Thursday's Headlines

“Stimulus Funding Act Awaits Presidents Signature”

The stimulus funding act, worth 410-billion dollars, is on the President desk for his signature. Even with its earmarks, the President is expected to sign the measure. Indiana Senator Evan Bayh led the move against the bill, saying American families are tightening their belts; Congress should be equally committed to living within its means.

Agri-Pulse reports the Obama Administration delivered a stunning blow to U.S. Agriculture – basically assuring critics of Cuba’s Castro brothers that language in the Senate’s version to ease bush-era restrictions on travel and trade to the communist-run island would not be enforced by the Treasury department.

Down the road, more bailout money may be needed. Economists have told lawmakers there is a high probability that more money will be needed to stabilize the banking system and, perhaps, to stimulate economic activity more generally.
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“Measure to Stop Cow Tax Now Has House Companion”

The measure introduced by Senators John Thune and Charles Schumer to prevent what’s been referred to as the cow tax now has companion legislation in the House. Frank Lucas of Oklahoma - the Ranking Member on the House Ag Committee - introduced the bill Wednesday to prevent the government from requiring livestock producers to obtain Title V (five) operating permits under the Clean Air Act. That’s something the American Farm Bureau estimates could cost farmers and ranchers 175-dollars per dairy cow - 87.50 per beef cow and 21.87 per hog. The introduction of this bill comes on the same day the Washington Post reported on EPA plans to establish a nationwide system for reporting greenhouse gas emissions.
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“EPA Could Measure CAFO Emissions”

The Environmental Protection Agency wants to obtain comprehensive and accurate data about the production of greenhouse gases. To do so, the EPA plans to establish a nationwide system for reporting greenhouse gas emissions, a program that could serve as the basis for a federal cap on the buildup of carbon dioxide and other gases linked to global warming.

The registry plan would cover about 13-thousand facilities that account for 85 to 90 percent of the nation's greenhouse gas output. The EPA requirements would apply to confined animal-feeding operations, as well as oil and chemical refineries; cement, glass, pulp and paper plants; and manufacturers of motor vehicles and engines. If adopted by the end of the year, the rule could produce greenhouse gas statistics by the end of 2010.

EPA Administrator Lisa Jackson pointed out - our efforts to confront climate change must be guided by the best possible information. She said - this is a critical step toward helping us better protect our health and environment -- all without placing an onerous burden on our nation's small businesses.
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“Latest WASDE Report Issued”

U.S. soybean ending stocks for 2008/09 are projected at 185 million bushels, down 25 million. Soybean exports are raised 35 million bushels to 1.185 billion - reflecting record sales to China and reduced export competition from Argentina. Soybean crush is reduced 10 million bushels. Despite lower production, soybean oil stocks are projected higher due to a sharp reduction in domestic use resulting from lower soybean oil-based biodiesel production. The U.S. season-average soybean price range is projected at $8.85 to $9.85 per bushel, up 10 cents on both ends of the range. The soybean meal price projection is unchanged at $265 to $305 per short ton. The soybean oil price is projected at 28.5 to 31.5 cents per pound, down 2.5 cents on both ends of the range. Global oilseed production is projected at 407.7 million tons, down 0.3 million tons from last month. Global soybean production is reduced 0.9 million tons to 223.3 million.

U.S. corn ending stocks for 2008/09 are projected 50 million bushels lower this month. Corn use for ethanol is projected 100 million bushels higher on indications of improving blender incentives and higher ethanol use. Corn exports are projected 50 million bushels lower on sales and shipments to date, and pressure from increased foreign supplies of corn and wheat. The season-average farm price for corn is projected at $3.90 to $4.30 per bushel compared with $3.65 to $4.15 last month. Continued strength in prices received by producers indicates higher-than-expected forward contracting as farmers took advantage of pricing opportunities last spring and summer. World corn production is raised 0.6 million tons as an increase for South Africa more than offsets downward post-harvest revisions for India and Kenya. World corn imports, exports, and consumption for 2008/09 are all projected lower this month.

With higher projected imports and lower expected domestic use and exports, U.S. wheat ending stocks for 2008/09 are projected to be 57 million bushels higher this month. Lower projected exports of hard red winter, hard red spring, and durum wheats are only partly offset by an increase for white wheat. Food use is projected 25 million bushels lower. High extraction rates have reduced the amount of grain needed to produce flour. The projected season-average farm price is unchanged at $6.70 to $6.90 per bushel. Meanwhile, global wheat production is projected 1.6 million tons higher this month to a record 684.4 million. Projected world wheat consumption is lowered 3.7 million tons, mostly reflecting lower expected feed use in Russia and reduced food use in the United States.

