EPA is seeking public comments on a waiver application to increase the amount of ethanol that can be blended into a gallon of gasoline to up to 15 volume percent. Since 1978, the limit has been at ten volume percent ethanol for conventional non flex-fuel vehicles. The comment period will be open for 30 days after the notice is published in the Federal Register on April 22nd.
The waiver application is a result of applications submitted by Growth Energy and 54 ethanol manufacturers on March 6, 2009. Current statute calls for EPA to make a decision within 270 days of receipt, which is December 1, 2009. Growth Energy CEO Tom Buis emphasizes - this country can’t move forward to the next generation of biofuels without a marketplace - and the marketplace is currently capped out because of the blend wall.
Iowa Senator Tom Harkin, Chairman of the Senate Ag Committee, was quick to respond. Harkin said - increasing ethanol blend levels can help decrease our dependence on foreign oil and create new ‘green’ jobs across the country.
Once the decision is made to increase the blend wall for ethanol to 15 percent, it is believed companies with an interest in cellulosic production will move forward with their investments.
Friday, April 17, 2009
Organizations Review CBO Report
Officials from several agricultural organizations have thoroughly studied a report released last week by the Congressional Budget Office. That report proved that higher energy costs have a greater effect on food prices than the use of renewable ethanol fuel. AFBF President Bob Stallman said the report came as no surprise. He said there are numerous factors responsible for higher food prices, including labor expenses, energy costs, financial speculation, increased demand, weather production losses and the weak U.S. dollar.
National Corn Growers Association CEO Rick Tolman pointed out that - opponents of biofuels promote a simplistic message that taking more from the pie for ethanol leaves less for food and feed. Tolman says - the reality is that the pie is getting bigger and more can go for ethanol without taking away corn from food and feed. It is not a zero-sum game.
According to the Agriculture Department, farmers receive less than two dimes out of every dollar spent for food in the United States. Eighty percent of the costs of food, including processing, transportation, packaging, distribution and retailing are all added after the commodity leaves the farm.
The CBO report states that increased ethanol production caused a mere 0.5 and 0.8 percentage point increase in the price of food between April 2007 and April 2008. National Farmers Union President Roger Johnson said NFU is - again calling for Congress to reconvene hearings to investigate higher retail food prices; while commodity prices have tanked since last summer's peak, grocery store prices remain high.
National Corn Growers Association CEO Rick Tolman pointed out that - opponents of biofuels promote a simplistic message that taking more from the pie for ethanol leaves less for food and feed. Tolman says - the reality is that the pie is getting bigger and more can go for ethanol without taking away corn from food and feed. It is not a zero-sum game.
According to the Agriculture Department, farmers receive less than two dimes out of every dollar spent for food in the United States. Eighty percent of the costs of food, including processing, transportation, packaging, distribution and retailing are all added after the commodity leaves the farm.
The CBO report states that increased ethanol production caused a mere 0.5 and 0.8 percentage point increase in the price of food between April 2007 and April 2008. National Farmers Union President Roger Johnson said NFU is - again calling for Congress to reconvene hearings to investigate higher retail food prices; while commodity prices have tanked since last summer's peak, grocery store prices remain high.
Secretary Going to G8 Meeting
As he prepared to participate in the three-day Group of Eight Agricultural Ministerial which begins this Saturday in Treviso, Italy, Secretary of Agriculture Tom Vilsack said agriculture is key to strengthening the global economy. - Agriculture is the foundation on which recovery from the global recession and financial and food price crisis will be built, especially for developing countries, which derive much of their income from agricultural production. Vilsack added, - given the magnitude of these issues, we must work together to ensure food security and economic prosperity for all.
The G8 Agricultural Ministerial is comprised of top agriculture leaders from Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States. It is one of nine separately planned ministerial-level meetings delineated by function, including agriculture, development, finance and labor.
Others expected to attend include: agriculture leaders from Argentina, Australia, Brazil, China, the Czech Republic, Egypt, India, Mexico, and South Africa; as well as the European Union's Commissioner of Agriculture and leaders of the African Union, World Bank, the World Food Program, the International Fund for Agricultural Development, Organization for Economic Cooperation and Development, and the Food and Agriculture Organization.
The G8 Agricultural Ministerial is comprised of top agriculture leaders from Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States. It is one of nine separately planned ministerial-level meetings delineated by function, including agriculture, development, finance and labor.
Others expected to attend include: agriculture leaders from Argentina, Australia, Brazil, China, the Czech Republic, Egypt, India, Mexico, and South Africa; as well as the European Union's Commissioner of Agriculture and leaders of the African Union, World Bank, the World Food Program, the International Fund for Agricultural Development, Organization for Economic Cooperation and Development, and the Food and Agriculture Organization.
Germany Pulls Authorization of GMO Corn
The German agriculture minister has moved to protect consumers and the environment by banning the only genetically modified strain of corn grown in the European Union. Ilse Aigner says – there is justifiable reason to believe that genetically modified maize of the type MON 810 presents a danger to the environment.
The corn was engineered to resist pest and was approved for cultivation in Europe more than a decade ago. Kari Matalone, a spokeswoman for Monsanto, says - no ill effects have been detected since then. She added, - we don’t really understand where this decision is coming from. The German agriculture minister is quick you point out that this move - would not represent a blanket ban on genetically modified crops.
Skepticism among consumers about the safety of genetically modified products and about their effect on the environment has made Europe one of the most difficult markets for Monsanto and for other makers of such crops.
The corn was engineered to resist pest and was approved for cultivation in Europe more than a decade ago. Kari Matalone, a spokeswoman for Monsanto, says - no ill effects have been detected since then. She added, - we don’t really understand where this decision is coming from. The German agriculture minister is quick you point out that this move - would not represent a blanket ban on genetically modified crops.
Skepticism among consumers about the safety of genetically modified products and about their effect on the environment has made Europe one of the most difficult markets for Monsanto and for other makers of such crops.
