06-03-16 USMEF: Study Finds Red Meat Exports Deliver Excellent Returns for U.S. Corn Producers…

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Study Finds Red Meat Exports Deliver Excellent Returns for U.S. Corn Producers…

The U.S. Meat Export Federation (USMEF) commissioned a study aimed at quantifying the value delivered to U.S. corn producers through exports of beef, pork and lamb. The independent study was conducted by World Perspectives, a leading agricultural consulting firm. Key findings were unveiled at the USMEF Board of Directors Meeting and Product Showcase, held May 25-27 in St. Louis.

“USMEF receives outstanding support from the feedgrain and oilseed industries, because producers from these sectors understand the importance of a healthy U.S. livestock industry to their bottom line,” said Philip Seng, USMEF President and CEO. “But it is important that we provide specific data on the return these producers receive from their investment in red meat exports, and this study includes exactly that type of information.”

Findings from the study include:

  • On a per-head basis, 800-pound calves fed to 1,360 pounds each consume 35 bushels of corn and 806 pounds of distiller’s dried grains with solubles (DDGS).
  • Each 12-pound pig finished to 284 pounds consumes 11 bushels of corn, 37 pounds of DDGS and 136 pounds of soybean meal.
  • World Perspectives analyzed feed rations and U.S. livestock production practices to establish feed use and then used beef and pork export data to determine the amount of consumption attributable to red meat exports, finding that 2015 exports accounted for:
    • 355 million bushels (or 2.1 million acres) of corn
    • $1.3 billion in value to corn
    • 1.48 million tons of DDGS (169 million bushel equivalent)
    • $205.4 million in value to DDGS
    • 11.7 million tons (or 3.1 million acres) of combined corn and DDGS fed

“When you look at 2015, it was not a great year for U.S. meat exports, and yet beef and pork exports from the U.S. still brought $1.3 billion to the corn sector,” explained Dave Juday, World Perspectives senior analyst. “Looking back at last year, if there were no red meat exports at all and that corn was added to carryover stocks, instead of a season average annual price of $3.60 per bushel, the price would have been about $3.15 per bushel without the contribution from meat exports. That’s a loss of 45 cents per bushel, which would have amounted to about $6 billion to the corn industry last year.”

The livestock industry’s utilization of DDGS was also a key focus of the study because it plays such an important role in the viability of ethanol plants.

“As of two weeks ago, a gross margin for an ethanol mill would have been about 62 cents per gallon,” Juday said. “If you subtract out the value of DDGS, of which meat exports are a big component of the use, and the corn oil, of which livestock feed is also a big component of the use, that margin would have dropped to just 12 cents per gallon. About 5 cents of the per bushel gross revenue for an ethanol mill is tied directly to red meat exports.”

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06-03-16 Limon Recognized in National Competition Awarded a Rural Design Workshop…

 

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Limon Recognized in National Competition Awarded a Rural Design Workshop

On June 1, the Citizens’ Institute on Rural DesignTM (CIRD) announced that Limon, Colo. was added to the roster as a 2016-2017 host community, and was awarded a stipend from the National Endowment for the Arts (NEA) to host a rural design workshop in spring of 2017. Continue reading

06-03-16 CO Corn Op-Ed: Misinformation that’s hurting ethanol’s place at the pump needs addressing…

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Mike Lefever is a Longmont-area farmer, retired firefighter, and vice president of the Colorado Corn Administrative Committee.

Mike Lefever is a Longmont-area farmer, retired firefighter, and vice president of the Colorado Corn Administrative Committee.

OP-ED: Misinformation that’s hurting ethanol’s place at the pump needs addressing

In dispelling misconceptions surrounding ethanol and the Renewable Fuel Standard, there’s so much to address that I must cut to the chase.

In conclusion, though, I hope your take away is the same as mine; there’s a place at the pump for ethanol, petroleum and other fuels. We just don’t want ethanol to lose its place due to misinformation and false perceptions.

First off, the Renewable Fuel Standard (RFS) isn’t a “subsidy.” There’s no impact on the federal budget or tax revenues. It’s a program guaranteeing that lower-carbon, U.S.-produced biofuels have access in a market that’s dominated by petroleum. Continue reading

06-03-16 Fuels America: Biofuel Boosters Rally Support for Higher EPA Blending Levels in 2017…

Fuels AMerica logo smallBiofuel Boosters Rally Support for Higher EPA Blending Levels in 2017

WASHINGTON, DC – The nation’s leading biofuel advocates are rallying supporters to urge the Environmental Protection Agency (EPA) to increase its proposed 2017 targets under the Renewable Fuel Standard (RFS). With the start of the EPA’s public comment period this week and the announcement of a public hearing on June 9, supporters have a limited time to call on the EPA to make more ethanol and other biofuels available to consumers in next year’s fuel mix.

