September proclaimed Renewable Fuels Month in Nebraska

The benefits of the renewable fuels ethanol and biodiesel were heralded at Husker Harvest Days today when Nebraska Governor Dave Heineman declared September as Renewable Fuels Awareness Month in Nebraska.

The proclamation was coordinated through the Nebraska Corn Board and Nebraska Soybean Board, who hosted the event at Husker Harvest Days to recognize the contributions of Nebraska farmers and agribusinesses to the nation’s renewable fuel supply.

“Nebraska’s renewable fuels sector contributes to local communities by providing good paying jobs for thousands of Nebraskans,” said Gov. Heineman. “Renewable fuels are a critical component of becoming energy independent and by providing an alternative to imported oil. We are fortunate to have a strong biofuels industry with thousands of Nebraskans working to fuel America.”

NASCAR driver Kenny Wallace also attended the ceremony. One of Wallace’s sponsors this year is American Ethanol, which is supported in part by Nebraska farmers through the Nebraska Corn Board.

“I’ve been across the country meeting farmers and it is really exciting to see their commitment to ethanol and all renewable fuels,” Wallace said. “Biofuels bring so much good to rural communities and they keep more of our energy dollars in this country where they belong. I’m proud to promote ethanol and really appreciate knowing that there’s ethanol in every tank when we’re on the track each week.”

NASCAR switched to Sunoco Green E15, a 15 percent ethanol fuel, this year.

Alan Tiemann, chairman of the Nebraska Corn Board, and Lisa Lunz, chairwoman of the Nebraska Soybean Board, also addressed the crowd.

“Across the country ethanol provides more than $3 billion in local, state and federal tax revenues and provides thousands of jobs, including more than 2,000 in small-town Nebraska,” said Tiemann, a farmer from Seward. “At the same time, ethanol plants produce millions of tons of the livestock feed distillers grains, which are widely used not only in the United States but around the world.”

Tiemann noted that ethanol production across the country is at an all time high and surpassed 13.2 billion gallons last year.

Lunz, a farmer from Wakefield, Neb., said soy biodiesel is seeing new and exciting uses across the country, including in BioHeat, a heating oil blended with biodiesel used to heat millions of homes and businesses, primarily in the Northeast.

“The increased industrial demand of soybean oil for biodiesel, including for BioHeat, ultimately increases the supply of the feed ingredient soybean meal. That’s good for livestock producers right here in Nebraska,” she said. “We thank the Governor for his support of Renewable Fuels and Nebraska agriculture and we know that by working together, the future looks brighter, cleaner and greener for Nebraskans.”



Cover Crops Field Day Sept. 28 Near Mead

Cover crops will be the focus of a Sept. 28 field day at UNL's Agricultural Research and Development Center (ARDC) near Mead (1071 County Road G, Ithaca, NE). This free event will be from 1 to 5 p.m. with plenty of time for discussion and to answer your cover crop questions.

The field day will showcase 33 cover crop plots and discuss cover crop options that help build and feed the soil system. Featured cover crops include grasses, legumes, forages, brassicas, cocktail mixes, and others. While these plots were drilled into wheat residue, cover cropping options after corn and soybean harvest also will be discussed.

Speakers will include UNL Extension and NRCS no-till specialists working with cover crops and several cover crop seed vendors who will share their experiences. Special thanks to Arrow Seed, Green Cover Seed, and Prairie States Seed for providing the seed for the plots. Door prizes of cover crop seed will be given away for participants to try cover crops on their own farms.



Prairieland RC&D Looking for New Ideas


The PrairieLand Resource Conservation & Development Council will hold their annual meeting and banquet on Sept. 20 at Klub 81 near Humphrey (Hwys. 81 & 91 intersection).  The meeting will start at 6:30 p.m. with a social hour beginning at 5:30 p.m. The council will hold elections and have a roundtable discussion regarding the future of the RC&D program.

