State7 15 2015

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

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V O L . 8 2 , N O . 4 5 | W W W. I O WA FA R M B U R E A U . C O M

Funding signals strong support for water quality plan

BY DIRCK STEIMEL With additional funding appropriated and approved for the new fiscal year, the Iowa Legislature and Gov. Terry Branstad are sending a clear signal of support for the state’s water quality initiative, according to Iowa Agriculture Secretary Bill Northey.

“It shows a confidence in this being the right kind of approach,” Northey said last week. “To come up with this funding on an ongoing basis shows that there is really a strong interest from the legisla-

ture and the governor in supporting water quality programs, even in these tough budgetary times.”

In early July, Branstad signed into law $9.6 million, which was approved during the 2015 legislative session to support the water quality initiative, called the NORTHEY Iowa Nutrient Re­­duction Strat­­egy, into the new fiscal year. Of that

total, the legislature provided $4.4 million for water quality in the appropriations bill for agriculture and natural resources. Another $5.2 million for water quality was appropriated in the Rebuild Iowa Infrastructure Fund.

Farm Bureau priority

Conservation funding continues to be a top priority of Iowa Farm Bureau members, who have worked with lawmakers to secure funding for the state’s water quality initiative. With the constant pressure of new regulatory

requirements in agriculture, Farm Bureau believes it is important to support adequate funding of voluntary programs that are demonstrating continued conservation progress by farmers.

The newly-allocated funds, Northey said, will allow the Iowa Department of Agriculture and Land Stewardship (IDALS) to continue to offer cost share for farmers trying new water quality practices, such as cover crops, strip tillage and no-till. It will also help IDALS continue its work in targeted watersheds to help farm-

AFBF, states file lawsuits to halt water rule The American Farm Bureau Federation (AFBF), along with a number of other agricultural and construction organizations, have petitioned a federal district court in Texas to stop federal agencies from enacting a rule to redefine the scope of federal jurisdiction under the Clean Water Act. The petition claims that the Waters of the U.S., or WOTUS rule, which is set to go into effect in late August, grants the Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers broad control of land use that is beyond the scope of what Congress authorized in the Clean Water Act. The lawsuit also claims vagueness and overbreadth of the rule violate the U.S. Constitution.

In addition, the agricultural groups also challenged the EPA’s aggressive grassroots advocacy campaign during the comment period, which pushed aside concerns expressed by farmers and others.

The Texas petition follows similar lawsuits filed by officials representing 27 states against the WOTUS rule. A group of nine states — West Virginia, Georgia, Alabama, Florida, Kansas, Ken­ tucky, South Carolina, Utah and Wisconsin — has asked a federal district court in Georgia for a preliminary injunction to stop implementation of the rule while the lawsuit is resolved. Ohio and Michigan have a separate suit in Ohio also seeking preliminary relief.

Although the EPA and the Corps claimed the WOTUS rule would bring clarity and certainty to farmers, ranchers, builders and other affected businesses and landowners, it has done the opposite, according to Ellen Steen, AFBF general counsel. “Instead, we have WOTUS PAGE 4

ers find ways to achieve measurable water quality improvements, including edge-of-field practices like bioreactors, saturated buffers and stream buffer strips, he said.

Iowa State University also re­­ ceived a $1.23 million appropriation for a three-year pilot project to quantify in-field activities focused on improving water quality.

Iowa farmers have shown a growing interest in the state’s science-based water quality initiative and are investing their own money in the practices to improve water WATER PAGE 4

Tougher times call for better financial plans Lower commodity prices are putting a premium on farmers’ financial skills STORY ON PAGE 3

Poor communication hurt poultry growers

Stephen Ellis, who farms along the Rappahannock River in Virginia, checks to see if his wheat crop is ready for harvest. Ellis, like other farmers in the Chesapeake Bay watershed, is restricted by rules that limit the timing, amount and type of fertilizer that can be applied. Despite a push by environmental activists, Iowa agriculture officials say these rules would be a very bad fit in the Midwest. PHOTO/TOM BLOCK

Chesapeake’s strict farming rules seen as a bad fit for Iowa

This is the first article in a series on farming in the Chesapeake Bay region after federal regulators imposed strict mandatory rules that limit fertilizer applications. Despite mixed evidence that the regulations have improved the bay’s water, environmental groups and others are pushing for similar regu-

lations in Iowa and the entire Mississippi River valley.

BY TOM BLOCK

T

he farm landscape in the Chesapeake Bay watershed changes considerably from state to state, but farmers there are

IFBF’S HILL JOINS USDA TRADE ADVISORY PANEL

Craig Hill, president of the Iowa Farm Bureau Federation, has been appointed to the U.S. Department of Agriculture’s trade advisory committee for grains and oilseeds. The committee members provide advice to the department as it works to enact trade agreements.

“They are an invaluable asset as we work to enact trade agreements and trade policies that deliver the greatest economic benefit for U.S. agriculture and for our nation as a whole,” said Tom Vilsack, U.S. agriculture secretary.

Congress established the advisory committee sys- HILL tem in 1974 to ensure a private-sector voice in establishing U.S. agricultural trade policy objectives to reflect U.S. commercial and economic interests. The U.S. Department of Agriculture and the Office of the U.S. Trade Representative jointly manage the committees.

dealing with a common challenge — a so-called “pollution diet” imposed by the Environmental Protection Agency (EPA).

The pollution diet, established in 2010, is aimed at cleaning up the Chesapeake Bay by limiting the amount of nutrients, or total CHESAPEAKE PAGE 2

Farmers were often left in the dark during the devastating avian flu outbreak STORY ON PAGE 5

News in USDA reports sends crop prices up Lower grain stocks, questions on acreage and crop damage from heavy rains have sparked a price rally.

STORY ON PAGE 6

Monsanto works to ease merger fears The seed genetics giant said its pursuit of Syngenta will not raise prices or limit choices for farm inputs.

STORY ON PAGE 8

COPYRIGHT 2015

NEARLY ALL FARMERS MEET CONSERVATION RULE The U.S. Department of Agriculture (USDA) announced last week that more than 98 percent of farmers have met the 2014 farm bill requirement to certify conservation compliance to qualify for crop insurance premium support payments. Implementing the 2014 farm bill provisions for conservation compliance is expected to extend conservation provisions for an additional 1.5 million acres of highly erodible lands and 1.1 million acres of wetlands, which will reduce soil erosion, enhance water quality and create wildlife habitat.

“This overwhelming response is a product of USDA’s extensive outreach and the commitment of America’s farmers to be stewards of the land,” said Agriculture Secretary Tom Vilsack. “By investing in both American farmers and the health of our productive lands, we are ensuring future generations have access to fertile soil, healthy food supplies and a strong rural economy.”

2

JULY 15, 2015 IOWA FARM BUREAU SPOKESMAN “You put in your yield goal, and the model will tell you how much nitrogen, phosphorus and potassium you are able to put out,� he said.

In most cases, fall nitrogen applications are prohibited and spring applications can’t take place until March 1, he said.

Farmers can either go through a training program to be certified to write their own plan or hire a crop consultant to do it for $3 to $4 an acre, Scott said. The state conducts audits on a percentage of the nutrient management plans each year.

