The Senate Agriculture Committee held, by far its largest hearing in preparation for the 2018 Farm Bill, yesterday, to hear opinions in the industry on what works and what doesn't when it comes to tools for managing risk. Committee members heard the testimony of more than a dozen witnesses during a lengthy listening session Tuesday, with all the major ag and commodity groups having a chance to add their two cents to the record.

Overall, though, the consensus of the witnesses at the end of the hearing, was that crop insurance and safety net programs
are essential to the Farm Bill.

Senate Ag Chairman Pat Roberts, agreed with those that defended the safety net programs, which are comforting to producers and lenders in times when they are needed, but with the hope they never do. Roberts offered a simple message to critics of the insurance programs, should the agenda to exclude them continue to be pushed throughout the process, saying, "We are not going to cut crop insurance. Period."

He continued, "When producers put seeds in the ground, they do not expect a hail storm to hit right as they are ready to harvest their crops. They would much rather reap the benefits of their hard work in the marketplace than receive an indemnity. The last Farm bill made significant changes, and unlike previous policies, today's commodity programs-like crop insurance-are triggered only when there is a loss."

You can read more of the Chairman's remarks from yesterday's hearing in the transcription of his opening statement, here, or watch videos of the witnesses testimonies, by clicking here.

In total, three separate panels with representatives of 17 different interest groups testified before the Senate Agriculture yesterday at the hearing held by the committee's chairman, Pat Roberts, entitled: Commodities, Credit, and Crop Insurance: Perspectives on Risk Management Tools and Trends for the 2018 Farm Bill.

Two general farm and ranch associations, the American Farm Bureau Federation and the National Farmers Union, were included in the docket for the day's listening session.

President of the Kentucky Farm Bureau, Mark Haney, who serves on the AFBF Board of Directors, delivered testimony on behalf of the American Farm Bureau Federation.

"2017 and 2018 will be a critical period for farmers and ranchers," Haney told the committee. "Farmers and ranchers are tightening their belts and paying very close attention to their individual financial situations. Simply put, they are in greater need of strong, secure safety net programs and risk management tools than has been the case for several years."

You can read Haney's prepared remarks, or listen to his delivery of them before the Senate Ag Committee, by clicking here.

NFU President Roger Johnson concurred with Haney's statement, and insisted that the committee's job to craft a Farm Bill that's agreeable to all its stakeholders will not be an easy task. Nonetheless, he insisted that finding solutions to improve the legislation and its programs was imperative.

"There are many challenges facing agriculture today," Johnson concluded. "This committee has a challenging task ahead of it as it begins to grapple with these problems. The farm bill safety net needs to be improved, crop insurance needs to be protected, and access to credit needs to be increased all for the benefit of family farmers. Our collective challenge is to continue working to provide help when and where needed - and to encourage the continued growth and success of our most vital industry - agriculture."

To read or listen to Johnson's testimony, click or tap here.

Of the 17 groups that testified at yesterday's Farm Bill hearing, several major commodity groups had the chance to give their perspective on issues pertaining to the development of the next Farm Bill reauthorization.

"Between record low commodity prices, unfair trade practices in the global market, disease issues, and extreme weather, wheat farmers across the nation are experiencing the toughest economic conditions they have faced since the 1980s," stated David Schemm, NAWG President and Sharon Springs, KS farmer. "Fortunately, programs authorized in the 2014 the Farm Bill, specifically crop insurance, have enabled farmers to be able to farm another year when prices collapse or disaster strikes." Click here to read or hear Schemm's testimony.

Dan Atkisson's testimony, for the National Sorghum Producers, was optimistic in its position that while commodity farmers across the board are suffering, the prospect of better farm policy in the US offers a silver lining to the current economic situation.

His full testimony, including audio of his remarks, is available by clicking here.

Kevin Scott, a soybean farmer from South Dakota, spoke on behalf of the American Soybean Association, and reinforced the testimony of those preceding him, that crop insurance is an essential risk management tool.

I ran into Craig Uden, president of the National Cattlemen's Beef Association, during the Oklahoma Cattlemen's Association Convention, and took the opportunity to get his take on a variety of topics currently facing the cattle industry.

He offered an update on the discussions that took place during NCBA's recent Summer Business Meeting in Denver, where the cattle industry/CME Group working group reported on the progress they've made after several months of working to bring more transparency to the markets and reduce the volatility that's plagued producers for some time now.

While progress has been made, Uden admits there's still work to be done. He assures the working group will continue its effort to bring stability back to the market.


In addition, Uden says his outlook for the rest of 2017 is very optimistic. He applauds the successful year so far noting the impressive strength in both domestic and international markets. He says herd expansion, too, continues while processing has stayed very tight. Uden contends that if the industry keeps its foot on the gas, there will be ample opportunity for the future.

You can hear our complete conversation from last week at the OCA convention, as we discuss, a range of topics from market volatility to the traceability issue and beyond, by clicking here.

Included in the three reports on the beef industry released last week by the United States Department of Agriculture, was the sometimes published/sometimes not published Cattle Inventory report. When there is room in the budget, the USDA will compile this report, says Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel, and 2017 was one of those years. Compiled at the beginning and middle of the year, the January report has already been filed and July presents a whole new set of numbers here midway through 2017. I recently caught up with Peel for his interpretation of the numbers in this report.


Over the last few years, the USDA dropped this report in 2013, then reinstituted it in 2014 and 2015 - dropped it again in 2016 and brought it back yet again here in 2017. "It's been very frustrating the last few years," Peel remarked, insisting that the inconsistency of the reports diminishes its value and makes it harder to interpret.


"We can't compare to year ago numbers, but if you look at historically how the July numbers compare to the January numbers, we can get a little bit of information on the herd size out of that," Peel said, noting that the July numbers reveal the current inventory is at 4 percent above the January numbers. "Historically that number has averaged about 101 percent to 102 percent and if you go back at history, anytime that number has been over 102 percent - it says we're still in herd expansion. That's what we expected and this confirms that."


Overall, Peel says these reports just confirms common perceptions with no major surprises coming out of them. What he does say, though, is that the industry can expect to see a larger calf crop, due to increased heifer retention. He says that translates into larger feeder supplies into 2018.


You can listen to Dr. Peel and I speak about his interpretation of the Cattle Inventory report for July 2017, released last week by the USDA, on yesterday's Beef Buzz - click here.

 

 
The annual meeting of the Oklahoma Wheat Growers Association which is combined with the annual Wheat Review of this past year's crop will be happening next Thursday, August 3rd at Redlands Community College in El Reno.

If you are a member- registration is free- for non members- it's fifty bucks. AND- today is the deadline for preregistration for next week's meeting.

Click or tap here to see the complete details about the meeting- and we have a link to the registration form.

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The regular board meeting of the Oklahoma Wheat Commission is today- and Commission members will be electing officers for the coming year this morning- among other items of business. 

Click or tap here to check out their full agenda- the meeting begins at 9:00 AM.

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The annual spring and durum wheat tour is underway in the Dakotas and and western Minnesota- and DTN reports that things look average in the eastern part of the tour area- and HORRIBLE in western areas.