P E R I O D I C A L S : T I M E VA L U E D
JUNE 3, 2015 |
V O L . 8 2 , N O . 4 0 | W W W. I O WA FA R M B U R E A U . C O M
EPA’s Clean Water Rule ignores farm concerns, IFBF says BY TOM BLOCK The revised Clean Water Rule issued last week by the Environmental Protection Agency (EPA) does little to clear up confusion or ease concerns about the agency’s efforts to extend its reach over farms and land uses, Iowa Farm Bureau (IFBF) President Craig Hill said last week. “The Clean Water Rule pushed out by the EPA is disappointing and will only serve to add confusion to the process for farmers,” said Hill, a Warren County
crop and livestock farmer. “There are more questions raised than answered by this rule: Which part of my farm is going to be regulated under their permitting process? Which is not? This rule and the definitions laid out in this rule suggests expansion, not contraction or clarity. What is most concerning is that it appears the EPA disregarded the more than 10,000 comments they got from Iowa farmers, and the many, many more from others around the nation.” Farm groups also questioned the EPA’s handling of the rule,
including its campaign called “ditch the myth” to counter Farm Bureau’s efforts encouraging its members to tell the agency to “ditch the rule.” There are serious concerns about whether farmers’ concerns about the rule were given full consideration, said American Farm Bureau President Bob Stallman. “Based on EPA’s aggressive advocacy campaign in support of its original proposed rule — and the agency’s numerous misstatements about the content and impact of that proposal, we find
little comfort in the agency’s assurances that our concerns have been addressed in any meaningful way,” said Stallman, a Texas cattle and rice farmer. “The process used to produce this rule was flawed. EPA’s decision to mount an aggressive advocacy campaign during the comment period has tainted what should have been an open and thoughtful deliberative process.” The final rule put forth by the EPA and the U.S. Army Corps of Engineers stops just short of 300 pages in its attempt to define the
Biosecurity measures key during avian flu response
BIOSECURITY PAGE 2
EPA PAGE 2
Ethanol supporters unhappy with RFS rule The new EPA ruling raises levels from its 2013 proposal but still falls short of statute. STORY ON PAGE 2
BY BETHANY BARATTA As response teams work to depopulate and clean up Iowa farms affected by the avian flu, biosecurity is top of mind, they said. Even after a farm tests positive for avian flu, there are biosecurity protocols in place to try to limit the spread of the disease. Neighbors and passers-by can help in those efforts by simply staying away from farms that have tested positive for avian flu. “Biosecurity is important to cut the transmission of this disease,” said Kyoung-Jin Yoon, professor in veterinary diagnostic and production animal medicine at Iowa State University (ISU). The lab at ISU conducts the initial testing to confirm if a poultry site is positive for avian influenza. The National Veterinary Services Laboratory (NVSL), also based in Ames, then determines if it’s high or low pathogenic. The lab tests 500 to 1,500 samples per week for avian flu, Yoon said. Yoon said avian flu is usually spread through contact with wild waterfowl, but it’s suspected the disease can also be moved through dust and by the wind. It’s possible that people may also serve as a vehicle in spreading the virus through their vehicles and even foot traffic after coming in contact with infected feces. “What I think is important for people to remember is that bio security is a responsibility for all of us — whether we are the poultry producer, whether workers who go onto the poultry producers’ premises, whether we’re the response personnel from the USDA or state or contractor partner, but also the public. Because you can become a vehicle for spreading the virus,” said Alan
waters protected under their jurisdiction as “waters of the United States,” or WOTUS. E PA A d m i n i s t r a t o r G i n a McCarthy maintained her stance that the rule only covers waters “that have historically been covered under the Clean Water Act.” “I think it’s going to be very clear to folks who generally don’t read rules, like the agriculture community,” McCarthy told re porters on a call announcing the rule. “We’re going to work
NRCS launches online conservation tool The Conservation Client Gateway will mean fewer trips to the NRCS office for farmers making conservation plans. STORY ON PAGE 4
After attending Dordt College in Sioux Center, California native Darin Dykstra opted to stay in Iowa to build a dairy farm that he hopes can remain in his family for generations. PHOTO/GARY FANDEL
Dykstra brings passion for dairy farming to Iowa BY BETHANY BARATTA
D
airying has been a part of Darin Dykstra’s life ever since he can remember. He was first introduced to
the industry as a young boy in California. His grandfathers on both sides of his family were dairymen. “I loved it ever since I was a little kid. I loved going out and being with calves and being out-
side, working outside,” Dykstra said. His parents started the family’s dairy farm in Ontario, Calif., in 1974. The farm grew to 3,400 DAIRY PAGE 2
Farmland values remain inflated An economist says current farm returns don’t support prices being paid for farmland. STORY ON PAGE 5
El Nino strengthens as summer begins The weather pattern should bring favorable crop-growing weather to Iowa during the summer months. STORY ON PAGE 8
COPYRIGHT 2015
USDA ANNOUNCES ETHANOL PUMP FUNDING
BIOSECURITY LAB GROUNDBREAKING IN KANSAS
The U.S. Department of Agriculture (USDA) last week announced it will invest up to $100 million in a Biofuels Infrastructure Partnership to support the infrastructure needed to make more renewable fuel options available to American consumers. Specifically, the USDA will administer competitive grants to match funding for state-led efforts to test and evaluate innovative and comprehensive approaches to market higher blends of renewable fuel, such as E15 and E85. States that are able to provide greater than a one-to-one ratio in funding will receive higher consideration. The USDA investment seeks to double the number of fuel pumps capable of supplying higher blends of renewable fuel to consumers, such as E15 and E85.
Secretary of Homeland Security Jeh Johnson and Secretary of Agriculture Tom Vilsack helped to break ground last week on the National Bio- and Agro-Defense Facility (NBAF) in Manhattan, Kan. Set to be completed in 2022, the joint facility will study foreign animals’ effects on agriculture and emerging diseases that are transferred to humans. It will become the primary facility for such research, replacing the Plum Island Animal Disease Center in New York. “The NBAF laboratory will provide the nation with cutting-edge, stateof-the-art lab capabilities and help protect our food supply and the nation’s public health,” Johnson said. “NBAF addresses a serious vulnerability. The economic impact of a bio-agricultural threat — deliberate or natural — could have a substantial effect on the food supply of this nation.”
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JUNE 3, 2015 IOWA FARM BUREAU SPOKESMAN
DAIRY FROM PAGE 1
cows on four locations. In 1987, houses were built around the dairy farm. Businesses soon followed.
Coming to Iowa At the time, the family didn’t have dairy cows in Iowa. But then Darin attended college at Dordt College in Sioux Center. That’s where he met his wife, Linda, whom he married in 1992. It’s also where he made connections within Iowa’s dairy industry. “I did my senior practicum at Wells Blue Bunny, and at that time, they said they wanted big dairies to come and supply them with milk. So I kept that in the back of my head,” he said. In 2002, the Dykstras broke ground on their 3,000-cow dairy near Maurice. On Feb. 3, 2003, they milked the first cows there. The dairy reached its full capacity within the first five months of operation, Dykstra said. Heifers were trucked from California to have calves on nearby farms to be a part of the dairy. Since then, the rest of the cows have been sold from the California dairy. The land was sold to developers. Iowa is now home to Dykstra Dairy.
