Soybean, Biotech Industry Groups Applaud Supreme Court's Ruling in Bowman v. Monsanto 

The Supreme Court decision was authored by Justice Elena Kagan, who wrote, "In the case at hand, Bowman planted Monsanto's patented soybeans solely to make and market replicas of them, thus depriving the company of the reward patent law provides for the sale of each article. Patent exhaustion provides no haven for that conduct. We accordingly affirm the judgment of the Court of Appeals for the Federal Circuit."
 

In the case, Indiana farmer Vernon Hugh Bowman was sued by Monsanto Company for purchasing Monsanto-patented soybeans from a commodity grain elevator, planting the seeds, then spraying the field with glyphosate. Crop Life America filed an amicus brief on January 23, 2013 arguing in favor of a ruling by the U.S. Court of Appeals for the Federal Circuit that protected the rights of patent holders. Additional amicus briefs were filed by other interested parties, including CropLife International (CLI), the American Seed Trade Association (ASTA), the Biotechnology Industry Organization (BIO) and the American Soybean Association (ASA).  

American Soybean Association (ASA) President and Canton, Miss.-based soybean farmer Danny Murphy welcomed the Supreme Court's unanimous ruling today in Bowman v. Monsanto. The court's 9-0 ruling expresses support for the protection of intellectual property. Murphy commented on the case's broad implications for agricultural innovation:   

Murphy spoke with me about the unanimous ruling and said, "I think that was a positive for the soybean industry and, really, for all of American agriculture because we really depend on innovation that we get from our trade companies and seed companies and, really, equipment and everything else that we use.  We depend on that technology and that's all derived from intellectual property.  And this just reaffirmed how important intellectual property was."  You can read more comments from Danny Murphy or you can listen to our conversation by clicking here. 

Justice  Kagan agreed that Bowman had the right to purchase and use the soybeans as feed, but wrote he did not have the right "to make additional patented soybeans without Monsanto's permission."

Jim Greenwood, president and CEO of the Biotechnology Industry Organization (BIO) said his group was pleased with the decision and said, "the Supreme Court's commitment to uphold valid intellectual property rights in this case creates business certainty that will benefit all of biotechnology - as well as the patients, farmers, and consumers who benefit from biotechnology's help in healing, feeding, and fueling the world."  Click here for more comments from BIO.

The National Corn Growers Association also came out in support of the ruling.  Click here for their comments.

The latest Oklahoma Crop Weather report shows wheat heading significantly behind normal.  By the end of last week, only 65 percent of the crop was headed, 29 points below normal.  Forty-seven percent of the crop was rated in very poor or poor condition.  Thirty-two percent was listed as fair and 19 percent was rated in good shape.

Canola was rated mostly good to fair, with 42 percent rated poor to very poor. Six percent of canola was mature by the end of the week, compared to 80 percent this week last year.  (Click here for the full Oklahoma report.)

In Kansas, the winter wheat crop was 80 percent jointed, behind 100 percent a year ago and 96 percent average. The crop was 9 percent headed, well behind 97 percent a year ago and 3 weeks behind a 52 percent average. The condition rated 21 percent very poor, 20 percent poor, 31 percent fair, 25 percent good, and 3 percent excellent. Just under half of the crop had no freeze damage.  (The full Kansas report is available by clicking here.)

Some reports were received of wheat harvest beginning in the southern part of Texas. The wheat crop progressed in the Blacklands and East Texas and was mostly headed. In the Plains and the Cross Timbers, many small grain fields were being cut and baled for hay.  Seventy-three percent of the crop was rated poor to very poor, with 25 percent listed as fair to good.  (You'll find the Texas Crop Weather and Condition report by clicking here.)

NATIONALLY- corn planting made progress this past week- jumping from 12% to 28% complete- but we remain well behind the five year average of 65% and the pace of 2012- 85% done by this date. A couple of "I" states are worrisome- Illinois now just 17% planted versus 64% average and 94% done last year- Iowa sits at 15% planted this season versus the five year average of 79% and last year's 86% planting figure by this point in May.  Click here for the full national crop progress story- things in general lag the pace of last year and the five year average.

As the Senate and House Agriculture Committees begin work this week on a 2013 farm bill, there is a whole universe of issues that must be ironed out before any bill can be successfully passed, reconciled and sent to the President.

