~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Oklahoma's latest farm and ranch news
Your Update from Ron Hays of RON for Thursday August 19, 2010A service of Johnston Enterprises, P & K Equipment/ P & K Wind Energy and American Farmers & Ranchers Mutual Insurance Company!
-- Federal Reserve Bank of Kansas City Says Land Values Remain Strong
-- Congress Flunks on Getting Death Tax Reform Done
-- OkieAgMan Ready to Ride Into the Sunset
-- Deere earnings up on strong demand for large farm machinery
-- Multiple Grain Sorghum Meetings Planned in Northwest Oklahoma Next Week
-- The Big Event Coming to Express Ranch August 27 and 28
-- Let's Check the Markets!
Here's your morning farm news headlines from the Director of Farm Programming for the Radio Oklahoma Network, Ron Hays. We are pleased to have American Farmers & Ranchers Mutual Insurance Company as a regular sponsor of our daily update- click here to go to their AFR web site to learn more about their efforts to serve rural America!
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Federal Reserve Bank of Kansas City Says Land Values Remain Strong
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The Federal Reserve Bank of Kansas City reports that despite low incomes, farmland values continue to rise. Value gains were attributed to strong demand from farm and non-farm buyers and a limited supply of land for sale, while lower crop prices during the spring trimmed farm incomes.
Compared to last year, cropland values posted the largest farmland value gains and sustained profits in the livestock sector and improved pasture conditions pushed ranchland values just over year-ago levels. Most of the 240 bankers surveyed in the seven-state District expect farmland values to remain at current levels over the next three months.
Weaker demand for winter wheat as well as expectations of bumper corn and soybean supplies held down crop prices and lowered banker expectations of crop incomes during the second quarter. In contrast, farm income prospects for the livestock sector remained positive as cattle and hog prices rose and feed costs fell. Stronger crop prices at the beginning of the third quarter could boost crop incomes and limit livestock profits going forward.
Despite reduced farm incomes, farm credit conditions generally held steady. While loan repayment rates were flat, loan renewals and extensions edged down. Collateral requirements for non-real estate loans were little changed, and district bankers reported ample funds were available to satisfy slightly lower farm loan demand. Farm interest rates for operating and real estate loans remained historically low. District bankers reported that few loans had repayment issues that required major restructuring or liquidation of assets.
The Kansas City Fed includes Oklahoma and a half dozen other states within its region. For Oklahoma, non irrigated farmland was risen 3.3% over the last year, while ranch land has jumped 7.8%. Click on the LINK below to see the full report that summarizes conditions in the second quarter of this year.
Congress Flunks on Getting Death Tax Reform Done
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Things are not looking good for Congress stepping up to the plate and dealing with the Estate Tax issue the balance of this election year. If Congress takes no action, the estate tax, which expired at the end of last year, will return next year with a basic exemption of $1 million and a top rate of 55% on the largest estates. (Transfers between spouses typically are tax-free.) For 2009, the basic exemption was $3.5 million, and the top rate was 45%.
National Cattlemen's Beef Association Lobbyist Colin Woodall sees nothing on the horizon while Congress is in recess that could bring this issue up before the House and Senate wrap up their work and go home to campaign in advance of the November general elections. He sees little chance that the Democrats will be very interested in discussing Death Tax reform during a lame duck session either, so that means the Death Tax will return at the Federal Level at the onerous levels of the early part of the decade.
Click on the LINK below for our Beef Buzz with Colin Woodall of the NCBA- as he dissects what he sees the balance of this year into early 2011 for the Death Tax debate. And remember- we have Beef Buzz shows of days gone by all archived on our website- go to www.OklahomaFarmReport.Com and click on the Beef Buzz Button on the left hand side of any page.
OkieAgMan Ready to Ride Into the Sunset
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Our friend Michael Marlow will be on the move in the near future, as Monsanto is shifting him from God's country(that's right here in Oklahoma) to the land where there's more soybeans and corn than you can shake a stick at. Marlow is being reassigned to the Mason City, Iowa area.
His Twitter name is OkieAgMan and he told me that he will be sorry to have to give that name up as he begins his work in Iowa. In his time with Monsanto here in Oklahoma, he began as one of the early advocates for farmers to consider canola as a rotational crop for winter wheat. More recently, he has assumed a role as an "out in the field" agronomist- and has been keeping up with a variety of crops that Monsanto has interest in.