BIOSECURITY FROM PAGE 1
Huddleston, public information officer for the U.S. Department of Agriculture’s (USDA) avian influenza response team in Iowa. “If you happen to go to a premise unauthorized and walk around it, it can be on your shoes when you get back into your car. You could then be a vehicle of transmission. Your car can be the same thing.”
USDA response efforts Huddleston said there were 1,635 personnel from USDA’s Animal Plant Health Inspection Service (APHIS) and other re sponding agencies working at the 67 premises that were either presumed positive or confirmed positive for the avian flu in the state. The response team is a coordinated effort working to quarantine, depopulate and dispose of the 28.5 million turkeys, layers and chickens affected by avian flu in the state. He said 21 million birds had been depopulated. The response team was dispatched to the state in April, when
EPA FROM PAGE 1
with them to make sure that they understand that erosional features, which are important to them, are really not of interest to us because they don’t meet our definition of tributary and science tells us we don’t need to worry about those.” The White House also threw its support behind the rule. “The only people with reason to oppose the rule are polluters who threaten our clean water,” said Brian Deese, a senior adviser at the White House.
Vague language But the language used in the final rule leaves plenty of room for interpretation that the EPA could use to greatly expand its reach onto farms, Hill said. The final rule asserts the EPA’s control over tributaries, which are defined as any land that has a bed, bank and ordinary high water mark —
Cows at Dykstra Dairy are milked three times daily in a double-44 parallel parlor. PHOTO/GARY FANDEL
It’s different than California, said Dykstra, a Plymouth County Farm Bureau member. “In California, we had open-lot dairies,” he said. “We had dirt lots with metal shades in the corrals. Out here, of course, you can’t do that because it gets cold.” The 3,000 cows are housed in barns here and milked three times per day in a double-44 parallel parlor. The dairy’s 35 employees keep the dairy running 24 hours per day, seven days a week. Cows are milked about 22 hours per day. The other two hours are spent cleaning and flushing the systems between each round of milking,
Dykstra said. Milk is sold to Wells Blue Bunny, where it’s made into ice cream treats.
Open to visitors Dykstra Dairy has hosted several tours to help educate the public about dairying, The family will host visitors on the farm Thursday, June 25, in celebration of June Dairy Month. Complete with farm tours and activities for kids, a meal and ice cream will be served from 4 to 7 p.m. “It’s a great way for visitors to see our farm and see what we do,” Dykstra said.
the first case of avian flu was confirmed here. “When a flock tests positive for high pathogenic avian influenza, the USDA takes over the process, including cleaning and disinfecting,” said Randy Olson, executive director of the Iowa Egg Council and the Iowa Poultry Association. “Working in collaboration with the farm owner, they’re looking at a variety of solutions for disposal and working through appropriate solutions for each and every farm.” Once the disease is identified, a case manager is assigned to the site. “We are committed to having our case managers be as clear to the producers as possible,” Huddleston said. Some of the personnel on site are assigned to oversee biosecurity practices on the farm to ensure that everything leaving an infected site — trucks, people, etc. — are disinfected as they work to contain the disease. “The reason that we implement biosecurity measures once a premise has been identified or confirmed as infected is so that if there is any virus alive it does not
leave that premise,” Huddleston said. “So it minimizes the chance that it’s spreading from that premise to any neighboring premise.”
whether or not they contain water all year long or only occasionally. It also covers creeks, ponds, prairie potholes or other features the EPA and Corps say have a “significant nexus” to a navigable waterway. “That expansive definition means many roadside ditches or farm ponds could be included,” Hill said. “This new rule would also define many grass-planted waterways as regulated tributaries that would require a permit to improve or install new conservation practices. That’s troub ling at a time when Iowa farmers are expanding their conservation practices. This is not a time to discourage or confuse the good work being done on Iowa farms that protect water quality.” And while McCarthy said normal farm activities like planting, harvesting and moving livestock across streams would continue to be exempt from Clean Water Act regulation, Hill pointed out that other critical farm activities
like tillage, spraying and applying fertilizer could be called into question. Hill said the rule should be withdrawn since it only serves to confuse rather than clarify, a stance shared by Senate Agriculture Committee Chairman Pat Roberts of Kansas, who is co-sponsor of a bill calling on the EPA to start over on the WOTUS rule. “I am sorry to say, as expected, the rule is bad news for rural America,” said Roberts. “As chairman of the Agriculture Committee, I’m proud to champion agriculture. We will lead the charge in pushing back against EPA’s egregious federal overreach.” The U.S. House of Re pre sentatives has already passed a bill that would require the EPA and the U.S. Army Corps of En gineers to withdraw the rule, which will be effective 60 days after it is published in the Federal Register.
Depopulating flocks Huddleston said there are two common ways birds are depopulated, which have been approved by the American Vet Medical Association (AVMA) and also the World Organization for Animal Health (OIE). One way is through foaming. This method is common if the birds are on the floor, like in a turkey barn. The water-based foam is spread on the birds. The foam is much like what a firefighter would use to extinguish a fire in a building, Huddleston said. The other method is through carbon dioxide, he said. Sometimes there is a delayed response time, and it takes longer to depopulate a site as the crew waits for equipment and additional personnel to assist in the process. Disposal options vary from farm to farm depending on the number of birds, what’s available on site and other factors. “We select the best option ed on the farm’s individual bas
He said quality genetics are important not only to produce healthy calves, but also to continue the dairy for the next generation — his 16- and 13-year-old
sons Eli and Micah. He said he’s given them different chores around the farm to introduce them to dairying. They can mow, operate the feed wagon and haul manure. Eli is taking Spanish classes in school. Dykstra hopes that will allow him to not only better communicate with the Spanish-speaking employees on the farm, but will be useful if Eli decides to go in a different path than dairying. Dykstra uses a variety of feedstuffs to feed his cows, but corn silage makes up the bulk of the ration, unlike the citrus pulp that was a major part of the ration in California. “We need at least 2,000 acres of corn silage each year to feed our cows,” he said. That means working with neighbors to purchase silage or to rent acres to grow the feedstuff. Dykstra said he doesn’t see the dairy changing much in the next 10 years. That could change, however, if Eli and Micah decide they would like to join their parents in the dairy business. In the meantime, he says he enjoys spending time on the dairy and with his family. “We’re just trying to be good stewards of what God gives us — the land, the crops and the cows.”
circumstance. Those options can include on-site burials, composting, incineration and landfill disposal,” he said. Currently, one landfill in Sioux County and one in Mills County have agreed to accept dead birds for disposal. A third site in Cherokee County has made available its incinerator. Once the birds have been incinerated there, the ash byproduct can be used on that site as part of the landfill’s general operations, Huddleston said. Extra biosecurity measures are taken to ensure that trucks delivering the birds to the landfills aren’t spreading the disease to other farms along the way, he said. Birds are loaded into bio-bags, which are non-permeable and re sistant to puncture and leakage. The bags are then filled, sealed and disinfected. They are covered and secured with a tarp on the trucks. Before departing the farm, trucks are disinfected. Huddleston said the trucks follow routes that are approved for 24 hours by the Iowa Department of Transportation. At the landfill or incinerator site, the birds are unloaded in an area separate from where other
trash trucks and public vehicles may unload their garbage. Biobags are put in a trench at least 2 feet deep and buried within 30 minutes of arriving. Trucks that delivered the birds are then disinfected before leaving the premises. Huddleston said the landfills and incinerator sites not only agreed to accept the dead birds, but they were also screened to make sure the site’s managers had a system to deal with the leachate that may come with dead birds. It’s a way to protect the groundwater, he said. Huddleston said control of the farms will be turned back over to the owners after sites are deemed ready for repopulation. Huddleston said the response team is doing its best to help farmers get through the process as quickly as possible and the team appreciates cooperation from farmers and others as they continue their work. “We are working to get it done for them, and with them, as soon as possible so we can get them back up and running,” Huddleston said.
