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Today's First Look:
mornings with cash and futures reviewed- includes where the Cash Cattle market stands, the latest Feeder Cattle Markets Etc.
Each afternoon we are posting a recap of that day's markets as analyzed by Justin Lewis of KIS futures
- click or tap here
for the report posted yesterday afternoon around 3:30 PM.
Okla Cash Grain:
Feeder Cattle Recap:
Slaughter Cattle Recap:
TCFA Feedlot Recap:
Our Oklahoma Farm Report Team!!!!
Ron Hays, Senior Farm Director and Editor
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Dave Lanning, Markets and Production
|Oklahoma's Latest Farm and Ranch News
Your Update from Ron Hays of RON
Friday, November 3, 2017
Ag Community Has Mixed Emotions About Congress' Proposed Tax Plan
The repeal of the death tax and lower individual and corporate tax rates all appear to be included in the tax reform plan released yesterday by the House Ways and Means Committee - yet specific details were not made totally clear. Upon the committee's release of the plan, the American Farm Bureau Federation was the first to react positively to the outlined reform measures. However, it did acknowledge that further analysis of the proposed plan would be needed to ensure it does in fact reduce farmers' tax burdens.
"We will be studying the plan to ensure the new rate structure reduces the tax burden of our nation's farmers and ranchers and gives them the flexibility they need to reinvest in their businesses," said Zippy Duvall, AFBF president. "We are long overdue for a permanent tax code that recognizes the unique financial challenges farmers and ranchers face in managing their businesses and keeping their farms running from one generation to the next."
You can read Duvall's complete statement made in reaction to the proposed tax plan by the House, by clicking here.
On the other hand, Chuck Conner, president and CEO of the National Council of Farmer Cooperatives was substantially less optimistic about the viability of the plan. According to Conner, provisions in the plan that would eliminate certain existing tax legislation, could actually raise taxes on millions of farmers and negatively impact rural economic activity. In his perspective, the plan proposed by the House would effectively do the exact opposite it is intended to do.
"Farmers have been told that tax reform will give them more money in their pockets to invest back in rural communities. The House tax reform package takes money away from farmers at a time when they are suffering from extremely low commodity prices. Rural America strongly supports a pro-growth tax policy, but the proposal to eliminate Section 199 will have the exact opposite effect."
Click here to read more of Conner's comments regarding his perspective on the proposed tax reform plan, released yesterday.
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. National Livestock has been around since 1932- and they have worked with livestock producers to help them secure credit and to buy or sell cattle through the National Livestock Commission Company. They also own and operate the Southern Oklahoma Livestock Market in Ada, Superior Livestock, which continues to operate independently and have a major stake in OKC West in El Reno. To learn more about how these folks can help you succeed in the cattle business, click here
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|Oklahoma Beef Checkoff Vote Complete- Results Expected by the End of Next Week
The ballot phase of the voting process for the Oklahoma Beef Checkoff Referendum was completed earlier this week on Wednesday. And now, it will be the latter part of next week before Oklahoma cattle producers will know the official outcome.
From this point, Double L Consulting, the third-party firm chosen by the Oklahoma Cattlemen's Association as the authorized organization to conduct the referendum, will collect, count and verify the ballots and deliver the results to Oklahoma Secretary of Agriculture Jim Reese, who will then release a statement announcing the vote's outcome.
The OCA released its own statement yesterday, thanking those producers who participated in the voting process, and offered a final explanation of the process moving forward for the tabulation of the ballots.
If approved, the collection of the second dollar will commence May first, 2018. The assessment will be completely refundable if a request is made within sixty days of the dollar being collected in conjunction with the sale of an animal.
The National Pork Producers Council urged Congress, yesterday, to renew its commitment to funding agricultural research to help America's farmers feed a growing world population, improve public health and strengthen U.S. national security by ensuring America's food security.
NPPC chief veterinarian Dr. Liz Wagstrom offered testimony to the House Committee on Science, Space and Technology Subcommittee on Research and Technology explaining how our nation's historical commitment to research has help the US produce the safest food on Earth, in the most cost-effective manner. She noted that research has saved the pork industry from threats of disease in the past and believes it will again as U.S. agriculture remains vulnerable to emerging and foreign animal diseases.
One such threat, in particular, is Foot and Mouth Disease. Wagstrom advocated in her testimony that current vaccine stores would not be adequate in the event of an outbreak and called for provisions to made in the upcoming Farm Bill to fund a modernized FMD vaccine bank. If left unchecked, an FMD epidemic in the livestock sector could potentially cause approximately $200 billion in agricultural losses.
Wagstrom says the federal commitment to agricultural research has waned recently, pointing out that the USDA has adjusted its research budget down 20 percent since 2008.
According to OSU Extension Grain Market Economist Dr. Kim Anderson, the Kansas City July contract placed against the basis yields a price of right at $4.00 or perhaps just under for producers' 2018 wheat.
However, during his appearance on this week's episode of SUNUP, he suggests to host Lyndall Stout
, that if the right management decisions are made during the growing season, producers could potentially command $5.00 wheat come harvest.
The world is awash with wheat, right now, Anderson says and the demand for high-quality protein is high. Anderson contends that if producers can grow a crop that delivers on both high protein and high test weight, he believes the price will go up. He reports, too, that planted acres are expect to be down this year as well. Some early estimates putting total acreage at about five to ten percent lower than last year - somewhere around 4 million acres - the lowest since 1942 and 1918, going further back. But, the acreage isn't likely to help too much.
According to Anderson, the big problem lies across the Atlantic, meaning Russia and the Ukraine. These former Soviet Union states have produced tremendous amounts of wheat (nearly 3 billion bushels) and high-quality stuff at that, with an average protein content at 12.4 percent.
