Click here to listen to this week's Kansas Soybean Update
Susan Stagg-Williams is associate professor of chemical and petroleum engineering at KU. Susan joins us for this week’s Kansas Soybean Update.
Background:
The Energy Council is a division of the University of Kansas Center for Research and is the official organizing body of energy research at KU. Its mission is to provide the state and industry with key research, development and education, ranging from the traditional recovery of gas, oil and coal to new techniques for exploiting renewable biomass for transportation fuels and chemical feedstocks. The Energy Council promotes Kansas economic growth through the development and commercialization of new technologies, including biofuels and bioenergy.
As part of the education-and-outreach component of a biofuels-production grant from the Kansas Soybean Commission, the Energy Council and the KU Biodiesel Initiative conducted a biodiesel short course at the 3i Show in Garden City earlier this month. Kenlon Johannes from KSC talked about the future of biofuels. Harold Kraus – a soybean farmer from Hays, a Kansas Soybean commissioner and a member of the National Biodiesel Board – provided NBB’s perspective on the industry. Matt Jaeger, CEO of Emergent Green Technology, answered questions about biodiesel. David Kramer from the USDA Rural Development Business and Energy Program explained how to access USDA loans for renewable-energy projects. A panel of biodiesel producers discussed the ins and outs of the business and answered questions.
Click here to hear an interview with Senator Blunt about his stop in St. Joseph at AGP and a discussion about renewable fuels with KFEQ Farm Director Tom Brand.
United States SenatorRoy Blunt made a stop at Ag Processing on the Stockyards Expressway while in St. Joseph today. The Senator was in town to visit with AGP about energy costs, job creation and clean energy alternatives.
Ag Secretary Tom Vilsack received a letter in October from 115 House members urging USDA to conduct an economic analysis on the proposed GIPSA rule – and now that the analysis is being conducted – 147 House members have written again asking for a timeline for completion. They also are urging Vilsack for a re-proposal of the rule once the analysis is complete.
American Meat Institute President Patrick Boyle says AMI applauds the lawmakers. He says the number of signatories alone – one-third of House members – is a testament to the growing concern on Capitol Hill about the proposed GIPSA rule. AMI estimates the proposal’s cost at 14-billion dollars.
Bill Donald – National Cattlemen’s Beef Association President – says the members of Congress are standing up for U.S. cattlemen and women – and holding the Administration accountable for its actions. He says the proposed GIPSA rule is the most pervasive invasion of federal government into the private marketplace that he’s ever witnessed.
As written – National Pork Producers Council President Doug Wolf says the regulation would be bad for producers, consumers and rural America. He says the nation’s pork producers are grateful to those members who asked USDA to withdraw the proposed rule. According to Wolf – USDA went well beyond Congressional intent and came up with a regulation that would cost the U.S. pork industry nearly 400-million dollars a year.
Sign up for the American Angus Auxiliary’s popular Cook-Off and Chef’s Challenge competitions by June 1.
For the second year the All-American Certified Angus Beef® (CAB®)Cook-Off will be accompanied by the All-American Certified Angus Beef®Chef’s Challenge at the National Junior Angus Show (NJAS), July 12. The show takes place July 10-16 in Harrisburg, Pa.
The Challenge is modeled after Food Network’s cooking competition “Iron Chef” and will feature two age divisions: adults 21 and older, and National Junior Angus Association (NJAA) members, ages 18-21.
The contestants will have 90 minutes to prepare and serve an original recipe using a specific CAB meat cut and secret ingredients announced the day prior to competition.
The Challenge is set up to attract competitors more focused on the cooking process rather than the presentation, said Anne Patton Schubert, co-coordinator of the Chef’s Challenge and Cook-Off competitions conducted by the American Angus Auxiliary.
“The competitors are extremely creative because they do not know what they are cooking until 24 hours before the competition,” said Patton Schubert.
She said the Chef’s Challenge complements the long-held Cook-Off tradition combining creativity and quality Angus beef.
The Cook-Off began in 1983 to give youth additional experience with the product they raise — beef.
“It was [created] to help competitors become comfortable talking about the beef product,” Patton said. “When you see the juniors at the Cook-Off, they are having fun.”
The Cook-Off and Chef’s Challenge serves as a stepping-stone, said Anne Lampe, co-chairman of the Auxiliary’s Beef Education Committee.
“It is a training program for people to learn how to promote beef in their community or home states,” Lampe said.
