Stapril92014 by Iowa Farm Bureau

P E R I O D I C A L S : T I M E VA L U E D

A P R I L 9 , 2 0 1 4 | V O L . 8 0 , N O . 3 1 | W W W. I O WA FA R M B U R E A U . C O M

Iowa farmers buck national trend, plan more corn acres BY TOM BLOCK Iowa farmers are bucking the national trend with plans to plant more corn acres than they did a year ago, the only one of the top six corn-growing states where corn plantings will rise, according to the U.S. Department of Agriculture’s (USDA) prospective plantings report released last week.

Nationally, corn plantings are expected to be the lowest since 2010 as farmers switch some cornon-corn acres to soybeans due to economics and pest issues. “When I talk to farmers, I get the sense that they want to shift to a more balanced rotation,” said AgriVisor analyst senior market Dale Durchholz. Late-arriving spring weather could also hold down corn acres, he said.

“When you step back and understand that soils are still cold in the Midwest, we’re certainly not going to have any early planting,” he said. “The number we’ve got on corn may end up being a good number.”

2013 prevented planting Iowa farmers expect to plant 14 million acres of corn, an increase of 400,000 acres from last year,

the USDA said. The USDA estimates that Iowa farmers will also raise soybean plantings to 9.6 million acres, up 300,000 acres from a year ago. Soybean acreage intentions are up or unchanged in all but two states as U.S. plantings are estimated to reach a record-high 81.5 million acres, up 6 percent from last year, the USDA said. The 700,000-acre increase in

USDA vows to smooth approvals of biotech crops

Growing concerns T h e U . S . a p p r o va l p r o cess for biotech traits has come under added scrutiny recently because fewer products have been approved at a time when farmers need multiple modes of action to BIOTECH PAGE 2

ACREAGE PAGE 2

Remembering ISU’s Dr. Scott Hurd The late veterinarian is remembered for being a world class scientist and a strong advocate for agriculture. STORIES ON PAGE 3 AND 5

BY DIRCK STEIMEL U.S. government approvals of biotech traits should be less time consuming and more predictable in the near future because of new procedures adopted by regulators, U.S. Department of Agriculture (USDA) officials told Iowa Farm Bureau Federation (IFBF) board members recently. The USDA has completed a revamping of its approval process for biotech traits and is now working through a backlog of applications, said Michael Firko of the biotechnology office of USDA’s Animal and Plant Health Inspection Service (APHIS). “The process is moving faster now. It’s not yet where we want it to be, but it’s improving,” he said. Max Holtzman, a senior advisor to U.S. Agriculture Secretary Tom Vilsack, said the department has put a high priority on improving the biotech approval process and making it shorter. “Fixing this thing and making it more predictable is very important to us,” he said. U.S. Agriculture Secretary Tom Vilsack echoed that USDA is working on improving its biotech approval process in remarks last week to the House Agriculture Committee. “We’ve knocked off at least a year from the process,” he told the lawmakers. “But you can’t prevent people from asking whether we have done the right assessment, the right environment reviews, and that, oftentimes, is what slows the process down.”

Iowa’s corn and soybean plantings reflects last year’s dismal planting season that resulted in 613,000 prevented planting acres. The rest of the acreage increase appears to come at the expense of oats, which are off 90,000 acres compared to last year, a 41 percent decrease. “After the prevented plant

Paciﬁc trade deal in ﬁnal, but tough, stage Focus now on pushing back against Japan’s attempt to exempt some farm products. STORY ON PAGE 4

Jesse Stevens stands outside the speciality beef plant his company is building in the northeast Iowa town of Lime Springs. The Lime Springs Beef plant, expected to open later this year, is part of expected gains in beef slaughter capacity in Iowa in the coming years. Cattle raisers say they welcome the added capacity and stronger demand. PHOTO/ GARY FANDEL

Beef processing gains expected to help Iowa cattle raisers BY BETHANY BARATTA

lans to open two new cattle slaughter plants, and the announcement that another will avoid the chopping block, are clear signals that Iowa’s cattle industry is gaining strength as feeders take advantage of the state’s abundant

feed supplies. And that points to good things for livestock farmers and the entire Iowa economy. “Any time you have more players in the market, that’s a better situation for cattlemen as there’s more competition for those cattle,” said Lee Schulz, Iowa State University (ISU) Extension and Outreach livestock economist.

“That gives them more opportunities to market at different locations; those plants have to compete for those cattle, which is supportive of prices.” With U.S. cattle supplies remaining extremely tight, Iowa is running counter to much of the rest of the United States, Schulz BEEF PAGE 2

Precision nitrogen applications pay off Careful management of nitrogen applications is good for crops and the environment. STORY ON PAGE 6

Containing an insect pest that threatens ash trees Iowa foresters give advice on how to deal with the emerald ash borer, which is spreading to more Iowa counties. STORY ON PAGE 9

BILL TO EXTEND KEY TAX CREDITS PASSES PANEL

IOWA STATE RISES IN RANKING OF AG SCHOOLS

A measure to extend tax credits supported by farmers passed the U.S. Senate Finance Committee last week. The measure would extend tax credits on wind power and biodiesel. It would also reinstate bonus depreciation and provide other small business tax credits that are often used by farmers. The tax benefits expired at the end of 2013 and need to be reinstated to continue. The provisions in the bill would be extended retroactively and continue for two years – covering all of 2014 and 2015. Iowa Sen. Charles Grassley, a member of the committee, heralded the panel’s passage of the renewable energy credits. “Renewable energy supports thousands of jobs and generates billions of dollars in investment across the country,” Grassley said. “Public policy continues to help renewable energy develop and generate electricity and fuel from natural resources. It’s good news for the economy and for energy diversity to restore these provisions.”

Iowa State University (ISU) has been ranked fifth in the world among universities in the area of agriculture and forestry by a British organization’s annual university rankings. The Quacquarelli Symonds (QS) World university rankings measure academic reputation, employer reputation and citations per scientific journal papers to determine the rankings. Last year, Iowa State ranked 10th among universities in agriculture and forestry. “From basic to applied science, our researchers are changing the world,” said Joe Colletti, Iowa State’s College of Agriculture and Life Sciences senior associate dean. “They discover, share and engage the right people at the right time with the right knowledge to solve local to global agricultural and food issues.” The ISU ag college has broken undergraduate enrollment records the past two years and has the third-largest undergraduate program in the nation. Its job placement rate has been 97 percent or higher for 16 straight years.

2 APRIL 9, 2014 IOWA FARM BUREAU SPOKESMAN meat packer Rick Stewart, who operated it for about a year before it closed in May 2002. A group of 950 Iowa area cattle producers formed Iowa Quality Beef and bought the plant from the city for $2.6 million. The plant reopened in July 2003, but closed in August 2004 with 540 meat packers losing their jobs.

BEEF FROM PAGE 1

said. “We’ve seen plant closures for beef around the country, and we haven’t seen those in Iowa because while the national herd has decreased, we’ve stabilized because we are so competitive in cattle feeding,” he said. The news about Iowa’s beef success also shows the growing diversity of cattle processing in the state. Operators of Lime Springs Beef LLC in the Howard County town of Lime Springs plan to open a small plant that targets a specialty market. Iowa Premium Beef in Tama is expected to concentrate on branded, premium cuts for a broader market. Tyson Foods, the nation’s largest meat company, recently announced it would keep open its slaughter plant in Denison. Earlier, the company had said it would close the Denison plant, which has operated for decades, once it completed a $90 million expansion and modernization project at the company’s flagship beef plant in Dakota City, Neb.

Good for cattle raisers The added demand is good for cattle farmers like Jason Hamann in Gladbrook. “It puts more competition in state and saves on transportation costs,” said Hamann, president of the Tama County Cattlemen’s Association. Hamann, a cow-calf raiser, said the added demand for slaughter animals will likely help farmers across the spectrum, from the cow-calf raisers to feeders. So what is attracting beef companies to start up or keep operating in the state? It’s availability of feed, cattle and the “entrepreneurial spirit” of those in the state, company officials said. Jesse Stevens, owner of Lime Springs Beef, which is slated to open this fall, said he changed his plans and decided Iowa was the best fit for a slaughter plant. “I started with a vision of

ACREAGE

Reopening Tama plant

Increased beef harvest capacity in Iowa is expected to help all segments of the cattle business from the cow-calf raiser to feeders. PHOTO/GARY FANDEL

building a packing plant in New England,” he said. “What I discovered quickly in New England was they don’t have a lot of cattle out there.” Hamann said Iowa is a great place to raise cattle because of the available feed here and opportunities to raise cattle in a variety of ways. “The feeding industry in Iowa has been coming back on account of the co-products here with all the ethanol plants and development of confinement feeding,” Hamann said. “So there’s more of a demand for packing plants here.” For Tyson, lower feed prices and the closing of beef plants by some of Tyson’s competitors, coupled with reduced feed prices for cattle are “creating more opportunities for keeping beef production viable at Denison,” said company spokesman Gary Mickelson.

