Wisconsin FSA extends sign-up period

A notice from the Wisconsin Farm Service Agency to farmers who suffered livestock, honey bee, farm-raised fish or feed losses due to adverse weather, wolf depredation or honey bee colony collapse disorder in 2008 or 2009. You may be eligible to receive benefits through the USDA Farm Service Agency Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program.

The application filing deadline for qualifying losses has been extended through May 5, 2010. Details are available at your local Farm Service Agency office or at the FSA website.

China may be in market for more U.S. corn

China’s rare purchase of 4.5 million bushels of U.S. corn this week has prompted speculation about whether it could be a trend. Despite China’s strong production gains, the U.S. Grains Council says that nation’s agricultural output is outpaced by demand. In addition to that, China’s economic growth has likely encouraged them to open their market to corn imports. USDA grains analyst Jerry Norton offers another possible reason.

“Prices for corn in China domestically are very high,” said Norton, in an interview provided by the USDA. “One issue could well be that the crop last year was smaller than people had thought.”

There are also planting delays this year in China, and purchases of dried distillers grains indicate they have more livestock to feed. But Norton says there’s another theory that has been reported this week.

“Some indications are that these are just tests to see if they can bring GMO corn into the country and how the [Chinese] government will deal with that,” said Norton. 

The U.S. Grains Council says their sources suggest six additional cargos of U.S. corn amounting to as much as 11.8 million bushels may have already been booked for China delivery.

A little more in the milk check this month

Dairy producers should see a little more in the milk check this month. The base milk prices for Class III and Class IV production in April were a little higher than March while the Class II price was a bit lower. For April, Class II base is $13.78 per hundredweight, 68 cents less than the March price. The Class III base is 14 cents higher at $12.92 while the Class IV price is up 81 cents at $13.73. Component prices per pound are: $1.5813 for butterfat; $2.1449 for protein; $.9435 for nonfat solids; $.1702 for other solids.

Prices are much better than they were a year ago, Class II is $3.29 higher than April of 2009, Class III is up $2.14 and Class IV is $3.91 higher.

Overall it was a pretty good week for dairy markets. Very limited activity pushed cash cheese blocks up 2 cents on the week while barrels gained 3.25 cents per pound. The Class III futures responded with some nice gains from May through August although the fourth-quarter futures slipped a bit.

White says atrazine review “politically driven”

A number of farm groups traveled to Washington, DC this week to voice their support for the widely used herbicide atrazine.  Jere White, chairman of the Triazine Network and director of Kansas Corn Growers and Kansas Grain Sorghum Producers, testified that extensive studies show atrazine is safe. He also questioned what he called the EPA’s “politically driven second guessing.” White pointed out the EPA’s 12 year review of triazine herbicides, including atrazine that was released in 2006 showing no harm posed to the general population.  White added that he hopes the scientific objectivity and high standards leading EPA to register atrazine as safe in the past will continue.

TIME releases Top 100 Most Influential People

A few people involved in agriculture are among TIME Magazine’s Top 100 Most Influential People of 2010. The list includes controversial film producer Michael Pollan, who vilifies modern farming methods in his documentary “Food, Inc.”  TIME cites Pollan’s consideration of “the ethical bonds that connect our bodies, farms and food.”

EPA Administrator Lisa Jackson was included on the list according to TIME for her “defense of citizen’s rights to fresh air, clean water, and a stable climate.” She has been involved with the EPA for 16 years and was appointed to EPA Administrator by President Obama in 2009.

USDA Deputy Secretary Kathleen Merrigan is recognized for promoting community gardens and local food, while also supporting conventional farming and biotechnology.

Temple Grandin, autistic since birth, makes TIME’s list for her work in developing handling systems that reduce livestock stress. TIME acknowledges that Grandin’s condition led her in the development of these designs.

