Friday 27th January 2012

Nebraska NRCS funds aquifer initiative

NRCS in Nebraska is providing approximately two-point-five million dollars to fund the Ogallala Aquifer Initiative.

The initiative is a voluntary program to provide technical and financial assistance to farmers and ranchers to improve water conservation on their ag land.

NRCS spokeswoman Joanna Pope says the money will be distributed through the Environmental Quality Incentives Program (EQIP).

“It will fund programs that conserve water through converting systems from gravity irrigation to pivot irrigation or to subsurface drip irrigation—or to retiring irrigation land altogether,” Pope says.

Pope says NRCS will not be taking new applications for the initiative dollars—funding will go towards applications NRCS currently has on hand. “You can apply for EQIP at any time and we get a lot more applications than we receive funding to actually do practices for—so we have plenty on hand.”

 We asked Pope how many projects might be funded with 2½ million dollars.

“That is a hard question.  It just depends—some practices are more expensive than others,” she says. “The retirement of acres can be kind of expensive, as is the conversion to center pivot irrigation.  But there are other practices—like conservation tillage—that can also conserve irrigation water—which isn’t very expensive.”

The Ogallala Aquifer, also known as the High Plains Aquifer, is a vast underground water table aquifer located beneath the Great Plains.  It is one of the world’s largest aquifers and covers about 174-thousand square miles in portions of eight states, which include Nebraska, South Dakota, Colorado, Wyoming, Kansas, Oklahoma, New Mexico and Texas.

The aquifer covers a majority of the state of Nebraska.

AUDIO: Joanna Pope (2 min MP3)

Corn, wheat up on crop concerns

Soybeans were lower on technical selling and spillover from the outside markets. The dollar was higher while the Dow and crude oil were sharply lower as the broader market watches budget talks in Washington DC. Past that – there’s still a lot of uncertainty about weather with different forecasts predicting different patterns. Soybean meal and oil were lower on spillover from beans. Meal had additional pressure from product spread adjustments. The U.S. Census Bureau’s June soybean crush numbers are out Thursday at 7 AM Central. The crush is estimated at 125.1 million bushels, which would be down on the month and year due to poor margins. Weekly export sales are out at 7:30 AM Central. Old crop soybeans are placed at 50,000 to 150,000 tons with new crop at 500,000 to 700,000 tons, soybean meal is seen at 50,000 to 150,000 tons and oil is pegged at 5,000 to 15,000 tons.

Corn was higher on technical and speculative buying. Corn was also keeping an eye on the various forecasts and the various weather trends predicted by the different outlooks. In any event, some damage has been done – the question now is just how much. USDA’s next production update, along with new supply and demand estimates, is out August 11. Ethanol futures were mixed. Old crop U.S. corn exports are expected to be between 250,000 and 450,000 tons while new crop is projected at 300,000 to 500,000 tons.

The wheat complex was higher on short covering and crop quality concerns. Minneapolis led the way up as traders watched results from the Wheat Quality Council’s current crop tour in North Dakota. According to tour results, some areas are as much as 4 bushels below average and two weeks behind the normal harvest schedule due to extremely wet conditions. There was additional support from the unwinding of spreads with corn. European wheat was higher on concerns about heavy rainfall during harvest. A German farmers’ association pegs grain production at 41 million tons, down from 50 million in 2009/10. Syria bought 127,000 tons of milling wheat, mostly Black Sea origin, and the United Nations picked up 90,000 tons of Black Sea wheat for Ethiopia. Japan issued a sell-buy-sell tender for 50,000 tons of feed wheat and 200,000 tons of feed barley. Dow Jones Newswires states Bulgaria is seeking a deal with Jordan that would make the Eastern European nation the sole supplier of Amman’s wheat. Weekly U.S. wheat exports are estimated at 300,000 to 500,000 tons.

Heat, humidity taking toll on Iowa cattle

The Iowa Cattlemen’s Association (ICA) estimates up to four-thousand head of cattle have died in the past week’s heat wave. 