CHESAPEAKE FROM PAGE 1

daily maximum loads (TMDLs), entering waterways from agricultural, urban and industrial sources.

For farmers, that means limits on the timing, amount and type of fertilizer that can be applied, whether it’s on the tree-lined fields of Virginia, sandy soils in eastern Maryland or the rolling hills of Pennsylvania — and no matter the weather or field conditions. “It’s something we’ve had to live with,� said Keith Horsley, who grows corn, soybeans and wheat on 1,300 acres near Hayes, Va. “The government makes the (rules) about it, and we’ve got to abide by it. It’s an adjustment.�

Farmers are all for cleaning up the water in the Chesapeake Bay, but they have serious questions about whether the rules will achieve water quality targets or if they’ll face another round of regulations.

That’s because evidence that the burdensome regulations have been successful in making necessary  water  quality  improvements remains very murky. By some measures, water quality has improved in the Chesapeake region, and by others, it hasn’t.

But that hasn’t stopped environmental groups from using the Chesapeake as an example for the vast Mississippi River valley, which includes Iowa.

Making voluntary efforts Virginia farmer Keith Horsley checks the residue from cover crops. He says the Environmental Protection Agency’s plan dictates how much fertilizer a farmer can apply on each field based on soil tests and yields. PHOTO/TOM BLOCK

However, there are a litany of reasons why the Chesapeake approach is a very bad fit for farmers in the Mississippi River watershed, said Iowa Agriculture Secretary Bill Northey. For one, the Mississippi River basin, encompassing more than 1.2 million square miles across 31 states, is almost 20 times the Chesapeake.

The more heavily populated eastern states also have much more generous financial incentives to get farmers to apply conservation practices like cover crops, Northey said. Maryland, for example, pays up to $100 per acre for traditional cover crops with no acreage caps.

By comparison, Iowa offers firsttime cover crop users $25 per acre in cost share on limited acres. “They have softened the mandatory approach by giving farmers money to comply with the mandatory regulations,� said Northey. “It’s a matter of scale. They have more people than they have acres, so that allows them to generate tax dollars that can contribute toward their agriculture. It would take an awful lot of state money to do the same kind of thing here.�

Coming to Iowa?

The  Chesapeake’s  pollution diets were introduced in response to a hypoxia zone, an area of oxygen-depleted  water  where aquatic life cannot survive. A similar hypoxia zone in the Gulf of Mexico has led some environmental activists to call for Chesapeakestyle regulations to be enacted in the Mississippi River basin.

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The Chesapeake Bay watershed spans 64,000 square miles, or 40 million acres, crossing six states and the District of Columbia, and is home to more than 17 million people. The land area is slightly larger than the state of Iowa, which is just over 56,000 square miles, or 36 million acres.

The EPA’s Chesapeake Bay directive requires states in the watershed to develop Watershed Implementation Plans for achieving target reductions from agriculture and other sources by 2025.

Each state’s plan is slightly different, but Maryland, Virginia and Delaware all enacted mandatory nutrient management plans. Each state also has goals for adoption of conservation practices like cover crops and no-till, although incentives differ from state to state and have changed over time. “One of the first things when we started (is) they wanted you to no-till your corn,� said Stephen Ellis, who grows corn, soybeans, wheat and barley near Champlain, Va. “The next step is they’re pushing us toward cover crops after beans so that you have something growing from then until the corn is planted in April.�

Costly, time-consuming

The mandatory nutrient management plans in Virginia and Maryland are similar to Iowa’s manure management plans, except they are required for all fields regardless of whether fertilizer is from a commercial or animal source.

Maryland requires soil tests at least every three years, although farmer Jason Scott says he tests his fields more often. “We do every field, every year,� said Scott, a Pioneer seed dealer and U.S. Wheat Associates board member from Hurlock, Md. “Because we’re so limited, we want to know what’s out there.�

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The soil test results direct farmers how much fertilizer, including nitrogen, phosphorus and potassium, can be applied to crops during the next growing season. “They basically tell you, based on your yield, how much fertilizer you can apply,� said Horsley, who farms along the York River, which feeds into the Chesapeake Bay. “It can vary from field to field.�

He said he can apply up to 110 pounds of nitrogen on some of his wheat fields, but others are capped at 40 pounds of nitrogen. Writing the plans is no small task, given that Horsley’s farm is made up of about 100 choppy fields averaging 11 to 12 acres in size.

Scott said he writes two sets of plans for many of his fields, one for corn and one for soybeans, so he can maintain planting flexibility.

In some cases, farmers in the Chesapeake Bay states are going beyond the regulations because it makes the soil more productive. In other cases, they must work around regulations, like rigid dates for fertilizer application and cover crop planting and termination.

Ellis, who farms along the Rappahannock River, said he adopted no-till practices in the mid-1990s. “We were ahead of the mandatory regulations. We started it a little ahead of time because we saw it coming,� he said. “It’s better to start at your own pace and do things you’re comfortable with before somebody tells you to do it.�

Horsley and his dad, Clem, were recognized last winter as the first farmers in Virginia to implement a voluntary resource management plan on a portion of their acres, which goes a step beyond the mandatory nutrient management plans. In addition to fertilizer restrictions, the resource management plan incorporates conservation practices like buffers, setbacks and erosion control measures. Horsley, who says some of the family’s farm ground hasn’t been tilled since the 1940s, found he already met or exceeded the qualifications simply by doing what he sees as best for the land. “For this plan, we didn’t have to implement (anything new) be­­ cause we were already doing the buffers, we were already doing the setbacks, so we were in compliance to begin with,� he said.

Horsley and Scott are using the latest technology like variable rate applications and field mapping to precisely apply fertilizer when and where it will do the most good. “In my opinion, that probably helps the Chesapeake more than the mandatory nutrient plans,� Scott said.

No flexibility

The trouble with the regulations is that they don’t allow farmers to adjust for weather conditions, Horsley said. For example, Virginia’s cost-share program re­­ quires cover crops to be planted by Nov. 15, even though the weather might permit much later planting some years. “We’ve planted up to Christmas and had just as good a stand,� he said. “It just depends on the weather. But our hands are tied with the nutrient management

plan.�

In addition to being costly, Iowa’s Northey said imposing regulations would stifle the creativity and innovation that farmers are showing as they work to achieve the goals set forth in Iowa’s voluntary Nutrient Reduction Strategy.

The lawsuit filed by the Des Moines Water Works against three drainage districts in northwest Iowa threatens to derail that progress, the Iowa agriculture secretary added.

Measuring progress

Years after the Chesapeake Bay regulations were implemented, success or failure remains difficult to measure and finger-pointing is cropping up. Water quality in the bay has improved somewhat, according to a 2014 report by the Chesapeake Bay Foundation, but populations of some fish species have declined.

For all of the focus on agriculture, farmers say some of the biggest challenges to cleaning up the Chesapeake Bay come from an ever-expanding urban population.

An estimated 150,000 people move into the watershed every year and urban encroachment gobbles up valuable farmland.