Both competitions will take place simultaneously at the NJAS. Chef Challenge are restricted to one or two people, and will be limited to 10 entries. Multiple entries from the same state will be accepted in each age division; however, NJAA members may not participate in the Chef’s Challenge if they are members of a state Cook-Off team.
The first-place entry in each division of the Chef’s Challenge will receive a Certified Angus Beef® logo jacket and a $100 cash prize. Winners in the Chef’s Challenge will not compete for the All American Certified Angus® Beef Cook-Off Black Kettle Award.
Visit the NJAA website at www.angus.org/njaa for complete rules, information and entry forms.
Entry forms for both competitions are due to contest chairpersons by June 1. Mail or fax entries to Anne Patton-Schubert, 4040 Taylorsville Rd., Taylorsville, KY 40071; or 502-477-2637. Entries also may be e-mailed to Anne Lampe at alampe@wbsnet.org.
The Chef’s Challenge and the Cook-Off are sponsored by the American Angus Auxiliary and Certified Angus Beef LLC.
According to the data from EIA, ethanol production for the week ending 5/13/2011 was 900,000 barrels per day (b/d) – or 37.8 million gallons daily. That is up 38,000 b/d from the week before. The 4-week average for ethanol production stood at 880,000 b/d for an annualized rate of 13.49 billion gallons.
Stocks of ethanol remained at 20.4 million barrels.
Gasoline demand for the week ending 5/13/2011 was 380 million gallons daily. Expressed as a percentage of daily gasoline demand, daily ethanol production was 9.95%.
On the co-products side, ethanol producers were using 13.646 million bushels of corn to produce ethanol and 101,571 metric tons of livestock feed, 89,684 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 3.9 million pounds of corn oil daily.
(SEDALIA, Mo.)- Missouri State Fair Director Mark Wolfe announced today that a new food drive event at the 109th Missouri State Fair in August will serve a three-fold purpose: to help alleviate hunger; to provide further education about the important role of Missouri farmers; and, to offer a discount on gate admission at the Fair.
The event, titled, Missouri Farmers Care Food Drive Tuesday, in cooperation with Ford and Missouri Farmers, will provide an opportunity for the public to donate canned food items to benefit the Missouri Food Bank Association (MFBA). In exchange, donors can receive half-price gate admission on Aug. 16.
“The idea originated from a request received more than a year ago from the director of the Missouri Food Bank Association,” Wolfe said. “Coupled with an interest to further educate the public on agriculture, the State Fair Commission elected to combine the causes into a new event day at the Fair.
AUDIO: Missouri State Fair Director Mark Wolfe visited on AgriTalk about their partnership in the program.
“Food collection will actually initiate in early June at Ford dealerships across Missouri,” Wolfe explained. “This partnership will help increase our collection efforts over the summer, and then culminate at the gate on Aug. 16 for a more significant contribution for the six food bank locations.”
According to MFBA State Director Scott Baker, many people do not realize that hunger is a very serious problem in Missouri. He believes that the first step to solving the problem is to raise awareness, which is what the new event day at the Fair can help achieve.
“Food banks and pantries are able to help those in need through the generosity of Missourians,” Baker said. “Thanks to Ford, Missouri Farmers Care and the State Fair, we can provide thousands of meals to hungry Missourians.”
Starting in June, local Ford dealerships will give a $1 off gate admission coupon for every can collected. The coupons can then be redeemed at any admission gate on Tuesday, Aug. 16, for discounts up to one-half of the regular price for adult, senior and child admission tickets.
Canned food items will also be accepted for coupons at Centennial Gate on Aug. 16.
Some special activities on this day will include Missouri Farmers Trivia Contests on the Kids and Touchstone Energy Stages to entertain guests while providing them with interesting agriculture facts.
In addition, more daily activities will be incorporated into the 11-day Fair which will focus on the important role of Missouri farmers. Children ages 2 to 10 can be entertained daily at the new Missouri Farmers Care Market inside the Family Fun Center. Playtime there will be rewarded with an offer to visit the Agriculture Building where the children will receive a free, wholesome snack from the AgriMissouri Farmers’ Market.
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To learn more about Missouri Farmers Care Food Drive Tuesday, and to see a complete list of daily activities including the new Monster Truck Show at 7 p.m., featuring Bigfoot at the Pepsi Grandstand, visit mostatefair.com. The Missouri State Fair is Aug. 11-21 in Sedalia, and is themed “It’s A Show-Me Thing!”
