Bipartisan bill would block EPA GHG regulation

A bipartisan bill to stop the Environmental Protection Agency from regulating greenhouse gases has been introduced by Congressman Ike Skelton and Congresswoman Jo Ann Emerson of Missouri, along with Chairman of the House Ag Committee, Collin Peterson of Minnesota.

Their bill would amend the Clean Air Act to take out regulation of greenhouse gases as they relate to global climate change, amend the 2007 Energy bill to stop EPA from using indirect land use calculations for renewable fuels policy and broaden the definition of “renewable biomass” to help strengthen the U.S. biofuels industry.

Chairman Peterson says he has “no confidence in the EPA” to regulate greenhouse gases under the Clean Air Act “without severe harm to all taxpayers.”

Congressman Skelton suggests setting the clean energy bill that’s moving through Congress aside and pass this “scaled back bill”, what he calls a “responsible way to move forward”, that “gets the EPA under control” and “provides good things for American farmers.”

Congresswoman Emerson says “cap and trade energy taxes would be devastating for Missouri and the nation.”

The Missouri Corn Growers, Missouri Soybean Association, Missouri Rural Electric Cooperatives and other groups are among those that support the bill.

While the EPA’s energy plan announced last week decreases the amount of indirect land use “impacts” from corn-based ethanol and biodiesel in the Renewable Fuels Standard, it does not completely dismiss the theory.

USDA’s NAIS decision called “rare victory”

There are more positive reactions to last week’s announcement by USDA to pull back and regroup on its National Animal Identification System, NAIS. A farm policy research analyst says the USDA’s announcement that the NAIS will be replaced is a “victory of the nation’s family farmers over the political power of corporate agribusiness” that’s all too rare. Cornucopia Institute senior farm policy analyst Mark Kastel (in Wisconsin) says in this case, Secretary Vilsack “definitely listened to the will of the people.” He commends the secretary for addressing a variety of issues and says he’s proven himself to be a “a savvy and pragmatic political leader.”

Judith McGeary, executive director of the Farm and Ranch Freedom Alliance says they applaud Vilsack for listening to their concerns and deciding to “abandon the NAIS.” She says her group will urge the Secretary to involve a broad range of groups and people as it moves forward with developing a new framework for traceability.

The USDA’s new approach replaces NAIS with a focus on states and tribes setting up requirements for animal traceability for interstate commerce.

The Missouri Rural Crisis Center commends USDA for canceling the National Animal Identification System. Crisis center director Rhonda Perry says the decision to scrap the program is “a direct result of grassroots opposition by producers and concerned consumers across the country.” Perry says they knew all along that NAIS “was created by industrial livestock and meatpacking interests to shift the burden of animal disease and food safety onto the backs of family farmers.” Fifty-four of the 55 Missourians who testified during the USDA’s listening session in Jefferson City last year went on record opposed to NAIS.

Perry says the MRCC is grateful to Secretary Vilsack for listening and taking action and to Senator Claire McCaskill “for standing in opposition to NAIS” as the Senator urged Vilsack to hold a listening session in Missouri and expressed to him her concerns about the USDA’s proposed rule to fully implement NAIS.

Perry, a livestock and grain farmer in Howard County, Missouri, says it’s her group’s hope that moving forward the USDA will continue to consult with independent farmers.

NPPC still supports mandatory NAIS

The National Pork Producers Council has a lot of questions about the new USDA proposal for a scaled-back version of the National Animal ID Program. Last week, Ag Secretary Tom Vilsack announced a plan which would only require animal identification for animals which cross state lines. The plan would also be administered by states and tribal nations instead of the federal government.

The National Pork Producers Council has been on record in support of a national mandatory animal ID system and Dave Warner with NPPC says they still believe that is the way to go. Warner says while they are supportive of the USDA effort, they have concerns with tracing animals which are born, raised and slaughtered within one state. “What would happen if such an animal were to contract such a disease, what happens to all of the other animals within that state?” He wonders if all of those animals would then be quarantined.

Along with that, NPPC is very concerned about the possible loss of export markets if there is a case of one of these diseases with no way to trace it directly to a farm. If we can assure our export partners within a short period of time that meat from other farms, other areas would be safe we should be ok, “Without that ability, we will see some of our trading partners closing their markets to our meat exports.”

