Agri Business Updates with Chad Moyer
Thursday September 17 Ag News
Posted by Chad
September proclaimed Renewable Fuels Month in Nebraska

The Nebraska Corn Board and Nebraska Soybean Board hosted an event at Husker Harvest Days today recognizing the contributions of Nebraska farmers and agribusinesses to the nation’s biofuel industry. At the event, Nebraska Governor Dave Heineman signed a declaration proclaiming September as Renewable Fuels Awareness Month in Nebraska.  “The renewable fuels sector has been a tremendous asset in furthering economic development, particularly in our rural communities,” Gov. Heineman said. “This industry has added strength to our agriculture industry, created job and education opportunities for our residents, and brought new investment to our rural areas. Nebraska’s role as a major producer of biofuels is also helping American drivers reduce our dependence on foreign oil.”

The Nebraska Corn Board and Nebraska Soybean Board noted that the proclamation is a reminder of the importance Nebraska plays in the renewable fuels sector, both as a production center and broad adopter of renewable fuels.  At the ceremony, Alan Tiemann, chairman of the Nebraska Corn Board, and Gregg Fujan, chairman of the Nebraska Soybean Board, expressed appreciation of the governor for his support of the renewable fuels industry in Nebraska.

“Having Governor Heineman sign the proclamation and reiterate his support for renewable fuels production and use in Nebraska is appreciated by corn and soybean farmers across the state,” said Tiemann, a farmer from Seward, Neb. “Nebraska is the second-largest ethanol producing state in the country, which means we’re helping fuel the country with a renewable, clean burning fuel. At the same time, those ethanol facilities are producing a high-quality feed for our livestock industry, further adding to the benefits of corn ethanol production.”  Tiemann added that ethanol production across the country is at an all time high and headed toward 10.5 billion gallons by year-end.

Fujan, a soybean farmer from Weston, Neb., noted that as farmers head out to harvest bumper crops this year, many will be fueling their equipment with soy biodiesel and vehicles with ethanol – so it makes sense for corn and soybean farmers to work together for Renewable Fuels Awareness Month. “We appreciate Governor Heineman’s leadership in promoting Nebraska’s growing biofuels industry and recognizing our efforts,” Fujan said.  “The soybean checkoff has invested more than $60 million into the research, development and promotion of soy biodiesel fuel over the past 12 years. This commitment has created one of the fastest growing alternative fuels in the country today and has created opportunities for a new industry right here in Nebraska,” Fujan said. “Because biodiesel is only made from the oil portion of the bean, soy biodiesel production and use continues the reliable and consistent supply of soybean meal that livestock producers depend on.”



WDGS May Be High-Quality, Low-Cost Livestock Feed


Agricultural Research Service (ARS) studies have shown that "wet distiller's grain with solubles," or WDGS, may offer an inexpensive alternative to traditional feed ingredients when fed to livestock. WDGS is a common ethanol byproduct that could replace more costly traditional feed ingredients such as corn, soybean meal, urea, and mineral supplements. WDGS typically costs about 10 percent less than corn when used as livestock feed.  ARS scientists at the U.S. Meat Animal Research Center (USMARC) in Clay Center, Neb., have studied the effects of feeding WDGS to cattle. Four areas were investigated: feedlot performance, energy utilization efficiency, postharvest meat characteristics, and cattle manure emissions.

In one study, nutritionist Calvin Ferrell and food technologist Steven Shackelford monitored growth rate, feed intake, and feed efficiency for cattle in the "finishing phase"-the approximately 120 to 140 days leading up to slaughter. They found that in steers fed diets of 20 to 40 percent WDGS, performance in those areas was equal to or better than that of a group of cattle that did not receive the WDGS.  Another study, led by animal scientist Mindy Spiehs, took a closer look at feed efficiency by examining how much heat animals produced while digesting their food. Spiehs and her colleagues observed no significant difference in heat production between cattle fed 0, 20, 40, or 60 percent WDGS. But they did see lower energy utilization efficiency at the highest rate, a factor that could reduce feedlot performance.

Looking at meat quality, Shackelford, research leader Tommy Wheeler and food technologist Andy King found that feeding a diet of 20 or 40 percent WDGS produced carcasses that were the same or better for yield and quality traits than carcasses of cattle that did not eat the WDGS. Cattle fed 60 percent WDGS diets were lighter, leaner, less marbled, and had lower yield grades than cattle in the groups that consumed lower quantities of WDGS or none at all.  Microbiologist Vince Varel confirmed that as the concentration of WDGS increased in the diet, greater concentrations of nitrogen, phosphorus, and sulfur appeared in manure, mostly due to excess crude protein. Microbiologists Jim Wells and Elaine Berry also examined how WDGS diets affected persistence of E. coli bacteria in cattle feces and manure.



