Johanns Statement on President Obama’s Address
U.S. Sen. Mike Johanns (R-Neb.) today issued the following statement on President Obama’s State of the Union Address:
"President Obama talked a lot about creating jobs and expanding the middle class - goals shared by both parties - but actions speak louder than words. The same big-government philosophy of the last five years won’t get us where we need to be. Big brother doesn't create jobs; it creates red tape and debt. We saw it with the so-called stimulus and we've seen it with Obamacare.
“Simply put, the government needs to empower Americans and their employers by getting out of their way. That's how our nation has overcome enormous challenges in the past and it's how we will in the future.
“Our focus should be on lowering taxes, decreasing burdensome government regulations, promoting trade and reducing our nation's debt. This can only be achieved by working together. Advancing a personal agenda through executive fiat ignores the will of the American people, who elect Members of Congress to represent their ideals through the legislative process. If the President reaches across the aisle and works with us instead of going it alone, we can leave future generations a stronger union."
Smith Disappointed by State of the Union Speech
Congressman Adrian Smith (R-NE) said he was “disappointed” by President Obama’s State of the Union address to a joint session of Congress on January 28, 2014.
“Tonight’s speech was an opportunity for President Obama to change course and begin working with members of both parties on an agenda to put America on a better path,” said Smith. “I am disappointed the President continues to stand by the same tired, government-heavy policies, such as his disastrous health care law, which clearly are failing the American people.
“I am particularly concerned by the President’s plans to bypass Congress through executive actions and new regulations. In a divided government, no one can expect to get everything they want. The President should respect, rather than undermine, the checks and balances established by the founders of our nation in the Constitution.”
Corn Growers Respond to State of Union Address in Calling for Action
The following is a statement from National Corn Growers President Martin Barbre on President Barack Obama’s 2014 State of the Union Address:
“It was great to hear President Obama talk about the importance of an ‘all-of-the-above’ energy policy. And you can’t have such a policy without biofuels. So, we call on his Administration to back away from its irresponsible proposal to reduce the Renewable Fuel Standard, a program that has done much to promote energy independence, restore jobs in rural America, and clear the air.
“Likewise, we join the President in calling for a ‘year of action’ – starting with the immediate passage and signing of the 2014 farm bill that just came out of conference committee this week. It will help feed hungry Americans and provide needed stability to American agriculture. And then, Congress can rebuild our sorely outdated waterway infrastructure and move Trade Promotion Authority forward, as the President requested. There's plenty to do in a ‘year of action’ that will help our economy recover.”
ASA Draws Attention to Farm Bill, Infrastructure, Biodiesel and Trade in State of the Union Response
Responding to President Barack Obama’s State of the Union address this evening, American Soybean Association President and Iowa farmer Ray Gaesser took the opportunity to highlight several of the association’s priorities and how they compare and contrast with the plans laid out by the President.
“A common theme in tonight’s State of the Union address from the President was the concept of finding ways where Republicans and Democrats can work together; policies and priorities on which the two parties share at least some common ground. We are happy to point out that the President need look no further in that effort than the Agricultural Act of 2014 on which the House of Representatives will vote tomorrow,” said Gaesser. “The farm bill is the product of more than three years of collaborative work between Agriculture Committee Chairwoman Stabenow and Chairman Lucas and Ranking Members Cochran and Peterson, and represents a bipartisan and bicameral step toward legislation that works not only for farmers and rural Americans, but for our suburban and urban neighbors. As we urge the House and Senate to pass the bill, we also urge President Obama to embrace the farm bill as an example of how both parties can work together to benefit all Americans.
“The President also mentioned several plans designed to create jobs and put Americans to work. While the agricultural community and its related industries put more than 23 million Americans to work every day, there are specific initiatives within our industry that can create even more jobs right away. One is the pair of waterways infrastructure bills passed by the House and Senate and currently in conference. These bills provide critical investment in the locks, dams, river channels and ports that farmers need to move their products to market. We thank the President for mentioning these bills specifically. They are in lock step with the Fix it First initiatives he outlined in last year’s State of the Union, and we encourage Congress to move forward with the conference committee and pass a bill on for the President’s signature.
“The second job creator that the soybean industry in particular can contribute is from the burgeoning biodiesel sector. Biodiesel—the majority of which is made from American soybean oil—creates and supports more than 62,000 jobs, and while the President repeatedly cites a desire to pursue his ‘all of the above’ energy strategy, the policies of his administration tell a different story. The EPA has proposed a potentially devastating cut in the amount of renewable, clean-burning, American biodiesel to be produced under the Renewable Fuel Standard for 2014 and 2015. The levels proposed would stifle the growth of biodiesel, a fast-growing industry capable of producing nearly 2 billion gallons annually. If the President is truly committed to all energy options, we encourage him to recognize what soybean farmers already know: biodiesel is a viable and available alternative that helps reduce our dependence on foreign oil, lower greenhouse gas emissions and create jobs.
“Finally, the President has repeatedly emphasized his desire to expand our nation’s trading relationships with both new and existing foreign partners, and tonight he noted our record farm exports in his opening remarks. As our nation’s leading farm export, trade is vital to the success of soybean farmers, and we applaud this emphasis from the President. Trade, and agricultural trade specifically, supports more than a million jobs here at home. Trade agreements, like the Transatlantic Trade and Investment Partnership with the European Union and the Trans-Pacific Partnership, into which Japan is being considered for admission, hold great promise for the soybean industry, and we commend the President for recognizing both in his remarks, but also note that these partnerships function only if they are established in such a way that takes into account the nature of our domestic industry and the modern methods and tools with which we farm.
“We certainly echo the President’s call to work together, but we remind him that the issues championed by soybean farmers, including the farm bill, trade, infrastructure and biodiesel, are ones that require—and thankfully enjoy—bipartisan and bicameral support. American agriculture has always been about all of us; Republicans and Democrats, urban and rural, working together to meet the country’s needs. We call on the President, on the House and on the Senate to mirror that cooperation and work with farmers on these and other key issues in the year to come.”
NFU Responds to State of the Union Address
National Farmers Union (NFU) President Roger Johnson issued the following statement in response to President Obama’s State of the Union address:
“NFU is encouraged by the president’s commitment to our country’s energy future. Passage of the farm bill conference report, with an investment of $900 million in renewable energy, will take the initial step toward reaching the president’s goal. As the president said, ‘climate change is a fact,’ and America’s farmers and ranchers are positioned to be a part of the solution.
“The president placed emphasis on bringing jobs home to America, and ‘Made in the USA’ goods. Family farmers and ranchers, too, are proud of the fruits of their labor, which is why we stand up for consumers by supporting Country-of-Origin Labeling (COOL).
“Fair trade is important to family farmers, ranchers and rural communities, and I hope the president changes the United States’ approach to negotiating trade deals. We must deal with systemic issues, such as currency manipulation, and net a strategic goal of reducing our enormous trade deficits, which directly harm U.S. economic growth and kill too many American jobs.
“Immigration reform is critical to farmers and ranchers across the country. I hope Congress takes the president’s sentiments to heart and makes comprehensive immigration reform its next priority. This ought to be a priority for liberals, moderates and conservatives alike, as it will reduce the deficit by $1 trillion dollars in two decades.
“The president’s message tonight is that we are ‘ready for a year of action,’ and passing the farm bill would be a great start. NFU will continue to work with the administration and Congress to ensure that the next farm bill is passed and effectively implemented."
National Grange President says Obama touts willingness to 'overstep' Presidential Authority
National Grange President Edward L. Luttrell, on Tuesday evening, reacted to President Barack Obama's fifth State of the Union Address, saying "this President has overstepped the authority provided to the office by the Constitution, and tonight he presented a platform that runs in many ways in direct opposition to fundamental principles of our democratic republic."
The Grange, America's oldest standing agriculture advocacy organization, has since its founding in 1867 been a nonpartisan voice for rural Americans and farmers.
"The Grange's structure is similar to that established by America's forefathers. Delegates represent the members of their state and from the concerns of those members and their own conscience, determine our policy, our laws. The president does not make them but instead carries out the will of the people," Luttrell said. "Maybe Mr. Obama should walk across Pennsylvania Avenue, through Lafayette Square and to our Grange Headquarters to learn what the role of a president is rather than tell lawmakers that he alone will attempt to solve problems without their consent. Mr. Obama, you are welcome anytime at a Grange meeting - all of which are conducted in nonpartisan fashion and tolerate open debate - where we teach young and old about their role in our democracy, and we would be happy to the roles of citizens and elected officials in our government."
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
Wednesday, January 29, 2014
Tuesday, January 28, 2014
Tuesday January 28 Ag News
STATE VETERINARIAN REMINDS PRODUCERS OF REPORTING REQUIREMENTS FOR CATTLE THAT TEST POSITIVE FOR TRICHOMONIASIS
As cattle producers conduct breeding soundness and Trichomoniasis testing this year, State Veterinarian Dr. Dennis Hughes would like to remind producers of their responsibilities, if they have a positive Trichomoniasis diagnosis within their herd.
According to Hughes, LB 423 was passed last spring and took effect in September. The statute has some specific reporting requirements for producers who have a positive Trichomoniasis diagnosis within their herd, including:
1. The cattle producer or his or her veterinarian must report any positive Trichomoniasis diagnosis to NDA within five business days from knowledge of the formal diagnosis.
2. After knowledge of a formal diagnosis, the cattle producer will have 14 days to notify their neighbors of the diagnosis. Neighbor means adjacent landowners or land managers, with land capable of maintaining livestock susceptible to Trichomoniasis, even if cattle are not currently maintained on such owner’s or manager’s land.
3. The cattle producer must submit a completed Neighbor Notification Form (found on the NDA website) to NDA within 14 days after the diagnosis. The form is to include the names of adjacent landowners and land managers who were notified and their contact information.
“Trichomoniasis can be devastating to a herd, and while owners of affected herds generally don’t like to talk about it, communication allows other producers to reinforce good biosecurity measures,” said Dr. Hughes.
For more information on the statute, producers can visit www.nda.nebraska.gov or call 800-572-2437.
Reps. Smith, Noem, Costa, and McIntyre Lead 83 Lawmakers in Telling OSHA: Stay Off Small Farms
Reps. Adrian Smith (R-NE), Kristi Noem (R-SD), Jim Costa (D-CA), and Mike McIntyre (D-NC) today led 83 members from both sides of the aisle in sending a letter to U.S. Secretary of Labor Thomas Perez urging the agency to stop using funds to regulate small farming operations.
“Farmers and landowners have a strong vested and personal interest in keeping their operations safe and viable, and they are already subject to countless regulations to ensure operational integrity,” the Members wrote. “We ask you to direct OSHA … to issue an updated memo clarifying OSHA has no authority to regulate any aspect of an agricultural operation with ten or fewer employees.”
Since 1976, Congress has banned OSHA from regulating farming operations with ten or fewer employees. However, in 2011, OSHA issued a memo indicating the Agency has authority to regulate “post-harvest” activities which could include storage, fumigation, and drying - processes common on farms of all sizes.
To view a copy of the letter, please click here. You can also view a copy of the text below.
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The Honorable Thomas E. Perez, Secretary
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
Dear Secretary Perez:
Since 1976, Congress has statutorily prohibited the Occupational Safety and Health Administration (OSHA) from using funds to regulate farming operations with ten or fewer employees under the Occupational Safety and Health Act of 1976. We are now receiving reports OSHA has begun taking enforcement action against small farms based on an operations memo issued June 28, 2011, entitled “OSHA’s authority to perform enforcement activities at small farms with grain storage structures involved in postharvest crop activities.”
While the memo, issued by OSHA Director of Enforcement Programs Thomas Galassi, acknowledges current law prohibits OSHA from regulating small farms engaged in growing and harvesting crops and any "related activities,” the memo proceeds to indicate grain “handling,” such as drying and fumigating, is not central to an agricultural operation and is therefore subject to OSHA regulation. The memo has since been broadly interpreted to provide OSHA inspectors authority to regulate on-farm grain storage and other activities not directly related to growing and harvest.
Farmers and landowners have a strong vested and personal interest in keeping their operations safe and viable, and they are already subject to countless regulations to ensure operational integrity. If the Administration believes OSHA should be given authority to regulate small farming operations, evidence would need to be presented to Congress and passed through the normal legislative process.
We thank you for your recent acknowledgement of the issue and ask you to direct OSHA to adhere to the intent of Congress by terminating and retroactively dismissing all action taken based on the abovementioned interpretation, and issue an updated memo clarifying OSHA has no authority to regulate any aspect of an agricultural operation with ten or fewer employees. While the Fiscal Year 2014 Omnibus includes a provision prohibiting enforcement, smaller farmers and ranchers need the certainty of knowing OSHA will continue following the letter of the law in future years.
Thank you for your attention to this matter. We look forward to a timely response.
Nebraska Farmers Union Says Farm Bill Compromise Helps Livestock Producers
Nebraska Farmers Union (NeFU) says the Farm Bill compromise brings an estimated $7 billion in Farm Bill benefits for livestock producers in EQIP funding, Livestock Indemnity Programs, Livestock Forage programs, and export assistance programs. NeFU President John Hansen said: “As an organization that represents livestock producers, NeFU is in strong support of this Farm Bill and its rancher-friendly provisions. To do otherwise would not be responsible.” Some of the livestock provisions include:
· Permanent Livestock Disaster Programs authority was restored that provide an emergency safety net for livestock producers from natural disasters.
· The Farm Bill provides retroactive payments for producers who suffered losses after the previous program expired early in October, 2011.
· Maintains USDA authority to administer GIPSA regulations that protect the marketing interests of independent livestock producers.
· The new permanent 10-year baseline provided for livestock disaster programs represents a significant improvement over previous temporary or ad-hoc livestock disaster provisions.
· The livestock disaster programs are estimated to provide nearly $4 billion of assistance to producers over the next 10 years.
· The Livestock Indemnity Program (LIP) provides 75% of fair market value for livestock losses due to adverse weather conditions.
· Retroactive LIP payments will be made to the ranchers who lost tens of thousands of cattle in the Dakotas and Nebraska due to the blizzards and extreme weather conditions late last fall.
· The Livestock Forage Program (LFP) provides payments for forage losses due to adverse weather conditions. LFP payments will be made to hundreds of producers who experienced one of the most crippling, severe, and far-reaching droughts our nation has ever seen.
· Livestock receives a 60% EQIP earmark for livestock amounting to $4.8 billion for livestock producers over the next 5 years.
· The authorization of Regional Conservation Partnership Program (RCPP) and EQIP funding that can be used by farmers and ranchers to comply with environmental regulations.
· Two million acres are set aside for CRP for grazing lands to help ranchers both conserve land and retain economic benefits.
· Establish more CRP flexibility for increased access to acres for haying and grazing.
· Eases the restrictions on producers in times of disasters and provides them with the ability to hay, graze, and donate CRP hay to producers in areas hardest hit by natural disasters.
· Eliminates rental rate reductions for beginning farmers who graze livestock on CRP acres so they can utilize CRP acres without penalty.
· A first time ever 10-year baseline for Grassland Easements to help ranchers keep their land in active agricultural production is established.
Center for Rural Affairs on Farm Bill Final Passage
Last night, the House and Senate farm bill conference committee sent a compromise bill back to both chambers for a final, up-or-down vote. The Conferees had been working to reconcile the farm bills passed in the two chambers last year.
“We oppose the bill as reported out of conference committee,” said Traci Bruckner, Senior Policy Associate with the Center for Rural Affairs. “The conference report stripped out bipartisan, bicameral actively engaged payment limitation reforms that passed both chambers. Moreover, it actually increases the nominal payment limits nearly threefold over current law.”
At a time of tight budgets, increasing rural poverty and growing income inequality this bill takes rural and small town America in the wrong direction. Virtually unlimited farm program payments will continue to inure to the nation’s largest and wealthiest mega-farms. Those operations will continue to drive up land prices, drive their smaller neighbors out of business and limit opportunities for beginning and family farmers, Bruckner explained.
“We urge the House to reject the bill as reported out and send it back to conference for inclusion of the payment limit provisions,” said Bruckner.
Bruckner went on to explain that as the President delivers his State of the Union address tonight, he is expected to speak to growing income inequality. But this farm bill serves as an example of legislation that drives up rural income inequality. She called up the Administration to also urge Congress to return this bill to conference and include the provisions on payment limits and closure of loopholes.
Iowa Soybean Association urges continued review, comments on proposed farm bill
Iowa Soybean Association President-Elect Tom Oswald of Cleghorn, Iowa, issued the following statement regarding Monday’s work by House and Senate leadership to forge an agreement on U.S. farm and food legislation.
“While work remains in finalizing a new farm bill, the Iowa Soybean Association (ISA) is encouraged with progress made by the House and Senate conferees. The agreement is indeed a compromise.
"It does address many of the issues ISA and American Soybean Association members set as priorities. A particularly strong portion of the bill for soybean farmers includes language that provides an adequate and flexible farm safety net, including improvements to crop insurance and a choice between price-based and revenue-based risk management tools.
“It also maintains decoupled farm support programs (both price and revenue) that will minimize the possibility of planting and production distortions that could trigger new World Trade Organization challenges.
“In addition, the agreement maintains agricultural research, export promotion and energy programs critical to providing domestic and international market opportunities for Iowa-grown soybeans.
“We encourage soybean farmers to continue close review of the bill and to provide input to their respective Congressional leaders. The Iowa Soybean Association will also monitor this important legislation as it moves forward through the House and Senate.”
Farm Bill Moves Forward With Compromise on Dairy Policy
John Wilson, Senior Vice President, Dairy Farmers of America
“We would like to thank our dairy farmer owners, supporters in Congress, the National Milk Producers Federation and other industry leaders for tirelessly working to advocate for change in dairy policy.
"We are disappointed with the announcement that the new Farm Bill will not include the Dairy Security Act (DSA). The DSA was created by farmers for farmers and would have benefited dairy farmers and tax payers alike. With that said, we are encouraged the new bill replaces outdated dairy policy and includes a margin insurance program, similar to that in the DSA. This new program will serve as an important risk management tool in helping the nation’s dairy farm families maintain financial stability.
“While we have not had the opportunity to review the potential impact of the newly negotiated program, we are grateful congressional leaders continued to work toward an agreement on new dairy policy.
“We urge the conferees to complete their work and send the Farm Bill to the House and Senate floors for final passage.
“As a cooperative, we will continue to work toward improvements in dairy policy, regulations and opening new markets to benefit our dairy farmer owners."
Wheat Growers Support Proposed Farm Bill, Urge Quick Action by Congress
A statement from the National Association of Wheat Growers (NAWG) President Bing Von Bergen, a wheat farmer and seedsman from Moccasin, Mont:
“I join my fellow wheat growers in support of the conference committee approved farm bill agreement that strengthens crop insurance and allows growers the necessary safety net to keep a secure, affordable and healthy food supply. In addition, this bill provides funding for important programs in conservation, research and trade that help keep America’s wheat industry productive and competitive on a global scale."
“NAWG and the 22 states we represent appreciate the tireless work of our agriculture leadership to see this bill to the finish line especially the work of our four leaders on the House and Senate agriculture committees.”
"We encourage speedy passage by both houses of Congress and look forward to the implementation of the new law.”
House leaders are expected to vote Wednesday with the Senate following shortly after.
NSP Commends Farm Bill Conference and Urges Quick Adoption
National Sorghum Producers praises the farm bill conference committee for finalizing a conference report that will provide certainty for farmers across the nation and urges Congress to quickly adopt the legislation.
“NSP strongly supports the Agricultural Act of 2014,” said J.B. Stewart, NSP chairman. “This legislation meets NSP’s goals in providing farmers with a number of risk management tools, strengthening and protecting crop insurance, and including strong conservation and energy titles. Alongside the market-oriented reforms found in the bill, the legislation saves taxpayers $24 billion.”
NSP particularly commends Chairman Frank Lucas (R-Okla.), Ranking Member Collin Peterson (D-Minn.), Chairwoman Debbie Stabenow (D-Mich.), Ranking Member Thad Cochran (R-Miss.) and their excellent staffs for their hard work, perseverance and commitment to American agriculture.
NCBA Opposes Farm Bill
Today the National Cattlemen’s Beef Association announced that they will oppose the Agricultural Act of 2014, the farm bill conference report. NCBA sent a letter to the Hill, expressing our opposition to the bill. The following is a statement by Scott George, NCBA president and Cody, Wyoming cattleman:
“NCBA has worked on this farm bill for over three years now. First as the 2012 Farm Bill, then the 2013, and now with the actions of a few in Congress, it has become the 2014 Farm Bill. After all of this, the bill that the conference committee released Monday is not one that addresses the priority issues that our members had for this farm bill.
“We are calling on Congress to fix the mistakes they have made, mistakes that are costing cattlemen and women money every day. Mistakes like Mandatory Country-of-Origin Labeling, which has already resulted in steep discounts to our producers and caused prejudice against our largest trading partners. This program was created without the consent of producers and has been a failure by every measure.
“We are disappointed in all members of Congress and especially the members of the Conference Committee for allowing this process to go this far without a solution. Failure to fix MCOOL at this juncture will lead to retaliatory tariffs on a host of commodities and it is only a matter of time before the World Trade Organization rules in favor of Canada and Mexico. Once that happens, producers will realize the full costs of this failed legislation.
“This farm bill is foundationally flawed and the livestock sector is standing shoulder-to-shoulder in opposition of a farm bill that will only serve to cause greater harm to rural America.”
Different Perspectives on Cattle Basis
Matthew A. Diersen, Professor, Department of Economics, South Dakota State University
Early in the year, a common marketing practice is to take a look at basis levels. You never know when subtle changes can slowly derail your price expectations. The focus here is on fed cattle basis, which has a strong seasonal pattern. There are multiple sources of price and basis information. The LMIC has price tables and often individual states have data available.
The most common way to look at fed cattle basis is to compare a monthly cash price for a given market to the nearby futures price. Typically basis equals the cash price minus the futures price. Such a basis measure would translate directly into a planning price. Adding an average basis for a given month to its nearby futures price gives an expected cash price. The same can be done with a forward basis. In most months the basis is negative, implying a cash price below the futures price. This is because of some transactions costs when delivering cattle - regardless of the market. For par delivery locations the transactions costs should be minimized, but may still be $1-2 per cwt.
Because the fed cattle cash price has a strong seasonal pattern based on both production levels and demand for beef, there is also a seasonal pattern in the basis. The seasonal peak often occurs in April, but it can be anywhere from February through May. Thus, basis for the early half of the year is worth watching every year. A 5-year average basis seems to work pretty well for South Dakota. The average covers enough years to smooth out aberrations, but is short enough to adjust to changing seasonal patterns. Average basis for the coming months are: February at -$3.89, March at -$3.52, April at -$0.52, May at $2.69 and June at $1.34.
The recent rally has pushed up the nearby February contract and the following contract prices decline in price through August. Thus, for planning purposes, you would want to approach the averages with more caution than usual. February's basis might still hold, as it reflects typical basis for a delivery month. March's basis is more suspect, as it should reflect more of the premium the February futures contract trades at relative to the April futures contract. May's basis could be suspect as well, given the very steep slide from the April futures contract to the June futures contract.
The other source to consider is the forward contract market. The USDA's Agricultural Marketing Service reports the weekly minimum, maximum and average basis levels on contracted fed cattle: http://www.ams.usda.gov/mnreports/lm_ct153.txt.
The basis levels last week for February and March were both around -$1.00, while May was about $3.00. The delivery location of the contracted cattle is not given, but the basis levels suggest that the forward market has adjusted to the unusual futures pattern observed this winter.
Soybean Growers Urge EPA to Maintain Biodiesel’s Progress in Renewable Fuel Standard
American Soybean Association (ASA) President Ray Gaesser, a farmer from Corning, Iowa, urged Environmental Protection Agency Administrator Gina McCarthy today to amend EPA’s proposed 2014 and 2015 Renewable Fuel Standard (RFS) volume requirements for biomass-based diesel that, if left unchanged, would significantly damage the nation’s growing biodiesel industry and adversely impact soybean growers.
In comments submitted to the agency this morning, Gaesser emphasized that EPA’s proposed biomass-based diesel and total Advanced Biofuels levels “are unnecessarily low, will stifle the growth and job creation potential demonstrated by the biodiesel industry, and squander an opportunity for greater emissions reductions and energy diversity.” Gaesser also noted that the levels are “… entirely inconsistent with this Administration’s clear position over the past five years supporting renewable and Advanced Biofuels for their energy, environmental, and economic benefits.”
ASA urged that EPA adjust the requirements to be consistent with production levels in 2013, which exceeded 1.7 billion gallons. “As was demonstrated in 2013, the U.S. biodiesel industry can produce volumes greater than 1.28 billion gallons without significant cost or disruption to the economy,” said Gaesser. “There are over 2 billion gallons of U.S. biodiesel production capacity already built and operable and there is sufficient feedstock available to produce above the 1.28 billion gallons proposed by EPA. Biodiesel, including biodiesel produced from soybean oil, is the most prevalent advanced biofuel currently produced in the United States. The industry has met or exceeded the RFS biomass-based diesel volume requirements every year they have been in place and 2013 production exceeded 1.7 billion gallons. Gaesser noted that biodiesel provides numerous benefits for consumers and society as a whole, including support for jobs, displacing petroleum, reducing emissions, lowering soy meal costs for livestock producers and providing a market for over 5 billion pounds of soy oil, much of which was displaced from food markets due to trans fat issues.
“There will be both direct and indirect employment benefits in rural areas due to increased biodiesel production,” wrote Gaesser.
While biodiesel is not the only factor involved, the economic benefits are supported by the fact that over the past five years, a period when biofuels production has increased significantly, the U.S. agricultural sector has experienced an increase in cash receipts for both crops and livestock, farm related income, gross cash income, and net cash income.
Biodiesel Industry Celebrates Record Production, Eyes Federal Policy During Conference
Last week more than 1,100 members of the biodiesel industry from across the country gathered in San Diego for the 2014 National Biodiesel Conference & Expo. While industry leaders can point to another year of record growth with more than 1.8 billion gallons of biodiesel produced in 2013, a recent proposal from the U.S. Environmental Protection Agency has producers wary that the market could be dramatically reduced.
“The biodiesel industry hit a grand slam in 2013, hitting an average annualized monthly production rate of 2 billion gallons for the last half of the year – double that of last year’s record,” said Joe Jobe, CEO of the National Biodiesel Board. “The EPA’s volume proposal for 2014 would effectively cut the volumes in half from current production levels. I can’t think of a more unacceptable example of a call for full retreat during such an overwhelming victory.”
In his annual address at the Biodiesel Conference & Expo, Jobe shed light on current industry challenges and exposed cracks in how we think about energy.
He pointed out that biodiesel’s story is not unique, “Biodiesel’s story is an example of how effective government policy can be to jump start a fledgling industry. That is the same story of nearly every new industry that involves technological development. Strong government policy support along with a unique spirit of innovation, entrepreneurship, and risk-taking are the primary reasons that so many major modern industries had their start in America.”
One of the most influential policies in the energy sector is the Renewable Fuel Standard (RFS2). Jobe explained, “The Renewable Fuel Standard is effective policy that is working. It is fulfilling its intention to establish diversity, competition, and choice in the transportation fuel sector, which is why the incumbent industry is trying to kill it.”
Today is the final day for the industry to submit official comments to EPA on the proposal with thousands of supporters already doing so. The industry is also eagerly awaiting President Obama’s State of the Union speech tonight for additional clarity regarding his position on renewable fuels.
