Stateap12015 by Iowa Farm Bureau

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

APRIL 1, 2015 |

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

Brazil is building a beef powerhouse, IFBF tour shows BY TOM BLOCK Brazil could soon challenge the United States’ status as the leader in global beef production as it adopts more U.S.-style production methods, according to Iowa farm ers on a two-week study tour of the South American country. “I think their opportunity for growth is huge,” said Jason Brockshus, a Sibley dairy farmer who is among 22 Farm Bureau members learning about livestock production in the Brazilian states of Mato Grosso do Sul and Sao

Paulo during the 14-day study tour sponsored by Iowa Farm Bureau. “Their opportunity to grow, and the space and expanse of the coun try, to see it first hand is impres sive.” With 210 million head of cattle in 2014, Brazil’s national cattle herd is more than twice as large as the U.S. herd. The United States, however, produced 11.1 million metric tons of beef last year to rank first globally, while Brazil ranked second with 9.9 million metric tons of beef. Cattle ranching in Brazil today

is still primarily a grass-based sys tem, with around 90 percent of the nation’s cattle herd finished on pasture. The slow gains typical of pasture-based systems mean cattle average about 30 months old at slaughter.

More feed grains But that is changing as Brazil’s production area of corn and soy beans grows. Farmers and ranch ers are adopting more integrated systems raising crops and cattle in a 12-month cycle made possible by a tropical climate that allows

production all year long. The farm manager at Sape Farm near Maracaju in Mato Grosso do Sul explained that his farm is rais ing four crops a year — begin ning with soybeans, the primary cash crop with yields averaging 50 to 60 bushels per acre. After the soybeans are harvested, he plants corn interseeded with grass. When the corn is harvested, the grass is ready for his cattle to graze through the winter months. Corn yields are only 80 to 100 bushels per acre, but low inputs make it profitable and the crop

Lawmakers pledge to work to stop WOTUS

Multi-pronged approach Rep. Mike Conaway, a Texas Republication who chairs the House Agriculture Committee, said the House would use both stand-alone bills and provisions in appropriations bills to stop or defund the WOTUS rule. “This is just a tremendous overreach of the EPA’s authority and needs to be stopped.” The WOTUS proposal, intro duced by the EPA and Corps in spring 2014, seeks to rede fine what constitutes a water that should be regulated under the federal Clean Water Act. Farm groups and others fear the rule will drastically expand the definition to cover ditches, ponds and other areas that are wet only parts of the year and would force farmers to WOTUS PAGE 2

BRAZIL PAGE 2

Hog farmers reflect on future challenges, opportunities A layover at the airport led to talk about the farmers’ future.

BY DIRCK STEIMEL Farm state lawmakers last week pledged to use every legislative tool at their disposal to try to stop the current Waters of the United States (WOTUS) from being en acted by the Environmental Pro tection Agency (EPA) and the U.S. Army Corps of Engineers. “We are going to try any way we can to stop this thing leg islatively,” said Rep. Collin Peterson, a Minnesota Democrat and ranking member of the House Agriculture Committee. “This is just a bad idea.” Speaking in Washington, D.C., to Farm Bureau members from Iowa, Minnesota, Missouri and Texas, Peterson and other law makers said they would use rules and appropriations in an attempt to block the WOTUS rule. The lawmakers also discussed trade issues, country of origin labeling and their opposition to mandatory labeling for foods made with bio tech crops in their discussion with Farm Bureau members.

adds organic matter for cattle graz ing. “One of the things that has been eye-opening is the role of corn in beef production here,” said Iowa Farm Bureau Research and Commodities Director Dave Miller, who is leading the trip. “There’s a lot of corn planted behind soybeans that they actu ally seed grass with it. The idea is to take off the corn crop and then have three to four months’ worth of grazing available with very

STORY ON PAGE 3

Researchers continue to investigate pit foaming Iowa farmer raises awareness about dangers of manure pit foaming after a barn explosion. STORY ON PAGE 4

Newly-elected Iowa Rep. Rod Blum discusses issues with Iowa Farm Bureau Federation (IFBF) members last week in Washington, D.C. From left are Nikki Schulte; Dean Darling; Kevin Sprung; Craig Hill, IFBF president; Kevin Kuhle, IFBF national policy advisor; Don Petersen, IFBF director of government relations; Joe Heinrich, IFBF vice president; Carlton Kjos, IFBF District 1 director; and Mary Kay Thatcher of the American Farm Bureau Federation PHOTO/DIRCK STEIMEL

FB members urge lawmakers to protect crop insurance BY DIRCK STEIMEL

owa Farm Bureau mem bers last week strongly urged the state’s Con gressional delegation to protect crop insurance programs from budget cuts that could weak en the vital safety net for farmers. “It’s really an essential tool for us now,” Darrick Hall, a Jones County Farm Bureau member, told Iowa Sens. Charles Grassley

and Joni Ernst at meetings in Washington, D.C. “We’re paying the premiums and have a lot of skin in the game, and we don’t want the government to pull back and weaken the program.” Hall was among a group of 31 Iowa Farm Bureau members who traveled to Washington last week to meet with Iowa lawmak ers about key issues. The twice-ayear lobbying trip is designed to highlight key issues to the Iowa

delegation and to solidify support for Farm Bureau positions. Along with emphasizing the need to protect crop insurance, the Farm Bureau members pushed for ditching the proposed Waters of the United States (WOTUS) rule, urged lawmakers to pass Trade Promotion Authority (TPA) to smooth the way for free trade agreements and urged lawmak LOBBYING PAGE 2

Bill would regulate GMO labeling AFBF supports a bill to establish national standards for non-GMO food labels. STORY ON PAGE 5

FARM PROGRAM SIGN-UP DEADLINE EXTENDED

GLYPHOSATE REPORT NOT BASED ON SCIENCE

Agriculture Secretary Tom Vilsack last week extended the deadline for farm program sign-up to April 7, 2015. Farmers will need to choose between Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC), the safety-net pro grams established by the 2014 farm bill. The final day to update yield history or reallocate base acres also will be April 7, 2015. The farm program decision will be locked in through 2018. The additional week will give producers more time to visit their local Farm Service Agency offices and make their decisions, Vilsack said. Farm Bureau held a series of farm bill information sessions in late 2014 and early 2015. To access information on farm bill choices, recorded segments and charts go to www.iowafarmbureau.com/farmbill

Monsanto and ag groups say a report last week by the World Health Organization’s International Agency for Research on Cancer lacked any backing in science, and the company demanded a retraction. “We are outraged with this assessment,” said Robb Fraley, Monsanto’s chief technology officer. “This conclusion is inconsistent with the decades of ongo ing comprehensive safety reviews by the leading regulatory authorities around the world that have concluded that all labeled uses of glypho sate are safe for human health. This result was reached by selective ‘cherry picking’ of data and is a clear example of agenda-driven bias.” The National Corn Growers Association president added the move “ignores the findings of more than four decades of credible scientific research” while creating “unnecessary fear and confusion.”

