Thurston Mfg. Grows Workforce By 18% in 2011 
Still Looking For More

As much of the nation’s economy continues to struggle with issues of low consumer demand and high unemployment, the agricultural sector has been soaring.  This growth extends past farming operations to the dealers and manufacturer’s that provide farmers with agricultural equipment.  As the manufacturer of Circle R Side Dump Trailers and BLU-JET fertilizer and tillage products, Thurston Manufacturing has seen tremendous growth within the last 24 months and sees the opportunity for more.    Over the past year Thurston Manufacturing Company has hired 14 additional people to help meet new product demand and serve existing customers; they have 22 additional new positions open they are looking to fill immediately.
 
“We have been asking a lot from our current workforce this past year in terms of additional overtime hours and improving production efficiencies; and they have stepped up to the challenge”, said Ryan Jensen.  “We have a great group of people here that work very hard day in and day out to meet our production goals.”
 
As Thurston Manufacturing’s Chief Operations Officer, one of Jensen’s responsibilities is to try and keep production on pace with swelling demand.  He’s been meeting the challenge thus far by offering overtime and additional incentives to current employees, while continuing to hire qualified candidates that apply for work.

Although these measures have worked to satisfy demand so far, Jensen recognizes that they are temporary solutions to a more permanent challenge.  “We realized that the high level of demand we are experiencing is likely to continue, and the pace and hours our team has been working simply isn’t sustainable for an extended period of time”, he observed.  “We have been over extending both our employees and our facilities; and the market has presented us with an opportunity to take a step forward and grow as a company in both of these areas.”
 
Nick Jensen, Chief Marketing Officer at Thurston Manufacturing, concurs with his brother’s assessment of the marketplace.  “It’s no secret that the agricultural sector of our nation’s economy is currently one of its brightest beacons”, he said.  “We’re seeing heightened demand for BLU-JET equipment from our traditional markets in the U.S. corn belt, as well as newer markets in North America, Europe, Asia, and Africa”.  Activity is also increasing in the Circle R Side Dump product line, as dealers have cleared out all existing inventory and are looking for more.”

On top of filling the 22 new full time positions now available within the production facility, plans are in place to invest three to five million dollars towards a 50% increase in facilities and equipment over the next 5 years using various funding sources.  The timing and total amount invested will depend on the continued stability of the agricultural economy, and the continued recovery of the construction industry.  The company is working to ensure that demand for its products stays strong by aggressively pursuing the expansion of its overseas markets.   
 
“Over the last few years, our primary domestic markets have dominated our production capacities, with export sales running a mere 6% of total sales”, said Jensen “With the expansion efforts we are now making, export sales could increase to 20% in the next two to three years; while simultaneously increasing our abilities to meet higher primary and secondary domestic market demands.”
 
The completed expansion will extend all three current buildings southward and add a new building to the east side of the facility.  Cleaning, painting and assembly areas are the focus of filling the new footprint.  Automation and robotics will also play a major role in the expansion process.  This will increase the current square footage under roof by 50%.  Concrete work for

the plant expansion project started September 19th.  The new building should be completed by mid-summer 2012, and be fully operational at this time next year.
 
Based in Thurston, NE, Thurston Manufacturing is celebrating 40 years of designing, producing and marketing manufactured durable goods.  It currently manufactures two prominent brands:  BLU-JET Fertilizer and Tillage Products for agriculture, and Circle R Side Dump Semi-Trailers for the construction, mining, demolition, refuse and agricultural industries.  For more information regarding positions currently available at Thurston Manufacturing Company, call 800.658.3127 or visit the facility located at 1708 H Ave., Thurston, NE.



Producers Encouraged to Monitor Grain this Fall

As harvest begins around the state, farmers are encouraged to be aware of the potential for development of molds and fungus in corn. Recent warnings by Iowa State University (ISU) Extension and Outreach's Integrated Crop Management (ICM) staff about hail-damaged corn in northwest Iowa help draw attention to the issue, according to ISU Extension swine program specialist Matt Swantek.

"The concern is not only for crop farmers, but for those feeding corn to livestock," Swantek said. "Pork producers whose corn fields experienced hail late this summer should be monitoring grain for contamination and either avoid feeding contaminated grain to pigs or explore alternative strategies for utilizing this corn in their feeding programs."

It's recommended that suspect fields be harvested as early as possible because molds and toxins worsen as they remain in the field, he said. Normally, there is no increase as grain is stored.

The presence of mycotoxins in corn can have long-term effects, including effects on sell weights of pigs a year or more in the future.

"High levels of mycotoxins in the 2009 corn crop led to longer days on feed, lower gains and poorer feed efficiencies in operations in 2010," Swantek said. "Pigs were held in barns longer because weight gains were slower, and sell weights were 10 to 20 pounds lighter than targeted by producers."

The effects of those lower efficiencies carried over into 2011 albeit in a different way.

"2011 sell weights were higher than 2010 because those having to feed contaminated grain until the 2010 crop reached storage and usage grew accustomed to slower gains and lighter sell weights," Swantek said. "Thus, when the 'clean' 2010 corn was fed, pigs ate more, and grew faster, consequently catching many unprepared and selling hogs much heavier than expected."

Being aware of any contamination in corn or feed stocks now also can help producers better plan for the financial uncertainty of grain markets, he said. Late summer reports of lower yields for the 2011 crop and record low 2010 ending stocks may force grain prices to new highs and mean additional higher pressures on cost of production and lower returns."

A great information source on molds and fungus is available from the Iowa Pork Industry Center website. Written by ISU swine nutrition specialist John Patience and clinician Steve Ensley with ISU's Veterinary Diagnostic and Production Animal Medicine department, "Mycotoxin Contamination of Corn: What it is, what it does to pigs, and what can be done about it" (IPIC12) can be viewed and downloaded at no charge.



Nebraska Ethanol National Open races October 1-2
Ethanol-powered cars & E85 discounts featured during weekend racing events

The Nebraska Ethanol Board is co-sponsoring racing events this weekend at the Kearney Raceway Park in Kearney, including quarter-mile drag races with cars powered by E85.

As part of this weekend’s events, two Bosselman’s Pump & Pantry locations in Kearney will offer an 85 cent per-gallon discount on E85 and a free 32 oz. soft drink with a minimum 10 gallon purchase of E85. This special deal is good only on Sunday, October 2 from noon to 6 pm at the Pump & Pantry at 4311 N 2nd Avenue, and the Pump & Pantry at 1212 E 56th Street.

E85 is a blend of up to 85% ethanol with gasoline and can be used in Flex Fuel Vehicles. Visit the Nebraska Ethanol Board online for a list of E85 stations in Nebraska...  http://www.ne-ethanol.org/e85/stations.htm.  

Saturday’s events include Test and Tune & NHRA Qualifying starting at 10 am, and Super Shootout & ST/SS Combo races beginning at 3pm.

Sunday’s events begin at 9 am with Time Trials & NHRA qualifying. Eliminations begin at 1 pm.

Starting times for races are subject to change due to weather. Check the Kearney Raceway Park website at www.krpi.com for entry and admission details. Download the flier here for more on the races... http://www.krpi.com/Images/index/Special%20Event%20Flyers/2011%20National%20Open.jpg.   



ASA’s 2012 Farm Bill Proposal: "Risk Management for America’s Farmers"
Savings Would Be Used for Agriculture’s Share of Deficit Reduction

The American Soybean Association today released its proposal for the 2012 Farm Bill, "Risk Management for America’s Farmers." "This proposal will help farmers manage the risks they face from adverse weather, crop disease, and volatile commodity markets," stated ASA President Alan Kemper, a soybean producer from Lafayette, Ind. "ASA believes the current farm program safety net can be made more effective, efficient, and defensible by reallocating baseline funding to this revenue-based program that improves risk management and complements crop insurance," Kemper added. Because the proposal would replace current farm programs, this proposal would also result in savings that help agriculture contribute its fair share to deficit reduction.

The "Risk Management for America’s Farmers" program, or "RMAF," would partially protect revenue losses by farmers of soybeans and other program commodities that result from low prices or reduced yields for their crops. The program would establish commodity-specific revenue benchmarks for individual farmers based on historical yields and prices, and compensate them for part of the difference when current-year revenue for a commodity on their farm falls below a percentage of the benchmark. All planted and prevented planted acres would be covered under the plan. The program would complement the existing crop insurance program used by most farmers, which ASA strongly supports and believes should be continued. More details on the plan can be found on ASA’s website at www.soygrowers.com/policy/ASA-RMAF.pdf. 

"ASA supports a risk management program that partially offsets shallow revenue losses at the farm level not covered by crop insurance," said ASA Farm Bill Task Force Chairman Rob Joslin, a soybean farmer from Sidney, Ohio. "Farmers told ASA that they want a program that operates off a farm-level revenue loss trigger rather than a state, Crop Reporting District, or even county loss trigger. Farmers told us that the use of a state-level revenue loss trigger in the current Average Crop Revenue Election (ACRE) program was one of the problems they saw in that program that resulted in low participation rates. I want to thank the members of ASA’s Farm Bill Task Force, who were from all soybean growing regions, for their work in listening to their fellow producers and for crafting this risk management proposal," concluded Joslin.

According to Kemper, "Preliminary indications are that RMAF could cost significantly less than the existing ACRE, the Supplemental Revenue Assistance Payments Program, Direct Payment, and Counter-Cyclical programs, resulting in savings that can be used to meet part of agriculture’s share of deficit reduction required by the Budget Control Act." Kemper added that "while ASA strongly supports federal support for on-farm conservation practices, given the cost of these programs, we believe they need to be included in helping to meet agriculture’s share of deficit reduction. Thus, for that for that portion of spending cuts that does not come from other farm bill titles, ASA is suggesting spending reductions should come equally from commodity and conservation programs.

"ASA supports efforts to address our Nation’s debt through a comprehensive and balanced approach to deficit reduction that includes cuts to all areas of Federal spending," said Kemper. "Farmers are willing to do their fair share to contribute to these efforts, but cuts to agricultural spending should not be disproportionate." The ASA President concluded his remarks by emphasizing that "federal crop insurance is the core of agriculture’s safety net, and has already contributed to deficit reduction. ASA will strongly oppose any proposal to further reduce crop insurance funding."

ASA represents all U.S. soybean farmers on domestic and international issues of importance to the soybean industry. ASA’s advocacy efforts are made possible through the voluntary membership in ASA by over 21,000 farmers in 31 states where soybeans are grown.



September Farm Prices Received Index Declines 1 Point

The preliminary All Farm Products Index of Prices Received by Farmers in September, at 183 percent, based on 1990-1992=100, decreased 1 point (0.5 percent) from August. The Crop Index is unchanged but the Livestock Index decreased 7 points (4.4 percent). Producers received higher prices for cattle, strawberries, hay, and grain sorghum and lower prices for broilers, hogs, milk, and corn. In addition to prices, the overall index is also affected by the seasonal change based on a 3-year average mix of commodities producers sell. Increased monthly marketings of corn, soybeans, apples, and potatoes offset decreased marketings of cattle, wheat, broilers, and grapes.

