Friday 27th January 2012

NEFB concerned with latest EPA herbicide proposal

Nebraska soybean and dry edible bean growers could lose the use of a critically important herbicide under proposed EPA restrictions to protect endangered plants and animals. 

That warning comes from Nebraska Farm Bureau environmental specialist Craig Head.  Head says the EPA is proposing new rules for the use of fomesafen, the active ingredient in herbicide products Flexstar, Flexstar GT, Reflex and Prefix.  He says the primary concern with EPA’s draft proposals on fomesafen are the large buffer areas that would be required between crops treated with the herbicide and areas designated as critical habitat for endangered species.  He says that EPA established the buffers using spray drift modeling that tends to over-predict how far spray is deposited. 

Farm Bureau is urging EPA to re-examine its buffer recommendation and to involve the state department of agriculture and farmers before making a final decision.  Unless it revises the buffer proposal, Head says, EPA will unnecessarily restrict and complicate the use of fomesafen, in his words “making its use impractical at best.”

Head says farmers need to be able to choose among multiple chemical weed control products.  This is especially important because of growing concern that certain weeds are developing resistance to the widely used chemical, glyphosate, used in Roundup herbicide.

According to Farm Bureau, 86 percent of soybean acres nationwide would face restrictions under the EPA proposal.  Soybean growers in 60 Nebraska counties would be affected.

Recruiting students to Purdue’s College of Agriculture

Nearly 2500 students are enrolled this year in the College of Agriculture at Purdue University. How does the Purdue College of Agriculture recruit students? There’s probably no one better to ask, than the Dean of Purdue Agriculture, Jay Akridge.

AUDIO: Jay Akridge, Dean, Purdue College of Agriculture (3:00 MP3)

Who is standing for you and who is against?

Commentary

A recent Sunday morning television news program featured congressmen from both “sides of the aisle.”  Neither lawmaker has been listening to Americans.  They are both too busy doing what is best for their respective political careers.

Friends, you have the opportunity to make a difference. Make a call. Send a letter. Send an email. And most importantly – the next time an election comes around, remember who stood for you and who stood against you.

AUDIO

Farm Progress Show opens Tuesday

What’s billed as the nation’s largest outdoor farm event opens Tuesday. The Farm Progress Show is northeast of Decatur, Illinois, and features more than 500 exhibitors displaying farm equipment, tractors, combines and farm implements, as well as seed and crop protection products, and many additional farm supplies and services.Ag manufacturers and suppliers from across the country and around the world participate and field demonstrations are a big part of the show.

Live cattle handling demonstrations include the newest cattle chutes, equipment, animal health products and work techniques. Additionally, the show features restored antique machinery, horse training demonstrations and entertainment. The show also includes a wide variety of marketing, management and production seminars.

The 2009 Farm Progress show is September 1 through 3, from 8:00 a.m. to 5 p.m. Tuesday and Wednesday and until 4 p.m. Thursday.

Admission at the gate is $10 for adults, $5 for ages 13 to 17. Additional information is at www.FarmProgressShow.com.

For more photos from the 2009 Farm Progress Show, click here

What caused Class III milk futures to drop?

Cash cheese on the Chicago Mercantile Exchange held steady for the second day in a row on Wednesday and Class III futures dropped as much as 37-cents. Dave Kurzawski with Downes & O’Neill says after running-up for three sessions last week, Class III futures consolidated on Monday and Tuesday then backed-off on Wednesday in reaction to a very active cheese market. There were 22 loads of cheese sold on Wednesday, 10 barrels and 12 blocks but all at the market prices. “The fact is, they didn’t push the market down,” says Kurzawski pointing to two uncovered offers, one for barrels at $1.38 and one for blocks at $1.39, the same as the market.

“We had been carrying a premium to the spot market,” he adds so the “One-day move down” just brought the futures more in line with the cash market. So is this an indication the cash cheese price has topped-out? Kurzawski says he thinks it is, “too early to call that type of situation.”

He does suggest that commercial buyers take advantage of breaks like this. 