More regulation ahead

Chesapeake Bay farmers are casting a wary eye toward 2017, which is the mid-point of the EPA’s 15-year plan to clean up the bay. By 2017, the EPA directive requires states to achieve at least 60 percent of their targeted nitrogen, phosphorus and sediment reductions. The agency has threatened to withhold funding from states that fall short of their goals, and farmers fear regulations will be tightened. “I think we’re going to have another hit in 2017. That’s another milestone,� Horsley said.

Farmers want to see the bay water quality improved, Clem Horsley noted, but there are some activist groups whose livelihoods depend on pushing for stricter regulations or filing lawsuits. Money always seems to be aimed at finding problems instead of solutions, he said.

Lawmakers are also pressured to impose regulations before the source of problems are known, Scott said. Maryland’s mandatory nutrient  management  program was started in 2000 after poultry litter was blamed for toxic algae blooms, a finding that was later called into question, he said.

While Maryland’s ag sector is ahead of the state’s wastewater sector in achieving its nutrient reduction goals, Scott said it’s important to remember that making the Chesapeake Bay cleaner is a long-term effort, a fact often lost amid regulations enacted with a specific end date in mind. “People want immediate re­­ sults,� he said. “This isn’t a fiveyear fix, or even a 10- or 20-year fix. It’s going to take 50 years or more to see the Chesapeake Bay get healthy.�

For a map of the Chesapeake Bay watershed and video interviews of farmers in the region, please visit the Spokesman Extra website at http://tinyurl.com/bgdxaoh.

IOWA FARM BUREAU SPOKESMAN JULY 15, 2015

Editorial

3

In tougher times, it pays to plan ahead to manage financial risk

BY STEVE JOHNSON

age costs as well as harvest basis risks.

W

hile production risks are at the forefront of most producers’ minds, don’t ignore the need to manage your farm’s overall financial risks. The initial concern may be trying to market crops at cash prices not seen since 2009, but part of the solution is looking beyond the next six months.

Despite the JOHNSON tight profit margins expected for 2015, consider these five financial risk management strategies.

Working capital

Maintain adequate cash re­­ serves, which are typically working capital (current assets minus current liabilities) as well as operating lines of credit. By the late summer months, these reserves and access to credit will be critical to finish off 2015 crop operating expenses and make early input decisions for the 2016 crop.

Many operations reduced their available working capital the past year and may not have maintained adequate cash reserves for what is needed in the face of falling crop prices. The goal of most Corn Belt row-crop operations would be to maintain a 40 percent ratio of working capital to gross revenue (current assets minus current liabilities) divided by gross crop revenue.

This ratio was nearly double that 40 percent level for many farms in 2012 and 2013.

Repayment capacity

With interest rates at nearrecord lows, lock in rates now on longer-term debt and renegotiate repayment terms to free up additional cash to make crop operating decisions. This past winter, most agricultural lenders did a nice job of reaching out to help qualified customers free up working capital by re-amortizing existing loans and reducing prin-

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

Manage price risks

cipal repayments.

The operating lines of credit established for 2015 did not likely include storing a large portion of both 2014 and 2015 crops into the fall and winter months.

Control your costs

The knee-jerk reaction by many producers in light of the tight crop profit margins for 2015 was just to cut costs. A better strategy is to control those controllable expenses while maintaining great yield prospects.

Prioritize your cost-cutting measures early before the 2015 growing season progresses. Iden­ t­ify those input decisions that

will be critical to maximize your economic return on crop inputs.

Maximize 2015 yield

It’s still the total bushels produced and marketed that will generate the total gross crop revenue you’ll need to pay both crop-related and family living expenses. Think ahead now to the 2015 crop harvest and how best you might manage on-farm drying and storage capacity.

Consider on-farm versus commercial costs for those corn bushels you can’t manage on-farm.

Perhaps make new-crop corn and soybean sales directly from the field to avoid shrink and stor-

Many farms still have their working capital tied up in un­­ priced 2014 bushels. Consider making old and new-crop sales in the spring and early summer months. That’s typically when the futures markets build in a risk premium for corn and soybeans and a majority of the global feed grain crops are grown in the Northern Hemisphere.

Should the 2015 crop yield prospects remain large into the late summer months, the risk of both lower futures prices and wider basis will likely increase.

Storing two years of crops into 2016 could prove expensive and add to a farm’s financial risks.

With razor-thin profit margins for 2015 crops, plan ahead now by utilizing these five crop risk management strategies.

There’s an old adage that says, “Failing to plan is planning to fail.”

Johnson is a farm and ag business management specialist for Iowa State University Extension and Outreach.

Kit helps students learn about ag and where their food comes from “Farm a Month: Where Does Our Food Come From?” is a new learning kit developed by the American Farm Bureau Foundation for Agriculture for pre-K to first-grade students.

The Farm a Month kit provides an exciting way for teachers, families and classroom volunteers to engage preschool and elementary-aged students in agricultural-based lessons throughout the year.

The kit was developed with the goal of helping foster conversations about where food and fiber comes from.

“Premiere educational re­­sour­ ces like the Farm a Month kit are an outstanding jumping-off point for young learners,” said Julie Tesch, executive director of the foundation. “But there is nothing

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

ADVERTISING [800] 442-FARM CIRCULATION [866] 598-3693

To place a free exchange ad, contact your county office for information. The Iowa Farm Bureau Spokesman (ISSN 0021-051X) is published weekly by the Iowa Farm Bureau, 5400 University Avenue, West Des Moines, IA 50266. Subscription price of $2 per year for mailing in the continental USA included in the dues of Farm Bureau members in Iowa. Additional subscription fee required for mailing outside the continental USA. Periodical postage paid at Iowa Falls, Iowa.

Members please send change of address to your county Farm Bureau office. Postmaster send address changes (POD FORM 3579) to Iowa Farm Bureau Spokesman, P.O. Box 670, Iowa Falls, Iowa 50126. Letters to the editor and statewide news articles should be sent to Editor, Iowa Farm Bureau Spokesman, 5400 University Avenue, West Des Moines, Iowa 50266. Reprinting of Spokesman articles and photographs is not allowed without permission.

quite like meeting a farmer face-toface. We encourage educators and parents to also c o n ­­t a c t their local county Farm Bureau to connect with farmers and ranchers in their area.”

Farm a Month kits are eq­­ uipped with 12 activities. Each is focused on a different commodity raised on American farms.

Suggested snacks and related books to read are included for each activity.

Activities can be done at any 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.

time during the year and completed in any order, noted Tesch.

“For students not in school yearround or for home-schoolers, setting up a farm-learning schedule would work well with the kits.

‘Farm Fridays’ or ‘Meet a Farmer Mondays’ are just a couple of options,” she said.

A 36-inch-by-24-inch map of the United States and reusable stickers are included in each kit to reinforce geography as students learn about where different foods are produced.

Each activity also includes a “Meet a Farmer” feature, with stories about life on the farm from people across the United States.

The Farm a Month kit is available for purchase for $25 online at http://bit.ly/FarmaMonth.

Iowa farmers are stepping up to aid water quality

BY DIRCK STEIMEL Anyone still not convinced Iowa farmers and others in agriculture are serious about stepping up to improve our state’s water quality and conserve topsoil should take a quick look at my email inbox. It’s crammed this summer with announcements and fliers for conservation field days and other events in every part of the state, most of them being hosted or run by farmers.