APRIL 1, 2015 IOWA FARM BUREAU SPOKESMAN

BRAZIL

market is primarily a price-driven market on beef rather than a qual ity market. “But one of the things we’ve heard is that over the next five to 10 years, that may change, and the Brazilian beef market may become more of a quality-driven market rather than just a price-driven mar ket. We did see one herd that is starting to breed some Angus into their Zebu breed to improve the quality.” The Iowa groups also learned that a shift is occurring and feed lot finishing is increasing by 6 to 7 percent annually in Brazil, adding weight to the cattle more quickly and shortening the produc tion cycle.

FROM PAGE 1

good pastures through the winter as part of that rotation.” The year-round system is fea sible for much of Brazil, except perhaps the extreme south, where temperatures are more comparable to Iowa, Miller said. Brockshus said the intensive ly-managed system will allow Brazilian farms to increase their production of crops and cattle simultaneously. Brazil’s farming structure, where managers often oversee multiple farms with dif ferent owners, will help the idea spread, he said. “I talked with the manager here today, and he says he thinks this can be replicated,” Brockshus said. “They’re encouraging the oth er clients they work with to do similar types of things. It probably involves some education to get the other producers on board, but that’s the same as anywhere.”

Pasture management Some of the more progressive Brazilian cattle ranchers are also increasing their pasture manage ment in order to increase cow numbers. At the Mateberei farm near Tres Lagoas, pasture reno vations with new grass varieties and improved fertilizer manage

LOBBYING FROM PAGE 1

ers to make key tax credits per manent. The Iowa members also thanked the Iowa lawmakers for their continued support for the Renewable Fuels Standard (RFS) and urged them to stand up for national uniformity on labeling of biotech crops. Although crop insurance is considered the most important part of the farm safety net in the farm bill passed in 2014, the program continues to come under fire from some lawmakers and others in Washington, said Mary Kay Thatcher, senior direc tor of Congressional relations for the American Farm Bureau Federation (AFBF). She told the Iowa Farm Bureau members that there have been various attempts to weaken crop insurance by weakening the har vest price option, putting a cap on premium subsidies or imposing other limitations. “It’s going to have a target from now on because some people want to cut back the premium subsidies,” Thatcher said. The Farm Bureau members urged the Iowa delegation to hold firm and resist cuts to the crop insurance program. “Crop insur ance is a critical program, and I really see that from the lending side,” said Adair County Farm Bureau member Clark Dolch, who is branch manager at the Farmers and Merchants State Bank in Orient. “We need to make sure that it’s protected, especially now that we have tougher times in agriculture,” he said.

JBS feedlot manager John Paul, center, discusses evolving cattle feeding operations in Brazil with Iowa Farm Bureau members on a market study trip to the Latin American ag powerhouse. The Farm Bureau members, from left, are Nathan Crane, Allen Burt, Erin Bradford and Robert Shearer. PHOTO/TOM BLOCK

ment have allowed the owners to increase stocking rates from one cow per hectare (2.5 acres) to 4 cows per hectare. That will go a long way toward maintaining, or even increasing, Brazil’s cow herd even as farm ers convert pastures into crop land, said Rebecca Dostal, a Tama County cow-calf farmer. “They’re putting more cattle on less land with an intensive graz ing program, just like we are,”

she said. “With more forage, that will allow them to graze more animals.” Most of the country’s cattle are from the Zebu or Nelore breeds, which are very heat tolerant but produce a leaner, tougher beef with less marbling than breeds favored in the United States like Angus or Hereford. The slower growing pasture-finished cattle are also marketed at a lighter weight than in the United States, produc

ing average carcass weights of 650 pounds. One drawback to raising higher quality beef is that Brazil currently lacks a price incentive for higherquality cattle, and consumers are reluctant to pay higher prices for better beef, Brazilian cattle ranch ers said.

Kevin Sprung, a Mitchell County Farm Bureau member, agreed. “It’s a good program now and it works, even if we don’t get payments from it very often,” he said in a visit with Rep. Rod Blum. “It’s important to keep it from taking cuts.”

ers would need would be outra geous,” Turner said.

WOTUS

Opposition to WOTUS The Iowa Farm Bureau mem bers also reiterated their strong opposition to the WOTUS rule proposed by the Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers. Farmers fear that the proposal will greatly expand the definition of the WOTUS under the Clean Water Act to ditches, ponds and low spots, forcing them to obtain permits for normal activities, such as fertilizing or applying pesti cides. The Iowa Farm Bureau mem bers urged the Iowa delegation to support a measure pending in Congress to cut EPA funding to administer the proposed WOTUS rule. These measures are impor tant because there is a danger that the EPA will try to “short circuit” the process and get the proposal enacted quickly, said Don Parrish, AFBF’s senior director of regula tory relations. The WOTUS proposal “is a huge deal for everyone in agricul ture,” Joe Turner, a West Potta wattamie member, said during a meeting with Iowa Rep. David Young. Turner operates an envi ronmental consulting firm for livestock farmers, so he’s very familiar with the cumbersome regulations required by the EPA. “It looks like they are going to try to regulate every drop of water, and the documentation that farm

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Trade promotion The Iowa Farm Bureau mem bers pressed the Iowa delegation to support the TPA measure, likely to be introduced in Congress this spring. TPA, if renewed, allows Congress to consider, but not amend, trade agreements that the administration negotiates. It is considered by trading partners as a serious signal that the United States is moving forward on trade negotiations, such as the pending Trans Pacific Partnership (TPP). “TPA is really the key to get ting any trade deals, and we need them to continue to build our exports,” said Don Niebuhr, a member from Monroe County. “These trade deals are important to the entire U.S. economy, and especially to agriculture.” Sprung, of Mitchell County, said trade deals like the TPP are becoming even more important as the world’s grain stockpiles continue to grow. “We are now in a surplus situation in most of the world, and we need to have more places to sell our products.” Winneshiek County Farm Bur eau member Dean Darling urged the delegation to support tax treat ments that are important to agri culture, such as the section 179 expensing, bonus depreciation and stepped-up basis, as well as a repeal of the estate tax, often called the death tax. In addition, he urged lawmakers to make the tax rules permanent, instead of the current practice of passing them at the end of the calendar year. “These tax issues are even more important now because we’re going from $7-per-bushel corn to $3.50,” Darling said. “Our margins are so much tighter, and we don’t have the flexibility we had before.” Making tax rules predictable is essential for most Iowa farms that are developing a transition plan to the next generation, Dolch said. “We’ve seen that in our own family. It’s just so hard to develop a plan when you don’t know what the tax laws will be in the coming years,” he said.

