Friday 27th January 2012

Closing Grain and Livestock Futures: January 29, 2010

March corn closed at $3.56 and 1/2, down 5 and 1/4 cents
March soybeans closed at $9.14, down 17 and 3/4 cents
March soybean meal closed at $273.80, down $7.80
March soybean oil closed at 36.15, unchanged
March wheat closed at $4.74, down 13 cents
February live cattle closed at $85.80, up 15 cents
February lean hogs closed at $66.50, down 27 cents
March crude oil closed at $72.89, down 75 cents
March cotton closed at 69.03, down 11 points
February Class III milk closed at $14.05, down 8 cents
Dow Jones Industrial Average: 10,067.33, down 53.13 points

MO farmer attends Clean Energy Forum

Major General Paul Eaton, US Army RetiredA clean energy conference in Washington, DC this week drew a wide range of supporters for energy and climate legislation. Missouri Farmers Union Board Chairman Richard Oswald was one of those invited by Clean Energy Works to attend the 2010 Clean Energy, Jobs and Security Forum conference, co-hosted by National Farmers Union.  Oswald says people from all walks of life attended the conference including Iraq and Afghanistan war veterans, retired generals, faith-based organizations, Labor, and wind energy representatives.

Oswald tells Brownfield that as a farmer, and member of the Farmers Union, he supports a carbon trade system that all farmers stand to benefit from, “We can’t be for biofuel, we can’t be for ethanol, biodiesel, cellulosic if we don’t support this idea of regulating carbon because that’s our home base.”

Oswald says the Farmers Union looks at it this way – carbon sequestration is a natural for farmers, “And if this country can adopt that kind of legislation then untilled stalks, untilled cornstalks, untilled soybean fields are going to be worth $20, maybe as much as $40 an acre because we can trade that carbon on the Carbon Exchange (Chicago Carbon Exchange – CCX). And I’ve been doing that on my farm for three or four years through National Farmers Union who is the largest carbon sequester in the United States right now.”

He says agriculture has to be willing to be a part of this, “If we agree with big industry and big oil that carbon doesn’t need to be regulated then we are agreeing with big industry and big oil that we don’t need ethanol and we don’t need biofuels. But what’s hurting us is we don’t have any kind of legislation that supports that and so we can’t sell our carbon as well as all the carbon on the rest of the world market can sell.”

If nothing’s done, Oswald says, “big oil will supply our needs” and asks, “at what price to the environment and at what price to consumers?”

As a corn farmer, Oswald says his cost of growing corn doubled a couple of years ago just because of the cost of oil and the associated expenses. He says, “We’re gonna have prices go up and it’s not going to happen as a result of this legislation, it’s just gonna happen as a result of how the markets work sometimes. But, we can turn these things to our advantage and I think when a Republican Senator like Lindsey Graham can take hold of something like that, and say that, I think that that means that there are some in the country who aren’t being realistic about their position on this.”

Oswald says cap and trade likely won’t pass this year but is hoping that at least an energy bill will be passed. However, he says there are so many “ill informed” people who have a “knee-jerk reaction” to the whole idea that there’s not much of an appetite to move it forward this year.

AUDIO: Richard Oswald, Missouri Farmers Union Board Chairman, (8 min., MP3)

Clean Energy Conference

Chicago Climate Exchange

National Farmers Union

Standards boards and preaching to the choir

Commentary

There are two issues that have been keeping me on the telephone and answering email all week. They are: Since Ohio set up a Livestock Standards Board, shouldn’t all states follow suit? And, secondly, proactive, pro-farmer advertising and information campaigns are popping up and folks are hearing/reading about them in the ag press. Isn’t that good news?

The first one is admittedly tough. The short answer is this: What worked for Ohio farmers and ranchers in their campaign to beat back the Humane Society of the U.S. (HSUS) and what’s best for the farmers and ranchers of Ohio, may not be the best route for your state to take.

Remember: Ohio had a perfect storm of political, public opinion and resources come together that led to its stunning victory in 2009. The aggie-led coalition did its homework, expended the necessary dollars and shoe leather, and was able to put together a formula which works for Ohio.

The problem with every state jumping onto the standards board bandwagon is consistency between and among states. Laws and regulations in the area of animal care and treatment vary from state to state, but this has never been an impediment to commerce. However, an official division of a state, dealing with the particular and peculiar authorities, challenges and other variables, could begin to threaten that interstate balance the folks across the border or across the country aren’t setting the same or at least similar standards.

