“House Ag Committee Sets Priorities”
The House Committee on Agriculture has passed its Budget Views and Estimates – reflecting the committee’s priorities - and sent it on to the House Budget Committee in preparation of the Fiscal Year 2010 Budget Resolution. Priorities of the committee include USDA implementation of the 2008 Farm Bill, modernization of the Farm Service Agency computer system, enactment of derivatives market legislation, and oversight hearings on waste, fraud, and abuse on programs under its jurisdiction.
Ag Committee Chairman Collin Peterson says - the current economic crisis is having broad impact on our nation and the benefits provided by that broadly supported legislation are essential to the well-being of millions of Americans. Peterson said the committee urges - the Budget Committee to take these points into consideration while crafting a responsible budget resolution for the coming fiscal year.
Ranking Member Frank Lucas encouraged the Budget Committee to honor the commitments made to our producers in the 2008 Farm Bill. Lucas pointed out that - at a time when our country is facing an economic crisis and commodity prices are plunging, it is important that we do the best we can to provide our farmers and ranchers with the safety net they need.
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“Coalition Opposes Cuts in Safety Net”
A broad coalition of farm groups is expressing strong opposition to the more than 16-billion dollars in cuts to the farm safety net proposed in President Barack Obama’s 2010 budget. In a letter sent to the chairmen and ranking members of the Agriculture and Budget Committees in both the House and the Senate, the coalition warned that the cuts - threaten, once again, to change the rules midstream on American farm and ranch families.
The letter noted that the round of cuts is being proposed just eight months after the 2008 farm bill was passed, which at the time contained more than 7.6 billion dollars in cuts to the safety net despite the fact that the cost of the provisions over the preceding six years was already 21.8 billion under budget. The proposed cuts constitute less than one quarter of one percent of the total federal budget and make up just 16 percent of the total farm bill’s cost.
American Farm Bureau Federation President Bob Stallman says - points out that - the ink is barely dry on the new farm bill, and all of the provisions have not yet been fully implemented. Stallman says - the bill must be fully implemented and allowed to work before changes are considered.
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“House Ag Committee Wants Many Viewpoints”
The House Agriculture Committee is seeking comments on proposals to address global climate change. The Committee is soliciting the opinions of more than 400 agricultural, environmental, scientific and educational groups and other members of the public, through a print- and web-based questionnaire – available on the house web page.
Committee Chairman Collin Peterson said - for years our farmers, ranchers, and forest landowners have been participating in conservation and carbon sequestration programs, working to reduce emissions and increase efficiency, and support a thriving renewable energy industry. Now we on the Committee would like to know where and how these efforts will fit into the overall task of addressing global climate change.
The Chairman said - there are many different ideas out there and this questionnaire is meant to ensure that we hear from as many viewpoints as possible on how to incorporate the good work America's farmers, ranchers, and conservationists are already doing into climate change initiatives, and identify potential benefits for the
future.
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“R-CALF President Calls Hearing – Business As Usual”
R-CALF USA President /Region VI Director Max Thornsberry was in Washington, D.C. this week testifying before the House Agriculture Committee’s Subcommittee on Livestock, Dairy and Poultry. Thornsberry called the hearing - business as usual. He said - it is unbelievable, but true, the new USDA was represented by the very people who already spent over 100-million dollars in taxpayer dollars during the old Administration to coerce U.S. livestock producers into surrendering their private property rights just to appease the international World Trade Organization. Thornsberry claimed the WTO - wants every U.S. farm and ranch and every U.S. farm animal to be registered in a federal database.
Veterinarian Dr. John Clifford, the Deputy Administrator of Veterinary Services for USDA’s Animal and Plant Health Inspection Service, testified in support of NAIS on the grounds that - establishing an internationally recognized system of traceability will enhance the competitiveness of U.S. exports and animal products. But, Thornsberry testified that imposing costs on U.S. livestock producers and requiring them to surrender their personal and real property to a federal database in order to comply with international edicts is - a wholly inappropriate consideration.
Thornsberry said - it is clear that USDA decided to conform to international standards and is now working backward to invent the need to impose this burdensome NAIS on U.S. livestock producers. Thornsberry was particularly disheartened that comments and questions made by members of Congress at the hearing demonstrated a belief that NAIS would miraculously address food safety problems. He said - NAIS is not a food safety issue.
