USDA Forecasts Corn Acres Well Above Pre-Report Expectations

WASHINGTON, D.C. (DTN) -- USDA expects corn acres to swell to 93.6 million acres, well above pre-report expectations. Soybean acres are expected to drop slightly from last year to 82.24 million acres, in line with pre-report expectations.

Quarterly corn stocks for March 2016 were pegged at 7.8 billion bushels, up 1% from March 2015. Soybean stocks rose to 1.53 billion bushels, a 15% increase from March 2015.

Grain sorghum stocks blew past pre-report expectations, coming in at 201 million bushels, up 81 million bushels from March 2015.

CORN ACRES

The projected rise in corn acres is due mostly to the likelihood of higher returns in 2016 compared to other crops, USDA said. If realized, USDA's estimate of 93.6 million acres would be the third highest planted acreage since 1944.

In 41 of 48 states, planted acreage is expected to be up or unchanged. Specifically, USDA expects acreage increases of 400,000 or more compared to last year in Illinois, Iowa, Kansas and North Dakota.

SOYBEAN ACRES

USDA's estimate of 82.24 million acres for 2016 is 1% lower than last year. Compared to 2015, planted acreage intentions are expected to be down or unchanged in 23 of the 31 states. USDA anticipates acreage decreases of 200,000 or more in Louisiana, Minnesota and Mississippi.

If realized, USDA's prediction of planted acreage in North Dakota, Pennsylvania and Wisconsin will be the largest on record.

WHEAT ACRES

USDA expects wheat acreage to drop 9% from 2015 to 49.6 million acres. Winter wheat acreage is pegged at 36.2 million acres, an 8% drop from last year, and spring wheat acreage is estimated to drop 14% from 2015 to 11.3 million acres.

Durum acres are predicted to rise 3% from 2015 to 1.995 million acres.

CORN STOCKS

Of the total 7.8 billion bushels of corn stocks, 3.47 bb were stored off-farm, up 3% from last year, and 4.34 bb were stored on-farm, down 1% from last year.

The December 2015-February 2016 disappearance, a measure of demand, is 3.43 billion bushels, down slightly from 3.46 billion bushels during the same period last year.

SOYBEAN STOCKS

Of the 1.53 billion bushels of soybean stocks, 728 million bushels were stored on-farm, up 19% from last year, and 803 million bushels were stored off-farm, up 12% from last year.

The December 2015-February 2016 disappearance is 1.18 billion bushels, down 1% from last year.

WHEAT STOCKS

Wheat stocks swelled 20% from last year to 1.37 billion bushels. 320 million bushels were stored on-farm, up 15% from last year, and 1.05 billion bushels were stored off-farm, up 22% from last year.

The December 2015-February 2016 disappearance is a measly 375 million bushels, 4% down from last year.

EPA IG Begins Effort to Study ‘Superweeds’

An evaluation of the efficacy of the Environmental Protection Agency’s efforts to delay or prevent the spread of herbicide-resistant weeds is being launched by the EPA’s Inspector General.

The evaluation will document the steps EPA is taking to prevent herbicide resistance, how EPA assesses the health and environmental impact of herbicides designed to combat herbicide-resistant weeds and how EPA is monitoring the spread of herbicide-resistant weeds.

Weeds resistant to the herbicide glyphosate are a growing concern for US farmers, so much so that new multi-herbicide weed-killers, like Dow Chemical Co.’s Enlist Duo, are being actively developed.

The Inspector General is also examining the use of structural fumigants and how EPA determines the efficacy of antimicrobial pesticides. EPA efforts to maintain the herbicide-resistance of genetically modified corn are also being studied and a final report on that specific issue is expected to be released by mid-summer.

USDA's Latest World Agriculture Supply Demand Estimates

Projections for U.S. meat consumption in USDA’s latest World Agriculture Supply Demand Estimates report suggest Americans will eat as much red meat and poultry this year as they did almost a decade ago.

A rebound in beef supplies spurred by rebuilding of the drought-depleted herd tells only part of the story, said Jim Robb, director of the Livestock Marketing Information Center (LMIC) in Lakewood, Colo.

“Beef is going up, but total red meat and poultry is going up even quicker. We are now going to ask consumers in the U.S. to eat as much meat as they did in 2008,” Robb told Meatingplace.

USDA projects the average American will consume 54.3 pounds of beef this year. LMIC’s projection is slightly higher, at 54.8 pounds, and represents the highest consumption since 2013.

LMIC expects Americans to consume 213.7 pounds on average of all red meat and poultry in 2016, up more than 10 pounds from the recent bottom of 201.9 pounds in 2014.

Difficulty exporting chicken due to avian influenza-related bans is a key culprit in growing chicken supplies.

“Chicken prices are down. Pork prices are down. Beef prices are down. To get this added meat through the system, we’ve already seen year-to-year declines in meat prices, and we will see more,” Robb said.

Robb, an agricultural economist, said per-capita consumption of all meat and poultry should continue to trend upward in 2017 but at a moderate pace, with the average American expected to eat 214.1 pounds in 2017.

“If we price it correctly, they will eat it,” he said. 

USDA Announces $5.2 Million for Nanotechnology Research

USDA Wednesday announced 11 universities will receive funding for nanotechnology research. The universities will split more than $5.2 million dollars to research ways nanotechnology can be used to improve food safety, enhance renewable fuels, increase crop yields and manage agricultural pests. The awards were made through the Agriculture and Food Research Initiative. Secretary Tom Vilsack says nanoscale science, engineering, and technology are key pieces of USDA investment in innovation to ensure an adequate and safe food supply. Since creating the program, USDA has awarded more than $22 million dedicated to nanotechnology research.

Universities receiving funding include Auburn University in Auburn, Alabama; Connecticut Agricultural Experiment Station in New Haven, Connecticut; University of Central Florida in Orlando, Florida; University of Georgia in Athens, Georgia; Iowa State University in Ames, Iowa; University of Massachusetts in Amherst, Massachusetts; Mississippi State University in Starkville, Mississippi; Lincoln University in Jefferson City, Missouri; Clemson University in Clemson, South Carolina; Virginia Polytechnic Institute and State University in Blacksburg, Virginia; and University of Wisconsin in Madison, Wisconsin.

China Policy Change Threatens Global Feed Trade

Grain traders told Reuters that China’s policy change to end corn stockpiling brings the risk of lesser demand from China. The Chinese government confirmed this week the nation will end its corn stockpiling program at a time of high global supplies. Importers in China are likely to reduce purchases of farm products for livestock feed, including sorghum and dried distillers grains, or DDG’s. The policy shift aims to bring China’s domestic corn prices more in line with foreign supplies. China has become a significant importer of corn from the U.S. and other countries in recent years as the county has accumulated an estimated 250 million metric tons of corn in reserves, more than the country can consume in a single year. Some economists predict it will take China years to eat through its massive stockpiles. However, the country may need to keep importing feed grains if the quality of the reserves is poor or domestic prices remain too high, according to the U.S. Grains Council.