USDA Still Asking Questions About Animal Identification
Wednesday in Washington, Secretary of Agriculture Tom Vilsack held a roundtable discussion with a variety of stakeholders on the National Animal Identification System. The event kicks off a listening tour to gather feedback and input that will assist the Secretary in making decisions about the future direction of animal identification and traceability in the United States. USDA not only heard stakeholders concerns but potential or feasible solutions to those concerns.
Secretary Vilsack says, - many of the issues and concerns that were initially raised by producers, such as the cost, impact on small farmers, privacy and confidentiality and liability, continue to cause debate. He added, - we need to work collaboratively to resolve concerns and move forward with animal traceability.
The listening tour will seek input from communities throughout the country. And, in the coming weeks, USDA's Animal and Plant Health Inspection Service will also publish a notice in the Federal Register to request input.
Secretary Vilsack says, - many of the issues and concerns that were initially raised by producers, such as the cost, impact on small farmers, privacy and confidentiality and liability, continue to cause debate. He added, - we need to work collaboratively to resolve concerns and move forward with animal traceability.
The listening tour will seek input from communities throughout the country. And, in the coming weeks, USDA's Animal and Plant Health Inspection Service will also publish a notice in the Federal Register to request input.
Nebraska Has First Ethanol Blender Pumps
Grand Island, Nebraska is the home of that state’s first ethanol blender pumps. The new blender pumps combine ethanol and ordinary unleaded gasoline at various rates to offer a wide variety of fuel choices—from ordinary 87-octane unleaded gasoline and 89-octane E10 Unleaded 10 percent ethanol—as well as higher ethanol blends targeted to owners of flexible fuel vehicles including E20, E30 and E85.
John Holzfaster, chairman of the Nebraska Corn Board, says - higher blends of ethanol are key to realizing the full benefits of this domestically produced, renewable fuel. The more flex fuel vehicles we have—and the higher blends of ethanol available across the nation—the more we generate economic strength for our entire nation, reduce our expensive and dangerous dependence on imported oil, and improve our environment.
John Holzfaster, chairman of the Nebraska Corn Board, says - higher blends of ethanol are key to realizing the full benefits of this domestically produced, renewable fuel. The more flex fuel vehicles we have—and the higher blends of ethanol available across the nation—the more we generate economic strength for our entire nation, reduce our expensive and dangerous dependence on imported oil, and improve our environment.
Call Made to Implement New Feed Ban Rules
R-CALF USA has asked the Food and Drug Administration to immediately reverse its plan to delay implementation of the enhanced feed ban while higher-risk Canadian cattle continue to enter the United States. R-CALF USA President/Region VI Director Max Thornsberry charged USDA - acted recklessly and irresponsibly by allowing higher-risk Canadian cattle to enter the United States even before the U.S. implemented such basic measures as an enhanced feed ban.
The current U.S. feed ban, according to R-CALF USA, is weaker than the feed ban initially implemented in Canada and is insufficient to halt the spread of Canada’s level of BSE effectively. Thornsberry says – under present circumstances, the U.S. remains exposed to a heightened BSE risk from Canadian cattle.
USDA wants to put off for 60 days the implementation of new rule that, R-CALF USA calls stronger that the present Canadian rules, designed to control BSE.
The current U.S. feed ban, according to R-CALF USA, is weaker than the feed ban initially implemented in Canada and is insufficient to halt the spread of Canada’s level of BSE effectively. Thornsberry says – under present circumstances, the U.S. remains exposed to a heightened BSE risk from Canadian cattle.
USDA wants to put off for 60 days the implementation of new rule that, R-CALF USA calls stronger that the present Canadian rules, designed to control BSE.
Wednesday, April 15, 2009
Russia Shuffles Eligible U.S. Pork Plants
Russia has de-listed three U.S. pork plants, deeming them ineligible to export to the country. The problem again appears to be paperwork. Officials told FSIS there were issues with export certificates. U.S. officials are waiting for more information.
The de-listed plants, and unable to export pork product to Russia after April 20th are: a John Morrell plant in Sioux Falls, South Dakota and two Cloverleaf Cold Storage facilities in Sioux City, Iowa.
Meanwhile, Russian officials have re-listed four U.S. pork facilities that had been banned in February. Those facilities are: the facilities of Smithfield Packing Company and Carolina Cold Storage, both in Tar Heel, North Carolina, Millard Refrigerated Services in Edwardsville, Kansas and Berkshire Refrigerated in Chicago, Illinois.
The de-listed plants, and unable to export pork product to Russia after April 20th are: a John Morrell plant in Sioux Falls, South Dakota and two Cloverleaf Cold Storage facilities in Sioux City, Iowa.
Meanwhile, Russian officials have re-listed four U.S. pork facilities that had been banned in February. Those facilities are: the facilities of Smithfield Packing Company and Carolina Cold Storage, both in Tar Heel, North Carolina, Millard Refrigerated Services in Edwardsville, Kansas and Berkshire Refrigerated in Chicago, Illinois.
AFBF Happy With First Cuban Step
The President of the American Farm Bureau Federation says. - the White House’s decision this week to ease travel for Cuban Americans and relax financial restrictions to Cuba is one step closer to easing all trade restrictions with the country. Bob Stallman said, - we are very encouraged by President Obama’s actions. In this step-by-step process, the Farm Bureau would also like the administration to consider agriculture provisions.
Stallman says, - by allowing travel on a general license for those making agricultural sales to Cuba, rather than the specific license currently needed, would significantly impact the ability to transact commercial sales with Cuba.
Other AFBF priorities include commercially defining ‘cash payments in advance; allowing the country to directly wire payment to U.S. banks; and allowing Cuban inspectors to travel to the U.S. to meet with suppliers, inspect facilities and verify procedures and standards associated with the sale of U.S. food and agricultural exports to Cuba.
Stallman says, - by allowing travel on a general license for those making agricultural sales to Cuba, rather than the specific license currently needed, would significantly impact the ability to transact commercial sales with Cuba.