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“Minnesota Student Wins Ag Day Essay Contest”
A 10th grade student at Redwood Valley High School in Redwood Falls, Minnesota is the 2009 Ag Day Essay Contest winner. Kelly Kohler was declared winner by the National Ag Day sponsor Agriculture Council of America during an Ag Day event in our nation’s Capitol. To win, Kelly wrote an original essay under the theme "Agriculture - Every Day in Every Way."
In her essay she wrote: - These days, agriculture is so deeply rooted in society that it is taken for granted and often ignored. The products that come from farms and agricultural processors are so commonplace that they are always expected. The food farmers produce goes to nourish the masses that largely overlook the farmers' entire existence.
This year Ag Day is March 21st, the first day of spring. Ag Day is a nationally coordinated program that envisions consumers, young and old, talking about agriculture. The contest is sponsored by CHS Inc., The Council for Agricultural Science & Technology, High Plains Journal, National Association of Farm Broadcasting, National Agri-Marketing Association, Country Living Association and McCormick Company.
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“Rural Development Funds Electrical Upgrade Loans”
Agriculture Secretary Tom Vilsack has announced that 13 rural utilities and cooperatives in 15 states have been selected to receive more than 271-million dollars in loans to build and repair more than four-thousand miles of distribution and transmission lines and make system improvements that will benefit 56-thousand rural customers.
Secretary Vilsack said - President Obama is delivering on his commitment to invest in America's infrastructure and create jobs. Vilsack declared - our rural communities need reliable, affordable electric service in order to support business expansion and broaden economic opportunities. These loans will spur growth in rural America by enabling cooperatives to deliver improved service to more customers.
The funding is being provided through USDA Rural Development's Electric Programs, which Congress authorized under the Rural Electrification Act of 1936 to provide loans and loan guarantees to help utilities, cooperatives, states and local governments provide or improve electric service in rural areas. The Electric Program also helps finance energy conservation and renewable energy systems.
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“Benefits to Burning Wheat Residue Shown”
Continuous winter wheat cropping systems are used in some parts of the Pacific Northwest where high amounts of rainfall result in excessive residues that must be managed after grain harvest. Conventionally managed winter wheat crops typically require multiple tillage operations before this residue is adequately incorporated into the soil. Although CM techniques reduce residues and control weeds and diseases, repeated tillage also promotes higher levels of soil erosion.
After investigating further, Agricultural Research Service scientists and cooperators have shown that with careful management, the practice of burning fields to remove straw left after winter wheat harvest and before reseeding does not result in any more soil erosion than other postharvest practices. The researchers found that after the postharvest residue is burned, only one or two tillage operations, including seeding, are needed in the next round of crop production. They said the undisturbed plant crowns that remain after burning help hold soil in place.
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Friday, March 13, 2009
Wednesday, March 11, 2009
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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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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Wednesday's Headlines
“Broadband Initiative Begins”
Plans have been announced to begin the development of a broadband initiative, under the American Recovery and Reinvestment Act. This initiative will result in the deployment of high-speed internet service in rural and unserved communities. Public meetings will be held from March 16-24. During those meetings interested parties will be asked to comment on the Broadband Technology Opportunities Program and the RUS grants and loans program established by the ACT. This initiative is being coordinated by the U.S. Departments of Agriculture and Commerce and the Federal Communications Commission.
Each of these meetings will feature a roundtable discussion and an opportunity for public comment. Each meeting will be webcast as part of the effort to broaden public input. The March 17 meeting will be held in Las Vegas, Nevada, with the following day's meeting scheduled for Flagstaff, Arizona. Officials say the public meetings are an important part of the agencies' efforts to move quickly to implement the Act's Broadband Initiatives.
The request for information also seeks comment on the creation of a national broadband map. Comments will be received up to 30 days after publication of notice in the Federal Register. Comments may be submitted via the Web, email or mail. Commenters are strongly encouraged to file via the website (www.ntia.doc.gov/broadbandgrants). Anyone without internet access will have to quickly submit their comments via the U.S. Mail. Otherwise, their submissions may not be heard because of delivery delays of up to two weeks due to mail security procedures.
