Category: Ag News

Kim Anderson says 2023 Wheat Prices Will Have to Be High to Combat Input Prices

Kim Anderson says 2023 Wheat Prices Will Have to Be High to Combat Input Prices

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This week on SUNUP is Dr. Kim Anderson, Oklahoma State University Extension grain market economist. During this week’s edition, Anderson talks about wheat prices and factors to consider when planting to make a profit this year.

“They’ve got to put a sharp pencil to figure out their costs and returns,” Anderson said. “You look at the old cliché, if you can’t make a profit with a pencil and pen at the desk, you’re probably not going to make a profit with a tractor in a field.”

With high input prices this year, Anderson said profits may be reduced if there is not a relatively good price for wheat.

“Going back to COVID 2019 and since then, nitrogen prices have increased about 80 percent,” Anderson said. “They have come down a little bit over the last couple of weeks.”

Phosphorus and potassium have increased by 26 percent, Anderson said, diesel is up 60 percent and machinery is up by 25 percent.

“We are going to have to have a higher price,” Anderson said. “Looks like we are going to get it because of the stocks-to-use ratio.”

Anderson said the stocks-to-use ratio for hard red winter wheat stocks has dropped from 61 percent in 2019 to now 39 percent.

“You look at all U.S. wheat, it has dropped from 50 percent to 31 percent,” Anderson said. “World stocks-to-use ratio went from 39 percent to 34 percent. The world needs wheat. If there is no profit in producing wheat, there is not going to be any wheat. There will be a profit to produce wheat for most producers.”

Anderson talked about what the market is offering now for 2023 harvested wheat.

In northern Oklahoma, Anderson said the Kansas City July ’23 contract price is $8 to $8.10 minus 70 cents. In the panhandle, Anderson said it is $8.20 to $8.30 for July contract minus 50 cents.

“Southern Oklahoma is $7.70 and that contract minus a dollar, so relatively good prices looking into 2023,” Anderson said. “You look at summer crops and crop conditions, corn and cotton are in the low ‘40s. The five-year average is in the mid- ‘60s.”

Anderson also talked about summer crop conditions and prices. To listen to Anderson’s audio, click the LISTEN BAR below.

This week on SUNUP:

• We welcome the new program coordinator for the Oklahoma Quality Beef Network, Paul Vining, and learn details about upcoming sale dates.
Wes Lee, OSU Extension Mesonet agricultural coordinator, discusses the recent cool front that hit the state. State climatologist Gary McManus says the seasonal drought outlook could improve in the coming months.
Derrell Peel, OSU Extension livestock marketing specialist, says beef prices remain strong even with all the challenges in the markets.
Kim Anderson, OSU Extension grain marketing specialist, discusses how drought is impacting summer crop prices.
Mark Johnson, OSU Extension beef cattle breeding specialist, has recommendations for which cows to cull from your herd during drought.
• SUNUP previews upcoming sorghum field tours and a soil training event.
Rosslyn Biggs, OSU Extension beef cattle specialist, has information on practicing good biosecurity measures during county and state fair season.
• Finally, we attend a recent event honoring Professor Larry Sanders and his extensive work with military veterans.

Join us for SUNUP:
Saturday at 7:30 a.m. & Sunday at 6 a.m. on OETA-TV
YouTube.com/SUNUPtv
SUNUP.okstate.edu

   

   

August 18, 2022, Market Wrap-Up with Justin Lewis

August 18, 2022, Market Wrap-Up with Justin Lewis

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Listen to today’s report with Justin Lewis, by clicking or tapping on the LISTEN bar

   

   

USDA Announces Livestock Producers in 64 Oklahoma Counties Are Eligible for Drought Recovery Assistance

The U.S. Department of Agriculture’s Farm Service Agency (FSA) is now accepting applications for the Livestock Forage Disaster Program (LFP) to provide financial assistance to eligible livestock producers for 2022 grazing losses due t…