WTO Sides with Argentina in Biodiesel Anti-Dumping Case

The World Trade Organization this week sided with Argentina in a biodiesel anti-dumping duties trade dispute. The dispute between Argentina and the European Union started in 2013 and the WTO called on the EU to change its policy, however noted the EU regulation did not violate WTO rules, according to Reuters. The EU was blocking Argentina biodiesel imports. Argentina is a major exporter of biodiesel and called EU measures “protectionist” while the EU argued Argentina was "dumping" or selling biodiesel at below the cost of production and harming local producers. Argentina's Foreign Ministry issued a statement welcoming the ruling, saying being blocked by the EU had cost the country near $1.6 billion in lost sales. Both countries have 60 days to file an appeal.

South America Boosting Beef Exports

Beef exports from South America are expected to increase 11 percent this year. Meatingplace reports that’s because of favorable currency values, improved access to importing countries and increased beef availability. Cattle producers in Brazil have been encouraged to hold cows from slaughter to deal with high calf prices driven by low calf availability, increasing domestic prices. Meanwhile, weaker currency has made Brazilian beef more competitive on international markets. Also helping boost South American beef exports, China continues to import more beef this year while another exporter, Australia, expects beef production to remain low. Last month’s USDA forecast suggested U.S. beef imports will also drop by 24 percent this year, making room for more Brazilian exports.

Hesston Celebrates "AGCO Hesston Windrower Day"

March 29, 2016, in Hesston, Kansas. Hesston introduced the self-propelled windrower to the agricultural harvesting world more than 60 years ago — an achievement which was celebrated at the Hesston manufacturing plant by company executives, employees and special guests. The 70-year-old Hesston brand is a leading manufacturer of agricultural machinery, most famous for its high quality haymaking equipment since 1947.  The Honorable David K. Kauffman, Mayor of Hesston, was in attendance and declared it “AGCO Hesston Windrower Day.”

“Manufacturing the 100,000th windrower is a significant achievement for AGCO,” said Robert Crain, AGCO Senior Vice President and General Manager, North America & South America. “The first commercially available windrower was manufactured right here in Hesston, Kansas more than 60 years ago and they are still made here today. The dedication of all of our employees — past and present — have made the Hesston brand the leader in the industry.”

Attending the event was the purchaser of the historic 100,000th windrower — Ray Robinson, of Moo Mountain Milk in Burley, Idaho. Robinson owns six Hesston windrowers. He farms approximately 5,000 acres himself, and partners with other businesses to farm an additional 30,000 acres. Moo Mountain milks 20,000 cows and employs 350 people, including those at a milk plant he owns an interest in. Robinson, his son Justin and twin grandsons were flown to Hesston for the 100,000th windrower event and look forward to putting the new windrower into operation on the dairy farm as soon as it arrives in Idaho.

The 100,000th windrower is dramatically different from the first model of 1955, which launched the Hesston brand. Today’s WR9800 Series self-propelled windrowers are fuel-efficient and offer superior operator convenience. WR9800 Series windrowers are powered by reliable AGCO Power™ engines, led by the AP66-4F, a 6.6-liter engine in the WR9870. This model is ideal for Hesston’s disc header, and offers 225hp and the muscle to operate in heavy crop conditions such as winter forage, wet silage hay and hilly or rough terrain. The WR9860 is designed to perform toe-to-toe with any six-cylinder windrower with its AP49-4F 4.9L, four-cylinder QuadBoost™ engine, that boasts 195hp and is an increase over the previous model. Both machines provide high field speed of 17.5 mph, plus a maximum road speed of 24.5 mph for quicker moves between fields, when equipped with RearSteer. Our final model is the WR9840, rated at 137hp, this machine is a perfect fit for draper and sickle head applications.

Two-Thirds of Consumers Thinks Food Companies are Transparent

A new study shows two-thirds of consumers say they believe agriculture and food companies are transparent. The study by Sullivan, Higdon and Sink’s Food Think initiative found consumers also want to know more about where their food comes from. The study found consumer perceptions of transparency in the industry are growing as more consumers turn to food companies and grocers for information regarding their food. Researchers found 65 percent of consumers think it is important to know how their food is produced while 60 percent think farmers and ranchers are trustworthy, making them one of the most trusted sources for information on food production. The research was conducted earlier this year from the responses from more than 2,000 U.S. consumers.

Syngenta Contends ChemChina Takeover Poses no Security Threat

Responding to concerns by U.S. lawmakers, Syngenta says the takeover by ChemChina of Syngenta poses no food or national security issues. Ag Professional reports Syngenta made the response following the concerns in a letter by four senators requesting the Committee on Foreign Investment review the $43 billion deal’s potential impact on the U.S. food system. The senators feared that increased foreign control over important parts of US food production could create threats to domestic food security. A Syngenta spokesperson responded by saying while the company would welcome a full review, it believes the proposed takeover would not pose any security or food safety issues. The company says the takeover would be beneficial to farmers and customers in the United States. Syngenta generates 27 percent of its sales in North America.

Deere Acquires Majority Ownership of Hagie Manufacturing

John Deere has acquired the majority ownership of Hagie (HAG-gee) Manufacturing, the U.S. market leader in high-clearance sprayers. Deere announced the joint venture Tuesday while saying Hagie will continue to produce sprayers at its Iowa facility. Equipment made by the joint venture will continue to carry the Hagie brand. However, the sales and service of Hagie equipment will be integrated into John Deere over the next 15 months. A John Deere company official says the agreement allows John Deere to provide a broader range of sprayer options and integrate Deere's precision technology into the Hagie equipment.

French Delegation Meets with NCGA Leaders

A group of French delegates visited with the National Corn Growers Association this week to further understand U.S. corn farming. The delegation was visiting the United States to learn more about low carbon technology. The meetings were designed to inform the delegates on U.S. corn farming practices and ethanol. The delegation, organized by the U.S. Department of State's International Visitor Leadership Program, examined how U.S. agriculture reduces output of greenhouse gas emissions and examined U.S. perspectives on promoting a low-carbon economy. Through discussion, NCGA says the group looked at how growers are becoming more aware of how their continuous improvement translates into shrinking the carbon footprint of corn. Additionally, they discussed soil health and how modern agriculture practices can allow corn production to become a significant carbon sink.

States Gaining Interest in GMO Labeling Laws

As food companies are preparing to comply with the Vermont GMO labeling law, many other states are now considering their own GMO labeling laws. Politico reports Connecticut, Massachusetts and Rhode Island are looking to implement their own GMO labeling statutes. Those bills largely mirror the Vermont law. Meanwhile, lawmakers in Maine passed a bill through the state’s House of Representatives that would ask voters to repeal a trigger clause in the state’s GMO labeling law, allowing the measure to go into effect. Legislators in Tennessee, Florida, Hawaii, Missouri, New Hampshire, New Jersey, New York and Oregon have also considered labeling laws this spring. Lawmakers in Alaska and Mississippi have considered restrictions on the sale and cultivation of GMO salmon. On the other side of the GMO battle, Kansas, Missouri and Wyoming lawmakers have looked at resolutions that would urge the U.S. Congress to block labeling.

NAWG Announces CEO Stepping Down

The National Association of Wheat Growers (NAWG) announced Jim Palmer has decided to step down as its chief executive officer effective May 31, 2016.

