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CORN 2013
THE NORTH PLATTE TELEGRAPH
Blender pumps offer ultimate choice There are 20 locations that offer various fuels across Nebraska E10. E15. E30. E40. E85. New fuel pumps are popping up all across Nebraska offering this wide range of ethanol blended fuels. Blender pumps, also known as flex fuel pumps, combine ethanol and ordinary unleaded gasoline at various rates to offer a wide variety of fuel choices — from ordinary 87-octane unleaded gasoline, 89octane E10 Unleaded (10 percent ethanol) and E15 (approved for vehicles model year 2001 or newer)—to higher ethanol blends targeted specifically to owners of flexible fuel vehicles (FFVs) including E20, E30 and E85. Blender pumps offer a wide range of fuel choices — all from one dispenser. “Blender pumps offer the ultimate in consumer choice,
Nebraska Press Association
This graphic shows which vehicles can use E15 ethanol blended fuels.
E15 next step Nebraska Press Association
Blender pumps offer a wide range of fuels, including a variety of ethanol blends, for the ultimate in consumer choice.
especially for flex fuel vehicle owners,” said Curt Friesen, a Henderson corn farmer and member of the Nebraska Corn Board. “This choice allows consumers to determine for themselves which fuel makes the most sense for them in terms of cost, performance and value. At the same time, these choices build demand for and usage of domestically produced, renewable ethanol—and that’s good for America’s economy
and energy security.” There are some 45 blender pumps at a total of 20 locations across Nebraska, and that number is growing steadily. Through a grant program using corn checkoff dollars, the Nebraska Corn Board offers financial assistance for petroleum marketers who want to convert dispensers to blender pumps. “It makes sense for Nebraska’s corn farmers to help build a fueling infrastructure that
helps move more ethanol through the marketplace,” Friesen added. “Nebraska is the nation’s second largest ethanol producer and the third largest corn producer, so building demand for ethanol is not only good for corn farmers and ethanol plants, but for Nebraska’s entire economy as well.” For a complete list of blender pump locations in Nebraska, visit www.NebraskaCorn.org. — Nebraska Press Association
The first fuel pump offering E15 in Nebraska — a blend of 15-percent ethanol and 85% ordinary unleaded gasoline—opened in Lexington in November 2012. Promoters of renewable, domestically produced ethanol expect more to follow. E15 has been approved for use in cars, light duty trucks and SUVs model year 2001 and newer. E15 can also be used in all Flex Fuel Vehicles, which operate on ethanol blends up to 85 percent ethanol (E85). Nebraskans have been filling up on E10 Unleaded for decades. This blend of 10% ethanol and 90% ordinary unleaded gasoline is approved for use by every major automaker in the world—and it has had a dramatic effect on lowering America’s dangerous and expensive addiction to imported oil. Before E15 could makes its way to a fuel pump, the fuel underwent extensive testing—some six million miles worth. “E15 is probably the most researched automotive fuel in history,” said Kim Clark, director of biofuels development for the Nebraska Corn Board. “It has been proven safe for use in more than 120 million vehicles in the United States.”
— Nebraska Press Association
Farmers look to improve
production
Think beef production is important to Nebraska? How about this: There’s nearly four head of cattle fed in Nebraska each year for every man, woman and child living in the state. That’s a lot of beef. Yet Nebraska also ranks sixth in the nation in hog production and is in the top ten for laying hens. All told, about half of Nebraska’s farm operations also raise livestock or poultry, and a vast majority of all farms are owned and operated by farm families. Jon Holzfaster, who raises cattle and corn on his family’s land near Paxton, said the
Please see LOOK, Page D5
CORN 2013
THE NORTH PLATTE TELEGRAPH
SUNDAY, JANUARY 20, 2013
D3
Corn and lack of moisture No end in sight for drought By ANDREW BOTTRELL abottrell@nptelegraph.com
Through Jan. 14, North Platte is 4.4 inches below normal snowfall for the winter season, and climate analysts are predicting no end in sight for the current drought. So how does that affect corn producers, and what can you do to help your summer crop now? For starters, making sure you leave crop residue on your fields is important, said Bob Klein, Western Nebraska Crops Specialist at the West Central Research and Extension Center. “That is so critical,” he said. “The soil water is the name of the game. We also use those crop residues, which are so important in our dryland [corn crops]. They are also important in our irrigated [corn crops] to reduce evaporation.
They will trap what little snow we have out there.” Sub-soil moisture is so minimal at this time, Klein said, that retaining any moisture at all in the soil is beneficial. Keeping residue on the fields over the winter months can reduce evaporation loss from 35 percent to as little as 15 percent, Klein said. As planting season then grows near, Klein said to watch the skies. “[Water is] the most critical resource we have,” he said. “We really want to take care of the water mother nature gives us and go as far with it as we can. And we can do a lot with a limited amount of water.” In 2012, west-central Nebraska saw a limited amount of precipitation at the beginning of the planting season, which was a good sign, at the time.