Thoughts on this winter's Natural Gas prices


Many Nebraskans can expect to see lower heating bills this winter thanks to lower natural gas process nationwide. Blacks Hills Energy supplies gas to nearly 200-thousand customers in eastern Nebraska. Spokesman Bob McKeon (Mick-CYUNE) tells NET Radio heating bills could drop this year by 20 to 25 percent. But McKeon cautions that a lot could change between now and the beginning of winter.  McKeon says if the region were to see an unusually cold winter, that could also drive up natural gas prices. Those prices are currently at a seven-year low. That’s due in part to the recession, and because of a mild summer that has required less energy use for air conditioning. McKeon says his company has already purchased about 55 percent of its winter supply of natural gas. The final cost to customers will be determined in part by what the company has to pay for the remaining 45 percent.



USDA Designates Eight Counties in Iowa as Primary Natural Disaster Areas
Decision Allows Farmers and Ranchers to Apply for USDA Assistance

The U.S. Department of Agriculture designated Calhoun, Grundy, Hamilton, Hardin, Ida, Sac, Webster and Woodbury counties in Iowa as primary natural disaster areas because of losses caused by severe storms, hail and flooding that occurred from Aug. 1, 2009, through Aug. 9, 2009.

"President Obama and I understand these conditions caused severe damage to the area and serious harm to farms in Iowa," said Secretary Tom Vilsack. "These designations will provide help to farmers who suffered significant production losses to field crops such as corn and soybeans, truck crops such as onions, peppers, eggplant, cane fruits, melons, squash and sweet corn, and forage crops."

 
Farm operators in the counties listed below in Iowa also qualify for natural disaster benefits because their counties are contiguous. Those counties are:
Black Hawk, Cherokee, Humboldt, Pocahontas, Boone, Crawford, Marshall, Story, Buena Vista, Franklin, Monona, Tama, Butler, Greene, Plymouth, Wright, Carroll

Farm operators in the counties listed below in the adjacent states of Nebraska and South Dakota also qualify for natural disaster benefits because their counties are contiguous.
Nebraska: Dakota and Thurston
South Dakota: Union

All counties listed above were designated natural disaster areas Sept. 10, 2009, making all qualified farm operators in the designated areas eligible for low interest emergency (EM) loans from USDA?s Farm Service Agency (FSA), provided eligibility requirements are met. Farmers in eligible counties have eight months from the date of the declaration to apply for loans to help cover part of their actual losses. FSA will consider each loan application on its own merits, taking into account the extent of losses, security available and repayment ability. FSA has a variety of programs, in addition to the EM loan program, to help eligible farmers recover from adversity.



FSIS Proposes Rules for Interstate Meat Shipment

USDA's Food Safety and Inspection Service will publish proposed regulations today to implement a new voluntary cooperative program under which select state-inspected establishments will be eligible to ship meat and poultry products in interstate commerce. The new program was created in the 2008 Farm Bill to supplement the existing Federal-State cooperative inspection program to allow state-inspected plants with 25 or fewer employees to ship products across state lines. This announcement is part of the USDA's new 'Know Your Farmer, Know Your Food' initiative, which seeks to better connect consumers with local producers to help develop local and regional food systems to spur economic opportunity.

Currently, 27 states operate state meat or poultry inspection programs, and FSIS verifies that the State programs are implementing requirements that are "at least equal to" those imposed under the Federal meat and poultry products inspection acts. For these programs, FSIS provides up to 50 percent of the state's operating funds and provides oversight and enforcement of the program.

Under the proposed rule, which went on display at the Office of the Federal Register Monday and will be published Wednesday, selected establishments will receive inspection services from federally trained and/or supervised State inspection personnel who will verify that the establishments meet all Federal food safety requirements. Meat and poultry products produced under the voluntary cooperative program will bear an official USDA mark of inspection, thereby enabling interstate shipment of the products.  State-inspected establishments that are not selected for the voluntary cooperative program, including state-inspected establishments with more than 25 employees, are only eligible to sell and ship their products within their state.