There’s a field day in northwest Iowa this week on interseeding cover crops into standing corn.

There’s another in Linn County that will include a visit with a farmer who’s had conservation practices in place for three decades.

The list goes on.

There were 637 conservation field days and other events last year, and they keep happening in 2015. I’m pretty sure that many more will fill my inbox right up until the harvest season.

Attendance at the events, by all accounts, is outstanding. Last year more than 23,000 farmers attended the conservation events, and it’s been just as strong this year.

Farmers are kicking the tires, so to speak, on the practices that have proven to reduce nutrient loss, such as cover crops, bioreactors and saturated buffers. They are asking a lot of questions. And they are determining which of the conservation practices will work best on their farms (if they haven’t adopted them already).

Strong momentum

Veteran ag observers, such as Iowa Agriculture Secretary Bill Northey, say the momentum to learn about and adopt conservation and water quality practices has never been stronger.

A recent Iowa State University (ISU) survey of farmers underscored that. The Iowa Farm and Rural Life poll by ISU found that 80 percent of the 1,100 farmers who responded to the survey said they are aware of the state’s water quality initiative, officially called the Iowa Nutrient Reduction Strategy, and most support it. And, even more impressive, 72 percent of the farmers said they would like to improve the conservation practices on the land they farm.

These are exciting and challenging times for conservation and water quality improvement in Iowa. It really seems like we’re heading into a new era. And for those in the state who still contend that farmers aren’t yet serious about voluntarily stepping up to make a positive difference, maybe it’s time to get out of the office and see what’s happening out in the country.

4 JULY 15, 2015

IOWA FARM BUREAU SPOKESMAN

IOWA FARM BUREAU SPOKESMAN JULY 15, 2015 5

IDALS extends funding for innovative water quality projects

The Iowa Department of Agriculture and Land Stew­ardship (IDALS) last week selected four projects to expand the use of innovative water quality practices. The projects will receive $3.06 million over the next three years, which will be augmented by $2.59 million in private investment.

“Broad adoption of a variety of practices is necessary to reach the aggressive goals we all share for water quality,” said Iowa Agriculture Secretary Bill Northey. “These four new projects are focused on helping us learn more about the best ways to get these practices on the land and creating demonstration opportunities so farmers can see how a new practice might work on their farm.”

The projects will focus on: • Advancing nutrient reduction in the Rock Creek watershed

WATER FROM PAGE 1

quality, Northey said. There has also been growing interest from farmers in the 16 water quality demonstration projects, which have been established by IDALS in targeted, priority watersheds around Iowa, he said.

A recently-released Iowa State University survey showed that most Iowa farmers are aware of the state’s water quality initiative and are working to implement practices to reduce nutrient loss from their farms.

IDALS just announced four new water quality demonstration projects (see article above) focused on expanding the use of innovative water quality practices, including programs to use cover crops in livestock programs and to coordinate with ag retailers to promote water quality improvement practices. And the department will continue its work to increase the number of Conservation Reserve Enhancement Program (CREP) wetlands in the state, Northey said.

“We have the interest out there in wetlands and sites that are ready to go,” Northey said. “They are not inexpensive to put in, but in the long run, they can be very cost effective because they make such a significant reduction in the amount of nitrates leaving a watershed.”

in Mitchell County by installing edge-of-field practices, especially bioreactors and saturated buffers.

• Demonstrating the value of incorporating cattle and other ruminants into cover-crop plans.

• Expanding cover-crop use by working with farmers recognized as leaders in raising corn and soybeans.

• Delivering and optimizing wetlands as a method of removing nutrients from surface water.

For more information on the projects, go to http://bit. ly/1IMW4dC.asp.

Separately, IDALS reminded farmers last week that funds are available to help install practices focused on protecting water, including cover crops, no-till or strip till, or using a nitrification inhibitor when applying fertilizer.

The cost-share rate for firsttime users of cover crops is $25 per acre; no-till or strip till are eligible for $10 per acre; and farmers using a nitrification inhibitor when applying fall fertilizer can receive $3 per acre. Farmers are eligible for cost share on up to 160 acres.

In the last two years that this program has been available, more than 1,400 farmers put in new nutrient reduction practices on over 144,000 acres. The state provided about $3.4 million in cost-

WOTUS FROM PAGE 1

a final rule that exceeds the agencies’ legal authority and fails to provide the clarity that was promised,” she said. “AFBF filed this lawsuit to do everything we can to protect the interests of farmers and ranchers, but litigation is not a quick or perfect fix. It is long, cumbersome and expensive, and Role: Name: Initials: it leaves farmers andLaura others facing Proofing immediate harm and uncertainty Project Mgr. Courtney under this rule.”

Writer According to the AFBF comArt Director Jordan are deterplaint, “the agencies mined to ACD exert jurisdiction over a staggering range of dry land Production Lead and waterProduction features — whethArtist jason er large or small, permanent, intermittent or ephemeral, flow-

share funding to help farmers try a water quality practice for the first time, and Iowa farmers provided at least another $3.4 million to support these water quality practices.

Farmers are also encouraged to visit their local Soil and Water Conservation District office to inquire about additional opportunities for cost-share funding through other programs.

ing or stagnant, natural or manmade, interstate or intrastate.”

AFBF also said the “opaque and unwieldy” rule “leaves the identification of jurisdictional waters so vague and uncertain that plaintiffs and their members cannot determine whether and when the most basic activities undertaken on their land will subject them to drastic criminal and civil penalties under the CWAOrder(Clean WaterName: Act).” Initials: Date: Role: While GCD AFBF and others have turned to the courts to block the Art Buyer WOTUS rule, they are also pushAccount Exec. ing for legislative relief. A bill Senior Level AEthe Senate would pending before require the Other EPA and the Corps to abandon Otherthe WOTUS rule and start overProduction on aMgr.new rule-making Jeff process.

“Lawsuit or no lawsuit, we

need Congress to act,” said Bob Stallman, AFBF president. “We need legislation that requires an honest rulemaking from the EPA. The EPA water regulations must pro­­tect water quality without bulldozing the STALLMAN rights of Deadlines farmDate: Order: ers and others whose livelihoods depend onInternal: their ability to work Client: the land.” Print/Ship: BW’sco-plaintiffs to: AFBF’s include Colors to: Cattlemen’s Beef the National PDF to: Association, the National Corn Package to: Growers 1 Association and the 234567 National Pork Council, 8 9 10 Producers 11 12 as well as home and road construction groups.

Getting a first-hand view

Government’s avian flu response marred by poor communications

BY DIRCK STEIMEL

U.S. Rep. David Young, left, learned about crop damage from heavy rains and discussed other issues, including trade and government regulations, with members of the Dallas County Farm Bureau at the Dan Golightly farm near Booneville last week. Meeting with Young were, from left, Tanner Rowe, Jon McClure, Peter Wicks and Golightly. Young toured the Golightly farm to get a first-hand look at crop damage from heavy rains that drowned out acres of corn and soybeans in central Iowa and other parts of the state. PHOTO/TOM BLOCK

Poor communications and de­layed responses by federal agencies during the outbreak of avian flu in Iowa and Minnesota created confusion among farmers and others, contributing to the spread of the devastating disease, Iowa poultry farmers said last week during a hearing in Washington.

