Friday 27th January 2012

Clean Water framework released; NCBA not pleased

The Obama Administration has released its national clean water framework—and at least one ag group is not pleased.

The framework includes draft federal guidance clarifying which waters are protected by the Clean Water Act nationwide.  According to the National Cattlemen’s Beef Association (NCBA), that document “dramatically expands” the regulatory authority of the EPA and the Army Corps of Engineers (Corps) under the Clean Water Act. 

NCBA deputy environmental counsel Ashley Lyon says the guidance “would seemingly allow EPA and the Corps jurisdiction over all types of waters.”  She says that, if the guidance is finalized, any stream, ditch or pond could easily be subject to regulation.

Lyon says NCBA is surprised that Ag Secretary Tom Vilsack, who yesterday endorsed the clean water framework, would allow the document to go through the review process “given the devastating impact it would have on America’s farmers and ranchers”

For his part, Vilsack says the guidelines “reflect an understanding and appreciation for what farmers are currently doing on the land.  It preserves existing exemptions for certain agricultural practices including prior converted croplands, areas involving irrigation ditches, stock ponds and the like.”

A fairly quiet week for grain and oilseed exports

It was a mixed, mostly bearish week for grain and oilseed export sales. Soybean meal and oil sales for the week ending April 21 were above projections while soybeans and wheat were within estimates and corn was below expectations. Physical shipments of corn, soybeans and wheat were less than what’s needed weekly to meet USDA projections for the 2010/11 marketing year.

Wheat came out at 265,000 tons (9.7 million bushels), up 97% from the week ending April 14 but down 19% from the four week average. Peru picked up 51,500 tons while unknown destinations canceled on 59,300 tons. At this point in the 2010/11 marketing year, wheat sales are 1.274 billion bushels, compared to 803.6 million in 2009/10. Sales of 153,200 tons (5.6 million bushels) for 2011/12 delivery were mainly to Taiwan (34,000 tons).

Corn was reported at 349,000 tons (13.7 million bushels), 43% less than the previous week and 65% lower than the four week average. Japan was the leading purchaser at 244,600 tons. For the marketing year to date, corn sales are 1.603 billion bushels, compared to 1.558 billion a year ago. Sales of 94,700 tons (3.7 million bushels) for 2011/12 delivery were primarily to unknown destinations (76,200 tons).

Soybeans were pegged at 143,500 tons (5.3 million bushels), 59% below the prior week and 18% under the four week average. Indonesia bought 88,700 tons while unknown destinations canceled on 68,500 tons. So far this marketing year, soybean sales are 1.509 billion bushels, compared to 1.363 billion this time last year. Sales of 55,700 tons (2.0 million bushels) for 2011/12 delivery were mostly to China (55,500 tons).

Soybean meal came out at 121,100 tons, a decrease of 7% from the week before but an increase of 13% from the four week average. Venezuela picked up 32,800 tons. Cumulative soybean meal sales for the current marketing year are 6,701,200 tons, compared to 8,305,400 a year ago. Sales of 6,000 tons for 2011/12 delivery were to Mexico.

Soybean oil was placed at 24,000 tons, up sharply from both the prior week and the four week average. Morocco bought 16,000 tons while unknown destinations canceled on 8,000 tons. 2010/11 soybean oil sales are 1,168,600 tons, compared to 1,158,000 tons in 2009/10.

Net beef sales totaled 16,600 tons. The reported purchasers were Mexico (3,000 tons), Japan (2,600 tons), Russia (2,500 tons), Vietnam (2,200 tons) and South Korea (2,100 tons).

Nebraska to host global water conference

More than 400 people from 25 countries are expected for the 2011 global Water for Food Conference May 1-4 in Lincoln, Nebraska.

This is the third annual global water conference to be held in Lincoln. It is hosted by the Robert B. Daugherty Water for Food Institute at the University of Nebraska (NU) and the Bill & Melinda Gates Foundation. 

According to NU president J.B. Milliken, the conference seeks to find practical solutions to real world problems.  He cites a couple of projects underway at NU’s Water for Food Institute as examples.

“One of them is in aquifer mapping, so that we have a better understanding globally of the resources that are available to us, and the depletion rates, and how we can make effective use of the water resources we have,” Milliken says.

Another research project involves yield gap analysis, “so that we can understand the water and fertilizer requirements—the best practices—to get the most out of every acre of land.”

Among the presentations at this year’s conference will be panel of ag producers discussing their challenges with water issues.  Farmers from Australia, California, Kenya and Nebraska will share their views.  The Nebraska producer on that panel is Jon Holzfaster of Paxton.

AUDIO: J.B. Milliken (7 min MP3)

Dow AgroSciences reports record Q1 sales

Indianapolis based Dow AgroSciences is reporting first quarter earnings increased to $406 million, that’s up from $384 million a year ago. The company is also reporting record sales of $1.6 billion, an increase of 17 percent.

Where’s the other side of the story?

Commentary. 

In this column a couple of weeks ago, I told you that I had recently listened to the producer of the movie Food Inc. speak at an ag conference. I wrote that Mr. Kenner did not blink when he told a room full of ag journalists that salmonella and e coli did not exist 40 years ago. I said that this very nice and very talented man believed something that he was told by someone whose aim it was to convince him and the masses he could reach as a movie producer, that modern animal agriculture has created frightening bacterial diseases.

The 2008 documentary, which received dozens of awards, concludes that the American agriculture system produces food that is unhealthy, environmentally irresponsible and largely unsustainable. This same documentary has influenced food policy discussions at the local, state and national level.

Although a few farmers were interviewed and featured in the film, and I appreciate and respect their viewpoint, there was a general lack of perspective from the overall ag industry in the film. When asked why there was so little input from farmers and companies in the film, Kenner told us that he had a very hard time finding farmers and companies who would agree to be interviewed for the documentary.

