Farming a little more profitable in July

The Preliminary Index of Prices Received by Farmers in July was 3.6 percent higher than June. The National Ag Statistics Service says the Crop Index increased 4.1 percent and the Livestock Index was 1.6 percent higher than a month ago. Producers were paid more for corn, wheat, milk and lettuce, less for onions, strawberries, grapes and cantaloupes.

In the Crop Index: the all wheat price averaged $4.74 per bushel up 57 cents from June; corn averaged $3.55 up 14 cents from last month; soybeans increased 34 cents to $9.79 per bushel; sorghum grain 53 cents higher at $5.90 per cwt while the all hay price slipped $2.00 to $112 per ton.

In the Livestock Index: the July hog price averaged $57.80 per cwt, down 50 cents from June; beef increased 30 cents to average $90.60 per cwt; all milk price up 50 cents to $16.00 per cwt; broilers were unchanged at 51 cents per pound while turkeys increased 2.7 cents to 64.4 per pound.

The Index of Prices Paid in July was unchanged from June. Higher prices for feeder cattle, concentrates, feed grains and other services were offset by lower prices for diesel, LP gas, fertilizer, milk cows and feeder pigs.

Compared to a year ago, the prices received by farmers are 10 percent higher while the prices paid are 2.2 percent above July of 2009.

Read the full NASS report here

What constitutes “natural” chicken?

USDA is looking at changing the rules regarding the use of “natural” on the labeling of chicken. Currently if chicken is not flavored artificially or preserved with chemicals it can be labeled as “natural”. But some processors and others say that still allows for it to be injected with water or other solutions accounting for up to 15 percent of the chicken’s weight. The practice could also increase sodium content.

Tyson Foods and Pilgrim’s Pride are among processors who use “natural” labels on chicken injected with salt water. Tyson says their national research found consumers didn’t mind as long at the added ingredients were considered natural. Perdue Farms, a member of the Truthful Labeling Coalition argues that under no circumstances is it acceptable to label chicken injected with water, broth or any other solution as “natural”. Senator Barbara Boxer of California called for a change in labeling to help consumers make an informed choice.

Expectations are USDA will propose new rules this fall.

DeLauro introduces E.coli traceability act

Congresswoman Rosa L. DeLauro (D-CT) introduced the E. coli Traceability and Eradication Act which will require stricter testing procedures for meat and processing facilities with the goal of completely eradicating toxin-producing E. coli bacteria, and establishing a tracking procedure that will enable the USDA to implement faster recalls should any be found to be contaminated. The bill would require meat processing facilities to have an independent USDA-certified testing facility test ground beef and beef trim multiple times throughout the manufacturing process.

If any contamination is found it must be reported to USDA immediately. USDA would test products from that facility for 15 consecutive days following the positive test. Any facilities producing unsafe products for either three consecutive days or ten days throughout a year, their company named will be posted to a list of safety offenders with the USDA.

Additionally, the legislation will create a tracing protocol that will enable the USDA to track any contaminated meat or meat products which DeLauro says will lead to faster recalls and less hazard to consumers.

Vision of IL Agriculture to host forum

To raise awareness and have a better understanding of the financial situation facing Illinois, Vision for Illinois Agriculture will be hosting “A Forum on Fiscal Integrity” August 3, in Bloomington. Phil Nelson, Illinois Farm Bureau President says the forum is designed to jumpstart the dialog.

“We’re bring people, key people together that understand the budget, understand where you can make cuts, where you can’t, what services are going to be impacted, to really start getting our members up to speed as to the whole fiscal situation of this state,” Nelson said.

The forum will be held Wednesday, August 3 at the Double Tree Hotel in Bloomington, Illinois beginning at 9:30 a.m.

AUDIO: Phil Nelson, President, Illinois Farm Bureau (1:50 MP3)

Schwarzenegger vetos farm overtime bill

California Governor Arnold Schwarzenegger has vetoed a bill which would have required overtime pay for California farm workers after 8-hour days. The Governor wrote in his veto message the requirement would be burdensome, “recognizing that agricultural work is different from other industries: it is seasonal, subject to unpredictability of Mother Nature and requires the harvesting of perishable goods.”