Anderson says these countries are cornering the protein market and absorbing export market sales, stealing them from the EU, Australia, Argentina and even the US.
His advice to producers is to simply stay the course and most importantly - use good management to produce a high-quality crop.
You can watch Kim's visit tomorrow or Sunday on SUNUP - or you can hear Kim's comments right now and find out what else is being featured in this week's line-up, by clicking or tapping here.
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|CME's Collaboration with Cattle Industry Yielding Some Welcomed Improvements to the Futures Market
About a year and a half ago, the CME Group began working with the National Cattlemen's Beef Association and the cattle industry to make changes to live and feeder cattle contracts to more closely align them with cash market values. While the changes made so far were not specifically designed to lower the level of volatility in the market which past incidents helped to spark this effort, CME's Managing Director of Agricultural Products Tim Andriesen
says, that volatility seems to have calmed a bit compared to two years ago. He claims there are outside factors out of the CME's control that contribute to volatility. But the feedback from the cattle industry thus far in the process of making changes, has been positive.
There are multiple factors beyond the Exchange's control which impact volatility - including weather, supply and demand, exports, strength of the US dollar and lack of transparency in cash cattle markets," Andriesen said. "We believe this has made them (changes made to cattle futures contracts) more effective hedging tools and has been evidence by increased levels of open interest in commercial participation in our markets this year, versus 18 months ago."
Some of the changes made to contracts since 2016 include the implementation of a more efficient messaging program, a reduction in livestock futures and options trading hours, the addition of a seasonal discount to cattle delivered to Worthing, SD and a revision to quality and grading specs. The CME has also added delivery locations this year which is expected to help increase delivery capacity. But, still, Andriesen says the process to improve contracts in a way that make them more reflective of cash cattle markets, is ongoing and they continue to take feedback from their customers.
"We value our relationship with the cattle community and are committed to helping producers and commercial firms manage their price risk," he said. "Nothing is more important to us than the integrity of our markets."
Listen to Andriesen explain some of the measures taken by the CME Group over the last 18 months to help increase transparency and lower risk in their trading platform, on yesterday's Beef Buzz - click here
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Yesterday, Sam Clovis
withdrew his nomination to a Department of Agriculture post. President Trump
nominated Clovis earlier this year to serve as USDA's undersecretary for research, education and economics, effectively known as the USDA chief scientist position. However, Clovis was recently linked to the investigation into the links between the Trump campaign and Russia.
Clovis says in a letter to President Trump that he does "not want to be a distraction or a negative influence." He cites "relentless assaults" on the Trump administration that "seem to be a blood sport."
White House spokeswoman Sarah Huckabee Sanders
says the administration respects his decision to withdraw.
Clovis, who was already serving as the senior White House adviser on USDA, added that he will "continue to serve at the pleasure" of President Trump and Agriculture Secretary Sonny Perdue
. His nomination faced a tough road as some in the Senate, including Ranking Agriculture Committee member Debbie Stabenow
, questioned his qualifications for the USDA post. Stabenow called the withdraw "a victory for science" and farmers who rely on agricultural research.
Stabenow released a statement yesterday, in light of Clovis' decision to withdraw from the Senate's consideration as a nominee to the USDA post. Click here
to read her complete statement.
Earlier this summer- soon after Clovis was nominated to take the lead science position at USDA- Politico reported
that several Ag Groups, including American Farm Bureau and the National Corn Growers, wrote a letter to Senators Roberts and Stabenow saying "Some have suggested that Dr. Clovis is not qualified for this position due to his lack of hands-on science and research experience. We do not share this point of view. The U.S. Department of Agriculture already employs some of the finest and most dedicated scientists in the world. They do not need a peer. They need someone to champion their work before the administration, the Congress, and all consumers around the world."
|Scott Biggs Resigns From State Legislature- Headed to USDA?
Scott Biggs has resigned his House 51 District seat, effective immediately, to take a position with the Trump Administration. Biggs, perhaps best known in the agricultural community as one of the authors of the underlying legislation that resulted in State Question 777, told House Speaker Charles McCall in a letter that he was resigning to "accept a federal appointment, that I will be starting immediately."
Representative Biggs went on to say that "I believe I can much more for our state, as I work to promote the Agriculture industry in Oklahoma, which has always been and will continue to be an integral part of my family's heritage."
In checking with several folks- it appears that Scott Biggs may be in line to take one of the two political patronage jobs within USDA at the state level- the Executive Director of the Farm Service Agency.
Earlier this year, after Donald Trump became President, Oklahoma Senators Inhofe and Lankford consulted with the Ag Community and recommended a couple of folks to take that position as well as the Director of the Rural Development Agency within USDA as well.
After going for most of 2017 with just Acting heads of those offices- we may finally get the word on who will be appointed to these slots within the USDA .
In a complaint filed Tuesday with Agriculture Secretary Sonny Perdue and United States Trade Ambassador Robert Lighthizer, R-CALF USA accused a major Beef Checkoff Program recipient, the U.S. Meat Export Federation, of attempting to influence governmental policy and action - which recipients of checkoff funding are prohibited from doing, using said moneys.
However, R-CALF brought to the Secretary and Ambassador's attention, an article published by Meatingplace on October 31st, that reported the CEO of the USMEF, Phil Seng, issued a warning about President Trump's trade policies, particularly regarding the potential withdrawal from NAFTA.
R-CALF USA complains that American beef producers have been harmed by the NAFTA-generated trade deficit, quoting it at approximately $3 billion in 2016. In conjunction to this complaint, the organization is requesting an investigation be opened by the USDA to reveal any discrepancies in Seng's management of funds through checkoff contributions that may be in violation of stipulations in the federal program.
R-CALF USA CEO Bill Bullard said that this is a striking example of the swamp that President Trump needs to drain.
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