My assumption is that those farmers and companies who refused to appear on camera were afraid that their words would be “twisted.” Kenner is an acclaimed documentary film maker, which means he is very good at what he does. However, knowing the theme of the movie, why would a farmer or company step up to risk being condemned in the public eye?

The bottom line is that those who see this film are not getting the whole picture. Those who see this film are watching and listening as conclusions are reached without a great deal of input from farmers and ranchers who take pride in producing a safe, affordable and nutritious food supply.

If you haven’t seen the film, you should. Why? Because if, and more likely when, you find yourself in a situation like I did last week, you’ll be prepared.

My company was hosting an event in the trendy Power and Light District in Kansas City, Mo. when a 20-something young man not associated with our event struck up a conversation with me. He was smart and well-spoken and asked a lot of questions. One of those questions was, “Have you seen the movie Food, Inc.?” I said yes, I had, and he proceeded to tell me how seeing that movie had transformed the way he looks at his food today. He would never – ever – consider buying beef at the supermarket and refuses to drink milk ‘containing hormones.’

I took a deep breath, and began to ask him questions. Once I had enough information as to why he had made these choices, I told him that I respect his decisions, then went on to I explain away some of his misconceptions about meat and milk. When I felt like I had given him enough food for thought and explained that all milk contains hormones, I closed by suggesting that Food, Inc. did not give viewers the “whole story.”

My new-found friend leaned back, crossed his arms, and asked the million-dollar question, “Where is THAT documentary?”

I wish I had an answer.

An average March across Illinois

The statewide average temperature for Illinois in March was 41.0 degrees, just 0.1 degrees below the 1971–2000 average, according to the Illinois State Water Survey.

Of course, temperatures varied widely from one week to the next. Take Chicago: on March 17, the high temperature was 67 degrees, which is 20 degrees above average. A week later, the highs were in the low 30s and 11 to 12 degrees below average. Kaskaskia reported the highest temperature in Illinois for the month with 83 degrees, while Normal reported the lowest temperature for the month with 14 degrees.

The statewide average precipitation for March was 2.76 inches, 0.45 inches below the 1971–2000 average. Amounts ranged from 2 to 3 inches in northern Illinois, to 1 to 2 inches in central Illinois, and 3 to 6 inches in southern Illinois. The heaviest rainfalls were in far southern Illinois with Brookport reporting a monthly total of 8.14 inches and Cairo reporting 7.36 inches.

It is not unusual to get snowfall in March. Average snowfall in March typically ranges from about 2 inches in Carbondale to over 5 inches in Rockford and Chicago. This year, the only significant snow fell near St. Louis. Lebanon to the east of St. Louis reported 8.0 inches of snow; Waterloo to the southeast of St. Louis reported 6.2 inches.

According to the National Weather Service, the outlook for April calls for an increased chance of above normal precipitation and below normal temperatures. If that outlook comes true, it could prove a challenge for spring planting in Illinois.

Lowfat dairy gets boost from new guidelines

The new USDA dietary guidelines for Americans place more emphasis on milk products, especially the ones that are low-fat and fat-free.

Stephanie Cundith, dietician with the Midwest Dairy Council says incorporating dairy into a healthy diet is crucial, because dairy has so many important nutrients.

HEALTHY LIVING PROGRAM – Dairy dietary guidelines boosted (1:30 mp3)

Midwest Dairy Association

Spring pastures are different

While spring is certainly taking its time getting here this year, things are slowly greening up.

Dan Undersander, with the Department of Agronomy at the University of Wisconsin-Madison Extension says as you turn those animals out on pasture this spring..there are a few things to remember…starting with the fact the grass is quite different at this time of year.

AUDIO: Undersander talks about spring grasses 3:00 mp3

Ag classes on the bubble in Wisconsin

The proposed cuts in funding for schools in Wisconsin Governor Scott Walker’s budget puts the future of some ag education programs in the state in question. Nicole Nelson is Executive Director of the Wisconsin FFA Foundation, she says as it stands right now, 35 school districts in the state “are potentially going to reduce or completely cut their ag education program and along with them, their FFA program.” In addition, there are other districts considering reducing those extended contracts a number of agriculture teachers have to accommodate their work with students in the summer.

Nelson says this is not the time to cut ag programs citing a recent report from the Harvard Graduate School of Education which states most of today’s youth will need to go on to some type of post-secondary education if they are going to be viable in the workplace of the future. “The fact that we need to be preparing them for any such level is absolutely critical.” She calls on people in the ag industry to talk to their local school boards about the importance of ag education.

Read more here:

Ag companies outperformed S&P 500

A study by the University of Illinois finds in the last five years, agricultural companies outperformed S & P 500 companies. U.of I. ag economist Gary Schnitkey and graduate student Clay Kramer created the Agindex of 21 publicly-traded companies which provided or used products from crop farms. From 2007 to the end of March, 2011, the Agindex companies saw an 8.6 percent increase in their value while the companies making up the S & P 500 saw a 2.7 percent decline in value over the period.

Schnitkey says the two indexes moved together, both gaining in 2007 and both taking a dive in 2008. Both indexes increased from the second quarter of 2009 through the second quarter of 2010, then both fell in the third quarter last year and rebounded after that. On a yearly basis, the Agindex dropped more than the S & P in 2008 and outgained the S & P the other four years.

Over the five years, fertilizer companies in the index saw their value more than double, equipment makers saw their value increase 51 percent while seed and genetics companies increased 37 percent.

There were some losers, crop protection companies declined 2 percent and first processors such as ADM and Bunge lost about 4 percent of their value. However, it should be noted these two sectors did relatively well in the first quarter of 2011.

Read more here: