Tiemann Ends Term as Chairman of U.S. Grains Council

Nebraska Corn Board member Alan Tiemann, a farmer from Seward, Nebraska, led his final meeting as chairman of the U.S. Grains Council (USGC) at the organization’s 56th annual board of delegates meeting in Louisville, Kentucky. Tiemann served as chairman of USGC for one year.

“As I look back over this past year and all the years since 1997 that I have been part of the Council, there has been constant change,” said Tiemann. “It is with the upmost confidence that I leave this post knowing that the USGC staff and its membership are ready to handle all of the changes and challenges that lie ahead as they build on this past year’s theme of Excellence in Exports.”

During Tiemann’s tenure as chairman of the USGC, he introduced the theme of Excellence in Exports. This theme focused on the council’s display of excellence in its membership, its global staff team, the relationships it fosters, the collaboration it has with its partners and its continued dedication to export markets.

In his final speech to the USGC delegates, Tiemann noted, “Markets don’t just happen, we have to work to make them happen. In my time serving as chairman, I am honored to have witnessed firsthand the significant contributions our staff and leadership, in collaboration with partners around the world, have made to the industries we represent.”

Tiemann also noted that USGC continues to focus on building export markets for U.S. ethanol and communicating to global customers about the work the U.S. grains industry does to reliably produce high-quality crops. They are working with organizations such as Growth Energy, Renewable Fuels Association (RFA), the National Corn Growers Association and state corn associations to build a robust ethanol promotion program around the world. Additionally, the council will continue to support the work of grower associations at the state and national levels as they advocate for trade agreements.

“The corn industry has a lot at stake when it comes to exports and we appreciate all the work the Council does on our behalf,” said Kelly Brunkhorst, executive director of the Nebraska Corn Board. “It has been rewarding to see a Nebraska corn farmer give so much of his time to serve and expand the opportunities for our industry.”

The Nebraska Corn Board strongly believes in USGC’s mission and has supported the organization with corn checkoff dollars for many years. USGC strives to develop export markets around the world and has offices in more than 50 countries. With 95% of the world’s population outside of the U.S. and that population projected to grow to 9 billion by 2050, USGC makes it a priority to teach producers around the world how to use feed grains effectively and manage their operations efficiently.

“Despite some of the challenges facing the farm economy today, the Council’s programs have a clear impact around the world,” added Tiemann. “This last year has truly served as a year of excellence in exports that will make a difference to agriculture’s success now and long into the future.”

Tiemann farms near Seward, Nebraska, and has spent more than 35 years in production agriculture. He is currently the at-large director and past chairman for the Nebraska Corn Board and has been representing the board as a USGC delegate since 2005. Prior to that, Tiemann served as a USGC delegate representing the Nebraska Grain Sorghum Board for a number of years. Over the next year, Tiemann will serve as the past-chairman for the USGC.

Panama Canal Expansion

The long-awaited Panama Canal expansion opened on June 26, 2016 with a ceremonial ship passing through the waterway. The U.S. grains industry, including the U.S. Grains Council (USGC), has eagerly anticipated the completion of the Canal expansion project since it was announced nearly a decade ago.

"The Canal is a vital trade route for all grains and other agricultural commodities that are shipped from the U.S. Corn Belt to Asia," said USGC Chairman and Nebraska farmer Alan Tiemann, who attended the ceremony. "In fact, with the completion of this project, it is estimated that the cost to transport grain between those two points will drop."

This project was the largest expansion for the Canal in nearly a century. The multibillion dollar plan constructed a new set of locks that allowed for the passage of wider, longer and heavier loaded ships.

"The Canal's expansion and resulting decreases in shipping costs and time will improve competitiveness of U.S. grains in growing markets," Tiemann said. "This will help U.S. farmers gain access to new markets and continue to expand sales with buyers in our established markets who want more efficient shipments of grain."

While the exact impact of the Canal's expansion on the global grain trade remains uncertain, the Canal's ability to handle Capesize vessels will create greater opportunities for exports.

For more about the grand opening of the Panama Canal, watch Alan's Tiemann's interview below with Market Journal.

For more information on the expansion project, visit the Panama Canal Authority's website here.

Exports Matter to Nebraska Corn Farmers

International exports play a crucial role in supporting prices and enhancing the value of Nebraska corn!

With more than 95% of the world’s population living outside the United States and representing 75% of the world’s purchasing power, there is huge market potential for Nebraska corn around the world. From raw grain—to red meat—to ethanol, exports in all forms help support corn prices for Nebraska corn farmers. And each value-added product plays a fundamental role in building global demand.

Enhancing the profitability of Nebraska corn and value-added corn products through market development is one of the cornerstones of the Nebraska Corn Board. That’s why the Nebraska Corn Board has long standing relationships with organizations such as the US Grains Council (USGC) and the US Meat Export Federation (USMEF).  With offices in key markets around the world, these organizations work hard to help identify and develop export markets for Nebraska corn. Their international directors are positioned as the ‘boots on the ground’ force that helps recognize opportunity and identify challenges in new and existing global markets.