**************************************************************
“NFU Meeting Closes with New President”
The newly elected National Farmers Union President is Roger Johnson. The North Dakota Agriculture Commissioner defeated Pennsylvania Farmers Union President Larry Breech to succeed Tom Buis. Johnson will resign his North Dakota Commissioner’s position. Congressman Earl Pomeroy said – North Dakota’s loss is truly Farmers Union’s gain.
In his acceptance speech Johnson called NFU the leading voice that will be heard on Capitol Hill with the Administration and members of Congress when it comes to agriculture policy. Johnson’s election came at the close of the annual National Farmers Union Membership meeting in Washington, D.C on Tuesday.
During the meeting - attendees heard from an outstanding line-up of policy makers, including Speaker of the House Nancy Pelosi and Ag Secretary Tom Vilsack. Topics such as renewable fuels, the farm bill, COOL, carbon sequestration, fair trade, market oversight, nutrition and health care were covered.
************************************************************
“NFU Members Take Actions”
National Farmers Union members want the Obama Administration and Congress to pursue fair trade policies that acknowledge the changes in the agriculture landscape in the past ten years. NFU members also want USDA to implement the programs in the 2008 Farm bill as congress intended.
Delegates are urging Congress to pass the Trade Reform, Accountability, Development and Employment Act to resolve problems in existing agreements and establish fair parameters for any future trade agreements. Delegates urged support for cooperative efforts among nations to end the race to the bottom. Delegates said the failed free trade agenda has opened domestic markets to cheap, often low-quality food, fuel and fiber products and damaged the nation’s trade balance.
As for the farm bill, NFU delegates outlined several specific requests, including the expeditious issuance of program rules and regulations for the Supplemental Agricultural Disaster Assistance and Average Crop Revenue Election programs, increasing the Milk Income Loss Contract program payment percentage, timely implementation of conservation programs, oversight of stakeholders as they voluntarily implement stricter COOL rules and promotion of renewable energy programs, among many others.
NFU delegates also voiced their support of U.S. dairy farmers – asking Congress and the Administration to take all appropriate actions to sustain family dairy farmers through the current period of economic uncertainty. They also called on policy makers to consider the unique challenges facing rural America when debating policy solutions to the nation’s health care system.
**************************************************************
“USTR Nominee Testifies”
In the middle of the global economic crisis, world trade has taken its steepest plummet in 80 years. Trade is considered to be a key to economic recovery. At the same time the Obama administration appears to be taking a harder line with America's trading partners. It will seek new benchmarks before supporting already-written trade agreements with Colombia and South Korea and is suggesting that it will dig in its heels on global trade talks, demanding that other countries make broader concessions first.
The President’s nominee as U.S. Trade Representative, Ron Kirk, says he believes in trade and will work to expand it, but also knows not all Americans are winning from it and U.S. trading partners are not always playing by the rules. Kirk spoke during his confirmation hearing before the Senate Finance Committee.
During the hearing, Montana Senator Max Baucus said - our consensus to advance international trade is frayed. Our faith in the international trading system is badly shaken. Kirk disclosed - I do not come to this job . . . with deal fever. We're not going to do deals just to doing them.
*************************************************************
“Clean Water Act Case Still In Dispute”
The Charlie Johnson family has been farming the same land, about 50 miles south of Boston, Massachusetts, since 1920. Five years ago a court fined the Johnsons 75-thousand dollars and ordered more than one-million dollars in mitigation costs. These fines were levied after Charlie and his son Van shored up some cranberry bogs on their land and built some new ones – without seeking federal approval. The Pacific Legal Foundation is defending the Johnsons.
Lead attorney Ted Hadze-Antich says the assault on Charlie Johnson, led by the Environmental Protection Agency, is a - misuse of the Clean Water Act, and is part of a government effort to use the Act to regulate, potentially, every local pond, puddle, or ditch on private property. Attorneys charge the EPA is violating a 2006 Supreme Court ruling that said the Clean Water Act applied only to land where federal regulators could show a direct flow of water from the land to a navigable river, lake, or ocean.
