Confidentiality is major NAIS concern

The 14th and final National Animal Identification System (NAIS) listening session was held just outside of Omaha Tuesday.  As with previous sessions, there was very little support for a mandatory program.

One of the major objections to NAIS is confidentiality.   Ken Pruismann of Rock Valley, Iowa, president of the Iowa Cattlemen’s Association, says it’s a big concern with his group’s members.

“Under a Freedom of Information Act request, USDA cannot guarantee that the animal ID database could be protected,” says Pruismann.

Michael Kelsey, executive vice president of the Nebraska Cattlemen’s organization, says his group supports having disease surveillance held and controlled by private industry, for the protection of producer information.

“Since disease surveillance is the reason for an animal ID system,” Kelsey says, “there is no reason for government to control the data or for producer information to be made available to companies, groups or individuals.”

Of the approximately two dozen people who offered comments at the Omaha listening session, only two spoke firmly in favor of mandatory national animal ID.  One of those was Bill Luckey, cattle and hog producer from Columbus, Nebraska.

“Until the animal identification is made mandatory and all premises are registered,” says Luckey, “it will never have the intended effects of improving the animal health infrastructure, and aiding in the control and eradication of highly contagious foreign and domestic animal diseases.”

Many speakers argued that current disease control and eradication programs are working well. Rancher and Grant County commissioner Dan Vinton of Whitman, Nebraska says a mandatory program is not wanted or needed in his area of western Nebraska.  He says the Grant County commissioners have even passed a resolution opposing mandatory animal ID.

“This onerous, expensive and ultimately ineffective program is not necessary,” says Vinton. “Please let the states and market-based solutions resolve this issue.”

Neil Hammerschmidt, a NAIS coordinator with the USDA, says Secretary of Agriculture Vilsack and his staff will now begin the arduous task of reviewing the listening session comments and discussing how best to proceed.

“There are certainly different perspectives on the program,” Hammerschmidt says, “As we look at the issue from a disease response capability, there is support from the majority of producers that, in fact, we want to protect our livestock and poultry from disease issues. The discussion maybe is, what is the best solution-what’s the appropriate solution.”           

Sampling of comments from the Omaha NAIS listening session (22 min MP3)

Neil Hammerschmidt (3 min MP3)

Obama says Rural Tour begins Wednesday

The Obama administration begins a Rural Tour tomorrow, July 1st, focusing on existing government programs and those newly put in place. Over the coming weeks and months – the President says top administration officials – including Cabinet Secretaries – will fan out across the country to hold a series of discussions on how to strengthen rural America. “We recognize that there’s not going to be any one-size-fits-all to strengthening rural communities because they’re vastly different across the country. And that’s why we want to hear directly from people so we can start tailoring things to particular communities,” says President Obama.The President says his administration wants to hear about programs that are working and those that aren’t working in rural areas.

The tour begins Wednesday in Pennsylvania where Vice President Joe Biden and Ag Secretary Tom Vilsack will hold a discussion about rural broadband. President Obama says his administration is also focused on rural development, conservation, rural health and education, energy efficiencies and renewable energy supplies.

Tour stops are also planned in Alaska, Louisiana, Nebraska, New Mexico, North Carolina, Ohio, Virginia and Wisconsin.

Beef export challenges differ from Japan to Korea

A delegation of beef and corn producers from Nebraska and Iowa maintain that there are different challenges for beef export market growth in Japan and South Korea.

Following a trade mission to those countries, Thedford, Nebraska rancher David Hamilton says Japanese consumers are ready for U.S. grain-fed beef if the governments of Japan and the United States can agree on access issues. He sees a difference, however, in the South Korean situation.

“The greatest challenge I see in Korea is the lack of consumer acceptance based on food safety,” Hamilton said in an interview provided by the U.S. Meat Export Federation. “There’s still many perceptions among Korean consumers that U.S. beef is not safe.”

Meanwhile, Winfield, Iowa corn grower Merle Unkritch says it’s important that the U.S. remain committed to the Korean market if there’s to be any expectation of beef export growth there.

“It’s an absolute must because there’s 50 million people over here and we’ve got all kinds of opportunities if we can just change the attitude and mind,” said Unkritch at the conclusion of the trade mission.

The mission ended with a U.S. Meat Export Federation-sponsored beef barbeque outside a large Korean discount store.

