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Ohio Sen. Brown wants 5-year Farm Bill

August 1, 2012 By Leave a Comment

With a Farm Bill that includes disaster assistance set to expire at the end of September, and what he describes as the “pathetic action in the House,” Ohio Senator Sherrod Brown on Wednesday, August 1, outlined again how the Senate passed farm bill provides critical assistance to farmers affected by the drought.

When asked about the House moving toward a more limited ag disaster aid bill in the short term, the Senator responded.

“The House is looking at kind of disaster alone, not a long term solution,” said Senator Brown. “I know it’s hard to put a Farm Bill together in the House, but in the end farmers want a reliable safety net that can protect them in situations of drought and situations of low crop prices and dealing with disasters in short term extensions don’t do that well.”

Joining Senator Brown on the call with reporters was Champaign County farmer Alex Ward and State Climatologist Jeff Rogers.

Ward, an 8th generation farmer says when it comes to the Farm Bill, crop insurance is the tool most needed going forward.

Audio: Ohio Senator Sherrod Brown, conference call with reporters (12:45 mp3)

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

Iowa’s corn checkoff increase approved

August 1, 2012 By Leave a Comment

It’s official—the proposed one-fourth of a cent increase in Iowa’s corn checkoff has been approved.

The certified results show the July 10th referendum passed decisively with nearly 74 percent of the producers in favor of increasing the checkoff rate to one cent per bushel.  A simple majority was needed to pass the referendum.

The new rate goes into effect on September 1st.  The last increase in Iowa’s corn checkoff was in 2008 when it was raised to three-quarters of a cent per bushel marketed.

Filed Under: Crops, Events/Organizations, News Tagged With: , ,

Corn refining companies back in sugar suit

August 1, 2012 By Leave a Comment

A federal judge in Los Angeles has refused to throw-out a sugar industry lawsuit against some corn refiners. U.S. District Judge Consuelo Marshall determined sugar producers had provided enough evidence to support their charges that the corn refiners have misled the public about high fructose corn syrup. The suit filed last year against ADM, Cargill, Roquette, Corn Products International, Tate & Lyle Ingredients and the Corn Refiners Association charging an advertising campaign promoting HFCS as “natural” and “nutritionally the same as sugar” is false and misleading. Judge Marshall dismissed the charges against Roquette for lack of sufficient facts but upheld the charges against the others.

Nine sugar companies and two trade groups are seeking triple damages and a court order to stop the corn refiners from making the claims. Last October Judge Marshall dismissed the claims against the individual companies leaving the Corn Refiners Association as the only defendant in the case. In March, attorneys for the Sugar Association charged the companies were trying to evade liability for their role in creation and sponsorship of the advertising. On Tuesday the Judge agreed, reinstating the companies in the suit.

Corn Refiners Association president Audrae Erickson says the ruling “is solely about who is included in the lawsuit and has no bearing on the merits of the case which are about ensuring that consumers get the facts regarding high fructose corn syrup.” No trial date has been set.

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

Milk prices increase…but lose ground

August 1, 2012 By Leave a Comment

There will be a little more in the milk check this month, the July base price for Class III comes in at $16.68 per hundredweight, up $1.05 from June and the highest Class III base since January. The price is still $4.71 below July of 2011. The Class II base for July production is $14.51 up 19 cents from June but $6.78 below a year ago. Class IV base $14.45 up $1.21 from June but $5.88 below last year. Component prices per pound for July: butterfat $1.6556; protein $3.043: nonfat solids $0.9965: other solids $0.3123.

Even though the milk prices will be a little higher the increases are not enough to make up for the increases in feed prices. The Index of Farm Prices for July puts the milk-to-feed ratio at 1.29, the slimmest margin ever.

