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Editor on R & R -- We don't know which is the biggest surprise, that your editor of this newsletter is taking some much-needed time off in the islands, or that he allowed the rest of us to write and produce this week's edition. But, here goes! From Charleston, SC, to Fargo, Grand Forks and Rugby, ND, the Red River Farm Network was out of the studio again this past week. Looking ahead, we'll be in Langdon, ND this Wednesday for KNDK's annual Canola Day. Next week, we plan to see Agriculture Secretary Tom Vilsack at Minnesota Congressman Collin Peterson's Homegrown Energy Economy Conference in Marshall, MN. The Northern Soybean Expo and ND Cornvention are among the other stops on next week's tour. Stay with RRFN to get the latest updates from the important agricultural events in this region and beyond. Updates are also available on the RRFN Facebook Fan Page.
RFS2 Set -- The Environmental Protection Agency has issued its final rule for the Renewable Fuels Standard saying that ethanol, biodiesel and other renewable fuels must account for 8.25 percent of total gasoline in 2010 to meet congressional intent that nearly 13 billion gallons of renewable fuels be produced this year. EPA also set the 2009-2010 combined biomass diesel output target at 1.15 billion gallons, which has to be reached by the end of the year. One big change from the proposed rule is how EPA handles corn-based ethanol. In the final rule, corn ethanol meets the EPA's requirement for greenhouse gas emissions. Ag Secretary Tom Vilsack says soy biodiesel and corn-based ethanol have gotten the OK from EPA. EPA Administrator Lisa Jackson says new science put corn-based ethanol back in the mix as a greenhouse gas reducer."We estimate it will increase farmers' incomes by 13 billion dollars, annually, by 2022."
RFS Reaction -- Agriculture groups including the American Soybean Association, the National Corn Growers Association, American Farm Bureau Federation, and 25 by 25 all applaud the EPA's Renewable Fuels Standard final rule that allows existing corn-ethanol and biodiesel to qualify as a greenhouse gas reduction benefit over regular fuels. However, all are concerned with the EPA's insistence on using the indirect land use change in its modeling. Farm Bureau President Bob Stallman says continuing to use indirect land use changes to calculate greenhouse gas emissions is unfair to domestic biofuels, highly controversial and scientifically unproven.
Hartwig RFS -- Renewable Fuels Association spokesman Matt Hartwig says the EPA's RFS rule is workable. "At the end of the day, these rules have created a program that works. As EPA is structured, we can achieve all of the goals that the RFS is designed to achieve. We can reduce our imports of foreign oil, we can create jobs and economic opportunity in rural America, and we can begin to address the carbon emissions that result from motor vehicles. While there are certain aspects of it that we would have liked to have seen changed, ultimately, this is a program that works for everybody."
House EPA -- Two House committee chairmen have filed a bill to block the EPA from regulating greenhouse gases. Agriculture Committee Chairman Collin Peterson and Armed Services Committee Chairman Ike Skelton say Congress, not unelected bureaucrats, should set environmental policy. Peterson says he has no confidence that the EPA can regulate greenhouse gases under the Clean Air Act without doing serious damage to our economy. At least one other bill is pending in the House to block EPA regulation of carbon dioxide. And in the Senate, Lisa Murkowski's resolution of disapproval to block EPA regulation is supported by at least 39 senators.
BCAP -- USDA has issued a proposed rule for the new Biomass Crop Assistance Program, intended to spur the expansion of dedicated non-food crops for renewable energy and biofuel production. BCAP provides matching payments to landowners and operators for materials used for production of heat, power, advanced biofuels, and bio-based products. The payments, of up to $45 per dry ton for two years, would help cover the cost of gathering, storing and transporting. It would also share up to 75 percent of the cost to farmers to establish biomass crops, so feedstocks will be available when biomass biorefineries or power plants are built. USDA estimates the cost of BCAP at $263 million this fiscal year, and $479 million in fiscal 2011.