No changes are made on the supply side of the U.S. 2008/09 rice supply and use balance. All rice exports are lowered 4 million cwt to 94 million. The all rice season-average farm price is forecast at $15.50 to $16.50 per cwt, down 50 cents on both ends of the range from a month ago. The long-grain season-average farm price range is projected at $14.50 to $15.50 per cwt, down 50 cents on each end of the range. The combined medium- and short-grain farm price range is projected at $20.50 to $21.50 per cwt, unchanged from a month ago. Global 2008/09 rice production, trade, and stocks are increased from last month while consumption is lowered.

Projected 2008/09 U.S. sugar supply is decreased 85,000 short tons, raw value, from last month, due to reduced production. Processor indications of higher storage losses and lower rates of sugar extraction reduce beet sugar production 25,000 tons. Florida cane sugar is reduced 60,000 tons based on lower sugarcane production. Sugar use is unchanged.

The 2008/09 U.S. cotton estimates include lower domestic mill use and higher exports compared with last month. Production is unchanged. Domestic mill use is reduced 150-thousand bales to 3.75 million, as both mill activity and retail demand continue to weaken. In contrast, exports are raised 500-thousand bales to 12.0 million, as recent export sales indicate a stronger U.S. share of world trade than previously projected. U.S. ending stocks are reduced 5 percent to 7.3 million bales. The forecast season-average price range of 46 to 52 cents per pound is reduced 1 cent on the lower end and 2 cents on the upper end of the range. This month’s world estimates show lower production, consumption, and trade.
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“Livestock Related Numbers Included in WASDE”

Wednesday’s World Agriculture Supply and Demand Estimates included figures on livestock, poultry and dairy. Total U.S. meat production for 2009 is forecast lower this month as a slight increase in red meat output is more than offset by lower poultry production. The beef production forecast is raised from last month as carcass weights are forecast higher. Cow slaughter is forecast higher as dairy herd liquidation is expected to increase during the year. Pork production is forecast slightly higher than last month as hog weights are increased slightly.

Broiler production forecasts are lowered as hatchery data point to continued reductions in eggs set and chicks placed. Turkey production is also forecast lower as there are no indications that hatchery flocks will expand before midyear. Total egg production is forecast lower as a fractional increase in the first quarter table egg output is more than offset by lower forecast hatching egg production, which reflects reduced forecasts for broilers.

Cow numbers for 2009 are forecast higher than last month. However, milk production forecasts for 2009 are lowered as milk per cow growth is forecast slower, reflecting poor returns. The herd liquidation rate is raised. Trade forecasts for 2009 are unchanged from last month. CCC net removals are reduced. Milk production estimates for 2008 are revised higher.

Milk price estimates for 2009 are raised. Forecasts for butter and cheese prices are raised from last month as demand has been stronger than expected and later year reductions in milk supplies are expected to support product prices. Nonfat dry milk and whey prices are unchanged. As a result of higher cheese and butter prices, the annual Class III and Class IV price forecasts are raised. The all milk price is also forecast higher this month at $11.25 to $11.85 per cwt.
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“WASDE Good News for DDGS Exports”

The U.S. Grains Council says the United States is more than able to continue supplying global customers with necessary feed ingredients. Citing the latest USDA World Agricultural Supply and Demand Estimates, USGC Chairman and Ohio corn producer Rick Fruth said U.S. corn ending stocks for 2008/2009 are projected 50 million bushels lower this month and ethanol use is estimated 100 million bushels higher. Fruth says - this is good news for U.S. corn growers and the U.S. ethanol industry, which was stumbling as a result of the current economic situation.

Fruth says the 100 million bushel increase for corn used for fuel will result in approximately 1.7 billion pounds of distiller’s dried grains with solubles for global livestock and poultry industries. The Council, which has been developing overseas markets for DDGS since 2002, reports DDGS exports increased more than 91 percent in 2008 from the previous year. Total DDGS exports amounted to 4.5 million tons compared to 2.3 million tons in 2007.

