Old-Crop Stocks Just Below Average In USDA End-Of-Marketing Year Report

(DTN) -- Old-crop stocks for corn and soybeans came in just below the pre-report averages in USDA's end-of-marketing year for both crops.

Corn came in at 1.738 billion bushels while soybean stocks came in at 197 million bushels.

Quarterly wheat stocks, however, came in near the high range of pre-report estimates as USDA also revised several numbers from the 2015-16 production for different wheat classes.

CORN

Old crop corn stocks on Sept. 1 totaled 1.738 billion bushels, coming in just under the pre-report average but well within the estimates offered by analysts. Of those stocks, USDA stated farms were storing 627 million bushels, up 6% from a year ago. Off-farm stocks were at 1.11 billion bushels, down 2% from a year ago.

The June-August "disappearance" or usage was 2.97 billion bushels, up 8.4% from a year ago, reflecting strong demand for corn in the fourth quarter.

SOYBEANS

Old-crop soybeans in all positions on Sept. 1 totaled 197 million bushels, up 3% from a year ago. The soybean stocks were slightly below the average pre-report estimate, but well within range of the estimates offered. On-farm stocks totaled 41.6 million bushels, down 16% from a year. Off-farm stocks were pegged at 155 million bushels, up 10% from a year ago.

The June-August usage was 657 million bushels, up 55% from a year ago. The high volume of usage reflected the poor soybean crop in South America and continued high demand for U.S. exports, especially in China.

WHEAT

All-wheat stored on Sept. 1 totaled 2.527 billion bushels, up 21% from a year ago. The old-crop wheat stocks were near the high end of the pre-report estimates. On-farm stocks were estimated at 726 million bushels, up 12% from last year. Off-farm stocks were pegged at 1.8 billion bushels, up 24% from a year ago.

The June-August disappearance was 758 million bushels, up 6% from the time last year.

All-wheat production totaled 2.31 billion bushels in 2016, up 12% from a revised 2015 total of 2.06 billion bushels. The average 2016 yield was pegged at 52.6 bushels per acre, a record high and up 9 bushels from 2015.

Winter wheat production for 2016 totaled 1.67 billion bushels, up 22% from a revised 2015 total of 1.37 billion bushels.

Hard-red winter wheat totaled 1.08 billion bushels, up 30% from last year due to that record yield.

Soft-red winter production totaled 345 million bushels, down 4% from last year.

Other spring wheat production for 2016 is estimated at 534 million bushels, down 11% from a revised 2015 total of 603 million bushels.

Durum production for 2016 is estimated at 104 million bushels, up 24% from a revised 2015 total of 84 million bushels.

Congress Approves Continuing Resolution Keeping Government Open until December

After weeks of political wrangling, the Senate and House of Representatives acted on a continuing resolution to enable government operations to continue at largely FY 2016 levels until December 9, 2016.  When Congress acts on CRs, Congressional leaders will usually minimize the inclusion of any extraneous provisions.  The debate this time around centered around the inclusion of funding to combat the Zika virus, respond to flooding in Louisiana, and fix the water infrastructure system in Flint, MI following the lead contamination disaster. The question of how to address funding for Flint ended up being one of the last sticking points preventing completion of the CR.  Following a failed procedural vote in the Senate on Tuesday, House leadership agreed to allow for consideration of an amendment providing funding for Flint as part of Water Resources Development Act (WRDA).  With that step being taken, the CR was able to move forward through both the Senate and the House on Wednesday, ultimately meaning the government will not shut down come October 1.

With action on the CR now complete, this will set up the need for action on another CR or an omnibus appropriations bill during the Lame Duck session of Congress following the election.  NAWG is focused on a number of priorities in an omnibus appropriations bill, including ensuring there are no cuts to crop insurance or other areas of the Farm Bill, increased funding for the U.S. Wheat and Barley Scab Initiative (as was included in the House and Senate versions of the FY 2017 Agriculture Appropriations bill) and the Small Grains Genomic Initiative, limitations on funding for implementation of the Waters of the U.S. (WOTUS) rule, sufficient funding for FSA loan programs, and funding for a study required by the new GMO labeling law, among other priorities.

Idaho receives FDA grant focused on produce safety

New laws and regulations require implementation and the Idaho State Department of Agriculture has announced that it has been selected to receive a five-year grand award offered by the U.S. Department of Health and Human Services. The grant is related to implementing the new Food Safety Modernization Act Produce Safety Rule. The first-year grant award amounts to $429,650.

The grant project aims to facilitate development of a produce safety plant to help growers align with FSMA's Produce Safety Rule requirements. The plan is also part of an effort to create a national integrated food safety system. The aim is to lower the risk of foodborne illnesses associated with produce.

The project primarily involves conducting an assessment of Idaho's produce landscape and developing and disseminating outreach, education and technical assistance to producers in complying with the Product Safety Rule. The Product Safety Rule is one of seven new FSMA rules published by the U.S. Food and Drug Administration and outlines requirements for on-farm standards and measures to improve produce safety of ag products generally consumed raw.

Depending on the size of the operation, onions and tree fruit farms are examples of operations which may be subject to the rule.

Learn more by calling 218-332-8671.

US Consumption of Beef and Pork Projected to Rise Through 2025

USDA projections show that production of beef and pork will expand steadily between 2016 and 2025 and result in lower prices, which in turn is expected to increase per capita consumption of both meats, according to the Economic Research Service (ERS).

As a result of greater production, beef prices are projected to drop 10.6% and pork prices are projected to drop 11.6% between 2016 and 2025. Cheaper prices will help reverse a multiyear decline in meat consumption in the United States.

Per capita consumption of beef is also forecast to increase 2.7% by 2025, outpacing growth in consumption of broilers (2.3%) and pork (1.7%). USDA expects this will increase the total amount of meat consumed per person in the U.S. from 211 pounds in 2015 to nearly 219 pounds by 2025.

China Wants GMOs, Citizens Don’t

A new report says China wants to incorporate the use of genetically modified organisms in agriculture, but the Chinese people do not. And Bloomberg says the latest food safety scandal in China might be its most damaging scandal yet. A former doctoral student at a national testing center in China accused the testing center of scientific fraud, including claims that records were doctored extensively, among other things. China's Ministry of Agriculture responded by suspending operations at the center. That’s just the latest in a series of scandals that is not dampening China’s public hostility towards GMOs. Opponents claim GMOs are unsafe, but that goes against the scientific consensus within and outside of China. Bloomberg suggests that until China’s government addresses the lack of confidence in its food safety programs, it's likely to face considerable and growing opposition to a GMO program. While farmers in China do not use GM crops, the nation does, however, allow imports of GM crops to enter the country.

