Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.2 million head on March 1, 2009. The inventory was 5 percent below March 1, 2008.
Placements in feedlots during February totaled 1.68 million, 3 percent below 2008. Net placements were 1.62 million head. During February, placements of cattle and calves weighing less than 600 pounds were 320,000, 600-699 pounds were 385,000, 700-799 pounds were 538,000, and 800 pounds and greater were 435,000.
Marketings of fed cattle during February totaled 1.68 million, 5 percent below 2008. Other disappearance totaled 56,000 during February, 7 percent below 2008. This is the lowest other disappearance for the month of February since the series began in 1996.
Friday, March 20, 2009
Friday's Headlines
“USDA To Check With IRS Before Making Farm Payments”
The U.S. Department of Agriculture and Internal Revenue Service have begun efforts to ensure that high-income individuals and entities who request USDA payments meet income limits set forth in the 2008 Farm Bill. This is in response to the discovery of nearly 50-million dollars in payments to ineligible farmers.
Secretary of Agriculture Tom Vilsack says, - once a verification system is fully operational, high-income individuals and entities will be identified by USDA before farm program payments are actually disbursed to them.
Beginning with the 2009 crop year and for successive years, in order to be eligible for USDA payments, all recipients will be required to sign a separate form which grants IRS the authority to provide income information to USDA for verification purposes. IRS form 8821, or a similar form, must be obtained from each producer authorizing the release of information. Failure to obtain such form will make the producer ineligible for program benefits.
The Farm Service Agency will not receive actual tax data for the producers. All disclosure and Privacy Act provisions will be adhered to by the Farm Service Agency. **************************************************************
“Food Industry Executive Calls for Change”
Addressing members of the House Energy and Commerce subcommittee on Thursday, Kellogg CEO David MacKay said he wants food safety placed under a new leader in the Health and Human Services Department. He also called for a rule requiring all food companies to have written safety plans and he wants annual federal inspections of facilities that make high-risk foods.
In reaction, Senator Tom Harkin said - I welcome Mr. Mackay’s comments and applaud Kellogg for publicly stating what Americans have known for far too long – that the current fragmented system of food safety oversight is not doing enough to keep our citizens safe from food-borne illnesses.
Harkin called the current system – broken. He added, - more personnel at FDA and better coordination among the various agencies responsible for overseeing food safety is a critical first step in the right direction, but there is clearly more that can and should be done right now, particularly at FDA.
*************************************************************
“Senators: Stop Pitting Farmers Against School Nutrition”
Eight Senators, including the Ranking Member of the Senate Agriculture Committee, Saxby Chambliss, have sent a letter to Secretary of Agriculture Tom Vilsack, urging the Secretary to refrain from using rhetoric that unfairly attacks farmers and ranchers who form the foundation of America’s rural economy. Earlier this month, the Secretary declared that the upcoming reauthorization of the school nutrition program and the larger agenda of the Department of Agriculture is a choice between 30 million children or 90 thousandfarmers.
In the letter, the Senators said Congress can reauthorize the school nutrition programs, provide adequate funding to meet the urgent needs of our children, while at the same time maintain the support promised in the 2008 farm bill to U.S. production agriculture. They added the USDA has responsibility for a wide variety of interests and should be able to advocate for one without vilifying another.
The co-signers of the letter included: Chambliss, Thad Cochran, John Cornyn, Mike Crapo, James Risch, Pat Roberts, John Thune and David Vitter.
************************************************************
“Five Dollar Corn Prices?”
There is speculation U.S. farmers will plant less corn and more soybeans this spring. Could this reduction in corn planted acreage force corn prices up to as high as five-dollars per bushel? Some analysts think that is possible. Analysts participating in the Reuters Food Agriculture Summit this week projected U.S. corn plantings at 83 million to 85 million acres, down from the 86 million seeded in 2008. They forecast soybean plantings as high as a record 80 million acres as farmers shift away from the higher planting costs of corn.
The analysts also noted the possibility of increased ethanol demand if the blend rate is raised and prospects that corn exports might rebound during the year. Reuters also quoted Jim Borel, who oversees DuPont Company's Pioneer Hi-Bred unit, as saying U.S. corn seed sales have been ahead of the previous season for the last few months.
**************************************************************
“Corn Industry Officials Visit EU-WTO”
Representatives of the National Corn Growers Association and the U.S. Grains Council completed a trip to the European Union this week to discuss biotechnology and trade policy issues focused on the Doha Round with visits to the World Trade Organization secretariat and others. NCGA Joint Trade Policy A-Team Chairman Bill Hoffman called the trip - a great opportunity to have one-on-one meetings with WTO officials and the French Corn Growers Association.
The WTO secretariat expressed the opinion that the United States is a key player in moving the Doha negotiations forward, but negotiations will continue to stall until the Obama Administration appoints the necessary trade officials. The secretariat expressed its belief that a successful conclusion of Doha trade talks would hold significant gains for the United States and would help end the worldwide economic downturn. A number of new provisions would help to safeguard against protectionism especially in agriculture.
French corn grower Christophe Terrain expressed his frustration with the current approval process for genetically enhanced corn. He said there were specific biotech traits that would reduce several of their annual infestation problems if they were made available. Terrain said coexistence rules are very strict. In France, test plot locations have to be publicized, emphasizing the effect this has had on the increase of agro-terrorism.
****************************************************************
“Senators’ Bill Reduces Ethanol Import Tariffs”
A group of bipartisan U.S. Senators has introduced a measure to reduce the tariffs on imported ethanol. They point out, the 2008 Farm Bill lowered the blender’s credit but the import tariffs are untouched. They say this has developed a –real barrier to trade - on foreign ethanol imports, ranging between 11 to 13 cents per gallon. This means that gasoline imports are favored over ethanol imports.
The measure (S.622) would ensure parity between the ethanol blender subsidy and the two tariffs on imported ethanol. Specifically, it would require the President to lower the ethanol tariff at least 11 cents per gallon within 30 days of enactment.
One of the bill’s sponsors, California Senator Dianne Feinstein, said – I believe this makes no sense, particularly given our nation’s continued addiction to oil imported from the middle East and other hot spots. According to the United States Department of Agriculture, Brazilian production costs for sugar-based ethanol are only 81-cents per gallon, while U.S. ethanol production costs are currently above two dollars per gallon.
***************************************************************
“Vilsack Addresses Middle Class Taskforce”
Speaking at a Middle Class Taskforce meeting in St. Cloud, Minnesota yesterday, Agriculture Secretary Tom Vilsack said - improving the lives of people in Main Street America is a major priority of the Obama Administration. The taskforce is chaired by Vice President Joe Biden and is working to develop public policies to help middle class families by improving their living standards.
The Secretary said - continued investment in research and production of alternative fuels will not only help improve the environment, but create much needed jobs in rural America. Vilsack challenged farmers, ranchers and rural communities to - take a lead in expanding the capacity to produce alternative forms of energy and fuel.
USDA has dedicated research funding for biofuels and biorefinery technology and is exploring how other forms of renewable energy, such as wind and solar, can be adapted to agricultural uses. The USDA also awards grants and loans to help rural Americans to invest in wind, solar and anaerobic energy solutions for their communities.
***************************************************************
“Canadian Swine Cull Program Extended”
The Canadian government has extended its Cull Breeding Swine Program to provide more assistance to farmers who have downsized their herds to cope with tough economic times. In making the announcement, Federal Agriculture Minister Gerry Ritz said - some pork producers made tough business decisions to reduce their herds before this program started. We're changing the program to make sure those producers get the support they deserve.
The 50-million dollar program was announced in February 2008, with the objective of reducing the national breeding herd size by up to 10 per cent. The program provides producers a per head payment for each animal slaughtered, as well as reimbursement for slaughter and disposal costs. Producers must agree to empty at least one barn, and not to restock for a three year period.
Originally, claims for culled breeding swine were covered between November 1, 2007 and November 30, 2008. The initial date has now been changed to include breeding swine culled between August 1, 2007 and October 31st, 2007. Producers have until June 30 to make claims for breeding swine culled during this period.
***************************************************************
“2009 Pork Management Conference Announced”
The Pork Checkoff is inviting pork producers, including anyone involved in the management, accounting or finances of an operation, as well as consultants and lenders to attend the 2009 Pork Management Conference, Your Pork Industry Investment. This Conference is scheduled for May 6-8 in Fort Myers, Florida. Ron Schoo, chairman of the Pork Checkoff's Producer Services Committee and a pork producer from New Um, Minnesota, says - this Checkoff-funded conference offers the most up-to-date production and financial information that affects the pork industry today.
During the conference, participants will learn about topics such as emerging food trends, credit analysis, U.S. agriculture outlooks, global trade and more from several pork industry professionals. Concurrent sessions will cover managing employee benefit costs, real life production budgeting, hedge strategies, business interruption, a GAAP update, production targets, tax update, A-Z nuts and bolts on pork production and worker safety/OSHA.
***************************************************************
“Away With the Tumbling Tumbleweed”
Determining the host range of fungal pathogens that have potential for use as biological controls of weeds should become easier to do, thanks to a new technique developed by Agricultural Research Service scientists. Their approach combines data in unique ways to improve predictions about how certain plants or crops related to a targeted weed might react to the release of a candidate pathogen used in a classical biocontrol program.