Price-driven market “The farmers here understand their market,” Miller said. “The

FROM PAGE 1

apply for permits to do ordinary farm activities, such as fertilizing or applying pesticides.

Senate action In a non-binding resolution, the U.S. Senate voted 59 to 40 to say that WOTUS rules do not apply to puddles, irrigation ditch es and wastewater systems. Texas Sen. Ted Cruz was absent, but it is assumed he would have voted in favor, giving the measure a filibuster-proof 60 votes. American Farm Bureau Fed eration President Bob Stallman applauded the Senate’s push against the EPA rule. “The Sen ate action amplifies the spirit our farmers and ranchers have conveyed over the past year of the need to ditch the egregious WOTUS rule,” he said. Missouri Sen. Roy Blunt said the WOTUS proposal could be the EPA’s final biggest overreach ever and farmers aren’t the only ones rising in opposition to it. Builders, developers and local governments also foresee tremendous problems with the WOTUS proposal, he said. In addition, Blunt added, the EPA is asking for such broad authority under WOTUS that the agency would likely be over whelmed if the proposal is ever

Infrastructure issues A substandard road system, at least by U.S. standards, is anoth er challenge facing Brazil cattle ranchers. Typical dirt roads lead ing to most cattle ranches consist of powdery red soil that isn’t well maintained and is often marked by deep ruts and washouts. A sixmile trip to one cattle farm took more than 30 minutes with the tour group crowding into pickups and smaller vehicles to make the trek. “What we’ve seen is probably what we’ve expected,” Miller said. “The primary infrastructure is OK, but it’s not up to U.S. standards.” enacted. “There is just no way they could ever manage it.” Texas Sen. John Cornyn told the Farm Bureau members that WOTUS is just an example of administrative agencies that are out of control today. “We del egated too much authority to them, and they are not account able. They write the rules, enforce the rules and when you want to appeal, they are the appeals court too. That is a basic denial of due process.”

TPA prospects Congress will also need to do a heavy lift to pass Trade Promotion Authority (TPA) said Conaway, the House Ag Committee Chair. “If we are going to have any trade deal, we are going to have to have TPA, but there is a lot of misinfor mation out there that we are going to have to overcome,” he said. Conaway said he was encour aged that farmers had been out front, pushing lawmakers to approve TPA. “You’ve done a good job of inserting yourself in the process,” he said. T h e Tex a s C o n g r e s s m a n also said Congress would have to rewrite mandatory country of origin (COOL) rules if the World Trade Organization deter mines they are not allowed. The international body earlier sided with Mexico and Canada against COOL and is now considering a U.S. appeal.

Budget process remains idle The Iowa budget process con tinues to idle, and there will likely be no movement in any of the budget subcommittees until State Supplemental Aid (allowable growth) is finalized. Farm Bureau will continue to advocate that the state’s budget should include adequate funding for water quality and soil con servation programs, including the Iowa Nutrient Reduction Strategy (Water Quality Initiative), the Conservation Cost-Share Pro gram, and the Ag Drainage Well Closure Program. Senate File 227, a school startdate bill, was amended on the

ISSUE UPDATE House floor to include language prohibiting schools from begin ning their school calendar any sooner than Aug. 23. Senate File 227 passed the House 71-29 and passed the ini tial Senate vote, but has not been sent to the governor because it is under further consideration. Farm Bureau supports the new proposed start date.

Editorial

IOWA FARM BUREAU SPOKESMAN APRIL 1, 2015

Farmers always have the farm on their minds, travel experience shows (nearly 1,000 head) has four wells, and they’re all fine. But if we go another three to four years with little rain, what happens when your wells start drying up and they can’t find more water?” Dry weather or severe weather wreaks havoc on crops too, Carney said. He said he had crops wiped out by hail last year. Juergens said weather affects the prices and availability of inputs, like corn, for hog farmers.

BY BETHANY BARATTA

recently traveled to San Antonio for the Nat ional Pork Industry For um. Other Iowa farmers, Sam Carney and Aaron Juergens, were also traveling to the meeting, so naturally they talked farm while we waited for our delayed connection to Chicago. Another farmer, Jeff Schon, CARNEY was traveling with his wife to Florida via the Des Moines Airport. He knew Juergens, so he joined the conversation. In talking with the three farmers, I was quickly reminded that farmers think constantly about their farms. Leaving the farm for a trip means delegating chores to family and hired employees, but things like marketing decisions, weather and concerns about regulations follow farmers wherever they go. “I think packer capacity is going to be a big thing,” Juergens, a Carroll County Farm Bureau member, said. Juergens is the director of Iowa operations for GSC Agribusiness in Carroll. The company owns and manages 8,500 sows farrow to finish in Iowa, partnering with 35 production partners in the state. It also has livestock operations in

Passion for ag

Nebraska and Georgia. “I think that’s going to be the biggest problem,” Carney, a Guthrie County Farm Bureau member, agreed. Carney raises hogs and cattle near Adair. He also grows corn and soybeans.

Into a tough cycle They agreed that the new slaughterhouse in Michigan will help alleviate the packer capacity issue, but that plant isn’t scheduled to open until 2017 or 2018. “We could go through a tough cycle,” Carney said. The men agreed that demand from export partners is strong, but the value of the U.S. dollar could

slow this demand. “I do think our demand is there. I’m not worried about demand because I think our exports — unless the value of our dollar gets too high — I think we’re doing some great things in this export market,” Carney said. So what keeps these farmers up at night? What do they worry about? “Weather,” Schon said. A Carroll County Farm Bureau member, he raises hogs and grows crops near Glidden. His son, Lee, operates a cattle feedlot. Just three years after the drought of 2012, it’s still fresh on his mind. “My son with that many cattle

Whether it’s changes in trucking regulations or feedlot management and design, the farmers wonder how government regulations might change the way they do business. But despite the concerns, the farmers said they’re committed to farming. It’s been their life, their passion, and they wouldn’t trade it for anything. “I wouldn’t do anything else,” Schon said. “My dad did it his whole life; his dad did it his whole life.” Carney agreed. “I’ve been doing it since I was a little kid. The next generation is following me, and I hope the sixth generation will someday.” Juergens said the opportunities in agriculture are endless. “I love working in agriculture,” he said. “There are so many unique opportunities within the industry. There’s nothing more rewarding than providing food and nutrition worldwide.”

