3 BIG THINGS TODAY, MARCH 23

CORN, SOYBEANS LOWER IN OVERNIGHT TRADING; FED RATE HIKE ODDS NOW AT 93%.

1. CORN, SOYBEAN LOWER AS IMPORTERS SEEN SHIFTING TO SOUTH AMERICA

Corn and soybeans were lower in overnight trading on concern that very large South American crops are beginning to take business from the U.S.

The Department of Agriculture last week raised its outlook for Brazilian corn production to 91.5 million metric tons from 86.5 million. It also increased its projection for soybean output in the country to 108 million tons from the previous month’s outlook of 104 million.

With such large crops in Brazil, it’s likely the U.S. will see a seasonal decline in export sales and shipments, analysts said.

Corn futures for May delivery fell 1¢ to $3.60 a bushel in overnight trading on the Chicago Board of Trade.

Soybeans declined 4¾¢ to $10.01¼ a bushel in Chicago. Soy meal lost $2.30 to $328.60 a short ton, and soy oil added 0.10¢ to 32.22¢ a pound.

Wheat futures rose a tick to $4.30¾ a bushel, and Kansas City wheat was unchanged at $4.42¾ a bushel.

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2. FED RATE HIKE SEEMINGLY A FOREGONE CONCLUSION WITH ODDS OF INCREASE AT 93%

It’s pretty much a foregone conclusion that the U.S. Federal Reserve will raise interest rates at a meeting this week with the CME Group’s Fed Watch Tool, putting the odds of a hike at 93% this morning, up from 89% yesterday.

The Fed is expected to increase its Federal Funds Rate to a target of 0.75% to 1%, the first increase in 2017, after it raised the rate in December 2016 and December 2015 after leaving it unchanged for seven years. Many analysts believe this will be the first of three rate hikes this year.

The government tends to increase rates when the economy is showing strength. Last week’s nonfarm payroll report showed companies added 235,000 jobs in February, topping expectations for about 200,000, and that the unemployment rate was little changed at 4.7%. Wages have increased about 2.8% in the past year, which is a good sign, the Bureau of Labor Statistics said.

Employment gains increased in construction, manufacturing, health care, and mining, all but ensuring the Federal Open Markets Committee would raise rates at its meeting, which runs for the next two days. Its decision will be announced tomorrow afternoon in Washington, D.C.

An increase in rates likely would have an impact on loans for large-ticket items such as farming equipment or land purchases, economists have said.

It also will have an impact on the prime rate, which is the base borrowing rate that banks extend to their customers. Credit card interest is based on the prime rate, with banks often referring to the rates and ‘prime rate plus’ and then adding a number to it to get the actual interest rate a borrower would pay.

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3. LARGE STORM HAMMERING NORTHEASTERN U.S.; SCHOOLS CLOSED, TRADING IMPACTED

A very large storm is hitting the northeastern U.S. this morning, closing schools in New York and Boston and affecting trading on Wall Street.

New York City is expected to get as much as 16 inches of snow with several inches already falling, according to the National Weather Service. Federal offices in Washington are expected to open three hours later than normal.

The storm is widespread, stretching from northern Ohio up through Maine into Nova Scotia in Canada. The entire northeastern U.S. will be affected.

Elsewhere, a freeze warning is in effect for a very large patch of land stretching east to west from extreme eastern Kansas through the Atlantic Coast in Georgia and north to south from northern Missouri almost to the Alabama Gulf Shores.

Temperatures are expected to fall into the mid-20s and lower teens this morning and overnight into Wednesday morning, the NWS said, which will harm uncovered winter wheat plants and peach trees.

WOMEN IN AG: AGRICULTURE TAKES CARE OF ITS OWN

Agriculture takes care of its own.

 

Fires have devastated parts of Texas, Colorado, Oklahoma, and Kansas. Thousands of livestock have been killed. Human lives have been lost, with at least four of those deaths a direct result of people trying to save livestock from the flames. Fences are destroyed, pastures are scorched, homes and barns have been reduced to ashes.

 

During and after the fires, my social media news feed has been filled with images of the destruction and loss. Stories about the people who lost their lives. Stories from farmers who found surviving livestock, only to have to put them down because the animals were too badly injured to survive. Stories of cows looking for their calves who perished. Stories of calves that are now orphans. Stories of the firefighters, many of them volunteers and some who are farmers, who fought the flames that also threatened their own homes. 

 

I didn’t see any of this on my local news. It wasn’t on the national news. The news spread from farmer to farmer, from community to community, from agriculture network to network. 

