A Smithfield Foods Inc. subsidiary will lay off 117 workers at it's Dalhart, Texas hog farm. The layoffs will begin by mid-October and fewer than 25 employees of the company's Premium Standard Farms LLC unit will continue to work at the site in Dallam County. The layoffs, effective Oct. 16, will be permanent.
In other Smithfield news, GE Capital said Monday that it had provided $150 million for Smithfield's previously announced $1 billion revolving credit facility. Smithfield Vice President Carey Dubois said GE "accounted for the largest portion of the... credit facility, helping provide Smithfield with the liquidity it needed." Smithfield announced last Friday that it had finished the sale of $225 million in senior secured notes. CEO C. Larry Pope said that would help "strengthen our balance sheet."
Texas Commissioner for Agriculture Todd Staples expressed disappointment with the news and said the pork industry has an $860 million impact with direct sales of $172 million. "Yes, pork producers are suffering today and much of that is due to the overall economic decline." He is outraged that media "professionals" continue to refer to H1N1 incorrectly as swine flu. He believes that this has led to the drop in prices and demand for the industry.
Staples introduced a resolution to other ag commissioners in the United States, as well as in Canada and Mexico, to urge politicians and media outlets to refer to the outbreak by it's correct name: H1N1. His comments can be heard below under GUEST INTERVIEWS for Wednesday August 26th, 2009.
Wednesday, August 26, 2009
Ag Secretary talks with All Ag, All Day
U.S. Secretary of Agriculture Tom Vilsack spoke with All Ag, All Day on Monday afternoon about the Obama Administration's proposed Climate Change legislation. Vilsack said he believes the analysis demonstrates the economic opportunity for farmers and ranchers can significantly outpace for climate legislation. In the short-term he said, the economic benefits will likely outweigh the costs and in the long-term they will easily trump the cost based upon the offset market set up in the measure approved by the House. Vilsack noted that producers should share in about $1 billion in net income over the first few years after implementation, with the potential of $20-$50 billion over "the course of time".
The Chicago Climate Exchange hosts a trading platform for carbon credits today, where credits are sold on a voluntary basis. One year ago the credits were trading in the neighborhood of $3.40 per ton, whereas today the market has dropped to under 30-cents per ton. When asked if USDA used this information in their calculations, Vilsack responded that it was not taken into consideration because it was not part of a national or international effort and was instead part of a voluntary effort. He also said that a realistic price for credits would be $15 to $16 per ton based upon a nationwide cap and trade system. With this being a mandatory system, a one billion tons of domestic offsets by law, the opportunities for agriculture are huge.
Vilsack also said at stake was more than the climate. Without the U.S. taking a lead in the climate change arena, international trade would be in jeopardy too, he said. He concluded by reminding those who oppose the legislation to remember the opportunity that will exist for rural communities to prosper under the plan.
The Chicago Climate Exchange hosts a trading platform for carbon credits today, where credits are sold on a voluntary basis. One year ago the credits were trading in the neighborhood of $3.40 per ton, whereas today the market has dropped to under 30-cents per ton. When asked if USDA used this information in their calculations, Vilsack responded that it was not taken into consideration because it was not part of a national or international effort and was instead part of a voluntary effort. He also said that a realistic price for credits would be $15 to $16 per ton based upon a nationwide cap and trade system. With this being a mandatory system, a one billion tons of domestic offsets by law, the opportunities for agriculture are huge.
Vilsack also said at stake was more than the climate. Without the U.S. taking a lead in the climate change arena, international trade would be in jeopardy too, he said. He concluded by reminding those who oppose the legislation to remember the opportunity that will exist for rural communities to prosper under the plan.
Report Questions Atrazine Levels in Water
The Natural Resources Defense Council reports that drinking water containing the herbicide – atrazine - could pose a greater public health risk than previously thought because regular municipal monitoring doesn't detect frequent spikes in the chemical's levels. The NRDC says the missed spikes likely occur after rain and springtime application of the herbicide. Scientists with atrazine manufacturer Syngenta called the NRDC report - alarmist - and said the spikes fall within one- and 10-day limits that the EPA considers safe.
