Corn tab 2017

Page 1

FOREST CITY SUMMIT

WEDNESDAY, FEBRUARY 22, 2017 |

2017 SALUTE TO CORN FEB. 22, 2017

A SUPPLEMENT TO

C1


C2 | Wednesday, February 22, 2017

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Corn experts optimistic and concerned about 2017 season COURTNEY FIORINI

2017 Salute to Corn‌

CONTRIBUTED PHOTO‌

Tariff would negatively impact Iowa corn farmers COURTNEY FIORINI

2017 Salute to Corn‌

‌There is some concern within the industry surrounding Mexico, as some officials have threatened to no longer buy U.S. corn in response to President Donald Trump. Iowa State Extension Farm and Ag Business Management Specialist Kelvin Leibold said the country is an important trading partner, buying dried distiller grains from the ethanol industry. Leibold said a tariff would impact Iowa corn farmers.

“If the U.S. sugar tariff is reduced it will impact corn farmers negatively as it will probably impact the price of corn sweetener,” Leibold said. Still, it’s all speculation at this point. Iowa Corn Growers Association Director Jerry Maier said the association and other organizations will continue to pursue good relationships with Mexican buyers.

Local experts are both ‌ optimistic and concerned about the unknowns for corn in 2017. From trade to corn prices and growing, it’s difficult to predict the future. Paul Kassel, Iowa State Extension crops field specialist, said that there are not many good indicators for what 2017 might hold. “The one indicator we do have is soil moisture and we have plenty of that,” Kassel said. “Fall rainfall was 12 to 15 inches for many areas of Kossuth, Hancock and Winnebago counties, which is about 6 to 8 (inches) above normal.” The biggest concern is the possibility of a wet spring. CHRIS ZOELLER, 2017 SALUTE TO CORN “Even normal spring rain, Corn in a North Iowa field in 2016. which is 3 to 4 inches per month for April and May, could lead to planting deMake the Right Choice for Your Farming Operation! lays,” Kassel said. “Planting delays often reduce final If it’s time to upgrade your equipment or facilities, visit with our experienced corn and soybean produclenders. We’ll help you make the right choice for your operation. tion.” We’ve got great rates, flexible terms and fast service. To further complicate

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Growing season From C2

matters, Kassel said there is concern about El Niño conditions developing in the South Pacific as well as a drought in the southeast region of the U.S., where Midwest droughts often originate. “El Niño conditions usually favor corn and soybean production with cooler summer temperatures and ample rainfall,” Kassel said. “So, it is wait and see to see whether the southeast U.S. drought or El Niño dominates in 2017.” Yields in 2016 were record-setting for many producers, according to Extension Farm and Ag Business Management Specialist Kelvin Leibold. “The large crop helped some of the producers get back into the black while for others it helped minimize the losses they incurred,” he said. Leibold expects normal seasonal price patterns this year. “Ethanol plants have been using slightly more corn than in previous years,” Leibold said. “They should set a new record for corn

CHRIS ZOELLER, 2017 SALUTE TO CORN‌

Heavy rains created problems for some North Iowa farmers looking forward to an early harvest in 2016. utilization — 5.325 billion bushels compared to 5.206 last year.” Exports in 2016 year from Sept. 1 through Aug. 21, 2017, look to be up to 2.225 billion bushels from

SALUTE TO CORN 1.898 last year, Leibold said. Livestock feed demand is up slightly to 5.6 billion bushels, as well. “However, we have seen the expected crop carryout climb to 2.355 billion bushels from 1.737, which should keep corn prices from rising very much going into this next year,” Leibold said. Iowa Corn Growers Association Director Jerry Maier represents Crop Reporting District 2, which includes most North Iowa counties. Maier has been farming for 36 years. “Overall, I am optimistic about this upcoming season, but it will depend on what Mother Nature has in store,” Maier said. “What the public must realize is that not every year is going to be a record harvest.” Maier said there is record usage with strong demand

from exports and the livestock industry while prices are headed in the right direction. “We have had three record corn harvests in a row and that is why we have so much carryover,” Maier

Wednesday, February 22, 2017 | C3

said. “I don’t expect this year to be a record, maybe just above average.” The Iowa Corn Promotion Board is focused on increasing demand and markets for Iowa corn, Maier said, as well as improving farm

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production efficiencies. “Throughout history, agriculture and corn production have changed,” Maier said. “While changes will continue, we recognize that new forces are coming to bear on our industry.”