The public is always invited and encouraged to attend all PrairieLand RC&D meetings. PrairieLand RC&D is a non-profit organization helping concerned citizens complete vital rural development projects in Nance, Boone, Colfax, Madison, Stanton and Platte Counties. Everyone is encouraged to participate in active projects, propose new projects and attend meetings. Please join the group to find out what you can do to get involved in helping your rural community. Contact the RC&D office at 402-454-2026 for more information.



Antibiotic Resistance Tracking Faulted
GAO Study: US Unprepared to Deal With Growing Threat of Antibiotic-Resistant Bacteria

The poor job federal officials are doing of monitoring how antibiotics are used by livestock producers makes it impossible to properly examine the development of bacterial resistance to the drugs and the impact on Americans, according to a Government Accountability Office report.

"Without detailed use data and representative resistance data, agencies cannot examine trends and understand the relationship between use and resistance," the GAO concluded in a report requested by Rep. Louise Slaughter (D., N.Y.).

The Food and Drug Administration collects data on how much antibiotics are used on livestock, but doesn't monitor which kinds of animals get different kinds of antibiotics, the GAO said in a 77-page report released this week.

Livestock grown in the U.S. consumed about 29 million pounds of antibiotics in 2009 according to the latest data available from the FDA. About 74% of those drugs were fed to the animals. A much smaller amount was administered through water and even less was injected directly into the animals.

And data collected by the Agriculture Department, which monitors antibiotic resistant bacteria from cattle, swine, chicken and turkeys, fails to provide a comprehensive picture of the situation nationwide.

"This study reveals how unprepared we are to deal with the growing threat of antibiotic resistant bacteria and the American public should be outraged," said Slaughter. "We have had two massive meat recalls just in the last month showing salmonella strains resistant to antibiotics."

When antibiotics are dispersed to livestock in massive doses through animal feed for either therapeutic reasons or growth promotion, bacteria in the guts of those animals can become resistant, according to a recent USDA report that compiled studies conducted at the U.S. Centers for Disease Control and Prevention, the World Health Organization and elsewhere. Humans are then at risk of consuming that mutated bacteria, often by eating contaminated meat directly.



Statement from NPPC President Doug Wolf on GAO’s Report on Antibiotic Resistance

“Not only is there no scientific study linking antibiotic use in food animals to antibiotic resistance in humans, as the U.S. pork industry has continually pointed out, but there isn’t even adequate data to conduct a study.

“The GAO report on antibiotic resistance issued today confirms this, concluding that the limited data collected ‘lack crucial details necessary to examine trends and understand the relationship between use and resistance.’

“The pork industry long has supported the federal antibiotic-resistance monitoring program.

“Further, pork producers use antibiotics responsibly under veterinary supervision to keep their hogs healthy and to produce safe pork. They follow use and withdraw protocols set by FDA, which approves all animal health products after rigorously testing them to ensure their safety for animals, humans and the environment.”



Global Demand Drives Food Prices Higher in Third Quarter

Strong global demand, especially for pork and other protein-rich foods, was a primary driver behind higher retail prices at the supermarket during the third quarter of 2011, according to the latest American Farm Bureau Federation Marketbasket Survey.

The informal survey shows the total cost of 16 food items that can be used to prepare one or more meals was $53.12, up $1.95 or about 4 percent compared to the second quarter of 2011. Of the 16 items surveyed, 13 increased, two decreased and one remained the same in average price compared to the prior quarter.

“Global demand for meat and dairy products remains strong and continues to influence retail prices here in the U.S.,” said AFBF Economist John Anderson. “Many nations around the world rely on America to provide the food they need to improve their standard of living, particularly through the addition of protein to the diet. Strengthened demand for meats began in 2009, continued through 2010 and remains important as we look ahead to the close of 2011.”

Other factors also came into play.  “On-farm production costs for energy, fertilizer and fuel continue on an upward trend but those costs are largely borne by farmers and ranchers. But, in addition, after food leaves the farm or ranch, higher costs for transportation, marketing, processing and storage are added,” Anderson explained. “As long as these costs remain elevated, consumers will continue to feel it in the form of higher food prices at the supermarket.”