However, the area has received record-low amounts of precipitation since the beginning of May 2011. “We started with a little bit of sub-soil moisture [in 2012],” Klein said. “The chances [of a good dryland crop] are even less right now, because we don’t have any sub-soil moisture at all. What we’re telling people to do is just wait and see if we get any moisture at planting time.” Using no till methods may be another avenue for dryland corn farmers trying to cope with an extended draught, Klein said. Klein said if there is no moisture before planting season begins, many farmers might forego planting dryland corn this year, and wait until the fall to plant winter wheat. Or, farmers could plant crops that use less water, such as soybeans or grain sorghum. Some farmers have
switched to skip row farming, which is planting two rows of corn and then having two empty rows, which conserves water while still resulting in good yields. Crop residue is also an important aspect to remember before you begin to use skip row farming. “Before they ever consider skip row corn, always check with your farm service agency and your crop insurance people to see how they are going to handle that,” Klein said. Klein said it is also important to have a good weed management plan during the drought. One problem, with lots of dust and high winds during a drought, is the spores of herbicide-resistant weeds traveling great distances. “You can’t afford those weeds using the water,” he said. “Then you have a problem, even though you’ve been doing a great job with your fields.”
Drought-flourishing bugs could be problem European corn borer, western bean cutworm and corn rootworm, just three of the pests that damage crops By HEATHER JOHNSON hjohnson@nptelegraph.com
As if the drought wasn’t bad enough, this year farmers may have to defend their crops against another threat. Dave Boxler is an entomologist at the West Central Research and Extension Center in North Platte. He said there’s a good chance producers will see increased populations of bugs that thrive in hot, dry climates. “We have ongoing issues with spider mites, but they could be a major pest in our cornfields this year,” Boxler said. “We could also see more insects with piercing and sucking mouthparts that draw leaf fluids out.” Those would include the European corn borer, western bean cutworm and corn rootworm. Left untreated, the pests can do enough damage to reduce yields. “Of course, we can’t forget our friends the grasshoppers,” Boxler said. “They feed by chewing on leaf tissue. Even though last year we didn’t see significant problems from them, we still need to be vigilant.” So far the weather hasn’t been cold enough to kill any grasshopper eggs. Boxler said temperatures would have to remain in the 25-30 below range for five days for
that to happen. He said it’s important to examine fields and determine exactly what kind of bug is in them before applying pesticide. Certain chemicals work better on certain pests. “If the lower corn leaves turn an off color and webbing is visible, that’s an indicator of spider mites,” Boxler said. “Corn borers cause feeding damage on plants. Rootworms can be can be detected through a sampling of the soil around a plant, or by pulling a plant in the early part of the summer and looking for damage and larvae on the roots.” According to him, when the rootworms turn into adult beetles, they like to feed on corn silks. The WCREC website has photos of bugs farmers can use for identification purposes. Boxler said control of the creatures could be done with a sprayer, through center pivots or by using corn with a gene bioengineered into it that makes it resistant to some pests. “It’s more expensive than traditional seed, but in the past, these products have provided some good control,” Boxler said. “It’s a novel way of attacking a pest, and it eliminates a treatment down the road.” Throughout April, Boxler will teach pesticide applicator training courses. The focus will be on
Private pesticide applicator training n Feb. 6 at 1:30 p.m. — courthouse, Stapleton n Feb. 21 at 1:30 p.m. — WCREC, North Platte n March 5 at 9 a.m. — WCREC, North Platte n April 9 at 1:30 p.m. — WCREC, North Platte
Commercial pesticide applicator training n Feb. 5 at 8:30 a.m. — WCREC, North Platte n Feb. 28 at 8:30 a.m.— WCREC, North Platte n April 11 at 8:30 a.m. — WCREC, North Platte
safety when handling pesticides and education about the laws and regulations surrounding their use. “These trainings will allow people to buy restricted use products, which may work a little better than the general use ones,” Boxler said. “People will be given a certificate and a license that will last for three years.” The cost of the private trainings is $30. Boxler said those classes take about three hours. Registration can be done by calling the extension office at 532-2683 at least two days
in advance. The all-day commercial trainings are $60. Boxler said they involve a test, so those interested should request study materials two weeks in advance at http://pested.unl.edu. Registration can also be done on the website. Questions about the trainings can be called in to 1-800-627-7216. “Not all categories will be offered at every site for the commercial training, so people will need to do some online investigation to find out what categories they want to take and where they will be held,” Boxler said.
Nebraska Press Association
Check your owner’s manual to see if you’re driving a Flex Fuel Vehicle (FFV). Many FFVs also have yellow gas caps or have an insignia on the exterior of the vehicle.
RU cool 2 flex fuel?