“I cannot stress enough how much we believe that the lack of clear and concise communications created the confusion that we specifically saw in Iowa and Minnesota,” said Brad Moline, a Manson turkey raiser on behalf of the National Turkey Federation.

“We firmly believe unclear communication contributed to the spread of this disease.”

Moline, a Calhoun County Farm Bureau member, testified at the Senate Agriculture Committee hearing on the response to the out-

Federal aid denied

Bangladesh leader chosen for 2015 World Food Prize Sir Fazle Hasan Abed of Bang­ladesh has been named the 2015 winner of the World Food Prize, the most prominent global award for individuals whose breakthrough achievements alleviate hunger and promote global food security. The award ceremony will be in October in Des Moines.

The prize honors Fazle’s unparalleled achievement in building the unique, integrated development organization BRAC, which is headquartered in Bangladesh and operates programs in 10 other countries around the globe. Since he created it over 40 years ago, Fazle’s organization has provided the opportunity for nearly 150 million people worldwide to improve their lives.

break of highly pathogenic avian influenza or HPAI. The hearing on avian flu was requested by Iowa Sens. Charles Grassley and Joni Ernst.

Iowa, the nation’s top egg-producing state and a major turkey raiser, was hit hard by the avian flu outbreak during the spring.

Iowa has had 77 sites, with more than 32 million birds, impacted by the disease.

Agricultural economists estimate that the avian flu outbreak cost Iowa’s economy $1 billion.

Moline, whose farm had to euthanize more than 56,000 turkeys in 12 grower barns, said state and local governments missed critical opportunities to meet with farmers and develop a plan. “This would have gone a long way in avoiding the mass confusion we experienced in Iowa,” he said.

Jim Dean, a Sioux Center egg farmer and chairman of the United Egg Producers, urged changes in the U.S. Department of Agriculture’s (USDA) indemnity program to help offset the value of egg production.

Egg farmers stagger the age of birds to smooth out production, he said, so it takes egg farms that had to be depopulated an extended period to return to full production. During that time, the farms continue to have costs for labor, utilities and other supplies, but don’t have the revenue to cover those costs, Dean said.

John Clifford, USDA’s chief veterinary officer, defended the department’s response, saying it has committed $500 million and about 3,400 staff and contractors to aid states hit by avian flu.

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The federal government last week denied a request by Iowa Gov. Terry Branstad to declare a presidential disaster declaration in Buena Vista, Sioux, Webster and Wright counties, which were hit hardest by the outbreak.

Grassley expressed disappointment that Branstad’s request for a disaster declaration was denied.

He noted that the Senate hearing clearly showed that the avian flu outbreak caused a significant magnitude of damage throughout the state.

“Granting a disaster declaration would have made several forms of federal assistance available to these producers,” Grassley said. “Iowa has suffered great losses from this catastrophic outbreak, and I’m very disappointed that a disaster declaration wasn’t granted to help deal with the impact.”

Iowa Agriculture Secretary Bill Northey also expressed disappointment at the federal decision. “The governor’s request would allow much needed federal resources to come into the state to assist farmers and others who have been impacted,” he said. “Our department will continue to work close with the farmers impacted, local officials, other state agencies and our federal partners as farms continue the cleaning and disinfection process and move toward repopulation of these facilities.”

6 JULY 15, 2015 IOWA FARM BUREAU SPOKESMAN

News in USDA reports drives crop prices higher

T

he U.S. Department of Agriculture (USDA) lowered its estimates for both corn and soybean ending stocks in its monthly report on world crop supply and demand. That news, along with recent acreage updates and weather concerns, has driven prices for corn and soybeans higher.

Corn beginning stocks for 2015/16 were projected lower at 1.78 billion bushels, down 97 million bushels. Corn production for 2015/16 is projected down 100 million bushels, at 13.53 billion bushels, reflecting the lower planted and harvested areas from the June 30 acreage report. Corn ending stocks for 2015/16 are projected 172 million bushels lower at 1.59 billion bushels.

Projected season-average prices received by producers for 2015/16 are higher for all the feed grains, with corn up 25 cents to $3.45 to $4.05 per bushel. At $3.60 to $3.80 per bushel, the 2014/15 corn price range was raised 5 cents on both ends.

Soybean production

Soybean production is projected at 3.88 billion bushels, up 35 million due to increased harvested area, the USDA said. Despite increased production, soybean sup-

plies are reduced 40 million bushels on account of lower beginning stocks, which are estimated at 255 million bushels. Soybean ending stocks are projected at 425 million bushels, down 50 million.

Soybean exports are projected at 1.82 billion bushels, up 15 million, reflecting shipments and sales through early July. Soybean ending stocks for 2014/15 are projected at 255 million bushels, down 75 million from last month.

The U.S. season-average soybean price for 2015/16 is projected at $8.50 to $10 per bushel, up 25 cents on both ends of the range.

Soybean meal prices are projected at $315 to $355 per short ton, up $10 on both ends.

Acreage, stocks reports

Iowa farmers are taking advantage of higher price movements following the USDA’s release

of the grain stocks and acreage reports, Chad Hart, crops market specialist at Iowa State University, said last week.

Corn prices saw a 30-cent move­ment higher, while soybeans moved 50 cents higher following the reports.

“A lot of farmers indicated at a recent meeting they had made sales in the last two weeks,” he said.

“They took advantage of the price rally.”

The USDA estimates that 88.9 million acres of corn were planted in the United States in 2015, down 2 percent from 2014 and the lowest since 2010. In Iowa, 13.7 million acres were planted, the USDA said in its report. This was unchanged from 2014.

Meanwhile, the USDA estimated that a record 85.1 million acres of soybeans had been planted in the United States. The USDA said 10 million acres of soybeans had been planted in Iowa, up from 9.9 million in 2014.

The USDA’s grain stocks report said 4.45 billion bushels of corn were being stored in the United States, up 15 percent from June 1, 2014. More than one-half of the total (2.28 billion) was being stored on farms. There were 480 million bushels of corn being stored on Iowa farms as of June 1.

There were 625 million bushels of soybeans being stored in the United States as of June 1, the report said. On-farm stocks totaled 246 million bushels, up 126 percent from 2014.