Traceability focus Stevens said Lime Springs Beef will be sourcing cattle from within 100 miles of the plant and will focus on complete traceability. He and his wife, Patricia, both grew up in the Lime Springs area and decided it was the best place to start their specialty beef venture. “It’s the entrepreneurial spirit of people in Iowa. They eliminated the option of having me start this in New England by their

openness,” Stevens said. All cattle raised for slaughter will be ID-chipped and identified. Consumers will be able to scan a code on their package of beef, which will provide information regarding how the cattle were raised. “You will be able to, from a package of meat, connect back to the farmer who raised it,” Stevens said. A growth protocol will be in place for the company’s growers and the cattle they raise to be slaughtered at the plant. Stevens said growers have already started committing to raising beef for the company’s operation.

Creating jobs The plant will employ around 60 employees, and Stevens said he’s excited to bring jobs to Lime Springs. “I’m excited that value add is being brought back to Lime Springs. We’ve got the raw material, we’ve got the cattle, we’ve got the corn. And there’s no sense to shipping jobs to Colorado and Omaha, Nebraska; and Joslin, Illinois; and Green Bay, Wisconsin,” he said. Iowa Premium Beef is expected to open its slaughter facility in Tama this fall. The plant originally opened in 1971 as Tama Pack until IBP closed operations in 1999. The plant was leased to Wisconsin

Estimated change in corn acres

FROM PAGE 1

issues last year, just getting everything in will be a victory this year,” said Barry Christensen, who farms near Lime Springs. Total U.S. corn acres are estimated at 91.7 million acres, a decline of about 3.7 million acres, or 4 percent. Among the top six corn-producing states after Iowa, acres will decline in Illinois, Nebraska, South Dakota and Indiana, while Minnesota’s corn acreage is expected to be the same as last year. The report came in about 1.2 million acres below trade expectations, sparking a rally that pushed December corn futures above $5 per bushel on the Chicago Board of Trade. The rally could entice farmers to increase corn acres after all, said University of Illinois economist Darrel Good. “What we actually plant can differ quite a bit from intentions,” he said. “The way the weather unfolds and the way prices behave between now and planting could have some effect. Given the reaction to (the March 31) report, I would guess we could see more corn and feed grains production than reflected in (the report).”

Acres unaccounted for Good noted that some acres appear to be unaccounted for in the prospec-

In thousand acres Source: USDA National Ag Statistics Service

Iowa was the only Corn Belt state where corn acres are expected to increase in 2014 as farmers bring prevented planting acres back into production. States shaded in red are expected to have fewer corn acres this year.

tive plantings report and better prices could draw those acres back into production. “Planting intentions for all crop acres could have been much larger than what was reflected in today’s report,” he said. “I think we could get more corn acres without fewer soybeans, but we won’t really get a look at that until the acreage report in June.” Soybean acreage intentions are up or unchanged in every state except Missouri and Oklahoma, the USDA said. The biggest change in soybean acreage will occur in North Dakota, where farmers will raise plantings by 1 million acres, a 22 percent increase over last year’s 4.65 million acres. North Dakota’s corn

acres are expected to drop 900,000 acres, a 23 percent decline, likely reflecting lingering winter conditions that are expected to delay the beginning of the spring planting season. Spring weather will heavily influence the corn and soybean markets over the next few weeks as traders watch the pace of planting and the potential impact it could have on the size of the 2014 crop, said AgriVisor analyst Nick Klump. “The market is quickly going to turn to weather, weather, weather as far as getting into the field in the central Midwest,” he said. “It’s going to be a critical talking point going forward.”

Iowa Premium Beef took ownership of the plant in 2010. Though the company has not commented on its plans for the plant, an email to stakeholders last month said it plans to purchase Black Angus cattle raised on Iowa farms for its own line of branded premium beef. Once operational, the email said, the Tama plant will employ 1,000 Iowans.

BIOTECH FROM PAGE 1

control weeds and insects without creating resistance. With a limited number of biotech traits through the approval process, farmers have been forced to use older herbicides and insecticides to control weeds and insect damage. The concern about the length of the approval process, as well as the uncertainty of it, was heightened in the spring of 2013 when the USDA said it planned to prepare separate environmental impact statements on two promising traits, one that provided resistance to Monsanto’s herbicide Dicamba and the other for 2,4-D resistance from Dow. They said the statements would slow the approval process and make farmers wait longer to grow the crops. Farmers also worry that they could be falling behind other large grain-producing countries, such as Canada and Brazil, which have improved their own approval processes for biotech traits. Other countries have taken the

Schulz said the growth in Iowa’s beef packing operations is a good thing for Iowa’s economy. “It’s obviously very good for the Iowa economy as it relates to direct jobs that beef plants are supporting, but also indirect jobs that support the people that are needed for the labor and all the other inputs that go into it,” he said. No matter the type of beef slaughter facility, the plants are a strong indication of the future of Iowa’s beef industry, Schulz said. “The last several years we’ve been talking about excess capacity and the need and want to close packing plants. And now it’s really turned. Now we’re talking about packing plants opening, packing plants not closing the doors, and that’s very good for the future of the cattle industry.” “noise” out of the biotech approval process and are using only science, Kathy Enright of BIO, the biotechnology trade group, told the IFBF board. Biotech supporters worry that the approval process in the United States is being influenced by those who are opposed to the technology and want to slow its adoption, she said. For farmers, the process of getting biotech traits approved has become very frustrating, IFBF President Craig Hill told the USDA officials. “Farmers want to stay competitive in world markets, and we need these biotech traits to do that.” Holtzman said that USDA is also working hard to get China to better synchronize its process allowing the import of biotech crops that have been approved in the United States. Chinese authorities have rejected several cargoes of corn since November because they contained Syngenta’s Agrisure Viptera biotech trait. It was approved in the United States in 2010 but has been awaiting China’s acceptance for more than two years.

Iowa lawmakers focus on the budget, oppose California law Each chamber at the Iowa Legislature continued to focus on their individual budget bills last week. Less than three weeks remain until the targeted adjournment date of April 22, which is the 100th day of the session. Last week, the House passed House Resolution 123, which calls for the repeal of California legislation that was passed in response to a ballot initiative on agricultural production methods. The California legislation requires other states to comply with California’s new egg production standards in order to sell their eggs in California. The House Resolution is not a bill and has no legal impact, but is a statement in opposition to the California legislation. Farm Bureau supports the resolution. The House last week passed House File 2458, which includes $4.4 million dollars for the Iowa Nutrient Reduction Strategy, which represents a $2 million increase over last year. The bill also includes an appropriation of $7.37 million for the conservation cost-share program, a $725,000 increase over last year’s appropriation. As House File 2458 now goes to the Senate for consideration, Farm Bureau will continue to advocate for increased funding in these water quality and soil

conservation programs. House File 2458 only addresses ongoing appropriations and does not include any one-time expenditures. If any one-time money is agreed to, it will likely be addressed in a separate appropriations bill. The Senate passed Senate File 2344, which extends the biodiesel production tax credit for five years at the rate of 2 cents per gallon. The biodiesel production tax credit is currently set to expire at the end of 2014. The bill would modify the E15 retailer tax credit by increasing it to 10 cents per gallon from June 1 through Sept. 15 and keep it at 3 cents the rest of the year. The higher summer rate is designed to offset the increased cost resulting from federal regulations to blend and sell E15 during the summer months. The Senate Appropriations Committee passed Senate File 2347, the education budget bill, which includes an increase of $520,000 for the Agricultural Experiment Station at Iowa State University (ISU). The governor’s proposed budget included an increase of $2.5 million. Farm Bureau will work to support the governor’s proposed increase to promote research and development at the ISU Ag Experiment Station.

IOWA FARM BUREAU SPOKESMAN APRIL 9, 2014

Editorial Hurd showed the way to share agriculture’s story papers, television and radio shows. His brilliance centered on his ability to boil complicated subject matter and pages of research into easily-understandable 20-second sound bites. He could explain things so well, it made critics or fearmongers look uninformed, hysterical or just plain stupid.

BY LAURIE JOHNS

is intellect and quiet intensity positively jumped out of the camera lens the first time I interviewed Dr. Scott Hurd. But I think it was his enthusiasm that threaded its way through every sound bite, every sentence, every column or social media posting he wrote, which set him apart from the rest. When Dr. Hurd passed recently, he left a void in a number of areas; the noted veterinarian, epidemiologist, teacher and speaker did hundreds of interviews on national and international media outlets to “set the record straight” and bring common sense and calm to an anxious, out-of-touch and often fearful public.