About one in 10 vehicles in Nebraska are Flex Fuel Vehicles (FFVs) — and many owners don’t even know they are driving one. Driving a Flex Fuel Vehicle means you can fill up with any blend of ethanol and gasoline — from 100-percent ordinary unleaded gasoline for E10 Unleaded all the way up to 85-percent ethanol (E85). A computer in the engine automatically adjusts for the ratio of ethanol and gasoline, allowing drivers to fill up with any blend — at any time — in any amount. An FFV is fully covered under warranty to use any percentage of gasoline and/or ethanol, up to 85% ethanol. That’s what makes the vehicle “flexible.” You can fill up with one fuel blend one time, and with another the next — and you don’t have to wait for your tank to be empty to do so. How can you learn if you’re driving an FFV? Check your owner’s manual — or see if you have a Flex Fuel insignia on your vehicle or on your gas cap. Every domestic automaker and several foreign manufacturers offer Flex Fuel Vehicles from passenger cars to SUVs, from vans to pickups. “A Flex Fuel Vehicle gives consumers the ultimate in choice when it comes to filling up — from 100% ordinary unleaded gasoline to E10 to E15 to E40 to E85,” said Kim Clark, director of biofuels development for the Nebraska Crn Board. “The more ethanol we use in our fuel, the less we depend on oil imports which threaten our nation’s economy and energy security.” — Nebraska Press Association
n To learn more about FFVs and ethanol, visit these helpful links: Nebraska Corn Board (www.nebraskacorn.org); Nebraska Ethanol Board (www.ne-ethanol.org); FFV Awareness Campaign (www.ffv-awareness.org)
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CORN 2013
D4 SUNDAY, JANUARY 20, 2013
THE NORTH PLATTE TELEGRAPH
Federal crop insurance moves to risk management Claims for yield and revenue losses could approach $1 billion in both Nebraska, Iowa By BILL HORD World-Herald News Service
Midlands farmers hit hard by drought in 2012 were prepared for the heat-induced yield losses thanks to an aggressive federal crop insurance program. More than 90 percent of all acres planted in Nebraska and Iowa were protected by insurance, according to the U.S. Department of Agriculture’s Risk Management Agency. Claims for yield and revenue losses could approach $1 billion in both Nebraska and Iowa. The payouts reflect a change in the way Congress has structured farm programs, moving from an era of production limitations and direct disaster payments to one of risk management. “Farmers were extremely well positioned [for the drought],” said William Murphy, administrator of the Risk Management Agency. Murphy said new genetics in corn have been a
boon to farmers and the crop insurance program. “These new GMO crops are really having a lot of impact,” Murphy said. “(The drought) is as bad as 1988, but we are having much higher yields.” As a result of high levels of crop insurance coverage — combined with high prices at harvest time and new drought-resistant genetics in corn — revenue in Corn Belt states like Nebraska and Iowa remained at nearrecord levels in 2012. In years past, a drought like 2012 might have resulted in a crisis debate in Congress to enact billions of dollars in disaster assistance to farmers across the Corn Belt. Though billions of dollars in taxpayer subsidies for insurance premiums are still being spent — $6.9 billion in 2012 — much of the risk is borne by insurers. “Crop insurance has become the foundation of the federal safety net,” said Brad Lubben, an agriculture policy economist at the University of Ne-
braska-Lincoln. The idea of insurance is an easier sell with people who have no connection to agriculture, Murphy said. “To lay people in this country . . . it’s more acceptable than the direct payments.” Today’s heavily insured farms are the result of the evolution of a crop insurance program that goes back to the 1930s, when farms were devastated by heat and lack of rain during the Great Depression. But for nearly 50 years, the crop insurance program was considered an experiment that covered a limited number of crops. That changed in 1980 with passage of the Federal Crop Insurance Act. The idea was to shift to crop insurance instead of the free government disaster payments that had been paid to farmers for various losses. The 1980 legislation provided a government subsidy of 30 percent of the premiums for 65 percent coverage. Still, farmers were re-
luctant to take on crop insurance payments at a time when Congress typically stepped up to provide ad hoc disaster relief after adverse weather conditions cut into yields — as it did in 1988, 1989, 1992 and 1993. The movement toward widespread use of crop insurance began in 1996, when Congress decided that only farmers who purchased crop insurance would be eligible for disaster benefits for any crop year. Crop insurance participation jumped. The number of policies purchased to protect yields on Nebraska corn went from 22,805 in 1992 to 49,362 in 1997. Since then, Congress has continued to enact policies that move support for farmers from direct payments to crop insurance. Currently, the RMA creates or approves crop insurance products that are sold by private insurance companies, providing subsidies that hold down the cost to farmers. In Nebraska, the $427.8 million in premiums for corn policies in 2012 included $255 million in subsidies. Insurers must be li-
censed by the RMA’s Federal Crop Insurance Corp. to participate. The RMA has also simplified the rules to help farmers understand their options. One policy manual now covers 10 insurance options. In the past, five insurance options once required farmers to read five different manuals. New insurance products and new rules have proven attractive to farmers. The most popular policy is one called “revenue protection.” It allows farmers to buy policies that establish a county-targeted price for the crop — such as $5.68 a bushel for corn in Douglas County for 2012 — but receive the harvest price if crop prices increase. In 2012, the $5.68 price guaranteed in the insurance policy turned out to be $7.50 at harvest time. Crop insurance policies cover only a portion of the losses, depending on farmers’ decisions at the time of purchase. The level of coverage, say up to 75 percent of losses over 50 percent, determines the size of the premium. That harvest-time price run-up, due to supply-anddemand dynamics during
a drought year, is the key to a big revenue year on the farm in 2012. Although many Nebraska farms use irrigation and had no losses in 2012, 34.8 percent of corn policies in the state had turned in claims by midDecember. That compared with 10.2 percent in 2007. In mid-December, with a small percentage of claims yet to be finalized, the U.S. Department of Agriculture’s Risk Management Agency reported that 8.97 million acres of Nebraska corn were insured, and the claims payout was already at $624.9 million. The indemnity for soybeans had reached $9.9 million. Lubben said historical trends would suggest the total losses for Nebraska crops in 2012 could go beyond $900 million by the time all claims are finalized. The 2012 drought is a perfect example of how crop insurance is intended to work, Lubben said. “Widespread drought led to losses across the Corn Belt, and the indemnity of crop insurance helped to fill the void,” he said. “This is not a windfall by any calculations. It’s lost crop revenue.”
