JULY
2014
TRIBUTARY
TRIBUTARY
A newsletter of Two Rivers Cooperative,
a farmer-owned cooperative committed to building
profitable relationships based on integrity and quality.
Worldwide acceptance of GMO grains
Tracy Gathman- General Manager
Currently, we are facing an agriculture crisis that is having a
ripple effect through our country’s economy. The U.S. has been
vigorously working on accomplishing worldwide acceptance of
GMO’s for many years now. However, China, one of the largest
U.S. export customers, is rejecting delivery of all U.S. cargoes of
corn with specific GMO traits. This has created waves through the
grain industry, greatly affecting pricing, acceptance and additional
testing at other destination markets.
Although it is not the first crisis of this nature, worldwide
approval of GMO’s has never been as important as it is today. In
the early nineties, the European Union (EU) refused shipments of
specific GMO’s. Today, we are faced with the challenge of feeding
a rapidly growing world population. We cannot produce enough
food, on the same amount of land, without GMO grains.
We are also seeing a slowdown in the approval process of
U.S. shipments at other grain destination countries. In the past, it
would take roughly 24 to 30 months to gain approval of new grain
technologies. Now, we are seeing an approval process that takes
almost 40 to 48 months. This has created challenges for the grain
industry and providers of these new biotechnologies to effectively
work together.
It seems that the issue in China is more geo-political than
scientific. The science has been approved, yet we have been
waiting nearly six months on the signature of China’s Agriculture
Minister, Han Changfu. We hope to see some progress in the
next 30 to 60 days. This would relieve the current situation in
China. However, I do think there are new traits that have yet to be
©2014 Two Rivers Cooperative
released that will also have to pass inspections and testing.
I am fortunate to have the opportunity to serve on the
Agribusiness Association of Iowa Board of Directors. Being part
of this Board allows me to gain a better understanding of where the
agriculture industry is going. Recently, we met with the four major
agricultural biotechnology companies in regards to these approval
issues. The conversation was interesting, challenging and the
viewpoints varied from company to company.
How do these world-wide issues affect us, at Two Rivers? For
starters, Cargill Eddyville only accepts products that are approved
in the United States, Japan, European Union and China. Therefore,
traits released to the market this season, specifically Syngenta’s
AgrisureDuracade™, are not eligible to be shipped to Cargill
Eddyville. This means that any corn with the Duracade™ trait in it
can only be sent to our feed mill.
We do not have access to all of the individuals who bought
product with the trait this past year. If you know you purchased
seed with this specific trait, we stress that you please contact
your Two Rivers agronomy or grain departments immediately.
Together, we will help you market this grain and work to keep it
out of the main grain stream, while protecting the overall value of
your Two Rivers products.
Unfortunately, no one saw this coming, but we do want to ensure
you that we have a market for this grain. The entire Two Rivers
team is here to help you work through this hurdle.
SUPPORT FROM THE CO-OP
Resources for show livestock are found at Two Rivers
Ryan Healy- Feed Specialist
Area county fairs
Marion County Fair - Knoxville
Southern Iowa Fair - Oskaloosa
Jasper County Fair - Colfax
Summer is a busy time for everyone,
but it can be even busier for our area
livestock producers, specifically those
that are active in with show livestock.
Two Rivers strongly believes in the youth
programs of 4-H and FFA. To show our
encouragement for participation in these
organizations, we are continuing our 4-H
and FFA Support Program for 2014. Any
dependent of a Two Rivers member, who
is actively involved in 4-H or FFA, is
able to fill out the Program application.
The application asks youth participants
about their project areas and what
they have gained or learned from their
involvement. Upon qualification, youth
are each awarded $50. We have enjoyed
seeing this Program utilized in the past
and look forward to this year’s applicants
as well. Youth are able to receive the
award each year, so be sure to pick up an
application at any Two Rivers location or
from me.