“Even though most corn grown in Nebraska is used right here in our state for livestock and ethanol—or shipped to dairies in California and feedlots in Texas, we still have a lot at stake when it comes to exports,” said Alan Tiemann, a farmer from Seward, the at-large director on the Nebraska Corn Board and chairman of the U.S. Grains Council. “International exports in all forms help use the U.S. corn supply and create demand that affects our corn prices here at home.”

As the chairman of the USGC, Tiemann has a key role in helping the Council identify new opportunities and priorities in a rapidly changing global market. With the population projected to grow to 9 billion by 2050, USGC is working hard to teach producers around the world how to use feed grains effectively and manage their operations efficiently.

In February, Tiemann helped lead USGC’s 13^th annual International Marketing Conference where they highlighted the Council’s mission to drive Excellence in Exports. One key topic of discussion at the conference was ethanol exports. “Ethanol exports continue to be a big priority to the Grains Council. As the number of vehicles increase worldwide, international markets for ethanol are growing dramatically,” added Tiemann.

USGC is the market development arm for Nebraska corn and value-added corn products around the world, while USMEF is the market development arm working to increase our market share for red meat around the world. Both organizations have international directors that work around the globe to build demand, knock down trade barriers and serve our customers in the most critical overseas markets.

To hear more of Tiemann’s remarks on the USGC’s International Marketing Conference, watch our video above.  Additionally, to learn more about the importance of exports to Nebraska corn farmers, watch our video, “Why Exports Matter to Nebraska Corn Farmers.”

U.S. cattle on feed down, but red meat exports looking positive

While the Cattle of Feed report that came out earlier this month showed a decline in cattle on feed for Nebraska and the U.S., there was a positive report on global meat exports from USMEF.

Cattle on Feed Report

Nebraska feedlots, with capacities of 1,000 or more head, contained 2.46 million cattle on feed on February 1, according to the USDA's National Agricultural Statistics Service. This inventory was down 2 percent from last year. Placements during January totaled 490,000 head, down 3 percent from 2015. Fed cattle marketings for the month of January totaled 435,000 head, down 3 percent from last year. Other disappearance during January totaled 15,000 head, unchanged from last year.

Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.7 million head on February 1, 2016. The inventory was slightly below February 1, 2015.

Placements in feedlots during January totaled 1.78 million head, 1 percent below 2015. Net placements were 1.72 million head. During January, placements of cattle and calves weighing less than 600 pounds were 340,000 head, 600-699 pounds were 365,000 head, 700-799 pounds were 494,000 head, and 800 pounds and greater were 580,000 head.

Positive Signs for U.S. Red Meat Emerging Markets 

FAS Regional Counselor Quintin Gray (left) and USDA Undersecretary
Alexis Taylor (right) assist chef Robin Gomes at the Taste of the U.S.A.
culinary demonstration at Gulfood 2016. Photo credit: USMEF

The U.S.Meat Export Federation recently participated in Gulfood 2016 which included a week of face-to-face meetings with potential customers from the Middle East, Africa, Asia and Europe. The region’s largest food show, which attracted about 90,000 people from 170 countries this year, was held in Dubai, United Arab Emirates (UAE).

Dan Halstrom, USMEF senior vice president for global marketing, said the atmosphere at Gulfood was upbeat despite economic challenges in the region created by declining oil prices. He described the show as very productive from the U.S. meat industry’s standpoint.

“The interest level from many countries was exciting,” said Halstrom. “Whether we are talking about the UAE, Jordan, Ghana, or South Africa, it was obvious that with the emerging nature of some of these market economies there is excellent potential for imported beef products.”

South Africa in particular was a hot topic of discussion at Gulfood, Halstrom noted. The market recently reopened to U.S. beef for the first time since 2003, and USMEF is planning in-market visits and a buyers’ event in that part of the world later this year. Just this past Friday, it was announced that South Africa has also reopened to U.S. pork.

'Un-cool"; COOL law is repealed by Congress

With bipartisan support, Congress passed the $1.15 trillion Omnibus Appropriations Bill on Friday, which funds much of the government through fiscal year 2016. Included in this bill was the long-disputed country of origin labeling (COOL) law for beef and pork which was repealed.

Repeal of the law as it applies to U.S. labels for beef and pork has been a growing topic in livestock circles for several years, coming to a head this month when the World Trade Organization sanctioned $1 billion in retaliatory tariffs on U.S. exports by Canada and Mexico.

Colin Woodall, National Cattlemen’s Beef Association (NCBA) vice president of government affairs, said COOL had noble beginnings with the idea that consumers would pay more for products labeled as products of the U.S. But unfortunately, that hasn’t been the case. Instead COOL has plagued the beef industry with significant costs and caused problems on Capitol Hill and with trading partners, he said.

The long-running dispute between the U.S. and its two largest trading partners resulted in four WTO rulings against the U.S. — found to be in violation of trade obligations by COOL’s discrimination against cattle and hogs imported from Canada and cattle from Mexico.

