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House passes Senate version of Pigford II funding

November 30, 2010 By 1 Comment

The House passed the Senate version of the Claims Settlement Act of 2010 on Tuesday. The legislation will fund the agreements reached in the Pigford II lawsuit, brought by African American farmers, and the Cobell lawsuit, brought by Native Americans over the management of Indian trust accounts and resources. This bill also provides funding for settlements reached in four separate water rights suits brought by Native American tribes.

The original Pigford settlement was in 1999 resolving discrimination cases brought against USDA from 1983 to 1997. The Pigford II settlement is the result of a number of farmers who were disqualified from the first settlement because they didn’t meet a filing deadline.

Filed Under: News, USDA/Government Tagged With: ,

Another plea for estate tax reform

November 30, 2010 By Leave a Comment

Representatives of several ag organizations participated in a Washington news conference Tuesday, urging Congress to pass meaningful estate tax reform.

Speaking for the National Cattlemen’s Beef Association was Scott Bennett, a student at Virginia Tech University and an active participant in his family’s cattle operation near Red House, Virginia.

“Relief is needed and it is needed badly,” Bennett said. “I sure wish Congress would wake up—wake up and do something to protect family-owned farms and ranches from going to the wayside and jeopardizing the futures of those who dream to provide food for a growing global population.”

American Farm Bureau president Bob Stallman said estate tax reform must also include stepped-up basis, which limits the amount of property value appreciation that is subject to capital gains taxes if the assets are sold.

“Because farmland typically is held by one owner for several decades, setting the basis on the value of the farm on the date of the owner’s death, under stepped-up basis, is as an important tax provision for surviving family partners as the others,” Stallman said.

National Farmers Union president Roger Johnson agreed.  He said the estate tax issue and the stepped-up basis issue need to be dealt with together—and not doing so might create an even larger problem.  “And I think that’s why we all are saying, ‘let’s raise the exemption period, let’s do something to lower the tax rate—and let’s bring some certainty back to this industry.’”

Earlier this week, 31 ag organizations sent a letter to President Obama asking for his support of estate tax reform.

AUDIO: News conference excerpt–first speaker is AFBF president Bob Stallman (11 min MP3)

Filed Under: Events/Organizations, News, USDA/Government Tagged With: ,

Foot-and-mouth reported in South Korea

November 30, 2010 By Leave a Comment

Foot-and-mouth disease reportedly has been found at two hog farms in South Korea. Two months ago, Korea was declared free of the disease.

Korea’s JoohngAng Daily reports that officials have quarantined the two farms that together house about nine-thousand pigs after inspections found them positive for foot-and-mouth. All swine raised on the farms and in the proximity of them will be culled to prevent spreading. The report also says farms within a 12-mile radius will not be allowed to sell or remove livestock from the area.

Filed Under: Livestock, News, World Ag News/Trade Tagged With: , ,

Southeast producers’ disaster declaration

November 30, 2010 By Leave a Comment

Ag Secretary Tom Vilsack says farmers and ranchers in the southeast will be helped through the disaster declaration in more than150 Georgia counties and several counties in surrounding states. Severe losses of fruits, vegetables and many other crops prevented harvest in many areas from drought and excessive heat that started in July. Low-interest emergency loans and help through the SURE program will be available to assist eligible farmers and ranchers in Georgia, Alabama, Florida, North Carolina, South Carolina and Tennessee.

Filed Under: Crops, News Tagged With: , , , , ,

KCBT makes changes to hard red winter wheat contract

November 30, 2010 By Leave a Comment

Members of the Kansas City Board of Trade have approved changes to the hard red winter contract.

Among other features, the new regulations adjust storage fees and the minimum allowable amount of protein for delivery.

The change was put in motion following complaints to the Commodity Futures Trading Commission about the gap between cash and futures prices.

Pending CFTC approval, the measures go into effect with the September 2011 contract.

KCBT press release on changes

Filed Under: Markets, News Tagged With: , ,

Weather concerns support soybeans and wheat

November 30, 2010 By 1 Comment

Soybeans were higher on technical and speculative buying. Demand remains strong, especially from China, and there are continued concerns about dry conditions in some key growing areas of South America – the supply is already very tight and anything less than a bumper crop from South America would be considered very bullish. Gains were limited by bearish outside markets with the dollar up and the Dow and crude oil down. Soybean meal and oil were up following beans with oil outgaining meal on product spread trade. Ahead of the open, unknown destinations bought 165,000 tons of 2010/11 U.S. soybeans.

