“Mayers Resigns From Cotton Board Post”
Drayton Mayers, CEO of the Cotton Board, resigned his post somewhat abrubtly on Wednesday afternoon. Details are sketchy but according to a Cotton Board press release, Mayers “…tendered his resignation to me in a letter” said Larkin Martin, Chairman of the Cotton Board and a Alabama cotton farmer.
“I have made this decision because I have done all that I can to lead and manage the Board during the transition from my predecessor to today”, the press release quoted Mayers as saying. Further the release said “His intention is to resume his career in international trade and market development. The Board’s Executive Committee and I (Martin) have accepted Drayton’s decision. Drayton has agreed to remain available to the Cotton Board during this transition should we have questions for him related to ongoing Cotton Board projects.”
Martin was also quoted as saying “Going forward from today I will put together a search team comprised of Cotton Board Members to begin the search for a new CEO. In the interim, our current VP of Finance and Administration, Lisa Droke, as agreed to serve as acting CEO”. No further details are available at this time. Mayers became President/CEO of the Cotton Board in October of 2007 after a lengthy search for a replacement to William P. Crawford.
This will no doubt be a topic of conversation during the upcoming Cotton Board/Cotton Incorporated Joint Board Meeting on Tuesday, March 2 at The Peabody Hotel in Little Rock, Arkansas.
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“DDG Contract Announced”
CME Group has announced the launch of Distillers’ Dried Grain agricultural commodity futures contracts, scheduled to begin trading April 26. The electronically traded and physically delivered futures contracts will be used by livestock and ethanol producers, commercial corn interests and others to lock in the price of feed or to hedge their ethanol refining margin in combination with corn, natural gas and ethanol futures. DDGs are a byproduct of corn-produced ethanol and is used for animal feed, including livestock and dairy cows.
Tim Andriesen, CME Group Managing Director for Commodities, says – using the Distillers’ Dried Grain futures, along with our corn, natural gas and ethanol contracts, will allow real margin management for participants in the fast-growing ethanol sector, once again highlighting the synergies of the CME Group product suite.
Each contract is equivalent to 100 short tons of Distillers’ Dried Grains. Deliverable grades must include a minimum of 26 percent protein and 8 percent fat as well a maximum of 12 percent fiber content and 11.5 percent moisture content.
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“USDA Proposes Changes in Crop Insurance Program”
Changes have been proposed that will improve producer access to crop insurance. USDA’s Risk Management Agency has released a second draft of a proposed new Standard Reinsurance Agreement, which establishes the terms, roles, and responsibilities for both USDA and insurance companies that participate in the Federal Crop Insurance Program. The new draft includes a series of significant changes, including many discussed during negotiations between the RMA and the participating crop insurance companies.
Due to significant increases in commodity prices in recent years, annual insurance industry payments more than doubled from 1.8-billion dollars in 2006 to an estimated 3.8 billion in 2009. At the same time, the number of policies decreased. Ag Secretary Tom Vilsack says the proposal represents a significant step toward an agreement that will give us a stronger Federal crop insurance program that helps producers manage risk, reduces volatility for crop insurance companies and serve farmers in every region of the country.
RMA Administrator William Murphy says – as with the first draft of the SRA, the second draft provides companies with relatively stable Administrative and Operating subsidies per policy for seven major commodities and will facilitate insurance company planning.
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“YARA Purchasing Terra Industries”
Yara International ASA, the world’s largest fertilizer producer, says it has agreed to buy Terra Industries Incorporated for 4.1-billion dollars. Buying Sioux City, Iowa-based Terra will give Yara six North America plants manufacturing nitrogen-based fertilizer and the company will be able to take advantage of lower U.S. energy costs. Yare Chief Executive Officer Joergen Ole Haslestad says his company is – committed to the U.S. market, and this transaction presents an attractive opportunity for both companies to strengthen their positions in the United States.
Natural-gas, which is used to produce the nutrient for crops such as wheat and corn, has declined 60 percent over the past two years. Samir Bendriss, head of research at Pareto Securities ASA in Oslo says – it makes sense for them to secure more U.S. gas which may be structurally cheaper than European gas.
Yara is paying 12.8 times Terra’s net income, according to data compiled by Bloomberg. According to the medial multiple of 37 deals in the past 12 months, past acquisitions in the agricultural chemicals industry were done at 10-times net income.
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“ASA Wants Biodiesel Tax Extension in Jobs Bill”
The American Soybean Association wants the U.S. Senate to reinsert a retroactive extension of the biodiesel tax incentive in the first Jobs Bill it passes and it wants help from growers. ASA says such action would save the jobs of 23-thousand people working in the biodiesel industry. ASA First Vice President Alan Kemper points out – there is a direct correlation between the biodiesel tax incentive and creating jobs. If Senators really want a bill to save jobs for American workers, they need to put a retroactive extension of the Biodiesel Tax Incentive back in the first Jobs Bill they consider.
According to ASA, expiration of the biodiesel tax incentive on December 31, 2009, has essentially caused the production and use of biodiesel in the U.S. to cease and has placed the 23-thousand jobs that are currently supported by the domestic biodiesel industry in immediate jeopardy. Companies have already started laying-off employees, and this situation is certain to worsen the longer the tax incentive is allowed to lapse.