Game introduces players to cattle production chain A new beef heritage game, “The Steaks Are High,” was recently launched on the myamericanfarm. org website. In this game, users pick an avatar character from the beef industry and explore the beef production process from the cow-calf operation to livestock auction to stocker ranch and finally to the feedyard. The game reinforces national learning standards for mathematics. It introduces users and their families to how farmers and ranch-

ers care for their animals and the environment. The game is supported by an online eComic lesson plan and activity sheet. The beef checkoff program funded development of the game and supporting resources. The beef checkoff program (MyBeefCheckoff.com) was established as part of the 1985 U.S. Farm Bill. The checkoff assesses $1 per head on the sale of live domestic and imported cattle, in addition to a comparable assessment on

imported beef and beef products. In states with qualified beef councils, states retain up to 50 cents of the dollar and forward the other 50 cents per head to the Cattlemen’s Beef Promotion and Research Board, which ad ministers the national checkoff program, subject to Agriculture Department approval. My American Farm is an educational game platform launched in 2011 to engage pre-K through fifth-grade learners in agriculture. Today, the free site offers 20 agri-

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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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.

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.

culturally themed games and more than 100 free educator resources, such as lesson plans, activity sheets and comics The My American Farm educational resource is a special project of the American Farm Bureau Foundation for Agriculture. The site and resources are made possible through the support of title sponsor DuPont Pioneer. To take advantage of the free My American Farm resources, games and activities, visit http://myamericanfarm.org.

Promising trade deals will be sunk without TPA BY DIRCK STEIMEL In the often messy and topsy-turvy world of international trade, there aren’t many sure things. Consumer tastes change, market patterns shift and political leadership turns over in nearly every country of the world. But even in trade there is one sure thing: The success of America’s free trade agreements, like the wideranging Trans-Pacific Partnership (TPP), are virtually impossible to finalize until Congress approves Trade Promotion Authority (TPA). Free trade agreements are critical to building overseas markets for farmers and creating jobs in rural Iowa, so it’s essential to pass TPA. Support for TPA approval was one of the key messages Iowa Farm Bureau Federation (IFBF) members brought last week as they visited the state’s Congressional delegation in Washington, D.C. As Monroe County Farm Bureau member Don Niebuhr said, “You just aren’t going to get anywhere without passage of TPA.” A bill enacting TPA is expected to be introduced after the Easter recess and, if passed, would allow Congress to consider, but not amend, trade agreements the administration negotiates. Passage is considered an essential “gateway” to trade agreements, because it shows other countries that the United States is serious about making a deal, said Dave Salmonsen, a trade expert with the American Farm Bureau Federation, who briefed the Iowa members.

Partners are waiting The need for TPA passage was underscored last week when the IFBF board visited the embassy of Japan, a big customer of American grains and meats that is expected to buy more if the TPP is enacted. “The passage of TPA is crucial to the final deal,” Naritoshi Takayama, the embassy’s agricultural counselor, told the IFBF board members. Leaders of the House and Sen ate, as well as President Barack Obama, support the passage of TPA. But even with bipartisan support Congressional passage is anything but a slam dunk. A TPA bill will face the trad itional opposition from labor groups, and in Washington’s hyperpartisan climate, it’s hard to know what other groups will come out against it. So it’s important for Iowa Farm Bureau members to keep up the pressure for passage. As a national leader in exporting soybeans, pork, corn and beef, Iowa has plenty to gain from the Trans Pacific deal. Conversely, our state would lose a tremendous opportunity if TPA fails and a very promising trade deal falls apart.

APRIL 1, 2015

IOWA FARM BUREAU SPOKESMAN

Researchers making progress on mysterious pit foaming BY BETHANY BARATTA Pig farmer Leon Sheets knows that pit foaming is a dangerous phenomenon. Heâ&#x20AC;&#x2122;s got the scars to prove it. Sheets, a Chickasaw County Farm Bureau member in Ionia, starting disinfecting an 8-foot-by40-foot area of a finishing barn on Sept. 14, 2014. The work area had slatted floors and was situated between four rooms in the building. The ventilation was on low. The room has no primary ventilation since itâ&#x20AC;&#x2122;s in between rooms. There was a little bit of foam visible in the pits, but it hadnâ&#x20AC;&#x2122;t reached the slats, Sheets said. â&#x20AC;&#x153;Somewhere in the process of getting the floor wet, I must have moved some foam and broke some bubbles,â&#x20AC;? Sheets said. â&#x20AC;&#x153;All of the sudden there was a â&#x20AC;&#x2DC;wooooom.â&#x20AC;&#x2122; A big ball of fire was surrounding me for a moment,â&#x20AC;? he said. He was able to fight some flames and make it outside. He remembers his back being extremely hot. He had polyester coveralls on and could see embers on his shoulders.

Leon Sheets, a hog farmer in Ionia, surveys the damage after pit foaming was linked to a fire at his barn last September. PHOTO/DARCY MAULSBY

He stopped, dropped and rolled and was able to shut off the power to the building at the breaker box. He called 911 and rode by ambulance to a hospital in Waterloo. He was transferred to the University of Iowa Hospitals and Clinics. Third-degree

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burns covered 20 percent of his body. Skin was grafted from his legs and thighs to heal his hands, arms and face. He spent 10 days in Iowa City and transferred to Covenant Medical Center in Waterloo for another nine days in rehabilitation. The fire damaged the barn. It was rebuilt and recently reopened. Sheets still doesnâ&#x20AC;&#x2122;t know what caused his pit to foam or how to prevent a future incident. â&#x20AC;&#x153;Everything was identical in that barn,â&#x20AC;? Sheets said. â&#x20AC;&#x153;Same pigs, same feed.â&#x20AC;?

Cause still unknown Itâ&#x20AC;&#x2122;s still unclear why some manure pits foam and others donâ&#x20AC;&#x2122;t. An ongoing Iowa Pork Producers

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A s s o c i a t i o n â&#x20AC;&#x201A; ( I P PA ) - f u n d e d research project shows fiber found in pig feed might be the key ingredient making manure pits bubble up through the slats. The research project involves nearly two dozen scientists at Iowa State University (ISU), the University of Minnesota and the University of Illinois, in addition to U.S. Department of Agriculture (USDA) scientists based at ISU. Sheets was a proponent of funding the pit-foaming research project when he was president of the IPPA in 2011. â&#x20AC;&#x153;I was pretty insistent we get something done, and that has not changed one bit,â&#x20AC;? Sheets said. Since July 2012, when researchers started on the $1 million IPPAfunded project, researchers have looked at feed ingredients and the chemistry behind the foaming. But theyâ&#x20AC;&#x2122;re still perplexed. â&#x20AC;&#x153;Attempts at correlating foaming versus non-foaming barns and multiple factors have been elusive,â&#x20AC;? said Steve Hoff, an ISU ag engineer. The researchers have discovered that carbon input plays a factor in biogas generation, which forms the bubbles. Researchers initially thought specific feed ingredients were the key to foaming. But, Brian Kerr, an animal scientist with the USDAâ&#x20AC;&#x2122;s Agricultural Research Service at ISU, says thereâ&#x20AC;&#x2122;s more to it. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s not a specific feed ingredient, but what that feed ingredient encompasses,â&#x20AC;? Kerr said. For example, he said, the problem might not be distillers grains, but the fiber in distillers grains. â&#x20AC;&#x153;We think that changing that

feedstuff, providing more carbon into that system, into that manure to feed our microbes, plays a big role in this (foaming),â&#x20AC;? said Dan Andersen, an ag engineer at ISU. Kerr said finer grinding of feed materials could increase feed digestibility and reduce the carbon output. In the third and final year of the project, researchers said they are looking at different factors and variables, looking for different correlations to pinpoint the causes of foaming. They will continue to look at potential mitigation options, they said.