Meat and dairy products accounted for about 40 percent of the quarter-to-quarter retail price increase. Boneless chicken breasts increased 24 cents to $3.33 per pound, bacon rose 23 cents to $4.41 per pound, sliced deli ham was up 17 cents to $5.43 per pound, shredded cheddar increased 14 cents to $4.70 per pound and whole milk was up 4 cents to $3.66 per gallon.

Other items that increased in price compared to the second quarter were Russet potatoes, up 36 cents to $3.43 for a 5-pound bag; Red Delicious apples, up 27 cents to $1.83 per pound; flour, up 21 cents to $2.73 for a 5-pound bag; vegetable oil, up 20 cents to $3.21 for a 32-ounce bottle; eggs, up 13 cents to $1.78 for one dozen; orange juice, up 10 cents to $3.28 for a half-gallon; bagged salad, up 6 cents to $2.73 for 1-pound bag; and bread, up 2 cents to $1.88 for a 20-ounce loaf.

“At the beginning of 2011, a number of factors including growing demand pointed to continued increases in retail food prices, especially for meats. But there’s always a lag time as farmers and ranchers increase the size of their herds to meet higher demand,” Anderson explained. “Extreme weather conditions around the nation have further compounded the issue, diminishing production and further increasing costs.”

Most items showing an increase in retail price from quarter-to-quarter also showed year-to-year increases. Compared to one year ago, Russet potatoes increased 30 percent; flour was up 27 percent; eggs and vegetable oil were each 26 percent higher. Year-to-year increases were also tallied for bacon, up 21 percent; sliced deli ham and milk, each up 16 percent; and shredded cheddar cheese, up 15 percent. The total average price for the 16 items was up about 15 percent compared to one year ago.

Two items decreased in price: sirloin tip roast dropped 20 cents to $4.28 per pound and ground chuck dropped 2 cents to $3.27 per pound. Toasted oat cereal remained the same in price, at $3.17 for a 9-ounce box.

The year-to-year direction of the Marketbasket Survey tracks with the federal government’s Consumer Price Index (http://www.bls.gov/cpi/) report for food at home. As retail grocery prices have increased gradually over time, the share of the average food dollar that America’s farm and ranch families receive has dropped.

“In the mid-1970s, farmers received about one-third of consumer retail food expenditures for food eaten at home and away from home, on average. Since then, that figure has decreased steadily and is now about 16 percent, according to the Agriculture Department’s revised Food Dollar Series,” Anderson said. USDA’s new Food Dollar Series may be found online at http://www.ers.usda.gov/Data/FoodDollar/app/.

Using the “food at home and away from home” percentage across-the-board, the farmer’s share of this quarter’s $53.12 marketbasket would be $8.50.

AFBF, the nation’s largest general farm organization, has been conducting the informal quarterly marketbasket survey of retail food price trends since 1989. The mix of foods in the marketbasket was updated during the first quarter of 2008.

According to USDA, Americans spend just under 10 percent of their disposable annual income on food, the lowest average of any country in the world. A total of 85 shoppers in 32 states participated in the latest survey, conducted in August.

Sidebar: Tracking Milk and Egg Trends
For the third quarter of 2011, shoppers reported the average price for a half-gallon of regular whole milk was $2.46, up 15 cents from the prior quarter. The average price for one gallon of regular whole milk was $3.66, up 4 cents. Comparing per-quart prices, the retail price for whole milk sold in gallon containers was about 25 percent lower compared to half-gallon containers, a typical volume discount long employed by retailers.

The average price for a half-gallon of rBST-free milk was $3.40, up 12 cents from the last quarter, about 40 percent higher than the reported retail price for a half-gallon of regular milk ($2.46).  The average price for a half-gallon of organic milk was $3.71, up 6 cents compared to the prior quarter, about 51 percent higher than the reported retail price for a half-gallon of regular milk ($2.46).