On the rare occasion that New Yorkers talk about farming, it’s usually something along the lines of what sort of organic kale to plant in the vanity garden at the second house in the Adirondacks. But on a recent afternoon, The Observer had a conversation of a different sort about agricultural pursuits with a hedge fund manager he’d met at one of the many dark-paneled private clubs in midtown a few weeks prior. “A friend of mine is actually the largest owner of agricultural land in Uruguay,” said the hedge fund manager. “He’s a year older than I am. We’re somewhere [around] the 15th-largest farmers in America right now.”
“We,” as in, his hedge fund.
It may seem a little odd that in 2011 anyone’s thinking of putting money into assets that would have seemed attractive in 1911, but there’s something in the air-namely, fear. The hedge fund manager and others like him envision a doomsday scenario catalyzed by a weak dollar, higher-than-you-think inflation and an uncertain political climate here and abroad.
The pattern began to emerge sometime in 2008. “The Hedge Fund Manager Who Bought a Farm,” read the headline on one February 2008 Times of London piece detailing a British hedge fund manager’s attempt to play off the rising prices of grains in order to usurp local farmland. A FinancialTimes piece two months later began: “Hedge funds and investment banks are swapping their Gucci for gumboots.” It detailed BlackRock’s then-relatively new $420 million Agriculture Fund, which had already swept up 2,800 acres of land.
Even Michael Burry, the now-defunct Scion Capital founder and star protagonist of Michael Lewis’ The Big Short-who bet against the housing bubble in 2008 with credit default swaps to enormous profit-gave a rare interview on Bloomberg TV last year, explaining that he’s thrown his hat into “productive agriculture land with water on site” as it’s going to be “very valuable in the future.” (Like most of those asked to comment for this story to The Observer, Burry declined to discuss his investments in farmland.)
Kansas City Federal Reserve President Thomas M. Hoenig
Three years later, the purchase of farmland both in America and abroad by outside investors has increased-so much so that in February, Thomas Hoenig, the president of the Federal Reserve Bank of Kansas City, warned against the violent possibilities of a farmland bubble, telling the Senate Agriculture Committee that “distortions in financial markets” will catch the U.S. by surprise again. He would know, because he’s seeing it in his backyard: Kansas and Nebraska reported farmland prices 20 percent above the previous year’s levels and are on pace to double values in four years. A study commissioned by the Organization for Economic Cooperation and Development and released in January estimated the amount of private capital currently committed to farmland and agricultural infrastructure at $14 billion. It also estimated that future investments will “dwarf” what’s currently being thrown into land, by two to three times. Further down, the study makes a conservative projection that the amount of capital potentially entering the sector over the next decade will fly past $150 billion.
When asked if this is an end of the world scenario, the hedge-fund manager replied, “It really is. I tell my fiancée this from time to time, and I’ve stopped telling her this, because it’s not the most pleasant thought.’
This is happening in part because investors see their play as a hedge against hyperinflation. While the rest of the world uses the current calculation of the Consumer Price Index as a proxy for the cost of goods, some farmland investors are using a different equation, one from 1980. These investors assert inflation should be calculated the way it was before the Boskin Commission’s 1996 reworking of the CPI formula-in which case, it would be much, much higher.
“The CPI supposedly today is something like 1.5 percent,” says the hedge fund manager. “We think the actual rate of inflation is something closer to 6 or 7 percent on an annual basis. It’s also not about what it’s been over the last 10 years; it’s about what it’s going to be over the next 10 years.”
So the logic is that not only is the dollar worth far less than we think it is, but everything is more expensive and will only move further in that direction. Especially food, the value of which may have risen due to population increases, especially in places like China, where a consumer-happy middle class has finally started to emerge.
The rising cost of food can be seen even in New York’s yuppiest enclaves, where prices are high to begin with. Bloomberg food critic Ryan Sutton has been running a blog called The Price Hike wherein he measures the shifting costs of food at the plate in Manhattan restaurants. Mario Batali’s Del Posto is charging 21 percent more per meal since October. Gordon Ramsay at The London? Sixty-nine percent more since last month. Michelin favorite Bouley? Forty percent. The Breslin, at the Ace Hotel? Thirty-three percent. And so on.
But farmland isn’t an option for most investors. Farming is still mostly made up of family-run businesses, in the U.S., at least. Much of the farmland being purchased in America is purchased at estate sales. Pure-play farming isn’t a readily available product.