Meanwhile, Warner says NPPC will continue with their swine ID program which includes premises registration, “Through 2009 we have 85 percent of all swine premises in this country registered.”

AUDIO: Dave Warner comments on the proposed changes

Grains and oilseeds higher ahead of USDA numbers: February 8, 2010

Soybeans hit one and a half week highs on technical and speculative buying, along with short covering and some outside market direction. The Dow was down for most of the trading day but the dollar was lower and gold and crude oil were higher. Analysts expect USDA’s monthly supply and demand update to show ending stocks down from January with the average estimate at 219 million bushels, compared o 245 million a month ago. USDA will also be reporting updated international ending stocks and production projections with the report due out at 7:30 AM Central. Bean oil hit three week highs and meal was up on spillover from beans and position squaring ahead of the USDA numbers.

Corn was higher on fund and technical buying, in addition to short covering and spillover from beans. Demand has increased after the recent losses, especially on the end user side and there is some talk that March has bottomed out at $3.50. Even with a probable reduction from the Ag Department, the trade expects fairly large ending stocks in the USDA update. The average pre-report estimate is 1.748 billion bushels, compared to January’s figure of 1.764 billion. Ethanol futures were higher.

The wheat complex was higher on technical buying, short covering and the lower dollar index. Analysts see U.S. ending stocks steady to a little smaller than the previous month’s report. Ahead of the report, the average projection is 973 million bushels, compared to 976 million in January’s update. Those fundamentals remain very negative with a large supply and weak demand, which should be reflected in the new supply and demand estimates. Snowfall’s a negative, giving cover to the dormant hard and soft red winter crops. Iraq bought 400,000 tons of wheat from Canada. FO Licht estimates 2009/10 world wheat production at 675.5 million tons, up 1.5 million from January on a better than expected crop in the Black Sea region. Russia, according to Dow Jones Newswires, will be building a new grain export terminal on their second largest Black Sea port of Tuapse. The terminal’s expected to have an annual capacity of 2.4 million tons.

IFAP appeals for aid for Haitian farmers

The International Federation of Agricultural Producers (IFAP) is appealing for “international solidarity with the farmers and people of Haiti” in the aftermath of last month’s devastating earthquake. The IFAP says farmers in Haiti are the backbone of that society. It’s estimated, as of late January, that over 20-thousand of the 35-thousand smaller farmers in rural Haiti have been either wounded or affected by the earthquake in some way. The head of the Union of Haitian Peasants (UHP), the national farmer’s organization, says the Haitian government is not capable of handling the “magnitude” of the disaster and that rural communities are not likely a priority for aid. He says the situation for these farmers is “truly critical and beyond words.”

Northern Haiti has been very productive in fruit and vegetable crops in partnership with a French aid organization which is appealing through the French arm of the IFAP for help to keep the project going in order to meet the food supply demand.

The IFAP says the mass exodus of those in Port-au-Prince to the rural areas of Haiti has increased the need for help.

The IFAP says to offer moral or financial support, please contact Mr. Jean-Claude Dorsainvil, Secretary General of UHP at uhpeasants@yahoo.ca

Lean hogs settle sharply higher on outside markets

Cattle country was typically quiet on Monday with significant trade volume not likely until mid-week or later. The new show lists appear to be generally smaller than last week with only Texas showing more offerings. Negotiated sales last week were confirmed at 158,130 head. Live cattle in the South last week sold 1.00 to 2.00 higher from 86.00 to 87.00. In the North dressed sales were 1.00 to 2.00 higher from 137.00 to 138.00. The early asking prices on this week’s cattle are 89.00 plus in the South, and 140.00 plus in the North. Monday’s slaughter was estimated at 11 7,000 head, 8,000 less than last week and 10,000 below last year. Boxed beef cutout values closed firm on light demand and light to moderate offerings. Choice beef was up .75 at 138.65, and select was .98 higher at 136.48.

Chicago Mercantile Exchange live cattle contracts settled 17 to 45 points higher supported by the higher cash trade last week. A lower U.S. dollar was seen as supportive to futures as it may prompt importers to buy more beef. Higher boxed beef values at midday leant additional support to futures. February was 25 points higher at 87.67, and April was up 40 at 90.80.