FDA Allows Peanuts to be called “Healthy”

The Food and Drug Administration is now allowing peanuts to be called “healthy.” FDA announced this week the Administration is beginning the public process to redefine the “healthy” nutrient content claim for food labeling. In the interim, FDA has issued guidelines that allow the industry to refer to peanuts as healthy, due to their high levels of unsaturated fat and overall beneficial nutrient profile. A dietitian with the National Peanut Board said following the FDA announcement “it's exciting to be able to clearly tell the public that peanuts are indeed a healthy food.” The comment period for the use of the term “healthy” in the labeling of food products is open until January 26th of next year.

Farm Economy Slumping into Fourth Quarter 2016

A report this week by the Federal Reserve Bank of Kansas City shows the farm economy slumping into the fourth quarter of the year. The bank says the U.S. farm economy weakened further in the third quarter despite an upward revision to farm income projections by the Department of Agriculture. Following a brief rebound in crop prices in the second quarter, the bank says profit margins for crop producers deteriorated in August and September. Profit margins also remained poor in the cattle and dairy sectors. Agricultural credit conditions have weakened further as loan repayment problems have picked up steadily, and bankers in the Midwest have expressed increasing concerns about the softening farm economy spilling over to Main Street business activity in rural areas.

NCGA Applauds WRDA House Passage

The National Corn Growers Association applauded House passage of the Water Resources and Development Act by the U.S. House this week. NCGA First Vice President Wesley Spurlock says the Act will play a “vital role in moving corn to export markets.” NCGA notes that a main focus of the WRDA 2016 bill is clearing the backlog of projects managed by the U.S. Army Corps of Engineers. It also provides more than $10 billion in funding to the Army Corps to develop, maintain and support the nation's port and waterways infrastructures. The next step for WRDA is a conference of the House and Senate bills, with a potential final bill ready to be signed by the President by the end of the year.

Alberta-Based Western Feedlots Announces Closure For Next Year

Last week, Alberta-based Western Feedlots announced it would close early next year. It was stunning news from a company nearly 60-years-old, and it has cattlemen worried on both sides of the border. 

Western CEO Dave Plett said dismal market conditions and a poor political environment were factors contributing to the closure of the three feedlots that have capacity for 100,000 cattle.

The economic impact to the economy in Alberta could be significant, and the two major packers in the area, Cargill and JBS Canada, should be concerned about the loss of a source of four to five thousand cattle per week for their plants.

Cow-calf producers will also miss one more potential buyer for their calves.

Alberta has already lost five family-run feedyards over the past two or three years due to what some are calling a high-cost environment.

Rick Paskal, president of Van Raay Paskal Farms, an Alberta cattle feeding company, predicts more cattle feeders will close the gate in the next six months. He warns that the struggling cattle feeding business in Alberta will send more cattle to the United States for feeding.

Alberta cattle feeders say they are at a $5 to $6 disadvantage when compared to feeding cattle in the U.S., and that a new municipal tax of $3 per head tax on feedyards in Lethbridge County, makes that disadvantage $8 to $9. That tax, they say, makes it even more likely that Canadian cattle will go south for feeding.

Congress Nearing Government Funding Deal

(Dow Jones) -- Congress appeared to be nearing a final deal to keep the government funded through early December after House leaders agreed to include assistance for residents of Flint, Mich., in a water resources bill.

Lawmakers have struggled to reach an agreement over what should be included in a stopgap spending bill, known as a continuing resolution, that would keep the government running through Dec. 9 after its current funding expires at midnight on Friday. Democrats had balked at the latest version of the measure, which includes flood relief for certain states, but no assistance for Flint residents, whose drinking water became contaminated with lead in 2014.

But Democrats' concerns looked likely to be assuaged after House leaders agreed late Tuesday night to vote Wednesday on an amendment to the water resources bill, currently being considered by the House, that would authorize $170 million in aid for Flint residents.

The Senate water bill, passed earlier this month, includes Flint assistance that is structured differently. An aide to House Minority Leader Nancy Pelosi (D., Calif.) said the new House amendment from Reps. Dan Kildee (D., Mich.) and John Moolenaar (R., Mich.) represents an agreement between Mrs. Pelosi and House Speaker Paul Ryan (R., Wis.) that would ultimately provide the necessary funding for Flint -- once negotiators from the House and Senate hash out a compromise version of the bill when Congress returns to Washington after the election.

The House Flint amendment "will help unlock the continuing resolution, which has been stalling in the Senate, which now I think will be unstuck," Mr. Ryan said Wednesday morning in a discussion at the Economic Club of Washington, D.C.

Senate Majority Leader Mitch McConnell (R., Ky.) said that he and the Senate Republican who oversees water-infrastructure issues had "pledged to continue to pursue resources for Flint" through separate legislation. As a result, Mr. McConnell said, "we are hopeful that we will soon reach an agreement with our Democratic colleagues to move forward" on the spending bill later Wednesday.

But Senate Minority Leader Harry Reid, D-Nev., suggested that a deal wasn't done yet. "I do have some concern," Mr. Reid said, wondering "why can't they just say they'll do it?" Still, he said that "I'm glad to see progress has been made," and while "we're not there yet but I hope that we can get that done expeditiously."

Securing Flint aid in both chambers' water bills appeared likely to ease the last remaining sticking point preventing passage of the stopgap spending bill, which stalled in the Senate on a procedural vote Tuesday. Senate Democratic aides said lawmakers needed to discuss the latest developments, but that securing Flint aid in the House water bill appeared likely to enable passage of the spending bill, which GOP leaders support.

The spending bill, which could come up for a vote as soon as Wednesday in the Senate, also includes $1.1 billion to combat the Zika virus and $500 million for disaster recovery in Louisiana and other states.

If passed by the Senate, the spending bill would likely come up for a vote Thursday or Friday in the House. Some House Democrats are still expected to oppose the spending bill, because they wanted to secure immediate Flint funding. Some Democrats are also unhappy that they weren't able to remove language from the spending bill that prevents the Securities and Exchange Commission from working on a rule that would require publicly traded companies to disclose political contributions.

Grains Council, Renewable Fuels Association Disappointed in China DDGs Determination

The U.S. Grains Council and the Renewable Fuels Association expressed disappointment Wednesday with China’s preliminary determination regarding U.S. dried distiller’s grains. The Ministry of Commerce of the People's Republic of China claims DDGs are being unfairly subsidized by U.S. government entities and have caused injury to China’s DDGs industry. The groups say the announcement was not a surprise, but challenge that “U.S. DDGs have not caused any injury to China.” The groups say DDGs play an important role in protecting Chinese feed producers and households against unpredictable swings in global commodity prices. The groups say “we will continue cooperating fully with these investigations” and hope China “will find in its final determination that continued access for U.S. DDGs is in China’s interest.”

USDA GMO Labeling Study Waiting on Funding

The Department of Agriculture may have to wait until later this year to receive funding for the congressionally mandated study on electronic GMO labeling. Politico reports USDA Secretary Tom Vilsack said this week the funding would not be in the continuing resolution that was passed by the Senate Wednesday afternoon. The study was mandated as part of the GMO labeling bill passed by Congress this summer. Congress also set a deadline of two years for the study and the GMO labeling rules that USDA must craft. Vilsack said “it’s important for us to figure out a way to get this started” to meet the timeline Congress intended for GMO labeling. The mandatory labeling bill allows for scannable codes on food packaging that directs consumers to label information online through a smartphone.

Arkansas Representative Introduces Tax Deferred Savings Bill for Farmers

Republican U.S. Representative Rick Crawford of Arkansas this week introduced a bill in the U.S. House intended to help farmers save for disasters and difficult times. Crawford says the Farm Risk Abatement and Mitigation Election Act would give farmers the option of taking disaster preparedness into their hands. The FRAME Act would establish tax-deferred farm savings accounts that farmers could withdraw from during difficult times without waiting for disaster declarations and government assistance. He says the accounts would work much like an IRA or Health Savings Account and would give farmers the option of investing. To encourage initial investment, farmers would be eligible to write-off FRAME Account contributions on their tax bill. Contributions would be tax deductible up to $50,000 per year, and farmers would retain 10 percent of their contributions as a tax credit during the first few years after opening the account. The bill was referred to the House Ways and Means Committee for consideration.

Judge Allows Syngenta Corn Case to Continue as Class Action Suit

A federal judge in Kansas has allowed a lawsuit filed by farmers against Syngenta to move forward as a class action lawsuit. Farmers from the U.S. sued Syngenta in 2014 after grain shipments to China were rejected because of an unapproved genetically engineered trait was found. The trait, Syngenta’s Agrisure Viptera, was unapproved for import by China. Farmers who did not plant Viptera corn claimed they suffered losses when the rejections disrupted trade and dragged down corn prices. It is estimated by the plaintiffs that U.S. corn producers lost between $5-7 billion in current and future revenue because China stopped importing U.S. corn at the time. An attorney appointed to represent the farmers says the ruling “will make it easier and less expensive for farmers to pursue their claims against Syngenta.” Syngenta says it is not responsible for the losses and may appeal the District Court's decision.

Putin Tells Russia to Not Hurry Grain Movement

President Vladimir Putin of Russia this week hailed the nation's farmers efforts in producing the biggest post-Soviet grain crop this week. However, in his message to farmers, he cautioned the country should not be in a hurry to move excess grain. Russia’s Agriculture Ministry Tuesday announced the nation’s grain crop was estimated at 110 to 115 million metric tons, the largest overall grain crop for Russia in 25 years. Pro Farmer’s First Thing Today says wheat exports from Russia are projected around 30 million metric tons. Putin also cautioned Russia’s agriculture industry about rushing to boost exports until global prices for grain increase. He said “we shouldn't be hurrying to dump extra volumes on the market." Farmers in Russia this year enjoyed a mild winter and warm, wet summer, helping them bounce back from the 2010 drought. Russia’s agricultural output has gradually recovered from its tough Soviet times when the nation had to import American wheat. Now, Russia is expected to be the biggest wheat exporter.

Millennials are Big Organic Consumers

The Organic Trade Association says millennials are big consumers of organic foods and other organic products. OTA announced the U.S. Families’ Organic Attitudes and Beliefs 2016 Tracking Study during a conference last week. The survey shows about 52 percent of household heads that buy organic food are millennials in the 18- to-34-year-old age group, according to Agri-Pulse. Behind millennials, 35 percent of household heads that buy organic are in the Generation X category of 35 to 50 years old and 14 percent are baby boomers, 51 to 69 years old. The survey, which hasn't been published yet in full, also shows that 54 percent of millennials put a high level of trust in the organic seal on food. The survey also shows that 77 percent of American consumers consider themselves “very knowledgeable” about organic qualities. The study polled more than 1,800 households throughout the country with at least one child under 18 years old.

Larger Milk Herd Year-Over-Year Reported

A weak dairy cull cow market, coupled with and an abundance of heifers at relatively higher prices, could be creating enough of an incentive for U.S. dairy producers to keep even marginal cows in their herds. The nation’s larger milk herd supported year-over-year increases in August milk production despite a record-hot month in several of the top-10 dairy states.

In August, U.S. dairy producers milked more cows than in any month in nearly 20 years. In its recent Milk Production report, USDA estimated the nation’s milk herd at 9.36 million cows, up 45,000 head from the previous year. USDA also revised its estimate of the July milk herd higher by 12,000 head and reported a July-to-August increase of 16,000 head.

“The U.S. dairy herd might even be larger than USDA reports. In its recent Milk Production report, USDA had production per cow up 3% in New York despite record-breaking heat in August,” says Sarina Sharp, agricultural economist with the Daily Dairy Report. “It was also hot in Michigan, where producers were reporting severe declines in production per cow.”

Even so, USDA reported that milk yields in Michigan were 3.5% higher than a year ago. Sharp wouldn’t be surprised to see upward revisions in milk cow numbers in both of those states when USDA releases its September Milk Production report on October 20.  

According to the National Oceanic and Atmospheric Administration, every state in the contiguous United States had above average summer temperatures. Year-to-date temperatures in the contiguous 48 are also above average. Moreover, California reported its warmest summer on record, while Connecticut, Delaware, Maryland, Massachusetts, New Jersey, Pennsylvania, and Rhode Island posted a record hot August.          

“Producers have continued to expand even with this year’s thin dairy margins, and floundering beef prices are largely to blame,” says Sharp. “Last week, lean beef prices averaged $2.03/lb., a 25% drop from a year ago, which reduces the value of dairy cull cows and bull calves.” A drop in the cost of replacement heifers, however, has not kept pace with the declining values of cull cows and bull calves.

“The net cost to cull and replace older cows has climbed significantly, and the disparity has incentivized dairy producers to keep cull rates low,” notes Sharp. In July, U.S. dairy producers culled just 2.3% of the milking herd, the smallest share since June 2014.        

“When beef prices were high, some dairy producers bred a share of their herds to beef bulls and sold the calves and less desirable heifers to feedlots,” Sharp notes. “Sales to feedlots are happening with less frequency now, leaving more heifers available to dairy producers. Because bull calves and other cattle destined for the slaughterhouse are now less valuable than they had been, producers are likely to use more sexed semen and embryos. This will augment dairy heifer numbers for years to come, and heifer supplies are already large.”