Antibiotic expert His specialty was talking about antibiotic use in livestock and antibiotic resistance, and he was never

A passion to teach

HURD

afraid of the pointed questions, tough interviews or critics. His patient nature and science knowledge not only silenced the critics, it won him praise and coverage on such high-profile outlets as the Dr. Oz Show, Huffington Post, National Public Radio (NPR), Wall Street Journal, Des Moines Register and countless other news-

Dr. Hurd did it because he had passion. He had a passion to share agriculture’s side of the story. That’s why he took on the tough interviews, kept his cool, did his homework, kept his answers short and to the point and willingly put himself out there. But perhaps Dr. Hurd’s true brilliance was his laser-focus on the most important recipient of the message. You see, it was never about sitting across from Dr. Oz, Arriana Huffington or Dan Charles from NPR that was the “big deal.” It was their audiences who mattered most.

He wanted the audience to understand about livestock care and food safety. Audiences are consumers, consumers who haven’t been on a farm, haven’t met a farmer, but want reassurance that the food they’re eating is safe. Period. It doesn’t take fancy sound bites to build trust between today’s farmers and today’s consumers. It takes transparency and a willingness to answer questions in a straightforward, no-nonsense, passionate and interesting fashion. Dr. Hurd did that. We can all learn from his example. You can tell your story of agriculture in any number of ways, but share it you must. Dr. Hurd would be proud to have another voice of reason like yours setting the record straight. I’d like to think that somehow, somewhere, he’s listening, with a smile. So speak up! Johns is the public relations manager for the Iowa Farm Bureau Federation.

Finding strength through Farm Bureau membership BY SHELLIE BLACK My husband, Derrick, and I recently traveled with over 100 other Iowa farmers on the Iowa Farm Bureau Federation (IFBF) President’s Incentive Trip, and everyone involved in making that happen deserves a big thank-you. While we knew some of the people on the trip from past and present involvement in IFBF, it was amazing to me how spending a week learning, listening and enjoying the culture of another country with people who provide for America in many different ways, that are all important, come together to share their passion. Not as presidents, directors, managers or farmers, but as people. As much as I have said I support my husband in his involvement in Farm Bureau, I realized I support Farm Bureau not because of the trip, but because of the people and the causes. There are different people, doing different jobs and believing in different causes, with different opinions, but when it comes to the greater good of America and the people who live there, we come

Spokesman Editor DIRCK STEIMEL News Coordinator TOM BLOCK Senior Features Writer TERESA BJORK Ag Commodities Writer BETHANY BARATTA Photographer/Writer GARY FANDEL

tunity through Ag Leaders, Young Farmers, committee participation and many seminars and educational opportunities — too many to list them all.

Growing confidence

Iowa Farm Bureau members visited a sugar beet farm in Spain. Derrick and Shellie Black of the Story County Farm Bureau joined with more than 100 other members to learn about Spanish agriculture. PHOTO/TOM BLOCK

together as one unit, knowing we all make a difference, even I make a difference.

Making a difference The experience was a life changer. I am thankful for everyone on the trip, for the Farm Bureau home office for supporting the missions and goals of America’s farmers and most of all for the opportunities you have given my family. I am a part of Farm Bureau, I do belong to a cause, I am a silent partner (yes, I

EDITORIAL STAFF [515] 225-5413 or dsteimel@ifbf.org

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To place a free exchange ad, contact your county office for information. The Iowa Farm Bureau Spokesman (ISSN 0021-051X) is published weekly by the Iowa Farm Bureau, 5400 University Avenue, West Des Moines, IA 50266. Subscription price of $2 per year for mailing in the continental USA included in the dues of Farm Bureau members in Iowa. Additional subscription fee required for mailing outside the continental USA. Periodical postage paid at Iowa Falls, Iowa. Members please send change of address to your county Farm Bureau office. Postmaster send address changes (POD FORM 3579) to Iowa Farm Bureau Spokesman, P.O. Box 670, Iowa Falls, Iowa 50126. Letters to the editor and statewide news articles should be sent to Editor, Iowa Farm Bureau Spokesman, 5400 University Avenue, West Des Moines, Iowa 50266. Reprinting of Spokesman articles and photographs is not allowed without permission.

know hard to believe), but I am strong. I am strong because my husband talks in front of big groups, he cracks jokes and talks of his passion — farming, fairness and prosperity for all (politics). He walks up to strangers and starts conversations; he looks them in the eye and addresses the issues; he meets with legislators and senators, congressmen and congresswomen, and tells them what our concerns are. He is strong, strong because Farm Bureau gave him the opporIowa Farm Bureau Federation: Craig Hill, President; Joe Heinrich, Vice President; Denny Presnall, Secretary-Treasurer and Executive Director; Edward G. Parker, General Counsel. Board of Directors: District 1 - Carlton Kjos, Decorah. District 2 - Charlie Norris, Mason City. District 3 - Phil Sundblad, Albert City. District 4 - Doug Gronau, Vail. District 5 - Mark Buskohl, Grundy Center. District 6 - Nick Podhajsky, Traer. District 7 - Andrew Hora, Riverside. District 8 - Calvin Rozenboom, Oskaloosa. District 9 - Jim McKnight, Afton.

He is confident, resourceful, determined, outgoing and very thoughtful in his commitment and representation of this organization and what it stands for. He believes in himself, his fellow IFBF family and what this grassroots organization can and is doing to help all of us here and around the world. There are many things to be thankful for in life, mine being my children, husband, family, friends, health and employment, but the one thing I wasn’t aware is that I am thankful for Farm Bureau. Not for the trips or the great friends we have met, but for what they have done for all the things that are important to me. They are more than just a grassroots organization; they are part of our family, now and forever. Shellie and Derrick Black are members of the Story County Farm Bureau, and Derrick is president of the Story County Farm Bureau.

Trade authority key to keeping up export pace BY DIRCK STEIMEL These are exciting days for U.S. agricultural trade. In fiscal 2013, the United States sold a record $140 billion worth of crops, meat and other agricultural goods around the world, building on years of momentum. And here’s the thing: The future looks even brighter for exports of American farm goods. That’s because the United States is negotiating a pair of ocean-spanning trade deals that would reduce tariffs and non-tariff trade barriers. The first, the Trans Pacific Partnership (TPP), would link the United States with key Asian nations and is close to completion. The other is with the European Union and is called the Transatlantic Trade and Investment Partnership, or TTIP. There are still very tough negotiations ahead on both agreements. But the possibility of having the United States involved in free trade agreements with such a broad span of Asia and Europe has veteran trade negotiators almost wanting to pinch themselves to make sure it’s not just a dream. As Sharon Bomer Lauritsen of the U.S. Trade Representative’s Office recently told Iowa Farm Bureau members: “I never in my lifetime would have believed we’d be in negotiations on tariff reductions with both Europe and Japan.”

Keeping the fast track Yet for all of the good signals on trade, there is one darker cloud on the horizon: the battle over trade promotion authority, or TPA. This authority, often called fast track, basically means that the U.S. administration negotiates trade deals and then Congress considers them on an up or down vote, without the possibility of amendments. The TPA is important because it is often viewed by other governments as a signal that the United States is serious about moving forward with trade deals. But getting Congress to approve TPA is going to be a heavy lift, as Iowa Farm Bureau members saw on a recent visit to Capitol Hill. Several members of the Iowa delegation, while supporting increased trade, expressed concern about taking away Congress’ ability to amend trade deals. But we all know that Congress is not exactly a well-oiled machine these days. So it’s easy to envision a trade deal foundering in Congress under an avalanche of bickering. That’s why TPA is so important. And with two game-changing trade deals in the works, it’s critical to keep up the pressure on Congress to get the job done.

APRIL 9, 2014

IOWA FARM BUREAU SPOKESMAN

Pacific trade pact enters final, and most difficult, stage Trade agreement offers vast potential for U.S. farm exports to meet needs of middle-class consumers in Asia.

diet to more of one based on highquality protein. They see imports as the best way to do that.” In addition, passage of the TPP would be critical in ensuring that trade rules are clear and any restrictions are based on science, not politics, Collier said.