Given USDA’s report citing increased supplies of wheat and corn available in the global marketplace, Fruth predicted - DDGS exports will allow U.S. farmers to remain competitive in markets overseas. He added, - the distiller’s grains are a way to help U.S. growers get every bit of value out of the kernel of corn, and they help reassure our international buyers that a good source of feed continues to be available for our livestock producers in the United States and abroad.
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“Committee Addresses Animal ID”

The House Agriculture Subcommittee on Livestock, Dairy, and Poultry held a hearing to review animal identification systems. Committee Chairman David Scott of Georgia said - I believe a mandatory system is necessary and carries with it many benefits. Scott pointed out - it would help protect producers against the spread of minor animal diseases, as well as from the devastating economic effects – of major diseases. And, it would save the government money and provide a vital tool in maintaining the safety and integrity of the food supply.

Saying a mandatory animal identification system is needed, the National Pork Producers Council urged Congress to support and fund the National Animal Identification System. NPPC wants the system to be applied to all relevant livestock species, allowing each industry to develop its own effective and affordable system. The U.S. pork industry already has a swine ID system, which has registered about 54-thousand, or 80 percent, of the estimated 67,300 hog farms.

NPPC President Don Butler told the panel - a mandatory animal ID system will: 1/ Provide improved tools to manage swine herd health through disease surveillance, control and eradication programs. 2/ Enable U.S. pork producers to maintain and promote access to international markets. 3/ And strengthen the security of the nation’s livestock industry. He said this program will - allow a disease to be brought under control and eradicated more quickly, thereby saving taxpayer dollars and keeping foreign markets open to our exports.

The National Cattlemen's Beef Association and R-CALF USA are opposed to a mandatory animal ID system.
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“Democratic Senators Unveil Agenda”

Senator Blanche Lincoln, Chair of Rural Outreach, unveiled the Senate Democratic Caucus’ Rural Agenda for the 111th Congress and announced the launch of a new rural outreach website. Both initiatives are part of Senate Democrats’ efforts to highlight issues important to rural communities and to further promote policies that will benefit rural America. Lincoln says - this agenda will help guide Senate Democrats as we work toward policies that will revitalize and reinvest in the rural economy.

According to the outreach statement - rural America reflects our nation’s most precious values: hard work, independence, and an unparalleled commitment to community. Senate Democrats provide a voice for the over 50 million hard-working rural Americans and support an agenda that addresses the unique challenges they face. Senate Democrats will fight for policies that revitalize and reinvest in our communities so that, together, we can build a stronger rural America.

Issues addressed include: Health Care, Education, Economic Development, Agriculture, Energy and Natural Resources, Veterans and National Guard, Rural Law Enforcement and Homeland Security, and Infrastructure.
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“Offshore Tax Issue Key to Panama Agreement”

Representative Sander Levin says labor and offshore tax issues must be resolved before Congress can consider a stalled free trade agreement with Panama. In a speech to the Washington International Trade Association, Levin, chairman of the House Ways and Means Subcommittee on Trade, promised a far more robust congressional role on trade issues than during the Bush years.

Levin insisted that the United States - will continue to lead in the era of international economics and globalization. This is not the time to turn inward, and we will not. But the Michigan Democrat, an ally of organized labor, warned - trade is not an end in and of itself. He called for a new trade policy that incorporates labor and environmental standards as - values.

The Panamanian agreement was finalized by the Bush administration in late 2006.
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"Mississippi to Stay with American Soybean Association"

The Mississippi Soybean Association will stick with the American Soybean Association. Danny Murphy - Mississippi's state representative on the ASA Board - says the state association's leaders were sufficiently satisfied with the action taken by ASA delegates at Commodity Classic to reaffirm the organization's unconditional support for the national soybean checkoff program overseen by the United Soybean Board.
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“Grants for Energy Audits Available”

Agriculture Secretary Tom Vilsack has announced that USDA is accepting funding applications from eligible entities for grants to conduct energy audits under the Rural Energy for America Program. According to Vilsack, this first time program will - help agricultural producers and rural small businesses obtain audits to identify ways to improve energy efficiency. The program is authorized in the 2008 Farm Bill.

Audits are required for energy efficiency projects funded through REAP that exceed 50-thousand dollars. States, tribal and local governments, land grant colleges or universities, other institutions of higher learning, and electric cooperatives and public power entities are eligible to receive funds to conduct the audits. Participants must pay 25 percent of audit costs.

Applications for grants must be completed and submitted on paper or electronically no later than June 9. Further details about eligibility rules and application procedures are available in the March 11th Federal Register.
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“Grants Announced to Improve SFAS Program”

USDA will award grants of up to five million dollars to help make the Supplemental Food Assistance Program - formerly the known as the Food Stamp Program - more accessible. In making the announcement, Ag Secretary Tom Vilsack said - President Obama has made ensuring people have access to nutritious foods a top priority for his administration and these grants will be especially helpful to those hardest hit by hard economic times.