Corn mostly $.30 lower on USDA numbers: June 30, 2009

Soybeans were mostly lower on old crop/new crop spread trade, technical selling and spillover from corn. The USDA’s planted acreage estimate was a little smaller than the average pre-report guess, but still a new record, up modestly from March and 2% above a year ago. Quarterly stocks were larger than expected, but are still much tighter than normal, which supported the July contract. Overall, a lot’s going to depend on late planting and weather. Soybean meal was mostly higher on the tight nearby demand and overall greater demand than bean oil. Bean oil was lower on that product spread activity and the sharply lower crude oil. USDA reported that China bought 113,000 tons of U.S. soybeans for 2009/10 delivery.

Corn was mostly limit down on profit taking, fund selling and technical weakness. USDA’s planted acreage estimate was larger than expected, up from March and 1% more than a year ago. To say that was a surprise following the wet spring would probably be an understatement, but after crunching the numbers and consulting with analysts and economists, the increase is due to larger planting in marginal acreage and the lower input costs. Between that implied increase in production, forecasts for good growing weather in the near term and larger than expected quarterly stocks, there wasn’t much that could have helped corn. Allendale’s David Kohli expects Tuesday’s lower trade to carry over into the overnight activity and Wednesday’s day trade. Ethanol futures were lower.

The wheat complex was lower on fund and technical selling, in addition to the drop in corn. The USDA numbers pretty much just confirmed the bearish fundamentals for wheat. All wheat acreage is down 5% from a year ago, winter wheat was down 6% and while the spring wheat projection was 3% below last year, it was above the average pre-report estimate. Quarterly stocks were down from the average pre-report guess but up 118% from June 1, 2008 on the slowdown in demand for the ample U.S. supplies. U.S. wheat continues to command a hefty premium to competing exporters. European wheat was lower on the bearishness of the USDA numbers; November Paris was down 3% and November London was 2.6% lower. Japan’s Ag Ministry issued a tender for 108,000 tons of wheat and Taiwan Flour Mills is tendering for 82,350 tons of U.S. wheat.

June Dairy Month not kind to the industry this year

June dairy month was not exactly kind to the industry this year; cash cheese barrels lost .25 cents while blocks slipped 3.75 cents for the month. The June Class III futures lost 30 cents, July dropped $1.15 per cwt, August fell $1.98, September tumbled $2.36 and December lost $1.34.

The June base milk price will be announced on Thursday, it is expected to be down 20 cents from the May price to average $11.40 per cwt. California producers will see their base price 13 cents lower at $10.40 per cwt tying the Golden State with Idaho and Utah for the lowest price. Wisconsin’s base price should be $11.50, down a dime from May. New York and Pennsylvania will see a 40-cent decline in their base price, Idaho, New Mexico and Washington will see their prices hold steady from a month ago.

This round of the Dairy Export Incentive Program expired on Tuesday, Daily Dairy Report says for the month; bonuses were awarded for the export of 44.1 million pounds of nonfat dry milk, 4.1 million pounds of butterfat and 335,000 pounds of cheese. Most of that will be shipped in the next couple of months.

Outside market bearishness is negative to live cattle contracts: June 30, 2009

Chicago Mercantile Exchange live cattle contracts settled 15 to 210 points lower on bearishness in the outside markets along with profit taking. The June contract was down the most and expired at noon. Sharply lower corn values added additional pressure to the deferred contracts. June went off the board at 82.52 down 2.10 and August was down .15 at 85.25. Boxed beef cutout values were generally steady on moderate demand and offerings. Choice boxed beef was down .16 at 139.37, and select was .04 lower at 133.11

Feeder cattle closed 10 to 110 points higher on support from higher prices at early week feeder auctions. Lower corn values were also supportive. August was up 1.10 at 102.82, and September was up .10 at 101.80.

Feeder cattle receipts at the Joplin Regional Stockyards, Joplin, MO on Monday totaled 5238 head. Compared to last week calves trended steady to 2.00 lower and yearlings were steady to 2.00 higher. Feeder steers medium and large 1 and 1-2 weighing 500 to 600 lbs traded from 94.00 to 112.00, 7 to 8 weights from 94.00 to 103.74. Feeder heifers weighing 500 to 600 lbs brought 85.00 to 100.00 and 7 to 8 weights from 86.00 to 94.25 per hundredweight.