Scientists can now integrate plant-disease reaction scores and other data with a matrix made up of DNA sequence information that shows the genetic relatedness of plant species to each other and to the target weed. Using a statistical approach similar to so-called "animal mixed models," scientists can predict the probable susceptibility of different plants to the weed pathogen.
A symbol of the Wild West might by where this technology could be applied. The tumbleweed is a noxious pest. It can infest crop fields, harbor pathogens, deplete soil moisture, pose a fire hazard and endanger motorists. Biocontrol offers a sustainable alternative to herbicide spraying and physical controls like mowing, especially across large swaths of infested land.
*************************************************************
The U.S. Department of Agriculture and Internal Revenue Service have begun efforts to ensure that high-income individuals and entities who request USDA payments meet income limits set forth in the 2008 Farm Bill. This is in response to the discovery of nearly 50-million dollars in payments to ineligible farmers.
Secretary of Agriculture Tom Vilsack says, - once a verification system is fully operational, high-income individuals and entities will be identified by USDA before farm program payments are actually disbursed to them.
Beginning with the 2009 crop year and for successive years, in order to be eligible for USDA payments, all recipients will be required to sign a separate form which grants IRS the authority to provide income information to USDA for verification purposes. IRS form 8821, or a similar form, must be obtained from each producer authorizing the release of information. Failure to obtain such form will make the producer ineligible for program benefits.
The Farm Service Agency will not receive actual tax data for the producers. All disclosure and Privacy Act provisions will be adhered to by the Farm Service Agency. **************************************************************
“Food Industry Executive Calls for Change”
Addressing members of the House Energy and Commerce subcommittee on Thursday, Kellogg CEO David MacKay said he wants food safety placed under a new leader in the Health and Human Services Department. He also called for a rule requiring all food companies to have written safety plans and he wants annual federal inspections of facilities that make high-risk foods.
In reaction, Senator Tom Harkin said - I welcome Mr. Mackay’s comments and applaud Kellogg for publicly stating what Americans have known for far too long – that the current fragmented system of food safety oversight is not doing enough to keep our citizens safe from food-borne illnesses.
Harkin called the current system – broken. He added, - more personnel at FDA and better coordination among the various agencies responsible for overseeing food safety is a critical first step in the right direction, but there is clearly more that can and should be done right now, particularly at FDA.
*************************************************************
“Senators: Stop Pitting Farmers Against School Nutrition”
Eight Senators, including the Ranking Member of the Senate Agriculture Committee, Saxby Chambliss, have sent a letter to Secretary of Agriculture Tom Vilsack, urging the Secretary to refrain from using rhetoric that unfairly attacks farmers and ranchers who form the foundation of America’s rural economy. Earlier this month, the Secretary declared that the upcoming reauthorization of the school nutrition program and the larger agenda of the Department of Agriculture is a choice between 30 million children or 90 thousandfarmers.
In the letter, the Senators said Congress can reauthorize the school nutrition programs, provide adequate funding to meet the urgent needs of our children, while at the same time maintain the support promised in the 2008 farm bill to U.S. production agriculture. They added the USDA has responsibility for a wide variety of interests and should be able to advocate for one without vilifying another.
The co-signers of the letter included: Chambliss, Thad Cochran, John Cornyn, Mike Crapo, James Risch, Pat Roberts, John Thune and David Vitter.
************************************************************
“Five Dollar Corn Prices?”
There is speculation U.S. farmers will plant less corn and more soybeans this spring. Could this reduction in corn planted acreage force corn prices up to as high as five-dollars per bushel? Some analysts think that is possible. Analysts participating in the Reuters Food Agriculture Summit this week projected U.S. corn plantings at 83 million to 85 million acres, down from the 86 million seeded in 2008. They forecast soybean plantings as high as a record 80 million acres as farmers shift away from the higher planting costs of corn.
The analysts also noted the possibility of increased ethanol demand if the blend rate is raised and prospects that corn exports might rebound during the year. Reuters also quoted Jim Borel, who oversees DuPont Company's Pioneer Hi-Bred unit, as saying U.S. corn seed sales have been ahead of the previous season for the last few months.
**************************************************************
“Corn Industry Officials Visit EU-WTO”
Representatives of the National Corn Growers Association and the U.S. Grains Council completed a trip to the European Union this week to discuss biotechnology and trade policy issues focused on the Doha Round with visits to the World Trade Organization secretariat and others. NCGA Joint Trade Policy A-Team Chairman Bill Hoffman called the trip - a great opportunity to have one-on-one meetings with WTO officials and the French Corn Growers Association.
The WTO secretariat expressed the opinion that the United States is a key player in moving the Doha negotiations forward, but negotiations will continue to stall until the Obama Administration appoints the necessary trade officials. The secretariat expressed its belief that a successful conclusion of Doha trade talks would hold significant gains for the United States and would help end the worldwide economic downturn. A number of new provisions would help to safeguard against protectionism especially in agriculture.
French corn grower Christophe Terrain expressed his frustration with the current approval process for genetically enhanced corn. He said there were specific biotech traits that would reduce several of their annual infestation problems if they were made available. Terrain said coexistence rules are very strict. In France, test plot locations have to be publicized, emphasizing the effect this has had on the increase of agro-terrorism.
****************************************************************
“Senators’ Bill Reduces Ethanol Import Tariffs”
A group of bipartisan U.S. Senators has introduced a measure to reduce the tariffs on imported ethanol. They point out, the 2008 Farm Bill lowered the blender’s credit but the import tariffs are untouched. They say this has developed a –real barrier to trade - on foreign ethanol imports, ranging between 11 to 13 cents per gallon. This means that gasoline imports are favored over ethanol imports.
The measure (S.622) would ensure parity between the ethanol blender subsidy and the two tariffs on imported ethanol. Specifically, it would require the President to lower the ethanol tariff at least 11 cents per gallon within 30 days of enactment.
One of the bill’s sponsors, California Senator Dianne Feinstein, said – I believe this makes no sense, particularly given our nation’s continued addiction to oil imported from the middle East and other hot spots. According to the United States Department of Agriculture, Brazilian production costs for sugar-based ethanol are only 81-cents per gallon, while U.S. ethanol production costs are currently above two dollars per gallon.
***************************************************************
“Vilsack Addresses Middle Class Taskforce”
Speaking at a Middle Class Taskforce meeting in St. Cloud, Minnesota yesterday, Agriculture Secretary Tom Vilsack said - improving the lives of people in Main Street America is a major priority of the Obama Administration. The taskforce is chaired by Vice President Joe Biden and is working to develop public policies to help middle class families by improving their living standards.
The Secretary said - continued investment in research and production of alternative fuels will not only help improve the environment, but create much needed jobs in rural America. Vilsack challenged farmers, ranchers and rural communities to - take a lead in expanding the capacity to produce alternative forms of energy and fuel.
USDA has dedicated research funding for biofuels and biorefinery technology and is exploring how other forms of renewable energy, such as wind and solar, can be adapted to agricultural uses. The USDA also awards grants and loans to help rural Americans to invest in wind, solar and anaerobic energy solutions for their communities.
***************************************************************
“Canadian Swine Cull Program Extended”
The Canadian government has extended its Cull Breeding Swine Program to provide more assistance to farmers who have downsized their herds to cope with tough economic times. In making the announcement, Federal Agriculture Minister Gerry Ritz said - some pork producers made tough business decisions to reduce their herds before this program started. We're changing the program to make sure those producers get the support they deserve.
The 50-million dollar program was announced in February 2008, with the objective of reducing the national breeding herd size by up to 10 per cent. The program provides producers a per head payment for each animal slaughtered, as well as reimbursement for slaughter and disposal costs. Producers must agree to empty at least one barn, and not to restock for a three year period.
Originally, claims for culled breeding swine were covered between November 1, 2007 and November 30, 2008. The initial date has now been changed to include breeding swine culled between August 1, 2007 and October 31st, 2007. Producers have until June 30 to make claims for breeding swine culled during this period.
***************************************************************
“2009 Pork Management Conference Announced”
The Pork Checkoff is inviting pork producers, including anyone involved in the management, accounting or finances of an operation, as well as consultants and lenders to attend the 2009 Pork Management Conference, Your Pork Industry Investment. This Conference is scheduled for May 6-8 in Fort Myers, Florida. Ron Schoo, chairman of the Pork Checkoff's Producer Services Committee and a pork producer from New Um, Minnesota, says - this Checkoff-funded conference offers the most up-to-date production and financial information that affects the pork industry today.
During the conference, participants will learn about topics such as emerging food trends, credit analysis, U.S. agriculture outlooks, global trade and more from several pork industry professionals. Concurrent sessions will cover managing employee benefit costs, real life production budgeting, hedge strategies, business interruption, a GAAP update, production targets, tax update, A-Z nuts and bolts on pork production and worker safety/OSHA.
***************************************************************
“Away With the Tumbling Tumbleweed”
Determining the host range of fungal pathogens that have potential for use as biological controls of weeds should become easier to do, thanks to a new technique developed by Agricultural Research Service scientists. Their approach combines data in unique ways to improve predictions about how certain plants or crops related to a targeted weed might react to the release of a candidate pathogen used in a classical biocontrol program.
Scientists can now integrate plant-disease reaction scores and other data with a matrix made up of DNA sequence information that shows the genetic relatedness of plant species to each other and to the target weed. Using a statistical approach similar to so-called "animal mixed models," scientists can predict the probable susceptibility of different plants to the weed pathogen.