You can invest in John Deere for equipment; you can invest in Monsanto for seeds and agricultural tech. You can even invest in Kraft, which puts the plants on the supermarket shelf. But for now, it’s difficult to invest in a one-stop-shop farm. Additionally, there isn’t much arable land out there, it’s not increasing, and the quality of the land varies from parcel to parcel. And to make money off a farmland investment, you can’t just sit on it. You have to know what to do with it. “If you farm it like we do, you can generate a yield,” says the hedge fund manager. “We think the farmland will be worth 5 to 10 percent more every year, and on top of that, you get the commodities yield.” In other words, hedge funds are growing, picking and selling corn.
Asked if the American public would eventually see a chance to invest in Old McHedgeFund’s farm one day, the manager replied in the affirmative: “Yes. Without a doubt.” He estimated it would be only a few years before this happened. Just two weeks ago, Bloomberg Businessweek reported that El Tejar SA, the world’s largest grain producer, is planning on selling $300 million of bonds this year before a planned IPO. The plans for the IPO will be fast-tracked pending the sale of the bonds. If farming IPOs begin to emerge en masse, then farming-already often a dicey proposition simply on the basis of its being difficult to do correctly, the volatility of the weather and the possibility of entire crops going bad-may be vulnerable to a bubble.
There is, of course, a slightly more sinister reason to develop a sudden interest in agriculture. Last year, Marc Faber recommended to anyone: “Stock up on a farm in northern Norway and learn to drive a tractor.” He sees a “dirty war” on the horizon, playing on fears of a biological attack poisoning food supplies. Those sort of fears drive capital into everything from gold (recently at an all-time high and a long-time safe haven for investors with currency concerns) to survivalist accoutrements. In this particular case, one might buy the farm in order to avoid buying the farm.
That may seem extreme, but even the lesser scenarios are frightening to some. When asked if this is an end-of-the-world situation, the hedge fund manager replied: “It really is. I tell my fiancée this from time to time, and I’ve stopped telling her this, because it’s not the most pleasant thought.” He pauses for a moment. “We just can’t keep living the way we’re living. It’ll end within our lifetime. We’re just going to run out of certain things. We’ll just have to learn how to adjust.”
Who says market development needs to be boring? Corn farmers have ventured into an exciting new partnership with NASCAR® that showcases the high –performance benefits of domestic, American Ethanol. More than 75 million fans will hear this positive message thanks to your membership support.
As part of American Ethanol’s partnership with NASCAR, the National Corn Growers Association benefits from all the race circuit has to offer and NCGA’s 35,000 members are invited to join the fun. NCGA has launched an online portal to all things NASCAR, an online connection is customized for NCGA by NASCAR.
In the “Deals” section of the Website, members have access to exclusive offers on the latest gear and unadvertised offers from Official NASCAR Partners and Licensees such as:
Plus, a whole host of great benefits for NASCAR fans. Want to see the action in person? The “Race Tickets” section will hook you up with best deals on the circuit. NASCAR RacePoints is the official rewards program of NASCAR, where you can enroll and earn points when purchasing NASCAR apparel, merchandise, collectibles and experiences. On the “Fan Center” page, you can view weekly race videos, become part of NASCAR’s social network and find the NASCAR Fan Guide, wallpaper and screen saver downloads. Test your NASCAR knowledge every week for a chance to win amazing prizes in the “Play to Win” section.
Log on to www.ncga.com/racing for more information. NCGA’s page also includes the freshest news on the American Ethanol partnership.
WASHINGTON (May 18, 2011) – U.S. Department of Agriculture (USDA) Secretary Tom Vilsack received a letter from 147 members of the U.S. House of Representatives today, May 18, 2011, regarding USDA’s Grain Inspection, Packers and Stockyards Administration’s (GIPSA) proposed rule on livestock and poultry marketing. The so-called GIPSA rule was proposed June 22, 2010, and as a result of pressure from members of Congress, the National Cattlemen’s Beef Association (NCBA) and other industry groups. USDA is currently conducting an economic analysis on the proposed rule. In the letter, which was led by Representatives Jim Costa (D-Calif.) and Reid Ribble (R-Wis.), the members of Congress urge Secretary Vilsack to proceed in a transparent manner, which includes allowing stakeholders to comment on the rule before moving forward.