Hadze-Antich says federal regulators - have offered no credible evidence of any environmental harm whatsoever from Charlie’s cranberry farming. PLF attorney Damien Schiff says the Johnson’s are - the canary in the coal mine. If federal regulators are allowed to be a law unto themselves, ignoring legal limits on their power, the Johnsons won’t be the last victims. Schiff says - all landowners and homeowners will be at risk, sooner or later.
**************************************************************
“Researchers Helping Jordanian Farmers Use Water Wisely”
Agricultural Research Service scientists and cooperators in Jordan have teamed up to develop ways to better manage efficient use of water in crop production. One collaboration has led to the installation of a research instrument known as a "weighing lysimeter," an underground device that measures how much water plants use. Sweet corn was grown in the first field tested in 2008.
Researchers say the lysimeter has the ability to very accurately measure plants' water use, when use occurs, and in terms of how plants respond to weather changes. By combining that information with how much ground is covered by each crop's leafy canopy and local weather data, scientists can tell Jordanian farmers how much water each crop will need in this arid and water-scarce region.
**************************************************************
Plans have been announced to begin the development of a broadband initiative, under the American Recovery and Reinvestment Act. This initiative will result in the deployment of high-speed internet service in rural and unserved communities. Public meetings will be held from March 16-24. During those meetings interested parties will be asked to comment on the Broadband Technology Opportunities Program and the RUS grants and loans program established by the ACT. This initiative is being coordinated by the U.S. Departments of Agriculture and Commerce and the Federal Communications Commission.
Each of these meetings will feature a roundtable discussion and an opportunity for public comment. Each meeting will be webcast as part of the effort to broaden public input. The March 17 meeting will be held in Las Vegas, Nevada, with the following day's meeting scheduled for Flagstaff, Arizona. Officials say the public meetings are an important part of the agencies' efforts to move quickly to implement the Act's Broadband Initiatives.
The request for information also seeks comment on the creation of a national broadband map. Comments will be received up to 30 days after publication of notice in the Federal Register. Comments may be submitted via the Web, email or mail. Commenters are strongly encouraged to file via the website (www.ntia.doc.gov/broadbandgrants). Anyone without internet access will have to quickly submit their comments via the U.S. Mail. Otherwise, their submissions may not be heard because of delivery delays of up to two weeks due to mail security procedures.
**************************************************************
“NFU Meeting Closes with New President”
The newly elected National Farmers Union President is Roger Johnson. The North Dakota Agriculture Commissioner defeated Pennsylvania Farmers Union President Larry Breech to succeed Tom Buis. Johnson will resign his North Dakota Commissioner’s position. Congressman Earl Pomeroy said – North Dakota’s loss is truly Farmers Union’s gain.
In his acceptance speech Johnson called NFU the leading voice that will be heard on Capitol Hill with the Administration and members of Congress when it comes to agriculture policy. Johnson’s election came at the close of the annual National Farmers Union Membership meeting in Washington, D.C on Tuesday.
During the meeting - attendees heard from an outstanding line-up of policy makers, including Speaker of the House Nancy Pelosi and Ag Secretary Tom Vilsack. Topics such as renewable fuels, the farm bill, COOL, carbon sequestration, fair trade, market oversight, nutrition and health care were covered.
************************************************************
“NFU Members Take Actions”
National Farmers Union members want the Obama Administration and Congress to pursue fair trade policies that acknowledge the changes in the agriculture landscape in the past ten years. NFU members also want USDA to implement the programs in the 2008 Farm bill as congress intended.
Delegates are urging Congress to pass the Trade Reform, Accountability, Development and Employment Act to resolve problems in existing agreements and establish fair parameters for any future trade agreements. Delegates urged support for cooperative efforts among nations to end the race to the bottom. Delegates said the failed free trade agenda has opened domestic markets to cheap, often low-quality food, fuel and fiber products and damaged the nation’s trade balance.
As for the farm bill, NFU delegates outlined several specific requests, including the expeditious issuance of program rules and regulations for the Supplemental Agricultural Disaster Assistance and Average Crop Revenue Election programs, increasing the Milk Income Loss Contract program payment percentage, timely implementation of conservation programs, oversight of stakeholders as they voluntarily implement stricter COOL rules and promotion of renewable energy programs, among many others.