Weekly Average Price Comparison Price comparisons: Week ending: 07/10/2015 06/12/2015 07/11/2014 Cattle - National 5 Area Confirmed Sales 42,589 9,643 83,383 5 Area 65-80% Choice Steers: Wtd Avg. $151.02 $155.00 $155.73 Average Weights (Estimate) Cattle 1336 1334 1310 Boxed Beef Choice 600-750 (5 day avg.) $236.98 $245.72 $251.79 Boxed Beef Select 600-750 (5 day avg.) $233.99 $240.42 $244.84 Five Day Average Hide and Offal Value $12.08 $13.58 $15.58 Cattle - Interior Iowa – Minnesota Supply: 24,582 1,133 24,520 Average Price Choice Steer: Live Basis $151.93 NA $155.49 Average Price Choice Steer: Dressed Basis $239.85 NA $145.00 Feeder Steers at River Markets (Neb. Feedlots) #1 Muscle Thickness 500-600# $294.58 NA $282.39 #1 Muscle Thickness 700-800# $241.45 NA $227.90 Hogs -- Interior Iowa – Minnesota ISM Friday Weighted Average Carcass Price $78.28 $77.80 $131.28 Average Weights (Estimate) Hogs 279.0 282.1 284.2 Sows 1-3 300# and up: Average Price $34.30 $32.36 $77.19 Pork Loins 1/4” trimmed 13 - 19 pound $108.74 $117.00 $166.57 51-52% 200 pound Pork Carcass (5 day avg.) $80.73 $85.24 $133.76 Feeder Pigs: National Direct Delivered Feeder Pigs 10 Pounds Basis - Wtd Avg. $22.58 $24.90 $75.55 Feeder Pigs 40 Pounds Basis -- Wtd Avg. $41.87 $52.59 $119.13 Sheep -- National Slaughter Lambs Negotiated Sales 3,600 3,800 4,700 Choice & Prime Wooled and Shorn 130 -150 lbs $158.00 $170.00 $152.00 Iowa Large Eggs (cents per dozen) $1.66 $2.15 $1.05 Young Hen Turkeys: 8 -16# -- Eastern (cents/lb) 118.17 114.40 108.59 *Iowa Ethanol Prices $/gal $1.55 $1.45 $2.10 Futures: Corn $4.35 $3.53 $3.86 State Average Cash Corn Price $3.90 $3.31 $3.72 Basis -$0.45 -$0.22 -$0.14 Futures: Soybean $10.32 $9.40 $12.33 State Average Cash Soybean Price $9.94 $9.13 $12.71 Basis: -$0.38 -$0.27 +$0.38 Slaughter Under Federal Inspection Estimates Estimates Actuals Hogs: 2,043,000 2,097,000 1,861,000 Cattle: 542,000 534,000 569,000 Sheep: 38,000 35,000 42,000 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

There were 125.5 million bushels of soybeans being stored in Iowa, the report said.

Weather affects prices

Weather-damaged corn and soybean fields are also harmful to hog farmers, says Chris Hurt of the department of agricultural economics at Purdue University.

“Rising feed prices mean higher costs of production for the pork industry,” Hurt wrote in an article on the university’s website (http:// bit.ly/1HInORB).

Recent increases in corn and soybean meal prices have increased production costs by about $3.50 per live hundredweight, or by nearly $10 per hog, Hurt noted. The cost of production had dropped to $50 per hundredweight in mid-June. With

current higher feed prices, costs are expected to be closer to $53.50 for the last half of 2015 and the first half of 2016.

“Remember that feed prices can still change considerably depending on weather for the rest of the growing season,” Hurt wrote.

China’s beef demand

China’s demand for beef is expected to grow in the next decade, Rabobank said in a recent report.

The Chinese market is expected to consume an additional 2.2 million tons of beef each year, increasing the total demand from 8 million tons to 10.2 million tons by 2025, Rabobank said. The average beef price has been around $10 per pound­­, four times higher than in 2000, the report noted.

CME Class III Milk Futures Closing prices July 10, 2015

Contract

Settle Last Week

Contract

July 2015 August 2015 September 2015 October 2015 Spot Prices Block Cheese Barrel Cheese Butter NFDM Grade A

$16.40 $16.15 $16.61 $16.50 $16.59 $16.63 $16.57 $16.70

November 2015 December 2015 January 2016 February 2016

$16.58 $16.61 $16.37 $16.35

Milk Prices July Class III July Class IV

$16.40 $13.63

$1.7250 $1.6600 $0.9200 $1.7950

Settle Last Week $16.75 $16.70 $16.50 $16.20

Iowa Hay Auctions Dyersville, July 8

Hay, large squares, good, $100-160; fair, $72.50-85; large rounds, good, $80-100; fair, $50-75; utility, $22.50-47.50.

Straw, large squares, good, $43-46.

Mixed, large squares, good, $85-145; large rounds, good, $70-95.

Mixed, large rounds, good, $65-90.

Ft. Atkinson, July 8

Hay: small squares, 1st crop, $50-100; 2nd crop, $45-140; large squares, 1st crop, $40-105; large rounds, 1st crop, $35-80; 2nd crop, $50-60.

Oats: large rounds, $40-45.

Straw: large squares, $110-115.

Grass: small squares, $45-85; large rounds, $45-70.

Perry,** June 27

Alfalfa, small squares, premium, $7-8; good, $4.50; large squares, premium, $45; good, $40; large rounds, premium, $70; good, $45.

Grass, small squares, premium, $3.50; good, $2.50; fair, $2; large rounds, premium, $45; good, $35; large squares, good, $40; fair, $30.

Straw, large squares, $25; small squares, $3.

Rock Valley, July 9

Alfalfa, large squares, premium, $130135; good, $110-125; fair, $80-92.50; large rounds, good, $95-115.

Grass, large rounds, good, $110-115; fair, $80-97.50; utility, $30-75.

Mixed, large rounds, fair, $75-90.

Corn stalks: large rounds, $50-62.50.

Oat hay: large rounds, $52.50-85

Yoder/Frytown,** July 8

Alfalfa, large rounds, $27.50-35; small squares, $2-3.

**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

Farmers planning for new-crop sales should monitor basis for October/November delivery at their buyers. In this week’s graph, an example new-crop market for delivery to Des Moines is used to compare 2015 harvest basis to the most recent five-year average. 2015 new-crop bids at this location are 40 to 45 cents below December futures, which is weaker than the five-year average (shown by the red line). Farmers intending to sell in the harvest period should look at their own delivery bids and fashion a plan that includes price and basis goals. Crop size locally and local demand play a big part in basis levels.

IOWA FARM BUREAU SPOKESMAN

Wheat sentiment shifting favorably

T

he wheat fundamentals stack up in a manner that suggests improved price potential ahead. With feed, food and trade implications considered, wheat can become a leader for all of the grains if prices continue to move higher.

U.S. wheat growers have been through just about everything again this growing season — from drought and extreme temperature swings this winter taking the top end off yields to excessive rainfall causing quality issues and harvest delays this spring. Producers outside of the United States now have greater weather risk to factor in as well.

A heat wave currently threatens wheat in Europe, with record high temperatures being recorded in parts of the U.K., Germany and France. Hot, dry weather is also reaching into the Black Sea region, where Russia and Ukraine have plenty of acres planted to wheat.

El Nino is in the mix this year and has the potential to wreak havoc on crops in the Southern Hemisphere. Planting efforts in Argentina are being thwarted by very dry soil conditions, and estimates for production continue to fall as a result. Australia may not have had the same trouble getting wheat planted, but dry weather is already a concern there as well.

Supply-side considerations are leaning less bearish than they were just a few months ago, but the outlook for U.S. demand remains tepid.

Food use is projected to rise only slightly on the year, feed use is minimal and exports are struggling.

Food and feed usage are relatively static year-to-year. Exports are the wild card. Sales didn’t make a strong finish to the 2014/15 marketing year and have not started off the new year very well either.