Other AFBF priorities include commercially defining ‘cash payments in advance; allowing the country to directly wire payment to U.S. banks; and allowing Cuban inspectors to travel to the U.S. to meet with suppliers, inspect facilities and verify procedures and standards associated with the sale of U.S. food and agricultural exports to Cuba.
Farm Bureau Addresses Climate Change Issues
The House Agriculture Committee has asked farm groups to complete a 29-question survey prior to hearings to be held on climate change. In reply, the American Farm Bureau Federation said it supports a market-based incentive program rather than a government-mandated program.
In the questionnaire, AFBF President Bob Stallman emphasized that Congress should not enact legislation mandating carbon emission reductions to levels not justified by sound, peer-reviewed science and that any legislation designed to reduce carbon emissions must make sure the costs don’t outweigh the benefits. Stallman said, - Congress should not enact a carbon tax, and a cap-and-trade program should be voluntary.
Stallman also said, - agriculture and forestry should not be regulated or capped under a carbon-reduction program. He said, - capping or taxing agriculture or forestry will only limit the potential sequestration benefits those sectors can provide. He pointed out - the relatively small amount of agricultural and forestry emissions come from thousands of producers, making any cap or tax difficult to administer and enforce.
In the questionnaire, AFBF President Bob Stallman emphasized that Congress should not enact legislation mandating carbon emission reductions to levels not justified by sound, peer-reviewed science and that any legislation designed to reduce carbon emissions must make sure the costs don’t outweigh the benefits. Stallman said, - Congress should not enact a carbon tax, and a cap-and-trade program should be voluntary.
Stallman also said, - agriculture and forestry should not be regulated or capped under a carbon-reduction program. He said, - capping or taxing agriculture or forestry will only limit the potential sequestration benefits those sectors can provide. He pointed out - the relatively small amount of agricultural and forestry emissions come from thousands of producers, making any cap or tax difficult to administer and enforce.
Tuesday, April 14, 2009
President Loosens Some Cuban Related Controls
President Obama has directed his administration’s leadership to allow unlimited travel and money transfers by Cuban Americans to family in Cuba. But, administration officials say the President will keep the decades-old U.S. trade embargo, arguing the policy provides leverage to pressure the Castro regime to free all political prisoners. That move would be seen as one step toward normalized relations with the United States and Cuba.
Other steps taken by the Obama Administration expands the list if items allowed in gift parcels being sent to Cuba. The items include clothes, personal hygiene items, seeds, fishing gear and other personal necessities. The administration also will begin issuing licenses to allow telecommunications and other companies to provide cell and television services to the people on the island.
Other steps taken by the Obama Administration expands the list if items allowed in gift parcels being sent to Cuba. The items include clothes, personal hygiene items, seeds, fishing gear and other personal necessities. The administration also will begin issuing licenses to allow telecommunications and other companies to provide cell and television services to the people on the island.
Court Protects NAIS Records
A federal court has ruled that records collected under the National Animal Identification System will be protected by the U.S. Privacy Act. This decision means sensitive information about producers' premises; businesses and animals will be exempt from disclosure under the Freedom of Information Act.
Colin Woodall, Executive Director of Legislative Affairs for the National Cattlemen’s Beef Association, said - it is important that our producers can trust that confidential business information will be protected from Freedom of Information Act requests. Nevertheless, Woodall pointed out - this decision can be appealed, and we will be closely monitoring that to ensure that producers' privacy rights are upheld.
Colin Woodall, Executive Director of Legislative Affairs for the National Cattlemen’s Beef Association, said - it is important that our producers can trust that confidential business information will be protected from Freedom of Information Act requests. Nevertheless, Woodall pointed out - this decision can be appealed, and we will be closely monitoring that to ensure that producers' privacy rights are upheld.
India Balking on Carbon Sequestration
While the world’s developed countries push for a form of carbon sequestration, the more undeveloped nations, such as India, are not likely to participate in a significant reduction of carbon emissions. In fact, Indian officials have said it was unlikely they would agree to binding emission cuts. One Indian official recently said, - it is morally wrong for us to agree to reduce when 40 percent of Indians do not have access to electricity.
In India the choice is simple. Pursue urgently needed economic growth to reduce poverty or address climate change. India has repeatedly said it will not compromise on growth by committing to emission reduction goals set by developed nations, which it deems bigger culprits when it comes to pollution. Critics describe carbon capture and storage as being simply - a gimmick that allows carbon-spewing industries to carry on with business as usual.
In a policy document released in January, India called for industrialized countries to commit to significant emission reduction targets while aiding sustainable development in developing nations with funds and technology. But, the developed countries say there will be no money available for developing countries because of the global economic slump.
In India the choice is simple. Pursue urgently needed economic growth to reduce poverty or address climate change. India has repeatedly said it will not compromise on growth by committing to emission reduction goals set by developed nations, which it deems bigger culprits when it comes to pollution. Critics describe carbon capture and storage as being simply - a gimmick that allows carbon-spewing industries to carry on with business as usual.
In a policy document released in January, India called for industrialized countries to commit to significant emission reduction targets while aiding sustainable development in developing nations with funds and technology. But, the developed countries say there will be no money available for developing countries because of the global economic slump.
Military Studies Alternative Energy
The Defense Department is the largest consumer of energy in the United States, spending roughly 18-billion dollars on energy resources last year. But, that may be about to change. The Pentagon has launched initiatives to find alternative fuel sources. The Pentagon will use 300-million dollars of the 7.4 billion it received from the economic stimulus package to accelerate existing programs for developing alternative fuels and saving energy.
The director of defense research and engineering at the Pentagon, Alan Shaffer, says - in the overall scheme of the stimulus, 300-million sounds small. But, he added that the relatively modest sum is being strategically targeted to make the most of it. For instance, one project looks at converting algae into jet propulsion fuel 8, or JP-8, that could power Navy and Air Force aircraft.