The preliminary All Farm Products Index is up 40 points (28 percent) from September 2010. The Food Commodities Index, at 169, decreased 4 points (2.3 percent) from last month but increased 28 points (20 percent) from September 2010.

Prices Paid Index Unchanged
The September Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 205 percent of the 1990-1992 average. The index is unchanged from August but 22 points above (12 percent) September 2010. Higher prices in September for complete feeds, supplements, LP gas, and potash & phosphate offset lower prices for concentrates, feeder cattle, feed grains, and feeder pigs.

Prices Received by Farmers
All crops: The September index, at 210, is unchanged from August but 38 percent above September 2010. Index increases for fruits & nuts, feed grains & hay, and upland cotton offset index decreases for oilseeds, food grains, commercial vegetables, and potatoes & dry beans.

Food grains: The September index, at 245, is 1.6 percent below the previous month but 30 percent above a year ago. The September all wheat price, at $7.53 per bushel, is down 8 cents from August but $1.74 above September 2010.

Feed grains & hay: The September index, at 281, is unchanged from last month but 62 percent above a year ago. The corn price, at $6.69 per bushel, is down 19 cents from last month but $2.61 above September 2010. The all hay price, at $176 per ton, is up $4.00 from August and $64.00 higher than last September. Sorghum grain, at $11.70 per cwt, is $1.00 above August and $4.44 above September last year.

Cotton, Upland: The September index, at 157, is up 1.3 percent from August and 28 percent above last year. The September price, at 95.4 cents per pound, is up 1.4 cents from the previous month and 20.7 cents above last September.

Oilseeds: The September index, at 215, is down 10 percent from August but 44 percent higher than September 2010. The soybean price, at $13.10 per bushel, decreased 30 cents from August but is $3.12 above September 2010.

Livestock and products: The September index, at 151, is 4.4 percent below last month but up 13 percent from September 2010. Compared with a year ago, prices are higher for cattle, milk, eggs, hogs, calves, and turkeys. Prices for broilers are lower than last year.

Meat animals: The September index, at 149, is down 2.6 percent from last month but 16 percent higher than last year. The September hog price, at $66.70 per cwt, is down $9.10 from August but $5.70 higher than a year ago. The September beef cattle price of $112 per cwt is up $1.00 from last month and $17.90 higher than September 2010.

Dairy products: The September index, at 160, is down 4.8 percent from a month ago but 18 percent higher than September last year. The September all milk price of $20.90 per cwt is down $1.10 from last month but $3.20 higher than September 2010.
 
Poultry & eggs: The September index, at 147, is down 8.1 percent from August but unchanged from a year ago. The September market egg price, at 76.9 cents per dozen, decreased 22.2 cents from August but is 32.3 cents above September 2010. The September broiler price, at 44.0 cents per pound, is down 4.0 cents from August and 5.0 cents below a year ago. The September turkey price, at 72.1 cents per pound, is up 1.4 cents from the previous month and 3.1 cents higher than a year earlier.



FSA Reminds Producers of MILC Production Start-Month Change Provisions    

Thurston County USDA Farm Service Agency (FSA) Executive Director Josie Waterbury reminds Milk Income Loss Contract (MILC) Program participants that they can change the month of commercially marketed production for which the Commodity Credit Corporation (CCC) will begin issuing payments to their dairy operation.

"Any start-month changes must be made on or before the 14th of the month before the selected MILC production start-month," said Waterbury.  "The change must also be made before requesting payment and before the original MILC production start-month has passed," she said.

Changes to the dairy operation production start-month must be designated on FSA’s form CCC-580M, "Milk Income Loss Contract (MILC) Modification."  

MILC compensates dairy producers when domestic milk prices fall below a specified level. Eligible dairy producers can apply for program benefits any time through September 30, 2012.




Chicago Fed Reserve to Hold Conference on Rising Farmland Values

On November 15, the Federal Reserve Bank of Chicago will hold a conference to explore the factors contributing to large increases in agricultural land values and cash rental rates in the Midwest.

Farmland values increased 16 percent from a year ago in the first quarter of 2011; 2011 cash rents for farmland increased 16 percent as well. At the conference, experts from academia, industry and policy institutions will present research on the causes of rapid increases in agricultural land values and cash rents, as well as their interrelationship.

The goals of the conference include analyzing demographic and geographical characteristics of Midwest farmland ownership; understanding the dynamics of farmland valuations; assessing the risks facing agriculture and the banking industry from rising farmland values; and discussing policy implications for agricultural lending stemming from current farmland trends.



FSA Decreases Complaints to Lowest-Ever Level

U.S. Department of Agriculture Farm Service Agency Administrator Bruce Nelson announced Wednesday that FSA has significantly reduced the number of civil rights complaints in fiscal year 2010 to the lowest level in the agency's history, while increasing the number of loans and dollar amount obligated to programs dedicated to minority and women farmers for fiscal year 2011.

"The loan numbers reflect the significant progress we have made in the effort to equally serve all eligible applicants for FSA program support," said Nelson. "Under the leadership of President Obama and Secretary Vilsack, the Farm Service Agency is committed to diversity, inclusion and performance like never before, for the benefit of our customers and our employees. At USDA, we understand that the work we do makes a positive impact on the lives of the American people every single day, in so many ways."

Over the last fiscal year, FSA's loan division conducted business with 70,000 borrowers and provided support to 1.9 million producers through its farm programs. Out of the nearly 2 million producers the agency has served, 37 complaints were received — the lowest number filed since the agency began. During the same year, more than 5,650 loans and $509 million in support were obligated to minority and women farmers under FSA's loan programs.

Funding obligated for minority and women farmers has increased in fiscal year 2011 by 9 percent over the same period last year, to $554 million as of September 27, 2011. The largest increase has come in guaranteed farm ownership loans. These loans, which help producers obtain commercial credit to establish or maintain a family farm or ranch, have increased 40 percent to $161.8 million for minority and women farmers.

In addition to improvements in lending practices to minority and women producers, FSA has seen an overall improvement in its loan portfolio. Losses in the direct loan program fell to 1.2 percent, its second lowest level since 1986, while direct loan delinquency has been at historic lows not seen for the past two decades, resting at 5.9 percent. Delinquency rates for fiscal year 2010 under the guaranteed loan program were at 1.69 percent, the second lowest since 1995. Foreclosure rates remain low with just 64 completed in fiscal year 2010. That represents less than one-tenth of one percent of the agency's direct loan caseload.

As a result of this progress, USDA Assistant Secretary for Civil Rights Joe Leonard presented FSA with a "Job Well Done" award in December 2010. The award underscores efforts made by USDA to improve its service after years of litigation alleging unfair treatment to women and minority farmers and ranchers.

NEBRASKA HOG INVENTORY UP 3 PERCENT
 
Nebraska inventory of all hogs and pigs on September 1, 2011, was 3.25 million head, according to the USDA’s National Agricultural Statistics Service, Nebraska Field Office.  This was up 3 percent from September 1, 2010 and up 5 percent from June 1, 2011.  Breeding hog inventory, at 380,000 head, was up 3 percent from September 1, 2010 and unchanged from last quarter.  Market hog inventory, at 2.87 million head, was up 3 percent from last year and up 6 percent from last quarter.   
 
The June-August 2011 Nebraska pig crop, at 1.84 million head, was up 2 percent from 2010.  Sows farrowing during the period totaled 175,000 head, unchanged from last year.   
 
Nebraska hog producers intend to farrow 180,000 sows during the September-November 2011 quarter, unchanged from the actual farrowings during the same period a year ago.  Intended farrowings for December 2011-February 2012 are 180,000 sows, up 3 percent from the actual farrowings during the same period the previous year.   

Iowa:  
On September 1, there were 20.0 million hogs and pigs on Iowa farms,  up  2 percent  from  the  19.6  million  in  both  June  2011  and September 2010. This is a new record high inventory.  The  June  -  August  2011  pig  crop  was  5.00million  head.    A  total  of 485,000 sows farrowed with an average litter size of 10.3 pigs per sow.  As of September 1, producers planned  to farrow 485,000 head of sows and  gilts  in  the  September  -  November  2010  quarter.  Farrowing intentions  for  the  December  2011  –  February  2012  period  were estimated at 480,000 as of September 1, 2011.  



United States Hog Inventory up 1 Percent

United States inventory of all hogs and pigs on September 1, 2011 was 66.6 million head. This was up 1 percent from September 1, 2010, and up 3 percent from June 1, 2011.  Breeding inventory, at 5.81 million head, was up 1 percent from last year, and up slightly from the previous quarter. Market hog inventory, at 60.8 million head, was up 1 percent from last year, and up 3 percent from last quarter.

The June-August 2011 pig crop, at 29.1 million head, was up 1 percent from 2010 and up 1 percent from 2009. Sows farrowing during this period totaled 2.90 million head, down 1 percent from 2010 and down 2 percent from 2009. The sows farrowed during this quarter represented 50 percent of the breeding herd. The average pigs saved per litter was a record high 10.03 for the June-August 2011 period, compared to 9.81 last year. Pigs saved per litter by size of operation ranged from 7.50 for operations with 1-99 hogs and pigs to 10.10 for operations with more than 5,000 hogs and pigs.

United States hog producers intend to have 2.87 million sows farrow during the September-November 2011 quarter, down slightly from the actual farrowings during the same period in 2010, and down 1 percent from 2009. Intended farrowings for December-February 2012, at 2.86 million sows, are up slightly from 2011, but down 1 percent from 2010.

The total number of hogs under contract owned by operations with over 5,000 head, but raised by contractees, accounted for 46 percent of the total United States hog inventory, up from 43 percent last year.



IBACH REMINDS PRODUCERS OF IMPORT REQUIREMENTS; NDA STEPS UP ENFORCEMENT

Agriculture Director Greg Ibach is encouraging beef cattle producers to be certain they are following the state’s import requirements, as the Nebraska Department of Agriculture (NDA) continues its enforcement efforts related to cattle moving into Nebraska from other states.

“Because of the Southern drought, Nebraska continues to receive high numbers of cattle from other states,” Ibach said.  “For the protection of all Nebraska beef producers, those animals must come here with the appropriate testing and paperwork completed.”

Ibach said NDA officials continue to review animal health certificates and now have started quarantining herds that are found to be in violation of the state’s cattle import requirements.  All animals entering the state must have a health certificate, and producers especially need to be aware of the import requirements for trichomoniasis, a cattle disease that causes infertility and occasional abortions in cows and heifers.  NDA issued an order outlining trichomoniasis import restrictions in 2008.

“We recognize that Nebraska producers want to help our southern neighbors and have the opportunity to make positive business moves at the same time,” Ibach said.  “We welcome these animals into our state, as long as they meet importation requirements.”

