Monday's Headlines

“FAPRI Reports to Congress”

A report to Congress by the Food and Agricultural Policy Research Institute, at the University of Missouri, says farm income will decline and consumers will benefit with lower food price inflation this year. FAPRI’s 10-year baseline shows all sectors of agriculture are facing volatility in prices and continued high production costs. At the same time food inflation, which hit a high of 5.5 percent last year, will be at about 2.7 percent this year.

FAPRI projects that lower prices can cut U.S. net farm income by 18-billion dollars in 2009. While farm commodity prices remain above pre-2007 levels - recovery to last year’s levels is not expected before 2014. High feed prices and falling meat prices continue to squeeze livestock feeders. Milk prices, led by weak world demand for U.S. dairy products, will be at near-historic lows. FAPRI expects an all-milk average of 13-dollars. Meanwhile, hog producers are suffering their worst profits since the record-low prices in the late 1990s.

Crop farmers will continue to enjoy higher returns from grain. The biofuel mandates are helping. But, corn will not hit eight dollars this year. FAPRI expects more like 3.74 per bushel for this year’s corn crop. Soybeans face lower demand from poultry and livestock feeders. Farm prices could drop to 8.76 this year. Weakening global demand could lead to a four-million-acre drop in area planted to 12 major crops in 2009.
*************************************************************

“Budget Extension Passes – Debate to Continue”

Our government’s employees are being paid. A stopgap spending measure has been passed by both houses of Congress which keeps the government funded through this Wednesday.

Debate on the 410-billion dollar omnibus bill will resume this week with Republican Senators ready to introduce up to a dozen amendments. But, according to Senator Jon Kyl of Arizona, - my guess is that we could probably get things pretty well finished up on Tuesday.
*************************************************************

“Broadband Initiative Announcement Scheduled”

Tuesday, Agriculture Secretary Tom Vilsack will join Federal Communications Commission Acting Chairman Michael Copps and U.S. Department of Commerce Senior Advisor and Acting Chief of Staff Rick Wade to announce the kickoff of the American Recovery and Reinvestment Act of 2009's broadband initiative. The announcement will be made at the Department of Commerce in Washington, D.C.

During their presentation the three leaders will discuss the implementation of the broadband initiatives funded by the ARRA, initiatives critical for building a 21st
Century information infrastructure and creating jobs in communities across the country. They also will announce a series of meetings that will give the public an opportunity to ask questions about and provide comment on the program.

The broadband initiatives are intended to accelerate broadband deployment in unserved, underserved and rural areas and to strategic institutions that are likely to create jobs or provide significant public benefits.
**************************************************************

“NCGA Supports Higher Blend Rate”

The president of the National Corn Growers Association says his organization - supports the ethanol industry’s efforts to move beyond the current 10% blend wall. Bob Dickey says the newly approved NCGA policy states, ‘We will work with all partners in the ethanol industry to create a unified strategy to expand ethanol usage and production.”

NCGA understands overcoming this hurdle will require sound science in a transparent process. Dickey emphasized that the NCGA - supports the regulatory process to increase the blend rate and to replace foreign oil with domestically produced renewable energy.

America’s corn growers have continually exceeded market demand for corn by the ethanol industry and will continue to meet the demands of food, feed, fuel and fiber in an economical and environmentally responsible manner. NCGA also highlighted the important impact that farmer-owned, homegrown fuel production has in bringing opportunities to rural America.

U.S. corn production efficiency is continually advancing and NCGA expects even greater improvements in sustainability and efficiency in the years to come. It currently takes 40% less land and 50% less energy to produce a bushel of corn than it did in 1987.
**************************************************************

“25X’25 Alliance Meets With Ag Secretary”

Secretary of Agriculture Tom Vilsack continued to meet with top agricultural leaders and organization representatives last week. Vilsack’s latest meeting was with the National 25X”25 Alliance. The 25X”25 leadership stressed the need to maintain and expand enabling policies to accelerate development of biofuels. They also brought up the energy title of the farm bill and ways to further strengthen it.