Tuesday’s cattle slaughter was estimated at 130,000 head, 1,000 more than last week, and 2,000 greater than a year ago.  Feedlot trade was inactive on Tuesday with business expected to be delayed until Wednesday or Thursday. Feeders had been looking for higher prices this week based on Monday’s higher futures; today’s futures action may change their expectations. Asking prices are generally 84 to 85 South where there were a few bids at 81.00 according to private sources. Feedlot operators in the North are asking 133 to 135.

Hog slaughter was estimated at 417,000 head, 5,000 more than last week, but 13,000 less than last year. Barrows and gilts at the terminals trended steady to an instance of .50 higher from 33 to 41 on a live basis. Missouri direct base carcass meat price closed steady to 1.00 lower from 48.00 to 53.00. Iowa/Minnesota barrows and gilts closed .25 lower at 56.58 on a carcass basis, the West was unchanged at 57.23, and the East was .17 lower closing at 54.26. Processing and producer margins remain poor, but apparently not bad enough for packers to cut chain speed over country offerings. DTN’s John Harrington says sow prices seem to be leveling off a bit, still softening but at a lower rate. Tuesday’s market is expected to remain steady to weak.

Lean hogs settled mixed, from 202 higher to 220 points lower with the July 2009 through February 2010 contracts showing gains. Deferred months were in the red partly due to the losses in the corn market. The nearby’s found support from end of the month and end of the quarter position squaring as traders close the books on the last trading day of June. July was up .65 at 58.67, and August settled 2.02 higher at 60.65. Pork trading was slow to moderate, with very light to light demand and mostly moderate offerings. The lean carcass cutout was down 1.72 at 54.05.

Pork bellies closed lower.  July bellies were down 1.70 at 54.30 and August was down 1.75 at 55.70.

Closing Grain and Livestock Futures: June 30, 2009

July corn closed at $3.47 and 3/4, down 29 and 1/4 cents
July soybeans closed at $12.26 and 1/4, up 11 and 1/4 cents
July soybean meal closed at $412.30, up 90 cents
July soybean oil closed at 35.02, down 76 points
July wheat closed at $5.11 and 1/4, down 17 and 1/4 cents
June live cattle closed at $82.52, down $2.10
July lean hogs closed at $58.67, up 65 cents
August crude oil closed at $69.89, down $1.60
July cotton closed at 53.30, up 44 points
July Class III milk closed at $10.07, unchanged
Dow Jones Industrial Average: 8,447.00, down 82.38 points

Nebraska’s 1st round of bovine TB tests negative

Nebraska Ag Director Greg Ibach says all TB test results were negative in the first week of testing for the ongoing bovine tuberculosis case. In the first week of testing, from June 15th through 21st, Ibach says an estimated 1,700 head of cattle showed no signs of infection. Another 3,300 cattle were tested last week and those results are pending. Ibach says he appreciates the cooperation his department is getting from producers with quarantined herds and the help his agency is getting from USDA personnel.

The investigation began when a cow in a Rock County herd tested positive for bovine TB on June first. A second cow from that herd later tested positive. Ibach says it’s important to remember that no cow in any other herds have tested positive.

As of Sunday, 43 herds have been quarantined in 14 Nebraska counties.

Nebraska Department of Agriculture

Keeping an eye on moisture levels in soil

Darren Barker, Pioneer Area Agronomist for Southeastern Nebraska tells Brownfield corn looks good for the most part and the soybeans have good color and are starting to really grow.  Barker reminds farmers to be sure to check the moisture level in the soil to make sure crops are getting the proper amount.  If need be, farmers should irrigate to add moisture to the soil. 

AUDIO: Darren Barker

Michael Jackson tribute in butter at Iowa State Fair

The world famous Iowa State Fair butter cow will share the spotlight this year with a salute to the late Michael Jackson. Both pieces will be on display in the Agriculture Building’s 40-degree cooler throughout the fair, August 13 to 23.

Fair officials announced on Tuesday that Butter sculptor Sarah Pratt of West Des Moines plans to honor Jackson’s extensive contributions to the music and dance industries through a butter sculpture of the pop icon. This year’s butter bovine will be a Jersey.

Jackson appeared with his brothers as the Jackson Five at the 1971, Iowa State Fair.