“Jim has been a tremendous and tireless advocate of the US wheat grower specifically, and the US wheat industry in general, during his tenure as our CEO,” stated NAWG President Gordon Stoner, a Montana wheat grower. “While we certainly don’t want him to leave NAWG, Jim made it very clear to our Executive Committee recently that he strongly desired to reduce or eliminate a majority of his professional and personal obligations to spend more quality time with his far-flung family. Our entire officer team is very understanding and supportive of Jim’s personal decision.”

Stoner said NAWG will immediately begin its national search for a new CEO and has asked Palmer to assist the NAWG Executive Committee in managing that effort. Stoner emphasized that NAWG is in excellent financial shape and has assembled a very talented and dedicated advocacy and technical support staff, thanks to Palmer’s recruitment skills and enthusiasm for wheat and those who produce it.

“Our strong financial position and excellent staff will serve as Jim’s legacy,” said Stoner.

Vermont Announces GMO Labeling Enforcement

Vermont’s attorney general recently issued an enforcement memo on the state’s GMO labeling law that takes effect July first. Vermont attorney general William Sorrell said last week that while the law takes effect in July, all products must be properly labeled by January 1st, 2017. The enforcement delay grants products on store shelves in July a “safe harbor” in regards to their shelf life. In a statement, the attorney general said “unless there is evidence that a manufacturer distributed a mislabeled product after July 1st, 2016, we will not bring an enforcement action or seek fines for those products.” Any products distributed before the law takes effect this July will not be pursued as a violation if the product remains on store shelves past the start of 2017. However, any labeled product distributed after July first would be subject to the fines. As the U.S. Senate continues its two-week Easter recess this week, the time and prospects of creating a national GMO labeling standard appear to be diminishing, making it more likely the Vermont law will take effect in July.

U.N. says Half the World to Face Water Stress by 2030

A report by the United Nations Environment Program says almost half of the world's population will suffer severe water stress by 2030. A new report by the program finds that as the global population rises, increased urbanization, climate change and a shift in how food is consumed are likely to increase future demand for water. Under current trends, demand for water will exceed supply by 40 percent in 2030, forcing governments to spend $200 billion per year on upstream water supply as demand outstrips cheaper forms of supply. The report mentions that the agricultural sector accounts for 70 percent of all global freshwater withdrawals. As the global population increases, the report says agriculture will exert growing pressure on water resources. The report recommends more investment in research and development to improve technology that reduces water waste, building sustainable infrastructure to improve water efficiency and introducing new policies to curb demand and pollution.

China to Abandon Corn Stockpiling Scheme

Reports from Chinese media indicate the nation will scrap its corn stockpiling scheme. Pro Farmers First Thing Today reports China will eliminate its nine-year-old corn stockpiling scheme and will instead allow the market to determine domestic corn prices. A Chinese television station reports that China will directly subsidize farmers and stop stockpiling grain beginning this fall. Beijing has made no official announcement regarding any such change, though there has been talk the country would shift to a more market-driven policy. China currently holds massive state reserves that form the largest corn stockpile in the world.

Dairy Farmers Intent on Keeping Milk Production Strong

Milk prices have been very low for a few months now. Class III price has been below $15.00 for the past three months with two of those months having prices below $14.00. Class IV price have fared better, but not by very much. There have only been two months of prices below $15.00. The lasts time we saw Class III milk prices this low was in January 2011 with Class IV only back to August 2015. The current All-milk price is the lowest since July 2010. Yet, milk production has not slowed enough to result in a decline on a year-over-year basis. There was anticipation milk production in February might show the first decline in years, but production increased 1.0% when the adjustment was made for leap day. Low milk prices have not had the impact of slowing milk production as much as one would have anticipated by now.

There is hope these low milk prices may be short-lived. Farmers have made adjustments to many areas of their operation and have been loath to reduce cow numbers. Dairy cattle slaughter for the month of February totaled 242,300 head, down 14,100 head from February 2015 and 23,200 fewer than January. This level is 5,000 head above the amount slaughtered in 2014 when milk price was about $10.00 per cwt higher. Overall cow numbers continue to increase with the number of milk cows on farms in February totaling 9.312 million head, 4000 more than last year and 100,000 head more than February 2014.

From these numbers we can gather that dairy producers are doing what they generally do and that is to increase milk production when milk prices fall in order to make up some of the difference. Then when milk prices rise, milk production increases as they want to take advantage of higher prices. There are two reasons milk production declines. Adverse weather during which cow comfort and feed intake declines. This is usually during prolonged periods of hot weather. Or, production declines during a period of low milk prices when feeding methods and rations may change or culling will increase substantially. Feeding methods and adjustment of rations has been taking place as areas of the farming operations are being fine-tuned. We have not yet experienced the impact of hot weather on milk production and we have not yet seen a substantial increase of culling. As a result, milk production is increasing year-over-year and seasonally.

Some areas of the country are just beginning the spring flush period while other areas are still some weeks away. Milk plants are running near capacity in many areas with greater volumes expected over the next three months. This has prompted discussions and implementation of milk quotas based on last year’s milk production by some cooperatives. This is a measure to hopefully limit increasing milk production allowing plants to balance supply with demand. However, cows cannot be turned off like a machine as in a manufacturing plant and then turned back on again when the milk plant wants more milk. I would venture to say that this may have a delayed impact on leveling or reducing milk production. Keeping cows healthy and at peak milk production is the goal for any dairy operation. If these quotas are expected to be implemented for a short duration such as spring flush, dairy farmers may continue to push milk production through that period of time in order to maximize the lactation curve of their dairy cattle in hopes that milk demand and prices will increase and they can continue on after the quotas are lifted. Yes, it will be frustrating and depressing to receive less money for increased milk production, but it may be better than affecting the productivity and efficiency of the dairy operation. The bottom line is that plants may need to make less income on what they process/manufacture or work harder to market product when milk supply is plentiful just as dairy farmers do at times when milk prices are low and expenses are high. It will all “come out in the wash” in the end. This will ensure consumers will have good quality dairy products available for consumption.

Idaho governor sign bill allowing concealed carry without a permit into law

Last week, Gov. C.L. "Butch" Otter signed into law a measure that allows Idaho residents over the age of 21 to carry concealed weapons without having a permit or training to do so, joining Alaska, Arizona, Kansas, Maine, Vermont, Wyoming and West Virginia, which also allow concealed carry without permits. 

USDA Lowers Forecast Increase in 2016 Grocery Store Food Prices

The rate of food price inflation for food at home has been revised down to 1.5% to 2.5% for 2016 from a prior outlook for grocery store prices to rise 2% to 3% in 2016 compared to 2015, according to USDA’s Economic Research Service (ERS). However, the overall level of food price inflation and the level for food away from home (restaurants) were kept the same at 2% to 3% and 2.5% to 3.5%, respectively.

Reductions were made to several categories for food at home or grocery store prices, primarily for meats, fish and poultry where those prices are seen up 1% to 2% from 2015, with downward adjustments to the increases for meats, poultry and fish and seafood. Meat was revised down to an increase up to 1% with that also the forecast range for pork price inflation in 2016, down from the prior mark.

“Due to an expectation of lower price inflation for pork, poultry, and fish and seafood, the meats forecast has been lowered,” ERS noted.

As for pork, ERS noted that following elevated prices in 2014 linked to the PEDv situation, prices in 2015 fell “as there were signs of industry expansion and a lower volume of pork exports due to the strength of the US dollar. This pattern has continued into 2016." ERS now predicts pork prices to increase up to 1% in 2016.