Second, there’s a kind of  unspoken assumption that if correctly defined and constructed, a state standards board will always be a pro-ag kind of arbiter of care and treatment issues.  There’s no guarantee over time this will happen as the politics of states shift along with the population and industry of the state. The most you can hope for is that any state standards board is mandated to use the science of animal husbandry and solid common sense when standards are to be set and/or interpreted.

Keep in mind other states have been as creative as Ohio, but have not adopted standards boards. For instance, in Oklahoma, there’s new law that holds only the state legislature has authority over standards of livestock and poultry care and treatment — no referenda, either state or local, can usurp that authority. In Arizona, the state legislature passed a bill last year mandating all chickens raised in egg production must be raised in accordance with United Egg Producer guidelines on care, housing, handling and so forth.

A standards board approach to livestock care and handling is a classic example of “Be careful what you ask for, because you may get it.”  The key to avoiding stupid legislation in any state is to make sure you’ve got the support of not only your traditional champions, but those urban folks who are logical targets for groups like HSUS.  Ensure all members of your state legislature understand — and I mean really understand — what it means to mess with animal agriculture in your state, not just for farmers and ranchers, but what the “unintended consequences” of bad legislation will mean to food prices for every state legislator’s voting consumer. 

As to new public information campaigns designed to educate consumers, reminding them of the professional, caring men and women who produce their food, these efforts are to be loudly applauded.  But there may be a problem.

If folks only hear these campaigns on farm radio, and don’t see/hearing these adverts as often on mainstream radio and TV, or read them in daily newspapers and general interest and magazines, then we may be fall prey to one of our blunders of the past, namely talking to ourselves, not to the general consumer out there who I’m guessing doesn’t subscribe to Feedstuffs, Hoards, or Pork  or routinely listen to Agri-Talk.   It’s akin to say, the National Pork Board only pitching the other white meat in Des Moines.  Not the best use of the checkoff or advertising dollar. 

I’m excited these campaigns are beginning to emerge.  Let’s make sure our messages are consistent, each campaign echoing the messages of the others, sometimes with a twist, but always on page.  These campaigns —  and I haven’t seen all of them –  show great promise, are the foundation of an emerging movement of proactive farmers and ranchers.   We just have to ensure we’re pitching to the right audience, not just preaching to the choir.

Environmental issues are NCBA’s top priority

Climate change legislation and regulation, dust and ammonia regulation and the Clean Water Restoration Act—those environmental issues will be a top priority for NCBA in Washington in 2010.  Brownfield’s Ken Anderson and Stewart Doan of Agri-Pulse interviewed Colin Woodall, vice president of government affairs for NCBA.

Brownfield coverage of the Cattle Industry Convention is sponsored by:

AUDIO: Colin Woodall (12 min MP3)

NCGA president talks ethanol, climate change and more

One of the speakers at the annual Wisconsin Corn/Soy Expo this week was National Corn Growers Association president Darrin Ihnen. The South Dakota farmer talked about a number of the issues that the NCGA is dealing with starting with the ethanol industry. “It’s kind of a mixed bag,” says Ihnen, “we think we are going to get higher blends which would be a huge benefit for the ethanol industry but then you’ve got this cloud hanging over us with the indirect land use, the corn ethanol versus sugar ethanol in that advance biofuels non-advance biofuels arena so there are a lot of issues to work through.” But he quickly adds the higher blend rate would be a move in the right direction. Another positive for corn ethanol these days is given the record crop out there, the food-versus-fuel debate has subsided but now the indirect land use argument has come up. “If you look at the amount of corn that has gone into ethanol production over the last 20 years, we have produced more corn in total than what has gone into ethanol.” He says unfortunately, people do not look at the science in this.

As NCGA president, Ihnen spends a lot of time in Washington D.C. and he says while they lost a lot of friends in the last election, “The move towards agriculture is coming back.” The organization is part of a corn coalition which is working to get information into the hands of Congressional staffers to educate them.

One of the big issues on their agenda is climate change legislation, Ihnen says while they recently came out in opposition to the House version of the bill they remain neutral on the Senate bill. He says the biggest problem they have with cap-and-trade is the possibility of reforestation, “You can’t expect to take good, productive land out of production.” He says what growers really want in climate change is “a focus on conservation issues and focus on renewable fuels like ethanol to solve the problems.” Like many in agriculture, Ihnen fears any legislation which would put U.S. farmers at a disadvantage on the world market.