Compared to a year ago (third quarter of 2010), the retail price for regular milk in gallon containers was up about 16 percent while regular milk in half-gallon containers rose 19 percent. The average retail price for rBST-free milk increased 1 percent compared to the prior year while organic milk was up 2 percent.

For the third quarter of 2011, the average price for one dozen regular eggs was $1.78, up 13 cents compared to the prior quarter. The average price for a dozen “cage-free” eggs was $3.10, down 10 cents compared to the prior quarter but 75 percent higher than regular eggs. Compared to a year ago (third quarter of 2010), regular eggs increased 26 percent while “cage-free” eggs increased 7 percent.



Iowa Road Safety: A Shared Responsibility

Getting harvest from the field to market can be dangerous work, but doing it in traffic on Iowa's highways and county roads extends the hazards to other drivers and their passengers. Conditions creating additional risks on Iowa roadways during harvest are drivers who don't understand how to avoid collision with agricultural equipment, those who are driving distracted and heavier than normal traffic on rural highways due to flooding and construction detours.

Charles Schwab, Iowa State University Extension farm safety specialist, says highway safety is a shared responsibility for both the motor vehicle operators and agricultural equipment operators. Both have reasons and rights to be on those roads.

Agricultural equipment operators need to remember that vehicle drivers, especially those rerouted to rural highways, may not have the necessary understanding to avoid collision with agricultural equipment: how to approach a slow moving vehicle (SMV), left turns of equipment and how to pass oversized equipment and unique shapes of combines. Schwab reminds operators of agricultural equipment to make sure all SMV emblems are properly mounted, not faded, and to always signal before making turns.

"Motorists may be unfamiliar with the outlines of farm equipment, especially at dusk when operators are returning from fields or moving between fields. Unfamiliarity can cause a split-second delay in reaction that, in many cases, can lead to a collision," he says.

Schwab says proper lighting and marking for farm vehicles is only half of the solution. Motor vehicle drivers also must be attentive, watch for farm traffic and heed the signs especially in the weeks ahead.

"Motor vehicle operators need to be patient, show understanding and not drive distracted -- rushing and not paying attention to the road causes opportunities for collisions," he warned. "It is important to understand the issue about coming upon a SMV when traveling at a high rate of speed."

Schwab offers these defensive-driving tips for rural roads this fall:
-- As soon as you see a slow-moving vehicle (SMV) emblem, brake as if you were approaching a stop sign.
-- Look for hand or turn signals from the farm vehicle operator, indicating a left turn.
-- When passing, make sure you can see the farm vehicle in your rearview mirror before you get back in your lane.

While farm tractors and other farm equipment comprise a small percent of total motor vehicles nationally, the percentage of fatal motor vehicle collisions involving farm equipment is almost five times higher than other vehicle collisions. In crashes involving farm vehicles, the farm vehicle operator was killed nearly twice as often as an occupant of the other motor vehicle.

The most likely types of collisions are left-turn and rear-end collisions. The left-turn collision happens when the farm vehicle is about to make a wide left turn and the vehicle behind begins to pass. The second most common incident is the rear-end collision, where another vehicle approaches farm equipment and is unable to slow down to avoid a collision. This happens because of large difference in travel speeds of these two types of vehicles.

"Vehicle drivers must stay alert, especially in areas where rural roadways are experiencing heavier than normal traffic due to flooding and construction detours," Schwab cautioned. "Higher speeds used on rural roads, changeable conditions and a variety of traffic all contribute to injuries. Motorists must stay attentive and watch for farm traffic, which can be difficult to spot, recognizing it travels at much slower speeds than normal traffic."

Schwab also reminds vehicle drivers that agricultural equipment operators in these areas will be limited in their ability to use the shoulder as they move down the road, since shoulder conditions could have changed considerably this summer because of flooding (washed away, weak or steeper than before).