NCBA calls the COOL repeal a “significant victory for America’s cattle producers.”

“COOL has plagued our industry for many years now, costing us millions and driving us to the brink of retaliation from two of our largest trading partners,” NCBA President Philip Ellis said in a press release following passage of the spending bill. "Cattle producers have had to bear the cost of this failed program for far too long.”

Pork producers also welcome the repeal.

America’s pork producers are grateful that lawmakers recognized the economic harm producers faced from retaliation, National Pork Producers Council President Ron Prestage said in a press release.

“I know tariffs on U.S. pork would have been devastating to me and other pork producers,” he said.

Pork producers are currently losing money on each hog marketed, and those losses would have been exacerbated significantly under retaliation from Canada and Mexico, NPPC contends.

Nebraskan, Alan Tiemann Elected Chairman of U.S. Grains Council

Nebraska Corn Board member Alan Tiemann, a farmer from Seward, Nebraska, was elected chairman of the U.S. Grains Council (USGC) at the organization’s 55^th annual board of delegates meeting in Montreal, Canada. Tiemann served as USGC vice-chairman over the previous year.

“I have enjoyed addressing issues and helping open markets for the Grains Council over the past few years and look forward to continuing those efforts on behalf of our industry,” said Tiemann.

In his first speech to USGC delegates as chairman, Tiemann said, “Markets don’t just happen, we have to work to make them happen. The U.S. Grains Council has been successfully doing that for more than 55 years and has developed a level of excellence in its work that I want to focus on this year.”

“Although most corn grown in Nebraska is used right here in our state for livestock and ethanol, we still have a lot at stake when it comes to exports,” said Kelly Brunkhorst, executive director of the Nebraska Corn Board. “As the old saying goes, the last bushel of corn sets the price. The work that the USGC completes around the world is very valuable to Nebraska’s corn and ethanol producers.”

The Nebraska Corn Board believes strongly in USGC’s mission and has supported the organization with corn checkoff dollars since 1979. USGC strives to develop export markets around the world and has offices in more than 50 countries. With 95% of the world’s population outside of the U. S. and that population projected to grow to 9 billion by 2050, USGC is working hard to teach producers around the world how to use feed grains effectively and manage their operations efficiently.

“That is why our theme this year is Excellence in Exports. I have found the Council displays excellence in its membership, its global staff team, the relationships it fosters, the collaboration it has with its partners and its dedication to export markets. All these areas have been key in making the Council the successful organization it is today,” added Tiemann.

Tiemann farms near Seward and has spent more than 35 years in production agriculture. He serves as the at-large director and past chairman for the Nebraska Corn Board. Tiemann has been a delegate from the Nebraska Corn Board to the USGC since 2005. Prior to that, Tiemann served as a delegate to USGC from the Nebraska Grain Sorghum Board for a number of years.

International Internship in Panama

By Greg Sullivan, USGC International Intern, Panama City, Panama.

Hola from Panamá! My name is Greg Sullivan and I am currently finishing up a Masters degree in Business Administration with a specialization in Agribusiness at the University of Nebraska-Lincoln. In order to further my educational pursuits and capitalize on previous learning I found it pertinent to seek out an opportunity abroad in order to gain a better understanding of the global nature and reach of American agriculture. Fortunately, the Nebraska Corn Board has assisted me in this effort by selecting me to represent you and the rest of the Nebraska corn producers at the U.S. Grains Council’s regional headquarters here in Panamá City.

So far the work has consisted of getting up to speed on trends in regional markets and educating myself on the USGC strategies for the remainder of the 2015 marketing year. Nebraska producers should be delighted to hear that there is a strong drive to increase DDGS (among other grains/feed ingredients) usage in the region by educating marketers and business on the cost-effectiveness of their usage in feed rations, the quality of the ingredient, and the efficiency of the supply chain from the American producer to the regional consumer. These efforts will ultimately culminate in a USGC sponsored regional buyers conference to be held in Medellín, Colombia this July.

Outside of the office, adapting to life in Panamá has been relatively smooth and easy going. In fact, up to this point I can’t think of much that I don’t like about the country.  The language barrier is certainly an obstacle that needs to be overcome, but the occasional Spanish lesson and daily interaction with strangers should help knock it down fairly quickly. Most of the populace is bilingual to some extent in part due to the reliance of the economy on tourism and trade. The extent of that dual dependence helped create a Panamanian culture that is certainly an anomaly in the Latin American world. With a heavy concentration of businesses relating to international trade and the use/expansion of the Canal (a walkthrough of the expansion is pictured above) the country has become somewhat of a cultural melting pot. The Latin American culture is certainly prevalent, but it is not as overwhelming as it is in other Central and South American countries. This melting pot culture was summated perfectly by a recent volunteer opportunity in which I partook at a well-known local food establishment – Quesos Chela (which was recently featured on the Travel Channel’s Bizarre Foods). The event (picture below) was organized to promote the arts and highlight child labor as an irresponsible business and humanitarian practice. And while the primary beneficiaries were indigenous Panamanian children, the volunteers hailed from Venezuelan, Colombian, Panamanian, Chinese-Panamanian, and American backgrounds. It was a perfect microcosm of my experience so far, a genuine experience that involved individuals from multiple backgrounds working together towards a common cause.