And the Army is looking at developing solar and wind farms on buffer land. Keith Eastin, assistant secretary of the Army for installations and environment, says - the concept of using buffer land for energy production could be applied at many installations. He says, - this would require almost no investment by the Army. It would be a new way of thinking in the Army - taking advantage of the assets we have.
The director of defense research and engineering at the Pentagon, Alan Shaffer, says - in the overall scheme of the stimulus, 300-million sounds small. But, he added that the relatively modest sum is being strategically targeted to make the most of it. For instance, one project looks at converting algae into jet propulsion fuel 8, or JP-8, that could power Navy and Air Force aircraft.
And the Army is looking at developing solar and wind farms on buffer land. Keith Eastin, assistant secretary of the Army for installations and environment, says - the concept of using buffer land for energy production could be applied at many installations. He says, - this would require almost no investment by the Army. It would be a new way of thinking in the Army - taking advantage of the assets we have.
Monday, April 13, 2009
Researchers Working on Poultry Stress
Presently, the only way to measure stress levels in poultry flocks is to measure cortisol and adrenaline in blood samples. That is not practical or efficient. So researchers, participating in a study called the Dolittle Project, hope they can better understand stress in laying hens by applying speech-processing algorithms to animal vocalizations.
According to researchers at the University of Connecticut, understanding the vocal patterns of laying hens may reveal how stress affects meat yields and egg production and ultimately could help producers boost output.
Dr. Michael Darre, an animal science professor at the University, says - alleviating stress in commercial flocks of laying hens and broilers is important - not only because it improves the overall welfare of the birds, but also because stress is a known enemy of production efficiencies. Darre says, so far, - vocalization patterns have been found to be different for stress due to handling and stress due to overcrowding.
Dare points out that - chronic stress has been shown to reduce egg production, reduce growth and meat yields, and lower immune system function. The goal of the project is to develop a device that can be placed in chicken houses that allows farmers to remotely monitor the birds and notify them when it detects stress vocalizations.
According to researchers at the University of Connecticut, understanding the vocal patterns of laying hens may reveal how stress affects meat yields and egg production and ultimately could help producers boost output.
Dr. Michael Darre, an animal science professor at the University, says - alleviating stress in commercial flocks of laying hens and broilers is important - not only because it improves the overall welfare of the birds, but also because stress is a known enemy of production efficiencies. Darre says, so far, - vocalization patterns have been found to be different for stress due to handling and stress due to overcrowding.
Dare points out that - chronic stress has been shown to reduce egg production, reduce growth and meat yields, and lower immune system function. The goal of the project is to develop a device that can be placed in chicken houses that allows farmers to remotely monitor the birds and notify them when it detects stress vocalizations.
FDA Wants to Delay Feed Ban Rule
The U.S. Food and Drug Administration has published in the Federal Register a last-minute notice regarding the agency’s intent to postpone its April 27th implementation of the final rule that would enhance the U.S. feed ban to better protect against the spread of bovine spongiform encephalopathy or BSE. The public has until this Thursday, April 16th, to submit comments on whether the enhanced feed ban should be delayed for 60 days.
Canada’s enhanced feed ban, implemented in July 2007, now protects Canadian consumers against the spread of BSE from Canadian cattle by closing known transmission routes, including cross-contamination and inadvertent feeding of contaminated cattle parts. R-CALF USA charges FDA now plans to delay providing U.S. consumers with the same level of protection afforded Canadian consumers against these same Canadian cattle that are now being imported into the United States.
R-CALF USA the FDA moves is designed to position the U.S. cattle industry between a rock and a hard place. In 2008, nearly 1.6 million Canadian cattle were imported into the United States. A recent USDA risk assessment model predicted the U.S. would import more than 100 BSE-infected cattle from Canada over the next 20 years.
Canada’s enhanced feed ban, implemented in July 2007, now protects Canadian consumers against the spread of BSE from Canadian cattle by closing known transmission routes, including cross-contamination and inadvertent feeding of contaminated cattle parts. R-CALF USA charges FDA now plans to delay providing U.S. consumers with the same level of protection afforded Canadian consumers against these same Canadian cattle that are now being imported into the United States.
R-CALF USA the FDA moves is designed to position the U.S. cattle industry between a rock and a hard place. In 2008, nearly 1.6 million Canadian cattle were imported into the United States. A recent USDA risk assessment model predicted the U.S. would import more than 100 BSE-infected cattle from Canada over the next 20 years.
Peanut Butter Volume Sales Rebounding
The National Peanut Board says retail sales scan data from Information Resources, Inc. shows some encouraging news for the industry. With the outbreak of salmonella linked to peanut products early in the year - confusion among consumers regarding which peanut products were safe resulted in a 19.42-percent drop in volume sales for jars of peanut butter in January when compared to January of 2008. While jarred peanut butter was never part of the recall - the National Peanut Board says peanut butter volume sales are now rebounding. With February 2009 data showing a decline of only .84-percent when compared with the previous year - and March data showing an increase in volume sales of 5.6-percent over March of 2008.
The National Peanut Board notes the data shows positive messages are at the core of market recovery. The Board has been reaching out to consumers and will continue doing so - working to restore confidence and give Americans permission to once again enjoy the numerous benefits of peanuts.
The National Peanut Board notes the data shows positive messages are at the core of market recovery. The Board has been reaching out to consumers and will continue doing so - working to restore confidence and give Americans permission to once again enjoy the numerous benefits of peanuts.
CBO Finds Ethanol Only Accountable for Fraction of Food Price Increases
The National Corn Growers Association is applauding a report released by the Congressional Budget Office last week (week of April 6). NCGA President Bob Dickey called the report on the impact of ethanol use on food prices and greenhouse gas emissions the next chapter in a growing narrative showing ethanol is not principally responsible for higher food prices. In fact - the report found that increased ethanol use accounted for just .5 to .8-percentage points of the 5.1-percent increase in food prices in the year between April 2007 and 2008.