The farm’s employees take great care of their cows. “Happy, healthy cows are productive cows,” Dykstra said. The farm has maternity pens to keep a close eye on cows and their newborn calves. A hospital parlor is set up in a separate area of a barn where workers can tend to sick animals and milk them, keeping their milk separate from the rest of the herd. The farm also has a separate facility 6 miles from the dairy farm that raises 2,500 calves and heifers before they go into the dairy system. There, the farm focuses on genetics. Samples are pulled from calves and sent to a lab for genomic testing. The results give the Dykstras more information on the quality of calves that are produced. The results help them determine if a calf would best be used as flush animals or recipient animals for breeding. “We’re always trying to im prove the herd genetically,” Dyk stra said.
Eye on the future
Corn growers, ethanol groups critical of RFS revisions The Environmental Protection Agency (EPA) last week proposed raising Renewable Fuel Standard (RFS) requirements for 2014-2016 higher than its initial proposal nearly two years ago, but still below levels required by law, drawing criticism from the Iowa Corn Growers and ethanol trade groups. The EPA set a total renewable fuel requirement of 15.93 billion gallons for 2014, reflecting actual usage. The agency proposed a 2015 RFS volume obligation of 16.3 billion gallons, short of the 20.5 billion gallons Congress required when it wrote the law in 2007. The 2016 volume obligation is 17.4 billion gallons, well below the 22.25 billion gallons required by Congress. “While at face value the num bers might appear to be an
improvement over the proposal released back in 2013, this new rule still doesn’t meet the requirements Congress set in statute,” said Jerry Mohr, a farmer from Eldridge and president of the Iowa Corn Growers Association. “It also continues to use a flawed methodology which is almost more damaging than the RVO (renewable volume obligation) numbers themselves.” The EPA said one factor it considered in setting the standard was limitations in the volume of ethanol that can be consumed “given practical constraints on the supply of higher ethanol blends to the vehicles that can use them.” The EPA raised its proposed biodiesel volumes for 2015 to 1.7 billion gallons, up from 1.28 billion gallons. Biodiesel usage for 2016 is set at 1.8 billion gallons.
IOWA FARM BUREAU SPOKESMAN JUNE 3, 2015
Editorial
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Farmer insights can plant the seeds for smart corporate policy BY BOB STALLMAN
more challenging than jumping on the latest “all natural” bandwagon, but consumers should understand how the application of science and technology to farming allows us to grow more food with less fuel, water and land and cultivate crops that withstand drought, require little to no pesticide and benefit the soil. They need to know that banning modern farming methods means throwing away those benefits.
T
hese days it seems as much policy comes from the corporate boardroom as from Congress. Some corporate directors are hurriedly bowing to pressure not from their customers, but from vocal activists. The result is corporate policies that forbid farmers and ranchers from using tools to maximize production, protect t h e e nv i r o n ment or care for STALLMAN animals. Smart companies listen to their customers — and their suppliers. They collect all the facts before making decisions, rather than just responding to whoever is complaining the loudest. Through our corporate advocacy program, Farm Bureau is working to help companies understand the reasons why farmers and ranchers use certain production methods and how blanket prohibitions can harm farm profitability and therefore sustainability, as well as the reliability and even the safety of our food supply. We don’t expect large corporations — even the ones that make their living selling food — to be
Responsible decisions
experts in what it takes to run a farm every day. That’s our job. Farmers and ranchers are committed to providing customers what they need and want. But companies need to better understand how we keep store shelves and dinner tables full and what it takes to do so while protecting the environment and keeping animals healthy.
Explaining the issues Real corporate responsibility begins with listening to the people
on the ground. Companies need to hear from farmers and ranchers on how policies could affect our ability to grow affordable food. Sweeping gestures such as Chipotle’s recent announcement that it is eliminating all or most genetically modified ingredients from its menu are shortsighted. They fail to count the cost to consumers, farmers and the environment. Catchy but vague slogans touting “natural ingredients” and “integrity” too often mislead consumers and have nothing to
do with keeping food safe and healthful. There are companies that are going against the flow and looking beyond the trendy rhetoric. Kellogg’s is a good example. They are providing a variety of options for consumers, not insulting their intelligence with simplistic, cartoonish marketing campaigns. They are stepping up to the challenge of explaining why these issues aren’t as simple as one production method being bad and another being good. That’s a bit
Farm Bureau is reaching out and recognizing those companies for their responsible decisionmaking on agricultural practices. And we are letting companies know that we and, more importantly, the men and women who actually produce our food are a source of information for them. Farmers and ranchers make hard choices each day — not based on what is popular at the moment, but on what is good for their families, land and animals. Every food company has a responsibility to provide safe and healthful products. We bring them the information and insight they need to be responsible partners in feeding our growing population. Bob Stallman, a rice and cattle producer from Columbus, Texas, is president of the American Farm Bureau Federation.
Don’t be ‘cowed’ by book’s outlandish claims about cattle farms BY STEWART TRUELSEN Husband and wife environmentalists Denis Hayes and Gail Boyer Hayes take to bashing beef and dairy in their new book “Cowed.” Published this year, it attacks animal agriculture on multiple fronts — health and nutrition, TRUELSEN food safety and cattle production. The book also makes one of the most outlandish predictions that you’ve ever heard. According
to the authors, “If the human population grows another 50 percent, and everyone starts to eat as much beef as Americans, we will wipe out much of the rest of the animal world.” Ken Cook of the Environmental Working Group applauds this statement on the back cover by saying that the authors have mapped the destructive co-migration of earth’s two great conquering herds, humans and cows. You can believe this when you see cows grazing in New York’s Central Park or on the National Mall in Washington, D.C. Nebraska has a lot of cows, 1.88 million, according to the
latest statistics, but it also was home this spring to a half million sandhill cranes along the Platte River. The cranes stop to fatten up on corn kernels left behind in farm fields before migrating north again. Nebraska is second in the nation in the number of cattle and calves, but they don’t seem to be crowding out the cranes. The Hayeses would have you believe that all cattle operations are big, factory farms. Nebraska has 20,000 beef cow operations, the average herd size is 94 head and only 770 are larger than 1,000 head of cattle. Big is always bad to critics of agriculture, even though econo-
Spokesman Editor DIRCK STEIMEL News Coordinator TOM BLOCK Senior Features Writer TERESA BJORK Ag Commodities Writer BETHANY BARATTA Photographer/Writer GARY FANDEL
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mies of scale are accepted for most other industries. The complaints about cows in the book have all been heard before. American restaurants served 9 billion hamburgers last year, 3 percent more than a year earlier. Take that as a vote of confidence in beef. In fact, there is a lot of positive news about beef to reassure consumers. Recreational runners are among the fittest Americans, and Runner’s World magazine includes beef in its nutrition advice and recipes for runners. It cited a review of 76 existing studies published in the Annals of Internal Medicine that found no association between saturated
fat and heart disease, a departure from previous thinking. Runner’s World reminded runners that red meat contains iron, zinc and protein and is right for a healthy diet.