Abundant stocks held by competitors and unfavorable currency terms have been the most significant headwinds for U.S. exports.

Production hiccups possible

U.S. exporters will have to rely on global production scenarios shaping up in their favor. As the residual supplier to the world, U.S. exporters would benefit from any production hiccups that might occur abroad. Weather worries for the major world exporters currently make those potential production hiccups more likely.

A strong dollar may not be here to stay. Traders have already priced in an imminent U.S. interest rate increase. A Greek debt deal has the potential to take significant pressure off of the euro and would reduce the attractiveness of the dollar as a safe-haven play. Terms of trade for U.S. grain exports will improve if the dollar moves down from here.

U.S. Department of Agriculture (USDA) analysts look for the world wheat crop to produce 722 million metric tons in 2015, down about 1 percent from output in 2014. Consumption is projected to total 714 million metric tons to leave 220 million in free stocks. At about 30 percent, the stocks-to-use projection is comfortable, but it is not necessarily burdensome.

Replace the word “wheat” with “corn” and the spirit still applies in all considerations above. The same fundamentals that may allow wheat prices to move higher relate similarly to corn. Watch wheat for signals on broader market potential.

475

2014 CROP: The $4.39 tar-

425

2015 CROP: A 10 percent sale was triggered on Friday as December futures touched $4.49.

FUNDAMENTALS: Wet weath-

er issues say harvested acreage will drop from current expectations or yield will. The USDA cut the carryout estimate on Friday from 1.771

December 2015 Corn

$4.16 $3.96 Corn futures have broken away from the downtrend that has guided prices lower since last fall. The move up has been sharp and swift, so futures are vulnerable to a correction. Look for futures to make a retracement of the recent rally once volatility related to the report fades. The December contract faces key resistance at $4.50.

375 350

325 7/10/14

10/8/14

1/8/15

4/10/15

billion to 1.599 billion bushels for 2015/16. Yield was unchanged from the previous report at 166.8 bushels per acre. World ending stocks came down 5 million metric tons from the June report. A weak pace for newcrop export sales may eventually become a headwind. The USDA’s export projection was cut by 25 million bushels last week. For now,

$3.62 1/2 Cycle Lows 20-week 40-week

7/10/15

10/8/15

40 30 20 10 0 -10 -20 Basis Chicago Futures

-30 8/14/14

11/4/14

1/28/15

4/20/15

7/10/15

production worries will outweigh sluggish demand to remain the main market driver.

1150

November 2015 Soybeans with 50-day moving average

1100

November soybeans bounced higher after making a 38% Fibonacci retracement of the June rally. Momentum indicators are still bullish for soybean futures, but the move may be losing steam.

1050

July futures to make a 10 percent sale, boosting your total to 85 percent complete. Look for prices to correct lower in the near term.

$10.40

1000

$ 9.85

950 900

2015 CROP: Leave an order

worries had been the supportive influence and look likely to remain a bullish catalyst for soybeans through July. Acres will go unplanted, and the crop in the ground is deteriorating in condi-

$4.50

400

2014 CROP: Target $10.75 basis

FUNDAMENTALS: Weather

with 50-day moving average

450

SOYBEAN STRATEGY

to price 10 percent if November futures hit $10.70. We still prefer to leave the majority of expected new-crop production open to upside price potential.

7

Cash Strategist Hotline: 1-309-557-2274

CORN STRATEGY get for September futures was hit on Friday for a 20 percent sale.

Remaining 2013 crop inventories should have been priced at this time. Although we expect another opportunity to price corn this summer, it may not come until the end of August. Manage your risk accordingly.

JULY 15, 2015

The fall high at $10.45 3/4 stands as resistance, but there is little above that to get in the way of a move to $11.

850 7/10/14

10/8/14

Cycle Lows 16- 18-week 3-year

1/8/15

$8.95 3/4

4/10/15

tion. Production forecasts are drop­­ping quickly. Traders are not buying the USDA’s current yield forecast, which on Friday’s report remained unchanged at 46 bushels per acre. Carryout dropped 50 million bushels to 425 million but was higher than most trade guesses.

Demand is turning tepid but will stay on the back burner for now.

The bullish shift in supply-side sen-

7/10/15

10/8/15

400

300 200 100 0 Basis Chicago Futures

-100 8/14/14

11/4/14

1/28/15

4/20/15

7/10/15

timent is a driver that can continue propelling prices higher, so better sales opportunities are thought to be ahead.

Iowa Corn & Soybean Basis CORN: (basis vs. September futures, 7/8/15) NW

SW

$3.85 NC $3.81 -0.31 -0.35 $3.83 SC $3.83 -0.33 -0.33

NE

$3.74 -0.42 SE $3.78 -0.38

SOYBEANS: (basis vs. August futures, 7/8/15)

NW $9.48 -0.49 SW $9.65

-0.32

NC

$9.54 -0.43 SC $9.60 -0.37

NE $9.63 -0.34 SE $9.79

-0.18

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.

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 6-29-15 — 15% sold @ $10.07

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.

JBS to buy Cargill pork for $1.45 million JBS USA Pork recently an­­ nounced it entered into an agreement with Cargill to acquire the company’s U.S.-based pork business for $1.45 million.

“The strength and success of Cargill’s pork team and hog suppliers, as well as its industry leadership in areas such as animal welfare, exports, bacon production and innovation, were significant and compelling factors that led us to pursue this acquisition and enhance our ability to serve our diverse, global customer base,” said Martin Dooley, president and chief operation officer of JBS USA Pork.

The agreement includes Carg­ ill’s five feed mills, including one in Iowa, its pork packing plants, including one in Ottumwa, and

Cargill’s four hog farms. The farms are primarily breeding, gestation and farrowing facilities that provide weaned pigs to nurseries and finishing facilities in Missouri, Iowa and Illinois, the company noted.

It’s too soon to know how the deal will impact Iowa hog farmers if at all, said Lee Schulz, livestock economist at Iowa State University Extension and Outreach.

“I think it’s very early to speak to what it means to the market and to producers,” he said.

However, a change in ownership means there’s a potential for changes, Schulz noted.

“It’s a change in ownership, and any time you have those changes, given different visions,

can have a longer-term impact,” he said.

Steve Meyer, vice president of pork analysis with Express Markets Inc. Analytics, said the purchase is a continuation of JBS’s aggressive buying worldwide.

“The purchase continues JBS’s aggressive buying of meat and poultry assets around the globe.

So the fact that they are buying is no surprise,” Meyer said. “This will be, I think, their first foray into primary hog production — at least on any scale as significant as this.”

Completion of the deal is subject to regulatory review and approval, the company noted. JBS first entered the U.S. pork market with the acquisition of Swift & Company in 2007.

8 JULY 15, 2015

IOWA FARM BUREAU SPOKESMAN

“Pretty much everything is looking green,” Kooiker said July 9. Corn was still a week or two from tasseling, but even fields planted after a rye cover crop were far beyond knee-high, he said. Soybeans have been sprayed and hay was between cuttings. He had about three-fourths inch of rain last week. Smoke from wildfires in Canada caused a couple of hazy days but seemed to clear up by the end of the week.

“Things look really good in the area.