In Washington, Mary Kay Thatcher, Senior Director of Congressional Relations with the American Farm Bureau Federation, spoke with me about the complexity of the work that must be completed before a farm bill can become reality.  She said not only are there differences in the principles driving the House and Senate versions of the bills, but also there are wide chasms to be bridged between commodity producers themselves.  She said many producers want a shallow loss, moving revenue average on the one side and on the other side you've got farmers who would rather see a high target price that is fixed for five years with little red tape and maximum flexibility.  She said that the opinions among Farm Bureau members vary widely as well.

Poor Forage Conditions a Big Challenge to Oklahoma Ranchers

Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist, writes in the latest Cow-Calf Newsletter:

Early May provides the first look at the forage conditions facing the beef cattle industry in 2013. Moisture conditions have improved marginally with the most recent Drought Monitor indicating that 33 percent of the U.S. is in D2-D4 drought conditions, down from 40 percent three months ago but worse than last year, when 20 percent of the country was in D2 or worse drought at this time. The drought is now confined mostly to the western half of the country, across much of Great Plains and Intermountain regions, and covering an area that contains a large percentage of beef cows. The long, cold winter has extended the carryover drought impacts with additional demands for hay and more pressure on stressed pastures and ranges.

The May Crop Progress report contains the estimated hay stocks on farms as of May 1. The inventory of 14.2 million tons is the smallest since 2007 and smaller than any May 1 total in data back to 1973. Total hay stocks on May 1, 2013 for the U.S. are down 36 percent from the previous ten year average. Reduced hay production due to drought the past two years and the extended winter demands this spring have pulled hay stocks to extremely low levels. Given current drought conditions and cold weather delays this spring, hay production is likely to be below normal again in 2013, thereby limiting the recovery of hay stocks this year. 

Click here to read more from Derrell Peel.

New School Lunch Beef Recipes Win Approval from Kids, Foodservice Directors

After participating in a pilot program at schools around the country, many students and school foodservice directors agree: The Rock and Roll Beef Wrap is delicious and nutritious. The same goes for Spy Thai Beef, Sweet Potato Beef Mash-up, Wrangler's Beef Chili and Sweet and Sloppy Joes.

"Awesome' was a common compliment from youngsters who taste-tested and named five all-new ground beef recipes created by the Beef Checkoff Program for school lunches. School foodservice directors noted the "homemade' flavor of the recipes and the use of economical, widely available ingredients. Another selling point for school staff? The meals pair the timeless appeal of ground beef with "generous' amounts of vegetables that young people might not otherwise consume.

Some of the new recipes are already on menus at K-12 test schools in several states and are being shared with school foodservice professionals across the country.

You can read more of this story as well as find a link to versions of these recipes you can cook at home by clicking here.

 

Choice Boxed Beef Cutout Sets New All-Time High Record

Ed Czerwien, USDA Market News, Amarillo, Texas, files this report for boxed beef trade ending April 27, 2013:

The daily spot Choice box beef cutout ended last week setting a new all-time record high again at $204.98 which was a $3.30 higher but on very light trade once again with only 780 loads as reported in the daily Cutout.

The Comprehensive Choice cutout, which is the weekly average of all types of sales (including the spot trade, formula trade, and out-front trade, etc,) was at $200.75, which was $4.45 higher than last week.

The total reported Box Beef volume was 6,594 loads which was 652 loads less than last week.   After three weeks in a row over 7,200 loads which was the first time we were close to last year, we have returned to the previous low levels. The formula trade was 3,208 loads for the week which was 281 loads less than last week and about 49% of the total sales.

You can read more or listen to Ed Czerwien's audio report by clicking here.
 

Some Observations from INSIDE the Washington Beltway

On Monday- it was relatively quiet before the storm- and long hours- that will hit the ag community here in Washington today and Wednesday.  We talked to a wide array of Washington lobbyists on Monday afternoon- Mary Kay Thatcher of AFBF, Roger Johnson of NFU, Chuck Connor of NCFA, Jon Doggett of NCGA, Colin Woodall of NCBA- well, you get the idea- and we got the overall view of what these veterans of multiple farm bills were thinking- and I picked up several overall conclusions-

First- the optimism is rampent that we will get a five year farm bill later this year- not another one year extension. Floor time could come in June in both bodies.

Second- even with less money to spend- all of the groups believe that at least a couple of choices are needed within the Commodity Title in order to offer farmers a choice of what will best fit their farming situation.

Third- they all expect the toughest challenge to come on the floor of House- admitting that it is getting harder and harder to move especially the Commodity Title of the bill.

Fourth- after the dry run of 2012- everyone seems to be comfortable with the leadership that is in place for this go round- especially Lucas and Stabenow.

If you wish to follow the Senate Ag Committee on a blow by blow basis- click here for spot within their website where they will have video/audio streaming for the world to see.