~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Oklahoma's latest farm and ranch news
Your Update from Ron Hays of RON for Wednesday November 17, 2010A service of Johnston Enterprises, P & K Equipment/ P & K Wind Energy and American Farmers & Ranchers Mutual Insurance Company!
-- Wheat Commission to Discuss Checkoff Increase
-- Public Comment Period Ends Next Monday for GIPSA Rule
-- HSUS Ready to Strike Again
-- At What Point Do We Run Out of Cattle?
-- Farm Groups Offer Thumbs Up to Governor Elect Fallin for Selecting Jim Reese as Next Secretary of Agriculture
-- Kansas City Smashes Annual Volume Record for HRW Trading- 24 Billion Bushels Worth of Contracts Already Traded in 2010
-- Oklahoma Cattlemen Continue on the American Angus Board
-- 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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Wheat Commission to Discuss Checkoff Increase
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The regular monthly board meeting of the Oklahoma Wheat Commission is set for later this morning at 9 AM in Oklahoma City- and listed on their agenda is a time of discussion to consider asking the legislature to amend the law that established the Wheat Commission. Two possible amendments will be talked about by the Wheat Commission.
The first, according to the agenda is "Consideration and Possible Approval of the Oklahoma Wheat Commission Board to support a 1/2 cent increase on the producer wheat check off taking the current check off amount from 1 ½ cents per bushel to 2 cents per bushel in the Oklahoma Wheat Resources Act during the 2011 legislative session."
In conjunction with that discussion, the Commissioners will also look at asking the state lawmakers to also mandate a higher percentage of the total dollars taken in go to research efforts. The OWC agenda says "Consideration and Possible Approval of the Oklahoma Wheat Commission Board to support increasing the amounts given to the Oklahoma Wheat Research Foundation from 20 percent to 25 or 30 percent in the Oklahoma Wheat Resources Act during the 2011 legislative session."
While the Commission cannot lobby the state legislature, going on
record for these changes allows farm groups and individuals who support
the need for change to have specifics to talk with lawmakers
Public Comment Period Ends Next Monday for GIPSA Rule
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~As we approach the end of the public comment period that USDA Secretary Tom Vilsack has authorized for the so called GIPSA Rule, another study has been released looking at the possible impact on livestock production in this country. This study, commissioned by the National Chicken Council, was conducted by FarmEcon LLC, an agricultural economics consulting firm.
"The proposed rule changes are likely to slow the pace of innovation,
increase the costs of raising live chickens, and result in costly
litigation," wrote Thomas E. Elam, president of FarmEcon. "Higher costs
would put upward pressure on chicken prices, and economic theory strongly
suggests that consumers would ultimately bear most of these costs."
Meanwhile, this study as well as the study released last week from Informa Economics suggest that USDA miscalculated when they said no economic impact study would be needed because the rule would cause little or no economic changes to the industry. Gregg Doud of the NCBA wondered out loud on Tuesday's Beef Buzz about the lack of a government Economic Analysis. You can hear his comments by clicking on the LINK below and listening to our Q&A with him.
Remember also that we have our PRIMER on the GIPSA Rule still up and available for you to review. Click here to go there- we have details on how you can submit your comments to USDA before Monday, November 22.
HSUS Ready to Strike Again
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The Humane Society of the United States is planning a Media Event later this morning- to showcase their latest "undercover" discovery of bad behavior in the production of eggs in Texas.
According to the Media Advisory, the HSUS, is planning a "Press
conference to announce The Humane Society of the United States' latest
undercover investigation into a major egg producer in Texas. Recently, two
factory farms in Iowa made national headlines when their eggs were linked
to outbreaks of Salmonella and half a billion eggs were recalled. The
factory farm that The HSUS investigated in Texas has similarly inhumane
and filthy conditions.
This will be held in Washington at the HSUS Headquarters- we will be
able to monitor it via a teleconference they have set up for media- and
they promise a visual event. HSUS tells the media to expect "Undercover
video footage of Texas factory farm conditions"- as well as a" Large
display photo examples highlighting food safety concerns."
At What Point Do We Run Out of Cattle?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~It's an interesting perspective that OSU Extension Livestock Market Economist Dr. Derrell Peel offers this week- as he believes that we have to cut marketings at some point soon in order to start rebuilding the cattle herd. He writes "The U.S. beef cow herd has decreased 12 of the last 14 years, dropping from a cyclical peak of 35.3 million head in 1996 to the January, 2010 level of 31.3 million head. This represents the smallest beef cow herd since 1963. Combined with smaller dairy cow numbers, the 2010 calf crop is expected to be 35.4 million head, the smallest U.S. calf crop since 1950. Total U.S. cattle inventory has decreased by almost 10 million head since 1996 to the January, 2010 level of 93.7 million head, the smallest cattle inventory since 1959.