 

Agriculture takes care of its own.

 

It wasn’t long before my news feed was filled with photos of hay on the way to the devastated areas. Truckers are offering to haul hay or to move surviving livestock. People are opening their barns and pastures to house surviving animals. 4-H groups and veterinarians are housing and feeding orphaned calves.  Companies are offering free medicine to treat burned animals. Churches are putting together lists of people affected by the fire and their needs.   

 

One thread even focused on trucking laws so that those driving hay and other supplies to the areas hit would not be stopped and ticketed for their efforts.

 

Agriculture takes care of its own.

 

I didn’t grow up in agriculture. Four months after I started working as an agriculture Extension agent in 1999, Hurricane Floyd hit North Carolina. While I wasn’t in an area hit hard, I did have two cattle farmers with pastures bordering the river, and they were flooded. Days after the storm, donated hay was on the way to those farms.

 

Agriculture takes care of its own.

 

We see it again and again. Response to a blizzard, hurricane, tornado, or other natural disaster. Neighbors helping harvest the fields after a farmer’s death or so a farm family could mourn the loss of their child. Raising money to cover the funeral costs of young people who rode into the fire to try and save the lives of livestock. 

 

Agriculture takes care of its own. 

 

We are doing it without front-page coverage of this tragedy. Without being the lead item – or any item – on the evening news. Without a telethon with phones manned by celebrities. Without any aid from groups claiming to care about the welfare of animals. Without government assistance.

 

Agriculture takes cares of its own. 

GEMS4 conducts pilot test for tomato transportation

Nigerian farmers have new reasons to leap for joy as GEMS4 has embarked on a pilot test of using Returnable Plastic Crates (RPCs) for transporting tomatoes.

The pilot test which involves a train fully loaded with 585 Returnable Plastic Crates of tomatoes is being undertaken by ConnectRail services but at the instance of the GEMS4 DFID project. The train has left Kano state and is expected to arrive at Iddo train Lagos state by 5pm.

According to the Group Intervention Manager, Agri-business GEMS4 Project, Mr. Richard Ogundele, the project seeks to infuse Good Handling Practices (GHP) into the tomato value chain with a view to stemming the high incidence of losses and also to guarantee the income of farmers and marketers of tomato while generating employment.

“Notice greenish yellowish more that the red ones, that’s the application of colour code chart to ensure tomato is still in ripening process and can stand rigors of handling and journey to final market. At least they need about five to seven days to be fully ripe”, he said.

Ogundele expressed that the design of the crates will help retain the freshness of the produce, hence the retailer has more time to preserve the produce which will also increase the bargaining power of both the farmer and the retailer.

Speaking further, he noted that the adoption of this technology will provide jobs at collection centres for as people will be needed to sort the tomatoes upon harvest and pack into crates.

Also speaking with AgroNigeria, Mr. Kabir Lawal, who is supervising the transportation from the north, stated that formerly,  raffia baskets  which were woven  in such a way that limited aeration, were used.

“The baskets were covered with paper and stacked on one another sitting directly on the produce and this increases the risk of spoilage. However, the use of this plastic crates prevents squashing as the crates though placed on each other do not seat directly on the produce. They also allow for more ventilation and retain the fresh state of the produce” he explained.

Poisonous drinks: stakeholders reject NBC’s defence

Stakeholders in the agriculture and food industries, have berated the Nigerian Bottling Company for defending itself over the levels of benzoic and sunset additives, found in Fanta and Sprite.

A Lagos High Court had in a judgement held that excessive levels of benzoic acid and sunset additives were found in Fanta and Sprite. The implication of that was that the drinks were poisonous when consumed alongside Vitamin C.

The trial judge, Justice Adedayo Oyebanji, while awarding a cost of N2 million against the National Agency for Food and Drug Administration and Control (NAFDAC) had berated the agency for declaring, as fit for human consumption, products discovered by tests in the United Kingdom as turning poisonous when mixed with ascorbic acid (popularly known as Vitamin C).      

 The judge had further ordered  NAFDAC to compel the Nigerian Bottling Company (NBC) Plc to put a written warning on Fanta and Sprite bottles stating that both soft drinks are poisonous when consumed along with Vitamin C.

But in its reaction the NBC denied that the drinks were poisonous. The company in a statement said that “the UK standards limit benzoic acid in soft drinks to a maximum of 150 mg/kg. Both Fanta and Sprite have benzoic levels of 200 mg/kg which is lower than the Nigerian regulatory limit of 250 mg/kg when combined with ascorbic acid and 300 mg/kg without ascorbic acid and also lower than the 600 mg/kg international limit set by CODEX.