It has barely been two weeks, but the time here has flown by and has been nothing short of memorable. I can only imagine what the next few months have in store.

Positive Cattle on Feed and Beef Exports worth celebrating

May is a time for celebration. This time of year finds many of us attending graduations, weddings and BBQs – where great-tasting Nebraska corn-fed beef may be featured. May is also Beef Month and there is a lot of exciting beef news important to us right now.

Photo credit: AgView.net

Big Beef

Recently, the Cattle on Feed Report came out showing that the number of cattle on feed in Nebraska was up 2 percent from last year. Nebraska feedlots with capacities of 1,000 or more head, contained 2.53 million cattle on feed on April 1, according to the USDA’s National Agricultural Statistics Service. Placements during March totaled 440,000 head, up 7 percent from 2014. This is the largest number of placements for March since the data series began in 1994. Fed cattle marketings for the month of March totaled 395,000 head, unchanged from last year. Other disappearance during March totaled 15,000 head, unchanged from last year.

On a national level, cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.8 million head on April 1, 2015. The inventory was slightly above April 1, 2014. The inventory included 7.46 million steers and steer calves, up 5 percent from the previous year. This group accounted for 69 percent of the total inventory. Heifers and heifer calves accounted for 3.34 million head, down 10 percent from 2014.

All of these positive increases in cattle number are positive signs of a strong beef and ag economy in Nebraska and in the U.S.

Export Momentum

But we also know that domestic consumption of beef is not what is growing, but exports of our high-quality beef is showing positive momentum. According to the U.S. Meat Export Federation (USMEF), an important cooperator of the Nebraska Corn Board, exports of U.S. beef (and pork) gained momentum in March after starting the year slowly.

March beef exports totaled 86,774 mt, down 7 percent from a year ago but a 5 percent increase over February. Export value was $527.3 million, up 2 percent year-over-year but down slightly from February. The March results reflect some degree of relief from the West Coast port congestion that plagued red meat exports in January and February Beef exports add well beyond $300 to the value of each head of cattle annually, but without the USMEF and their excellent staff all over the world working on behalf of farmers and ranchers to build demand for U.S. beef, this figured wouldn’t be nearly so positive.

Let’s continue to celebrate beef this month, and continue on through the summer. Summer is the perfect time to BBQ, so now is as good a time as ever to enjoy some Nebraska corn-fed beef. For recipes, visit the Nebraska Beef Council’s Kitchen or www.beefitswhatsfordinner.com/recipes.

Where is the corn going?

Yesterday, the WASDE (World Agricultural Supply & Demand Estimates) report came out and reported that U.S. feed grain ending stocks for 2014/15 are projected lower with reductions for corn. Corn use in ethanol production is projected 50 million bushels lower, yet the reduction in corn use for ethanol is offset by a 50-million-bushel increase in projected feed and residual use. Thus, expected total domestic disappearance is unchanged. Corn exports are projected 50 million bushels higher based on commitments to date and higher projected global demand. Projected ending stocks are lowered 50 million bushels. The season-average farm price for corn is projected at $3.50 to $3.90 per bushel, up 5 cents at the midpoint.

So after learning a little more about the current corn market situation, what markets do we see Nebraska corn going to?

Biobased Products.

With the help of research supported by corn checkoff dollars, corn-based materials like bioplastics and fabrics are a reality today. In fact, they are turning up in more and more places – compostable tableware, food containers, drink cups, gift cards, snack chip bags, bedding, carpet, shirts and more. All of these products are made from renewable corn and directly replace products made from petroleum.

NatureWorks LLC, based in Blair, Nebraska, is one of the companies that makes raw materials for all these products. Others include Mirel Bioplastics (owned by ADM and Metabolix) and DuPont Tate & Lyle BioProducts.

Biofuels.

Over the last three decades, ethanol made from corn has become an important fuel in Nebraska and across the country. Biofuels like corn-based ethanol directly replace petroleum-based fuels – and they’re renewable. Ethanol is better for the environment, helps keep fuel dollars here at home and it supports rural communities because that’s where most ethanol is produced.

Nebraska ethanol plants have a capacity of more than 2.0 billion gallons – making Nebraska the second-largest ethanol producing state in the country.  They use about 700 million bushels of corn annually – and directly provide and support thousands of jobs. Since ethanol is made only from the starch in a kernel of corn, these corn ethanol plants also produce more than 6 million tons of distillers grains, a nutritious livestock feed from the remaining parts of the kernel, including protein and fat.

 

Co-Products.

Corn is a very versatile grain – and when processed in ethanol plants, “wet” mills or “dry” mills, its components can be made into many kinds of feed ingredients for livestock, with the corn and livestock industry calls “co-products.”