SALUTE TO CORN

C4 | Wednesday, February 22, 2017

Meeting to provide update on sulfur apps in corn ‌ LARION — Palmer amC aranth, new herbicide technology and a grain market outlook will highlight the annual meeting of the North Central Iowa Research Association. The annual meeting will also feature an update of research at the Iowa State University Northern Research Farm at Kanawha. The annual meeting of the North Central Iowa Research Association and educational program of the ISU Northern Research Farm is open to the public and will take place on March 16 at the Heartland Museum meeting room, 119 9th St. SW, Clarion. Registration and refreshments will be at 9 a.m. and the meeting will start at 9:30 a.m. The meeting will adjourn at 2 p.m. There is no cost to attend.

Those interested in attending are encouraged to register by March 10 to plan for meal numbers and handout materials. Call the Hancock County Extension office at 641-923-2856 or the Wright County Extension office at 515-532-3453 to register. Certified Crop Advisers can earn CEU credits for attending this meeting. Dennis Schwab, North Central Iowa Research Association president, will begin the morning program. Schwab will update attendees on recent activities of the association. The association is the owner of the research farm at Kanawha and provides guidance to ISU on research priorities. Matt Schnabel, ISU Northern Research Farm superintendent, will pro-

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Tariff From C2

FILE PHOTO, 2017 SALUTE TO CORN‌

Iowa State University Extension economist Chad Hart talks with area farmers during a past annual farm meeting. vide a season review from the Northern Research Farm at Kanawha. Karl Nicolaus, ISU Northern Research Farm Ag specialist, will discuss results from the on-farm cooperator trials and the involvement of local farmers. Reports of current research at the farm will be available. John Sawyer, ISU Soil Fertility specialist, will discuss the use of sulfur as a fertilizer product. Sawyer will present recent research results on sulfur applications in corn. Mike Owen, ISU Weed

Science specialist, will discuss the impact of recent Palmer amaranth discoveries in Iowa. Owen will also discuss recent herbicide technology developments and their relevance to Iowa farmers. Chad Hart, ISU Extension and Outreach economist, will provide an outlook for grain markets in 2017. Planting intentions, recent crop insurance decisions and South American crop production will be a part of Hart’s discussion.

“We can’t speculate on the likelihood of minority party legislation being enacted in Mexico, but this does highlight how important it is to stress to our Mexican corn, DDGS, and meat buyers that we appreciate their business and want to continue our strong working relationship with them,” Maier said. “Through the U.S. Grains Council in Mexico we are actively reaching out to these buyers to assure them of our commitment to providing them quality products.” Maier said that the Iowa Corn Growers and other agriculture organizations are sending letters to the Trump administration. The letters ask to preserve open, duty-free access on corn, beans, pork, beef, ethanol, and dried distiller grains

with Canada and Mexico. “Senate Finance Committee members, including Senator Grassley, are meeting with President Trump’s trade advisers and nominees and hitting home how important it is to preserve these markets as well,” Maier said. Maier said that he is optimistic there will be a rally in corn prices, though not by much. “It will depend on what happens with NAFTA and our trade agreements with the Asia-Pacific region,” Maier said. Maier sees that though there are concerns, farmers are optimistic about this coming season. “We realize that are a lot of moving variables right now, but we are looking forward to a good planting season and will continue to look for new and expanded markets for our corn,” Maier said.