AUDIO: listen to Darrin Ihnen’s comments

Midday cash livestock markets

Barrows and gilts in the Iowa/Minnesota direct trade opened 2.43 lower at 61.77 on a carcass basis, the West is down 2.49 at 61.57 and the East is 2.49 lower at 62.28. The Missouri direct base carcass meat price is steady from 59.00 to 60.00. Processors are cautious in the face of slumping product sales. Furthermore buyers have been relatively successful this week in gathering slaughter numbers. Industry sources feel packers will start out Monday with plenty of live inventory.

Cattle country is relatively quiet, following the active trade in Nebraska yesterday. Dressed deals ranged from 135.00 to 136, $2.00 lower than last week. Business is essentially done in that area. The South remained quiet due to nasty winter weather. Private sources report bids in Kansas at 84.00, asking prices in the South are 87.00 to 88.00. Choice boxed beef is .58 higher at 140.63, and select is 1.05 higher at 137.76.

Feeder cattle receipts at Missouri auctions totaled 39,770 head this week. Compared to last week steers and heifers trended mostly steady, with a few offerings selling on either side of steady, ranging from 1.00 to 2.00 higher to 1.00 to 2.00 lower. Feeder steers medium and large 1 and 1 to 2 weighing 500 to 600 pounds brought 87.50 to 120.00, 5 to 6 weight heifers from 80.00 to 105.00.

CattleFax discusses outlook for 2010 and beyond

Cattle and beef prices are expected to average slightly higher in 2010 than they did in 2009.  And, while profits should improve, they will remain thin for cow-calf operators and cattle feeders.  Those are two of the predictions made by CattleFax experts during their 2010 Outlook Seminar in San Antonio.  As the seminar conluded, CattleFax executive vice president Randy Blach summarized the current situation and discussed the long-term outlook for the industry.

Brownfield coverage of the Cattle Industry Convention is sponsored by:

AUDIO: Randy Blach (11 min MP3)

Iowa pork congress completes successful run

This year’s Iowa Pork Congress in Des Moines saw lower attendance but several exhibitors told Brownfield they were very pleased with the contacts they made and sales that were completed. One exhibitor said this was his best year ever as producers that did attend were serious buyers and most were interested in products that would make their operations more efficient.

At the awards banquet on Wednesday evening Mike and Sarah Ver Steeg of Inwood were named the 2009 Pork All Americans, the master Seedstock Producer award went to Doug and Pricilla England of Clearfield, the 2009 Environmental Steward award was presented to brothers Peter and Araron Juergens of Ranch Creek finishing site at Dedham. Eldon McAfee a Des Moines Attorney, and Aaron Putze of the Coalition to Support Iowa Farmers were named Honorary Master Pork Producers. Eleven producers were introduced as 2009 Master Pork Producers.

John Weber of Dysart assumed the presidency of the Iowa Pork Producers Association (IPPA) earlier in the week at the annual meeting of the association. Weber told Brownfield helping producers return to profitability will be his number one goal.

Weber says economic recovery will be the biggest challenge for pork producers this year. He also expects state regulatory challenges, and the state’s budget concerns could impact agriculture. On the federal   level, Weber says antibiotic regulation, Cap and Trade and free trade agreements will be key issues in 2010.

Pork producer delegate body named

Appointments to the 2010 National Pork Producers delegate body have been announced by Agriculture Secretary Tom Vilsack. Appointed to serve a one-year term, delegates will be seated during the National Pork Industry Forum in March in Kansas City. Those appointed include:

Alabama: Luther Bishop, Joseph C. Hall

Alaska: Patricia R. Worrell, Richard C. Worrell

Arizona: Elizabeth J. Beck, Michael D. Terrill

Arkansas: Steve C. Stephan, K. Brad Vines

Colorado: Brett B. Rutledge, Keith A. Siemsen

Delaware: Henry C. Johnson, IV, John B. Tigner, Jr.