False findings The authors of “Cowed” connect a virulent form of E. coli bacteria with what they call factory farming, which in their view is a feedlot used to finish cattle. However, the U.S. Department of Agriculture (USDA) says the prevalence of E. coli O157:H7 is not affected by the production system. The USDA’s Food Safety and Inspection Service (FSIS) samples ground beef and, according to its data, this strain occurs at a rate of less than one quarter of 1 percent. The FSIS says it is rare for the strain to find its way into meat products, and the sale of those products is prohibited. Safe handling and proper cooking also reduce the risk of spreading E. coli or becoming infected. The authors claim they aren’t against eating beef; they just want Americans to eat less. That’s up to consumers who shouldn’t be cowed or misled by critics of America’s livestock industry. Stewart Truelsen, a food and agriculture freelance writer, is a regular contributor to the American Farm Bureau’s Focus on Agriculture series.
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IOWA FARM BUREAU SPOKESMAN
Farmers were working to get field work done in between rains last week, Kruse said May 28. He had 1.5 to 2 inches of rain for the week. “We’re going to do some spraying this afternoon,” he said. “It’s probably still too muddy in some fields.” Planting was essentially wrapped up in the area, except for a few soybean fields. “Crops have good color and good vigor,” he said.
“Everything is looking very good here,” Sprung said May 29. “The corn looks excellent.” Corn has regained some of its color after a recent cool week. Soybeans have mostly emerged. The area got about 1 inch of rain last week, which has greened up pastures. Dairy farmers in the area chopped their first hay crop. “All in all, we’re sitting pretty good here.”
“Crops are looking good here,” Darling said May 28. “All of my corn is up, and my soybeans are beginning to emerge and are starting to row.” Two inches of rain fell in the past week, which was good for hay and pasture growth. “It’s the best spring we’ve had in the last few years,” Darling said. Farmers were beginning to chop hay during windows of dry weather.
Parker said most farmers in his immediate area have finished planting, but farmers in other parts of the county still have quite a bit left to plant after two weeks of wet weather. Corn was at the four- to five-leaf stage, and soybeans were emerging. “For as wet as we are, things look amazingly good,” he said May 28. “It looks like we’re going to have a heck of a hay crop if we can get it made without rain.”
Corn and soybean crops were coming along nicely on the Burt farm last week. Soybeans were between the V1 and V2 stages. Early-planted corn was at the V4 stage. Later-planted corn was at the V2 stage. There was standing water in some fields in the area after 2.5 inches fell within a few days, but it hasn’t been a problem for Burt. “We’re waiting for corn to grow before we spray,” he said. Hay should be cut within the week.
Corn looks good, and soybeans are starting to emerge, Rickels said May 28. “There are still a couple people who have to finish up planting beans,” he said. He was planning to spray corn and cut hay before the next band of showers rolled through. He received 2 inches of soaking rain the previous weekend. “It’s amazing how tall the pastures have gotten, especially where they were fertilized,” he said
Johnson said his crop report could be summed up in two words: “It rained.” A lot of planting was accomplished during a small window two weeks ago, but there has been little progress since then, he said May 28. “Every time it’s close to being dry enough, it’s rained. It’s frustrating,” he said. “There are a few guys done planting beans, but you don’t have to go too far and some guys aren’t even done planting corn.”
“I still have one day of planting soybeans before I finish up,” LaFratte said May 28. “I don’t know when I’m going to get that one day.” Most of the corn had been planted in the area, but one-fourth of the soybean crop was left to plant. Farmers were waiting for dry weather. The area saw a little more than 2 inches of rain in a few days’ time. Haying hadn’t started in the area. LaFratte sprayed thistles in his pasture.
“Corn is starting to grab that nitrogen and get a dark green color,” Schrock said May 28. “Stands look awesome. Beans look good, too. There’s very little drowned-out areas.” Most planting in the area was finished ahead of a 2-inch rain the previous week. “Our side-dressing is done, and corn is sprayed,” Schrock said. “Now we’re waiting for beans to get closer to canopy before we spray them.”
NRCS promises time savings with new online conservation portal BY TOM BLOCK Truro farmer Tim Palmer is looking forward to spending less time in his local Natural Resources Conservation Service (NRCS) of fice following the release of an online Conservation Client Gate way (CCG) last week. Palmer, a Madison County Farm Bureau member, was among leading conservation-minded farmers who were able to test a prototype of the online portal, which gives farmers the ability to work with conservation planners, request as sistance and track payments for their conservation activities.
“I think this is a powerful tool that’s going to allow me to request assistance to tend to areas of concern without having to travel to a service center,” said Palmer. “Time is very important for tending to crops and livestock. I really feel the CCG is a perfect next step in using technology to enhance conservation on my farm.”
More field time The online tool will also free NRCS staff to spend more time working on conservation projects instead of filling out paperwork, said NRCS Chief Jason Weller. T h e C o n s e r va t i o n C l i e n t
Gateway enables farmers, ranchers and private landowners to securely: • Request NRCS technical and financial assistance. • Review and sign conservation plans and practice schedules. • Complete and sign an application for a conservation program. • Review, sign and submit contracts and appendices for conservation programs. • Document completed practic es and request certification of completed practices. • Request and track payments for conservation programs. • Store and retrieve technical
and financial files, including documents and photographs.
Convenient options The Conservation Client Gate way is voluntary, giving producers a choice between conducting business online or traveling to a U.S. Department of Agriculture (USDA) service center. “Our goal is to make it easy and convenient for farmers and ranchers to work with USDA,” said U.S. Secretary of Agriculture Tom Vilsack. “Customers can log in 24 hours a day, 7 days a week. Through Conservation Client Gate way, producers have their
conservation information at their fingertips, and they can save time and gas money by reducing the number of trips to USDA service centers.” The Conservation Client Gate way is available to individual landowners and will soon be extended to business entities, such as limited liability corporations. It is part of the agency’s ongoing Conservation Delivery Streamlining Initiative, which will feature additional cap abilities in the future. For more information about the Conservation Client Gateway, visit www.nrcs.usda.gov/clientgateway.
