Oklahoma's Latest Farm
And Ranch News
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Thursday, May 12, 2022
Hope to See You at the KC Reception-
Starting at 3PM This Afternoon
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Here is your daily Oklahoma farm and ranch news update.
- Historically Poor Pasture & Range Conditions to Hit Beef Supplies Ahead
- President Biden Blames Pandemic and Putin for Food Shortages Globally- and Higher Food Costs in the US
- American Soybean Association and National Council of Farmer Cooperatives React to Biden Plan
- American Hereford Association's Jack Ward Focuses on Efficiency
- Bob LeValley with the Beef Quality Assurance Program Presents Total Quality Management
- AFBF's Courtney Briggs is Concerned with Clarity in the Biden Administration's New Definition of WOTUS
- Prospects for Retained Ownership in a High Input Cost Environment
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Historically Poor Pasture Conditions to Hit Beef Supplies Ahead |
As we hit mid May, the latest national crop progress report shows over 50% of pasture and range conditions are rated poor to very poor. The first two Pasture and Range ratings of the season showed 56% and 52% Poor to Very Poor ratings nationally. Oklahoma State University’s Extension Specialist for Livestock Marketing, Derrell Peel, and I talk about how these conditions are impacting cattle producers.
“This is by far the worst conditions we have started on in terms of this particular day in this series,” Peel said. “Only once before have we ever started the May reporting of these pasture and range conditions with more than 40% poor to very poor.”
The last time was actually last year, Peel said, and only one time before that, in 2013, have we ever started with more than 30% in the poor to very poor category.
Peel said in this case it could be an entire year before things improve.
“You have very little flexibility,” Peel said. “You have nothing to work with, to begin with.”
Peel said we face considerable prospects for a significant reduction in the herd this year in relative terms because of the widespread conditions.
“It would take significant improvement in what we see and where we are today with these pasture and range conditions to be anything less than that,” Peel said. “It is way too early to tell how it all plays out.”
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The Oklahoma Agriculture Mediation Program knows this is a hard time for farmers and ranchers. We want you to know we are still open, and we are still here for you. The Ag Mediation program is a free service that provides mediation to agriculture producers who may need help with ag-related disputes.
At Oklahoma Ag Mediation, we have been helping people in agriculture resolve conflicts since 1987. We know firsthand about working together to resolve conflicts, so you don’t have to go through the court systems. Let our professional mediators help you. Mediation is allowed for lease issues, farmer/neighbor disputes, family farm transitions, and more. These services are available at no cost for Oklahoma farmers and ranchers in all 77 counties. For more information, you can go to ok.gov/mediation, or give us a call at 800 248 5465.
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President Biden Blames Pandemic and Putin for Food Shortages Globally- and Higher Food Costs in the US |
President Joe Biden announced on Wednesday plans to help farmers as they work to keep the food supply pipeline full for domestic and international consumers. The President points the finger of blame on current challenges to producing food in this country- including lots of blame directed to the Pandemic and what he calls the "Putin Price Hike". The following is a fact sheet released by the White House:
Putin’s unjustified invasion of Ukraine has cut off a critical source of wheat, corn, barley, oilseeds, and cooking oil. It has also disrupted global supply chains for fertilizer, which farmers depend on to maximize yields. These and other actions, combined with the ongoing pandemic-related disruptions to global supply chains, have put pressure on food prices, with global food prices increasing nearly 13 percent following Putin’s invasion.
Double funding for domestic fertilizer production. Fertilizer prices have more than doubled since last year, due in part to supply chain disruptions created and exacerbated by Russia’s invasion of Ukraine, including rising energy costs. Today, President Biden is announcing that he is doubling his initial $250 million investment in domestic fertilizer production to $500 million to lower costs and boost availability for farmers, so they can obtain the inputs they need at prices they can afford to maximize yields.