Poultry prices at the grocery store are now seen rising 1% to 2% in 2016 compared to 2015. ERS noted that trade interruptions related to the bird flu situation “resulted in more chicken broilers remaining on the US market which, in turn, places downward pressure on retail chicken prices. Chicken prices fell 0.1% from January to February and are 4% lower than they were at this time last year. Prices for other poultry, including turkey, were up 0.4% from January to February. ERS now forecasts poultry prices to increase 1% to 2% in 2016.”

USDA economists also offered the same cautions on their 2016 food price forecasts that they have previously – weather and crop output could alter the level of increase, that energy prices could impact the final results and a stronger U.S. dollar could weigh on the level of increase for food prices.

More Groups Seek Full 6th Circuit Rehearing on WOTUS Rule

States and industry groups petitioned the U.S. Court of Appeals for the Sixth Circuit in Cincinnati, Ohio, for a full panel rehearing, after a three-judge panel ruled original jurisdiction to hear challenges to the Waters of the U.S. (WOTUS) rule properly lies in the court of appeals.

In their petitions for rehearing, the Utility Water Act Group, Texas Alliance for Responsible Growth, Southeastern Legal Foundation Inc., a group of states, led by Ohio, and the Washington Cattlemen’s Association and Chamber of Commerce wrote that full court review is necessary because the issue presented is of national significance, and the panel’s decision conflicts with those handed down by other circuits.

The petitions were due by March 23.

They join the National Association of Manufacturers and American Farm Bureau Federation, which filed their petition on Feb. 29. Another group of states, led by North Dakota, has previously filed a petition.

The court’s response to the petitions is due April 1.

Agriculture and Consumer Groups Asking for Updated Grass-fed Labeling Guidance

Riding the coattails of the GMO labeling debate, the American Grass-Fed Association is leading an effort seeking updated guidance for grass-fed labeling from USDA. Joining the association is the Consumer Federation of America and the National Farmers Union. The groups are asking the guidance at a minimum to require that producers comply with grass-fed label standards set by USDA’s Agricultural Marketing Service in 2006 but revoked in January. Meatingplace reports revoking the standards has led to confusion in the marketplace. In a letter to USDA, the groups urged the federal agency to provide clear direction and resist calls to “cheapen” grass-fed labeling claims. When it withdrew its standards, AMS said it had determined that it did not have the authority to define the term grass-fed. It said that responsibility lies with USDA’s Food Safety and Inspection Service. The letter was also signed by the Center for Rural Affairs, Consumer Reports, the CROPP Cooperative/Organic Valley, Food Animal Concerns Trust, National Sustainable Agriculture Coalition, and Western Organization of Resource Councils.

Senators Pressing for Review of Syngenta Deal

The Wall Street Journal reports Senator Chuck Grassley and other U.S. lawmakers are pushing for USDA to have a formal role in considering ChemChina's planned takeover of Switzerland's Syngenta.  Grassley, a top agriculture Senator from Iowa, says the $43 billion takeover of Syngenta could pose risks to the security of America’s food supply. Further, USDA has previously voiced concern over the deal for Syngenta, which is a top U.S. supplier of pesticides, soybean seeds and corn. Grassley told the Wall Street Journal a bipartisan group of senators would seek a formal role for USDA as the Treasury-led Committee on Foreign Investment in the U.S. carries out a national security review of the proposed deal. The committee is already expected to examine Syngenta’s U.S. chemical plants that are potential terror targets, including some near military bases. One of those is a facility about 10 miles from Omaha, Nebraska’s Offutt Air Force Base. Syngenta officials are convinced there is no security threat. Syngenta and ChemChina agreed to the takeover in February. Syngenta generates about one-quarter of its sales in North America.

Milk Processors Facing Competition from Customers

The Nation’s largest milk processor now faces competition from its biggest customer. Wal-Mart plans to start building its first milk processing plant this summer. Wal-Mart accounts for 16 percent of Dean Foods processing, the largest milk processor in the United States. Bloomberg reports Wal-Mart’s Indiana facility is expected to be one of the largest in the milk industry and will begin supplying the retailer’s private label Great Value brand next year. The store-owned processor will start supplying milk to Indiana, Illinois, Michigan, Ohio and northern Kentucky. The plant will allow Wal-Mart to lower cost and lengthen shelf life by bringing the production closer to the point of sale. More than 600 Wal-Mart stores and Sam’s Club locations are expected to be supplied by the new factory. Dean currently produces milk for the Great Value brand and will continue to be a supplier in other parts of the country. Still, the move came as a surprise and introduced a new threat to Dean’s fresh dairy volumes and margins. For now, Wal-Mart has no plans of building more milk processing plants across the nation.

ADM Files Suit against Canadian Pacific Railway over Service Delays

Archer Daniels Midland, or ADM, filed a lawsuit against the Canadian Pacific Railway over service disruptions in 2013 and 2014. Reuters reports the lawsuit alleges the Canadian Pacific Railway delays at corn processing plants in North Dakota and Minnesota stemmed partly from cost-cutting and the Canadian railroad’s pursuit of merger partners. Chicago-based ADM is one of the world’s largest grain traders and processors and filed the suit this month in the U.S. District Court for the Central District of Illinois. The lawsuit says ADM is seeking damages “resulting from one of the worst and most persistent railroad service failures experienced by ADM in many years.” However, the same day, Canadian Pacific filed a claim against ADM in the U.S. District Court for the District of Minnesota seeking payment of overdue charges. In early 2014, after months of worsening delays crippled the U.S. farm transportation system, farmers in the Upper Midwest held the largest grain stocks in years.

France Confirms BSE Case

The ag ministry for France says additional testing confirmed the suspected bovine spongiform encephalopathy(in-sef-o-lop-athy), or BSE, case. The European Union’s reference laboratory confirmed that the animal died from BSE. This will compromise France's BSE risk status with the World Organization for Animal Health and will likely lead to bans on exports from the country in some markets.  France has reported the isolated case to the European Commission and the World Organization for Animal Health. This is the third single case of BSE detected in Europe since 2015, according to the ministry. French officials were expected to implement management measures. The ministry has said that the detection of this isolated case demonstrates the effectiveness of France’s monitoring system that is in place throughout the food chain.

CME Moving Closer to Launching EU Wheat Contract

The CME Groups is one step closer to launching long-planned European Union wheat futures. The news comes after CME has resolved contract issues with grain silo operators in France, according to Reuters. CME Group is the world’s largest futures exchange and could announce the EU wheat market within weeks. Several sources told Reuters trading the EU contracts was expected to start in June of this year. A CME spokesperson said the group does not have a launch date to announce yet. A launch would put CME in competition with Euronext in Paris, whose milling wheat contract is a benchmark in the European Union. The 28-country Union is collectively the world's biggest wheat grower and exporter. Market upheaval caused by a rain-hit French harvest two years ago, which led the port silos that acts as Euronext's delivery points for wheat to impose extra quality requirements, fueled interest in CME's rival project.

Experts Expect Russia as Number 2 Wheat Exporter in 2014-16

A Russian agriculture consultancy group expects Russia to become the world's second-largest wheat exporter in 2015-16, thanks to its weak currency, its large crop and a decline in competition from its main rivals. Pro Farmers First Thing Today reports Russia is already exporting wheat at a record pace, and experts predict the nation's total grain shipments to climb to 33.0 million metric tons to 33.5 million metric tons, including 23.0 or more million metric tons of wheat. This would make Russia the second largest wheat exporter after the European Union for the first time. USDA also expects Russia to be the second largest wheat exporter after the EU this marketing year. In 2014-15, Russia occupied the number four wheat exporting spot, behind the EU, U.S. and Canada.

Zoetis Awards Scholarships to More Than 350 Veterinary Students at Veterinary Conference

Zoetis and the Association of American Veterinary Medical Colleges announced this year’s winners of the Zoetis Veterinary Student Scholarship Program. Now in its sixth year, this program recognized 353 second-and third-year veterinary students at the 2016 Student American Veterinary Medical Association Conference – awarding more than $700,000 in scholarships.  The program operates as part of the Zoetis Commitment to Veterinarians, a platform created by the company to support leadership and diversity among future veterinarians. Nearly 1,500 students applied for the scholarships this year from universities throughout the United States and the Caribbean.

Meat Inventories Show Modest Increase At End Of February

A modest increase in meat inventories at the end of February indicates demand for protein is healthy, with boneless beef supplies seeing an especially notable drawdown due to reduced imports, analysts at the Daily Livestock Report said.

Inventories in USDA’s latest cold storage report increased 0.5 percent in February from January, compared with the average increase of about 3 percent for the month, they noted.

“Meat protein production continues to increase and the fact that inventories have not increased significantly implies that product is moving and demand is generally good, both in domestic and export channels,” the analysts wrote in the report, published by Steve Meyer & Len Steiner Inc.

Total supplies of beef, pork, chicken and turkey in cold storage at the end of February were 1.6 percent above a year ago, at 2.268 billion pounds.

Boneless beef dips

A decline in beef imports contributed to a significant drawdown in boneless beef stocks, the analysts said. Liquidation of frozen fat trim probably also helped reduce overall beef inventories, they said.

Boneless beef in cold storage at the end of February was 449.2 million pounds, down 0.3 percent from a year ago and down 6 percent from January. Typically, boneless beef inventories decline just 1 percent, the analysts said.

Pork also down

Total pork in cold storage was 628.4 million pounds, 8.6 percent lower than a year ago and 0.9 percent below the five-year average, according to the analysts. Weekly hog slaughter for December through February was estimated up 2.9 percent from a year ago, and pork production was estimated up 2.1 percent, yet inventories have been drifting lower, the analysts noted.

Pork trim inventories remain light, down 41 percent from a year ago and 31 percent below the five-year average, which should support the market in the spring when demand for hot dogs and sausages increases, they said. Ham inventories are far from burdensome at 115.8 million pounds, 9.3 below a year ago and 1.4 below the five-year average, they wrote.

Chicken piling up

Total chicken inventories at the end of February were 810.4 million pounds, 10.7 percent higher than a year ago and 22.7 percent higher than the five-year average, the analysts said.

COOL Continues to Obstruct Canadian Sheep Industry

This article is being reprinted from the Manitoba Co-operator. 

Canadian sheep producers remain stranded by country-of-origin labelling restrictions, even as beef and pork producers have seen relief. According to Herman Bouw, Manitoba sheep producer and director of the Manitoba Sheep Association, COOL continues to affect the sector, isolating it from the U.S. market, due to active lobbying from the American sheep industry. 

"Everyone in pork and beef has seen some progress but there are still other sectors being affected by this," said Bouw. "The United States has not lifted COOL from lamb and sheep and I believe it is because of diligent lobbying from the American sheep industry." 

"Manitoba used to be very active in the exportation of ewes and heavy lambs into the States and now that option is no longer there," said Bouw. "We have been left scratching our heads, trying to figure out how we can work with the new federal minister of agriculture and see if there isn't some way to get this lifted." 

The impacts of the trade restrictions were highlighted this fall when the heavy lamb market saw an increase in animals, along with a drop in prices. 

"It is a bizarre situation and it actually became quite apparent it was a negative thing for us this fall," said Bouw. "There was a glut of heavy lamb in Western Canada and with the Canadian dollar being as poor as it was, it should have lent itself to sending our heavy lambs into the American industry." 

According to Bouw, the heavy lamb market saw an excess number of animals in the fall due to drought conditions in Western Canada, which caused a number of lambs to be pulled off the grass early. 

"The drought conditions in Western Canada caused those lambs to be backgrounded sooner than what normally would have occurred and so the market was flooded slightly," said Bouw. 

Bouw is also the Manitoba representative on the Canadian Sheep Federation, the national organization responsible for bringing issues that are affecting the industry to the attention of the federal government. He said the CSF has met with the new minister of agriculture and he is aware of the situation and stated he would make an effort to get a resolution. 

"We are hoping to get this dealt with sooner rather than later but it doesn't look like there is going to be a very quick resolution to this from where we sit right now," said Bouw.  

Forage Producers Can Consider Lesser-Known Plants

(DTN) -- Forage producers willing to think outside the box may find two lesser-known plants offer some advantages, while still maintaining comparable forage quality: sainfoin and fenugreek.

SAINFOIN

Sainfoin is a perennial forage legume native to Eastern Europe that was introduced to Montana and North Dakota in the 1950s. It can grow up to 3 feet tall with pink flowers and many leaflets. While the stems appear big and coarse, they are actually very soft and palatable. Sainfoin can be used for either grazing or baling.

Augustine Obour, assistant professor of soil science at the KSU Agricultural Research Center in Hays, Kansas, said one advantage of sainfoin is that it does not cause bloating problems for ruminant animals; any animal that eats alfalfa can eat sainfoin. Horses especially do well with sainfoin because of the non-bloating characteristic.

Sainfoin is hardy in cold, winter temperatures and is more drought tolerant than alfalfa and has earlier spring growth. Yields for sainfoin are usually greater than alfalfa yields because it emerges earlier from dormancy, Obour said. It is a non-invasive species, produces excellent honey from seed production fields and is resistant to alfalfa weevils.

It grows well in calcareous or high pH (pH>7.0) soil. Obour said most sainfoin is grown in North Dakota, South Dakota, Wyoming and Montana. Sainfoin prefers well-drained soil and does not do well in heavy soils or with too much moisture, such as under flood irrigation.

The seeding rate for sainfoin for irrigated fields is 25 to 30 pounds PLS (pure live seed) per acre in 7-to-12-inch rows, or 17 to 20 pounds PLS/acre when planting in a mixture, Obour said. The seeding recommendations for sainfoin for dryland fields is 21-to-30-inch rows at 12 to 30 pounds PLS/acre, or 10 to 12 pounds PLS/acre when planting in a mixture.

Growers must start with a clean seedbed, supply adequate phosphorus and nitrogen and plant with a seed depth of 1/2 to 3/4 inch. Sainfoin is a legume and does not need nitrogen fertilization.

Weed management is important during the first year either pre- or post-emergence, but after that sainfoin crops compete well with weeds.

As far as limitations, sainfoin stands will eventually decline after the fourth growing season, similar to alfalfa. Obour added that sainfoin does not compete well with cereal grains such as oats when planted as a companion crop and requires a specific rhizobium strain for inoculation.

Sainfoin produces large brown seeds, larger than most common forage legumes, in single pods that remain intact during harvest and cleaning, Obour said. Each de-hulled pod contains about 32,000 seeds per pound.

Don Keil has been growing sainfoin for 50 years on his farm near Conrad in north-central Montana. He sells Rocky Mountain Remont (RMR) Sainfoin, a natural selection regrowth variety of Remont Sainfoin, a variety developed by Montana State University. The advantages of RMR are its longevity and frost tolerance.

Keil grows about 1,300 acres of sainfoin yearly and uses it for grazing his own cattle, as well as for hay and for seed that he sells.

Keil said his cattle do better on sainfoin than anything he can buy, because it is high in energy and protein, is more palatable than alfalfa, and its digestibility is "beyond reproach."

There is a steady market for sainfoin bales in Keil's area, mostly to feedlots and horse owners.

Keil processes and ships sainfoin seed mostly to people wanting to grow it for forage via his company, Montana Seeds (http://bit.ly/…). He has a large market in Montana and the northwestern states, as sainfoin seems to do better in those areas. However, he gets calls for orders across the U.S.

The company sells about a half million pounds of sainfoin seed per year in 50-pound bags or totes, but will only sell a minimum of 400 pounds. Currently, Montana Seeds sells sainfoin seeds for $2 per pound, which includes the inoculant that is stirred into the seed before planting.

FENUGREEK

Fenugreek is an annual legume native to Europe and Asia but is mostly grown in Canada. The word fenugreek translates to "Greek hay."

According to Surya Acharya, research scientist and forage breeder for Agriculture and Agri-Food Canada in Lethbridge, Alberta, Fenugreek has many nutritional uses for humans, especially the gum, which is extracted for use in food products. Because of its aromatic compounds, it is also used for flavoring in foods such as ice cream and maple syrup. In addition, fenugreek is a common ingredient in curry powder.

Fenugreek seedlings are sometimes sold for cooking, as it is very healthy and helps with lowering cholesterol. It is eaten like other leafy greens, such as spinach and kale, Acharya said.

The many fenugreek producers in Saskatchewan still grow it mostly for seed, Acharya said. Mature brown fenugreek pods contain about 20 to 30 yellow seeds. While growers may keep some seed for planting, they sell most of the seed for extracting chemicals for food products. Currently, fenugreek seeds can only be purchased from Canada.

One company in Saskatchewan, Emerald Seed Products Ltd., produces large quantities of seed to be used for food products, however, Acharya has developed a variety of fenugreek called Tristar, which is used for forage. Tristar should be on the market by 2017.

Fenugreek grows about 2 feet tall, has highly branched stems with trifoliate leaves, and produces slender green pods and white flowers. Being an annual crop, fenugreek is usually baled like alfalfa. It is also a non-bloating forage legume, which makes it especially suitable for horses, which are more susceptible to bloat.

Obour added that fenugreek quality is very similar to the high-quality alfalfa needed by dairies. He said a lot of the research on fenugreek is being done in Canada and the feed is used for dairies, as it helps boost milk production in cattle.

The advantages of fenugreek are that stands don't decline with maturity and the mature plants are still highly digestible if left in the field. Although it is better to bale fenugreek in order to get the maximum tonnage, Acharya said, but it can also be grazed because of its ability to maintain its quality until it is fairly mature.

"Alfalfa and other forage crops normally start dropping their bottom leaves when they go past their flowering stage. That's why quality goes down after it has attained about 5% to 10% bloom," Acharya said. "But fenugreek, even the mature parts, do not lose its quality."

Although fenugreek requires less water than alfalfa, Obour said he planted fenugreek in Kansas in 2014, but with an extremely dry season the fenugreek did not do well. However, he said a study he did in Wyoming yielded 7,000 to 8,000 pounds per acre irrigated. Fenugreek grows well in the cooler Canadian climate, although it does best in the country's semiarid regions, Acharya said.

Fenugreek can also be grown as a short rotational crop.

"If you plant it in late May or early June, you can harvest it in August," Obour said. "So, you can grow it in rotation with other crops. If you harvest it early and have enough moisture you can grow a cereal crop like wheat."

Suspected Mad Cow Disease May Harm French Exports

A suspected case of mad cow disease in France could put French beef exports at risk. Bloomberg reports that testing of a carcass destined for human consumption detected a suspected case of bovine spongiform encephalopathy (in-sef-o-lop-athy), or BSE, known as mad cow disease. If confirmed, the BSE case would be the first in France since April of 2004. France currently holds a “negligible risk” status of BSE and risks losing that status if the case is confirmed, potentially closing some export markets. More than 185,000 BSE cases in cattle were confirmed in the European Union during the epidemic in the 1980s and 1990s. France is the biggest cattle producer in the European Union and exported the equivalent of $1.03 billion in beef last year.

Economist Compares Cuba to the Dominican Republic

An economist with USDA says if Congress lifts the embargo on U.S. trade with Cuba, the nation could become like the Dominican Republic regarding exports. Bryce Cooke of USDA’s Economic Research Service told the Hagstrom Report both Cuba and the Dominican Republic are similar in geography, population size and high literacy rates. Between 2013 and 2015, U.S. exports to the Dominican Republic averaged $1.2 billion while averaging $262 million to Cuba. The Dominican Republic depends on the United States for 45 percent of its food, while Cuba gets only 20 percent of its food from the United States. If the embargo is lifted, he added, Cuba would most likely export horticultural products, tobacco, and perhaps sugar. His comments come as President Obama was leaving the island nation of Cuba, wrapping up the first visit by a U.S. President to Cuba in 88 years.

ConAgra Latest to Announce National GMO Labeling

ConAgra Foods is the latest to say it will use labels disclosing the presence of genetically modified organisms in its food nationwide. Other food giants, including General Mills, Campbell Soup, Mars and Kellogg have made similar decisions regarding GMO labeling across the country. Pro Farmers First Thing Today reports the labeling decisions are in response to the Vermont law that will require such labeling starting in July. ConAgra explained that it believes consumers should be informed as to what is in their food and that addressing labeling for Vermont, only, would be a costly affair. ConAgra says that with other states currently considering different labeling requirements, “the need for a national, uniform approach in this area is as critical as ever.”

Judge opens door for Ammon Bundy, others to be prosecuted in Nevada and Oregon at same time

A federal judge in Portland ruled Tuesday that Ammon Bundy and four other men indicted in the armed takeover of the Malheur National Wildlife Refuge in eastern Oregon can be flown to Las Vegas to face criminal charges in the 2014 standoff near the Bundy ranch in Nevada.

Attorneys for the five defendants told U.S. District Judge Anna Brown that they don't think federal prosecutors in Oregon and Nevada should pursue criminal cases against them at the same time.

Splitting time between courtrooms and jail cells in Oregon and Nevada would severely compromise their ability to meaningfully communicate with their defense attorneys and would interfere with their rights to speedy trials, they argued.

In Oregon, the defendants – takeover leader Ammon Bundy, brother Ryan Bundy, Ryan Payne, Brian Cavalier and Blaine Cooper – face charges of using force to prevent employees of the U.S. Fish & Wildlife Service and the U.S. Bureau of Land Management from using facilities at the wildlife refuge during a 41-day occupation in January and February. In all, 26 defendants have been charged in Oregon in the takeover.