Corn is good forage resource By DIANE WETZEL dwetzel@nptelegraph.com
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The nasty drought that hit the area in 2012 has dried up pastures and left beef producers scrambling for forage to feed their herds. Consider corn, specifically corn stover or corn residue, as it is known. It is the stalks, and husks and leaves left behind after harvest. “Seventy percent of corn in Nebraska receives some irrigation, so corn is relatively isolated from the impact of the drought,” said Aaron Stalker, beef range systems specialist with West Central Research and Extension Center in North Platte. “Contrast that with native forages, which do not receive irrigation, so production was reduced for native grasses and hay. That makes corn a really good resource for feeding.” Corn residue can be used as forage in two ways. By allowing grazing on harvested fields or by mechanically harvesting up the residue for sale. “The majority of corn residue is not utilized,” Stalker said. “Our study estimates that about 25 percent of acres planted with corn are used by cattle.” When deciding whether to allow grazing, corn producers need to consider the stocking rate, or how many animals on a given number of acres will gain the optimal amount of weight. Cattle turned out to graze in a corn field will remove less than 20 percent of the corn leftovers, Stalking said, while baling up the residue will remove as much as 80 percent. Baling up corn residue will also remove vital nutrients, such as nitrogen, phosphorus and sulfur, nutrients that cattle allowed to graze will return to the ground when they recycle the feed back into the field via
their digestive systems. It is up to the individual producer to decide whether grazing or baling is the best option, Stalker said. “There is a big difference between the two,” he said. “For example, in a situation where there is a center pivot, it is relatively inexpensive to bale up the residue and if you lose water, you can replace it with the pivot. With dryland crops, there is no way to put that water back.” Corn residue left in the fields does help from a water conservation standpoint, acting as a barrier that prevents water from running off and evaporating. “In really high productive fields, we see a real benefit in grain yield if we remove a portion of the residue, and grazing can increase that yield,” Stalker said. “In high producing fields you get a lot of residue, which can make it difficult to plant in the spring and to get a nice uniform seeding. All that residue insulates the soil so it doesn’t warm up as quickly in the spring and delays germination.” The WCRE has developed tools for producers to help them decide of grazing or baling is for them. “There are a lot of factors that influence that decision and there isn’t any one-size-fits-all solution,” Stalker said. “It’s very important that farmers understand that grazing does not negatively impact their fields. Corn farmers often have the perception that utilization of corn residue is detrimental, especially in the case of grazing, and that’s just not true,” he said. “When we say these are safe, recommended practices, we have data from our research projects to back it up.”
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Corn prices, food costs mostly unrelated Diesel fuel needed to deliver semi-load of corn flakes to store costs more than the corn in the box Nebraska and much of the country’s farmers were looking at record crops at the end of May. Just a few weeks later that changed and the conversation shifted from how terrible the drought was for farmers to how it may cost everyone more to buy food next year. Reports that food prices were going to “skyrocket” tended to put the blame on higher priced corn — not the drought. Yet that begs the question: Is corn really that much of a driver in food prices? Certainly, corn is in many foods, but it makes up a very small part of most foods and an even smaller portion of what shoppers pay at the store. Corn flakes are a perfect example. When corn is $5 per bushel, there’s only about 7 cents worth of corn in an 18-ounce box of cereal. When corn prices jumped to $8 during the summer, the value of the corn in that cereal box only increased to about 11 cents. In other words, $2 spent on a lottery ticket could buy enough corn to make 18 boxes of cereal. The reality is, the diesel fuel needed to deliver a semi-load of corn flakes to the store costs more than the corn in the box. When combined with all the other expenses involved in making and marketing the cereal, it’s easier to see how the price of corn has little impact on a box of
LOOK
Above: Cents are based off $8 per bushel corn.
Left: Commodity prices are just one of many factors affecting food prices.
Nebraska Press Association
cereal that costs $3.50 or more in the store. Energy and oil prices especially have a significant impact on food prices. “While the drought certainly is impacting corn and corn prices, it’s also impacting every sector of agriculture,” said Tim Scheer, a farmer from St. Paul and chairman of the Nebraska Corn Board. “Farmers who rely on pasture and hay are facing significant difficulties. That’s critical for cattle producers be-
“We never stop learning. Every year we figure out something new and drive from Page D2 change,” said Holfaster, who generations of families who is a member of the Nebraska raise livestock — and feed for Corn Board. those livestock – continue to This notion of continuous discover better ways to raise improvement is key to Necattle and produce corn. braska’s position in food pro-
cause 70 percent of beef cattle’s growth is forage-based.” Other products that make up livestock feed are also priced higher because of the drought, making feed costs a challenge for livestock producers. “It’s not just corn, it’s not just hay. It’s just about everything,” Scheer said. “Unfortunately that’s what happens during a drought, and it is likely meat prices will move higher at a greater percentage than other foods next year be-
duction in the United States and globally, Holzfaster explained. “It also ties directly to the economic success of farm families, rural communities and the state as a whole, plus the thousands of Nebraskans whose jobs tie back
cause of that.” The same thing happened during the last widespread drought in 1988. Yet in the end, corn, like all commodities, has little impact on overall food prices. As the U.S. Department of Agriculture points out, commodity prices make up just 14 percent of the cost of food and despite the drought, food price inflation will be less in 2013 than it was in 2011. “This just shows there is a lot