Producers who are considering moving cattle from another state into Nebraska are urged to contact the NDA State Veterinarian’s staff for more information about specific import requirements. Staff can be reached by calling 800-572-2437.  Import regulations and orders also can be reviewed on-line by visiting www.agr.ne.gov and looking under the Animal and Plant Health Protection focus area.



Pilger Woman Elected Head of PrairieLand RC&D

A Pilger, Neb., woman has been elected president of the PrairieLand Resource Conservation and Development (RC&D) Council during its recent annual meeting and banquet at Klub 81 near Humphrey.

Elected to serve as president is Kimberly Neiman who represents the village of Pilger on the six-county, grassroots council. Other elections results include Vice President Juan Sandoval of the Center for Rural Affairs - Rural Enterprise Assistance Project (REAP); and Treasurer Darol Ellwanger of Rural Norfolk.

The PrairieLand RC&D Council serves the communites of Boone, Colfax, Madison, Nance, Platte and Stanton counties.  The next PrairieLand RC&D meeting will be held on Oct. 18. The public is invited and welcome to attend. Please contact the office at 402-454-2026 or info@prairielandrcd.org for more inforamtion.



NYBLS coming in November

High school juniors and seniors will learn about careers in the beef industry at the 9th Annual Nebraska Youth Beef Leadership Symposium November 19 - 21.  During the symposium students will learn about goal setting, leadership while interacting with univeristy and industry leaders.  UNL Researcher Dr. Karla Jenkins says one of group activities involves marketing and entrepreneurship...  (click links below to hear audio)

Jenkins_NYBLS2   :16  

Dr. Jenkins says participants will also be exposed to future careers in beef industry...

Jenkins_NYBLS1   :23  Q.   in the industry.

Symposium Registration is $30 if received by Monday, October 3rd.  After that date registration is $50.  Registration fee for the three day event includes all materials, meals and lodging.



FSA Provides Loans on Farm-Stored Grain

Dan Steinkruger, State Executive Director for the USDA’s Farm Service Agency, reminds producers of the interim financing provided by obtaining commodity loans with Commodity Credit Corporation (CCC) for eligible harvested production.  The CCC nine month marketing assistance loan provides financing allowing producers to store production for later marketing.

The 2011 marketing assistance loans are available for producers who share in the risk of producing the eligible crop and maintain beneficial interest in the eligible crop through the duration of the loan.  Beneficial interest means retaining the ability to make decisions about the commodity, responsibility for loss or damage to the commodity and title to the commodity.  Once beneficial interest in a commodity is lost, the commodity is ineligible for loan, even if you regain beneficial interest.

For commodities to be eligible, they must have been produced by an eligible producer, be in existence, and in a storable condition.  Commodities harvested from ACRE and non-ACRE farms must be distinguished separately and placed under separate loans.  The county commodity loan rate will be reduced by 30 percent for the ACRE enrolled commodity quantities placed under loan.

The 2008 Farm Bill established national loan rates.  The county commodity loan rates are based on each commodity’s national loan rate and vary by county based on the average prices and production of the county where the commodity is stored.  The 2011 National Loan Rates are as follows:
 
Commodity    Production Unit    2010-2012       
Wheat           bushel                $2.94       
Corn             bushel                 $1.95       
Grain Sorghum bushel              $1.95       
Barley           bushel                $1.95       
Oats              bushel               $1.39       
Soybeans       bushel               $5.00    



Agriculture Secretary Vilsack Announces Major Investments to Spur Innovation and Job Creation in Research, Development and Production of Next Generation Biofuels
 
Agriculture Secretary Tom Vilsack announced five major agricultural research projects today aimed at developing regional, renewable energy markets, generating rural jobs, and decreasing America's dependence on foreign oil. Altogether, the five-year program will deliver more than $136 million in research and development grants to public and private sector partners in 22 states. University partners from the states of Washington, Louisiana, Tennessee, and Iowa will lead the projects, which focus in part on developing aviation biofuels from tall grasses, crop residues and forest resources. Vilsack made the announcement with partners from private industry, research institutions, and the biofuels industry at the Seattle-Tacoma International Airport.

"We have an incredible opportunity to create thousands of new jobs and drive economic development in rural communities across America by continuing to build the framework for a competitively-priced, American-made biofuels industry," said Vilsack. "Over the past two years, USDA has worked to help our nation develop a national biofuels economy that continues to help us out-innovate and out-compete the rest of the world while moving our nation toward a clean energy economy."

The grants announced by Vilsack in Seattle today came through USDA's National Institute of Food and Agriculture (NIFA). The projects will address needs across regional supply chains and will complement existing bioenergy efforts across government, academia, and the private sector. Summaries of the five projects follow:

-    A research team led by Iowa State University received $25 million to develop a regional biomass production system for advanced transportation fuels derived from native perennial grasses, such as switchgrass, big bluestem and Indian grass. The $25 million project will study the potential benefits of planting grasses with legumes to provide nutrients to land unsuitable for row crop production – adding value to marginal lands while reducing nitrogen runoff into waterways and increasing carbon sequestration. The team will also evaluate a co-product—bio-char—as a soil amendment to increase carbon sequestration.
-    A research team from the University of Washington received $40 million to focus on using sustainably grown woody energy crops to produce biogasoline and renewable aviation fuel. A consortium of eight organizations will work throughout the entire woody biomass supply chain to promote the financing, construction and operation of multiple biorefineries, while reaching out to landowners and land managers, as well as regional K-12 and college students and faculty, to foster workforce development opportunities across the supply chain.
-    A research team led by Washington State University received $40 million to convert closed timber mills into bioenergy development centers, improving the economic potential of rural communities affected by the downturn in timber production. The team will focus on feedstock development, sustainable forest production and establishing new methods to identify the most promising plant lines for biofuel conversion. The project aims to develop a regional source of renewable aviation fuel for Seattle-Tacoma International Airport.
-    A team of researchers led by Louisiana State University received $17.2 million to enable the regular production of biomass for economically viable conversion using existing refinery infrastructure. Through new and existing industrial partnerships, this project will use energy cane and sorghum to help reinvigorate the Louisiana sugar and chemical industries.
-    A team of scientists led by the University of Tennessee received $15 million to develop sustainable feedstock production systems (switchgrass and woody biomass) that will produce low-cost, easily converted sugars for biochemical conversion to butanol, lignin byproducts and forest and mill residues, and dedicated energy crop feedstocks to produce diesel, heat and power.

USDA made these awards through its Agriculture and Food Research Initiative (AFRI). AFRI's sustainable bioenergy challenge area targets the development of regional systems for the sustainable production of bioenergy and biobased products that contribute significantly to reducing dependence on foreign oil; have net positive social, environmental, and rural economic impacts; and are compatible with existing agricultural systems. All grants are awarded over a period of five years, with continued funding contingent on annual project success.

AFRI is NIFA's flagship competitive grant program and was established under the 2008 Farm Bill. AFRI supports work in six priority areas: plant health and production and plant products; animal health and production and animal products; food safety, nutrition and health; renewable energy, natural resources and environment; agriculture systems and technology; and agriculture economics and rural communities.

Vilsack also highlighted how USDA is working with federal partners like the Department of Energy (DOE), Department of the Navy and the Federal Aviation Administration to improve our country's energy security and provide sustainable jobs in communities across the country. Last month, President Obama announced a partnership between USDA, DOE and Navy to invest up to $510 million during the next three years in partnership with the private sector to produce advanced, drop-in aviation and marine biofuels to power military and commercial transportation.

Renewable energy production is a key to sustainable economic development in rural America, and USDA through renewable energy programs authorized in the 2008 Farm Bill is working to escalate the production of biofuels to meet the 2022 Federal Renewable Fuels standard goal. Much of this biofuel will come from feedstocks produced by America's farmers and ranchers. For example, yesterday, USDA announced the investment of $80 million payments to 160 energy producers in 41 states under the Bioenergy Program for Advanced Biofuels (Section 9005 of the 2008 Farm Bill). Payments are based on the amount of biofuels a recipient produces from renewable biomass, other than corn kernel starch. Eligible examples include biofuels derived from cellulose, crop residue, animal, food and yard waste material, biogas (landfill and sewage waste treatment gas), vegetable oil and animal fat. The payments are made to eligible producers to support and ensure an expanding production of advanced biofuels.

The Obama Administration has made domestic production of renewable energy a national priority because it will create jobs, reduce dependence on foreign oil, combat global warming, and lay a strong foundation for a strong 21st Century rural economy. At Secretary Vilsack's direction, USDA continues working to revitalize the rural economy to create opportunity for future growth and prosperity through a strategic approach to rural revitalization, including biofuels. To advance the national biofuels industry, USDA is investing in innovative technologies, supporting landowners and businesses taking risks to pursue new energy opportunities, and supporting commercialization of biofuels.



Weekly ethanol production data for the week ending 9/23/2011.

According to the Energy Information Administration data, ethanol production averaged 841,000 barrels per day (b/d) – or 35.32 million gallons daily.  That is down 30,000 b/d from the week before and the lowest output since the same week in September 2010.  The 4-week average for ethanol production stood at 872,000 b/d for an annualized rate of 13.4 billion gallons.

Stocks of ethanol stood at 17.4 million barrels.

Gasoline demand for the week averaged 376.5 million gallons daily.  Expressed as a percentage of daily gasoline demand, daily ethanol production was 9.38%.

On the co-products side, ethanol producers were using 12.752 million bushels of corn to produce ethanol and 94,913 metric tons of livestock feed, 83,804 metric tons of which were distillers grains.  The rest is comprised of corn gluten feed and corn gluten meal.  Additionally, ethanol producers were providing 3.64 million pounds of corn oil daily.



Nutty PETA Marketing Exposes Skewed World View

(AP) -- People for the Ethical Treatment of Animals is planning to launch a pornographic website to promote its animal rights and vegan diet message, a move that critics say will backfire and ostracize them from mainstream society.

PETA spokeswoman Lindsay Rajt said in a telephone interview from Los Angeles on Tuesday that the group has applied with ICM Registry to launch the website peta.xxx.

Rajt says the site will feature "tantalizing" videos and photographs, which will lead viewers into animal rights messages. She noted that Norfolk-based PETA has used porn stars and nudity to get its message across in the past, including an annual speech online in which a PETA representative undresses. That video later shares a message about slaughterhouses.

She says a pornographic site will allow PETA to reach a broader audience and that publicity about the site is just as important.

"I think the bottom line is we live a in a 24-hour news cycle where over the years we've found our racier actions are kind of a fast track way to get people to stand up and pay attention about the plight of animals," she said.

Rajt says November is the earliest that PETA could receive approval for the site. Critics say that by resorting to pornography, PETA is alienating itself from a large swath of the population that might otherwise be sympathetic to its cause.

"I just don't want to understand why they want to offend people who would potentially support at least part of their cause. There have got to be other ways to draw attention to their cause," said Robert Peters, general counsel for the New York-based anti-pornography group Morality in Media. "Metaphorically speaking, they're getting in bed with hard core pornographers to prevent cruelty to animals. That borders on insanity."