The NRDC reported documented spikes in atrazine in the water supplies of Midwestern and Southern towns in agricultural areas, where the herbicide is applied to the vast majority of corn, sorghum and sugar cane fields. Atrazine is an endocrine disrupter and can interfere with the body's hormonal activity and the development of reproductive organs. NRDC senior scientist Jennifer Sass says - our biggest concern is early-life-stage development. If there's a disruption during that time, it becomes hard-wired into the system. These endocrine disrupters act in the body at extremely low levels. Therefore, - these spikes matter.
Syngenta toxicologist Tim Pastoor says, - atrazine is one of the best studied, most thoroughly regulated molecules on the planet. He says, - those momentary spikes are not going to be injurious to human health. NRDC scientists and lawyers argue that the EPA's limits are too lenient, given studies showing the effects of low levels of atrazine on rats and other animals and the fact that it is nearly impossible to epidemiologically trace the chemical's effects on humans.
The NRDC reported documented spikes in atrazine in the water supplies of Midwestern and Southern towns in agricultural areas, where the herbicide is applied to the vast majority of corn, sorghum and sugar cane fields. Atrazine is an endocrine disrupter and can interfere with the body's hormonal activity and the development of reproductive organs. NRDC senior scientist Jennifer Sass says - our biggest concern is early-life-stage development. If there's a disruption during that time, it becomes hard-wired into the system. These endocrine disrupters act in the body at extremely low levels. Therefore, - these spikes matter.
Syngenta toxicologist Tim Pastoor says, - atrazine is one of the best studied, most thoroughly regulated molecules on the planet. He says, - those momentary spikes are not going to be injurious to human health. NRDC scientists and lawyers argue that the EPA's limits are too lenient, given studies showing the effects of low levels of atrazine on rats and other animals and the fact that it is nearly impossible to epidemiologically trace the chemical's effects on humans.
Animal Well-being Commission Formed
Leaders from academia and the beef industry are announcing the formation of an independent advisory group to focus on beef cattle health and well-being. The North American Food Animal Well-being Commission for Beef - which includes world-renowned experts in animal well-being—will advocate for increased research funding for animal well-being, facilitate the communication of research results in a more timely manner, advance best management practices in cattle health and welfare, and serve as an unbiased, science- and production- based group to address concerns about animal well-being.
Joseph Stookey, professor of applied ethology, Western College of Veterinary Medicine, University of Saskatchewan, will serve as co-chair of the commission. Stookey says - this as a very unique opportunity for all of us to serve the various segments of the beef industry, society and ultimately the animals, in a responsible, scientific and unified manner. According to Stookey, - this initiative has a tremendous amount of potential, and I'm excited to help lay the foundation for this important work.
The commission’s public outreach efforts will focus on a number of groups across all levels of the beef chain, including: farming and ranching organizations, consumer groups, beef harvesting companies, veterinary groups, food retail and restaurant groups, and animal welfare groups.
Joseph Stookey, professor of applied ethology, Western College of Veterinary Medicine, University of Saskatchewan, will serve as co-chair of the commission. Stookey says - this as a very unique opportunity for all of us to serve the various segments of the beef industry, society and ultimately the animals, in a responsible, scientific and unified manner. According to Stookey, - this initiative has a tremendous amount of potential, and I'm excited to help lay the foundation for this important work.
The commission’s public outreach efforts will focus on a number of groups across all levels of the beef chain, including: farming and ranching organizations, consumer groups, beef harvesting companies, veterinary groups, food retail and restaurant groups, and animal welfare groups.
Chickpeas Have Brighter Future
Chickpeas, high in protein, fiber and other nutrients, are important legume crops the world over. But the crop suffers from the larval stage of the beet armyworm moth which likes to eat the crop's leaves. New lines of resistant chickpeas called “CRIL-7” have been developed by Agricultural Research Service scientists and their collaborators. Thid development could put the kibosh on this crop-damaging pest's voracious appetite, and potentially save on chemical insecticides used to fight it.
