State4 8 2015

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

APRIL 8, 2015 |

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

Farmers plan to plant more soybeans, fewer corn acres

BY BETHANY BARATTA The U.S. Department of Agri­ culture’s (USDA) reports last week provided an early outlook for planting intentions for the 2015 season, as well as a glimpse of old-crop corn and soybeans.

Farmers intend to plant 89.2 million acres of corn across the United States this year, the USDA said in its prospective plantings report. If realized, that would be down 2 percent from last year.

Iowa farmers expect to plant 13.6 million acres of corn this

year, or 1 percent less than last year, the report said.

As expected, soybeans will be replacing corn on some acres.

Growers are expected to plant 84.9 million acres of soybeans this year, up 1 percent from 2014.

Iowa farmers expect to plant 10.1 million acres of soybeans, up 2 percent from last year.

A reaction to costs Chad Hart, grain market spe­ cialist at Iowa State University (ISU), said the shift toward more soybean acres is a result of costs.

“When crop prices drop, farm­ ers tend to shift to what they see as a lower cost crop to plant and pro­ duce,” he said.

“Soybeans are a l ow e r c o s t crop to plant and produce, so we tend to s e e f a r m e r s HART shift toward soy­ beans,” Hart said.

He noted that corn prices his­ torically have fallen on a percent­

age basis more than soybeans, which also makes growing soy­ beans more attractive, he said.

Hart said the report shows what farmers would like to plant, but that could change depending on weather.

“These are intentions. These are what we hope to do. Usually, the pattern is we tend to over report corn area and under report soybeans area,” Hart said.

The USDA’s quarterly grains stocks report, also issued last week, showed that farmers have been holding on to more of last

Commodity prices weigh on land values

Down from peak This year’s estimate of average Iowa cropland value in the real­ tors’ survey is down 15 percent from the March 2013 level of $8,690 per acre.

Other land price surveys, by Iowa State University (ISU) and the Chicago Federal Reserve Bank, have shown similar declines. The annual ISU survey showed an 8.9 percent decline in Iowa farmland values in the year ending Nov. 1, 2014.

Crop land prices were down in every region of the state, the realtors’ survey showed.

The sharpest decline was in north­ east Iowa, which showed a 17.5 LAND PAGE 2

ACREAGE PAGE 2

Time to tell the whole story about water Craig Hill, IFBF president, says media reports downplay farmers’ conservation efforts.

BY DIRCK STEIMEL The sharp decline in corn and soybean prices continues to weigh on Iowa farmland values, driv­ ing them down 11 percent from 2014 and down 15 percent from the peak levels reached in 2013, according to a survey of realtors released last week.

The weakness in Iowa land prices is expected to continue unless weather problems or an un­­expected surge in demand cause a sharp jump in commodity prices, according to Kyle Hansen of the Iowa Chapter Number 2 of Realtors Land Institute, which conducted the survey. “I think most see this trend continuing at least another six to 12 months if commodity prices continue to go sideways or go down farther,” he said.

The realtor survey, which asked members to estimate the value of Iowa farmland as of March 1, showed the price of average till­ able crop land at $7,372 per acre.

That’s down 7.6 percent since the group’s last survey in September 2014 and a decline of 11 percent since the survey in March 2014.

year’s crop.

There were 7.74 billion bushels of corn in the United States on March 1, the USDA said in its grain stocks report last week. This was up 11 percent from one year ago. U.S. corn farmers were stor­ ing 4.38 billion on farm, which was up 13 percent from last year.

There were 3.36 billion bushels stored off farm, up 7 percent from last year, the report showed.

There were 1.47 billion bush­ els of corn in Iowa on March 1,

STORY ON PAGE 3

Prairie potholes in EPA’s sights for WOTUS? William Pereira, manager of the Navirai farm in Minas Gerais state, explains the operation to Iowa Farm Bureau members participating in a livestock market study tour of Brazil. Pictured, from left, are Erin Bradford, Mike Kleitsch, Paul Beckman, Will Frazee, Pereira and Ross Payne. Tour guide Julio Tremeschin is in the center of the group. PHOTO/TOM BLOCK

The agency is signaling that it may target the prairie pothole region, which includes much of Iowa, for added regulation.

STORY ON PAGE 4

Corruption, infrastructure limit Brazil’s livestock growth

Using ag for economic development base

BY TOM BLOCK

EPA prepares new glyphosate rules

B

razil’s farmers are ad­­opting a high rate of technology in crop and livestock produc­ tion, but corruption and subpar transportation infrastructure are limiting the potential of the coun­

try’s agriculture sector.

Those are some of the findings by a 22-person Iowa Farm Bureau market study tour of livestock production and agriculture in the central Brazilian states of Mato Grosso do Sul, Minas Gerais and Sao Paulo.

“Their biggest challenges are

logistics, corruption and quality,” said Allen Burt, a Marshall County crop and hog farmer. “Those three things will keep them from being more competitive in the global market.”

Infrastructure is one of the BRAZIL PAGE 2

Iowa hopes to use the state’s ability to grow crops and livestock as a base value-added growth.

STORY ON PAGE 5

Agency wants to require moni­ toring and reporting on use of the popular herbicide.

STORY ON PAGE 7

COPYRIGHT 2015

PROJECTS RECEIVE GRANTS TO BOOST AG LITERACY

STUDENTS RAISE FUNDS FOR ADDITIONAL TEACHER

The Iowa Agriculture Literacy Foundation (IALF) recently awarded funding to 22 local proj­ ects throughout Iowa to help develop an understand­ ing of agriculture. The grants are designed to help communities initiate new projects or expand existing projects that promote agriculture literacy.

Planned projects include garden curriculum, fourth grade agriculture days, FarmChat programs, local food education and learning about Iowa commodities.

Most of the programs rely on several partner organizations cooperating to deliver the educational program. “Our focus is to provide accurate facts and information on Iowa agriculture to the next generation and educate them on where their food comes from,” said grant recipient Brenda Adams of North Central Iowa Agriculture in the Classroom.