Management strategies Andersen said researchers saw that using a proteinase, an enzyme used to break down the nutrients, has been successful in decreasing the amount of foam. â&#x20AC;&#x153;I think the simplest management strategy I would recommend is to try to pump your barn twice a year,â&#x20AC;? Andersen said. Farmers should take caution when working with pits, especially those that are foaming, Hoff said. He said igniters should be turned off; curtains should be opened. If thatâ&#x20AC;&#x2122;s not possible, fans and ceiling inlets should be utilized. Farmers should be aware of the dangers and understand that foaming and these accidents can happen anytime, Sheets said, making a fist to stretch the grafted skin on his hand. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t need any more barns going down,â&#x20AC;? he said. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t need any more people hurt. We donâ&#x20AC;&#x2122;t want any more pigs involved.â&#x20AC;?

IOWA FARM BUREAU SPOKESMAN APRIL 1, 2015 5

AFBF supports proposed food labeling bill BY DIRCK STEIMEL The American Farm Bureau (AFBF) and other farm organizations applauded a bill introduced in Congress last week to create national labeling uniformity on food made with biotech crops, often called GMO foods, and end the potential patchwork of state labeling laws. State-led mandatory food lab eling initi atives mislead consumers about the safety of GMO foods, even though there is no credible evidence linking a food safety or health risk to the consumption of them, said Bob Stallman, AFBF president. “These state labeling initiatives mask the benefits of biotechnology in food production and can lead to decreased food supplies,” he said. “Creating a national labeling standard will give consumers the information they need while avoiding the unnecessary confusion and added cost of a patchwork of

state laws.” The bipartisan bill, called the Safe and Accurate Food Labeling Act of 2015, was introduced by Reps. Mike Pompeo of Kansas and G.K. Butterfield, D-N.C. It would block state attempts to label GMO foods and includes a provision to regulate and certify foods promoted as non-GMO through a U.S. Department of Agriculture certification. Under the proposed measure, the U.S. Food and Drug Administration would remain in charge of a pre-market notification process for new biotech crops. No labeling of GMO foods could be required unless there is a “material difference” between the biotech ingredient and its conventionally produced version. “Our goal for this legislation remains to provide clarity and transparency in food labeling, support innovation, and keep food affordable,” Pompeo said in a news release.

County FBs reach membership goal An additional 19 county Farm Bureaus surpassed their membership gain goals last week. Counties reaching goal since the last report, their membership goal and campaign manager/county president include the following: Adair, 836 members, Carl Ford, campaign manager; Audubon, 615, Laverne Deist, campaign manager; Clayton, 2,104, Amy Echard, president; Clinton, 2,613, Curtis Allen, campaign manager. Fayette, 2,717, Tyler Engel, campaign manager; Jackson, 1,641, Scott Hingtgen, campaign manager; Jones, 1,994, Klark Telleen, campaign manager; Kossuth, 1,516, Thomas Eischen, president; Lucas, 795, Linda Comstock, campaign manager; Mahaska, 1,963, Stacy Boender, campaign manager. Montgomery, 804, Chad Means, president; Muscatine, 2,248, Ryan Deahr, president; Plymouth, 2,077, Aaron McNaughton, campaign manager; East Pottawattamie, 637, Ann Vorthmann (not pictured), campaign manager. Poweshiek, 1,885, David King, campaign manager; Scott, 3,210, Ron Schneckloth, cam-

FORD

DEIST

ECHARD

ALLEN

ENGEL

HINGTGEN

TELLEEN

EISCHEN

COMSTOCK

BOENDER

MEANS

DEAHR

MCNAUGHTON

KING

SCHNECKLOTH

BLACK

HEATHERINGTON

DAVIDSON

paign manager. S t o r y, 2 , 8 9 6 , D e r rick Black, president; We b s t e r, 2 , 1 3 4 , D e n i s Heatherington, campaign manager; Worth, 753, Ronald Davidson, campaign manager. The 2015 Farm Bureau campaign ended March 31.

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6 APRIL 1, 2015 IOWA FARM BUREAU SPOKESMAN

Report shows modest growth in pig breeding herd

he U.S. hog and pig inventory hasn’t ex panded as much as economists and oth ers have feared, economists said last week after the release of the U.S. Department of Agriculture’s (USDA) quarterly hogs and pigs report. “The worry had been we ex panded the herd more,” said Chris Hurt, professor of ag economics at Purdue University. The U.S. inventory of all hogs and pigs on March 1 was 65.9 million head, the U.S. Department of Agriculture (USDA) said in its report last week. This was up 7 percent from March 1, 2014, but down slightly from Dec. 1, 2014. There were 20.4 million head of hogs and pigs in Iowa on March 1, the report said. This was up from March 1, 2014, but down from 20.9 million in December 2014, the report said. The report showed a “modest expansion of the breeding herd,” Hurt said. U.S. breeding inventory, at 5.98 million head, was up 2 percent from last year, and up 1 percent from the previous quarter. Iowa’s breeding inventory, at 1.03 million head, was up from 1.01 million in December, the report said. U.S. market hog inventory, at

in Iowa, the report said. This was up 20,000 head from December 2013-February 2014. Hurt said he expects pig farm ers will break even this year. “The incentive to continue to expand probably has been sharply cooled off,” Hurt said. Feed costs, he said, are the low est since 2010.