Kemper says, – put simply, we don’t understand the logic used to strip the biodiesel provisions out of the bill. The biodiesel tax incentive provisions would save and create thousands of green jobs and help all Americans move away from their dependence on imported petroleum. ASA encourages producers to ask their state’s Senators for their support.
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“Clean Water Decision Expected Next Week”
Can farmers be held liable for drift of pesticides and other chemicals that may find their way into waters and streams? That is a question the U.S. Supreme Court may address as it considers a request by the American Farm Bureau Federation, CropLife and the National Cotton Council to reconsider a lower court’s decision which resulted in the imposition of the Clean Water Act permitting requirements on the application of pesticides on, over and near water. Next week, the high court is expected to decide if it will rehear the case.
Tyler Wegmeyer, director of Congressional Relations for the American Farm Bureau Federation, says if the Court decides to re-open the case, it will be like – a grand slam home run. But he gives the Court only an outside chance of making an affirmative decision.
AFBF and its allies – according to Wegmeyer – are pinning their hopes on a reasonable application of the Sixth Circuit ruling by the Environmental Protection Agency – which was given two years to come up with a Clean Water Act permitting system for the estimated 5.6-million pesticide applications performed annually by approximately 365-thousand applicators. EPA is working with water regulators in 45 states to develop a draft permit that it hopes will be ready for public comment in April.
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“Beginning Farmer Rancher Program Re-Launched”
USDA’s National Institute of Food and Agriculture is making available more than 18-million dollars in grants to help train, educate and enhance the sustainability of the next generation of farmers through the Beginning Farmer and Rancher Development Program. The program is an education, training, technical assistance and outreach program designed to help U.S. farmers and ranchers -specifically those who have been farming or ranching for 10 years or less. NIFA will make grants available to organizations to design programs to help beginning farmers and ranchers. Proposals are due April 6.
Priority will be given to projects that are partnerships and collaborations led by or including nongovernmental and community-based organizations with expertise in new agricultural producer training and outreach. All applicants are required to provide funds or in-kind support from non-federal sources in an amount that is at least equal to twenty-five percent of the federal funds requested. This is the second year of the program.
Acceptable proposals will address mentoring, apprenticeships and internships; resources and referrals; assisting beginning farmers or ranchers in acquiring land from retiring farmers and ranchers, entrepreneurship and business training, among other program areas.
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“ARRA Review Continues”
USDA says the American Recovery and Reinvestment Act is working to cushion the greatest economic crisis since the Great Depression and lay a new foundation for economic growth. That’s the jist of the message USDA and other Federal government agencies are taking out to anyone across the nation who will listen. USDA officials say the department has announced the vast majority of its remaining 7.9-billion dollars to support more than 90-thousand grants, loans, and other job-creating projects.
According to the Obama Administration, grants have been awarded to expand the nation’s fleet of alternative fuel vehicles. The first of many awards have been made to bring broadband to communities where there is little or no access. Small Business Loans have totaled nearly 20-billion dollars.
Also, other grants have gone to State and Local Governments to support Medicaid, education and law enforcement.
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“Vilsack is Commodity Classic Keynote Speaker”
The 15th Annual Commodity Classic, set for March 4-6 in Anaheim, California will feature 45-hundred farmers, family members and industry representatives and Secretary of Agriculture Tom Vilsack, who is the keynote speaker for March 5th. National Corn Growers Association President Darrin Ihnen says – we have no doubt our growers will value the Secretary’s attendance and appreciate hearing his positions on future policies affecting our industry.
American Soybean Association President Rob Joslin says – with all the important farm and trade legislation being debated on Capitol Hill this year, the General Session audience can look forward to gaining some insight on the Secretary’s priorities for 2010.
Commodity Classic is the premier convention and trade show of the U.S. corn, soybean, wheat and sorghum industries. This year’s trade show will host over 800 booths showcasing the latest agricultural equipment, technology, products and services. In addition, participants will have numerous opportunities to take part in policy discussions, view demonstrations and attend learning sessions.
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“National Ground Water Awareness Week Planned”
National Ground Water Awareness Week is coming up March 7-13 and the American Farm Bureau Federation is urging Farm Bureau members to schedule an annual water well checkup. According to AFBF President Bob Stallman, Farm Bureau supports this special week because of the vital importance of ground water to farms and ranches for irrigation and because 96 percent of rural Americans depend on ground water for their water supply.
National Ground Water Awareness Week is sponsored annually by the National Ground Water Association. The organization is urging every household well owner to check his or her well cap to make sure it is in good condition to protect the water supply from contamination. Even if your well cap fits tightly on your well and your water tastes fine, NGWA says – the water well system should be given a checkup by a contractor every year. Having your well tested is the surest way to determine that the water is safe.
John Pitz, CPI and a member of NGWA’s national board of directors says – a damaged or unsecured well cap can allow the entry of bacteria or other contaminants into the well. It is one of the easiest things to check, and a well owner can do it. Still owners should always use a qualified water well systems contractor who knows applicable well construction codes. If the well cap is damaged or unsecured, the water well contractor may also need to test the water and disinfect the well.
