Titan Machinery Closes on Virgl and Victors Aquisitions

Titan Machinery Inc.announced that it has closed on the Virgl Implement Inc. and Victors Inc. acquisitions. Virgl Implement Inc. consists of one Case IH agriculture equipment dealership in Wahoo, Neb., and Victors Inc. consists of one Case IH agriculture equipment dealership in Fremont, Neb.

According to Titan Machinery, the dealerships provide excellent synergies with the Company's six agriculture equipments stores that were part of the Fairbanks acquisition. In their most recently reported fiscal years, Virgl Implement Inc. and Victors Inc. generated combined revenue of approximately $45 million.

Titan Machinery Inc., founded in 1980 and headquartered in West Fargo, North Dakota, is a multi-unit business with mature locations and newly-acquired locations. The Company owns and operates a network of full service agricultural and construction equipment stores in the United States. The Titan Machinery network consists of 89 dealerships in North Dakota, South Dakota, Iowa, Minnesota, Montana, Nebraska, Wyoming and Wisconsin including two outlet stores, representing one or more of the CNH Brands, a majority-owned subsidiary of Fiat Industrial, including Case IH, New Holland Agriculture, Case Construction, New Holland Construction, Kobelco and CNH Capital.



Beef Pit Setting New Records

The 28th year of the Nebraska Cattlemen Beef Pit was once again a success. This was the second year the State Fair was held in Grand Island and the Beef Pit served 26,100 sandwiches, which is 1,100 more than 2010. This equates to 12,500 lbs. of beef prepared and served in just 11 days. The busiest day was Sunday, September 4th with nearly 3,600 sandwiches served. Given the high demand, the longest reported wait was about 40 minutes with most customers receiving their meal in about 10 to 15 minutes.

The Beef Pit would not be as successful without the help of the 350+ volunteers serving beef meals. A thank you goes out to all of those hard working Nebraska Cattlemen Affiliates, industry partners, university students and other community individuals for your time and effort. Nebraska Cattlemen would also like to thank Darrell and Maggie Griepenstroh of Nebraska City for their 25 years of cooking at the Beef Pit.

Miss America, Teresa Scanlan attended the Beef Pit to eat a great tasting prime rib sandwich. She was awarded a cowboy hat which was a token of Nebraska Cattlemen’s appreciation for Miss Scanlan’s support of Nebraska agriculture. Governor Dave Heineman also joined in on the festivities by coming to the Beef Pit to socialize with Nebraska beef lovers and to enjoy a meal.

Nebraska Cattlemen members enjoyed talking to veterans who attended the State Fair’s Veterans Day and as a token of Nebraska Cattlemen’s appreciation for their service awarded 189 veterans with beef certificates that they could use to buy beef.

Promoting Nebraska beef and those who play a part in raising Nebraska beef is the main goal of the Nebraska Cattlemen Beef Pit. The main menu items were the prime rib, roast beef, BBQ beef sandwiches and beef hotdogs.

Proceeds from the Beef Pit have been used to endow youth scholarships through the Nebraska Cattlemen Research and Education Foundation. The first scholarship endowed was the Donovan Yoachim Memorial scholarship in honor of Mr. Yoachim’s work on establishing the Beef Pit and for his beef promotion efforts. The second scholarship endowed was the Beef Pit scholarship for students majoring in Meat or Food Sciences at the University of Nebraska.



Senate Colleagues Call on Obama to Submit Trade Agreements for Ratification

Senator John Hoeven of North Dakota and eight of his senate colleagues Wednesday called on President Barack Obama to submit long-pending trade agreements with South Korea, Colombia and Panama to Congress as a first step in helping create private-sector jobs.

"We want to underscore the fact that we are ready, and have been ready, to work with the President to ratify these trade agreements, which have been languishing for three years," Hoeven said. "Combined, they hold the promise of more than $10 billion in new economic activity and more than a quarter million jobs for American farmers, ranchers, processors and manufacturers. They are way overdue, and we would like to see the President include trade in his speech tomorrow to show that he's truly committed to private-sector job creation."

