~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Oklahoma's latest farm and ranch news
Your Update from Ron Hays of RON for Monday, September 26, 2011A service of Producers Cooperative Oil Mill, Midwest Farm Shows and KIS Futures!
-- Latest Farm Bill Proposal Floated- ARRM
-- USDA Monthly Cattle on Feed report much friendlier than expected.
-- House Ag Committee Members Introduce The Dairy Security Act of 2011
-- Renewable Fuel Association Against Reopening Renewable Fuel Standard
-- Oklahoma Rancher Jimmy Taylor Brings Home National Honors from 2011 Certified Angus Beef Conference
-- Former OSU Professor Evaluates GIPSA Study and Economic Impact
-- Dry Weather Ahead- so What Else is New?
-- 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 have KIS Futures as a regular sponsor of our daily email update. KIS Futures provides Oklahoma Farmers & Ranchers with futures & options hedging services in the livestock and grain markets- Click here for the free market quote page they provide us for our website or call them at 1-800-256-2555- and their IPHONE App, which provides all electronic futures quotes is available at the App Store- click here for the KIS Futures App for your Iphone.
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Producers Cooperative Oil Mill, with 64 years of progress through
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information on the oilseed crops they handle, including sunflowers and
canola- and remember they post closing market prices for canola and
sunflowers on the PCOM
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morning's Farm News - or you are in an area where you can't hear it- click
here for this morning's Farm news from Ron Hays on RON.
Latest Farm Bill Proposal Floated- ARRM
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~This past week, four US Senators, led by Ohio Democrat Sherrod Brown, introduced Senate Bill 1626- a comprehensive farm bill plan called the Aggregate Risk and Revenue Management (ARRM) program. Their plan, which builds on the current Average Crop Revenue Election (ACRE) program, would be less complicated and more responsive than many of the current programs, the Senators claim.
The ARRM program is comparable to a plan proposed earlier this month by the National Corn Growers Association. The National Corn Growers- and state Corn Grower Groups have been quick to praise this legislation. Click here for a statement that came from the NCGA on Friday afternoon that called the Brown-Thune-Durban-Lugar proposal- NCGA President Bart Schott in that statement saying "We feel the proposed legislation adopts the right kind of market-oriented approach in providing assistance when most needed by producers."
The ARRM program would eliminate direct and counter-cyclical payments, as well as SURE. In its place would be the ARRM program, which would overhaul the Average Crop Revenue Election program. ARRM would pay based on planted acres, not a formula using base acres. Further, USDA crop-reporting districts for crop insurance would help bring yield triggers closer to the farm. A price guarantee would be set based on the last five years of farm revenue. Landowners also would not have to sign on to the program as they are required to do now under ACRE.
The Congressional Budget Office scored ARRM at costing just under $28.5
billion over 10 years, saving $19.8 billion compared to current programs.
It would go from the 2013 to 2017 crop years.
USDA Monthly Cattle on Feed report much friendlier than expected.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.7 million head on September 1, 2011. The inventory was 5 percent above September 1, 2010. This is the third highest September 1 inventory since the series began in 1996.
Placements in feedlots during August totaled 2.25 million, 1 percent below 2010. Net placements were 2.18 million head. The placement number was BELOW the smallest number offered in the pre report guesses- even though it is still the highest placement number in any given calendar month here in 2011 thus far.
Marketings of fed cattle during August totaled 2.05 million, 7 percent above 2010. Other disappearance totaled 72,000 during August, 53 percent above 2010.
Tom Leffler of Leffler Commodities gave us his analysis of this month's Cattle on Feed numbers and what it could mean for the market. Click on the LINK below to listen to his analysis.
House Ag Committee Members Introduce The Dairy Security Act of 2011
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~U.S. House Agriculture Committee Ranking Member Collin C. Peterson, D-Minn., and Rep. Mike Simpson, R-Idaho, introduced The Dairy Security Act of 2011. The legislation will replace current, outdated dairy programs with new risk management tools addressing the realities of today's dairy industry, such as rising input costs and a growing export market.
"If we have another crisis like we had in 2009, when milk prices dropped and input costs skyrocketed, I fear we could lose half our dairies. The dairy safety net did not work then and it won't work if similar events occur now. Producers cannot wait for another crisis or a new farm bill for Congress to fix the broken dairy safety net," Peterson said. "Feedback from all sectors of the diverse dairy industry has been instrumental in drafting this bill and I look forward to continuing these conversations, as well as working with other members of Congress to advance dairy reform."
"It's been helpful to me to hear from Idaho's dairy industry about
changes that we can make to the dairy program to prevent another economic
crisis like that the industry faced in 2009. I appreciate the cooperative
spirit and contributions of the members of the dairy industry thus far and
look forward to continuing this conversation as the legislation moves
through the committee process. I am confident that the Dairy Security Act
of 2011 will provide an effective economic safety net for the U.S. dairy
industry while saving taxpayer dollars," Simpson said.
The National Milk Producers Federation (NMPF) is giving its full
support for the new bill introduced by the House of Representatives that
would make broad changes in dairy policy.
Renewable Fuel Association Against Reopening Renewable Fuel Standard
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Relegislating, repealing, or reopening the Renewable Fuel Standard (RFS) at this time is bad policy, the Renewable Fuels Association (RFA) said. That includes the reportedly newest effort by Rep. Bob Goodlatte and Rep. Jim Costa to waive a portion of the RFS when the corn stocks-to-use ratio falls below an arbitrarily determined level.