For those preparing animals for the
show ring, we have a supplement for you
to consider adding to your livestock’s
diet. High Octane Depth Charge, from
July 11-17
Purina, is an advanced nutritional
July 14-19 supplement to promote a full physical
July 18-24 appearance, even when placing animals
Corn 14-15
Soybeans 14-15
March Acreage Report
June Acreage Report
ALT
ALT
84.8
83.8
84.8
83.8
84.8
83.8
Planted
Harvested
91.6
84.2
91.6
84.2
91.6
84.2
46
45.0
44.0
Yield
168
172.0
170.0
Carryin
Production
Available
110
3855
3980
110
3771
3896
110
3687
3812
Carryin
Production
Available
1400
14,146
15581
1400
14,482
15917
1400
14,314
15749
Total Use
3500
3500
3500
Carryout
480
396
312
Feed
Ind.
(Ethanol)
Export
Total Use
5100
6485
5000
1700
13285
13285
13285
Carryout
2295.6
2632.4
2464
Planted
Harvested
Yield
page 2
on a limit feeding regimen prior to
show. High Octane Depth Charge can
be fed to all show livestock species,
and is normally introduced to the diet
one to two months before animals are
to be exhibited. To help our customers
ensure that their show livestock are at
their absolute best, we are offering a $2
off special on all purchases of the High
Octane Depth Charge 25 pound bags.
To redeem this special pricing, simply
bring in your newsletter when making the
purchase.
It is important to the Two Rivers
feed department that our customers
are receiving as much value on their
purchases as possible. That is why I want
to remind you once again that you still
have through August to take advantage of
creep feed contracting. As we are seeing
markets soften, this may be a good time
to take advantage of this feed service.
The month of July brings a number
of county fairs taking place, followed
by the Iowa State Fair in August. Many
of our Two Rivers customers will have
livestock at Mahaska, Marion and Jasper
County Fairs. We hope you will support
them, as we continue to do the same.
The numbers at
left are from the
June 30 Stock and
Acerage Report
issued by the
USDA.
DEALING WITH WEED RESISTANCE
Jay Van Woerkon- Agronomy Sales Manager
Aside from our recent weather, we had seen relatively few
problems in our corn fields. They were maturing nicely and the
fertilizers, coupled with the multiple modes of action used, were
creating clean corn fields. I wish I could
report that soybean fields look just as nice,
but I am afraid that ship has sailed for us.
Two years ago, we saw minor issues
with soybeans and a minimal water hemp
problem. Last year, you probably saw an
increase in water hemp, but were still able
to control the issue with residual products
put into place from pre-plant to postemergence.
Water hemp is quickly
Early on this year, we put a residual
becoming resistant
to our management
down,
followed by a second pass of
practices.
Roundup, only to find out that we clearly
had a resistance concern. Knowing that
water hemp is going to be a major issue for us from now on,
diphenyl ethers and heavy scouting will need to take a more active
role in combating these weeds. It is important to note that only
weeds four inches are shorter can be
killed with diphenyl ethers. Once the
water hemp has surpassed the fourinch mark, it cannot be killed.
I believe we will need to alter
our management practices we have
come to know in order to prepare for
next year’s growing season. I urge
you to consider a two-pass residual
program, followed by Roundup and
diphenyl ether, if necessary. I also
believe we need to be on the lookout Palmer amaranth looks similar
for palmer amaranth. It has a similar to water hemp, but is even more
look to water hemp, but is extremely aggressive and resistant.
resistant and even faster growing.
It is currently moving up from the south at a rapid rate. These
new challenges will take new management strategies and further
partnership with your agronomist. Share with them anything you
are seeing in your soybean fields. We want to ensure you will have
an optimal crop come harvest.
USDA REPORT WAS A GAME CHANGER
Justin Huebner- Financial Service Representative
The June 30 USDA Stocks and Acreage Report was a game
changer, no doubt. One would have to think that farmland values
plummeted instantly upon the release of the report since it now
appears that grains and oilseed prices could very well have a tough
and long road ahead of them. In fact, I have heard $750 billion
could be easily fathomable.