Avian influenza spreads

60 million head, was up 8 percent from last year, but down slight ly from last quarter, the report said. Iowa market hog inventory, at 19.37 million, was down from 19.89 million in December 2014, but up from March 1, 2014, at 18.49 million. The December 2014-February 2015 U.S. pig crop, at 28.8 million head, was up 9 percent from 2014. Sows farrowing during this period totaled 2.83 million head, up 2 percent from 2014. Hurt said the pig crop brings the U.S. pig inventory close to what it would have been with out the porcine epidemic diarrhea virus (PEDV). There were 5.35 million pigs born in Iowa between December 2014 and February 2015, the report said. This was up from 4.7 mil lion the year before. There were 500,000 sows farrowing between December 2014 and February 2015

State officials in Wyoming last week confirmed that the highly pathogenic H5N2 avian influenza strain was found in a Canadian goose, Basin Radio Network re ported. Wyoming is the 11th state to confirm the disease, Basin Radio Network said. The disease hasn’t been implicated in any human infection in the United States.

Mexico eases poultry ban Mexico has eased restrictions of U.S. poultry from states it had banned in light of an ongoing avian flu outbreak, Meatingplace reported last week. Mexico will allow some im ports of chicken and turkey from California, Arkansas, Minnesota and Missouri as long as the product is exported for further processing or heat treatment in Mexico, an update on the USDA’s Food Safety and Inspection Service website said.

Meat consumption grows The global meat market saw 3 percent volume sales growth in 2014 to reach 225 million tons,

Weekly Average Price Comparison Sheet Price comparisons: Week ending: 03/27/2015 02/27/2015 03/28/2014 Cattle - National 5 Area Confirmed Sales 3,253 16,083 76,364 5 Area 65-80% Choice Steers: Wtd Avg. NA NA $151.37 Average Weights (Estimate) Cattle 1354 1361 1327 Boxed Beef Choice 600-750 (5 day avg.) $250.80 $247.58 $234.46 Boxed Beef Select 600-750 (5 day avg.) $246.71 $245.57 $227.34 Five Day Average Hide and Offal Value $14.63 $14.11 $16.03 Cattle - Interior Iowa – Minnesota Supply: 2,881 6,297 25,410 Average Price Choice Steer: Live Basis $163.97 $157.00 $151.91 Average Price Choice Steer: Dressed Basis NA NA $240.71 Feeder Steers at River Markets (Neb. Feedlots) #1 Muscle Thickness 500-600# $280.85 $280.72 $229.53 #1 Muscle Thickness 700-800# $225.06 $218.22 $184.33 Hogs -- Interior Iowa – Minnesota ISM Friday Weighted Average Carcass Price $55.91 $66.26 $129.00 Average Weights (Estimate) Hogs 284.2 284.6 283.9 Sows 1-3 300# and up: Average Price $35.92 $31.21 $87.35 Pork Loins 1/4” trimmed 13 - 19 pound $98.66 $98.58 $164.02 51-52% 200 pound Pork Carcass (5 day avg.) $66.49 $69.47 $130.49 Feeder Pigs: National Direct Delivered Feeder Pigs 10 Pounds Basis - Wtd Avg. $32.46 $43.79 $88.73 Feeder Pigs 40 Pounds Basis -- Wtd Avg. $65.61 $69.42 $127.69 Sheep -- National Slaughter Lambs Negotiated Sales 5,100 4,000 5,400 Choice & Prime Wooled and Shorn 130 -150 lbs NA NA $154.00 Iowa Large Eggs (cents per dozen) $1.50 $1.10 $1.44 Young Hen Turkeys: 8 -16# -- Eastern (cents/lb) 98.50 100.08 103.50 *Iowa Ethanol Prices $/gal $1.40 $1.30 $3.15 Futures: Corn $3.91 $3.84 $4.92 State Average Cash Corn Price $3.72 $3.68 $4.65 Basis -$0.19 -$0.16 -$0.27 Futures: Soybean $9.67 $10.30 $14.36 State Average Cash Soybean Price $9.25 $9.86 $13.93 Basis: -$0.42 -$0.44 -$0.43 Slaughter Under Federal Inspection Estimates Estimates Actuals Hogs: 2,155,000 2,092,000 2,009,000 Cattle: 514,000 519,000 580,000 Sheep: 46,000 39,000 41,000 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

Meatingplace said last week. Euromonitor International re leased the new market research, which noted that the growth was driven by demand in emerging markets. Poultry is the most popular type of meat in the world, research showed. Poultry consumption in creased 4 percent in volume to 85 billion tons in 2014. India emerged as the top-grow ing meat market in the world in 2014. Demand for beef and veal (up 5 percent) in China was stron ger than demand for pork (up 3 percent) in 2014 due to grow ing per capita disposable income, Meatingplace reported.

New poultry vaccines USDA scientists have devel oped vaccines to treat two infec tious diseases in poultry, laryngo tracheitis (ILT) and Newcastle dis ease (ND), Meatingplace reported

last week. ILT and ND have caused sig nificant deaths and economic losses in the poultry industry. The diseases cause sickness and death in domestic and commer cial poultry, and have infected wild birds throughout the world, Meatingplace reported.

Waiting on WTO Congress will wait for a World Trade Organization (WTO) deci sion on the Country of Origin Labeling (COOL) rule before considering legislation to stem potential retaliations from Canada and Mexico against dozens of American industries, Capital Press reported last week. No bill has been introduced to either change or repeal the label ing regulation to avert tariffs on American agricultural goods that could be put in place later this year, Capital Press reported.

CME Class III Milk Futures Closing prices Mar. 27, 2015 Contract March 2015 April 2015 May 2015 June 2015 Spot Prices Block Cheese Barrel Cheese Butter NFDM Grade A

Settle Last Week $15.53 $15.54 $15.50 $15.51 $15.30 $15.15 $15.45 $15.40 $1.5400 $1.5450 $1.7525 $0.9750

Contract July 2015 August 2015 September 2015 October 2015

Settle Last Week $15.94 $15.93 $16.52 $16.60 $16.79 $17.03 $16.96 $17.20

Milk Prices Mar. Class III Mar. Class IV

$15.53 $13.93

Iowa Hay Auctions Dyersville, Mar. 25

Hay, large squares, good, $135-160; fair, $80-110; utility, $40-80; large rounds, premium, $85-135; good, $70-90; fair, $60-80; utility, $40-70; small squares, fair, $2.20. Oat hay, large rounds, good, $42.50. Straw, large squares, good, $24-44; large rounds, good, $37.50. Mixed, large rounds, good, $80-115. Grass, large rounds, fair, $40-75. Corn stalks, large rounds, good, $32-36.

Ft. Atkinson, Mar. 25

Hay, small squares, 3rd crop, $170-210; large squares, 1st crop, $80-140; 2nd crop, $70-80; 3rd crop, $80-125; large rounds, 1st crop, $40-110; 2nd crop, $55-130; 3rd crop, $65-80. Straw: large squares, $85.