Corn hit new one week lows on technical selling and profit taking, along with the higher dollar and lower crude oil. There was no real fresh news for corn and traders are concerned about the recent slowdown in export demand with many expecting a lower USDA projection in next week’s supply and demand update. Also, the trade generally thinks farmers will increase U.S. planted acreage in the coming year. Ethanol futures were lower. According to Dow Jones Newswires, China has rejected a 54,000 ton cargo of GMO U.S. corn, calling the specific strain “unacceptable”.

The wheat complex was higher on speculative buying and short covering. Traders continue to watch the weather with dry conditions in the western U.S. Plains, excessive rainfall in Eastern Australia and extremely cold and dry conditions in Russia. Gains were limited by the bearish fundamentals and mostly higher trade in the dollar but those world crop weather concerns offset most of that influence. European wheat was higher on the Euro losing ground to the dollar and stronger than expected French and U.K. exports. Egypt issued a tender for 55,000 to 60,000 tons of hard wheat and 55,000 to 60,000 tons of soft wheat.

Filed Under: Closing Futures & Livestock Briefs, Markets Tagged With: , , , ,

Gypsy moth trapping season ends in Wisconsin

November 30, 2010 By Leave a Comment

The Wisconsin Department of Agriculture captured a few more Gypsy Moths this year compared to last year. A total of 142,409 moths were trapped statewide compared to 132,275 last year. While there is no definitive reason for the increase, DATCP speculates the mild spring and dry summer were conducive to Gypsy Moth development and better trapping techniques may have contributed as well. The majority of the 28,150 traps were placed in western Wisconsin to measure the advance of the insect.

From now until spring, people can help decrease the number of next year’s caterpillars by treating or removing egg masses. A gypsy moth egg mass is tan, oval or tear-shaped and a little bigger than a quarter. It is flat and has a velvety texture. Egg masses can be found on trees, vehicles, fences, playground equipment, buildings and any outdoor item. An egg mass can hold 500 to 1,000 eggs.

Egg masses can be scraped off with a putty knife, stiff brush or similar hand tool and dropped into a container of warm, soapy water. Let them soak for a couple of days and discard them in the trash. Horticultural oil also can be sprayed onto egg masses. Crushing the egg masses will not destroy the eggs.

The gypsy moth is an invasive pest from Europe and Asia that has been spreading westward since its introduction to North America in 1869.

Filed Under: News, USDA/Government Tagged With: , ,

Iowa Republican tries to cut Pigford funding

November 30, 2010 By Leave a Comment

Republican Congressman Steve King of Iowa says the House Rules Committee has blocked his attempt to delete the $1.5 billion funding for the so-called Pigford II settlement. The Senate passed the bill last week allocating the money to settle a discrimination suit brought by black farmers against the USDA. King and others say the settlement is “rife with fraud” charging there are way more claims than black farmers. USDA says that is because family members and farmers who have retired or gone out of business since the initial suit are eligible.

The original Pigford settlement was in 1999 resolving discrimination cases brought from 1983 to 1997. The Pigford II settlement is the result of a number of farmers who were disqualified from the first settlement because they didn’t meet a filing deadline.

Filed Under: News, USDA/Government Tagged With: , ,

Cattle trade at higher prices early in the week

November 30, 2010 By Leave a Comment

USDA Mandatory reported a light cattle trade developed in the Texas Panhandle at midday on Tuesday on good demand. Compared to last week the early live sales trended 2.00 higher at 104.00. Trade was active in Kansas on good demand with live sales steady to mostly 1.00 higher at 101.00 to 102.00, with a few late sales up to 102.50. Dressed sales in Kansas were 1.00 higher at 161.00. Trading was light in Central and Western Nebraska with a few live sales trading steady to 1.00 higher early at 101.00 to 101.50 in the Central part, and 103.00 in the West. There was some limited trade in Colorado at 103.00. Tuesday’s cattle slaughter was estimated at 131,000 head, 1,000 more than last week, and 8,000 more than last year.