Dickey says NCGA notes higher energy costs represented 36-percent of the overall food price increase. He’s hopeful those who are truly concerned about higher food prices will look to the causes that played a more significant role - and join those holding food manufacturers accountable for increased food prices while commodity prices and energy prices have dropped.
For a look at the CBO report - go to www dot cbo dot gov (www.cbo.gov).
Dickey says NCGA notes higher energy costs represented 36-percent of the overall food price increase. He’s hopeful those who are truly concerned about higher food prices will look to the causes that played a more significant role - and join those holding food manufacturers accountable for increased food prices while commodity prices and energy prices have dropped.
For a look at the CBO report - go to www dot cbo dot gov (www.cbo.gov).
Changes Coming in Marketing Assistance Loans
USDA will begin using, what Secretary of Agriculture Tom Vilsack calls, an improved and more stable system for determining non-recourse marketing assistance loan repayment rates and loan deficiency payment rates for wheat, feed grains, pulse crops, oilseeds, wool, mohair and honey. The Secretary says, - the new method will moderate fluctuations of the loan repayment rate.
Beginning April 15th for wheat, corn, grain sorghum, soybeans, barley, oats, canola, flaxseed and sunflower seed, USDA's Commodity Credit Corporation will publish daily loan repayment rates based on the average market prices during the preceding 30 days. At the same time, CCC will announce a repayment rate based on the preceding five days. The effective repayment rate will be the lower of the two numbers. The current method is based on the previous day's market rates.
And starting on or after April 15, for pulse crops such as lentils, dry peas, small chickpeas – and starting with the 2009-crop year, large chickpeas, and crambe, mustard seed, rapeseed, safflower, sesame seed, wool, mohair and honey, CCC will determine and publish loan repayment rates once a week based on average market prices during the preceding 30 days. CCC will also announce a repayment rate using current methodology each week. The effective repayment rate will be the lower of the two numbers.
Beginning April 15th for wheat, corn, grain sorghum, soybeans, barley, oats, canola, flaxseed and sunflower seed, USDA's Commodity Credit Corporation will publish daily loan repayment rates based on the average market prices during the preceding 30 days. At the same time, CCC will announce a repayment rate based on the preceding five days. The effective repayment rate will be the lower of the two numbers. The current method is based on the previous day's market rates.
And starting on or after April 15, for pulse crops such as lentils, dry peas, small chickpeas – and starting with the 2009-crop year, large chickpeas, and crambe, mustard seed, rapeseed, safflower, sesame seed, wool, mohair and honey, CCC will determine and publish loan repayment rates once a week based on average market prices during the preceding 30 days. CCC will also announce a repayment rate using current methodology each week. The effective repayment rate will be the lower of the two numbers.
USDA's World Ag Supply Demand Estimates Report
Thursday, USDA released its latest World Agriculture Supply and Demand Estimates report. U.S. wheat ending stocks for 2008/09 are projected to be 16-million bushels lower this month as a 5-million bushel increase in imports are more than offset by higher projected domestic use. Seed use is raised 1 million bushels based on producer intentions. Feed and residual use is projected 20 million bushels higher. The 2008/09 season-average farm price is projected up 10 cents on the lower end of the range to $6.80 to $6.90 per bushel. This is well above the previous record of $6.48 per bushel in 2007/08. Global wheat supplies for the period are nearly unchanged. World wheat trade is projected to be higher this month while world consumption is projected lower.
U.S. corn ending stocks for 2008/09 are projected 40 million bushels lower this month as higher expected feed and residual use more than offsets a reduction in food, seed, and industrial use. Feed and residual use is raised 50 million. Food, seed, and industrial use is lowered 10 million bushels. Corn use for starch is projected down 10 percent from 2007/08 as declining demand for construction materials and paper products reduce demand for starch. The 2008/09 season-average farm price for corn is projected at $4.00 to $4.40 per bushel, up 10 cents on both ends of the range. This compares with the 2007/08 record of $4.20 per bushel.
Feed and residual use for 2008/09 is lowered 5 million bushels each for barley and oats. Barley exports are also lowered slightly based on the pace of exports to date. Projected ending stocks for both commodities are raised accordingly. The season-average farm price for barley is projected at $5.20 to $5.30 per bushel, up 10 cents on the lower end of the range. The oats farm price range is narrowed 5 cents on both ends of the range to $3.10 to $3.20 per bushel.
The projected sorghum farm price is raised 10 cents on both ends of the range to $3.15 to $3.45 per bushel. Global coarse grain supplies for 2008/09 are projected 2.7 million tons lower this month with lower sorghum, barley, and corn production. Brazil corn production is raised 1.0 million tons reflecting higher indicated yields for the primary summer crop now being harvested. World corn exports for 2008/09 are projected 1.2 million tons higher this month. Global corn feed use is nearly unchanged. Global corn ending stocks for 2008/09 are projected 1.3 million tons lower.
For Rice no changes are made on the supply side of the U.S. supply and use balance sheets. On the use side, domestic and residual use is estimated at a record 135 million cwt, 6 percent above last month, and 9 percent above 2007/08. The all rice season-average farm price for 2008/09 is forecast at $15.75 to $16.75 per cwt, up 25 cents on both ends of the range from a month ago. The combined medium- and short-grain farm price range is projected at $21.25 to $22.25 per cwt, up 75 cents on each end of the range from a month ago, while the long-grain farm price range is projected at $14.50 to $15.50 per cwt, unchanged from last month. Global 2008/09 production, consumption, trade, and ending stocks are nearly unchanged from a month ago.
U.S. soybean exports for 2008/09 are increased 25 million bushels to a record 1.21 billion reflecting strong year-to-date shipments and outstanding sales, and prospects for reduced export competition from South America as the Argentina soybean crop continues to deteriorate. Soybean crush is reduced 5 million bushels and seed use is raised reflecting expected plantings for 2009. U.S. soybean ending stocks are reduced 20 million bushels to a projected 165 million, the lowest since 2003/04.