A symbol of the Wild West might by where this technology could be applied. The tumbleweed is a noxious pest. It can infest crop fields, harbor pathogens, deplete soil moisture, pose a fire hazard and endanger motorists. Biocontrol offers a sustainable alternative to herbicide spraying and physical controls like mowing, especially across large swaths of infested land.
*************************************************************
Thursday, March 19, 2009
Thursday's Headlines
“U.S. Trade Rep Confirmed”
In a 92 to 5 vote - the Senate approved former Dallas Mayor Ron Kirk to be U.S. Trade Representative. Kirk told the Senate Finance Committee during his confirmation hearing last week that he would focus more on making sure other countries live up to their commitments under existing trade agreements than negotiating new deals to open markets to U.S. exports. But he’s also promised to work with Congress to get the pending free trade deals with Panama, Colombia and South Korea approved.
Kirk told the Finance Committee the agreement with Panama could be approved relatively quickly if that country makes some labor law reforms. The other two face challenges. Kirk said the U.S. will walk away from the South Korea deal unless auto provisions that now favor South Korean automakers too much are changed. And before the pact with Colombia is passed - he says more needs to be done to stop violence against trade unionists. The American Farm Bureau Federation has said the Colombia and Panama agreements represent U.S. ag export gains of more than a billion dollars a year at full implementation.
As for the Doha Round - Kirk said the U.S. is committed to reaching a deal. But he said developing countries like Brazil, India and China need to make better offers to open their markets.
***********************************************************************************************
“Mexico Retaliates for Trucking Decision”
In retaliation for the decision to scrap a test program that allowed Mexican trucks to use U.S. highways to deliver goods - Mexico will apply tariffs of 10 to 45-percent on at least 90 U.S. products. Those tariffs - according to Mexico’s Economy Minister - will take effect tomorrow. The products do include some fruits and vegetables - like cherries and potatoes - but rice, corn, wheat and beans were excluded. Pork, beef and poultry also were not on the list.
***********************************************************************************************
“World Bank Warns Protectionism the Wrong Route”
A World Bank report shows at least 17 of the 20 major nations that vowed to avoid protectionist steps have violated their promise - enacting measures to limit the flow of imported goods. The U.S., Russia and China are among those trying to protect their domestic industries amid the global economic crisis. Since last November - the World Bank reports 47 measures have been imposed that restrict trade at the expense of other countries.
The report followed on the heels of the announcement that Mexico would implement tariffs on 90 U.S. products in retaliation against the cancellation of a 2007 pilot program allowing Mexican trucks full access to U.S. highways to transport goods. Experts fear those types of responses could grow in coming months - which could sharply worsen the collapse of global trade. The World Bank says trade is facing its steepest decline in eight decades as global demand dries up.
World Bank Group President Robert Zoellick - a former U.S. Trade Representative - said leaders must not heed the siren-song of protectionist fixes, whether for trade, stimulus packages or bailouts. He said it could - and has proven in the past - to make a bad situation worse.
***********************************************************************************************
“EU Ready to Cut Preferential Beef Duties”
In 2008 - the European Union purchased from both the United States and Canada a total of 20,660 metric tons of U.S. beef. The U.S. Meat Export Federations sets the value at 99.7-million dollars. The first 11,500 metric tons of that beef benefited from a reduced tariff of 20-percent. Any beef the EU imports above that level has a combined tariff of 12.8-percent duty and 3,000 euros per ton. But all of that could change soon.
The European Commission is considering a doubling of the preferential quota for beef imports. This would be a step forward in a decades-old dispute over beef trade. But first - the Commission wants the United States to eliminate about 166-million dollars worth of sanctions against EU products. The EU would still ban beef traded with hormones.
***********************************************************************************************
“VeraSun Sales Approved”
After a two-day auction with several bidders - Valero Energy won a bid for seven of VeraSun Energy’s 17 bankrupt plants. Secured lenders submitted bids for the remaining VeraSun assets. The ethanol producer - which filed petitions for relief under Chapter 11 of the Bankruptcy Code in October - announced Wednesday that the U.S. Bankruptcy Court has approved the sales. The sales will close in April at a total of nearly one-billion dollars.
The National Corn Growers Association expects most 2008 VeraSun contracts will be voided as a result of the auction - but recommend affected growers check with their local buyers. NCGA Chairman Ron Litterer says there are still many questions to resolve about the corn contracts - but says the group is relieved the plants aren’t being shuttered - and hopes to see improvement in the ethanol industry as the economy rebounds.***********************************************************************************************
“Republicans Vow to Fight Cap & Trade System”
It’s not just the tax increases included in President Obama’s proposed budget House Republicans are opposed to - it’s the cap and trade program designed to curb carbon dioxide emissions. GOP leaders say they will oppose the program and instead focus on their “all of the above” energy proposals. Those proposals stress new domestic oil and gas production and the development of alternative energy sources. This is just one of six principles House Republicans say they will follow as they work on an alternative budget they plan to bring forward in the next few weeks.
***********************************************************************************************
“Enhanced Feed Ban Could Be Delayed”
After requests from 18 Senators and packers and renderers from across the country earlier this month - it is expected the U.S. Food and Drug Administration will place a hold on the agency’s enhanced ban on high-risk cattle material in feed for all animals. The ban was to be effective on April 27th - but that date may get pushed back 60 days because of President Obama’s decision to review rules not yet in effect. Notice should be soon published in the Federal Register.
Packers and renderers are claiming certain hardships in the run-up to the rule’s implementation. At question is disposal of banned materials such as spinal cords and brains from cattle older than 30 months of age. Some renderers are refusing to take such materials or older dead stock off of packers' hands - forcing them to find other methods of disposal that can be costly and problematic.
***********************************************************************************************
“University Study Shows Cellulosic Could Provide Big Economic Stimulus”
A new North Dakota State University study shows rural jobs could triple as ethanol production shifts to the use of cellulosic feedstocks like crop residues, forestry wastes and non-food energy crops.
While the study’s conclusions are tentative - as cellulosic production is just at the pilot-plant stage - researchers forecast that cellulosic biofuels will bring 192 plants to the North Central states - stretching from Missouri and Kansas to North Dakota. According to the study - those plants would pump 10-billion dollars into rural communities each year - directly employ nearly 15-thousand workers - and support thousands of additional jobs in feedstock harvest and transportation.
The report concludes that an emerging biofuels industry could offer new jobs that would help support rural communities and farm households and provide the kind of economic stimulus many agriculturally dependent areas have been seeking.
***********************************************************************************************
“Irrigation Systems Get Smarter”
A Texas-based company is expanding on an Agricultural Research Service-patented technology. The system is called SmartCropTM. Smartfield, Inc. in Lubbock, Texas is adding three instruments to detect pressure and flow rates in subsurface drip systems; monitor wind speed and sunshine; and detect rain. The water saved by the system would be the equivalent of the total water needs of 44 homes for a year.
SmartCropTM uses pole-mounted infrared thermometers to read leaf temperatures as well as surrounding air temperatures. A computerized controller receives the readings every 10 seconds from each thermometer. The controller also collects weather data. Every 15 minutes - it transmits data averages to the Internet.
SmartCropTM capitalizes on the researchers' discovery that each plant species grows best only within a narrow temperature range. An overheated plant may need water as much to cool down as to quench thirst. For cotton in the Lubbock area - the system might send a text message advising turning on irrigation if leaf temperatures read above 82 degrees Fahrenheit for more than 6.5 hours at a time.
***********************************************************************************************
“R-CALF Opposed to Proposed 840 Rule”
R-CALF USA has filed formal comments in opposition to USDA’s proposed rule on animal identification numbering systems - known as the 840 Rule. The rule is said to be designed to achieve greater standardization and uniformity of official numbering systems and ear tags. But R-CALF says the rule would make animal traceability for disease program more difficult and less effective. The group also believes it’s a way to mandate a National Animal Identification System.
R-CALF wrote USDA’s Animal and Plant Health Inspection Service has violated its rule making responsibilities under the Administrative Procedure Act by apparently implementing the change proposed in the 840 Rule without giving the public the opportunity to comment.
Among other things - R-CALF contends the 840 rule would make premises registration and use of the new NAIS premises identification number mandatory for all producers participating in any APHIS Veterinary Services disease program activities and curtail the use of time-proven postal-code identifiers on official ear tags.
***********************************************************************************************
“MO’s McCaskill Voices Opposition to NAIS”
In related news (related to story above) - Missouri Senator Claire McCaskill has made her opposition to the implementation of the National Animal Identification System known to U.S. Ag Secretary Tom Vilsack. That’s according to R-CALF USA. The group says in a letter to the Secretary - McCaskill noted USDA has spent more than 130-million dollars to promote NAIS and that it was projected at a recent hearing that additional costs would escalate to a least 200-million or more. She reportedly went on to say it doesn’t make sense to put such a significant and unjustified financial burden on independent producers already stretched by the current economic situation.
Missouri is one of four states to have enacted legislation that prohibits mandatory premises registration programs.
***********************************************************************************************
“Public Comment Sought on Farm Storage Facility Loan Program”
USDA’s Farm Service Agency has announced a series of meetings to solicit comments on the Farm Storage Facility Loan Program. The comments received will be considered as a Programmatic Environmental Assessment is prepared. The assessment will help USDA decision-makers and the public with an analysis for the environmental benefits and potential impacts associated with implementing changes to the loan program approved as part of the 2008 Farm Bill.