Rajt said PETA officials would track the website to determine if people are viewing the animal rights messages and not just the nudity. Past experience has shown that they will, she said.

J. Justin Wilson, senior research analyst for the food-industry backed Center for Consumer Freedom, said moves like this by PETA make them increasingly irrelevant in mainstream society.

"They don't seem to be changing the debate anymore, I think in large part because people are writing them off as whack jobs," he said from Washington.

"This is one more example of them being their own worst enemy. If they're trying to win the hearts and minds of people considering being vegetarians, this is probably the wrong way to do it."



Canadians to Attempt to Set World Record for Combines in Field

One hundred combines will be gathering on a Perth County farm on September 30 to set a world record soybean harvest.  A group of farmers from Ontario have prepared a 160-acre field of soybeans with a goal of harvesting it in less than 10 minutes.

"Our goal is to gather as many combines as possible to harvest the field in a very short period of time," says Randy Drenth, one of the organizers.

The project, dubbed Harvest for Hunger, is a unique growing project that will raise money for the Canadian Foodgrains Bank. The use of the land, field work, seed, fertilizer, crop protection, fuel and crop scouting has been donated so that 100% of the proceeds from this harvest can be used to alleviate hunger around the world.  The group's goal is to raise $200,000 by auctioning the soybeans at the site right after the harvest.



Nebraska, Wisconsin to Square Off in Ice Cream Battle

Camp Randall Stadium isn't the only place in Madison this weekend that Nebraska will put up its best against Wisconsin's best.  The Babcock Hall Dairy Plant on the university campus will be the site of another epic battle.

Here's the scoop: It seems UW makes ice cream. Figures, right? The Dairy State and all. And, as Nebraskans know, the Dairy Store on UNL's East Campus serves up a pretty mean dish, or cone if you'd prefer.  So, the UNL Dairy Store is shipping some of its signature flavor -- Scarlet and Cream -- to Madison, where it will be served up next to Wisconsin's Berry Alvarez flavor. (Barry Alvarez is UW's athletic director and a former Husker, too.)

Bill Klein, Babcock Hall Dairy Plant manager, said plans are still uncertain, but he's likely to give store visitors a chance to taste each flavor and vote on their favorite.  Bryan Scherbarth, manager of UNL's Dairy Store, said next year's Wisconsin-NU game, in Lincoln, will feature a similar showdown.

Both Klein and Scherbarth declined to guarantee victory; not a lot of trash talking in the dairy business, apparently, as ice cream makers prefer to keep their cool. But since Babcock has homefield advantage, Berry Alvarez is likely a huge favorite, much like Wisconsin's football team.  "It's ice cream. It's all good," Klein said modestly.

Nebraska and Wisconsin aren't the only Big 10 schools with serious ice cream chops.  Scherbarth said Michigan State University's dairy produces a flavor of ice cream to honor each of its Big 10 rivals, and they're working one up for the conference's newest member. And it's likely NU and Penn State will have a similar ice cream competition when they play later this fall.

Klein said interest already is high for this weekend's ice-cream showdown. He's getting many calls from Madison-area media about the event  It's all part of a very intense interest in Saturday's game, he added.  "This is the best Badger team in my lifetime," Klein said. "We love the fact that we're playing Nebraska and that they're rated so high.  "This town is going to be on fire Saturday night," Klein added.

Good thing there'll be ice cream.

Are You Up for Carcass Challenge? Deadline Oct. 1

There's less than one week left to make a commitment to the Iowa Cattlemen's Association first Carcass Challenge. Reservations should be made by Oct. 1.

The Carcass Challenge is being spearheaded by members of the Young Cattlemen's Leadership Program. They've taken the project on in an effort to build more of their personal and professional relationships in ICA, as well as to create educational opportunities, and just have some fun. After all, what good is a challenge without some competition?

Donors of the top three steers in the project will receive cash prizes of $2000, $1500, and $1000. Not only will those top donors claim prize money, they'll also claim bragging rights, too! YCLP members that are the top recruiters will also receive some recognition.

Currently there are nearly 40 verbal and written commitments to the challenge. Checkout the general guidelines and reservation forms today.

Donors will receive regular communications about the progress of the steers, and will be invited to educational programming that will be held in conjunction with the activity.

This is the first time in more than 25 years that a statewide carcass contest for cattle producers will be held in Iowa. Dollars raised from the contest will be used to support ICA activities in leadership development, education and advocacy work.

For more information or questions, contact Kellie Carolan at Kellie@iabeef.org, or 515-296-2266.



USDA Quarterly Hogs and Pigs Report Preview

U.S. hog producers pocketed record high cash prices in the summer, but were cautious about expanding their herd as the price of corn also hit an all-time high, analysts said ahead of a government report.  Analysts polled by Reuters are expecting the U.S. Department of Agriculture's quarterly hogs and pigs report on Wednesday to show the hog herd as of Sept 1 at 100.5 percent of a year ago. In the March-May quarter, it expanded 1 percent.

"We have stopped cutting back and experienced modest growth because of record hog prices this summer which enhanced producer profits, while record-high corn prices slowed the rate of that expansion," said Ron Plain, a livestock economist with the University of Missouri.

Analysts expected the quarterly U.S. hogs and pigs report on Wednesday to show the U.S. hog herd as of Sept 1 at 66.3 million head, or 100.5 percent of a year earlier. Estimates ranged from 99.8 to 101.2 percent of a year ago.  The breeding herd was forecast, on average, to be 5.8 million, or 100.1 percent of a year ago, with estimates ranging from 99.6 to 100.5 percent.  And analysts predicted the market-ready hog supply at 60.5 million, or 100.5 percent of a year ago. Forecasts were from 99.8 to 101.3 percent of a year earlier.



Weekly Outlook: Soybean Production, Consumption Uncertain
Darrel Good, University of Illinois

Soybean prices, along with the prices of many commodities, have come under considerable pressure in the month of September. November 2011 futures reached a high of $14.65 on August 31 and traded to a low of $12.26 in the September 26 overnight session before settling at $12.50.

While the USDA's September production forecast exceeded the August forecast, the recent sharp price decline primarily reflects the continuation of poor economic performance and concerns about financial conditions in Europe and the U.S. The prospects for prolonged economic and financial problems raise serious concerns about commodity demand. The 15 percent decline in soybean prices in less than four weeks, however, raises the question of whether the price decline has been overdone. The price decline appears particularly large when compared to declines of 8 to 10 percent in livestock and livestock product prices from spring/summer highs. One might expect that demand concerns would result in larger price declines in the livestock sector than in the crop sector. It may have been that crop prices were pushed too high in August on the basis of crop concerns. Corn and wheat prices have declined by about 18 and 20 percent, respectively.

Whether soybean prices are now too low or not will largely be revealed in upcoming supply estimates and the ongoing rate of consumption. The USDA's estimate of September 1, 2011 stocks of old crop soybeans will be a small component of the available supply for the 2011-12 marketing year. That estimate will be released on September 30. Based on consumption forecasts, the USDA's World Agricultural Outlook Board has projected those stocks at 225 million bushels. The September stocks report has often deviated from expectations and on occasion has resulted in revisions of the previous year's production estimate. A large deviation would be required to substantially alter the supply outlook for the current year.

The bigger supply question is the size of the 2011 crop. The October forecast will be released on October 12. The USDA's September U.S. average yield forecast was 41.8 bushels, 0.4 bushel above the September forecast. From 1975 through 2010 (36 years) the September yield forecast exceeded the August forecast 17 times, as it did this year. In 10 of those 17 years, the October U.S. average yield forecast exceeded the September forecast. The increase ranged from 0.1 bushels to 2.3 bushels. In 8 of those 10 years, the January yield estimate exceeded the October forecast.

There is some tendency, then, for a yield increase in September to be followed by further increases. What about this year? Along with the normal uncertainty associated with the difficulty of forecasting soybean yields is the unknown yield impact of the hard frosts and freezes experienced in northern growing areas in mid-September. Crop condition ratings declined substantially in the Dakotas and in Minnesota following those events, but the net impact on the U.S. average yield potential is not known.

As mentioned last week in discussing corn production potential, additional uncertainty about the size of the soybean crop centers on the estimate of harvested acreage. That uncertainty primarily focuses on the Farm Service Agency (FSA) estimate of planted acreage for those producers participating in federal programs. That estimate is 1.375 million (1.8 percent) less than the current NASS estimate of planted acreage. That compares to a difference of 1.086 million (1.4 percent), in 2010 and 1.045 million (1.3 percent) in 2009. The larger difference suggests that the NASS estimate of planted acreage could be reduced by 340,000 to 350,000 acres in the October Crop Production report. The implications for the forecast of harvested acreage is not clear since other factors influence that forecast.

With new forecasts of marketing year soybean supplies soon available, the focus will turn to the pace of soybean consumption. Weekly USDA data will provide a steady flow of export information. Through July 2011, the Census Bureau provided monthly estimates of the size of the domestic soybean crush, along with estimates of soybean meal and oil production and stocks. However, in a budget cutting effort, the Census Bureau has terminated the collection of data for all of the Current Industrial Reports so this information will no longer be available. Some of those monthly estimates are provided by the National Oilseed Processors Association for its membership, but not all of the soybean crush capacity is represented by members of that Association. The lack of monthly information comes at a time of tight supplies when more information, not less, is needed. The lack of monthly Census data will result in more consumption uncertainty and will put more focus on the USDA's quarterly estimates of soybean stocks.



Agriculture Secretary Vilsack Announces Payments to Producers in 41 States to Expand the Production and Availability of Advanced Biofuels
 
Agriculture Secretary Tom Vilsack today announced that USDA will make payments to more than 160 energy producers in 41 states to support and ensure the production and expansion of advanced biofuels.

"Renewable energy production will create tens of thousands of direct, American jobs; thousands more indirect jobs, and clean electricity to power millions of homes. The payments I am announcing today represent the continuing commitment of the Obama administration to work with producers to provide the biofuel necessary to reduce our nation's dependence on foreign energy sources," Vilsack said. "The payments support America's growing advanced biofuel industry."

The payments are authorized under the Bioenergy Program for Advanced Biofuels (Section 9005 of the 2008 Farm Bill) and are made to eligible producers to support and ensure an expanding production of advanced biofuels. Payments are based on the amount of biofuels a recipient produces from renewable biomass, other than corn kernel starch. Eligible examples include biofuels derived from cellulose, crop residue, animal, food and yard waste material, biogas (landfill and sewage waste treatment gas), vegetable oil and animal fat.

