NE Cattlemen concerned about regulatory czar

Last week the Senate confirmed President Obama's nominee for "regulatory czar (ZAR)" after months of delay.  Senators voted 57-40 to approve Harvard professor Cass Sunstein as the administrator of the Office of Information and Regulatory Affairs at the Office of Budget and Management.
Sustein will have the authority review and responsibility to review, approve, reject,  or change any and all regulations promulgated by the current administration. 

Michael Keley, Nebraska Cattlemen Executive Vice President says his conformation is concerning because of Mr. Sustein's prominent history with the animal rights community.  Kelsey says his conformation will require the cattle industry to be vigilant and observant on what is going on within future regulations.

Nebraska Senators Ben Nelson and Mike Johanns, Kansas Senators Sam Brownback and Pat Roberts and Wyoming Senators Mike Enzi and John Barrasso...all voted against Sunstein's conformation.
(note Iowa split vote - - - Chuck Grassley (Nay) and Tom Harkin (Yea)



Variance application required when adding new irrigated acres

Landowners within the 10/50 Area, wishing to develop new irrigated acres on their farmland will need to contact the Lower Elkhorn Natural Resources District (LENRD) office for a variance application form. The deadline is October 1st . Test hole data and gallons per minute calculations are also required.

LENRD Water Resources Manager Rick Wozniak said, "The LENRD Board of Directors can only allow 2,500 new irrigated acres in 2010, so they have carefully designed a process to determine which variance applications will be approved. The first step for anyone wanting to develop new irrigated acres is to submit an application to the LENRD."

Applications will be ranked with a scoring system and variances will be approved by December 31st . Stop by the LENRD office in Norfolk or call Rick or Brian at 371-7313. LB 483 only allows the LENRD to develop 2500 acres annually in the 10/50 Area. To apply for a variance, submit your application by October 1st .

Wozniak added, "The October 1st date only applies to land that is in the 10/50 Area. The rule for land outside that area is very similar, but the due date for variance applications will be later this year."



 Gov. Heineman Offers Comments to Improve Agricultural Trade with South Korea

Gov. Dave Heineman forwarded comments this week to the federal government in support of a free trade agreement that will expand markets for the state’s livestock industry. In a letter addressed to the Office of the U.S. Trade Representative, the Governor expressed support for the U.S.- Korea Free Trade Agreement. The document currently is awaiting Congressional consideration.

“The Nebraska agriculture industry operates in a global economy, and to continue to be successful, we need growth in overseas markets,” Gov. Heineman said. “This free trade agreement holds potential benefits for our beef and pork sectors, as well as other commodities. I am hopeful that the U.S. Trade Representative will work with the U.S. Congress to move this agreement forward.”

South Korea was Nebraska’s fifth-largest export market in 2008, with $149 million in goods shipped. Beef and pork products were among the top exports. Through the Free Trade Agreement, market access is expanded for beef and pork, and tariffs are dropped for wheat, corn and soybeans.

The U.S.-Korea FTA will enhance market building efforts already being conducted by industry groups and the Nebraska Department of Agriculture (NDA) in Asia. This week, NDA is coordinating a beef and pork promotion in Japan, and the visit includes meetings with two large Korean meat importers.

In addition, Gov. Heineman in 2008 hosted South Korean Ambassador Lee Tae Sik in Omaha. The two discussed improved beef access and other opportunities to expand Nebraska exports to the country.

“Long-term market growth is a critical component in our efforts to assist our ailing livestock sector,” Gov. Heineman said. “We will continue to develop relationships that translate into sales to positively impact our farmers, ranchers and agribusinesses.”



NFU Announces 2009 Golden Triangle Awards

National Farmers Union announced today the recipients of the organization's highest legislative honor, the 2009 Golden Triangle Awards. The annual award is presented to members of Congress who have demonstrated leadership on issues relevant to America's family farmers, ranchers and rural communities.

"These leaders have demonstrated a commitment to developing constructive solutions to address the challenges facing those in rural America while also looking for creative opportunities for the future," NFU President Roger Johnson said.

This year's Golden Triangle recipients were selected for their leadership on a variety of issues, including: work to address the crisis in the dairy industry, support for climate change and energy legislation, efforts to increase transparency and oversight of commodity markets, support for increasing the use and production of renewable fuels, and increasing competition in the marketplace. The awards will be presented during NFU's annual fall fly-in this week.

The Golden Triangle Award is based on NFU's symbol - a triangle with "legislation" and "cooperation" forming the sides and "education" the base. The Golden Triangle Awards have been presented annually since 1988. The following lawmakers have been named 2009 recipients of the Golden Triangle Award in Nebraska: Sen. Ben Nelson, D-Neb. and Rep. Jeff Fortenberry, R-Neb.  The following lawmakers have been named 2009 recipients of the Golden Triangle Award in Iowa: Sen. Tom Harkin, D-Iowa; Sen. Charles E. Grassley, R-Iowa; Rep. Leonard L. Boswell, D-Iowa; and Rep. Bruce L. Braley, D-Iowa.  