When ethanol for fuel is made, only the starch portion of the kernel is used. Other co-products include distillers grains, feed-grade corn oil, corn gluten meal, corn gluten feed, corn oil and corn germ meal.

 

Corn Exports.

Corn exports out of Nebraska are divided into two categories: foreign and domestic. “Foreign exports” involve corn sales to countries around the world. “Domestic exports” includes any corn that is shipped from Nebraska to another state in the U.S., with California being the largest market for Nebraska corn, taking about 145 million bushels of Nebraska corn mostly for livestock and poultry last year. Foreign sales make up about 6 percent of corn usage, with Mexico (via rail) being a top market.

Livestock.

Livestock is one of the corn grower’s most important customers, consuming more than 41 percent of all U.S. corn, including the supply of distillers grains, which are produced by corn ethanol plants.

In Nebraska, livestock production is the engine that powers state’s economy. It is a more than $7.5 billion industry that is fundamental to the well-being of Nebraska – and contributes in some way to the financial health of every Nebraskan.

About 16 percent of the Nebraska’s corn crop is fed to livestock within Nebraska, with the bulk of that (more than 70 percent) going to beef cattle. See complete breakdown.

In total, though, about 40 percent of the corn grown in Nebraska is fed to livestock somewhere in the United States or around the world.

Value-based marketing for feeder cattle...what's corn's role?

"Next time you drive by a corn farm, salute the corn farmer!"

I heard this saying from Tom Brink of Top Dollar Angus recently when I attended a symposium for cattlemen that talked about the cattle markets and what the key drivers for 2015 and beyond look like.  2014 was obviously a banner year for cattlemen with unprecedented prices and all segments of the cattle market remaining strong.

 Brink gave four key drivers for 2015 & beyond:

• Corn
• Continued tight cattle numbers
• Relatively strong beef demand
• Larger competing meat supplies

Corn. We've seen an obvious downturn in corn prices the past year because of large supplies. Cattle feeders are taking advantage of this and feeding Nebraska high-quality corn. This might sound like a disadvantage for corn producers - while some are producing at the cost of production - but without corn, we would not have the markets, quality and prices for cattle and beef, said Brink.

Continued tight cattle numbers. The U.S. cowherd is growing. But slowly, as we've recently seen from the U.S. cattle inventory report. In Nebraska, total cows and calves are up 1% from last year to 6.3 million head. But that doesn't grow overnight. Producers are trying to keep back more replacement heifers, but the cattle prices being high are tempting them to sell.

Relatively strong beef demand. Thanks to the U.S. Meat Export Federation, and support from state checkoffs like the Nebraska Corn Board, international beef demand is soaring. Beef demand continues to rise, especially has more countries, like India and China, have a rising middle class. Domestically, beef demand isn't as high with strong competition from poultry and pork. But the beef checkoff continues to promote beef as a healthy protein.

Larger competing meat supplies.  While cattle numbers are growing slowly, pork output this past year increased 5.4% and poultry increased 3.9%. This drives prices for competing meats down.

What are the results of these key drivers? More opportunities for cow-calf producers. Which will hopefully equal expansion, more head of feeders to consume more high-quality Nebraska corn!

Major Markets for US Ethanol Exports

Kim Clark, director of biofuels development for the Nebraska Corn Board, submits this post from the recent U.S. Grains Council meeting in Costa Rica:

Recently I attended my first U.S. Grains Council (USGC) meeting as a member of an action team.  Honestly, this was only my second USGC meeting that I have attended since being on staff with the Nebraska Corn Board and I was a bit nervous not knowing what to expect.

The first meeting I attended was in July in Omaha, Nebraska where they announced they would be forming an Ethanol Action Team to review our current ethanol export markets and look at areas to expand ethanol exports.  I was very interested right away in serving on the action team and a couple months later was appointed to serve on the USGC Ethanol Action Team. 

Our first in-person meeting was at this USGC meeting in Costa Rica. The A-team is composed of 22 ethanol plants, corn staff and executives, and ethanol financial groups.  As a first time A-team member on any action team and the first time meeting as an Ethanol Action Team, the agenda was all the information I was armed with.

Let me back up a bit.  Prior to our first in-person meeting, there had been a lot of work done by a steering committee comprised of Renewable Fuels Association, Growth Energy, USGC, and United States Department of Agriculture Foreign Agriculture Services evaluating foreign markets to expand US ethanol exports. This steering committee has been visiting with key officials in select foreign markets and learning about mandates, hurdles for ethanol imports into those markets, and environmental issues related to low fuel quality for the past year. The USGC Ethanol Action Team was formed to review these evaluations and other potential foreign markets with the goal to expand US ethanol exports worldwide.