BY DIRCK STEIMEL Negotiations over the Trans Pacific Partnership (TPP) are heading into their final, and most difficult, stage, trade officials told Iowa Farm Bureau members recently. “Right now, we are in the end game of the TPP. And like all end games, this is where it gets tough,” said Sharon Bomer Lauritsen, assistant U.S. trade representative for agricultural issues. But despite the difficulties, U.S. trade officials are optimistic that the deal can be struck to complete the proposed trade agreement that would connect the United States in a free trade zone with countries in Asia and South America, as well as Australia and New Zealand, Lauritsen told a group of Farm Bureau members from Iowa and Missouri gathered in Washington, D.C., on March 26. “This will just be a huge breakthrough for agricultural trade,” she said. That sentiment was echoed when Iowa Farm Bureau mem- COLLIER

Japan a challenge

The importance of the Trans Paciﬁc Partnership (TPP) was highlighted by this graphic developed by the New Zealand Embassy. With so much of the world’s population in southern Asia, exports to that region will become even more critical for farmers in the United States and other major exporting countries, according to New Zealand trade ofﬁcials. GRAPHIC COURTESY OF THE NEW ZEALAND EMBASSY TO THE UNITED STATES

bers visited New Zealand’s embassy in Washington March 27. “If we can remove these trade barriers, there is a tremendous opportunity for all of our farmers,” said Dr. Janine Collier, the embassy’s first secretary for trade and agriculture. “We are talking about the production we have now, but also setting the rules that will guide future trade and production.”

Importers and exporters Currently, there are 11 other countries engaged in the TPP negotiations with the United States: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Other Asian countries, including South Korea, the Philippines and Taiwan, have expressed interest in joining the trade pact. While an earlier deadline of

Dec. 31, 2013, has passed, the countries have vowed to continue negotiations into 2014, saying the benefits of the trade deal are too important to pass up. Passage of the TPP would open up enormous markets in Asia for agricultural exporters like the United States and New Zealand, Collier said. “We’re going to see an explosion of middle-class people who want to eat better in those areas,” she said. “They want high protein and milk, and they are looking to move away from a grains-based

While overall trade negotiations will be tough, Japan provides an added challenge, according to Lauritsen. Although it is a major importer of farm products from the United States and other countries, Japan continues to impose tariffs on some farm products that are designed to protect its farmers, she said. Japan has identified five agricultural products — rice, wheat, dairy, fresh meats and sugar — that it wants to try to negotiate some protection. The United States, Lauritsen said, is “fully engaged” with Japan to eliminate all tariffs. And, she said, Japan’s government continues to push for the TPP despite a difficult domestic political situation and complaints from its farmers. For New Zealand and other agricultural exporters, it’s essential that the United States stick to its position on tariff elimination with Japan and other countries, Collier said. “We need to work together on this and stick to our free-trade goals or else Japan will come along and whittle away, trying to get exemptions for their farm products,” she said. “Japan plays a long game and has its own political issues, but they know they need to reform. We need to stick with it and grind them down.”

Grants for watershed projects are approved

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Six more Iowa watershed improvement projects were approved last week by the state’s Watershed Improvement Review Board (WIRB). The approved six applications will receive a total of more than $1.4 million to support projects that will improve water quality in the state. The grant funds will be matched by recipients, who will provide nearly $2 million in funding from the local communities to support these projects. As a result, $3.36 million will support conservation work in priority watersheds throughout the state. “These projects are a partnership between federal, state and local organizations that are committed to improving Iowa’s water quality,” said Bill Northey, Iowa secretary of agriculture. “By supporting projects that address runoff and drainage, sedimentation, urban storm water, livestock runoff, streambed and bank stabilization and a number of other issues, these projects are focused on issues that directly impact the state’s waterways and water quality.” The approved projects have already completed watershed assessments that identified critical water resource areas and will focus on implementing specific water quality improvements. The projects will start after a grant agreement is signed between the applicant and the Watershed Improvement Review Board. Soil

and water conservation districts, public water supply utilities, counties, county conservation boards, cities and local watershed improvement committees were eligible to apply. Individual projects could request up to $300,000.

Nutrient reduction WIRB received a total of $3 million this year, and at least onehalf of the funds must be used to support voluntary, science-based water quality practices referenced in the Iowa Nutrient Reduction Strategy. The Watershed Improvement Review Board is comprised of representatives from agriculture, drinking water and wastewater utilities, environmental organizations, agribusiness and the conservation community along with two state senators and two state representatives. It is anticipated that another request for applications will be announced later this year. The watershed improvement projects approved were: • Hickory Grove Lake watershed in Story County. • Lake Miami watershed in Monroe County. • Little Lick Creek watershed in Van Buren County. • Miller Creek watershed in Monroe County. • Rapid Creek watershed in Johnson County. • Walnut Creek watershed in Pottawattamie and Montgomery counties.

IOWA FARM BUREAU SPOKESMAN APRIL 9, 2014 5

Colleagues remember Hurd’s knowledge, farm advocacy BY BETHANY BARATTA The death of Scott Hurd, a noted veterinarian, epidemiologist, teacher and speaker, has left a void, according to those who worked with him on a wide range of projects. “Dr. Hurd was a true professional in every aspect of the word,” said Patrick Halbur, professor and chair in the Department of Veterinary Diagnostic and Pro duction Animal Medicine at Iowa State University (ISU) and executive director of the ISU Veterinary Diagnostic Laboratory. “He was a world-class epidemiologist and food scientist with a thorough

understanding of the full animal protein production chain.” Hurd, 58, began his veterinary career at a dairy practice in South Central Pennsylvania. This was one of the first practices in the country to computerize its herd health records. The data collected piqued Hurd’s interest in epidemiology. As a result, he earned a doctorate in epidemiology and economics from Michigan State University in 1990, after graduating from veterinary school at ISU in 1982. Hurd spent 15 years of his career in government service, working in three different branches of the U.S. Department of Agriculture (USDA). He was

AFBF blasts EPA proposed rule on ‘Waters of U.S.’ The Environmental Protection Agency’s “Waters of the U.S.” proposed rule released March 25 poses a serious threat to farmers, ranchers and other landowners, American Farm Bureau Federation President Bob Stallman said last week after the organization completed a careful review of the proposal. “The results of our review are dismaying,” Stallman said. “Clean Water Act jurisdiction over farmlands amounts STALLMAN to nothing less than federal veto power over a farmer’s ability to farm.” Under the EPA’s proposed new rule, waters — even ditches —are regulated even if they are miles from the nearest “navigable” waters and aren’t wet most of the time, Stallman said. “EPA says its new rule will reduce uncertainty, and that much seems to be true. There isn’t much uncertainty if most every feature where water flows or stands after a rainfall is federally regulated,” he said. Farmers, ranchers and every

other landowner across the countryside will face a tremendous new roadblock to ordinary land use activities as a result of the proposal, Stallman said. “EPA accompanied its proposal with a new ‘interpretive rule’ claiming to clarify certain statutory exemptions for agricultural conservation practices, including activities as commonplace and essential to farming as building a fence. But these exemptions apply only to ‘dredge and fill’ permit requirements,” he said. “They do not protect farmers from federal veto power over pest and weed control, fertilizer application and other essential farming activities that may result in the addition of ‘pollutants’ to ‘navigable waters,’ — providing one views every ditch and wet spot across the landscape as ‘navigable waters.’” The American Farm Bureau Federation is dedicated to opposing “this attempted end run around the limits set by Congress and the Supreme Court,” Stallman said. “The Supreme Court has ruled repeatedly that Congress meant what it said: ‘Navigable waters’ does not mean all waters. This proposed rule shows that EPA refuses to accept those limits,” he said.

U.S. Supreme Court ruling strengthens property rights The U.S. Supreme Court issued a favorable ruling last month strengthening private property rights. In an 8-1 decision, Chief Justice John Roberts wrote that the federal government doesn’t retain any property interest in easements (rights-of-way) granted to railroads under the General Railroad Right-of-Way Act of 1875. According to the court, once the railroad abandons the easement, the owner of the underlying land obtains full and unencumbered ownership of the land. In this case, the U.S. patented land to a Wyoming family in 1976, subject to an easement that had been granted under the 1875 Act. After the railroad abandoned

the easement, the U.S. claimed to retain an “implied reversionary interest” providing the government with full ownership of the 200-foot wide strip of land. The government had planned to construct a public recreational trail that would have bisected the family’s property. Last November, the American Farm Bureau Federation joined with allies in an amicus brief urging the U.S. Supreme Court to promote a stable set of rules defining property rights and reject the government’s position. The court’s decision should prevent the U.S. from asserting ownership of abandoned 1875 Act easements, Farm Bureau said.

also appointed USDA’s deputy acting under secretary for food safety in 2008. There, he served as the country’s highest-ranking food safety veterinarian and policy advisor to the Secretary of Agriculture. Hurd was most recently an associate professor at ISU’s Department of Veterinary Diagnostic and Production Animal Medicine, as well as director of the Food Risk Modeling and Policy Lab at ISU. “Dr. Hurd was passionate about the remarkable job livestock producers do in producing a nutritious and safe product,” Halbur said. When challenged by others, Hurd engaged his audience and calmly clarified the situation, Halbur added.