FFA students at Sibley-Ocheyedan High School have succeeded in their campaign to raise money for an additional agriculture instructor. The chapter crossed the $380,000 line last month.

The campaign, featured in the March 4 edition of the Spokesman, began because the school’s FFA leaders wanted to see their highly successful agricul­ ture education program continue to grow, but were concerned a growing enrollment was taking a toll on second-year instructor Brian Gottlob. Around 150 high school students — more than one-half of the student body — are enrolled in agriculture courses, and the FFA chapter is 123 members strong. The campaign was designed to fund the position for five years, and Alex Emerson, origi­ nally from Osage, has been hired as the school’s additional ag instructor.

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APRIL 8, 2015 IOWA FARM BUREAU SPOKESMAN

BRAZIL

member who works in the field of cattle genetics. “In vitro fertilization is becoming commonplace.

One of the places we visited said it has become so cost effective that he might eliminate artificial insemination and go straight for that.”

Brazil’s cattlemen are also up­­ grading feeding programs with im­­ proved forages as well as increasing grain rations. The number of Brazilian cattle finished in feedlots is increasing 6 to 7 percent per year.

FROM PAGE 1

United States’ key advantages over Brazil, which has much lower land and labor costs than the U.S. Brazil’s soybeans, beef and corn are moved primarily by truck along many two-lane highways that are highly variable in terms of quality.

For example, cattle coming to a feedlot owned by meat packer JBS near Guaiçara in Sao Paolo state are on trucks for as long as 55 hours and can lose 100 pounds when making the trip from southern Brazil, according to the feedlot manager.

Also, it costs a farmer in Brazil’s Mato Grosso state $2.40 per bushel to move his soybeans to the nearest port, said Dave Miller, Iowa Farm Bureau research and commodities director.

That’s four times more than it costs to move grain from Keokuk to New Orleans on a Mississippi River barge and more than twice as much as it costs to ship grain from Manson to the West Coast by rail, Miller said.

Regional rivalries The nature of Brazil’s political system, which has some 30 different political parties, makes the idea of building an interstate highway nearly impossible, he explained. A long-proposed highway from Mato Grosso, Brazil’s major soybean-producing state, to the Amazon River has been stalled.

“Some of those parties have very unique geographical considerations. They’re not going to spend government money to help farmers from Mato Grosso,” said Miller, who led the two-week Farm Bureau study tour covering more than 1,000 miles. “You can get regional projects done, but they have a lot of problems building an interstate system.”

Brazil’s agriculture sector recognizes the need for transportation improvements and is looking for foreign investors to help build up its infrastructure, said Otavio Cancado, international affairs man­­ager for Monsanto Brazil.

However, he said, turmoil in Brazil’s government and private

LAND FROM PAGE 1

percent decline from the March 2014 survey, followed by westcentral Iowa with a 13.7 percent decline. Crop land prices in southeast Iowa, where farmers harvested some of their best crops in memory in 2014, declined only 2.5 percent.

While the price of cropland declined, the value of pasture and

Boosting productivity

Ross Payne, left, Mary Van Zante and Lyle Tritz, participants in the Iowa Farm Bureau Federation market study trip to Brazil, check out cattle at the Navirai farm. The Farm Bureau study tour was organized to study Brazil’s growing livestock sector. PHOTO/TOM BLOCK

sectors makes that difficult. Just last week, three construction companies asked for bankruptcy protection due to financial troubles.

“We are in a very unique time in Brazil when all companies involved in building infrastructure are involved in corruption,” said Cancado.

Brazil’s secondary roads are in even worse shape than its primary road system. The unpaved roads leading to most farmsteads are simple dirt paths marked by deep ruts and mudholes that are nearly impassable after a rain.

“Our conventional livestock trailers and grain trailers that we’re used to seeing in the United States, there’s no way they would work on those roads,” Burt said.

Hindering expansion It’s hard to imagine how productive Brazil’s livestock sector could be if not for the transportation challenges, Iowa Farm Bureau members said. The vast country — which is nearly as large as the United States — already ranks among the world’s leading exporters of sugar, soybeans, beef, chicken and pork, among other commodities.

Progressive Brazilian cattle timber land rose slightly in the most recent survey.

With land prices lower, realtors are seeing a reluctance to sell, and the largest amount of land was in estates, said Hansen of Hertz Real Estate Services in Nevada.

“For the most part, there is just not very much land on the market now,” he said.

Farmers remain the dominant buyers of farmland, comprising an estimated 77 percent of the total, the realtors’ survey showed.

Iowa farmland prices Average price for tillable acres, as of March 1 Price per acre

Change

2009 ............................ $4,231

- 1%

2010............................. $4,268

+ 1%

2011.............................. $5,707 +34% 2012............................. $7,132 +25% 2013............................. $8,690 +22% 2014............................. $8,286

- 5%

2015............................. $7,372 -11% Source: Iowa Chapter 2, Relators Land Institute

ranchers are using the latest technologies to make rapid improvements in genetics and carcass weights for the popular Nelore breed, which is favored in the region for its heat tolerance and parasite resistance.

“They’re way ahead of us as far as that goes,” said Erin Bradford, a Guthrie County Farm Bureau

ACREAGE FROM PAGE 1

the USDA report said. This was up from 1.2 billion bushels last year. Of the total, 910 million were stored on the farm, up 200 million bushels from last year. The report said 563 million bushels were stored off farm.

There were 1.33 billion bushels of soybeans in storage in the United States, the USDA report said. This was up 34 percent from last year. Of the total, 609 million bushels were stored on the farm, up 60 percent from last year. The report said 725 million bushels were being stored off the farm, up 18 percent from last year.

In Iowa, there were 265.8 million bushels of soybeans in storage. The report said 110 million bushels of soybeans were being stored on Iowa farms, up from 74 million last year. There were 155.8 million bushels of soybeans being stored off the farm, the report said.

This was up from 134.2 million bushels last year.

Risky to wait ISU’s Hart said some farmers are waiting for a late spring weather-related price rally to move oldcrop corn and soybeans, but that’s risky, he said.

