Friday 27th January 2012

Nerison to chair Wisconsin Assembly Ag Committee

Lee Nerison of Westby has been selected to chair the Wisconsin State Assembly Ag Committee when the Republicans take over leadership in January. Nerison first became a member of the committee in 2005 and served as vice-chair under Al Ott from 2005 to 2008. Amy Sue Vruwink became chair when the Democrats gained the majority in 2009. Ott, who served as ranking member with Vruwink is going to be chair of the Rural Economic Development and Rural Affairs committee when the new session starts January 3rd.

RFS2 requirement for 2011 announced

The Environmental Protection Agency says the Renewable Fuels Standard (RFS2) requirement for 2011 will remain at 13.95 billion gallons. Of that amount, 12.6 billion gallons will be from starch-based ethanol and 1.35 billion gallons will be from biodiesel and other advanced biofuels including 6.6 million gallons from cellulosic biofuels. That is lower than the original cellulosic target in the RFS2. RFA President and CEO Bob Dinneen says that is a good move “accurately reflecting the difficulties cellulosic biofuel technologies have encountered in obtaining the capital needed to fully commercialize.” However, he cautioned EPA must keep the cellulosic targets ambitious to stimulate advancement of the technology.

EPA should refigure carbon formula in RFS2

In light of California’s decision last week to recalculate its Carbon Fuel Standard numbers for corn-based ethanol, the Renewable Fuels Association is asking the Environmental Protection Agency to re-evaluate the national greenhouse gas numbers as well. At issue is the way the carbon impact of ethanol is calculated, the so-called hypothetical indirect land use changes (ILUC). In a letter to EPA Administrator Lisa Jackson, RFA notes the California change was prompted by new research from Purdue University which resulted in a lower carbon impact number for corn-based ethanol. RFA asks the EPA to use the Purdue numbers in the RFS2 calculations as well.

Cheese rebounds but butter continues to slide

A return to normal business hours brought a return to the rebound in the cash cheese market on Monday, barrels up 1.5 cents to $1.455 and blocks increased 2.25 cents to $1.49. Cheese getting a little support from the October cow slaughter numbers released Friday which indicated 2 percent more cattle were sent to market compared to a year ago. Daily Dairy Report notes the trend carried-over into the first two weeks of November when 118,200 cows were culled, up 10.1 percent from the same two weeks last year. Many expect cull rates will continue to pick-up as feed prices continue to go up.

Cash butter continued its slide on Monday dropping another 14 cents to $1.53 per pound.

Cooperatives Working Together (CWT) accepted eight requests for export assistance from Darigold, Foremost Farms, and Dairy Farmers of America to sell a total of 1.4 million pounds of Cheddar cheese to customers in Europe, the Middle East, and Asia. The product will be delivered November 2010 through May 2011.

Since CWT reactivated the Export Assistance program in March 18, 2010, it has assisted members in making export sales of Cheddar, Monterey Jack, and Gouda cheese totaling 68.5 million pounds to 26 countries on four continents. In addition, sales of butter and anhydrous milkfat totaling 33.0 million pounds have been made to nine countries on three continents. Nearly 50% of the product will be delivered between now and April 2011.

More funds for Miss. River watershed projects

Existing projects in the Mississippi River Basin Healthy Watersheds Initiative will share $43 million in financial assistance. NRCS Chief Dave White tells Brownfield that it consists of 70 projects in a dozen states aimed at nutrient management that helps the back pocket of producers.

“And I don’t know of any producer out there who has the extra money to spend to just throw away on nitrogen or phosphorus or whatever,” says White, “So, if we can do a better job of managing it, we can improve our water quality and help the financial resources of the producers.”

White says it’s not just about reducing nutrients that end up in the Mississippi River but using them wisely by avoiding, controlling or trapping them.”

“There’s a suite of conservation practices available to producers – terraces, nutrient management, tillage, buffers, some of the precision ag stuff,” White says, “It all depends on the site-specific of that producer and that producer’s goals.”

Iowa, Indiana, Illinois, Missouri and Wisconsin are among the 12 states that will receive this second round of funding in the Mississippi River Basin Healthy Watersheds Initiative. 

White is the keynote speaker tonight at the Missouri Soil & Water Conservation Districts Annual Meeting at the Lake of the Ozarks. White is from Missouri.

AUDIO: Dave White, NRCS Chief (6 min. MP3)

Canada raising dairy support prices

The Canadian Dairy Commission is increasing the support price for manufacturing-grade milk 1.5 percent effective February 1st. The support price for skim milk powder will increase from $6.1783 to $6.2721 per kg. The support price for butter will increase from $7.1024 to $7.1922 per kg. The increase will mean $1.12 per hectoliter more for farmers.