to agriculture,” he said. “We wouldn’t be the secondlargest cattle on feed state and third largest corn producing state in the country if the state’s farmers and ranchers didn’t work to get better.” Kelsey Pope, director of
going on that impacts the price of food. Yes, corn may be priced higher, but other commodities may be priced lower and offset that,” Scheer said. “Saying highpriced corn is going to drive up the price of everyone’s grocery bill oversimplifies things and certainly overstates corn’s role in overall food prices, especially when high energy and oil prices impact every food product at every step of the process.” — Nebraska Press Association
advocacy and outreach for the Nebraska Corn Board, said farmers must evolve to stay viable and be successful. “Production methods change, technology changes, and the products consumers want also change,” she said. “In the end, farmers work
hard to deliver on all fronts.” For corn production, farmers today have access to seeds derived through biotechnology and conventional breeding to grow stronger and more resilient crops. — Nebraska Press Association
CORN 2013
D6 SUNDAY, JANUARY 20, 2013
THE NORTH PLATTE TELEGRAPH
From the Nebraska farm to the table Greater Omaha Packing takes state-produced corn, soybeans, cattle to the ends of the earth World-Herald News Service
OMAHA — Ag-related businesses make ongoing contributions to the Omaha-area economy. Every morning, a special truck arrives before dawn at the Mueller Dairy Farm near Hooper, Neb., to load fresh milk from 200 Holsteins. By the time most people are at work, the truck unloads in the heart of Omaha about 45 miles away. Within 48 hours of milking on the farm, Roberts Dairy has delivered the milk to grocery shelves. It is a business arrangement that has worked for more than 60 years. The Mueller-to-Roberts connection is evidence of how the farm still looms large in a city that prides itself on museums, medical schools, sports complexes, performing arts centers and fine restaurants. “You can’t avoid it (the agriculture connection),” said Ernie Goss, a Creighton University economist. The Mueller Dairy is a prime example. “Roberts has been a good stable business for many years in the Omaha area,” said Lowell Mueller, a thirdgeneration dairyman. “They have been a good business partner.”
Mueller likes shipping milk into Omaha. “We want local businesses to sell our milk,” Mueller said. Without Roberts, the costs would be higher to ship farther away. Roberts Dairy acquires 90 percent of its raw milk from the 230 dairy farms within 100 miles of the Omaha plant, according to general manager Ron Benefiel. The company is proud to promote its milk as coming from local dairy farms and containing no antibiotics or artificial growth hormones, he said. There are many other examples of Omaha businesses that thrive because of ties to agriculture. On one side of town, CLAAS — the fourthlargest agricultural manufacturer in the world — assembles the biggest combines in the world. “Omaha is an excellent base,” said Leif Magnusson, president of CLAAS of America. “The roots of this community are based in agriculture.” On another side of town, a food-processing plant — Greater Omaha Packing Inc. — converts cattle into special cuts of beef for consumers around the world. “Greater Omaha has been invested with the beef industry since 1920,” said Angelo Fili, executive vice president. “Nebraska’s
Markets cause temporary shutdown of Ravenna plant RAVENNA — The Abengoa Bioenergy ethanol plant in Ravenna is beginning a temporary shutdown this week. Chris Standlee, Abengoa executive
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By BILL HORD
grain and livestock products are extremely well respected.” Companies like Greater Omaha Packing take Nebraska farm products — cattle and the corn and soybeans used for feed — to the ends of the earth. “We have helped to push Nebraska products,” Fili said. For example, a new beef product from Greater
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per day. ConAgra’s link to Nebraska’s agriculture industry made headlines in 2012 when the company announced it would locate a food research facility at the University of Nebraska’s Innovation Campus in Lincoln to learn more about popcorn and tomatoes. In Omaha, one of the biggest names in cereal — Kellogg — continues to produce familiar products. Kellogg’s relationship with Nebraska farmers is the closest it has ever been, said Diane Holdorf, chief sustain-
“Over the past few years, we’ve sought to work more closely with the farmers who grow our grains, to build relationships ... and work together to drive future improvements.”
”
— DIANE HOLDORF, CHIEF SUSTAINABILITY OFFICER, SAID ABOUT RELATIONSHIP WITH KELLOGG’S Omaha Packing was selected as “new product of the year” by Walmart in Chile. Along the river on Omaha’s eastern border, ConAgra Inc. — a Fortune 500 company — creates food products that end up in 97 percent of American homes, according to Food Processing magazine. In perhaps the ultimate farm-to-business-to-consumer connection, ConAgra sells nearly 13 million packages of food products
ability officer. “Over the past few years, we’ve sought to work more closely with the farmers who grow our grains,” Holdorf said, “to build relationships ... and work together to drive future improvements.” Kellogg began producing cereal in Omaha in 1943 at 26th and Center Streets but has been at 9601 F St. since 1965. From that plant comes
Special K, Corn Pops, Smart Start, Fruit Loops and Apple Jacks made from grain grown by Midlands farmers. It is “Dirt to Dinner,” as they say, right here in River City. Or “farm to fuel,” in other instances. North of Omaha, in Blair, is a 650-acre business campus that owes its existence to corn. “This is a $1.4 billion investment and 1,000 people working at the site,” said Gavin Atkinson, facility manager at Cargill Inc.’s massive ethanol plant. “We bring in corn and we extract the various products.” Those products include a sweet bran for cattle farmers, corn gluten used by the pet food industry, a crude corn oil, high-fructose corn syrup and a byproduct used to make a biodegradable plastic. The Cargill plant takes in about 100 million bushels a year of corn from area farmers and produces about 195 million gallons of ethanol. “About half to two-thirds of our corn is going to ethanol,” Atkinson said. “The rest is going to other partners.” Cargill’s presence in Blair has attracted companies that are linked to agriculture through the milling plant. An example is Novozymes, a Dutch company that came to the Blair biorefinery campus to produce the enzymes that are needed to refine corn and other biomass products into ethanol.