Weaning Management Meeting Available Online

The Iowa Beef Center is adding online meetings to the way it offers information. In addition to holding local meetings and statewide conferences, a new format -- the online meeting -- is being debuted this fall.  The first online meeting, "Fall Cowherd Decisions: Herd and Calf Weaning, Marketing and Management," is now available at www.iowabeefcenter.org/content/weaningconference.html . The course offers sessions that cover nutrition, health, marketing, cow culling and weaning strategies. The course material is offered by livestock experts in a variety of ways -- podcasts, voice-over PowerPoint presentations, fact sheets, newsletters and spreadsheets.

"The online meeting is a great way to receive information on your own time," said John Lawrence, Iowa State University Extension livestock economist. "You have access to a meeting agenda that is the same as an in-person meeting, only this agenda links you directly to the research and advice you seek. Instead of waiting for a meeting to listen to a speaker, you'll receive the same information when it is convenient for you."  Lawrence says one session, "Making Marketing Decisions This Fall," includes a podcast on fall marketing outlook; a voice-over PowerPoint presentation titled "Factors Impacting Feeder Cattle Prices at Iowa Auctions" and a useful spreadsheet on feeder cattle marketing assessment.

"The online presentations and handouts are prepared by Iowa Beef Center's beef cattle experts; participants will get the same information that they would receive at an in-person meeting or conference," said Lawrence. "This first course includes the latest information on weaning management topics ranging from vaccinations to stress management. Related topics, such as cow culling, are covered to help producers make management decisions that coincide with weaning decisions."

Course participants can view the material all at one time, or make repeat visits back to the site as time and interests allow. There is no charge for participating in the online course offerings available from the Iowa Beef Center Web site, www.iowabeefcenter.org .



JBS to Purchase Majority Equity in Pilgrim's Pride

Pilgrim's Pride has agreed to sell Brazilian beef processor JBS a majority equity stake as part of the poultry processor's plan as it emerges from bankrupcty. Under the terms of the reorganization plan, Pilgrim's Pride will sell 64% of the new common stock to JBS for $800 million in cash.  Existing shareholders will get 36% of its new stock under the reorganization plan, which must be confirmed by a bankruptcy judge. Proceeds from the sale will be used to pay off debts, and Pilgrim's Pride anticipates the plan to be confirmed by the Bankruptcy Court  before the end of December.

    "Over the past 10 months, we have fundamentally restructured Pilgrim's Pride as a market-driven company clearly focused on delivering the best service, selection and value to our customers as efficiently as possible," says Don Jackson, president and chief executive officer. "Thanks to the shared commitment and hard work of our employees, we believe that Pilgrim's Pride is positioned to emerge from bankruptcy as a stronger, more efficient competitor. We have returned to profitability, the quality of our asset base has improved significantly and we are gaining additional business. While we recognize that some of the changes made during our restructuring have been painful for our employees and contract growers, these decisions were absolutely necessary in helping Pilgrim's Pride to operate more efficiently while protecting the greatest number of jobs in the long-term. As a result of the improvements achieved this year, we believe we have been able to maximize the value of our company through our plan of reorganization that achieves what precious few restructurings can: full repayment of allowed creditor claims and substantial retained value for existing stockholders."

    "Looking ahead, we are truly excited about the strategic growth opportunities available with JBS as our majority shareholder," Dr. Jackson added. "JBS has a well-earned global reputation for operational and service excellence in beef and pork production. We are confident that our plan will earn the support of all stakeholders and provide the foundation for sustained, profitable growth in the years ahead."  "We believe our reorganization plan will pave the way for Pilgrim's Pride to emerge from bankruptcy before the end of the year and mark a new beginning for this proud company, one that I fully support and endorse," says Lonnie "Bo" Pilgrim, senior chairman. "While the past year has been a difficult time for everyone involved in our restructuring, I take pride in knowing that we have a plan in place to pay back our creditors in full and preserve a great deal of value for our existing stockholders."

"Two years ago, JBS acquired Swift & Company, a U.S. beef and pork company, with a goal of managing its strong assets and turning it into a well-managed, efficient and profitable company. We believe the company's performance demonstrates our continued success in meeting this goal," says Wesley M. Batista, president and chief executive officer of JBS USA Holdings. "In 2008, we acquired Smithfield Beef and Five Rivers Cattle Feeding to strengthen our beef platform and provide synergies to our existing operations. As a U.S. beef and pork company, we are proud to now enter into the U.S. poultry industry with the acquisition of Pilgrim's Pride. We look forward to working with Pilgrim's management to increase the company's competitiveness both domestically and internationally. As we have accomplished with our beef and pork platforms, we will utilize our existing assets and strong management to grow Pilgrim's poultry business. We are excited about the opportunity to work with Pilgrim's employees, contract growers, customers, vendors and shareholders to enhance value."



