~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Oklahoma's latest farm and ranch news
Your Update from Ron Hays of RON for Wednesday December 1, 2010A service of Johnston Enterprises, P & K Equipment/ P & K Wind Energy and American Farmers & Ranchers Mutual Insurance Company!
-- Fat Cattle Market Jumps to $104 on Last Day of November
-- Ag Groups Tell Congress- Get Your Lame Duck in Gear and Fix the Death Tax
-- USDA Predicts Record Ag Exports For This Fiscal Year
-- Chesapeake Energy Will Once Again Sponsor Award to Top Oklahoma Conservation Districts in 2011
-- USDA Predicts 31% Rise in Farm Income This Year
-- December Cattle Meetings Happening
-- And Finally- Your Daily Dose of HSUS
-- 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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Fat Cattle Market Jumps to $104 on Last Day of November
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The Cash Cattle Market continues its end of the year rally, with prices jumping $2 per hundredweight on Tuesday as the trading window opened for this week and saw $104 being paid for steers and heifers leaving the feedlot bound for the packer.
The Texas Cattle Feeders Association reports that over 17,000 head sold for $104- and another 1,100 head brought $103 on Tuesday in Texas, Oklahoma and New Mexico feedlots that are members. The $104 compares to $102 paid a week ago and $98.50 paid earlier in the month of November.
As the cattle market rose on Tuesday, we were talking with Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel- who feels comfortable with these higher fourth quarter cattle prices. He says, given the tightness of overall cattle supplies in the US as well as the relatively high closeouts that feedlots face as we end the old year, prices need to be above a dollar per pound.
He adds on today's Beef Buzz that breakevens for feedlots as we end the year and jump into 2011 will be moving higher- and could easily be $105 to $110 in the early months of the new year. You can take a listen to today's Beef Buzz with Dr. Peel, one of the veteran cattle market watchers to be found anywhere- especially within the Land Grant System. Click on the LINK below to jump to our webstory featuring today's Beef Buzz with Dr. Peel.
By the way, the Beef Buzz is heard on many of our great radio stations around the state on the Radio Oklahoma Network. And, we have an archive of previous Beef Buzz reports on our website- just go to www.OklahomaFarmReport.Com and click on the Beef Buzz button on the left hand column of any page.
Ag Groups Tell Congress- Get Your Lame Duck in Gear and Fix the Death Tax
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The Economic Growth and Tax Relief Reconciliation Act of 2001 raised the exemption amount and reduced the tax rate over time for the estate tax. Under the 2001 law, the 2009 estate tax exemption was set at 3.5-million dollars with a maximum tax rate of 45 percent; for 2010 the estate tax was repealed. Without congressional action, the 2011 estate tax exemption will revert to its pre-2001 amount of 1-million, with a tax rate of 55 percent plus an extra 5 percent for estates valued over 10-million. Numerous proposals have been introduced in Congress to repeal or modify the estate tax law.
On Tuesday, ten agricultural groups- general farm groups and organizations representing livestock and crop producers- joined together in a media event trying to get the attention of Congress in making a call for estate tax reform before the end of the 2010 Lame Duck Session of Congress. Our webstory online has comments from many of those groups- plus we have an audio overview of the midday session and arguments offered by these groups.
Several of the groups had paid staff represent them- others had their
National officers, but the National Cattlemen's Beef Association took a
different approach as they offered as their spokesperson Scott Bennett, a
college student from Virginia Tech who will have to deal as a heir with
whatever Congress does or does not do. His great grandfather established
the farm his family lives on in Virginia- and it's currently operated by
his Dad and brothers. The million dollar exemption and 55% tax rate coming
January first would mean once his grandfather passes away- the family
would have no options except to sell much of the property to try to
salvage a small part of the farm to operate. And that probably would be
too small for the family to make enough money on to continue being full
USDA Predicts Record Ag Exports For This Fiscal Year
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~On Tuesday, Agriculture Secretary Tom Vilsack issued a statement on the forecast for U.S. agricultural trade in fiscal year 2011:
"Today, USDA is announcing that U.S. farm exports in fiscal year 2011 are forecast to set an all-time record high of $126.5 billion. The new high exceeds fiscal year 2008, formerly the highest level on record at $114.9 billion, by $11.6 billion, and tops a strong fiscal 2010 by $17.8 billion. Furthermore, agriculture continues to be one of the only major sectors of the American economy with a trade surplus - expected to be $41 billion in this fiscal year."
The uptick in ag exports includes big jumps in the value of soybeans being exported this year, of grains and cotton- and even stronger export numbers for beef and pork.
Secretary Vilsack concluded his comments on the subject with a word
from his sponsor, POTUS. "The strong work ethic, deep values and
incredible productivity in Rural America is helping U.S. Agriculture lead
our nation's recovery and achieve President Obama's goal of doubling U.S.
exports over the next 5 years."