NPPC Briefs U.S. Trading Partners On H1N1 Flu

At a briefing yesterday evening, the National Pork Producers Council told foreign officials that the U.S. pork industry and the U.S. government are gearing up for a return of the novel H1N1 flu and that both would continue to get out the messages that the flu is not transmitted through food (pork) and that pork is safe to eat.

“We’re all dealing with the H1N1 flu in our respective countries,” NPPC CEO Neil Dierks told embassy officials from 25 countries at a reception with members of NPPC’s board of directors. “We just need to remember that the flu is not a food-borne illness; you can’t get the H1N1 flu from eating pork.”

NPPC has been working with the Office of the U.S. Trade Representative and the U.S. Department of Agriculture to reopen to U.S. pork exports markets that were closed in the wake of the H1N1 flu outbreak, which received wide media attention starting April 24. While most nations that had them in place have lifted their bans on U.S. pork, China and a few other countries have maintained them, citing fears of H1N1, which much of the media misnamed “swine” flu. China was the third largest U.S. pork export market in 2008, buying nearly $690 million of U.S. pork and pork products.

The pork export bans and a drop in consumer demand in the weeks following initial reports on the H1N1 flu, coupled with rising production costs and a worldwide economic slowdown that began two years ago, have cost the U.S. pork industry more than $4.6 billion. U.S. pork producers lost an average of nearly $25 per market hog and a combined $991 million from April 24 to mid-August.

NPPC’s briefing followed a Sept. 9 briefing by the Obama administration on the U.S. government’s H1N1 response and surveillance efforts for trade officials from 30 countries.



Tyson, Iowa Reach Agreement on Hog Production Contracting

Tyson Fresh Meats and the state of Iowa have reached an agreement that waives enforcement of the state's ban on packer ownership of livestock and gives the company's hog suppliers certain protections in contracting with the company.

Terms of the agreement are outlined in a consent decree approved Friday by a federal judge. The pact resolves a dispute over the constitutionality of Iowa's bans preventing processors from establishing vertically integrated pork operations in the state.

The settlement provides that Tyson Fresh Meats, a subsidiary of Springdale, Ark.-based Tyson Foods Inc., can maintain its business operations including hog contracting in Iowa. Tyson procures hogs from independent growers in Iowa and slaughters the animals at company-owned plants in Columbus Junction, Perry, Storm Lake and Waterloo, Iowa.

"This agreement will allow Tyson and independent pork producers to consider new and different ways to ensure the producers remain economically viable so they can continue to provide a steady supply of hogs to the company's processing plants," says spokesman Gary Mickelson. "This may include modifications in hog marketing agreements and, in some cases, could involve Tyson extending credit to qualified producers."

Meanwhile, the pact affords Tyson's contract producers certain rights, including the right to be a "whistle-blower," the right to join an association, the right to use a contract producer lien and the right to publicly discuss and disclose the terms of their contracts, according to a statement by Iowa Attorney General Tom Miller.

Among other specific stipulations to which Tyson has agreed are agreement that the company cannot finish hogs in company-owned facilities before Sept. 16, 2010, and that for two years 25 percent of the swine slaughtered at its plants in Iowa will be bought on the open market from sellers other than Tyson affiliates.

"Our long-term business plan is to continue to rely on independent producers and we do not intend to change our long-term model to a vertically integrated system," the company said.

Miller noted that Iowa made no allegation that Tyson has violated state law. "On the contrary: Tyson approached our office to begin negotiations prior to engaging in production contracting," he said.

The agreement with Tyson is very similar to agreements Iowa has made with Hormel Foods Corp., Cargill and Smithfield Foods Inc. The agreement expires Sept. 10, 2015.



Iowa Soybean Association holds board elections

            The Iowa Soybean Association (ISA) recently held its board elections. Delbert Christensen took his seat as president and Randy VanKooten of Lynnville was chosen as president-elect. Brian Kemp of Sibley was elected treasurer and Mark Jackson of Rose Hill was elected secretary. Dean Coleman of Humboldt was reelected to the executive committee.

            Former ISA President John Heisdorffer of Keota was recognized for his contribution to the association during his term as president. Heisdorffer and his wife, Deanna, operate a farm near Keota, where they raise corn and soybeans with some CRP acreage. Their operation also includes two feeder-to-finish swine barns. Heisdorffer also participated in a recent trade mission to China to learn firsthand about the largest customer of U.S. soybeans. He is also a director of a local biodiesel plant and represents that board to the National Biodiesel Board (NBB). He has served as secretary, treasurer and technical committee chairman of the NBB.  He has made trips to Washington D.C., for five continuous years and has met with Iowa’s senators and congressmen on behalf of NBB. In addition, he has served for 11 years on a local cooperative board.