“Farmers have been able to get out in the fields. We’re seeing a lot of anhydrous moving.

We’re seeing a lot of field prep being done. And so at least early indications are we’ll be able to plant fairly quickly here, and that doesn’t bode well for a weather rally,” Hart said.

Post-report price swings provide an opportunity for farmers to price their old-crop soybeans, he said. “The risk is waiting for a weather rally that may not occur.”

Hart said soybean farmers could use the post-report price swing to sell old-crop soybeans.

There’s still time to sell old-crop corn, he said.

Now, the best indication of corn prices will be planting progress reports for new-crop corn and soybeans, Hart said.

He said export demand is the

“Where they’ve got potential to grow, ultimately, is upgrading their beef animal and getting more productivity per cow,” said Miller.

Brazil is also experiencing growth in its pork sector, which is an integrated system where meat processors own most of the country’s pigs.

The top 25 percent of the country’s hog farms are weaning 31 pigs per sow annually, said Marila Campos, foreign markets coordinator for the Brazilian Association of Animal Protein. U.S. hog farmers, by comparison, average 25 weaned pigs per sow.

A key difference is that Brazil’s hog farmers aren’t dealing with PRRS (porcine respiratory reproductive syndrome) or PEDV (porcine epidemic diarrhea virus), wildcard and will help determine prices for the corn and soybeans planted this spring.

“If we think that export de­­ mand can continue to build up, that gives us some optimism that we can see some higher prices as we move into the winter and next spring,” he said.

He said the strength of the U.S. dollar and tumbling oil prices are not helping the export picture.

noted Trent Thiele, a Howard County hog farmer. “That’s one area where they’re ahead of us,” he said. “In everything else, they’re about 30 years behind.”

In poultry, Brazil’s exports have jumped 66 percent since 2004, reaching 4.09 metric tons.

The South American country took over the title of the world’s top chicken exporter from the United States four years ago.

The potential for Brazil to continue growing its livestock sector will challenge U.S. farmers to improve their farms to keep pace, said Jason Brockshus, an Osceola County dairy farmer.

“They play a big role in feeding this growing world population, too,” he said. “We can’t just sit back and think we’re always going to be one of the leaders. It’s not that you have to be first or second, but you need to be competitive where you’re at and be willing to change.”

Correction The caption on the photo from Brazil in the April 1 Spokesman misidentified the people in the photo. The correct identification is, from left, John Paul, JBS feedlot manager, and Iowa Farm Bureau members Allen Burt, Nathan Crane, Erin Bradford and Robert Shearer.

Exports have been relatively good despite those problems, but have slowed down recently, Hart said.

He said he’ll continue to watch export demand.

“That’s something I’m keying in on over the next two months,” he said. “Will some countries move in and make some purchases? If they do, it shows there’s demand out there and it’s ready to build.”

Legislature marks second funnel Last week marked the end of the second funnel, which means in order to remain alive through the end of the session, bills must have passed one chamber and must be moved out of committee in the other chamber. The exceptions are Ways and Means, Appropriations and Government Oversight bills.

Appropriations related to water quality and soil conservation are unaffected by the funnel deadline. Until budget targets are determined in each chamber, the respective budget subcommittees will likely not meet. Additionally, the Legislature has yet to address the pending sunset of the mental health funding formula, where Farm Bureau will work to ensure that property taxpayers’ contributions to the system remain limited and controlled.

A bill, Senate File 227, prohibits schools from beginning their school calendar any sooner than Aug. 23, passed the legislature and was sent to Gov. Terry Branstad.

The bill also eliminates the ability of a school district to obtain waivers allowing an earlier start date.

House File 515, which would expand the current District Man­ agement Levy to include the costs of mediation and arbitration, in­­ cluding legal fees, was passed by the Senate Education Committee and is now eligible for debate on the Senate floor.

Farm Bureau believes these costs should be funded through the current school finance funding formula, as opposed to being funded solely by property taxes.

House File 522, which increases

ISSUE UPDATE the maximum length for a custom farming contract from 12 months to 24 months, passed the House Ways and Means Com­mittee and is now eligible for debate on the House floor.

PPEL spending House File 384, which would expand the current Physical Plant and Equipment Levy (PPEL) to include the repair of equipment, technology, transportation equipment and equipment for re­­ creational purposes, passed a subcommittee and now goes to the full House Ways and Means Committee. Farm Bureau believes these costs should be funded through the current school finance funding formula, as opposed to being funded solely by property taxes.

Also going to full Ways and Means Committee is House Study Bill 225, a Tax Increment Financing (TIF) reform bill. It would establish non-renewable sunsets for TIF districts, impose limitations on how much future taxable value can be captured by a TIF district and prohibit TIF revenues from being used for public buildings. Farm Bureau policy supports both revenue limitations and non-renewable sunsets for new and existing TIF districts.

IOWA FARM BUREAU SPOKESMAN APRIL 8, 2015

Editorial

3

Disappointment lies with DM Water Works’ decision to litigate This article ran recently in the Des Moines Register in response to an editorial about the lawsuit filed by the Des Moines Water Works.

BY CRAIG HILL

T

he recent Register ed­it­­orial, “Not enough was done to avoid water lawsuit,” was right to point out the disappointment and missed opportunity, but the disappointment lies with the “hair-trigger” Des Moines Water Works’ (DMWW) litigious approach.

It’s also disappointing that the Register missed an op­­ portunity to re­­ HILL port the progress that has been made, even in DMWW’s own watershed.

DMWW’s own data show a downward trend of nitrates in the Raccoon River, going as far back as at least 2006. Progress continues today, with 16 more targeted demonstration projects.

These collaborative efforts are happening elsewhere because 95 organizations are behind them, including Farm Bureau, with farmers and local partners leveraging more than $11.8 million of their funds with more than $7.5 million in state funding.

Progress comes when farmers roll up their sleeves and seek solutions. They’ve been doing this for years.

