Farm incomes will likely continue to slump next year with grain prices remaining at or near their lowest levels in about a decade, according to an analysis by agricultural economists at Purdue University. 

U.S. agricultural exports are expected to recover slightly after two years of decline, but not nearly enough to offset increasing global grain stocks, said Chris Hurt, editor of the Purdue Agricultural Economics Report. 

"In the last three years, U.S. production has outpaced usage for corn, soybeans and wheat," Hurt said. "Abundant inventories of grains and soybeans mean low prices." 

Last Friday, the USDA released this month's Cattle on Feed report, revealing fairly large percentages in the net result. However, the most notable takeaway that drew attention is the fact that the report shows there is currently one percent fewer cattle than a year ago. I caught up with cattle market watcher Dr. Derrell Peel for his initial impression of the report, which he called slightly bearish but overall neutral and well anticipated.


"I don't think it was a major surprise," Peel said. "The placement number was maybe a little bit bigger - certainly within the range of expectations - might have been a little bit bigger than the average trade guess."

Overall though, Peel concludes that this year has finished out as good as could have been hoped for in the current climate.


"2016 has been a pretty good year in terms of the way feedlots have managed cattle inventories and flows and certainly as the market changed from what they were doing this time last year," Peel said, "where they did in fact create a worse wreck by holding cattle and failing to move them through the system on a timely basis."

You can listen to my full interview with Dr. Peel as he breaks the numbers down in this report, by clicking here.

In what seems to be an annual occurrence now, since South Korea's first outbreak of Highly Pathogenic Avian Influenza in 2003, the Asian nation is again battling the epidemic. This time they are fighting both a familiar strain and a new strain, H5N6, never seen before within their borders.


The first case of HPAI this year was reported on November 16th and has since continued to spread rapidly. Thus far, the magnitude of the affect has involved 92 reported cases, 76 of which have been confirmed by authorities. In total 204 farms have been confirmed positive for HPAI. Pursuant to Korean policy standards, more than 16.7 million birds on 344 farms have been culled at this point, with plans to cull an additional 2.4 million on 22 farms.  


Two days after the initial reports of the outbreak, the South Korean government raised the crisis warning level to "serious," the highest level on the scale. This is the first time that the Korean government has raised the warning to this level. As a result of this designation, a more intensive government response will be invoked. Precautions to curb the spread of infection are being taken including the close monitoring and restriction of travel and transportation and more frequent, preemptive disinfections.

For more information on this developing story including a detailed report from the Global Agricultural Information Network, click here.

The United States Trade Representative's office announced last week that the US is poised to begin the process to reinstate tariffs on goods and products from the European Union in reaction to the EU's unfair treatment of US beef. I asked Kent Bacus, the National Cattlemen's Beef Association's director of international trade, for his perspective on this action. He says if the EU would hold up its end of the bargain struck back in 2009, we wouldn't be in this situation.


"In 2009 the United States and the European Union signed a memorandum of understanding in which the US would temporarily suspend retaliatory tariffs on European goods," Bacus said. "In exchange for that, the US beef industry would have duty-free access of upwards to 45,000 metric tons for beef from non-hormone treated cattle."


This agreement was made in the hopes that a bridge of trust could be built over time between US beef producers and European consumers, opening further market access down the road. Unfortunately, Bacus says the EU has failed to live up to their end of the deal.

"They have allowed other countries to access this quota and as a result, we have seen the US market share drastically decline," Bacus said. "So the question becomes, 'how can we fix this?'"


For last several years, Bacus says that the US government has tried to find solutions to this ongoing issue, but to little avail with the EU unwilling to cooperate. Therefore, the US has ultimately resolved to take this action in reinstating the tariffs to at least prevent the EU from taking complete advantage of US beef producers any longer.

Listen to my full conversation with Bacus regarding this action by the USTR to curb the EU's unfair trading practices, by clicking here.

The Oklahoma Association of Conservation Districts (OACD), Redlands Community College and the USDA Southern Plains Climate Hub will be hosting the next Central Oklahoma Soil Health Seminar Thursday January 19, 2017 from 9am to 3pm. 

This event will provide agriculture producers an opportunity to learn about some of the tools available to them both to improve the health of their soil and their financial bottom line.


Issues to be discussed at the event include USDA's Long-Term Agroecosystem Research (LTAR) network, including the use of unmanned aerial vehicles (UAV's) in research and farm- and ranch level applications; Green seeker technology and its applications in a soil health system; Whole Farm Insurance as a tool for producers interested in soil health; the new changes to the Conservation Stewardship Program (CSP), and a panel discussion of farmers and ranchers on technology adoption.


For more information, including instructions on how to register for this event, click here.

Fort Hays State University student Thor Burnside of Talala, Oklahoma is among ten top-notch college students, who are pursuing careers in the beef industry, and chosen for the 2017-2018 $1,500 CME Beef Industry Scholarships. The scholarship is sponsored by the CME Group and administered by the National Cattlemen's Foundation (NCF).

"We're pleased continue our support of the CME Beef Industry Scholarships, which provides education to future beef industry leaders," said Tim Andriesen, CME Group managing director of agricultural products. "Our partnership with NCF enables us to continue investing in accomplished university students who represent the next generation of food producers here in the U.S."


The CME Beef Industry Scholarship was introduced in 1989 in partnership with the Chicago Mercantile Exchange. Today this scholarship tradition remains strong by recognizing and encouraging talented college students who will one day be industry leaders. The National Cattlemen's Foundation and the CME Group are committed to the future of the cattle industry and continue to support outstanding youth in the beef community.

To continue reading this story and for a complete list of the scholarship recipients, click here.