"Seeking to relegislate the RFS in this manner would do nothing to address the concerns raised by the livestock constituents of Reps. Goodlatee and Costa," said RFA President and CEO Bob Dinneen. "Research clearly demonstrates that implementing an RFS waiver trigger based on the stocks-to-use ratio will not have the effects on corn prices desired by livestock and poultry interests, nor will it mean more corn is immediately available for feed use. Rather than knee-jerk policy reactions, Congress should maintain the integrity of the RFS to help drive job creation and wean America from its addiction to foreign oil."
Recent studies have concluded that the RFS has been only a minor contributor to corn prices in recent years. A July 2011 analysis commissioned by the International Centre for Trade and Sustainable Development found that corn prices would have been exactly the same in 2009/10 if both the RFS and Volumetric Ethanol Excise Tax Credit (VEETC) had not existed.
Additionally, the stocks-to-use ratio has limited value as an indicator of expected market dynamics and price. University of Illinois economist Darrell Good cautions that stocks-to-use ratio should only be considered as "a starting point (for estimating potential price impacts) since very different supply and demand conditions in individual years can lead to similar ratios of stocks-to-use but very different prices."
Oklahoma Rancher Jimmy Taylor Brings Home National Honors from 2011 Certified Angus Beef Conference
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~This past week, Oregon was home to the 2011 Certified Angus Beef ®Annual Conference. Folks gathered at the historic Sunriver Resort in the Cascade Mountains of Oregon.
Two Oklahoma Cattle Producers were a part of the global gathering of more than 600 attendees- and Jimmy and Tracy Taylor of Elk City were honored during the Conference with an Award of Excellence, signifying their ranch as the National Commercial Producer of the Year for Certified Angus Beef. Nominating the Taylors was Dale Moore of Cattlemen's Choice Feedyard of Gage, Oklahoma.
As they returned to Oklahoma this past Friday evening, we caught up
with the Taylors and the Moores at Will Rogers World Airport- and talked
with Jimmy and Dale about this award- and about how the Taylors have
redirected their cattle herd with improved genetics to become a model for
the entire country when it comes to producing calves that will succeed in
the CAB program.
Former OSU Professor Evaluates GIPSA Study and Economic Impact
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Daryll Ray, a former professor at Oklahoma State University in the Agricultural Economics department from 1971 to 1991, recently posted the following opinion-editiorial article on the Grain Inspection, Packers and Stockyard Administration rule. The GIPSA rule has caused a variety of reactions across the agricultural industry and Ray weighs in with his opinion on a recent study over GIPSA and its analysis of the economic impact GIPSA will have. Ray is now a professor at the University of Tennessee and his article is featured below.
"In anticipation of potential Congressional action and the issuance of the GISPA rule by USDA, we have been rereading Informa Economics' "An Estimate of the Economic Impact of GIPSA's Proposed Rules," prepared for the National Meat Association. According to Informa's analysis, as a result of the implementation of the proposed GIPSA rule, the annual economic costs for the meat industry will total $1.6 billion and result in the loss of 22,843 jobs. These numbers are in contrast to the initial estimate by the USDA that the cost of the proposed rule would be negligible.
As in any study of this sort, the results are often determined by the methodology, so particular attention must be paid to the methodology used by Informa in this study. As Informa reports, "Gaining first-hand input from industry stakeholders was considered to be essential for identifying and measuring the financial and business impacts from the proposed GIPSA rules." They said that they interviewed "stakeholders at all levels of each supply chain"-poultry, pork, and beef. They also looked at the costs of implementing the various proposals, conducted a literature review, and engaged in macroeconomic modeling using an input-output model.
From the material presented in the study, it appears that the interviews of stakeholders were concentrated among the large packers and suppliers with little evidence that the concerns of the small producers were taken into consideration. There were no stories of packer interference with growers attempting to watch their chickens being weighed, or the fear of chicken producers to speak out against integrator policies that were so evident at the USDA-Justice Department hearings that were conducted in the summer of 2010."
Dry Weather Ahead- so What Else is New?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~If you don't have enough moisture to get wheat or canola into the ground at your place- the news is not good from the National Weather Service where virtually no chance of rain is in the seven day forecast- although there seems to be some hope if you look at the end of the ten day outlook.
Later this afternoon- we will get our first reading about wheat and canola planting in Oklahoma from our weekly crop weather update- after the rains of about a week ago that happened north of I-40 and in some counties along the Red River- Tillman County eastward.
Meanwhile, the number of cows and bulls coming to market are running about double compared to a year ago. The Weekly Cattle Market Summary for the auctions in the state of Oklahoma showed us Friday that over the last week, we had 8,676 head sold at six auction markets around the state- 52% going to packers. This compares to 4,038 sold at those markets a year ago- with 56% going to packers. Herd culling continues, as dry weather discourages those hoping for some wheat pasture that now appears to be a long shot for most producers at best. Click here for that report- you have to scroll down past the feeder cattle to get to the cow and bull numbers.
A new supporter of your daily email are the Legendary Restaurants of Oklahoma- each Friday at 8:30 AM central time- another great Oklahoma restaurant will be featured with a special half priced deal- you will be able to buy a fifty dollars worth of certificates for just $25! The next restaurant to be featured will be Molly's Landing of Catoosa- click here for more details on this great deal coming this Friday.
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We also invite you to check out our website at the link below to check out an archive of these daily emails, audio reports and top farm news story links from around the globe.
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 $12.06 per bushel, while the 2012 New Crop contracts for Canola are now available are $12.09 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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