USDA Announces First Three Lenders for Heirs’ Property Relending Program

USDA Announces First Three Lenders for Heirs' Property Relending Program

The U.S. Department of Agriculture (USDA) announced that Akiptan, Inc., the Cherokee Nation Economic Development Trust Authority (CNEDTA) and the Shared Capital Cooperative have been approved or conditionally approved as intermediary lenders through the Heirs’ Property Relending Program (HPRP). Once HPRP loans with these lenders close, these lenders will help agricultural producers and landowners resolve heirs’ land ownership and succession issues. Additionally, USDA encourages more intermediary lenders, including cooperatives, credit unions and nonprofit organizations to apply. Currently, more than $100 million of HPRP funding is available for these competitive loans.

Heirs’ property is family land that has been passed down to descendants without a will or deed to prove ownership. Without proof of ownership, it may become difficult for heirs to obtain federal benefits for farms and could force partition sales by third parties. Heirs’ property issues have long been a barrier for many producers and landowners to access USDA programs and services, and this relending program provides access to capital to help heirs find a resolution.

“Through this opportunity, heirs can formalize land ownership and succession issues, which have long prevented so many from accessing USDA programs and services,” said Zach Ducheneaux, Administrator of USDA’s Farm Service Agency (FSA). “USDA is committed to revising policies to be more equitable and this program is an instrumental part of the effort to provide opportunities to bring and keep agricultural land in agriculture and allow producers nationwide to create generational wealth.”

Relending to Heirs

HPRP intermediary lenders will reloan funds to eligible heirs to resolve title issues by financing the purchase or consolidation of property interests and financing costs associated with a succession plan. This may also include costs and fees associated with buying out fractional interests of other heirs in jointly owned property to clear the title, as well as closing costs, appraisals, title searches, surveys, preparing documents, mediation, and legal services.

Who is Eligible?

Intermediary lenders may make loans to heirs who:

• Are individuals or legal entities with authority to incur the debt and to resolve ownership and succession of a farm owned by multiple owners;
• Are a family member or heir-at-law related by blood or marriage to the previous owner of the property;
• Agree to complete a succession plan.

These are loans (not grants) and will need to be paid back at interest rates set by the lenders.

Heirs may not use loans for any land improvement, development purpose, acquisition or repair of buildings, acquisition of personal property, payment of operating costs, payment of finders’ fees, or similar costs.

Who Heirs Can Contact for Additional Information

Akiptan, Inc

• Service Area: Nationwide, targeting Indian Country.
• Contact: Skya Ducheneaux, (605) 964-8081

Cherokee Nation Economic Development Trust Authority (CNEDTA)

• Service Area: Producers in rural areas (as designated by USDA) of the 14 counties, in whole or in part, encompassing the Cherokee Nation Reservation. Borrower(s) must reside in the Service Area and land must be agricultural land located in the Service Area.
• Contacts: Stephen Highers, (918) 207-3955; and Brian Wagman, (918) 453-5531, sbac@cherokee.org

Shared Capital Cooperative, which has a partnership with Federation of Southern Cooperatives

• Service Area: Producers in the states of: Alabama, Florida, Georgia, Louisiana, Mississippi and South Carolina
• Contact: Christina Jennings, (612) 767-2114; and Dania Davy, (404) 765-0991 or info@federation.coop

Additionally, USDA will share information on farmers.gov/heirs/relending.

FSA may be able to provide additional assistance through the farm ownership and operating loan programs to assist heirs in financing other credit needs in conjunction with a HPRP loan provided by an intermediary.

Information for Lenders

USDA is also opening a second opportunity for eligible entities interested in becoming intermediary lenders under HPRP. Loans of up to $5 million at 1% interest are available. Once the new application period is opened, eligible lenders may apply using the HPRP application form (FSA-2637) (PDF, 450 KB) and provide the required application documentation, including a relending plan, copy of CDFI certification, financial statement for the past three years, current financial statement, documents of incorporation, and any supporting documents related to experience.