Excess precipitation brings challenging conditions to young corn BY BOB BARKER Well you know what they say, “Water draws water.” Corn in my territory is currently between stages V2 and V3. It’s time t o m a ke t h a t post-emergence herbicide application and start side-dressing nitrogen. But Mother N a t u r e ke e p s BARKER sending us more water. I am sure she will shut it off in August and I
CROPS TODAY will have to beg her to turn it back on at R1. Many corn plants look sickly, and I am witnessing atrazine injury to young corn plants that I haven’t seen since the days of Bladex. With the last week of May looking like an umbrella will be needed every day, herbicide applications will be a challenge.
Stalk rot concerns I have also noticed weak plants and lots of dirt in the whorl due to all of the rain. To me, this is a perfect scenario for stalk rot, such as anthracnose, to set in this fall. Anthracnose is probably the most consistently damaging stalk rot in Iowa. The fungus overwinters in corn residue and infects plants through the roots or by spores that splash onto stalks. Anthracnose of corn may ap pear as a leaf blight, stalk rot, top kill of the stalk and kernel rot. However, most damage results from the stalk rot and leaf
blight phases. The anthracnose fungus can attack corn plants at any stage of development. Lesions can be found on leaves of very young plants soon after emergence when the fungus has overwintered in the field. Leaf lesions are generally brown, oval to spindle shaped, and about one-quarter inch wide by one-half inch long. Usually, a yellow or yelloworange area surrounds the disease portion of the leaf. The actual size and shape of the leaf lesions vary greatly among different hybrids,
making diagnosis in the field very difficult. The fungus can usually be seen on the leaf surface with the aid of a hand lens. Hybrid selection is the first step in disease control. Hybrids vary widely in their level of susceptibility to anthracnose. Also, hybrids with some resistance to the leaf blight phase may not be resistant to the stalk rot phase of anthracnose. Barker is a Growmark Western Region senior field sales agronomist. His email address is bbarker@growmark.com.
IOWA FARM BUREAU SPOKESMAN JUNE 3, 2015 5
Farmland prices too high for current revenue potential BY DIRCK STEIMEL Despite the recent softening in the market for farmland in Iowa and other states, many buyers continue to overpay for land based on the revenue it can generate in today’s tougher farm economy, a leading agricultural economist said recently. “I think mistakes are being made in the land SWANSON market today, and most of it is an overestimation of land assets,� said Michael Swanson, chief agricultural economist at Wells Fargo Corporation. He was the keynote speaker at Iowa State University’s 88th annual Soil Management and Land Valuation Conference held May 20.
Tight crop margins Crop prices and farmers’ margins, Swanson said, will likely remain extremely tight to negative in the near term, primarily because of rising costs. Revenue from corn and soybean sales is sharply lower than a year ago, and higher costs are absorbing profit opportunities, he said. “For many farmers, costs and living expenses are still set at levels of income we had a few years ago, and the revenue is not there anymore,� he said. Still, the Minnesota-based eco n omist said, land prices remain
Sukup sells implement line Sukup Manufacturing Co. of Sheffield has sold its implement line to an Ohio company. Remlinger Manufacturing Co. of Kalida, Ohio, has purchased the Sukup Implement Line, which includes grain drills, row-crop cultivators, shredders, rotary cutters, food plot planters, seeders, grain carts and rippers. Sukup also recently announced its acquisition of DanCorn, a leading dealer of grain drying, storage and handling systems in Denmark and international markets.
relatively high for several reasons. One is today’s historically low interest rates, Swanson said. That means traditional fixed investments, like certificates of deposit, pay extremely low dividends and people with money are looking for alternatives, such as farmland, he said. In addition, farmers have a history of hustling to sink any cash they have into land, equipment and other assets, Swanson said. “Farmers are basically allergic to holding cash and paying taxes. They are like vampires and garlic.�
ers tend to overpay for land is a desire to grow their operations in a push to become more efficient, Swanson said. While there are economies of scale in agriculture, farmers who overexpand tend to see their management abilities stretched too
thin as their operations become more complex, he said. That can actually lead to a loss in efficiency. “You’ve got to be big enough to be in the game, but there’s a chance you could actually lose efficiency because your agronomy could suffer,� Swanson said.
Top-flight agronomy practices, the economist said, are what really set higher performing farms apart from the rest. “Agronomy is really where you really need to concentrate your efforts, because that’s where you see the biggest gains,� Swanson said.
Chopping rye
Buying on location Another factor is the tendency of farmers to overpay for land that is convenient to their current operations, Swanson said. Farmers often worry that piece of land they have always wanted will never come on the market again, and overpay to buy it, he said. “That’s really a super fallacy that is hard for farmers to overcome,� he said. “There will always be other pieces of land that come up for sale, in time.� It still doesn’t make sense to overpay for land that can become a drag on the entire operation, even if it’s convenient to farm, Swanson said. “If you pay too much, it will dog you for years, and you can’t sell it because you don’t want to admit that you are wrong.�
Overexpansion dangers Another reason that farm-
Bill Sokolowski was busy chopping a rye cover crop on his farm south of Marcus during a break in the weather last week. Sokolowski planned to plant soybeans after the cover crop was harvested for livestock feed. Iowa soybean planting reached 70 percent complete as of May 24, falling behind last year’s pace for the first time this year, according to the Iowa Department of Agriculture’s weekly crop progress report. PHOTO/GARY FANDEL
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6 JUNE 3, 2015 IOWA FARM BUREAU SPOKESMAN
Avian flu impacting egg, meat and corn prices
T
he growing number of confirmed avian influenza (AI) cases in Iowa is affecting egg and poultry prices, economists said last week. As the avian flu continues its spread through Iowa flocks, it’s limiting supplies of eggs and poul try products, driving up prices. “Something over 50 percent of our laying flock has been affect ed,” said David Miller, director of research and commodity ser vices for the Iowa Farm Bureau Federation. “On a national basis, 8 to 10 percent of the laying flock has been affected.” That’s having an impact on prices. Shell eggs last week were priced at almost $2.40 per dozen, up from $1.24 per dozen or 93 percent higher from a month ear lier, according to Steve Meyer and Len Steiner of the Daily Livestock Report. The price of liquid eggs, which was quoted at about 70 cents per pound at the end of April, was $1.78 per pound last week, a 158 percent increase. Prices have been moving up every day for the past month, the report said. The U.S. Department of Agri culture (USDA) reported table egg layer inventory on May 1 was 295.9 million head, 8.3 million
head or 2.7 percent lower than a year ago. “The June 1 inventory will likely register a much more significant decline given the large number of birds exposed to AI in the last three weeks,” Meyer and Steiner wrote. Miller said a 1 percent change in the laying flock on an annual basis means a 2 to 3 percent change in egg prices; a 10 percent change in the number of layers means a 30 percent change in prices. “The larger that percent gets, the bigger that impact is going to grow in the short run,” he said. If 10 percent of the U.S. lay ing flock is affected, a short-term impact could very well be in the 50 percent range with price move ment, Miller said. The more specific the product, the more vulnerable it is to changes in price, he said. “The more specific the product, the more it could be 100 percent,
200 percent (higher) as you ration those products.”