The "CRIL-7" chickpeas were conventionally bred from a cross between wild and cultivated species by a team of scientists from the ARS Plant Germplasm Introduction and Testing Research Station in Pullman, Washington; Washington State University's Department of Horticulture and Landscape Architecture; and the International Crops Research Institute for the Semi-Arid Tropics in India. In 2005, India led the world in chickpea production with 6.6 billion tons
in 2006-07 greenhouse trials, 28 to 62 percent of beet armyworms that fed on the leaves of resistant chickpeas died within a few days of hatching from eggs. The surviving worms were smaller and shorter than usual. The CRIL-7s outperformed commercial cultivars used for comparison of resistance, but still require agronomic testing under field conditions as the next step towards commercialization.
The "CRIL-7" chickpeas were conventionally bred from a cross between wild and cultivated species by a team of scientists from the ARS Plant Germplasm Introduction and Testing Research Station in Pullman, Washington; Washington State University's Department of Horticulture and Landscape Architecture; and the International Crops Research Institute for the Semi-Arid Tropics in India. In 2005, India led the world in chickpea production with 6.6 billion tons
in 2006-07 greenhouse trials, 28 to 62 percent of beet armyworms that fed on the leaves of resistant chickpeas died within a few days of hatching from eggs. The surviving worms were smaller and shorter than usual. The CRIL-7s outperformed commercial cultivars used for comparison of resistance, but still require agronomic testing under field conditions as the next step towards commercialization.
Tuesday, August 25, 2009
More Learned About Colony Collapse Disorder
Researchers say they now have the first hard evidence of what is happening physiologically inside bees during Colony Collapse Disorder. Using a tool called a genome-wide microarray, researchers at the Agricultural Research Service and University of Illinois found a large amount of abnormal ribosomal RNA (rRNA) fragments in the guts of honey bees in CCD colonies. Ribosomes are the cellular factories in which proteins are made. The fragments indicate the protein construction system is compromised and honey bees in colonies diagnosed with CCD had reduced ability to synthesize new proteins.
Entomologist May Berenbaum believes the loss of ribosomal function would explain many of the phenomena associated with CCD. Berenbaum adds, - if the bees' ribosomes are compromised, then they can't overcome exposure to pesticides, fungal infections or bacteria or inadequate nutrition because the ribosome is central to the survival of any organism.
Researchers say almost all CCD colonies tested had a higher level of picorna-like viruses, which attack the ribosome. Picorna-like viruses that attack honey bees include deformed wing virus and Israeli acute paralysis virus. The varroa mite, a major honey bee parasite, is known to transmit picorna-like viruses. Bees in CCD colonies did not show significantly active pesticide response genes.
Entomologist May Berenbaum believes the loss of ribosomal function would explain many of the phenomena associated with CCD. Berenbaum adds, - if the bees' ribosomes are compromised, then they can't overcome exposure to pesticides, fungal infections or bacteria or inadequate nutrition because the ribosome is central to the survival of any organism.
Researchers say almost all CCD colonies tested had a higher level of picorna-like viruses, which attack the ribosome. Picorna-like viruses that attack honey bees include deformed wing virus and Israeli acute paralysis virus. The varroa mite, a major honey bee parasite, is known to transmit picorna-like viruses. Bees in CCD colonies did not show significantly active pesticide response genes.
Report Projects Reduced Domestic Fuel Production
The American Petroleum Industry has released a report on how implementation of the Waxman-Markey bill would affect domestic fuel production. The report projects that by 2030, U.S. refining production could drop 17% from today's levels if the climate bill is passed as currently proposed. The study says the drop would have to be made up by foreign imports, meaning the U.S. could end up relying on other countries for 19.4% of its refined fuel -- nearly twice the amount it imports today.
Average U.S. refinery output would drop to 12 million barrels a day in 2030 from about 14.5 million barrels a day currently, if nuclear power, technology to reduce carbon emissions and the use of international offsets fail to become widespread. Refinery utilization rates could drop to 63.4%, from about 83% today. The API-backed study concludes that if the U.S. puts a price on carbon emissions, domestic production would decrease as U.S. refiners deal with higher costs and lower demand for fuel.