“Both benzoic acid and ascorbic acid (Vitamin C) are ingredients approved by international food safety regulators and used in many food and beverage products around the world.

The defence of NBC was however rejected by stakeholders who were contacted by AgroNigeria. 

A wellness Consultant and Technology Entrepreneur, Adedolamu Sobowale said, ”The last time I checked, neither Benzoic Acid nor Sunset Yellow were foods. These things are chemical dyes and additives presumably added just in the right quantities the body can tolerate without going into immediate convulsion or shutdown. But what’s the sense in it if a few drops of Gamaline 20 were let into even a tank of water. Would I willingly drink it under normal circumstances? The truth is every sip from those colored bottles increases our toxic load and leaves us worse off than we were”.

Another stakeholder, Odumusu Olajide who is a nutritionist said “Most of these chemicals have residual effect on the body after appreciable accumulations result in different kinds of diseases”.

In his own reaction, a stakeholder, Osita Okerie , stated, ” They are talking trash, why did the court ask them to put up a warning sign? They will always wriggle out of any case. This is the time we need to boycott their products. What health benefits do we even derive from drinking these carbonated sugar drinks? Obesity, heart related diseases, Cancer, Low sexual drive (no libido) etc.

The CEO, AgroNigeria, Richard-Mark Mbaram, while making his own reaction, said, “This has given me the confirmation I need, are we now more knowledgeable than the U.K? Please boycott those products if you want to save your life.”

FEPSAN SCALES UP FERTILISER PRODUCTION

Seven  fertiliser blending plants out of the 32 in the country have commenced production and distribution ahead of the 2017 rain-fed farming season under the Presidential Fertiliser Initiative (PFI).

Some of the blending plants which have already been supplied with raw materials including phosphate from Morocco and are blending include Fertiliser and Chemicals Ltd, Kaduna, producing 300,000 metric tonnes; Al-Yuma Fertilizer Company (300,000 metric tonnes) in Madobi-Kano; Kano Agricultural Supply Company, supplying 15 trailers daily and Golden Fertiliser based in Lagos.

Others blending plants have also received raw materials for blending activities. Funtua blending plant has received materials through the rail, the Fertiliser Producers and Suppliers Association of Nigeria (FEPSAN)’s President Thomas Etuh, has said.

The FEPSAN president said the seven active blending companies are under the 1st of 5 batches that would produce 1 million tons of fertiliser under the Presidential Fertiliser Initiative.

Mr Etuh, who stressed that most of the plants have been dominant for over a decade, said they have been revived to participate in the programme, adding that more plants are underway.

“Others are under maintenance and should be joining before the end of April,” he said.

Speaking on the funding for the project, he stated that “N2 billion worth of raw materials with 10% cash is what we give them and then we pay for the overhead and a little profit. It’s like contract blending, they are blending for FEPSAN and then we pay.”

He noted that “the project is a Public Private Partnership (PPP) in which they borrowed N20 billion from the Sovereign Wealth Fund which is then recycled into the next batch.”

But the president, Agro Dealers Association of Nigeria, Alhaji Kabiru Umar Fara, has expressed concern over the supply of urea – a component for blending the NPK fertiliser, and called on the federal government to lift the ban on the import of the input.

The agro-dealers’ president, who spoke with journalists during the Presidential Fertiliser Initiative (PFI) delegation and Fertiliser Producers and Suppliers Association of Nigeria (FEPSAN) monitoring teams’ visit to the Al-YUMA Fertiliser and Chemical Company in Kano, maintained that “while Urea is needed by blending plants to produce NPK, they cannot import it.”

Under the scheme, states that have already indicated interest to key into the programme are encouraged to pick fertiliser from the blending plants and that no individual, institution or organisation under any circumstance could sell above N5,500.

SOURCEDaily Trust

3 BIG THINGS TODAY, MARCH 22

SOYBEANS, CORN RISE OVERNIGHT; ALLENDALE SEES RECORD BEAN AREA, WHEAT ACRES DOWN.

1. SOYBEANS, CORN HIGHER ON BARGAIN HUNTING AFTER RECENT DECLINES

Soybeans and corn were higher in overnight trading as bargain hunters jump into the markets after several days of declines.

Soybeans yesterday fell for the seventh straight session to the lowest level since November, according to data from CME Group.