Price forecasts for soybeans, soybean oil, and soybean meal are all raised. The U.S. season-average soybean price range for 2008/09 is projected at $9.25 to $10.05 per bushel compared with $8.85 to $9.85 per bushel last month. Soybean oil prices are forecast at 30 to 32 cents per pound, compared with the previous range of 28.5 to 31.5 cents per pound. The soybean meal price range is narrowed to $280 to $300 per short ton compared with $265 to $305 last month.
Global oilseed production for 2008/09 is projected at 403.5 million tons, down 4.2 million tons from last month. Soybean production for Argentina is projected at 39.0 million tons, down 4 million due to lower harvested area and yields. Global 2008/09 oilseed ending stocks are reduced 4.1 million tons due mostly to lower soybean stocks in Argentina, Brazil, and the United States.
Projected 2008/09 U.S. sugar supply is increased 274-thousand short tons, raw value, from last month, mainly due to increased imports. Production changes were largely offsetting. Imports from Mexico are increased 320-thousand tons to 1 million tons, based on the strong pace to date.
U.S. corn ending stocks for 2008/09 are projected 40 million bushels lower this month as higher expected feed and residual use more than offsets a reduction in food, seed, and industrial use. Feed and residual use is raised 50 million. Food, seed, and industrial use is lowered 10 million bushels. Corn use for starch is projected down 10 percent from 2007/08 as declining demand for construction materials and paper products reduce demand for starch. The 2008/09 season-average farm price for corn is projected at $4.00 to $4.40 per bushel, up 10 cents on both ends of the range. This compares with the 2007/08 record of $4.20 per bushel.
Feed and residual use for 2008/09 is lowered 5 million bushels each for barley and oats. Barley exports are also lowered slightly based on the pace of exports to date. Projected ending stocks for both commodities are raised accordingly. The season-average farm price for barley is projected at $5.20 to $5.30 per bushel, up 10 cents on the lower end of the range. The oats farm price range is narrowed 5 cents on both ends of the range to $3.10 to $3.20 per bushel.
The projected sorghum farm price is raised 10 cents on both ends of the range to $3.15 to $3.45 per bushel. Global coarse grain supplies for 2008/09 are projected 2.7 million tons lower this month with lower sorghum, barley, and corn production. Brazil corn production is raised 1.0 million tons reflecting higher indicated yields for the primary summer crop now being harvested. World corn exports for 2008/09 are projected 1.2 million tons higher this month. Global corn feed use is nearly unchanged. Global corn ending stocks for 2008/09 are projected 1.3 million tons lower.
For Rice no changes are made on the supply side of the U.S. supply and use balance sheets. On the use side, domestic and residual use is estimated at a record 135 million cwt, 6 percent above last month, and 9 percent above 2007/08. The all rice season-average farm price for 2008/09 is forecast at $15.75 to $16.75 per cwt, up 25 cents on both ends of the range from a month ago. The combined medium- and short-grain farm price range is projected at $21.25 to $22.25 per cwt, up 75 cents on each end of the range from a month ago, while the long-grain farm price range is projected at $14.50 to $15.50 per cwt, unchanged from last month. Global 2008/09 production, consumption, trade, and ending stocks are nearly unchanged from a month ago.
U.S. soybean exports for 2008/09 are increased 25 million bushels to a record 1.21 billion reflecting strong year-to-date shipments and outstanding sales, and prospects for reduced export competition from South America as the Argentina soybean crop continues to deteriorate. Soybean crush is reduced 5 million bushels and seed use is raised reflecting expected plantings for 2009. U.S. soybean ending stocks are reduced 20 million bushels to a projected 165 million, the lowest since 2003/04.
Price forecasts for soybeans, soybean oil, and soybean meal are all raised. The U.S. season-average soybean price range for 2008/09 is projected at $9.25 to $10.05 per bushel compared with $8.85 to $9.85 per bushel last month. Soybean oil prices are forecast at 30 to 32 cents per pound, compared with the previous range of 28.5 to 31.5 cents per pound. The soybean meal price range is narrowed to $280 to $300 per short ton compared with $265 to $305 last month.
Global oilseed production for 2008/09 is projected at 403.5 million tons, down 4.2 million tons from last month. Soybean production for Argentina is projected at 39.0 million tons, down 4 million due to lower harvested area and yields. Global 2008/09 oilseed ending stocks are reduced 4.1 million tons due mostly to lower soybean stocks in Argentina, Brazil, and the United States.
Projected 2008/09 U.S. sugar supply is increased 274-thousand short tons, raw value, from last month, mainly due to increased imports. Production changes were largely offsetting. Imports from Mexico are increased 320-thousand tons to 1 million tons, based on the strong pace to date.
USDA's World Ag Supply Demand Estimates for April Released
USDA’s World Agriculture Supply Demand Estimates report also indicated that total U.S. meat production for 2009 is forecast lower this month as a slight increase in beef output is more than offset by lower pork and poultry production. The beef production forecast is raised from last month due to a combination of heavier expected steer and heifer weights and higher expected cow slaughter.
Broiler production forecasts are lowered as hatchery data point to continued reductions in eggs set and chicks placed. Hatchery supply flocks are below last year, implying little prospect for recovery until later in the year. Turkey production is also forecast lower as there are no indications that flocks will expand before mid-year.
Export forecasts for 2009 for major meats are lowered slightly. Exports of beef and turkey are forecast lower but the pork export forecast is raised. Broiler exports are unchanged. Beef imports are raised but imports for pork are unchanged.
The cattle price forecast is about unchanged from last month. Hog prices are raised as tighter hog supplies are expected. Broiler prices are lowered as demand is expected to remain weak.
Milk production forecasts for 2009 are lowered from last month as cow numbers are down, as producers are expected to liquidate herds in response to poor returns. Milk price estimates for 2009 are raised. Reductions in milk supplies are expected to support product prices. The Class III and Class IV price forecasts are raised and the all milk price is also forecast higher this month at $11.85 to $12.35 per cwt.