Bringing clarity to issues Annette O’Connor, professor of epidemiology at ISU, worked with Hurd on some projects. But she said she’ll most remember his work in helping others understand how risks occur and how risks can best be communicated. “We had many discussions about antimicrobial resistance and how we help communicate that,” O’Connor said. A sensible and polite man, Hurd was known for helping students, consumers, reporters and others understand the science behind antimicrobial resistance, O’Connor said. “He could debate without being confronting,” O’Connor said. “We’ve lost someone who filled

Dr. Scott Hurd of the Iowa State University College of Veterinary Medicine was a widely recognized expert in food safety and antibiotic resistance, helping address consumer concerns about those and other issues. FILE PHOTO

a real niche in that area.” Hurd was vocal about many issues within the livestock industry, ranging from antibiotics use in food animals to animal welfare. “He was an expert on food safety and just really an advocate for animal agriculture,” said Grant Dewell, ISU Extension beef veterinarian. “He was a great person to work with, very thoughtful, and somebody that we’re going to really miss in the future as these issues become more and more on the front burners.” Many media outlets, including the Iowa Farm Bureau Spokesman, National Public Radio, USA Today, Huffington

Post and The Dr. Oz Show, looked to Hurd’s experience and knowledge for their articles and episodes. Hurd also maintained a blog on the Meatingplace website called “The Gentle Vet.” Most recently, Hurd received the Industry Service Award at the National Pork Industry Forum in March. More than science, though, O’Connor said Hurd was incredibly proud of his family — his wife, Susan, and their eight children. Dewell said his fondest memories of Hurd were the times spent with Hurd and his family at the Story County Fair. “He would spend days down at the county fair with his family and their numerous 4-H (animal) projects,” Dewell said. Halbur said the Hurds set an example for others to follow. “He was a remarkable father and husband. He and his family served as role models for many parents and families in our parish (St. Cecilia’s),” he said. “There is no better example of raising a farm family the right way than how Scott and his wife, Susan, have done it.” A memorial fund is being set up to support parenting and family missions programs through the Regnum Christi Mission Corps, a youth formation and leadership training program. Donations can be written to Dr. Scott Hurd’s Charitable Memorial Fund and sent to the family at 3275 400th St., Roland, IA 50236.

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6 APRIL 9, 2014

IOWA FARM BUREAU SPOKESMAN

Iowa Agriculture AG BRIEFS

Sowing the seeds of conservation

Ag essay winner Noelle Gray of Jefferson has been named the Iowa winner of the 2014 Growmark essay contest for FFA members. The theme of this year’s contest was “Promoting Sustainability and Conservation of Natural Resources.” In her contest entry, Gray said: “Successful farmers and cooperatives strive to be good stewards of the land by employing many practices including responsible tilling, use of filter strips and close monitoring of fertilizer use.” Gray is a student at Greene County High School and a member of the Jefferson-Scranton FFA chapter. Gray will receive a $500 award from Growmark, and her chapter will receive a $300 award to help future students. Four state runners-up will each receive a $125 award. The runners-up and their FFA chapters are Andrew McEvoy, NorthLinn FFA, Central City; Elizabeth Moore, North Mahaska FFA, What Cheer; Tyler Willis, Linn-Mar FFA, Marion; and Carson Wirtz, Hawkeye FFA, Whittemore.

Vet meeting A meeting to discuss local response to an animal disease emergency is set for April 17 in Storm Lake. The session, which is called Local Response to an Animal Disease Emergency, is scheduled to run from 6 to 9 p.m. at the Prairie Lakes Area Education Agency, 824 Flindt Drive in Storm Lake. The meeting is targeted at farmers, veterinarians, emergency management coordinators, fire and rescue professionals, law enforcement, county supervisors, meat processors, livestock auction officials and others. “The purpose of the meeting is to let the audience know that their response is needed on a local level in the face of an animal disease emergency (for instance, foot and mouth disease) and the role that they may play in that event,” said Dr. Gregory S. Schmitt, district veterinarian for the Iowa Department of Agriculture and Land Stewardship. For more information, contact Schmitt at greg. schmitt@iowaagriculture.gov.

Feral swine targeted The Agriculture Department last week announced a new national plan aimed at reducing damage caused by feral swine with a longterm goal to eliminate feral swine in 10 states within seven years. The $20 million program will be managed under the Wildlife Services program of USDA’s Animal and Plant Health Inspection Service, working directly with states to control populations, test animals for diseases and research better methods of managing feral swine damage. Feral hogs continue to grow in numbers throughout portions of the United States and have expanded their range from 17 to 39 states over the last 30 years.

Matt Danner took advantage of a break in the weather last week to repair waterways in a ﬁeld west of Coon Rapids. He was using a mix of oats, rye, fescue, clover and brome to re-seed the waterways, which were damaged by a 10-inch rain last May. After seeding, he planned to install fabric to keep the seed in place until it emerges. PHOTOS/GARY FANDEL

Multiple strategies help farmers manage fertilizer more precisely and improve proﬁts BY TOM BLOCK Like many farmers, Dennis Brinkman’s nitrogen management practices have evolved over the years as technology and science have improved. “We used to put it on one time in the fall, and that was it,” said Brinkman, who farms near Charles City. “Now we try to split it up in three different applications.” He uses a nitrogen (N) stabilizer to prevent N applied before planting from leaching, a practice he started many years ago. But working with AgVantage FS in Charles City showed Brinkman he could achieve additional environmental benefits and reduce his overall nitrogen use by splitting up his applications into smaller, more timely increments. “It seems like that’s a more common sense way,” said Brinkman. “There’s a better chance of having that nitrogen there when the plant needs it. Ideally, you would be able to put it on right when the plant needs it, but you’re kind of at the mercy of the weather.” Applying less nitrogen before corn plants are growing reduces the risk of leaching from spring rainfall, said AgVantage FS certified crop specialist Jay Matthews. A post-emergence sidedress application also allows growers to adjust rates depending on crop needs, he added. Mike Link is also changing his nitrogen management strategies on his farm near Ionia, moving entirely away from fall nitrogen applications after working with Matthews and AgVantage FS. This year, Link said he plans to apply about one-half of his nitrogen in the form of anhydrous ammonia before planting and have the rest applied as urea with a high-clearance machine before tasseling.

Jay Matthews, a certiﬁed crop specialist with AgVantage FS in Charles City, says farmers can optimize fertilizer management with a whole system approach. PHOTO/GARY FANDEL

He did several years of side-byside replicated field trials to make sure it was the best economic as well as environmental decision for his farm. The split applications cost more because urea is more expensive than anhydrous ammonia and there is an additional cost for the extra application, but Link said his trials show yields have increased at lower nitrogen rates. “Our field trials show that by applying half before planting and half as urea, it more than pays for itself,” he said.

Flexible approach Putting in the work for field trials helps assure growers they’re using the right nitrogen rate without sacrificing yields, Matthews said. “At the end of the year, we can tell them what the right rate was,” he said. “The idea is that if we can get enough data points, we can make a recommendation for next year. That’s always hard, because the weather plays such a role in nitrogen management.” A significant number of growers have moved away from single fertilizer applications during the past three years after seeing how

split applications perform on their farms, Matthews reported. “They can see the benefit from a cost and yield standpoint, and from an environmental standpoint,” he said. “They see how it benefits everybody.” FS approaches fertilizer management as a flexible system that can adjust to real-world challenges, Matthews said. Agronomists like Matthews use the acronym “MOM” to describe a fertilizer management strategy involving three components: • Minimizing environmental impact. • Optimizing yield. • Maximizing input utilization. Strategies may change from farm to farm, or even field to field, to achieve a farmer’s yield and environmental goals, Matthews explained. “It’s about doing what’s best for the crop, the environment and the farmer in that system,” he said. “For one farmer, it might be one application in the fall; for the next farmer, it might be three applications. “We know each farmer is in a unique situation, so you can’t have one plan. You have to have a plan that can adapt and change for those different farmers.”

Brinkman and Link also both participate in the N-Watch program sponsored by the Growmark FS system of regional cooperatives, including AgVantage FS. The program attempts to quantify the form of available, soilapplied nitrogen, where it is located and what happens to the concentration of available N over time in the upper 24 inches of the soil profile. After harvest, agronomists take composite samples every two to four weeks until the soil freezes. They return to pull more samples after the soil thaws in the spring to see if the residual nitrogen is still there. “We use the N-watch program to track the nitrogen, so we can better see what’s happening in the field,” said Brinkman. Matthews also encourages farmers to use grid sampling and variable rate applications to apply nitrogen and other nutrients in the proper amounts and locations. The whole system approach to nutrient management fits nicely with other components of Iowa’s Nutrient Reduction Strategy, he said. “I think something that’s been lost in the conversation is that farming is a business. If you overapply nutrients, that’s not good for the business part,” he said.