Some of his reports via twitter this week include a reference to the
hot summer and its impact on soybeans around here- "Soybeans in NE Texas
and eastern Oklahoma had a rough summer. Early beans are a bust. double
crop still hanging on. Rain too late for some." He also tweeted about the
upcoming planting window opening up for canola "Farmers preparing to plant
canola. RMA allowing 30 inch rows for the first time this season after
some good data shows ino-till fit."
Deere earnings up on strong demand for large farm machinery
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Deere & Company reported income up 47% on a 16% gain in net sales and revenues. Net income was $617 million for the third quarter ending July 31, compared with $420 million for the same period last year. Samuel R. Allen, chairman and chief executive officer, noted, "While we have benefited from positive conditions in the U.S. farm sector, particularly in terms of demand for large equipment, European markets are down sharply. Demand for construction and forestry equipment is improved from last year but still remains far below normal levels. Nevertheless, the company has continued to extend its competitive position as a result of our focus on serving customers with advanced new products while keeping a tight rein on costs and assets."
Deere's equipment operations reported operating profit of $890 million for the quarter and $2.193 billion for nine months, compared with $452 million and $1.387 billion last year. According to Allen, Deere's consistent investment in advanced new products and expanded global capacity is sustaining current performance and puts the company on a solid footing for the future. "John Deere remains well-positioned to help meet the world's growing need for agricultural commodities, shelter and infrastructure," Allen said. "In our view, these developments hold exciting potential and should strongly support our efforts to deliver value for customers and investors well into the future."
Click on the LINK below for the news release from the company that was issued after the earnings numbers were released.
Multiple Grain Sorghum Meetings Planned in Northwest Oklahoma Next Week
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Meetings in Kay, Major and Alfalfa Counties are planned for next week to showcase current research underway in Oklahoma in growing grain sorghum.
The first of the meetings is in Kay County August 23, starting at 9 AM. From Braman just off I-35, go east 6.25 miles on Braman/Bender Road. Plots are on the south side of the road between Roads Q and R. From Newkirk, go north on HWY 77 to Braman/Bender Road. Go 7 miles west to plots between Roads Q and R.
We will begin with ALS tolerant and ACC ace tolerant grain sorghum and then move to the hybrid trials back east 2 miles ant them south 1 mile on the east side of the road.
The meeting August 24 will be held in Fairview at 7 AM. They will meet at the Major County Fairgrounds for breakfast and a discussion of the ALS tolerant and ACCase tolerant grain sorghum. The group will then move to the plots that are 2 miles south of Fairview to the Isabella Blacktop, go east 5 miles to the Homestead Blacktop and then south 3 miles. Go 1 mile back east to the plots at the dead end.
The final of the three meetings is in Alfalfa County on August 26,
starting at 9 AM. Plots are located 7 1/2 miles west of the Alfalfa County
Fairgrounds on the south side of the road.
The Big Event Coming to Express Ranch August 27 and 28
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~This year's Big Event Sale of the Express Ranches in Yukon, Oklahoma will be spread out over two days. On Friday, August 27, there will be a Dispersion of the Fall Calving mature Angus females (to make room for approximately 400 heifers). This is a young set of females with several donors and bred to what we feel are some of the best bulls in the breed.
The Saturday sale lineup on August 28 at Express Ranches will
Click on the LINK below to jump right to Express Ranches website, where you can check out the details of the animals to sell either Friday or Saturday. in the sale catalog- Owner Bob Funk and General Manager Jarold Callahan state their belief that the future of the Angus business is bright "We realize that the past couple of years have been extremely challenging - the economy and genetic defects - but we believe more than ever that the future has never been brighter for the Angus business as Angus genetics are the backbone of the cattle industry in the United States not only because they are the most problem free but also because of our ability to utilize the most information and technology ever available in the beef business. Consequently, our commitment to the Angus business is as strong as ever and we look forward to visiting with you at the sale or in the future."
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Let's Check the Markets!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~We've had requests to include Canola prices for your convenience here- and we will be doing so on a regular basis. Current cash price for Canola is $8.20 per bushel- as of the close of trade Wednesday, while the 2011 New Crop contracts for Canola are now available are $8.40 per bushel- delivered to local participating elevators that are working with PCOM.
Here are some links we will leave in place on an ongoing basis- Click
on the name of the report to go to that link:
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