This month’s U.S. 2008/09 cotton estimates include marginally lower supplies combined with larger offtake, resulting in a 600-thousand-bale reduction in forecast ending stocks. The production estimate is lowered 206-thousand bales from last month based on USDA’s final Cotton Ginnings report. Domestic mill use is lowered 100-thousand bales to 3.65 million, as mill use reported for February fell sharply. Exports are raised 500-thousand bales Ending stocks are now estimated at 6.7 million bales, or 41.5 percent of total use. The forecast season-average price range of 47 to 51 cents per pound is narrowed 1 cent on each end of the range.
The world cotton estimates for 2008/09 include lower consumption and higher ending stocks compared with last month. World production is reduced marginally, due mainly to adjustments for the United States and Iran. World consumption is reduced 1.2 percent, due to decreases for China and others.
Broiler production forecasts are lowered as hatchery data point to continued reductions in eggs set and chicks placed. Hatchery supply flocks are below last year, implying little prospect for recovery until later in the year. Turkey production is also forecast lower as there are no indications that flocks will expand before mid-year.
Export forecasts for 2009 for major meats are lowered slightly. Exports of beef and turkey are forecast lower but the pork export forecast is raised. Broiler exports are unchanged. Beef imports are raised but imports for pork are unchanged.
The cattle price forecast is about unchanged from last month. Hog prices are raised as tighter hog supplies are expected. Broiler prices are lowered as demand is expected to remain weak.
Milk production forecasts for 2009 are lowered from last month as cow numbers are down, as producers are expected to liquidate herds in response to poor returns. Milk price estimates for 2009 are raised. Reductions in milk supplies are expected to support product prices. The Class III and Class IV price forecasts are raised and the all milk price is also forecast higher this month at $11.85 to $12.35 per cwt.
This month’s U.S. 2008/09 cotton estimates include marginally lower supplies combined with larger offtake, resulting in a 600-thousand-bale reduction in forecast ending stocks. The production estimate is lowered 206-thousand bales from last month based on USDA’s final Cotton Ginnings report. Domestic mill use is lowered 100-thousand bales to 3.65 million, as mill use reported for February fell sharply. Exports are raised 500-thousand bales Ending stocks are now estimated at 6.7 million bales, or 41.5 percent of total use. The forecast season-average price range of 47 to 51 cents per pound is narrowed 1 cent on each end of the range.
The world cotton estimates for 2008/09 include lower consumption and higher ending stocks compared with last month. World production is reduced marginally, due mainly to adjustments for the United States and Iran. World consumption is reduced 1.2 percent, due to decreases for China and others.
Administration Softening Position on Emissions Allowances
White House science adviser John Holdren says the Obama administration might agree to auction only a portion of the emissions allowances granted at first under a cap-and-trade system to limit greenhouse gas pollution. That is a change from the stance the President took during the Presidential campaign when he called for auctioning off all the emissions permits. Industries would still buy and sell the allowances in an open market as the cap on total emissions was gradually lowered.
Holdren indicated the final goal is to get to a 100 percent auction, and - whether you get there to start with or get there over a period of time is something that's being discussed. Ultimately, Holdren said - the idea, obviously, is to end up with a bill that reflects both the thinking of Congress and the administration, a bill that the president can sign. Members of both the administration and Congress are said to be looking at a variety of policy options to help make the transition.
For weeks the President's assistant on energy and climate change, Carol M. Browner, has convened regular meetings with roughly a dozen key administration officials to develop national energy and climate policy. They include Holdren; the secretaries of agriculture, commerce, energy, housing and urban development, interior, and transportation. The group has explored questions such as how to pursue offshore wind energy, agricultural practices and a new national greenhouse gas emissions standard for vehicles.
Holdren indicated the final goal is to get to a 100 percent auction, and - whether you get there to start with or get there over a period of time is something that's being discussed. Ultimately, Holdren said - the idea, obviously, is to end up with a bill that reflects both the thinking of Congress and the administration, a bill that the president can sign. Members of both the administration and Congress are said to be looking at a variety of policy options to help make the transition.
For weeks the President's assistant on energy and climate change, Carol M. Browner, has convened regular meetings with roughly a dozen key administration officials to develop national energy and climate policy. They include Holdren; the secretaries of agriculture, commerce, energy, housing and urban development, interior, and transportation. The group has explored questions such as how to pursue offshore wind energy, agricultural practices and a new national greenhouse gas emissions standard for vehicles.
ACRE Sign-up Period Announced
Beginning April 27th and continuing through August 14th producers can elect and enroll in the Average Crop Revenue Election program. Producers who elect the ACRE program for a farm agree to forgo counter-cyclical payments; accept a 20-percent reduction of the direct payments; and accept a 30-percent reduction in loan rates for all commodities produced on the farm. Commodities eligible for ACRE payments are wheat, corn, grain sorghum, barley, oats, upland cotton, long grain rice, medium and short grain rice, peanuts, soybeans, sunflower seed, canola, flaxseed, safflower, mustard seed, rapeseed, sesame seed, crambe, dry peas, lentils, small chickpeas and large chickpeas.
As Secretary Tom Vilsack noted, - the Average Crop Revenue Election program is an innovative alternative to the traditional farm safety net. This new option presents an opportunity for producers to review both programs and decide which one will work best for their operation. Producers may elect and enroll in ACRE for the 2009 crop year even if they have already accepted advance direct payments under the Direct and Counter-cyclical Program.
ACRE is a provision of the 2008 Farm Bill and USDA will not accept any late-filed applications. Also, once enrolled in the ACRE program, you must remain in it for the life of the 2008 Farm Bill.
As Secretary Tom Vilsack noted, - the Average Crop Revenue Election program is an innovative alternative to the traditional farm safety net. This new option presents an opportunity for producers to review both programs and decide which one will work best for their operation. Producers may elect and enroll in ACRE for the 2009 crop year even if they have already accepted advance direct payments under the Direct and Counter-cyclical Program.