At the beginning of the year, more than 3.1 million dairy heifers were expected to calve in 2016, which is by far the largest number since USDA began reporting the statistic in 2001, Sharp notes.        

“As heifer supplies continue to grow, U.S. milk output is likely to expand, and dairy cow values will probably decline,” Sharp adds. “The lack of processing capacity could be the only factor to limit milk output in some of the fastest-growing regions. The United States will need to improve exports to prevent dairy product stockpiles from growing even larger.”

Fortunately, milk production in other major dairy exporting countries particularly New Zealand, Australia, and parts of Europe, is likely to recede in the near-term.

Proposed Estate Tax Regulations Threaten Family Businesses

WASHINGTON (Sept. 28, 2016) – The National Cattlemen’s Beef Association along with more than 3,800 organizations and family-owned enterprises sent a letter to Treasury Secretary Jacob Lew adamantly opposing and asking for withdrawal of the newly proposed estate tax regulations by the Department of Treasury. The proposed regulations under section 2704 of the Internal Revenue Code would permanently change estate planning for families that own a controlling interest in a privately-held entity.

“The proposed guidance is one of the most sweeping changes to estate tax policies in the last 25 years and would be detrimental to active enterprises and family-owned businesses that employ millions of workers throughout the nation,” the letter reads. “In particular, these rules would impose significant new tax costs on family-owned businesses, diverting capital from business investment, costing jobs and threatening the ability of families to pass businesses on to the next generation of owners.”

Danielle Beck, NCBA director of government affairs, said the regulations would eliminate or greatly reduce available valuation discounts for family-related entities, which in turn increase the tax associated with common transfers including inheritance.

“These proposed regulations would eliminate or greatly reduce marketability for family related entities, effectively discouraging families from continuing to operate or grow their businesses and pass them on to future generations,” said Beck. “Producers are often forced into selling land or cattle in order to pay the tax, and in some cases, are put out of business. The Administration is causing unnecessary economic harm to family businesses.”

NCBA urges the Department of Treasury to withdraw the proposed estate tax regulations.

Prospects for a Vote on TPP Improving Slightly

Several prominent politicians have recently made comments that would seem to boost prospects for a vote on the Trans-Pacific Partnership in the lame-duck session of Congress after the elections. A Minnesota Ag Connection report says Republican Senator Orrin Hatch of Utah is Chair of the Senate Finance Committee, which has authority in trade matters, and he said the upper chamber could consider TPP during a lame duck session. Texas Republican Kevin Brady, Chair of the House Ways and Means Committee, echoed Hatch in an interview with the Texas Tribune. Brady told the newspaper it’s a mistake to withdraw from the Trans-Pacific Partnership because if America abandons the Asian markets, “we will lose.” Presidential candidate Hillary Clinton has come out against the deal, but former President Bill Clinton recently indicated that she would like changes to the deal but would support it as president. Iowa State University economist Dermont Hayes said the TPP would cause pork exports to jump exponentially as the product moves overseas to the other 11 nations in the deal. Hayes said the exports would directly tie to 10,000 new jobs in the U.S.

Canada, China, Sign Canola and Beef Trade Agreement

Trade leaders from Canada and China have signed a trade agreement that supports canola exports to China. Canola is Canada’s second-largest export and top agricultural export to China, according to World Grain News. Canada’s Prime Minister and China’s Premier agreed on a memo that outlines “stable and predictable trade” for exports of Canola to China. The agreement allows uninterrupted canola trade between Canada and China through 2020. The agreement stems from blackleg disease that affects canola in Canada and China’s concern of the disease entering the nation through exports. The agreement ensures the two countries will work together to prevent blackleg disease from entering China. The two nations also signed a protocol to expand market access for frozen bone-in beef from Canada and have also advanced several key initiatives to support trade in pork, bovine genetics and some processed foods.

USDA Releases August Cold Storage Report

USDA released the August Cold Storage report which showed a decline of inventory for butter and cheese. This was certainly a move in the right direction after three consecutive months of total cheese inventory setting new records. Cheese and butter prices have reflected higher inventory and the availability of supply to the industry. Prices have declined, but have not fallen out of the proverbial bed due to strong demand. The anticipation is that strong demand will reduce inventory through the end of the year. However, the extent of the reduction of inventory will be seen over the next four months.

Cheese and butter exports have been suffering for quite some time due to the price disparity between U.S. and World prices. That has been changing as Global Dairy Trade auction prices have been on the rise during the past four events. This has moved cheddar cheese price to $1.60 and slightly above U.S price. Butter price on the recent auction increased to $1.77 compared to the U.S price of nearly $2.00. Butter price still has a way to go while cheese price is becoming competitive. But as I mentioned in my previous article, this may not translate into an immediate increase in exports due to an expected lag time until greater interest is shown and negotiated contracts begin to be filled.

This seems to imply that domestic demand will be the main means to reduce inventory through the end of year. Higher milk production will keep dairy product production strong and able to satisfy much of the demand while inventory will be used to supplement fresh supply to fill orders and contracts. So, it certain is good to see inventory decreasing, but there is concern over the rate of decrease that will be seen. Butter inventory in August declined 10.6 million pounds or 3% from July. However, inventory was 52% above a year ago. This is of concern due to the fact that the decline was quite a bit less than usual resulting in an actual increase in inventory from last year. The July Cold Storage report showed butter stocks were 31% above the previous year. If butter stocks do not decline substantially in September, we could see inventory increase further compared to a year ago. Even though total cheese stocks declined from July, inventory remains at a record high for the month of August.

Strong milk output will continue to add to inventories unless something curtails milk production or demand improves at a greater rate than production. Some other countries have shown a decline of milk output due to the extended period of low milk prices. This may position the U.S. to capture some market share improving demand for U.S. dairy products. Milk output in the U.S. shows no sign of slowing down. Even though dairy cattle slaughter increased in August, the number of dairy cattle in the country increased 16,000 head from July and are 45,000 head above a year ago totaling 9.360 million head. This is the largest dairy herd in the country since the second quarter of 1996.

This is why it is imperative to hedge milk production at least through the middle of next year. The option strategies I have been suggesting over the past few articles allow for flexibility while also providing some protection. Class III futures prices have eroded since my last article and may continue to erode. Any price increases are short-lived and the hope that milk prices will improve does nothing to protect income or provide for a good night’s sleep. We certainly can help your operation avoid a repeat of the first half of this year. Please feel free to contract us. Adding more cows to make of for lower milk prices can only be done for so long before the proverbial wall is hit and there is no where else to go.

United Grain Corporation Looks To Upgrade Oregon Facilities

Now that wheat harvest is winding down across northeast Oregon, United Grain Corporation is beginning to focus on how it will upgrade facilities purchased from Pendleton Grain Growers earlier this year.

