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The momentum to get a new five year farm law to replace the first expired and now extended 2008 Farm Law continued to roll on Wednesday- as the House Ag Committee matched the Senate Ag Committee's work on reporting a Farm Bill proposal out to their full legislative body. The Federal Agriculture Reform and Risk Management Act passed the House Ag Committee by a 36 to 10 margin on Wednesday after the Senate Ag Committee passed their version of the measure out on Tuesday by a 15 to 5 vote. 

The Chairman of the House Ag Committee, Oklahoma Congressman Frank Lucas, offered this statement after a very long day in the Chairman's seat- "I am proud of the Committee's effort to advance a farm bill with significant savings and reforms. We achieve nearly $40 billion in savings by eliminating outdated government programs and reforming others. No other committee in Congress is voluntarily cutting money, in a bipartisan way, from its jurisdiction to reduce the size and scope of the federal government. I appreciate the efforts of my colleagues and the bipartisan nature in which this legislation was written and approved. I look forward to debating the bill on the House floor this summer."

Chairman Lucas faced 92 amendments on Tuesday evening ahead of the mark up- but the majority and minority staff worked late and produced a "manager's amendment" that was called an "en bloc" amendment that folded about one fourth of the amendments into one package that Chairman Lucas and Ranking Member Colin Peterson agreed on- that was debated and passed Wednesday morning by a voice vote.


After that, it was one amendment at a time- and the process ended about 11 pm eastern time with the final vote.


Of note- the dairy provisions championed by Colin Peterson of Minnesota were defended by Chairman Lucas and stayed in the bill after being challenged by a former Chairman of the Committee, Bob Goodlatte.

Goodlatte offered a sugar reform package and then withdrew the amendment.

The reductions of twenty billion dollars over ten years to the nutrition programs was kept in the measure- after Democrats failed to roll back and eliminate the cuts proposed by the Chairman and Ranking Member's Mark. 

You can read what we have written about several of the amendments as well as listen to our take on the Farm
Bill process on Wednesday- we have produced another edition of Farm Bill Follies now on our website- click here to take a listen.  We have the full statements from both Chairman Lucas as well as his ranking member Colin Peterson- click here for that.

A couple of farm groups with PR night owls offered some quick reaction- click here for the AFBF statement from President Bob Stallman and click here for a reaction from the American Soybean Association.

More will be coming today as the nine to five crowd arrive at work.

A Billion Dollar Expansion Planned by Koch Fertilizer in Enid- Urea Production to Increase

Koch Nitrogen Company, LLC is moving forward with plans to build a new urea plant at its Enid, Oklahoma facility. In addition, the company is revamping existing production processes at the facility. Combined, the investments are estimated at $1 billion and are expected to increase fertilizer production at the facility by more than 1 million tons per year. The improvements to existing processes will be implemented in stages from 2014-2016. Construction on the new plant, which will include additional storage and enhanced loading facilities, is expected to begin in the fourth quarter of 2014. The plant is projected to be operational in 2016.

"As crop production increases throughout North America, we are seeing an increasing demand for fertilizer from our customers," said Steve Packebush, president of Koch Fertilizer, LLC. "With this additional production, we'll be in a much better position to meet that demand. We look forward to breaking ground on this project, while continuing to evaluate enhancements at our four other North American facilities."


Click here to read more about this significant expansion of the Koch facilities that sit just east of Enid.
 

Farm Income Growth Slows According to KC Fed Agricultural Credit Survey

Rising production costs and falling crop prices curbed farm income growth in the first quarter of 2013, according to the Federal Reserve Bank of Kansas City's quarterly Survey of Agricultural Credit Conditions.

High feed and forage costs continued to stifle profitability in the livestock sector, where losses were compounded by declines in livestock prices and the persistence of intense drought. Crop production expenses, particularly for seed and fertilizer, climbed higher as planting season approached. Crop prices were expected to fall throughout the growing season and wheat harvest, potentially restoring livestock and ethanol sector profits but restraining farm income from crop sales.

Land values in the seven-state Tenth Federal Reserve District climbed further in the first quarter. Cropland values rose 20 percent and ranchland values rose 14 percent year-over-year, a modest slowdown compared with the first quarter of 2012. Rising land values strengthened the balance sheet of farmers who own land but boosted debt levels for others financing farmland purchases. 

Click here for a link to the full KC Fed survey.

 

Ashley McDonald Hopes Congress Permanently Solves SPCC Rule Threat Facing Farmers

As the Water Resources Development Act makes its way through the Senate, there is one amendment to it that would be good for agriculture according to Ashley McDonald, deputy environmental counsel for the National Cattlemen's Beef Association. The amendment has to do with exempting farmers from the Spill Convention Control and Countermeasure rule.