Filed Under: Dairy, Drought 2012, Featured, News Tagged With: , , , , , , , , , ,

Soybeans, grains bounce from session lows

August 1, 2012 By Leave a Comment

After spending much of the session significantly lower, soybeans came back impressively late in the day closing well off the session lows. Opinions vary as to how much of a difference rain will make to the soybean crop at this point. Most estimates are below 40 bushels to the acre. Soybeans came under pressure Wednesday, primarily because weather forecasts look a little better, but they’re only forecasts and they look only a little better. According to DTN, Thursday’s export sales and shipment report will be closely watched for indications that demand is slowing.

Although on the minus side, corn held up throughout the day in spite of being pulled down from spillover selling, profit taking, and demand concerns. Southeastern U.S. livestock producers may have gotten corn from Brazil for the upcoming months. Ethanol statistics are expected to show reduced production. December corn was able to close more than 19 cents off the low, which could strengthen the market overnight. Fundamentally, corn’s commercial outlook is growing less bullish.

Wheat also ended the session well off its session lows with a late rally. Like corn and soybeans, wheat’s fundamentals seem to have grown less bullish. There are questions about whether Russia will put an export ban in place. Their prime minister says it’s not necessary, but the crop size estimates are at levels that have, in the past, restricted exports. The Minneapolis market was unable to recover quite as well as Chicago and Kansas City.

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

Cheese production nudged higher in June

August 1, 2012 By Leave a Comment

Total cheese production in the United States in June was 897 million pounds up 0.9 percent from June of last year. Italian type cheese production was down 1 percent at 376 million pounds while American type cheese output increased 0.2 percent to 366 million pounds.

Year-to-date total cheese production is 5.4 billion pounds up 2.7 percent from the first six months of 2011. American production is up 2.8 percent and Italian and Cheddar production are each 1.9 percent higher. The year-over-year increases have been steadily decreasing since April.

Wisconsin cheese production increased 1.9 percent in June to 226.99 million pounds. The Badger State made 113.7 million pounds of Italian cheeses up 2.5 percent from June of last year while American type cheese production increased 1.8 percent to 69.5 million pounds including a 2.1 percent increase in Cheddar output.

California cheese production slipped 0.8 percent in June to 183.4 million pounds. The Golden State made 155.4 million pounds of Italian type cheeses down 0.5 percent from last year. American-type cheese production declined 0.3 percent to 48.78 million pounds including a 7 percent drop in Cheddar output.

Rounding-out the top-five cheese producing states compared to June of 2011: Idaho 74.6 million pounds -1.9%; New York 62.2 million pounds +11.6%: New Mexico 60.5 million pounds -2.4%

Butter production in the U.S. in June totaled 137 million pounds down 3.2 percent from June of 2011. Year-to-date butter production is up 6.1 percent at just under 996 million pounds.

Other dairy product production compared to June 2011:

  • Nonfat dry milk 169 million pounds +15.1%
  • Skim milk powders 25.4 million pounds -23.8%
  • Dry whey 83.2 million pounds -0.7%
  • Lactose 89.2 million pounds -0.7%
  • Whey protein concentrate 38.6 million pounds +6.4%
  • Regular ice cream 76.4 million gallons +0.6%
  • Low fat ice cream 42.9 million gallons -5.2%
  • Sherbet 4.01 million gallons -15.5%
  • Frozen yogurt 6.45 million gallons +11.1%

Read the full NASS report here:

Filed Under: Dairy, News Tagged With: , , , , , , , ,

Closing Grain and Livestock Futures: August 1, 2012

August 1, 2012 By Leave a Comment

Sep. corn closed at $8.00 and 1/2, down 6 cents
Aug. soybeans closed at $16.82 and 1/4, down 38 and 3/4 cents
Aug. soybean meal closed at $537.20, down $7.50
Aug. soybean oil closed at 51.73, down 82 points
Sep. wheat closed at $8.79 and 1/2, down 8 and 3/4 cents
Aug. live cattle closed at $119.00, up $.12
Aug. lean hogs closed at $93.20, up $.25
Sep. crude oil closed at $88.91, up $.85
Oct. cotton closed at 70.06, down 52 points
Aug. Class III milk closed at $17.13, up $.05
Aug. gold closed at $1,603.70, down $6.80
Dow Jones Industrial Average: 12976.13, down 32.55 points