Some of the funding was earmarked for comapnies in Nebraksa, Iowa, and South Dakota, including...
NE - Ag Processing, Inc.  $2,177,107.98  Biodiesel Trans Esterification
NE - Horizon Biofuels, Inc.  $1,843.66  Pellets
NE - Kaapa Ethanol, LLC.  $1,028.45  Ethanol Production
IA - Clinton County Bio Energy, LLC..  $6,046.08  Biofuel From Waste Products (Biodiesel)
IA - Iowa Renewable Energy, LLC.  $151,002.98  Biodiesel Trans Esterification
IA - Renewable Energy Group, Inc.  $6,174,285.19  Biodiesel Trans Esterification
IA - Sioux Biochemical, Inc.  $24,110.12  Biodiesel Trans Esterification
IA - Western Dubuque Biodiesel, LLC.  $456,363.79  Biodiesel Trans Esterification
IA - Western Iowa Energy  $698,622.94  Biodiesel Trans Esterification
SD - Hanson County Oil Producers, LLC.  $6,437.65  Biodiesel Trans Esterification
SD - Nugen Energy, LLC.  $71,191.13  Ethanol Production



Judge Denies Injunction in Syngenta Suit Against Bunge Over Biotech Corn

A federal judge has sided with Bunge Ltd. in its refusal to buy corn containing one of Syngenta AG's biotech traits, denying a preliminary injunction sought by the Swiss seed maker, according to a ruling filed this week.

Syngenta sued Bunge last month in U.S. District Court for Northern Iowa, claiming a decision by the grain merchandiser not to accept corn grown with the Agrisure Viptera seed was arbitrary and harmed Syngenta's reputation. The seed has been approved for import into several key markets, but not China.

Federal Judge Mark W. Bennett denied Syngenta's request for the preliminary injunction, writing that, while the seed maker does "face a substantial threat of reputational harm," it isn't clear Bunge is to blame.

"Bunge's decision to reject Viptera corn at all of its locations was a legitimate and reasonable business decision," Bennett wrote in a decision dated Monday.

The judge also said in his decision that "Syngenta has no likelihood of success on the merits of its claims."

Syngenta in a statement said the lawsuit is only part of its efforts to "secure greater clarity" for farmers who use new seed technologies, and its determination on that issue remains unchanged.

Bunge in a statement said it is pleased with the ruling and expects the court to eventually reject Syngenta's suit outright.



CWT Assists with 6.8 Million Pounds of Cheese Export Sales
 
Cooperatives Working Together (CWT) has accepted 12 requests for export assistance from Darigold, Dairy Farmers of America and United Dairymen of Arizona to sell a total of 3,076 metric tons (6.781 million pounds) of Cheddar cheese and Monterey Jack cheese to customers in Asia, North Africa and the Middle East. The product will be delivered October 2011 through March 2012.
 
In 2011, CWT has assisted members in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 32,785 metric tons (72.3 million pounds) to 20 countries on four continents. That is the equivalent of 723 million pounds of milk, the annual production of 34,400 cows. Sales totaling 444 metric tons were cancelled in September.
 
Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by reducing inventories that overhang the market and depress cheese prices. 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.
 
CWT will pay export bonuses to the bidders only when delivery of the product is verified by the submission of the required documentation.



 
LAWFIRM, ANIMAL RIGHTS ORGANIZATION FILE ACTION AGAINST DAIRY INDUSTRY GROUPS
Class-action complaint alleges an industry-wide scheme to raise the price of milk by killing over 500,000 cows

Hagens Berman, on behalf of several dairy consumers, including Compassion Over Killing (COK) members, yesterday filed a class-action lawsuit on behalf of consumers alleging that various dairy companies and trade groups, including the National Milk Producers Federation, Dairy Farmers of America, Land O’Lakes, Inc. and Agri-Mark, Inc. combined to form Cooperatives Working Together (CWT) in order to fix the price of milk in the United States.

CWT is a trade group representing dairy producers throughout the country who produce nearly 70 percent of the milk consumed in the United States.

The lawsuit, filed in the United States District Court for the Northern District of California on Sept. 26, 2011, alleges that between 2003 and 2010, more than 500,000 cows were slaughtered under CWT’s dairy herd retirement program in a concerted effort to reduce the supply of milk and inflate its price nationally. According to the complaint, the increased price allowed CWT members to earn more than $9 billion in additional revenue.

The plaintiffs in the case are represented by leading class-action law firm Hagens Berman Sobol Shapiro, LLP. The case was initially researched and developed by Compassion Over Killing, a national animal protection organization.

“We believe this case serves two important causes,” said Steve Berman, managing partner of Hagens Berman. “A resolution to this case will protect consumers from artificially-inflated milk prices and also will prevent the unnecessary and shameful killing of tens of thousands of cows each year.”

“The dairy industry has consistently shown its lack of regard for animal welfare and the environment,” said Compassion Over Killing general counsel Cheryl Leahy. “Now it’s milking its own consumers by unlawfully jacking up prices. The dairy industry must be held accountable for these illegal profits.”

The complaint further alleges that the program, which paid smaller farm owners to kill their entire dairy cow herds, unfairly increased the profits of agribusiness giants.

Dairy herd retirement ended in the summer of 2010, but CWT’s tactics may affect the price of milk for years, according to the lawsuit. The end of the program came shortly after Land O’Lakes agreed to pay $25 million to settle a class-action lawsuit filed against the United Egg Producers and its members. That case alleged that egg producers were encouraged to reduce their flock size as part of a program disguised as an animal welfare initiative.

About Compassion Over Killing
Compassion Over Killing (COK) is a nonprofit animal protection organization based in Los Angeles and Washington, D.C. Since 1995, COK has worked to end the abuse of animals in agriculture through undercover investigations, public outreach, litigation, and other advocacy programs.



Statement from CWT on New Litigation
Jim Tillison, Chief Operating Office of Cooperatives Working Together
 
“Cooperatives Working Together was created in 2003 as a self-help initiative to assist family dairy farmers and members of dairy cooperatives who were losing money producing milk. The program was designed and has always been operated in a manner fully consistent with the anti-trust laws of the United States. The lawsuit filed yesterday in California at the instigation of a west coast animal rights group is without merit. National Milk Producers Federation will vigorously defend its actions and those of its member cooperatives and their producers in this lawsuit and expect that those actions will ultimately be vindicated.”



Fertilizer Prices Remain Steady

Retail fertilizer prices continue to show little movement, according to data tracked by DTN for the third week of September 2011. The pause in price hikes has lasted for over a month now.  All eight of the major fertilizers were higher compared to the third week of August, but only one fertilizer rose by any significance. Urea was up 5% from a month ago. The nitrogen fertilizer had an average price of $614 per ton.

The other seven fertilizers were up just slightly compared to a month earlier. DAP had an average price of $703/ton, MAP $735/ton, potash $645/ton, 10-34-0 $803/ton, anhydrous $816/ton, UAN28 $406/ton and UAN32 $458/ton.

All eight major fertilizers are now showing double-digit increases in price compared to one year earlier. Leading the way higher is 10-34-0. The starter fertilizer has skyrocketed in recent months and is now 75% higher compared to the third week of September 2010.  Urea and UAN32 have both now climbed 43% in the last 12 months, UAN28 34%, and potash and anhydrous 33%. MAP climbed 25% higher while DAP jumped 21% higher compared to one year earlier.



Consumers Spent, Earned Less in 2010

Consumers earned less and spent less for a second straight year in 2010. The government report released Tuesday offered a deeper look at how Americans have adjusted their spending after the worst recession since the Great Depression.

People spent less last year on food, cut back on entertainment and eating out at restaurants and gave less to charity. At the same time, they paid more for gas and health care — trends that have continued this year.

Total spending by consumers fell 2 percent last year, according to the Labor Department's annual survey of consumer behavior. It's only the second decrease since the government began the survey in 1984. The first came in 2009.

Incomes declined 0.6 percent in 2010, after a 1.1 percent drop in 2009.

This year, consumer spending and income have increased only modestly. High unemployment, meager pay increases and a spike in gas prices have slowed both.

Weak consumer spending has held back the overall economy, which barely grew in the first half of the year. Consumer spending accounts for 70 percent of growth.

Economists had hoped a Social Security tax cut would boost spending this year. It gave most families an extra $1,000 to $2,000 in take-home pay. However, that gain was offset by a sharp spike in global oil prices, which drove gasoline prices higher beginning in January.

The average price for a gallon of gas peaked in early May at nearly $4 — almost a dollar more than the price per gallon at the beginning of the year.

Prices have come down a little since then but are still high. On Tuesday, the average price per gallon was $3.48, according to AAA.

A separate report Tuesday showed that the cost of employer-sponsored health insurance surged this year. Annual premiums for family coverage climbed 9 percent and surpassed $15,000 for the first time, according to the report released by the Kaiser Family Foundation and the Health Research and Education Trust. The 2010 increase for family coverage had been 3 percent.

Average household income before taxes fell to $62,481 in 2010, according to the report. That's down from $62,857 in 2009 and $63,563 in 2008.

Average annual expenditures dropped to $48,109. The average American household spent $49,067 in 2009 and $50,486 in 2008.



Road Safety: A Shared Responsibility

Getting harvest from the field to market can be dangerous work, but doing it in traffic on Iowa's highways and county roads extends the hazards to other drivers and their passengers. Conditions creating additional risks on Iowa roadways during harvest are drivers who don't understand how to avoid collision with agricultural equipment, those who are driving distracted and heavier than normal traffic on rural highways due to flooding and construction detours.

Charles Schwab, Iowa State University Extension farm safety specialist, says highway safety is a shared responsibility for both the motor vehicle operators and agricultural equipment operators. Both have reasons and rights to be on those roads.

Agricultural equipment operators need to remember that vehicle drivers, especially those rerouted to rural highways, may not have the necessary understanding to avoid collision with agricultural equipment: how to approach a slow moving vehicle (SMV), left turns of equipment and how to pass oversized equipment and unique shapes of combines. Schwab reminds operators of agricultural equipment to make sure all SMV emblems are properly mounted, not faded, and to always signal before making turns.

"Motorists may be unfamiliar with the outlines of farm equipment, especially at dusk when operators are returning from fields or moving between fields. Unfamiliarity can cause a split-second delay in reaction that, in many cases, can lead to a collision," he says.

Schwab says proper lighting and marking for farm vehicles is only half of the solution. Motor vehicle drivers also must be attentive, watch for farm traffic and heed the signs especially in the weeks ahead.

"Motor vehicle operators need to be patient, show understanding and not drive distracted -- rushing and not paying attention to the road causes opportunities for collisions," he warned. "It is important to understand the issue about coming upon a SMV when traveling at a high rate of speed."

Schwab offers these defensive-driving tips for rural roads this fall:
-- As soon as you see a slow-moving vehicle (SMV) emblem, brake as if you were approaching a stop sign.
-- Look for hand or turn signals from the farm vehicle operator, indicating a left turn.
-- When passing, make sure you can see the farm vehicle in your rearview mirror before you get back in your lane.

While farm tractors and other farm equipment comprise a small percent of total motor vehicles nationally, the percentage of fatal motor vehicle collisions involving farm equipment is almost five times higher than other vehicle collisions. In crashes involving farm vehicles, the farm vehicle operator was killed nearly twice as often as an occupant of the other motor vehicle.

