Farm Income Forecast Lower

Cindy Zimmerman

USDAFarm sector profitability is forecast to decline for the second straight year, according to the latest report from USDA.

Net cash income is forecast at $100.3 billion, down about 21 percent from 2014 levels. Lower crop and livestock receipts are the main drivers of the change in 2015 net cash farm income from 2014, while cash production expenses are projected down by 1.1 percent. Net farm income is forecast to be $58.3 billion in 2015, down 36 percent from 2014’s estimate of $91.1 billion. The 2015 forecast for net farm income would be the lowest since 2006 (since 2002 in inflation-adjusted terms) and a drop of nearly 53 percent from the record high of $123.7 billion in 2013. As a measure of profitability, net cash farm income is generally less variable over time than the broader net farm income measure. One explanation is that it is possible to exercise greater control on the timing of cash receipts and expenses and thereby moderate large swings from year to year.

Agriculture Secretary Tom Vilsack took a positive outlook on the report. “Today’s farm income forecast is heartening for all Americans,” said Vilsack in a statement. “The past several years have seen unprecedented highs in farm income, and despite the fact that farm income is forecast to be down from record levels, today’s projections provide a snapshot of a rural America that continues to remain stable and resilient in the face of the worst animal disease outbreak in our nation’s history and while the western United States remains gripped by drought. Thanks to its ability to be competitive through thick and thin, American agriculture remains fundamentally sound, supporting and creating good-paying American jobs for millions.”

Crop receipts for 2015 are expected to decrease by $12.9 billion (6.2 percent) this year, led by a projected $7.1-billion decline in corn receipts. Soybean receipts are expected to be down $3.4 billion wheat down $1.6 billion compared to 2014. Livestock receipts are forecast to decrease by $19.4 billion (9.1 percent) in 2015 largely due to lower milk and hog prices.

Farming, USDA

Monsanto Drops Bid for Syngenta

Chuck Zimmerman

MonsantoWhile I heard talk of a “done deal” due to the newest offer from Monsanto to Syngenta in a group of ag media folks this week, Syngenta wasn’t okay with it according to this announcement from Monsanto this morning. Monsanto says it is no longer pursuing the deal.

While Monsanto Company (NYSE: MON) continues to believe a combination with Syngenta (VTX: SYNN) would have created tremendous value for shareowners of both companies and farmers, Syngenta has communicated that Monsanto’s enhanced proposal did not meet Syngenta’s financial expectations. Without a basis for constructive engagement from Syngenta, Monsanto will continue to focus on its growth opportunities built on its existing core business to deliver the next wave of transformational solutions for agriculture.

Monsanto confirmed it communicated a revised proposal on August 18 to Syngenta to combine the two companies. The enhanced proposal, subject to due diligence and other customary conditions, included a number of elements including the following:
Monsanto’s new proposal increased the cash component of the proposed transaction to CHF 245 per share. The proposal also maintained the same number of shares as in its April proposal, providing Syngenta shareowners with an approximate 30 percent ownership in the new company. Based on Monsanto’s share price and currency exchange rates at the time, the revised proposal translated to a value of CHF 470 per share.

Given the confidence the transaction would close and to provide additional protection from closing risk, the proposal increased the reverse break-up fee to $3 billion. The reverse break-up fee would have been payable by Monsanto if it would have been unable to obtain necessary global regulatory approvals.

Post Update: Click here to see response Syngenta comments on the Monsanto Announcement Read More

Agribusiness, Syngenta

What Does Sustainable Mean to the Consumer?

Jamie Johansen

USFRAThe 2015 NAMA Bootcamp was again held in Kansas City, MO. The event attracts those new to the world of agri-marketing or simply new to the agriculture community. Sustainability and the consumer was one breakout session which discussed how farmers and ranchers can communicate with food connectors and millennials about sustainability.

U.S. Farmers & Ranchers Alliance (USFRA) CEO, Randy Krotz, was charged with this task and I spoke with him about what exactly sustainable means and what we can do to convey that to consumers. USFRA is in the middle of some significant research to find a way for consumers to connect with producers in the language we use in agriculture.

“Farmers love to talk about how they farm. We have multi-generation farms and we automatically think, of course, they are sustainable. How can they not be? But that message doesn’t connect with consumers. We need to find the language that does.”

Initially they are finding water is at the forefront of consumer minds and long-term health risks and benefits. “They have picked that up with rhetoric around concerns with GMO’s or the use of antibiotics. We have to address that when we go and talk about agriculture being sustainable. We need to talk about why we are. We need to talk about the environment. We have to address water, air, soil and health. We know those things connect.”