USDA announces extension of MILC program for 2014 The Milk Income Loss Contract (MILC) program has been extended to Sept. 1, 2014, or until the new Margin Protection Program for dairy producers (MPP) established by the 2014 farm bill is operational, U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) Administrator Juan Garcia said. Contracts for eligible pro-

ducers enrolled in MILC on or before Sept. 30, 2013, are automatically extended until the termination date of the MILC program, which protects dairy farmers enrolled in the program against income loss. Dairy operations with approved MILC contracts will continue to receive monthly payments if a payment rate is in effect.

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Landowners should review their options as emerald ash borer threatens Iowa trees BY TERESA BJORK A tiny iridescent-green bug is changing Iowa’s landscape by threatening one of the most commonly grown trees in cities, acreages and backyards. The emerald ash borer (EAB), an invasive insect that’s native to China, has spread to 21 states, including Iowa, since it was first discovered in Michigan in 2002. The insect feasts under the bark of ash trees, destroying the tree’s “plumbing” so the tree can’t take in water and nutrients, until the tree dies, explains Robin Pruisner, state entomologist with the Iowa Department of Agriculture and Land Stewardship (IDALS). Once EAB is found in an area, it’s impossible to stop the spread, experts say. In some woodlands in southeast Michigan, where EAB was first discovered, the insect has destroyed nearly 99 percent of ash trees. In Iowa, EAB has spread to nine Iowa counties, mostly on the eastern side of the state, including four counties where EAB has been found since mid-December 2013. One of the largest discoveries was in Waterloo, where city crews were trimming trees and noticed heavy woodpecker damage on ash trees in residential area spanning 10 blocks by 10 blocks. Tests confirmed an EAB infestation.

Statewide spread Pruisner says EAB can live in an area for five or six years before trees show any symptoms of distress. The only way to identify an EAB-afflicted tree is to strip the bark for sampling. That’s why state forestry and insect specialists assume that the EAB infestation is already statewide or soon will be. In response, the entire state of Iowa is under a quarantine restricting the movement of firewood or wood chips across state lines into regions without EAB, including Nebraska and South Dakota. Moving firewood across county lines is also discouraged. Iowa cities are trying to get ahead of EAB’s spread. Ash trees make up about 16 percent of the tree population in Iowa cities, totaling about 3.1 million urban trees, according to state tree inventories. Many cities, including Water-

loo, Burlington and Des Moines, are removing ash trees now to prevent any safety hazards from falling limbs.

ester on site to really manage your entire woodlands so it can be healthy and sustainable well into the future,” he said.

Landowner options

Tree removal

While tree removal is often the best solution for cities to keep costs and risks to a minimum, homeowners and landowners may have other options, said Paul Tauke, state forester with the Iowa Department of Natural Resources (DNR). Landowners with woodlands or several trees on their property are encouraged to call their DNR district forester for advice on how to prepare for EAB. (Find contact information for district foresters online at http://www.iowadnr.gov/Environment/Forestry/ ForestryLandownerAssistance/ DistrictForesterContacts.aspx.) District foresters can help Iowa landowners develop a management plan for their woodlands and help determine whether the ash trees should be removed and replaced, Tauke said. He noted that the wood could be sellable, especially on the eastern side of the state, where log buyers are looking to buy ash wood to meet global demand. “Look at emerald ash borer as an opportunity to get a for-

Meanwhile, landowners who have just a few ash trees on their farm or rural property can leave the trees standing if they’re not posing a safety risk, Tauke said. “If the trees die standing, they will make good wildlife habitat,” he added. However, if ash trees make up the majority of your property’s tree population, you may want to consider removing a few trees that are already on the decline and replacing them with other shade trees, so the new trees have a few years to grow and fill out, Tauke said. Pesticides are available to treat ash trees. However, Iowa State University Extension recommends that treatments wait until EAB is discovered 15 miles away from your location. Also, there’s no guarantee that the treatments will work, Pruisner noted. For more information on treatment options, visit Iowa State University Extension’s EAB website at http://www. extension.iastate.edu/pme/ EmeraldAshBorer.html.

Above: Crews in Waterloo are removing ash trees in a 10-block-by-10-block residential area after the discovery of an emerald ash borer infestation this winter. Iowa ash trees are under threat from the invasive insect. Top left: Emerald ash borer larvae feed under the bark of ash trees. PHOTOS/GARY FANDEL

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10 APRIL 9, 2014 IOWA FARM BUREAU SPOKESMAN

Corn stocks up 30 percent, soybeans down slightly

he U.S. Department of Agriculture’s (USDA) estimates of March 1 grain stocks last week contained a few surprises, but no major shocks, University of Illinois economist Darrel Good said last week. Corn stocks in all positions on March 1 totaled 7.01 billion bushels, up 30 percent from March 1, 2013, the USDA said in its grain stocks report. The estimate was about 100 million less than the average trade guess and implies that feed and residual use of corn in the domestic market during the first half of the current marketing year totaled 3.851 billion bushels, Good said. Of the total stocks, 3.86 billion bushels are stored on farms, up 45 percent from a year earlier. Offfarm stocks, at 3.15 billion bushels, are up 15 percent from a year ago, the report said. Soybeans stored in all positions on March 1 totaled 992 million bushels, down 1 percent from March 1, 2013, the report said. Soybean stocks stored on farms are estimated at 382 million bushels, down 16 percent from a year ago. Off-farm stocks, at 610 million bushels, are up 13 percent from last March. Indicated disap-

Ecuador becomes the fourth South American option for U.S. beef exporters, joining Peru ($32.8 million in 2013 sales), Chile ($68.6 million) and Colombia ($9.1 million).

Council Bluffs projects

pearance for the December 2013 — February 2014 quarter totaled 1.16 billion bushels, up 20 percent from the same period a year earlier, the report said.

Beef ban lifted Ecuador has lifted its ban on U.S. beef, in place for more than 10 years since the first U.S. case of bovine spongiform encephalopathy prompted the closure of that and many other foreign markets, according to the U.S. Meat Export Federation. Now eligible are muscle cuts and offal items from cattle of all ages. Still effective, however, is a stipulation on beef derived from Canadian cattle that requires such animals to be in the United States for 60 days before slaughter, explained Cheyenne Dixon, the group’s technical services manager.

State tax incentives granted by the Iowa Economic Development Authority will help bring 150 new jobs to Council Bluffs and about $14 million in investments from subsidiaries of Tyson Foods Inc. and Gavilon, the Omaha WorldHerald reported last week. Tyson Fresh Meats Inc. plans to spend $9.5 million on new equipment at its pork and beef packing plant. The company will add 139 jobs and will add a second shift to plant operations. The project is expected to be finished in late May. The plant currently employs 1,045 employees. Meanwhile, Gavilon Ingredients LLC plans to build a $4.5 million animal feed handling facility in Council Bluffs.

U.S. importing ethanol The U.S. is importing ethanol from Brazil after an 81 percent rally in domestic prices this year, Bloomberg reported last week, citing two individuals with knowledge of a shipment. The vessel Chembulk Ulsan was scheduled to load 5.3 million gallons of ethanol at Brazil’s Port of Santos on April 3 and deliver it later next month at the Port of

Tampa, according to the sources, who asked not to be identified because terms aren’t public. The shipment is from Sao Paulo-based Copersucar SA, Brazil’s largest ethanol exporter, the sources said. “The U.S. is a buyer, especially in the past three weeks, after prices jumped,” Tarcilo Rodrigues, a director at Sao Paulo-based trading company Bioagencia, told Bloomberg in a telephone interview.

Closing prices April 4, 2014 Contract April 2014 May 2014 June 2014 July 2014

Settle $23.94 $21.64 $20.56 $20.28

Spot Prices Block Cheese Barrel Cheese Butter NFDM Grade A

Last Week $23.81 $21.96 $20.49 $20.30

$2.3500 $2.2250 $1.9700 $1.9975

23,886 $128.14 $204.24 $173.93 $148.07

Contract August 2014 September 2014 October 2014 November 2014

Settle Last Week $20.02 $20.04 $19.78 $19.73 $19.35 $19.37 $18.92 $18.88

Milk Prices April Class III April Class IV

$23.94 $23.46

Iowa Hay Auctions Dyersville, April 2 Hay, large squares, supreme, $225; premium, $240; good, $150-200; fair, $125-170; utility, $70-110; large rounds, good, $100140; fair, $80-100; utility, $60-85; small squares, good, $2.90. New seeding, large rounds, good, $110. Straw, large squares, good, $25-40. CRP, large rounds, good, $65. Mixed, large squares, good, $150-205; large rounds, $100-130. Grass, large rounds, good, $70-120; fair, $65-80. Cornstalks, large rounds, good, $37.

