Friday 27th January 2012

Farmers leave money on the table

Water Street Solutions Market Advisor Chip Nellinger says agricultural producers typically miss income or savings opportunities effectively “leaving money on the table.” As 2009 draws to a close, his advice is to assess where either money can be made or money can be saved in the areas of production, crop insurance, marketing and financial discipline. For farmers working the land, he says the combination of these can amount to hundreds of dollars an acre.

Water Street Solutions Market Advisor Chip Nellinger

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Another strong week for soybean export inspections

It was another solid week for soybean export inspections. Soybean inspections for the week ending December 24 were larger than expected, as were corn inspections, but wheat was below pre-report estimates. Inspections of soybeans were above what’s needed weekly to meet USDA projections for the 2009/10 marketing year while corn and wheat fell short of their respective marks.

Wheat came out at 10.653 million bushels, down 2.732 million from the week ending December 17 but up 6.084 million from the week ending December 25, 2008. So far this marketing year, 2009/10 wheat export inspections are 478.523 million bushels, compared to 656.783 million in 2008/09.

Corn was reported at 27.081 million bushels, 8.226 million higher than the previous week and 3 million above a year ago. At this point in the current marketing year, corn inspections are 509.822 million bushels, compared to 517.036 million this time last year.

Soybeans were pegged at 51.915 million bushels, 18.186 million more than the prior week and an increase of 18.366 million from last year. For the marketing year to date, soybean inspections are 656.572 million bushels, compared to 496.365 million a year ago.

Sorghum inspections totaled 2.034 million bushels. That’s 878,000 bushels under the week before but 801,000 above a year ago. 2009/10 sorghum inspections are 53.012 million bushels, compared to 53.963 million in 2008/09.

Reducing greenhouse gas emissions

Tom Gallagher, Dairy Management Inc. says an agreement announced between the USDA and the Innovation Center for U.S. Dairy will work to identify numerous projects that can help the dairy industry achieve their greenhouse gas reduction goals as well as increase its financial and environmental sustainablility.

AUDIO: Tom Gallagher, DMI (3:00 MP3)

Top ag stories make Brownfield Year in Review

2009 demanded patience. Not only are there lingering contentious issues, such as the embattled National Animal Identification System and the climate change issue, but corn was too high in moisture to harvest and fields were too wet to navigate. Still, those who got their corn and soybeans out are justifiably pleased with their yields.

Tom Vilsack became the U.S. Agriculture Secretary shortly after the inauguration of President Obama. Dairy producers faced a crisis resulting from low markets and high production costs. Pork producers learned the meaning of financial difficulty from a virus, a human virus that could not seem to shake its misnomer.

Meanwhile, activists bent on ending animal agriculture continued their efforts at passing restrictive ballot measures. But Ohio voters took their own initiative, which is considered a victory for livestock and poultry growers in that state.

A hero of the Revolution died this year, the Father of the Green Revolution is credited with saving billions of lives. Norman Borlaug’s work and his humility continued well into his tenth decade. These and other ag stories, including voices of the newsmakers, are part of Brownfield’s 2009 Year in Review.

Brownfield Year in Review segment 1

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Brownfield Year in Review segment 2

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Brownfield Year in Review segment 3

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Christmas wish

Commentary

Merry Christmas!

A friend of mine shared a Christmas wish with me that bears repeating:

John wrote, “How great it would be if the urban voter could know that on Christmas Day – the day they are sitting by the fire with a pet in their lap or by their side – the day they have taken off work for this biggest holiday – you and hundreds like you will feed and care for your livestock before you take off to sit by the fire and enjoy the holiday.

Even on this the biggest holiday of the year you will take care of your animals first.

How great that message would be.

Hundreds of good people will feed and care for animals in shelters on Christmas day without any help from HSUS.

How great a message – if only it would get out – but that takes big money. Money we are not willing to spend.”

Neither my friend nor I am suggesting that any of you has $113 million in coffee cans buried in your back yard. (I use that figure because that is the amount of money HSUS spent in 2009 fighting against modern animal agriculture in this county.) Certainly agriculture organizations across this country are no longer ignoring threats to animal agriculture in this country made by “anti” groups like HSUS and PETA, but there is not yet a unified effort. We are fragmented and thus ineffective against the mega-dollars and army of HSUS volunteers.

My Christmas wish is that we reach across state lines and species, political parties and religious denominations to tell the true story of agriculture. Animal rights and environmental activists will tell your story for you if you fail to stand together and speak out.

Rise up, people. Work together.

That is my Christmas wish for you and for the next generation of family farmers in this country.

From my family to yours – Merry Christmas!

Wrapping up 2009, planning for 2010

In a “normal” year, farmers have some time at the end of the year to reflect on the past growing season and to start planning for next year.  But 2009 has been anything but normal.  Brownfield’s Ken Anderson visited last week with Scott Richert, who farms near Gresham in east-central Nebraska, and asked him what he was focused on.

MFP for 12-25-09

NFU praises Senate health care action

National Farmers Union president Roger Johnson commending the U.S. Senate for passing health care reform legislation Thursday morning. The bill now goes to the conference committee for reconciliation with the House version. Johnson says he hopes the final bill includes the so-called public option contained in the House package. NFU also would like to see and end to the antitrust exemption for health insurance companies, the ability for self-employed individuals to deduct their health care costs as a business expense before calculating their self employment tax and additional financial help for low and middle income families to purchase health insurance.