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American Soybean Association and National Council of Farmer Cooperatives React to Biden Plan |
The American Soybean Association had a positive reaction to Biden's announcement to address food affordability and farmer costs amid the Russia/Ukraine conflict.
U.S. soybean farmers are proud to contribute high-quality protein to vulnerable populations worldwide and bolster our national security through food security. ASA appreciates the administration considering farmers’ role in the world economy and aiming to protect their profitability here at home.
The National Council of Farmer Cooperatives put out a release saying that they welcome President Biden’s announcement today giving American farmers access to additional tools to boost domestic agricultural production and help alleviate the global food shortfalls caused by Russia’s invasion of Ukraine.
The NCFC looks forward to continued collaboration with both the administration and Congress as the response to the crisis continues.
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For our farmers who have either- always have had cotton on their farms- or those who have more recently have added the fiber crop to their operations- we have a daily report heard on several of our Radio Stations- It's Called Cotton Talk!
Click on the Button below to listen to our most recent report
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American Hereford Association's Jack Ward Focuses on Efficiency |
"This industry has done a remarkable job of producing more beef with fewer cows, but we’re going to continue to be asked to do more with less," according to Jack Ward, Executive Vice President of the American Hereford Association (AHA). He was speaking to approximately 700 participants from 10 states at the Hemphill County Beef Conference (HCBC) in Canadian, Texas April 26-27.
Ward explained increased beef cattle production efficiency improves net profit potential for commercial cattle producers and reduces the cattle sector’s carbon footprint.
"Capturing heterosis is a proven opportunity to increase efficiency," Ward said. "Crossbreeding works and crossbreeding really works on lowly heritable traits like fertility and longevity. That’s where you get the biggest bang for the buck." He added heterosis is even more powerful amid declining feed resources.
Ward shared a synopsis of AHA research projects aimed at documenting the production and economic advantages of both direct and maternal heterosis. Past and ongoing research partners include, Simplot Ranches in Idaho, Harris Ranch in California, Olsen Ranch in Nebraska, Amana Farms in Iowa and Circle A Ranch in Missouri.
Cattle and beef have an extraordinarily positive story to tell when it comes to the carbon footprint, as well as the net environmental and human nutritional value of up-cycling forage into vitamin-dense protein.
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We invite you to listen to us on great radio stations across the region on the Radio Oklahoma Ag Network weekdays-
if you missed this morning's Farm News - or you are in an area where you can't hear it- click below for this morning's Farm news from Ron Hays and KC Sheperd on RON.
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Sponsor Spotlight
National Livestock was founded in 1932 in Oklahoma City. National’s Marketing Division offers cattle for sale weekly at the Oklahoma National Stockyards in Oklahoma City. The Finance Division lends money to ranchers across several states for cattle production. The Grazing Division works with producers to place cattle for grazing on wheat or grass pastures.
National also owns and operates other livestock marketing subsidiaries including Southern Oklahoma Livestock Auction in Ada, Oklahoma, OKC West Livestock Market in El Reno, Oklahoma, and the nation’s premier livestock video sale, Superior Livestock Auction. National offers customers many services custom made for today’s producer. To learn more, click here for the website or call the Oklahoma City office at 1-800-310-0220.
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Bob LeValley with the Beef Quality Assurance Program Presents Total Quality Management |
This week, Bob LeValley, Oklahoma Beef Quality Assurance Coordinator offers his expertise on operation management. This is a part of the weekly series known as the "Cow-Calf Corner" published electronically by Paul Beck. Today, LeValley talks about The Beef Quality Assurance Program and how it can help an operation improve quality and exceed expectations.
One aspect of “quality” is providing products that meet or exceed expectations and established requirements. Established product requirements in the beef industry may differ somewhat from one segment of the industry to the next, but there are some common expectations fundamental to each.