“Particularly in a climate in which additional scrutiny is being applied to regulations seen as overreaching or overly burdensome, we urge the department to proceed in a transparent manner that allows for those most impacted by this action a chance to comment on not only pending changes to the rule and the accompanying economic analysis as well,” penned the members of Congress, adding that a timeline for completion of the economic analysis and any further action is also needed.
NCBA President Bill Donald said the 147 members of Congress stood up for U.S. cattlemen and women.
“The proposed GIPSA rule puts big government smack dab in the middle of our business. It is the most pervasive invasion of federal government into the private marketplace I have ever witnessed,” said Donald, who is a Montana rancher. “I am proud we have leaders inside the Beltway willing to hold this administration accountable for its actions.”
2011 NCBA President Bill Donald
The members of Congress stated in the letter that it is troubling that USDA appears to be using the rule-making process to accomplish objectives specifically rejected by Congress. Colin Woodall, NCBA vice president of government affairs, said the elected leaders are holding USDA accountable in a big way. He said it is unprecedented to see an agricultural issue receive this level of bipartisan alignment.
“It is clear that USDA’s unpopular rule goes above and beyond the intent of Congress,” said Woodall. “Withdrawing the rule and developing a solution that is consistent with the intent Congress made clear in the 2008 Farm Bill is the only acceptable solution for Secretary Vilsack. This rule absolutely cannot move forward as written.”
Click here for a video update from NCBA’s Woodall.
Mexico, Mo., May 18, 2011 – Officials from USDA Rural Development met with business leaders in Mexico, Missouri to seek their input on ways federal, state and local officials can help improve economic conditions and create jobs. The meeting was hosted by Frank Cordie, President of Mid America Brick.
“The President and USDA are committed to creating good-paying jobs that will help businesses and the communities they serve,” Jonathan Adelstein, Administrator of USDA Rural Development’s Rural Utilities Service, and a member of the White House Business Council on Winning the Future, told an audience of nearly two dozen business owners and economic development officials. “This roundtable is one of many the Obama administration is holding to get feedback on ways we can help businesses expand and improve the economic base in your area.”
Johnathan Adelstein, USDA Administrator for Rural Utilities Programs
Adelstein facilitated the White House Business Council’s Roundtable at the start of a three-day tour of Missouri infrastructure and business projects USDA Rural Development has supported. The agency’s Rural Business Services program assisted Mid America Brick with financing to help reenergize the brick plan and bring back jobs for the community.
The Rural Utilities Services (RUS) program funds broadband, safe drinking water, wastewater and electric infrastructure projects to help rural communities create jobs and remain economically competitive with metropolitan areas.
While in Missouri this week, Adelstein toured several RUS funded projects. On Wednesday morning he visited Socket in Columbia, Missouri to see the progress on a $23.7 Million investment of federal broadband funds to support fiber-to-the-home network in rural Callaway County. On Thursday morning he joins Missouri Governor Nixon at Ralls County Electric Cooperative, in New London, to celebrate the construction and installation of $19.1 million in broadband services to 4,594 households, 311 business and 58 anchor institutions in northeast Missouri. Later in the day he stops at Ralls County PWSD No. 1 to visit the site of water improvements. Thursday evening Adelstein meets with Barry Hart, CEO of the Association of Missouri Electric Cooperatives and other Electric Coop leaders for dinner to discuss other infrastructure needs to help rural Missourians. The tour continues on Friday to three wastewater infrastructure projects in Howard County including: a visit to the City of Fayette’s new water plant and the new wastewater treatment facility plus the Howard County Regional Water Commission which serves three public water systems in southern Howard County and the City of New Franklin, City of Fayette and Howard County PWSD No. 1.
USDA is focused on creating 21st century rural communities that encourage innovation, entrepreneurship and are self-sustaining. Adelstein emphasized that USDA is looking to have an exchange of ideas with the business community on ways to create jobs. This exchange also is intended to educate business and community leaders about USDA and other the resources the Obama administration has to assist in this effort.
Anita J. (Janie) Dunning, Missouri State Director, USDA Rural Development
“Effective economic development is not a ‘one-size-fits-all’ approach,” said Anita J. (Janie) DunningUSDA Rural Development Missouri State Director.
The White House Business Council’s Winning the Future Roundtable with American Business is an opportunity for government leaders to hear directly from business leaders around the country about their ideas on how to grow the economy.
USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development fosters growth in homeownership, finances business development, and supports the creation of critical community and technology infrastructure. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA Rural Development’s web site at http://www.rurdev.usda.gov/mo