“America can’t achieve its climate, health or economic ambitions without renewable fuels. Among the most powerful tools we’ve got in achieving those ambitions is the Renewable Fuel Standard – as long as it’s allowed to work,” said Adam Monroe, America Regional President, Novozymes North America. “We urge anyone who’s benefited from the renewable fuel industry to speak out – and urge the Administration to listen to those voices and maximize renewable fuel production.” Continue reading

06-03-16 USDA Expands Access to Capital for Rural Businesses…

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USDA Expands Access to Capital for Rural Businesses

BLOOMINGTON, Ill., June 3, 2016 – USDA Rural Business-Cooperative Service Administrator Sam Rikkers today unveiled new rules to expand access to capital for rural businesses.

“Access to capital is one of the most important needs for businesses,” Rikkers said. “USDA is partnering with the Treasury Department and other agencies to ensure that rural businesses have the resources they need to prosper and grow. The regulatory changes I am announcing today will help businesses expand their operations and create jobs.” Continue reading

06-03-16 FSBC Column: Federation Assures Grassroots Foundation…

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Steve Hanson, Chairman of the Federation of State Beef Councils,  operates a family farm and ranch in Southwest Nebraska with his son, the fifth generation on that operation.

Steve Hanson, Chairman of the Federation of State Beef Councils, operates a family farm and ranch in Southwest Nebraska with his son, the fifth generation on that operation.

Column by Steve Hanson, Chairman, Federation of State Beef Councils

An Active Role in Joining the Forces

Sometimes being the chairman of an organization is little more than an honorary position. You lead some meetings, you get new passages for your biography. I’m thankful being chairman of the Federation of State Beef Councils is much more than that.

The role of the Federation Chairman mirrors that of the Federation itself. We’re an organization that represents organizations – the country’s 43 Qualified State Beef Councils, to be exact. The Federation is the state beef council voice at the national level in the beef checkoff, helping assure the Beef Checkoff Program is a partnership between state and national interests – which is important if you want to have a truly grassroots program. Continue reading

06-03-16 NAWG Continues to Search for Interns…

NAWG - wheat_logoNAWG Continues to Search for Interns

Although it is late into the internship season, NAWG continues to search for a summer or fall intern, and encourages all college sophomores, juniors, seniors, or recent graduates to apply for NAWG’s internship. Responsibilities will include supporting the communications department in social media and press outreach, as well as assisting the policy department in legislative work. The internship is paid, and the start and end dates are flexible. NAWG’s internship would be a great opportunity for any student in an agriculture-related program, or who plans to pursue an agriculture-related career post-graduation. NAWG also requests all recipients of this newsletter to pass on this notice to any interested friends or family members. More information can be found on NAWG’s website here. Please note that the application deadline and start date will be extended to suit the intern’s needs.
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06-03-16 NAWG Registers Comments for New Dicamba Products…

NAWG - wheat_logoNAWG Registers Comments for New Dicamba Products

NAWG has had the opportunity recently to comment on the registration of dicamba products on dicamba-tolerant crops to the Environmental Protection Agency (EPA). In commenting on the registration of the much-needed dicamba products, NAWG reiterates its support for weed control products which address the recent emergence of glyphosate-resistant weeds, creating a need for new weed control methods. New dicamba-based herbicides will be critical to help solve the spreading problem of resistant weeds. Dicamba has many benefits, including a brief soil residual, allowing for effective crop rotation, and its compatibility with necessary practices such as tank mixing. NAWG believes that wheat growers need access to new technologies to manage difficult weeds, reduce weed seed density, and increase yield potential, and has urged the EPA to approve the registration of new dicamba products for use on dicamba-tolerant crops.
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06-03-16 NAWG Comments on New Herbicide Quelex…