National Animal ID Scrapped -- USDA Chief Veterinarian Dr. John Clifford says USDA is scrapping its National Animal Identification System. USDA is asking states and tribal nations to administer a system of animal identification to trace disease back to its source rather than continue development of a national animal identification system. Despite several years of promotion, at a cost of $120 million, USDA only convinced 37 percent of livestock premises to register. The American Veterinary Medical Association says it cannot endorse the new approach to animal disease traceability. CEO Ron DeHaven is concerned about inter-operability between 50 or more different systems. DeHaven asks, "Will one state be able to talk to another state as an animal moves through interstate commerce?" DeHaven says politics trumped animal disease control. Leaders of both R-CALF USA and the National Cattlemen's Beef Association praised the new ID plan.
North Dakota Reaction -- North Dakota Ag Commissioner Doug Goehring thinks the state-by-state framework is somewhat built already. Goehring told the Red River Farm Network, "it's a matter of working with all these states to pull that all together and then figure out a way where we can not only communicate but network to make sure that that information is being shared when it needs to be so we can identify when we have animal health issues and then have the traceability issue addressed." Goehring said USDA heard a lot of concern about who would have access to the information under the Freedom of Information Act.
Freed Down -- Grain market charts show a sharp drop since USDA's January 12th crop reports. Steve Freed, Vice President of Research for ADM Investor Services, says nobody was prepared for those reports. "The market went in long, especially corn, and they were looking for a little bit lower crop because so much that was left in the fields and so much uncertainty about test weights, and they were thinking that the government was not going to show a record corn yield. So we liquidated 130,000 long contracts since the report in corn." Freed, who spoke at RML Trading's market outlook Thursday in Grand Forks, did not have a very optimistic outlook. "The three things that could be positive in the market are contrary to today's trade, you know, if the dollar was to go lower, or crude oil was to go higher, that would bring in buying by the index funds; and obviously weather, and right now, a high percentage of the meteorologists say we're going to have normal weather this year."
Gulke Bearish -- Gulke Group Inc. President Jerry Gulke gave a bearish 2010 market outlook to farmers attending the Northwest Farm Managers Association's annual meeting Wednesday in Fargo. Gulke said the January USDA crop report changed farmers' financial outlook. "We found, not only more corn, but we also found more acres, and the dispute now is where will those 5.6 or 6 million acres of non-winter wheat go? I think we're going to see at least two million acres more corn and some guys are thinking six, and we don't need six. Any kind of a reasonable yield and we have not just too much, but a lot too much." Gulke thinks we could see $3.00 corn, $7.50 to $7.80 beans on the Board of Trade next fall, and probably $4.40 July wheat, if not lower.
Pearson Opportunity -- The host of Public TV's Market to Market says while some market analysts and econom ists are preaching doom and gloom for agriculture, he is optimistic. Mark Pearson told the RML Trading Outlook Meeting, "I think we're in volatile times. We're in a global market. We have so many things that are impacting prices. I talked about crude oil, the impact it can have on ethanol demand. We've had a huge push down in corn prices recently and most of our analysts on Market to Market think that's been way overdone. We expect a correction."
Preview -- Traders and analysts expect a slight reduction in the corn carryover forecast and a significant drop in the soybean carryover projection. Wheat ending stocks are expected to change very little from last month. Continued strong exports in January and record domestic crush rates have chewed into soybean stocks. Higher rates of feed usage and increased ethanol production, along with mediocre exports, will lead to the small reduction in corn stocks. USDA will release its monthly Supply/Demand report on Tuesday.
Markets on Defense -- RML Trading broker Bob Lebacken is looking for demand to begin picking up for commodities following the recent big sell off. "Usually when prices get cheap enough, demand picks up. We know the world's population is growing, but right now we just have a little negativity in the market cuz we've come off some very high prices 2 years ago that curbed some demand and now the market needs to find a level of increasing demand, " said Lebacken. Bob says a lot of traders are bearish, "weather can always enter in to dictate that philosophy but with rising ending stocks and good world weather things look a little bit on the defensive right now."