Ft. Atkinson, April 2

04/05/2013 100,425 $128.42 1318 $191.32 $187.01 $14.31

Accumulated exports of U.S. corn to Mexico reached 5.5 million metric tons (216.5 million bushels) through March 20, more than 3.3 million tons (131 million bushels) greater than at the same time last year, according to the USDA’s Export Sales Report. Mexico only imported 4.5 million tons (177 million bushels) of U.S. corn for the entire 2012-2013 marketing year.

CME Class III Milk Futures

Weekly Average Price Comparison Sheet Price comparisons: Week ending: 04/04/2014 03/07/2014 Cattle - National 5 Area Confirmed Sales 3,439 49,745 5 Area 65-80% Choice Steers: Wtd Avg. $148.00 $149.12 Average Weights (Estimate) Cattle 1324 1335 Boxed Beef Choice 600-750 (5 day avg.) $228.74 $236.02 Boxed Beef Select 600-750 (5 day avg.) $217.37 $232.87 Five Day Average Hide and Offal Value $16.09 $15.57 Cattle - Interior Iowa - Minnesota Supply: 2,715 8,662 Average Price Choice Steer: Live Basis $152.45 $148.18 Average Price Choice Steer: Dressed Basis $238.00 $238.62 Feeder Steers at River Markets (Neb. Feedlots) #1 Muscle Thickness 500-600# $223.82 $228.58 #1 Muscle Thickness 700-800# $174.06 $178.77 Hogs -- Interior Iowa - Minnesota ISM Friday Weighted Average Carcass Price $124.90 $107.38 Average Weights (Estimate) Hogs 285.0 281.8 Sows 1-3 300# and up: Average Price $91.23 $71.56 Pork Loins 1/4” trimmed 13 - 19 pounds NA $152.28 51-52% 185 pound Pork Carcass (5 day avg.) $130.49 $106.69 Feeder Pigs: National Direct Delivered Feeder Pigs 10 Pounds Basis - Wtd Avg. $91.40 $88.87 Feeder Pigs 40 Pounds Basis -- Wtd Avg. $139.14 $114.03 Sheep -- National Slaughter Lambs Negotiated Sales NA 9,900 Choice & Prime Wooled and Shorn 130-150 lbs. NA $153.75 Iowa Large Eggs (cents per dozen) $1.45 $1.06 Young Hen Turkeys: 8 -16# - Eastern (cents/lb) 101.50 99.80 *Iowa Ethanol Prices $/gal $3.05 $2.28 Futures: Corn $4.92 $4.89 State Average Cash Corn Price $4.74 $4.60 Basis -$0.28 -$0.29 Futures: Soybean $14.77 $14.58 State Average Cash Soybean Price $14.30 $14.10 Basis: -$0.44 -$0.48 Slaughter Under Federal Inspection Estimates Estimates Hogs: 2,030,000 2,053,000 Cattle: 583,000 544,000 Sheep: 40,000 38,000 Estimated Numbers through Saturday Cash Corn and Soybean prices are the Iowa Average Prices as reported by IDALS. NA-No report at time of publication. Source: USDA Livestock and Grain Market News

Corn exports rebound

Hay, small squares, 1st crop, $130-180; 2nd crop, $150-320; 3rd crop, $220-250; large squares, 1st crop, $85-200; 2nd crop, $130-190; 3rd crop, $140-230; large rounds, 1st crop, $40-145; 2nd crop, $75-185; 3rd crop, $120-190. Grass, large squares, $85-90; large rounds, $75-95. New seeding, large rounds, $40-80 Straw, small squares, $220-245; large squares, $75-130. Cornstalks, large rounds, $35-85.

Perry**, March 29 Alfalfa, small squares, premium, $6-7; good, $4; large squares, premium, $80; good, $55; large rounds, premium, $90; good, $65. Grass, small squares, premium, $4.50; good, $3.50; fair, $2.50; large rounds, premium, $65; good, $50; large squares, good, $58; fair, $50. Straw, small squares, $3.50. Cornstalks, large rounds, $15.

Rock Valley, April 3 Alfalfa, large rounds, premium, $150-170; good, $120-145; fair, $105-112.50; large squares, good, $125-127.50. Grass, large squares, good, $120-125; large rounds, 112.50-130; fair, $92.50-105; utility, $50-82.50. Cornstalks: large rounds, $45-47.50.

Yoder**/Frytown, April 2 Grass, large rounds, $35-50. Alfalfa, large rounds, $62.50-80; large squares, $47.50-72.50; small squares, $4-6.50.

**Perry and Yoder hay auction prices are per bale. All other prices are per ton. Contacts: Dyersville, 563-588-0657; Ft. Atkinson, 563-534-7513; Perry, 515-321-5765; Rock Valley, 712-476-5541; Yoder, 319-936-0126

$80.96 276.2 $62.28 NA $77.30 $28.45 $57.74 2,900 NA $0.85 97.00 $2.43 $6.29 $6.46 +$0.17 $13.62 $13.64 -$0.02 Actuals 1,977,000 583,000 36,000

The U.S. Department of Agriculture’s planting intentions report released on March 31 indicated that plans are to decrease corn acres and increase soybean acres versus last year. The corn planted area for all purposes in 2014 is estimated at 91.7 million acres, down 4 percent from last year. The soybean planted area for 2014 is estimated at a record-high 81.5 million acres, up 6 percent from last year. The graph this week reviews planted acres since 2000. The number of acres plays a major role in total supply and thus new-crop price. Recent prices have been some of the best opportunities offered for the 2014 crop in this calendar year. Weather this spring will now determine the actual number of acres planted to each crop.

IOWA FARM BUREAU SPOKESMAN

Plantings survey provides a base for 2014 crop market

he U.S. Department of Agricultureâ&#x20AC;&#x2122;s (USDA) prospective plantings report, released last week, laid a much needed base for the trade to work from. While private forecasts, some based on producer surveys, have value, none are as extensive as the USDA report, both the size of the survey and the breadth of crops planted. While none of the planting forecasts were a huge surprise, the corn number did come in a little below expectations. Ironically, the 91.7 million acre planting forecast was close to the 92 million acre level that many analysts had been using since last fall. It was only the rally the last couple of months that had caused some to raise their expectations. But much of the winter price gain came at the end of the data collection period for the USDA report. Interestingly, the plantings of all crops were only projected to increase 1 million acres from last year. After the total plantings number was adjusted for second-crop soybean plantings, the number only increased 2.5 million from last year. We have to remember prevent plant acres were 8.3 million last year, near the upper end of the range of acres in that segment the last few years, 9.6 million. The low side is 1.2 million. The key to the situation is the total of all acreage â&#x20AC;&#x201D; prevent plant and conservation reserve (CRP) land included. The total, including those two categories, is 4.5 million acres down from last year and 6 million below the most recent high in 2008. Thatâ&#x20AC;&#x2122;s using a 2.5 million acre forecast for prevent plant this year. Given the late start to spring, thereâ&#x20AC;&#x2122;s reason to think prevent plant acres could be higher than our forecast, but unless planting is extremely late, weâ&#x20AC;&#x2122;d be hesitant to think they will exceed 4 million. That still leaves 3 million to 4 million acres to be planted to something that was not accounted for with the prospective planting forecasts. Itâ&#x20AC;&#x2122;s important to recognize the June planting report is statistically a more accurate forecast. Since 2000, corn plantings have a tendency to rise about 750,000 acres, while soybeans have declined 500,000 acres from the March report. Interestingly, thatâ&#x20AC;&#x2122;s reverse of the trend in the 1970s, 1980s and 1990s. This year, we wouldnâ&#x20AC;&#x2122;t be shocked at an increase for both, but for corn in particular. Still, the ultimate mix will depend on weather and the speed of planting.

APRIL 9, 2014

Cash Strategist Hotline: 1-309-557-2274

CORN STRATEGY

850

2013 CROP: The USDA reports

Central IL Daily Cash Corn

750

last week carried corn prices to new seasonal highs. Amid the surge, itâ&#x20AC;&#x2122;s important to recognize the changes were only less negative, not positive. Still, there is a chance that weather could carry prices slightly higher in the near futures. Use rallies over $5 on May futures to make catch-up sales. Check the hotline occasionally to see if we add to them.