Will Allen maintains a two-acre urban farm in the middle of Milwaukee, Wisconsin, raising plants, vegetables, small animals, and bees to give everybody access to – in Allen’s words – healthy, affordable food.

No one from production agriculture made the cut.

TIME Magazine

Farm profit margin narrowed a bit in April

The Preliminary All Farm Prices Received Index for April decreased 1.4 percent from March. The National Ag Statistics Service says the Crop Index was down 2 percent and the Livestock Index slipped 0.8 percent. Prices were higher for cattle, hogs, soybeans and onions. Lower for eggs, strawberries, broccoli and lettuce. Farm prices are up 7 percent from April of last year.

Corn averaged $3.51 per bushel in April, down 4 cents from March and 34 cents below last April. The average price for soybeans was $9.48 up 9 cents from March and 31 cents below a year ago. The all-wheat price was $4.69, down a penny from the previous month and $1.06 per bushel below last April. The all-hay price increased a dollar from last month to $109 per ton which is $17 below last year. Cotton averaged 63.5 cents per pound, down 1 cent from March but 18.8 cents above last April.

The April hog price gained $1.40 from March to $53.60 per hundredweight in April. That is $9.60 above April of 2009. Cattle prices are $11.60 more than a year ago and $4.90 above a month ago at $95.40 per hundred in April. Broilers are down a penny from last month at 48 cents per pound while turkeys are almost a penny higher at 53.1 cents. Eggs dropped 46.1 cents from the previous month to average 59.9 cents per dozen.

The April all-milk price was $14.60 per hundredweight, down 20 cents from March but $2.70 better than April of 2009. The fluid milk price slipped 20 cents but manufacturing grade gained 30 cents from March to average $13.70.

The April Index of Prices Paid by farmers was 0.5 percent higher than March and 1.7 percent above April of last year. Farmers paid more for feeder cattle, feeder pigs, hay, forages, fuels, nitrogen, potash and phosphorus fertilizers. Prices were lower for feed grains, complete feeds, concentrates, milk cows and pesticides.

Read the full NASS report here:

A firm end to the week for grains and oilseeds

Soybeans were higher on technical buying, short covering and some outside market direction. The Dow was down but the dollar was lower and gold and crude oil were higher. Volume was light and gains were limited by the ongoing South American harvest and record expected U.S. planted area. The trade expects USDA’s first official national planting update of the year to show beans at least 10% planted. Soybean meal was higher on spillover from beans, firm cash levels and product spread trade. Bean oil was lower on profit taking and that spread activity. According to Dow Jones Newswires, the bumper crop in Brazil is straining warehouse capacity and leaving commodities in some areas in truck beds or on the farmer’s property. Argentina’s Ag Ministry reports soybean exports for March were a scant 2,709 tons due to a lack of available supplies. Bean meal exports were 695,852 tons, pellet and cake exports were 128,731 tons and bean oil sales were 55,063 tons.

Corn was higher on technical buying, short covering and spillover from the outside markets. Also, there’s the continued talk about China buying more U.S. corn in the near future with market chatter calling for 300,000 to 500,000 tons. Gains were limited by expectations for a continued strong planting pace in USDA’s update Monday with most estimates between 70% and 80% complete. Ethanol futures were higher. According to Argentina’s Ag Ministry, corn exports for March were 1.307 million tons, up from last year, with Algeria the largest buyer.

The wheat complex was higher on short covering, technical buying and the lower dollar. Wheat’s fundamentals remain extremely negative with a large supply and poor demand for U.S. wheat. However, wheat traders continue to hold a huge net short position, offsetting those fundamentals and allowing July CBOT, KCBT and MGEX contracts to make roughly $.40 gains for the month. There are some concerns about a slowdown in shipments from New Orleans, but Dow Jones Newswires states the threat is “modest”. European wheat was mixed in end of the month position squaring; November Paris was up .2% and November London was down .2%. According to the Texas Wheat Board, that state’s wheat harvest is underway with average test weights and protein content both down from a year ago. The Kansas Wheat Quality Council’s annual crop tour begins next week. Argentine wheat exports for March totaled 361,667 tons, down from last year with Brazil the biggest customer.