United Grain has pledged to invest $9 million in the buildings, which include all of PGG's upcountry elevators, the McNary river terminal and Alicel rail terminal. Regional Manager Jason Middleton said they have not made any decisions yet, but hope to have a plan take shape by November.

Middleton, who was hired from PGG after the co-op voted to dissolve in May, said the goal is to add capacity at elevators where farmers are most likely to store their bushels, and increase efficiency at the two terminals to keep trucks moving in and out quickly. Other elevators will likely be shut down for good, though Middleton said the crystal ball is still a little foggy.

"We've had a couple meetings about it, but haven't by any stretch of the imagination come away with a plan of what we're going to do," he said.

This year's winter wheat harvest was a baptism by fire for United Grain, which finalized its deal with PGG on June 10. Fifteen days later, Middleton said they were already taking bushels from the west end of the county, giving them only enough time for an initial cursory glance at infrastructure needs.

Several elevators were closed right off the bat, including the ones at Mission, Holdman, Elgin and McComas in downtown Pendleton.

"Some of them were safety issues, didn't meet our standards and hadn't handled a lot of bushels for a long time," Middleton said.

Others, such as Rew, Stanton and Brogiotti, were closed by Middleton back in 2012 when he took over as director of grain operations for PGG. Since then, Middleton said the majority of money has been spent at McNary and Alicel, which can hold up to 6.6 million bushels and 1.2 million bushels, respectively.

That has a lot to do with how the grain farming industry has changed, Middleton said. Combines are able to cut wheat far more efficiently than they used to, and farms are sending larger trucks farther distances to get their product out to market.

What used to be smaller farm trucks heading to the closest country elevator are now large semis lining up outside McNary along the Columbia River. Ideally, Middleton said they should be able to weight and unload trucks within 5-10 minutes.

"The terminals are farther along than our upcountry elevators," he said. "That's what we're looking at now."

This year's harvest wasn't without its struggles, Middleton said, as they were forced to hit the ground running. But overall, growers in Umatilla County had much better spring and winter conditions and should be closer to their average yields, he said.

"We got some saving rains, and we didn't have a brutal winter either," Middleton said.

Already, the Pendleton area has received some good rains that will help farmers plant into better moisture for next year. According to the National Weather Service, Pendleton has received .68 inches of precipitation during September, more than the usual .45 inches.

Middleton said he is encouraged, but growers need more to continue reversing the damage from previous years of intense drought.

"We have some guys seeding now into better moisture this year," Middleton said.

Sterling Marketing Shares Views Of Supply And Demand In Livestock Markets

WASHINGTON, D.C. — With cattle and hog production continuing to rise, the future of U.S. pork and beef prices rests heavily in the hands of export markets, John Nalivka, president of Sterling Marketing told participants at the North American Meat Institute Annual Meeting and Outlook Conference here. 

“From the processors’ standpoint, demand has got to grow,” he said. “On the supply side, suddenly, we’ve got a lot of meat and a lot of grain to support that.”

Beef

The United States is regaining global market share despite the strong dollar, thanks to increased beef production that has lowered U.S. beef prices. While tight supplies and high prices drove exports down by 12 percent in 2015, Nalivka predicted beef exports would rebound by 8 percent in 2016 and gain another 5 percent in 2017.

At the same time, he expects U.S. beef imports to decline by 13 percent this year and drop another 12 percent in 2017, led by a big drop in imports from Australia.

“I believe we will shut down this expansion,” Nalivka said, predicting the U.S. cattle inventory would increase by 2 percent in 2017, remain flat in 2018 then decline by 1.5 percent in 2019.

Commercial cattle slaughter, which declined by 5 percent in 2015, is expected to rise by 5 percent this year and by 4 percent in 2017. While weights have been down, Nalivka said if grain prices remain low, “they will put more weight on those cattle.”

He predicted U.S. commercial beef production, which fell by 2 percent in 2015, would rise by 5 percent this year then by another 5 percent in 2017.

Meanwhile, wholesale beef prices could be down by 17 percent to 18 percent this year and drop by another 15 percent next year, Nalivka projected. Beef packer margins, however, he predicted would remain “fairly respectable.”

“The big factor is whether exports will take off or not,” he said.  

Pork

The pork industry remains heavily dependent on export markets for its financial health. Nalivka predicted modest gains in pork exports of 4 percent in 2016 and 2 percent in 2017.

With exports down to traditional markets like Mexico, Japan and South Korea, increased pork exports to China are largely responsible for the rise. He warned, however, that China’s economy is not growing at a rate that would necessarily allow that market to continue to escalate import rates at a pace that would continue to support U.S. pork prices.

Pork producers continue to expand, with commercial market hog slaughter, which was up 8 percent in 2015, expected to rise another 2 percent in 2016 and another 1 percent in 2017, according to Nalivka, who noted carcass weights are increasing. 

Commercial pork production, which rose 7 percent 2015, is expected to rise 2 percent this year and an additional 2 percent 2017.

All these hogs have pushed hog producer margins into the red, but packer margins, while down, are still “not too bad,” according to Nalivka. “Next year will still have a positive margin, but below where we have been this year,” he said.  

With a handful of new pork processing plants in various stages of construction, Nalivka expects pork processing capacity to increase 6 percent in 2017 and by 8 percent by 2018 or 2019, a situation he warned might exacerbate an existing labor shortage problem.

Responding to a question, he said it is also possible the increased competition these new pork plants represent could put a few existing plants out of business. He did not speculate on which plants might be vulnerable.

Groups Want WOTUS Court Brief Schedule Altered

The schedule for opening briefs in the challenge to the Environmental Protection Agency's (EPA) waters of the U.S. (WOTUS) rule should be postponed until the Court of Appeals for the Sixth Circuit has decided whether to admit certain memorandums by the US Army Corps of Engineers that were critical of the way the rule was crafted, according to a motion filed by a coalition of 54 business, agriculture and manufacturing groups.

The filing, by groups including the National Association of Manufacturers and the American Farm Bureau Federation, call on the court to extend the briefing start to 30 days after the court rules what documents are to be made part of the administrative record.

Opening briefs from states, business and municipal groups, and environmental organizations challenging the legality of the WOTUS rule are due September 30, but the court has yet to rule on the documents that were part of briefs filed July 29.

State Ag Directors Say next Farm Bill Could Provide Relief

A group of state agriculture directors says the next farm bill could offer relief to farmers in the midst of lower commodity prices and lower farm income. The National Association of State Departments of Agriculture met in Nebraska last week. Politico reports members mulled over issues including dairy prices, water quality issues and disaster relief funding as farm bill priorities for the group. NASDA expects to finalize its farm bill priority list early next year. The group discussed adding a title to the farm bill related to land transition. South Carolina Agriculture Secretary Hugh Weathers said “if getting new people into farming is seen as that vital, then it has a place in the farm bill,” in regards to helping new farmers get farmland. Vermont Agriculture Commissioner Chuck Ross added “Capitol Hill tends to listen to state agriculture officials when it comes to the farm bill,” that’s because nearly all of NASDA’s priorities for the 2014 Farm Bill were included in the final legislation.