Dal Grooms, communications director for ICA, says that number is based on an informal survey of their farmer-directors.

“We asked them if they could give us some sense of what they were hearing or experiencing or knew about, in the area around them,” Grooms says, “and as we got numbers in and started adding them up, we kind of got to a 3,500 to 4,000 number.”

Grooms says eastern Iowa accounted for about three-thousand of that total, with the rest from northwest Iowa.

Grooms says most cattlemen are doing everything they can to keep their cattle comfortable. “They’re going out and doing what they can in terms of trying to make sure that there’s some shade for the cattle, getting spray on them, setting up fans—doing whatever they can to keep those cattle cooled off as much as possible,” he says.

Meanwhile, Iowa Secretary of Agriculture Bill Northey is encouraging livestock farmers who have experienced death loss due to the extreme high temperatures to contact their local USDA Farm Service Agency (FSA) office.  Livestock losses due to extreme temperatures and other weather events may be eligible to receive assistance through the Livestock Indemnity Program (LIP).

AUDIO: Dal Grooms (2:46 MP3)

Oswald to address Congress about flood

Missouri Farmers Union President Richard Oswald will help brief members of Congress and staff Thursday about the effects of the Mississippi and Missouri Rivers flooding.

Oswald has been personally affected by the swollen Missouri River at his home in northwestern Missouri. Even though Oswald has lived in the same house all his life and has been through floods in 1952 and 1993, this one, he says, is different.

“This flood is different because the Corps of Engineers management of the river has basically mandated that the flood be sustained, instead of a few days, for literally months, it sounds like now,” Oswald tells Brownfield, “so we won’t be able to return home probably until September sometime.”

Oswald contends that’s a result of the U.S. Army Corps of Engineers’ management of upstream water releases.

“They’ve tried to please too many people, too many environmentalists and too many recreationists,” said Oswald, “and they’ve done that at the expense of the flood control.”

Oswald’s house is currently in the middle of the Missouri River and the major part of his crop was lost following the Atchison County levee breach in June.

Other panelists representing related government agencies and non-governmental organizations will also participate in the briefing.

AUDIO: Richard Oswald (3 min. MP3)

Pork carcass cutout value breaks a record again

The cash cattle market was untested on Wednesday with both bids and asking prices poorly defined. Packers remain cautious about near-term beef demand and most feedlot managers have little interest in trading cattle at $4.00 under the spot August. Generally speaking asking prices are around 110.00 to 111.00 in the South and 176.00 to 178.00 in the North. There are a few bids at 107.00 in Kansas and 171.00 to 172.00 in Nebraska according to private sources. The cattle slaughter was estimated at 129,000 head, even with last week and last year.

Boxed beef cutout values were higher on the choice and weak on select with light to moderate demand and offerings. Choice beef was up .99 at 175.73, and select was .53 lower at 170.41.

Chicago Mercantile Exchange live cattle contracts settled 20 to 87 points lower and were pressured by the lower cash cattle trade on Tuesday in Kansas. Although the majority of this week’s cash trade has yet to develop, this may have set the tone for the week. Continued hot weather is also limiting beef demand as it hampers outside grilling. Outside market losses contributed to the losses. August settled .62 lower at 111.07, and October was down .70 at 115.45.

Feeder cattle ended the session 60 to 100 points lower on the lack of support from the live pit and higher corn values. August was down .72 at 135.37, and September was 1.00 lower at 136.92.

[Read more...]

Iowa tour highlights importance of broadband

The importance of high-speed broadband service to farms and rural areas was the focus of an event in north-central Iowa on Wednesday.

The administrator of the USDA’s Rural Utilities Service (RUS)—Jonathan Adelstein—toured a farm near Rudd, Iowa where fiber-optic network service is being deployed by a local independent telecommunications company, OmniTel Communications.  Adelstein watched as a farmer used a broadband Internet connection to download data that he used to program GPS on his tractor.

Adelstein’s agency provided loans to help with the 35-million dollar OmniTel project.  He says such investments are important to everyone, especially rural youth.