Support prices are the prices at which the CDC buys and sells butter and skim milk powder to balance seasonal demand changes on the domestic market. CDC Chair Randy Williamson says the increase is needed because the cost of production is rising faster than the farm price. The price for fluid milk and cream is determined by provincial milk boards.

The Canadian Restaurant and Foodservice Association objects to the increases saying the high prices are pushing dairy products out of reach for consumers.

Food safety measure to see Senate action

A Senate vote is expected Monday evening on food safety legislation. Majority Leader Harry Reid promised that lawmakers will finish the Food Safety Modernization Act, which provides the Food and Drug Administration greater authority to recall tainted products and to regulate imported food. It also increases inspections of food processors and imposes stricter standards for producers.

The bill includes an amendment from Montana Democratic Senator Jon Tester exempting farms if their sales direct to consumers, restaurants and grocery stores are no more than $500,000 dollars in the last three years.

The House passed its version of the bill in July 2009. If the Senate passes the bill, it still has to conference with the House bill and there are questions about when that could happen.

The NAFB News Service contributed to this article.

Wheat closes higher on weather concerns

Soybeans were lower on speculative and technical selling, along with spillover from the outside markets. Crude oil was up sharply but the dollar was higher on continued concerns over European debt and Korean tensions, while the Dow was sharply lower during most of the session, eventually closing only modestly lower. Also, near term forecasts for South America are showing improved rainfall patterns for Argentina and Brazil over the next 10 days. There was floor talk that China has purchased more U.S. beans, but nothing had been reported by USDA or wire services by Monday afternoon. Soybean meal and oil were weak following the lead of beans. First notice day for CBOT December futures is Tuesday. Meal deliveries are pegged at 0 to 300 contracts due to the fairly tight supply while bean oil deliveries are placed at 3,000 to 7,000 contracts because of the comparatively large supply.

Corn was steady to firm on consolidation and a lack of fresh news. Support came from spillover from wheat and Mexico buying 120,000 tons of U.S. corn ahead of the open. However, export inspections remain slow, reflecting the recent slowdown in demand, which limited gains. Some traders think USDA will make a downward revision to the export estimate in next week’s supply and demand update. Ethanol futures were mixed. Dow Jones Newswires projects first notice day deliveries on CBOT December corn to be moderate, between 400 and 900 contracts.

The wheat complex was higher on short covering and speculative buying. Traders continue to watch the dry weather in the western Plains, wet conditions in parts of Australia and freeze damage in Russia. According to the Ag Department, 94% of the winter wheat crop has emerged, compared to 89% a year ago and the five year average of 92%. 47% of the crop is in good to excellent condition, steady with last week and 16% lower than last year at this time. CBOT December wheat first notice day deliveries are estimated at a fairly large 3,000 to 4,000 contracts. Russian Prime Minister Vladimir Putin, via Dow Jones Newswires, expects spring grain planting to be up on the year, while according to Deputy Prime Minister Viktor Zubkov Moscow’s grain export ban has kept 12 million tons of grain off the global market.

Winter wheat condition rating holds at 47% good to excellent

The U.S. winter wheat crop condition rating held steady over the past week but it remains much lower than a year ago due to drier than normal conditions in some of the key hard red winter growing areas.

As of Sunday, 47% of the crop is in good to excellent shape, unchanged from last week and down 16% from this time last year. 36% of the crop is in fair condition, 1% less than a week ago, with 13% in poor shape and 4% rated very poor.

94% of the crop has emerged, compared to 91% last week, 89% last year and the five year average of 92%.

91% of cotton is harvested, compared to 86% a week ago, 80% a year ago and 81% on average.

This is the last national crop progress report of 2010.

Neb. Farm Bureau annual meeting is Dec. 6-7

Direct payments and ag land valuations will be two key issues discussed at the annual meeting of Nebraska Farm Bureau in Kearney December 6th and 7th.

According to the group’s vice president for governmental relations, Jay Rempe, some Nebraska Farm Bureau members want to continue federal direct payments while others have expressed a willingness to give them up for other purposes, such as redirecting those funds to crop insurance programs. 

At the state level, Rempe says members’ views of how to value ag land may be changing.  Nebraska Farm Bureau has had a long-term policy in support of moving to an income approach to setting ag land values, but Rempe says he is now seeing some preference for modifying the current market approach.  Currently ag land is valued at 75 percent of market value.