Omaha is also home to corporate headquarters of the largest cooperative soybean processing company in the world. AGP (Ag Processing Inc.), with offices at 12700 West Dodge Road, is a farmer-owned cooperative made up of 175 local co-ops representing more than 250,000 farmers. AGP operates a soybeanprocessing plant in Hastings, Neb., plus six in Iowa, one in Missouri and one in Minnesota. The company is a leading supplier of refined vegetable oil. Among other things, AGP produces a patented product called AminoPlus, a soybean-based supplement for dairy cows that improves milk production. AGP is expanding its soybean plant in Minnesota to add AminoPlus production capacity that already exists at Hastings and two Iowa plants. No matter how you cook it, Omaha’s business is tied to agriculture in a way that is typically healthy for the economy. “Omaha has benefited to a great degree because it has industries that have done well nationally and globally,” said Goss, “and that has to do with food and agriculture doing well and likely to continue to do well.” It’s a farm-to-business link that has a bright future. “You can’t help but use agriculture products,” Goss said.
NEWS AT A GLANCE
vice president, said the shutdown was caused by an unfavorable ethanol market. “We’ve had an unusually unfavorable market for a fairly long period of time,” Standlee said. “In the last year or two in the ethanol industry, a lot of plants have
either done temporary shutdowns or slowdowns. It’s a difficult market.” The Ravenna plant employs about 50 people and has been open since September 2007. Standlee said the company has made no plans about staffing at this point. He said market conditions will
NORTH PLATTE RICHARD BOLLMAN 308-534-7636 800-303-7636 308-520-2690
MAYWOOD FEED DIVISION MANAGER ELDEN HALL 308-362-4228 800-233-4551 308-655-0192
dictate how long the plant is shut down. Steve Sorum, ethanol projects manager for the Nebraska Ethanol Board in Lincoln, said there are four or five other Nebraska plants that also are operating sporadically and one at Sutherland that did not process fuel at all in 2012.
MAYWOOD
NORTON, KS
CAMBRIDGE
JENNIFER GIGAX 785-259-6496
TED MASHEK 308-362-4345
DOW NEWCOMB 308-697-4543
RICK MULLEN 785-877-5131 785-202-1753
THE NORTH PLATTE TELEGRAPH
CORN 2013
SUNDAY, JANUARY 20, 2013
D7
Federal Reserve says farm income may drop in 2013 Length of drought could have impact on agriculture revenue OMAHA (AP) — The Federal Reserve predicts U.S. farm income could decline in 2013, but it depends upon how long the drought continues. Roughly two-thirds of the nation has been in a severe drought since last summer. The Federal Reserve Bank of Kansas City, Mo., said Thursday that if it continues, prices of corn and other crops would remain volatile because of tight supplies. But if normal weather conditions return, crop prices would decline and lead to lower farm incomes. The USDA predicted net farm income in 2012 would reach $114 billion because of the combination of high crop prices and significant crop insurance payments because of the drought. That total would be the third-highest farm income on record
even though it’s 5 percent lower than the previous year. The Federal Reserve’s report looks at numerous factors that will influence farmers’ financial health and how much farmers will make in 2013. The consequences of the drought go beyond dollars and cents. Many farmers have said they would prefer to be able to grow and harvest their crops even if it means lower net income. The 10th Federal Reserve District covers Kansas, Nebraska, Oklahoma, Wyoming, Colorado, northern New Mexico and western Missouri. The Federal Reserve said farm profits may wind up lower this year, but that would help livestock producers because their feed costs would be lower. In the past two years, livestock producers have struggled to earn a
profit because of high feed costs and the drought. Current market prices suggest corn and soybean prices could be 10 to 15 percent lower by next fall. That would happen if weather conditions improve and farmers harvest a strong corn crop. Corn prices have been high for several years because supplies remain tight amid strong demand from the ethanol industry, livestock producers and international buyers. But the U.S. Drought Mitigation Center says the drought has shown few signs of easing. The latest weekly update shows that most of the central and western United States remains in drought. The National Weather Service predicts that the drought is likely to continue in Plains and Western states at least through the
end of April. And climatologists have said an abnormally large amount of snow would have to fall across the region to end the drought this winter. The Federal Reserve said that if the drought continues into this year’s growing season, farm income will likely be strong again. In drought, crop supplies would remain tight, so prices would be high. Most farms are in good
financial shape to withstand the drought because they have little debt and farmland values have increased. The Federal Reserve said the current debt-to-asset ratio for farmers is 11.7 percent. That’s much better than in the 1970s when that ratio was 20 percent. The higher debt levels in the past contributed to the farm crisis of the 1980s. But the Fed cautioned that much of today’s farm debt may be concentrated at a small number of farms, so farms with high
debt could still have problems. For instance, about 6 percent of Kansas farms had amassed debt equal to 70 percent of their assets.