As products of stocker operations, feeder cattle should meet the requirements of cattle feeders for performance, health, potential carcass characteristics and food safety. Fed cattle must meet the expectations of beef processors for health, carcass attributes and food safety. Commodity beef products must meet requirements of beef purveyors for fat cover, marbling, carcass size, safety, and lack of defects such as injection site blemishes, dark cutters, etc. Beef sold to the consumer, must meet expectations for both food safety and eating satisfaction.
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AFBF's Courtney Briggs is Concerned with Clarity in the Biden Administration's New Definition of WOTUS |
During the National Association of Broadcasters Washington Watch, Farm Director KC Sheperd, caught up with Courtney Briggs, American Farm Bureau Federation’s Senior Director of Congressional Regulations. Sheperd and Briggs talked on the Biden administration’s plan to craft a new definition of Waters of the U.S.
“Right now, we are in the middle of the regulatory process,” Briggs said. “The Biden administration has come in and announced that they will rescind the Trump administration’s Navigable Waters Protection Rule which was the rule that the farmers and ranchers really liked because it provided that clarity and certainty that we have been seeking.”
Unfortunately, Briggs said she believes we are moving in the wrong direction. The Biden administration’s proposal expands the Federal Government’s reach over private property, she added.
“It is bringing back a very troubling test of jurisdiction called the significant nexus test and essentially this is a case-by-case determination that would allow the Army Corps of Engineers to assert jurisdiction over ephemeral features,” Briggs said. “I’m talking about ditches and low spots in a farm field.”
Briggs said Clean Water Act compliance is very important for us to know where that line of jurisdiction is because there are civil and criminal penalties associated with compliance.
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Prospects for Retained Ownership in a High Input Cost Environment |
Retaining ownership of calves beyond weaning is a value-added process that provides cow-calf enterprises access to a greater share of the retail dollar. Estimating expected returns is challenging in a normal year, and has been complicated in 2022 by drought, widespread culling, high feed costs, and increasing calf prices. Below is an analysis of the retained ownership decision using today’s market expectations.
We can roughly estimate the expected revenue generated from the sale of a weaned calf today. The average price of a 7-8 weight steer in Joplin, MO the last week of April ran $1.63 per pound, meaning a 750-pound steer calf brought $1,224.38. So the question of retained ownership is how much additional revenue (value-added) over $1,224 can I expect from selling a fed calf, and what is the additional cost associated with the added value.
If we assume a current calf weight of 750 pounds for a 2021 spring-born calf, and an average daily gain (ADG) of 3.5 pounds, we can assume a target harvest date of mid-October at approximately 1,350 pounds. The board price for an October delivery fed steer last week averaged approximately $1.43 per pound. If we locked that price in today, a 1,350-pound steer would generate $1,930.50 in revenue. Compared to selling today at $1,224, retaining ownership would generate an additional $706/head. Now let’s look at the cost of achieving that additional $706.
Cost of Gain (COG) is a function of days on feed, cost of feed, and pounds of feed per pound of gain. It is commonly estimated using corn price, so it is significantly higher this year than in recent years. The increased cost of corn has cost of gain in the neighborhood of $1.20 per pound to $1.50 per pound depending on the feeding location, including an approximate 33% markup for yardage fees, overhead, and miscellaneous expenses. Subtracting COG from the expected value-added ($706.12) leaves the bottom-line Expected Net Revenue change from making the retained ownership decision. The table below shows the expected net revenue impact of retained ownership for various COG estimates ranging from $1.20 to $1.50 per pound of gain.
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OKC West is our Market Links Sponsor- they sell cattle three days a week- Cows on Mondays, Stockers on Tuesday and Feeders on Wednesday- Call 405-262-8800 to learn more.
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Today's First Look:
Ron on RON Markets as heard on K101
mornings with cash and futures reviewed- includes where the Cash Cattle market stands, the latest Feeder Cattle Markets Etc.
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Wholesale Boxed Beef Prices were lower- Choice Beef was down 16 cents and Select Beef was down 17 cents on Wednesday 05/11/2022.