NFU delegates also voiced their support of U.S. dairy farmers – asking Congress and the Administration to take all appropriate actions to sustain family dairy farmers through the current period of economic uncertainty. They also called on policy makers to consider the unique challenges facing rural America when debating policy solutions to the nation’s health care system.
**************************************************************
“USTR Nominee Testifies”
In the middle of the global economic crisis, world trade has taken its steepest plummet in 80 years. Trade is considered to be a key to economic recovery. At the same time the Obama administration appears to be taking a harder line with America's trading partners. It will seek new benchmarks before supporting already-written trade agreements with Colombia and South Korea and is suggesting that it will dig in its heels on global trade talks, demanding that other countries make broader concessions first.
The President’s nominee as U.S. Trade Representative, Ron Kirk, says he believes in trade and will work to expand it, but also knows not all Americans are winning from it and U.S. trading partners are not always playing by the rules. Kirk spoke during his confirmation hearing before the Senate Finance Committee.
During the hearing, Montana Senator Max Baucus said - our consensus to advance international trade is frayed. Our faith in the international trading system is badly shaken. Kirk disclosed - I do not come to this job . . . with deal fever. We're not going to do deals just to doing them.
*************************************************************
“Clean Water Act Case Still In Dispute”
The Charlie Johnson family has been farming the same land, about 50 miles south of Boston, Massachusetts, since 1920. Five years ago a court fined the Johnsons 75-thousand dollars and ordered more than one-million dollars in mitigation costs. These fines were levied after Charlie and his son Van shored up some cranberry bogs on their land and built some new ones – without seeking federal approval. The Pacific Legal Foundation is defending the Johnsons.
Lead attorney Ted Hadze-Antich says the assault on Charlie Johnson, led by the Environmental Protection Agency, is a - misuse of the Clean Water Act, and is part of a government effort to use the Act to regulate, potentially, every local pond, puddle, or ditch on private property. Attorneys charge the EPA is violating a 2006 Supreme Court ruling that said the Clean Water Act applied only to land where federal regulators could show a direct flow of water from the land to a navigable river, lake, or ocean.
Hadze-Antich says federal regulators - have offered no credible evidence of any environmental harm whatsoever from Charlie’s cranberry farming. PLF attorney Damien Schiff says the Johnson’s are - the canary in the coal mine. If federal regulators are allowed to be a law unto themselves, ignoring legal limits on their power, the Johnsons won’t be the last victims. Schiff says - all landowners and homeowners will be at risk, sooner or later.
**************************************************************
“Researchers Helping Jordanian Farmers Use Water Wisely”
Agricultural Research Service scientists and cooperators in Jordan have teamed up to develop ways to better manage efficient use of water in crop production. One collaboration has led to the installation of a research instrument known as a "weighing lysimeter," an underground device that measures how much water plants use. Sweet corn was grown in the first field tested in 2008.
Researchers say the lysimeter has the ability to very accurately measure plants' water use, when use occurs, and in terms of how plants respond to weather changes. By combining that information with how much ground is covered by each crop's leafy canopy and local weather data, scientists can tell Jordanian farmers how much water each crop will need in this arid and water-scarce region.
**************************************************************
Tuesday, March 10, 2009
Tuesday's Headlines
“Vilsack Announced Stimulus Funding”
USDA has announced its first actions implementing the 28-billion dollars provided in the American Recovery and Reinvestment Act of 2009. In making the announcement, Ag Secretary Tom Vilsack said, - USDA will have a significant impact not only in rural communities but in communities across the country struggling with today's tough economic times.
One portion includes funds being handed out by the Farm Service Agency. FSA will use immediately 145-million dollars for its Direct Operating Farm Loan Program. Those direct loans will go to 2,042 farmers – almost 50% are beginning farmers and 10% are socially disadvantaged producers. These loans will be used to purchase items such as farm equipment, feed, seed, fuel and other operating expenses and will stimulate rural economies by providing American farmers funds to operate.
And the Natural Resources Conservation Service will release up to 145 - million dollars to restore frequently flooded land to its natural state; create jobs in rural communities nationwide when landowners establish these floodplain easements; as well as restore and protect an estimated 60-thousand acres of flood-prone lands nationwide through the floodplain easement component of its Emergency Watershed Protection Program. Signup for the easements is now underway.
