global to reduce their risks from fluctuating prices of commodities such as corn and wheat. A House panel has said credit rating agencies and federal regulators contributed to MF Global's collapse. But it pinned most of the blame on risky strategies by ex-CEO Jon Corzine, the former New Jersey governor.
JPMorgan held MF Global funds in several accounts and also processed the firm's securities trades. The trustee tasked with getting customers' money back, James W. Giddens, threatened to sue the New York bank if it didn't return money that was transferred to the bank from MF Global. By June 2012, JPMorgan had returned $608 million to the firm.
Under a settlement agreement filed Tuesday in Manhattan bankruptcy court, JPMorgan Chase has agreed to pay $100 million to reimburse customers and will relinquish claims on $417 million that it previously returned. JPMorgan also will return over $29 million that it is holding as security on an MF Global credit line. The recovered money will eventually be passed along to customers.
The bank doesn't comment on the reserves it sets aside to pay for specific legal cases. But it said the settlement would not have a material impact on its results.
Bank spokeswoman Jennifer Zuccarelli said the bank was pleased to reach the settlement, which would help restore funds to MF Global's customers.
"As we have said before, JPMorgan worked to assist our client in a responsible manner under very challenging circumstances," she added.
The deal must be approved by Bankruptcy Court Judge Martin Glenn and District Court Judge Victor Marrero.
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