            Heisdorffer noted a couple of highlights during his term as president, including watching ISA’s new building be constructed and interacting with other state soybean associations and their leaders to cooperate on programs. Heisdorffer hopes the board will continue to connect with soybean growers

            “I hope that the new executive committee and board will have success in launching our new membership program,” Heisdorffer says. “We also need to be conscience of our customers’ needs and be sure we’re ready to meet them.”

            John Schlorholtz of Percival was also recognized for the two years he served on ISA’s board. Schlorholtz and his wife, Teresa, raise soybeans, and he was a director for six years with his local Co-Op. He spent eight years on the Fremont County Extension Council, and was president for three years for the Fremont/Page Corn and Soybean Association. Schlorholtz did not seek re-election to ISA’s board.



U.S. Grains Council Names Thomas C. Dorr President and CEO

Former USDA Undersecretary for Rural Development Thomas C. Dorr will serve as president and CEO of the Washington, D.C., based U.S. Grains Council. Dorr accepted the charge to head the country’s largest export market development organization for barley, corn, sorghum and their co-products on Sept. 8, 2009. He will officially assume the role on Nov. 16. Dorr said being an Iowa farmer for more than 30 years and serving seven years with USDA afforded him the opportunity to understand and value the nearly 50 years of export market development efforts orchestrated by the Council.

“I am very familiar with the worldwide market development programs the Council has conducted since 1960,” said Dorr. “The Council is focused on global initiatives, but the real purpose of this organization is to sustain and build economic opportunity not only for rural America, but worldwide. I am excited to have the privilege to serve U.S. farmers and agribusinesses in this new capacity.”

Rick Fruth, USGC chairman and Ohio farmer, said Dorr has a broad agricultural, financial and business experience that qualifies him to lead the organization. “Dorr has a long history of service to agriculture and rural America, especially U.S. agriculture, and truly understands the day-to-day challenges U.S. farmers face. He has an ability to facilitate consensus and enable unity resulting in solid solutions,” said Fruth. “He will have an exceptional global staff ready to serve.”

As undersecretary for Rural Development, Dorr led programs to expand rural infrastructure, including electric, broadband and water services, rural entrepreneurial efforts and rural housing. Dorr has served as a member of the board of directors of the 7th District Federal Reserve Bank of Chicago, the Iowa Board of Regents and as a member and officer of the Iowa and National Corn Growers Associations. Dorr, from Marcus, Iowa, was the president of a family farm and agribusiness company for 29 years.

Dorr said his first priority will be to work with the Council’s membership, Board of Directors and staff to clearly define, not just the challenges, but the opportunities for international grain trade. “I am thrilled to be afforded the honor to work with and for an organization that has developed trusted relationships with international government leaders, livestock producers and grain processing organizations worldwide. Its membership intends we continue to build on its successes.”

Dorr succeeds Ken Hobbie, USGC’s president and CEO for the last 18 years and who has been with the Council for a total of 33 years. Kelly Kincannon, chairman of Kincannon and Reed, a Washington, D.C., based global executive search firm focused on the food, agribusiness and life science sectors, assisted in the recruitment.



Eggs in Incubators on September 1 Down 7 Percent from Last Year

Turkey eggs in incubators on September 1, 2009, in the United States totaled 26.5 million, down 7 percent from September 1, 2008.  Eggs in incubators were down 7 percent from the August 1, 2009 total of 28.6 million eggs.  Regional changes from the previous year were:  East North Central down 14 percent, West North Central down 1 percent, North and South Atlantic down 19 percent, and South Central and West up 25 percent.

Poults Hatched During August Down 8 Percent from Last Year

Turkey poults hatched during August 2009, in the United States totaled 23.3 million, down 8 percent from August 2008.  Poults hatched were down 10 percent from July 2009 total of  25.8 million poults.  Regional changes from the previous year were:  East North Central down 11 percent, West North Central down 7 percent, North and South Atlantic down 8 percent, and South Central and West down 10 percent.

Net Poults Placed During August Down 7 Percent from Last Year

The 22.5 million net poults placed during August 2009 in the United States were down 7 percent from the number placed during the same month a year earlier.  Net placements were down 10 percent from the July 2009 total of 25.0 million.  

Nebraska and Iowa are part of the West North Central region referenced above.



ABARE Raises Australia Wheat Crop Estimate

Australia's 2009-10 wheat crop is now estimated at 22.7 million metric tons (MMT), according to the Australian Bureau of Agricultural and Resource Economics (ABARE). The agency previously forecast the crop in June at 22 MMT.  Concerns have mounted about the Australian wheat crop given dryness in Queensland and portions of New South Wales. And ABARE addressed that issue, noting "The prospects for winter crops in most regions in Queensland and the northern New South Wales grains belt have been adversely affected by below average winter rainfall. Crops in southern New South Wales are in urgent need of good rains, with some having already failed and the yield potential of most others declining rapidly."  However, ABARE also pointed out that "lower expected crop production in these regions is likely to be more than offset by the improved outlook for Western Australia."