Fed Economist -- An economist for the Federal Reserve Bank of Kansas City told the Northwest Farm Managers Association's annual meeting in Fargo that there are a lot of signs that indicate we're in a recovery. Brian Briggeman said, however, the high unemployment rate remains a risk to economic recovery. "That tends to drag down consumption, which is the largest driver for growth for the US. Another risk weighing on the financial crisis is the amount of commercial real estate that is out there that needs to be refinanced." To combat the financial crisis and the recession, the Fed's balance sheet ballooned from $800 billion, to $2.2 trillion, in an effort to get short-term debt markets to function better. That's causing many economists to predict inflation, to which Briggeman said, "Yes, it is elevated but there is an exit strategy in place to unwind it in a timely way."
Informa Up -- Informa Economics has raised its estimates of corn and soybean production in both Brazil and Argentina. Informa boosted its Brazil soybean forecast 500,000 tons from last month, to 66.5 million tons. USDA is at 65 million. Informa now puts Argentina's bean crop at 54 million tons, up a million compared to last month, and to USDA's current forecast. On corn, Informa raised Argentina's crop forecast 2.7 million tons from January, and boosted its Brazil number by 600,000 tons. Informa's Argentine corn estimate is 3 million tons above USDA's, and for Brazil, Informa is more than 2 million tons above USDA?s forecast.
USDA Budget Takes Targeted Approach -- Agriculture Secretary Tom Vilsack says the proposed USDA budget includes a $388 million cut in farm commodity support programs and new rules to target payments to the farmers who need them most. "When you take into consideration additional resources for conservation, for research and development, part of which is focused on increasing agricultural productivity; when you take a look at our ability to expand markets, both locally and globally," stressed Vilsack, "When you look at our food safety investments, which are designed to preserve the market and benefit farmers; if you take a look at all of the income support programs, you'll find that there's a slight increase in (the) total."
Pay Go Passes -- The House has passed legislation requiring Congress to spend within its means, called pay-as-you-go budget rules, or Pay Go. While Pay Go passed, the House also voted to increase the government's borrowing authority to $14.3 trillion, sending the bill to President Obama for his signature.
Dorgan Cap -- North Dakota Senator Byron Dorgan likes the part of president Obama's fiscal 2011 budget proposal dealing with federal farm programs. The budget would place a tighter limit on farm program payments. "I continue to believe that we should have a 250-thousand dollar payment limit. I'm going to continue to work with Senator Grassley on a bipartisan basis. He and I have fought this battle--we've lost a couple of times but we're going to continue to fight that battle so that farm program payments go to family farmers who need them to try to get through tough times rather than big million dollars payments to corporate agrifactories. That's not what the farm program should be about."
Farm Bill Won't Be Reopened -- House Agriculture Committee Chairman Collin Peterson spoke to American Sugarbeet Growers Association members by phone last Monday, saying the 2008 Farm Bill won't be reopened. "We're in pretty good shape as far as having support in the House and I think the Senate to not open up the Farm Bill; we had enough trouble getting a Farm Bill passed and anytime you make any kind of change in the Farm Bill, all of these issues come back on the table and I don't know how put them back together again." RRFN's coverage of the ASGA Annual Meeting was sponsored, in part, by Minn-Dak Farmers Cooperative.
Farm Bill Will Be Reopened -- Informa Economics' Senior Vice President Jim Wiesemeyer told sugarbeet growers at the American Sugarbeet Growers Association's annual meeting last week that the farm bill "will essentially be opened up," as a result of budget reconciliation, about a year from now. He said that budget reconciliation will be "brutal." On cap-and-trade legislation, Wiesemeyer said it'll be later, rather than sooner, and that there is "no way" the current bill can pass the Senate. Wiesemeyer also said there is no way the three pending free trade agreements, with Panama, Colombia and South Korea will pass before the November elections.
Farm Program Spending -- The Administration budget brings renewed focus on farm program spending. North Dakota Farm Bureau President Eric Aasmundstad said the government will have to look at agriculture to make cuts. "The debt ceiling is $14.3 trillion; that's more money that what the country spent in the first 200 years of existance; to get that under control, they can't keep taxing us, they have to cut spending."
CCC Loans -- USDA's weekly loan activity report shows farmers have added another 17.4 million bushels of 2009-crop corn to the CCC loan program. 779 million bushels of last year's corn are now under 9-month loan. 94 million bushels of soybeans, and 66 million bushels of 2009-crop wheat are also under government loan.