Cover crop planting in Iowa has surged as farmers work to reduce nutrient loss and improve water quality. FILE PHOTO

They voluntarily spend tens of millions of dollars out of their own pockets each year to do right by the land and take great pride in seeing results. Results are imperative to the long-term success of their farm.

Not one-size-fits-all But one type of conservation practice won’t work on every farm, for every terrain, for every crop they grow. Finding the best fit for their farm doesn’t happen in two months or two years.

When it comes to changes in water quality, scientists say it can take decades.

I t ’s u n d e r s t a n d a b l e t h a t DMWW’s aging infrastructure, in­­ cluding its 23-year-old nitrate removal system, is in need of repair. In addition to being dated, it’s also servicing more communities than it was designed to handle. It needs an upgrade.

Iowa farmers understand the need to upgrade and innovate; conservation practices that worked 20 years ago may not be as effective, considering today’s changing weather patterns or evolving consumer demands. That’s why

farmers have spent more than $11 million out of their own pockets in recent years to upgrade their conservation practices where necessary, far more than the half million dollars DMWW officials say they’ve spent this winter to remove nitrates, which, when spread among DMWW’s halfmillion rate-payers, amounts to a great bargain at just over $1 per household.

Consumers deserve a comprehensive approach to water quality that includes getting all players at the table to find longterm solutions. The Iowa Nutrient Reduction Strategy does that, and stands as a national model by farmers, environmentalists and ad­­ministrators.

Backed by the EPA E PA A d m i n i s t r a t o r G i n a McCarthy’s praise of the strategy and the numerous conservation efforts being done in other urban watersheds are worthy of coverage, especially considering that the educational tool was made available to farmers just two short years ago.

The collaborative work be­­

tween urban districts and farmers being done in other watersheds such as Rathbun Lake, Cedar Rap­ ids and Dubuque could easily be done in Des Moines.

Projects sponsored by Agri­ culture’s Clean Water Alli­ance, along with conservation districts in Buena Vista, Calhoun and Sac counties, just received grants in December totaling nearly $856,000 to do various watershed projects, and more than $1 million in matching funds were committed to leverage the state’s grant.

Nearly 20 partners came to­­ gether to make it happen, from farm organizations and higher education to private organizations and government. Unfortunately, Register readers aren’t learning about those efforts here.

The Register’s recent editorial also ignores the true outcomes of a regulatory or permit-driven mandate, as evidenced by DMWW’s recent application to renew its National Pollutant Discharge i nation System (NPDES) Elim­ per­­ mit. This permit allows the city utility to continue its desired practice of disposing the nitrates it removes back into the Raccoon River. Again, that approach is no solution to water quality.

Water quality improvement in Iowa takes time. It takes work. It takes commitment and collaboration, especially if our end goal is to continue to provide safe drinking water and safe, healthy food choices.

All Iowans are stakeholders in this long-term process, and they deserve better. For starters, they deserve the whole story.

Hill, a Milo crop and livestock farmer, is president of the Iowa Farm Bureau Federation.

Lawmaker: Let consumers see impact of food laws

BY DIRCK STEIMEL Minnesota’s Rep. Collin Pet­ erson didn’t mince words recently in his remarks about Vermont’s law to force the labeling of foods made with biotech crops or California’s law to ban the sale of eggs that were not raised under that state’s restrictive animal rights rules.

It is time to let consumers in those states know what happens

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

when laws that have no scientific backing are approved by voters and e n­­a c t e d b y states, Peterson told a group of Farm Bureau members from PETERSON Iowa and others states.

First Peterson, who is the ranking member of the House

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Agriculture Committee, went after Vermont’s law to force labels on foods made with biotech or GMO crops. That law is still working its way through the courts.

“The reality is, you know, I’ve told some of these big companies that if Vermont is successful with this appeal to their lawsuit and they are allowed to go ahead with their labeling law, I wish that these big companies would just not sell to Vermont,” Peterson told Mike Adams of AgriTalk.

Iowa 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 - Will Frazee, Emerson.

“Then let them understand what the effect of what they’re doing is.”

The Minnesotan then went after California and its restrictive egg law.

“The same thing in California,” he said. “I don’t want them to fix the egg problem. If those people created that problem, and I hope they run out of eggs, and I hope eggs go to 20 bucks a dozen, you know, so people figure out what’s going on.”

A lot of folks use fertilizer, why only target ag?

BY DIRCK STEIMEL Like many of my neighbors, I fertilized my lawn last weekend.

It’s something I do every spring as the grass starts to green. I barely think twice about it. Mostly, I just want to get it over with so I can watch the basketball games on television.

But I paid more attention this year thanks to the lawsuit that Des Moines Water Works (DMWW) filed last month against drainage districts in three northwest Iowa counties.

The lawsuit seeks to force the drainage districts, which are in Buena Vista, Calhoun and Sac counties, to obtain permits for alleged discharges. DMWW CEO Bill Stowe has also sharply criticized the voluntary Iowa Nutrient Reduction Strategy, which provides farmer information on opt­­ ions to reduce nutrient loss.

While they are pointing an accusatory finger at agriculture, I haven’t heard DMWW officials say much at all about homeowners, golf courses and others in the Raccoon River watershed who rely on nitrogen fertilizers to keep things green.

When I treat my lawn, I work to keep the granules off the driveway and the street, because I know that nutrients there could easily find their way to the river. Just like farmers, I want to protect the watershed.

Not much precision But, I confess. I don’t use anything close to the precision tools that Iowa farmers now employ to make sure crops absorb nutrients and don’t get into water.

I didn’t do a soil test to determine how much fertilizer my lawn really needed. I didn’t add a nitrogen stabilizer to the fertilizer to make sure it stayed put until the plants could utilize it. And I certainly wasn’t using a GPS guidance system, the high-tech system that farmers utilize so they can program their application equipment to shut off to avoid streams and other sensitive areas.

Nope, I just poured the fertilizer into my spreader and took off.

And I suspect most homeowners who live in the Raccoon River watershed, as well as lawn services, golf courses and others in our state’s urban areas, did exactly the same thing.