farmers selling back the grain they a report on WNAX.com. Contract farming is allowed in Iowa, and the won’t use to feed their flocks. “Nationally, it’s probably had bill was designed to make Nebraska Turkey prices higher very little impact on the national more competitive. Turkey prices have also in grain price,” Miller said. One estimate is that it might Traceability for China creased sharply, with turkey breast meat currently priced at $4 per make up 1 percent of the total sup The National Cattlemen’s pound, up 70 cents or 21 percent ply, he said. Reducing the demand Beef Association and the North in the past four weeks and nearing by 1 percent means a 2 percent to 3 American Meat Export Federation the all-time record levels the mar percent reduction in price, he said. recently issued a letter to U.S. “On a $3.50 market, that would Trade Ambassador Michael ket saw last year. Meyer and Steiner said avian be a 10-cent reduction,” he said. “It Fro man and U.S. Secretary of flu hasn’t had an “inflationary could have larger effects on local Agriculture Tom Vilsack noting impact” on chicken prices; rather, ized markets or feed mills.” intentions to implement a beef they said, it’s had the opposite traceability system for exports to effect. A number of countries have Nebraska bill defeated China, Farm Futures reported. imposed partial or complete bans The system would be a basis Nebraska legislators last week on U.S. chicken products due to defeated a bill that would have given for the U.S. government to certify the persistence of avian flu. the state’s hog farmers a chance to animals that meet China’s require U.S. chicken exports, which enter into contracts with custom ment for traceability from farm to account for as much as 19 per feeding arrangements, according to birth. cent of total production, are down, Meyer and Steiner said. Inventories of leg quarters were up almost 80 percent at the end of April, while leg quarter prices are Closing prices May 29, 2015 down 41 percent from a year ago. Settle Last Week Contract Settle Last Week High prices for turkey breast Contract May 2015 $16.22 $16.23 may provide some support for September 2015 $17.52 $17.30 June 2015 $16.75 $16.59 October 2015 $17.47 $17.33 pork and beef deli items, they said.
CME Class III Milk Futures
Corn prices lower Miller said grain used for feed on poultry farms affected by avian flu will likely be sold back to area feed mills. There may be restric tions in place based on where the grain was stored and how it should be handled, he said. The basis prices, or the price related to Chicago prices, has dropped in northwest Iowa and in other areas as a result of poultry
Weekly Average Price Comparison Price comparisons: Week ending: 05/29/2015 05/01/2015 05/30/2014 Cattle - National 5 Area Confirmed Sales 1,743 14,588 102,721 5 Area 65-80% Choice Steers: Wtd Avg. $159.00 $158.75 $145.30 Average Weights (Estimate) Cattle 1338 1344 1300 Boxed Beef Choice 600-750 (5 day avg.) $254.99 $254.64 $232.66 Boxed Beef Select 600-750 (5 day avg.) $243.83 $243.22 $221.90 Five Day Average Hide and Offal Value $13.66 $13.80 $15.69 Cattle - Interior Iowa – Minnesota Supply: 1,414 5,412 25,812 Average Price Choice Steer: Live Basis $158.96 $159.29 $145.15 Average Price Choice Steer: Dressed Basis $250.00 $253.28 $231.02 Feeder Steers at River Markets (Neb. Feedlots) #1 Muscle Thickness 500-600# NA $298.76 NA #1 Muscle Thickness 700-800# NA $229.13 NA Hogs -- Interior Iowa – Minnesota ISM Friday Weighted Average Carcass Price $79.76 $74.94 $106.33 Average Weights (Estimate) Hogs 280.4 281.8 286.7 Sows 1-3 300# and up: Average Price $27.84 $28.50 $77.58 Pork Loins 1/4” trimmed 13 - 19 pound $99.18 $111.68 $141.51 51-52% 200 pound Pork Carcass (5 day avg.) $8511 $71.06 $113.59 Feeder Pigs: National Direct Delivered Feeder Pigs 10 Pounds Basis - Wtd Avg. $38.55 $41.05 $70.77 Feeder Pigs 40 Pounds Basis -- Wtd Avg. $64.93 $62.78 $110.37 Sheep -- National Slaughter Lambs Negotiated Sales 4,100 5,700 3,600 Choice & Prime Wooled and Shorn 130 -150 lbs NA NA $158.50 Iowa Large Eggs (cents per dozen) $2.24 $0.84 $1.10 Young Hen Turkeys: 8 -16# -- Eastern (cents/lb) 111.55 105.20 105.30 *Iowa Ethanol Prices $/gal $1.48 $1.54 $2.43 Futures: Corn $3.10 $3.63 $4.65 State Average Cash Corn Price $3.31 $3.45 $4.46 Basis -$0.20 -$0.18 -$0.19 Futures: Soybean $8.76 $9.65 $14.94 State Average Cash Soybean Price $9.05 $9.31 $14.71 Basis: -$0.29 -$0.34 -$0.23 Slaughter Under Federal Inspection Estimates Estimates Actuals Hogs: 1,686,000 2,129,000 1,670,000 Cattle: 465,000 559,000 484,000 Sheep: 30,000 37,000 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. ***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
July 2015 $17.19 $16.68 August 2015 $17.36 $16.94 Spot Prices Block Cheese $1.6950 Barrel Cheese $1.6700 Butter $2.0050 NFDM Grade A $0.9075
November 2015 December 2015
$17.45 $17.25
Milk Prices June Class III June Class IV
$16.75 $14.21
$17.29 $17.18
Iowa Hay Auctions Dyersville, May 27
Hay, large squares, good, $100-215; fair, $70-100; utility, $60-85; large rounds, good, $90-140; fair, $75-92.50; utility, $25. Straw, large squares, good, $25-41. Grass, large rounds, good, $92.50. Corn stalks, large rounds, good, $15-36. Mixed, large rounds, good, $100.
Ft. Atkinson, May 27
Hay: small squares, 2nd crop, $135-195; 3rd crop, $115-225; large squares, 2nd crop, $60-150; 3rd crop, $75-150; 4th crop, $115; large rounds, 1st crop, $115; 2nd crop, $60-130; 3rd crop, $80-100. Straw: small squares, $155-160; large squares, $110-130. Corn stalks, large rounds, good, $30.
Perry**, May 23
Alfalfa, small squares, premium, $6.50-7; good, $4.50; large squares, premium, $60; good, $50; large rounds, premium, $95; good, $70. Grass, small squares, premium, $4.50;
good, $3.50; fair, $2; large rounds, premium, $50; good, $45; large squares, good, $50; fair, $40. Straw, large squares, $35; small squares, $4.50.
Rock Valley, May 28
Alfalfa, large squares, premium, $145-160; large rounds, premium, $140-155; good, $120; fair, $102.50-110; utility, $85-95. Grass, small squares, premium, $150; large squares, good, $130-137.50; large rounds, premium, $140; good, $110-130; fair, $95105; utility, $65-90. Mixed, large rounds, good, $120-130; utility, $40-80; large squares, utility, $8085. Straw, large squares, $50-75. Corn stalks: large rounds, $40-55.
Yoder**/Frytown, May 27
Alfalfa, large rounds, $27.50-45; large squares, $25-37.50. Grass: large rounds, $25-37.50. Oat hay: large squares, $45.