Perry**, Mar. 21

Alfalfa, small squares, premium, $6.50-7; good, $4; large squares, premium, $60; good, $50; large rounds, premium, $80; good, $65. Grass, small squares, premium, $4.50;

good, $3.50; fair, $2; large rounds, premium, $55; good, $45; large squares, good, $50; fair, $40. Straw, large squares, $35; small squares, $4.50. Corn stalks, large rounds, $30.

Rock Valley, Mar. 26

Alfalfa, small squares, supreme, $170190; premium, $130-155; good, $125; large squares, premium, $140-155; good, $115-125; fair, $100-107.50; large rounds, premium, $135-155; good, $115-125; fair, $95-105. Grass, small squares, premium, $155-180; large squares, premium, $140-145; large rounds, premium, $140-145; good, $95-120; fair, $80. Mixed hay: large rounds, premium, $120; large squares, premium, $130-157.50; good, $100-110. Corn stalks: large rounds, $32.50-47.50.

Yoder**/Frytown, Mar. 25

Alfalfa, large rounds, $40-90; large squares, $25-45; small squares, $3-3.50. Grass, large rounds, $40-57.50. Oat hay, large rounds, $20-27.50.

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

The graph tracks a central Iowa cash corn price and the nearby corn futures market prices since mid-October 2014. The dashed red line represents weekly futures prices; the solid blue line represents weekly cash prices. Prices have drifted higher, and basis (the space between the lines) has narrowed from 46 cents cash under futures to 24 cents under recently. Both of these market movements have benefitted cash ownership since harvest in this example, although all the gain is not realized due to storage and ownership costs.

IOWA FARM BUREAU SPOKESMAN

Weather begins to play bigger role in markets

ow is the time for weather to again become part of the daily action in the grain markets. That’s not to say that it hasn’t had implications during the winter, but without extremes either here or elsewhere in the world, it hasn’t had a significant impact. Now that spring is unfolding in the United States and the northern hemisphere, weather will get much more attention. There’s already talk about the general dryness in much of the Great Plains, from the southern areas to the northern reaches, even into Canada. With winter wheat breaking dormancy, good spring rains are needed to achieve good winter wheat yields. Even though winter wheat conditions have improved in the Southern Plains in recent weeks, it’s still less than desirable to produce a good crop. Good/excellent ratings are only 41 percent in Kansas and 44 in Oklahoma; it’s 55 in Texas. That’s not a recipe for disaster, but dictates the need for spring rains.

Moisture will be closely monitored It’s been dry enough in the Northern Plains and Red River Valley to drop conditions to moderately/abnormally dry. That extends into the Canadian Prairies. It is dry enough that some very early planting of spring crops has started in those areas. Moisture has been less than normal the last 45 days except for central North Dakota and most of Texas. Recent forecasts for April show above-normal chances for Texas, below-normal moisture in the Northern Plains and normal elsewhere. While it’s good for planting spring crops, it should perpetuate some yield risk. The wet conditions from Texas and across the South have delayed planting of spring crops, and cool, wet conditions are forecast to continue. While it’s too soon to generate much concern, it will be closely watched. Soils across much of the heart of the Corn Belt have normal/slightly less than normal moisture. That bodes well for planting to get off to a good start, but the light showers/snows and cool conditions are keeping farmers out of the field.

Entering April, weather is key With many still needing to get fertilizer this spring, anxiety will start to increase when the calendar turns to April. Forecasts are generally normal, suggesting little reason for concern at this time. But as always, anything unusual brings price volatility with it. This same pattern persists across key areas of the world. The Russian/Ukrainian winter crops are in good shape. Spring planting is said to be under way and a little ahead of last year. Western Europe’s winter crops aren’t quite as good as last year’s at this time. The nearterm outlook calls for conditions to be a little dry. The International Grains Council reiterated its forecast for slightly smaller crops in 2015. If weather would turn unfavorable in any major area, production could slip and supplies decline, sparking a need to build some risk premium back into prices. There’s still a long way to go before this year’s crops are in the bins.

Cash Strategist Positions CORN

2014

3-10-14 — 10% sold @ $4.82

at a glance 2015

100% unsold

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

BEANS

2014

2015

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

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

— 10% sold @ $11.72

5-12-14 — 10% sold @ $12.23 6-2-14

— 10% sold @ $12.24

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

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

800

Central IL Daily Cash Corn 700

2014 CROP: The recent action

2015 CROP: The technical picture continues to improve, but it may take time to get an uptrend entrenched. We see no reason to

Since December, Central Illinois cash prices have been confined in a $3.51-$3.88 range, mostly in the lower half of the range. The surge over the last week vaulted prices back into the upper end of the range. More important, the move over the early February high suggests the last break was Cycle Lows a retest of the late January 20-week low. 20-week 40-week

600 500

$4.60

400 300

A move over $3.88 would indicate the short term trend has turned up again, putting corn prices in position to move up to the swing target at $4.60. But until then, the $3.51 winter lows are important support.

200 4/23/13

12/11/13

$3.88 $3.51

$1.09 $2.79

8/5/14

3/27/15

price new crop now. Buy some out-of-the-money new-crop call options to make sales against this spring/summer.

11/11/15

-20

-40

FUNDAMENTALS: Like the

Basis Chicago Futures

-60 4/21/14

other grains, the short-term trend in prices will largely be dictated by the outcome of the USDA reports. Signs of trend shifts in financial

SOYBEAN STRATEGY

7/15/14

10/7/14

12/31/14

3/27/15

markets bodes well for potential improvement in corn prices in the weeks ahead.

1750

Central IL Daily Cash Soybeans 1550

2014 CROP: Soybean prices struggle more than corn, with the trade continuing to expect significantly larger acreage in 2015. But until a large crop is secure, prices shouldn’t have much downside risk. Unless the USDA reports are bearish, we still see somewhat higher prices in the short term. Hold off making sales. 2015 CROP: New-crop prices still take their lead from old crop. The USDA report and weather will be key to spring and summer prices. We don’t see a negative enough scenario to cause prices to spiral sharply lower at this time. We have no interest in pricing 2015 crop at these levels.

Cash Strategist Hotline: 1-309-557-2274

CORN STRATEGY

in corn prices suggests they are starting to turn up out of a winter low, but the USDA reports will have some impact on the speed and extent of any move. We expect better selling opportunities ahead, but can’t be sure on the level until after the reports. Make only needed sales at this time. We think basis contracts are attractive, leaving pricing open into late spring or summer. Continue to hold 2013 crop for expected longterm improvement.

APRIL 1, 2015

1350

1150

950

Central Illinois cash soybean prices have been bounded by support close to $9.40 and resistance near $10.40 this winter. But unlike corn, it hasn’t rebounded significantly from the support after the most recent decline, suggesting there may be a little more vulnerability.