While this critical federal proposal was the topic of general session speakers, breakout sessions, and hallway conversations among attendees, there were many other activities at the industry’s annual event. Attendees heard from automakers, fleet users, and consumers about their biodiesel use and got to test out a number of new diesel models during the Ride-and-Drive and Vehicle Showcase events.
A record number of students from across the country participated as part of the Next Generation Scientists for Biodiesel program. The NBB program has led to increased communication and collaboration between the biodiesel industry and universities involved in biodiesel research. Thirty-six students representing 18 different universities attended the conference with a handful presenting their research during a student-focused breakout session and through a student poster session on the tradeshow floor.
Also, NBB recognized leadership and achievements within the industry with the annual “Eye on Biodiesel” awards. The honorees were: Impact Award, the California Air Resources Board; Innovation Award, General Motors for the B20-approved Chevrolet Cruze; Industry Partnership, Kirk Leeds, Iowa Soybean Association; and Inspiration Award, Len Hering, RADM, USN, California Center for Sustainable Energy.
“The biodiesel industry would not be what it is without champions and supporters like these Eye on Biodiesel honorees,” said Jobe. “We are proud to honor our award winners who have made a substantial impact in getting biodiesel to where it is today, a fully commercialized advanced biofuel that is produced from coast to coast.”
CWT Assists with 7.4 Million Pounds of Cheese and Butter Export Sales
Cooperatives Working Together (CWT) has accepted 29 requests for export assistance from Bongards Creameries, Dairy Farmers of America, Foremost Farms USA, Maryland Virginia Milk Producers Cooperative Association and Tillamook County Creamery Association to sell 5.758 million pounds (2,612 metric tons) of Cheddar, Gouda and Monterey Jack cheese and 551,156 pounds (250 metric tons) of butter to customers in Asia, Central America, the Middle East and North Africa. The product will be delivered January through June 2014.
Year-to-date, CWT has assisted member cooperatives in selling 8.494 million pounds of cheese and 3.542 million pounds of butter to 12 countries on four continents. These sales are the equivalent of 158 million pounds of milk on a milkfat basis.
Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by helping to maintain inventories of cheese and butter at desirable levels. In the long-term, CWT’s Export Assistance program helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the farm milk that produces them.
Brazil Sees Asian Soybean Rust Decline; Costs Rise
Timely spraying has allowed Brazilian soybean farmers to effectively control the threat of the Asian rust fungus this season, although it has come at a cost. Up until Monday, Brazil had registered 226 cases of the disease, down 15% from the same time last year, according to the Anti-Rust Consortium, a monitoring group led by Embrapa, a government research agency. However, spending on controlling the disease is 14% higher at $2.21 billion, according to Embrapa numbers, which is partially offset by a 6% increase in planted area.
While much attention has been paid to the new threat posed by the spread of the corn earworm this season, Asian rust remains perhaps the biggest threat to the soybean crop. The fungus causes lesions on the leaves of soybean plants, which impede the formation of the bean and can result in massive yield losses. In more extreme cases, the fungus can kill the plant.
However, since it arrived in the first half of the last decade, Brazilian farmers have learned to manage the fungus' threat, spraying on the first reports of cases in their region rather than waiting for the telltale yellow mosaic to appear on their own plants.
While control of the fungus has been generally good across Brazil this season, there has been one black spot, in the southeast of Goias. The No. 4 soybean producing state accounts for 37% of all cases in Brazil this season.
New Hampshire Lawmakers Deny GMO Labeling Bill
The New Hampshire House of Representatives voted to deny a bill that would have required foods containing genetically modified organisms to be labeled throughout the state. Critics of the bill, which was voted down 185-162 on Wednesday, said the federal Food and Drug Administration has not mandated the labeling because it determined the foods are safe. New Hampshire is the latest state to discuss legislation to label foods containing GMO's following high profile ballot initiatives in other states, such as California and Washington.
Bayer's Annihilator Polyzone Makes Insect Control Easy All Season Long
Bayer HealthCare LLC Animal Health Division has announced the introduction of a broad-spectrum premise spray called Annihilator™ Polyzone®. The product provides livestock producers with long-term control of crawling, flying and wood-infesting pests. Bayer's proprietary technology allows the product to withstand aggressive surfaces, weather and wash-off conditions for up to 90 days. This residual enables users to maintain control with fewer applications which can result in reduced labor.
"Calf facilities in the summer are one of the worst places you could be for flies," said Dairy Manager Benny Rector from Hilmar, Calif. "We sprayed calf pens before we put calves in them, and we sprayed the surrounding area. The residual effects lead to less labor for me to put it on. And, it's a constant, maintained control over those 8-12 weeks — that's the big thing — it's a constant kill."
The proprietary technology within Annihilator Polyzone forms a protective layer between the active ingredient particles and the applied area adhering them to the surface. As the Polyzone crystals erode over time, the active ingredient, deltamethrin, is slowly released, leading to effective control for up to 90 days. This residual gives users the ability to apply the product in many areas, as well as hard-to-spray areas.
"With Annihilator Polyzone, we are providing livestock producers an effective long-term premise spray," says Cary Christensen, DVM, Director, Food Animal Business Unit, Bayer. "This is part of the Bayer Defense Point System, an integrated pest control management system designed to help protect animal operations from pests. Because of the significant economic impact — and health and wellness affect — flies have on livestock operations, producers need additional tools to help manage flies."
Annihilator Polyzone is one of the latest innovations in a portfolio of brands that help make Bayer a leading provider of pest management solutions.
The Evolution of Corn Rootworm Control and Force® Insecticide
Corn insect control is a moving target, and sometimes the answers aren’t as simple as they might seem. In recent years, unpredictable weather, increased pest pressure and unexpected damage in rootworm-traited corn have confounded corn insect control strategies. Although corn rootworm management has evolved over time, one constant in the fight for over 25 years is Force® insecticide.
“Corn rootworm has been a challenge for corn growers since the late 1950s,” said Chuck Foresman, Syngenta global corn crop protection R&D lead. “And since its introduction in the late 1980s, Force has provided farmers with control of corn rootworm and other pests, resulting in reduced lodging, faster and easier harvests, and higher yields.”
Looking Ahead
As farmers plan for the 2014 growing season, Syngenta recommends the following strategies for corn insect control in areas where corn rootworm is expected to be a problem:
- Taking a multi-year, whole-farm approach
- Rotating to a non-host crop, where that is an option
- Integrating multiple measures of control
- Using corn hybrid stacks with two corn rootworm traits
- Applying a soil insecticide or seed treatment
“Corn rootworm control is not one-size-fits-all,” Foresman said. “Rotation to a non-host crop is the first option for farmers seeking to break the corn rootworm cycle. Effective corn rootworm management will require a multi-year plan, incorporating the integration of multiple control measures, not merely employing a single technology. Understanding the complexity of corn rootworm will help farmers choose the right approach for their farm.”
Force Insecticide Team: The People Behind the Progress
Foresman has been part of a select group at Syngenta who have worked with Force insecticide since its inception. In the summer of 1980, he spent time digging up corn roots to test the efficacy of Force insecticide as a pre-registration compound. “It’s been a very robust compound, and after nearly three decades, Force remains an effective tool for corn insect control,” he said. “We’re very pleased it’s a product growers continue to rely on.”
Foresman and his colleagues have seen Force evolve from a new control option to a trusted resource, especially now through its use on rootworm-traited hybrids. When applied to hybrids that contain a single mode of action against corn rootworm, for example, Force can help increase corn yields by an average of 10 bushels per acre.
Dave Thomas, Syngenta senior R&D scientist, helped commercialize Force by providing in-house, contract and university technical support for the insecticide. “It was more user-friendly than the older products that were on the market,” Thomas said, adding that farmers also like the fact that Force controls secondary pests, such as cutworm, wireworm and white grub.
Today, Force comes in both liquid and granular formulations. Force 3G is a proven and reliable granular soil-applied insecticide that offers industry-leading control of the toughest corn pests. Force CS liquid soil-applied insecticide offers the same performance as Force 3G but with added convenience, a lower use rate and reduced product exposure.
Craig Nichols, Syngenta senior R&D scientist, also has been heavily involved in the development of Force over the past 20 years, from trial digs to data summary. He took part in developing Force 3G, testing Force on Bt traits and, most recently, testing Force CS. “As control challenges have emerged, farmers have found the need to attack corn rootworm with more than one mode of action,” Nichols said, noting that the application of Force on trait can help farmers control corn rootworms, especially in areas with heavy corn rootworm pressure.
As a leader in corn insect control, Syngenta is working to help farmers develop multi-year, whole-farm solutions for corn rootworm and other yield-robbing pests by taking current and historical insect pressures into account. Led by its “people behind the progress,” Syngenta is able to offer growers more tools to control corn rootworm than ever before, including Force, a product as useful for corn growers today as it was 25 years ago.
As cattle producers conduct breeding soundness and Trichomoniasis testing this year, State Veterinarian Dr. Dennis Hughes would like to remind producers of their responsibilities, if they have a positive Trichomoniasis diagnosis within their herd.
According to Hughes, LB 423 was passed last spring and took effect in September. The statute has some specific reporting requirements for producers who have a positive Trichomoniasis diagnosis within their herd, including:
1. The cattle producer or his or her veterinarian must report any positive Trichomoniasis diagnosis to NDA within five business days from knowledge of the formal diagnosis.
2. After knowledge of a formal diagnosis, the cattle producer will have 14 days to notify their neighbors of the diagnosis. Neighbor means adjacent landowners or land managers, with land capable of maintaining livestock susceptible to Trichomoniasis, even if cattle are not currently maintained on such owner’s or manager’s land.
3. The cattle producer must submit a completed Neighbor Notification Form (found on the NDA website) to NDA within 14 days after the diagnosis. The form is to include the names of adjacent landowners and land managers who were notified and their contact information.
“Trichomoniasis can be devastating to a herd, and while owners of affected herds generally don’t like to talk about it, communication allows other producers to reinforce good biosecurity measures,” said Dr. Hughes.
For more information on the statute, producers can visit www.nda.nebraska.gov or call 800-572-2437.
Reps. Smith, Noem, Costa, and McIntyre Lead 83 Lawmakers in Telling OSHA: Stay Off Small Farms
Reps. Adrian Smith (R-NE), Kristi Noem (R-SD), Jim Costa (D-CA), and Mike McIntyre (D-NC) today led 83 members from both sides of the aisle in sending a letter to U.S. Secretary of Labor Thomas Perez urging the agency to stop using funds to regulate small farming operations.
“Farmers and landowners have a strong vested and personal interest in keeping their operations safe and viable, and they are already subject to countless regulations to ensure operational integrity,” the Members wrote. “We ask you to direct OSHA … to issue an updated memo clarifying OSHA has no authority to regulate any aspect of an agricultural operation with ten or fewer employees.”
Since 1976, Congress has banned OSHA from regulating farming operations with ten or fewer employees. However, in 2011, OSHA issued a memo indicating the Agency has authority to regulate “post-harvest” activities which could include storage, fumigation, and drying - processes common on farms of all sizes.
To view a copy of the letter, please click here. You can also view a copy of the text below.
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The Honorable Thomas E. Perez, Secretary
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
Dear Secretary Perez:
Since 1976, Congress has statutorily prohibited the Occupational Safety and Health Administration (OSHA) from using funds to regulate farming operations with ten or fewer employees under the Occupational Safety and Health Act of 1976. We are now receiving reports OSHA has begun taking enforcement action against small farms based on an operations memo issued June 28, 2011, entitled “OSHA’s authority to perform enforcement activities at small farms with grain storage structures involved in postharvest crop activities.”
While the memo, issued by OSHA Director of Enforcement Programs Thomas Galassi, acknowledges current law prohibits OSHA from regulating small farms engaged in growing and harvesting crops and any "related activities,” the memo proceeds to indicate grain “handling,” such as drying and fumigating, is not central to an agricultural operation and is therefore subject to OSHA regulation. The memo has since been broadly interpreted to provide OSHA inspectors authority to regulate on-farm grain storage and other activities not directly related to growing and harvest.
Farmers and landowners have a strong vested and personal interest in keeping their operations safe and viable, and they are already subject to countless regulations to ensure operational integrity. If the Administration believes OSHA should be given authority to regulate small farming operations, evidence would need to be presented to Congress and passed through the normal legislative process.
We thank you for your recent acknowledgement of the issue and ask you to direct OSHA to adhere to the intent of Congress by terminating and retroactively dismissing all action taken based on the abovementioned interpretation, and issue an updated memo clarifying OSHA has no authority to regulate any aspect of an agricultural operation with ten or fewer employees. While the Fiscal Year 2014 Omnibus includes a provision prohibiting enforcement, smaller farmers and ranchers need the certainty of knowing OSHA will continue following the letter of the law in future years.
Thank you for your attention to this matter. We look forward to a timely response.
Nebraska Farmers Union Says Farm Bill Compromise Helps Livestock Producers
Nebraska Farmers Union (NeFU) says the Farm Bill compromise brings an estimated $7 billion in Farm Bill benefits for livestock producers in EQIP funding, Livestock Indemnity Programs, Livestock Forage programs, and export assistance programs. NeFU President John Hansen said: “As an organization that represents livestock producers, NeFU is in strong support of this Farm Bill and its rancher-friendly provisions. To do otherwise would not be responsible.” Some of the livestock provisions include:
· Permanent Livestock Disaster Programs authority was restored that provide an emergency safety net for livestock producers from natural disasters.
· The Farm Bill provides retroactive payments for producers who suffered losses after the previous program expired early in October, 2011.
· Maintains USDA authority to administer GIPSA regulations that protect the marketing interests of independent livestock producers.
· The new permanent 10-year baseline provided for livestock disaster programs represents a significant improvement over previous temporary or ad-hoc livestock disaster provisions.
· The livestock disaster programs are estimated to provide nearly $4 billion of assistance to producers over the next 10 years.
· The Livestock Indemnity Program (LIP) provides 75% of fair market value for livestock losses due to adverse weather conditions.
· Retroactive LIP payments will be made to the ranchers who lost tens of thousands of cattle in the Dakotas and Nebraska due to the blizzards and extreme weather conditions late last fall.
· The Livestock Forage Program (LFP) provides payments for forage losses due to adverse weather conditions. LFP payments will be made to hundreds of producers who experienced one of the most crippling, severe, and far-reaching droughts our nation has ever seen.
· Livestock receives a 60% EQIP earmark for livestock amounting to $4.8 billion for livestock producers over the next 5 years.
· The authorization of Regional Conservation Partnership Program (RCPP) and EQIP funding that can be used by farmers and ranchers to comply with environmental regulations.
· Two million acres are set aside for CRP for grazing lands to help ranchers both conserve land and retain economic benefits.
· Establish more CRP flexibility for increased access to acres for haying and grazing.
· Eases the restrictions on producers in times of disasters and provides them with the ability to hay, graze, and donate CRP hay to producers in areas hardest hit by natural disasters.
· Eliminates rental rate reductions for beginning farmers who graze livestock on CRP acres so they can utilize CRP acres without penalty.
· A first time ever 10-year baseline for Grassland Easements to help ranchers keep their land in active agricultural production is established.
Center for Rural Affairs on Farm Bill Final Passage
Last night, the House and Senate farm bill conference committee sent a compromise bill back to both chambers for a final, up-or-down vote. The Conferees had been working to reconcile the farm bills passed in the two chambers last year.
“We oppose the bill as reported out of conference committee,” said Traci Bruckner, Senior Policy Associate with the Center for Rural Affairs. “The conference report stripped out bipartisan, bicameral actively engaged payment limitation reforms that passed both chambers. Moreover, it actually increases the nominal payment limits nearly threefold over current law.”
At a time of tight budgets, increasing rural poverty and growing income inequality this bill takes rural and small town America in the wrong direction. Virtually unlimited farm program payments will continue to inure to the nation’s largest and wealthiest mega-farms. Those operations will continue to drive up land prices, drive their smaller neighbors out of business and limit opportunities for beginning and family farmers, Bruckner explained.
“We urge the House to reject the bill as reported out and send it back to conference for inclusion of the payment limit provisions,” said Bruckner.
Bruckner went on to explain that as the President delivers his State of the Union address tonight, he is expected to speak to growing income inequality. But this farm bill serves as an example of legislation that drives up rural income inequality. She called up the Administration to also urge Congress to return this bill to conference and include the provisions on payment limits and closure of loopholes.
Iowa Soybean Association urges continued review, comments on proposed farm bill
Iowa Soybean Association President-Elect Tom Oswald of Cleghorn, Iowa, issued the following statement regarding Monday’s work by House and Senate leadership to forge an agreement on U.S. farm and food legislation.
“While work remains in finalizing a new farm bill, the Iowa Soybean Association (ISA) is encouraged with progress made by the House and Senate conferees. The agreement is indeed a compromise.
"It does address many of the issues ISA and American Soybean Association members set as priorities. A particularly strong portion of the bill for soybean farmers includes language that provides an adequate and flexible farm safety net, including improvements to crop insurance and a choice between price-based and revenue-based risk management tools.
“It also maintains decoupled farm support programs (both price and revenue) that will minimize the possibility of planting and production distortions that could trigger new World Trade Organization challenges.
“In addition, the agreement maintains agricultural research, export promotion and energy programs critical to providing domestic and international market opportunities for Iowa-grown soybeans.
“We encourage soybean farmers to continue close review of the bill and to provide input to their respective Congressional leaders. The Iowa Soybean Association will also monitor this important legislation as it moves forward through the House and Senate.”
Farm Bill Moves Forward With Compromise on Dairy Policy
John Wilson, Senior Vice President, Dairy Farmers of America
“We would like to thank our dairy farmer owners, supporters in Congress, the National Milk Producers Federation and other industry leaders for tirelessly working to advocate for change in dairy policy.
"We are disappointed with the announcement that the new Farm Bill will not include the Dairy Security Act (DSA). The DSA was created by farmers for farmers and would have benefited dairy farmers and tax payers alike. With that said, we are encouraged the new bill replaces outdated dairy policy and includes a margin insurance program, similar to that in the DSA. This new program will serve as an important risk management tool in helping the nation’s dairy farm families maintain financial stability.
“While we have not had the opportunity to review the potential impact of the newly negotiated program, we are grateful congressional leaders continued to work toward an agreement on new dairy policy.
“We urge the conferees to complete their work and send the Farm Bill to the House and Senate floors for final passage.
“As a cooperative, we will continue to work toward improvements in dairy policy, regulations and opening new markets to benefit our dairy farmer owners."
Wheat Growers Support Proposed Farm Bill, Urge Quick Action by Congress
A statement from the National Association of Wheat Growers (NAWG) President Bing Von Bergen, a wheat farmer and seedsman from Moccasin, Mont:
“I join my fellow wheat growers in support of the conference committee approved farm bill agreement that strengthens crop insurance and allows growers the necessary safety net to keep a secure, affordable and healthy food supply. In addition, this bill provides funding for important programs in conservation, research and trade that help keep America’s wheat industry productive and competitive on a global scale."
“NAWG and the 22 states we represent appreciate the tireless work of our agriculture leadership to see this bill to the finish line especially the work of our four leaders on the House and Senate agriculture committees.”
"We encourage speedy passage by both houses of Congress and look forward to the implementation of the new law.”
House leaders are expected to vote Wednesday with the Senate following shortly after.
NSP Commends Farm Bill Conference and Urges Quick Adoption
National Sorghum Producers praises the farm bill conference committee for finalizing a conference report that will provide certainty for farmers across the nation and urges Congress to quickly adopt the legislation.
“NSP strongly supports the Agricultural Act of 2014,” said J.B. Stewart, NSP chairman. “This legislation meets NSP’s goals in providing farmers with a number of risk management tools, strengthening and protecting crop insurance, and including strong conservation and energy titles. Alongside the market-oriented reforms found in the bill, the legislation saves taxpayers $24 billion.”
NSP particularly commends Chairman Frank Lucas (R-Okla.), Ranking Member Collin Peterson (D-Minn.), Chairwoman Debbie Stabenow (D-Mich.), Ranking Member Thad Cochran (R-Miss.) and their excellent staffs for their hard work, perseverance and commitment to American agriculture.
NCBA Opposes Farm Bill
Today the National Cattlemen’s Beef Association announced that they will oppose the Agricultural Act of 2014, the farm bill conference report. NCBA sent a letter to the Hill, expressing our opposition to the bill. The following is a statement by Scott George, NCBA president and Cody, Wyoming cattleman:
“NCBA has worked on this farm bill for over three years now. First as the 2012 Farm Bill, then the 2013, and now with the actions of a few in Congress, it has become the 2014 Farm Bill. After all of this, the bill that the conference committee released Monday is not one that addresses the priority issues that our members had for this farm bill.
“We are calling on Congress to fix the mistakes they have made, mistakes that are costing cattlemen and women money every day. Mistakes like Mandatory Country-of-Origin Labeling, which has already resulted in steep discounts to our producers and caused prejudice against our largest trading partners. This program was created without the consent of producers and has been a failure by every measure.
“We are disappointed in all members of Congress and especially the members of the Conference Committee for allowing this process to go this far without a solution. Failure to fix MCOOL at this juncture will lead to retaliatory tariffs on a host of commodities and it is only a matter of time before the World Trade Organization rules in favor of Canada and Mexico. Once that happens, producers will realize the full costs of this failed legislation.
“This farm bill is foundationally flawed and the livestock sector is standing shoulder-to-shoulder in opposition of a farm bill that will only serve to cause greater harm to rural America.”
Different Perspectives on Cattle Basis
Matthew A. Diersen, Professor, Department of Economics, South Dakota State University
Early in the year, a common marketing practice is to take a look at basis levels. You never know when subtle changes can slowly derail your price expectations. The focus here is on fed cattle basis, which has a strong seasonal pattern. There are multiple sources of price and basis information. The LMIC has price tables and often individual states have data available.
The most common way to look at fed cattle basis is to compare a monthly cash price for a given market to the nearby futures price. Typically basis equals the cash price minus the futures price. Such a basis measure would translate directly into a planning price. Adding an average basis for a given month to its nearby futures price gives an expected cash price. The same can be done with a forward basis. In most months the basis is negative, implying a cash price below the futures price. This is because of some transactions costs when delivering cattle - regardless of the market. For par delivery locations the transactions costs should be minimized, but may still be $1-2 per cwt.
Because the fed cattle cash price has a strong seasonal pattern based on both production levels and demand for beef, there is also a seasonal pattern in the basis. The seasonal peak often occurs in April, but it can be anywhere from February through May. Thus, basis for the early half of the year is worth watching every year. A 5-year average basis seems to work pretty well for South Dakota. The average covers enough years to smooth out aberrations, but is short enough to adjust to changing seasonal patterns. Average basis for the coming months are: February at -$3.89, March at -$3.52, April at -$0.52, May at $2.69 and June at $1.34.
The recent rally has pushed up the nearby February contract and the following contract prices decline in price through August. Thus, for planning purposes, you would want to approach the averages with more caution than usual. February's basis might still hold, as it reflects typical basis for a delivery month. March's basis is more suspect, as it should reflect more of the premium the February futures contract trades at relative to the April futures contract. May's basis could be suspect as well, given the very steep slide from the April futures contract to the June futures contract.
The other source to consider is the forward contract market. The USDA's Agricultural Marketing Service reports the weekly minimum, maximum and average basis levels on contracted fed cattle: http://www.ams.usda.gov/mnreports/lm_ct153.txt.
The basis levels last week for February and March were both around -$1.00, while May was about $3.00. The delivery location of the contracted cattle is not given, but the basis levels suggest that the forward market has adjusted to the unusual futures pattern observed this winter.
Soybean Growers Urge EPA to Maintain Biodiesel’s Progress in Renewable Fuel Standard
American Soybean Association (ASA) President Ray Gaesser, a farmer from Corning, Iowa, urged Environmental Protection Agency Administrator Gina McCarthy today to amend EPA’s proposed 2014 and 2015 Renewable Fuel Standard (RFS) volume requirements for biomass-based diesel that, if left unchanged, would significantly damage the nation’s growing biodiesel industry and adversely impact soybean growers.
In comments submitted to the agency this morning, Gaesser emphasized that EPA’s proposed biomass-based diesel and total Advanced Biofuels levels “are unnecessarily low, will stifle the growth and job creation potential demonstrated by the biodiesel industry, and squander an opportunity for greater emissions reductions and energy diversity.” Gaesser also noted that the levels are “… entirely inconsistent with this Administration’s clear position over the past five years supporting renewable and Advanced Biofuels for their energy, environmental, and economic benefits.”
ASA urged that EPA adjust the requirements to be consistent with production levels in 2013, which exceeded 1.7 billion gallons. “As was demonstrated in 2013, the U.S. biodiesel industry can produce volumes greater than 1.28 billion gallons without significant cost or disruption to the economy,” said Gaesser. “There are over 2 billion gallons of U.S. biodiesel production capacity already built and operable and there is sufficient feedstock available to produce above the 1.28 billion gallons proposed by EPA. Biodiesel, including biodiesel produced from soybean oil, is the most prevalent advanced biofuel currently produced in the United States. The industry has met or exceeded the RFS biomass-based diesel volume requirements every year they have been in place and 2013 production exceeded 1.7 billion gallons. Gaesser noted that biodiesel provides numerous benefits for consumers and society as a whole, including support for jobs, displacing petroleum, reducing emissions, lowering soy meal costs for livestock producers and providing a market for over 5 billion pounds of soy oil, much of which was displaced from food markets due to trans fat issues.
“There will be both direct and indirect employment benefits in rural areas due to increased biodiesel production,” wrote Gaesser.
While biodiesel is not the only factor involved, the economic benefits are supported by the fact that over the past five years, a period when biofuels production has increased significantly, the U.S. agricultural sector has experienced an increase in cash receipts for both crops and livestock, farm related income, gross cash income, and net cash income.
Biodiesel Industry Celebrates Record Production, Eyes Federal Policy During Conference
Last week more than 1,100 members of the biodiesel industry from across the country gathered in San Diego for the 2014 National Biodiesel Conference & Expo. While industry leaders can point to another year of record growth with more than 1.8 billion gallons of biodiesel produced in 2013, a recent proposal from the U.S. Environmental Protection Agency has producers wary that the market could be dramatically reduced.
“The biodiesel industry hit a grand slam in 2013, hitting an average annualized monthly production rate of 2 billion gallons for the last half of the year – double that of last year’s record,” said Joe Jobe, CEO of the National Biodiesel Board. “The EPA’s volume proposal for 2014 would effectively cut the volumes in half from current production levels. I can’t think of a more unacceptable example of a call for full retreat during such an overwhelming victory.”
In his annual address at the Biodiesel Conference & Expo, Jobe shed light on current industry challenges and exposed cracks in how we think about energy.
He pointed out that biodiesel’s story is not unique, “Biodiesel’s story is an example of how effective government policy can be to jump start a fledgling industry. That is the same story of nearly every new industry that involves technological development. Strong government policy support along with a unique spirit of innovation, entrepreneurship, and risk-taking are the primary reasons that so many major modern industries had their start in America.”
One of the most influential policies in the energy sector is the Renewable Fuel Standard (RFS2). Jobe explained, “The Renewable Fuel Standard is effective policy that is working. It is fulfilling its intention to establish diversity, competition, and choice in the transportation fuel sector, which is why the incumbent industry is trying to kill it.”
Today is the final day for the industry to submit official comments to EPA on the proposal with thousands of supporters already doing so. The industry is also eagerly awaiting President Obama’s State of the Union speech tonight for additional clarity regarding his position on renewable fuels.
