News Update
Jan. 12, 2010 

USDA Reports Farmers Shatter Corn Production Records on Fewer Acres 

The final report from the U.S. Department of Agriculture (USDA) on the 2009 corn harvest is one for the record books. Despite poor planting conditions; a cool, wet growing season; and an abysmal harvest that still sees corn standing in fields, American farmers shattered records for both yield per acre and total production. 

In the January Crop Production report, USDA estimates farmers averaged 165.2 bushels (bu.) of corn per acre, up from its previous estimate of 162.9 and shattering the previous record of 160.4 in 2004. Notably, average yields are more than 11 bu. per acre higher (7%) than last year’s average yield. In addition, this record yield helped produce the largest corn crop ever — 13.2 billion bu.  

“The unparalleled productivity of America’s farmers continues to amaze even the most skeptical of critics,” said Renewable Fuels Association President Bob Dinneen. “Despite unfavorable weather conditions from start to finish, farmers produced considerably more corn than the food, feed and fuel markets are demanding. Such gains in productivity undermine any claims that U.S. biofuel production will require new lands in other nations to come into production. There can be no question that American farmers have both the capability and the can-do attitude to feed the world while simultaneously helping reduce our nation’s reliance on imported oil.” 

Dinneen also pointed out that the record 2009 crop was produced on 7 million fewer acres than were required to produce the second-largest crop on record (13.0 billion bu.) in 2007. 

Despite raising total production and yield numbers, USDA left demand for all sectors, save feed use, unchanged. The fact that feed use is increasing at the same time that surplus stocks are growing drives yet another nail in the coffin of the trite feed vs. fuel argument, Dinneen said. For ethanol, USDA is estimating 4.2 billion bu. of demand for the marketing year Sept. 1, 2009-Aug. 31, 2010. That is enough to produce 11.7 billion gallons (gal.) of ethanol based on industry ethanol yield averages. 

For calendar year 2009, the U.S. is expected to produce 10.6 billion gal. of ethanol and more than 30 million metric tons of livestock feed from 3.8 billion bu. of corn. 

— Release provided by the Renewable Fuels Association.

Latest Version of USDA’s Premier Nutrient Database Released 

The Agricultural Research Service (ARS) flagship nutrient database has been updated with more than 200 new entries. The USDA National Nutrient Database for Standard Reference, Release 22, or SR22 for short, now includes a total of more than 7,500 food items. Among the 2009 updates, as many as 3,000 values for Vitamin D have been included for the first time. SR22 also includes a new food group, “Restaurant Foods.” At this time, the restaurant foods group contains profiles for 38 food items obtained from family-style restaurants, Latino restaurants and Chinese restaurants. Click here to access Release 22.

— Release provided by USDA ARS as part of its Food and Nutrition Research Briefs.

2009 Ag Income Tax Update for Farm Families Available 

For tax years 2009 and 2010, there are a number of changes that have resulted from the passage of federal tax laws. These changes can dramatically affect farm families, their farm business and the management of their tax planning. 

Section 179 depreciation and bonus depreciation have been extended for the 2009 and 2010 tax years. One challenge here is that the State of Minnesota has not adopted the federal Section 179 and bonus depreciation provisions so additional planning is needed. New for 2009 is a mandatory five-year recovery of depreciation on all new farm machinery placed into service in 2009. This provision replaces the seven-year recovery period for new machinery but still applies to used machinery. 

Other farm business tax changes involve wind generator tax issues, income averaging for farmers, net operating loss carry-back calculations, dairy herd retirement program payment issues, and changes to how commodity futures and options contract proceeds are calculated for tax purposes. Tax rates, deduction amounts and phase-out amounts have changed for 2009 and 2010 as well. 

In addition to farm business tax changes, there have been several individual and family tax law changes. Some of those include new rules regarding the “Kiddie tax,” first-time home buyer rules, new car deduction, “Cash for Clunkers” tax calculations, and some changes to retirement and learning tax credits. 

If farm families have questions regarding any of the ag tax law changes they can get a free copy of the publication titled “Ag Income Tax Update for Farm Families” from the University of Minnesota (U of M) Extension’s Agricultural Business Management web site at www.extension.umn.edu/AgBusinessManagement.

— Release by U of M Extension.

HHS Delivers Nation’s First Health Security Strategy 

U.S. Department of Health and Human Services (HHS) Secretary Kathleen Sebelius Jan. 7 released The National Health Security Strategy, the nation’s first comprehensive strategy focused on protecting people’s health during a large-scale emergency. The strategy sets priorities for government and non-government activities during the next four years. 

“As we’ve learned in the response to the 2009 H1N1 pandemic, responsibility for improving our nation’s ability to address existing and emerging health threats must be broadly shared by everyone — governments, communities, families and individuals,” Secretary Sebelius said. “The National Health Security Strategy is a call to action for each of us so that every community becomes fully prepared and ready to recover quickly after an emergency.” 

National health security means that the nation and its people are prepared for, protected from, and resilient in the face of health threats or incidents with potentially negative health consequences such as bioterrorism and natural disasters. The strategy provides a framework for actions that will build community resilience, strengthen and sustain health emergency response systems, and fill current gaps. 

“Events which threaten the health of the people of this nation could very easily compromise our national security. Whether it’s a pandemic or a premeditated chemical attack, our public health system must be prepared to respond to protect the interests of the American people. In order to be prepared to both respond to an incident and to recover, we need a strong national health system with individuals and families ready to handle the health effects of a disaster,” Secretary Sebelius said. 

The National Health Security Strategy and the accompanying interim implementation guide outline 10 objectives to achieve health security: 

• Foster informed, empowered individuals and communities. 
• Develop and maintain the workforce needed for national health security. 
• Ensure situational awareness so responders are aware of changes in an emergency situation. 
• Foster integrated health care delivery systems that can respond to a disaster of any size. 
• Ensure timely and effective communications. 
• Promote an effective countermeasures enterprise, which is a process to develop, buy and distribute medical countermeasures. 
• Ensure prevention or mitigation of environmental and other emerging threats to health. 
• Incorporate post-incident health recovery into planning and response. 
• Work with cross-border and global partners to enhance national, continental, and global health security. 
• Ensure that all systems that support national health security are based upon the best available science, evaluation and quality improvement methods. 

The National Health Security Strategy also highlights specific actions that the nation — including individuals, communities, non-government organizations, and government agencies — should take to prevent, protect against, respond to, and recover from health threats. 

Among the initial actions for the federal government are conducting a review to improve the system for developing and delivering countermeasures — medications, vaccines, supplies and equipment for health emergencies; coordinating across government and with communities to identify and prioritize the capabilities, research, and investments needed to achieve national health security; and evaluating the effect of these investments. 

Federal, state, local, tribal, and territorial government agencies, as well as medical, public health and community-based organizations, collaborated to develop the strategy and interim implementation guide. To determine any additional issues and themes the strategy should address, the HHS solicited direct input from non-federal participants during six regional workshops. HHS also worked with the Institute of Medicine to engage the medical community. 

The Pandemic and All Hazards Preparedness Act directed the HHS Secretary to develop the National Health Security Strategy with an accompanying implementation plan by 2009 and to revise the documents every four years. HHS, however, will update the implementation plan every two years to reflect advances in public health and medicine. 

Because of the close relationship between health and national security, the National Health Security Strategy complements and supports other U.S. strategies and guidelines related to security preparedness, response, and recovery. 

To obtain a copy of the strategy and implementation guide, visit www.hhs.gov/disasters.

— Release provided by HHS.

— Compiled by Shauna Rose Hermel & Mathew Elliott, Angus Productions Inc.