USDA Waiting on More Funding

Agriculture Secretary Tom Vilsack says the U.S. Department of Agriculture needs more funding to continue distributing aid to farmers hit by low commodity prices. Vilsack said last week “hopefully with the continuing resolution, we can take a look at what additional steps we might be able to provide” to farmers and the agriculture industry. Senate Majority Leader Mitch McConnell, a Kentucky Republican, introduced a stopgap funding measure last week that would also accelerate reimbursement funding for USDA’s Commodity Credit Corporation, a USDA-run entity that helps farmers endure unstable market prices by providing loans and purchasing surplus commodities. Pro Farmer’s First Thing Today reports President Barack Obama requested the provision in August, saying the Commodity Credit Corporation would exceed its $30 billion borrowing limit during the period of the continuing resolution and needed its annual reimbursement moved forward to continue operating.

Court Strikes Down Tighter Anhydrous Ammonia Restrictions

The Ag Retailers Associations says Friday’s court decision to strike down tighter anhydrous ammonia restrictions will save U.S. retailers an estimated $100 million in compliance costs. A U.S. appeals court ruled against the Occupational Safety and Health Administration, known as OSHA, because the Administration violated the Occupational Safety and Health Act. Last year, OSHA issued a memo redefining the retail facility exemption to the Process Safety Management Standard without seeking industry input. The appeals court ruled OSHA should have posted for public comment the proposed changes to the PSM standard. Process Safety Management applies to any facility storing 10,000 pounds or more of anhydrous ammonia. However, retail agriculture facilities selling more than 50 percent of the fertilizer to farmers have been exempt from PSM. OSHA’s 2015 memo eliminated the exemption.

Farm Bureau Survey Shows Lower Food Prices

The annual Fall Marketbasket survey by the American Farm Bureau Federation shows lower retail food prices compared to the same time last year. The survey released Monday showed an eight percent decrease, or four dollars in price, to total $49.70. The marketbasket survey features 16 common food items including eggs, whole milk, cheddar cheese, chicken breast, sirloin tip roast and ground chuck. Of the 16 products, 13 in all decreased in price while just three increased in average price. Egg prices saw the most significant price drop, down 51 percent compared with last year. Farm Bureau’s John Newton says that is because egg production is recovering well from the 2014 avian influenza outbreak. Prices for bagged salad, apples and potatoes all increased. Newton says apple prices are higher because of dry conditions in apple growing areas, and salad prices are up because of lower output by farmers in California and Arizona.

NCBA, PLC: Fish and Wildlife Service Addressing ESA Deficiencies

The National Cattlemen’s Beef Association, along with the Public Lands Council say a Federal Fish and Wildlife Service final rule is a step to “address rampant abuse of the Endangered Species Act listing process. The rule announced Monday limits petitions for new listings to one species and will require more substantive justification to file a petition for listing under the Endangered Species Act. Public Lands Council executive director Ethan Lane says the rule is “progress toward increasing local input into the process” and applauded the rule. Currently, the Endangered Species Act has a less than two percent recovery rate. The Fish and Wildlife Service says the changes will enhance the efficiency and effectiveness of the petition process to support species conservation. The rule was expected to be published to the Federal Register Tuesday.

U.S. Fish and Wildlife Service Takes Steps to Address ESA Deficiencies

WASHINGTON (Sept. 26, 2016) – Today, the U.S. Fish and Wildlife Service released a final rule that begins to address rampant abuse of the Endangered Species Act listing process. The rule limits petitions for new listings to one species and will require more substantive justification in order to file a petition for listing under the ESA. The National Cattlemen’s Beef Association and the Public Lands Council applaud FWS for taking steps to address these serious shortcomings.
 
“We have been pushing for reforms to the broken ESA listing process for quite some time, and this final rule is a great step in the right direction,” said Ethan Lane, NCBA federal Lands and PLC executive director. “Limiting petitions to one species at a time will provide some desperately needed focus, and notification to the states affected in a timely manner – even if only 30 days – is progress toward increasing local input into the process.” 
 
The ESA, which is continuously abused by radical environmental groups, has a less than two percent recovery rate. Groups like the Center for Biological Diversity threaten litigation in order to force action on hundreds of species, without any regard for a recovery plan or actual species recovery. This continued abuse hampers real conservation efforts and species recovery by forcing arbitrary listing decisions that leave no time for sound research or science-based decisions.   
 
“Serious groups from across the spectrum that are engaged in true conservation will applaud these changes,” said Lane. “By the same token, the habitual high-volume ESA abusers will be pretty easy to spot by their opposition to the rule.”

USCA Responds to Recent News on Import, Export of Fresh Beef

WASHINGTON – A topic of intense scrutiny and debate at the recent Cattle Producer’s Forum, held September 10th in Billings, Montana, was the issue of trade and the growing number of agreements impacting U.S. beef exports and competing imports.

Following the Forum, two significant announcements have been made, both with pending impacts to the U.S. cattle producer.  Fresh chilled beef shipments to the U.S. from Brazil have been approved and China has lifted the ban on select U.S. and Canadian beef imports.

As a result of the now-approved access of Brazilian beef to the U.S., it was announced that the first shipments of fresh beef to the U.S. from Brazil will begin this month.  JBS, Marfrig and Minerva now have the authority to ship fresh beef to the U.S., opening the large Brazilian export supplies to the U.S domestic market.  However, Brazil’s access will be limited to up to 64,805 metric tons, a total amount shared with all countries without a free trade agreement with the U.S., per Tariff Rate Quota stipulations.

Newly elected USCA President Kenny Graner commented on the news, “USCA remains concerned regarding the safety and consistency of the fresh beef product exported from Brazil.  Producers and consumers must remain vigilant and aware of the meat they are purchasing given the lack of defined labeling laws.”

Competing with the news of Brazilian exports opening to the U.S., was an announcement that following a 13-year ban, China will lift its ban on U.S. beef imports. China’s Ministry of Agriculture and General Administration of Quality Supervision, Inspection and Quarantine, stated the need to resume imports of U.S. beef following the BSE scare in 2003.

Graner commented, “Today’s announcement is an important first step towards once again securing this important market for U.S. beef.  There will be a lengthy process now in which the terms of this access will be negotiated.  USCA is confident that the Administration and Secretary Vilsack will secure the most favorable export requirements possible for U.S. beef access into the Chinese market.”

