U.S. Has Opportunity to Sell Top End Beef

Growing volumes of U.S. beef are anticipated to begin arriving in the European Union following agreement for a duty-free, high-quality beef quota. An expert with the U.S. Meat Export Federation says a lack of grain-fed beef in the market makes for a big opportunity. Thad Lively, senior vice president of policy, planning and research for USMEF, says the quota might not necessarily mean massive volumes but it does open the door to the highest value end of the market.

The EU has realized it will be a beef importer rather than exporter so it is looking to diversify its sourcing beyond South American suppliers. Under these circumstances, this spring Washington worked out a deal whereby the EU's 20 percent tariff is eliminated. As a result, Lively says - he expects that within the next three to five years, the United States will be sending as much as 70-thousand metric tons of beef annually to the EU at prices that are - probably twice the average level of prices in the rest of the export markets.

Lively says - I think the fact that we're talking about occupying the very top end of the market makes our product and the idea of importing from the U.S. a lot less threatening to European producers. He adds, - if we were trying to ship a product over there that was going to compete directly with European beef, which is what Brazil, for example, is doing, then clearly European producers start to feel as if they're going to have trouble competing against this inexpensive meat from Brazil. We don't have that problem, because by occupying this niche at top of market, if anything we're going to pull prices up instead of pulling them down.

Snowmass Raises the Nutritional Bar

A new high-yielding variety of hard white winter wheat that has shown high yields and overall disease resistance in Colorado has been released to the Colorado Wheat Research Foundation. Snowmass has demonstrated such superior mixing and baking quality characteristics that it was accepted into the CWRF Ultragrain Premium Program with ConAgra Mills.

This program will pay producers a premium of 30 cents per bushel over the market price for the 2010 crop, plus a protein premium of up to 40 cents based on the protein content of the wheat.

Snowmass wheat will be used to make Ultragrain flour, a100 percent whole wheat flour that combines the nutrition and benefits of whole grains with the finished recipe qualities of refined flour. ConAgra Mills’ John Bartels says - Ultragrain flour is transforming the grain based product industry - supporting the development and growth of new consumer products like whole wheat white bread.

Wheat breeder Scott Haley, professor in the Soil and Crop Sciences Department at CSU, says - in several years of field testing throughout eastern Colorado, the Snowmass wheat variety has shown exceptional yield under dryland conditions, and excellent disease resistance. Snowmass may be grown and sold only as a class of certified seed by Colorado Seed Growers Association members licensed by CWRF.

Report: Program Payment Belt Tightening Ahead

It’s been learned that USDA officials plan to use their regulatory authority to further tighten farmer eligibility for farm program payments. USDA is expected to make an official announcement as early as next month and give the public an opportunity to provide feedback. This move would deliver on one of President Barack Obama’s campaign pledges.

Groups representing growers of southern crops told Agri-Pulse the changes on tap for the 2010 crop year include a more objective definition of what it means to be "actively engaged" in farming as well as a tightening of the provision that allows spouses to be considered separate persons for payment limitation purposes.

New Web Site has Information on Ethanol

Growth Energy has announced the launch of a new online resource to help consumers learn more about the - tremendous benefits - of ethanol for America’s environment, economy and national security. The site includes answers to many frequently asked questions about the ethanol industry, as well as retail information.

Growth Energy CEO Tom Buis calls - DrivingEthanol.org - a one-stop shop to learn more about the remarkable benefits of high-tech, homegrown ethanol. Buis says, - ethanol is affordable and available now to grow our economy, green our environment and enhance our national security. Buis invites consumers and retailers to visit DrivingEthanol.org to learn more about the promise of ethanol.

The web site also contains helpful retail information such as E85 and blender pump locations, uses of ethanol and a listing of the Flex-Fuel Vehicle models on the market today. The site also provides valuable resources for prospective ethanol retailers including information on tax incentives, pump installation and conversion, as well as ethanol purchase.

Warning: Face Climate Change Now Not Later

An Iowa State University assessment of climate change legislation concludes that while cap-and-trade legislation - introduces uncertainty,- failing to act now could lead to even more uncertainty, more downside risk and - a much greater technological challenge. AgMRC co-director Don Hofstrand concludes with a pay-me-now or pay-me-more-later warning: - not developing greenhouse gas reduction technologies today will lead to the need for developing technologies to help us adapt to climate change in the future. Hofstrand believes - this will be a much greater technological challenge.

Hofstrand adds up the potential negative impacts that the House-passed Clean Energy and Security Act could have on U.S. farmers and ranchers due to higher energy prices. He finds - the overall impact on net farm income is expected to be relatively small . . . down about 1 percent in the next decade, decreasing by about 7 percent by mid-century. Hofstrand says - even the 7 percent drop may be an overestimate since farmers have a long track record of improving productivity.

On the plus side, Hofstrand sees farmers and ranchers earning substantial income from selling carbon offsets. He says no-till farming already gives farmers a way to store large amounts of carbon in the soil. As new technologies are developed, he sees far greater income opportunities from increasing soil carbon sequestration with charcoal, capturing ethanol plant emissions, developing new feedstocks for nitrogen fertilizer, and transforming livestock manure emissions from a greenhouse gas problem to a major energy source.