Johnson says, “Quality, affordable health care coverage is a moral imperative—a human right—and we cannot wait any longer for change.”

Vilsack implements SURE

Ag Secretary Tom Vilsack has implemented the new Supplemental Revenue Assistance Payments (SURE) program for producers who suffered crop losses in the 2008 crop year.

SURE provides payments to eligible farmers who have crop production or quality losses based upon crop insurance coverage, certain farm program payments and total farm revenue. To be eligible, producers must have suffered at least a 10 percent production loss on a crop of economic significance and meet the minimum crop insurance or NAP coverage. Producers did have an opportunity to waive the insurance coverage requirement through a buy-in provision for 2008 crops. Eligible crop losses must be in a county that was declared a primary disaster county or contiguous county by the Ag Secretary.

Further details are available from the FSA website or your local Farm Service Agency office. Applications will be accepted at your local FSA starting January 4th.

The cheese spread narrows

Cash cheese blocks slipped another 2.25 cents on the Chicago Mercantile Exchange during a shortened session on Thursday. So that much-feared 27-cent barrel-to-block spread quickly narrowed to 12.75 cents. After dropping on Wednesday, Class III futures actually regained a little on Thursday.

Should be a rather interesting few days for milk processors. With schools closed down for the holidays, more milk is available for manufacturing but the big winter storm moving through the Midwest and Northeast is bound to disrupt the supply flow.

Dairy producers sent 208,900 dairy cows to slaughter in November, that is 1,000 more than during November of 2008 but 18,000 less than went to market in October. 70,300 came out of the upper Midwest, 62,200 out of the West. From January through November, 2.584 million dairy cows have gone to slaughter, 222,000 more than the first 11 months of 2008. Just under 790,000 were out of the upper Midwest while 775,000 came from the West.

The USDA Foreign Ag Service says cheese imports for the first 11 months of 2009 totaled 183.1 million pounds. That is about 7 percent above the same period in 2008. Imports of high-tier cheese, that which is above quota and with a penalty, 21.1 million pounds. Down 26 percent from the first 11 months of 2008.

Dairy Market News says European milk production has hit its seasonal low. Most countries are running below previous year levels although German production is nearly 2 percent above last year. Prices for European dairy products are lower in recent months. A weak Euro compared to the dollar, good supplies and light demand contributing to the decline.

Milk production in Australia and New Zealand is declining seasonally. New Zealand production is running about 1-1.5 percent above last season…which is below the predicted 2-3 percent increase. Australian milk production is running 5 percent below a year ago. Some processors report supply gaps.

Futures markets lightly traded ahead of the holiday

Live cattle contracts settled 7 to 62 points lower on profit taking in light volume and position evening ahead of the long holiday break.  December settled 20 points lower at 83.07, and February was down 62 at 84.75.

Feeder cattle ended the early session lower pressured by profit taking and pre Christmas positioning. Higher corn values and the weakness in the live pit contributed to the losses. January settled 82 points lower at 94.62, and March was down 135 at 93.82.

Slaughter cattle traded early this week because of the holiday and the major winter storm in parts of feedlot country. Live cattle sold .50 to 1.00 higher in Kansas and Texas while Nebraska sold cattle 1.00 to 2.00 higher live and 4.00 more on the rail. In the Midwest direct markets live basis steers and heifers traded from 81.00 to 82.00, and dressed at 132.00. Plains direct markets sold cattle at 82.00 t0 83.50. Slaughter cattle on a negotiated basis for cash trades through Wednesday afternoon totaled 134,386 head. Last week’s movement totaled 130,597. Given this week’s cash success, look for the new show lists to be priced several dollars higher, 85 plus in the South and 135 to 136 plus in the North. Thursday’s cattle slaughter was estimated at 56,000 head, 68,000 less than last week, no comparison with last year as it was Christmas. Boxed beef cutout values were generally steady on light demand and light to moderate offerings. Choice boxed beef was .28 lower at 138.35, and selct was .01 higher at 131.07.

Barrows and gilts in the Iowa/Minnesota direct trade closed .24 higher at 59.36 on a carcass basis, the West was down .14 at 59.48, and the East was .67 lower at 58.88. Missouri direct base carcass meat price closed steady from 52.00 to 57.00. Hog slaughter was estimated at 201,000 head, 230,000 less than last week, last year was a holiday. Movement in hog country was quite limited on Wednesday, and today it appears to be about the same or even slower. If anyone tried very hard to find a buyer today, some packer would probably oblige with a lower bid. Finishing floors are becoming increasingly current. Iowa barrows and gilts last week averaged 267.4 pounds, 1.1 pounds lighter than the previous week and only .3 pounds heavier than 2008.

Lean hogs settled 35 to 187 points lower pressured by profit taking and pre Christmas positioning, Volume was predictably light with considerable time passing between trades. February settled at 63.87 down 187 points and April was 177 lower at 68.35. Pork trading was very slow, with mostly light demand and light to modeerate offerings. Pork carcass value closed .03 lower at 67.89.

Pork bellies for February settled 25 points lower at 87.65.