Friday 27th January 2012

MO Farm Bureau battles HSUS ballot efforts

Agriculture’s fight to keep the Humane Society of the United States (HSUS) from changing the ballot initiative process in Missouri continues. Missouri Farm Bureau President Blake Hurst tells Brownfield they are working with other groups on initiative petition reform and on fighting the HSUS initiative petition called “Your Vote Counts” that Missouri Farm Bureau has renamed “Big Money Talks.” Hurst says, “We think ‘Big Money Talks’ is a lot more descriptive of what’s going on. We’ve got out of state groups, including the HSUS, who are trying to make it impossible for the state legislature to hold hearings on initiative petitions that have been passed by the voters to make needed either technical or substantive changes.”

Hurst says because of the continued threat to production agriculture from the HSUS, the Missouri Farm Bureau is “working hard to defeat” that initiative. “It’s just a really bad piece of legislation influenced by people who don’t have Missourians best interests at heart, so, we’re opposing it,” Hurst says.

The HSUS is pushing for changes because the Missouri legislature this year revised the animal rights group’s so-called Puppy Mill Ballot Measure – also known as Proposition B – that voters passed in 2010.

Heading into the next legislative session that begins in January, the Missouri Farm Bureau is working on legislation to restrict paid petition gatherers and to make ballot language on initiative petitions more transparent/

“We didn’t feel that the language that the voters saw,” continued Hurst, “If all you knew about Proposition B is what you read in the voting booth, you were not a well-informed voter.”

Ag groups contend that the ballot language would have allowed similar restrictions on livestock production as HSUS had proposed for Missouri dog breeders.

Specialty growers seek role in farm policy

Those who grow specialty crops are trying to hold on to the role they had in forming 2008 farm policy. National Potato Council CEO John Keeling, who co-chairs the Specialty Crop Farm Bill Alliance, points out that specialty crops are half of U.S. plant agriculture in terms of farm gate value.

“It makes sense, if we’re going to try to build a vibrant agriculture in this country, that we look at and address the needs of that 50 percent that are specialty crop producers in the same positive way that we look at addressing the needs of the corn, wheat and soybean guys also,” said Keeling, in an interview with Brownfield Ag News.

The 2008 farm bill provided specialty crop growers with support, not in direct payments, but in research, pest management and infrastructure, said Keeling. He’s aware that spending cuts will be made, but he suggests that consideration be given to shifting some farm bill money to the benefit of specialty crop growers.

“There are buckets of money and those buckets of money are kind of sacrosanct and can’t be looked at,” said Keeling. “As we address farm policy we ought to be willing to look at farm policy in its totality and spend the money wisely for all of agriculture.”

Keeling figures that specialty crop growers’ share of the 2008 farm bill was around $3 billion over the five-year life of the bill.

AUDIO: John Keeling (5 min. MP3)

Brazil surpasses US in soy exports to China

Brazil has surpassed the US as the largest exporter of soybeans to China.  According to Aprosoja’s website in the first 11 months of the year Brazil shipped 19.8 million tons of beans, a nearly 7 percent increase from 2010 while the Chinese imported 18.75 million tons from the US, a less than ¼ of a percent higher than 2010. 

Last month, China imported nearly 5.7 million tons of beans, the second highest monthly total on record, but China imported almost 35 percent less beans from the US allowing South American beans to cut into the US share of the Chinese market. 

Currently, China is on pace to import 52 million tons of soybeans in 2011, 5 percent below 2010.

2012 IYC: Cabot Creamery

Dairy cooperatives in the United States peaked in the 1940’s with nearly 2,300 in 42 states.  Because dairy farms were relatively small and remotely located, cooperatives – formed by groups of farmers seeking solutions to common problems – began to emerge.  In 1919 a group Vermont farmers came together to figure out what to do with their excess milk.  Roberta MacDonald, Senior Vice-President of Cabot Creamery says their co-operative has come a long way since its formation over 90 years ago.  Having merged with several cooperatives, MacDonald says they are the largest cooperative in the Northeast.  She says they represent over 1,200 farm families throughout that region.

MacDonald says the core of their business is to keep farmers farming and help sustain their future.  “I know for a fact we would not have half of the farmers we do farming,” she says, “especially in the more urban states without the cooperative business structure.” 

She tells Brownfield Cabot was born out of necessity in 1919 and the cooperative business model has helped them continue today.  She says the business model continues to be solid and says ”people are embracing the cooperative model and the cooperative principles even if they don’t understand what it means.”  MacDonald says people, however, do understand it means 100 percent of the profit is returned to the members.

AUDIO: Roberta MacDonald, Cabot Creamery (9:15mp3)

The risk in not being prepared

No one likes to talk about death or what happens when we’re gone.  As the average age of the farmer is increasing having a succession plan in place can only help all those involved in the farming operation.  Rick Morgan is a Sr. Financial Security Consultant with Country, he says needing an estate plan is a lot like needing a parachute.

AUDIO: Rick Morgan, Estate Planning (3:00mp3)

EPA announces RFS for 2012

The Environmental Protection Agency has finalized the 2012 Renewable Fuels Standard. The percentage standards for four fuel categories that make up the RFS2 are:

  • Biomass-based diesel (1.0 billion gallons; 0.91 percent)
  • Advanced biofuels (2.0 billion gallons; 1.21 percent)
  • Cellulosic biofuels (8.65 million gallons; 0.006 percent)
  • Total renewable fuels (15.2 billion gallons; 9.23 percent)

The Energy Independence and Security Act of 2007 (EISA) established the RFS2 program and the annual renewable fuel volume targets, which steadily increase to an overall level of 36 billion gallons in 2022. To achieve these volumes, EPA calculates a percentage-based standard for the following year. Based on the standard, each refiner and importer determines the minimum volume of renewable fuel that it must ensure is used in its transportation fuel.