While this critical federal proposal was the topic of general session speakers, breakout sessions, and hallway conversations among attendees, there were many other activities at the industry’s annual event. Attendees heard from automakers, fleet users, and consumers about their biodiesel use and got to test out a number of new diesel models during the Ride-and-Drive and Vehicle Showcase events.
A record number of students from across the country participated as part of the Next Generation Scientists for Biodiesel program. The NBB program has led to increased communication and collaboration between the biodiesel industry and universities involved in biodiesel research. Thirty-six students representing 18 different universities attended the conference with a handful presenting their research during a student-focused breakout session and through a student poster session on the tradeshow floor.
Also, NBB recognized leadership and achievements within the industry with the annual “Eye on Biodiesel” awards. The honorees were: Impact Award, the California Air Resources Board; Innovation Award, General Motors for the B20-approved Chevrolet Cruze; Industry Partnership, Kirk Leeds, Iowa Soybean Association; and Inspiration Award, Len Hering, RADM, USN, California Center for Sustainable Energy.
“The biodiesel industry would not be what it is without champions and supporters like these Eye on Biodiesel honorees,” said Jobe. “We are proud to honor our award winners who have made a substantial impact in getting biodiesel to where it is today, a fully commercialized advanced biofuel that is produced from coast to coast.”
CWT Assists with 7.4 Million Pounds of Cheese and Butter Export Sales
Cooperatives Working Together (CWT) has accepted 29 requests for export assistance from Bongards Creameries, Dairy Farmers of America, Foremost Farms USA, Maryland Virginia Milk Producers Cooperative Association and Tillamook County Creamery Association to sell 5.758 million pounds (2,612 metric tons) of Cheddar, Gouda and Monterey Jack cheese and 551,156 pounds (250 metric tons) of butter to customers in Asia, Central America, the Middle East and North Africa. The product will be delivered January through June 2014.
Year-to-date, CWT has assisted member cooperatives in selling 8.494 million pounds of cheese and 3.542 million pounds of butter to 12 countries on four continents. These sales are the equivalent of 158 million pounds of milk on a milkfat basis.
Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by helping to maintain inventories of cheese and butter at desirable levels. In the long-term, CWT’s Export Assistance program helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the farm milk that produces them.
Brazil Sees Asian Soybean Rust Decline; Costs Rise
Timely spraying has allowed Brazilian soybean farmers to effectively control the threat of the Asian rust fungus this season, although it has come at a cost. Up until Monday, Brazil had registered 226 cases of the disease, down 15% from the same time last year, according to the Anti-Rust Consortium, a monitoring group led by Embrapa, a government research agency. However, spending on controlling the disease is 14% higher at $2.21 billion, according to Embrapa numbers, which is partially offset by a 6% increase in planted area.
While much attention has been paid to the new threat posed by the spread of the corn earworm this season, Asian rust remains perhaps the biggest threat to the soybean crop. The fungus causes lesions on the leaves of soybean plants, which impede the formation of the bean and can result in massive yield losses. In more extreme cases, the fungus can kill the plant.
However, since it arrived in the first half of the last decade, Brazilian farmers have learned to manage the fungus' threat, spraying on the first reports of cases in their region rather than waiting for the telltale yellow mosaic to appear on their own plants.
While control of the fungus has been generally good across Brazil this season, there has been one black spot, in the southeast of Goias. The No. 4 soybean producing state accounts for 37% of all cases in Brazil this season.
New Hampshire Lawmakers Deny GMO Labeling Bill
The New Hampshire House of Representatives voted to deny a bill that would have required foods containing genetically modified organisms to be labeled throughout the state. Critics of the bill, which was voted down 185-162 on Wednesday, said the federal Food and Drug Administration has not mandated the labeling because it determined the foods are safe. New Hampshire is the latest state to discuss legislation to label foods containing GMO's following high profile ballot initiatives in other states, such as California and Washington.
Bayer's Annihilator Polyzone Makes Insect Control Easy All Season Long
Bayer HealthCare LLC Animal Health Division has announced the introduction of a broad-spectrum premise spray called Annihilator™ Polyzone®. The product provides livestock producers with long-term control of crawling, flying and wood-infesting pests. Bayer's proprietary technology allows the product to withstand aggressive surfaces, weather and wash-off conditions for up to 90 days. This residual enables users to maintain control with fewer applications which can result in reduced labor.
"Calf facilities in the summer are one of the worst places you could be for flies," said Dairy Manager Benny Rector from Hilmar, Calif. "We sprayed calf pens before we put calves in them, and we sprayed the surrounding area. The residual effects lead to less labor for me to put it on. And, it's a constant, maintained control over those 8-12 weeks — that's the big thing — it's a constant kill."
The proprietary technology within Annihilator Polyzone forms a protective layer between the active ingredient particles and the applied area adhering them to the surface. As the Polyzone crystals erode over time, the active ingredient, deltamethrin, is slowly released, leading to effective control for up to 90 days. This residual gives users the ability to apply the product in many areas, as well as hard-to-spray areas.
"With Annihilator Polyzone, we are providing livestock producers an effective long-term premise spray," says Cary Christensen, DVM, Director, Food Animal Business Unit, Bayer. "This is part of the Bayer Defense Point System, an integrated pest control management system designed to help protect animal operations from pests. Because of the significant economic impact — and health and wellness affect — flies have on livestock operations, producers need additional tools to help manage flies."
Annihilator Polyzone is one of the latest innovations in a portfolio of brands that help make Bayer a leading provider of pest management solutions.
The Evolution of Corn Rootworm Control and Force® Insecticide
Corn insect control is a moving target, and sometimes the answers aren’t as simple as they might seem. In recent years, unpredictable weather, increased pest pressure and unexpected damage in rootworm-traited corn have confounded corn insect control strategies. Although corn rootworm management has evolved over time, one constant in the fight for over 25 years is Force® insecticide.
“Corn rootworm has been a challenge for corn growers since the late 1950s,” said Chuck Foresman, Syngenta global corn crop protection R&D lead. “And since its introduction in the late 1980s, Force has provided farmers with control of corn rootworm and other pests, resulting in reduced lodging, faster and easier harvests, and higher yields.”
Looking Ahead
As farmers plan for the 2014 growing season, Syngenta recommends the following strategies for corn insect control in areas where corn rootworm is expected to be a problem:
- Taking a multi-year, whole-farm approach
- Rotating to a non-host crop, where that is an option
- Integrating multiple measures of control
- Using corn hybrid stacks with two corn rootworm traits
- Applying a soil insecticide or seed treatment
“Corn rootworm control is not one-size-fits-all,” Foresman said. “Rotation to a non-host crop is the first option for farmers seeking to break the corn rootworm cycle. Effective corn rootworm management will require a multi-year plan, incorporating the integration of multiple control measures, not merely employing a single technology. Understanding the complexity of corn rootworm will help farmers choose the right approach for their farm.”
Force Insecticide Team: The People Behind the Progress
Foresman has been part of a select group at Syngenta who have worked with Force insecticide since its inception. In the summer of 1980, he spent time digging up corn roots to test the efficacy of Force insecticide as a pre-registration compound. “It’s been a very robust compound, and after nearly three decades, Force remains an effective tool for corn insect control,” he said. “We’re very pleased it’s a product growers continue to rely on.”
Foresman and his colleagues have seen Force evolve from a new control option to a trusted resource, especially now through its use on rootworm-traited hybrids. When applied to hybrids that contain a single mode of action against corn rootworm, for example, Force can help increase corn yields by an average of 10 bushels per acre.
Dave Thomas, Syngenta senior R&D scientist, helped commercialize Force by providing in-house, contract and university technical support for the insecticide. “It was more user-friendly than the older products that were on the market,” Thomas said, adding that farmers also like the fact that Force controls secondary pests, such as cutworm, wireworm and white grub.
Today, Force comes in both liquid and granular formulations. Force 3G is a proven and reliable granular soil-applied insecticide that offers industry-leading control of the toughest corn pests. Force CS liquid soil-applied insecticide offers the same performance as Force 3G but with added convenience, a lower use rate and reduced product exposure.
Craig Nichols, Syngenta senior R&D scientist, also has been heavily involved in the development of Force over the past 20 years, from trial digs to data summary. He took part in developing Force 3G, testing Force on Bt traits and, most recently, testing Force CS. “As control challenges have emerged, farmers have found the need to attack corn rootworm with more than one mode of action,” Nichols said, noting that the application of Force on trait can help farmers control corn rootworms, especially in areas with heavy corn rootworm pressure.
As a leader in corn insect control, Syngenta is working to help farmers develop multi-year, whole-farm solutions for corn rootworm and other yield-robbing pests by taking current and historical insect pressures into account. Led by its “people behind the progress,” Syngenta is able to offer growers more tools to control corn rootworm than ever before, including Force, a product as useful for corn growers today as it was 25 years ago.
Monday, January 27, 2014
Jan 27th Ag Extra - Farm Bill Conference Report Announced!
House-Senate Negotiators Announce Bipartisan Agreement on Final Farm Bill
House and Senate agriculture leaders today announced a bipartisan, bicameral agreement on a five-year farm bill that will reduce the deficit, grow the economy and provide certainty to the 16 million Americans whose jobs depend on agriculture. The Agricultural Act of 2014 contains major reforms including eliminating the direct payment program, streamlining and consolidating numerous programs to improve their effectiveness and reduce duplication, and cutting down on program misuse. The bill also strengthens our nation's commitment to support farmers and ranchers affected by natural disasters or significant economic losses, and renews a national commitment to protect land, water, and other natural resources.
"I am proud of our efforts to finish a farm bill conference report with significant savings and reforms," said Rep. Frank Lucas (R-OK), Chairman of the House Agriculture Committee. "We are putting in place sound policy that is good for farmers, ranchers, consumers, and those who have hit difficult times. I appreciate the work of everyone who helped in this process. We never lost sight of the goal, we never wavered in our commitment to enacting a five-year, comprehensive farm bill. I ask my colleagues to join me in supporting its passage."
"Today's bipartisan agreement puts us on the verge of enacting a five-year Farm Bill that saves taxpayers billions, eliminates unnecessary subsidies, creates a more effective farm safety-net and helps farmers and businesses create jobs," said Sen. Debbie Stabenow (D-MI), Chairwoman of the Senate Agriculture Committee. "This bill proves that by working across party lines we can reform programs to save taxpayer money while strengthening efforts to grow our economy. Agriculture is a bright spot in our economy and is helping to drive our recovery. It's time for Congress to finish this Farm Bill and give the 16 million Americans working in agriculture the certainty they need and deserve."
"I am pleased that we were able to work together, putting aside partisanship to finally advance a five-year farm bill," said Rep. Collin Peterson (D-MN), Ranking Member of the House Agriculture Committee. "Compromise is rare in Washington these days but it's what is needed to actually get things done. While it's no secret that I do not support some of the final bill's provisions, I believe my reservations are outweighed by the need to provide long term certainty for agriculture and nutrition programs. This process has been going on far too long; I urge my colleagues to support this bill and the President to quickly sign it into law."
"This bill reflects a lot of hard work and conscientious effort to help strengthen American agriculture and assure consumers of food and fiber that it is nutritious and affordable," said Sen. Thad Cochran (R-Miss.), Ranking Member of the Senate Agriculture Committee. "The reforms, savings and other significant changes in this agreement will provide greater certainty to producers and rural communities, as well as American consumers. It deserves to be considered and enacted as soon as possible."
Enacting the Agricultural Act of 2014 will reform agriculture programs, reduce the deficit, and help farmers, ranchers and business owners grow the economy. The legislation:
• Repeals the direct payment program and strengthens risk management tools
• Repeals outdated programs and consolidates duplicative ones, eliminating nearly 100 programs or authorizations
• Helps farmers and ranchers create jobs and provides certainty for the 16 million Americans working in agriculture
• Strengthens conservation efforts to protect land, water and wildlife for future generations
• Maintains food assistance for families while addressing fraud and misuse in SNAP
• Reduces the deficit by billions of dollars in mandatory spending
Ends Direct Payments, Strengthens Risk Management
The Agricultural Act of 2014 reforms farm programs and saves taxpayer dollars by ending direct payments and other farm programs. The bill provides risk management tools that help American farmers and ranchers survive weather disasters and market volatility.
The bill also strengthens crop insurance, which is an essential cost-effective risk management tool. With crop insurance, farmers invest in their own risk management by purchasing insurance policies so they are protected in difficult times. Crop insurance also helps protect Americans from spikes in food prices. Without crop insurance farmers would have no way to recover from disaster unless the government steps in and provides unplanned disaster assistance. The effectiveness of crop insurance was underscored during the historic droughts of 2012, which impacted more than 80% of the country. Crop insurance protected farmers without the need for an emergency disaster relief bill.
Additionally, the bill provides a permanent livestock disaster assistance program for producers affected by natural disasters, and also covers producers who were affected by recent droughts, winter storms that hit the Northern Plains last year, and spring freezes that affected fruit growers in the Midwest.
Streamlines Programs, Strengthens Conservation
The Agricultural Act of 2014 consolidates 23 existing conservation programs into 13 programs while strengthening tools to protect and conserve land, water and wildlife. By streamlining programs, the farm bill provides added flexibility and ensures conservation programs are working for producers in the most effective and efficient way – an approach supported by nearly 650 conservation organizations from all 50 states.
Protects SNAP for Families, Reduces Fraud and Misuse
The bipartisan farm bill conference agreement maintains critical assistance for families while stopping fraud and misuse to achieve savings in the Supplemental Nutrition Assistance Program (SNAP). The farm bill agreement closes a loophole being used by some states to artificially inflate benefits for a small number of recipients. Additionally, the bipartisan agreement stops lottery winners from continuing to receive assistance, increases program efficiency, cracks down on trafficking, fraud and misuse, and invests in new pilot programs to help people secure employment through job training and other services. Savings in this section are reached without removing anyone from the SNAP program, and will ensure that every person receives the benefits they are intended to get under the current rules of the program.
Grows the Agricultural Economy
The Agricultural Act of 2014 reduces the deficit while strengthening top priorities that help to grow the agricultural economy. The bill:
• Boosts export opportunities to help farmers find new global markets for their goods
• Continues investments to meet growing consumer demand for fresh fruits and vegetables, local foods and organics by helping family farmers sell locally, increasing support for farmers' markets, and connecting farmers to schools and other community-based organizations
• Supports beginning farmers and ranchers with training and access to capital
• Increases assistance for food banks
• Reduces regulatory barriers
• Invests in state-run pilot projects to encourage and incentivize employment and training opportunities for families in need
• Creates initiatives to help veterans start agriculture businesses
• Grows American bio-based manufacturing (manufacturing processes using raw agricultural products grown in America)
• Expands bio-energy production, supporting non-food based advanced biomass energy production such as cellulosic ethanol and woody biomass power
• Invests in research to promote productivity and new agricultural innovations
• Strengthens rural development initiatives to help rural communities upgrade infrastructure and create a better environment for small businesses
Soybean Farmers Support Farm Bill Conference Report, Urge House and Senate to Vote “Yes”
The farmers of the American Soybean Association (ASA) congratulated conferees from the House and Senate as the final version of the much-anticipated farm bill was filed with the House clerk tonight and awaits action on the floor as soon as Wednesday.
ASA supports the bill, which provides for multiple soybean farmer priorities, most notably a flexible farm safety net that includes a choice between price-based and revenue-based risk management tools and maintains the decoupling of payments under both programs from current planted acreage.
“This has been a trying process to be sure, but we think that through it all, the conferees and their leadership have produced a framework that will serve the best interests of soybean farmers,” said Ray Gaesser, ASA President and farmer from Corning, Iowa. “Chairwoman Stabenow, Chairman Lucas and Ranking Members Cochran and Peterson deserve great credit and our sincere thanks for pushing this bill to the finish line. We are grateful for that hard work and perseverance, and we call on the House and the Senate to vote “yes” and bring the process to a conclusion.”
The bill includes a choice between an ASA-supported revenue program that covers both price and yield losses with county and farm level options, and a price support program which allows the optional purchase of insurance coverage under a Supplemental Coverage Option (SCO). The bill also eliminates controversial Direct Payments while maintaining decoupled farm support programs that will minimize the possibility of planting and production distortions that could trigger new WTO challenges. The language in Title 1 allows producers to choose between maintaining existing crop acreage base or reallocating their current base acreage to reflect average acres planted to covered commodities in 2009-2012.
“The bill establishes practical risk management programs that will protect us in difficult times. That’s been our top priority from day one,” said Gaesser. “But beyond that, we support this bill because it strengthens crop insurance; includes a streamlining and optimizing of conservation programs; funds critical energy and agricultural research initiatives; and invests in the trade development programs that are so critical to the soybean industry.”
On crop insurance, the bill makes enterprise units permanent, allows growers to purchase enterprise unit coverage for both irrigated and dryland crops, authorizes a new Supplemental Coverage Option (SCO), and will help to strengthen the next generation of agriculture by providing a 10 percent increase in premium support to beginning farmers and ranchers.
“Make no mistake, this bill represents a reform to the farm program,” added Gaesser. “It will make the programs on which we depend more relevant and more defensible, but it will also prevent those programs from distorting planting decisions and potentially impacting the marketplace.”
The bill also secures several other ASA priorities, including agricultural research programs like the Agriculture and Food Research Initiative (AFRI) and the new Foundation for Food and Agriculture Research (FFAR); the export promotion work done by the Foreign Market Development (FMD) and Market Access Program (MAP) on which soybeans depend as the nation’s top farm export; and key energy programs, including the Biodiesel Education Program and a strengthened Biobased Markets Program. Additionally, the bill consolidates 23 previous conservation programs into 13, while focusing conservation efforts on working lands.
“In addition to the bill’s victories for soybean farmers, it is important to note what the bill does for the country as a whole,” said Gaesser. “The bill still provides for those in need of food assistance by preserving the decades-old balance and partnership between farm and nutrition programs that has seen farm legislation through in years past. The bill also addresses our nation’s budgetary issues by cutting $24 billion over ten years, making agriculture the only industry sector that has come together despite its differences and contributed to deficit reduction.
“The bill is a compromise,” Gaesser added. “It ensures the continued success of American agriculture, and we encourage both the House and the Senate to pass it quickly.”
The bill now awaits action by the full House, which could come as soon as Wednesday.
Corn Growers Urge Swift Passage of 2014 Farm Bill
The following is a statement from National Corn Growers President Martin Barbre on the Agricultural Act of 2014, released by the House-Senate conference committee.
“We appreciate the hard work of the committee, especially Sens. Debbie Stabenow and Thad Cochran and Reps. Frank Lucas and Collin Peterson, for crafting a balanced compromise that ensures market-oriented reforms and effective risk management tools. Their work, and that of many of their colleagues, has resulted in policies and reforms that we believe will effectively meet the diverse needs of consumers and farmers around the country.
“We’re especially pleased the legislation provides an adequate and flexible farm safety net as well as strong federal crop insurance program. The new bill also includes an option for farmers to participate in a modified Agriculture Risk Coverage program.
“We urge swift passage by both houses of Congress and look forward to seeing this new bill become law as soon as possible.”
NMPF Statement on Completion of Farm Bill Dairy Title
Jim Mulhern, President and Chief Executive Officer, NMPF
“Over the past week, NMPF has worked with agriculture leaders in the House and Senate to develop a margin insurance program that will offer dairy farmers an effective safety net in the absence of the market stabilization component featured in our original program.
“That process is now complete. Despite its limitations, we believe the revised program will help address the volatility in farmers’ milk prices, as well as feed costs, and provide appropriate signals to help address supply and demand.
“The program that we have worked to develop establishes a reasonable and responsible national risk management tool that will give farmers the opportunity to insure against catastrophic economic conditions, when milk prices drop, feed prices soar, or the combination. By limiting how much future milk production growth can be insured, the measure creates a disincentive to produce excess milk. The mechanism used is not what we would have preferred, but it will be better than just a stand-alone margin insurance program that lacks any means to disincentivize more milk production during periods of over-supply
“Importantly, the program doesn’t discriminate against farms of differing sizes, or preferentially treat those in differing regions.
“The revised bill also establishes a system for the U.S. Department of Agriculture (USDA) purchase consumer-packaged dairy products during low-margin periods, which will stimulate demand and help dairy farmers when they need it most, and only then.
“We thank the principals of the House-Senate agriculture conference committee for working hard in an attempt to address the needs of dairy producers in this measure. We look forward to the passage of the overall farm bill, and will work diligently with the USDA to ensure the resulting dairy program is as effective and farmer-friendly as possible.”
NFU Pleased with Initial Read of Farm Bill Conference Report
National Farmers Union (NFU) President Roger Johnson issued the following statement following the 2014 Farm Bill Conference Committee’s release of its report on The Agricultural Act of 2014:
“Upon initial review of the language released by the committee, NFU is pleased with the final bill. I know that the farm bill is a long, laborious task and appreciate the work of leadership in both chambers, staff and all who made it possible to get this far in the process.
“I am encouraged to see provisions that benefit family farmers and ranchers in the bill, including approximately $4 billion in livestock disaster funds, retroactively available to those who suffered tremendous losses last October. It increases access for livestock producers to Environmental Quality Incentives Program (EQIP) benefits, along with many other supportive policies for the livestock industry.
“NFU is happy that Congress did not make any legislative changes to the Country-of-Origin Labeling (COOL) law or major adjustments to protections for producers under the Grain Inspection, Packers and Stockyards Administration (GIPSA).
“The NFU Board of Directors will meet tomorrow to review the bill, comparing it to the priorities that we have put forward to all members of Congress several times, but overall we are pleased to see the process move forward.”
House and Senate agriculture leaders today announced a bipartisan, bicameral agreement on a five-year farm bill that will reduce the deficit, grow the economy and provide certainty to the 16 million Americans whose jobs depend on agriculture. The Agricultural Act of 2014 contains major reforms including eliminating the direct payment program, streamlining and consolidating numerous programs to improve their effectiveness and reduce duplication, and cutting down on program misuse. The bill also strengthens our nation's commitment to support farmers and ranchers affected by natural disasters or significant economic losses, and renews a national commitment to protect land, water, and other natural resources.
"I am proud of our efforts to finish a farm bill conference report with significant savings and reforms," said Rep. Frank Lucas (R-OK), Chairman of the House Agriculture Committee. "We are putting in place sound policy that is good for farmers, ranchers, consumers, and those who have hit difficult times. I appreciate the work of everyone who helped in this process. We never lost sight of the goal, we never wavered in our commitment to enacting a five-year, comprehensive farm bill. I ask my colleagues to join me in supporting its passage."
"Today's bipartisan agreement puts us on the verge of enacting a five-year Farm Bill that saves taxpayers billions, eliminates unnecessary subsidies, creates a more effective farm safety-net and helps farmers and businesses create jobs," said Sen. Debbie Stabenow (D-MI), Chairwoman of the Senate Agriculture Committee. "This bill proves that by working across party lines we can reform programs to save taxpayer money while strengthening efforts to grow our economy. Agriculture is a bright spot in our economy and is helping to drive our recovery. It's time for Congress to finish this Farm Bill and give the 16 million Americans working in agriculture the certainty they need and deserve."
"I am pleased that we were able to work together, putting aside partisanship to finally advance a five-year farm bill," said Rep. Collin Peterson (D-MN), Ranking Member of the House Agriculture Committee. "Compromise is rare in Washington these days but it's what is needed to actually get things done. While it's no secret that I do not support some of the final bill's provisions, I believe my reservations are outweighed by the need to provide long term certainty for agriculture and nutrition programs. This process has been going on far too long; I urge my colleagues to support this bill and the President to quickly sign it into law."
"This bill reflects a lot of hard work and conscientious effort to help strengthen American agriculture and assure consumers of food and fiber that it is nutritious and affordable," said Sen. Thad Cochran (R-Miss.), Ranking Member of the Senate Agriculture Committee. "The reforms, savings and other significant changes in this agreement will provide greater certainty to producers and rural communities, as well as American consumers. It deserves to be considered and enacted as soon as possible."
Enacting the Agricultural Act of 2014 will reform agriculture programs, reduce the deficit, and help farmers, ranchers and business owners grow the economy. The legislation:
• Repeals the direct payment program and strengthens risk management tools
• Repeals outdated programs and consolidates duplicative ones, eliminating nearly 100 programs or authorizations
• Helps farmers and ranchers create jobs and provides certainty for the 16 million Americans working in agriculture
• Strengthens conservation efforts to protect land, water and wildlife for future generations
• Maintains food assistance for families while addressing fraud and misuse in SNAP
• Reduces the deficit by billions of dollars in mandatory spending
Ends Direct Payments, Strengthens Risk Management
The Agricultural Act of 2014 reforms farm programs and saves taxpayer dollars by ending direct payments and other farm programs. The bill provides risk management tools that help American farmers and ranchers survive weather disasters and market volatility.
The bill also strengthens crop insurance, which is an essential cost-effective risk management tool. With crop insurance, farmers invest in their own risk management by purchasing insurance policies so they are protected in difficult times. Crop insurance also helps protect Americans from spikes in food prices. Without crop insurance farmers would have no way to recover from disaster unless the government steps in and provides unplanned disaster assistance. The effectiveness of crop insurance was underscored during the historic droughts of 2012, which impacted more than 80% of the country. Crop insurance protected farmers without the need for an emergency disaster relief bill.
Additionally, the bill provides a permanent livestock disaster assistance program for producers affected by natural disasters, and also covers producers who were affected by recent droughts, winter storms that hit the Northern Plains last year, and spring freezes that affected fruit growers in the Midwest.
Streamlines Programs, Strengthens Conservation
The Agricultural Act of 2014 consolidates 23 existing conservation programs into 13 programs while strengthening tools to protect and conserve land, water and wildlife. By streamlining programs, the farm bill provides added flexibility and ensures conservation programs are working for producers in the most effective and efficient way – an approach supported by nearly 650 conservation organizations from all 50 states.
Protects SNAP for Families, Reduces Fraud and Misuse
The bipartisan farm bill conference agreement maintains critical assistance for families while stopping fraud and misuse to achieve savings in the Supplemental Nutrition Assistance Program (SNAP). The farm bill agreement closes a loophole being used by some states to artificially inflate benefits for a small number of recipients. Additionally, the bipartisan agreement stops lottery winners from continuing to receive assistance, increases program efficiency, cracks down on trafficking, fraud and misuse, and invests in new pilot programs to help people secure employment through job training and other services. Savings in this section are reached without removing anyone from the SNAP program, and will ensure that every person receives the benefits they are intended to get under the current rules of the program.
Grows the Agricultural Economy
The Agricultural Act of 2014 reduces the deficit while strengthening top priorities that help to grow the agricultural economy. The bill:
• Boosts export opportunities to help farmers find new global markets for their goods
• Continues investments to meet growing consumer demand for fresh fruits and vegetables, local foods and organics by helping family farmers sell locally, increasing support for farmers' markets, and connecting farmers to schools and other community-based organizations
• Supports beginning farmers and ranchers with training and access to capital
• Increases assistance for food banks
• Reduces regulatory barriers
• Invests in state-run pilot projects to encourage and incentivize employment and training opportunities for families in need
• Creates initiatives to help veterans start agriculture businesses
• Grows American bio-based manufacturing (manufacturing processes using raw agricultural products grown in America)
• Expands bio-energy production, supporting non-food based advanced biomass energy production such as cellulosic ethanol and woody biomass power
• Invests in research to promote productivity and new agricultural innovations
• Strengthens rural development initiatives to help rural communities upgrade infrastructure and create a better environment for small businesses
Soybean Farmers Support Farm Bill Conference Report, Urge House and Senate to Vote “Yes”
The farmers of the American Soybean Association (ASA) congratulated conferees from the House and Senate as the final version of the much-anticipated farm bill was filed with the House clerk tonight and awaits action on the floor as soon as Wednesday.