Even beyond the recession, industry experts expect demand for gasoline to continue declining as vehicle mileage improves and new biofuels are developed. Last month, Valero Energy Corporation, the largest U.S. refiner by volume, posted a quarterly loss and analysts are expecting at least one refinery to shut down due to slackening demand. Without the restrictions of a Waxman-Markey bill, the study predicts U.S. production rates would grow to an average 16.4 million barrels a day in 2030.
Average U.S. refinery output would drop to 12 million barrels a day in 2030 from about 14.5 million barrels a day currently, if nuclear power, technology to reduce carbon emissions and the use of international offsets fail to become widespread. Refinery utilization rates could drop to 63.4%, from about 83% today. The API-backed study concludes that if the U.S. puts a price on carbon emissions, domestic production would decrease as U.S. refiners deal with higher costs and lower demand for fuel.
Even beyond the recession, industry experts expect demand for gasoline to continue declining as vehicle mileage improves and new biofuels are developed. Last month, Valero Energy Corporation, the largest U.S. refiner by volume, posted a quarterly loss and analysts are expecting at least one refinery to shut down due to slackening demand. Without the restrictions of a Waxman-Markey bill, the study predicts U.S. production rates would grow to an average 16.4 million barrels a day in 2030.
Monday, August 24, 2009
CFTC Chairman Recommends Additions
The chairman of the Commodity Futures Trading Commission, Gary Gensler, has some changes he would like to see made in the Obama administration’s proposed changes in regulating the complex financial instruments blamed for hastening the global economic crisis. Gensler has urged changing the measure to eliminate exemptions from new requirements for foreign-currency swaps and small firms dealing in derivatives, among other things.
In a letter to committee leaders in the House and Senate, Gensler said the administration’s proposal will go a long way toward reducing risk and bolstering the transparency and integrity of the 600-trillion dollar derivatives market, But, - I believe the law must cover the entire marketplace without exception. As for foreign-currency swaps, Gensler said in his letter, - excluding foreign-currency swaps from the new restrictions as the White House bill proposes is overly broad and could enable dealers to structure other swaps transactions in a way to skirt regulation. He says - the administration and Congress have an historic opportunity to repair shortcomings in our regulatory system.
In a letter to committee leaders in the House and Senate, Gensler said the administration’s proposal will go a long way toward reducing risk and bolstering the transparency and integrity of the 600-trillion dollar derivatives market, But, - I believe the law must cover the entire marketplace without exception. As for foreign-currency swaps, Gensler said in his letter, - excluding foreign-currency swaps from the new restrictions as the White House bill proposes is overly broad and could enable dealers to structure other swaps transactions in a way to skirt regulation. He says - the administration and Congress have an historic opportunity to repair shortcomings in our regulatory system.
Study of Fertilizers Costs-Benefits Released
The Fertilizer Institute has released a report it hopes will influence the U.S. Senate as it considers climate change legislation. TFI President Ford West said, - we urge the Senate to review this report with an eye toward potential valuable job losses among the domestic fertilizer industry that could take place if, as we anticipate, climate change legislation leads to higher energy prices.
The study, conducted by Charles River Associates International, reveals that the U.S. fertilizer industry supports 244-thousand jobs and adds 57.8-billion dollars in value to the U.S. economy. The study also found that, in 2006, the fertilizer industry directly employed more than 24,800 people who produced fertilizers valued at 15.1-billion dollars. These jobs had an average annual compensation of 76-thousand dollars, which was almost 80 percent higher than the U.S. average compensation across all industries.
Fertilizer manufacturing is a trade and energy intensive industry and is uniquely sensitive to the price of natural gas, which is required to make nitrogen. The industry uses natural gas as a feedstock in a fixed chemical process that combines nitrogen from the air and hydrogen from the gas to produce nitrogen fertilizer, in a form that the plant can take up.
The study, conducted by Charles River Associates International, reveals that the U.S. fertilizer industry supports 244-thousand jobs and adds 57.8-billion dollars in value to the U.S. economy. The study also found that, in 2006, the fertilizer industry directly employed more than 24,800 people who produced fertilizers valued at 15.1-billion dollars. These jobs had an average annual compensation of 76-thousand dollars, which was almost 80 percent higher than the U.S. average compensation across all industries.