16- to 18-week cycle lows If $9.40 would fail to hold, cash prices are likely to dip to $9.00, maybe even toward last fall’s $8.82 low, with the 16-18 week cycle pointing to a low near the end of May. But if cash prices move over $10.00 again, they could challenge the $10.40 resistance again.

750 4/23/13

12/11/13

$10.40 $9.40

3-year low

8/5/14

3/27/15

11/11/15

400

F U N D A M E N TA L S : T h e South American crops will temporarily take a back seat to the potential for the 2015 U.S. crop. The Brazilian harvest is starting to wind down; the Argentine harvest is starting to accelerate. In both countries, disputes between producers, unions and the govern-

300 200 100 0 Basis Chicago Futures

-100 4/21/14

7/15/14

10/7/14

12/31/14

3/27/15

ment have potential to restrain how fast soybeans flow into the world pipeline.

Iowa Corn & Soybean Basis CORN: (basis vs. May futures, 3/25/15)

SOYBEANS: (basis vs. May futures, 3/25/15)

NW $3.76 -0.19 SW $3.70 -0.25

NC $3.76 -0.19 SC $3.74 -0.21

NE SE

$3.80 -0.15 $3.78 -0.17

$9.33 -0.46 $9.35 -0.44

NC SC

$9.33 -0.46 $9.32 -0.47

NE $9.39 -0.40 SE $9.52 -0.27

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.

Iowa ethanol plant to use Enogen corn Syngenta announced last week that it has signed a commercial agreement with Southwest Iowa Renewable Energy (SIRE) to begin using Enogen corn enzyme technology at its Council Bluffs ethanol production facility following the 2015 harvest. SIRE is the third Iowa plant to sign such an agreement. Plymouth Energy LLC in Merrill and Quad County Corn Processors in Galva accept corn with the Enogen trait. SIRE produces 125 million gallons of ethanol per year at its plant. Started in February 2009, SIRE sells its ethanol, distillers grains, corn syrup and corn oil in the continental United States, Mexico and the Pacific Rim. The alpha amylase enzyme found in Enogen grain helps an ethanol plant reduce the viscosity of its corn mash and reduce — or

may eliminate — the need to add a liquid form of the enzyme, according to David Witherspoon, head of Enogen for Syngenta. “This breakthrough viscosity reduction can lead to unprecedented levels of solids loading, which directly contributes to increased throughput and yield, as well as critical cost savings from reduced natural gas, energy, water and chemical usage,” Witherspoon said. “Farmers who grow Enogen corn benefit as well. They earn an average premium of 40 cents per bushel. “The agreement with SIRE will enable SIRE to source alpha amylase directly from local growers and keep enzyme dollars in the local community,” Witherspoon added. “This is what truly sets Enogen corn apart from other technologies

designed to enhance ethanol production. It adds significant incremental value at the local level for communities that rely on their ethanol plant’s success.” SIRE is a state of the art drymill grain processing facility that annually produces more than 125 million gallons of ethanol and consumes more than 40 million bushels of corn. SIRE sources grain from a large portion of southwest Iowa and several counties in southeast Nebraska. The opportunity to invest locally is a key benefit of using Enogen grain, according to SIRE General Manager and CEO Brian Cahill. “When you think about the value that Enogen will deliver for our growers, our facility and our community, it’s a win-win-win scenario,” he said.

APRIL 1, 2015

IOWA FARM BUREAU SPOKESMAN

Expect a dry start to spring planting season IOWA’S WEATHER OUTLOOK

BY DAN HICKS

he colder-than-normal finish to the climatological winter of 2014-2015 produced February monthly temperatures that were 10 degrees below normal for the state of Iowa. This brought the winter average for December through February for the state down to 0.9 degrees below normal, balancing the overall milder conditions of December and January. Temperatures stayed well be low normal into the first part of March. This was followed by a remarkable reversal in temperatures that brought around two weeks of much milder weather, with average temperatures more than 20 degrees above normal on the warmest days. Some cool days again returned later in the month. For much of March, precipitation was light in Iowa. Precipitation did increase later in the month, but monthly amounts will average below normal in most of the state.

likely will have more days with below-normal temperatures, and areas to the west and southwest will have more days with abovenormal temperatures. Into May, I expect more of this area to trend toward near to above -normal temperatures overall. In the near term, I look for a near to below-normal precipitation pattern in most of the western Midwest.

El Nino pattern In some past years with weak El Nino conditions during the summer months, trends in the Tropical Pacific have been somewhat similar to the period back in late 2014. When El Nino conditions aren’t changing rapidly, there is some tendency for sum-

mer temperatures in the Midwest to average near to above normal and summer rainfall near to below normal. When looking at all the years with weak El Nino conditions during the summer, this area has an overall cooler and wetter summer weather trend.

April forecast For the month of April, I look for temperatures in most of Iowa to average near to a few degrees above normal. Early in April, normal high temperatures range from the lower 50s in northern Iowa to the upper 50s south, and normal lows range from the upper 20s to around 30 north, up to the lower and middle 30s south. By the end of the month, normal highs range from the middle 60s north to the upper 60s in southern Iowa, and normal low temperatures range from around 40 north to the middle 40s south. I expect April precipitation to average near to a little below nor-

Iowa statewide precipitation data (Precipitation in inches) Total Precipitation March 1-22, 2015

Departure from Normal

Total Precipitation March 22-26, 2015

Northwest 0.03 -1.21 North-central 0.03 -1.28 Northeast 0.06 -1.33 West-central 0.01 -1.37 0.02 -1.40 Central East-central 0.22 -1.53 Southwest 0.03 -1.43 South-central 0.07 -1.39 Southeast 0.18 -1.65 Statewide

0.07

-1.39

0.47 0.57 0.76 0.38 0.33 0.36 0.68 0.36 0.25 0.46

(Data from Midwest Climate Center)

mal in most of Iowa. Normal precipitation for April ranges from 3.2 to 4 inches in most of Iowa, but is right around 3 inches in some of the western border areas. Normal snowfall ranges from around 1 inch in much of southern Iowa up to 3 to

4 inches in the far northwest. 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, go to www.weather.net.

Soil moisture Prior to the increased precipitation later in March, only some far northern and far eastern areas of Iowa reported below-normal soil moisture in the top 5 to 6 feet of the soil profile, according to the U.S. Climate Prediction Center. Latest data from this source didn’t reflect any excesses in soil moisture, but there are likely some areas of western into central Iowa that have above-normal soil moisture from the well above-normal precipitation during 2014. In the Tropical Pacific, weak El Nino conditions became somewhat more prominent over the past few weeks. Latest indications are that weak El Nino conditions will continue into the summer and possibly longer. In the near term, it looks like the temperature pattern across the central and northern United States will continue to be divided. Areas to the northeast and east of Iowa

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