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Higher grain prices, led by sharply increased demand for corn, have provoked a variety of adjustments in agricultural markets to restore a relative balance in crop and forage prices- so says OSU Extension Livestock Market Economist Dr. Derrell Peel.  Higher prices for all crops are needed to simultaneously ration demand and attract resources to maintain supply in the various markets. The beef industry has considerable flexibility to adjust production systems and substitute forage for grain.

Dr. Peel offers five keys regarding forage and it's bigger than ever role in putting pounds of beef onto a stocker animal- or to help maintain a mama cow herd.  One of his keys is simply the fact that higher placement weights of cattle going into the feedlots implies that we will be allowing animals to spend more time on forage before they enter into the feedlot finishing phase.   

To read more about that- and to discover the other keys that Dr. Peel believes about forage as we prepare to jump into 2013 and extremely tight cattle supplies- click here for our Top Ag Story on this morning after Christmas.

Last Cattle on Feed Report of 2012 Shows 6th Straight Month of Lower Placements into Feedlots

This past Friday- the final Cattle on Feed report of 2012 showed six percent fewer cattle on feed as of December first of this year versus December 1, 2011. That means a total of 11.3 million head of cattle are now in the nation's feedlots.   

The placement number was not as small as traders had expected- 94% of one year ago. It is the sixth straight month of lower placements, but the fact that the number was not closer to eight or nine percent under a year ago caused Live Cattle futures to be under pressure in the half day of trading on Christmas Eve.

Marketings were also marginally disappointing- at 99% of a year ago when the trade was expecting the number to be flat from a year ago.  

After the report last Friday- our own Ed Richards talked with Tom Leffler about the numbers and they drilled down into the report- looking at state level numbers and weight breakdowns on those placements.  To hear that conversation, click here for our webstory on the USDA Cattle on Feed report.

EPA Approves Clean Water Program to Oklahoma Department of Agriculture

The Environmental Protection Agency announced earlier this month that it is approving Oklahoma's request for issuing agriculture-based Clean Water Act discharge permits to the Oklahoma Department of Agriculture, Food and Forestry (ODAFF). Oklahoma will take over responsibility to implement the Agriculture Pollutant Discharge Elimination System (AgPDES) program covering discharges associated with concentrated animal feeding operations, the application of biological or chemical pesticides, discharges from forestry activities, and discharges of storm water from agricultural activities.

"Oklahoma has shown it's prepared to take on this important Clean Water Act program," said Regional Administrator Ron Curry. "We look forward to working with our co-regulators in Oklahoma as we ensure a smooth transition for the benefit of the both the business community and the people of Oklahoma."

"We look forward to taking on the responsibility of the AgPDES program," said Oklahoma Secretary of Agriculture, Jim Reese. "We plan to continue to exceed expectations in protecting our natural resources in Oklahoma."  

Click here for more on this announcement made by EPA.   

Agri-Business Execs Pick China as Nation Most Likely to Impact Global Agricultural Commodity Demand

China's continued influence on agricultural commodity demand and global economic growth, along with increasing weather extremes, stand out as key issues for North American food, beverage and agribusiness in 2013, a recent poll of Rabobank clients shows.

Asked to name the country or region which they believe will have the greatest impact on global agricultural commodity demand over the next 10 years, 61 percent of respondents at the Rabobank Forum chose China. That view of China's continued dominance far exceeded views of India (14 percent), Africa (10 percent), Latin America (9 percent), and Southeast Asia (6 percent).

The Rabobank survey also covered several other issues, including the impact of social media- the acceptance issues surrounding GMOs and lots more.

Click here for our complete story on this Rabobank poll taken at Rabobank's recent Markets Forum held in New York City.    

Environmental Activists Lose Court Case Against Maryland Farm Couple- National Chicken Council Pleased

The U.S. District Court of Maryland last week found in favor of Perdue Farms' grower Hudson Farms in a case filed against them by Waterkeeper Alliance Inc. The Hudson family are fourth generation family farmers who were sued by this New York-based activist organization, alleging their chicken farm violated the Clean Water Act.


A coalition that was formed to support the Hudson family, SaveFarmFamilies.org, applauds the judge's decision, and calls on Judge Nickerson to award legal costs to the Hudsons and to Perdue Farms, which was also named in the suit. In addition, the Assateague Coastal Trust, Waterkeeper Alliance, and the University of Maryland Environmental Law Clinic should publicly apologize to the Hudsons and to the Maryland taxpayers who unwillingly funded this wasteful lawsuit. 

National Chicken Council President Mike Brown released the following statement in response to the ruling:

"Governor O'Malley said it best - that this unfair attack on a family farm represented an 'ongoing injustice.' The National Chicken Council and many other farm, agriculture, meat and poultry groups both inside and outside of Delmarva have stood solidly together in support of the Hudson's during this case - a case that was based on frivolous assumptions rather than facts from the beginning.

"We feel like this was a lawsuit against all of us, and we are pleased that Judge Nickerson ruled that the Waterkeeper Alliance had not met the standard of preponderance of evidence in its argument."

You can read the rest of the NCC statement- and we have a lot more background on the lawsuit as well via links- just click here for our complete webstory on this very important ruling in favor of this family farm operation.

Senate Ag Chairlady Stabenow Says Doubling of Milk Prices Can Be Averted With Farm Bill 

The Senate is due back in Washington tomorrow- and apparently the President will fly back from Hawaii- all in an effort to avert the so called Fiscal Cliff. At the same time, hopes are about gone that anything will happen on a farm bill as we reach the final moments of 2012.  However, last Friday, the Chairman of the Senate Ag Committee, Debbie Stabenow, issued the following statement in an effort to keep the conversation alive:

"Fiscal cliff tax increases would hit middle class families' pocketbooks, but so would paying six or seven dollars for a gallon of milk. It is absolutely critical that Congress pass a new five-year Farm Bill to keep food prices stable and protect America's 16 million agriculture jobs. The Farm Bill reforms programs and cuts spending by $23 billion, so including it in a final deficit reduction deal will help the country avoid the fiscal cliff."

The last thing we heard on the US House was that they might be called back to Washington- if Speaker John Boehner felt there was a need. He sent them home after it appeared that he did not have the votes to pass his "Plan B" across the House floor last Thursday.

Oklahoma Arkansas Horticulture Industries Show Coming to Ft. Smith January 11 

The University of Arkansas is partnering with Oklahoma State University and Tulsa Community College to sponsor the 32nd Annual Oklahoma and Arkansas Horticulture Industries Show. Both gardening professionals and enthusiasts should mark their calendars for this two-day event slated Jan. 11-12, 2013, in Ft. Smith, Ark.

The HIS has consistently provided growers and the public with the latest information on vegetables, fruit, Christmas trees, farmers market crops and public gardening issues. The public and growers from Arkansas, Oklahoma and surrounding states are welcome to attend.

We have details on this event as both an ag news story as well as a Calendar item on our January calendar of events. Click here for the calendar entry- and we remind you that you can go and check the calendar for a lot of other events that will be happening this coming month as we kick off a brand new year!