NOPA Aug Soy Crush Bearish

The National Oilseed Processors Association crush report for August released Wednesday showed total crush came in at 118.8 million bushels. That number is below the crush figure from a month ago (123.0 mb), lower than last year's crush at this time (122.4 mb) and below the average pre-report estimate of 119.8 mb.  Bean oil stocks at NOPA member firms were reported at 2.31 billion pounds, which is a less bearish amount on hand than the 2.53 bp last month.  Soybean meal production was neutral, as it decreased slightly since the previous month, now seen at 2.85 million tons in August.



Tools That Will Help Reduce Nitrogen Pollution

A U.S. Department of Agriculture (USDA) soil scientist in Colorado is helping farmers grow crops with less nitrogen-based fertilizer.  The fertilizers are a major reason why agriculture is a significant source of both greenhouse gas emissions and pollution in estuaries like the Gulf of Mexico and the Chesapeake Bay. If growers apply too little fertilizer, it reduces crop yields. But if they apply too much, the excess can be released into the atmosphere as nitrous oxide or leach into waterways as nitrate.

Jorge Delgado, with the Agricultural Research Service (ARS) Soil Plant Nutrient Research Unit in Fort Collins, Colo., conducts research to help growers determine exactly how much nitrogen to apply to a field, when to apply it and what alternatives might work best. The right approach can vary from one location to the next and one crop to the next.

Delgado helped develop a tool designed for fledgling "environmental trading" credit programs that reward growers for reducing nitrogen losses. Known as the "Nitrogen Trading Tool" (NTT), it can be used to determine how much a proposed management practice may be able to reduce nitrogen losses, and how much "trading credit" could be earned by switching to it.

The concept of trading nitrogen credits is in its formative stages, but efforts have been established in Pennsylvania and Ohio, with municipalities and state environmental agencies in several states and watersheds studying the concept.

Delgado has distributed the NTT and other tools to hundreds of users, including farmers, agribusinesses, scientists, extension agents, state and federal agencies and international users. He also has used them to convince growers to improve soil-management practices by using conservation tillage, crop rotation and cover crops such as wheat, rye and other grasses. Such practices not only prevent nitrates from leaching into waterways, but prevent soils from eroding and keep carbon and nutrients sequestered in the soil.

Delgado also has published a peer-reviewed report in Advances in Agronomy showing how the NTT may be used to calculate the potential for nitrogen trading on a Virginia no-till operation, an Ohio farm where manure is applied, and irrigated barley and potato fields in Colorado. His efforts to reduce nitrogen losses in Mexico also have been published in the journal Terra Latinoamerica.



House hearing ignores critical facts about America's ethanol industry

America’s ethanol producers are on pace to produce nearly 40 million metric tons of livestock feed in 2011 – a volume greater than all the corn used on cattle feedlots all across the country.  Additionally, ethanol producers are poised to export nearly 25 percent of that volume to meet growing feed demands around the globe.

Unfortunately, these facts and other benefits of a robust domestic ethanol industry will likely be overlooked or dismissed out of hand at a stacked deck hearing today before the House Agriculture Subcommittee on Livestock, Dairy, and Poultry.  Witnesses at the hearing include a wide range of livestock and meat processing interests, but do not include anyone from the nation’s ethanol, corn growing, or feed milling industries.

“Today’s hearing will do little more than provide a soapbox for those that falsely present domestic ethanol production as creating a choice between food or fuel,” said Renewable Fuels Association President and CEO Bob Dinneen.  “Failing to include any representation from America’s ethanol, corn growing, or feed producing industries demonstrates the predetermined outcome of this hearing.  America needs thoughtful energy and agricultural policy that is based on all the available facts, not just those some lawmakers choose to hear.”