Florida: Ricky Lyons

Georgia: Glenn Derochers, Dania S. DeVane

Hawaii: Wayne I. Shimokawa, Evelyn A. Telles

Idaho: Thomas A. Goodwin, Bradley K. Thornton

Illinois: Phillip J. Borgic, David L. Conrady, David D. Dedert, Michael E. Haag, Brent E. Scholl, Mark L. DeDecker

Indiana: Randy Curless, Emiley D. Gaskill, Nathan D. Hedden, Michael S. Lewis, Samuel D. Moffitt, Mark R. York

Iowa: Timothy J. Schmidt, Mark Meirick, Bryan K. Karwal, David D. Struthers, Stephen J. Burgmeier, Joel D. Van Gilst, Heather Lindberg-Hora, Rodney G. Dykstra, Howard T. Hill, Chad R. Keppy, Steven L. Kerns, Gregory R. Lear, Curtis D. Meier, David E. Moody, Oliver E. Moody, Dale G. Reicks, Marvin J. Rietema, Jamie M. Schmidt, Max S. Schmidt, Norman R. Schmitt, Gregory J. Schroeder, Leon C. Sheets, Derrick D. Sleezer, Scott W. Tapper, Bill J. Tentinger, Donald H. Toale, Eugene D. VerSteeg, John E. Vossberg, John P. Weber, Todd A. Wiley

Kansas: Kent F. Condray, Alan J. Haverkamp, Peter K. Sherlock, Michael L. Springer

Kentucky: Dennis O. Liptrap, John S. Medley, Jr.

Louisiana: Rebecca D. Luke-Lirette, Louis J. Lirette

Maine: Barrett A. Parks, Deena A. Parks

Maryland: Thomas G. Hartsock, Charles T. Linthicum, Jr.

Massachusetts: Lisa D. Colby

Michigan: Fred H. Walcott, Patrick M. Hunter, Edward L. Reed

Minnesota: Dustin Bakke, William L. Crawford, Pamela M Gierke, Curtis J. Johnson, Craig A. Mensink, James F. Merritt, Mary Lynn Peichel, Douglas B. Stade, Patrick E. Thome, Jacqueline S. Tlam, Timothy A. Waibel, Douglas K. Wenner

Mississippi: Ronnie K. Fagan, Charles R. Power

Missouri: Scott W. Phillips, Robert L. North, Scott G. Hays, William D. Kessler

Montana: Donald L. Herzog, John W. Rauser

Nebraska: Dennis L. Beethe, Greg L. Wortman, Brett M. Wilke, Troy D. McCain, Shane C. Meyer

Nevada: Becky A. Louk, David S. Louk

New Hampshire: Donna Abair, Jennifer L. Lamper New Jersey: Salvatore J. Villari

New York: Bryan L. Schillawski, Sandra L. Hartman

North Carolina: Neill D. Westerbeek, Timothy H. Craig, Zack McCullen, III, L. Benjamin Outlaw, III, George H. Pettus, Gregory A. Sconyers, M. Todd See, E. Ray Summerlin, Jr., Janet C. Archer, David D. Herring, James L. Lamb

North Dakota: Todd E. Erickson, Craig J. Jarolimek

Ohio: Jim L. Albaugh, Michael J. Barhorst, Alan J. Evers, James R. Heimerl

Oklahoma: Lonnie C. Hoelscher, Joe C. Popplewell, Basil S. Werner, Karen D. Brewer,

Oregon: Wynn H. Mayfield, Kathy S. Mayfield

Pennsylvania: David A. Reinecker, Oscar J. Manbeck, Jeffrey D. Arner South Carolina: Larry B. DeHart, John R. Harris South Dakota: John D. Wipf, Ryan C. Storm, Laron R. Krause

Tennessee: James G. Weaver, Brandon M. Whitt

Texas: H. Melton Harms, Jason D. Pooley

Utah: Ryan Goff, James W. Webb

Virginia: Keith D. Allen, B. Ryan Horsley

Washington: Karrie L. Klingeman, Paul M. Klingeman, Sr.

Wisconsin: Deborah L. Gay, Robert G. Spurley

Wyoming: Ana L. Shmidl, Krisha N. Custis

NCBA Weighs a Change in Governance Structure

The NCBA is taking a look at how it governs itself and how it can best work for cattle producers.  David Dick, Region Three Vice President for the Federation of State Beef Councils, explains the process that has taken place at the 2010 Cattle Industry Convention and how the proposal may affect the long-term operation of the organization.

Brownfield coverage of the Cattle Industry Convention is sponsored by:

 David Dick, Region Three Vice President for the Federation of State Beef Councils