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“First E. Coli Vaccine for Cattle Licensed”
Epitopix is the first ever E.coli 0157 vaccine to receive USDA Approval. The product license is conditional while additional potency and efficacy studies are completed. However, USDA is allowing Epitopix to make the vaccine and make it immediately available for use by the beef industry. E. coli O157 Bacterial Extract is the first immunological weapon available to the industry in the battle against this food safety concern.
The new vaccine is labeled for use in cattle to reduce the prevalence of the E. coli O157 carrier state and for reduction in the amount of E. coli O157 shed in feces to minimize exposure and infection of herd-mates. According to Epitopix General Manager Jim Sandstrom, our product - represents a significant breakthrough in the beef industry's on-going effort to reduce E. coli O157.
E. coli O157 is a Gram-negative bacterium known to exist in the gastrointestinal tract of outwardly healthy, normal cattle. These bacteria do not cause disease in cattle, but when the cattle are harvested, E. coli O157 bacteria can sometimes find their way into ground beef. Proper cooking easily kills the bacteria, but in cases where beef may be inadequately cooked, serious human disease can occur, especially in children, the elderly or in individuals with a compromised immune system.
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“New Coalition Lobbied Congress”
The Coalition for a Prosperous America lobbied Congress last week on the need to reverse the United States’ skyrocketing trade deficit. CPA consists of agricultural, manufacturing and labor interests which collectively seek reform of U.S. trade policy. R-CALF USA is a founding member.
William Bledsoe, a Colorado rancher, says, we urged Congress to immediately require all imports – including food and manufacturing components – to strictly meet U.S. standards and to take immediate steps to end the ongoing practice of currency misalignment.
Bledsoe says our trade policies - allow products into the United States that are only equivalent to U.S. standards. He points out - this ‘equivalent’ standard means it can be different than our U.S. standard, and that is why we’re importing unsafe food and other substandard products into our country.
R-CALF USA Co-Founder Herman Schumacher, who feeds cattle in South Dakota, said R-CALF USA’s new partnership with manufacturing interests raised more than a few eyebrows in Congress.
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“Harkin Backs Ethanol Industry Request”
Iowa Senator Tom Harkin applauds the recent request by members of the ethanol industry to the Environmental Protection Agency to authorize the blending and use of up to 15 percent ethanol in gasoline supplies. Under present regulations, only flex-fuel vehicles are authorized to use gasoline containing more than 10 percent ethanol. With total ethanol production rapidly approaching 10 percent of annual gasoline sales, this limitation is beginning to constrict ethanol markets and limiting the use of this clean domestic biofuel.
Harkin asked EPA to - move forward expeditiously with a positive ruling. The Senate Ag Chairman noted, - this waiver is necessary to open ethanol markets and enable us to stay on a path towards decreasing the use of petroleum-based fuels and increasing the use of alternative biofuels produced from domestic resources.
**************************************************************
“Grassley Addresses NFU Convention”
The way that wind projects have typically been financed is through tax equity financing, where an investor puts up money to build the wind project and in return gets to use the tax credits to offset its income taxes. In prepared remarks to the National Farmers Union Convention Monday Iowa Senator Chuck Grassley pointed out - many of the investors in these projects were large banks, such as Lehman and AIG, and these banks no longer have tax liabilities because they have no income. Therefore, according to Grassley, projects were stalled due to a lack of financing.
In the stimulus bill, there is a provision that allows wind companies to elect an investment tax credit that is equal to 30 percent of their investment in the wind project. Also, to deal with the fact that the tax equity financing market has dried up, wind companies can trade in their tax credits for grants from the Treasury Department. This allows these wind projects that were previously stalled to go forward, and for many good jobs to be created.
In recent weeks and months, a new phrase has been born that has gained popularity and support. The new phrase that is so in vogue in the halls of Congress and at the White House is “green jobs.” Everyone wants to create “green collar jobs.” But Grassley wondered – are the domestic ethanol and biodiesel industries included? The U.S. renewable fuels industry has been creating good-paying jobs in rural America for years.