**Perry and Yoder hay auction prices are per bale. All other prices are per ton. Contacts: Dyersville, 563-875-2481; Ft. Atkinson, 563-534-7513; Perry, 515-321-5765; Rock Valley, 712-476-5541; Yoder, 319-936-0126
Storing corn since harvest has been a bumpy ride. Price appreciation into early December has now given way to largely sideways and lower markets. Illustrated this week are nearby corn futures prices (red dashed line) and central Iowa cash corn prices (blue line) since mid-October. Even though recent cash price in this example is about 25 cents per bushel higher than mid-October, much of that has been eaten away by ownership costs. Those with remaining 2014 corn now should make an exit strategy and move on to manage risk on the new crop, which isn’t offering positive alternatives either.
IOWA FARM BUREAU SPOKESMAN
El Nino often good for crops, but not always
O
ver the past few weeks, much has been said about signs that an El Nino is finally emerging. There have been persistent calls over the last year that an El Nino was under way, only to see the conditions fade. Sea surface temperatures started to warm again last fall, only to subside during our winter. But temperatures started warming again this spring, enough to have many weather agencies declare an El Nino is finally under way. The popular wisdom is that El Nino brings good growing conditions to the United States. And, generally, it does. On average, the corn yield is 1.6 percent higher than the trend we use, with a range from 8 percent under to 10 percent above trend. The average would imply a 166 bushel yield for the 2015 crop. But the corn yield is not consistently above trend during an El Nino event because it is not the only feature that guides our growing season weather pattern. Another key feature weather forecasters watch is the Pacific Decadal Oscillation, or PDO. The PDO refers to the presence of warm or cold waters in the northern Pacific, a feature that helps guide the jet stream over the United States. The warm/cold patterns tend to persist over 10-year periods before switching. One forecaster we follow has looked at a couple of scenarios involving El Nino and the warm PDO. Of particular interest over the last year has been the unusually warm pool of water just off our west coast. It has been guiding the jet stream up over Alaska before dipping south into our intermountain region. Recently Alaska had its earliest 90-degree day ever, in part because of the impact this has had on the jet stream. Given that jet streams tend to move north with the summer, it could lead to a warmer, drier pattern in the Southeast and along the Ohio River valley this summer. There’s another scenario that looks at weak spring El Ninos that strengthen during the summer. These potentially lead to a ridge over the Midwest during the growing season. On average, corn yields during these alternative El Nino scenarios this company has pinpointed are just under trend, with a range from 5 percent under to 10 percent over trend. One thing that tends to filter through all of the El Nino events is that there are a number of years with yields coming in below trend. But in reading the daily discourse of market chatter, one would think that El Nino all but guarantees there will be a good crop. That is simply not the case. The timing, the strength and other weather factors play into the picture as well. That leads us to believe there’s not a lot of risk premium in corn prices, nor soybeans, at this time. Depending on how El Nino and the growing season evolve, that should at least lead to weather scare rallies, if not a change in the larger expectations, if the crops don’t have the potential that the trade wants to believe they do today.
CORN STRATEGY
2015 CROP: Given the larger cyclic parameters, the long-term technical outlook suggests better prices should come. Hold off making sales. FUNDAMENTALS: With 92
500
bean supply attitudes for the United States and South America continue to weigh on prices. But those large supplies are far from secure. Larger technical features imply better marketing opportuni-
with 50-day moving average Cycle Lows 20-week 40-week
450 425 400
July corn has achieved all of the necessary objectives to complete the correction off the late December peak. The move down has completed a 3-wave a-b-c correction while b coming within a fraction of the ideal target.
375 350 325
So far, support at $3.46-$3.50 has held. It takes a close over $3.72 to suggest the trend might be turning up out of a 40-week low that could come at any time.
300 5/29/14
8/27/14
a
11/25/14
c
2/27/15
percent of the crop planted, the focus will turn to the potential for the new crop. The high initial crop rating, 74 percent good/excellent, was expected. But it doesn’t guarantee a big crop. In 2012, the crop ratings were over 70 percent into June 1, and we know how that crop turned out. Even as moisture conditions have improved in the Northern Plains and
5/29/15
8/27/15
10 0
-10 -20 -30
-40 Basis Chicago Futures
-50 7/3/14
9/24/14
12/15/14
3/10/15
5/29/15
northwestern part of the Corn Belt, they are starting to deteriorate in the eastern Corn Belt and Southeast.
1300
July 2015 Soybeans
1250
with 50-day moving average
1200
Soybean prices appear to be in the process of completing a diagonal triangle that started with last November's high. The recent "overshot" to the downside is consistent with the pattern coming to an end. The fact the market is in the window for a 16- to 18week low reinforces the odds an important low is at hand.
1150
2014 CROP: Sentiments regard-
2015 CROP: New-crop soy-
July 2015 Corn
475
SOYBEAN STRATEGY ing large supply have kept prices on the defensive, but Argentine labor problems, good demand for U.S. soybeans/products and the En vironmental Protection Agency’s (EPA) new biodiesel mandate have been stabilizing forces. An important low is due. The best strategy is to lock up the basis, but keep the futures component of pricing open.
7
Cash Strategist Hotline: 1-309-557-2274
2014 CROP: Prices still look poised to complete the downside correction that started in late December. The final low shouldn’t be much, if any, lower than last week’s $3.48 low on July futures. Once complete, the market should be positioned to have an extended period of better prices. Other than locking in basis, we aren’t interested in pricing corn.
JUNE 3, 2015
1100 1050 1000
Cycle Lows 16- 18-week 3-year
950 900 850
Key support is last fall's low on the nearby chart at $9.04. At the least it takes a close over $9.50 to turn the minor trend up. A close over $9.67 would be a stronger sign of a change in trend.
800 5/29/14
8/27/14
11/25/14
2/27/15
ties should come this summer.
FUNDAMENTALS: New crop supply talk may be the biggest feature keeping prices on the defensive. Planting has gone well with 61 percent of the U.S. area planted. But if the rains in the Southern Plains, Mid-South and Southern Corn Belt continue, some acreage may be designated prevent plant. The new
5/29/15
8/27/15
400 300 200 100 0 -100 7/3/14
Basis Chicago Futures
9/24/14
12/15/14
3/10/15
5/29/15
EPA biodiesel mandates should be a positive for soybean oil, a sector that accounts for 25 percent of U.S. domestic soybean oil consumption.
Iowa Corn & Soybean Basis CORN: (basis vs. July futures, 5/27/15) NW SW
$3.31 NC $3.28 -0.19 -0.22 $3.28 SC $3.29 -0.22 -0.21
NE
$3.29 -0.21 SE $3.33 -0.17
SOYBEANS: (basis vs. July futures, 5/27/15)
NW $8.89 -0.38 SW $8.97 -0.30
NC
$8.92 -0.35 SC $8.96 -0.31
NE $9.03 -0.24 SE $9.15 -0.12
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.