Corn rose yesterday after six straight declines, gaining back just over a penny. The price had fallen to the lowest in more than two months before rebounding.

Wheat futures rose overnight, finding support on extremely dry weather in much of the Southern Plains where the bulk of U.S. winter wheat is grown. Little or no rain has fallen in most of Kansas and the Oklahoma and Texas panhandles in the past 30 days, according to the National Weather Service.  

Soybean futures for May delivery rose 7½¢ to $10.06¾ a bushel overnight on the Chicago Board of Trade. Soy meal added $1.70 to $328.90 a short ton, and soy oil gained 0.38¢ to 32.68¢ a pound.

Corn added 2¼¢ to $3.64½ a bushel in Chicago.

Wheat futures rose 5¾¢ to $4.36¼ a bushel, and Kansas City wheat for May delivery gained 6½¢ to $4.49 a bushel.

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2. SOYBEAN SEEDING SEEN AT RECORD BY ALLENDALE, WHEAT AREA AT LOWEST IN 98 YEARS

Soybean seeding will rise to a record this year, while wheat acreage will be the smallest in 98 years, according to planting estimates from researcher Allendale Inc.

Soybean growers are expected to plant 88.825 million acres, which, if realized, would be the most ever and an increase of almost 5.4 million acres from the prior year, Allendale said in a report. The U.S. Department of Agriculture pegged soybean acreage at 88 million.

Production is seen at 4.141 billion bushels on 87.955 million harvested acres and yields of 47.08 bushels an acre.

Farmers are forecast to seed 90.018 million acres with corn this year, the seventh largest in recent history, according to the company’s report. That’s down almost 4 million from last year but mostly in line with the USDA’s projection of 90 million acres.

Output is pegged at 13.879 billion bushels on 82.529 million harvested acres on yields of 168.17 bushels an acre.

All wheat acres will drop by 4.2 million to 45.967 million this year, the lowest since 1919 and in line with the USDA forecast, Allendale said. Winter wheat area will fall 3.46 million acres to 32.677 million, durum planting will fall by 367,000 acres to 2.045 million, and spring wheat seeding will drop 360,000 acres to 11.245 million, according to the researcher.

All wheat production was estimated at 1.856 billion bushels on 39.237 million harvested acres on yields of 47.3 bushels an acre, Allendale said.

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3. STORM CONTINUES TO HAMMER NORTHEAST, FREEZE IN MISSOURI, SOUTH THREATENS PLANTS

The large storm in the northeast continues to move offshore, though several states are still seeing snow and strong winds, according to the National Weather Service.

A large patch of land that includes Pennsylvania and upstate New York north into Maine are still under a winter storm warning. Another 4 inches of snow may fall in the area, along with temperatures from 10˚F. to 20˚F., and winds gusting up to 40 mph are expected today, the NWS said.

A very large cold front is hitting much of the southeaster fourth of the U.S. Temperatures were expected to drop into the 20s in much of Missouri overnight, threatening plants including winter wheat.

A freeze warning is in effect for all or parts of at least a dozen states from northern Missouri east to the Atlantic Ocean and south to the Gulf of Mexico, encompassing the southeastern quarter of the country, according to the NWS.

AGELESS IRON: COCKSHUTT PLOW

Tavel to Yoder, Indiana to see a restored Cockshutt plow. Part of the Allen Adams collection. From Successful Farming show #1009, originally aired March 16, 2017.

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Lead Limited hosts export forum

In line with efforts to enhance farm produce exportation in Nigeria, Lead Unique Ventures Limited is organising the Organic Agricultural Produce Export Forum.

The event seeks to discuss new export opportunities and the attractive marketing in the organic agricultural sector aimed at enhancing in farmer’s earnings, as well as returns of investors and stakeholders in the sector.

Speaking at the event is a Consultant to United State Department of Agriculture (USDA) from United State and off-taker of Farm Produce to US, Mr. Micheal Griffin, who is also the Chief Executive Officer, Ashanti Produce Int’l Inc. Other speakers include the President, Organic Produce Practitioners of Nigeria, Director General of Nigeria Export Promotion Council, and other stakeholders in the industry.

The event scheduled for the 16th March, 2017 at the LCCI Conference, Ikeja, Lagos State also had in attendance, State Commissioners for Agriculture, Farmers Cooperative Society Representatives, Captains of Agricultural Industry, Investors and Exporters of Agro-Commodities.