ASA supports the bill, which provides for multiple soybean farmer priorities, most notably a flexible farm safety net that includes a choice between price-based and revenue-based risk management tools and maintains the decoupling of payments under both programs from current planted acreage.
“This has been a trying process to be sure, but we think that through it all, the conferees and their leadership have produced a framework that will serve the best interests of soybean farmers,” said Ray Gaesser, ASA President and farmer from Corning, Iowa. “Chairwoman Stabenow, Chairman Lucas and Ranking Members Cochran and Peterson deserve great credit and our sincere thanks for pushing this bill to the finish line. We are grateful for that hard work and perseverance, and we call on the House and the Senate to vote “yes” and bring the process to a conclusion.”
The bill includes a choice between an ASA-supported revenue program that covers both price and yield losses with county and farm level options, and a price support program which allows the optional purchase of insurance coverage under a Supplemental Coverage Option (SCO). The bill also eliminates controversial Direct Payments while maintaining decoupled farm support programs that will minimize the possibility of planting and production distortions that could trigger new WTO challenges. The language in Title 1 allows producers to choose between maintaining existing crop acreage base or reallocating their current base acreage to reflect average acres planted to covered commodities in 2009-2012.
“The bill establishes practical risk management programs that will protect us in difficult times. That’s been our top priority from day one,” said Gaesser. “But beyond that, we support this bill because it strengthens crop insurance; includes a streamlining and optimizing of conservation programs; funds critical energy and agricultural research initiatives; and invests in the trade development programs that are so critical to the soybean industry.”
On crop insurance, the bill makes enterprise units permanent, allows growers to purchase enterprise unit coverage for both irrigated and dryland crops, authorizes a new Supplemental Coverage Option (SCO), and will help to strengthen the next generation of agriculture by providing a 10 percent increase in premium support to beginning farmers and ranchers.
“Make no mistake, this bill represents a reform to the farm program,” added Gaesser. “It will make the programs on which we depend more relevant and more defensible, but it will also prevent those programs from distorting planting decisions and potentially impacting the marketplace.”
The bill also secures several other ASA priorities, including agricultural research programs like the Agriculture and Food Research Initiative (AFRI) and the new Foundation for Food and Agriculture Research (FFAR); the export promotion work done by the Foreign Market Development (FMD) and Market Access Program (MAP) on which soybeans depend as the nation’s top farm export; and key energy programs, including the Biodiesel Education Program and a strengthened Biobased Markets Program. Additionally, the bill consolidates 23 previous conservation programs into 13, while focusing conservation efforts on working lands.
“In addition to the bill’s victories for soybean farmers, it is important to note what the bill does for the country as a whole,” said Gaesser. “The bill still provides for those in need of food assistance by preserving the decades-old balance and partnership between farm and nutrition programs that has seen farm legislation through in years past. The bill also addresses our nation’s budgetary issues by cutting $24 billion over ten years, making agriculture the only industry sector that has come together despite its differences and contributed to deficit reduction.
“The bill is a compromise,” Gaesser added. “It ensures the continued success of American agriculture, and we encourage both the House and the Senate to pass it quickly.”
The bill now awaits action by the full House, which could come as soon as Wednesday.
Corn Growers Urge Swift Passage of 2014 Farm Bill
The following is a statement from National Corn Growers President Martin Barbre on the Agricultural Act of 2014, released by the House-Senate conference committee.
“We appreciate the hard work of the committee, especially Sens. Debbie Stabenow and Thad Cochran and Reps. Frank Lucas and Collin Peterson, for crafting a balanced compromise that ensures market-oriented reforms and effective risk management tools. Their work, and that of many of their colleagues, has resulted in policies and reforms that we believe will effectively meet the diverse needs of consumers and farmers around the country.
“We’re especially pleased the legislation provides an adequate and flexible farm safety net as well as strong federal crop insurance program. The new bill also includes an option for farmers to participate in a modified Agriculture Risk Coverage program.
“We urge swift passage by both houses of Congress and look forward to seeing this new bill become law as soon as possible.”
NMPF Statement on Completion of Farm Bill Dairy Title
Jim Mulhern, President and Chief Executive Officer, NMPF
“Over the past week, NMPF has worked with agriculture leaders in the House and Senate to develop a margin insurance program that will offer dairy farmers an effective safety net in the absence of the market stabilization component featured in our original program.
“That process is now complete. Despite its limitations, we believe the revised program will help address the volatility in farmers’ milk prices, as well as feed costs, and provide appropriate signals to help address supply and demand.
“The program that we have worked to develop establishes a reasonable and responsible national risk management tool that will give farmers the opportunity to insure against catastrophic economic conditions, when milk prices drop, feed prices soar, or the combination. By limiting how much future milk production growth can be insured, the measure creates a disincentive to produce excess milk. The mechanism used is not what we would have preferred, but it will be better than just a stand-alone margin insurance program that lacks any means to disincentivize more milk production during periods of over-supply
“Importantly, the program doesn’t discriminate against farms of differing sizes, or preferentially treat those in differing regions.
“The revised bill also establishes a system for the U.S. Department of Agriculture (USDA) purchase consumer-packaged dairy products during low-margin periods, which will stimulate demand and help dairy farmers when they need it most, and only then.
“We thank the principals of the House-Senate agriculture conference committee for working hard in an attempt to address the needs of dairy producers in this measure. We look forward to the passage of the overall farm bill, and will work diligently with the USDA to ensure the resulting dairy program is as effective and farmer-friendly as possible.”
NFU Pleased with Initial Read of Farm Bill Conference Report
National Farmers Union (NFU) President Roger Johnson issued the following statement following the 2014 Farm Bill Conference Committee’s release of its report on The Agricultural Act of 2014:
“Upon initial review of the language released by the committee, NFU is pleased with the final bill. I know that the farm bill is a long, laborious task and appreciate the work of leadership in both chambers, staff and all who made it possible to get this far in the process.
“I am encouraged to see provisions that benefit family farmers and ranchers in the bill, including approximately $4 billion in livestock disaster funds, retroactively available to those who suffered tremendous losses last October. It increases access for livestock producers to Environmental Quality Incentives Program (EQIP) benefits, along with many other supportive policies for the livestock industry.
“NFU is happy that Congress did not make any legislative changes to the Country-of-Origin Labeling (COOL) law or major adjustments to protections for producers under the Grain Inspection, Packers and Stockyards Administration (GIPSA).
“The NFU Board of Directors will meet tomorrow to review the bill, comparing it to the priorities that we have put forward to all members of Congress several times, but overall we are pleased to see the process move forward.”
Monday January 27 Ag News
Nebraska Agricultural Water Management Network (NAWMN) Conference Feb. 7
Collaborators and partners in the NAWMN project are invited to a conference Feb. 7 in York. Registration will begin at 9 a.m. followed by a program from 9:25 a.m. to 3 p.m. The program will include updates on the NAWMN program and water sensor research, statewide status of NRDs, permanent installation and underground wireless systems, and an opportunity for growers to share their inventions and innovations. The event is free but participants need to RSVP by Feb. 4 to plan for the noon meal. Call 402-362-5508 or email gary.zoubek@unl.edu
Nebraska No-Till Conferences Feb. 11 in Syracuse, Feb. 13 in Holdrege
The Southeast Nebraska No-till Conference will be held from 9 a.m. to 4:30 p.m. Feb. 11 at the Kimmel Events Center in Syracuse. Charles Ellis, natural resource engineer at the University of Missouri Extension, will speak on cover crop seeding methods and how to build cover crops into a corn/soybean system. Also speaking are Paul Jasa, UNL extension engineer; Tina Barrett, Nebraska Farm Business Association manager; Paul Hay, UNL extension educator in Gage County, Ray Ward of Ward Laboratories, and a panel of area no-till farmers. Preregister by Feb. 7 by contacting Monte Vandeveer, Otoe County Extension at (402) 269-2301 or monte.vandeveer@unl.edu or Gary Lesoing, Nemaha County Extension at 402-274-4755 or gary.lesoing@unl.edu
A second Nebraska No-Till Conference will be held Feb. 13 at the Holdrege Ag Center on the Phelps County Fairgrounds. To preregister for that conference, contact Tyler Williams, Phelps County Extension at 308-995-4222 or email tyler.williams@unl.edu.
Heineman Announces Line-up for 26th Annual Governor’s Ag Conference
Gov. Dave Heineman today previewed the schedule for the 2014 Governor’s Ag Conference to be held Wednesday and Thursday, Mar. 5 and 6 at the Holiday Inn and Convention Center in Kearney. This year marks the 26th anniversary of the conference.
“This year’s conference will challenge conference attendees to think about both the current state and future of agriculture in Nebraska,” said Gov. Heineman. “Livestock welfare, biofuels, and telling the story of Nebraska’s ag industry will all be addressed, giving the farmers, ranchers and agribusiness leaders in attendance a variety of issues to discuss.”
The conference begins at 3:30 p.m. on Wednesday, Mar. 5. Randy Krotz, with the U.S. Farmers and Ranchers Alliance (USFRA), will begin the conference with a discussion about strategies to engage and educate consumers in meaningful conversations about agriculture.
Kay Johnson Smith with the Animal Agriculture Alliance based in Washington, D.C., will discuss current issues related to animal welfare and livestock production.
Todd Becker, president and chief executive officer of Green Plains Renewable Energy of Omaha will provide insights on current and future policy considerations for the biofuels sector. Green Plains Renewable Energy owns several ethanol plants across the Midwest, including four in Nebraska.
Dr. Ronnie Green, vice chancellor of the Institute of Agriculture and Natural Resources at the University of Nebraska-Lincoln, will discuss the results of University lead analysis that looks at the economic advantages of responsible livestock growth in Nebraska and policy considerations associated with such growth.
“There are some key policy issues that are undecided at this time, so the year 2014 could be pivotal for the agricultural industry,” said Director of the Nebraska Department of Agriculture Greg Ibach. “We feel the lineup of speakers will help prepare us with necessary information for the challenges that await the future of the industry.”
Other activities will include an update from Dr. Charles Hibberd with the University of Nebraska-Lincoln Extension on the new Nebraska Agriculture Experience that will debut at the 2014 Nebraska State Fair, and the “Celebrate Nebraska Agriculture” reception. The reception begins at 6 p.m. on Mar. 5, featuring a wide variety of Nebraska food products, and entertainment by the Dueling Duo, a pianist pair from Sioux Falls, South Dakota.
Anyone interested in agriculture issues is invited to attend. A $100 registration fee covers participation at activities on both Wednesday and Thursday. Registration is available online at www.nda.nebraska.gov, or by calling the Nebraska Department of Agriculture toll-free at (800) 831-0550.
NFU Grassroots Policy Discussions Begin in Washington
National Farmers Union (NFU) commenced its grassroots policy revision process this week with the 2014 policy committee in Washington, D.C. This year’s committee is comprised of Tim Velde (chairman) of Minnesota, Tom Coudron of Missouri, William Downs of Montana, Vern Jantzen of Nebraska, Joel Keierleber of South Dakota, Kim Klose of North Dakota, Aaron Heley Lehman of Iowa, Harvey Schroeder of Oklahoma, and Tom Wingfield of Rocky Mountain. The committee members are all outstanding leaders in their state/regional Farmers Union organizations and were nominated by their respective state’s president to serve on the committee.
“NFU is proud of its grassroots process for policy formation, and the policy committee is vital to carrying out that tradition,” said NFU President Roger Johnson. “The committee is tasked with reviewing our current policies and offering changes and additions for the delegates to vote on at our upcoming convention. This policy is what we will advocate for during the course of the next year.”
The committee will hear from Brian Baenig, chief of staff, U.S. Department of Agriculture (USDA); Sarah Bittleman, senior agricultural counselor, U.S. Environmental Protection Agency (EPA); and Doug McKalip, senior policy advisor for rural affairs, White House Domestic Policy Council, to ensure they have a broad working knowledge of current legislative and regulatory issues as they revise NFU’s organizational policy.
“The committee is here working just as the Farm Bill Conference Committee is hopefully wrapping up its negotiations,” said Johnson. “We hope that this week will prove to be productive in concluding a farm bill right alongside our ending the first phase of our policy process.”
This week is the first part of a two-step process. The second part of the process will take place in March during NFU’s convention. During the convention, any Farmers Union member may propose changes to the policy. The committee then considers those proposals and submits a final copy of the suggested policy to the state delegates at the convention for consideration and adoption. NFU’s 112th Anniversary Convention will take place on March 8 -11, in Santa Fe, N.M. Visit www.nfu.org/convention for more details.
NFU Says No to Packers and Processors Attempt to Hold Farm Bill Hostage
National Farmers Union (NFU) President Roger Johnson issued the following statement in response to a letter from the meatpacking industry sent today to Congress. The letter calls for Congress to gut the Country-of-Origin Labeling (COOL) law. It also proposes to dismantle protections for producers under the Grain Inspection Packers and Stockyards Administration (GIPSA). Finally, the letter threatens to oppose the farm bill unless its demands are met:
“NFU strongly disagrees with this letter and supports the livestock provisions in the emerging farm bill, which are beneficial to family farmers and ranchers. The groups that signed the letter do not represent farmers and ranchers. They represent the vertically integrated packers, and they clearly do not have the interests of family farmers and ranchers in mind.
“The farm bill conference includes several strong positives for livestock. Permanent baseline funding for livestock programs is part of the bill, including nearly $5 billion in disaster funds. The Livestock Forage Program is also set to be improved in this farm bill, as are the Environmental Quality Incentives Program and various livestock health initiatives.
“It is especially outrageous that on COOL, the outcome these organizations seek was not the subject of a single hearing in either the Senate or the House; it was not even proposed as an amendment on the floor of either chamber, nor was it debated in either committee. And they want to do this despite the fact that more than 90 percent of consumers want to know more about where their food comes from.
“I ask the conferees and all members of Congress to listen to the voices of family farmers, ranchers and consumers, and to support a conference committee report that makes improvements to livestock programs and stays strong on COOL and GIPSA. It is time to get this farm bill done.”
NFU and Nebraska Farmers Union both issued strongly worded defenses of the need for USDA to continue to have the authority to enforce the GIPSA regulations designed to protect individual livestock producers and the Country-of-Origin Labeling (COOL) law. The statements come in response to the sign on letter from the meat packers and their organizational allies to the Farm Bill Conferees threatening to oppose the Farm Bill unless they were able to gut COOL and dismantle GIPSA.
'Conservation: Iowa Grown, Nationally Known' to Launch Tuesday
Iowa's Soil and Water Conservation District (SWCD) Commissioners along with conservation partner agencies will meet for the annual Conservation Partnership Day held at the Capitol in Des Moines on Jan. 28.
The theme of this year's event is "Conservation: Iowa Grown, Nationally Known," and will include displays highlighting conservation efforts in each of the nine Conservation Districts of Iowa (CDI) regions across the state.
As a result of high quality soil, adequate water resources and highly-skilled farmers, Iowa continues to be a national leader in the production of corn, hogs, and eggs. CDI says it is vitally important that we continue to protect our soil and water to ensure the productivity of our land.
Governor Terry Branstad, Lieutenant Governor Kim Reynolds and Iowa Secretary of Agriculture Bill Northey will be visiting with the Commissioners and viewing displays around 11:00am on Tuesday. Nine displays from the Conservation Districts of Iowa will highlight watershed projects, wetlands, lake restoration, urban and agricultural conservation practices and more.
Keys to Conserving Propane for Pork Producers
The recent spike in propane prices is additional incentive for pork producers to conserve heating energy. Producers may have propane contracted at a reasonable rate, but managing heating costs should always be a priority, especially when expenses are rising.
“Often the first idea for saving heating fuel in hog buildings is to add insulation,” said Jay Harmon, Iowa State University professor in Ag and Biosystems Engineering and extension livestock production systems specialist. “However, ventilation management should actually come first because more than 80 percent of the heat loss in a swine building is due to improper ventilation.”
Harmon offers pork producers these tips for conserving propane this winter.
Proper ventilation rate
The goal during colder months is to control moisture and ammonia as much as possible. Underventilating a building will result in poor air quality and may cause health and growth problems with pigs. Conversely, over ventilating by just 20 percent can increase propane usage by 50 percent. In some cases, especially in wean to finish buildings, minimum ventilation fans may be too large, too many fans are used or the percent speed setting may be too high.
If over ventilation is occurring and you are using two fans for minimum ventilation, try turning off one fan and running the remaining one at a higher speed. Monitor air quality to be sure you are providing enough air. The percentage shown in the controller is likely not the percentage of fan capacity so it may take time to find the appropriate setting.
Adjust the temperature
The proper temperature is important for energy efficiency. Observe the pigs to determine their comfort level. If pigs are too cold, they will huddle and pile up when resting. If they’re too warm, they will avoid each other. Adjust the temperature so pigs sleep side by side but not in a pile. Just a few degrees difference can save a substantial amount of propane.
Adjust the heater
The controller should be adjusted so that minimum ventilation fan speed never increases while the heater is cycling. If the heater runs, then shuts down and you can hear a fan increase its speed, it means that the heater is shutting off too close to the setpoint. If you hear this happening, simply adjust the heater to shut off at a slightly lower temperature. In the case of one producer, it was documented that setting the heater to shut off one-half degree lower saved 3.75 gallons of LP per furnace per day.
Adjust the ventilation when using brooders
Some producers use brooders for small pigs. This allows them to keep the room cool, but the pigs feel warmer due to localized heating. If the setpoint is low, for instance 70 degrees, extra fans may switch on to maintain this cool temperature in the room. A better approach is to set the room setpoint just above the brooder temperature, 85 degrees for example, but to have your heater turn off at a lower temperature, such as 70 degrees. By preventing fans from cycling too early, this technique retains more heat in the building rather than discarding it through the ventilation system.
Seal leaks
Air leaks such as holes in ventilation curtains, leaky fan louvers or cracks around doors may create cold spots, which cause heaters to run longer than necessary. Eliminate these and other leaks to maintain air quality and to reduce propane consumption.
Ventilation workshops
Iowa State University Extension and Outreach offers ventilation workshops for swine producers to help them master these and other ventilation management concepts. If you are interested in learning more about upcoming workshops or in scheduling a workshop for a group, contact your local ISU Extension swine specialist or email Jay Harmon at jharmon@iastate.edu.
Visit http://farmenergy.exnet.iastate.edu for a free PDF copy of “Managing swine ventilation controller settings to save energy” and for more information about conserving propane all around the farmstead.
2014 Iowa Pork Regional Conferences slated for February 24-28
The Iowa Pork Producers Association has teamed up with the Iowa Pork Industry Center and Iowa State University Extension and Outreach swine specialists to host regional conferences February 24-28.
All sessions are hosted from 1 p.m. to 4:30 p.m. Conference dates and locations are as follows:
● Monday, Feb. 24 – Sheldon, Northwest Iowa Community College, Building A, room 119C
● Tuesday, Feb. 25 – Carroll, Carroll County Extension Office
● Wednesday, Feb. 26 – Nashua, Borlaug Learning Center
● Friday, Feb. 28 – Iowa City, Johnson County Extension Office
Conferences are free for those who pre-register or $5 at the door. Individuals can pre-register by calling IPPA at (800) 372-7675 or sending an e-mail to schristensen@iowapork.org.
“We strive to provide educational sessions that can provide a return on producer’s Pork Checkoff investment,” said Tyler Bettin, IPPA producer education director. “This year’s sessions should provide take home value for anyone involved in day-to-day pork production management.”
Everyone has heard of farmers that have suffered substantial losses due to barn system failures or other management challenges. But what can producers and contract growers do to prevent these losses or limit liability issues resulting from these losses should they occur? The Iowa pork regional conferences are pleased to bring back Dr. Mike Brumm, with Brumm Swine Consultancy, to walk producers through steps they can take to be better prepared and protected to prevent these losses or limit liability issues.
Additionally, Dr. Brumm will discuss what is included in his ideal barn walk-through. He will touch on his experiences working with farms across the Midwest with particular focus on everyday dos and don’ts that can impact the bottom line. Bring your employees along! This session is sure to offer some practical take-away points that may prove valuable on your farm.
Exports, domestic demand, health challenges and a multitude of other factors can impact livestock producer’s bottom line. Dr. Lee Schulz, livestock economist with Iowa State University, will dive into these issues and current projections, review forecasts for input costs and market hog value in 2014 and discuss what profit opportunity may be in store for producers in the year to come.
ISU Extension and Outreach service offers a number of programs and informational pieces to keep pork producers up to speed on emerging and continuing issues. Local ISU swine specialists will give an update regarding issues surrounding ventilation management, euthanasia techniques and antibiotic use and provide some key takeaway points from currently available resources and programs. Additionally, specialists will highlight opportunities for producers and their employees to become further educated on these and other industry challenges.
ISU swine specialists also will offer free PQA Plus training prior to each conference. Training will be hosted from 9:30 a.m. to 11:30 a.m. at each conference location. Contact Tyler Bettin at (800) 372-7675 or tbettin@iowapork.org for more information or to pre-register.
PEDv Spreads North to Canada
Canada has its first case of the PED virus. A farrow to finish operation in Ontario was confirmed with the disease last week, according to Ron Plain and Scott Brown of the University of Missouri. They wrote in their weekly column that the U.S. has more than 2,000 farms with PED. The virus is likely to trim 2 percent or so off of 2014 hog slaughter.
Also in their report, U.S. commercial hog slaughter in 2013 totaled 112,126,100 million head, the fourth highest ever. That was down 1,037,200 million head (0.9 percent) from the year before. Because of heavier slaughter weights, commercial pork production was down only 0.2 percent compared to 2012.
Grassley Seeks FTC Review of Reasons for Propane Price Spikes
Sen. Chuck Grassley of Iowa has asked the Federal Trade Commission (FTC) to review the conditions that have led to propane cost spikes in Iowa.
“The recent propane supply shortage and price increases are causing hardship for the many rural Iowa families that use propane to heat their homes,” Grassley said. “I’m asking the agency that oversees business practices to look at the propane situation and see whether the price increases are legitimate or manipulated in any way to consumers’ detriment.”
In the meantime, Grassley encouraged anyone who may be eligible for federal heating assistance to contact the Iowa Bureau of Energy Assistance for more information.
Grassley’s letter is copied below....
January 23, 2014
The Honorable Edith Ramirez
Chairwoman, Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 20580
Dear Chairwoman Ramirez:
I am writing to inquire about the Federal Trade Commission’s oversight of the propane market in the Midwest.
In recent days, the Midwest spot price of propane at Conway, Kansas, has spiked far above the Gulf Coast spot price at Mont Belvieu, Texas. I recognize that in the fall, the demand for propane to dry the large, wet corn harvest was significant. In addition, the Midwest has experienced increased demand for propane due to the current cold weather. However, the price for propane at Conway has surpassed the spot price in Mont Belvieu by as much as several dollars. Many of my constituents have questioned this considerable price differential. Moreover, in just the past few days, the spot price for propane in the Midwest has doubled.
I request that the Federal Trade Commission remain vigilant in overseeing the propane market to prevent possible anti-competitive behavior or illegal manipulation, and to ensure that any supply shortages are not created artificially. I look forward to hearing the results of your review of the propane market in the Midwest.
CME Considers Overhaul For Daily Grain Price Limits
CME Group Inc is considering a proposal to reset daily price limits for U.S. grain and oilseed futures every six months based on underlying price levels in agricultural markets, documents distributed by the exchange operator show. According to Reuters, the proposal would allow higher price limits when market prices are high and lower price limits when market prices are low, according to a CME fact sheet sent to market participants. Limits would always be approximately six percent of the underlying nearby contract price.
The exchange is collecting feedback on the proposal and hopes to complete any necessary submissions to regulators at the U.S. Commodity Futures Trading Commission by the end of February, a spokeswoman said. The exchange operator, which owns the Chicago Board of Trade, currently has initial daily price limits for grains and oilseeds that remain unchanged throughout the year.
Under the proposal being considered, the first reset date for price limits would be the first trading day in May. The newly calculated limits would remain in effect until the last trading day in October. The limits would be based on daily settlement prices collected for the July expirations for each of the CBOT grain and oilseed futures products over 45 consecutive trading days before and on the business day prior to April 16.
Average prices for each contract would be calculated based on the collected settlement prices and then multiplied by six percent. The resulting numbers would be rounded off for each contract, Reuters reports.
If a market settles up or down by the new limit during the six-month period, the limit would be expanded by 50 percent the next trading day, and remain at the expanded limit until no listed contracts settle at the expanded limit. The second reset date would be the first trading day in November. New limits would be calculated in a similar manner to the May reset.
Corn, soybeans, soft red winter wheat, hard red winter wheat, soybean oil, soybean meal, oats and rough rice futures would all be impacted by the change.
Brazilian Soy Harvest 3% Complete
Brazilian soybean harvest efforts continued to move forward, reaching 3% complete as of Friday, AgRural, a local farm consultancy, said Monday. The harvest is slightly ahead of last year when 2% of the crop had been collected at this point, it said. While concerns remain about hot, dry conditions in some areas and growing pest populations in others, the crop remains in generally excellent condition, it added.
Despite some heavy rains over the last week, the soybean harvest continues ahead of schedule in Mato Grosso, Brazil's No. 1 producing state. Farmers had collected 7% of the crop as of Friday compared with 6% one year before. Reports of good yields continue to roll in from across the state. For example, Nova Mutum is registering average productivity of 47 bushels per acre, while Primavera do Leste is posting averages of 52 bpa, said AgRural.
In contrast, farmers in the southern state of Parana, the No. 2 soy state, took advantage of a dry week to forge ahead with the harvesting of short-cycle soybeans. As a result, soybean harvesting was 2% complete as of Friday with work most advanced in the west of the state (6%), it said. Yields vary greatly across the state. In the extreme west, which was hit by drought in December, average yields are around 36 bpa, while in the central western zone, yields of up to 59 bpa have been registered.
Smithsonian Mobile Exhibition Explores the Human–Animal Bond
Checking the herd. Riding fences. Training a loyal dog. Our days include many interactions with animals—on the farm, the ranch and elsewhere. The connections we have with animals are complex and vast, and this relationship is explored in a mobile exhibition from the Smithsonian, “Animal Connections: Our Journey Together.”
”Animal Connections,” a custom-built exhibition housed on an 18-wheel truck that expands into 1,000 square feet of space, will be at the upcoming NCBA Convention in Nashville. Attendees can visit the exhibit, which will be Booth #337, in the Chuck Wagon Café, from 5 to 8 p.m. Tuesday, Feb. 4, and from 10 a.m. to 5 p.m. Wednesday, Feb. 5, and Thursday, Feb. 6.
Created in 2013 by the Smithsonian Institution Traveling Exhibition Service (SITES) to mark the 150th anniversary of the American Veterinary Medical Association (AMVA), ”Animal Connections” is made possible through the generous support of founding sponsor Zoetis, Inc. and the American Veterinary Medical Foundation.
“The exhibition is an introduction to the world of veterinary medicine and explores the shared responsibility for animals’ health and well-being that we all have,” said Christine Jenkins, Chief Veterinary Medical Officer-U.S. Zoetis, a company that discovers, develops and manufactures veterinary vaccines and medicines. “As part of our commitment to veterinarians and the animals they care for, we are proud to join with the Smithsonian and the AVMA in supporting ‘Animal Connections’ as a means to inspire young people to pursue careers in veterinary medicine and its allied professions.”