The most likely types of collisions are left-turn and rear-end collisions. The left-turn collision happens when the farm vehicle is about to make a wide left turn and the vehicle behind begins to pass. The second most common incident is the rear-end collision, where another vehicle approaches farm equipment and is unable to slow down to avoid a collision. This happens because of large difference in travel speeds of these two types of vehicles.

"Vehicle drivers must stay alert, especially in areas where rural roadways are experiencing heavier than normal traffic due to flooding and construction detours," Schwab cautioned. "Higher speeds used on rural roads, changeable conditions and a variety of traffic all contribute to injuries. Motorists must stay attentive and watch for farm traffic, which can be difficult to spot, recognizing it travels at much slower speeds than normal traffic."

Schwab also reminds vehicle drivers that agricultural equipment operators in these areas will be limited in their ability to use the shoulder as they move down the road, since shoulder conditions could have changed considerably this summer because of flooding (washed away, weak or steeper than before).

Weather Promotes Harvest in Nebraska
Grain Moisture Limiting Factor

Agricultural  Summary:  
For  the  week  ending  September 25, 2011, dry weather allowed for harvesting to pick up momentum, but  progress was  limited due  to  high grain  moisture  levels,  according  to  USDA’s  National Agricultural  Statistics  Service,  Nebraska  Field  Office.   Frost  was  recorded  in  portions  of  Nebraska,  however,  a statewide  hard  freeze  has  yet  to  occur.    Harvest  of  corn silage,  high  moisture  corn,  and  seed  corn  were  winding down.   Dry  bean  harvest was  near  the  halfway  point  and sugarbeet harvest has begun in the west.  About one quarter of the winter wheat crop has emerged.
 
Weather  Summary:    
Temperatures  for  the  week averaged 4  to 8 degrees below normal  for  the eastern half of  the  state  and  from  near  normal  to  4  degrees  below normal  for  the western  half.   Highs were  in  the  80’s  and lows were in the 30’s.  Very little rain fell during the week.  The  South  East  District  had  the  highest  accumulation  of near one  tenth of an  inch of precipitation.   The  rest of  the state was mostly dry.                 
Topsoil Moisture:  Very Short - 7%, Short - 28%, Adequate - 65%,  Surplus -  0%
Subsoil Moisture:  Very Short - 4%,  Short - 27%,  Adequate - 68,  Surplus - 1%   
Average Rainfall Since April 1:  NE - 20.87 inches, +9%;  EC - 24.01 inches, +17%;  SE - 21.04 inches, -2%.     
GDD since April 15 (normal):  Concord 2676 (3079);  West Point 2796 (3168);  Mead 2966 (3254).   

Field  Crops  Report:  
Corn  condition  rated  2  percent very poor, 5 poor, 17 fair, 55 good, and 21 excellent, below 81 percent good to excellent last year but near 75 average.  Irrigated corn conditions rated 79 percent good to excellent and  dryland  corn  rated  69.   Corn mature was  52  percent, well behind 74 last year and 57 average.  Corn harvest was at 6 percent, behind 9 last year but equal to average.   
 
Soybean  condition  rated  1  percent  very  poor,  3  poor,  17  fair, 57 good, and 22 excellent, above 76 percent good to  excellent  last  year  and  74  average.   Soybeans  turning color  was  92  percent,  behind  94  last  year  and  average.  Soybeans  dropping  leaves  was  47  percent,  well  behind  76  last  year  and  67  average.   Soybean  harvest  was  just underway.   
 
Winter Wheat seeded was 66 percent, equal to last year but ahead  of  63  average.   Wheat  emerged  was  27  percent, ahead of 22 last year and near 26 average.  
 
Sorghum  conditions  rated  1  percent  very  poor,  3  poor,  19 fair, 58 good, and 19 excellent, above last year’s good to excellent  rating  of  72  percent  and  average.    Sorghum turning color was 95 percent, equal to last year but ahead of 93  average.   Sorghum  mature  was  34  percent,  behind  41  last year and near 35 average.  Sorghum harvested was  2 percent, equal to last year and average.  
 
Alfalfa rated 0 percent very poor, 3 poor, 23 fair, 63 good, and  11  excellent,  below  78  percent  good  to  excellent  last year.  The fourth cutting of alfalfa was at 82 percent, ahead of 75 last year and 68 average.
 
Livestock, Pasture and Range Report:  
Pasture and range conditions rated 1 percent very poor, 6 poor, 22 fair, 61 good, and 10 excellent, below last year’s 83 percent good to excellent but above 59 average.



USDA Weekly Crop Progress

Soybean harvest has begun with USDA reporting 5% of the nation's crop was in the bin as of Sept. 25 on Monday's Weekly Crop Progress report. That compares to 15% last year and a five-year average of 11%.  Fifty-eight percent of the crop nationwide is dropping leaves, compared to 33% last week, 74% last year and 68% on average.

Corn harvest picked up a little, with 15% of the crop out of the field compared to 10% last week, 26% last year and a five year average of 16%. Sixty-three percent of the crop is mature, compared to 46% last week, 83% last year and 64% on average.

Twenty-six percent of the winter wheat has been planted, compared to 14% last week, 30% last year and a 35% average. Six percent of the crop has emerged, compared to 10% last year and a 10% average.  Click here to see the latest national progress numbers...  http://usda.mannlib.cornell.edu/usda/current/CropProg/CropProg-09-26-2011.txt.   



Standability Becomes a Worry in Iowa Corn
 
Although harvest of both corn and soybean crops is currently underway, cool and cloudy weather has slowed drying of the crops.  Flood gauges along  the Missouri  River  are  finally  dropping  below  flood  stage  and some  farmers with  flooded  acres  are  seeding  winter wheat  or  similar crops for winter cover and soil improvement.
 
There  were  6.2  days  suitable  for  fieldwork  statewide  during  the  past week.   Topsoil moisture  levels  rated 16 percent very  short, 34 percent short,  48 percent  adequate,  and  2 percent  surplus.    Subsoil  moisture rated 14 percent very  short, 34 percent  short, 51 percent adequate, and 1 percent surplus.   
 
Eighty percent of  the corn crop  is now mature, 5 days behind  last year but  6  days  ahead  of  normal.    Five percent  of  the  corn  crop  has  been harvested for grain or seed, behind 2010’s nine percent but equal to the five-year  average.    The  moisture  content  of  the  corn  left  to  harvest throughout  othe  State  dropped  2 percent  from  previous  week  to  an average of 27 percent, with  the corn currently being harvested  running 23 percent  moisture  content.    Reports  of  moderate  to  heavy  corn lodging declined from 18 to 14 percent as many farmers concentrate on harvesting damaged corn first.   Ear droppage remains a  larger problem than last year at this time, but only 7 percent of the crop is experiencing moderate  to  heavy  ear  droppage.    Corn  condition  stands  at  5 percent very  poor,  10 percent  poor,  29 percent  fair,  44 percent  good,  and 12 percent  excellent.    

Ninety-four percent  of  the  soybean  crop  has turned  color,  equal  to  both  last year  and  the  five-year  average.   Over half of Iowa’s soybean fields are dropping leaves, but development still lags 6 days behind  last year and normal.   Just 3 percent of  the soybean crop  has  been  harvested,  behind  last  year’s  7 percent  and  the  normal 8 percent.  Soybean lodging and shattering levels are nearly identical to last year at this time.  Soybean condition stands at 3 percent very poor, 8 percent  poor,  26 percent  fair,  48 percent  good  and  15 percent  excellent.    

Third  cutting  alfalfa  hay  harvest  advanced  to  96 percent complete, equal  to  last year’s pace but ahead of  the normal 94 percent. The  condition  of  the  hay  crop  is  reported  at  8 percent  very  poor, 18 percent  poor,  33 percent  fair,  34 percent  good,  and  7 percent excellent.

Pasture and range condition rated 12 percent very poor, 20 percent poor, 35 percent  fair, 28 percent good,  and 5 percent  excellent.       Livestock conditions continue to be excellent.
 


IOWA PRELIMINARY WEATHER SUMMARY
Provided by Harry Hillaker, State Climatologist
 
The past  reporting week began with mild weather with daytime  highs mostly in the 70’s along with a few 80’s on Monday (19th) and Tuesday (20th).      Keosauqua  reported  the  highest  temperature  reaching 84 degrees on Tuesday.   However, below normal temperatures were the rule  for  the  rest of  the week with highs mostly  in  the 60’s.     Freezing temperatures were reported in some areas from Thursday (22nd) through Sunday  (25th) with  the most widespread  cold  coming on Friday  (23rd) morning  when  temperatures  fell  to  28  degrees  at  Battle  Creek  and Sheldon.     Temperatures for  the week as a whole averaged 5.1 degrees below normal.   Dry weather prevailed for most of the week.   However, light  rain  showers  were  scattered  over much  of  the  state  on Monday night into Tuesday and over northeastern Iowa on both Wednesday and Thursday.   A few isolated thunderstorms were reported over the eastern one-quarter of  the  state on Saturday  (24th)  and Sunday  (25th).     There was no measurable rainfall across much of  southern Iowa while Volga in  Clayton  County  reported  the  most  rain  with  0.28  inch.      The statewide average precipitation was only 0.05 inch while normal for the week is 0.75 inch.   This was the seventh week of the past eight to bring less than normal rainfall.

Prepare Bins and Equipment for Harvest
Larry Howard, UNL Extension Educator, Cuming County

Grain harvested in Nebraska is essentially insect-free, but can become infested by storage insects from contaminated equipment such as combines and grain augers.  Here are some tips from the University of Nebraska Lincoln Extension, to clean and prepare bins and equipment before this year’s harvest:
-- Store sound, clean, dry grain. Screen out broken grains, trash and fines to increase the quality of the final storage product.
-- Clean all equipment. Stored grain insects can invade new grain from infested harvesting and handling equipment. Carefully remove all traces of old grain from combines, truck beds, grain carts, augers and other equipment used for harvesting, transporting and handling grain.
-- Clean grain bins thoroughly with a simple broom and a vacuum cleaner.    If you can tell what was stored or handled last season by looking at equipment, it’s not clean enough to prevent contamination of the new crop.
-- After empty bins have been thoroughly cleaned, a residual treatment such as silicon dioxide or butylcarbityl and pyrethrins may be applied to bin surfaces to protect incoming grain from insect infestation. Follow label instructions carefully. Fumigants such as chloropicrin, magnesium phosphide and methyl bromide may be used, but they are dangerous, restricted-use pesticides. Fumigation is best handled by commercial pesticide applicators who have been trained and certified.
-- Clear clutter and remove tall grass and weeds around grain bins to ensure the area is less attractive to insects and rodents. Clean up any spilled grain several weeks before harvest. Leave a 4-foot wide strip of bare gravel around the perimeter of storage bins.  