ACRE is a provision of the 2008 Farm Bill and USDA will not accept any late-filed applications. Also, once enrolled in the ACRE program, you must remain in it for the life of the 2008 Farm Bill.
COOL Has Canadian Livestock in Crisis
Data suggest sales of Canadian live hogs and cattle to the United States have plummeted by more than 40 percent, plunging the Canadian livestock industry into a crisis. The U.S. Mandatory Country of Origin Labeling law is being blamed as major U.S.- based processors refuse to buy Canadian swine and cattle due to the added red tape the regulation entails. Representatives of the cattle and pork industries are urging the Canadian government to file a complaint with the World Trade Organization, saying the law "clearly" represents a non-tariff barrier that threatens the livelihood of Canada's rural economy.
Jurgen Preugschas, chairman of the Canadian Pork Council called it - protectionism at its worst - without understanding what the ramifications are. The Conservative government initially looked at filing a WTO complaint but backed off when the Bush administration made concessions that softened certain restrictions, in particular on ground meat. But since then, the Obama administration has moved to encourage U.S. packers to go ahead and label ground meat.
The crisis enveloping the domestic livestock industry comes as world leaders have pledged to rip down trade barriers in order to get trade flowing again and mitigate further fallout from the financial crisis. The World Trade Organization has predicted global trade volumes are set to shrink this year by 9%.
Jurgen Preugschas, chairman of the Canadian Pork Council called it - protectionism at its worst - without understanding what the ramifications are. The Conservative government initially looked at filing a WTO complaint but backed off when the Bush administration made concessions that softened certain restrictions, in particular on ground meat. But since then, the Obama administration has moved to encourage U.S. packers to go ahead and label ground meat.
The crisis enveloping the domestic livestock industry comes as world leaders have pledged to rip down trade barriers in order to get trade flowing again and mitigate further fallout from the financial crisis. The World Trade Organization has predicted global trade volumes are set to shrink this year by 9%.
Canada Wants WTO Help with South Korean Beef Dispute
The Canadian government is asking the World Trade Organization to begin consultations with South Korea on that country’s refusal to permit Canadian beef imports. Canadian beef imports were banned by South Korea in May of 2003 when bovine spongiform encephalopathy was discovered in one Canadian cow. Since then, the World Organization for Animal Health has placed Canada on the list of controlled-risk counties for BSE. So far, Seoul has not recognized the effectiveness of Canada's surveillance, mitigation and eradication measures.
Canada’s International Trade Minister, Stockwell Day, said in a news release, - Canada has a robust trade relationship with South Korea, so it is unfortunate that we have not been able to settle this issue and reopen South Korean markets to Canadian beef.
WTO consultations are a formal opportunity for trading partners to resolve disputes through discussions. If such efforts fail, Canada may ask that the matter be taken up by a WTO dispute settlement panel.
Canada’s International Trade Minister, Stockwell Day, said in a news release, - Canada has a robust trade relationship with South Korea, so it is unfortunate that we have not been able to settle this issue and reopen South Korean markets to Canadian beef.
WTO consultations are a formal opportunity for trading partners to resolve disputes through discussions. If such efforts fail, Canada may ask that the matter be taken up by a WTO dispute settlement panel.
New Zealand Ambassador to Head Ag Negotiations
New Zealand’s new ambassador to the World Trade Organization, David Walker, has been selected to replace Crawford Falconer, also from New Zealand, as chairman of the WTO agriculture talks. In a statement, Chile's WTO ambassador Mario Matus said, that consensus had emerged among the WTO's 153 members to appoint Walker to chair the negotiations.
Industrial goods and agriculture forms one of the core areas of negotiations in the WTO's Doha round. An outline agreement must be reached in these areas before a comprehensive trade deal can be concluded.
Agriculture is important to developing countries keen to defend the interests of their millions of subsistence farmers. Developing countries would like to see the elimination of distortions in farm trade that benefit rich countries.
Industrial goods and agriculture forms one of the core areas of negotiations in the WTO's Doha round. An outline agreement must be reached in these areas before a comprehensive trade deal can be concluded.
Agriculture is important to developing countries keen to defend the interests of their millions of subsistence farmers. Developing countries would like to see the elimination of distortions in farm trade that benefit rich countries.
Duckweed Could Replace Corn in Ethanol
Duckweed could be a faster and cheaper resource than corn for the production of ethanol. Researchers at North Carolina State University say the tiny aquatic plant can be used to clean up animal waste at hog farms, as well as municipal wastewater. According to researcher Dr. Jay Cheng, growing duckweed on hog wastewater can produce five to six times more starch per acre than corn. That starch can then be readily converted into ethanol using the same facilities currently used for corn.
Cheng points out that large-scale hog farms manage their animal waste by storing it in large "lagoons" for biological treatment. Duckweed utilizes the nutrients in the wastewater for growth, thus capturing these nutrients and preventing their release into the environment. In other words, Cheng says, - Duckweed could be an environmentally friendly, economically viable feedstock for ethanol.
The duckweed system consists of shallow ponds that can be built on land unsuitable for conventional crops, and is so efficient it generates water clean enough for re-use. Researchers are currently establishing a pilot-scale project to further investigate the best way to establish a large-scale system for growing, harvesting and drying duckweed.
Cheng points out that large-scale hog farms manage their animal waste by storing it in large "lagoons" for biological treatment. Duckweed utilizes the nutrients in the wastewater for growth, thus capturing these nutrients and preventing their release into the environment. In other words, Cheng says, - Duckweed could be an environmentally friendly, economically viable feedstock for ethanol.
The duckweed system consists of shallow ponds that can be built on land unsuitable for conventional crops, and is so efficient it generates water clean enough for re-use. Researchers are currently establishing a pilot-scale project to further investigate the best way to establish a large-scale system for growing, harvesting and drying duckweed.
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