But the five who appeared in a Portland courtroom Tuesday also are part of a group of 19 indicted in Nevada for alleged crimes stemming from the 2014 armed standoff near Cliven Bundy's ranch near Bunkerville, Nev.

Federal officials say Cliven Bundy – father of Ammon and Ryan Bundy – had been trespassing on government land for more than 20 years by refusing to get permits or pay fees to the Bureau of Land Management to graze his cattle on the land.

When federal law enforcement officers tried to corral about 400 of Bundy's cattle in April 2014, federal prosecutors say Bundy, his sons and other defendants organized a "massive armed assault" by recruiting a few hundred others to stop officers from seizing Bundy's livestock.

After the Bundy brothers and others were indicted in Oregon, federal prosecutors indicted the Bundys and others in the 2014 ranch standoff. 

The Nevada indictment came nearly two years after the confrontation. Nevada prosecutors have said it's a complicated case that took time to carefully build, but some critics question the timing, wondering if the government is now trying to save face for not pursuing it earlier.

During Tuesday's hearing, Lisa Hay, a defense attorney for Ryan Payne, argued that prosecuting both cases at once could drag out the timeline for the cases and keep the defendants in custody longer.

The government shouldn't be allowed to "ping-pong these defendants between two jurisdictions," she said.

Payne's defense attorney in Nevada, Shari Kaufman, said she couldn't prepare for trial with her client over the telephone. For one, Kaufman said, there are hundreds of hours of video to watch. To claim that she and her client can carry on meaningful conversations when he's constantly shuttling back and forth between two states is "a farce" and "absurd," Kaufman said.

Ryan Bundy told the judge: "Our time would be completely taken up with transports."

But Steve Myhre, a federal prosecutor in Nevada, said the defense was "getting way ahead of" itself by claiming the defendants can't have adequate representation if the two criminal cases proceed simultaneously.

"Standing up here and yelling" isn't proof that the defendants' rights will be compromised, Myhre said.

The trials in Oregon and Nevada would be held on different dates, prosecutors said. Trial in the Oregon case is tentatively planned for September.

Craig Gabriel, a federal prosecutor in Portland, said he has "no intention" of delaying the criminal case in Oregon and that he's working toward a swift resolution.

The two cases aren't "the government's doing," Gabriel said. "The defendants had crimes that were committed here and in Nevada."

At that, one of the defendants in the courtroom – it's not clear which one – let out a loud guffaw.

Other than that minor outburst, the hearing was congenial. Brown, the judge, said she would allow the two Bundys, Payne, Cavalier and Cooper to be transported from Oregon to Nevada on April 13 so they could be present for arraignment in the ranch standoff case. Brown said the group must be back in Oregon within 10 days – by April 23.

She said she didn't think a single 10-day absence from Oregon would violate the defendants' rights in the wildlife refuge case to speedy trial or effective communications with counsel.

A federal judge in Nevada, Brown said, will have to decide whether being tried in Oregon ends up violating the defendants' rights in the Nevada case.

Brown's ruling affects two other Oregon defendants – Joseph O'Shaughnessy and Pete Santilli.

Both men are being held in custody for the Nevada case -- O'Shaughnessy is physically in Nevada and Santilli is in Oregon awaiting transfer to Nevada. They will return to Oregon by April 23 with the five other defendants, according to the judge's order.

After the judge made her ruling, defense attorneys expressed disappointment. Attorney Lissa Casey said she will appeal the decision on behalf of her client, Ammon Bundy.

"Moving Ammon to Nevada makes it more difficult for him to participate in his own defense, and it makes it more (challenging) for us to mount a zealous advocacy," Casey said in an emailed statement Tuesday. "...(W)e hope to keep Ammon in Oregon until this case is resolved."

-- Aimee Green

agreen@oregonian.com

Minnesota Department Of Agriculture Compensates Beekeepers For Damaged Hives

This week, Minnesota's Department of Agriculture compensated two beekeepers after investigators found that neonicotinoid-filled dust from a neighboring cornfield damaged their hives last spring.

Although research linking neonicotinoids and declines in pollinator health has been growing, most studies have not been able to show such a direct cause-and-effect relationship between neonicotinoid seed treatments and bee deaths.

The Minnesota case comes after a law banning the sale of neonicotinoids for consumer use was passed by the Maryland state Senate and is now under review by the House. In another case, The Center for Food Safety and its attorneys are spearheading a case filed with other environmental groups and beekeepers from California, South Dakota and Pennsylvania, as well as farmers from Pennsylvania and Kansas. The groups, which filed the case in the Northern District of California in San Francisco, want the EPA to require neonicotinoid seed treatment registrations under the Federal Insecticide, Fungicide, and Rodenticide Act, or FIFRA.

Through it all, the EPA is continuing its registration review of all neonicotinoids on the market, with a special focus on their alleged role in the declining health of pollinators and colony collapse disorder.

Neonicotinoids are often used as seed treatments to control soil pests and sucking insects. USDA estimates that 150 million acres were planted annually with seeds coated by the chemicals.

Brand names of commonly used neonicotinoids include Poncho and Gaucho (Bayer/imidacloprid) and Cruiser (Syngenta/ thiamethoxam). The insecticides are often included in combination with fungicides such as in Valent's Intego Suite Soybeans (clothianidin), Monsanto's Acceleron or Pioneer's Premium Seed Treatment. Corn seed generally comes pretreated with some level of neonicotinoid seed treatment, although growers have some choice in the rate of protection offered. Soybean growers have more flexibility in choosing whether to have seed treated since soybean seed treatments are generally treated down-stream from the seed supplier.

DUST DANGER REINFORCED

The Minnesota case was a prime example of the "dust-off" phenomenon that can occur with neonicotinoid-coated seeds used with talc seed lubricants. Small amounts of the insecticide can mix with the lubricant coating and contaminate the lubricant dust that blows out of the planter as it is dropping seeds. In this form, the chemicals can drift off target onto flowering plants and trees nearby, for example. When bees visit these flowers, they carry the contaminated pollen back to the hive.

Neonicotinoids, which are highly soluble, can also leach off seeds into groundwater and nearby streams, according to a 2014 USGS study.

One of the Minnesota beekeepers told the Minneapolis Star Tribune that the contamination occurred very directly -- the dust blew from her neighbor's corn planter toward her hives. Two days later, MDA investigators documented "acute levels of the toxins" in the bodies of dead bees, according to the Tribune story.

The beekeepers were reimbursed under a state law established in 2014 to compensate beekeepers in the case of proven acute pesticide poisoning.

USDA Seeking Applications for Rural Development Loans and Grants

USDA is seeking applications for loans and grants to help support the start-up or expansion of rural businesses. The funding is being provided through the Rural Economic Development Loan and Grant program. Under this program, USDA provides zero-interest loans and grants to local utilities, which use the funding to create revolving funds for projects that will create or retain jobs in rural areas. Rural Business Cooperative-Service Administrator Sam Rikkers says the loans and grants will “spur entrepreneurship, create jobs and improve the quality of life in rural America.” USDA is making $37 million in loans and $11 million in grants available. A recipient may receive a loan of up to $1 million, or a grant of up to $300,000. USDA says anyone interested in applying for the grants and loans should contact their local Rural Development state office.