The organization’s growing carbon initiative was discussed. The alliance believes the initiative can serve as a platform for promoting clean energy solutions from the agriculture and forestry sectors. The group also pointed out the draft discussion guide, “Opportunities in a Reduced Carbon Economy; A Primer for Agriculture and Forestry, authored by the Carbon Working Group.

The Secretary reiterated the Administration’s position. Expand opportunities in biofuels and renewable energy; plugging renewable energy into the grid; and advance research and development and pursue opportunities to support the development of sustainable biofuels.
************************************************************

“Pork Producers Honored”

The National Pork Board recognized the latest class of Environmental Steward Award winners during the National Pork Industry Forum in Dallas, Texas, on Friday. Steve Weaver, a producer from Elk Grove, California and National Pork Board president said - it is important to recognize the positive environmental impact pork producers can have. These winners exemplify excellence in environmental care and conservation in pork production.

The recipients are: John Csukker and Jill Goedeken of Enterprise Nurseries of Madrid, Nebraska; Sharon and Steve Oetting of Oetting Farms of Concordia, Missouri; Terry and Diane O’Neel and family of O’Neel Farms of Friend, Nebraska; and Jim and JoAnn Veldkamp of Veldkamp Farms of Jasper, Minnesota.

Also recognized was Sam Hines of Holt, Michigan who was the recipient of the Pork Checkoff’s Distinguished Service Award. Hines is the executive vice president of the Michigan Pork Producers Association. Also honored were outgoing president Steve Weaver and members Dianne Bettin from Truman, Minnesota and Dennis Michael from Yankton, South Dakota.
***********************************************************

“Pork Exports a Collaborative Effort”

The U.S. pork industry has recorded seventeen years of consecutive record growth through 2008 when it exported almost 25 percent of its total production. Chris Novak, chief executive officer for the National Pork Board, is quick to point out that this rapid growth has not simply happened on its own. In particular, Novak views the constructive working relationship between the NPB, the U.S. Meat Export Federation and the National Pork Producers Council as an important element behind the industry’s success.

And Novak feels pork producers are more in tune than ever to the importance of exports to their bottom line. In the early 1990s the U.S. was a net importer of pork. Today, Novak says - we export one out of every four hogs and our industry has grown from just under 80 million hogs to 116 million produced last year.

Novak says, - the need for a clear and integrated strategy has never been greater. If promotion and marketing activities are done in a vacuum without market access and sound trade policy, they’re not going to accomplish nearly as much as when we have connected those pieces. So, Novak says - maintaining the partnership that exists today between U.S. Meat Export Federation, the National Pork Board and NPPC certainly is one of my greatest priorities.
**************************************************************

“Two New Barleys Surface as Contenders”

For more than a decade, a barley named "Baronesse" has reigned as the
undisputed queen of feed barleys in Idaho – the number two producer of this golden grain. But that throne may be about to topple. ARS researchers in Aberdeen, Idaho and at the University of Idaho have developed a barley called "Lenetah" which yielded more tons per acre of plump, nicely filled kernels in northern Idaho research trials than did Baronesse. Lenetah was released to other researchers and plant breeders for the first time last year.

Lenetah seems best suited for rain-fed fields of northern Idaho and eastern Washington. But a second barley, "Tetonia," does best in irrigated farmlands of southern Idaho. Like Lenetah, Tetonia has moved ahead of Baronesse in terms of yields. Tetonia produced yields 2 to 6 percent higher than those of Baronesse in tests conducted from 2001 to 2006 in Idaho and elsewhere in the West. Tetonia was released in 2007.

The biggest "customers" for feed barleys, from both a literal and financial standpoint, are dairy cows and beef cattle. The grain provides proteins, carbs, and other nutrients essential for the health of the big bovines, and is a nutritious alternative to corn.
*************************************************************