In addition to Hoeven, also participating in the news conference at the U.S. Capitol were Senate Republican Conference Chairman Lamar Alexander, R-Tenn.; Senate Finance Committee Ranking Member Orrin Hatch, R-Utah; Senator Rob Portman, R-Ohio; Senate Judiciary Committee Ranking Member Chuck Grassley, R-Iowa; Senate Agriculture Committee Ranking Member Pat Roberts, R-Kan.; Senator Roy Blunt, R-Mo.; Senator Johnny Isakson, R-Ga.; and Senator Mike Johanns, R-Neb.

The South Korean Free Trade Agreement alone will increase the nation's exports to that country by more than $10 billion and create 280,000 American jobs, according to the Congressional Research Service. South Korea has a $1 trillion economy and 49 million consumers. It's the 15th largest economy in the world and the United States' 7th largest trading partner. The U.S.-South Korea Free Trade Agreement will eliminate or reduce more than 85 percent of the tariffs between the United States and Korea, including the eventual elimination of a 40 percent Korean tariff on American beef, which Hoeven said will benefit North Dakota.

The Senator has been working for ratification of the agreements, which would greatly benefit North Dakota farmers, ranchers, beef processors and manufacturers, like Caterpillar. He and U.S. Senate Republican Majority Leader Mitch McConnell met earlier this year in Seoul with South Korean President Lee Myung-bak and prominent Korean business leaders to advance the U.S.-South Korea Free Trade Agreement. Hoeven also delivered the national Republican Radio Address in June pushing for passage of the three measures.

The Senator also met this summer with U.S. Trade Ambassador Ron Kirk to expedite the agreement and determine if there was anything more the Administration needed to move the three agreements forward.

That meeting followed a letter sent to President Barack Obama by Hoeven and 11 Republican senators urging the Administration to forward the agreements to the U.S. Congress for approval. In the letter, the senators agreed to support a reformed Trade Adjustment Assistance (TAA) bill in exchange for the President's agreeing to forward the trade agreements separately.

Hoeven said the TAA bill now reflects bipartisan reforms negotiated by the White House as well as U.S. House of Representatives Committee on Ways & Means Chairman Dave Camp (R-Mich.) and U.S. Senate Finance Committee Chairman Max Baucus (D-Mont.). This commitment should provide enough votes to ensure the reformed TAA bill can pass the Senate.



US Ethanol Stocks Down, Plant Output Up

Total U.S. ethanol stocks fell by 811,000 barrels (bbl), or 4.5%, to 17.082 million bbl during the week-ended Sept. 2. At the current level, supply is down 3.7% from the 17.735 million bbl supply level seen a year earlier, according to data released Wednesday by the Energy Information Administration.

Also, the EIA data showed U.S. ethanol plant production for the week-ended Sep. 2 at 896,000 barrels per day (bpd), up 7,000 bpd, or 0.7%, from the prior week and 2.3% higher than the level seen a year earlier.

Refiner and blender net inputs came in at 810,000 bpd, down 28,000 bpd or 3.3% from 838,000 bpd for the prior week but up 2.14% from the level seen a year earlier. Refiner and blender net inputs represent a major portion of implied demand for ethanol.

Meanwhile, implied demand for motor gasoline fell 273,000 bpd to 8.956 million bpd for the week while four-week average demand at 9.1 million bpd was down 2.9% from the year-ago level.



Another record month for U.S. ethanol exports, feed exports rebound

While oil and environmental interests seek to block the growth of the ethanol market in the United States, other nations around the world are increasing their use of American-made ethanol.  According to data released today by the federal government, U.S. ethanol exports in July set a new monthly record.  Exports of denatured and undenatured (non-beverage) ethanol totaled 127.4 million gallons in July, edging out the April 2011 total of 120.1 million gallons to set a new record.  July exports were nearly double the amount exported in June.