Senate extends transportation funding Cash Strategist Positions at a glance
CORN 2014
3-10-14 — 10% sold @ $4.82
3-10-14 — 15% sold @ $4.78
3-31-14 — 10% sold @ $4.95
11-20-14 — 15% sold at $3.78
BEANS
2015
100% unsold
50% unsold
2014
2015
12-23-13 — 10% sold @ $11.72
12-31-13 — 10% sold @ $11.35
5-27-14 — 15% sold @ $12.07
2-18-14 — 10% sold @ $11.38
3-3-14 — 10% sold @ $11.72
5-12-14 — 10% sold @ $12.23
85% unsold
6-2-14 — 10% sold @ $12.24
40% 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.
The Senate passed a two-month extension of surface transportation funding by voice vote on May 23, avoiding an abrupt suspension of highway and bridge projects during the busy summer construction period. The House of Representatives passed an identical two-month extension by a vote of 387-35 on May 19. The legislation was sent to President Barack Obama, who was expected to sign the extension prior to the May 31 deadline. The U.S. Department of Transportation estimates that, with passage of the authorizing legislation, the Highway Trust Fund will have sufficient revenue to provide funding until the middle of the summer. “While we are pleased a twomonth extension was passed in order to prevent a suspension of federal funding for highways, Congress once again has failed to demonstrate the necessary leadership to provide a long-term
strategy for how to maintain and improve the transportation system the U.S. economy demands,” said Mike Steenhoek, executive director of the Soybean Transportation Coalition. Most states develop a five-year plan for maintaining and improving their system of roads and bridges, he said. Much of this construction work is reimbursed to the states by the federal government. “If the federal government is not a reliable partner in funding transportation, states will be less confident to proceed with planning and executing many essential and expensive infrastructure projects,” Steenhoek said. The Highway Trust Fund is financed via a federal fuel tax of 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel fuel. That funding is distributed into three accounts: the Highway Fund, the Mass Transit Account and the Leaking Underground Storage Tank Trust Fund.
“The fundamental flaw in how we finance our transportation system is that we have a fixed source of revenue trying to meet the needs of an escalating cost,” Steenhoek said. “It may be unintentional, but the inevitable outcome of such an approach is a funding shortfall over time.” The Highway Trust Fund annually generates approximately $35 billion. Steenhoek said estimates put annual funding needs at approximately $50 billion to keep the system in a state of good repair. The federal tax on gasoline and diesel fuel has not been adjusted since 1993, he noted. “According to research funded by the Soy Transportation Coalition, if Congress had indexed the fuel tax to inflation in 1993 — the last time it was adjusted — an additional $133 billion would have been available for improving our nation’s roads and bridges,” Steenhoek noted.
8
JUNE 3, 2015
IOWA FARM BUREAU SPOKESMAN
El Nino strengthens, bringing favorable crop outlook IOWA’S WEATHER OUTLOOK
BY DAN HICKS
F
or the two-month per iod of March and April combined — the first two of the three months that make up the climatological spring season, temperatures in most of Iowa averaged near to 2 or 3 degrees above normal. The warmest conditions, compared to normal, were in the western part of the state. Meanwhile in some far eastern locations, this two-month period averaged slightly cooler than normal. Precipitation during this period averaged below normal in most of Iowa, with average departures of 1 to 3 inches below normal in most crop districts. Only the crop districts of west-central and north-central Iowa had average precipitation that was less than 1 inch below normal. During May, temperatures showed some of the normal springtime variability across Iowa, but for the month as a whole averaged near to a little above normal in most areas. The coolest conditions compared to normal were in some western areas with the warmest in some central into eastern areas. Precipitation increased during May, and many areas of the state finished the month with near to above normal amounts. May rainfall increased soil moisture in many areas needing rain, and by late in the month, a large majority of the state reported at least adequate and some surplus topsoil and subsoil moisture. May rainfall slowed spring planting at times, but planting progress in many areas managed to stay at or ahead of the latest five-year averages. There were parts of the state where progress was slower, however.
Stronger El Nino In the Tropical Pacific, El Nino conditions have gradually strengthened during this past spring, and as of late May, the intensity was around the threshold for a weak to moderate El Nino. Officially, El Nino conditions have now been in existence since late last year, according to the Climate Prediction Center. Further strengthening is forecast in the up coming months, and it looks like El Nino conditions will continue into at least later this year. Data from the Climate Pre diction Center indicate that there have been 15 years since 1950 when El Nino conditions existed during the three summer months of June, July and August. In most of these cases, El Nino was of weak or moderate intensity during the summer period. In some of these events, El Nino became established well be fore the summer months and continued well beyond summer, a trend that appears to be similar to this year. In other cases, El Nino was just beginning or was ending during the June-to-August time period. Each case is different; however, summer weather during El Ninos is generally favorable for crops in
the Midwest, but that is not always the case.
Good crop weather In some of the years when the trend in El Nino was somewhat similar to trends that are occurring this year, there was a tendency for summer temperatures to average near to above normal in the Midwest, with at least some pockets of below normal rainfall. At this time, I have no reason to expect unusually extreme or highly unfavorable overall summer weather for crops here in Iowa. This month, I look for temperatures in most of Iowa to average near to slightly above normal. Early in June normal high temperatures range from the middle 70s in northern Iowa to the upper 70s and around 80 in
the south, and normal lows range from the lower and middle 50s north to the middle and upper 50s south. Normal high temperatures late in the month range from the lower and middle 80s north to the middle and upper 80s in southern Iowa, and normal lows range from the lower 60s north to the middle 60s south. I expect June precipitation to average near to slightly above normal. June is one of the wettest months of the year in much of Iowa based on the latest normal precipitation values. Normal June precipitation is between 4.5 and 5.5 inches in most of the state. A few locations from southwestern into central and northern Iowa have normal amounts slightly over 5.5 inches, while a few locations in far western Iowa have normal amounts of less than 4.5 inches. Hicks is a meteorologist with Freese-Notis Weather Inc. in Des Moines. Freese-Notis offers daily forecasts, long-range outlooks and other services. For more information or to subscribe, call 515282-9310 or go to www.weather. net.
An abundance of May rainfall was more suitable for ducks than corn in this Kossuth County field, but the summer outlook is favorable with an El Nino pattern in place, according to meteorologist Dan Hicks. PHOTO/GARY FANDEL
Normal June Precipitation (Inches) (1981 to 2010 normals)
Sioux Falls......... 3.92 Cedar Rapids......... 5.13 Spencer.................. 4.40 Clinton............... 4.46 Algona ................... 5.38 Council Bluffs........ 4.18 Mason City ....... 5.14 Atlantic ................. 5.67 Decorah.................. 5.16 Sioux City.............. 3.88 Grinnell.................. 4.84 Des Moines....... 4.94 Storm Lake........ 5.56 Iowa City............... 5.06 Fort Dodge............ 5.56 Davenport......... 4.49 Waterloo................ 4.98 Shenandoah.......... 5.53 Dubuque............ 4.45 Creston ................. 4.70 Denison.................. 4.87 Chariton............. 5.01 Jefferson................ 4.99 Ottumwa............... 5.09 Ames.................. 5.23 Burlington............. 4.47 Marshalltown........ 5.57 Keokuk............... 4.83 (Data from National Weather Service and Midwestern Climate Center)
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