We have corn that’s not very far away from tasseling,” Pope said July 9. The area missed out on heavy rainfalls, and crops have benefited from the moisture, he said.

Soybeans with a 30-inch row spacing are starting to close the rows, and fungicide and insecticide applications will begin soon. “If we can get a little warmer weather, that will push this crop right along,” Pope said.

“We really couldn’t look much better here. We’ve missed a lot of the big rains that other areas got, and that’s helped us,” Bader said July 9. Corn started to tassel early in the week, and soybeans are beginning to canopy, he said. “Farmers have taken advantage of drier periods to get their hay mowed and picked up,” Bader said. “I think they about got the second cutting wrapped up.”

Early-planted soybeans are starting to shade the rows, but later-planted beans “don’t look so hot. They’re pretty small,” Langbein said July 9. He cultivated some soybeans where waterhemp was starting to sprout again. Corn was starting to take off and looked close to tasseling, he added. A few farmers were starting to make second-cutting hay. He had 1.2 inches of rain last week.

Corn and soybeans are growing well in Peterson’s area, he said July 9. He expected corn to start tasseling in the next week.

“I’ve been doing a lot of scouting in corn and soybeans for diseases and insects,” he said. “There are signs of northern corn leaf blight. We’ll be pulling the trigger on fungicide applications in the near future.” Soybeans are flowering, but smoke from the wildfires in Canada has blocked some needed sunlight.

“Corn here is starting to tassel,” Prizler said July 9. “We just got finished dribbling on nitrogen, so the time was about perfect.” Soybeans are starting to flower, and fields planted on 15-inch rows have canopied, he said. Farmers are finishing up the second cutting of hay, Prizler said. “It’s a little short, but it’s good quality.” Rains have not been heavy but have caused delays in haying, he added.

“Crops are looking good around here. If you go a little south, it gets pretty dismal,” Bentley said July 9. Corn was near tasseling, and farmers were finishing up spraying soybeans last week. Bentley was also planning to make second-cutting hay. “I’m hearing reports of diseases coming in the corn and grasshoppers eating holes in soybeans,” he said. Monarch butterflies are also abundant, he added. He had about one-quarter inch of rain last week.

Some farmers in Brennecke’s area were finally able to finish planting soybeans last week. Corn looks good, and warmer temperatures and drier conditions have ben­ efited the crop. A three-day window of dry weather allowed farmers to cut hay this past week. Most of the oat crop has turned now, and Brennecke said she was waiting for the oats to dry before combining. They will use the oats for cattle feed, she said.

“We got blasted by rain this week,” Rinner said July 9. A storm on July 6 dumped anywhere from 3 to 7 inches in the area, filling terraces and washing over rural roads, he said. Corn and soybean fields still look pretty good, but there are definite wet spots showing up in many fields, Rinner said. “I’m sure we’re losing nitrogen in those.” Corn is starting to tassel, and farmers are struggling through a tough hay season.

Monsanto seeks to ease fears about Syngenta purchase Monsanto worked last week to win over farmers and investors in its proposed purchase of Syngenta.

Brett Begemann, Monsanto pres­ident, told farmers that if it does purchase Syngenta, the combined company would be operated from the United States

and enough Syngenta operations would be shed to ensure continued market competition for seeds and chemicals, according to a Reuters News Service article.

“There will be good competition. Whatever choice was available before the transaction, if there is one, will be available after

the transaction,” Begemann said in a presentation to the United Soybean Board (USB) in Des Moines.

Begemann’s appearance at the USB meeting was one of a series of presentations he and other Monsanto executives are making to shareholders and farmer groups

in Europe and the United States to ease fears over the St. Louisbased company’s $45 billion offer for Swiss-based Syngenta.

The merger sought by Mon­ santo, but so far rejected by Syn­ genta, has raised concerns among farmers about concentration in the suppliers of seed genetics and

Disease conditions may call for fungicide applications

BY TIM BERKLAND

As I traveled around the state this past week, I found more fields getting closer to tassel, which often brings on the question of fungicide application. Although this practice is commonly one of great debate, one situation in which many get BERKLAND behind this practice is when there is disease present.

A cooler and wetter season has already brought on some early sightings of northern corn leaf blight (NCLB), which many would agree was 2014’s “disease of the year” in corn.

Last year’s outbreak left many producers with a sour taste of just how devastating this disease can be, with some reporting yield reductions of 40 to 80 bushels per

CROPS TODAY acre in the most severe cases.

NCLB is a fungus that can last on corn residue for at least 12 months and prefers cloudy days with temperatures ranging from 65 to 81 degrees, high humidity and frequent rainfall. When conditions are favorable and spores are released from the overwintering source, they will infect the lower leaves first.

If favorable conditions persist and lesion development progresses more spores, around 25,000 to 100,000 spores per lesion can be released and carried by wind and rain splashing to other plants for infection. New lesions can form within days of spore infection depending on weather conditions.

Controlling NCLB involves a

multi-pronged approach, which first begins with scouting and correctly identifying the disease in your fields. Below are some key management considerations: Hybrid selection — Many hyb­ rids vary in resistance to this disease. Therefore, if you are planting into a field with known NCLB issues, selecting a hybrid with better resistance would be beneficial.

Residue management — Re­­ duc­ing the amount of residue at the soil surface is also part of an integrated management approach, especially in corn-on-corn situations in which the previous hybrid was infected.

Fungicide application — Many commercial fungicides are very effective on NCLB and show very positive yield results.

Many producers are likely past the first two management considerations leaving us to the third. If a fungicide was not in your original cropping plan but has since become a consideration due to

this disease, follow the guidelines below to help prioritize fields.

• Fields showing significant NCLB pressure on the ear leaf and above, especially if noted prior to tasseling.

• Hybrids with poor disease ratings.

• Persisting favorable weather conditions for NCLB. • Fields with a history of NCLB. • Corn-on-corn fields.

If you decide to apply a fungicide, be sure to follow manufacturer recommendations, and be conscious of the adjuvants you use. Certain adjuvants applied pre-tassel can cause arrested ear development. As always, be sure to consult your local agronomist for disease development updates in your area and management recommendations.

Berkland is a Growmark western region field sales agronomist.

His email address is tberkland@ growmark.com.

other key farm inputs. They worry the merger could limit choices and raise prices.

Selling off seeds

Begemann, according to Reut­ ers, reiterated the company’s plan to sell off all of Syngenta’s seed operations and to sell off some agrichemical assets, likely Syngenta’s Touchdown herbicide.

“We’ll likely keep Roundup and sell Touchdown,” said Begemann.

He said Syngenta’s seed treatment business was one example of an area where Monsanto currently falls short.

“Our crop protection is limited to basically Roundup and a few other corn grass herbicide products,” said Begemann.

“We’ve done some work in soybeans and corn where we have our own seed treatment portfolios, but most of those molecules are coming from other companies, including our competitors in the marketplace.”

Begemann said that while a merged entity might be domiciled in Europe to make the deal more appealing to European shareholders worried about tax implications, operations would be operated from Monsanto’s current home base in St. Louis.

“It’s not going to be run from Europe. It’s going to be run from here. Where we’re domiciled doesn’t mean anything,” Begemann said.