Sugar Supplies being Monitored -- USDA Undersecretary Jim Miller was featured in the American Sugarbeet Growers Association Annual Meeting this past week. According to Miller, balancing sugar supply and demand is a difficult situation this year. "I have been looking at date from WASDE and data from your industry economists, from the refining industry and by users; quite frankly, there is a big deviation between the rosy scenerio and the not-so-rosy scenario for the sugar industry." Looking ahead to the 2012 Farm Bill, Miller said agriculture can expect more cuts. RRFN's coverage of the ASGA Annual Meeting was sponsored, in part, by American Crystal Sugar Company.
Berg Sugar -- The price of sugar is high, but American Crystal Sugar Company is not able to take full advantage. David Berg, President and CEO, says the co-op has nothing left to sell. "The price of sugar is at thirty year highs, that's been well established, and if we had a pound of sugar to sell we'd sell it for a good price. But the truth is, this year's pretty disappointing for us...the sugar content is poor, and I don't want to cry poor, the price of sugar is offsetting some of the problems that we had in the field, but we basically don't have anything left to sell for the current crop year." Berg says the sugar content of last year's crop is running about one-and-a-half-percent below normal. American Crystals' total sugar production is likely to be down about 15 percent this year.
Bean Buy -- USDA has announced the purchase of $43 million worth of various commodities for export distribution. The purchase includes 8,800 bags of great northern beans and 4,600 bags of small reds, purchased from Colgate Commodities. The government also bought $4.6 million worth of peas, and almost $600,000 worth of lentils.
Corn Remains -- About one third of last year's corn acreage in Richland County, North Dakota remains unharvested. Extension Agent Dale Siebert at Wahpeton says combining stopped at Christmas. "We've got about 60,000 acres of corn standing and will be standing, I think, until well into March or maybe April this year,depending on the spring.That would be roughly a third of our crop, primarily in the northern half of the county." Farmers quit combining about Christmas time. Siebert says the corn looks like its standing., "of course, the rows close to the road are full of snow so it's really hard to say until you get out in it. I understand the wildlife is wintering good in some of those fields, too." Siebert says the big challenge will be to get those 60,000 acres planted this spring.
Check Bins, Safety First -- According to Paul Coppin's Reynolds United Coop newsletter, he's starting to hear some "horror stories" about the quality of corn in the bin starting to deteriorate. With all the wet corn in the Midwest, Coppin says quality problems could make your corn worth significantly less, or even unmarketable. And with the recent drop in corn prices, farmers may hold the corn longer than they should, increasing the odds of quality deterioration. North Dakota State University Extension ag engineer Ken Hellevang reminds growers to exercise caution when in or on grain bins. Just this week, we got word of a farmer who is now in the midst of a long recovery after a 27-foot fall from his grain bin.
Tile Drainage is Hot -- The response to back-to-back late, wet harvests was evident at two events last week in Fargo. Some 140 farmers attended the first day of a two-day Tile Drainage Forum at North Dakota State University. That event overlapped with the annual meeting of the Northwest Farm Managers, where half of the day's agenda was devoted to tile drainage. NDSU Extension agronomist Dr. Hans Kandel thinks one reason for the increased interest is because farm input costs have increased so rapidly that the risk of farming each acre has increased, and farmers see tile drainage as a way to manage that risk. Kandel says tiling leads to generally higher yields, better quality grain, and getting harvest done in a timely manner. Kandel also mentions the "hassle" factor, "One farmer told me he sleeps better since he put in tile drainage."
Tile Tax -- Farmers interested in tile drainage should be aware of tax considerations associated with their investment. Ronda Zupi, Senior Tax Specialist with AgCountry Farm Credit Services, says it depends on whether you're an active farmer or a landlord. "If you're an active farmer, because tiling is classified as 15-year property, so the options you have would be to depreciate it over the 15 years which is acutally a 16-year period, or you could also Section 179, so you could expense it all off in the first year if you're an active farmer. If you're a landlord then being able to expense it off all in one year is off the table. You would have the option of depreciating it then over the 15 years."