Kohl Wants Officials to Look at Antitrust Concerns in Dairy Industry


U.S. Senator Herb Kohl is calling on two federal agencies to scrutinize antitrust enforcement within the dairy industry. In a letter to Secretary of Agriculture Tom Vilsack and Assistant Attorney General Christine Varney, the Milwaukee Democrat asked that their respective departments focus on the consolidation of milk processors and anticompetitive practices in agriculture, and urged them to hold a workshop on dairy in Wisconsin as part of upcoming series of DOJ/USDA workshops about agriculture competition.

Kohl chairs the Senate Agriculture Appropriations panel and Chairman of the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights. He says hard-working family farmers are the backbone of the dairy industry and face significant competitive constraints--especially during the current dairy crisis.  "They currently struggle with milk prices that have fallen to historic lows while the costs of production--including feed, fertilizer and fuel--have risen drastically," Kohl said. "This makes it increasingly difficult for continued operation, and many are forced to close their doors. Processor consolidation, especially where fluid milk is concerned, has in some regions left farmers with few marketing options."

The letter goes on to say that processor consolidation is also an area of legitimate concern for consumers. Kohl says despite historically low farmgate prices for fluid milk, consumers have seen little of the benefit of lower prices.  "We need to explore in assertive detail whether the exercise of monopoly pricing power is contributing to this situation," he noted.  Kohl also praised efforts to help farmers by strengthened the Milk Income Loss Contract program in the last farm bill and working on an appropriations measure that would bolster dairy support. But he says more needs to be done.



Northeast Plans Ag Conference for Women


No matter what their role, women in agriculture can fulfill it with more confidence and knowledge after attending a one-day conference at Northeast Community College in Norfolk.  The conference, AG-ceptional Women, is Friday, November 20th, from 8 a.m. until 5:30 p.m. in the Lifelong Learning Center on the Northeast campus in Norfolk.  Bonnie Schulz, Northeast agriculture instructor, and Corinne Morris, associate dean of the agriculture, health and science division, are conference directors.  According to Schulz, this conference is designed to help farm wives, country gals, and agribusiness women empower themselves to meet the challenges of the diverse agriculture industry.

 “This conference will provide a networking venue where women in agriculture can gain knowledge to develop management skills, confidence in their decision making, and information for an overall sense of well-being.,” she said. She said this conference is ideal for women who want to learn more about farm/ranch management, woman landowners, women involved in day-to-day business and family decisions, and women involved in other facets of agribusiness.  “We hope to empower women to meet their goals in agriculture in this seminar,” Schulz said. “If management/ownership is a goal, we want to provide information to help women reach that goal. If attending or returning to college to earn a degree is a goal, we want to provide information on how a busy woman can do that.”

 Registration and a continental breakfast with soy donuts, compliments of the Nebraska Soybean Board, are scheduled for 8-9 a.m. Following a welcome at 9, Mary Kay Mueller, the Gratitude Guru, will present the keynote address at 9:30. Mueller is the author of the book, “Taking Care of Me: The Habits of Happiness.” Based on her book, Mueller will explore why we run from happiness; the habits of the happiest people, how to make happiness contagious, and more.  Break-out sessions are scheduled at 11 a.m. and 1:30, 2:30 and 4 p.m. Each participant can choose to attend four, 45-minute break-out sessions by 26 different presenters during the course of the day. The break-out sessions will include topics like farm tax strategies; insurance; sustaining innovation in food, feed and fuel; the future of irrigation water; online grain marketing, grain marketing strategies and commodity marketing; agri-tourism; basic crop insurance; fitness for a busy lifestyle, and classes and technology for agriculture. “We have many more interesting break-outs sessions,” Schulz said. “I encourage everyone to find out more at www.northeast.edu”

 A luncheon with a Fashion Show by RENEGADE Work, Western, and Weekend is scheduled for noon.  Lynette Brown, a dairy farm wife and Harlan County Extension Assistant, will wrap up the day with a humorous look at the role Ag women have in farming and ranching. She will also examine the differences and similarities in that role between herself and her mother and grandmother.  According to Schulz, registration fees have been kept affordable because of the assistance of 75 business, commodity board, agencies, and organizations. Pre-registration is available now through Tuesday, November 10, at a cost of $25. After the 10th, registration is $40. The fee includes all workshops and materials, continental breakfast, lunch, and breaks.

 A printable registration form is available online at www.northeast.edu Registrants should make checks payable to Northeast Community College.