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A little more cheese in the coolers

May 22, 2013 By Leave a Comment

Total cheese in cold storage at the end of April 1.012 billion pounds up 1 percent from the end of March and 4 percent more than a year ago. The National Ag Statistics Service says American type cheese stocks increased 2 percent for the month and 5 percent for the year ending April at 698.77 million pounds. Butter in cold storage totaled 310.66 million pounds up 22 percent for the month and the year.

National Dairy Products Sales Report for the week ending May 18th, cheddar cheese blocks averaged $1.88 per pound down 0.4 cents from the previous week. Barrels were up 2.1 cents to average $1.76, butter decreased 4 cents to $1.64, dry whey was a half-cent lower at 57.2 cents per pound and nonfat dry milk decreased 0.6 cents to average $1.63.

The Class I base price for June is $18.93 per hundredweight up $1.17 from May. The base skim milk price for Class I is $1.20 higher at $13.09. These are the highest Class I base prices since January.

Read the full NASS Cold Storage Report here:

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

Chicago Fed farmland values up but moderating

May 16, 2013 By Leave a Comment

The Federal Reserve Bank of Chicago says while farmland values continue to increase, there are signs of moderation. For the first quarter of 2013, agricultural land values appreciated 4 percent in the district from the fourth quarter of 2012. They are up 15 percent from the first quarter of a year ago. Cash rental values are up 11 percent for the year.

Demand for farmland is good, the number of farms sold, the amount of acreage sold and the amount of land for sale rose over the winter months.

Agricultural credit conditions improved for the quarter as well, 61 percent of the banks responding said they had more funds available and only 1 percent said they had less. 47 percent of the banks responding reported higher rates of repayment and 35 percent reported fewer loan renewals and extensions. 46 percent of the bankers noted lower demand for non-real estate farm loans and 13 percent reported higher demand. The average loan-to-deposit ratio is the lowest it has been since 1994, 89 percent of the District’s banks say they are below the desired level of lending.

Change in agricultural land value by state compared to the previous quarter and a year ago:

  • Illinois       +5%    +19%
  • Indiana      +4%    +15%
  • Iowa            +3%    +20%
  • Michigan   +12%  +24%
  • Wisconsin      0%   -3% *

*although southeastern Wisconsin saw +7% for the quarter and +3% for the year, it was not enough to offset the decline in the northwestern-half of the state.

Rental rates in 2013 compared to 2012 by state:

  • Illinois +9%
  • Indiana +11%
  • Iowa +13%
  • Michigan +2%
  • Wisconsin +12%

Read the Federal Reserve Bank of Chicago Ag Letter here:

Filed Under: Human Interest, News Tagged With: , , , , , ,

Dairy bounces back

May 16, 2013 By Leave a Comment

A bit of a rebound in the dairy markets the last couple of days. Cash cheese barrels gained 2.25 cents on the Chicago Mercantile Exchange on Thursday while blocks added a penny. Class III futures for June have increased 69 cents since Tuesday, the July contract has increased 69 cents since Wednesday.

Dairy Market News says milk production is variable in the Central Unites States while the South and Northeast are seeing a strong comeback in production. Florida exported 90 loads this week. The flush is yet to arrive in the West. California changed its 4b pricing formula this month and producers are seeing a higher pay price.

Some are wondering what is going to happen when schools close for the summer, right now spot loads are running even to $1.60 over but that could quickly turn-around.

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Agriculture contributes $37.9 billion to Indiana’s economy

May 16, 2013 By Leave a Comment

Agriculture's Bounty report.A new study detailing the impact of agriculture on the state shows that agriculture-related industries contribute nearly $38 billion to Indiana’s economy. 

Rosalind Leeck, director of grain marketing for Indiana Soybean Alliance says the research, conducted by Indiana University Kelley School of Business and funded by the Indiana Soybean Alliance, details just how significant agriculture is to the state.  “When you look at the agriculture industry’s direct impact to the economy at $25.4 billion, that number alone is pretty significant,” she says.  “When you look percentage of GDP this study captures 5 percent of Indiana’s total Gross Domestic Product.”

Leeck tells Brownfield one of the figures that jumped out at her was the jobs number.  “You’ve got 103,000 people who are directly involved in crop production and processing,” she says.  “Total the agricultural economy contributes to 190,000 Hoosier jobs.”

In addition, she says, the economic activity related to Indiana agriculture and forestry created about $970 million in state and local revenue and nearly $1.5 billion in federal dollars.

Leeck says she hopes this study helps draw attention to just how much impact agriculture has on Indiana’s economy. 

To view the entire Agriculture’s Bounty:  The Economic Contribution of Agriculture report click HERE.

AUDIO: Rosalind Leeck, Indiana Soybean Alliance (3:36mp3)

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

Which plan is better for your milk check?

May 16, 2013 By Leave a Comment

After a lengthy discussion on Wednesday, members of the House Agriculture Committee rejected an effort to change the dairy title in the farm bill. Like the Senate version, the House Ag Committee farm bill will include the Dairy Security Act and its controversial supply management provision. Two lead-spokesmen in the debate have been Jerry Kozak, president and CEO of the National Milk Producers Federation and Jerry Meissner, a Wisconsin dairy producer and president of the Dairy Business Association.