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SALUTE TO CORN

Wednesday, February 22, 2017 | C5

Iowa Nice Guy takes on corny topics in latest educational video series ‌JOHNSTON — The Iowa Corn Promotion Board (ICPB) has teamed up with the Iowa Nice Guy, Scott Siepker, to launch a series of short engaging videos informing consumers about several important subjects related to the state’s top crop...you guessed it, CORN! The videos, available on the Iowa Corn YouTube channel and Facebook account, share information about hot topics surrounding corn and Iowa’s corn farmers then directs viewers to learn more at the Iowa Corn website. They include: What is E15?—Explains the benefits of E15 as a cleaner burning fuel that can save consumers money at the pump then directs viewers to the Iowa Corn website to learn more and to find convenient retail locations. High Fructose Corn Syrup (HFCS)Describes the difference between high fructose corn syrup and sucrose, explaining how there is little difference in composition between HFCS and table sugar. Lawns verse Fields: Provides viewers a better understanding of how fields and lawns are alike and different in contributing to our state’s water quality. Water Quality: Explains why farmers use fertilizer and what they are doing to

keep nutrients on their fields. Sweet Corn verses Field Corn: Describes the difference between field corn which represents most of the corn grown in our state and sweet corn which makes up only one percent of Iowa’s corn production. “We wanted a fun and energetic way to tell the story of Iowa corn farmers and corn overall,” said Iowa Corn Promotion Board President, Larry Klever, a farmer from Audubon, in a news release. “The Iowa Nice Guy has made a name for himself sharing the great things that make Iowa such a nice place, he felt like a natural fit to take on these key corn topics. Scott can simplify these key subjects into a way that resonates with Iowans.” The versatility of corn often creates questions and at times concerns for the unknown, that is why one of the Iowa Corn Promotion Board’s top priorities is to promote corn in all forms while answering consumers’ questions and addressing their concerns. With campaigns such as Corn: It’s Everything (which discusses the importance and the many uses of corn) and Super Duper (a push to use E15 at the gas pump), the Iowa Corn Promotion Board works to familiarize consumers about corn and the farmers that grow it.

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SALUTE TO CORN

C6 | Wednesday, February 22, 2017

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Iowa Corn Growers Association celebrates 50 years IOWA CORN GROWERS ASSOCIATION

‌The Iowa Corn Growers Association (ICGA) celebrates its 50th anniversary this year as the country’s oldest and largest corn growers’ organization. The ICGA, created from a statewide grassroots effort, was formed in 1967 with the distinct purpose of serving as the collective voice for its Iowa corn farmer-members, lobbying on ag issues at the state and federal level. “The Iowa Corn Growers Association has been a steadfast advocate for our membership over the last 50 years and will continue to be for the next 50 years and beyond,” said Iowa Corn Growers Association President Kurt Hora, a farmer from Washington. “The world may be a different place since our inception, but the dedication of our members at the grassroots level and their engagement in policy development has remained unchanged. Today, ICGA is home to nearly 7,500 corn farmer-members across the state, and our pro-farmer advocacy remains the number one reason members join ICGA.” The beginning of Iowa Corn can be traced back to roughly 10 years before its inception when founder Walter Goeppinger had a vision for a farmer-driven group and in 1957 rallied his neighbors together to create the National Corn Growers Association. In 1959, he also was instrumental in airlifting Iowa hogs and corn to Yomanshi, Japan, after a typhoon wiped out their hog farms. Goeppinger’s diplomacy is felt today with Japan being a top market for Iowa corn and pork. Flying the sows to Japan on an

airplane, led to the establishment of the U.S. Grains Council and the U.S. Meat Export Federation and the market development efforts of the U.S. Department of Agriculture today. In 1976, Goeppinger then set his sights on creating a state affiliate and founded ICGA. Membership dues were established to help finance the Iowa Corn Growers Association’s lobbying and legislative efforts in both Iowa and Washington, D.C. In celebration of 50 years, the Association is launching a new membership push with the goal of reaching 10,000 members. “As we continue to grow

and represent the needs of corn farmers across the state, we are calling on our current members and those with a vested inter-

est in agriculture, to help us expand our organization and strengthen our voice,” Hora said. “No matter the level that you are willing

to be involved, from being a member engaging in a call-to-action to serving on a county board, it is imperative that we have the

resources to continue supporting agriculture at the county, state, federal and global level. We have been here for Iowa corn farmers for the last 50 years, help us be here with full force for 50 more.” The association offers various levels of membership including a grower membership for $60 annually in addition to student and associate memberships. In honor of this historic anniversary, ICGA is also offering a discounted membership for farm couples to enjoy a linked membership of $90 per year or $200 for three years. If you would like to learn more about what it means to be an ICGA member, please visit iowacorn. org/membership.