"We're talking about fuel spills on farms and how the EPA regulates who has to have a plan and what those plans have to contain. So we have had a rule out there for many, many years now that the implementation date has been delayed and delayed and pushed back for farms. It's a very expensive rule if you are wrapped up under it, especially if you have to have your spill plan certified by a professional engineer.    

McDonald said the rule went into effect on May 10th of this year, but that Senator Jim Inhofe was able to get an amendment attached to the continuing resolution to fund the government that prevents the EPA from enforcing the SPCC rule against farms through September.

"That buys a little time for Congress to come in and actually craft a solution to this issue," she said.

Ashley joins me on the latest Beef Buzz.  Click here to listen or to read more about the progress on this issue.

 

Stabenow Guardedly Optimistic About Chances for Farm Bill Passage in Senate 

Debbie Stabenow, Chair of the Senate Agriculture Committee, spoke today in front of the National Association of Farm Broadcasters gathered in Washington, D.C. She spoke about the passage of the bill out of her committee, her hopes for its quick passage on the floor. She then took questions from reporters and explained how she sees the bill progressing through the Senate. 

"The most significant thing I can say is that farmers need a five-year farm bill. They need economic certainty. Sixteen million people work in this country because of agriculture. This is the biggest jobs bill we will pass in any Congress. So, it's time to get it done and it's my hope between the farm bill, which we are going to immediately take up on the floor, and then we will be taking up immigration, that this will really be the positive 'one-two punch' for producers."

She said the bill produced by the Senate Agriculture Committee takes into account the interests of all farmer, regardless of the region the live in or the crop that they are growing.

"I think we have really produced what I think my friends down the hall should just take as a commodity title because it is a market-oriented approach. We do recognize that rice and peanuts specifically do not have access to crop insurance. And, so, on the one hand we eliminate subsidies.   We have payment reforms and changes that are important for taxpayers. We focus on crop insurance, but, particularly for our Southern growers that don't have access to crop insurance, we do give them an option that works for them. And whether it's yield loss through the ARC program or price concerns through our new AMP program, we've put I place, what I believe, are enough tools to support all of agriculture."

You can listen to more from Debbie Stabenow or read more by clicking here.

NCBA Calls Failure of Clean Water Act Amendment Passage in the Senate 'Tragedy'

National Cattlemen's Beef Association (NCBA) Deputy Environmental Counsel Ashley McDonald issued the following statement on the non-passage of Amendment 868 to the Water Resources Development Act (WRDA) which would have prevented the Environmental Protection Agency (EPA) and the Army Corps of Engineers (Corps) from finalizing the Clean Water Act (CWA) jurisdictional guidance document:

"Unfortunately the Senate failed to pass an important piece of legislation, introduced by Sen. John Barrasso (R-Wyo.), which would have stopped an overreaching jurisdictional guidance by the EPA and Corps which attempts to federalize all waters. That guidance is at the Office of Management and Budget (OMB) and could come out in final form any day.

"It is a tragedy that those who voted against this amendment refuse to recognize the devastating effect this guidance will have on farmers and ranchers across the country. If finalized, it would be the biggest federal land-grab in history, requiring cattlemen to apply for permits to conduct everyday activity such as cleaning out a ditch."

Click here to read more.

This N That- Superior Auction Set for Friday as is the May USDA Cattle on Feed Report  

Our next Superior Video Livestock Auction will be up and running on RFD TV as well as on the Internet at 8 AM central time tomorrow morning- Friday May 17, 2013.

A total of 31,100 head will be offered- including:

1,000 HOLSTEINS
9,800 YEARLING STEERS - 7,800 YEARLING HEIFERS
5,500 WEANED CALVES - 5,800 CALVES ON COWS
1,200 REPLACEMENT HEIFERS, BRED HEIFERS, BRED COWS & COW/CALF PAIRS

Click here for the Superior website where you can see details of what will be sold and when- we have links to the Superior site, the catalog of this week's sale as well as the Click to Bid site where the auction will be seen live on the world wide web- you can also call 1-800-422-2117 for details as well.

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Our next Cattle on Feed report will be released on Friday afternoon at 2 PM central time- Rich Nelson with Allendale offers what he sees USDA doing in this latest feedlot count-

"April Placements are expected to be 14.7% higher than last year. Feedlot margins remain negative. Cash cattle prices averaged $128 in April compared with March's $127. April placements appear large as they are compared with the low April 2012 placement (which was 14.8% less than 2011). Cattle placed in April will be marketed from September through November.

"Allendale anticipates a Marketing total 2.2% higher than April of 2012. This is made after a 4.6% increase due to a calendar adjustment, one more weekday in 2013 vs. 2012, for this month.

"Total Cattle on Feed as of May 1 will be 3.5% smaller than last year. This would be larger than the April 1 survey which showed 5.0% fewer cattle. Market ready cattle numbers are tight now and will transition to adequate by late summer."