“The affection that people everywhere have for animals sparked our enthusiasm for an exhibit about veterinary medicine that would inspire lively conversations about the human–animal bond,” said Anna R. Cohn, director of SITES.
The exhibit uses a combination of interactive learning stations, films and touch screen videos, and three-dimensional settings to explore topics about animals on the farm, in the home, in the wild, at the zoo and in the veterinary clinic. A display in the farm section highlights the variety of tools stocked in the mobile clinics that large-animal veterinarians use to ensure they are prepared for any procedure. A virtual clinic at the center of the exhibition provides visitors the opportunity to play veterinarian. Through touch screens, they can examine and diagnose what ails their virtual patients—a dog, a piglet and a cheetah.
Visitors to “Animal Connections” can continue the learning experience online at animalconnections.com.
Zidua herbicide receives federal registration for wheat
BASF announced today that Zidua herbicide has received federal registration from the U.S. Environmental Protection Agency for spring and winter wheat.
Zidua herbicide provides wheat growers with a powerful tool to fight tough to control weeds like Italian ryegrass, annual bluegrass and canarygrass. In addition, Zidua herbicide suppresses many broadleaf and grasses in wheat including brome species, wild oat, foxtail species, kochia, pigweed, chickweed, henbit and wild mustard. Zidua herbicide was previously registered only for use in corn and soybeans.
Zidua herbicide utilizes a unique class of chemistry – pyroxasulfone. More than 10 years of research and field trials by BASF have demonstrated that Zidua herbicide provides excellent residual control of resistant weeds like Italian ryegrass.
“Wheat growers now have access to a new residual tool for long-lasting weed control with Zidua herbicide,” said Greg Armel, Ph.D., Technical Market Manager, BASF. “The pyroxasulfone in Zidua herbicide helps control Italian ryegrass weed populations, even those populations resistant to ALS-inhibitor and ACCase herbicides.”
Zidua herbicide is an inhibitor of very long-chain fatty acids, which controls susceptible germinating seedlings as they emerge from the soil. It is recommended for use in wheat as a delayed preemergence or post-emergence application. Zidua herbicide is an outstanding tank-mix partner for growers seeking extra residual activity on tough weeds in wheat.
Collaborators and partners in the NAWMN project are invited to a conference Feb. 7 in York. Registration will begin at 9 a.m. followed by a program from 9:25 a.m. to 3 p.m. The program will include updates on the NAWMN program and water sensor research, statewide status of NRDs, permanent installation and underground wireless systems, and an opportunity for growers to share their inventions and innovations. The event is free but participants need to RSVP by Feb. 4 to plan for the noon meal. Call 402-362-5508 or email gary.zoubek@unl.edu
Nebraska No-Till Conferences Feb. 11 in Syracuse, Feb. 13 in Holdrege
The Southeast Nebraska No-till Conference will be held from 9 a.m. to 4:30 p.m. Feb. 11 at the Kimmel Events Center in Syracuse. Charles Ellis, natural resource engineer at the University of Missouri Extension, will speak on cover crop seeding methods and how to build cover crops into a corn/soybean system. Also speaking are Paul Jasa, UNL extension engineer; Tina Barrett, Nebraska Farm Business Association manager; Paul Hay, UNL extension educator in Gage County, Ray Ward of Ward Laboratories, and a panel of area no-till farmers. Preregister by Feb. 7 by contacting Monte Vandeveer, Otoe County Extension at (402) 269-2301 or monte.vandeveer@unl.edu or Gary Lesoing, Nemaha County Extension at 402-274-4755 or gary.lesoing@unl.edu
A second Nebraska No-Till Conference will be held Feb. 13 at the Holdrege Ag Center on the Phelps County Fairgrounds. To preregister for that conference, contact Tyler Williams, Phelps County Extension at 308-995-4222 or email tyler.williams@unl.edu.
Heineman Announces Line-up for 26th Annual Governor’s Ag Conference
Gov. Dave Heineman today previewed the schedule for the 2014 Governor’s Ag Conference to be held Wednesday and Thursday, Mar. 5 and 6 at the Holiday Inn and Convention Center in Kearney. This year marks the 26th anniversary of the conference.
“This year’s conference will challenge conference attendees to think about both the current state and future of agriculture in Nebraska,” said Gov. Heineman. “Livestock welfare, biofuels, and telling the story of Nebraska’s ag industry will all be addressed, giving the farmers, ranchers and agribusiness leaders in attendance a variety of issues to discuss.”
The conference begins at 3:30 p.m. on Wednesday, Mar. 5. Randy Krotz, with the U.S. Farmers and Ranchers Alliance (USFRA), will begin the conference with a discussion about strategies to engage and educate consumers in meaningful conversations about agriculture.
Kay Johnson Smith with the Animal Agriculture Alliance based in Washington, D.C., will discuss current issues related to animal welfare and livestock production.
Todd Becker, president and chief executive officer of Green Plains Renewable Energy of Omaha will provide insights on current and future policy considerations for the biofuels sector. Green Plains Renewable Energy owns several ethanol plants across the Midwest, including four in Nebraska.
Dr. Ronnie Green, vice chancellor of the Institute of Agriculture and Natural Resources at the University of Nebraska-Lincoln, will discuss the results of University lead analysis that looks at the economic advantages of responsible livestock growth in Nebraska and policy considerations associated with such growth.
“There are some key policy issues that are undecided at this time, so the year 2014 could be pivotal for the agricultural industry,” said Director of the Nebraska Department of Agriculture Greg Ibach. “We feel the lineup of speakers will help prepare us with necessary information for the challenges that await the future of the industry.”
Other activities will include an update from Dr. Charles Hibberd with the University of Nebraska-Lincoln Extension on the new Nebraska Agriculture Experience that will debut at the 2014 Nebraska State Fair, and the “Celebrate Nebraska Agriculture” reception. The reception begins at 6 p.m. on Mar. 5, featuring a wide variety of Nebraska food products, and entertainment by the Dueling Duo, a pianist pair from Sioux Falls, South Dakota.
Anyone interested in agriculture issues is invited to attend. A $100 registration fee covers participation at activities on both Wednesday and Thursday. Registration is available online at www.nda.nebraska.gov, or by calling the Nebraska Department of Agriculture toll-free at (800) 831-0550.
NFU Grassroots Policy Discussions Begin in Washington
National Farmers Union (NFU) commenced its grassroots policy revision process this week with the 2014 policy committee in Washington, D.C. This year’s committee is comprised of Tim Velde (chairman) of Minnesota, Tom Coudron of Missouri, William Downs of Montana, Vern Jantzen of Nebraska, Joel Keierleber of South Dakota, Kim Klose of North Dakota, Aaron Heley Lehman of Iowa, Harvey Schroeder of Oklahoma, and Tom Wingfield of Rocky Mountain. The committee members are all outstanding leaders in their state/regional Farmers Union organizations and were nominated by their respective state’s president to serve on the committee.
“NFU is proud of its grassroots process for policy formation, and the policy committee is vital to carrying out that tradition,” said NFU President Roger Johnson. “The committee is tasked with reviewing our current policies and offering changes and additions for the delegates to vote on at our upcoming convention. This policy is what we will advocate for during the course of the next year.”
The committee will hear from Brian Baenig, chief of staff, U.S. Department of Agriculture (USDA); Sarah Bittleman, senior agricultural counselor, U.S. Environmental Protection Agency (EPA); and Doug McKalip, senior policy advisor for rural affairs, White House Domestic Policy Council, to ensure they have a broad working knowledge of current legislative and regulatory issues as they revise NFU’s organizational policy.
“The committee is here working just as the Farm Bill Conference Committee is hopefully wrapping up its negotiations,” said Johnson. “We hope that this week will prove to be productive in concluding a farm bill right alongside our ending the first phase of our policy process.”
This week is the first part of a two-step process. The second part of the process will take place in March during NFU’s convention. During the convention, any Farmers Union member may propose changes to the policy. The committee then considers those proposals and submits a final copy of the suggested policy to the state delegates at the convention for consideration and adoption. NFU’s 112th Anniversary Convention will take place on March 8 -11, in Santa Fe, N.M. Visit www.nfu.org/convention for more details.
NFU Says No to Packers and Processors Attempt to Hold Farm Bill Hostage
National Farmers Union (NFU) President Roger Johnson issued the following statement in response to a letter from the meatpacking industry sent today to Congress. The letter calls for Congress to gut the Country-of-Origin Labeling (COOL) law. It also proposes to dismantle protections for producers under the Grain Inspection Packers and Stockyards Administration (GIPSA). Finally, the letter threatens to oppose the farm bill unless its demands are met:
“NFU strongly disagrees with this letter and supports the livestock provisions in the emerging farm bill, which are beneficial to family farmers and ranchers. The groups that signed the letter do not represent farmers and ranchers. They represent the vertically integrated packers, and they clearly do not have the interests of family farmers and ranchers in mind.
“The farm bill conference includes several strong positives for livestock. Permanent baseline funding for livestock programs is part of the bill, including nearly $5 billion in disaster funds. The Livestock Forage Program is also set to be improved in this farm bill, as are the Environmental Quality Incentives Program and various livestock health initiatives.
“It is especially outrageous that on COOL, the outcome these organizations seek was not the subject of a single hearing in either the Senate or the House; it was not even proposed as an amendment on the floor of either chamber, nor was it debated in either committee. And they want to do this despite the fact that more than 90 percent of consumers want to know more about where their food comes from.
“I ask the conferees and all members of Congress to listen to the voices of family farmers, ranchers and consumers, and to support a conference committee report that makes improvements to livestock programs and stays strong on COOL and GIPSA. It is time to get this farm bill done.”
NFU and Nebraska Farmers Union both issued strongly worded defenses of the need for USDA to continue to have the authority to enforce the GIPSA regulations designed to protect individual livestock producers and the Country-of-Origin Labeling (COOL) law. The statements come in response to the sign on letter from the meat packers and their organizational allies to the Farm Bill Conferees threatening to oppose the Farm Bill unless they were able to gut COOL and dismantle GIPSA.
'Conservation: Iowa Grown, Nationally Known' to Launch Tuesday
Iowa's Soil and Water Conservation District (SWCD) Commissioners along with conservation partner agencies will meet for the annual Conservation Partnership Day held at the Capitol in Des Moines on Jan. 28.
The theme of this year's event is "Conservation: Iowa Grown, Nationally Known," and will include displays highlighting conservation efforts in each of the nine Conservation Districts of Iowa (CDI) regions across the state.
As a result of high quality soil, adequate water resources and highly-skilled farmers, Iowa continues to be a national leader in the production of corn, hogs, and eggs. CDI says it is vitally important that we continue to protect our soil and water to ensure the productivity of our land.
Governor Terry Branstad, Lieutenant Governor Kim Reynolds and Iowa Secretary of Agriculture Bill Northey will be visiting with the Commissioners and viewing displays around 11:00am on Tuesday. Nine displays from the Conservation Districts of Iowa will highlight watershed projects, wetlands, lake restoration, urban and agricultural conservation practices and more.
Keys to Conserving Propane for Pork Producers
The recent spike in propane prices is additional incentive for pork producers to conserve heating energy. Producers may have propane contracted at a reasonable rate, but managing heating costs should always be a priority, especially when expenses are rising.
“Often the first idea for saving heating fuel in hog buildings is to add insulation,” said Jay Harmon, Iowa State University professor in Ag and Biosystems Engineering and extension livestock production systems specialist. “However, ventilation management should actually come first because more than 80 percent of the heat loss in a swine building is due to improper ventilation.”
Harmon offers pork producers these tips for conserving propane this winter.
Proper ventilation rate
The goal during colder months is to control moisture and ammonia as much as possible. Underventilating a building will result in poor air quality and may cause health and growth problems with pigs. Conversely, over ventilating by just 20 percent can increase propane usage by 50 percent. In some cases, especially in wean to finish buildings, minimum ventilation fans may be too large, too many fans are used or the percent speed setting may be too high.
If over ventilation is occurring and you are using two fans for minimum ventilation, try turning off one fan and running the remaining one at a higher speed. Monitor air quality to be sure you are providing enough air. The percentage shown in the controller is likely not the percentage of fan capacity so it may take time to find the appropriate setting.
Adjust the temperature
The proper temperature is important for energy efficiency. Observe the pigs to determine their comfort level. If pigs are too cold, they will huddle and pile up when resting. If they’re too warm, they will avoid each other. Adjust the temperature so pigs sleep side by side but not in a pile. Just a few degrees difference can save a substantial amount of propane.
Adjust the heater
The controller should be adjusted so that minimum ventilation fan speed never increases while the heater is cycling. If the heater runs, then shuts down and you can hear a fan increase its speed, it means that the heater is shutting off too close to the setpoint. If you hear this happening, simply adjust the heater to shut off at a slightly lower temperature. In the case of one producer, it was documented that setting the heater to shut off one-half degree lower saved 3.75 gallons of LP per furnace per day.
Adjust the ventilation when using brooders
Some producers use brooders for small pigs. This allows them to keep the room cool, but the pigs feel warmer due to localized heating. If the setpoint is low, for instance 70 degrees, extra fans may switch on to maintain this cool temperature in the room. A better approach is to set the room setpoint just above the brooder temperature, 85 degrees for example, but to have your heater turn off at a lower temperature, such as 70 degrees. By preventing fans from cycling too early, this technique retains more heat in the building rather than discarding it through the ventilation system.
Seal leaks
Air leaks such as holes in ventilation curtains, leaky fan louvers or cracks around doors may create cold spots, which cause heaters to run longer than necessary. Eliminate these and other leaks to maintain air quality and to reduce propane consumption.
Ventilation workshops
Iowa State University Extension and Outreach offers ventilation workshops for swine producers to help them master these and other ventilation management concepts. If you are interested in learning more about upcoming workshops or in scheduling a workshop for a group, contact your local ISU Extension swine specialist or email Jay Harmon at jharmon@iastate.edu.
Visit http://farmenergy.exnet.iastate.edu for a free PDF copy of “Managing swine ventilation controller settings to save energy” and for more information about conserving propane all around the farmstead.
2014 Iowa Pork Regional Conferences slated for February 24-28
The Iowa Pork Producers Association has teamed up with the Iowa Pork Industry Center and Iowa State University Extension and Outreach swine specialists to host regional conferences February 24-28.
All sessions are hosted from 1 p.m. to 4:30 p.m. Conference dates and locations are as follows:
● Monday, Feb. 24 – Sheldon, Northwest Iowa Community College, Building A, room 119C
● Tuesday, Feb. 25 – Carroll, Carroll County Extension Office
● Wednesday, Feb. 26 – Nashua, Borlaug Learning Center
● Friday, Feb. 28 – Iowa City, Johnson County Extension Office
Conferences are free for those who pre-register or $5 at the door. Individuals can pre-register by calling IPPA at (800) 372-7675 or sending an e-mail to schristensen@iowapork.org.
“We strive to provide educational sessions that can provide a return on producer’s Pork Checkoff investment,” said Tyler Bettin, IPPA producer education director. “This year’s sessions should provide take home value for anyone involved in day-to-day pork production management.”
Everyone has heard of farmers that have suffered substantial losses due to barn system failures or other management challenges. But what can producers and contract growers do to prevent these losses or limit liability issues resulting from these losses should they occur? The Iowa pork regional conferences are pleased to bring back Dr. Mike Brumm, with Brumm Swine Consultancy, to walk producers through steps they can take to be better prepared and protected to prevent these losses or limit liability issues.
Additionally, Dr. Brumm will discuss what is included in his ideal barn walk-through. He will touch on his experiences working with farms across the Midwest with particular focus on everyday dos and don’ts that can impact the bottom line. Bring your employees along! This session is sure to offer some practical take-away points that may prove valuable on your farm.
Exports, domestic demand, health challenges and a multitude of other factors can impact livestock producer’s bottom line. Dr. Lee Schulz, livestock economist with Iowa State University, will dive into these issues and current projections, review forecasts for input costs and market hog value in 2014 and discuss what profit opportunity may be in store for producers in the year to come.
ISU Extension and Outreach service offers a number of programs and informational pieces to keep pork producers up to speed on emerging and continuing issues. Local ISU swine specialists will give an update regarding issues surrounding ventilation management, euthanasia techniques and antibiotic use and provide some key takeaway points from currently available resources and programs. Additionally, specialists will highlight opportunities for producers and their employees to become further educated on these and other industry challenges.
ISU swine specialists also will offer free PQA Plus training prior to each conference. Training will be hosted from 9:30 a.m. to 11:30 a.m. at each conference location. Contact Tyler Bettin at (800) 372-7675 or tbettin@iowapork.org for more information or to pre-register.
PEDv Spreads North to Canada
Canada has its first case of the PED virus. A farrow to finish operation in Ontario was confirmed with the disease last week, according to Ron Plain and Scott Brown of the University of Missouri. They wrote in their weekly column that the U.S. has more than 2,000 farms with PED. The virus is likely to trim 2 percent or so off of 2014 hog slaughter.
Also in their report, U.S. commercial hog slaughter in 2013 totaled 112,126,100 million head, the fourth highest ever. That was down 1,037,200 million head (0.9 percent) from the year before. Because of heavier slaughter weights, commercial pork production was down only 0.2 percent compared to 2012.
Grassley Seeks FTC Review of Reasons for Propane Price Spikes
Sen. Chuck Grassley of Iowa has asked the Federal Trade Commission (FTC) to review the conditions that have led to propane cost spikes in Iowa.
“The recent propane supply shortage and price increases are causing hardship for the many rural Iowa families that use propane to heat their homes,” Grassley said. “I’m asking the agency that oversees business practices to look at the propane situation and see whether the price increases are legitimate or manipulated in any way to consumers’ detriment.”
In the meantime, Grassley encouraged anyone who may be eligible for federal heating assistance to contact the Iowa Bureau of Energy Assistance for more information.
Grassley’s letter is copied below....
January 23, 2014
The Honorable Edith Ramirez
Chairwoman, Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 20580
Dear Chairwoman Ramirez:
I am writing to inquire about the Federal Trade Commission’s oversight of the propane market in the Midwest.
In recent days, the Midwest spot price of propane at Conway, Kansas, has spiked far above the Gulf Coast spot price at Mont Belvieu, Texas. I recognize that in the fall, the demand for propane to dry the large, wet corn harvest was significant. In addition, the Midwest has experienced increased demand for propane due to the current cold weather. However, the price for propane at Conway has surpassed the spot price in Mont Belvieu by as much as several dollars. Many of my constituents have questioned this considerable price differential. Moreover, in just the past few days, the spot price for propane in the Midwest has doubled.
I request that the Federal Trade Commission remain vigilant in overseeing the propane market to prevent possible anti-competitive behavior or illegal manipulation, and to ensure that any supply shortages are not created artificially. I look forward to hearing the results of your review of the propane market in the Midwest.
CME Considers Overhaul For Daily Grain Price Limits
CME Group Inc is considering a proposal to reset daily price limits for U.S. grain and oilseed futures every six months based on underlying price levels in agricultural markets, documents distributed by the exchange operator show. According to Reuters, the proposal would allow higher price limits when market prices are high and lower price limits when market prices are low, according to a CME fact sheet sent to market participants. Limits would always be approximately six percent of the underlying nearby contract price.
The exchange is collecting feedback on the proposal and hopes to complete any necessary submissions to regulators at the U.S. Commodity Futures Trading Commission by the end of February, a spokeswoman said. The exchange operator, which owns the Chicago Board of Trade, currently has initial daily price limits for grains and oilseeds that remain unchanged throughout the year.
Under the proposal being considered, the first reset date for price limits would be the first trading day in May. The newly calculated limits would remain in effect until the last trading day in October. The limits would be based on daily settlement prices collected for the July expirations for each of the CBOT grain and oilseed futures products over 45 consecutive trading days before and on the business day prior to April 16.
Average prices for each contract would be calculated based on the collected settlement prices and then multiplied by six percent. The resulting numbers would be rounded off for each contract, Reuters reports.
If a market settles up or down by the new limit during the six-month period, the limit would be expanded by 50 percent the next trading day, and remain at the expanded limit until no listed contracts settle at the expanded limit. The second reset date would be the first trading day in November. New limits would be calculated in a similar manner to the May reset.
Corn, soybeans, soft red winter wheat, hard red winter wheat, soybean oil, soybean meal, oats and rough rice futures would all be impacted by the change.
Brazilian Soy Harvest 3% Complete
Brazilian soybean harvest efforts continued to move forward, reaching 3% complete as of Friday, AgRural, a local farm consultancy, said Monday. The harvest is slightly ahead of last year when 2% of the crop had been collected at this point, it said. While concerns remain about hot, dry conditions in some areas and growing pest populations in others, the crop remains in generally excellent condition, it added.
Despite some heavy rains over the last week, the soybean harvest continues ahead of schedule in Mato Grosso, Brazil's No. 1 producing state. Farmers had collected 7% of the crop as of Friday compared with 6% one year before. Reports of good yields continue to roll in from across the state. For example, Nova Mutum is registering average productivity of 47 bushels per acre, while Primavera do Leste is posting averages of 52 bpa, said AgRural.
In contrast, farmers in the southern state of Parana, the No. 2 soy state, took advantage of a dry week to forge ahead with the harvesting of short-cycle soybeans. As a result, soybean harvesting was 2% complete as of Friday with work most advanced in the west of the state (6%), it said. Yields vary greatly across the state. In the extreme west, which was hit by drought in December, average yields are around 36 bpa, while in the central western zone, yields of up to 59 bpa have been registered.
Smithsonian Mobile Exhibition Explores the Human–Animal Bond
Checking the herd. Riding fences. Training a loyal dog. Our days include many interactions with animals—on the farm, the ranch and elsewhere. The connections we have with animals are complex and vast, and this relationship is explored in a mobile exhibition from the Smithsonian, “Animal Connections: Our Journey Together.”
”Animal Connections,” a custom-built exhibition housed on an 18-wheel truck that expands into 1,000 square feet of space, will be at the upcoming NCBA Convention in Nashville. Attendees can visit the exhibit, which will be Booth #337, in the Chuck Wagon Café, from 5 to 8 p.m. Tuesday, Feb. 4, and from 10 a.m. to 5 p.m. Wednesday, Feb. 5, and Thursday, Feb. 6.
Created in 2013 by the Smithsonian Institution Traveling Exhibition Service (SITES) to mark the 150th anniversary of the American Veterinary Medical Association (AMVA), ”Animal Connections” is made possible through the generous support of founding sponsor Zoetis, Inc. and the American Veterinary Medical Foundation.
“The exhibition is an introduction to the world of veterinary medicine and explores the shared responsibility for animals’ health and well-being that we all have,” said Christine Jenkins, Chief Veterinary Medical Officer-U.S. Zoetis, a company that discovers, develops and manufactures veterinary vaccines and medicines. “As part of our commitment to veterinarians and the animals they care for, we are proud to join with the Smithsonian and the AVMA in supporting ‘Animal Connections’ as a means to inspire young people to pursue careers in veterinary medicine and its allied professions.”
“The affection that people everywhere have for animals sparked our enthusiasm for an exhibit about veterinary medicine that would inspire lively conversations about the human–animal bond,” said Anna R. Cohn, director of SITES.
The exhibit uses a combination of interactive learning stations, films and touch screen videos, and three-dimensional settings to explore topics about animals on the farm, in the home, in the wild, at the zoo and in the veterinary clinic. A display in the farm section highlights the variety of tools stocked in the mobile clinics that large-animal veterinarians use to ensure they are prepared for any procedure. A virtual clinic at the center of the exhibition provides visitors the opportunity to play veterinarian. Through touch screens, they can examine and diagnose what ails their virtual patients—a dog, a piglet and a cheetah.
Visitors to “Animal Connections” can continue the learning experience online at animalconnections.com.
Zidua herbicide receives federal registration for wheat
BASF announced today that Zidua herbicide has received federal registration from the U.S. Environmental Protection Agency for spring and winter wheat.
Zidua herbicide provides wheat growers with a powerful tool to fight tough to control weeds like Italian ryegrass, annual bluegrass and canarygrass. In addition, Zidua herbicide suppresses many broadleaf and grasses in wheat including brome species, wild oat, foxtail species, kochia, pigweed, chickweed, henbit and wild mustard. Zidua herbicide was previously registered only for use in corn and soybeans.
Zidua herbicide utilizes a unique class of chemistry – pyroxasulfone. More than 10 years of research and field trials by BASF have demonstrated that Zidua herbicide provides excellent residual control of resistant weeds like Italian ryegrass.
“Wheat growers now have access to a new residual tool for long-lasting weed control with Zidua herbicide,” said Greg Armel, Ph.D., Technical Market Manager, BASF. “The pyroxasulfone in Zidua herbicide helps control Italian ryegrass weed populations, even those populations resistant to ALS-inhibitor and ACCase herbicides.”
Zidua herbicide is an inhibitor of very long-chain fatty acids, which controls susceptible germinating seedlings as they emerge from the soil. It is recommended for use in wheat as a delayed preemergence or post-emergence application. Zidua herbicide is an outstanding tank-mix partner for growers seeking extra residual activity on tough weeds in wheat.
Friday, January 24, 2014
Friday January 24 Cattle on Feed Report + Ag News
United States Cattle on Feed Down 5 Percent
Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.6 million head on January 1, 2014. The inventory was 5 percent below January 1, 2013. The inventory included 6.78 million steers and steer calves, down 4 percent from the previous year. This group accounted for 64 percent of the total inventory. Heifers and heifer calves accounted for 3.73 million head, down 8 percent from 2013.
Placements in feedlots during December totaled 1.68 million, 1 percent above 2012. Net placements were 1.60 million head. During December, placements of cattle and calves weighing less than 600 pounds were 485,000, 600-699 pounds were 420,000, 700-799 pounds were 391,000, and 800 pounds and greater were 385,000.
Marketings of fed cattle during December totaled 1.74 million, 1 percent below 2012. Other disappearance totaled 77,000 during December, 4 percent above 2012.
NEBRASKA CATTLE ON FEED DOWN 3 PERCENT
Nebraska feedlots, with capacities of 1,000 or more head, contained 2.40 million cattle on feed on January 1, according to the USDA’s National Agricultural Statistics Service. This inventory was down 3 percent from last year. Placements during December totaled 405,000 head, up 4 percent from 2012. Fed cattle marketings for the month of December totaled 420,000 head, down 1 percent from last year. Other disappearance during December totaled 15,000 head, unchanged from last year.
Iowa Cattle on Feed +3%
Cattle and calves on feed for slaughter market in Iowa for all feedlots totaled 1,370,000 on January 1, 2014 according to the USDA, National Agricultural Statistics Service, Iowa Field Office. The inventory is up 3 percent from December 1, 2013 and up 7 percent from January 1, 2013. Feedlots with a capacity greater than 1,000 head had 620,000 head on feed, up 2 percent from last month but unchanged from last year. Feedlots with a capacity less than 1,000 head had 750,000 head on feed, up 3 percent from last month and up 14 percent from last year.
Placements during December totaled 206,000 head, a decrease of 25 percent from last month but up 27 percent from last year. Feedlots with a capacity greater than 1,000 head placed 96,000 head, down 21 percent from last month but up 17 percent from last year. Feedlots with a capacity less than 1,000 head placed 110,000 head. This is down 29 percent from last month but up 38 percent from last year.