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SALUTE TO CORN

Wednesday, February 22, 2017 | C7

CORN FACTS Did you know?

Iowa has approximately 87,500 farms. More than 97 percent of those farms are owned by farm families. Iowa ranks number one in producing corn, soybeans, hogs, eggs, ethanol and Dry Distillers Grain Solubles (DDGS) which serve as a premium source of protein for livestock. It also ranks fourth in beef cattle. In 2015, Iowa farmers produced more than 2.51 billion bushels of corn for grain according to the U.S. Department of Agricultural Statistics Service.

Sweet corn vs. field corn Only one percent of corn planted in the United States is sweet corn. 99 percent of corn grown in Iowa is field corn. When Iowa’s corn farmers deliver corn from the field, it’s “Field Corn.” Not the delicious sweet corn you might enjoy on the cob or in a can. Field corn is the classic big ears of yellow dented corn you see dried and harvested in the fall. It’s called “dent corn” because of the distinctive dent that forms on the kernel as the corn dries. While a small portion of “Field Corn” is processed for use as corn cereal, corn starch, corn oil and corn syrup for human consumption, it is primarily used for livestock feed, ethanol production and manufactured goods. It’s considered a grain. Sweet corn is what people purchase fresh, frozen or canned for eating. It’s consumed as a vegetable. Unlike “Field Corn”, which is harvested when the kernels are dry and fully mature, sweet corn is picked when immature.

What is it used for?

58 percent or 1.3 billion bushels of Iowa corn goes to ethanol production. A third of these bushels (or 339 million bushels) are turned into a co-product called DDGs, which is a high protein, valuable livestock feed. 43 percent of Iowa’s corn crop is used for ethanol fuel. Learn more. 461 million bushels or 21 percent of Iowa Corn went directly into livestock feed in the 2014/15 marketing year. In lives to c k

feeding, one bushel of corn converts to about 8 pounds of beef, 15.6 pounds of pork, or 21.6 pounds of chicken. Learn more. One bushel of corn produces 17 pounds of DDGS as well as 2.8 gallons of ethanol. Learn more. 12 percent or 264 million bushels of Iowa corn in the 2014/2015 marketing year went into corn processing used in the wet mill industry for food and industrials usage. Learn more.

9 percent or 203 million bushels of Iowa corn was exported out of the state in the 2014/2015 marketing year. In an average year, Iowa produces more

corn than most countries. chewing gum, marshmalLearn more. lows, crayons and paper. Corn is in more than Learn more. 4,000 grocery store items a few examples include: shampoo, toothpaste, Please see FACTS, Page C8

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C8 | Wednesday, February 22, 2017

Facts From C7

Debunking food vs. fuel myth There is a significant amount of misinformation on the internet regarding the relationship between corn and the price of food in the grocery stores. Let’s take a look at the facts: In 2015, U.S. corn farmers produced a record breaking crop. However, the price of corn is the lowest it’s been in three years, yet food prices have not come down. Only 16 percent of grocery costs can be traced back to farm inputs, like corn. The rest goes to costs such as energy, transportation, packaging, marketing and labor. Oil, not corn, has been driving up global food prices. The World Bank conducted research determining crude oil as the number one determinant of global food prices. The cost of energy from oil is integral to so much of the 84 percent of what makes up grocery costs. When the price of oil goes up, so does food prices. The great thing about corn is that it provides: A renewable, environmentally-friendly fuel source (Ethanol) Animal feed for livestock which is important to our food supply Exports supplying the world with corn and corn products which boosts our economy Food ingredients necessary for preparing many of our favorite meals Bio-based, renewable materials for industrial uses such as bioplastics

Other fun corn facts

Corn can be produced in various colors including blackish, bluish-gray, pur-

SALUTE TO CORN

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There is one silk for every kernel that grows in an ear of corn. ple, green, red and white but the most common color grown is yellow There is one silk for every kernel that grows in an ear of corn The number of kernels per ear can vary from 500 to about 1,200, but a typical ear would have 800 kernels in 16 rows Corn is grown in every continent except Antarctica One acre of corn is about the size of a football field A bushel of corn is 56 pounds, about the weight of a large bag of dog food. A single corn bushel can sweeten about 400 cans of soda pop.

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