NAWG - wheat_logoNAWG Comments on New Herbicide Quelex

NAWG recently provided comments to the Environmental Protection Agency (EPA) regarding the proposed label for Quelex herbicide with Arylex active. Developed by Dow AgroSciences, Quelex is a low-dose, post-emergence herbicide which is the first new active ingredient herbicide brought to the market for wheat crops in over twenty years. Facing increased weed pressure that reduces yields, wheat growers across the country look to new products that will offer greater flexibility in crop rotation, due to the lack of herbicidal residues for crop rotation or double-cropping practices. NAWG wants to ensure that the EPA continue to allow the use of tank mixing, an important practice used by growers across the country. Tank mixing herbicides allows producers to be more sustainable with fewer trips across the field. NAWG supports the development of herbicides which will increase yields for wheat growers and help to eliminate costly practices, while aligning with the conservation efforts that wheat growers already have in place.   Continue reading

06-03-16 Robust Annual WGA Meeting agenda features federal guests, dynamic industry expert panels in WY, June 12-14…

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Robust Annual Meeting agenda features federal guests, dynamic industry expert panels
Snow King Resort in Jackson Hole, Wyo

We’re just a week away from our 2016 Annual Meeting in Wyoming. The agenda is loaded with significant federal guests, compelling keynote speakers and diverse western policy panels. Ten Western Governors will take part in the June 12-14 meeting in Jackson, Hole, Wyo. Don’t miss keynotes by award-winning historian Dayton Duncan, Interior Secretary Sally Jewell and Energy Secretary Ernest Moniz. WGA Chairman and Wyoming Gov. Matt Mead will also host insightful conversations on emerging western priorities with experts ranging from the CEO of the National Park Foundation to a panelist from Google, who will discuss its autonomous vehicle project.

Register now

06-03-16 USDA Export Sales Report – Weekly Highlights

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Export Sales Highlights 

This summary is based on reports from exporters for the period May 20-26, 2016. 

Wheat:  Net sales of 107,400 metric tons for delivery in marketing year 2015/2016 were up noticeably from the previous week, but down 33 percent from the prior 4-week average.  Increases reported for Yemen (52,300 MT, including 45,000 MT switched from unknown destinations), Japan (33,700 MT), Costa Rica (12,700 MT, including 13,700 MT switched from unknown destinations and decreases of 900 MT), Italy (12,300 MT), the United Kingdom (9,700 MT, including 10,000 MT switched from unknown destinations and decreases of 300 MT), and Haiti (9,000 MT, switched from the French West Indies), were partially offset by reductions for Nigeria (20,000 MT), unknown destinations (10,200 MT), the French West Indies (9,500 MT), and Colombia (1,300 MT).  For 2016/2017, net sales of 385,000 MT were reported primarily for unknown destinations (66,300 MT), Nigeria (66,000 MT), Mexico (59,600 MT), Brazil (55,000 MT), and the Philippines (41,000 MT).  Reductions were reported for Italy (9,000 MT) and Ecuador (4,500 MT).  Exports of 394,100 MT were up 38 percent from the previous week and 5 percent from the prior 4-week average.  The primary destinations were Yemen (102,300 MT), Thailand (58,000 MT), Taiwan (47,700 MT), Mexico (40,800 MT), Japan (34,400 MT), and Brazil (33,000 MT).

Corn:  Net sales of 1,317,900 MT for 2015/2016 were down 5 percent from the previous week, but up 12 percent from the prior 4-week average.  Increases were reported for unknown destinations (448,900 MT), Japan (244,200 MT, including 58,000 MT switched from unknown destinations and decreases of 2,500 MT), Taiwan (189,500 MT, including 120,000 MT switched from unknown destinations), Mexico (160,400 MT, including 27,000 MT switched from unknown destinations and decreases of 10,100 MT), Saudi Arabia (80,000 MT), Costa Rica (35,700, including 19,100 MT switched from unknown destinations and decreases of 100 MT), and Algeria (31,000 MT, including 30,000 MT switched from unknown destinations).  Reductions were reported for the French West Indies (2,000 MT) and Honduras (1,000 MT).  For 2016/2017, net sales of 128,900 MT were reported for Taiwan (65,000 MT), unknown destinations (28,700 MT), Costa Rica (13,700 MT), and Mexico (11,100 MT).  Exports of 752,300 MT were down 33 percent from the previous week and 36 percent from the prior 4-week average.  The primary destinations were Japan (282,600 MT), Mexico (259,800 MT), the Dominican Republic (46,400 MT), Algeria (31,000 MT), Venezuela (30,000 MT), Peru (25,700 MT), and Morocco (23,700 MT).