Marketings for December were 164,000 head, down 16 percent from last month but up 14 percent from last year. Feedlots with a capacity greater than 1,000 head marketed 84,000 head, down 16 percent from last month but up 24 percent from last year. Feedlots with a capacity less than 1,000 head marketed 80,000 head, down 16 percent from last month but up 5 percent from last year. Other disappearance totaled 7,000 head.
Number of Cattle on Feed on 1,000+ Capacity Feedlots by Month - States and US: 2013 and 2014
---------------------------------------------------------------------------------------------------
: : : January 1, 2014
: : : --------------------------------------------
State :Jan 1 2013 : Dec 1 2013 : Percent of : Percent of
: : : Number :previous year :previous month
----------------------------------------------------------------------------------------------------------------------
: --------------- 1,000 head -------------- ----- percent ----
Arizona ..........: 272 275 274 101 100
California ........: 480 505 510 106 101
Colorado ........: 1,000 970 960 96 99
Idaho .............: 230 225 220 96 98
Iowa ...............: 620 610 620 100 102
Kansas ..........: 2,110 2,050 2,010 95 98
Nebraska .......: 2,480 2,430 2,400 97 99
Oklahoma ......: 345 265 260 75 98
South Dakota .: 230 220 230 100 105
Texas ............: 2,720 2,510 2,440 90 97
Washington ...: 247 207 201 81 97
Other States ..: 459 458 468 102 102
United States : 11,193 10,725 10,593 95 99
Number of Cattle Placed on Feed on 1,000+ Capacity Feedlots by Month - States and US: 2012 and 2013
---------------------------------------------------------------------------------------------
: : : During December 2013
: During : During :--------------------------------------------
State :Dec 2012:Nov 2013 : : Percent of : Percent of
: : : Number: previous year :previous month
---------------------------------------------------------------------------------------------
: ------------ 1,000 head ----------- ----- percent ----
Arizona ..........: 29 30 28 97 93
California ........: 50 64 59 118 92
Colorado ........: 140 170 150 107 88
Idaho .............: 26 42 32 123 76
Iowa ..............: 82 122 96 117 79
Kansas ..........: 365 370 360 99 97
Nebraska .......: 390 475 405 104 85
Oklahoma ......: 52 42 43 83 102
South Dakota .: 34 63 43 126 68
Texas ............: 415 405 370 89 91
Washington ....: 25 44 34 136 77
Other States ...: 56 55 61 109 111
United States ..: 1,664 1,882 1,681 101 89
Number of Cattle Marketed on 1,000+ Capacity Feedlots by Month - States and US: 2012 and 2013
---------------------------------------------------------------------------------------------
: : : During December 2013
: During : During : --------------------------------------------
State :Dec 2012:Nov 2013 : : Percent of : Percent of
: : : Number : previous year : previous month
---------------------------------------------------------------------------------------------
: ------------ 1,000 head ----------- ----- percent ----
:
Arizona ..........: 23 24 28 122 117
California ........: 55 52 52 95 100
Colorado ........: 155 145 150 97 103
Idaho .............: 40 36 36 90 100
Iowa ..............: 68 100 84 124 84
Kansas ..........: 425 350 385 91 110
Nebraska .......: 425 400 420 99 105
Oklahoma ......: 49 45 45 92 100
South Dakota .: 33 41 30 91 73
Texas ............: 380 405 420 111 104
Washington ....: 38 39 37 97 95
Other States ...: 54 44 49 91 111
United States ..: 1,745 1,681 1,736 99 103
---
Nebraska Farm Bureau Urges EPA to Maintain Renewable Fuels Standard for Ethanol
Nebraska Farm Bureau is urging the Environmental Protection Agency (EPA) to stay the course on the corn ethanol requirements under the 2014 Renewable Fuel Standard (RFS). The EPA released proposed changes to the 2014 RFS last fall which would set the overall RFS at 15.21 billion gallons, including 2.2 billion gallons for biodiesel and advanced biofuels. The proposal would put the corn ethanol number at just 13 billion gallons, well below the 14.4 billion gallons that would have been required under the law’s original targets.
“The U.S. ag sector has seen tremendous growth since the RFS was put in place in 2007. Total U.S. agriculture exports have increased by 57 percent, livestock output is up 31 percent and crop output is up 44 percent. Corn ethanol is clearly a part of the reason for that success and to change the course on ethanol in the RFS would be a mistake,” said Steve Nelson, Nebraska Farm Bureau president.
That message was reiterated by Richardson County Farm Bureau member Ben Steffen who offered testimony on behalf of Nebraska Farm Bureau before Iowa Gov. Terry Branstad at a listening session held Jan. 23 in Des Moines, Iowa. Steffen is a dairy and corn farmer from Humboldt, Neb.
“As a dairy farmer, we have used ethanol co-products to feed our dairy cattle and ethanol has also opened new market opportunities for the grain we produce. Without the ethanol standard in the RFS we wouldn’t have seen some of the positive economic benefits that have helped our farm and our local economy,” said Steffen.
In 2013, U.S. corn production was up roughly 30 percent from 2012. In the face of this increase in production, the EPA's proposed RFS rule for 2014 would essentially slash 500 million bushels from corn demand leaving corn farmers to look for replacement markets to make up for the loss.
“It’s critical the EPA take a long view and reconsider the proposed changes to the RFS for 2014. Now is not the time to pull the reigns back on an industry which has benefited all segments of the agricultural economy,” said Steffen.
Nebraska’s response of over 5,000 letters to EPA largest in corn checkoff history
The Nebraska Corn Board has received over 5,000 letters expressing opposition on the recent decision of the Environmental Protection Agency’s (EPA) proposal to cut back on the amount of corn ethanol in our nation's fuel supply. This would cut 1.4 billion gallons of ethanol in 2014 from the Renewable Fuel Standard (RFS) passed by Congress.
In early January, the Nebraska Corn Board sent out letters to Nebraska farmers alerting them of EPA’s actions and included a letter to EPA that farmers could sign. These letters were returned to the Corn Board and the Board will forward the entire stack of letters to EPA before the comment period deadline of January 28. To date, just over 5,000 letters have been returned, many with personal messages expressing the need to keep a strong renewable fuel industry and stating corn farmers can provide enough food, feed and fuel to help America be less dependent on imported oil.
“This is the greatest grassroots response in the history of the corn checkoff program since its implementation in 1978,” said Don Hutchens, executive director of the Nebraska Corn Board. Hutchens has been executive director since 1987 and a corn producer since the early 1970’s.
All the work and investment that Nebraska corn farmers have put into building the ethanol industry is at risk. EPA’s proposal, if put in place, would cause corn prices to drop, cut several thousand jobs, and could have a negative impact on rural communities that depend on a strong agricultural economy.
The Board also distributed nearly 10,000 postcards throughout Nebraska where the recipient was asked to write a personal message and drop it in the mail to EPA. Or they had the option of commenting online through a link provided by the Nebraska Corn Board’s website, www.nebraskacorn.org.
“The 5,000 letters from Nebraska, which will be sent to EPA Friday, will have a big impact on EPA,” said Tim Scheer, chairman of the Nebraska Corn Board and farmer from St. Paul. “Other states have mounted similar efforts to send letters to EPA.” To date, Scheer said that over 4,000 letters are being sent in from Minnesota Corn and over 1,000 from Missouri Corn. Iowa Corn hosted a ‘Hearing in the Heartland Supporting the Renewable Fuels Standard’ spearheaded by Iowa Governor Terry Branstad where representatives from the Nebraska Corn Board testified. The National Corn Growers Association has organized efforts on a national level and has helped states with their grassroots efforts. The corn industry is working hard to make sure EPA hears from farmers.
The Nebraska Corn Board appreciates the support of our state’s political leaders on this effort. U.S. Senators Johanns and Fischer from Nebraska signed on to a Senate letter that was circulated and sent to the EPA. Governor Heineman joined five other governors in voicing concerns of the EPA proposal by signing a joint letter. And State Senator Dubas is currently leading an effort to get members of the Legislature to sign onto a letter to EPA as well.
“Nebraska farmers are well informed on this issue and with nearly 2 billion bushels of corn carryover stocks and prices that are near or below the cost of production, this issue is not only hitting their pocket books but has the potential to slow Nebraska’s economy,” said Hutchens. “I have never seen this kind of response in my 27 years, so obviously farmers feel strongly about the biofuels industry. The drought of 2012 seriously set our production back, but with new technologies, and a little help from Mother Nature, U.S. farmers are producing 14 billion bushels of corn that can meet food, feed, biofuels and export demand and still have plenty left over.”
Platte Valley Cattlemen Plan Annual Banquet
Crystal Klug, President
It’s that time of year again and the Platte Valley Cattlemen are anxiously planning our 2014 Banquet, Saturday, February 22rd at Platte County Agricultural Park in Columbus. We are looking forward to an entertaining night featuring comedian, Jeff Jena. Jena has over 33 years of live performance experience, including over 40 national television show appearances. Couple this with the social hour, a prime rib dinner, and dancing the night away with the popular local band, Side Step, and this year’s banquet will be hard to beat.
Our annual Banquet is our major fund raiser for the year and thanks to your continued support, our organization has been able to promote our product and inform our membership of current issues and policies. In the past, your dollars have enabled us to promote “Beef Month” in May, ensure quality speakers for our monthly meetings, offer an educational tour, promote 4-H and FFA programs at the county fairs, and assist in awarding scholarships. In 2013, we were able to award three $500.00 college scholarships and with continued support, hope to offer three (or more) again this year.
Thank you in advance for your continued support of the Platte Valley Cattlemen and I look forward to seeing you on Saturday, February 22rd!
Changes Protect Ground Water Users in LPSNRD
At its January 15th meeting, the Lower Platte South Natural Resources District Board approved several changes to its Ground Water Rules & Regulations, affecting well owners in the Dwight-Valparaiso-Brainard area of the District. the changes include:
- A continued stay on the certification of additional ground water irrigated acres
- Allocations on ground water used for irrigation; 21 acre-inches over three years, with no more than 9 acre inches applied in any one year for sprinkler irrigation and 30 acre-inches over three years, with no more than 12 acre inches applied in any one year through gravity irrigation systems.
- Educational certifications for irrigators
- Establishment of a stakeholder advirosy group of water users
- Special cost-sharing by the NRD
- Require new wells to be of adequate depth
- Formal consideration of any new or replacement well by the NRD Board
The changes will take effect March 1st.
NE Cattlemen Host Young Catlemen Conference This Week
Identifying and educating leaders to help guide and strengthen our beef industry is important to the future of Nebraska’s agriculture. Nebraska Catlemen believe that it is important for active beef producers to see all sides of the beef industry and take an active role in telling the beef story and advocating on behalf of our way of life.
The goal of the Young Catlemen’s Conference, held Tuesday-Thursday this week, was to expose young and emerging leaders to a variety of areas of the beef industry and provide them with leadership tools.
Participants in this years YCC were: Brady Revels (Sarpy Douglas Feeders), Tyler Pieper (Dawson County Catlemen), Cassie Lapaseotes (Morrill County Catlemen), Sarah Sortum (Burwell Catlemen), Mathew Brester (Cuming County Feeders), Neal Voss (Thayer County Feeders), Dan Hunt (Harlan County Catlemen), Hank Klosterman (Plate Valley Catlemen), Michael Tierney (West Central Catlemen), Brent Hodges (Burwell Catlemen).
During the 3 day conference participants were able to tour Cargill Meat Solutions Beef Facility in Schuyler and the Cargill Meat Solutions Value Added Meat Facility in Nebraska City. The group was joined by UNL Animal Science professors for the Beef 101 course where participants learned from hands on presentations. These young leaders had the opportunity to tour Sysco Food Service, Sam’s Club, Super Saver, and Whole Foods to see how beef is being presented and sold to consumers. During the fnal day, the group was able to understand more about current industry issues by meeting with Jon Bruning, Nebraska Atorney General, Lavon Heidemann, Lieutenant Governor, Nebraska Department of Agriculture, and Senator Tom Hansen. Participants were also educated on the importance of social media and challenged to share their beef story with today’s consumers.
This year’s YCC class had a jam packed 3 day conference which helped to provide them with the tools to become our future leaders in the beef industry.
TESTING AND FEEDING TOBACCO-BROWN HAY AND SILAGE
Bruce Anderson, UNL Extension Forage Specialist
Last summer’s weather caused much hay to be baled too wet or silage chopped too dry. Now that hay and silage has heated and turned brown. How did this affect its feeding value?
Hay baled too wet or silage chopped to dry can get excessively hot and cause certain chemical reactions to occur. These chemical reactions and the heat that produces them will darken your forage and often make it smell sweet like caramel.
Livestock often find such hay or silage very palatable. But, the reactions that caused this heat-damage consumes valuable energy and also makes some of the protein become indigestible. Unfortunately, tests for crude protein cannot distinguish between regular crude protein and this heat-damaged protein. As a result, your forage test can mislead you into thinking you have more usable protein in your forage than actually is there.
If your forage test is done using NIR, heat-damaged protein may be one of the analyses reported. And if the heat-damaged protein is high enough, the test also will report an adjusted crude protein that is lower than the regular crude protein. However, the NIR test for heat-damage may not be accurate enough for you if your ration contains a lot of this forage and has little or no extra protein in it for your cattle.
When you suspect you have heat-damaged protein, request from your lab a chemical analysis for heat-damaged protein. Then have then use this test to correctly adjust the amount of crude protein your forage actually will provide to your animals.
Forage tests can tell us a lot about the nutrient supplying ability of our forages. But we need to make sure we conduct the right tests and then use the results wisely.
Engler Scholarship Application Deadline is Feb. 16
Students passionate about becoming an entrepreneur can now apply for scholarships to the Engler Agribusiness Entrepreneurship Program at the University of Nebraska-Lincoln's Institute of Agriculture and Natural Resources.
Scholarships are awarded annually to Engler Agribusiness Entrepreneurship students and renewable up to three years dependent on student performance, said the program's director, Tom Field.
To apply, students must complete an application and series of essay questions at http://engler.unl.edu/englerapplication. Applications are due by Feb. 16.
"We encourage students from across various academic programs in the College of Agricultural Sciences and Natural Resources to apply," Field said. "Our goal is to find students who are committed to building enterprises and who have the drive, passion and dedication to reshape rural economies through innovation and creativity applied to the broad realm of agribusiness. We are looking for students who are willing to accept risk in the pursuit of their dreams and who are willing to go the extra mile."
The Engler experience includes the academic minor, travel experiences to learn from outstanding entrepreneurs, networking opportunities, internships and a host of other experiential programming.
Students also can become part of the Agribusiness Entrepreneurship and Leadership: Solutions for the Future learning community through residence life. More information can be found at http://www.unl.edu/learncom/fylc.
The Engler program began in 2010 with a $20 million gift over 10 years from the Paul F. and Virginia J. Engler Foundation. The purpose of the program is to identify students with the entrepreneurial drive and then foster development of professional skills conducive to success in applying entrepreneurism in agriculture and agribusiness.
For more information about the program, visit http://engler.unl.edu.
Efforts to weaken COOL misguided
This week, the Center for Rural Affairs, R-CALF USA, Western Organization of Resource Councils and 95 other groups representing farmers, ranchers, consumers and other rural and small town interests sent a letter to Farm Bill Conference Committee members with an urgent appeal to resist making changes to weaken the nation’s country of origin labeling (COOL) law when they finalize the 2014 Farm Bill.
To view or download a copy of the letter go to: http://www.cfra.org/lettertocongressCOOL.
"Widespread reports circulating on Capitol Hill indicate that the United States Trade Representative was capitulating to the pressures by COOL opponents, primarily the National Cattlemen's Beef Association (NCBA) and their transnational meatpacker allies, to weaken, if not eliminate COOL," said R-CALF USA CEO Bill Bullard.
According to Bullard, the letter was initiated following reports last week that the Office of the U.S. Trade Representative (USTR), the federal agency responsible for defending the U.S. country of origin labeling law for meat and other food products before the World Trade Organization, was lobbying the Farm Bill Conferees to weaken the COOL law.
“Ranchers, farmers and consumers overwhelmingly favor retaining the strong, effective 2013 final COOL rules requiring retailers to inform their customers about where the meat they purchase comes from, and that means where the livestock were born, raised and slaughtered. A standard that the Center for Rural Affairs has advocated for nearly 20 years.” John Crabtree, Center for Rural Affairs.
“When we learned that the USTR was pressuring Farm Bill Conferees to replace current COOL rules with a ‘Product of North America’ label for meat from animals imported in the U.S., we knew it was time for urgent action,” said John Crabtree of the Center for Rural Affairs. “This North American or NAFTA-meat label is entirely unacceptable. Moreover, the Farm Bill Conference Committee is not the place for this effort to undermine COOL. It is an effort to undue democratic decision-making behind the closed doors at the 11th hour of the farm bill debate.”
Crabtee explained further that the final, 2013 rules are in line with decisions issued by the World Trade Organization (WTO) Appellate Body. But the purported amendment suggested by the USTR would not only erode the quality of information consumers would receive, it also fails to remedy the issues raised by the WTO dispute panel, opening the law up to future challenges.
Harkin, Grassley Join Bipartisan Group for RFS Revision
U.S. Senators Chuck Grassley and Tom Harkin Thursday were among a bipartisan group of 31 Senators who sent a letter to Environmental Protection Agency (EPA) Administrator Gina McCarthy. The letter is part of an ongoing effort to urge the agency to make changes to the Renewable Fuel Standard (RFS) 2014 rule. The Senators share concerns that the EPA's proposed rule will discourage investment and hurt job growth and rural communities across the country.
"The EPA is proposing a major step that reverses the momentum on biofuels," said Grassley. "The progress made toward energy diversity and independence will slip away if the EPA succeeds. The sentiment from almost one-third of the U.S. Senate is the proposal needs revision. We want the EPA to reconsider. The President as a supporter of biofuels should weigh in as needed."
"The intent of the RFS is to steadily increase contributions from biofuels in our transportation fuels markets to enhance our nation's energy security, protect the environment, and create jobs," said Harkin. "The proposed rule, requiring less biofuel in 2014 than in 2013, goes against this intent and is a significant step backward."
The EPA's proposed rule would set the biodiesel target at 1.28 billion gallons, which is below current industry production levels of around 1.7 billion gallons. It would also reduce the total biofuels target to 15.2 billion gallons. This is 1.34 billion gallons below the 2013 target of 16.55 billion gallons, and almost 3 billion gallons below the 2014 statutory target of 18.15 billion gallons.
The following Senators also signed on to the letter: Tammy Baldwin (D-WI), Max Baucus (D-MT), Michael Bennet (D-CO), Roy Blunt (R-MO), Sherrod Brown (D-OH), Maria Cantwell (D-WA), Dan Coats (R-IN), Joe Donnelly (D-IN), Dick Durbin (D-IL), Al Franken (D-MN), Deb Fischer (R-NE), Martin Heinrich (D-NM), Heidi Heitkamp (D-ND), Mazie Hirono (D-HI), John Hoeven (R-ND), Mike Johanns (R-NE), Tim Johnson (D-SD), Mark Kirk (R-IL), Amy Klobuchar (D-MN), Mark Udall (D-CO), Ed Markey (D-MA), Claire McCaskill (D-MO), Patty Murray (D-WA), Jack Reed (D-RI), Brian Schatz (D-HI), Jeanne Shaheen (D-NH), Debbie Stabenow (D-MI), John Thune (R-SD), and Elizabeth Warren (D-MA).
ISU Extension Hires Water Quality Program Manager
Jamie Benning has been hired as water quality program manager for Iowa State University Extension and Outreach. As an extension agronomist the past 13 years she has led multi-state water quality projects, supported farmer-led watershed initiatives and conducted agronomic research.
“Water quality is an issue that deserves additional attention,” said John Lawrence, Agricultural and Natural Resources Extension director. “We have a lot of activity in water quality and agricultural production. Having Jamie focused on coordinating water quality resources will be a great asset to ISU Extension and Outreach and the Iowans we work with on this issue.”
Iowa State University was a partner in the development of the statewide nutrient reduction strategy, working with the Iowa Department of Agriculture and Land Stewardship and Iowa Department of Natural Resources over a two-year period to develop the initiative.
The resulting strategy, finalized in May 2013, is the first time such a comprehensive and integrated approach addressing both point and nonpoint sources of nutrients has been completed. Iowa State continues to partner for the implementation of the Water Quality Initiative and helping farmers understand what tools and practices best fit their unique land and water situation.
Benning has worked with state and local partners, as well as members of watershed groups, through her water quality projects across Iowa and the Midwest. She is looking forward to providing cohesive access to essential research and extension support.
“Every Iowa farmer can be part of protecting our water resources,” Benning said. “Coordinating Extension’s efforts so all our specialists have science-proven and emerging practices to share with their clients will move us toward our statewide goals.”
Benning can be reached at benning@iastate.edu or by calling 515-294-6038.
NBB Awards Iowa Soybean Association CEO Highest Biodiesel Honor
During the National Biodiesel Conference & Expo this week in San Diego, individuals who have made significant impacts on the biodiesel industry were honored with the 2014 “Eye on Biodiesel” award. Included in the list of honorees was Kirk Leeds, chief executive officer of the Iowa Soybean Association (ISA).
“The biodiesel industry would not be what it is without champions and supporters like these Eye on Biodiesel honorees,” said Joe Jobe, CEO of the National Biodiesel Board. “We are proud to honor our award winners who have made a substantial impact in getting biodiesel to where it is today, a fully commercialized advanced biofuel that is produced from coast to coast.”
Leeds has been a leader among soybean organizations in supporting biodiesel efforts since the industry’s inception. ISA’s support of the National Biodiesel Board over the years has allowed the industry to prepare and face the challenges of being a billion-plus-gallon Advanced Biofuel. His visionary leadership has helped to maintain a mutually-beneficial, strong connection between the soybean and biodiesel industries. Kirk and ISA have been at the forefront of improving agriculture’s environmental performance. Through partnerships with farmers, environmental groups, agri-business and academia, ISA is helping lead efforts to identify practical solutions for complex environmental issues.
National Pork Industry Forum to be Held March 6-8, 2014
Delegates from across the United States will gather in Kansas City, March 6-8, 2014, for the annual National Pork Industry Forum.
The 15 producers who serve as members of the National Pork Board and Pork Checkoff staff leadership will hear directly from the 156 forum delegates appointed by U.S. Secretary of Agriculture Tom Vilsack. Each year the Pork Act Delegates confer, vote on resolutions and advisements, and provide valuable direction on the important issues facing pork producers and the industry. This year the delegates include 152 pork producers and four pork importers.
The theme for the annual pork forum -The Power of One: Many producers united in a common goal -was selected in reference to how the industry is taking proactive steps to join together in meeting the challenges facing the industry. From tackling concerns raised by the Porcine Epidemic Diarrhea Virus to responding to consumers seeking to learn how food is produced, thousands of individual farmers are doing their part to produce pork in a caring, responsible and professional manner.
"As an industry, we are stronger when we are united toward a greater common good," said Karen Richter, president of the National Pork Board and a producer from Montgomery, Minn. "Working together, we can make a collective difference in raising a single voice for all hog farmers. We'll demonstrate that clearly in Kansas City."
In advance of the annual meeting, members of the National Pork Board will also convene their March board meeting. The agenda for that meeting will include updates on 2014 plans to enhance pork demand, increase market opportunities, improve pork production practices and invest in research priorities.
Included on the 2014 Pork Forum agenda will be opportunities for pork producers to become trained in the pork industry's Pork Quality Assurance® Plus (PQA Plus®) certification process, as well as provide input into the Pork Checkoff's new strategic plan that is currently being developed.
The full agenda is available at www.pork.org. As the event draws near, the website will be updated with current information and links to the Pork Forum manual and videos of candidates nominated for industry positions.
Applications Now Being Accepted for Pork Industry Environmental Stewards Award
Environmental stewardship is hard work and sharing the experience gained may help others become better caretakers. Environmental stewardship requires constant work and a serious commitment. The Environmental Steward Awards program is open to pork producers of all types and sizes of production operations who demonstrate their positive contribution to the environment.
Pork operations are recognized annually by the U.S. pork industry for their commitment to preserving the environment.
Applications (PDF or MS Word) and nominations are solicited from pork producers, operation managers and other industry-related professionals and are to be submitted by March 31, 2014. A national selection committee names four operations following a review of:
• General production information
• Manure management
• Efforts to preserve water, air, and soil quality
• Aesthetics and neighbor relations
• Wildlife management
• Innovation applied to environmental management
• And an essay on the meaning of Environmental Stewardship
Winners are featured in an educational video, receive a special plaque and are recognized at an awards ceremony at the annual Pork Industry Forum.
The Environmental Steward Awards, program is co-sponsored by the Pork Checkoff and National Hog Farmer magazine.
Farm Bill Moving Slow
(from NAWG)
Farm bill negotiators hoped to have a draft conference report wrapped up this week, but with Congress in recess and the government shut down on Tuesday due to weather the farm bill progress has once again stalled. Country-of-origin-labeling (COOL) is at the top of the headlines this week as 97 organizations trying to protect the law sent a letter to the conferees this week asking that there be no changes to the current COOL law stating that “the final rules provide clear information to consumers that balances the small cost of implementation”. Organizations on the other side of this issue are concerned that if the program stays in place the industry will risk losing a World Trade Organization (WTO) challenge brought by Canada and Mexico. If negotiators are able to get agreements on COOL and other outstanding issues soon they could possibly avoid having public votes at the full conference committee level.
House and Senate Committees Talk Climate
Last week, the Senate Environment and Public Works Committee heard from the EPA Administrator Gina McCarthy and other administration officials regarding the President’s Climate Action Plan released in June. The President’s Climate Action Plan is comprised of three pillars: reducing carbon pollution in the U.S., preparing for the impacts of climate change and leading international efforts on climate change. Federal Agencies are directed to use existing statutes to address the plan. As part of the Action Plan, EPA released a proposed regulation last fall to reduce carbon pollution from future power plants. This hearing and action in the House Commerce committee last week on legislation intended to limit EPA’s proposed regulation mark the start of a year that is expected to be focused on Climate Change. U.S. Department of Agriculture (USDA) has released several climate mitigation and adaptation plans and is expected to announce regional Climate Hubs very shortly.
Farmers, Industry Gather with Federal Partners at Biotech Working Group Meeting in D.C.
Despite single-digit temperatures and myriad travel delays, the members of the American Soybean Association’s Biotech Working Group met this week in Washington to discuss the current regulatory landscape for biotechnology in the U.S.
ASA’s farmer-leaders joined their counterparts from the United Soybean Board (USB) and the U.S. Soybean Export Council (USSEC), as well as representatives from industry technology providers, to meet with administration officials, including Dr. Michael Firko, Acting Deputy Administrator of the Biotechnology Regulatory Services (BRS) office at USDA, Dan Rosenblatt, Associate Director of the Registration Division in EPA’s Office of Pesticide Programs and Ed Porter, Director of the New Technology Division at the Foreign Agricultural Service.
Deputy Administrator Firko provided an update on the USDA’s regulatory process, while Rosenblatt did the same for EPA, touching on ways the two agencies work together to streamline the regulatory process. Porter discussed the current state of biotech regulatory affairs in China, Korea and the EU.
Attendees also heard more on the EU biotechnology landscape from industry consultant Benno van der Laan, as well as an update on the progress of the U.S. Biotech Crop Alliance from USBCA Secretariat Dr. Michael Phillips.