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

Johnson says Senate shows how it’s done

August 1, 2012 By Leave a Comment

South Dakota Senator Tim Johnson says the House needs to get with it and pass a five-year farm bill. Johnson told reporters Wednesday that the stand-alone livestock disaster proposal the House will vote on Thursday is not the way to go…

“The Senate has shown how it can be done. The Senate passed a five year farm bill with overwhelming bipartisan support which includes and pays for livestock disaster assistance programs.”

The House disaster bill will need a two-thirds majority to pass. IF it does pass, it would go to the Senate where Senate Ag Chairman Debbie Stabenow is pushing for full reauthorization of a new five-year farm bill.

Johnson says, “I think that the Senate Democrats will go along with the chairman.”

House leadership dropped its proposal to extend the current farm bill with a disaster aid package in favor of a $383 million disaster aid package for immediate drought relief for livestock producers.

Filed Under: Drought 2012, Featured, Livestock, News Tagged With: , , ,

Pork carcass value closes sharply higher

August 1, 2012 By Leave a Comment

Cattle buying interest was light on Wednesday with just a few bids reported in Kansas at 113.00. Asking prices are around 118.00 plus in the South and 185.00 plus in the North. While some packers appear to be short bought, processing margins remain unattractive. Significant trade could be delayed until Friday. The kill totaled 128,000 head, 1,000 below last week, but even with a year ago.

Boxed beef cutout values were steady to weak on light to moderate demand and offerings. Choice boxed beef was down .13 at 177.69, and select was .26 lower at 170.83.

Live cattle contracts on the Chicago Mercantile Exchange settled 5 to 95 points lower with only spot August in the black. Trade volume was quite slow as traders waited for significant cash news to develop. Light bull spreading appeared to be a feature of Wednesday’s futures trade. August settled .12 higher at 119.00, but October was down .32 at 124.07.

Feeder cattle ended the session 22 to 200 points higher, supported by short covering and significant losses in the corn market. August settled at 139.77 up 1.15, and September was .75 higher at 141.12.

[Read more...]

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

Drought’s effect on Christmas tree farms

August 1, 2012 By Leave a Comment

While Christmas tree farmers are seeing many of their seedlings dry up under drought conditions – the outlook for Christmas trees at the end of this year is still considered good.

Rick Dungey, public relations manager for the National Christmas Tree Association in Chesterfield, Missouri, says Christmas trees are protected by not being an annual crop that’s planted and harvested in the same year.  Dungey tells Brownfield, “Yeah, severe conditions can impact new plantings, new seedlings, the little baby trees that farmer have put in the ground earlier this year. A lot of those have been higher than normal mortality rates in a lot of places around the country but even those weren’t going to be harvested at the same time.” 

Christmas trees are harvested between four and 14 years of age – at different stages.  Dungey says, “Trees that have made it to five, six, seven, eight foot tall or even taller, those trees have a well-established root system. So, the tree itself is better able to withstand seasonal weather extremes.”

Dungey says Christmas tree farmers will have to replace the ones they lost but consumers won’t lose out.  Dungey says, “The bottom line is, when we’re ready for harvest, the trees that are harvested and sent to market nobody will never know that they had a tough season. So, consumers shouldn’t worry.  They’ll still be able to get a very high quality tree this year.”

While the drought can slow the growth of Christmas trees and cause some stress, he says, it’s not likely to put growers out of business.  Christmas tree growers, he adds, can buy crop insurance.

 AUDIO: Rick Dungey (8:00 mp3)

Filed Under: Crops, Drought 2012, Featured, News Tagged With: , ,
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