AUDIO: Dave Kurzawski talks about the market 2:40

Cattle lower as traders wait for direct cash trade: August 26, 2009

Chicago Mercantile Exchange live cattle futures were lower on the premium to cash, the lower corn and traders waiting for widespread cash business. Spread trade, mainly out August/December, was an additional feature, along with October/December and October/February spreads. Still, traders seem at least a little optimistic about cash business thanks to the recent higher boxed beef trend and generally smaller showlists. August was down $.37 at $85.07 and October was $1.37 lower at $87.37.

Feeders were lower on sell stops, spillover from live cattle and position squaring ahead of August’s expiration. Losses were somewhat limited by the weakness in corn. August was $.15 lower at $99.80 and September was down $.67 at $99.30.

Direct cash cattle markets remained fairly quiet. Asking prices were firm at $85 to $86 in the South and $135 to $137 in the North with bids at $82 on the live basis and $130 to $131 on the dressed basis. Significant widespread activity isn’t expected until Thursday or Friday. The USDA did report light mixed steer/heifer trade in Nebraska at $83 and $131. Boxed beef was steady to firm with the Choice up $.62 at $144.35 and Select $.03 higher at $137.02 on light demand and offerings. The estimated cattle slaughter of 126,000 head was down 2,000 from last week and 1,000 lower than last year.

Hogs were lower on profit taking, technical selling, sell stops and demand concerns ahead of the Labor Day weekend. October and December both fell through what had been support and December had additional pressure from spreads with October and February. Deferreds found additional pressure from the lower corn and bean meal. October was down $1.25 at $47.05 and December was $1.70 lower at $45.40.

Bellies were lower on demand concerns and profit taking. August expired unchanged at $49 and February was down $2.00 at $76.45.

Direct hog markets were weak to lower with processors fairly well covered in the term. The Eastern Cornbelt was down $.05 with a weighted average of $43.85, the Western Belt was $.15 lower at $45.73 and Iowa/Southern Minnesota was down $.41 at $45.40. Butcher hogs at the terminals were steady to $3 higher with tops at $26 to $35.50. Missouri Direct butchers were steady with a top at $44. The pork carcass cutout was down $.32 at $56.05. The estimated hog slaughter of 421,000 head was 7,000 below a week ago and 14,000 less than a year ago.

World Dairy Expo Woman of the Year takes issue with TIME

World Dairy Expo’s 2009 Dairy Woman of the Year wasted no time in letting TIME magazine know what she thought about their cover story on the real cost of cheap food. Daphne Holterman and her husband own and operate Rosy-Lane Holsteins, an 850-cow dairy CAFO at Watertown, Wisconsin. She fired this statement to the editors of TIME:

With disgust — and laughter — I read The Real Cost of Cheap Food. It’s rubbish. As a food producer for 51 years, I know what goes on every hour of every day of every month and every year on our farm. It’s a far cry from what this cover story contends. How about interviewing some real farmers (unlike Niman Ranch, which has a CEO) and visiting some real farms in the heartland of America? Work on our family dairy farm, which just happens to be a CAFO, is hardly monotonous and soul-killing as our teen daughters, young partner and employees would tell you, had you bothered to ask. Our door on the farm is always open to visitors with an open mind. Consumers deserve better reporting than this.

Daphne Holterman
2009 World Dairy Expo Woman of the Year

Rosy-Lane is one of the best dairy herds in Wisconsin, they have received numerous awards including National Jaycees Outstanding Young Farmers. The farm hosts tours constantly and they are involved in various organizations and efforts both farm and non-farm related. Holterman says they have been a CAFO for more than seven years, they are a family farm and they love their animals and they love to take care of them.

AUDIO: Daphne Holterman talks about her CAFO 3:30

Corn, beans down modestly on weather, crude oil: August 26, 2009

Soybeans were modestly lower on speculative and technical selling, along with profit taking and outside market direction. The dollar was higher, while the Dow was narrowly mixed during futures trade and crude oil was lower. Weather continues to look generally non-threatening over the near term, but there are concerns about the possible cooler than normal weather this weekend. Soybean meal was mixed with nearbys up on the tight supply as crushers their slow activity and deferreds lower, following beans. Soybean oil was lower on the lower beans and crude oil. The U.S. Census Bureau’s July crush numbers are out Thursday at 7 AM Central with the crush pegged at 126.8 million bushels, bean oil stocks seen at 3.160 billion pounds and meal stocks placed at 364,000 short tons. The USDA’s weekly export sales report is due out Thursday at 7:30 AM Central with beans placed at 750,000 to 1.6 million tons, meal seen at 50,000 to 20,000 and oil pegged at 5,000 to 20,000 tons. About a year after their last strike, Argentina’s farmers plan to go on strike from August 28 to September 4 following President Christina Fernandez’s line item veto that would have given tax and tariff relief to some farmers in Buenos Aires province.