This week’s was the first of two 2014 meetings for the Biotech Working Group. The group will meet again this summer, at a venue yet to be chosen.
USSEC to Hold Global Strategy Planning Meeting in Colombia
The U.S. Soybean Export Council will hold its global strategy planning meeting in Bogota, Colombia from January 28-30. This annual meeting will cover USSEC programs in all regions.
Participants will include USSEC staff; USSEC board members; United Soybean Board (USB) Action Team Leads; American Soybean Association (ASA) Trade Policy and International Affairs (TPIA) Chair; World Initiative for Soy in Human Health (WISHH) representative; North American Export Grain Association (NAEGA) representatives, North American Oilseed Processing Association (NOPA) representatives; Qualified State Soybean Board (QSSB) representatives; Foreign Agricultural Services (FAS) representatives; and USSEC members.
The objective of the meetings is to review global market conditions for U.S. soy in order to develop a strategic approach for Unified Export Strategy FY 15 (UES 15). Global markets represented by the USSEC regions of Greater Europe and Middle East / North Africa; the Asian subcontinent; the Americas; North Asia; and Southeast Asia will be discussed with market overviews, constraints to greater U.S. exports, and USSEC’s strategic approach galvanizing the discussion for each region. Participants will discuss driving customer preference, differentiating commodity products, securing market access through sounds science, QSSB successes and opportunities.
Statutory 2014 RFS Levels Can be Met Through Increased E85 and E15 Consumption, Carryover RINs
A new study by Informa Economics entitled “Analysis of the Potential Use of Biofuels toward the Renewable Fuel Standard in 2014” shows the originally intended Renewable Fuel Standard (RFS) 2014 blending requirements can be reached through expanded consumption of E85 and E15, as well as judicious use of carryover RIN credits. The study clearly demonstrates why the Environmental Protection Agency’s proposal to reduce RFS blending requirements is unnecessary and imprudent.
Using empirical data from 2013, the study shows that E85 sales volumes respond strongly to changes in RIN prices. This demonstrates the RFS program is working exactly as intended to drive expanded consumption of biofuels above the so-called E10 “blend wall.” The study finds, “It is possible for all statutory components and allocations within the Renewable Fuel Standard to be met in 2014, after adjustments have been made for a waiver of a large majority of the Cellulosic Biofuel Standard.”
The Informa analysis was commissioned by the Renewable Fuels Association and Iowa Corn Promotion Board. It will be used to support the groups’ comments to EPA on its proposed rule for 2014 RFS blending requirements.
The study takes a closer look at likely consumption, finding that ethanol consumption in 2014 could be at least 13.7 billion gallons, compared to the EPA’s assumption of 13.0 billion gallons. It points toward E85 as a major contributor, stating, “E85 accounts for most of the potential for expanded consumption.” And continues, “The increase could be even larger if E85 is priced at a sustained discount to gasoline (on an energy-equivalent basis), as the consumer response could be stronger than implied by historical data, since discounts have been transitory in the past.”
“This study is further proof that the so-called ‘blend wall’ can be easily scaled if the RFS is allowed to work as intended,” said Bob Dinneen, President and CEO of the Renewable Fuels Association. “As I have said time and time again, the RIN mechanism is the tool to drive innovation and infrastructure to accommodate higher ethanol blends like E85 and E15. There is absolutely no need to reduce or repeal the RFS. It is working.”
“We hope that this study further emphasizes that the EPA decision to lower the RVO just doesn’t make sense,” said Roger Zylstra, a farmer from central Iowa and current president of the Iowa Corn Growers Association. “As a corn grower, I know we have the science and the production to back up the current RFS. It is working and we need to move forward, not backward on our energy security.”
Council Briefs SAG (China) on Corn Quality, Biotechnology
U.S. corn quality and biotechnology issues highlighted the discussion today as a Chinese delegation of provincial State Administration of Grain (SAG) officials visited the U.S. Grains Council's Washington, D.C., headquarters. Council board member Chip Councell of the Maryland Grain Producers Utilization Board, was able to join the meeting and provide a farmer's perspective on the practical and environmental benefits of biotechnology.
"This visit was scheduled long before the current biotech developments in China," said USGC President and CEO Tom Sleight, "but it was a great opportunity to bring the team up to date on the key role that biotechnology plays in U.S. agriculture today."
The Council visit was part of an extensive itinerary that had taken the Chinese team to meet with a variety of government and industry leaders in Washington. The Council visit started with USGC Manager of Global Trade Alvaro Cordero presenting the findings of the 2013/2014 Corn Harvest Quality Report. Following the presentation Sleight discussed the group's concerns as well as their thoughts on biotechnology.
IMG 0038SAG's key concerns were corn quality, storage issues, and heavy metal contamination. In response to a question, the SAG team also acknowledged that the issue of biotechnology is extremely difficult right now in China. Councell responded with a U.S. producer's perspective.
"I've planted GM varieties on my farm since 1996," Councell said, "and I was able to report that this has significantly reduced insect damage, improved storage because we're now storing healthier corn, and dramatically reduced chemical usage. It seemed clear from the follow-up questions that the message got through. Biotechnology isn't just about increasing yield; it's about improving quality as well."
The Council continues to be engaged with Chinese officials and industry leaders at all levels regarding the evolving status of biotech approvals. While the SAG group is concerned with more issues than just biotechnology, they will return to China with a much stronger appreciation of the role that biotechnology plays in increasing both quality and yield.
Too Much of a Good Thing
Shawn Campbell, US Wheat Assoc. Assistant Director, West Coast Office
Canadian farmers enjoyed the blessing of near perfect growing conditions this year, leading to a record wheat crop of 37.5 MMT that was 38 percent larger than last year’s crop. Combined with a record canola crop and good production for other crops, the year held great promise for Canadian agriculture.
Sadly, the bumper crops have overwhelmed the Canadian logistical system and proven to be too much of a good thing. Farmers report that country elevators are only offering low or even no bids on wheat for nearby delivery. Some farmers who signed forward contracts say elevators are pushing back their delivery dates and the CWB is not posting wheat basis prices for delivery before next October. As a result, farmers are stuck with crops losing value every day they stay in their bins. Reuters reported that some farmers have resorted to selling wheat into feed channels or trucking it south into the United States, but at very small volumes that cannot really improve the situation.
Canadian grain exporters also expected a great year but now face similar challenges, especially those moving grain through the Pacific ports of Vancouver and Prince Rupert. USDA currently projects that Canada will export 23.0 MMT of wheat this year, the most since 1991/92. As of late December, Canada had exported 8.2 MMT of wheat in 2013/14, up 8 percent compared to the same time last year. However, its December exports only totaled 1.5 MMT. That is down 18 percent compared to November and down 14 percent compared to December 2012. It is also the first time this marketing year that the month’s wheat exports were less than the same month last year.
The Port of Vancouver is especially hard hit. Analysts reported an average processing time of 17 days per grain ship compared to a normal processing time of nine to 10 days. There are also reports that rail shipments arrive at export terminals with the wrong grain at the wrong time or just don’t arrive at all. The result is a growing backlog of ships, more than the available anchorage at Vancouver, ringing up more than $10 million (USD) in demurrage fees so far. Canadian Pacific exporters now indicate they will be unable to take on any new business until after May.
Railroads and rail car shortages may have contributed to the logistical problems. Local analysts indicated that major rail carriers Canadian National and Canadian Pacific accumulated a backlog of 40,000 cars from August to December. That is eight times more than last year with grain capacity of 4.0 MMT. However, Canadian National reported it moved 12 percent more grain than its five-year average for the same period while Canadian Pacific moved 16 percent more than its five-year average. The railroads claim their challenge is not a backlog, but rather the inability to get cars to the right place at the right time. Many analysts cited archaic rail regulations, such as a rail revenue cap, the lack of a secondary rail car market and a lack of rail demurrage fees for creating major inefficiencies in the grain handling system.
The Canadian grain trade, which is still adapting to an open market, may have tried to push too much grain through the system too quickly. Given the huge crop, some analysts suggest Canadian grain traders put out discounted bids after harvest. Buyers responded quickly. In fact, the Pacific Canadian grain terminals have exported 9 percent more than last year, including 670,000 MT going to countries normally serviced by the eastern terminals that could not compete with west coast prices. Eventually, though, the bottlenecks formed in the west because the system could not keep pace with demand.
The Canadian grain market is facing a difficult lesson in open grain marketing this year. Debate over the reasons behind the logistical issues will continue as the Canadian government initiates a review of the grain transportation system. Questions remain as to whether or not Canada will achieve USDA’s wheat export projection of 23.0 MMT. If not, Canada will likely end this marketing year with its highest wheat ending stocks since the early 1990s, and that will challenge the Canadian and U.S. wheat markets well into 2014/15 and maybe beyond.
Peru-US FTA to Drive US Corn Exports to Peru in Early 2014
Kurt Shultz, U.S. Grains Council Regional Director of the Americas
After two years of no U.S. corn exports to Peru, the competitively priced 2013 U.S. corn crop is expected to turn this around. The U.S.-Peru Free Trade Agreement (FTA), which was implemented in 2006, creates conditions where Peruvians will aggressively purchase U.S. corn in January and February of this year.
In recent years, the United States has been uncompetitive in the Peruvian market due to high prices compounded by more favorable duty treatment for South American producers. However, this year with the large supply of U.S. corn and the FTA, U.S. corn has a price advantage in the Peruvian market.
Under the FTA, U.S. corn imports have a zero percent duty on the first 670,000 metric tons (26.4 million bushels) of corn imports. Since the FTA contains first-come first-serve criteria, the Peruvian buyers will be competing aggressively to purchase U.S. corn early this year.
It is uncertain how long the price advantage will last when South American corn enters the market; however, it is likely that the United States will export at least 1 million tons (39.4 million bushels) of corn to Peru in the first two months of 2014.
This is just one more example of how FTAs are the long-term foundations that allow U.S. producers to benefit and create export opportunities.
Timing of Nitrogen Applications Can Enhance Yields
Growers are doing a better job of managing nitrogen fertilizer applications. In recent years, the amount of fertilizer used has remained relatively constant while average yields have steadily increased. DuPont Pioneer experts suggest growers continue to look for ways to make the application of nutrients — particularly nitrogen — as efficient as possible. One strategy is to adopt split applications.
“Modern hybrids take up nitrogen later in the growing season,” says John Shanahan, DuPont Pioneer research scientist. “Data suggest applying nitrogen during the growing season, to coincide better with crop uptake of this nutrient, can result in higher yields.”
Growers know the pros and cons of fall nitrogen (N) application. While it may be necessary to apply fertilizer before winter, there are ways to minimize the potential for leaching and runoff. “Growers can mitigate losses from fall application by applying anhydrous ammonia after the soil temperature has dropped below 50 degrees — assuming it doesn’t warm up again for a lengthy period,” Shanahan says. “Also, N stabilizers can help keep nitrogen in the stable ammonium form.”
Some states even mandate withholding application until after a certain date and/or the use of a stabilizer.
Spring application of nitrogen leaves less time for leaching, but unpredictable weather can make it difficult for some growers to get into the field.
“Early planting trends can work against spring applications,” Shanahan says. “Many growers want to get seed in the ground as early as practical, and they don’t want to deal with fertilizer application if it may delay planting.”
Recent work by Tony Vyn at Purdue University demonstrates a substantial positive impact from applying nitrogen after planting. This is not surprising, as crops require the lion’s share of their nitrogen needs just before the reproductive stages.
“Growers must overcome some obstacles to make a second nitrogen application in season,” Shanahan says. “They need high-clearance equipment, which is expensive. They’re also at the mercy of weather: Can they get into the field in a timely manner to get the second application down?”
The industry is making strides to help growers find better ways of timing nitrogen applications. “It’s incumbent on our industry to help growers find practical solutions,” Shanahan asserts. “Crop sensors are one technology that adjusts side-dress N application rates for weather effects such as excessive rainfall.” The result can be increased yields, improved profits, and more efficient fertilizer use.
Because of the complex nature of soil and weather variability, growers face significant challenges in optimizing the amount of N to apply to each field, year and area within a field. This results in under-application of N in some years and fields, with resulting yield losses and over application of N in other years and field areas resulting in inefficient use of N resources.
For example, through analysis of data compiled from hundreds of N rate response studies conducted throughout the Corn Belt over several years designed to determine economic optimum N rate, Pioneer has determined growers are potentially losing on average around $55/acre of revenue due to a combination of over- or under-application of N.
Pioneer is working to provide real-time information to help growers make better decisions on N applications, such as when and how to apply, what soils to apply and optimum application rates. Also, Pioneer is working internally and with collaborators to understand the mechanisms of in-season nitrogen application. The information and the process developed should help growers make better decisions, reduce risk and increase crop yields.
“Generally, it pays to avoid putting all your nitrogen down at once.” Shanahan says. “Today’s genetics show potential to deliver more bang for your buck through split applications.”
Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.6 million head on January 1, 2014. The inventory was 5 percent below January 1, 2013. The inventory included 6.78 million steers and steer calves, down 4 percent from the previous year. This group accounted for 64 percent of the total inventory. Heifers and heifer calves accounted for 3.73 million head, down 8 percent from 2013.
Placements in feedlots during December totaled 1.68 million, 1 percent above 2012. Net placements were 1.60 million head. During December, placements of cattle and calves weighing less than 600 pounds were 485,000, 600-699 pounds were 420,000, 700-799 pounds were 391,000, and 800 pounds and greater were 385,000.
Marketings of fed cattle during December totaled 1.74 million, 1 percent below 2012. Other disappearance totaled 77,000 during December, 4 percent above 2012.
NEBRASKA CATTLE ON FEED DOWN 3 PERCENT
Nebraska feedlots, with capacities of 1,000 or more head, contained 2.40 million cattle on feed on January 1, according to the USDA’s National Agricultural Statistics Service. This inventory was down 3 percent from last year. Placements during December totaled 405,000 head, up 4 percent from 2012. Fed cattle marketings for the month of December totaled 420,000 head, down 1 percent from last year. Other disappearance during December totaled 15,000 head, unchanged from last year.
Iowa Cattle on Feed +3%
Cattle and calves on feed for slaughter market in Iowa for all feedlots totaled 1,370,000 on January 1, 2014 according to the USDA, National Agricultural Statistics Service, Iowa Field Office. The inventory is up 3 percent from December 1, 2013 and up 7 percent from January 1, 2013. Feedlots with a capacity greater than 1,000 head had 620,000 head on feed, up 2 percent from last month but unchanged from last year. Feedlots with a capacity less than 1,000 head had 750,000 head on feed, up 3 percent from last month and up 14 percent from last year.
Placements during December totaled 206,000 head, a decrease of 25 percent from last month but up 27 percent from last year. Feedlots with a capacity greater than 1,000 head placed 96,000 head, down 21 percent from last month but up 17 percent from last year. Feedlots with a capacity less than 1,000 head placed 110,000 head. This is down 29 percent from last month but up 38 percent from last year.
Marketings for December were 164,000 head, down 16 percent from last month but up 14 percent from last year. Feedlots with a capacity greater than 1,000 head marketed 84,000 head, down 16 percent from last month but up 24 percent from last year. Feedlots with a capacity less than 1,000 head marketed 80,000 head, down 16 percent from last month but up 5 percent from last year. Other disappearance totaled 7,000 head.
Number of Cattle on Feed on 1,000+ Capacity Feedlots by Month - States and US: 2013 and 2014
---------------------------------------------------------------------------------------------------
: : : January 1, 2014
: : : --------------------------------------------
State :Jan 1 2013 : Dec 1 2013 : Percent of : Percent of
: : : Number :previous year :previous month
----------------------------------------------------------------------------------------------------------------------
: --------------- 1,000 head -------------- ----- percent ----
Arizona ..........: 272 275 274 101 100
California ........: 480 505 510 106 101
Colorado ........: 1,000 970 960 96 99
Idaho .............: 230 225 220 96 98
Iowa ...............: 620 610 620 100 102
Kansas ..........: 2,110 2,050 2,010 95 98
Nebraska .......: 2,480 2,430 2,400 97 99
Oklahoma ......: 345 265 260 75 98
South Dakota .: 230 220 230 100 105
Texas ............: 2,720 2,510 2,440 90 97
Washington ...: 247 207 201 81 97
Other States ..: 459 458 468 102 102
United States : 11,193 10,725 10,593 95 99
Number of Cattle Placed on Feed on 1,000+ Capacity Feedlots by Month - States and US: 2012 and 2013
---------------------------------------------------------------------------------------------
: : : During December 2013
: During : During :--------------------------------------------
State :Dec 2012:Nov 2013 : : Percent of : Percent of
: : : Number: previous year :previous month
---------------------------------------------------------------------------------------------
: ------------ 1,000 head ----------- ----- percent ----
Arizona ..........: 29 30 28 97 93
California ........: 50 64 59 118 92
Colorado ........: 140 170 150 107 88
Idaho .............: 26 42 32 123 76
Iowa ..............: 82 122 96 117 79
Kansas ..........: 365 370 360 99 97
Nebraska .......: 390 475 405 104 85
Oklahoma ......: 52 42 43 83 102
South Dakota .: 34 63 43 126 68
Texas ............: 415 405 370 89 91
Washington ....: 25 44 34 136 77
Other States ...: 56 55 61 109 111
United States ..: 1,664 1,882 1,681 101 89
Number of Cattle Marketed on 1,000+ Capacity Feedlots by Month - States and US: 2012 and 2013
---------------------------------------------------------------------------------------------
: : : During December 2013
: During : During : --------------------------------------------
State :Dec 2012:Nov 2013 : : Percent of : Percent of
: : : Number : previous year : previous month
---------------------------------------------------------------------------------------------
: ------------ 1,000 head ----------- ----- percent ----
:
Arizona ..........: 23 24 28 122 117
California ........: 55 52 52 95 100
Colorado ........: 155 145 150 97 103
Idaho .............: 40 36 36 90 100
Iowa ..............: 68 100 84 124 84
Kansas ..........: 425 350 385 91 110
Nebraska .......: 425 400 420 99 105
Oklahoma ......: 49 45 45 92 100
South Dakota .: 33 41 30 91 73
Texas ............: 380 405 420 111 104
Washington ....: 38 39 37 97 95
Other States ...: 54 44 49 91 111
United States ..: 1,745 1,681 1,736 99 103
---
Nebraska Farm Bureau Urges EPA to Maintain Renewable Fuels Standard for Ethanol
Nebraska Farm Bureau is urging the Environmental Protection Agency (EPA) to stay the course on the corn ethanol requirements under the 2014 Renewable Fuel Standard (RFS). The EPA released proposed changes to the 2014 RFS last fall which would set the overall RFS at 15.21 billion gallons, including 2.2 billion gallons for biodiesel and advanced biofuels. The proposal would put the corn ethanol number at just 13 billion gallons, well below the 14.4 billion gallons that would have been required under the law’s original targets.
“The U.S. ag sector has seen tremendous growth since the RFS was put in place in 2007. Total U.S. agriculture exports have increased by 57 percent, livestock output is up 31 percent and crop output is up 44 percent. Corn ethanol is clearly a part of the reason for that success and to change the course on ethanol in the RFS would be a mistake,” said Steve Nelson, Nebraska Farm Bureau president.
That message was reiterated by Richardson County Farm Bureau member Ben Steffen who offered testimony on behalf of Nebraska Farm Bureau before Iowa Gov. Terry Branstad at a listening session held Jan. 23 in Des Moines, Iowa. Steffen is a dairy and corn farmer from Humboldt, Neb.
“As a dairy farmer, we have used ethanol co-products to feed our dairy cattle and ethanol has also opened new market opportunities for the grain we produce. Without the ethanol standard in the RFS we wouldn’t have seen some of the positive economic benefits that have helped our farm and our local economy,” said Steffen.
In 2013, U.S. corn production was up roughly 30 percent from 2012. In the face of this increase in production, the EPA's proposed RFS rule for 2014 would essentially slash 500 million bushels from corn demand leaving corn farmers to look for replacement markets to make up for the loss.
“It’s critical the EPA take a long view and reconsider the proposed changes to the RFS for 2014. Now is not the time to pull the reigns back on an industry which has benefited all segments of the agricultural economy,” said Steffen.
Nebraska’s response of over 5,000 letters to EPA largest in corn checkoff history
The Nebraska Corn Board has received over 5,000 letters expressing opposition on the recent decision of the Environmental Protection Agency’s (EPA) proposal to cut back on the amount of corn ethanol in our nation's fuel supply. This would cut 1.4 billion gallons of ethanol in 2014 from the Renewable Fuel Standard (RFS) passed by Congress.
In early January, the Nebraska Corn Board sent out letters to Nebraska farmers alerting them of EPA’s actions and included a letter to EPA that farmers could sign. These letters were returned to the Corn Board and the Board will forward the entire stack of letters to EPA before the comment period deadline of January 28. To date, just over 5,000 letters have been returned, many with personal messages expressing the need to keep a strong renewable fuel industry and stating corn farmers can provide enough food, feed and fuel to help America be less dependent on imported oil.
“This is the greatest grassroots response in the history of the corn checkoff program since its implementation in 1978,” said Don Hutchens, executive director of the Nebraska Corn Board. Hutchens has been executive director since 1987 and a corn producer since the early 1970’s.
All the work and investment that Nebraska corn farmers have put into building the ethanol industry is at risk. EPA’s proposal, if put in place, would cause corn prices to drop, cut several thousand jobs, and could have a negative impact on rural communities that depend on a strong agricultural economy.
The Board also distributed nearly 10,000 postcards throughout Nebraska where the recipient was asked to write a personal message and drop it in the mail to EPA. Or they had the option of commenting online through a link provided by the Nebraska Corn Board’s website, www.nebraskacorn.org.
“The 5,000 letters from Nebraska, which will be sent to EPA Friday, will have a big impact on EPA,” said Tim Scheer, chairman of the Nebraska Corn Board and farmer from St. Paul. “Other states have mounted similar efforts to send letters to EPA.” To date, Scheer said that over 4,000 letters are being sent in from Minnesota Corn and over 1,000 from Missouri Corn. Iowa Corn hosted a ‘Hearing in the Heartland Supporting the Renewable Fuels Standard’ spearheaded by Iowa Governor Terry Branstad where representatives from the Nebraska Corn Board testified. The National Corn Growers Association has organized efforts on a national level and has helped states with their grassroots efforts. The corn industry is working hard to make sure EPA hears from farmers.
The Nebraska Corn Board appreciates the support of our state’s political leaders on this effort. U.S. Senators Johanns and Fischer from Nebraska signed on to a Senate letter that was circulated and sent to the EPA. Governor Heineman joined five other governors in voicing concerns of the EPA proposal by signing a joint letter. And State Senator Dubas is currently leading an effort to get members of the Legislature to sign onto a letter to EPA as well.
“Nebraska farmers are well informed on this issue and with nearly 2 billion bushels of corn carryover stocks and prices that are near or below the cost of production, this issue is not only hitting their pocket books but has the potential to slow Nebraska’s economy,” said Hutchens. “I have never seen this kind of response in my 27 years, so obviously farmers feel strongly about the biofuels industry. The drought of 2012 seriously set our production back, but with new technologies, and a little help from Mother Nature, U.S. farmers are producing 14 billion bushels of corn that can meet food, feed, biofuels and export demand and still have plenty left over.”
Platte Valley Cattlemen Plan Annual Banquet
Crystal Klug, President
It’s that time of year again and the Platte Valley Cattlemen are anxiously planning our 2014 Banquet, Saturday, February 22rd at Platte County Agricultural Park in Columbus. We are looking forward to an entertaining night featuring comedian, Jeff Jena. Jena has over 33 years of live performance experience, including over 40 national television show appearances. Couple this with the social hour, a prime rib dinner, and dancing the night away with the popular local band, Side Step, and this year’s banquet will be hard to beat.
Our annual Banquet is our major fund raiser for the year and thanks to your continued support, our organization has been able to promote our product and inform our membership of current issues and policies. In the past, your dollars have enabled us to promote “Beef Month” in May, ensure quality speakers for our monthly meetings, offer an educational tour, promote 4-H and FFA programs at the county fairs, and assist in awarding scholarships. In 2013, we were able to award three $500.00 college scholarships and with continued support, hope to offer three (or more) again this year.
Thank you in advance for your continued support of the Platte Valley Cattlemen and I look forward to seeing you on Saturday, February 22rd!
Changes Protect Ground Water Users in LPSNRD
At its January 15th meeting, the Lower Platte South Natural Resources District Board approved several changes to its Ground Water Rules & Regulations, affecting well owners in the Dwight-Valparaiso-Brainard area of the District. the changes include:
- A continued stay on the certification of additional ground water irrigated acres
- Allocations on ground water used for irrigation; 21 acre-inches over three years, with no more than 9 acre inches applied in any one year for sprinkler irrigation and 30 acre-inches over three years, with no more than 12 acre inches applied in any one year through gravity irrigation systems.
- Educational certifications for irrigators
- Establishment of a stakeholder advirosy group of water users
- Special cost-sharing by the NRD
- Require new wells to be of adequate depth
- Formal consideration of any new or replacement well by the NRD Board
The changes will take effect March 1st.
NE Cattlemen Host Young Catlemen Conference This Week
Identifying and educating leaders to help guide and strengthen our beef industry is important to the future of Nebraska’s agriculture. Nebraska Catlemen believe that it is important for active beef producers to see all sides of the beef industry and take an active role in telling the beef story and advocating on behalf of our way of life.
The goal of the Young Catlemen’s Conference, held Tuesday-Thursday this week, was to expose young and emerging leaders to a variety of areas of the beef industry and provide them with leadership tools.
Participants in this years YCC were: Brady Revels (Sarpy Douglas Feeders), Tyler Pieper (Dawson County Catlemen), Cassie Lapaseotes (Morrill County Catlemen), Sarah Sortum (Burwell Catlemen), Mathew Brester (Cuming County Feeders), Neal Voss (Thayer County Feeders), Dan Hunt (Harlan County Catlemen), Hank Klosterman (Plate Valley Catlemen), Michael Tierney (West Central Catlemen), Brent Hodges (Burwell Catlemen).
During the 3 day conference participants were able to tour Cargill Meat Solutions Beef Facility in Schuyler and the Cargill Meat Solutions Value Added Meat Facility in Nebraska City. The group was joined by UNL Animal Science professors for the Beef 101 course where participants learned from hands on presentations. These young leaders had the opportunity to tour Sysco Food Service, Sam’s Club, Super Saver, and Whole Foods to see how beef is being presented and sold to consumers. During the fnal day, the group was able to understand more about current industry issues by meeting with Jon Bruning, Nebraska Atorney General, Lavon Heidemann, Lieutenant Governor, Nebraska Department of Agriculture, and Senator Tom Hansen. Participants were also educated on the importance of social media and challenged to share their beef story with today’s consumers.
This year’s YCC class had a jam packed 3 day conference which helped to provide them with the tools to become our future leaders in the beef industry.
TESTING AND FEEDING TOBACCO-BROWN HAY AND SILAGE
Bruce Anderson, UNL Extension Forage Specialist
Last summer’s weather caused much hay to be baled too wet or silage chopped too dry. Now that hay and silage has heated and turned brown. How did this affect its feeding value?
Hay baled too wet or silage chopped to dry can get excessively hot and cause certain chemical reactions to occur. These chemical reactions and the heat that produces them will darken your forage and often make it smell sweet like caramel.
Livestock often find such hay or silage very palatable. But, the reactions that caused this heat-damage consumes valuable energy and also makes some of the protein become indigestible. Unfortunately, tests for crude protein cannot distinguish between regular crude protein and this heat-damaged protein. As a result, your forage test can mislead you into thinking you have more usable protein in your forage than actually is there.