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CORN 2013
D8 SUNDAY, JANUARY 20, 2013
Sensor network helping
farmers manage water use Research shows how to reduce irrigation by up to 25 percent
A network of sensors allows farmer Mark Jagels of Davenport know when he should water his corn crop and when it makes sense to wait a few days. This is key information because Jagels, who is also a member of the Nebraska Corn Board, wants to use the least amount of water possible but still produce a good crop. When needed, supplemental water in most cases is delivered through a pivot — a large sprinkler. It’s pretty common in Nebraska to see pivots providing water to corn during the summer. Nationally, though, only 11 percent of the corn crop receives supplemental water from irrigation. The rest relies only on rain. Because Nebraska is unique in terms of irrigating corn, researchers in the state have done a lot of work to help farmers best manage this natural resource. That includes the network of sensors managed by the University of Nebraska that Jagels and other farmers follow online. Some farmers, including Jagels, also install their own sensors so they can manage water use
The Associated Press
Evapotranspiration (ET) gauges, like the one shown here, let farmers know how much water corn plants have taken up from the soil and evaporated into the air. Watermark sensors keep track of how much water is available in the soil. Combined, these two technologies give an accurate picture of water use and reduces irrigation amounts, saving both water and the energy dollars to pump it. more specifically for their location. “The investment is worth it,” he said, “because the cost of buying sensors is easily offset by leaving pivots shut down for longer periods of time.” The sensors used by Jagels and in the university network are watermark sensors and evapotranspiration, or ET, gauges. Watermark sensors are buried in the soil at different depths and tell farmers how much moisture is available to their crop. ET gauges tell farmers how much water their corn crop is transpiring. Combined, these tools tell farmers how much water the plants are using and
THE NORTH PLATTE TELEGRAPH
Ethanol plants produce key livestock feed ingredient Ethanol plants in Nebraska are one of the biggest suppliers of a key feed ingredient to livestock producers across the state and other parts of the country. Nebraska’s ethanol plants take in corn and produce a lot of ethanol. In fact, about 2.8 gallons of ethanol are produced for every bushel of field corn they buy from nearby farmers. In total, ethanol plants in the state produce more than 2 billion gallons a year, making Nebraska the second-largest ethanol producing state in the country. Yet the same plants also produce nearly 18 pounds of livestock feed from that bushel of corn, more than 6 million tons every year. “That feed, distillers grains, is sold to local livestock producers or dried and shipped across the country,” said Nebraska Corn Board member Dennis Gengenbach, a corn and cattle farmer from Smithfield. “Since ethanol is made from the starch in each kernel, distiller’s grains is comprised of the other components, which makes it high in fiber and protein and an excellent feed ingredient.” In fact, it’s sought after by livestock producers, especially cattle producers. Some ethanol plants also extract a portion of the corn oil from each kernel. This non-food grade oil is a great feed additive for poultry, but it can also be processed and converted to biodiesel. All told, an ethanol plant is truly a biorefinery. A plant using 16 million bushels of corn to produce 45 million gallons of ethanol can also make 135,000 tons of low-oil distiller’s grains and 12 million pounds of corn oil. — Nebraska Press Association
when they may need to irrigate. Research using these tools has shown farmers how to reduce their water use up to 25 percent while still achieving good yields. “When it’s hot and sunny you want to believe it is drier than it is, that the crop is using more water,” Jagels said. “We’ve learned that isn’t always the case. The technology available today lets us know it’s okay to wait a few more days before irrigating, and that saves money, energy and water, even in a drought year like 2012.” — Nebraska Press Association
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*NEW RAM PICKUPS *12 2500 Crew Cab Laramie LB 4x4, 800 Cummins, 6-autostick, 2-zone auto temp, Navigation, Premium sound, 2- power heated/cooled seats, Remote start, (315951), List $56895 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$47788 *12 3500 Crew Cab Big Horn SB 4x4, 800 Cummins, 6-autostick, 40/20/40 Cloth power seat, Remote start, Bluetooth, Spray liner, Forged wheels, (218859), List $53510 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$44187