Submit these documents electronically at sm.fpac.fsa.wdc.hprp@usda.gov or by mail to Heirs’ Property Relending Program, Office of the Deputy Administrator for Farm Loan Programs FSA, U.S. Department of Agriculture 1400 Independence Avenue SW, Stop 0522 Washington, DC 20250-0522. There is currently more than $100 million available for these loans. Approved intermediary lenders will determine the rates, terms and payment structure for loans to heirs subject to USDA’s approval, with interest rates covering the cost of operating and sustaining the loan.


Intermediary lenders must:

• be certified as a community development financial institution, and
• have experience and capability in making and servicing agricultural and commercial loans that are similar in nature.

If applications exceed the amount of available funds, FSA will prioritize applicants that both:

• have at least 10 years or more of experience with socially disadvantaged farmers; and
• are located in states that have adopted a statute consisting of enactment or adoption of the Uniform Partition of Heirs Property Act (UPHPA) will receive first preference. A list of these states is available at farmers.gov/heirs/relending.

More Information

While owners of heirs’ properties may lack proof of ownership or control of land, FSA provides alternative options that allow an heir to obtain a farm number. In states that have adopted the UPHPA, producers may provide specific documents to receive a farm number.

To learn more about heirs’ property, HPRP, or UPHPA, visit farmers.gov/heirs or farmers.gov/heirs/relending.

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit usda.gov.

   

Secretary Ryan Walters says Rural Oklahoma is What Makes Oklahoma the Best State

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Farm Director, KC Sheperd, had the chance to visit with Oklahoma Secretary of Education Ryan Walters at the Lawton Rangers Rodeo this past weekend, talking about what he will bring to the table if elected …

How Will Precision Agriculture Help Farmers Meet Food Demand Sustainably?

U.S. farmers work every day to make the United States a sustainable source of wheat for domestic and overseas use. They assume enormous levels of risk. And, as they are asked to do more with less by their customers and society, farmers lead…

Farmers Face Uncertainty with Summer Crops

Farmers Face Uncertainty with Summer Crops

Harvest is approaching for Oklahoma summer crops, and fields are either looking really good or really bad with no middle ground, according to Oklahoma State University Extension crop specialists.

Overall yields for crops, such as corn, soybeans, milo and cotton, are projected to be lower statewide.

“Even the crops that look good probably don’t look as good as they normally do,” said Josh Lofton, OSU Extension specialist for cropping systems. “We always have this heat in July, but this has been a long period to be at over 100 degrees and expect crops to be able to come out of it positively on the back end.”

Corn

For corn fields, Lofton said the biggest problem with the heat wave was pollination.

“Some of the corn in the state tasseled right before this big heat wave, and that corn is probably okay, but some corn tasseled during this heat wave, and that has left us with whole cobs of corn that have very few kernels on them,” he said.

A lot of Oklahoma corn, especially dryland corn outside the Panhandle region, has been repurposed for animal feed.

“Hay and animal feed stocks are low, so it’s good to have something, especially for folks who have cattle. It’s just unfortunate we are having to sacrifice corn crops to get that,” Lofton said. “I know more people not taking corn to yield than previous years. We might have a short harvest season due to the total number of acres being taken for grain being significantly down.”

Milo and Soybeans

The story for milo and soybeans is much the same.

“Crops like soybeans are very indeterminate, so just as easily as it can look bad, we can get a good rainfall and some cooler temperatures, and it can still finish out,” Lofton said.

He cautioned producers on haying out crops too soon but also with waiting too long.

“Don’t pull the trigger on haying out a crop, especially soybeans, before you are sure that most of the bulk yield has been lost because soybeans can still surprise you,” Lofton said. “But in saying that, the inherent risk is you don’t know when it will freeze for the first time.”

If producers wait too long to give their crops the opportunity to mature, they could lose the crops anyway in an early frost.