Canada Stocks -- Canadian grain stocks at the end of 2009 were mostly in line with trade expectations. The only exception is barley stocks, which are less than expected, and about one million tons below the previous year. All wheat stocks in Canada are down about 300,000 tons from the prior year. Canola stocks are about 400,000 tons below the end of 2008.
Argentina Beans -- The Buenos Aires Grains Exchange has boosted its estimate of Argentina's soybean crop to a record 52 million tonnes in its weekly forecast. The Exchange says nearly ideal weather and a record planted area will combine to produce the largest soybean harvest on record. The good weather has also boosted expectations for the corn harvest, which the Grains Exchange estimates at 18.4 million tonnes.
HSUS and Others Make a Move in Ohio -- A coalition of animal rights groups, including the Humane Society of the United States, has filed a petition for a ballot initiative in Ohio to establish animal welfare standards. This decision comes on the heels of the formation of a Livestock Care Standards Board. Ohio Farm Bureau Federation spokesman Joe Cornely describes HSUS as an outside organization that wants to tell Ohions how to run their farms. "HSUS is based in Washington, DC; they are a fundraising machine, raking in $140 to $150 million per year, with assets well over $200 million a year," said Cornely, "They have a pretty good game plan; they ask people to donate money to save puppies and kittens and then turn around and utilize that money to launch ballot measures."
Checkoff Increase -- The mandatory beef checkoff rate has been at $1 per head since its inception in the mid-1980's. Cattlemen's Beef Board member Jeff Dahl says proposals to double that rate are still on the table. "The Beef Board cannot do this; it has to be a different organization; Farm Bureau, Farmers Union, the Cattlemen's Association can take this and move it forward; I guess they're waiting for the right moment for someone to suggest or take it up the chain through Congress to get the Act and Order amended to increase the checkoff or make any changes to the checkoff." Dahl, who is a rancher from Gackle, North Daktoa, says the beef checkoff purchasing power has slipped over the past 25 years and more funds are needed to compete.
Stockmanship Expert Describes HSUS as a Foe and a Help -- While animal agriculture is concerned about the growing strength of activist groups, stockmanship expert Curt Pate has a different perspective. "I always try to look at things from a different point of view; the HSUS, they are a foe, but they've also become a help to us because it's forced us to be better at the way we do things." Pate ranches at Newell, South Dakota. During the recent Cattle Industry Convention, Pate offered insight into cattle handling. ?When cattle are less stressed and we're more effective at handling the cattle, we make more money; it's kind of a slap to the HSUS; they're making us more profitable and better by what they're trying to do to tear us down."
NCBA Antibiotics -- Kansas State University veterinary clinical pharmacologist Michael Apley and the National Cattlemen's Beef Association met with New York Congresswoman Louise Slaughter to urge her to use sound science in the discussion of antibiotic use in livestock. Apley says there have been many misconceptions and outright misrepresentations about why and how antibiotics are used in the cattle industry.
Veal Ethics -- The American Veal Association has adopted a statement of ethical principles and a code of conduct to confirm the veal industry is committed to veal raised right. AVA President Chip Lines-Burgess says by adopting these principles consumers and customers have a better understanding of how producers care for their animals.
Be Proactive -- University of Minnesota Extension Dairy Specialist Marcia Endres believes farmers have a positive animal welfare story to tell and must be proactive. "The animal rights activists, we're never going to convince, but the general public, I think we can tell our story and they will be receptive to that." Endres was featured in a series of seminars sponsored by the Minnesota Milk Producers Association. An ABC Nightline broadcast recently portrayed dairy farming in a negative way. To combat negative media attention, Endres asks dairy farmers to tell their story. "There are a lot of initiatives now, like the Midwest Dairy Association People Behind the Product," said Endres, "And with social media, I think use social media to reach that younger generation to help them understand what is true about dairy farming; not what they see in these videos." Dairy farmers are also being told to closely screen job applicants. Endres says many of the negative television stories came from undercover video produced by activists or disgruntled employees.