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“New NPPC Officers Elected”
New officers were elected to lead the National Pork Producers Council on Saturday. Don Butler, director of government relations and public affairs for Murphy-Brown LLC – the livestock production subsidiary of Smithfield Foods Incorporated, was elected president. Sam Carney, a pork producer from Adair, Iowa, was named president-elect. And Doug Wolf, a producer from Lancaster, Wisconsin, was named vice president. Each will serve one year terms.
NPPC CEO Neil Dierks said of the new president, Don Butler, - Don has been a strong leader in the U.S. pork industry and brings the unique perspective of a government relations-public affairs professional to dealing with the challenges our industry faces.
The president-elect, Sam Carney, is owner and operator of Carney Farms Inc., which he runs with his son Randy. For more than 20 years, Carney has served in various pork industry leadership positions, including as president of the Iowa Pork Producers Association.
Doug Wolf, the new NPPC vice president, is a partner in Wolf L & G Farms LLC, with his wife Kris and son Shannon. All three officers have served on the NPPC board of directors for the past three years.
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“Documentary to Air on Animal Cruelty”
Remember the undercover video footage out of Ohio showing animals receiving cruel treatment? Home Box Office will be running a documentary beginning next Monday night called; “Death on a Factory Farm.” It appears in that show much of the same footage will be used. HBO’s promotion video shows several people reacting negatively to the cruelty with only one person defending the hog industry.
Producers last week at the annual Pork Industry Forum talked about the possibilities of what the show might reveal. The documentary is based on a video taken by the Humane Farming Association, an animal rights group.
Steve Weaver, president of the National Pork Board, says our detractors and special interest groups have begun to focus on specific production practices and to challenge our industry on our commitment to animal care.
*************************************************************
USDA has announced its first actions implementing the 28-billion dollars provided in the American Recovery and Reinvestment Act of 2009. In making the announcement, Ag Secretary Tom Vilsack said, - USDA will have a significant impact not only in rural communities but in communities across the country struggling with today's tough economic times.
One portion includes funds being handed out by the Farm Service Agency. FSA will use immediately 145-million dollars for its Direct Operating Farm Loan Program. Those direct loans will go to 2,042 farmers – almost 50% are beginning farmers and 10% are socially disadvantaged producers. These loans will be used to purchase items such as farm equipment, feed, seed, fuel and other operating expenses and will stimulate rural economies by providing American farmers funds to operate.
And the Natural Resources Conservation Service will release up to 145 - million dollars to restore frequently flooded land to its natural state; create jobs in rural communities nationwide when landowners establish these floodplain easements; as well as restore and protect an estimated 60-thousand acres of flood-prone lands nationwide through the floodplain easement component of its Emergency Watershed Protection Program. Signup for the easements is now underway.
***********************************************************
“First E. Coli Vaccine for Cattle Licensed”
Epitopix is the first ever E.coli 0157 vaccine to receive USDA Approval. The product license is conditional while additional potency and efficacy studies are completed. However, USDA is allowing Epitopix to make the vaccine and make it immediately available for use by the beef industry. E. coli O157 Bacterial Extract is the first immunological weapon available to the industry in the battle against this food safety concern.
The new vaccine is labeled for use in cattle to reduce the prevalence of the E. coli O157 carrier state and for reduction in the amount of E. coli O157 shed in feces to minimize exposure and infection of herd-mates. According to Epitopix General Manager Jim Sandstrom, our product - represents a significant breakthrough in the beef industry's on-going effort to reduce E. coli O157.
E. coli O157 is a Gram-negative bacterium known to exist in the gastrointestinal tract of outwardly healthy, normal cattle. These bacteria do not cause disease in cattle, but when the cattle are harvested, E. coli O157 bacteria can sometimes find their way into ground beef. Proper cooking easily kills the bacteria, but in cases where beef may be inadequately cooked, serious human disease can occur, especially in children, the elderly or in individuals with a compromised immune system.
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“New Coalition Lobbied Congress”
The Coalition for a Prosperous America lobbied Congress last week on the need to reverse the United States’ skyrocketing trade deficit. CPA consists of agricultural, manufacturing and labor interests which collectively seek reform of U.S. trade policy. R-CALF USA is a founding member.
William Bledsoe, a Colorado rancher, says, we urged Congress to immediately require all imports – including food and manufacturing components – to strictly meet U.S. standards and to take immediate steps to end the ongoing practice of currency misalignment.