“We’re behind on soybeans. We should be filling pods vigorously by now, and a majority of people I’ve heard from are saying the pods are set, but the seeds and pods are very small or don’t seem to be growing. That’s a concern,” Lofton said. “Making hay out of soybeans may be more worth it to a grower than risking waiting to see if their soybeans will mature.”

Alfalfa

Alex Rocateli, OSU Extension forage systems specialist, said this is the hottest and driest year he has experienced in his seven years in Oklahoma.

Right now, alfalfa crops are going into dormancy, meaning the plant is not growing anymore and is flowering.

“If you see your alfalfa has been stunted, flowered and has less than 6 inches of growth, do nothing. Just let it be,” Rocateli said. “As soon as the rainfall returns, new growth is going to come from the bottom part of the plant.”

When the new plant’s growth reaches about 10% bloom, producers can consider harvesting.

“On the other hand, some producers started to experience drought when alfalfa was in advanced vegetative growth, meaning it had high plant stands and was close to flowering,” he said. “In these circumstances, I would say let the plant get at least halfway bloomed, preferably 100% bloomed. That way, producers can count on a regrowth.”

Rocateli said it does not make sense for producers to cut a high stand of 6 inches or above because the parts of the plant that will be left in the field are deteriorating, and new leaves are not growing.

“Make sure you have minimal trampling if you opt to graze a drought/dormant alfalfa stand as a last forage resort,” he warned. “Do not graze lower than 6 inches to keep a minimum amount of leaves there for the alfalfa to continue doing minimal photosynthesis to resist the drought.”

Rocateli said the alfalfa growing season is only halfway complete right now, so the drought does not mean producers won’t get any more forage from the crops.

“We just need to hope for more rain and wait for four weeks after rain, and alfalfa could really catch up with growth. You could have at least two cuts this season,” he said.

Learn about the cost of bailing summer crops at SUNUP TV.

Cotton

With lake water not being released to Lugert-Altus irrigation district producers in southwest Oklahoma this summer, yields are likely to be low or fail with typically irrigated and dryland cotton, according to Gary Strickland, Jackson County director and Southwest Research and Extension Center regional agronomist.

Strickland said some cotton on the eastern side of the southwestern region and some under center pivot and drip irrigation systems where water is supplied by a well are faring better and have the potential of making some yields. However, a lot of cotton acreage has burned up in the drought.

“There’s no question that the amount of cotton we produce in this area will be down from previous years,” Strickland said. “There have been pockets where producers have been able to irrigate that may have average harvests, but even with irrigation, temperatures have been so high during the day and evening hours, even irrigated fields have suffered.”

Strickland advised that producers considering planting wheat in a field with a failed cotton crop should take soil samples. He said most of these fields will have nutrients available from the fertilizer applied to the cotton because of the crops’ limited growth. This can help save significantly on the fall wheat crop budget.

“Of course, the other side to that thought is that we still need rain to start planting winter wheat,” Strickland said.

Josh Bushong, northwest Extension agronomy specialist, said with many producers turning failed summer crops into hay, they need to test the hay’s nitrate levels. Producers can work with their OSU Extension county offices to have hay samples tested through the Soil, Water and Forage Analytical Laboratory.

OSU Extension uses research-based information to help all Oklahomans solve local issues and concerns, promote leadership and manage resources wisely throughout the state’s 77 counties. Most information is available at little to no cost.

   

Early Voting for the August 23 Runoff Primary Begins Today!

Early Voting for the August 23 Runoff Primary Begins Today!

Early voting for the August 23 Runoff Primary begins today for voters in all seventy-seven (77) counties.

Early voting is available Thursday, August 18 and Friday, August 19 from 8 a.m. to 6 p.m. Early voting will also be available Saturday, August 20, from 8 a.m. to 2 p.m. No excuse is needed to vote early.

Voters are reminded that Oklahoma is a closed primary state. In order to vote in a party’s primary or runoff primary election, you must be a registered member of that party. However, state law allows all recognized parties to open its primaries and runoff primaries to Independent voters by notifying the Secretary of the State Election Board. For the 2022-2023 election years, only the Democratic Party has opened its primaries and runoff primaries to Independent voters. Independents may request a Democratic Party ballot at their voting location.