“China’s growing population continues to demand high quality beef.  The U.S. cattle industry produces the safest and best product in the world, and we are eager to increase global market access for U.S. beef.”

Graner concluded, “Trade remains an important issue for all U.S. cattle producers.  We need trade laws and remedies that are timely and sensitive to the perishable and cyclical nature of our industry. Last year’s shift in trade flows of beef, resulted in our trade deficit on beef increasing by nearly 750 million pounds. Unfortunately, this was a great example of what can happen to our domestic market without proper trade risk protection measures.”

“U.S. producers must be able to differentiate U.S. beef if we are to compete in the marketplace and maintain the integrity of our product.  Consumers continue to ask where their food comes from.”

Court Halts OSHA Rule Change on Anhydrous Ammonia

In a huge victory for American agriculture retailers and farmers, the D.C. Circuit Court of Appeals ruled on Friday that the Occupational Safety and Health Administration (OSHA) violated the law when it changed its interpretation of regulations affecting agricultural retail facilities that supply anhydrous ammonia.

 

In July 2015, OSHA issued an enforcement memorandum that redefined the retail facility exemption to the Process Safety Management Standard. These changes would have subjected 3,800 agricultural retailers to regulations intended for chemical manufacturers, at a cost of more than $100 million. These compliance costs could have driven many facilities out of business, leading to higher costs for farmers as well as increasing travel distances to transport the product. The Agricultural Retailers Association and The Fertilizer Institute led the legal challenge.

 

"This court decision is a big win for farmers and the ag community," said NCGA President Chip Bowling. "Not only does this ruling protect farmers' safe and affordable access to an important crop nutrient technology, but it also affirms that OSHA and other regulatory agencies must follow proper rulemaking procedures. That includes allowing for public notice and comment."

 

"When government agencies are making rules that affect day-to-day farming operations, farmers should be invited to the table to have input on those decisions. At the same time, we in agriculture have a responsibility to come to the table with constructive solutions that can work for everyone. NCGA is committed to working with OSHA on how anhydrous ammonia and other technologies are regulated," said Bowling.

Weekly Feedlot - finished cattle trade recap for week ending September 24

The finished cattle trade was   lower this week with fewer cash sales. 

  The weekly weighted average cash steer price for the five area which includes TX, NE, CO, KS and IA feeding areas was 3.47 lwr at  105.89.    

 The cash dressed steer price was  167.09    compared to 169.89 the prev week which was  2.80 lwr.    The five area total cash str and hfr volume was  39,700   head compared to 96,000 the previous week. 

Five area formula sales totaled    201,000    hd compared to 202,000 the prev week.   The five area avg formula price was  170.83   compared to 172.56 the prev week  which was 1.73 lower

Nationally reported forward contracted cattle harvested was  49,000 hd compared to 49,000 hd the previous week.  Packers have 219,000 head of Forward contracts available for Sep and 227,000 head for Oct.

The latest avg National steer carcass weight for week ending Sep 10 was 5 hgr at 903 lbs  compared to 919 lbs last yr.  We’re still 19 wks in a row lower than last yr but still following normal fall wt increases that last until the end of Oct due mostly to cooler weather and better feedlot performance.  However last year we were going up a lot faster than this year.

   Choice-Select spread was 8.00 on Friday about 20 cents hgr than the prev wk but that compared to 2.43 spread last yr.    The Choice primal rib jumped 4 to 5 dollars which helped to widen the spread because of the cooler weather and grilling demand.

           ***** The national steer and heifer grading report for WE 9/17  was 75.5 % Ch and Prime compared to 73.8  % last year, which was 1.7 % hgr than last year with a bigger FIS harvest numbers. 

NRCS, landowners work together to improve sage grouse habitat

In the past six years, 5 million acres of sagebrush rangeland have been conserved.

The Sage Grouse Initiative has brought together ranchers, federal agencies and other partners to improve the habitat for the sage grouse.

The U.S. Fish and Wildlife Service last year determined that the sage grouse didn’t merit protections under the Endangered Species Act because of the collaborative conservation efforts underway to help the species. Central to that effort were ranchers, who have stepped forward for many years to make a difference.

The Sage Grouse Initiative 2.0 Investment Strategy, which will conserve an estimated 8 million acres of sagebrush—along with 350+ species that depend on it-by 2018, is advancing. With the help of conservation partners, NRCS has conserved 5 million acres of sagebrush rangeland and reduced threats to sage grouse.

In the past six years, SGI and ranchers have:

-Reduced the threat of invasive grasses and wildfire by managing for healthier rangelands on 1.8 million acres.

-Removed 457,000 acres of expanding conifer to reclaim core sage grouse habitat.

-Protected 451,000 acres of agricultural land and prime wildlife habitat for 350-plus -Improved grazing strategies to enhance range habitat on more than 2.7 million acres for sage grouse and other wildlife species.

-Conserved 12,000 acres and improved 179 acres of wet meadow and riparian areas for brooding hens.

-Marked or moved 628 miles of high-risk fences to reduce sage grouse collisions by 83%.

NRCS is applying what they are learning through this collaborative effort to other priority species and landscapes through Working Lands for Wildlife.

USDA Now Sees 2016 Supermarket Prices Flat vs 2015

U.S. supermarket prices are now forecast to be down 0.5% to up 0.5%, or essentially steady with year-ago levels. The is yet another downward adjustment for this category of food prices as they were forecast in August to be unchanged to up 1%, according to the monthly food price forecast update from USDA's Economic Research Service (ERS).

ERS now predicts the Consumer Price Index (CPI) for food-at-home prices to change between 0.5% and 0.5%, which they note is a "rate of inflation (or possibly deflation) that would again fall below the 20-year historical average of 2.5%."

Recent declines in prices for beef and veal, poultry, and eggs factored into the downward adjustment, ERS said. "Lower transportation costs due to deflated oil prices as well as the strength of the U.S. dollar have placed additional downward pressure on food prices in the first half of 2016. A strong U.S. dollar makes U.S. goods less desirable, leaving more potential exports on the domestic market." Compared to the 2015 average price level, the 2016 level for CPI for food-at-home is down 1%.

Supermarket prices in 2017 are still forecast to rise between 1% and 2%, ERS noted, despite some downward revisions to components within the CPI for food at home. "Despite the expectation for declining prices in 2016, beef and veal, poultry, and dairy prices are expected to rise in 2017." ERS included their standard caveats on the outlook for 2017, noting it assumes normal weather and could be impacted by things such as the drought in California and the value of the US dollar could impact the outlook.

In adjusting price forecasts for pork and beef, the U.S. dollar is a common impact cited by USDA economists. However, they note that the "somewhat" weaker dollar will help improve both beef and pork exports, prompting increases in grocery store prices in 2017.