USED PICKUPS 12 Dodge 1500 Crew cab Big Horn Rambox 4x4, Hemi, Remote start, Power seat, Navigation, Premium sound, Anti-spin, Back camera, 20" mags, 11k mi . . . . . . . . . . . .Just in 12 Dodge 1500 Crew cab Outdoorsman Rambox 4x4, Hemi, Power seat, Remote start, Premium sound, Navigation, Chrome tubes, Loaded unit, 13k mi . . . . . . . . . . . . . . . .$33900 11 Dodge Dakota Crew Cab Laramie, V8, Heated power leather seat, Auto lamps, 6-CD premium sound, Sirius, Chrome tubes & wheels, Loaded, 12k mi . . . . . . . . . . . .$28900 11 Dodge 1500Cab Outdoorsman 4x4, 5.7 Hemi, Power seat, Remote start, Bluetooth, Navigation, Deluxe travel computer, Anti-spin, Loaded . . . . . . . . . . . . . . . . . . . . . .$26880 11 Dodge 2500 Reg cab ST 4x4, Hemi, A/C, Tilt, Cruise, CD, Sirius, Travel computer, Business console, Tow pkg, HD ready for work, 35k mi . . . . . . . . . . . . . . . . . . . . .$22850 10 Dodge 2500 Reg cab SLT 4x4, Hemi, Power seat/recliner, Keyless, Theft alarm, Premium sound, Tow pkg w/ brake control, Travel computer, Anti-spin, 31k mi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$26800 08 Dodge 3500 Quad Cab Laramie LB 4x4 Single, Cummins, 6-spd auto, Power leather seats, 2-zone a/c, Premium sound, Sunroof, Sharp, Decked, 48k mi . . . . .$35800 08 Dodge 2500 Quad Cab SLT SB 4x4, Cummins, 6-spd manual, Power seat, Keyless, Sirius, Tubes, Spray liner, Travel comp, One owner local trade, 83k mi . . . . . . . . . . . .$28800 08 Ford 250 Reg Cab XL LB, 4x4, Powerstroke, Automatic, A/C, Cruise, Travel computer, Grille guard, Drop ball, HD for work, Local Trade, 86k mi . . . . . . . . .$18800 07 Dodge 2500 Mega Cab SLT SB 4x4, Cummins, 6-spd auto, Power seat, GPS navigation, Tubes, Spray liner, 3.73 Anti-spin, Very nice unit . . . . . . . . . . . . . . .$29800 04 Dodge 2500 Quad Cab SLT SB 4x4, 555 HO Cummins, Auto, Power seat, CD, Tubes, Travel computer, Anti-spin, HD tow unit, Cummins best . . . . . . . . . . . . . . .$15800 03 Dodge 2500 Reg cab 4x4, V10, 5-spd, A/C, Tilt, Cruise, CD, Tach, Tubes, Tow pkg, 5th wheel ball, 3.73 gears, HD ready for work . . . . . . . . . . . . . . . . . . . . .$7750 00 GMC 1500 Ext cab 4dr SLE 4x4, 5.3v8, 2-power seats, Keyless, CD, Comp/temp, Auto dim mirror, Local trade, Clean, Solid . . . . . . . . . . . . . . . . . . . . . .Just in 97 Chevy 1500 Ext cab Silverado 4x4, V8, Power seat, CD/ Cass, ABS, Tach, Hitch, Alum wheels, Solid & Clean, Local trade, Some rust . . . . . . . . . . . . . . . . . . . .$4850 96 GMC 2500 Ext cab SLE LB 2wd, 7.4LFiV8, Power seat, Remote entry, Rhino liner, Excellent shape, Hard to find one this good, Local trade . . . . . . . . . . . . . .$5450 94 Dodge Dakota Club Cab SLT 2wd, Fiv6, A/C, Tilt, Cruise, Power Windows/ Door locks, Clean, Solid, Runs good, Local trade, 93k mi . . . . . . . . . . . . . . . . . . . . .$4450 90 Chevy 1500 Ext cab Silverado 2wd, 5.7Fiv8, Power W/ DL, Runs good, Solid . .$3650
*NEW & USED MINI-VANS *13 Chrysler Town/ Country Touring, Power seat/doors/gate, Leather, 3-zone a/c, Back camera, 9" rear video, Sirius, Touch screen, More, (512355), List $30990 . . . . . . .$27698 12 Chrysler Town/ Country Touring, Leather, Power seat/doors/liftgate, Rear video, Touch screen, Back camera, Auto dim mirror, Program travel comp, Loaded . . . . . . . . .$24900 12 Dodge SXT, Stow-n-go, 3-zone auto temp, Power seat/pedals/doors/liftgate, Remote start, Rear video, 506-watt premium sound, Back camera, Loaded, 12k mi . . . . .$23900 12 Dodge SXT, Stow-n-go, 3-zone auto temp, Power seat/pedals/doors/liftgate, Remote start, Rear video, 506-watt premium sound, Back camera, Loaded, 17k mi . . . . .$23300 12 Dodge SXT, Power seat/ pedals/ doors/ liftgate, Remote start, Premium sound, Rear video, Touch screen, Deluxe travel computer, Super console, Loaded, 21k mi . . . . .$22800 12 Dodge Crew, Stow-n-go, 3-zone auto temp, Power seat/pedals/doors/liftgate, Deluxe travel computer, Super console, Alum mags, 28k mi . . . . . . . . . . . . . . . . . .$20600 12 Dodge Express, Stow-n-go, 3-zone a/c, Power seat/doors/liftgate, CD, Steering wheel controls, Super console, Alum wheels, 12k mi . . . . . . . . . . . . . . . . . . . . . . . . . . . .Just in 11 Chrysler Town/ Country Limited, GPS Navigation, 2-9" Rear video, Remote start, Blind spot detection, Smartbeam, 2-power heated leather seats, rear heated seats, SUNROOF, 506 watt sound, Rainsense wipers, Fully Decked Executive, 14k mi . . . . . . . .$31800 08 Dodge Grand Caravan SXT, 3.8v6, Stow-n-go, Power driver seat/doors/pedals, Keyless entry, Travel computer, Traction control, Very nice local trade . . . . . . . . . . . . .$12900 06 Dodge Grand SXT, Stow-n-go, Power seat/doors/gate, 3-zone a/c, Keyless, CD w/ steering wheel controls, Travel computer, Traction cont, Local trade . . . . . . . . . . .$7750 01 Pontiac Montana, 2-power leather seats, Rear a/c, CD/ Cassette, Park assist, Travel computer, Comp/ temp, Alum wheels, Solid, Clean . . . . . . . . . . . . . . . . . . . . .$5850
USED FULL SIZE VANS 11 Ford E350 XLT Club Wagon - V8 FFV, 12 passenger, Rear heat & a/c, Keyless, Travel computer, RSC traction control, Park assist, More, 12k mi. . . . . . . . . . . . . . . . . . . .$22800
*Commercial customers qualify for $500 up-fit additional rebate(s) on select models. $1000 of 2500/3500 Diesel pickup & $750 of 2013 Town & Country mini-van rebate requires a trade-in. All rebates to dealer. Rebates to dealer business center customers only. Rebates/ sale can end or change at any time. Certificate programs not included (ex: railroad program). These programs may lower price/ increase rebate. Contact Dealer for Details. (010613).