National meetings are scheduled for April 14th in Kansas City, Kansas and April 15th in Cleveland, Ohio. Those attending the public meetings can submit oral and written comments. Written and electronic comments may also be submitted. They must be received by the close of business on May 13th to ensure consideration.
***********************************************************************************************
“Going to Kansas City”
Kansas City will be home to the 11th annual International Food Aid Conference hosted by USDA and the U.S. Agency for International Development. The theme for this year’s conference - scheduled for April 6th through the 8th - is Fighting Hunger in an Era of Global Economic Crisis. U.S. Ag Secretary Tom Vilsack, former U.S. Congressman and Ambassador to the U.N. Agencies in Rome Tony Hall and World Food Program Director of U.S. Relations Allan Jury are among the speakers. The conference provides a forum for discussions on policy and the operations issues related to the delivery of food aid - as well as improving communication and cooperation among those involved in food aid delivery.
***********************************************************************************************
“Interior and FERC Reach Agreement on Offshore Renewable Energy Development”
The Department of the Interior and the Federal Energy Regulatory Commission are dividing the responsibility for regulation of offshore alternative energy sources. The agencies will prepare a Memorandum of Understanding that gives the Interior Department the right to decide on wind power proposals in federal waters and FERC oversight for wave, tidal and ocean-current projects.
Ahead of the announcement - Interior Secretary Ken Salazar told reporters that failure to resolve jurisdictional issues between FERC and Interior would hamper the administration’s efforts to expand renewable energy capacity. But this agreement - the Secretary says - will help sweep aside red tape so the U.S. can capture the great power of wave, tidal, wind and solar power off the coasts.
***********************************************************************************************
“Acting FFA COO Named”
A former vice president of North America sales for Pioneer Hi-Bred International will assume the position of acting chief operating officer for the National FFA Organization. Bill Fleet will replace Douglas Loudenslager on April 1st. Loudenslager announced he would step down earlier this month. Fleet will guide the organization during the time required to conduct a national executive search for a full-time chief operating officer.
National FFA Adviser and CEO Larry Case says Fleet brings a wealth of experience in the agriculture industry and the agricultural education/FFA program. He says Fleet’s work supporting the ambitious agenda of the National Council for Agricultural Education has given him a ready grasp of the challenges and opportunities faced by the profession. Case called him the right man at the right time.
Prior to joining Pioneer in 1982 - Fleet taught agricultural education for four years at the high school level and served as adviser for both FFA and for adult farmers in the Dover Area School District in Dover, Pennsylvania.
***********************************************************************************************
In a 92 to 5 vote - the Senate approved former Dallas Mayor Ron Kirk to be U.S. Trade Representative. Kirk told the Senate Finance Committee during his confirmation hearing last week that he would focus more on making sure other countries live up to their commitments under existing trade agreements than negotiating new deals to open markets to U.S. exports. But he’s also promised to work with Congress to get the pending free trade deals with Panama, Colombia and South Korea approved.
Kirk told the Finance Committee the agreement with Panama could be approved relatively quickly if that country makes some labor law reforms. The other two face challenges. Kirk said the U.S. will walk away from the South Korea deal unless auto provisions that now favor South Korean automakers too much are changed. And before the pact with Colombia is passed - he says more needs to be done to stop violence against trade unionists. The American Farm Bureau Federation has said the Colombia and Panama agreements represent U.S. ag export gains of more than a billion dollars a year at full implementation.
As for the Doha Round - Kirk said the U.S. is committed to reaching a deal. But he said developing countries like Brazil, India and China need to make better offers to open their markets.
***********************************************************************************************
“Mexico Retaliates for Trucking Decision”
In retaliation for the decision to scrap a test program that allowed Mexican trucks to use U.S. highways to deliver goods - Mexico will apply tariffs of 10 to 45-percent on at least 90 U.S. products. Those tariffs - according to Mexico’s Economy Minister - will take effect tomorrow. The products do include some fruits and vegetables - like cherries and potatoes - but rice, corn, wheat and beans were excluded. Pork, beef and poultry also were not on the list.
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“World Bank Warns Protectionism the Wrong Route”
A World Bank report shows at least 17 of the 20 major nations that vowed to avoid protectionist steps have violated their promise - enacting measures to limit the flow of imported goods. The U.S., Russia and China are among those trying to protect their domestic industries amid the global economic crisis. Since last November - the World Bank reports 47 measures have been imposed that restrict trade at the expense of other countries.
The report followed on the heels of the announcement that Mexico would implement tariffs on 90 U.S. products in retaliation against the cancellation of a 2007 pilot program allowing Mexican trucks full access to U.S. highways to transport goods. Experts fear those types of responses could grow in coming months - which could sharply worsen the collapse of global trade. The World Bank says trade is facing its steepest decline in eight decades as global demand dries up.
World Bank Group President Robert Zoellick - a former U.S. Trade Representative - said leaders must not heed the siren-song of protectionist fixes, whether for trade, stimulus packages or bailouts. He said it could - and has proven in the past - to make a bad situation worse.
***********************************************************************************************
“EU Ready to Cut Preferential Beef Duties”
In 2008 - the European Union purchased from both the United States and Canada a total of 20,660 metric tons of U.S. beef. The U.S. Meat Export Federations sets the value at 99.7-million dollars. The first 11,500 metric tons of that beef benefited from a reduced tariff of 20-percent. Any beef the EU imports above that level has a combined tariff of 12.8-percent duty and 3,000 euros per ton. But all of that could change soon.
The European Commission is considering a doubling of the preferential quota for beef imports. This would be a step forward in a decades-old dispute over beef trade. But first - the Commission wants the United States to eliminate about 166-million dollars worth of sanctions against EU products. The EU would still ban beef traded with hormones.
***********************************************************************************************
“VeraSun Sales Approved”
After a two-day auction with several bidders - Valero Energy won a bid for seven of VeraSun Energy’s 17 bankrupt plants. Secured lenders submitted bids for the remaining VeraSun assets. The ethanol producer - which filed petitions for relief under Chapter 11 of the Bankruptcy Code in October - announced Wednesday that the U.S. Bankruptcy Court has approved the sales. The sales will close in April at a total of nearly one-billion dollars.
The National Corn Growers Association expects most 2008 VeraSun contracts will be voided as a result of the auction - but recommend affected growers check with their local buyers. NCGA Chairman Ron Litterer says there are still many questions to resolve about the corn contracts - but says the group is relieved the plants aren’t being shuttered - and hopes to see improvement in the ethanol industry as the economy rebounds.***********************************************************************************************
“Republicans Vow to Fight Cap & Trade System”
It’s not just the tax increases included in President Obama’s proposed budget House Republicans are opposed to - it’s the cap and trade program designed to curb carbon dioxide emissions. GOP leaders say they will oppose the program and instead focus on their “all of the above” energy proposals. Those proposals stress new domestic oil and gas production and the development of alternative energy sources. This is just one of six principles House Republicans say they will follow as they work on an alternative budget they plan to bring forward in the next few weeks.
***********************************************************************************************
“Enhanced Feed Ban Could Be Delayed”
After requests from 18 Senators and packers and renderers from across the country earlier this month - it is expected the U.S. Food and Drug Administration will place a hold on the agency’s enhanced ban on high-risk cattle material in feed for all animals. The ban was to be effective on April 27th - but that date may get pushed back 60 days because of President Obama’s decision to review rules not yet in effect. Notice should be soon published in the Federal Register.
Packers and renderers are claiming certain hardships in the run-up to the rule’s implementation. At question is disposal of banned materials such as spinal cords and brains from cattle older than 30 months of age. Some renderers are refusing to take such materials or older dead stock off of packers' hands - forcing them to find other methods of disposal that can be costly and problematic.
***********************************************************************************************
“University Study Shows Cellulosic Could Provide Big Economic Stimulus”
A new North Dakota State University study shows rural jobs could triple as ethanol production shifts to the use of cellulosic feedstocks like crop residues, forestry wastes and non-food energy crops.
While the study’s conclusions are tentative - as cellulosic production is just at the pilot-plant stage - researchers forecast that cellulosic biofuels will bring 192 plants to the North Central states - stretching from Missouri and Kansas to North Dakota. According to the study - those plants would pump 10-billion dollars into rural communities each year - directly employ nearly 15-thousand workers - and support thousands of additional jobs in feedstock harvest and transportation.
The report concludes that an emerging biofuels industry could offer new jobs that would help support rural communities and farm households and provide the kind of economic stimulus many agriculturally dependent areas have been seeking.
***********************************************************************************************
“Irrigation Systems Get Smarter”
A Texas-based company is expanding on an Agricultural Research Service-patented technology. The system is called SmartCropTM. Smartfield, Inc. in Lubbock, Texas is adding three instruments to detect pressure and flow rates in subsurface drip systems; monitor wind speed and sunshine; and detect rain. The water saved by the system would be the equivalent of the total water needs of 44 homes for a year.
SmartCropTM uses pole-mounted infrared thermometers to read leaf temperatures as well as surrounding air temperatures. A computerized controller receives the readings every 10 seconds from each thermometer. The controller also collects weather data. Every 15 minutes - it transmits data averages to the Internet.