We closed a large gap from where the USGC ethanol A-team started discussions in Costa Rica to where we wrapped up our discussions.  In the end, we evaluated key foreign markets for ethanol imports using the following criteria:

• Current ethanol imports
• Potential ethanol imports
• Key changes needed to increase ethanol imports
• The strategy of the US Grains Council
• Potential for success
• Priority ranking

After a couple hours of evaluating each potential foreign market, the Ethanol A-team voted these countries as the major markets for US ethanol imports.  The highest priority is Canada, followed by Japan, Mexico, Philippines, European Union, Colombia, and China.  These recommendations will then be sent to the steering committee. 

There is some work that needs to be done to expand US ethanol export markets, but with a unified effort between the USGC Ethanol Action Team and steering committee, we are sure to expand US ethanol exports.

Nebraska Farmers Examine Export Markets in South America

LINCOLN, NEBRASKA. – Corn Board member and district two representative, John Greer from Edgar, Nebraska recently had the unique opportunity to experience a global market in South America from both the eyes of a customer and competitor. 

Greer was a member of the U.S. Grains Council’s (USGC) Grain Export Mission (GEM) that travelled to South America to observe local conditions, learn about trade opportunities and constraints and also meet with foreign customers eager for insight into U.S. production and export systems.   Greer and his group visited Colombia and Brazil while another GEM group visited Argentina and Mexico.  

“Traveling to South America was an exceptional opportunity to see the global market place at work”, said Greer. “After spending some time with buyers and end-users in Colombia, we were pleased to hear that the U.S.-Colombia free trade agreement has created significant market opportunities for U.S. corn and corn co-products.” 

Colombia is the second largest corn importer in the Latin American region and a country in which the United States traditionally captured more than 80 percent of the market, though there had been erosion in U.S. market share due to unfavorable tariff treatment.

This year, Colombian buyers returned to purchasing U.S. corn, driven by price and advantages from the implementation of the free trade agreement.  In fact, the country exceeded its tariff rate quota (TRQ) in June but still continued to purchase U.S. corn.

Greer’s team also visited Brazil, a critical competitor for U.S agricultural exports but a market that faces many challenges with infrastructure. Understanding the current reality and the future prospects of Brazil’s agricultural production is vital for U.S. farmers as they continue to export their commodities into the global marketplace.

“Colombia and Brazil are emerging economies that have remarkable global potential,” said Greer. “As they continue to work to overcome their security and infrastructure problems, I predict their grain and livestock industries will develop into even greater market prospects for American exports.”

At the completion of the mission, the two GEM groups met with USGC leadership and staff in Panama to debrief about their experience. Alan Tiemann, farmer from Seward, NE and at-large director on the NCB and vice chairman of the USGC, led many discussions with the GEM participants during their time in Panama. The participants concluded their mission with a tour of the Panama Canal, which gave them an opportunity to see first-hand the progress of the Panama Canal’s expansion project.

“The purpose of the GEM is for participants to gain a clearer understanding of the challenges, opportunities and competition we face in the international marketplace, said Tiemann. “The opportunity for American producers to personally communicate and establish relationships with these key end-users and buyers is an essential piece to our global success. With 95 percent of the world’s population living outside our borders, global awareness and connections are increasingly vital for everyone involved in agriculture.”

John Greer and Alan Tiemann group photo: John Greer, (first on left) and Alan Tiemann (second from the right) with members of the USGC GEM to South America.

95 reasons to support U.S. grain & red meat exports

95% of the world’s consumers live outside of the U.S.

If that isn’t enough reason to support exports of U.S. products to other countries all over the world, I don’t know what is. Now, with low commodity grain prices this year and expected into next year, our best resources are spent right now supporting exports and international trade, which could lead to fast growing markets and more demand.

The world markets offer momentous growth opportunities for U.S. agriculture. The Nebraska Corn Board and other grain checkoffs in our state and across the U.S. work with the U.S. Grains Council to develop export markets for our American farmers and agribusinesses. With the most modern, innovative and productive agricultural system in the world, the U.S. enjoys a longstanding and significant comparative advantage in agricultural trade.

We also know that corn is value-added when first fed to livestock, then exported as red meat. Another reason the Nebraska Corn Board (and other commodity checkoffs – grains and livestock together along with industry support) supports the U.S. Meat Export Federation. USMEF opens up export markets for U.S. read meat – beef, pork and lamb – and leverages checkoff dollars with federal dollars to influence more markets and prevail on more of the 95% consuming U.S. meat.

Beef exports in October were up 2% from a year ago with variety meat exports increasing 14% in volume. Although pork exports were down 2% in volume they still achieved a 5% increase in value. These results were also bolstered by strong variety meat exports, which were up 24% in volume.

The top export customers for U.S. corn (for Sept-Oct ’14) were Mexico, Japan, Colombia, South Korea and Peru. By establishing good relationship and continuing to produce high quality corn, the U.S. can grow these markets and develop new ones like Egypt and others in the Middle East who see the value of U.S. corn for feeding their livestock.

So the next time someone asks you why we don't keep all of our food here for Americans to eat, tell them there are 95 reasons.