Ethanol exports through July of this year total 588.5 million gallons.  That is more ethanol than was exported in 2009 and 2010 combined.  The U.S. is on pace to export up to 900 million gallons of ethanol in 2011.

“Demand for a cleaner, more reliable alternative to oil is growing across the globe and America’s ethanol producers are filling that need,” said Renewable Fuels Association Vice President Geoff Cooper.  “Unfortunately, domestic ethanol producers are forced to look at export markets as special interests and some policymakers are working overtime to prevent America from using more of its own renewable fuels.  American ethanol producers are the most efficient, cost effective suppliers of ethanol in the world.  If this nation doesn’t want to harness its own renewable resources, it is evident that other nations will.”

Unprecedented U.S. ethanol exports continue to be driven by the fact that corn ethanol is currently the lowest-cost motor fuel source in the world. High sugar prices and lower-than-expected sugarcane ethanol output in South America have allowed the United States to overtake Brazil as the world’s leading ethanol exporter. In fact, Brazil and Canada are neck and neck as the leading importers of U.S. ethanol so far in 2011.
 
Exports of distillers dried grains with solubles (DDGS), the animal feed co-product resulting from grain ethanol production, totaled 644,525 metric tons in July, up nearly 8% from June. Mexico continued as the top DDGS export, receiving 156,400 metric tons in July. China (106,606 mt), Canada (63,707 mt), the United Kingdom (47,513 mt), and Vietnam (40,265 mt) rounded out the top five. Notably, exports to China have increased in three consecutive months after sliding significantly from late 2010 through April 2011. Year-to-date DDGS exports total 4.43 million metric tons, meaning the U.S. is on pace to export roughly 7.6 million metric tons in 2011.

“Whether its fuel or feed, America’s ethanol producers are reducing the need for oil imports, helping feed the nation’s livestock population, and improve our balance of trade,” said Cooper.  “Domestic ethanol production is the kind of innovative industry of which America needs more.”



Dairy Exports Set Another Record In First Half

Dairy product exports for the January to June period 2011 set new records this year, both in terms of product volume and dollar value, according to the International Dairy Foods Association.

The U.S. Department of Agriculture's Foreign Agricultural Service reports that over 1.9 billion pounds of dairy products left the country for destinations abroad in the first six months of the year. This exceeds the previous January-June record of 1.66 billion pounds set just last year.

In terms of dollar value, U.S. dairy exports from January through June of this year totaled just over $2.3 billion, eclipsing the previous record of $2.1 billion set in 2008.

A combination of higher world dairy market prices and this year's record export volumes combined for an increase of $580 million in value this year over the same period in 2010.

At the same time, imports of dairy products continue to remain at historically low levels. The total volume of dairy imports during January through June of this year was 477 million pounds. This was nearly identical to the same period last year; in fact, dairy import volumes during the first half of 2010 and 2011 are the lowest since 1999, when 454 million pounds arrived here during those six months.

The dollar value of dairy product imports in the first half of 2011 was $1.148 billion, an increase of $157 million from last year. Despite higher world dairy market prices this year, lower import volumes ensured that the total value of dairy imports so far this year remained below the record of $1.313 billion set in 2008.



Iowa Farm Bureau Webinar to Discuss Crop Marketing

Farmers can learn more about crop marketing and storing decisions in a new webinar this month. The webinar, "2011 Crop Marketing: To Store, or not to Store?" will be held on Sept. 13, at 1 p.m.

The webinar is part of Iowa Farm Bureau Federation's (IFBF) Margin Management Series and features Ed Usset, a University of Minnesota grain marketing specialist. Usset helped develop the award-winning "Winning the Game" series of workshops and another series called "Tool Time" dedicated to understanding and using grain pricing tools.

Farmers can view the webcast from their home/farm computer by clicking on the webinar link at www.iowafarmbureau.com at the date and time noted above. During the webinar, participants will have the opportunity to ask questions and get feedback on their decisions. Pre-registration for the webinar is encouraged. The webinar will be recorded and available for members at the IFBF website after the live event.