ACRE program discussed at farm bill hearing

Two Iowa farmers discussed their reasons for not enrolling in the ACRE program during the House Agriculture Committee’s 2012 Farm Bill field hearing in Des Moines Friday.

Richard Bayliss of Ottumwa, Iowa says he found it difficult to apply ACRE to his family’s corn and soybean operation in southeast Iowa.

“The major issues with ACRE, in my opinion, are that yield base is set on a statewide basis, not by county,” Bayliss says.  “Variables such as soil type, average yield, and weather conditions across the state put the southern tier of counties at a significant disadvantage—and conversely, puts other areas of the state at an unfair comparative advantage.”

AUDIO: Richard Bayliss comments (5 min MP3)

Bayliss says ACRE needs to be more equitable and user-friendly. 

And farmer Nick Volz of Elkhart, Iowa says ACRE doesn’t work for him either.

“The reason being that, with the lack of price protection and smaller DC payments and loan payments, we do not believe there would be any benefits to our operation,” Volz says. “Instead of decreasing the prices in the ACRE program, the prices should be raised to offset the high cost of production.”

AUDIO: Nick Volz comments (1 min MP3)

Ag Committee chair Collin Peterson thanked the farmers for their input on the various farm programs, but also issued this somber warning.

“We are not going to have any extra money for this farm bill.  We’ll be lucky to hold on to what we’ve got,” Peterson says. “I saw in some of the testimony people wanting raise loan rates because they are ridiculously low.  It ain’t going to happen.”

The Des Moines hearing was the first of several to be held in coming weeks.

MO Corn views Obama’s omission as okay

President Obama’s getting some criticism in ag circles about his speech at a corn ethanol plant in Missouri  for not using the word “corn” as he talked about the importance of ethanol and ’next generation’ renewable energy sources.

But Missouri Corn Growers Association CEO Gary Marshall says the very fact that the president was at the ethanol plant and toured the plant, speaks volumes. “I thought that it was significant that he was speaking at a corn-based ethanol plant, that he had a high-loader sitting there, with a bucket of corn, with some of it spilled on the floor,” Marshall said. “And the facts – that he mentioned that he was a senator from a Midwestern corn state (Illinois) – I thought it was significant that he mentioned all of those things. With the backdrop of where he was, I think it sent a really good signal.”

Marshall says he’s pleased President Obama expressed support for reducing the nation’s dependence on foreign oil, not just as an energy issue but as a national security issue.

And, Marshall says they’ll use the president’s visit as a launch platform to get with Congress, EPA, and the USDA to “move the needle forward” on higher ethanol blends, tax credits and corn as an advanced biofuel – as the president suggested but did not specifically mention in his speech.

AUDIO: Gary Marshall, MO Corn Growers (5 min. MP3)

The gloves come off…we’ve lost a hero

Commentary

The bloom is quickly coming off the rose for USDA it seems. With the advent of 2012 Farm Bill discussions, ag interests are waking up to the fact that for the last 16 months, we’ve heard nary a word about conventional production agriculture out of the department charged with promoting our interests. The reality of how this Administration views conventional ag is starting to emerge, and some folks are speaking up.

The first major whack the department took was from Rep. Frank Lucas (R, OK) who went after Secretary of Agriculture Tom Vilsack last week and this week for appearing before the House Agriculture Committee to talk 2012 Farm Bill and not mentioning conventional production ag once in his prepared remarks. Lucas warned Vilsack to let the policy wonks at the White House know he will not allow rural America to be turned into bedroom communities of big cities, albeit with great broadband internet access. He also made it clear to Vilsack that bioenergy is not the silver bullet for all of what ails rural communities.