View other Nebraska Corn Kernel blog posts about why we promote exports: 

• Podcast: 2014 Corn Crop & Challenges Ahead
• Make sure the corn you grow has a place to go
• U.S. Agriculture Leaders Gather for USMEF Market Expo
• U.S. Grains Council develops exports of corn

Podcast: 2014 Corn Crop & Challenges Ahead

 In this podcast, Kelly Brunkhorst, executive director for the Nebraska Corn Board, shares information about the 2014 corn crop and the challenges ahead. This year's American corn crop will be the largest on record—with a projected 14.4 billion bushels. Growing more corn means we need to grow demand. The good news is that we have a number of markets for our corn—both domestically and abroad—in exports, livestock and ethanol production that are key to the success and profitability of Nebraska corn farmers. Nevertheless, threats to these industries, especially those to renewable fuels and foreign trade, could pose many challenges for corn farmers moving forward.

Now, click here to listen to the podcast.

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Make sure the corn you grow has a place to go

The Nebraska Corn Board wants farmers to make sure that the corn they grow has a place to go.  In an effort to ensure the U.S. corn industry maintains important international trade markets, the Nebraska Corn Board is urging growers to follow stewardship protocols for U.S.-grown biotech hybrids yet to be approved in major export markets away from export channels.

Cutting-edge corn hybrids, such as Agrisure Duracade, a corn rootworm (CRW) control technology that has been approved in the U.S., are becoming more available options for farmers. While being approved in the U.S. and Japan, Agrisure Duracade does not have a synchronized regulatory approval in China –a growing market for U.S. corn - and having it enter the Chinese market would be detrimental.

At this point, China has closed its market to both corn and distillers grains from the United States due to traits that have not been approved by their government.  The lack of approval affects both Nebraska corn farmers and Nebraska ethanol plants.

“Farmers are in the most global business of anyone in our economy today. One out of every three farm acres planted in this country goes for exports,” said Tom Sleight, president and CEO of U.S. Grains Council. “It’s critical to our trading relationships that all corn producers heading in to harvest be mindful of the varieties they are growing and closely follow the stewardship agreements they have committed to.”

The Nebraska Corn Board is encouraging farmers to take three important steps this harvest season when it comes to marketing Agrisure Duracade:

1. Re-read the stewardship agreement you signed to understand your obligations.
2. Visit with your elevator or ethanol plant about their harvest policies.
3. If your first purchaser has channeling requirements, follow them.  Deliver Agrisure Duracade to the right place—and make sure the corn you grow has a place to go.

There are more than 800 outlets accepting Agrisure Duracade. Elevators across Nebraska have been calling farmers to follow up on what they are growing and locations at which they are accepting this hybrid.

“Biotechnology has been a great thing for corn farmers—and will continue to be, so long as everyone in the chain from farmers to elevators follow the rules and do our part to be responsible stewards,” said Tim Scheer, farmer from St. Paul and chairman of the Nebraska Corn Board. “As we harvest this year's crop, know what you need to do to deliver Agrisure Duracade to the right place—and keep biotechnology working for all of us.”

U.S. Grains meets in Nebraska this week; still covering issues with China, DDGS

This week, the U.S. Grains Council members are meeting for the 54th Annual Board of Delegates meeting in Omaha. The Council is a cooperative partner of the Nebraska Corn Board.

In Omaha, attendees will focus on emerging opportunities, competitive challenges, and the Council's work to increase U.S. market share. The Advisory Teams will review new developments that affect the Council's strategies and priorities around the world. Top speakers and insight from the Council's global program staff will keep you ahead of the curve on factors affecting export growth. Last but not least, the Council is a member-led organization, and this is the Council's annual business meeting, at which delegates will elect officers and board members, and adopt the budget for FY 2015.

But just because Council staff and Board are in Omaha for meetings, they are still working around the globe on opening up market barriers. One of those issues is China’s approval of new biotech certification requirements for distiller’s grains with solubles (DDGS) by the Chinese import inspection authority.

The new requirements effectively call for a certificate from the point of origin - in the case of U.S. shipments, from the U.S. Department of Agriculture (USDA) - guaranteeing that the shipment is free of the biotech trait.

The mandate was made effective immediately, causing serious disruptions with existing DDGS trade and making future DDGS trade hard to achieve.

“China is asking for something that cannot be done. This certificate they’re asking for does not exist,” said Tom Sleight, USGC’s president and CEO.

“It’s time for China to look at and approve this trait,” Sleight said. “It’s been approved for commercialization in the United States since 2010, and it’s been approved by all importing countries, including the European Union, for quite some time. We think that the lack of approval of MIR 162 is becoming an undue impediment on trade.”

Yesterday, Chairman Schaaf sent a letter to Secretary of Agriculture Vilsack, urging efforts of the U.S. government to intervene with China to halt this current regulatory sabotage of the DDGS trade with China. Approval has been pending in China for more than four years.