To register and find out more information, contact Ed Kordick, IFBF commodity services manager, at 515-225-5433.



NOAA’s Climate Prediction Center: La Niña is back

La Niña, which contributed to extreme weather around the globe during the first half of 2011, has re-emerged in the tropical Pacific Ocean and is forecast to gradually strengthen and continue into winter. Today, forecasters with NOAA’s Climate Prediction Center upgraded last month’s La Niña Watch to a La Niña Advisory.

NOAA will issue its official winter outlook in mid-October, but La Niña winters often see drier than normal conditions across the southern tier of the United States and wetter than normal conditions in the Pacific Northwest and Ohio Valley.

“This means drought is likely to continue in the drought-stricken states of Texas, Oklahoma and New Mexico,” said Mike Halpert, deputy director of the Climate Prediction Center. “La Niña also often brings colder winters to the Pacific Northwest and the northern Plains, and warmer temperatures to the southern states.”

Climate forecasts from NOAA’s National Weather Service give American communities advance notice of what to expect in the coming months so they can prepare for potential impacts. This service is helping the country to become a Weather Ready Nation at a time when extreme weather is on the rise.

Seasonal hurricane forecasters factored the potential return of La Niña into NOAA’s updated 2011 Atlantic hurricane season outlook, issued in August, which called for an active hurricane season. With the development of tropical storm Nate this week, the number of tropical cyclones entered the predicted range of 14-19 named storms.

The strong 2010-11 La Niña contributed to record winter snowfall, spring flooding and drought across the United States, as well as other extreme weather events throughout the world, such as heavy rain in Australia and an extremely dry equatorial eastern Africa.

La Niña is a naturally occurring climate phenomenon located over the tropical Pacific Ocean and results from interactions between the ocean surface and the atmosphere. During La Niña, cooler-than-average Pacific Ocean temperatures influence global weather patterns. La Niña typically occurs every three-to-five years, and back-to-back episodes occur about 50 percent of the time. Current conditions reflect a re-development of the June 2010-May 2011 La Niña episode.



Iowa Soybean Association and Pioneer Hi-Bred International, Inc. help sponsor ISU crop scouting competition

On Aug. 19, the Iowa State University (ISU) Extension and Outreach held its first-ever Iowa Crop Scouting Competition. High school students from around the state participated in the event, which coupled real-world scouting experience based on integrated pest management principles with community service. The new program is an effort to build awareness of Iowa agriculture through hands-on learning and teamwork.

Daren Mueller, ISU Extension plant pathologist, said the first crop scouting competition was a learning opportunity for all involved.

“The students who participated were a talented group of individuals, and will be a great addition to Iowa’s ag business in the coming years,” Mueller said. “Getting the students excited about Integrated Pest Management and making sound decisions at an early age sets a great base for their education.”

The day’s events consisted of a written exam, followed by 10 stations where students had to do real-world scouting.

Teams of four students and even one individual took part of the competition. The team from Denison Community School — Calvin Snitker, Tim Riessen, Ryan Reimers and Malachi Schroeder — received first place. The second place team, from Odebolt-Arthur-Battle Creek-Ida Grove (OA-BCIG) Community School, included Cory Riessen, Lee Riessen, Jordan Rohlk and Eli Linman.  

Randall Kuhlmann, adviser for Denison, said the contest was a great way to get students thinking about agronomy.  “The materials were well organized and the sponsors were outstanding,” Kuhlmann said. “It creates curiosity outside of the classroom and was an excellent opportunity for us.”

Jolene Riessen, OA-BCIG adviser, said the contest, workshops and other learning materials will prove valuable in the future.  “It helps build confidence with knowledge of weeds and insects for when they’re older and do decide to come back and farm.”

The contest was funded by a grant from the North Central Integrated Pest Management Center, with Pioneer Hi-Bred International, Inc. and the Iowa Soybean Association providing curriculum and competition materials.



