Chinese Buy Largest Hog Producer in the US- Smithfield Foods 

Smithfield Foods, the largest U.S. pork producer, and Shuanghui International today announced the Chinese meat processing enterprise offered to buy Smithfield Foods and acquire the company's debt.

According to the announcement, the companies entered into a definitive merger agreement that values Smithfield at approximately $7.1 billion. Under the terms of the agreement, Shuanghui will acquire all of the outstanding shares of Smithfield for $34.00 per share in cash.

The transaction is expected to close in the second half of 2013. The Committee on Foreign Investment in the United States (CFIUS), an inter-agency committee authorized to review transactions that could result in control of a U.S. business by a foreign person, first must approve the merger.

Shuanghui International is the majority shareholder of Henan Shuanghui Investment & Development Co., which is China's largest meat processing enterprise and China's largest publicly traded meat products company as measured by market capitalization.

"This is a great transaction for all Smithfield stakeholders, as well as for American farmers and U.S. agriculture," said C. Larry Pope, president and chief executive officer of Smithfield, a vertically integrated pork processor and hog producer with 46,000 employees.

"We do not anticipate any changes in how we do business operationally in the United States and throughout the world," Pope continued. "We will become part of an enterprise that shares our belief in global opportunities and our commitment to the highest standards of product safety and quality."

Click here to read more.  

Agriculture Secretary Tom Vilsack announced yesterday his office had been notified by the World Organization for Animal Health (OIE) that it was upgrading the United States' risk classification for bovine spongiform encephalopathy (BSE) to "negligible risk."  Vilsack and National Cattlemen's Beef Association President-Elect Bob McCan both welcomed the decision as good news.

"I am very pleased with OIE's decision to grant the United States negligible risk status for BSE," Vilsack said.  "This is a significant achievement that has been many years in the making for the United States, American beef producers and businesses, and federal and state partners who work together to maintain a system of interlocking safeguards against BSE that protect our public and animal health.  This decision demonstrates OIE's belief that both our surveillance for, and safeguards against, BSE are strong. U.S. beef and beef products are of the highest quality, wholesome and produced to the highest safety standards in the world." (You'll find more from Tom Vilsack by clicking here.)

USMEF President and CEO Philip Seng alos welcomed the decision, saying, "This decision by the OIE should clear away any remaining concerns that some countries have about the risk associated with importing beef and beef products from the United States. We think the decision announced by the OIE today should provide a number of beef importing countries with a reason to reevaluate their requirements for beef imports from the United States."  (Click here to read the full USMEF statement.)

Conservation Stewardship Program Applications Due by June 14

The Natural Resources Conservation Service's Conservation Stewardship Program will provide about $175 million in funding for up to 12.6 million additional acres enrollment this year.

Although applications are accepted all year, farmers, ranchers and forestland owners interested in CSP should submit applications by June 14 to their local NRCS office to ensure they are considered for this year's funding. The deadline was extended from May 31.

The voluntary program allows producers to go the extra mile in conserving natural resources while also maintaining or increasing the productivity of their operations.

"CSP is different than our other financial assistance programs," said NRCS Acting Chief Jason Weller. "It offers payments to producers who maintain a high level of conservation on their land and agree to adopt higher levels of stewardship. It's about conservation activities on the entire operation, focusing on multiple resource concerns."

You'll find more information on the program by clicking here. 

Oklahoma Cattlemen's Association Announces 23rd Annual Summer Ranch Tour

The 23rd Annual Oklahoma Cattlemen's Association's (OCA) Summer Ranch Tour is scheduled for June 23-25, 2013. The tour will encompass parts of Frontier Country and the southern edge of Green Country in east central Oklahoma. This should be an exceptionally scenic tour through an area with a deep history and great cattle.

The tour stops include: The K Bar W Ranch, McLoud, Okla.; Jeffries Red Angus, Checotah, Okla.; Dismukes Ranch, Checotah, Okla.; Loftin Cattle Company, Tahlequah, Okla.; Ground Zero Farms, Westville, Okla.; Brashear's Angus & Concrete Feedbunks, Kansas, Okla.; Cunningham Quarter Horses, Rose, Okla.; Sycamore Springs Ranch, Locust Grove, Okla.; Three Forks Ranch, Okay, Okla.; Chandler Cattle Company, Haskell, Okla.; C.V. Ledbetter and Son, Morris, Okla.; and Jamison Ranch, Beggs, Okla.