U.S. Honey Production Down 12 Percent in 2015

USDA says honey production in 2015 dropped 12 percent in operations with five or more bee colonies. The USDA report released Tuesday shows United States honey production in 2015 from producers with five or more colonies totaled 157 million pounds. There were 2.66 million colonies from which honey was harvested in 2015, down three percent from 2014. Yield of honey harvested per colony averaged 58.9 pounds, down ten percent from the 65.1 pounds in 2014. At the same time, United States honey prices decreased during 2015 to 209.0 cents per pound, down four percent from a record high of 217.3 cents per pound in 2014. Producer honey stocks were 42.2 million pounds on December 15th, 2015, up two percent from a year earlier.

USDA Highlights Optimism Following Cuba Announcement

USDA says leaders from across the U.S. agriculture and food sectors are expressing support and optimism in new opportunities for collaboration with their Cuban counterparts. Agriculture Secretary Tom Vilsack Monday announced Research and Promotion Programs and Marketing Order organizations may conduct research and information sharing with Cuba. The groups represent U.S. beef, pork, corn, soy and other commodities and are responsible for creating bonds with consumers and businesses around the world in support of U.S. agriculture. The announcement was made while Vilsack was traveling in Cuba with President Barack Obama. Following the announcement, numerous farm and checkoff organizations expressed optimism regarding interaction with Cuba.

Sorghum Industry Starting Research and Marketing Program

An agreement between the Sorghum Checkoff, the Kansas Grain Sorghum Commission and Kansas State University seeks to increase grain sorghum productivity and expand markets by 2025. Starting next month, the coordinated efforts of the Collaborative Sorghum Investment Program will operate through the Center for Sorghum Improvement at Kansas State University. However, industry leaders say the results will impact sorghum producers throughout the country. Sorghum Checkoff executive director Florentino Lopez says the program will serve as a platform aimed at investing checkoff dollars to increase producer profitability and enhance the sorghum industry. The program seeks to increase the national average yield from 61.95 bushels per acre to 100 bushels per acre by 2025 through research. The program will also work to develop marketplaces, attributes, qualities and other factors capable of increasing demand for U.S. sorghum to 1.25 million bushels of sorghum by 2025.

Cuba Would Not Create Excess of Pork Exports

As the President is visiting Cuba this week, National Hog Farmer reports the island county will not bring a flood of new exports for U.S. pork producers. The report lists three main reasons while Cuba will not be a boon for exports, starting with the fact that Cuba is roughly the same size and population of Ohio. Further, the gross national income per person in Cuba is $5,880 with the take-home salary for the majority of Cubans around $20 a month, and the Cuban economy remains troubled. The U.S. Central Intelligence Agency estimates the size of the Cuban economy is $121 billion. For years, the country has remained isolated, refusing relationships with the International Monetary Fund and World Bank. Further, it owes large sums of money to Venezuela, Russia, China and other countries. Nick Giordano of the National Pork Producers Council says while everyone is talking about Cuba, “we are going to sell a lot more pork to Argentina than Cuba.”

National Weather Service Posts Red Flag Fire Warnings for 11 States

The National Weather Service posted “red flag” fire warnings for 11 states from South Dakota to Texas and part of Florida. Critical conditions caused by warm, dry weather and high winds were forecast to continue through Wednesday, the U.S. Storm Prediction Center said.

“Any fires that develop will likely spread furiously and burn intensely,” the weather service said Monday.

As spring began in the U.S., Boston got about 3 inches (8 centimeters) of snow Monday and its suburban areas more before the skies cleared. Snow capped the daffodils that had begun to bloom in New York, but the weekend chill throughout the Northeast didn’t last long enough to do much damage.

‘Bigger Concerns’

“We dodged it for two reasons,” said David Robinson, New Jersey state climatologist based at Rutgers University. Spring growth “is not as far along in the Northeast and the cold was not that exceptionally cold. There are bigger concerns elsewhere in the nation.”

Frost advisories, freeze watches and warnings extended from Mississippi into North Carolina and northern Florida until Tuesday morning, the weather service said.

Temperatures fell to damaging thresholds over the weekend on 67 percent of the U.S. hard red winter crop, said Mike Tannura, owner of Chicago-based T-storm Weather LLC. In Oklahoma, for example, temperatures dropped below 32 degrees Fahrenheit (0 Celsius) for 30 to 40 hours in many places and down to 24 degrees, the level of a hard freeze, for almost a day, said Gary McManus, state climatologist.

“The chance that there was damage to the wheat is probably significant,” McManus said. Gauging the total extent of damage will probably take about a week or so.

Across the Midwest and Plains, farmers looking to get an early start to the growing season were probably given pause by the cold and the forecast for more, said David Streit, co-founder of Commodity Weather Group LLC in Bethesda, Maryland. There is a potential for cold starting this weekend through the beginning of April.

“Anyone who was crazy enough to plant at this point, I am sorry for them,” Streit said.

Heat First

Before the cold begins, however, in Oklahoma as well as across the Plains, heat has snapped back and highs in the 70s and 80s are possible through the middle of the week, the weather service said.

The fire threat is worse this year because last year was so wet, McManus said. The rain that washed away drought across Oklahoma brought forth a bounty of vegetation, all of which is dead or dormant now and just waiting to burn. The winter, which was the state’s fourth-warmest, also helped usher in the start of another round of drought for the northern and western counties, he said.

Oklahoma Drought

More than a third of the state is abnormally dry or in drought, according to the U.S. Drought Monitor in Lincoln, Nebraska. Three months ago, there wasn’t a parcel in need of water.

“The fire danger is part of our natural climate here, but things are worse this year,” McManus said.

What the region needs are some warm rainy days to quench the parched soil and to keep the frost at bay.

Once the plants start to “green up,” the fire season usually ends and things can get back to normal, McManus said.

Mars Inc. Adds Special Labeling For GMO's

(Dow Jones) -- Candy maker Mars Inc. joins a small group of U.S. food companies adding special labels to products that contain genetically modified organisms.

Mars, which makes M&M's chocolate and Wrigley gum, said it is adding GMO labels to its foods across the U.S. in response to the looming deadline of a Vermont law that requires such disclosure.

Though Vermont's a tiny market for global powerhouses like Mars, it is having an outsize effect on the industry with the nation's first GMO labeling mandate. Food makers say it would be too complex and expensive to create a separate distribution network for the 626,000-person state.

As a result, Campbell Soup Co. in January said it would begin labeling its soup and cookies made with GMOs. General Mills Inc. followed with a similar statement Friday.

A Mars spokesman said the company updated its website Friday to reflect its decision. "We firmly believe GM ingredients are safe," the website states, but, "We're also committed to being transparent." About one-third of its more than $33 billion in annual sales comes from North America.

Rival Hershey Co. has said it is working on removing GMOs from its chocolate and snacks, where practical. But it hasn't gone so far as to put GMO labels on its packaging.

This isn't the first time Mars has diverged from the broader industry on a political issue. Last year, it became one of the few U.S. food giants to support calling out added sugar on nutrition facts panels, which federal regulators proposed in 2014.