This matter is urgent for U.S. corn producers, DDGS exporters, and the ethanol industry as a whole, which is threatened with severe harm due to China’s action. Until this action, China was importing DDGS at a rate of 20,000 MT per day, which is the equivalent of 750 standard containers. The value of DDGS exports to China exceeded $1.6 billion in 2013 and this year was running well ahead of that pace prior to the current interruption.

The Council is doing all they can to work through this issue with China, and others around the world, to provide more markets for Nebraska and U.S. corn producers.

SWOT analysis on U.S. corn export markets

By Matt Perlinger, NCB Intern

I will be finishing out the remainder of my internship in the Nebraska Corn Board’s headquarters in Lincoln. The transition has been a great learning experience for me.

I have been working for the last few weeks on developing a report about the strengths, weaknesses, opportunities, and threats (SWOT) for the export markets of U.S. corn and related products. It has been extremely interesting researching the many issues related to agricultural exports and future opportunities such as the Trans Atlantic Trade and Investment Partnership (TTIP) and Trans Pacific Partnership (TPP). It has also been interesting to learn about the threats to the future of agricultural exports, and the many ripple effects that seemingly unrelated events can have in a global market.

I look forward to presenting the report to the Nebraska Corn Board at the August meeting and advocating for the future of Nebraska’s agricultural exports by bringing important issues to light.

‘Now is the time to act’ for Nebraska’s livestock industry

Nebraska Aims to Expand Livestock Industry after “Golden Triangle” Study

A recent study conducted by the University of Nebraska-Lincoln showcases that Nebraska farmers and ranchers may not be operating to their full potential. Although agriculture is still the primary driver of the state’s economy, the study shows that there is room for growth.

The study, which was headed by Bruce Johnson, professor emeritus in UNL's Department of Agricultural Economics, and Eric Thompson, UNL economics professor, aimed to get a current baseline for the state’s agriculture economy as well as provide several scenarios for expansion. The study, titled “Nebraska Animal Agriculture: Economic Impacts of Cattle, Hog, Dairy, and Poultry Industry Changes,” was jointly funded by the Nebraska corn and soybean checkoffs.

Kelly Brunkhorst, transitioning executive director for the Nebraska Corn Board said the idea for this project stemmed from concerns about Nebraska’s livestock industry. “As we spoke with our counterparts in surrounding states, we realized that outside of our beef industry, we were not witnessing the expansion of livestock they were developing. We felt we need to detail the advantages that Nebraskans could be enjoying if they understood the economics.”

The study, nicknamed the “Golden Triangle Study,” highlights the fact that Nebraska is well positioned for growth due to the strong interactive nature of its crop, livestock and biofuels industries, which each make up points of the Golden Triangle.

Now is the time to act

The results of the report were highlighted with pungent potential, but clearly presented the reality that now is the time for Nebraska to act. However, expansion doesn’t rest solely on the shoulders of those in the agriculture industry. Livestock expansion in the state will depend heavily on community stakeholders at the local levels. The scenarios depicted in the report have the potential to affect jobs, earnings, communities and households, as well as an enhanced quality of life for all Nebraskans with the value-added economic activity.

The authors of the study note that this report analyzes livestock expansion scenarios, providing a set of economic performance measures to sub-state regions and county-level economies. These measures will allow economic considerations to be incorporated into stakeholders' decision-making processes. 

A need to capture more added-value in state

While nearby states have seen significant growth in livestock production in the last 10 years, Nebraska has not kept pace, particularly in the cases of hog and dairy production. One of the key insights of the study lies in the fact that Nebraska still exports a high percentage of its crops – more than one-third of its corn crop, more than 80 percent of its soybean crop, and more than one-half its distiller’s grains production. More value for these products would be captured if they flowed into in-state, value-added processing.

In light of these trends, Johnson's team analyzed several livestock-expansion scenarios that industry leaders consider quite possible, taking into account the economic multiplier effects that ripple through the state's economy from agriculture, especially in rural areas.

Expansion scenarios

The report envisions the following expansion scenarios and estimates both direct and indirect economic impacts.

• A 25 percent expansion of hog finishing volume in Nebraska; scattered across three regions of the state and 15 counties. About 270 on-farm units, each with a 2,400-head capacity and a twice-per-year turnover rate added.
• Total economic impact: 2,676 new jobs; $6.1 million in local tax revenue.
• More than a doubling of the state's current dairy herd numbers of 60,000, divided across three regions of the state and 18 counties. A total of 24 new dairy operations, each with a 2,500-head capacity and two new milk processing plants added.
• Total economic impact: 3,128 new jobs; nearly $6.2 million in local tax revenue.
• A 10 percent increase in fed cattle production in the state, with expansion distributed geographically in similar proportion to current patterns of production.
• Economic impact: 11,661 new jobs; $16 million in local tax revenue
• A tripling of poultry (egg-laying) production in the state.
• Economic impact: 1,640 new jobs; $9.8 million in local tax revenue.

The authors summarized the report by saying, "In closing, the economic challenges posed, as well as the associated economic opportunities afforded, are simply too weighty in Nebraska's economic future to ignore. It is time to act."

The full report can be found at here.