Then this week the Senate waded in. In a letter to Vilsack sent April 27, three very senior and ag-savvy Republican Senators are asking Vilsack to explain the “Know Your Farmers, Know Your Food” program, a USDA endeavor “that doesn’t appear geared toward conventional farmers who produce the vast majority of our nation’s food supply.”

Sens. John McCain (R, AZ), Saxby Chambliss (R, GA), rnaking member of the Senate Agriculture Committee, and Pat Roberts (R, KS), Senate committee member and former chair of the House Agriuculture Committe, told Vilsack, “In addition to organizing college campus lectures and Facebook chats with USDA bureaucrats, the…strategy for reconnecting farmers with consumers also involves subsidzing the so-called locavore niche market. Last year alone, the Administration released over $65 million under Know Your Farmers banner and has pledged to deliver millions more in FY2011.”

What galls these Senators particularly, according to the letter, is a program that prioritizes city “locavore” markets — you should buy all your food locally — at the expense of rural areas. Specifically, they cited an August, 26, 2009, memo from USDA Deputy Secretary Kathleen Merrigan, in which she allegedly encouraged agency chiefs to take programs “…like the Community Facilities Program, which is intended for financing ‘essential community facilities’ related to healthcare and and public safety in rural areas, and re-imagine them as grant money for community cooking classes or refrigeration units in urban areas,” said the letter. Further, the Senators talk about Merrigan’s intent to use $31 million in stimulus grants and another $930 million in stimulus loans for the “Know Your Farmers” program.

“Given our nation’s crippling budgetary crisis, we also believe the federal government cannot afford to spend precious Rural Development funds on feel-good measures which are competely detached from the realities of production agriculture,” the trio wrote. “The Department’s desire to play ‘match-maker’ between a small segment of specialty crop producers and urban consumers is a questionable use of Rural Development programs…” The three senior Senators want Vilsack to explain to them where he thinks he gets the authority to operate the “Know Your Farmers” program “as envisioned by Deputy Secretary Merrigan.”

And if that isn’t ugly enough, the Senators want “an itemized breakdown of all award announcements made under the Know Your Farmers initiative, including a decription of the award amount, receiving organization, date of issuance, purpose, location or locations and under which USDA program the award was made.”

I sense the gloves are coming off and we’ve just started the Farm Bill stuff…watch this space.

____________

Animal agriculture lost a hero this week, and I lost a close friend in the passing of Dr. Stanley E. Curtis, professor emeritus at the University of Illinois and former head of dairy and animal science at Penn State. Stan, only 68, had a heart attack that took him suddenly last Sunday.

Stan was a visionary, a keen thinker and a shrewd politician. He pioneered environmental management of swine operations, studied swine “linguistics,” and forced debates over just what constitutes animal welfare well before any institution of higher learning created an “animal welfare” sequence or had even heard of classes in ethology or eugenics.

Stan was the guy to who told me after I’d given my first speech on the threat of animal rights that if I didn’t talk about animal agriculture “warts and all” I’d have no credibility with the public. He was right.

Stan was the guy who insisted good animal welfare is a win/win for the producer, and he insisted that the farm family’s welfare must be balanced with benefits to the animal. He was right.

Stan was the guy who told audiences in all 50 states and 20 countries that until pigs could talk, the only defensible method of judging animal welfare was through science-based measureable production criteria. This is called “the performance axiom,” he said, steadfastly explaining that environmental criteria don’t cut it in as the sole criterion judging welfare. He was right.

Stan was the guy who explained that good animal welfare can exist within any number of production systems, and that no one system fits all animal needs all of the time. He was right.

Stan was the guy who taught Dr. Temple Grandin as a graduate student. He was right.

And Stan was the guy who never suffered fools easily, nor did he hold with zealots who, having never set foot on a farm, dared to tell a producer what was best for his or her animals. He was right.

We’re all poorer for the passing of this humble guy. I shall miss him.