Chesapeake Energy Will Once Again Sponsor Award to Top Oklahoma Conservation Districts in 2011
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~As part of their commitment to Oklahoma and their joint effort to promote a healthy environment, Chesapeake Energy and the Oklahoma Association of Conservation Districts (OACD) have come together once again to honor the efforts of Oklahomans who devote their time and energy to protect and conserve our natural resources by sponsoring the Chesapeake Outstanding Oklahoma Conservation District Award.
The Chesapeake Outstanding Conservation District Award is presented annually to the Oklahoma Conservation District judged as having the best overall conservation program in the state. This program includes the Districts' efforts to work with land owners to protect and conserve natural resources, education and youth programs, and community outreach activities. The winning district will receive $2,500 and recognition at the Governors' Conservation Award Ceremony held in the Blue Room of the State Capitol during the spring legislative session. The winner will also receive a sign recognizing them as the outstanding conservation district for 2010 for their district home office. A trophy will also be presented to the district.
Click on the LINK below to read more about this continuing partnership that OACD has announced with Chesapeake for the coming year.
USDA Predicts 31% Rise in Farm Income This Year
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Net farm income is forecast at $81.6 billion in 2010, up 31 percent from 2009 and 26 percent higher than the 10-year average of $64.8 billion for 2000-2009. Net cash income at $92.5 billion would be a nominal record, 2.3 percent above the prior record attained in 2008. Net value added is expected to increase by almost $20 billion in 2010 to $132.0 billion. The net value added of agriculture to the U.S. economy in inflation-adjusted terms reached its two highest levels since the mid 1970s in 2004 and 2008. Inflation-adjusted net cash income has reached levels not seen since the mid-1970s for the fourth time since 2004, including the forecast for this year. The mid-1970s was the last comparable period when U.S. farming enjoyed multiple years of sustained levels of high output and income.
All three measures of farm sector earnings are forecast to rise in
2010, rebounding from double-digit declines in 2009.
As you might suspect- USDA Secretary Tom Vilsack is like a proud papa- very pleased. "A combination of factors has made these numbers possible including the successful implementation of the 2008 Farm Bill, the Obama Administration's Recovery Act, and increased exports in the agricultural sector - which was already one of the only major sectors of the economy with a trade surplus."
December Cattle Meetings Happening
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The NW Oklahoma Beef Cattle Conference is scheduled for December 2 and December 6 in four locations across Northwest and Northern Oklahoma.
The theme of the conference is "Managing Cost to Improve Ranch Profitability". Speakers scheduled for the program include Dr. David Lalman, OSU Beef Cattle Nutritionist, Greg Highfill, OSU Area Extension Livestock Specialist, Dr. Chris Richards, OSU Beef Cattle Nutritionist and Dr. Gene Parker, OSU Area Animal Health Specialist.
Click here for our calendar item for the Enid event that is Monday morning- and has the link to a flyer with more details about the meeting. You can still RSVP to both the Enid and Ponca City meetings that are next Monday.
In southern Oklahoma, the Texas and Southwest Cattle Raisers have a meeting set for December 14 in Duncan. The Gathering will be held at the Chisholm Trail Heritage Museum, starting at 5:30 PM. "TSCRA ranch gatherings are a great place for folks to get together and discuss what is going on in the cattle business and how they can help. TSCRA Special Rangers will be on hand to discuss how to protect your property and livestock from theft," said Dave Scott, rancher and TSCRA president. "Anyone who would like to come out and enjoy the evening is invited." Click here for our calendar listing for this event with more information on how to RSVP for this free meeting.
And Finally- Your Daily Dose of HSUS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The Humane Society of the United States has filed a class action lawsuit against Perdue Farms, alleging the company is falsely advertising products with "Humanely Raised" labels. HSUS said the lawsuit, filed in the Superior Court of New Jersey on behalf of "all consumers duped" by Perdue, claims that the company is illegally marketing its Perdue and Harvest land chicken products with "Humanely Raised" labels. The suit focuses on products marketed in New Jersey.
In a statement e-mailed to Meatingplace Perdue said, - the Humane Society of the United States is trying to define humane treatment of poultry by their own narrow, arbitrary standards. The company continued, "our chickens are raised cage-free on family farms in temperature-controlled housing with a continuous flow of fresh air, and they remain free to move about with constant access to food and water. These daily-monitored chicken houses also shelter our chickens from the elements, predators and disease."
The Purdue statement adds that "we are the first and only poultry company whose hatcheries and family farm partners are inspected by USDA, and we use video monitoring at the processing plants to ensure compliance with our humane standards."
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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 $8.70 per bushel- as of the close of business yesterday, while the 2011 New Crop contracts for Canola are now available are $9.55 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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