This year, USDA plans to fund a partnership between a State agency and one or more private non-profit organizations to enable improvements in State agency intake practices coordinated with community access initiatives. The Department also intends to fund one or more projects designed to improve the retention of eligible households' participation in SNAP at the point of recertification.

The application for grants from state and local government and private non-profit organization is due by June 11, 2009.
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“Biodiesel Board Meets with Secretary”

Members of the National Biodiesel Board's Governing Board have met with Secretary of Agriculture Tom Vilsack. Board members used the opportunity to discuss forthcoming implementation of the Renewable Fuel Standards. NBB CEO Joe Jobe said - implementation of a workable RFS-2 program is consistent with a national energy strategy that values the replacement of petroleum diesel with domestically-produced low carbon fuel.

RFS-2, enacted as part of the Energy Independence and Security Act of 2007, for the first time specifically requires the use of low carbon, renewable diesel replacement fuel. The Environmental Protection Agency is currently crafting the rule to implement this program. Under RFS-2, fuels must hit greenhouse gas emission reduction targets to qualify for the program.

The U.S. biodiesel industry is concerned that the methodology being employed by EPA to calculate the emission profile of biodiesel produced from vegetable oils - particularly as it relates to Indirect Land Use Change assumptions - is being based on inaccurate and unreliable assumptions. The result would be a program that disqualifies vegetable oil as a biodiesel feedstock, an outcome that would be make it impossible to meet the Advanced Biofuels targets established in RFS-2.
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“Sorghum Growers Face Problem With Insurance”

Producers who anticipate the possibility of planting grain sorghum or other crops behind failed first crops this season should be aware of new rules pertaining to crop insurance. According to the 2008 farm bill, Supplemental Revenue Assistance Payment program eligibility could be affected by planting a second crop if it is not properly disclosed on insurance forms early in the season. Crop insurance enrollment forms are due next Monday, March 16.

National Sorghum Producers Strategic Business Director Chris Cogburn says - if a producer’s first crop fails then he chooses to plant a second crop, he will not lose eligibility for SURE provided potential for that second crop was declared on his crop insurance enrollment form.

Listing sorghum on an insurance form or planting sorghum does not make the producer ineligible for crop insurance on his first crop, nor does it make the producer ineligible for SURE payments. The second crop is considered a “ghost” crop and does not affect SURE eligibility.
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“NPPC Makes Resolutions”

At its annual business meeting last week, the National Pork Producers Council adopted a number of resolutions. They include: Opposition to increasing the percentage of ethanol that must be blended with gasoline from its current 10 percent rate and to any increase in existing federal or state mandates on corn-based ethanol usage.

Opposition to giving incentives, including subsidies, for cellulosic ethanol production from corn-ethanol co-products and asks the Federal government to, once the ethanol blender’s credit and tariff on ethanol imports expire at the end of 2010, “transition” to a counter-cyclical payment system.

Opposition to efforts by EPA to regulate greenhouse gas emissions from farms and asks for evaluating the economic, policy and regulatory impact on the U.S. pork industry of so-called global warming.

The resolutions also provide for improvements in unloading procedures for pigs at packing plants and require all pork producers to participate in the industry’s Pork Quality Assurance-Plus program.
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"NFU Policy Moves Forward”

The National Farmers Union has called Congress and the administration to take necessary measures to protect and promote a competitive marketplace for independent family farmers and ranchers. Delegates to NFU's 2009 convention cited the ethanol market as the only sector in agriculture that has witnessed a decrease in consolidation and increase in competition. Delegates said this model should be used as a guide for other agricultural markets.

Delegates also urged agriculture's role in renewable energy production and combating climate change be expanded. The delegates outlined provisions that should be included in future energy and climate change legislation. NFU President Tom Buis said - America's farmers combat climate change by sequestering and storing carbon dioxide. He added, any legislation should recognize this contribution of rural America and facilitate its growth.

And NFU delegates adopted a special order of business calling on policy makers to consider the unique challenges facing rural America when debating policy solutions to the nation's health care system. Research in multiple Farmers Union states has shown that family farmers and ranchers disproportionately purchase insurance in the non-group market, where insurance generally costs more and provides less coverage. Research also found that health care expenses contributed to financial problems in one in four farm families, and one in five had outstanding medical debt.
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