We all live in a watershed and are responsible for protecting rivers, lakes and streams. It seems curious to me that DMWW seems to target its criticism only at agriculture, when Iowa farmers are really the ones stepping up and leading the way to protect water.

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APRIL 8, 2015

IOWA FARM BUREAU SPOKESMAN

EPA may be targeting WOTUS rules directly at Iowa The Environmental Protection Agency (EPA) could be telegraphing its regulatory plan for its Waters of the United States (WOTUS) proposal, and much of Iowa could be right in its bull’seye, according to an analysis by the American Farm Bureau Fed­ eration (AFBF).

The EPA appears ready to make the “prairie potholes� a categorical water of the United States, Farm Bureau says. The

potholes are isolated intrastate wetlands that are mostly found in the Upper Midwest, including large swaths of Iowa.

If the EPA does make that designation, “it would subject owners of prairie potholes to an unnecessary, punishing and patently duplicative blanket of bureaucracy,� said Bob Stallman, AFBF president.

The prairie potholes already benefit from a dual layer of pro-

tection, AFBF notes. They are regulated under the “swampbuster� provision of the farm bill and conservation incentives programs.

EPA wants control Despite the effectiveness of both of those programs, the EPA wants its control too, Stallman said. “EPA’s regulations would swamp those existing USDA rules with the added threats of jail time

Getting a start on the planting season

Two types of horsepower were on display last week in Iowa as farmers around the state prepared for the 2015 planting season. Above: An Amish farmer drives his team near Hazelton in Buchanan County. Below: Don Mc­ Kibben uses modern horsepower to apply fertilizer in Marshall County. PHOTOS/GARY FANDEL

and monetary penalties of $37,500 a day, per violation.�

During a recent speech to the National Farmers Union, EPA Administrator Gina McCarthy admitted that the EPA is “thinking through ways to be more specific about how we protect some of our nation’s regional treasures rather than what we do now, which is for the Army Corps to go through a long, costly, inconsistent process to decide whether waters are protected one by one.�

What McCarthy is referencing is an “ecoregion� approach pro­­ posed as an alternative basis of establishing jurisdiction in the proposed WOTUS rule, Stallman said. If EPA embraces this strategy, large swaths of farmland throughout the prairie pothole region would likely be categorized under federal jurisdiction, a major change from current law, he said.

The ecoregion approach in the proposed rule includes almost the entire state of Iowa as a water of the U.S., excluding small portions of northeast and southern Iowa. In public comments filed last fall, the Iowa Farm Bureau opposed such an approach.

To regulate “isolated� areas like prairie potholes, federal regulators are proposing to determine that “other waters� located in an ecoregion, could be lumped together for purposes of regulatory jurisdiction. According to the proposed rule, “aggregating those ‘other waters’� would result in an automatic determination of a “significant nexus� for all waters in the ecoregion, making them jurisdictional.

Protection in place Farmers care deeply about the quality of our nation’s water resources, including prairie potholes, Stallman said. “They are motivated by their strong ethic of conservation stewardship. They take great strides to farm in harmony with those resources, and they strive for con-

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tinuous improvement. Our nat­ ion’s track record of agricultural wetlands conservation proves that point,� he said. “ Plus, it is important to repeat that the swampbuster provision of the farm bill already stands sentinel over prairie potholes — and has for nearly three decades.�

Regardless, the mission of regulators is to regulate, Stallman said. “We believe that those ‘bright lines’ of regulatory authority that Administrator McCarthy wants to draw refer directly to the isolated, intrastate prairie potholes,�

Stallman said.

So while the EPA continues its “charm offensive� on WOTUS continues, Stallman said Farm Bureau is urging thoughtful and thorough analysis of the messages used by the agency and the fine print contained in the underlying WOTUS proposal. “As has been demonstrated over the past year, farmers, ranchers and other landowners see through the WOTUS proposal,� Stallman said. “They know federal water regulations are complex, inflexible and carry extreme liability.

They know the WOTUS proposal would rope in even isolated, nonjurisdictional waters like the prairie potholes.

Story Co. firm is Renew Rural Iowa award winner Story County’s Absolute Con­ crete was recently named the Iowa Farm Bureau’s Renew Rural Iowa Entrepreneur Award winner for April.

Like most successful start-up businesses, Absolute Concrete’s co-founders Sonny Hall and Kraig Kriegel identified an unfilled op­­ portunity in an industry and launched their business to fill that void. Less than two decades later, the former two-man company now employs 160, and their company’s concrete work can be found at locations ranging from the Iowa Speedway to the Boone Airport to Bass Pro Shops in Altoona and even the steps of the Iowa Capitol.

Hall identified the recent passage of road infrastructure funding in the Iowa Legislature as a positive step forward for road safety and also an opportunity to provide great career opportunities to central Iowans. “It’s a great thing for the state of Iowa; we are looking to add 35 to 40 jobs just because of it,� Hall said.

Renew Rural Iowa (RRI) is an Iowa Farm Bureau initiative supporting new and existing businesses through education, mentoring and financial resources. The next Renew Rural Iowa Business Success Seminar, “The Journey to Your Vision,� takes place April 16, at the Towncraft Building in Perry.

For more information, go to www. renewruraliowa.com.

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6 APRIL 8, 2015 IOWA FARM BUREAU SPOKESMAN

Beef, pork exports post a rebound in February

W

hile affected by the backlog of shipments in the West Coast ports, February exports of U.S. beef, pork and lamb bounced back to some degree from the totals posted in January, according to data released by the U.S. Department of Agriculture (USDA) and compiled by the U.S. Meat Export Federation (USMEF) last week.

“We didn’t see much relief from the shipping backlog until March, and container traffic in some ports still has not returned to normal,” said USMEF President and CEO Philip Seng. “However, the new labor contract agreement definitely sent positive signals to our Asian buyers and allowed the U.S. meat industry to begin the process of putting this crisis behind us.”