Corn was lower, mostly down fractionally, on technical selling, profit taking and the lower beans. The fairly non-threatening weather is also a negative for corn. However, development remains behind average and this weekend is expected to be cooler than normal, which limited losses. There’s a freeze in the forecast for parts of Canada, but as of midweek, it’s not expected to stretch into the U.S. In any event, traders will continue to keep an eye on weather and the potential effects on what could be a record U.S. corn yield. Ethanol futures were mixed with nearbys up and deferreds lower. South Korea’s Nonghyup Feed bought 110,000 tons of U.S. corn from ADM with half at a $1.7288 premium over the March 2010 CBOT contract and half at a $1.7388 premium to the same contract. Taiwan bought 60,000 tons of corn from Brazil. South Africa’s Crop Estimates Committee pegs 2008/09 corn production at 11.64 million tons, up from initial projections thanks to a better than expected harvest. Weekly U.S. corn sales are estimated at 750,000 to 1.2 million tons.

The wheat complex was higher on short covering and technical buying. The fundamentals remain negative, but selling interest has declined since contracts tested their winter lows, so it looks like wheat may have put in its low for the time being. However, traders want to make sure they don’t price U.S. wheat back out of the export market. For the second week in a row, Egypt bought U.S. wheat, picking up 60,000 tons of soft red winter, along with 60,000 tons from Russia. European wheat was mixed on a lack of farmer selling and slow demand; November Paris was down 1.3% and November London was up .5%. Belarus’ Ag Ministry states that as of August 26, the 2009 grain harvest totaled 8.06 million tons with around 93% of the planted area harvested. Weekly wheat sales are expected to be between 300,000 and 500,000 tons.

El Nino could affect Platte River system recovery

The Platte River reservoir system in Nebraska and Wyoming had big gains in the last year.  However, this season’s snow pack will make all the difference if that recovery continues. 

That’s the word from Nebraska state climatologist Al Dutcher, who says the strength of the developing El Nino weather event will determine how much runoff there will be in 2010. 

“When you start to look at El Nino events in the past, what we have found is that the southern half of the Rockies tends to be the area where we have normal to above-normal snow pack,” Dutcher says, “and the farther north you go, the more likely you are to see a sub-par snow pack.” 

Current Platte River reservoir storage, which includes the McConaughy Reservoir in Nebraska and three large reservoirs in Wyoming, is at two-point-six million acre feet.   That compares to two-point-two million acre feet last year at this time.  At full capacity, the four reservoirs hold four-point-five million acre feet. 

“Our concern is that we’ve seen two really good years of recovery, and if we have a sub-par snow pack this coming spring with our normal releases or demands by irrigators, we’re going to see a net decrease in the overall reservoir situations as we head through the growing season next year,” Dutcher says. 

Dutcher says late season snowfalls in El Nino years depend on whether the system dies down or disappears.  He says weather models predict a 70 percent chance that El Nino will continue through April of 2010.

 Al Dutcher (3 min MP3)

 University of Nebraska news release

Closing Grain and Livestock Futures: August 26, 2009

September corn closed at $3.20 and 1/2, down 1 cent
September soybeans closed at $10.90 and 1/2, down 1/2 cent
September soybean meal closed at $363.00, up $5.00
September soybean oil closed at 36.46, down 8 points
September wheat closed at $4.78 and 3/4, up 7 and 3/4 cents
August live cattle closed at $85.07, down 37 cents
October lean hogs closed at $47.05, down $1.25
October crude oil closed at $71.43, down 62 cents
October cotton closed at 55.37, down 60 points
September Class III milk closed at $12.70, down 34 cents
Dow Jones Industrial Average: 9543.52, up 4.23 points