SmartCropTM capitalizes on the researchers' discovery that each plant species grows best only within a narrow temperature range. An overheated plant may need water as much to cool down as to quench thirst. For cotton in the Lubbock area - the system might send a text message advising turning on irrigation if leaf temperatures read above 82 degrees Fahrenheit for more than 6.5 hours at a time.
***********************************************************************************************
“R-CALF Opposed to Proposed 840 Rule”
R-CALF USA has filed formal comments in opposition to USDA’s proposed rule on animal identification numbering systems - known as the 840 Rule. The rule is said to be designed to achieve greater standardization and uniformity of official numbering systems and ear tags. But R-CALF says the rule would make animal traceability for disease program more difficult and less effective. The group also believes it’s a way to mandate a National Animal Identification System.
R-CALF wrote USDA’s Animal and Plant Health Inspection Service has violated its rule making responsibilities under the Administrative Procedure Act by apparently implementing the change proposed in the 840 Rule without giving the public the opportunity to comment.
Among other things - R-CALF contends the 840 rule would make premises registration and use of the new NAIS premises identification number mandatory for all producers participating in any APHIS Veterinary Services disease program activities and curtail the use of time-proven postal-code identifiers on official ear tags.
***********************************************************************************************
“MO’s McCaskill Voices Opposition to NAIS”
In related news (related to story above) - Missouri Senator Claire McCaskill has made her opposition to the implementation of the National Animal Identification System known to U.S. Ag Secretary Tom Vilsack. That’s according to R-CALF USA. The group says in a letter to the Secretary - McCaskill noted USDA has spent more than 130-million dollars to promote NAIS and that it was projected at a recent hearing that additional costs would escalate to a least 200-million or more. She reportedly went on to say it doesn’t make sense to put such a significant and unjustified financial burden on independent producers already stretched by the current economic situation.
Missouri is one of four states to have enacted legislation that prohibits mandatory premises registration programs.
***********************************************************************************************
“Public Comment Sought on Farm Storage Facility Loan Program”
USDA’s Farm Service Agency has announced a series of meetings to solicit comments on the Farm Storage Facility Loan Program. The comments received will be considered as a Programmatic Environmental Assessment is prepared. The assessment will help USDA decision-makers and the public with an analysis for the environmental benefits and potential impacts associated with implementing changes to the loan program approved as part of the 2008 Farm Bill.
National meetings are scheduled for April 14th in Kansas City, Kansas and April 15th in Cleveland, Ohio. Those attending the public meetings can submit oral and written comments. Written and electronic comments may also be submitted. They must be received by the close of business on May 13th to ensure consideration.
***********************************************************************************************
“Going to Kansas City”
Kansas City will be home to the 11th annual International Food Aid Conference hosted by USDA and the U.S. Agency for International Development. The theme for this year’s conference - scheduled for April 6th through the 8th - is Fighting Hunger in an Era of Global Economic Crisis. U.S. Ag Secretary Tom Vilsack, former U.S. Congressman and Ambassador to the U.N. Agencies in Rome Tony Hall and World Food Program Director of U.S. Relations Allan Jury are among the speakers. The conference provides a forum for discussions on policy and the operations issues related to the delivery of food aid - as well as improving communication and cooperation among those involved in food aid delivery.
***********************************************************************************************
“Interior and FERC Reach Agreement on Offshore Renewable Energy Development”
The Department of the Interior and the Federal Energy Regulatory Commission are dividing the responsibility for regulation of offshore alternative energy sources. The agencies will prepare a Memorandum of Understanding that gives the Interior Department the right to decide on wind power proposals in federal waters and FERC oversight for wave, tidal and ocean-current projects.
Ahead of the announcement - Interior Secretary Ken Salazar told reporters that failure to resolve jurisdictional issues between FERC and Interior would hamper the administration’s efforts to expand renewable energy capacity. But this agreement - the Secretary says - will help sweep aside red tape so the U.S. can capture the great power of wave, tidal, wind and solar power off the coasts.
***********************************************************************************************
“Acting FFA COO Named”
A former vice president of North America sales for Pioneer Hi-Bred International will assume the position of acting chief operating officer for the National FFA Organization. Bill Fleet will replace Douglas Loudenslager on April 1st. Loudenslager announced he would step down earlier this month. Fleet will guide the organization during the time required to conduct a national executive search for a full-time chief operating officer.
National FFA Adviser and CEO Larry Case says Fleet brings a wealth of experience in the agriculture industry and the agricultural education/FFA program. He says Fleet’s work supporting the ambitious agenda of the National Council for Agricultural Education has given him a ready grasp of the challenges and opportunities faced by the profession. Case called him the right man at the right time.
Prior to joining Pioneer in 1982 - Fleet taught agricultural education for four years at the high school level and served as adviser for both FFA and for adult farmers in the Dover Area School District in Dover, Pennsylvania.
***********************************************************************************************
Tuesday, March 17, 2009
Wednesday's Headlines
“NAFTA Battle Begins”
When Congress passed and the President signed the spending bill last week it nixed a program that permitted U.S. and Mexico truckers to operate over the border. Safety concerns and other issues prompted the move. Now, White House spokesman Robert Gibbs is quoted as saying the administration wants to work with Congress to restore that program.
According to AP, the Mexican Economy Department argues the U.S. Congress's decision to do away with the program violates the North American Free Trade Agreement, and will affect some 2.4 billion dollars in trade with 40 U.S. states. Mexico has already placed tariffs on 90 U.S. products.
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“Pork Producers Do No Support Antibiotics Measure”
The National Pork Producers Council says the Preservation of Antibiotics for Medical Treatment Act of 2009 - introduced in the U.S. House Tuesday - would be detrimental to the health and well-being of pigs - would increase production costs and the price consumers pay for pork - and could jeopardize public health. NPPC President Don Butler called the legislation irresponsible - and said producers need access to a range of animal health products to keep pigs healthy and produce safe food products.
New York Congresswoman Louise Slaughter is the bill’s sponsor. In a teleconference Tuesday morning - she said the misuse of antibiotics in industrial farming has been directly linked to the growing number of antibiotic-resistant infections in people. But NPPC says a survey of human health experts in 2000 found that 96-percent of antibiotic resistance in humans is a result of human use of antibiotics. Slaughter also stated that 70-percent of the antibiotics produced in the U.S. go to animals that aren’t sick. NPPC - citing the Animal Health Institute - says less than five-percent of animal antibiotics are used simply for nutritional efficiency.
Dr. Jennifer Greiner - NPPC Director of Science and Technology - says pork producers have a moral obligation to use antibiotics responsibly to protect human health and provide safe food. But Greiner says producers also have an ethical obligation to maintain the health of their pigs. Programs like Pork Quality Assurance Plus and Take Care: Use Antibiotics Responsibly are in place and include principles and guidelines on antibiotic use that help protect animal and public health and animal well-being.
***************************************************************
“Farmer Mac Reports Losses”
The Federal Agricultural Mortgage Corporation or Farmer Mac reports an annual loss during 2008 of 154.1 million dollars, or 15.40 per diluted common share. During the quarter, ending December 31st, the net loss was 61.1 million or 6.03 per diluted share. These results primarily reflected fourth quarter losses on financial derivatives and provisions for losses principally related to certain of its credits in the ethanol sector and the previously announced third quarter losses on certain investments. As a result, Famer Mac’s board reduced the common stock dividend to five cents per share from its previous level of ten cents.
Farmer Mac says loans underlying the Corporation's guarantees and commitments grew to a record 10.1 billion dollars at year end and, with the exception of ethanol loans, continued to perform well during 2008. Delinquencies on non-ethanol loans have remained at near historically low levels consistent with the strength of the U.S. agricultural economy through the end of the year. Farmer Mac's 90day delinquencies, including ethanol loans, were 67.1 million and represented 1.35 percent of the portfolio, as of December 31, 2008.
Farmer Mac’s newly appointed President and chief Executive Officer, Michael Gerber, says - we have taken actions to address the difficult market dynamics that have emerged and seem likely to prevail in the time ahead. We have adjusted our funding strategies to reduce the reliance on financial derivatives that have adversely affected our capital position.
*************************************************************
“Disaster Waiver Extended”
USDA is extending until May 18th, 2009, the buy-in waiver for farmers impacted by natural disasters. The recently approved American Recovery and Reinvestment Act of 2009 allows producers to become eligible for 2008 disaster assistance even if they did not previously obtain otherwise statutorily required crop insurance from the Federal Crop Insurance Corporation or Non-insured Crop Disaster Assistance Program coverage for 2008.
Paying such a buy-in fee does not provide the producer with crop insurance or NAP for the 2008 crop year; it merely permits the producer to become eligible for the 2008-crop disaster assistance programs. Producers who meet the definition of "Socially Disadvantaged, Limited Resource," or "Beginning Farmer or Rancher," are not required to pay the buy-in fee.
And, producers who have not already taken the necessary steps to become eligible for the Supplemental Revenue Assistance Program, Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish, and the Tree Assistance program may now become eligible for such programs by May 18, 2009.