Optional Origin Sales:  For 2015/2016, options were exercised to export 58,000 MT to Japan from the United States.  The current optional origin outstanding sales balance is 334,000 MT, all unknown destinations.   Continue reading

READ the NAFB’s National Ag News for Friday, June 3rd…

CLICK HERE to listen to TODAY's BARN Morning Ag News with Brian Allmer...

CLICK HERE to listen to TODAY’s BARN Morning Ag News with Brian Allmer…

Sponsored by the American Farm Bureau Federation

Ag Groups Fear USDA Lending Problems

Farm Service Agency loans or loan guarantees could be delayed this summer as demand is draining available funds, and that’s bad news for farmers and Ag lenders. DTN reports that several agriculture groups sent letters to U.S. House and Senate Appropriations Committees that highlight the rapidly increasing demand. The Farm Service Agency is expected to run out of funds for both direct and guaranteed loans later this month, and that could potentially delay up to $650 million dollars in loans for farmers. Farmers are increasingly turning to the FSA for loans, and ag lenders are looking to the agency for loan guarantees. An FSA spokesman told DTN that applications for operating loans are up 23 percent this year. The spokesperson says there will also be a backlog and wait list for the same kinds of loans and loan guarantees during the FSA’s fiscal year 2017.

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American Poultry Exports Resume Quickly

The faster-than-expected return of U.S. poultry exports to the international markets after avian-flu restrictions is causing some competitors to lower their poultry prices to keep market share. A Rabobank report says the European Union and Brazil are aggressively defending market share and have reduced their poultry prices up to 20 percent. The Global Poultry Quarterly Report expects this to continue, but supply shortages in Asia and Mexico will offset some of the price concessions. The high cost of feed in Brazil will likely slow the industry’s growth rate, which has been around 3.5 percent in recent months. The negative margins will likely be offset in the coming months by rising demand in Asian countries and Mexico. 

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Expanded Panama Canal Expected to Cut Shipping Costs

U.S. soybean farmers could see lower costs because of bigger shipments in the newly expanded and deeper Panama Canal. Ag Web reports the $5.25 billion project expanded the canal and created a deeper and wider set of locks. The expansion means the Canal can handle bigger ships that sink to 50 feet deep, and before the expansion, it could only handle ships that sank to 39.5 feet. That will mean exports can load bigger ships with more soybeans and that will cut shipping costs. Lower costs would make American soybeans more price-competitive on the world markets. More soybeans in a vessel make for more revenue-producing freight spread over the cost of the ship. Those ships typically handle 2.1 million bushels of soybeans, so an increase of 500,000 is considered a significant jump by the industry.

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U.S. Cheeses Among the World’s Best

Earlier this spring, the United States won a large majority of the medals given out at the World Cheese Championships. Feedstuffs magazine reports expert judges from 16 countries critiqued nearly 3,000 different cheeses from 23 countries. Only 11 percent of the different types won medals, and the U.S. entries took three of every four medals. For the first time since 1988, the top award in the contest went to an American cheese from a cheesemaker in South-central Wisconsin. The World Cheese Championships are held every other year and the U.S. has improved its medal count in recent years. The U.S. took home 65 percent of the medals in 2012, 69 percent in 2014, and 75 percent this year.

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GMO Labeling Deadline Rapidly Approaching

Vermont’s mandatory GMO labeling law is set to take effect on July 1, and that leaves the U.S. Congress only 15 working days to get a bill through the House and Senate. That reminder came this week from the Coalition for Safe Affordable Food, which represents hundreds of farming groups as well as food and biotech companies, and supports a voluntary labeling standard. The Senate does have 19 working days left in the month, but it still has to get any bill from the upper chamber, through the House, and to the President’s desk for a signature. The key to a solution will be addressing concerns between Senate Ag Chair Pat Roberts and ranking member Debbie Stabenow. Their concerns range from overriding states’ rights to a coalition demanding mandatory GMO labeling, and a compromise between them remains to be seen.

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Japan Suspends Some Australian Cattle Imports

The Australian Agriculture Department confirms that Japan has stopped some imports of cattle from Australia due to Johne’s Disease, a bacterial infection that causes muscle wasting. A spokesman with USDA said Japan temporarily stopped accepting feeder and breeder cattle because several tested positive for Johne’s Disease in post-arrival quarantine. Japan is Australia’s second-largest market for beef exports, but among its smallest export markets for live cattle.

SOURCE: NAFB News Service

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