The Republican Party has chosen to keep its primaries and runoff primaries closed. No Libertarian primaries were held this year.

It is important to remember, that voters without a runoff primary election are still eligible to participate in all non-partisan elections on the ballot.

Sample ballots are available in the OK Voter Portal. The election list and list of early voting locations are available on the State Election Board website. Voters must vote in the county where they are registered to vote.

Voters with questions should contact their County Election Board or the State Election Board at (405) 521-2391. Information can also be found on the State Election Board website.

   

Advancing Regenerative Soil Health Systems: Walmart Foundation Supports the U.S. Regenerative Cotton Fund

The Walmart Foundation announced it has provided a $2,000,000, three-year grant to the Soil Health Institute’s (SHI) U.S. Regenerative Cotton Fund (USRCF) to scale activities of the project and expand the initiative to Alabama and Sou…

Chances of Precipitation Next Week as Oklahoma Drought Conditions Persist

Chances of Precipitation Next Week as Oklahoma Drought Conditions Persist

Today’s report does not reflect some of the rains the state has received this week- those will show up in next week’s report.

According to the latest drought monitor report, in Oklahoma, exceptional drought is now at 3.5 percent, up from last week’s .67 percent.

Extreme drought or worse has increased to 59 percent, up from last week’s 48.8 percent.

Severe drought or worse has decreased about 2 percentage points from last week and is now at 90.6 percent. (Last week as at 92.4 percent)

Moderate drought or worse is the same as last week at 99.3 percent.

Abnormally dry or worse has held steady for a few weeks now at 100 percent.

The 6-10-day precipitation outlook map shows the majority of the state is leaning above a 40-50 percent chance of precipitation, with the eastern part of the state a little higher, leaning above a 50-60 percent chance.

Oklahoma is forecast to receive 3-5 inches of precipitation over the next week. For September, the Oklahoma Mesonet predicts increased odds of above-normal temperatures across western Oklahoma, but the rest of the state is variable.

To view the Oklahoma drought map, click here.

According to the latest U.S. Drought Monitor Report, precipitation again varied widely across the Lower 48 this week, which is not unusual during the summer. Across the interior West, monsoon rains were not as intense as last week, but remained heavier than normal. Several times the normal amount soaked most areas in the western half of the Four Corners Region, much of Nevada, southeastern California, reaching as far north as southeastern Oregon and Wyoming. Other areas receiving widespread heavy rains (and thus some improvement from recent dryness) included Deep South Texas and northwestern Nebraska. Parts of Deep South Texas recorded over 10 inches of rain, and 2 to 3 inches were common across northwestern Nebraska. Elsewhere, relatively narrow swaths of moderate to heavy rain dampened parts of the middle Mississippi Valley, Upper Midwest, and Great Lakes Region. Meanwhile, a broken pattern of moderate to heavy rain covered roughly the southeastern quarter of the contiguous 48 states. The higher amounts were in the 2 to 3 inch range though some small, highly-isolated areas recorded a bit more. In contrast, light precipitation at best fell on the Northeast, which teamed with abnormally high temperatures to induce significant and widespread intensification. Other areas observing light rain at best included part of the Upper Midwest, the north-central and south-central Plains. Conditions were seasonably dry along the West Coast.