Further details are available from EPA here:

Mildew causing problems in Chinese milk

Another case of recalled dairy products in China, this time it involves milk from cows fed mildewed feed. The feed resulted in excessive aflatoxin levels in the milk coming out of two dairy plants in China. Aflatoxin M1 in excessive levels is considered a possible human carcinogen.

According to China Daily, the government agency says it tested milk from 128 dairy plants in 21 provinces covering 200 products. Only two were found to exceed safe levels.

The Chinese General Administration of Quality Supervision, Inspection and Quarantine has asked the two companies, China Mengniu Dairy Company and Fujian Changfu Dairy Industry Group to recall and destroy the contaminated products.

Mengniu, China’s largest milk producer says the problem was discovered before the tainted products reached the market. Changfu says it apologies for the incident and is actively recalling and destroying the affected products. No illnesses have been reported related to the contamination.

China has stepped-up food safety efforts across the country after the melamine milk contamination scandal in 2008 and tainted pork found earlier this year.

Cattle show lists appear larger in the South

Packers completed the task of picking up this week’s show lists on Tuesday afternoon. Ready numbers this week are generally larger especially in the South. The Southern trade was very light last week with prices 4.00 to 5.00 higher at 123.00. Northern business was better with live prices as much as 6.00 higher from 124.00 to 126.00, and dressed deals 6.00 to 8.00 higher from 200.00 to 204.00. Early asking prices are not well defined with some around 125.00 in the South and 205.00 plus in the North. Tuesday’s cattle kill was estimated at 132,000, 22,000 more than last week, and 4,000 greater than last year.

Boxed beef cutout values ended steady on the choice and higher on select with light demand and offerings. Choice boxed beef was up .17 at 192.25, and select was 1.38 higher at 177.74.

Chicago Mercantile Exchange live cattle contracts settled 30 to 130 points lower. The live contracts started the day under pressure tied to profit taking in the wake of greater packer spending last week. The front months experienced triple digit losses while the far deferred issues suffered losses to a lesser degree due to the implications of stronger corn prices. December settled 1.05 lower at 123.25, and February was down 1.12 at 123.320.

Feeder cattle ended 17 to 52 points lower. Besides the spillover selling from the live pit, feeder prices were also checked by the extended rally in the corn market. January was down .45 and settled at 147.15, March ended .17 lower at 150.27.

Most feeder cattle auctions are closed during the Christmas to New Years week.

[Read more...]

VEETC coming to an end

VEETC—the Volumetric Ethanol Excise Tax Credit—is coming to an end.

The so-called “ethanol blenders tax credit” and the offsetting tariff on imported ethanol both expire at the end of the year. 

Bob Dinneen, president and CEO of the Renewable Fuels Association, says although VEETC was vital to getting the ethanol industry off the ground, ethanol producers know it’s time to move on.

“They recognize that it’s a different era—and it is time to move beyond the tax incentive,” Dinneen says. “We never wanted to be tied to the federal government forever—and getting to this point is sign of real maturation of the industry.

“I’m proud of them for recognizing that we can move forward.”

And Dinneen says it’s too bad other “energy industries” aren’t willing to do the same.

“There are some folks in the petroleum industry, for example, that seem intent upon hanging on to the subsidies and support that the government provides them, no matter what the changing marketplace or industry realities might be,” he says, “and I think that’s really unfortunate.”

Meanwhile, the Brazilian sugarcane industry is celebrating the end of the U.S. ethanol import tariff.

In a news release, the Brazilian Sugarcane Industry Association (UNICA) says ending the tariff will expand access for U.S. consumers to advanced renewable fuels like sugarcane ethanol, and help lower prices at the pump.

UNICA lobbied for an end to the import tariff and VEETC.

Strong day for grains and oilseeds

Soybeans were sharply higher on speculative and fund buying. The trade’s watching South American weather closely with most of Argentina and Brazil expected to be dry over the next ten days. Also, weekly export inspections were bullish and the outside markets were supportive with crude oil sharply higher. Soybean meal and oil followed beans higher and focused on the fundamental implications of smaller South American crops. USDA reported the sale of 60,000 tons of optional origin 2011/12 beans to China.

Corn was higher on fund and speculative buying. Corn’s also watching weather in Argentina and Brazil with the developing crop definitely receiving heat stress. Weekly export inspections were more than what’s needed weekly to meet USDA projections. Still, even with the supportive longer term fundamentals, near term fundamentals are bearish and any gains made this week may be exaggerated by the low holiday trade volume. Ethanol futures were higher.

The wheat complex was sharply higher on short covering and fund buying, along with spillover from corn. Dry parts of Ukraine did get rain over the weekend but the winter crops will need more to help development. Weekly export inspections were bearish but that was largely canceled out by the lower dollar and there wasn’t much new selling interest with the low trade volume. Russia bought 53,055 tons of domestic milling wheat in Moscow’s third intervention tender of the year, with the government expected to buy 1.4 million to 1.5 million tons of wheat, mainly from farmers in western Russia.