Beef’s February rebound February beef exports totaled 82,991 metric tons, down 3 percent year-over-year but a 4 percent improvement over January, the USDA data showed. Export value of $535.3 million was up 12 percent from a year ago and 6 percent higher than in January. JanuaryFebruary volume was 162,890 metric tons, down 11 percent from the first two months of 2014, while value was 4 percent above last

year’s pace at $1.04 billion.

Beef exports to Japan rebounded significantly in February, up 11 percent from a year ago in volume (15,933 metric tons) and 23 percent in value ($112.6 million). For the two-month period, exports to Japan were still down 1 percent in volume (29,743 metric tons) from a year ago but increased 11 percent in value ($204.1 million).

Pork sales higher February pork exports were 173,771 metric tons, down 5 percent year-over-year but 8 percent higher than in January, the USDA data showed. Export value was $470.7 million — down 7 percent from a year ago but 3 percent higher than in January. Cumulative 2015 totals were 334,936 metric tons valued at $926 million, down 10 percent in volume and 11 percent in value from JanuaryFebruary 2014.

February export volume to Korea totaled 22,615 metric tons — up 79 percent from a year ago and the largest monthly total in nearly four years — while export value nearly doubled to $72.1 million.

For January-February, exports to Korea increased 58 percent in volume (37,877 metric tons) and 77 percent in value ($123.5 million).

Taiwan was the only other bright spot in Asia for U.S. pork, as February exports increased 149 percent in volume (1,763 metric tons) and 131 percent in value ($3.7 million) from a year ago. Through February, exports to Taiwan were up 86 percent in volume (2,770 metric tons) and 59 percent in value ($5.6 million) when compared to last year’s low levels, the USDA said.

identify mastitis in dairy cows earlier and more cost effectively than existing tests, Bovine Veterinarian reported. The test detects subclinical mastitis in dairy cows by screening a sample of a cow’s milk for specific enzymes. Mastitis is the most common disease in U.S. dairy cattle and costs the U.S. dairy industry more than $2 billion annually in losses.

New pork plant coming Daily’s Premium Meats last week announced plans to build a new pork processing plant in St. Joseph, Mo., Meatingplace reported. Construction is expected to begin this summer and operations to begin May 2016. The $41.5 million plant will specialize in sliced naturally hardwood-smoked bacon

Tool detects mastitis Researchers at Kansas State University have created a test to

Weekly Average Price Comparison Sheet Price comparisons: Week ending: 04/03/2015 03/06/2015 04/04/2014 5,674 4,025 3,439 Cattle - National 5 Area Confirmed Sales 5 Area 65-80% Choice Steers: Wtd Avg. NA NA $148.00 Average Weights (Estimate) Cattle 1352 1360 1324 Boxed Beef Choice 600-750 (5 day avg.) $255.57 $248.48 $228.74 Boxed Beef Select 600-750 (5 day avg.) $249.29 $244.39 $217.37 Five Day Average Hide and Offal Value $14.00 $14.52 $16.09 Cattle - Interior Iowa – Minnesota Supply: 3,583 2,277 2,715 Average Price Choice Steer: Live Basis $166.00 NA $152.45 Average Price Choice Steer: Dressed Basis $265.00 NA $238.00 Feeder Steers at River Markets (Neb. Feedlots) #1 Muscle Thickness 500-600# $295.89 $278.39 $223.82 #1 Muscle Thickness 700-800# $238.95 $216.32 $174.06 Hogs -- Interior Iowa – Minnesota ISM Friday Weighted Average Carcass Price $56.39 $64.00 $124.90 Average Weights (Estimate) Hogs 283.4 284.2 285.0 Sows 1-3 300# and up: Average Price $36.97 $31.77 $91.23 Pork Loins 1/4” trimmed 13 - 19 pound $100.44 $97.68 NA 51-52% 200 pound Pork Carcass (5 day avg.) $64.22 $68.39 $130.49 Feeder Pigs: National Direct Delivered Feeder Pigs 10 Pounds Basis - Wtd Avg. $32.22 $43.74 $91.40 Feeder Pigs 40 Pounds Basis -- Wtd Avg. $64.65 $71.63 $139.14 Sheep -- National Slaughter Lambs Negotiated Sales 5,900 4,800 NA Choice & Prime Wooled and Shorn 130 -150 lbs $138.00 NA NA Iowa Large Eggs (cents per dozen) $1.01 $1.24 $1.45 Young Hen Turkeys: 8 -16# -- Eastern (cents/lb) 102.74 102.50 101.50 *Iowa Ethanol Prices $/gal $1.46 $1.38 $3.05 Futures: Corn NA $3.86 $4.92 State Average Cash Corn Price NA $3.64 $4.74 Basis NA -$0.22 -$0.28 Futures: Soybean NA $9.85 $14.77 State Average Cash Soybean Price NA $9.39 $14.30 Basis: NA -$0.46 -$0.44 Slaughter Under Federal Inspection Estimates Estimates Actuals Hogs: 2,134,000 2,118,000 1,992,000 Cattle: 518,000 534,000 576,000 Sheep: 52,000 39,000 43,000 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.***Confidentiality of data prohibits publication of this report under Livestock Mandatory Reporting. The report will be published when and if enough data is aggregated to meet the 3/70/20 guideline.***Source: USDA Livestock and Grain Market News

Dairy sales rebound U.S. dairy exports remain near two-year lows, but shipments rebounded a bit in February compared with the prior month, the U.S. Dairy Export Council reported last week.

Exporters shipped 137,576 tons of milk powders, cheese, butterfat, whey and lactose in February, down 14 percent from a year ago, but up 21 percent from January on a daily-average basis. Total overseas sales were valued at $434 million, down 26 percent from last year, but up 20 percent from January (daily average).

CME Class III Milk Futures

Avian flu spreads Highly pathogenic H5N2 avian influenza (HPAI) was confirmed in a commercial turkey flock in southwest Minnesota last week, the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service said. This was the fourth confirmation in a commercial flock in Minnesota. HPAI was also confirmed in a commercial turkey flock in South Dakota and in a backyard poultry flock in central Montana.

and employ about 200 people. It’s owned by Seaboard Foods and Triumph Foods.