Update on Algae Research Reported

At the recent “Algae-to-Energy in the South” regional summit held in St. Louis, academic and industry experts from ten states reported on the wide range of algae based research underway around the country. Projects range from improving algae's ability to capture solar energy, to identifying best practices for removing oil from algae. Research touches on every aspect of algae and recognizes the vast opportunities for growth, improvement and eventually commercialization. The Center for Evergreen Energy, the St. Louis Regional Chamber and Growth Association and the Southern Growth Polices Board hosted the event.

One of the reports focused on the development of a non-destructive oil extraction process, sometimes referred to as "milking the algae," that is capable of continuously removing oil from living algal cultures. The program is considering what strains perform best and how the process may benefit production efficiency by removal of contaminants.

Dr. Richard Sayre, Director of the Enterprise Rent-A-Car Institute for Renewable Fuels, explained that oil based fuels, such as biodiesel, have many benefits. They boast twice the energy density of alcohol; oil producing plants have reduced impact on the environment; and algae based biodiesel can be produced on land not suitable for other uses and result in higher oil per acre than currently available.
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Funding Released for Alternative Fuel Vehicles

Energy Secretary Steven Chu says 25 cost-share projects have been selected to receive total funding of 300-million dollars under the Clean Cities program. These projects will speed the transformation of the nation’s vehicle fleet, putting more than 9-thousand alternative fuel and energy efficient vehicles on the road, and establishing 542 refueling locations across the country. The Department of Energy also estimates the projects will help displace approximately 38 million gallons of petroleum per year.

The vehicles and infrastructure being funded include the use of natural and renewable gas, propane, ethanol, biodiesel, electricity, and hybrid technologies. And with the cost share contributions from the recipients, every federal dollar spent will be matched by nearly two dollars from the project partners.

Under the Recovery Act, the Clean Cities program will fund a range of energy efficient and advanced vehicle technologies, such as hybrids, electric vehicles, plug-in electric hybrids, hydraulic hybrids and compressed natural gas vehicles, helping reduce petroleum consumption across the U.S.

NRCS Issues Estimated CSP Payment Ranges

USDA has issued an estimate of 12 to 22-dollars per acre of cropland and 7 to 14-dollars an acre of pastureland as the ranges that the Natural Resources Conservation Service might issue annually to those who contract to participate in the new Conservation Stewardship Program. CSP sign-up is open now through September 30th, with the program’s interim-final-rule public-comment period open until September 28th.

In a statement, NRCS says the payment ranges are based on projections about acreage enrollment and conservation performance, and are only intended as estimates.

To manage funding and meet legislative requirements, the agency says it will use enrollment data from the sign-up and the program’s first ranking period as a payment-discovery period to arrive at a uniform payment rate pre land-use conservation performance point. NRCS anticipates that discovery-period data will assist in determining set payment rates for future contracts.

The agency has posted several documents on its web site – nrcs-dot-usda-dot-gov - to explain CSP.

OMB Increases Costs for Food Stamp

The Office of Management and Budget has released the Mid-Session Review, updating the Administration’s economic forecast. The report shows a smaller 2009 deficit but larger out-year deficits than previously projected. The expectation is for a 262-billion dollar improvement in the projected 2009 deficit, now projected to be 1.58 trillion – or 11.2 percent of GDP.

Certain spending programs, such as unemployment insurance and food stamps are expected to increase and, at the same time, revenues are expected to decline. And, assuming the Waxman-Markey bill passes, the White House forecast assumes there will be at least 600 billion dollars in revenue over the next decade from polluters. They will have to buy credits under new climate change rules contained in the bill.

The OMB report sets public debt at more than 61 percent of the GDP by the end of next year. That would be the highest since 1952. And debt could reach 68 percent by the end of 2019.

Staples Disappointed With Dalhart Pork Plant Closure

A Smithfield Foods Inc. subsidiary will lay off 117 workers at it's Dalhart, Texas hog farm. The layoffs will begin by mid-October and fewer than 25 employees of the company's Premium Standard Farms LLC unit will continue to work at the site in Dallam County. The layoffs, effective Oct. 16, will be permanent.

In other Smithfield news, GE Capital said Monday that it had provided $150 million for Smithfield's previously announced $1 billion revolving credit facility. Smithfield Vice President Carey Dubois said GE "accounted for the largest portion of the... credit facility, helping provide Smithfield with the liquidity it needed." Smithfield announced last Friday that it had finished the sale of $225 million in senior secured notes. CEO C. Larry Pope said that would help "strengthen our balance sheet."

Texas Commissioner for Agriculture Todd Staples expressed disappointment with the news and said the pork industry has an $860 million impact with direct sales of $172 million. "Yes, pork producers are suffering today and much of that is due to the overall economic decline." He is outraged that media "professionals" continue to refer to H1N1 incorrectly as swine flu. He believes that this has led to the drop in prices and demand for the industry.

Staples introduced a resolution to other ag commissioners in the United States, as well as in Canada and Mexico, to urge politicians and media outlets to refer to the outbreak by it's correct name: H1N1. His comments can be heard below under GUEST INTERVIEWS for Wednesday August 26th, 2009.