Smithfield 1Q Profit Up 7.6%

Smithfield Foods Inc.'s fiscal first-quarter earnings rose 7.6% as the pork processor and hog producer continued to benefit from higher pricing and strong export demand.  The largest U.S. pork producer has posted improved earnings over the past year as it has been able to successfully pass on higher feed costs.  Smithfield's April closure of an Iowa processing plant tightened industry supplies. Strong exports, particularly to Asia, also have boosted demand.

President and Chief Executive C. Larry Pope said the company is aiming for 3% sales volume growth in its packaged meats business for the current fiscal year and expects fresh pork and hog production industry trends to continue. Smithfield also expects export demand will remain robust, though commodities costs will remain a challenge, Smith said.

For the quarter ended July 31, Smithfield reported a profit of $82.1 million, or 49 cents a share, up from $76.3 million, or 46 cents a share, a year earlier. Excluding a litigation-related charge and other items, earnings were 69 cents. Revenue increased 6.7% to $3.09 billion.

At its pork business, its biggest contributor to the top line, sales were up 7.6% including 8.9% growth for fresh pork and 6.4% for packaged meats. Sales of the company's 12 core packaged-meat brands were up 9% by revenue and 3% by volume.  Its U.S. hog production segment, reported sales improved 16%, while its international business saw 19% growth.



Food Prices Rise with Commodity Prices - Eventually

Food prices will continue to rise for the remainder of this year and well into 2012 because processors now are beginning to pass along higher costs of commodities to consumers, a Purdue University agricultural economist says.

While world grain stocks diminished amid growing demand, drought and flooding, food prices did not significantly increase for most of 2009 and 2010 even though prices that processors pay for raw ingredients such as corn and soybeans did, Corinne Alexander said.

That is changing.

"The question is not whether costs at the grocery store will increase, it's when," she said.

Higher commodity prices do not always immediately result in higher food prices, Alexander said. The prices of finished food products abundant in the marketplace might not increase substantially, as has been the case this year with cheese.

But when grain supplies are tight as they are now, grocery shoppers eventually will see the increases at the cash register.

Field corn, which comprises most of Indiana's corn acreage, is used primarily for livestock feed, but it also is used for tortilla chips and in corn syrup. Soybeans often are used as ingredient products, such as soybean oil, which is in nearly all salad dressings. Because both grains are in short supply and are used to produce many foods, consumers can expect to see small increases in many different products, Alexander said.

Strong global demand has driven exports, which means less grain stays in the United States. Now, with record-high prices for corn and soybeans and weather that reduced yield potential nationwide for feed grains, Alexander said beef prices likely will rise about 10 percent.

"There is always some time lag between higher feed costs and higher meat costs," she said.

In some parts of the country, it has been too dry for food crops such as wheat to thrive. In other states, the spring's wet weather hindered planting and growth for months.

"Texas, Oklahoma and Kansas are experiencing a massive drought that some are comparing to the Dust Bowl," she said. "With the lack of water, the wheat will likely be behind going into fall, so that means next year's prices will rise accordingly."

Wheat in the northern states was damaged by heavy spring rains. In North Dakota, about 1 million acres of durum wheat - the main variety used in pasta - wasn't planted because of Mississippi River flooding. The short supply will mean higher wheat prices and, ultimately, higher prices on wheat products at the grocery store.

According to the Consumer Price Index, food prices have risen about 3.5 percent this year, with the most substantial increases in the food-at-home category. Consumers now pay about 5.4 percent more than last year for food at the grocery store. Food in restaurants, on the other hand, has increased at a slower rate of 2.6 percent largely because their biggest cost - labor - has been stable in a weak economy.

Consumers are seeing increases in areas besides grain and meats. Coffee prices, for example, are at record highs.

"For consumers, the bottom line is that if the price of coffee is at record levels, if sugar and cocoa are both up, and if milk prices are relatively high, it's going to cost you more to get a mocha," Alexander said.