Closing prices April. 3, 2015

Contract

Settle Last Week

Contract

Settle Last Week

April 2015 May 2015 June 2015 July 2015 Spot Prices Block Cheese Barrel Cheese Butter NFDM Grade A

$15.59 $15.57 $15.56 $16.20

August 2015 September 2015 October 2015 November 2015

$16.73 $17.09 $17.22 $17.23

Milk Prices Apr. Class III Apr. Class IV

$15.59 $13.87

$15.50 $15.30 $15.45 $15.94

$1.5800 $1.5950 $1.7400 $0.9775

$16.52 $16.79 $16.96 $17.02

Iowa Hay Auctions Dyersville, April 1

Hay, large squares, supreme, $295-297.50; good, $135-195; fair, $75-120; utility, $6080; large rounds, good, $80-130; fair, $6075; utility, $17.50-57.50.

New seeding, large rounds, good, $82.50.

Oat hay, large rounds, good, $57.50.

Prairie grass, large rounds, good, $60-85.

Mixed, large squares, good, $135-160; large rounds, good, $80-110.

Grass, large rounds, fair, $40-75.

Corn stalks, large rounds, good, $25-35.

Ft. Atkinson, April 1

Hay, small squares, 1st crop, $60-200; 2nd crop, $215-310; 3rd crop, $130-285; 4th crop, $140-285; large squares, 1st crop, $80-140; 2nd crop, $90-155; 3rd crop, $100-185; 4th crop, $115-138; large rounds, 1st crop, $45-130; 2nd crop, $75150; 3rd crop, $80-270.

Grass: small squares, $130-145; large rounds, $75-120.

Corn stalks: large rounds, $45-70.

Perry**, March 28

Alfalfa, small squares, premium, $6.50-7; good, $4; large squares, premium, $60;

good, $50; large rounds, premium, $80; good, $65.

Grass, small squares, premium, $4.50; good, $3.50; fair, $2; large rounds, premium, $55; good, $45; large squares, good, $50; fair, $40.

Straw, large squares, $35; small squares, $4.50.

Corn stalks, large rounds, $30.

Rock Valley, April 2

Alfalfa, large squares, good, $117.50-120; fair, $97.50-105; large rounds, premium, $135-155; good, $115-130; fair, $90-105.

Grass, small squares, premium, $210-215; large squares, good, $120; large rounds, premium, $125-130; good, $95-120; fair, $82.50-90.

Mixed hay: large rounds, good, $90-115; large squares, good, $95-100.

Straw, small squares, $3.75.

Corn stalks: large rounds, $30-35.

Yoder**/Frytown, April 1

Alfalfa, large rounds, $15-62.50; large squares, $40-55; small squares, $4.

Grass, large rounds, $15-47.50.

**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

The USDA’s planting intentions report released March 31 indicated that U.S. farmers plan to decrease corn acres by 2 percent and increase soybean acres by 1 percent versus last year. Illustrated this week are the corn and soybean planted acres since 2000 along with the 2015 planting intentions (corn = blue square; soybeans = red circle). Early indications are that 2015 corn and soybean acreage will be the closest they have been since 2001. The number of acres plays a major role in total supply and, thus, new-crop price. All market watchers know that intentions can quickly change depending upon spring planting weather.

IOWA FARM BUREAU SPOKESMAN

And...they’re...off: 2015 growing season begins

T

he March 31 reports not only offer the first good insight into the crops to be planted, but they also kick off the beginning of the growing season for those crops. The U.S. Department of Agriculture’s release of the reports always reminds me of the trip of the starting gate at the Kentucky Derby and the announcer’s initial call. As usual, this year’s reports contained their share of surprises for soybeans and corn.

This is the first time the trade has some hard data to guide their fundamental expectations for the year ahead. Until now, everyone has been working with their best guess at what the structure would look like, including USDA analysts.

The soybean numbers may bring the biggest change in trade thinking.

Not only were the March 1 old-crop stocks slightly less than expected, but the planting intentions should have put to rest the big acreage, big ending stocks and bearish price forecasts for now.

The 84.6 million acre planting intentions were only 900,000 more than last year, and 1.3 million less than expected, as well as being well under the 3 million to 4 million increase talked about all winter. Using a trend yield, production should be near 3.75 billion bushels. That’s 200 million less than last year’s.

Meanwhile, the 1.33 billion bushel March 1 stocks implied last year’s crop may have been overestimated by 25 million to 30 million bushels.

That should guide the USDA to lower its old-crop ending stocks either side of 350 million bushels.

The smaller old-crop stocks and the smaller 2015 crop point to newcrop ending stocks closer to 400 million bushels. That’s a lot lower than the 550 million (or higher) forecast by some this winter. Unless other things change considerably, or weather is a repeat of last year, it’s difficult to justify soybeans dropping under $9 per bushel for any length of time.

Corn stocks number surprising For corn, the most surprising number might have been the 7.745 billion bushel March 1 stocks. Traders immediately assumed that should lead to a reduction in the old-crop feed/residual use for the year.

Based on the recent relationship between first half of the marketing year feed/residual use and the year’s total, that’s an appropriate expectation. But recent years have been dominated by tight supplies.

If one reverts to older, historical relationships, there’s reason not to expect a change from the USDA. For the new crop, the 89.2 million planted acres and a trend yield project a crop near 13.4 billion bushels. Using a similar demand for next year, there’s potential for the new-crop ending stocks to drop to, or through, 1.5 billion bushels. That doesn’t warrant negative price expectations at this time and these prices.

Wheat numbers were the least notable. Neither stocks nor plantings were far off expectations. Still, both imply ample supplies into next year.

But the wheat market has become a weather market with the dry conditions in much of the Great Plains. Weather is already threatening to cut the hard red winter crop. If the pattern doesn’t shift, expect price expectations to become more optimistic. And that would help pull corn prices upward.