*************************************************************
“Coalition Wants Health Insurance Tax Eliminated”
The Coalition Supporting Equity for Our Nation’s Self-Employed is throwing its support behind H.R. 1470 – the Equity for Our Nation’s Self-Employed Act of 2009. If enacted, this bill would eliminate a requirement in the tax code that millions of self-employed individuals pay additional taxes on the cost of their health insurance. Organizations such as the American Farm Bureau Federation are interested in this bill as it would correct a significant error in the tax code that penalizes self-employed individuals – including farmers.
Currently, corporations can deduct the cost of health insurance premiums as a business expense and forego all payroll taxes on these expenses. The self-employed are prohibited from taking this deduction, resulting in an additional 15.3 percent tax on their health insurance premiums. Supporters of the bill say eliminating this tax would reduce the average cost of health care for the self-employed by more than 1,850 dollars annually.
***************************************************************
“NPPC On HBO Documentary”
The National Pork Producers Council points out that HBO’s documentary “Death on a Factory Farm” shows actions at a hog farm that are not condoned and, in fact, abhorred by responsible pork producers. NPPC publicly condemned the mistreatment when it originally occurred in 2006. The Council says, - for the documentary’s producers to imply the situation shown in the film is in any way typical of swine husbandry in this country is grossly unfair to the farm families who work daily to feed this country and much of the world.
During NPPC’s recent annual meeting, pork producers reaffirmed the industry’s strong support for the well-being of its animals in a statement that states, in part: The U.S. pork industry recognizes its moral and ethical obligation to provide for the responsible treatment of animals. Any willful mistreatment or neglect of animals is unacceptable. The U.S. pork industry affirms its obligation to act swiftly to end any mistreatment and to take immediate corrective actions to fully restore proper and responsible animal care.
Pork industry programs that are at the forefront include. . the Pork Quality Assurance program developed in 1989. Since then the Transport Quality Assurance, Swine Welfare Assurance, Pork Quality Assurance Plus and the We Care programs are providing producers with knowledge of animal care. The “We Care” initiative demonstrates that our responsible pork producers are dedicated to the production of safe, wholesome food while following acceptable animal well-being practices and safeguarding our natural resources.
**************************************************************
“Texas Researchers Have Advice for EPA”
A group of Texas-based researchers has provided answers for the nation’s cattle feeding industry after it was given a very short window by the U.S. Environmental Protection Agency to begin reporting ammonia and hydrogen sulfide emissions. What the researchers know is that no single number is adequate to represent a basis for an emission factor, because emissions vary with what the cattle are fed, with the season, and even with the time of day and where you are standing in the feedlot.
The findings were established on research already underway called “Air Quality: Reducing Emissions from Cattle Feedlots and Dairies,” a federally funded project headed by Dr. John Sweeten, director of the Texas AgriLife Research and Extension Center at Amarillo. According to Sweeten, - researchers found that both ammonia and hydrogen sulfide represent exceedingly low concentrations over relatively large emitting surfaces and long time scales. The annual emission numbers can add up to the low threshold values of reporting that EPA just set, but they do not reach levels of general public concern.
According to researcher Dr. Rick Todd, - Texas Panhandle feeding operations with more than one-thousand cattle could exceed the 100 pound/day reporting requirement. But the negative environmental effects of ammonia that EPA is concerned about are most likely where ammonia mixes with urban air pollution, or when ammonia is removed from the atmosphere in rain and over-fertilizes sensitive ecosystems.
*************************************************************
“No-Till Benefits Cotton Production”
The costs and benefits of using conservation tillage in cotton production can now be calculated a bit more precisely, thanks to the teamwork of an Agricultural Research Service scientist and his research partner. The findings of agricultural engineer James Hanks at the ARS Application and Production Technology Research Unit in Stoneville, Mississippi, and Mississippi State University agricultural economist Steve Martin, suggest farmers could realize the highest economic return from cotton production using no-till production.
On 2.471 acres in the Mississippi Delta, no-till averaged a net return of 1,202 dollars per acre. It had the lowest production costs because fewer trips were needed across each field for tillage or cover crop plantings. The study considered five different management systems - conventional, no-till, low-till sub-soiling, no-till with a winter wheat cover crop, and low-till subsoiling with a winter wheat cover crop.
The low-till subsoiling with a winter wheat cover crop system had the lowest net returns of any of the treatments because of lower yields relative to the other treatments. In addition, the use of cover crops and the added tillage increased production expenses. Producers who want to reduce soil erosion might also want to consider using a no-till cover crop management system. This system had the highest mean net return of the two cover crop systems in the study.
*************************************************************
When Congress passed and the President signed the spending bill last week it nixed a program that permitted U.S. and Mexico truckers to operate over the border. Safety concerns and other issues prompted the move. Now, White House spokesman Robert Gibbs is quoted as saying the administration wants to work with Congress to restore that program.
According to AP, the Mexican Economy Department argues the U.S. Congress's decision to do away with the program violates the North American Free Trade Agreement, and will affect some 2.4 billion dollars in trade with 40 U.S. states. Mexico has already placed tariffs on 90 U.S. products.
***************************************************************
“Pork Producers Do No Support Antibiotics Measure”
The National Pork Producers Council says the Preservation of Antibiotics for Medical Treatment Act of 2009 - introduced in the U.S. House Tuesday - would be detrimental to the health and well-being of pigs - would increase production costs and the price consumers pay for pork - and could jeopardize public health. NPPC President Don Butler called the legislation irresponsible - and said producers need access to a range of animal health products to keep pigs healthy and produce safe food products.
New York Congresswoman Louise Slaughter is the bill’s sponsor. In a teleconference Tuesday morning - she said the misuse of antibiotics in industrial farming has been directly linked to the growing number of antibiotic-resistant infections in people. But NPPC says a survey of human health experts in 2000 found that 96-percent of antibiotic resistance in humans is a result of human use of antibiotics. Slaughter also stated that 70-percent of the antibiotics produced in the U.S. go to animals that aren’t sick. NPPC - citing the Animal Health Institute - says less than five-percent of animal antibiotics are used simply for nutritional efficiency.
Dr. Jennifer Greiner - NPPC Director of Science and Technology - says pork producers have a moral obligation to use antibiotics responsibly to protect human health and provide safe food. But Greiner says producers also have an ethical obligation to maintain the health of their pigs. Programs like Pork Quality Assurance Plus and Take Care: Use Antibiotics Responsibly are in place and include principles and guidelines on antibiotic use that help protect animal and public health and animal well-being.
***************************************************************
“Farmer Mac Reports Losses”
The Federal Agricultural Mortgage Corporation or Farmer Mac reports an annual loss during 2008 of 154.1 million dollars, or 15.40 per diluted common share. During the quarter, ending December 31st, the net loss was 61.1 million or 6.03 per diluted share. These results primarily reflected fourth quarter losses on financial derivatives and provisions for losses principally related to certain of its credits in the ethanol sector and the previously announced third quarter losses on certain investments. As a result, Famer Mac’s board reduced the common stock dividend to five cents per share from its previous level of ten cents.
Farmer Mac says loans underlying the Corporation's guarantees and commitments grew to a record 10.1 billion dollars at year end and, with the exception of ethanol loans, continued to perform well during 2008. Delinquencies on non-ethanol loans have remained at near historically low levels consistent with the strength of the U.S. agricultural economy through the end of the year. Farmer Mac's 90day delinquencies, including ethanol loans, were 67.1 million and represented 1.35 percent of the portfolio, as of December 31, 2008.
Farmer Mac’s newly appointed President and chief Executive Officer, Michael Gerber, says - we have taken actions to address the difficult market dynamics that have emerged and seem likely to prevail in the time ahead. We have adjusted our funding strategies to reduce the reliance on financial derivatives that have adversely affected our capital position.
*************************************************************
“Disaster Waiver Extended”
USDA is extending until May 18th, 2009, the buy-in waiver for farmers impacted by natural disasters. The recently approved American Recovery and Reinvestment Act of 2009 allows producers to become eligible for 2008 disaster assistance even if they did not previously obtain otherwise statutorily required crop insurance from the Federal Crop Insurance Corporation or Non-insured Crop Disaster Assistance Program coverage for 2008.
Paying such a buy-in fee does not provide the producer with crop insurance or NAP for the 2008 crop year; it merely permits the producer to become eligible for the 2008-crop disaster assistance programs. Producers who meet the definition of "Socially Disadvantaged, Limited Resource," or "Beginning Farmer or Rancher," are not required to pay the buy-in fee.
And, producers who have not already taken the necessary steps to become eligible for the Supplemental Revenue Assistance Program, Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish, and the Tree Assistance program may now become eligible for such programs by May 18, 2009.
*************************************************************
“Coalition Wants Health Insurance Tax Eliminated”
The Coalition Supporting Equity for Our Nation’s Self-Employed is throwing its support behind H.R. 1470 – the Equity for Our Nation’s Self-Employed Act of 2009. If enacted, this bill would eliminate a requirement in the tax code that millions of self-employed individuals pay additional taxes on the cost of their health insurance. Organizations such as the American Farm Bureau Federation are interested in this bill as it would correct a significant error in the tax code that penalizes self-employed individuals – including farmers.
Currently, corporations can deduct the cost of health insurance premiums as a business expense and forego all payroll taxes on these expenses. The self-employed are prohibited from taking this deduction, resulting in an additional 15.3 percent tax on their health insurance premiums. Supporters of the bill say eliminating this tax would reduce the average cost of health care for the self-employed by more than 1,850 dollars annually.
