~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Oklahoma's latest farm and ranch news
Your Update from Ron Hays of RON for Wednesday October 27, 2010A service of Producers Cooperative Oil Mill, Midwest Farm Shows and Big Iron OnLine Auctions!
-- Countdown to Midterms- A Week Away from Calling Frank Lucas "Mr. Chairman"?
-- National Farmers Union Weighs in on GIPSA- Offering Strong Support for This Reform
-- Meanwhile, NCBA Beats the Drum in Opposition to the GIPSA Rule
-- Southwestern at Weatherford is Hosting a Biofuels Forum on Thursday
-- China is a Market Force in the US Wheat Market- Whether They Buy From Us or Not
-- Wheat Pasture Conditions and Feeder Marketing Strategies
-- Economy Wide Benefits of Etahnol Cited by USDA
-- 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 proud to welcome Big Iron Unreserved Online Auctions as our newest sponsor of the daily Email. Their next auction is Wednesday, October 27 - featuring Low Hour, Farmer Owned Equipment. Click here for their website to learn more about their Online Farm Equipment Auctions.
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Countdown to Midterms- A Week Away from Calling Frank Lucas "Mr. Chairman"?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The Resolutions Committee of the Oklahoma Farm Bureau kicked off two days of work at noon on Tuesday, and heard during their opening luncheon from Oklahoma Congressman Frank Lucas, now the ranking Minority Member of the House Ag Committee. The Chairman of their Resolutions Committee is their Vice President, Bob Drake, and he wasted no time as he introduced Congressman Lucas to the group as the Next Chairman of the House Ag Committee. That brought an enthusiastic response from the crowd as they stood to welcome Roger Mills County Rancher to the meeting.
Lucas spoke of several familiar priorities with Farm Bureau leaders- including the need to postpone working on a new farm bill until 2012- instead of pushing for a 2011 start as advocated by the current Chairman of the House Ag Committee, Collin Peterson. He also spoke of the need for oversight hearings and told afterward that a list is being compiled of agencies and issues where oversight needs to be addressed.
One issue that he mentioned as a candidate to be considered in the House Ag Committee during the Lame Duck Session is the proposed livestock market rule from GIPSA at USDA. Saying that USDA could move quickly after the November 22nd end of the public comment period to make the rule final- he promises a personal conversation with current Chairman Collin Peterson on GIPSA when the Lame Duck goes into session November 15.
Click on the LINK below to listen to our latest conversation with Congressman Frank Lucas as the midterm elections near- and with those elections the persistent question to be answered for Oklahoma Ag Interests- will Frank be Chairman Frank come January or not.
National Farmers Union Weighs in on GIPSA- Offering Strong Support for This Reform
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~National Farmers Union (NFU) President Roger Johnson submitted comments today commending U.S. Department of Agriculture's (USDA) Grain Inspection, Packers and Stockyard Administration (GIPSA) on its proposed rule, calling it a "Farmer and Rancher Bill of Rights."
"Input from agricultural producers is essential to the rulemaking process," said Johnson. "The Packers and Stockyards Act has been around for 90 years. It's time to start enforcing it. The Farmer and Rancher Bill of Rights will protect farmers and ranchers from anticompetitive behavior by packers and processors. Industry will no longer be allowed free rein to abuse livestock producers who have limited market power."
The proposed rule addresses concerns that have been discussed for decades. The rule is also well within the scope of GIPSA's authority granted by the Packers and Stockyards Act and was developed in response to the 2008 Farm Bill, which requires USDA to carry out specific rulemaking to improve fairness in the marketing of livestock and poultry.
Johnson acknowledges that some clarifications may be needed to address some of the concerns of the producer groups who are against the rule- but clearly NFU is on board with Dudley Butler and the Obama Administration on the majority of the proposal. Click on the LINK below for more on this proposal that some say will lead to the most sweeping changes in livestock marketing in almost a hundred years.
Meanwhile, NCBA Beats the Drum in Opposition to the GIPSA Rule
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~The discussion about the GIPSA Marketing Rule continues to accelerate as we come closer to the end of the comment period on the rule- the comment period ends November 22, 2010. Speculation is mounting that USDA will not read and consider the comments provided- but will allow the Administrator of GIPSA, Dudley Butler to finalize the rule largely as it is on November 23rd or shortly after.
Lead Lobbyist for the National Cattlemen's Beef Association, Colin Woodall, says its imperative that individuals send comments to Secretary Vilsack about how the rule will impact them- that if the agency is buried in comments about the proposal- it will be harder for them to ignore all of the comments and finalize the rule the next day.