AUDIO: Meissner and Kozak make their points 3:00 mp3

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House Ag Committee sticks with Dairy Security Act

May 15, 2013 By Leave a Comment

After a lengthy discussion, the House Agriculture Committee defeated an attempt to change the Dairy Security Act in the farm bill. Congressmen Bob Goodlatte (R-VA) and David Scott (D-GA) introduced their alternative plan which would provide margin insurance for milk producers but without any supply management provision.

While the two representatives cited support for their plan from dairy processors and a number of dairy producers, ranking member Collin Peterson (D-MN) countered with producer support via the National Milk Producers Federation along with a number of ag economists. Peterson stated that margin insurance without supply management would encourage overproduction even in times of low prices.

Goodlatte noted that House Speaker John Boehner opposes the Dairy Security Act and that was one of the reasons the farm bill never came to the floor in the last Congress asking, “Do we want to run into that wall again?”

The Hill reports that while House leadership may not be on-board, Chairman Lucas acknowledged the farm bill needs Peterson and the Democrats to pass the House. In the end, Goodlatte-Scott failed with 20 voting “yay” and 26 voting “nay”. The Dairy Security Act moves forward.

The farm bill passed by the Senate Ag Committee on Tuesday also contains the Dairy Security Act.

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

Global Dairy Trade prices decline again

May 15, 2013 By Leave a Comment

Global Dairy Trade auction at Fonterra on Wednesday saw prices decline for the second consecutive sale. Overall prices declined 2.1 percent from the May 1st sale. Rennet Casein was the only product to see an increase over the last sale, up 3.7 percent. Anhydrous milk fat slipped 0.2 percent, whole milk powder was 1.7 percent lower, skim milk powder declined 2.8 percent, butter milk powder fell 5.1 percent and butter dropped 12.4 percent. There were no sales of cheddar cheese, milk protein concentrates or lactose.

Meanwhile here in the U.S.A., National Dairy Products Sales for the week ending May 11th, cheddar cheese blocks averaged $1.89 up 3.1 cents from the previous week. Barrels decreased 2.1 cents to $1.74, butter lost 3.8 cents to average $1.68, dry whey was 0.2 cents lower at 57.8 cents per pounds and nonfat dry milk increased 3.5 cents to $1.64.

It was a mixed day in the dairy markets on Wednesday; cash cheese barrels increased a half-cent on the Chicago Mercantile Exchange to $1.73 while blocks lost another 2.5 cents to $1.755. The barrel-to-block spread is down to 2.5 cents from 23 cents a couple of weeks ago. Class III futures rebounded with the June contract moving back above the $18 mark.

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STL Fed – 1st quarter farm income/spending up

May 15, 2013 By Leave a Comment

First quarter farm income and capital spending both rose in the Midwest and Mid-South, compared to this time last year, according to the St. Louis Federal Reserve Bank. Both income and spending were higher than expected.

But, the fed cautions that risks remain with the “ongoing weakness in the US economy and higher producer input costs.”

The results were fromm 55 ag bank leaders in the Eight Federal Reserve District which includes all or parts of seven states including Illinois, Indiana and Missouri (also, Arkansas, Kentucky, Mississippi and Tennessee).

Filed Under: Crops, News Tagged With: , , ,

KC Fed says non-irrigated farm land values up

May 15, 2013 By Leave a Comment

Values of non-irrigated farm land rose in parts of the U.S. Great Plains and the Rocky Mountains in the first quarter of the year, according to the Kansas City federal reserve bank, via Dow Jones newswires.

They say the biggest rise in non-irrigated farmland values were in portions of western Missouri.

District wide, the value of non-irrigated farmland rose 19 percent above this time last year.

But they says farmers face rising production costs and an expected drop in crop prices in what the government expects to be record harvests this fall. Ongoing drought conditions and livestock price decline affected first-quarter profitability.,

The district covers ag lenders in Wyoming, Nebraska, Kansas, Oklahoma, Colorado, western Missouri.

Filed Under: Crops, Livestock, News Tagged With: , , ,

Dairy continues to slip

May 13, 2013 By Leave a Comment

The cheese market continues to slip and there was extra pressure on milk futures from last week’s monthly World Agricultural Supply and Demand Estimates which predicted an increase in milk production this year and next year. Cash cheese barrels held steady on the Chicago Mercantile Exchange on Monday but blocks lost another 4.25 cents. The Class III futures declined again with the June contract falling below $18 to $17.76.

Commercial disappearance of dairy products in the U.S. from December through February was 47.4 billion pounds, 0.6 percent below the same period a year ago. Nonfat dry milk disappearance was down 20 percent, fluid milk use declined 2.3 percent, American-type cheese utilization was 1.3 percent lower, other cheese use declined 0.1 percent and butter use increased 3.1 percent compared to a year ago.

It has been raining on the North Island of New Zealand but it has had limited impact on milk production. This is the end of the production year on Oceania when cows are dried-off so the rainfall isn’t going to do much right now. Milk production for the year is tracking below year-ago levels and that is probably where it will end up. Plants are running reduced schedules. Pretty well the same story in Australia. Farmers are feeding supplemental feedstuffs to make up for what the pastures lack.

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