Supporters of the bill contend those who work in the fields should not be treated differently from those who process and pack the food or stock the grocery store shelves.

California does, in fact, have a law requiring overtime pay for farm workers for anything over 10 hours per day or for the seventh day of a week after six consecutive days of 10 hours or more. No other state has any overtime requirement for farm workers.

Johanns seeks prevention of cap-&-trade “deals”

Nebraska Senator Mike Johanns has taken a step to try and block cap-and-trade provisions from a House-Senate Conference bill. If action to block cap-and-trade isn’t taken in the Senate then his amendment would require 67 Senators approving it for it to become law without being debated in the Senate.

Johanns says his amendment would prevent Democrats from trying to pass cap-and-trade by attaching it to a conference report during a lame duck session as he says is being reported.

Johanns asserts the negative impact on farmers, ranchers and all Americans from cap-and-trade in higher taxes and energy costs would be “devastating” and should not be “snuck in” behind the scenes.

Steve Hickey to join ISDA staff

Steve Hickey, who for the past 30 plus years, served as the Shenandoah High School’s Agricultural Education Instructor and FFA Advisor has a new job, Hickey has been named Director of Leadership Programs at the Indiana State Department of Agriculture (ISDA). In his new position Hickey will also serve as Executive Director of the Indiana FFA and Indiana Young Farmers Association (IYFA).

“Steve’s passion for agricultural education and serving young farmers is second to none,” said Indiana Agriculture Director, Joe Kelsay. “With this background, I believe that Steve will be a remarkable asset to ISDA, the FFA Organization, the Young Farmers Organization and Indiana agriculture as a whole.”

House Ag Committee passes three bills

The House Agriculture Committee has sent three bills to the full House for consideration:

H.R. 5852, the Mandatory Price Reporting Act of 2010, reauthorizes mandatory price reporting programs run by the U.S. Department of Agriculture for five years. It also adds mandatory reporting for wholesale pork cuts and electronic reporting for dairy products. Among the complaints at the USDA Dairy Competition Workshop in Madison last month were charges the CME cash cheese exchange is too thinly traded and not a good price discovery mechanism.

H.R. 3519, the Veterinary Services Investment Act, establishes a competitive grant program at USDA to support efforts to increase access to veterinary care in underserved areas.

H.R. 5509, the Chesapeake Bay Restoration and Improvement Act gives farmers and ranchers in the Chesapeake Bay region additional tools to help them meet regulatory requirements imposed on them by the Environmental Protection Agency.

Federal judge halts some parts of Arizona immigration law

A federal judge has issued an injunction blocking some elements of the Arizona Immigration Law set to take effect Thursday. U.S. District Court Judge Susan Bolton put a “hold” on the section which allows police officers to ask for immigration or citizenship papers from anyone suspected of being in the country illegally. That provision drew charges of racial profiling. The Judge also delayed a requirement that immigrants must carry their papers at all times and delayed a provision making it illegal for undocumented workers to apply for work in Arizona. Judge Bolton says those provisions are pre-empted by federal law.

The State of Arizona is expected to appeal the ruling, most expect the case to end up in the U.S. Supreme Court.

Many in agriculture are keeping a close eye on this situation as immigrant labor plays a large role in everything from vegetable production to meat packing and dairy.

Legislation would extend market reporting

Legislation to reauthorize mandatory livestock price reporting for five years has been introduced in the Senate.  It also makes two significant changes to existing law. 

The bill calls for mandatory reporting of wholesale pork cuts in order to expand transparency to the pork industry.  It also instructs the Secretary of Agriculture to establish within one year an electronic price reporting system for dairy products.

The legislation was introduced by Senate Ag Committee chair Blanche Lincoln and Ranking Member Saxby Chambliss.

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