I do not want to be doom and gloom, but I think we could
potentially be looking at a new era of farming. It seems to me that
with increased regulations in the agricultural sector, it is more
about politics and less about supply and demand. If we don’t see
a dramatic shift in the supply and demand, we could be looking at
prices similar to those before the ethanol era. I am not discussing
this to scare you, but to begin the process of forward thinking. It
might not be a bad idea to begin looking at 2015 crop sales already
if it seems financially feasible to your operation.
The report also indicated that the preventative planting acres
from 2013 finally showed up in the USDA’s figures. The balance
tables for corn make a strong argument for corn under the $4 mark,
barring any dramatic weather events through August. Remember
when the drought of 2012 hit and many producers were saying that
they should have known yields wouldn’t have been as bad as they
thought? Is this the year we say we should have known it wasn’t
going to be as good as we thought?
Quarterly corn stocks came in at 3.85 billion bushels versus
the average estimate of 3.72 billion bushels expected. Quarterly
soybean stocks were reported at 405 million bushels, in
comparison to the estimated 378 million bushels. Corn acreage
numbers are currently sitting at 91.64 million acres versus the
91.72 million acre average estimate. I don’t believe these figures
are low enough to become bullish. Soybean acreage numbers were
reported at 84.83 million acres. This came in shockingly higher
than the average expected estimate of 82.15 million acres. Acreage
totals for the top nine producing crops in the U.S. were up 4.5
million acres from March.
I believe we are going to be faced with a much different
market than what we have recently become used to. I also believe
producers need to become competitive marketers to ensure a
positive bottom line. Regardless, I am optimistic we will be able to
work with these new issues we are going to be faced with.
page 3
109 South Street
Pella, IA 50219
800-223-5512
www.tworivers.coop
Locations in
Pella- 641-628-4167
Otley- 641-627-5311
Monroe- 641-259-2232
Tracy- 641-949-6411
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SAFETY FIRST WHEN IT COMES TO L.P. GAS
Scott Bensink- Petroleum Department Manager
Propane safety is something that everyone should become familiar with. L.P. is
extremely flammable when mixed with air and can be ignited by various sources. Many
of you may utilize propane appliances in your own homes. I can assure you they are very
safe, if you take the proper precautions when installing them.
I know it seems easy to go to the big box stores and purchase a new oven or hot water
heater and install it with some assistance from various sources. However, I urge you to
consider turning to a professional. You may have the skills; however, you might not have
the right tools to install and test those new appliances. Properly installing the lines and
checking for leaks is crucial. “When you leave it to the professional, you leave no doubt.
Gas appliances should only be installed by a qualified professional.”
The next time you are in need of new appliances, please call a qualified professional
to do the installation, and then make sure to contact Two Rivers to come and perform a
check on the system to ensure your home is free of any leaks.
I would like to also remind you that propane contracting will still be running through
August. After last season’s run-up in prices, I think it would be wise to take advantage of
this program. If you have been watching the news recently, you know there are ongoing
supply problems and major issues involving the oil fields in Iraq and the Ukraine. I don’t
believe these issues will be resolved any time soon, and we may feel the pinch from these
disputes. In correlation with the uneasiness in the world, contracting your diesel fuel for
fall harvest would also be a good idea. As you know, prices can change relatively fast.
page 4
WHAT TO DO IF YOU SMELL GAS
1. NO FLAMES OR SPARKS!
Immediately put out all smoking materials
and other open flames. Do not operate lights,
appliances, telephones or cell phones
2. LEAVE THE AREA IMMEDIATELY!
3. SHUT OF THE GAS
Turn off the main gad supply valve on your
propane tank, if it is safe to do so.
4. REPORT THE LEAK From a neighbor’s home or other nearby
building away from the gas leak, call your
propane retailer right away.
5. DO NOT RETURN TO THE BUILDING OR
AREA
...until your propane retailer, emergency
responder, or a qualified technician determines
that it is safe to do so.
6. GET YOUR SYSTEM CHECKED BEFORE REUSE
Before you attempt to use any of your propane
appliances, your propane retailer
or a qualified service technician
must check your entire system
to ensure it is leak-free.