Feeder cattle ended the session 20 to 90 points higher with support coming from the outside markets and the live pit. March was 90 points higher and settled at 99.22, April ended at 100.02 up 35.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 6800 head. Compared to the last test two weeks ago, feeder cattle were steady to 1.00 higher and calves were steady. Demand was good. Snow was falling again in the state; however, this one is not as strong as the previous two storms.  Feeder steers medium and large 1 weighing 500 to 600 pounds traded at 103.50 to 113.00. 5 to 6 weight heifers brought 94.00 to 100.75.

Iowa/Minnesota barrows and gilts closed .72 higher at 64.46 on a carcass basis, the West was up .82 at 64.90, and the East was 1.78 higher at 63.56.Missouri direct base carcass meat price closed 3.00 to 4.00 higher from 58.00 to 62.00.  Hog slaughter was estimated at 422,000 head, 10,000 more than last week, but 1,000 less than last year. Mid-winter numbers are about as tight as they are going to get with the country offerings set to increase in the March/April time frame. Snow and cold temperatures could curtail weight gains and livestock movement in the Midwest through the middle of the week.

Lean hogs settled 80 to 222 points higher with the most significant strength in the April through August contracts. Support came from outside markets bouncing higher after heavy selling late last week. Midwest storms once again are bringing snow and strong winds to be followed by very cold temperatures and that helped to support the cash market. February hogs settled 80 points higher at 67.57, and April was up 205 at 69.77. Pork carcass cutout value was .30 lower at 68.82. Pork trading was slow with light to moderate demand and offerings.

Pork bellies settled 95 to 200 points higher on the gains in the lean contracts as well as upward momentum in the outside markets. February settled 100 points higher at 81.00, and March was up 200 at 82.00.

Closing Grain and Livestock Futures: February 8, 2010

March corn closed at $3.56, up 4 and 1/2 cents
March soybeans closed at $9.29 and 1/2, up 16 cents
March soybean meal closed at $274.40, up $3.40
March soybean oil closed at 37.95, up 95 points
March wheat closed at $4.84, up 10 and 3/4 cents
February live cattle closed at $87.67, up 25 cents
February lean hogs closed at $67.57, up 87 cents
March crude oil closed at $71.89, up 70 cents
March cotton closed at 69.16, up 254 points
February Class III milk closed at $14.14, up 4 cents
Dow Jones Industrial Average: 9,908.39, down 103.84 points

NASS survey

Between now and March, field offices of the National Ag Statistics Service (NASS) will be contacting 35,000 farmers nationwide to gather information for the annual Agricultural Resource Management Survey (ARMS).

The survey will ask producers to provide data on their operating expenditures, production costs and household characteristics. The economic data will be released in August.

Vegetable production

At just 800 acres, tomatoes harvested for the fresh market in Indiana was down 11 percent in 2009. Yield per acre was down 6 percent and total production declined by 17 percent.

Processing tomato acreage in Indiana was up 18 percent in 2009 to 9,800 acres, production jumped 29 percent to 321,340 tons.

The Indiana field office of the National Ag Statistics service reports 2,200 acres of cantaloupes were harvested in Indiana in 2009, a 4 percent decline from the previous year, watermelon growers harvested 7,400 acres which was a 3 percent increase.

AAI to host 2010 trade show and conference

The Agribusiness Association of Iowa holds its 2010 Showcase and Conference this Tuesday and Wednesday in Des Moines. Mark Reisinger is the CEO of the association, “The first day is seminar-based educational opportunities for CCAs and individuals involved in the grain and seed industries. And, the second day is a traditional trade show of sorts, although we’re developing a number of entertainment-type opportunities at the trade show. It should be a good time for everybody that shows up.”

Among the speakers is Larry Elsworth, Ag Counselor to EPA Administrator Lisa Jackson. The AAI showcase and conference is February 9th and 10th at the Varied Industries Building at the Iowa State Fairgrounds.

AUDIO: Mark Reisinger, CEO of the AAI

Agribusiness Association of Iowa

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