Besides clean up, it is important to maintain and repair bins, equipment and landscape around the bins. Proper system maintenance before harvest can prevent costly downtime.
-- Make sure that grain bins are rodent-proofed by plugging holes, sealing bins, caulking and making general repairs. If rats have tunneled under foundations, use baits or traps to catch and eliminate them.
-- Mice often nest in control boxes and they can strip insulation from wires for nest material. Their urine can also corrode electrical components. If rodent damage is found, clean and repair or replace damaged wiring, relays and other electrical equipment. Then, seal over knock-outs and other openings that may permit rodent entry.
-- Inspect wiring for fans and other electrical components in the bins for corrosion and cracked, frayed or broken insulation. Run wiring through waterproof, dust-tight conduit. Avoid kinking the conduit and make sure all connections are secure.
-- Check fans, heaters, transitions and ducts for corrosion and other damage. Remove any accumulated dust and dirt that may reduce operating efficiency.
-- Ensure travel lanes have enough rock or gravel to bear the weight of heavy trucks and grain carts.  

After cleaning and repairing bins and equipment, it is important to maintain the harvested grain to prevent insect infestations.
-- If buying old crop grain for storage with newly harvested grain, watch for insects in the incoming grain. If infested grain is purchased for livestock feed, store it away from the new crop and feed it as soon as possible.
-- Stored grain insects cannot live on extremely dry grain (grain moisture at less than 10 percent), while high grain moisture (more than 14 percent) favors insect reproduction. Insects are not very active below 50 degrees Fahrenheit, so manage the aeration system going to manipulate temperature and moisture.
-- Prevent condensation of moisture in the grain mass by slowly cooling the grain mass and gradually reducing the temperature gradient between the grain mass temperature and the outside (ambient) temperature.



State Fair Carcass Results

The Nebraska State Fair recently released the results for the livestock carcass contests according to UNL Extension Educator in Cuming County, Larry Howard.  In the Beef contest, Heath Schroeder of Howells placed 12th which was the Reserve Champion Crossbred Division III Steer in the live show.  He also received a purple ribbon.  

Cuming County 4-H exhibitor results were:

Beef
Purple: Heath Schroeder, Howells

Pork
Purple:  Blake Guenther, West Point
Blue:  Dalton Mohlfeld, Wisner; Nathan Groth, Beemer; Devon Dixon, Wisner; Tiffany Plagge, West Point
Red:  Blake Guenther, West Point; Logan Polenske, Wisner; Keeley Russman, Wisner; Jamie Plagge, West Point; Nathan Groth, Beemer
White:  Logan Polenske, Wisner; Kiley Guenther, West Point; Allison Guenther, West Point



Cuming County 4-H Members Participate at Ak-Sar-Ben

Cuming County 4-H members had another successful year at the 84th Annual Ak-Sar-Ben Youth Livestock exposition that was held September 17 & 18 at the Lancaster Event Center in Lincoln and September 22-25 at the CenturyLink Center in Omaha.  According to Larry Howard, UNL Extension Educator in Cuming County, there were thirty-four (34) 4-H members from Cuming County that participated.

In the Rabbit Show, Adrianna Meiergerd of West Point showed the Best of Breed in the Fancy-Dutch division while Emily Merchen of West Point showed the Best of Breed and the Best Opposite in the Fancy Netherland Dwarf division.  Evan Meiergerd of West Point exhibited the Reserve Best of Breed in the Dutch division.

In the Beef Division, Tyler Bennett of Beemer was the Champion Showman and placed 3rd in the live show and 7th overall in the Catch-A-Calf division.

The Cuming County Swine 4-H exhibition placed first and was named the Grand Champion Swine Herdsmanship county at this years Ak-Sar-Ben.



GDDs Behind, Expected to Catch up Some in Late September
Allen Dutcher, UNL Extension State Climatologist

September temperatures across the state have averaged 2-4 degrees below normal east of the Panhandle, with isolated pockets of 4-6 degrees below normal reported in central and eastern Nebraska.

Growing degree day (GDD) units for September are running 100-125 units behind normal through Sept. 20, but forecasts for the final 10 days of the month indicate that average temperatures will be 3-5 degrees above normal and cut these deficits by 30-50 units.

The primary factor influencing these colder than normal temperatures is a strong upper air trough that developed over the eastern U.S. Sept. 13-19. Frost and hard freeze conditions hit the eastern Dakotas, Minnesota, northern Iowa, northeast Nebraska, Wisconsin, and Michigan. Major damage to the soybean crop in Minnesota and north central Iowa has been reported, with initial loss estimates ranging from 25-110 million bushels.

Weather models are in strong agreement that an upper air ridge will dominate the central U.S. during the next 14 days and bring dry weather to the region. This should allow crops not recently impacted by freezing temperatures to reach full maturity. If this occurs, I would expect to see harvest activity across southern Nebraska to increase in intensity as the month draws to a close.

With La Nina conditions developing in the Equatorial Pacific region, current models are hinting at a repeat performance of the harvest weather experienced last fall. In other words, above normal temperatures and below normal precipitation are likely across Kansas, Oklahoma, and Texas. If the upper ridge remains into early October, below normal precipitation is likely for Nebraska, while areas across the eastern Corn Belt and Great Lakes could see above normal moisture.

90 Day Forecast: Above Normal Temperatures Likely
The official forecast for the October-December period from the Climate Prediction Center indicates below normal precipitation is likely across the southern Plains into the southwestern corner of Nebraska. A broad area of above normal temperatures is likely for the southern U.S., including the southern and central Plains, as well as areas of the central and eastern Corn Belt.

Normally in Nebraska 50% of the moisture for this three-month period occurs in October. If October comes in at less than 50% of normal moisture, November and December will need to average nearly double normal precipitation just to bring the three-month total back to normal. October is also a key month for building soil moisture profiles for next years’ growing season. Any moisture shortfalls will need to be made up in later months to reduce the likelihood that the severe drought conditions of the southern Plains don’t expand northward into Nebraska.

January-March Forecast
Long range forecasts for the January – March period indicate equal chances of above or below normal precipitation and temperatures for Nebraska, with below normal temperatures across the northern Plains dipping south to the northern Nebraska border region. To our south, above normal temperatures are projected for drought stressed Texas and Oklahoma. Precipitation is expected to be above normal across the Pacific Northwest and northern Rockies, which includes much of the upper North Platte basin.

If the Corn Belt does receive above normal moisture, spring planting delays could develop. This is not uncommon during a La Nina spring and will really depend on the length and strength of this event. History indicates that the second year of a La Nina is weaker than the first year and generally dissipates by late spring, but this is not guaranteed.

I expect that current drought areas from Iowa through Ohio will disappear by next April, while drought conditions may improve slightly across the southern Plains. However, it is likely that an extensive area of drought conditions will exist from Arizona east through Georgia by next April. If spring rains fail to materialize for Texas and Oklahoma, then rapid expansion into some portions of the primary Corn Belt would likely occur during the first half of next summer.



Cover Crops Field Day Sept. 28 at UNL's ARDC
Paul Jasa, UNL Extension Engineer

Cover crops will be the focus of a field day Wednesday, September 28 at UNL's Agricultural Research and Development Center near Mead. This free event will be from 1 to 5 p.m. with plenty of time for questions and answers and discussion.

The field day will showcase 33 cover crop plots and provide information on cover crop options that will help build and feed the soil system. Featured cover crops include grasses, legumes, forages, brassicas, cocktail mixes, and others. While these plots were drilled into wheat residue, cover cropping options after corn and soybean harvest also will be discussed.

Speakers will include UNL Extension and NRCS no-till specialists working with cover crops and several cover crop seed vendors who will share their experiences. Topics will include:
    Benefits of Cover Crops and Selecting Cover Crops
    Cover Crop Cocktails and Nitrogen
    Aerial Seeding Experiences
    Cover Crop Experiences and Recommendations
    Spring Seeded Cover Crops and Weed Control

Special thanks to Arrow Seed, Green Cover Seed, and Prairie States Seed for providing the seed for the plots. Door prizes will include cover crop seed so winners can try cover crops on their farms.  Visit http://ardc.unl.edu/direct.shtml for a map and directions to the ARDC.



Quarterly Hogs and Pigs Report Preview
Ron Plain, Universtiy of Missouri Livestock Economist

On September 28, USDA will release the results of their latest survey of the U.S. swine inventory. Hog producers enjoyed record hog prices this summer and I [Dr. Ron Plain, University of Missouri] fear it is causing some herd expansion. My estimates are that the breeding herd is 0.3% larger than a year ago; the market hog inventory is 1.3% larger; and the total herd is 1.2% larger than in September 2010. My estimates of the September 1 market hog inventory by weight groups are: 180 pounds and heavier 103.0%, 120-179 pounds 101.5%, 50-119 pounds 101.0%, and under 50 pounds 100.6% of a year earlier.

Slaughter of barrows and gilts during June-August was down 0.16% with a year earlier. USDA's June report implied summer slaughter would be up 1.6%. So, there is need for USDA to revise downward their June market hog inventory and their estimate of sows farrowed and pig crop during December-February.

In their last inventory report, USDA predicted that June-August farrowings would be down 2.6% and September-November farrowings would be 1.1% lower than a year earlier. I think summer farrowings actually were down only 1.5%. I'm forecasting fall farrowings to be down 1.0% and December-February farrowings down 0.5% compared to last winter. June-August sow slaughter was up 4.7%. Imports of Canadian sows for slaughter during this period were down 6.7%. Thus, net slaughter of U.S. sows was up 6.9% out of a sow herd that was 0.3% larger compared to 12 months earlier. This implies a reduction in the sow herd, assuming gilt retention held steady. Our data implies gilt retention was up this summer.

I believe pigs per litter were up 2.0% this summer. My estimate is the June-August pig crop was 100.5% of a year earlier. Feeder pig imports during June-August were 3.5% above last summer's level, so the light weight inventory should be up a tiny bit more than the pig crop.

My estimate of hogs in the 50-179 weight groups implies that daily hog slaughter during the fourth quarter will be roughly 1% to 1.5% above year-ago levels, if the inflow of slaughter hogs from Canada is close to year-earlier levels. I expect daily hog slaughter during the first quarter of 2012 to be 1.0% higher than the number slaughtered in January-March 2011. I expect live hog prices to average close to $62/cwt ($82/cwt carcass) in the fourth quarter of 2011 and $64/cwt ($84/cwt carcass) in the first quarter of 2012. The futures market is more optimistic.



American Soybean Scholarship Applications Now Online

Applications for the American Soybean Association's 2012-13 SOY Scholarship is now available online. Any current high school senior who plans to pursue a degree in agriculture at any accredited college or university, can apply for this $5,000 scholarship.  Program coordinators say there are no specific academic and membership requirements to apply.  The winner will be chosen at the December 2011 ASA Board meeting, and the official announcement will be made during Commodity Classic in Nashville, Tennessee in early March 2012.  The scholarship is made possible through a grant from BASF Corporation.  View a complete list of requirements at www.soygrowers.com/soy/scholarship.htm.