Participants can attend all or parts of the tour. A detailed schedule, registration form and more information can be found at www.okcattlemen.org or by calling the OCA office at 405-235-4391.  

USDA Investigates Discovery of Unapproved GMO Wheat in Oregon Field

The USDA is investigating the discovery of glyphosate-resistant wheat found in an Oregon farmer's field.  Michael Firko, Acting Director of APHIS Biotechnology Regulatory Services, said yesterday the USDA is "very serious" about uncovering how widespread the problem is and how it happened.

USDA scientists confirmed the wheat found in Oregon is the same variety as one field tested by Monsanto from 1998 to 2005.  Monsanto withdrew its request to have the Roundup-ready variety approved for widespread use in the U.S. when other countries such as Japan, Canada balked at the prospect of importing genetically-modified wheat.

No genetically-modified strains of wheat are currently approved for use in the United States.

The USDA has revealed neither the name nor the location of the farmer who discovered the Roundup-resistant wheat in his field.  Firko said the farmer planted winter wheat in the fall of 2011 and harvested it in 2012.  After leaving the field fallow, he sprayed volunteer wheat in the field with glyphosate in preparation for planting this spring.  He then sent the surviving plants to Oregon State University for evaluation.  The USDA was notified of the university's findings on May 3rd.

Wheat producers' organizations fear trade could be jeopardized if foreign countries which ban the importation of genetically-modified crops believe the problem to be widespread.

In a statement released yesterday, U.S. Wheat and the National Association of Wheat Growers said, "Nothing is more important than the trust we've earned with our customers at home and around the world by providing a reliable supply of high-quality wheat. As industry leaders, we will cooperate with authorities in the United States and international markets to understand the facts surrounding this incident and help minimize its impact." (Read more of their statement by clicking here.)

Nigerian Trade Team Surveys U.S. HRW Wheat Crop

Nine representatives from the top milling and food companies in Nigeria will travel to four states to survey the new wheat crop from June 2 to 12 as part of an annual trade team visit. On average, Nigeria is the second largest buyer of U.S. wheat.

For a firsthand look at this year's hard red winter (HRW) and hard white (HW) crops, the team will meet with university researchers and tour grain and wheat foods facilities in Oklahoma, Colorado, Nebraska and Kansas. Trade team members will also talk with wheat farmers in the field, including a stop at the farm of USW Vice Chairman Dan Hughes in Venango, NE.

"Trade teams bring together both the beginning and end of the grain chain," said Gerald Theus, assistant regional director for the U.S. Wheat Associates (USW) Sub-Sahara African Office in Cape Town, South Africa. "Visits like this one allow our Nigerian customers to make a personal connection with U.S. wheat farmers - who consistently produce the high quality wheat Nigeria's industry needs." 

Click here to read more of this story. 

This N That- Red Rock Tops Five Inch Rainfall in Past 48 Hours- and a Superior Livestock Auction Reminder for Friday

We have posted a couple of weather graphics for you to check out this Thursday morning- one is rainfall totals from the past 48 hours- showing north central Oklahoma has gotten a lot of rain with Red Rock topping five inches of rainfall- and a substantial group of mesonet stations have also checked in with one, two and three inches of rain as well. What you can also see is that the driest areas of the state- the southwestern corner that includes Altus has gotten little to no rain- and that is also the case in the Dust Bowl like Oklahoma Panhandle.

The other graphic we have posted at the link below is the prediction of more rainfall and possible severe weather later today- after two PM- and unfortunately for western counties- including the southwest corner and the Panhandle- they have been left outside of the expected storm development areas again.  Click here to check out both graphics as found on our website- OKlahomaFarmReport.Com.

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This Friday (tomorrow) is the next regular every other week auction for Jim Odle and the folks at Superior Livestock Auction- a total of 24,200 head of cattle will be offered this week- the sale to be seen online or on RFD-TV starting at 8 AM central time.  Click here for the complete rundown of sale numbers and links on over to the catalog for Superior's May 31st sale- if you would prefer to give them a call with any questions you may have- give them a shout at 800-422-2117.