***************************************************************
“NPPC On HBO Documentary”
The National Pork Producers Council points out that HBO’s documentary “Death on a Factory Farm” shows actions at a hog farm that are not condoned and, in fact, abhorred by responsible pork producers. NPPC publicly condemned the mistreatment when it originally occurred in 2006. The Council says, - for the documentary’s producers to imply the situation shown in the film is in any way typical of swine husbandry in this country is grossly unfair to the farm families who work daily to feed this country and much of the world.
During NPPC’s recent annual meeting, pork producers reaffirmed the industry’s strong support for the well-being of its animals in a statement that states, in part: The U.S. pork industry recognizes its moral and ethical obligation to provide for the responsible treatment of animals. Any willful mistreatment or neglect of animals is unacceptable. The U.S. pork industry affirms its obligation to act swiftly to end any mistreatment and to take immediate corrective actions to fully restore proper and responsible animal care.
Pork industry programs that are at the forefront include. . the Pork Quality Assurance program developed in 1989. Since then the Transport Quality Assurance, Swine Welfare Assurance, Pork Quality Assurance Plus and the We Care programs are providing producers with knowledge of animal care. The “We Care” initiative demonstrates that our responsible pork producers are dedicated to the production of safe, wholesome food while following acceptable animal well-being practices and safeguarding our natural resources.
**************************************************************
“Texas Researchers Have Advice for EPA”
A group of Texas-based researchers has provided answers for the nation’s cattle feeding industry after it was given a very short window by the U.S. Environmental Protection Agency to begin reporting ammonia and hydrogen sulfide emissions. What the researchers know is that no single number is adequate to represent a basis for an emission factor, because emissions vary with what the cattle are fed, with the season, and even with the time of day and where you are standing in the feedlot.
The findings were established on research already underway called “Air Quality: Reducing Emissions from Cattle Feedlots and Dairies,” a federally funded project headed by Dr. John Sweeten, director of the Texas AgriLife Research and Extension Center at Amarillo. According to Sweeten, - researchers found that both ammonia and hydrogen sulfide represent exceedingly low concentrations over relatively large emitting surfaces and long time scales. The annual emission numbers can add up to the low threshold values of reporting that EPA just set, but they do not reach levels of general public concern.
According to researcher Dr. Rick Todd, - Texas Panhandle feeding operations with more than one-thousand cattle could exceed the 100 pound/day reporting requirement. But the negative environmental effects of ammonia that EPA is concerned about are most likely where ammonia mixes with urban air pollution, or when ammonia is removed from the atmosphere in rain and over-fertilizes sensitive ecosystems.
*************************************************************
“No-Till Benefits Cotton Production”
The costs and benefits of using conservation tillage in cotton production can now be calculated a bit more precisely, thanks to the teamwork of an Agricultural Research Service scientist and his research partner. The findings of agricultural engineer James Hanks at the ARS Application and Production Technology Research Unit in Stoneville, Mississippi, and Mississippi State University agricultural economist Steve Martin, suggest farmers could realize the highest economic return from cotton production using no-till production.
On 2.471 acres in the Mississippi Delta, no-till averaged a net return of 1,202 dollars per acre. It had the lowest production costs because fewer trips were needed across each field for tillage or cover crop plantings. The study considered five different management systems - conventional, no-till, low-till sub-soiling, no-till with a winter wheat cover crop, and low-till subsoiling with a winter wheat cover crop.
The low-till subsoiling with a winter wheat cover crop system had the lowest net returns of any of the treatments because of lower yields relative to the other treatments. In addition, the use of cover crops and the added tillage increased production expenses. Producers who want to reduce soil erosion might also want to consider using a no-till cover crop management system. This system had the highest mean net return of the two cover crop systems in the study.
*************************************************************
Tuesday's Headlines
“Obama Lifts Food Safety Profile”
Saturday, during his weekly radio address, President Obama boosted the profile of the food safety issue by saying he would appoint a new working group to produce legislative recommendations for overhauling food safety laws - as soon as possible. Congressional food safety advocates say they are optimistic that President Obama’s endorsement of their cause will breathe life into efforts that have remained stalled.
There are several food safety proposals now being discussed in Congress that share several components. They would: 1/ require food manufacturers to design a safety plan outlining preventive controls; 2/ empower the FDA to order recalls when food companies do not voluntarily withdraw tainted products; and 3/ work to establish methods for tracking products back to their sources in the event of an outbreak of food-borne illnesses.
Representative Bart Stupak of Michigan is chairman of the House Energy and Commerce Oversight and Investigations Subcommittee. He says - it’s no longer a matter of if the Food and Drug Administration will be reformed, but rather a matter of when and how.
**************************************************************
“Interior Dept. to Let 40 Major Energy Leases”
Secretary of the Interior Ken Salazar says his department will hold more than 40 major lease sales for oil and natural gas development on public lands this year. Those sales are expected to generate hundreds of millions of dollars in revenue for American taxpayers as well as billions of barrels of oil and trillions of cubic feet of natural gas to help meet the nation’s energy needs. Salazar is also establishing the development of renewable and alternative energy sources on U.S. public lands as a Departmental priority.
While making the announcement, Salazar said - oil, natural gas, and coal will play an important role in meeting our nation’s energy needs for many years to come. But, he added, our long-term economic, environmental, and national security depends on our ability to lead the clean energy revolution. Salazar emphasized, - our traditional energy resources are a bridge to our clean-energy economy of the future.
Salazar will lay out his plan before the Senate Energy and Natural Resources Committee Tuesday morning. Then on Thursday he will meet with the board of directors of the American Petroleum Institute, including the CEO’s of America’s largest oil companies. He says - my message to them will be simple: they are, and will remain, an important part of our energy future. We need to work together on common sense solutions to the energy challenges we face.
***************************************************************
“Senators Warn EPA About Making Assumptions”
A bipartisan group of 12 U.S. Senators wants the Environmental Protection Agency not to propose regulations that assume greater U.S. biofuels use would increase carbon dioxide emissions. In a letter sent to EPA Administrator Lisa Jackson, the Senators recommend that EPA refrain from including calculations of the effects of indirect land use changes in their rulemaking at this time. They say - such calculations could make it harder for ethanol and biodiesel to meet requirements of the Energy Independence and Security Act of 2007 for reduced carbon emissions.
The law requires biofuels to meet certain life-cycle greenhouse gas emission caps in order to qualify for the RFS. And, it specifies that those life-cycle greenhouse gas emissions are to include the effects of indirect land use changes. The Senators say - the ability to calculate future indirect land use changes resulting from production of biofuels is very limited by the lack of both proven and accepted land use models and sufficient information about input data.
One of the Senators, Chuck Grassley of Iowa, says - it defies common sense that EPA would publish a proposed rulemaking with harmful conclusions for biofuels based on incomplete science and inaccurate assumptions. Tom Harkin of Iowa also signed the letter. He says - the Renewable Fuel Standard is essential to breaking our over-dependence on oil. To do that, we need new domestic fuels as well as new vehicle technologies.
**************************************************************
“Gensler Nomination Headed to Full Senate After Ag Vote”
The Senate Ag Committee voted Monday on the nomination of Gary Gensler as Chairman of the Commodity Futures Trading Commission. The committee approved the nomination by a roll-call vote - clearing the way for a full Senate vote. Gensler is a former Goldman Sachs executive. Chairman Tom Harkin said after the vote that the nation’s financial system needs a stronger and more effective regulatory scheme. He said the current economic crisis makes that painfully clear. And he said an effective leader is needed at the CFTC. According to Harkin - Gensler responded to all questions at his confirmation hearing carefully and knowledgeably. Harkin said he’s hopeful Gensler will lead effectively in reforming and restoring regulation of trading in futures and other derivatives contracts.
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“NCBA Steps Away From Coalition”
The Food Before Fuel Coalition has one less member. The National Cattlemen's Beef Association has withdrawn its membership in the Coalition. NCBA wants to concentrate its efforts on eliminating government intervention in the renewable energy market. NCBA President Gary Voogt says the Coalition has helped to raise awareness about the harmful impacts of the government's excessive subsidization of the ethanol industry. But, - as the Coalition's work broadens, we remain focused on a single goal: ensuring a level playing field for our cattle producers.
There are three government programs NCBA wants to change: the renewable fuels mandate, the blender's tax credit and the import tariff. The organization continues to support the development of renewable energy sources as long as they don't rely on feed for livestock.
Since January of 2008, cattle feeders have lost four-billion dollars due to high feed costs. Soaring feed costs and government payments to the ethanol industry are hurting small businesses and family ranches, and according to Voogt - cattle producers don't ask for subsidies, just equal footing.
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“Coalition to USTR: Defend COOL”
As the mandatory country-of-origin labeling law went into effect Monday, a dozen agriculture organizations announced they have joined forces to request the U.S. Trade Representative to urgently defend the mandatory COOL law. In December 2008, both Mexico and Canada filed complaints against the U.S. COOL law, claiming it violates World Trade Organization obligations. R-CALF USD CEO Bill Bullard says - we expect USTR to protect U.S. consumers by successfully defending COOL against any and all challenges.
Bullard said – it is unbelievably arrogant that Canada and Mexico believe they should be allowed to override the will of U.S. consumers – consumers who deserve the right to know where the food comes from that they feed their families. He added - this challenge, by two of our closest trading partners, undermines key trade policy objectives of the Obama Administration. Bullard adds - defending these rules would reaffirm the President’s long-standing commitment to COOL.