We talk about this with Woodall on today's Beef Buzz- click on the LINK below to jump to our page on OklahomaFarmReport.Com for the first part of our conversation with him this week on the subject. We talked with him during the Texas Cattle Feeders Association convention that was held in Oklahoma City.
Southwestern at Weatherford is Hosting a Biofuels Forum on Thursday
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Southwestern Oklahoma State University will host a Community Forum on expanding the U.S. Biofuels Market led by USDA on Thursday, October 28th. USDA has outlined a plan on how to develop a successful biofuels market capable of achieving the U.S. Renewable Fuels Standards mandate of not only producing, but also using, 36 billion gallons of renewable transportation fuel per year by 2022. However, this is an interim plan and now the department needs input and feedback from Rural America.
The Congressionally mandated RFS2 goal is to use at least 36 billion gallons of bio-based transportation fuels by 2022 that reduce greenhouse gas emissions by the percentages specified under the RFS2. Fifteen billion gallons can come from conventional biofuel sources such as corn ethanol. EPA's analysis projects that 15 billion gallons of conventional biofuels could come from current or planned production capacity of corn starch ethanol by 2022.
The 21 billion gallons of biofuels not coming from grain starch based
ethanol is the question mark- and will be one of the prime things that
will be discussed in this forum Thursday evening.
China is a Market Force in the US Wheat Market- Whether They Buy From Us or Not
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~China's dynamic market is impacting U.S. wheat supply and demand reported speakers at the U.S. Wheat Associates (USW) board of directors meeting in Minneapolis, MN. Mike Krueger, president of The Money Farm, Fargo, ND, and USW Regional Vice President Matt Weimar, Hong Kong, examined how the changing demand for food in China can move U.S. prices, in separate presentations. Although China is the largest producer of wheat in the world, it imports some wheat each year.
"Chinese flour millers need imported, high-quality wheat to blend their
domestic medium protein wheat up or down to produce flour products that
meet increasing demand for more premium products," Weimar said. "Their
imported wheat reserves are low, so the market is calling for more
imported wheat from classes like hard red spring, soft white and maybe
some hard red winter.
Mike Krueger, who advises farmers on crop marketing, said Chinese
demand for corn is helping increase U.S. corn prices. That also has an
impact on U.S. wheat prices.
Wheat Pasture Conditions and Feeder Marketing Strategies
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~According to OSU Livestock Market Specialist Dr. Derrell Peel, wheat pasture could still arrive this fall. "Most of the state of Oklahoma has received significant rain in the last 10 days. Many areas received one to two inches with some areas getting significantly more. The timing was good in that most of the wheat is planted with much of it up and the response to this moisture should be good. At this time, there is very little wheat pasture ready for grazing but this rain will help pasture develop, if somewhat later than planned. I expect that, similar to last year, we may see slow but steady wheat grazing develop through the winter with stockers dribbling out to pasture all winter."
"Feeder prices in Oklahoma are likely at the seasonal low and are expected to strengthen a bit in the last part of the year. Relative feeder prices provide several distinct signals to cow-calf, stocker and feedlot producers. Last week in Oklahoma, the cheapest feeder animal up to 850 pounds, on a $/cwt. basis was a 600 pound steer. At this time, there is relatively little demand for such an animal. It is a bit too heavy for traditional stocker programs and too light for feedlots to want to feed a lot of expensive corn to. There is also a relatively sharp break above and below 500 pounds. These price signals suggest several strategies for cattle producers."
Click on the LINK below for more of Dr. Peel's thoughts on the current market signals for cattle going onto wheat pasture here in the state.
Economy Wide Benefits of Etahnol Cited by USDA
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~An earlier study by researchers at USDA concluded that grain ethanol produces twice the energy than goes into its production. Now, USDA's Economic Research Service has completed an economic study that shows ethanol helps our economy and puts money back into the household budget. Growth Energy has been arguing that point from Day One. The conclusion is that increasing the use of ethanol will not only reduce our nation's dependence on foreign oil, but create economy-wide benefits.
The economists report: replacing petroleum gasoline with less expensive ethanol would reduce domestic spending on motor fuels. This reduction would occur as long as ethanol is competitive with imported petroleum oil. The cost savings from reduced motor fuel expenditures are passed on to households. The Department of Energy expects the price of ethanol to remain competitive at about two-dollars a gallon, with oil going higher than 100-dollars a barrel by 2020.
As the report asserts, success in meeting the RFS depends on overcoming some challenges, but the long-term gains to the economy from increased production of ethanol, are clear. If we truly want to reduce our dependence on foreign oil, create jobs and improve our environment, we must increase the use of biofuels in our fuel system.
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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 $8.95 per bushel- as of the close of trade on Thursday, while the 2011 New Crop contracts for Canola are now available are $9.65 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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