Dinneen continued, “If this subcommittee were truly interested in finding out the facts, they would be interested to know that ethanol producers will provide nearly 40 million metric tons of livestock feed this year.  They would also be interested to note that at today’s corn prices, a pound of pork chops retailing for $3.51 per pound contains just $0.30 cents of corn – less than eight percent of the total cost.  Similarly, the farm share of each retail food dollar is less than 16 cents.  Additionally, members of the committee may also be interested to know that many of the nation’s largest integrated livestock and meat manufacturers are enjoying strong quarterly profits despite the abnormally high price of corn.  Facts matter and we hope that the members of the committee will take a comprehensive look at the issue rather than taking the word of industries seeking to return to days of subsidized corn production.”

Despite the anticipated focus on ethanol at today’s hearing, a July 2011 report from Informa Economics found that ethanol is just one factor in rising corn prices and that other factors such as speculation, monetary policy, and global demand all play influential roles.  Taking it one step further, the report also concluded that “Statistical evidence does not support a conclusion that the growth in the ethanol industry is the driving force behind higher consumer food prices.”

The report also concludes, “While an increase in corn prices will affect certain industries – for example, causing livestock and poultry feeding margins to be lower than they otherwise would have been – the statistical evidence does not support a conclusion that there is a strict ―food-versus-fuel‖ tradeoff that is automatically driving consumer food prices higher.”



Weekly ethanol production data for the week ending 9/9/2011

According to Energy Information Administration data, ethanol production averaged 879,000 barrels per day (b/d) – or 36.92 million gallons daily.  That is down 17,000 b/d from the week before.  The 4-week average for ethanol production stood at 892,000 b/d for an annualized rate of 13.67 billion gallons.

Stocks of ethanol stood at 17.2 million barrels.

Gasoline demand for the week averaged 371.6 million gallons daily.  

Expressed as a percentage of daily gasoline demand, daily ethanol production was 9.93%.

On the co-products side, ethanol producers were using 13.328 million bushels of corn to produce ethanol and 99,201 metric tons of livestock feed, 87,591 metric tons of which were distillers grains.  The rest is comprised of corn gluten feed and corn gluten meal.  Additionally, ethanol producers were providing 3.81 million pounds of corn oil daily.



ACE Urges Congressional Committee to consider all factors when looking at feed price increases during Congressional Hearing
 
The American Coalition for Ethanol (ACE) urged the House Agriculture Subcommittee on Livestock, Dairy, and Poultry to consider all factors responsible for increasing feed prices when it holds a hearing on that matter today.

The hearing will focus on the availability of livestock feed and its effect on the livestock and poultry industries. Many of the groups slated to testify have repeatedly and incorrectly blamed higher food and grain related prices on the increased use and production of ethanol.

ACE Executive Vice President Brian Jennings said he hopes the hearing will actually examine all of the causes of higher feed prices rather than becoming “another overly-simplistic, thinly-veiled attack on the ethanol industry.”

“The preliminary witness list for this hearing is a who’s who of groups that think they are entitled to cheap corn forever and now aren’t happy with corn prices.  But that doesn’t change the fact that corn ethanol is not the primary or even a significant source of increased feed and food prices.  In fact, corn ethanol production results in feed and food production of distiller’s grain.  Unless this hearing examines all the factors contributing to food and feed prices, it can’t be considered a serious investigation of the issue.”

“The US ethanol industry will produce 1.7 billion bushels of high quality animal feed this year – almost 4.5 million tons of distiller’s grains - at a cost that is currently only 75 to 80% of the cost of corn,” said Jennings. “Forward-thinking livestock producers have figured out that feed produced at ethanol plants can economically displace more than its weight in corn, actually reducing their feed costs.”



Livestock and Poultry Subcommittee Listens to Concerns about Feed Availability
— Livestock, Poultry and Feed Industry Representatives Urge Market Driven Renewable Energy Policies

The House Committee on Agriculture’s Subcommittee on Livestock, Dairy and Poultry heard firsthand the challenges the livestock and poultry industries face today and expect to face in the coming years because of tight feed grain supplies. The hearing came on the heels of a U.S. Department of Agriculture World Agriculture Supply and Demand Estimates report that projected this year’s corn crop will be 417 million bushels lower than initial estimates.