Randy’s best advice to ag marketers is to truly look at your audience. Know who you are marketing to. “We thought for so long that safe, abundant and affordable when talking about our food supply was what we should be talking about. Come to find out, when we use those terms consumers don’t hear that at all.”

In my complete interview with Randy, learn more about millennials and millennial parents. Interview with Randy Krotz, USFRA

Find photos from the event here: 2015 NAMA Bootcamp Photos

Ag Groups, Audio, Food, NAMA, Sustainability, USFRA

Agri-Pulse Open Mic with Robert Johansson of USDA

John Davis

Agri-Pulse Open Mic this week features USDA Chief Economist Robert Johansson.

open-micIn this wide-ranging interview, you’ll hear his perspective on any relationship between the drop in equity markets and commodity prices, thoughts on China, Brazil and other countries lowering their currency values, and the implications of the EPA’s upcoming decision on RFS volume standards for US farm income.

Click here to listen to Agri-Pulse Open Mic with USDA Chief Economist Robert Johansson.

Agri-Pulse, Audio, International, USDA

John Deere Reveals 4 Track 9RX Tractor

Chuck Zimmerman

John Deere 9RXThis morning John Deere revealed a brand new high horsepower tractor – the 9RX. Here it is on the showroom floor of the John Deere Waterloo Tractor, Cab, Assembly Operations facility where it is being built. I recorded the program this morning which features moderator Michelle Rook, WNAX.

After years of design, field trials and customer feedback, John Deere introduces its first-ever 4-track tractor, adding to its extensive line of high horsepower 9R Series wheeled and 9RT Series 2-track tractors. The four new 9RX Tractor models – which range from 470 to 620 engine horsepower – feature a large, robust undercarriage and track system engineered to provide superior power, durability, and improved ride quality, especially when handling large implements in the field.

Jerry Griffith, John Deere product marketing manager, 6-9 Family Tractors, says the new 9RX Series Tractors offer customers three distinct advantages compared to similar 4-track models. “The 9RX has a superior undercarriage with a positive-drive track system that effectively delivers power to the ground; it features the outstanding comfort of our CommandView III cab with a new cab suspension system for improved ride quality; and it is designed with integrated performance features already available on our 9 Family of tractors.”

You can listen to the program here or watch it below: John Deere 9RX Reveal Program

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Lots of photos here: John Deere 2016 Product Reveal Photo Album

Agribusiness, John Deere, Tractor, Video

Many Opinions in GOP Race

Jamie Johansen

New Holland ZimmPollOur latest ZimmPoll asked the question, “Who’s your pick now for GOP candidate?”

When you have nearly 20 GOP candidates, you are bound to have many opinions. Our latest ZimmPoll proves that, but one opinion was clear. Donald Trump took the majority of the votes. The rest were scattered. Candidates from both sides had the opportunity to speak at the Iowa State Fair’s Soapbox, but I believe it’s too early to form a strong opinion.

Here are the poll results:

  • Jeb Bush – 7%
  • Ben Carson – 10%
  • Chris Christie – 4%
  • Ted Cruz – 5%
  • Mark Everson – 0%
  • Carly Fiorina – 8%
  • Jim Gilmore – 2%
  • Lindsey Graham – 1%
  • Mike Huckabee – 5%
  • Bobby Jindal – 2%
  • John Kasich – 9%
  • George Pataki – 1%
  • Rand Paul – 0%
  • Rick Perry – 1%
  • Marco Rubio – 6%
  • Rick Santorum – 1%
  • Donald Trump – 30%
  • Scott Walker – 6%
  • Other – 2%

Our new ZimmPoll is now live and asks the question, How are farm equipment sales this year?

It’s Farm Progress Show time again where all the latest equipment and technology will be on display for farmers to think about buying. But with crop prices lower this year, the question is, will they? Whether you are a buyer, a seller or just an observer – let us know what you think.

ZimmPoll

Priority Issues for Missouri Policy Makers

Jamie Johansen

msf-15-72-editedMissouri State Fair’s legislator day brought policy makers together to talk about issues facing not only Missouri farmers and ranchers but about regulation that affects those involved with agriculture across the country. On that list was immigration. We have heard many of the front running political candidates give their opinions, but few have touched on it’s impact on agriculture.

Missouri Senator Roy Blunt believes we need to find answers for how to secure the border, how to determine the legitimate workforce needs of the country and decide what do you do with people who came or stayed illegally. “When the American people believe that the border is under operational control, as it should be, then I think we will be able to deal with these other issues more quickly.”