FG slashes fertiliser price by half

President Muhammadu Buhari has authorised the payment of the outstanding N22bn that is meant for dealers of agricultural inputs, popularly known as agro-dealers,  to ensure the smooth  distribution of fertilisers at an approved rate of N5,500 for 50kg.

The National Chairman, Agro-dealers Association of Nigeria, Mr. Kabiru Fara, revealed this to  journalists in Abuja . He noted that Buhari had to approve the payment of the balance of N22bn out of the N66bn that was owed the agro-dealers by the previous government.

According to him, “The presidential initiative on fertiliser distribution is too important. We are happy with it because it will help the farmers get inputs at affordable prices and we are the ones who serve as a link between the farmer and the supplier”.

“The presidential initiative on fertiliser distribution is too important. We are happy with it because it will help the farmers get inputs at affordable prices and we are the ones who serve as a link between the farmer and the supplier” he said

“However, our bankers and suppliers are not happy in dealing with us for now, because we have their money hanging, as well as some of our money that are still not paid. This liability was not incurred by the present administration, but we are happy that they have agreed to pay. We understand that Mr. President has approved expressly that the liability be paid. ” he noted

“The total amount is about N62bn, a first payment of N20bn was made, another payment of N20bn followed, which was about a year ago, and the balance now is N22bn, which the President has approved that it be paid to agro-dealers expressly. We are grateful for that.”

Fara urged the government to ensure that fertilisers were sold at the approved price of N5,500 across the country through proper coordination of the exercise.

“Our recommendation is that the presidential initiative team should look at the issues of logistics and factor how fertilisers are to be delivered to centres where they are needed at N5,000 per bag. For they say agro-dealers’ money should be N500, but when you check the distances to transport the commodity, N500 won’t be enough in many instances”.

AgroNigeria recalls that the Minister of Agriculture and Rural Development, Chief Audu Ogbeh, earlier this year announced that the Federal Government was working out bring down the price of fertiliser by 50 per cent.

OGBEH VISITS SYMPLI, PLEDGES FG’S SUPPORT FOR LOCAL FOOD PRODUCERS

The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, has pledged the federal government’s support of local food producers to meet the growing challenge of feeding the nation.

Ogbeh gave the assurance in Lagos after his familiarisation visit to the production facilities of Sympli, pioneers of Individually Quick Frozen (IQF) fruits and vegetables in Nigeria.

The IQF technology helps to deliver farm-fresh products in ready-to-cook state through a process that involves peeling, chopping and fresh-freezing local foods and vegetables to retain all the flavour, texture and natural goodness of the foods. This not only reduces food preparation time by at least 40per cent, it also reduces post-harvest loss of foods and vegetables by about 40 per cent.

The minister noted that value addition in the agricultural sector, as exemplified by Sympli, would help to meet the challenge of feeding the people, which has been exacerbated by the country’s ‘exploding population.’

“I am very happy to see this type of innovative thinking in Nigeria; what Sympli is doing is revolutionary and this kind of value addition is exactly what we need at a time that government is working seriously at addressing the food issue in the country,” Ogbeh said.

While acknowledging inadequate financing, high interest rates, constant power outages and double taxation as some of several challenges that beset food producers in Nigeria, Ogbeh commended the long-term commitment of the PRIMLAKS Group, producers of the Sympli brand, to creating value in the food chain, saying: “We are very happy with what we have seen here and really congratulate PRIMLAKS Group for their many years of resilience and commitment to Nigeria’s growth.

We pledge our support as a government because what they are doing is what we want to see,” adding, “We shall intensify efforts at supporting local food producers and we are hoping that we can keep the interest rates low in the Bank of Agriculture, which we are restructuring.”

He lauded Sympli as an ‘innovative contribution’ to encourage the consumption of Nigerian foods at home and in the Diaspora and enjoined consumers to patronise the products.
“I like the taste of this, it’s still fresh; I’m sure all Nigerians will be excited about Sympli. The convenience is necessary as people get very busy. Keep working at it; we’ll give you our support and we’ll use the Diaspora Office to see how we can propagate this.”

While conducting the Agric Minister round the Sympli plant, the Chief Executive Officer, Mr. Ravi Hemnani, said: “Our goal is to make it easier than ever to cook family favourites and we are getting very positive responses from our customers, both here in Nigeria and in the UK.”

The Sympli line comprises a range of products, including yams, plantains, and chillies. Sympli is available at Shoprite, Spar, and The Fish Shop in Nigeria and at Tesco, ASDA and Morrison’s in the UK, along with independent stores in both countries.

SOURCEDaily Trust