Fertilizer manufacturing is a trade and energy intensive industry and is uniquely sensitive to the price of natural gas, which is required to make nitrogen. The industry uses natural gas as a feedstock in a fixed chemical process that combines nitrogen from the air and hydrogen from the gas to produce nitrogen fertilizer, in a form that the plant can take up.
President Expects End of Year Immigration Legislation
As he wrapped up his trip to Guadalajara, Mexico, on Monday, President Obama seemingly put immigration on the back burner, saying – efforts to change the immigration system would have to wait until next year. He wants to focus on health care reform, energy legislation and financial regulatory changes. Still, the President indicated his administration will begin working on a comprehensive overhaul of the U.S. immigration system this year - but that no action on legislation will happen before 2010.
The President said there needs to be - a pathway to citizenship - for millions of illegal immigrants in the United States, and the system must be reworked to avoid tensions with Mexico. Without it, he said, Mexicans will keep crossing the border in dangerous ways and employers will continue exploiting workers. Mr. Obama believes, - we can create a system in which you have . . . an orderly process for people to come in, but we're also giving an opportunity for those who are already in the United States to be able to achieve a pathway to citizenship so that they don't have to live in the shadows. The President admits, - this is going to be difficult.
The President said there needs to be - a pathway to citizenship - for millions of illegal immigrants in the United States, and the system must be reworked to avoid tensions with Mexico. Without it, he said, Mexicans will keep crossing the border in dangerous ways and employers will continue exploiting workers. Mr. Obama believes, - we can create a system in which you have . . . an orderly process for people to come in, but we're also giving an opportunity for those who are already in the United States to be able to achieve a pathway to citizenship so that they don't have to live in the shadows. The President admits, - this is going to be difficult.
GAO: Food Prices Climb Four-Times Faster Than Crop Prices
The Government Accountability Office reports that supermarket prices for food have climbed by 128-percent since 1982. That’s four times the increase in crop prices for farmers. The GAO report found that during the time period - farmers have generally received higher monthly prices for their commodities - but these prices have increased less than food prices and inflation in the broader economy.
Tom Buis - CEO of Growth Energy - says last year the Grocery Manufacturers Association developed a multimillion dollar misinformation campaign to blame American farmers and ethanol producers for higher food prices. He says this is another study that shines the light of truth on the whole food-versus-fuel fiction that Big Food was peddling. Buis adds that whatever is driving up grocery prices won’t be found on the farm - and he says it merits further investigation by Congress.
Specifically - farmers saw prices for beef, pork, dairy, grains and other commodities increase by 34-percent from January 1982 to April 2009. For the same period - food prices rose by 128-percent and prices in the general economy rose 102-percent. The study was requested by Senators Herb Kohl of Wisconsin and Chuck Grassley of Iowa.
Tom Buis - CEO of Growth Energy - says last year the Grocery Manufacturers Association developed a multimillion dollar misinformation campaign to blame American farmers and ethanol producers for higher food prices. He says this is another study that shines the light of truth on the whole food-versus-fuel fiction that Big Food was peddling. Buis adds that whatever is driving up grocery prices won’t be found on the farm - and he says it merits further investigation by Congress.
Specifically - farmers saw prices for beef, pork, dairy, grains and other commodities increase by 34-percent from January 1982 to April 2009. For the same period - food prices rose by 128-percent and prices in the general economy rose 102-percent. The study was requested by Senators Herb Kohl of Wisconsin and Chuck Grassley of Iowa.
Farmland Values Drop
After going up for 21 consecutive years - farmland prices dropped this year. Experts say this trend is reflective of the recession. At the start of 2009 - the value of all land and buildings on farms averaged 21-hundred dollars an acre - down 3.2-percent from a year earlier. In its annual report - USDA said prices in Corn Belt states fell 2.2-percent to $3,620 an acre. In Montana - they plunged 22-percent to 700-dollars. In comparison - home prices in cities were down 19-percent last year and led to a 35-percent plunge in commercial values from an October 2007 peak.