Tight corn supplies, which have been affected by bad weather and rising demand, particularly from the ethanol industry, have pushed prices to nearly $7.50 a bushel and prompted concerns about possible feed grain shortages.

Representatives from the National Cattlemen’s Beef Association, National Pork Producers Council, National Turkey Federation, National Chicken Council and the American Feed Industry Association, who testified before the subcommittee, issued the following statements subsequent to the hearing:

“While U.S. corn usage for food and industrial purposes other than ethanol have remained relatively constant since 2008, the amount of corn used for ethanol has increased eight-fold, with three-quarters of that increase occurring since 2005,” said Steve Meyer on behalf of NCBA. Meyer is president of Paragon Economics, a livestock and grain marketing and economic advisory company in Adel, Iowa. “I realize we cannot ‘un-ring the bell’ on ethanol subsidies and tariffs but subsidized ethanol has meant record-high corn prices and record-high costs of production for meat and poultry resulting in lower per capita meat and poultry output. If you hear from anyone that the government should not be deciding on winners and losers, please realize that you have already done so.”

“It is a real possibility that next year corn will need to be rationed, and NPPC believes that rationing ought to be applied to all corn users, including the ethanol industry,” said NPPC Vice President Randy Spronk, a pork producer from Edgerton, Minn. “The ethanol industry is using more and more of the nation’s corn supply. This year it is expected to overtake livestock and poultry producers as the largest user of corn. But its growth has been driven almost entirely by the Renewable Fuels Standard mandate, which makes no provision for short corn supplies.”

“Included in this effort must be a ‘safety valve’ to adjust the Renewable Fuels Standard (the ethanol mandate) when there is a shortfall in corn supplies,” Harrison Poultry chief executive Michael Welch, speaking for the National Chicken Council, told the subcommittee. “In addition, a plan should be implemented to allow a reasonable number of good, productive cropland acres to opt out of the Conservation Reserve Program (CRP) on a penalty-free basis.”  

“There is an immediate and legitimate concern about the availability and cost of feed ingredients due to the mandated use of corn-based ethanol. It has become clear, from the minute the government chose to subsidize corn as an energy source, that livestock and poultry interests have taken a back seat to the ethanol industry,” Ted Seger, president and part owner of Farbest Foods Inc., and past chairman of the National Turkey Federation. “While no one item is a silver bullet to fixing the low corn stock problem, we must do something to protect livestock and poultry producers from excessive high corn prices due to the fact that the government has mandated the use of half of the corn supply into the nation’s fuel supply. The Volumetric Ethanol Excise Tax Credit, or blender’s credit, is not required to support ethanol production and should be allowed to expire at the end of the year. Also, the Renewable Fuel Standard (RFS) should be reevaluated by creating a policy that provides a practical, automatic and meaningful safety net to protect against a poor corn.”

“America’s farmers and ranchers and the industries which serve them can’t compete against federal biofuel subsidies, outdated land-use programs or unfettered institutional speculation in the futures markets,” said Joel G. Newman, president and CEO of the American Feed Industry Association. “The U.S. feed industry is the single largest buyer and user of feed grains, oilseeds, processed meals and byproducts, and its production represents 70 percent of producing safe, affordable meat, poultry, dairy and eggs. The Administration and Congress must make policy changes now; otherwise, they will have a much bigger problem – an inability to put affordable food the tables of the American people.”



Impact of Feed Availability Reinforces Need for Dairy Policy Reform
John Wilson, DFA Senior Vice President

The House Agriculture Committee meets today to examine the issue of feed availability and its effect on the livestock and poultry industries. The following statement was submitted by Dairy Farmers of America, Inc. (DFA) on behalf of its dairy farmer owners.  

 “U.S. dairy producers were hit hard in 2009 and 2010 with extreme volatility in milk and feed prices, which forced many producers from the industry while others lost a generation worth of equity on their farms. As we look at December futures for both corn and Class III milk, we see a tightening of margins that will further compound the stress of a few years ago.