550

450

&DVK FRUQ SULFHV DUH LQ D ELW RI D QR PDQ V ODQG 7KH EHVW ZH FDQ VD\ LV WKH SDWWHUQ RI WKH UDOO\ RII WKH IDOO ORZ PD\ EH FRPSOHWH

ĎŽĎŹÍ˛Ç Ä&#x17E;Ä&#x17E;ĹŹ Ä?Ç&#x2021;Ä?ĹŻÄ&#x17E; ĹŻĹ˝Ç Ć?

650

7KH UHERXQG KDV DOVR WDNHQ SULFHV WR WKH UHWUDFHPHQW RI WKH HDUO\ IDOO FROODSVH DQG FORVH WR 7LPH LV FORVLQJ LQ RQ WKH HQG RI WKH ZLQGRZ LQ ZKLFK WKH WUHQG ZLOO WXUQ GRZQ LQWR WKH -XQH ZHHN ORZ

350 5/1/12

12/19/12

Ä&#x161;ĆľÄ&#x17E; Ĺ?Ĺś Ä&#x17E;Ä&#x201A;Ć&#x152;ĹŻÇ&#x2021; :ĆľĹśÄ&#x17E;

8/13/13

4/4/14

11/21/14

200

2014 CROP: Another 10 percent was priced after the report. Use rallies over $5 on December futures to get sales up to the recommended 35 percent.

FUNDAMENTALS: Not surprisingly, the USDA reports offered enough surprise to lift prices to

new seasonal highs. But even though the stocks were a little smaller than anticipated, thereâ&#x20AC;&#x2122;s no fundamental argument to expect a major move up unless weather has an impact on the new crop. Plantings may have been a little smaller than anticipated, but it will take serious yield problems

1650

0 Basis Chicago Futures

-50 5/9/13

7/31/13

10/21/13

1/13/14

4/4/14

to carry prices even moderately higher. Export demand remains good.

Central IL Daily Cash Soybeans

1550

Î¨ĎĎąÍ&#x2DC;ĎĎ° ĎąĎŹĐš Ć&#x152;Ä&#x17E;Ć&#x161;Ć&#x152;Ä&#x201A;Ä?Ä&#x17E;ĹľÄ&#x17E;ĹśĆ&#x161;

1450

the neutral soybean stocks as a indicator to expect the USDA to lower its ending stocks number. But with South American prices declining, itâ&#x20AC;&#x2122;s still difficult to build a bullish argument. We do not recommend owning inventory.

F U N D A M E N TA L S : T h e steady drum of exports continues to dominate the focus of the trade.

The pattern of the move up off the fall low is close to complete, if not already so.

1750

2013 CROP: The trade took

futures have stalled in the first significant band of resistance at $12 to $12.25. Use rallies to get sales to recommended levels.

100

1850

SOYBEAN STRATEGY

2014 CROP: November

150

ĎĎ˛Í˛ Ć&#x161;Ĺ˝ ĎĎ´Í˛ Ç Ä&#x17E;Ä&#x17E;ĹŹ Ä?Ç&#x2021;Ä?ĹŻÄ&#x17E; ĹŻĹ˝Ç Ć?

1350

Along with that, prices are struggling at the downtrend off the 2012 high, and the 50% retracement of the decline off the 2012 peak.

1250

1150 5/1/12

12/19/12

8/13/13

4/4/14

11/21/14

300

But as outlined in our column last week, the trade is finally â&#x20AC;&#x153;waking upâ&#x20AC;? to the implications the Chinese reselling/shipping delays of Brazilian cargoes are having on cash prices. And it has started to undermine demand at the U.S. Gulf, with basis falling 20 cents over the last week. Interior basis is holding better because of

250

200 150 100 50 0 -50 4/22/13

Basis Chicago Futures

7/16/13

10/8/13

1/2/14

3/28/14

processing demand, but needs to hold to make imports into interior crush plants economically viable.

Iowa Corn & Soybean Basis CORN: (basis vs. May futures, 4/02/14)

NW $4.60 -0.36 SW $4.54 -0.42

Cash Strategist Positions at a glance

CORN

2013

3-10-14 â&#x20AC;&#x201D; 10% sold @ $4.82

8-21-12 â&#x20AC;&#x201D; 10% sold @ $6.50

3-10-14 â&#x20AC;&#x201D; 15% sold @ $4.78

4-29-13 â&#x20AC;&#x201D; 10% sold @ $5.36

3-31-14 â&#x20AC;&#x201D; 10% sold @ $4.95

â&#x20AC;&#x201D; 10% sold @ $5.33

65% unsold

6-3-13 â&#x20AC;&#x201D; 10% sold @$5.27 2-10-14 â&#x20AC;&#x201D; 10% sold @$4.42 1/4 3-10-14 â&#x20AC;&#x201D; 20% sold @ $4.85 20% unsold

BEANS

2013

2014

7-11-12 â&#x20AC;&#x201D; 10% sold @ $12.92

12-23-13 â&#x20AC;&#x201D;10% sold @ $11.72

8-1-12 â&#x20AC;&#x201D; 10% sold @ $12.90

12-31-13 â&#x20AC;&#x201D; 10% sold @ $11.35

2-4-13 â&#x20AC;&#x201D; 10% sold @ $13.35 4-22-13 â&#x20AC;&#x201D; 10% sold @ $12.06 6-3-13 â&#x20AC;&#x201D; 10% sold @ $13.25

NE $4.72 -0.24 SE $4.78 -0.18

NW $14.09 -0.53 SW $14.30 -0.32

NC $14.14 -0.48 SC $14.23 -0.39

NE $14.13 -0.49 SE $14.28 -0.34

Neither AgriVisor LLC nor the Iowa Farm Bureau Federation is liable for any damages that anyone may sustain by reason of inaccuracy or inadequacy of information provided herein, any error of judgment involving any projections, recommendation or advice or any other act of omission. This publication is owned by the Iowa Farm Bureau Federation with advice provided by and copyrighted by AgriVisor Services LLC, 1701 Towanda Avenue, Bloomington, Ill., 61701. No reproduction of any material in whole or in part of this page may be made without written consent.

2014

7-16-12 â&#x20AC;&#x201D; 10% sold @ $6.35

5-13-13

NC $4.70 -0.26 SC $4.74 -0.22

SOYBEANS: (basis vs. May futures, 4/02/14)

2-18-14 â&#x20AC;&#x201D; 10% sold @ $11.38 3-3-14

â&#x20AC;&#x201D; 10% sold @ $11.72 60% unsold

10-28-13 â&#x20AC;&#x201D; 10% sold @ $12.78 11-11-13 â&#x20AC;&#x201D; 10% sold @ $13.00 12-9-13 â&#x20AC;&#x201D; 10% sold @ $13.34 1-21-14 â&#x20AC;&#x201D; 20% sold @ $12.99

Iowa Farm Bureau members have free 24/7 access to AgriVisor daily updates through the Members portion of the IFBF website: www. iowafarmbureau.com. The AgriVisor link is on the homepage under the Daily Market chart.

Livestock groups seek rewrite of draft animal feed regs The National Milk Producers Federation (NMPF) has asked the Food and Drug Administration (FDA) to rewrite a draft livestock feed regulation, saying the agency went beyond the intent of Congress by seeking to impose requirements that will not make animal feed safer. The National Cattlemenâ&#x20AC;&#x2122;s Beef Association (NCBA) also shared concerns about the prescriptive nature and â&#x20AC;&#x153;one-size-fits-allâ&#x20AC;? approach to the FDA. â&#x20AC;&#x153;Because the U.S. livestock industry is extremely diverse between the species of livestock, a sweep approach will simply not work,â&#x20AC;? the NCBA said. The draft regulations were

issued under the Food Safety Modernization Act (FSMA), which gave the FDA broad new authority to regulate food. The NMPF said it supports efforts to implement the 2010 law, but believes that the draft animal feed regulation goes too far, particularly because it would make it harder to use brewersâ&#x20AC;&#x2122; grain as animal feed, a practice in use for hundreds of years. The NMPF said the draft regulation incorrectly imposes safety standards on animal feed that are similar to those for human food. The proposed regulation incorrectly establishes manufacturing standards that equate animal feed and human food, the organization

said. It asked the FDA to propose manufacturing standards specific to animal feed. The proposed regulation also unnecessarily regulates by-products from brewing when they are used in animal feed, even though there is no public health risk associated with these products. In separate comments submitted jointly with the International Dairy Foods Association, the NMPF also identified unnecessary and duplicative requirements for dairy processing plants that may divert some food production materials such as cheese trim and liquid whey to animal feed. These plants are already subject to FSMA requirements for human food production.

APRIL 9, 2014

IOWA FARM BUREAU SPOKESMAN

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