The Senator understands that having the workforce needs of the country met with a workforce available, needs to be a top priority. “I think for us ever to be able to deal with that effectively and in the longterm, the people have a reason to expect the government to secure it’s own borders and we need to figure out how to do that.”

Learn more about the Senator’s stance on other ag issues here: Interview with Senator Roy Blunt

msf-15-101-editedDuring the fair, Blunt also hosted a press conference where Missouri commodity groups spoke about their support for his re-election and his continued commitment to agriculture. Listen to the conference here:Senator Roy Blunt Press Conference

Congresswomen Vicky Hartzler sits on the House Ag Committee and also touched on the immigration issues. “The current system is broken and needs to be fixed. That is one area the judiciary committee has been working on is a bill to revise that system. It is needed. I support it and I hope we can get that done soon.”

Listen to my complete interview with the Congresswomen here: Interview with Congresswomen Vicky Hartzler

In my interviews with each, they also touched on the GMO labeling bill, Country of Origin Labeling, EPA’s Clean Water Rule and the Renewable Fuel Standard.

Ag Groups, Audio, politics

MO Farm Bureau Speaks Out Against Over Regulation

Jamie Johansen

msf-15-85-editedThe Missouri Farm Bureau has put together interactive maps to give a feel of how the Waters of the United States (WOTUS) rule that goes into effect this weekend will impact the state. Well over 95% of the state of Missouri will qualify as a water of the U.S. under this rule.

I spoke with Blake Hurst, president of the Missouri Farm Bureau before they held a press conference at last week’s Missouri State Fair to learn more about how the WOTUS final ruling and how others forms of over regulation will impact agriculture.

“The House has passed a bill that would stop WOTUS. It has not been voted on in the Senate. The most important thing to do right now is to get a hold of our senators and tell them to vote to stop the final rule on Water of the U.S. I think it can be done. It will be a big challenge. We need to send a strong message that the final rule is bad for agriculture and anyone who moves dirt.”

Blake said he is also very concerned about the new Clean Air ruling. He recently spoke with the head of Missouri’s Rural Electric Cooperative and they will soon have an estimate on how much it will increase electric bills. They are guessing as much as a 50% increase. “That is an example of regulation that affects people in their pocketbook and will affect them very soon. We need to be aware of what is happening to us and get active.”

Listen to my complete interview with Blake here: Interview with Blake Hurst, Missouri Farm Bureau

View and download photos from the event here: Missouri Farm Bureau WOTUS Press Conference Photos

Ag Groups, Audio, Environment, EPA, Water

BIVI Seminar Highlights FAD Preparedness

Cindy Zimmerman

bivi-swine-health-15-bectonPork industry preparedness for FAD was the first topic on the schedule at the Boehringer Ingelheim North Carolina swine seminar this year – and no, FAD does not mean the latest social trend.

“FADs are foreign animal diseases,” said Dr. Lisa Becton with the National Pork Board. “Those are diseases that currently don’t exist in the United States and diseases we don’t want to come here.”

Becton says being prepared is important for a number of reasons. “Trade is a big issue. We want to make sure that we don’t have trade disruption because if an FAD does get to the U.S., that’s the first thing that’s going to happen,” she said.

Preparedness involves several key elements. “Just people having a premises identification for their farm, doing disease surveillance, and working with a veterinarian if they see something unusual and report it early,” said Becton.

Learn more in this interview with Dr. Becton: Interview with Dr. Lisa Becton, National Pork Board

2015 BIVI Summer Swine Health Seminar Photos

Animal Health, Audio, Boehringer Ingelheim, Pork, Swine

Delapaz Joins Agri-Pulse

John Davis

delapaz1Agri-Pulse has a new editorial coordinator. The farm and rural policy news source says Jodi Delapaz is joining the operation.

“With such strong audience growth this year, we are pleased to have Jodi join us to continue to build reader and listener engagement,” said Editor Sara Wyant. “We expect her to play a crucial role as we continue to expand our coverage both inside and outside the Beltway.”

Delapaz most recently held the position of senior technical writer at South River Technologies Inc., a software development company located in Annapolis, Maryland. Delapaz has more than 25 years of experience in the communications industry. Her background includes technical writing and editing, marketing and customer service.

Delapaz earned her bachelor’s degree from the State University of New York with a double major in communications and theater in 1987. She resided in the Washington, D.C., metropolitan area for 25 years and recently relocated to the Lake of the Ozarks. She resides in Osage Beach, Missouri.

Agri-Pulse