“Current U.S. dairy policy does not provide producers the tools necessary to manage through extreme volatility. Congress must embrace dairy policy reform immediately. DFA is supportive of the effort being spearheaded by Reps. Collin Peterson (D-Minn.) and Mike Simpson (R-Idaho), which is modeled after the National Milk Producer Federation’s Foundation for the Future. This program, comprised of several parts, offers producers margin insurance and gives them the tools they need to manage their own future.

“Additionally, we cannot ignore the increased demand on our domestic corn supply. Greater pressure from ethanol production, combined with continued exports and other uses is making corn a rare and expensive commodity. Those who survived 2009 and 2010 are now facing feed shortages and more tough decisions on the dairy farm.”



NCGA Reminds Critics We Don't Need to Choose Between Using Corn for Feed or Fuel

Cattle in fieldAs the House Agriculture Subcommittee on Livestock, Dairy and Poultry held a hearing today examining the availability of feed and its effect on the livestock industry, the National Corn Growers Association submitted a statement for the record that reminded critics we don't need to choose between using corn for feed or fuel.

"Corn fuels nations around the world, as a food ingredient, a feedstock, a fuel, a fiber, an ingredient in building materials and beyond," NCGA's statement said. "It is possibly the most versatile crop in the world, and demand is at an all-time high."

Many areas of the country saw a more difficult than average growing year for corn with record heat, floods and drought plaguing the Corn Belt. But even still, the U.S. Department of Agriculture estimates the United States is on track to produce the third largest corn crop in history with a 12.5 billion bushel harvest. This is up substantially from even 10 years ago when production totaled only 9.5 billion bushels. In addition, the use of distillers grains, a high-protein livestock feed, has displaced almost 1.2 billion bushels of corn for livestock rations this year alone.

"Historically, corn farmers have understood that they have the ability to supply growing ethanol and livestock producers simultaneously without negatively impacting either as a valued customer," the statement said. "With advances in both seed and farming technologies, U.S. corn producers have increased average yield substantially in the past few decades."

 

Updating our Nation's Inland Waterways is Critical for Farmers and Promotes Job Creation
Garry Niemeyer, NCGA First Vice President

In recent years, many farmers have seen good prices and plentiful crops, allowing us to purchase some much needed new equipment. However, we know that tough times usually follow and there will be years we have to make do with what we have, no matter how much we need to replace it. Our nation's infrastructure is in some ways like that worn out equipment. Whether it is locks and dams on the Upper Mississippi, bridges on interstates or the road to town, we need to address our country's crumbling infrastructure.

We are all aware that our nation is in serious financial trouble and hence, we cannot afford to replace the entire existing infrastructure. But we do need to have a plan to address how we transport our commodities and our inputs in a safe, efficient and affordable way now and in the future.

The country's inland navigation system plays a critical role in the nation's economy, moving more than a billion tons of domestic commerce valued at more than $300 billion per year. In addition, more than one billion bushels of grain, or roughly 60 percent of all grain exports, move to export markets via the inland waterways each year. Investment in the Upper Mississippi and Illinois rivers has not kept pace with the needs of the transportation sector. The lock system is approaching 80 years old and cannot accommodate modern barging practices. The locks are outdated and deteriorating.

When it comes to the waterways, the top priority for the National Corn Growers Association is seeing new construction move forward on the seven projects in the Upper Mississippi lock system that were authorized in the 2007 Water Resources Development Act: Mississippi L&D 25, 24, 22, 21, 20, and LaGrange and Peoria on the Illinois River. These lock upgrades would require a total of 48 million person hours from skilled trades throughout the Midwest.

As President Obama and Congress turn their attention to job creation, we hope these projects will rise to the highest level of priority. We appreciate that President Obama mentioned investment in waterways in his jobs bill and we hope he pushes for investment in the lock system on the Upper Mississippi. Likewise, we hope Congress can see beyond partisan views and understand the importance of an updated waterways system to farmers across our country and to promoting job creation.