Bledsoe says our trade policies - allow products into the United States that are only equivalent to U.S. standards. He points out - this ‘equivalent’ standard means it can be different than our U.S. standard, and that is why we’re importing unsafe food and other substandard products into our country.
R-CALF USA Co-Founder Herman Schumacher, who feeds cattle in South Dakota, said R-CALF USA’s new partnership with manufacturing interests raised more than a few eyebrows in Congress.
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“Harkin Backs Ethanol Industry Request”
Iowa Senator Tom Harkin applauds the recent request by members of the ethanol industry to the Environmental Protection Agency to authorize the blending and use of up to 15 percent ethanol in gasoline supplies. Under present regulations, only flex-fuel vehicles are authorized to use gasoline containing more than 10 percent ethanol. With total ethanol production rapidly approaching 10 percent of annual gasoline sales, this limitation is beginning to constrict ethanol markets and limiting the use of this clean domestic biofuel.
Harkin asked EPA to - move forward expeditiously with a positive ruling. The Senate Ag Chairman noted, - this waiver is necessary to open ethanol markets and enable us to stay on a path towards decreasing the use of petroleum-based fuels and increasing the use of alternative biofuels produced from domestic resources.
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“Grassley Addresses NFU Convention”
The way that wind projects have typically been financed is through tax equity financing, where an investor puts up money to build the wind project and in return gets to use the tax credits to offset its income taxes. In prepared remarks to the National Farmers Union Convention Monday Iowa Senator Chuck Grassley pointed out - many of the investors in these projects were large banks, such as Lehman and AIG, and these banks no longer have tax liabilities because they have no income. Therefore, according to Grassley, projects were stalled due to a lack of financing.
In the stimulus bill, there is a provision that allows wind companies to elect an investment tax credit that is equal to 30 percent of their investment in the wind project. Also, to deal with the fact that the tax equity financing market has dried up, wind companies can trade in their tax credits for grants from the Treasury Department. This allows these wind projects that were previously stalled to go forward, and for many good jobs to be created.
In recent weeks and months, a new phrase has been born that has gained popularity and support. The new phrase that is so in vogue in the halls of Congress and at the White House is “green jobs.” Everyone wants to create “green collar jobs.” But Grassley wondered – are the domestic ethanol and biodiesel industries included? The U.S. renewable fuels industry has been creating good-paying jobs in rural America for years.
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“New NPPC Officers Elected”
New officers were elected to lead the National Pork Producers Council on Saturday. Don Butler, director of government relations and public affairs for Murphy-Brown LLC – the livestock production subsidiary of Smithfield Foods Incorporated, was elected president. Sam Carney, a pork producer from Adair, Iowa, was named president-elect. And Doug Wolf, a producer from Lancaster, Wisconsin, was named vice president. Each will serve one year terms.
NPPC CEO Neil Dierks said of the new president, Don Butler, - Don has been a strong leader in the U.S. pork industry and brings the unique perspective of a government relations-public affairs professional to dealing with the challenges our industry faces.
The president-elect, Sam Carney, is owner and operator of Carney Farms Inc., which he runs with his son Randy. For more than 20 years, Carney has served in various pork industry leadership positions, including as president of the Iowa Pork Producers Association.
Doug Wolf, the new NPPC vice president, is a partner in Wolf L & G Farms LLC, with his wife Kris and son Shannon. All three officers have served on the NPPC board of directors for the past three years.
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“Documentary to Air on Animal Cruelty”
Remember the undercover video footage out of Ohio showing animals receiving cruel treatment? Home Box Office will be running a documentary beginning next Monday night called; “Death on a Factory Farm.” It appears in that show much of the same footage will be used. HBO’s promotion video shows several people reacting negatively to the cruelty with only one person defending the hog industry.
Producers last week at the annual Pork Industry Forum talked about the possibilities of what the show might reveal. The documentary is based on a video taken by the Humane Farming Association, an animal rights group.
Steve Weaver, president of the National Pork Board, says our detractors and special interest groups have begun to focus on specific production practices and to challenge our industry on our commitment to animal care.
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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.
*************************************************************
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.
*************************************************************
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