More Oilseeds, Less Wheat -- Farmers in north-central North Dakota will likely plant more oilseeds, and less wheat this spring. Kent McKay, research director at Vision Research Park, spoke at the North Central Dakota Ag Show Friday in Ru gby, and was a guest on the Red River Farm Network's Coffee Shop Tour. McKay said canola acres will increase, "there's been a lot of increased interest in confection sunflowers, soybean acres could probably be up, while corn and wheat acres will probably be down." Tanner Johnson, a loan officer with Bremer Bank in Rugby, agrees there's more interest in oilseeds in 2010. Johnson said farmers are turning away from wheat because of the protein discounts. The Coffee Shop Tour is sponsored in part by the North Dakota Corn Growers Association.
SURE Slow -- The SURE program, or permanent disaster program, is a lot more work than it's supposed to be. Gary Kraft, Pierce County (ND) Farm Service Agency Executive Director, says software problems are slowing down the process, "We're just taking names and working them up and calling them to let them know if we have something for them to sign." FSA offices are taking applications for 2008 crop losses. "There's a lot of interest in it, and a lot of producers are used to the way disaster programs used to work, and that was, "if you got something from crop insurance, you got something from us. That's not exactly true anymore. SURE is all based on your entire farm revenue, and whether or not you have a loss on that." Kraft says some producers have gotten a lot of money from crop insurance and nothing from SURE. The Minnesota Corn Growers Association co-sponsors the RRFN Coffee Shop Tour.
Second That Motion -- If you want to know how to run a meeting according to Robert's Rules of Order, you might want to call the Rugby FFA Chapter. Jaycee Shively is vice-president of the chapter, which has won the state FFA parliamentary procedure contest two years running. Shively says, "last year at our national contest, our whole team took a test to become a nationally-accredited parliamentarian, and eight of us passed, so we're all certified accredited parliamentarians, and I think there's only 11 in the state.
Atrazine -- The EPA's latest look at the safety of atrazine could set the bar for how it evaluates other pesticides. The EPA is meeting with a scientific advisory panel to get guidance on the relative value of studies on humans exposed to pesticides. It is the EPA's first real effort to evaluate the growing amount of data and reports that look at pesticide use, exposure and human disease. EPA is looking at six epidemiological studies completed since 2003 that draw a link between atrazine and birth defects, pre-term births or low birth weights.
Iron Chlorosis Management -- North Dakota State University researchers say soybean yields may be increased in fields with iron deficiency chlorosis. With precision planting and global positioning systems, it may be possible in the future to plant two different soybean varieties in the same field. Growers can map their fields to show those areas that are susceptible to IDC. There are genetic differences among soybean varieties for IDC. This suggests farmers could increase the yield of a field by planting an IDC-tolerant variety on the IDC areas of a field, and plant a different, high-yielding variety on the areas of the field that do not typically have IDC.
Crown Rust -- USDA scientists are tapping into the DNA of a wild oat to see if it can help combat crown rust. Analysis by Martin Carson, research leader at the Agricultural Research Service's Cereal Disease Laboratory in St. Paul, shows crown rust is increasing in virulence throughout North America.
Minn Dems -- Democrats who control the Minnesota legislature opened the legislative session Thursday by proposing a $1 billion plan to borrow money to fix up college buildings, upgrade airports, forge trails and build civic centers. State Senator Keith Langseth says there's a sale going on and this is the time to bond and build, adding that Minnesota can't afford to miss out on low interest rates and construction prices. The proposal will set up an opening round dispute with Republican governor Tim Pawlenty over how much the state can afford to borrow with a large deficit looming overhead. The plan is part of the Democrats strategy to work on creating jobs first and deal with the $1.2 billion budget shortfall later.
MFU Session -- Minnesota Farmers Union President Doug Peterson says this Minnesota legislative session will have one over-riding theme, "Short for cash and short for time in this legislative session and short for cash and short for time means they're going to have to compromise on a lot of things to get this thing down and out of town before the fall elections." Due to the budget deficit, Peterson is concerned agriculture and rural Minnesota will feel the pinch. Fees for state services could increase. The ethanol producer payments could also take a hit.