In the Southern Plains, last week’s precipitation – though variable – followed the same general pattern as the precious week. Heavy rains drenched much of the eastern reaches of the Region while lesser amounts and localized deterioration were noted farther west. On significant exception was Deep South Texas, where heavy to intense rainfall brought significant improvement to areas of abnormal dryness and drought. Amounts exceeding 2 inches were widespread south of a line from Webb and LaSalle Counties eastward through San Patricio County, and amounts of 5 to locally over 10 inches drenched areas north of the Mexican border counties. This prompted nearly universal 1-category improvements on the Drought Monitor, with small areas of 2-category improvement where rainfall was heaviest. Extreme drought (D2) or worse are now confined to areas north and west of Duvall County. Elsewhere, increasing rainfall brought additional improvement to the Lower Mississippi Valley and Tennessee, but amounts were generally below-normal from central Texas northward through Oklahoma. Enough rain fell on central and northern Texas to keep areas of deterioration small, but little rain fell from the Red River (South) into northern Oklahoma, where larger areas of intensification were observed. Broad areas of exceptional drought (D4) still cover much of a large area from the southern Texas Panhandle southeastward toward the Gulf Coast. Over the last half-year, rainfall deficits of 8 inches to locally over a foot have affected areas of central Texas near and south of Dallas/Fr. Worth to the Gulf Coast.

In the High Plains, light rainfall at best fell on Kansas and farther north across the Dakotas. In contrast, heavy precipitation augmented by intrusions of monsoonal moisture covered large areas from Colorado and Wyoming eastward into western Nebraska. Dryness and drought eased in these areas, with improvement most widespread across the southern half of Wyoming and in the Colorado High Plains. Precipitation in these areas generally exceeded an inch, with 2 to 4 inches falling on several areas from southeastern Wyoming into northwestern Nebraska. Outside of the band of heavy precipitation that brought some improvement to Nebraska and adjacent areas, little or no rain fell on central and southern Kansas, and across most of the Dakotas, with South Dakota recording less rainfall than areas to the north. As a result, dryness persisted or intensified in these areas. Most of the Dakotas and the eastern tier of the Region measured near or below half of normal for the last 3o days, with several patches across the central Dakotas and southeastern Kansas receiving 25 percent of normal or less. In sharp contrast, most areas from central Wyoming through eastern Colorado and western Nebraska reported 150 to locally over 300 percent of normal since mid-July.

In the West, ample rains from the North American Monsoon continued through mid-August. Seven-day totals of 1 to 3 inches – with isolated higher amounts – fell across southwestern New Mexico and Arizona northward through much of the central and eastern Great Basin, and the western half of Utah. As a result, several large areas of improvement were noted this week, with the heaviest rains and most widespread improvement covering Arizona. After an extended period of serious drought, the heavy rains have prompted broadscale improvement in monsoon-affected areas. Two-category improvements over the past 4 weeks have occurred in areas recording the heaviest rainfall. Meanwhile, drought and dryness have been changing in the opposite direction across the northern tier. Most notably, abnormal dryness and moderate drought have been expanding across central and western Montana due to deficient precipitation and well above normal temperatures, while intensification has been slower and covers smaller areas in Idaho and Washington. Most of the Pacific Coast states have been dry and periodically hot as well, but this is their dry season, so totals are not far removed from normal.

To view the contiguous U.S. drought map, click here.

Looking ahead, the next five days could see heavy rainfall and improvement across a large part of northern Texas and southern Oklahoma eastward along the Arkansas/Louisiana border. Amounts of 2 to 3 inches are expected to be widespread here, with small areas south of the Texas Panhandle and in southeastern Oklahoma expecting over 4 inches of rain. Farther west, the robust monsoon looks to continue unabated. Between 2 and 4 inches are expected over southern sections of the Four Corners Region. But monsoon moisture is not expected to bring tropical moisture and heavy rainfall north of the central Rockies. Farther east, the rest of the southern tier of states are expected to get near or above an inch of rain, with bands of heavier rainfall expected in the Carolinas, southeastern Georgia and the central Gulf Coast. Much of the Upper Midwest and northern Ohio Valley should get several tenths to nearly 2 inches of rain, although the highest totals should be highly isolated. In stark contrast, little or no rain is expected over the contiguous states to the north and west of Kansas.

To view the 6-10-day precipitation outlook map, click here.
To view the 6-10-day temperature outlook map, click here.
To view the monthly drought outlook map, click here.

   

Chances of Precipitation Next Week as Oklahoma Drought Conditions Persist
   

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