“Who knows? The next Steve Jobs might come from Rudd,” says Adelstein, “but if he didn’t have access to broadband, he would never have the opportunity to learn and to grow and to have that experience.”

During the Wednesday tour, representatives of Iowa’s independent telephone companies expressed their concerns to Adelstein about the proposed National Broadband Plan. They believe regulations in the FCC plan would actually be detrimental to their efforts to keep building advanced networks and infrastructure in rural areas of the state. 

They call it “The Great Disconnect”.

 

NCGA says record corn crop still possible

Despite growing concerns over the development of the U.S. corn crop, the National Corn Growers Association says a record crop is still possible.

NCGA president Bart Schott says, while it’s doubtful that yields will set records this year, corn growers are still projected to produce a record crop with slightly higher acreage.

Schott says the maturity of the crop is still on track in most areas.  He points out that the majority of the crop is of comparable condition as that of 2009, when U.S. corn growers set the current production record.

Closing Grain and Livestock Futures: July 27, 2011

Sept. corn closed at $6.91 and 1/2, up 1 and 3/4 cents
Aug. soybeans closed at $13.75 and 3/4, down 7 and 1/4 cents
Aug. soybean meal closed at $355.80, down $4.70
Aug. soybean oil closed at 56.40, down 19 points
Sept. wheat closed at $7.04 and 3/4, up 10 and 3/4 cents
Aug. live cattle closed at $111.07, down 62 cents
Aug. lean hogs closed at $101.92, up $1.45
Sept. crude oil closed at $97.40, down $2.19
Oct. cotton closed at 103.85, up 276 points
Aug. Class III milk closed at $21.34, up 24 cents
Dow Jones Industrial Average: 12,302.55, down 198.75 points

Big challenges ahead for rural health care

Results of a new study show rural areas will face even greater health care challenges when the federal government’s health care reforms take effect in 2014.

The study was conducted by United Health Group, one of the nation’s largest health insurers.  Spokesman Dr. Lew Sandy says the health reform legislation passed last year means nearly five million rural residents will get new insurance coverage—either through the Medicaid or state health insurance exchanges. 

Sandy says that will put more strain on the already fragile rural health care system.

“If rural residents are facing access and quality issues today, we think they’re going to face severe issues come 2014 when those coverage expansions begin to take place,” Sandy says.

The United Health Group report also offers solutions.  They include increased support for rural physician recruitment and retention—more investment in telemedicine and telehealth, including greater access to broadband high-speed Internet—and looking for more innovative ways to organize rural health care.

“Particularly using constructs such as the primary care medical home idea—or to use team-based care approaches that not only involve physicians, but also nurse practitioners, physicians assistants, nurses, community health workers and others.”

The report is available on the United Health Group web site.

AUDIO: Dr. Lew Sandy (6:58 MP3)

Vilsack seeks private sector resources

U.S. Agriculture Secretary Tom Vilsack is seeking private sector resources to make an impact on rural America. Speaking Wednesday to a rural philanthropy conference in Kansas City, the Secretary urged cooperation with the Obama Administration to drive investment in rural America.

“It’s fairly obvious that we’re going be living in a constrained resource environment for USDA in the future because of the deficit discussions,” said Secretary Vilsack, during an interview with Brownfield Wednesday. “My goal is to try to see if there are ways in which we can leverage USDA resources more effectively by engaging the private sector and the non-profit sector.”

In addition to grant capacity, Vilsack tells Brownfield that foundations have investment capacity through which they can put money in companies and businesses.

“If we can tap both their investment potential and their grant potential we might be able to target those resources in a more effective way with USDA resources to bring more opportunities into rural communities,” said Secretary Vilsack.

The Obama Administration is working to ensure basic services for rural Americans and businesses, but Vilsack says rural living conditions can be improved with everyone working together. He says partnerships are needed to maximize limited resources.

Vilsack urged philanthropic support for communities to leverage greater resources around them, including not just increased investments, but smarter investments.

AUDIO: Tom Vilsack (3 min. MP3)