Trade Geithner -- US Treasury Secretary Tim Geithner says President Obama plan to double US exports over five years includes passing free trade agreements with Panama, Colombia and South Korea. Geithner told a House hearing on the fiscal 2011 budget that the US cannot let other countries go and compete away those markets from us. But both the Treasury Department and the US Trade Representatives office later issued statements clarifying Geithner's comment. They said US trade officials still had to resolve outstanding issues with the three countries before the president would send the FTA's to Congress for an up or down vote.
USB Study -- The United Soybean Board and soybean checkoff have released a study showing the environmental and energy benefits of biodiesel. This first national survey showed biodiesel producers use 27 percent less energy than previously estimated. The results also document that biodiesel producers are implementing more water-saving technologies and selling more glycerin into high-grade markets.
Action Alert -- The American Soybean Association has issued another action alert for the biodiesel tax incentive, which expired on December 31st. The ASA is asking members and supporters to contact their Senators and Representatives to urge them to cosponsor and act swiftly to retroactively extend the biodiesel tax incentive. ASA claims the expiration has essentially caused the production and use of biodiesel in the US to cease and has put 23,000 jobs in jeopardy. A study last year estimated soy biodiesel production adds more than 25 cents per bushel to the price of soybeans.
Vilsack Will Participate in Peterson Event -- Minnesota Congressman Collin Peterson has announced Agriculture Secretary Tom Vilsack will give the keynote address at the Home Grown Economy Conference in Marshall. Peterson is hosting this conference, highlighting community-based food systems, on February 15th and 16th. In addition to the Marshall event, Vilsack's speech will be broadcast through interactive video at college campuses in Crookston, Fergus Falls, Bemidji and Morris.
The Right to Choose -- The public comment period is underway on the possible reintroduction of Roundup Ready Alfalfa. Croplan Genetics Forage Agronomist Randy Welch says this is really about the right to choose. "You may or may not be interested in Roundup Ready Alfalfa, but the real value of the public comment period is for USDA to hear from real producers about Roundup Ready Alfalfa and their right to choose technology." The Roundup Ready Alfalfa case is being heard in the US Supreme Court. The public comment period and possible deregulation of this technology potentially could be wrapped up before the High Court makes a ruling.
Animal Health Grants -- USDA's National Institute for Food and Agriculture has awarded $24 million in grants to study animal health and production research. North Dakota State University was awarded three grants, totaling nearly $368,000. South Dakota State University was given a grant valued at almost $320,000.
Follow Mike, Don and Randy -- The Red River Farm Network team offers the latest agriculture news updates through Twitter. Follow Mike Hergert at http://twitter.com/farmnewsjock. Don Wick can be followed at http://twitter.com/RRFNWick and Randy Koenen's twitter address is http://twitter.com/rkoenen. RRFN has also launched Facebook page, complete with photos, video and farm news headlines. Click on the Facebook logo to connect with the RRFN page.
New Herbicide -- The Environmental Protection Agency has given the go ahead for Monsanto to bring a new post emergence herbicide to the market to combat the tough Roundup Ready resistant weeds. The new herbicide is a new formulation of acetochlor that will be available for use on soybeans and cotton this spring.
Geib Resigns -- A search is underway to fill the top job at the North Dakota Trade Office. Susan Geib, who was the original executive director, has resigned. Geib says she plans to travel with her husband, who is a Minnesota State University-Moorhead professor. Peter Geib has been awarded a grant to conduct research on transitioning economies. Susan Geib's resignation take effect March 31st.
Red River Valley Leadership -- Growers from the Red River Valley were elected to leadership positions at last week's American Sugarbeet Growers Association annual meeting in Charleston, South Carolina. Russ Mauch, from Barney, North Dakota, was elected president, succeeding Alan Welp, a Colorado sugarbeet grower. The new vice-president is Kelly Erickson, from Hallock, Minnesota, who is also serving his third year as president of the Red River Valley Sugarbeet Growers Association. Both Mauch and Erickson will serve two-year terms with ASGA.
CCA of the Year -- Larry Lunder of the Alliance Ag Co-op in Bismarck has been honored as the North Dakota Certified Crop Advisor of the Year. Lunder has been a crop advisor since 1997.