"In contrast, total beef production has not changed accordingly. In fact, 2010 beef production is projected at 25.9 billion pounds, slightly higher than the 1996 level of 25.4 billion pounds. This leads to two questions: how have we maintained beef production with declining inventories? and can we continue to maintain production? We have maintained production thus far in two primary ways. First, decreasing inventories allows the industry to utilize that inventory as production while numbers are declining. Secondly, for the decade, between 1996 and 2006, cheap corn allowed the industry to feed animals to ever increasing carcass weights and to feed lightweight calves for many days in feedlots. Feedlot inventories are thus maintained by a slower rate of turnover. Thus, the industry was able to effectively turn fewer cattle into more pounds of beef."
Dr. Peel believes that we will reach a point where we will have to reduce cattle slaughter in order to retain heifers to start rebuilding the herd. You can click on the LINK below to read the rest of his ideas on this subject- and get his prediction as to when this herd rebuilding may finally start to happen.
Farm Groups Offer Thumbs Up to Governor Elect Fallin for Selecting Jim Reese as Next Secretary of Agriculture
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~We have gotten "thumbs up" from both the Oklahoma Farm Bureau as well as the American Farmers & Ranchers in regards to the announcement on Monday afternoon that Jim Reese is Governor Elect Mary Fallin's choice to head the Oklahoma Department of Agriculture when she assumes office in January.
The Farm Bureau issued a statement from their President Mike Spradling.
"We respect and support Governor-elect Mary Fallin's appointment of Jim
Reese as agriculture secretary. The governor-elect was fortunate to have a
large pool of dedicated Oklahoma agriculture leaders to choose from, and
we are looking forward to working with Jim. We had a good working
relationship with Jim when he was in the statehouse and when he was
serving as FSA director," Spradling said.
We caught up with Terry Detrick, President of the American Farmers
& Ranchers early this morning at his Hotel in Washington. Detrick and
several AFR leaders are in Washington until later today- talking with
members of Congress as the Lame Duck Session rolls along. Detrick tells us
that "We congratulate Jim and think it's a good move." Detrick adds that
Reese understands the issues very well and that AFR looks forward to
working with him.
Kansas City Smashes Annual Volume Record for HRW Trading- 24 Billion Bushels Worth of Contracts Already Traded in 2010
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The Kansas City Board of Trade has set a new annual trading volume record in the hard red winter wheat futures contract as of November 12. At the conclusion of Friday's trade 4,798,488 contracts or 23.99 billion bushels had traded thus far in 2010. The previous record was set in 2006, at 4,763,168 contracts or 23.82 billion bushels. Six weeks remain in the year to add to the record. The KCBT hard red winter wheat futures contract is the world benchmark pricing mechanism for bread wheat.
Volume and open interest in KCBT contracts have increased as demand for milling-quality wheat has taken center stage, traders said. In fact a new open interest record was set in the wheat futures contract just last Thursday at 250,506 contracts, capping a spate of recent open interest records. Trading has been active in both the intermarket and intramarket spreads. There has also been interest from traders looking at commodities in general as an inflation hedge, traders said.
Click on the LINK below for more on this record set by the KCBT- and a link to a very interesting graphic showing the growth in trade at the KCBT- fueled in part by the moving in of major hedge funds in the commodity markets.
Oklahoma Cattlemen Continue on the American Angus Board
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~American Angus Association delegates elected five members to its Board of Directors Monday, Nov. 15 at the 127th Annual Convention of Delegates in Louisville, Ky. Newly elected Board Directors include: Leo McDonnell Jr., Columbus, Mont.; John Pfeiffer, Orlando, Okla.; Kevin Yon, Ridge Spring, S.C; and John Harrell, Opelika, Ala. Jim Rentz, Coldwater, Ohio, was elected to a second term on the Board.
The new President of the American Angus Association Board hails from North Carolina, while the new Vice Chairman and Vice President is Jarold Callahan of Express Ranches in Yukon, Oklahoma. Jarold Callahan, the newly elected vice chairman and vice president, recently served as treasurer. Callahan received his undergraduate degree from Northeastern Oklahoma A&M College and a master's degree in agriculture from the University of Arkansas at Fayetteville. He taught purebred beef production and livestock selection at Oklahoma State University and served as executive vice president of the Oklahoma Cattlemen's Association before joining Express Ranches in 1996.
Our friend and fellow alum of Class One of the Oklahoma Ag Leadership
Program- John Pfeiffer is a fourth-generation Angus breeder who graduated
from Oklahoma State University with a bachelor's degree in animal science.
John and his wife, Gaye, have two sons and operate the longtime Pfeiffer
Angus business and diversified farming operation.
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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 $8.45 per bushel- as of the close of business yesterday, while the 2011 New Crop contracts for Canola are now available are $9.25 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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