The organizations making up this COOL coalition are : R-CALF USA; the Coalition for a Prosperous America; the Consumer Federation of America; Food & Water Watch; the Institute for Agriculture & Trade Policy; Iowa Citizens for Community Improvement; the Missouri Rural Crisis Center; the National Family Farm Coalition; the National Farmers Union; the Organization for Competitive Markets; Public Citizen; Rural Advancement Foundation International—USA; and, the Western Organization of Resource Councils.
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“Beef Exports Strong”
While the success of exporting U.S. pork has been well documented, beef exports have also been strong. Beef export numbers from January reveal beef muscle cut exports jumped 13 percent in volume and 15 percent in value – about 186.5-million dollars, compared to a year earlier. With beef variety meat exports down in both volume and value, total beef plus beef variety meat exports were up 4 percent in value to 233-million dollars.
USMEF President and CEO Philip Seng says this is – very gratifying, especially in the face of so much economic uncertainty. Seng adds - even with overseas consumers constricting their spending in many areas, they recognize the quality, consistency and affordable value delivered by U.S. beef.
Despite a decline in exports to both countries, Mexico and Canada remained the top two destinations for U.S. beef in January, combining to account for 56 percent of the value and 54 percent of the volume worldwide. South Korea emerged as the third-largest market in January with imports valued at 27.6 million, about 20 percent higher than the previous month.
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“Stop a Water Leak Week”
As winter turns into spring, water supplies on the farm spring leaks. Or at least the leaks are more obvious. And as nasty as the job can get they must be repaired. To that end the Environmental Protection Agency has declared this “Fix a Leak Week” to encourage water efficiency.
The EPA says minor water leaks account for more than one-trillion gallons of water wasted each year, just in U.S. homes. Not to mention the losses in feeding lots.
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Saturday, during his weekly radio address, President Obama boosted the profile of the food safety issue by saying he would appoint a new working group to produce legislative recommendations for overhauling food safety laws - as soon as possible. Congressional food safety advocates say they are optimistic that President Obama’s endorsement of their cause will breathe life into efforts that have remained stalled.
There are several food safety proposals now being discussed in Congress that share several components. They would: 1/ require food manufacturers to design a safety plan outlining preventive controls; 2/ empower the FDA to order recalls when food companies do not voluntarily withdraw tainted products; and 3/ work to establish methods for tracking products back to their sources in the event of an outbreak of food-borne illnesses.
Representative Bart Stupak of Michigan is chairman of the House Energy and Commerce Oversight and Investigations Subcommittee. He says - it’s no longer a matter of if the Food and Drug Administration will be reformed, but rather a matter of when and how.
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“Interior Dept. to Let 40 Major Energy Leases”
Secretary of the Interior Ken Salazar says his department will hold more than 40 major lease sales for oil and natural gas development on public lands this year. Those sales are expected to generate hundreds of millions of dollars in revenue for American taxpayers as well as billions of barrels of oil and trillions of cubic feet of natural gas to help meet the nation’s energy needs. Salazar is also establishing the development of renewable and alternative energy sources on U.S. public lands as a Departmental priority.
While making the announcement, Salazar said - oil, natural gas, and coal will play an important role in meeting our nation’s energy needs for many years to come. But, he added, our long-term economic, environmental, and national security depends on our ability to lead the clean energy revolution. Salazar emphasized, - our traditional energy resources are a bridge to our clean-energy economy of the future.
Salazar will lay out his plan before the Senate Energy and Natural Resources Committee Tuesday morning. Then on Thursday he will meet with the board of directors of the American Petroleum Institute, including the CEO’s of America’s largest oil companies. He says - my message to them will be simple: they are, and will remain, an important part of our energy future. We need to work together on common sense solutions to the energy challenges we face.
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“Senators Warn EPA About Making Assumptions”
A bipartisan group of 12 U.S. Senators wants the Environmental Protection Agency not to propose regulations that assume greater U.S. biofuels use would increase carbon dioxide emissions. In a letter sent to EPA Administrator Lisa Jackson, the Senators recommend that EPA refrain from including calculations of the effects of indirect land use changes in their rulemaking at this time. They say - such calculations could make it harder for ethanol and biodiesel to meet requirements of the Energy Independence and Security Act of 2007 for reduced carbon emissions.
The law requires biofuels to meet certain life-cycle greenhouse gas emission caps in order to qualify for the RFS. And, it specifies that those life-cycle greenhouse gas emissions are to include the effects of indirect land use changes. The Senators say - the ability to calculate future indirect land use changes resulting from production of biofuels is very limited by the lack of both proven and accepted land use models and sufficient information about input data.
One of the Senators, Chuck Grassley of Iowa, says - it defies common sense that EPA would publish a proposed rulemaking with harmful conclusions for biofuels based on incomplete science and inaccurate assumptions. Tom Harkin of Iowa also signed the letter. He says - the Renewable Fuel Standard is essential to breaking our over-dependence on oil. To do that, we need new domestic fuels as well as new vehicle technologies.
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“Gensler Nomination Headed to Full Senate After Ag Vote”
The Senate Ag Committee voted Monday on the nomination of Gary Gensler as Chairman of the Commodity Futures Trading Commission. The committee approved the nomination by a roll-call vote - clearing the way for a full Senate vote. Gensler is a former Goldman Sachs executive. Chairman Tom Harkin said after the vote that the nation’s financial system needs a stronger and more effective regulatory scheme. He said the current economic crisis makes that painfully clear. And he said an effective leader is needed at the CFTC. According to Harkin - Gensler responded to all questions at his confirmation hearing carefully and knowledgeably. Harkin said he’s hopeful Gensler will lead effectively in reforming and restoring regulation of trading in futures and other derivatives contracts.
**************************************************************
“NCBA Steps Away From Coalition”
The Food Before Fuel Coalition has one less member. The National Cattlemen's Beef Association has withdrawn its membership in the Coalition. NCBA wants to concentrate its efforts on eliminating government intervention in the renewable energy market. NCBA President Gary Voogt says the Coalition has helped to raise awareness about the harmful impacts of the government's excessive subsidization of the ethanol industry. But, - as the Coalition's work broadens, we remain focused on a single goal: ensuring a level playing field for our cattle producers.
There are three government programs NCBA wants to change: the renewable fuels mandate, the blender's tax credit and the import tariff. The organization continues to support the development of renewable energy sources as long as they don't rely on feed for livestock.
Since January of 2008, cattle feeders have lost four-billion dollars due to high feed costs. Soaring feed costs and government payments to the ethanol industry are hurting small businesses and family ranches, and according to Voogt - cattle producers don't ask for subsidies, just equal footing.
*************************************************************
“Coalition to USTR: Defend COOL”
As the mandatory country-of-origin labeling law went into effect Monday, a dozen agriculture organizations announced they have joined forces to request the U.S. Trade Representative to urgently defend the mandatory COOL law. In December 2008, both Mexico and Canada filed complaints against the U.S. COOL law, claiming it violates World Trade Organization obligations. R-CALF USD CEO Bill Bullard says - we expect USTR to protect U.S. consumers by successfully defending COOL against any and all challenges.
Bullard said – it is unbelievably arrogant that Canada and Mexico believe they should be allowed to override the will of U.S. consumers – consumers who deserve the right to know where the food comes from that they feed their families. He added - this challenge, by two of our closest trading partners, undermines key trade policy objectives of the Obama Administration. Bullard adds - defending these rules would reaffirm the President’s long-standing commitment to COOL.
The organizations making up this COOL coalition are : R-CALF USA; the Coalition for a Prosperous America; the Consumer Federation of America; Food & Water Watch; the Institute for Agriculture & Trade Policy; Iowa Citizens for Community Improvement; the Missouri Rural Crisis Center; the National Family Farm Coalition; the National Farmers Union; the Organization for Competitive Markets; Public Citizen; Rural Advancement Foundation International—USA; and, the Western Organization of Resource Councils.
***************************************************************
“Beef Exports Strong”
While the success of exporting U.S. pork has been well documented, beef exports have also been strong. Beef export numbers from January reveal beef muscle cut exports jumped 13 percent in volume and 15 percent in value – about 186.5-million dollars, compared to a year earlier. With beef variety meat exports down in both volume and value, total beef plus beef variety meat exports were up 4 percent in value to 233-million dollars.
USMEF President and CEO Philip Seng says this is – very gratifying, especially in the face of so much economic uncertainty. Seng adds - even with overseas consumers constricting their spending in many areas, they recognize the quality, consistency and affordable value delivered by U.S. beef.
Despite a decline in exports to both countries, Mexico and Canada remained the top two destinations for U.S. beef in January, combining to account for 56 percent of the value and 54 percent of the volume worldwide. South Korea emerged as the third-largest market in January with imports valued at 27.6 million, about 20 percent higher than the previous month.
****************************************************************
“Stop a Water Leak Week”
As winter turns into spring, water supplies on the farm spring leaks. Or at least the leaks are more obvious. And as nasty as the job can get they must be repaired. To that end the Environmental Protection Agency has declared this “Fix a Leak Week” to encourage water efficiency.
The EPA says minor water leaks account for more than one-trillion gallons of water wasted each year, just in U.S. homes. Not to mention the losses in feeding lots.
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