USDA: Food Inflation Expected to be Unchanged

The U.S. government boosted its 2011 price forecast for beef and eggs, but left its overall food-inflation forecast unchanged through next year. Beef prices will be up 8% to 9% in 2011, up from a previous forecast of 7% to 8%, the U.S. Department of Agriculture said in a monthly report Friday.

Beef prices have soared to record highs this year thanks in part to strong export demand. Meanwhile, supplies are expected to tighten as ranchers liquidate their herds due to a severe drought in the southern Plains that has caused pastureland to wither.

The USDA also increased its overall meat price projection for 2011, to 6.5% to 7.5%. It increased projected hikes in egg prices to 5% to 6%, noting that the inventory of hens decreased during five of the first seven months this year.

Overall food inflation was left unchanged, however, at 3% to 4% this year and 2.5% to 3.5% in 2012.

Commodity prices, which have driven the price hikes for consumers this year, have fallen sharply during the past month amid worries about the global economy. Prices for many commodities, ranging from corn to cattle, remain historically high, however.



USMEF Releases Livestock ID/Traceability Economic Assessment

A study assessing the impact of traceability and animal identification programs on the international market for red meat has been released by the U.S. Meat Export Federation (USMEF).

Conducted by researchers at Kansas State University, Colorado State University and Montana State University, the study assesses the potential impact on U.S. producers and processors of evolving thinking about animal ID and traceability in leading export markets and traceability systems that have already been put in place by other major beef and pork exporting countries.

The study – “Economic Assessment of Evolving Red Meat Export Market Access Requirements for Traceability of Livestock and Meat” – points out that the United States and India are the only two major beef exporters that do not already have mandatory traceability systems. Argentina, Brazil, Australia, New Zealand, Canada and Uruguay all have animal identification/traceability programs in place.

In addition to the traceability systems of exporting nations, the report, which was commissioned by USMEF on a contract awarded based on a request for proposal, provides an analysis of the domestic cattle traceability systems employed by selected major importers of U.S. beef. Of special note, Japan and Korea, among the highest value markets for U.S. red meat exports, have adopted mandatory traceability programs which could eventually lead to similar requirements being applied to imports.

Finally, the report compares the sanitary and phytosanitary restrictions imposed on the major beef exporters by the top importing countries. For some exporting nations, such as Australia and New Zealand, there are no restrictions imposed by trading partners. Brazil and Argentina face FMD (foot and mouth disease)-related restrictions and traceability systems are critical for exports from these South American countries which are not entirely free of FMD.

The United States faces BSE-related product and age restrictions from a number of major importing countries (Japan, South Korea, Taiwan, Hong Kong, Russia and Mexico) as well as restrictions from the European Union based on hormone use. In addition, China’s beef market remains closed to imports from the United States due to BSE-related restrictions.

The report notes that competing beef exporting nations are using their industries’ mandatory traceability systems as marketing tools to enhance their sales and as a point of differentiation with the U.S. industry.

While market access and producer profitability have been important factors in exporting countries’ decisions to establish traceability systems, the report concludes that animal health management and food safety are the primary drivers behind most countries’ decisions to build animal ID and traceability into the regulatory frameworks for their livestock industries. Improved supply chain coordination and enhanced producer management opportunities are secondary motivators.

“The most widely recognized international animal health, food safety, and trade organizations have endorsed animal ID programs as essential components of food animal production and meat product trade. In response, major beef exporters and importers have developed mandatory animal ID and traceability systems,” the report states. “As more countries adopt animal and meat tracking systems, those early adopters of livestock and meat traceability systems have the opportunity to gain significant market advantages through increased consumer confidence.

“Countries with well-developed mandatory animal identification and traceability programs enjoy comparative advantages in red meat exports relative to countries without such systems,” the researchers add. “They are better positioned to respond quickly to crisis situations and mitigate potential damages.”

The value of the research report was emphasized by Leann Saunders, president of IMI Global, a member of USMEF’s executive committee and chairperson of the USMEF working group on traceability.

“When you first consider the value of the export market to U.S. cattle and hog producers, with export value this July equating to $236.88 per head of fed cattle harvested and $59.35 per head for hogs – there is no denying the importance of exports for U.S. producers,” said Saunders. “As we have seen in the beef industry engaged in voluntary USDA PVP and QSA verification programs for countries like Japan and the EU – countries that have export verification requirements specific to animal identification and traceability – it can work effectively. Since we are currently exporting about 16 percent of total U.S. beef and variety meat production and 29 percent of pork, traceability is a form of insurance that would insulate American producers in the event that importing countries change their import requirements or in the event of an animal disease outbreak.”



NCGA Applauds Brown-Thune-Durbin-Lugar Proposal to Strengthen Farm Safety Net

The National Corn Growers Association today applauded the bipartisan work of Sens. Sherrod Brown (D-OH), John Thune (R-SD), Dick Durbin (D-IL) and Dick Lugar (R-IN) to introduce legislation that will create the Aggregate Risk and Revenue Management (ARRM) Program.   The bill is designed to simplify, consolidate and streamline existing commodity programs that were authorized as part of the 2008 farm bill.

“We greatly appreciate the senators’ work to introduce legislation that will provide a more effective and responsive safety net for America’s farmers,” NCGA President Bart Schott said. “This legislation addresses several concerns raised by farmers regarding the Average Crop Revenue Election (ACRE) Program, including overly complicated procedures and delayed payments when losses are experienced.  We also understand everyone must do their part to help our nation with its difficult financial situation, and we are pleased to see a bill introduced that takes responsible steps to help meet this challenge.”

The proposed legislation will eliminate the direct and counter-cyclical payment programs.  Unlike the ACRE Program, ARRM will be an annual election program with calculations to be based on planted acres.  Program guarantees will also be based on a five-year Olympic average revenue from a Crop Reporting District instead of on a state-by-state basis.  According to the Congressional Budget Office, ARRM also would result in substantial budget savings.

“While crop insurance is still the number one risk management tool for farmers, an effective, efficient revenue-based risk management tool that addresses gaps not covered by crop insurance is vitally important,” Schott said.  “We feel the proposed legislation adopts the right kind of market-oriented approach in providing assistance when most needed by producers.   We look forward to working with the senators as they continue their work with the Senate Agriculture Committee on a farm safety net for today’s risk management needs.”



Ethanol Ameliorates Midwest Gas Prices by $1.37 per Gallon, Stops Big Oil From Skewering Consumers At The Pump

“A September 19th Progressive Farmer-DTN article citing three land-grant university officials or studies (University of Nebraska Center for Energy Sciences Research, South Dakota State University and Iowa State University) confirms the economic benefits of ethanol to U.S. consumers, taxpayers and cattle feeders,” said Gale Lush, Chairman of the American Corn Growers Foundation (ACGF).

Ethanol Benefits Consumers/Taxpayers by Ameliorating Gasoline Prices, Saving $112 Billion Annually
Lush noted that Ken Cassman, the director of the Nebraska Center for Energy Sciences Research at the University of Nebraska was quoted saying, “Regardless of our ability to increase production enough to cover projected demand, ethanol has been a huge financial benefit to U.S. consumers.” The article and Cassman cited a recent study by economists at Iowa State University that estimates the use of corn ethanol in gasoline has reduced the fuel’s price by as much as 80 cents per gallon (average nationally) in years like 2009 and 2010. Given gasoline usage in this country, “that’s $112 billion of annual savings to the consumer,” Cassman explains. “Total subsidies on ethanol, including subsidies on corn, are not more than $12 billion per year. That’s a 10-to-1 return to consumers. That’s huge,” Cassman added.

Higher Ethanol Yields Reported by USDA and South Dakota State University Study Shows Ethanol DDGs Beneficial to Cattle Feeders, Making the FOOD VS. FUEL Fight a Non Sequitur/Red Herring
Lush added that the Progressive Farmer-DTN article points out some extremely important economic information that goes largely unreported in the mainstream media and press. The article states, “Also significant is the increase in the efficiency with which corn is processed into ethanol. The latest USDA study (released last fall) found that for every BTU (British Thermal Unit) used in the process, 2.3 BTUs are produced. That is up considerably from 1.76 BTUs in the previous study done in 2004. Additionally, the amount of corn “diverted” to ethanol from food production is essentially one-third less. That’s because an ethanol production by-product, dry distillers grains (DDGs), is a valuable high-protein cattle feed. As a result, about 23 percent of the U.S. corn production and 9 percent of total world grain production is actually being used to make fuel.”

South Dakota State University plant scientist Gregg Carlson reported that “In this country, top livestock producers are mixing DDGs with previously unused or under-used crop residue. As a result, the animals are getting the same, or even more crude protein and total digestible nutrients, than there was in the corn alone. In other words there is no loss of feed, and the feed vs. fuel argument becomes irrelevant.”

“With all the consumer/taxpayer, economic, feed, energy security and job creating benefits now confirmed from corn ethanol production Congress should extend the Volumetric Ethanol Excise Tax Credit (VEETC),” said Lush. “Congress should be using the 400,000 jobs supported by the ethanol industry, along with the great return to taxpayers, as a case study in efficient government subsidies. Congress should immediately extend VEETC, not look for ways to kill it and other key incentives like the Renewable Fuels Standards (RFS).”



Tractor Repair, Restoration Business Earns Entrepreneur Award

Gary Hoefling turned his passion for tractor mechanics into a thriving business and earned the Iowa Farm Bureau Federation's (IFBF) Renew Rural Iowa Entrepreneur of the Month award. As owner of The Motor Works and G.H. Repair in Spencer, Hoefling specializes in repairing and rebuilding John Deere tractors. He not only refurbishes the outside of the 30 and 40 series John Deere tractors, but produces parts (carburetors, in particular) and produces and sells them in the United States and around the world to customers in France, Germany and South Africa.

His attraction to tractors started at a young age on the family's farm. "I wanted to be the mechanic on the farm," explains Hoefling. In the last decade, he and his staff of five full-time and three part-time employees have repaired 10,000 tractor carburetors.

The Motor Works and G.H. Repair were started in 1993. The Motor Works was started as part of a northwest Iowa John Deere dealership, specializing in complete drop-in replacement and repowering for engines. In 2002, The Motor Works was acquired by G.H. Repair and moved to Spencer.

Today, Hoefling isn't simply fixing the green machines, but helping them be more "green," or environmentally friendly. He's making the machines use gasoline more efficiently by making them compatible with ethanol. His business strives to be greener, as well, using rain gardens, geothermal heating and cooling, permeable pavement and natural grasses and prairie areas.

The Clay County Farm Bureau nominated Hoefling's business for the award. County president Barry Anderson praises Hoefling for his contribution to the community's economy. "This business is huge for our rural area, as well as cities surrounding us," says Anderson.

Renew Rural Iowa (RRI) is an IFBF initiative supporting new and existing businesses through education, mentoring and financial resources. Registration is open for the Nov. 2 "Business Success" seminar, featuring Curt Nelson, president of the Entrepreneurial Development Center. The seminar will be held at the Iowa Farm Bureau in West Des Moines. To register, go to www.renewruraliowa.com.