If your forage test is done using NIR, heat-damaged protein may be one of the analyses reported. And if the heat-damaged protein is high enough, the test also will report an adjusted crude protein that is lower than the regular crude protein. However, the NIR test for heat-damage may not be accurate enough for you if your ration contains a lot of this forage and has little or no extra protein in it for your cattle.
When you suspect you have heat-damaged protein, request from your lab a chemical analysis for heat-damaged protein. Then have then use this test to correctly adjust the amount of crude protein your forage actually will provide to your animals.
Forage tests can tell us a lot about the nutrient supplying ability of our forages. But we need to make sure we conduct the right tests and then use the results wisely.
Engler Scholarship Application Deadline is Feb. 16
Students passionate about becoming an entrepreneur can now apply for scholarships to the Engler Agribusiness Entrepreneurship Program at the University of Nebraska-Lincoln's Institute of Agriculture and Natural Resources.
Scholarships are awarded annually to Engler Agribusiness Entrepreneurship students and renewable up to three years dependent on student performance, said the program's director, Tom Field.
To apply, students must complete an application and series of essay questions at http://engler.unl.edu/englerapplication. Applications are due by Feb. 16.
"We encourage students from across various academic programs in the College of Agricultural Sciences and Natural Resources to apply," Field said. "Our goal is to find students who are committed to building enterprises and who have the drive, passion and dedication to reshape rural economies through innovation and creativity applied to the broad realm of agribusiness. We are looking for students who are willing to accept risk in the pursuit of their dreams and who are willing to go the extra mile."
The Engler experience includes the academic minor, travel experiences to learn from outstanding entrepreneurs, networking opportunities, internships and a host of other experiential programming.
Students also can become part of the Agribusiness Entrepreneurship and Leadership: Solutions for the Future learning community through residence life. More information can be found at http://www.unl.edu/learncom/fylc.
The Engler program began in 2010 with a $20 million gift over 10 years from the Paul F. and Virginia J. Engler Foundation. The purpose of the program is to identify students with the entrepreneurial drive and then foster development of professional skills conducive to success in applying entrepreneurism in agriculture and agribusiness.
For more information about the program, visit http://engler.unl.edu.
Efforts to weaken COOL misguided
This week, the Center for Rural Affairs, R-CALF USA, Western Organization of Resource Councils and 95 other groups representing farmers, ranchers, consumers and other rural and small town interests sent a letter to Farm Bill Conference Committee members with an urgent appeal to resist making changes to weaken the nation’s country of origin labeling (COOL) law when they finalize the 2014 Farm Bill.
To view or download a copy of the letter go to: http://www.cfra.org/lettertocongressCOOL.
"Widespread reports circulating on Capitol Hill indicate that the United States Trade Representative was capitulating to the pressures by COOL opponents, primarily the National Cattlemen's Beef Association (NCBA) and their transnational meatpacker allies, to weaken, if not eliminate COOL," said R-CALF USA CEO Bill Bullard.
According to Bullard, the letter was initiated following reports last week that the Office of the U.S. Trade Representative (USTR), the federal agency responsible for defending the U.S. country of origin labeling law for meat and other food products before the World Trade Organization, was lobbying the Farm Bill Conferees to weaken the COOL law.
“Ranchers, farmers and consumers overwhelmingly favor retaining the strong, effective 2013 final COOL rules requiring retailers to inform their customers about where the meat they purchase comes from, and that means where the livestock were born, raised and slaughtered. A standard that the Center for Rural Affairs has advocated for nearly 20 years.” John Crabtree, Center for Rural Affairs.
“When we learned that the USTR was pressuring Farm Bill Conferees to replace current COOL rules with a ‘Product of North America’ label for meat from animals imported in the U.S., we knew it was time for urgent action,” said John Crabtree of the Center for Rural Affairs. “This North American or NAFTA-meat label is entirely unacceptable. Moreover, the Farm Bill Conference Committee is not the place for this effort to undermine COOL. It is an effort to undue democratic decision-making behind the closed doors at the 11th hour of the farm bill debate.”
Crabtee explained further that the final, 2013 rules are in line with decisions issued by the World Trade Organization (WTO) Appellate Body. But the purported amendment suggested by the USTR would not only erode the quality of information consumers would receive, it also fails to remedy the issues raised by the WTO dispute panel, opening the law up to future challenges.
Harkin, Grassley Join Bipartisan Group for RFS Revision
U.S. Senators Chuck Grassley and Tom Harkin Thursday were among a bipartisan group of 31 Senators who sent a letter to Environmental Protection Agency (EPA) Administrator Gina McCarthy. The letter is part of an ongoing effort to urge the agency to make changes to the Renewable Fuel Standard (RFS) 2014 rule. The Senators share concerns that the EPA's proposed rule will discourage investment and hurt job growth and rural communities across the country.
"The EPA is proposing a major step that reverses the momentum on biofuels," said Grassley. "The progress made toward energy diversity and independence will slip away if the EPA succeeds. The sentiment from almost one-third of the U.S. Senate is the proposal needs revision. We want the EPA to reconsider. The President as a supporter of biofuels should weigh in as needed."
"The intent of the RFS is to steadily increase contributions from biofuels in our transportation fuels markets to enhance our nation's energy security, protect the environment, and create jobs," said Harkin. "The proposed rule, requiring less biofuel in 2014 than in 2013, goes against this intent and is a significant step backward."
The EPA's proposed rule would set the biodiesel target at 1.28 billion gallons, which is below current industry production levels of around 1.7 billion gallons. It would also reduce the total biofuels target to 15.2 billion gallons. This is 1.34 billion gallons below the 2013 target of 16.55 billion gallons, and almost 3 billion gallons below the 2014 statutory target of 18.15 billion gallons.
The following Senators also signed on to the letter: Tammy Baldwin (D-WI), Max Baucus (D-MT), Michael Bennet (D-CO), Roy Blunt (R-MO), Sherrod Brown (D-OH), Maria Cantwell (D-WA), Dan Coats (R-IN), Joe Donnelly (D-IN), Dick Durbin (D-IL), Al Franken (D-MN), Deb Fischer (R-NE), Martin Heinrich (D-NM), Heidi Heitkamp (D-ND), Mazie Hirono (D-HI), John Hoeven (R-ND), Mike Johanns (R-NE), Tim Johnson (D-SD), Mark Kirk (R-IL), Amy Klobuchar (D-MN), Mark Udall (D-CO), Ed Markey (D-MA), Claire McCaskill (D-MO), Patty Murray (D-WA), Jack Reed (D-RI), Brian Schatz (D-HI), Jeanne Shaheen (D-NH), Debbie Stabenow (D-MI), John Thune (R-SD), and Elizabeth Warren (D-MA).
ISU Extension Hires Water Quality Program Manager
Jamie Benning has been hired as water quality program manager for Iowa State University Extension and Outreach. As an extension agronomist the past 13 years she has led multi-state water quality projects, supported farmer-led watershed initiatives and conducted agronomic research.
“Water quality is an issue that deserves additional attention,” said John Lawrence, Agricultural and Natural Resources Extension director. “We have a lot of activity in water quality and agricultural production. Having Jamie focused on coordinating water quality resources will be a great asset to ISU Extension and Outreach and the Iowans we work with on this issue.”
Iowa State University was a partner in the development of the statewide nutrient reduction strategy, working with the Iowa Department of Agriculture and Land Stewardship and Iowa Department of Natural Resources over a two-year period to develop the initiative.
The resulting strategy, finalized in May 2013, is the first time such a comprehensive and integrated approach addressing both point and nonpoint sources of nutrients has been completed. Iowa State continues to partner for the implementation of the Water Quality Initiative and helping farmers understand what tools and practices best fit their unique land and water situation.
Benning has worked with state and local partners, as well as members of watershed groups, through her water quality projects across Iowa and the Midwest. She is looking forward to providing cohesive access to essential research and extension support.
“Every Iowa farmer can be part of protecting our water resources,” Benning said. “Coordinating Extension’s efforts so all our specialists have science-proven and emerging practices to share with their clients will move us toward our statewide goals.”
Benning can be reached at benning@iastate.edu or by calling 515-294-6038.
NBB Awards Iowa Soybean Association CEO Highest Biodiesel Honor
During the National Biodiesel Conference & Expo this week in San Diego, individuals who have made significant impacts on the biodiesel industry were honored with the 2014 “Eye on Biodiesel” award. Included in the list of honorees was Kirk Leeds, chief executive officer of the Iowa Soybean Association (ISA).
“The biodiesel industry would not be what it is without champions and supporters like these Eye on Biodiesel honorees,” said Joe Jobe, CEO of the National Biodiesel Board. “We are proud to honor our award winners who have made a substantial impact in getting biodiesel to where it is today, a fully commercialized advanced biofuel that is produced from coast to coast.”
Leeds has been a leader among soybean organizations in supporting biodiesel efforts since the industry’s inception. ISA’s support of the National Biodiesel Board over the years has allowed the industry to prepare and face the challenges of being a billion-plus-gallon Advanced Biofuel. His visionary leadership has helped to maintain a mutually-beneficial, strong connection between the soybean and biodiesel industries. Kirk and ISA have been at the forefront of improving agriculture’s environmental performance. Through partnerships with farmers, environmental groups, agri-business and academia, ISA is helping lead efforts to identify practical solutions for complex environmental issues.
National Pork Industry Forum to be Held March 6-8, 2014
Delegates from across the United States will gather in Kansas City, March 6-8, 2014, for the annual National Pork Industry Forum.
The 15 producers who serve as members of the National Pork Board and Pork Checkoff staff leadership will hear directly from the 156 forum delegates appointed by U.S. Secretary of Agriculture Tom Vilsack. Each year the Pork Act Delegates confer, vote on resolutions and advisements, and provide valuable direction on the important issues facing pork producers and the industry. This year the delegates include 152 pork producers and four pork importers.
The theme for the annual pork forum -The Power of One: Many producers united in a common goal -was selected in reference to how the industry is taking proactive steps to join together in meeting the challenges facing the industry. From tackling concerns raised by the Porcine Epidemic Diarrhea Virus to responding to consumers seeking to learn how food is produced, thousands of individual farmers are doing their part to produce pork in a caring, responsible and professional manner.
"As an industry, we are stronger when we are united toward a greater common good," said Karen Richter, president of the National Pork Board and a producer from Montgomery, Minn. "Working together, we can make a collective difference in raising a single voice for all hog farmers. We'll demonstrate that clearly in Kansas City."
In advance of the annual meeting, members of the National Pork Board will also convene their March board meeting. The agenda for that meeting will include updates on 2014 plans to enhance pork demand, increase market opportunities, improve pork production practices and invest in research priorities.
Included on the 2014 Pork Forum agenda will be opportunities for pork producers to become trained in the pork industry's Pork Quality Assurance® Plus (PQA Plus®) certification process, as well as provide input into the Pork Checkoff's new strategic plan that is currently being developed.
The full agenda is available at www.pork.org. As the event draws near, the website will be updated with current information and links to the Pork Forum manual and videos of candidates nominated for industry positions.
Applications Now Being Accepted for Pork Industry Environmental Stewards Award
Environmental stewardship is hard work and sharing the experience gained may help others become better caretakers. Environmental stewardship requires constant work and a serious commitment. The Environmental Steward Awards program is open to pork producers of all types and sizes of production operations who demonstrate their positive contribution to the environment.
Pork operations are recognized annually by the U.S. pork industry for their commitment to preserving the environment.
Applications (PDF or MS Word) and nominations are solicited from pork producers, operation managers and other industry-related professionals and are to be submitted by March 31, 2014. A national selection committee names four operations following a review of:
• General production information
• Manure management
• Efforts to preserve water, air, and soil quality
• Aesthetics and neighbor relations
• Wildlife management
• Innovation applied to environmental management
• And an essay on the meaning of Environmental Stewardship
Winners are featured in an educational video, receive a special plaque and are recognized at an awards ceremony at the annual Pork Industry Forum.
The Environmental Steward Awards, program is co-sponsored by the Pork Checkoff and National Hog Farmer magazine.
Farm Bill Moving Slow
(from NAWG)
Farm bill negotiators hoped to have a draft conference report wrapped up this week, but with Congress in recess and the government shut down on Tuesday due to weather the farm bill progress has once again stalled. Country-of-origin-labeling (COOL) is at the top of the headlines this week as 97 organizations trying to protect the law sent a letter to the conferees this week asking that there be no changes to the current COOL law stating that “the final rules provide clear information to consumers that balances the small cost of implementation”. Organizations on the other side of this issue are concerned that if the program stays in place the industry will risk losing a World Trade Organization (WTO) challenge brought by Canada and Mexico. If negotiators are able to get agreements on COOL and other outstanding issues soon they could possibly avoid having public votes at the full conference committee level.
House and Senate Committees Talk Climate
Last week, the Senate Environment and Public Works Committee heard from the EPA Administrator Gina McCarthy and other administration officials regarding the President’s Climate Action Plan released in June. The President’s Climate Action Plan is comprised of three pillars: reducing carbon pollution in the U.S., preparing for the impacts of climate change and leading international efforts on climate change. Federal Agencies are directed to use existing statutes to address the plan. As part of the Action Plan, EPA released a proposed regulation last fall to reduce carbon pollution from future power plants. This hearing and action in the House Commerce committee last week on legislation intended to limit EPA’s proposed regulation mark the start of a year that is expected to be focused on Climate Change. U.S. Department of Agriculture (USDA) has released several climate mitigation and adaptation plans and is expected to announce regional Climate Hubs very shortly.
Farmers, Industry Gather with Federal Partners at Biotech Working Group Meeting in D.C.
Despite single-digit temperatures and myriad travel delays, the members of the American Soybean Association’s Biotech Working Group met this week in Washington to discuss the current regulatory landscape for biotechnology in the U.S.
ASA’s farmer-leaders joined their counterparts from the United Soybean Board (USB) and the U.S. Soybean Export Council (USSEC), as well as representatives from industry technology providers, to meet with administration officials, including Dr. Michael Firko, Acting Deputy Administrator of the Biotechnology Regulatory Services (BRS) office at USDA, Dan Rosenblatt, Associate Director of the Registration Division in EPA’s Office of Pesticide Programs and Ed Porter, Director of the New Technology Division at the Foreign Agricultural Service.
Deputy Administrator Firko provided an update on the USDA’s regulatory process, while Rosenblatt did the same for EPA, touching on ways the two agencies work together to streamline the regulatory process. Porter discussed the current state of biotech regulatory affairs in China, Korea and the EU.
Attendees also heard more on the EU biotechnology landscape from industry consultant Benno van der Laan, as well as an update on the progress of the U.S. Biotech Crop Alliance from USBCA Secretariat Dr. Michael Phillips.
This week’s was the first of two 2014 meetings for the Biotech Working Group. The group will meet again this summer, at a venue yet to be chosen.
USSEC to Hold Global Strategy Planning Meeting in Colombia
The U.S. Soybean Export Council will hold its global strategy planning meeting in Bogota, Colombia from January 28-30. This annual meeting will cover USSEC programs in all regions.
Participants will include USSEC staff; USSEC board members; United Soybean Board (USB) Action Team Leads; American Soybean Association (ASA) Trade Policy and International Affairs (TPIA) Chair; World Initiative for Soy in Human Health (WISHH) representative; North American Export Grain Association (NAEGA) representatives, North American Oilseed Processing Association (NOPA) representatives; Qualified State Soybean Board (QSSB) representatives; Foreign Agricultural Services (FAS) representatives; and USSEC members.
The objective of the meetings is to review global market conditions for U.S. soy in order to develop a strategic approach for Unified Export Strategy FY 15 (UES 15). Global markets represented by the USSEC regions of Greater Europe and Middle East / North Africa; the Asian subcontinent; the Americas; North Asia; and Southeast Asia will be discussed with market overviews, constraints to greater U.S. exports, and USSEC’s strategic approach galvanizing the discussion for each region. Participants will discuss driving customer preference, differentiating commodity products, securing market access through sounds science, QSSB successes and opportunities.
Statutory 2014 RFS Levels Can be Met Through Increased E85 and E15 Consumption, Carryover RINs
A new study by Informa Economics entitled “Analysis of the Potential Use of Biofuels toward the Renewable Fuel Standard in 2014” shows the originally intended Renewable Fuel Standard (RFS) 2014 blending requirements can be reached through expanded consumption of E85 and E15, as well as judicious use of carryover RIN credits. The study clearly demonstrates why the Environmental Protection Agency’s proposal to reduce RFS blending requirements is unnecessary and imprudent.
Using empirical data from 2013, the study shows that E85 sales volumes respond strongly to changes in RIN prices. This demonstrates the RFS program is working exactly as intended to drive expanded consumption of biofuels above the so-called E10 “blend wall.” The study finds, “It is possible for all statutory components and allocations within the Renewable Fuel Standard to be met in 2014, after adjustments have been made for a waiver of a large majority of the Cellulosic Biofuel Standard.”
The Informa analysis was commissioned by the Renewable Fuels Association and Iowa Corn Promotion Board. It will be used to support the groups’ comments to EPA on its proposed rule for 2014 RFS blending requirements.
The study takes a closer look at likely consumption, finding that ethanol consumption in 2014 could be at least 13.7 billion gallons, compared to the EPA’s assumption of 13.0 billion gallons. It points toward E85 as a major contributor, stating, “E85 accounts for most of the potential for expanded consumption.” And continues, “The increase could be even larger if E85 is priced at a sustained discount to gasoline (on an energy-equivalent basis), as the consumer response could be stronger than implied by historical data, since discounts have been transitory in the past.”
“This study is further proof that the so-called ‘blend wall’ can be easily scaled if the RFS is allowed to work as intended,” said Bob Dinneen, President and CEO of the Renewable Fuels Association. “As I have said time and time again, the RIN mechanism is the tool to drive innovation and infrastructure to accommodate higher ethanol blends like E85 and E15. There is absolutely no need to reduce or repeal the RFS. It is working.”
“We hope that this study further emphasizes that the EPA decision to lower the RVO just doesn’t make sense,” said Roger Zylstra, a farmer from central Iowa and current president of the Iowa Corn Growers Association. “As a corn grower, I know we have the science and the production to back up the current RFS. It is working and we need to move forward, not backward on our energy security.”
Council Briefs SAG (China) on Corn Quality, Biotechnology
U.S. corn quality and biotechnology issues highlighted the discussion today as a Chinese delegation of provincial State Administration of Grain (SAG) officials visited the U.S. Grains Council's Washington, D.C., headquarters. Council board member Chip Councell of the Maryland Grain Producers Utilization Board, was able to join the meeting and provide a farmer's perspective on the practical and environmental benefits of biotechnology.
"This visit was scheduled long before the current biotech developments in China," said USGC President and CEO Tom Sleight, "but it was a great opportunity to bring the team up to date on the key role that biotechnology plays in U.S. agriculture today."
The Council visit was part of an extensive itinerary that had taken the Chinese team to meet with a variety of government and industry leaders in Washington. The Council visit started with USGC Manager of Global Trade Alvaro Cordero presenting the findings of the 2013/2014 Corn Harvest Quality Report. Following the presentation Sleight discussed the group's concerns as well as their thoughts on biotechnology.
IMG 0038SAG's key concerns were corn quality, storage issues, and heavy metal contamination. In response to a question, the SAG team also acknowledged that the issue of biotechnology is extremely difficult right now in China. Councell responded with a U.S. producer's perspective.
"I've planted GM varieties on my farm since 1996," Councell said, "and I was able to report that this has significantly reduced insect damage, improved storage because we're now storing healthier corn, and dramatically reduced chemical usage. It seemed clear from the follow-up questions that the message got through. Biotechnology isn't just about increasing yield; it's about improving quality as well."
The Council continues to be engaged with Chinese officials and industry leaders at all levels regarding the evolving status of biotech approvals. While the SAG group is concerned with more issues than just biotechnology, they will return to China with a much stronger appreciation of the role that biotechnology plays in increasing both quality and yield.
Too Much of a Good Thing
Shawn Campbell, US Wheat Assoc. Assistant Director, West Coast Office
Canadian farmers enjoyed the blessing of near perfect growing conditions this year, leading to a record wheat crop of 37.5 MMT that was 38 percent larger than last year’s crop. Combined with a record canola crop and good production for other crops, the year held great promise for Canadian agriculture.
Sadly, the bumper crops have overwhelmed the Canadian logistical system and proven to be too much of a good thing. Farmers report that country elevators are only offering low or even no bids on wheat for nearby delivery. Some farmers who signed forward contracts say elevators are pushing back their delivery dates and the CWB is not posting wheat basis prices for delivery before next October. As a result, farmers are stuck with crops losing value every day they stay in their bins. Reuters reported that some farmers have resorted to selling wheat into feed channels or trucking it south into the United States, but at very small volumes that cannot really improve the situation.
Canadian grain exporters also expected a great year but now face similar challenges, especially those moving grain through the Pacific ports of Vancouver and Prince Rupert. USDA currently projects that Canada will export 23.0 MMT of wheat this year, the most since 1991/92. As of late December, Canada had exported 8.2 MMT of wheat in 2013/14, up 8 percent compared to the same time last year. However, its December exports only totaled 1.5 MMT. That is down 18 percent compared to November and down 14 percent compared to December 2012. It is also the first time this marketing year that the month’s wheat exports were less than the same month last year.
The Port of Vancouver is especially hard hit. Analysts reported an average processing time of 17 days per grain ship compared to a normal processing time of nine to 10 days. There are also reports that rail shipments arrive at export terminals with the wrong grain at the wrong time or just don’t arrive at all. The result is a growing backlog of ships, more than the available anchorage at Vancouver, ringing up more than $10 million (USD) in demurrage fees so far. Canadian Pacific exporters now indicate they will be unable to take on any new business until after May.
Railroads and rail car shortages may have contributed to the logistical problems. Local analysts indicated that major rail carriers Canadian National and Canadian Pacific accumulated a backlog of 40,000 cars from August to December. That is eight times more than last year with grain capacity of 4.0 MMT. However, Canadian National reported it moved 12 percent more grain than its five-year average for the same period while Canadian Pacific moved 16 percent more than its five-year average. The railroads claim their challenge is not a backlog, but rather the inability to get cars to the right place at the right time. Many analysts cited archaic rail regulations, such as a rail revenue cap, the lack of a secondary rail car market and a lack of rail demurrage fees for creating major inefficiencies in the grain handling system.
The Canadian grain trade, which is still adapting to an open market, may have tried to push too much grain through the system too quickly. Given the huge crop, some analysts suggest Canadian grain traders put out discounted bids after harvest. Buyers responded quickly. In fact, the Pacific Canadian grain terminals have exported 9 percent more than last year, including 670,000 MT going to countries normally serviced by the eastern terminals that could not compete with west coast prices. Eventually, though, the bottlenecks formed in the west because the system could not keep pace with demand.
The Canadian grain market is facing a difficult lesson in open grain marketing this year. Debate over the reasons behind the logistical issues will continue as the Canadian government initiates a review of the grain transportation system. Questions remain as to whether or not Canada will achieve USDA’s wheat export projection of 23.0 MMT. If not, Canada will likely end this marketing year with its highest wheat ending stocks since the early 1990s, and that will challenge the Canadian and U.S. wheat markets well into 2014/15 and maybe beyond.
Peru-US FTA to Drive US Corn Exports to Peru in Early 2014
Kurt Shultz, U.S. Grains Council Regional Director of the Americas
After two years of no U.S. corn exports to Peru, the competitively priced 2013 U.S. corn crop is expected to turn this around. The U.S.-Peru Free Trade Agreement (FTA), which was implemented in 2006, creates conditions where Peruvians will aggressively purchase U.S. corn in January and February of this year.
In recent years, the United States has been uncompetitive in the Peruvian market due to high prices compounded by more favorable duty treatment for South American producers. However, this year with the large supply of U.S. corn and the FTA, U.S. corn has a price advantage in the Peruvian market.
Under the FTA, U.S. corn imports have a zero percent duty on the first 670,000 metric tons (26.4 million bushels) of corn imports. Since the FTA contains first-come first-serve criteria, the Peruvian buyers will be competing aggressively to purchase U.S. corn early this year.
It is uncertain how long the price advantage will last when South American corn enters the market; however, it is likely that the United States will export at least 1 million tons (39.4 million bushels) of corn to Peru in the first two months of 2014.
This is just one more example of how FTAs are the long-term foundations that allow U.S. producers to benefit and create export opportunities.
Timing of Nitrogen Applications Can Enhance Yields
Growers are doing a better job of managing nitrogen fertilizer applications. In recent years, the amount of fertilizer used has remained relatively constant while average yields have steadily increased. DuPont Pioneer experts suggest growers continue to look for ways to make the application of nutrients — particularly nitrogen — as efficient as possible. One strategy is to adopt split applications.
“Modern hybrids take up nitrogen later in the growing season,” says John Shanahan, DuPont Pioneer research scientist. “Data suggest applying nitrogen during the growing season, to coincide better with crop uptake of this nutrient, can result in higher yields.”
Growers know the pros and cons of fall nitrogen (N) application. While it may be necessary to apply fertilizer before winter, there are ways to minimize the potential for leaching and runoff. “Growers can mitigate losses from fall application by applying anhydrous ammonia after the soil temperature has dropped below 50 degrees — assuming it doesn’t warm up again for a lengthy period,” Shanahan says. “Also, N stabilizers can help keep nitrogen in the stable ammonium form.”
Some states even mandate withholding application until after a certain date and/or the use of a stabilizer.
Spring application of nitrogen leaves less time for leaching, but unpredictable weather can make it difficult for some growers to get into the field.
“Early planting trends can work against spring applications,” Shanahan says. “Many growers want to get seed in the ground as early as practical, and they don’t want to deal with fertilizer application if it may delay planting.”
Recent work by Tony Vyn at Purdue University demonstrates a substantial positive impact from applying nitrogen after planting. This is not surprising, as crops require the lion’s share of their nitrogen needs just before the reproductive stages.
“Growers must overcome some obstacles to make a second nitrogen application in season,” Shanahan says. “They need high-clearance equipment, which is expensive. They’re also at the mercy of weather: Can they get into the field in a timely manner to get the second application down?”
The industry is making strides to help growers find better ways of timing nitrogen applications. “It’s incumbent on our industry to help growers find practical solutions,” Shanahan asserts. “Crop sensors are one technology that adjusts side-dress N application rates for weather effects such as excessive rainfall.” The result can be increased yields, improved profits, and more efficient fertilizer use.
Because of the complex nature of soil and weather variability, growers face significant challenges in optimizing the amount of N to apply to each field, year and area within a field. This results in under-application of N in some years and fields, with resulting yield losses and over application of N in other years and field areas resulting in inefficient use of N resources.
For example, through analysis of data compiled from hundreds of N rate response studies conducted throughout the Corn Belt over several years designed to determine economic optimum N rate, Pioneer has determined growers are potentially losing on average around $55/acre of revenue due to a combination of over- or under-application of N.
Pioneer is working to provide real-time information to help growers make better decisions on N applications, such as when and how to apply, what soils to apply and optimum application rates. Also, Pioneer is working internally and with collaborators to understand the mechanisms of in-season nitrogen application. The information and the process developed should help growers make better decisions, reduce risk and increase crop yields.
“Generally, it pays to avoid putting all your nitrogen down at once.” Shanahan says. “Today’s genetics show potential to deliver more bang for your buck through split applications.”
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