Click on the Button below for the latest report from USDA Market News
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OKC West in El Reno had 8,942 head of cattle on Tuesday and Wednesday of this week.
According to USDA Market News- Compared to last week: Feeder steers and heifers steady to 2.00 lower. Demand for feeder cattle moderate to good. Feeder cattle futures closing lower as corn futures closed higher. Calf quality not as attractive as last week. Steer calves 2.00-6.00 lower. Heifer calves steady in a light test. July like temperatures is limiting calf demand.
Click below for the complete closing report.
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Each afternoon we are posting a recap of that day's markets as analyzed by Justin Lewis of KIS futures - click below for the latest update on the Livestock and Grain Futures Trade..
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Okla Cash Grain:
Daily Oklahoma Cash Grain Prices- as reported by the Oklahoma Dept. of Agriculture- The report available after the close of the Futures Trade for that day.
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Our Oklahoma Farm Report Team!!!!
Ron Hays, Hall of Fame Farm/Ranch Broadcaster and Email Editor
KC Sheperd, Farm & Ranch Director and Editor
Dave Lanning, Markets and Production
Reagan Calk, Farm News and Email Editor
Pam Arterburn, Calendar and Template Manager
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Rural Oklahoma is full of some of the greatest success stories throughout the entire state and is a big reason why Oklahoma is on track to become a top 10 state.
The Road to Rural Prosperity dives into these stories, bringing you stories covering rural life, agriculture, energy, healthcare, tourism, and politics affecting rural America.
The Road to Rural Prosperity is here to tell stories about rural America, for rural America.
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Our Latest RRP features Don Schieber, the 2022 winner of the Outstanding Achievement in Agriculture Award, which is the highest award given by the Governor of Oklahoma to honor distinguished Oklahoma agriculture producers. This prestigious award honors leaders in the agriculture industry who exemplify personal values, performance, and achievement.
Governor Kevin Stitt presented Schieber his award during the Oklahoma celebration of Ag Day on March 24th- after riding with the honoree in a mule drawn wagon up Lincoln Blvd to the front steps of the Oklahoma State Capitol.
Schieber is the 25th award winner and becomes the newest inductee into the Oklahoma Ag Hall of Fame. Ron and Don talk about his career in production agriculture- his work on behalf of wheat farmers with the Oklahoma Wheat Commission and US Wheat Associates that included traveling to 26 countries taking the Oklahoma wheat production story to buyers of wheat around the world. Don is a major supporter of the wheat breeding work of Dr. Brett Carver- having provided ground on his farm in Kay County for an OSU wheat Variety Field Plot for 17 years.
Search for Road to Rural Prosperity and subscribe on your favorite Podcast platform.
To hear this podcast, you can click here or tap below:
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Our thanks to Midwest Farms Shows, P & K Equipment, Oklahoma Farm Bureau, Oklahoma Ag Mediation Program, Great Plains Kubota, Stillwater Milling Company, National Livestock Credit Corporation, Oklahoma Beef Council, Oklahoma AgCredit, Union Mutual Insurance, the Oklahoma Cattlemens Association, and KIS Futures for their support of our daily Farm News Update.
For your convenience, we have our sponsors' websites linked here- just click on their name to jump to their website- check their sites out and let these folks know you appreciate the support of this daily email, as their sponsorship helps us keep this arriving in your inbox on a regular basis- at NO Charge!
We invite you to check out our website at the link below too that includes an archive of these daily emails, audio reports and top farm news story links from around the globe.
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God Bless!
Reach Out To Us:
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Tim West
President/General Manager
Rural Oklahoma Networks
405-317-6361
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Mike Henderson
Director of Sales
405-615-4922
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KC Sheperd
Farm Director
Radio Oklahoma Ag Network
405-443-5717
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Ron Hays
Senior Farm/Ranch Broadcaster
Radio Oklahoma Ag Network
405.473.6144
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