Recovery from the 2015 highly pathogenic avian influenza (HPAI) outbreak in the U.S. continues, heavily weighing on egg prices – a normally volatile food-price component. With the recovery continuing, ERS now sees egg prices down 19% to 18% in 2016 and to rise zero to 1% in 2017.

USDA adjusted forecasts downward for fats and oils prices in 2016 and 2017, noting while prices for peanut butter, butter, and margarine rose in August, prices for salad dressings decreased 1.2%. ERS predicts fats and oils prices to change between 0.5% and 0.5% in 2016 and to decrease 1% to zero percent in 2017.

Froman Reiterates Post-Brexit Trade Talks with UK on Back Burner

Negotiating a trade deal with the United Kingdom (UK) is not a top priority, U.S. Trade Representative Michael Froman said in an interview, echoing President Barack Obama’s pre-Brexit vote warning that a decision to leave the European Union (EU) would push the UK to the "back of the queue" in trade negotiations.

Froman also challenged the idea put forward by pro-Brexit politicians that the UK can immediately start discussing deals with other parts of the world. "The UK first and foremost needs to focus on how to define its future relationship with the EU and that will be its overwhelming preoccupation and it’s really impossible for anybody else to negotiate a free trade agreement with the UK until you know what is its competence," Froman argued.

During the referendum campaign, Brexit supporters including now-Foreign Secretary Boris Johnson said the UK outside the EU would be free to quickly negotiate its own trade deals with the rest of the world. Proponents of Brexit decried Obama’s comments as an attempt to intervene in the matter, using scare tactics to pressure voters into choosing to remain in the EU.

Now, Obama’s warning is "in reality the case," Froman said, adding that the UK government needs to concentrate on shaping its future trade relationship with the EU.

"Is it in a customs union with the European Union? Does it have control over its tariffs? Does it have control over its regulations?" Froman asked, adding that "those are still issues that are to be worked out between London and the other European capitals."

The priority for U.S. trade negotiators is the U.S.-EU Transatlantic Trade and Investment Partnership (TTIP) pact, Froman said. The UK would have been part of TTIP had it not voted to leave the EU.

Ag Groups Urge Swift Resolution on Shipping Company Bankruptcy

Agriculture groups, including the American Soybean Association, are asking the U.S. Commerce Department to assist in finding a quick resolution to the Hanjin (Han-gin) Shipping Company bankruptcy. A letter to the Commerce Department expressed concern and anxiety among shippers, as to when the South Korea-based shipper would be allowed to enter ports, if their goods will be seized by Hanjin’s creditors once they are docked and the status of cargo that remains at overseas ports. South Korea said Friday it appears the company had built up enough cash to unload goods. At the beginning of this month, Hanjin filed for bankruptcy. By mid-month, the International Longshoremen’s Association refused to work Hanjin containers at East Coast and Gulf Coast ports because of Hanjin’s debts. Other agricultural groups signing onto the letter include the American Farm Bureau Federation, the National Grain & Feed Association, the National Pork Producers Council and the National Cattlemen’s Beef Association

Iran Now Self-Sufficient in Wheat

Government leaders in Iran say the nation is now self-sufficient in regards to its domestic wheat supply and aims to export wheat in the coming months. Iran has been a major wheat importer in recent years as the country sought to guarantee local food supplies, although its needs have varied partly due to erratic domestic production, according to Reuters. However, following a good growing season, the mood has changed in Iran with an increased domestic supply. Iran’s agriculture ministry said in June that 4.2 million metric tons of wheat had been bought from domestic farmers this year in state-sponsored purchases. That figure represents a 20 percent increase from the same period last year.

Florida, Virginia, Home to Nation’s Top Farmers Markets

Rankings by American Farmland Trust show Florida and Virginia are home to the top five farmers markets in the nation. In announcing the rankings, Susan Sink of American Farmland Trust said “farmers markets are critical for new and beginning farmers.” She noted that farmers selling directly to consumers at farmers markets have a nearly 10 percent greater chance of staying in business than those selling goods through traditional retail. The top rated farmers market in the nation was listed as Winter Garden Farmers market, in Winter Garden Florida. Farmers markets in Orlando, Florida, Charlottesville, Virginia, Williamsburg, Virginia and Fort Pierce, Florida, made up the top five. To see the full list of top markets nationwide, visit love my farmers market dot org (www.lovemyfarmersmarket.org).

Greenpeace Co-founder Changes Stance on Biotech

Co-founder of Greenpeace, Patrick Moore, is now a supporter of biotechnology. The change represents an about-face move by the environmental leader regarding biotech, something the organization has opposed for years. Moore was the keynote speaker at this week's Manitoba Special Crops Symposium in Canada. Moore served nine years as President of Greenpeace Canada, and seven years as a director of Greenpeace International. As the leader of many campaigns, Moore was a driving force shaping policy and direction while Greenpeace became the world's largest environmental activist organization. When asked about genetically modified crops, he called the them “one of the most important scientific advancements society has made.” Moore expressed concern over Greenpeace attempts to block genetically modified crops. Referring to Golden Rice, he called the efforts by Greenpeace a “crime against humanity.”

Seaweed Could Reduce Pork Antibiotics Use

Researchers overseas say seaweed may help pork producers improve their animal’s health and reduce the need for antibiotics. The researchers at Irelands University College in Dublin report feeding seaweed to sows may improve piglet health, according to Meatingplace. A professor at the college says seaweed contains many properties which are beneficial to animal health, including vitamins, minerals and fatty acids. Seaweed extract also contains a glucose that improves the gut structure of piglets, which researchers say helps reduce both the risk of scouring during weaning. Researchers say seaweed also has “a lot of plus points for sustainable pig production.” The University says seaweed extracts for pork production could be available to farmers within the next year.

Germany Signaling Opposition to Bayer-Monsanto Deal

Lawmakers in Germany are calling on regulators to curb Bayer Ag’s $66 billion proposed takeover of U.S. based Monsanto. Pro Farmer’s First Thing Today reports a parliamentary session in Germany highlighted the backlash to Bayer’s proposed buy of Monsanto. Debate this week in the lower house of parliament, called by the Germany’s opposition Green Party, showed deep resistance to Bayer buying a U.S. company that many Germans view as a champion of genetically modified crops. Eight of the 12 lawmakers who spoke, including those from within Chancellor Angela Merkel’s coalition, cast doubt on the acquisition. One lawmaker said “more than 70 percent of Germans say they don’t want genetically modified food on their plates, but that’s exactly part of the strategy of this merger.” However, lawmakers in Germany have no legislative authority to stop the deal. Buying Monsanto would give Bayer, about 35 percent of the global market for seeds and farm chemicals.