Cash Strategist Positions CORN

2014

3-10-14 — 10% sold @ $4.82

at a glance 2015

100% unsold

3-10-14 — 15% sold @ $4.78 3-31-14 — 10% sold @ $4.95 65% unsold

BEANS

2014

2015

12-23-13 —10% sold @ $11.72 12-31-13 — 10% sold @ $11.35 2-18-14 — 10% sold @ $11.38 3-3-14

5-27-14 — 15% sold @ $12.07 85% unsold

— 10% sold @ $11.72

5-12-14 — 10% sold @ $12.23 6-2-14

— 10% sold @ $12.24

6-23-14 — 15% sold @ $12.07 25% unsold

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.

525

week’s break, technicals still look good, but it may take time to establish an uptrend. We see no reason to price new crop. Buy out-of-the-money new-crop call options to make sales against this spring/summer.

Daily Nearby Continuous Corn

500

2014 CROP: Corn prices may

2015 CROP: Even with this

with 50-day moving average

450 Cycle Lows 20-week 40-week

425 400

$3.92

375

350 325

That would start to tilt the odds toward seeing nearby futures top December’s $4.17 high, positioning it to potentially move over $4.50.

10/1/14

12/31/14

F U N DA M E N TA L S : E v e n

1600

4/2/15

7/2/15

40 30

though the March 1 stocks were larger than expected, the longterm fundamental structure still has some positive ramifications.

Maybe a bigger near-term risk to prices lies with corn exports. They are on pace, but need to improve to sustain potential to meet the USDA target.

20 10 0 -10 Basis Chicago Futures

-20 5/7/14

7/29/14

10/17/14

1/9/15

4/2/15

Daily Nearby Continuous Soybeans

1500

with 50-day moving average

1400

1200 1100 1000 900

If anything, this past week's performance in soybean futures underscored the strength of support at January's $9.55 low on nearby futures.

Even though it has been violated during the day, prices have never closed under it, leaving the trend of the 16- to 18week trading cycle sideways at worst.

Cycle Lows 16- 18-week 3-year

1300

bean prices may start to take leadership, with price direction keying off new-crop potential. At this time, we don’t see a scenario to cause them to spiral sharply lower.

We have no interest in pricing 2015 crop at these levels.

7/2/14

$4.00

$3.66

But for a more dynamic move higher to become entrenched, corn futures need to close over $4.

300 4/2/14

2014 CROP: Upside price

2015 CROP: New-crop soy-

This past week’s break could be shaping up to be a retest of the 6- to 7-week low posted mid-month. The pattern of the rally on the hourly chart off that midMarch low looked complete, opening the door for a correction. Nearby futures clearing February’s $3.92 high confirmed the trend on the 20-week cycle had turned up. Subsequent lows have confirmed that.

475

SOYBEAN STRATEGY potential may not be robust, but the USDA all but eliminated the extreme negative expectations.

South American supplies may cap rally potential unless something threatens our output. But until a large new crop is secure, prices shouldn’t have any major downside risk. We still see somewhat higher prices in the short term.

Hold off making sales.

7

Cash Strategist Hotline: 1-309-557-2274

CORN STRATEGY have taken a temporary hit after the USDA reports, but there’s still no reason to think prices have moved out of the trading range that dominated the winter. We expect better selling opportunities ahead, but the reports may have delayed the market getting to expected pricing points. We still think basis contracts are the best tool at this time, leaving pricing open into summer.

Hold the 2013 crop for expected long-term improvement.

APRIL 8, 2015

But the longer term perspective, including last fall's 3-year low, suggest somewhat higher prices are still in the picture, not lower ones.

Still, the potential to move up will come step-by-step with $10.38 and $10.87 significant hurdles for prices to overcome, especially the higher one.

800 4/2/14

7/2/14

10/1/14

$10.87 $10.38 $9.55

But if $9.50 fails, look for a retest of last fall's $9.04.

12/31/14

FU N DA M EN TA L S: Eve n

4/2/15

7/2/15

400

though supplies will still be more than adequate based on the new USDA forecasts, it’s now more difficult to build the case for overwhelmingly negative supplies.

Brazilian exports are picking up, but are still more subdued than last year. Argentine harvest is starting to accelerate. Strikes in both could slow the flow of soybeans into the world pipeline.

300 200 100 0 Basis Chicago Futures

-100 5/7/14

7/29/14

10/17/14

1/9/15

4/2/15

Iowa Corn & Soybean Basis CORN: (basis vs. May futures, 4/1/15)

SOYBEANS: (basis vs. May futures, 4/1/15)

NW $3.63 -0.19 SW $3.59 -0.23

SW

NC $3.65 -0.17 SC $3.62 -0.20

NE SE

$3.65 -0.17 $3.65 -0.17

NW

$9.44 -0.46 $9.50 -0.40

NC SC

$9.45 -0.45 $9.46 -0.44

NE $9.53 -0.37 SE $9.65 -0.25

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.

New glyphosate restrictions expected soon Federal regulators are expected to announce new restrictions on the use of glyphosate, the key ingredient in Round Up herbicide, according to news reports.

The Environmental Protection Agency (EPA) is expected to require a weed resistance management plan for glyphosate, according to Reuters news service. An EPA spokeswoman declined to give specifics of the plan, but told Reuters that its requirements will be similar to those placed on a new herbicide product, called Enlist, which was developed by Dow AgroSciences.

Requirements for Enlist include weed monitoring, farmer education and remediation plans.

The company is required to provide extensive reporting to the EPA about instances of weed resistance and to let “relevant stakeholders” know about the difficulties of controlling them via a company-established website.

Monsanto spokeswoman Charla Lord would not discuss whether the company was negotiating a plan with regulators, but said Monsanto “will continue to work with the EPA to ensure proper product stewardship as

we move through the regulatory process.”

At least 283.5 million pounds of glyphosate were used in U.S. agriculture in 2012, the most recent year for which data is available, up from 110 million pounds in 2002, according to the U.S. Geological Survey.

More than 90 percent of the soybeans and cotton grown in the United States last year, and 89 percent of the corn, was genetically modified to withstand herbicide applications, according to the U.S. Department of Agriculture.

8 APRIL 8, 2015 IOWA FARM BUREAU SPOKESMAN

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