The Department of Agriculture reported that Northeast states were the most expensive of the 10 regions in the lower 48 states with an average price of $4,830 an acre. The least-expensive area was the Mountain states at $922 an acre. Even after the declines - the value of U.S. farmland - excluding Alaska and Hawaii - was the second-highest on record - above the $2,010 mark of 2007.
Jeff Conrad at Hancock Agricultural Investment Group in Boston is optimistic. He sees farmland starting to pick up and judges it may return 10-percent a year as the recession eases. Conrad adds population, more Western-style diets and land availability all point toward more growth.
Jason Henderson - a Vice President with the Federal Reserve Bank of Kansas City - says rural property values fell less than city prices because farmers’ debt loads are the lowest in the last 50 years. USDA forecasts the ratio of debt to assets will be 9.1-percent this year - less than half the levels seen at the peak of the 1980s farm crisis.
The Department of Agriculture reported that Northeast states were the most expensive of the 10 regions in the lower 48 states with an average price of $4,830 an acre. The least-expensive area was the Mountain states at $922 an acre. Even after the declines - the value of U.S. farmland - excluding Alaska and Hawaii - was the second-highest on record - above the $2,010 mark of 2007.
Jeff Conrad at Hancock Agricultural Investment Group in Boston is optimistic. He sees farmland starting to pick up and judges it may return 10-percent a year as the recession eases. Conrad adds population, more Western-style diets and land availability all point toward more growth.
Jason Henderson - a Vice President with the Federal Reserve Bank of Kansas City - says rural property values fell less than city prices because farmers’ debt loads are the lowest in the last 50 years. USDA forecasts the ratio of debt to assets will be 9.1-percent this year - less than half the levels seen at the peak of the 1980s farm crisis.
Recent Study Shows Benefits of Cellulosic E85
WorldAutoSteel released a study Tuesday that shows cellulosic E85 is the best fuel to reduce greenhouse gas emissions compared to other alternatives like hybrid technology or fuel cells. Growth Energy CEO Tom Buis says the report reinforces the promise of ethanol as the cleanest, greenest fuel for cars. Unfortunately - he notes - a government cap on the amount of ethanol that can be blended with gasoline is stifling second-generation biofuel development and commercialization. He says that needs to be increased.
Buis adds automakers need to manufacture more flex-fuel vehicles so they can utilize higher blends of ethanol. He says these common sense solutions can speed the introduction of cellulosic ethanol to the marketplace while creating green collar jobs and reducing the nation’s dependence on foreign oil.
Buis adds automakers need to manufacture more flex-fuel vehicles so they can utilize higher blends of ethanol. He says these common sense solutions can speed the introduction of cellulosic ethanol to the marketplace while creating green collar jobs and reducing the nation’s dependence on foreign oil.
Farm Safety Net Not in Jeopardy
North Dakota Senator Kent Conrad told those attending the 26th International Sweetener Symposium in Park City, Utah, that the farm safety net was not a problem in setting federal spending. The Chairman of the Budget Committee said the 2008 Farm Bill already included steep cuts for agriculture. Plus - he said agriculture is not the big problem.
Instead - he suggests the problem areas include Social Security, healthcare and inadequate revenue collection. Conrad said agriculture would be in good shape during future negotiations. Conrad also said targeting sweetened soft drinks to help raise funds to pay for healthcare reform is now unlikely. The vast majority of soft drinks are sweetened with high fructose corn syrup, not sugar. Sugar producers oppose the proposed soda tax because, as the American Sugar Alliance put it, - such a tax would penalize our colleagues in the corn farming business and wrongly demonizes sweetened products.
Instead - he suggests the problem areas include Social Security, healthcare and inadequate revenue collection. Conrad said agriculture would be in good shape during future negotiations. Conrad also said targeting sweetened soft drinks to help raise funds to pay for healthcare reform is now unlikely. The vast majority of soft drinks are sweetened with high fructose corn syrup, not sugar. Sugar producers oppose the proposed soda tax because, as the American Sugar Alliance put it, - such a tax would penalize our colleagues in the corn farming business and wrongly demonizes sweetened products.
Subscribe to:
Posts (Atom)