Boxed beef cutout values were steady to firm on light to moderate demand and offerings. Choice boxed beef was up .37 at 162.55, and select was .09 higher at 151.78.

Feeder cattle receipts at the Sioux Falls Regional Stockyards at Worthing, SD totaled 1877 head on Monday. Compared to a week ago feeder steer calves weighing 450 to 500 pounds were 5.00 to 6.00 higher, 6 to 7 weights 3.00 to 5.00 higher. Feeder heifers weighing 400 to 550 pounds 1.00 to 3.00 higher, 550 to 650 weight heifers from 3.00 to 6.00 higher. Feeder steers medium and large 1, 111 head averaging 573 pounds averaged 128.41 per hundredweight. 98 heifers weighing 573 pounds brought 118.24 at Worthing.

Chicago Mercantile Exchange live cattle contracts settled 42 to 105 points higher. New highs were set as cash cattle traded at higher prices earlier in the week than expected.  Dow Jones Newswires (DJN) reported that on front month continuation charts, live cattle were at the highest since mid-September of 2008, for a twenty-six month high and feeder cattle hit its highest level ever. December live settled at 103.75, February was up .60 at 106.37.

Feeder cattle settled 25 to 132 points higher on the combination of the gains in the live pit and lower corn futures prices. January settled .77 higher at 119.17 and March was up .77 at 119.77.

Barrows and gilts in the Iowa/Minnesota direct trade closed 2.24 higher at 67.73 on a carcass basis, the West was up 2.21 at 67.61, and the East closed 1.72 higher at 64.57. Missouri direct base carcass meat price was steady at 58.00 to 60.00.

Hog slaughter was estimated at 428,000 head, the same as last week, but 6,000 less than last year. The November hog kill looks somewhat larger than the September 1 report implied. The USDA may very well go back and revise the March/May pig crop higher in order to make a better fit, possibly increasing the breeding herd size in the process.

Pork trading was moderate to active, with mostly light demand and moderate to heavy offerings. Pork carcass cutout was down 1.59 at 77.41.

Lean hogs settled unchanged to 100 points lower on outside market pressure. The lack of midday cash prices to hold onto Monday’s gains, as well as unexpected contract rolling out of December added increased pressure to the nearby contracts. December settled 1.00 lower at 69.02, and February was down .45 at 75.77.

Filed Under: Closing Futures & Livestock Briefs, Markets Tagged With: ,

Record farm income projected for 2010

November 30, 2010 By Leave a Comment

Looks like 2010 is going to be a record year for farm income. USDA’s Economic Research Service estimates net farm income of $81.6 billion in 2010, up 31 percent from 2009 and 26 percent higher than the 10-year average of $64.8 billion for 2000-2009.

Estimated net cash income at a record $92.5 billion, 2.3 percent above the prior record attained in 2008. Net value added is expected to increase by almost $20 billion in 2010 to $132.0 billion.

The value of livestock production in 2010 is expected to be up 16.6 percent compared to 2009 led by a 29.6 percent increase in dairy products, 16.4 percent improvement in meat and 9.9 percent increase in poultry and egg value. Crop production value is projected at 3.1 percent higher thanks to strong gains in corn, soybean and cotton receipts.

Expenses for purchased inputs are projected to be 2.5 percent higher this year after declining 6.4 percent in 2009. Quite a change from the 15.7 and 8.8 percent increases we saw in 2007 and 2008.

Government payments are expected to total $12.4 billion in 2010 reflecting a 1.5 percent increase over 2009. Commodity program payments are $2.3 billion lower but disaster assistance and other payments increased $2.5 billion this year.

The report also depicts the volatility we have seen in farm income over the past decade. For the years 2000 through 2009, net farm income increased in 6 of the years, posting an average increase of 26.6 percent. The other four years saw an average decline of 23.5 percent. Because net cash income reflects only cash receipts and expenses, it tends to be less volatile. In the 6 years when net cash income rose, the average increase was 10.4 percent. In years when net cash income decreased, the average decrease was 15.9 percent. (The “down” years were 2002, 2005, 2006 & 2009)

Read and overview from USDA here:

Filed Under: News, Top Stories, USDA/Government Tagged With: , , , , , , , ,
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