Tyson Up -- Tyson Foods is reporting better than expected first quarter profit. Tyson is reporting first quarter earnings of $160 million or 42 cents per share, compared to $102 million loss last year. Wall Street analysts had been expecting earnings of 18 cents per share. Revenue for the quarter that ended January 2 increased to $6.64 billion compared to last year's $6.52 billion. Tyson is attributing the profits largely to operating efficiencies.
Bunge Down -- Bunge Ltd. reports net income of $361 million in fiscal year 2009, a 66 percent decline from the previous year. Net sales declined 20 percent. Bunge's Chairman and CEO Alberto Weisser says earnings in the fourth quarter represent a disappointing end to a mixed, and ultimately challenging year for Bunge. Fertilizer generated a $616 million loss last year. Bunge's agribusiness sector saw a 14 percent decline in business.
Syngenta Earnings -- Syngenta AG reports a one percent decline in net profit in 2009, due to higher raw material costs, less demand for pesticides and a strong dollar. Net profit totaled $1.37 billion, 20 million dollars less than the previous year. Seed business increased five percent, to $2.6 billion. Crop protection decreased eight percent, to $8.5 billion.
Changes for MANA -- Erez Vigodman is the new CEO for Makhteshim Agan Industries, the parent company of MANA Crop Protection. Musa Givon was named vice president for the Americas and will lead the MANA business unit on an interim basis. Shaul Friedland was named the head of the America's Region, which includes North and Latin America.
Caucus Results -- Minnesota is starting to hone in on the top candidates for the governor's race. In Tuesday's caucuses, State Representative Marty Seifert has 50 percent of the vote in the Republican straw poll. State Representative Tom Emmer has 39 percent. For the DFL, Minneapolis Mayor R.T. Rybak had a slight lead over House Speaker Margaret Anderson Kelliher.
Afghan Recap -- Agriculture Secretary Tom Vilsack and Ambassador Richard Holbrooke recapped their recent trips to Afghanistan in a special State Department briefing this week. While there are many negative reports coming out of this region, Vilsack said USDA is making a difference in Afghanistan. "As the ambassador indicated, this is our number one priority from a non-security standpoint, and it is very clear that agriculture is critical to the future success of Afghanistan. Eighty percent of Afghans either make their living or their livelihoods from agriculture or something connected to agriculture, so it is important and relevant for this country to spend time and resources to try to help the Afghan agricultural opportunities." Vilsack highlighted attempts to help Afghan famers move away from illicit crop production. The Red River Farm Network was the only agriculture media outlet included on Vilsack's recent trip to Afghanistan.
Last Week's Trivia -- Bill Murray starred the 'Groundhog Day.' Jerry Harrington of Pioneer Hi-Bred International is our weekly trivia winner. Roger Chamberlain of AgriBank, Mike Hillstrom of Bayer CropScience, Dianne Bettin of Easy Automation, Inc. and Jamie Reed of Reynolds United Co-op earn honorable mention honors. Our Trivia First 20 list includes Cassandra Schlef of the American Soybean Association, Brian Rund of Nufarm Americas, Nic Prothero of ProAg Services and Insurance, Gail Holcomb of Charleston Orwig, Kevin Schulz of The Land, Kim Polzin of the Midwest Dairy Association, Jenna Kromann of the Minnesota Corn Growers Association, Jenna Wegner of the Minnesota Farm Bureau Federation, Beth Bakke Stenehjem of the North Dakota FFA Foundation, Jennifer Morrill of American Farmland Trust, Brad Hertel of Meridian Seeds, Hugh Whaley of Broadhead + Company, Windom veterinarian Dr. Mike Curley, Kelly Kotowicz of Farmers Elevator of Alvarado and Ellen Dougherty of USDA's National Agricultural Statistics Service.
This Week's Trivia -- The New Orleans Saints won Super Bowl 44 last night, defeating the Indianapolis Colts in Miami 31-17. 40 years ago, the Minnesota Vikings lost the first of their four Super Bowls to the Kansas City Chiefs, in New Orleans. In what stadium was the game played? This week ONLY, email your answer to mike@rrfn.com.
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