Farmland Values Surge Despite Falling Income According to KC Fed Ag Credit Survey 

Tenth District farm income fell in the second quarter and bankers expected a further drop in coming months, according to the Federal Reserve Bank of Kansas City's quarterly Survey of Agricultural Credit Conditions. 

A poor winter wheat harvest in the seven-state District and a decline in wheat prices brought on by strong global production pushed farm income lower. Ongoing weakness in the livestock sector also limited farm income growth as operators continued to endure high feed and forage costs combined with falling cattle prices. 

Despite lower farm income and expectations of additional declines, farmland values surged further during the quarter. Irrigated cropland values jumped 25 percent from a year ago. Nonirrigated cropland values advanced 18 percent from the previous year, a slightly slower pace of growth than in the first quarter. Ranchland values also rose, gaining 14 percent year-over-year. 

Bankers surveyed indicated that expected farm income was not the main factor contributing to the value of farmland. Instead, bankers cited the overall wealth level of the farm sector, supported by several years of strong income, as the primary driver of farmland values. Low interest rates and a lack of alternative investment options were also noted as significant factors, ahead of farm income expectations.

You'll find a link to the full KC Fed survey by clicking here. 

Drought Continues its Retreat in Oklahoma 

According to this morning's release of the U.S. Drought Monitor, 67 percent of the state is now drought-free and 49 percent of the state is without even the "abnormally dry" rating. Associate State Climatologist Gary McManus says the state has not been in that good of shape since June 5, 2012.

McManus says there are still differences between last year and this year because the momentum in 2012 was towards developing drought. The current situation is completely the opposite, with drought on the run across the entire state. So even though only 11 percent of the state was in D2-D3 (Severe-Extreme) drought 14 months ago, the current percentage of 23 percent has a different connotation: more rain generally means less drought.

It has rained somewhere in the state every single day since July 13, and only a lack of rain anywhere on July 12 stopped that streak from going back to July 9. An important by-product of summer-time rains has also given it's aid to the drought blasting--the cooler than normal weather.  

Click here to read more and to see the latest drought and rainfall maps.

Real Cowboys Compete for Bruises, Bragging Rights at OCA Range Round-Up

A year's-worth of bragging rights are up for grabs during the upcoming 29th Annual Oklahoma Cattlemen's Association Range Round-Up. The two-night event gets underway Friday, August 23rd, at the State Fairgrounds Arena.

"It's not a traditional rodeo," said Oklahoma Cattlemen's Association Executive Director Michael Kelsey. " If folks are used to going to that traditional rodeo, then this is going to be a little bit of a change for them because these types of events are closer to the working ranch events. It's exciting." (Kelsey will appear with me on this Saturday's "In the Field" segment on News 9 about 6:40 Saturday morning.)

The competition is comprised of six events depicting day-to-day ranching jobs. The events include saddle bronc riding, team sorting, wild cow milking, team branding, team penning, and the wild horse race.

Twelve teams from historic Oklahoma ranches will square off in head-to-head competition. The contestants compete for the coveted "Top Hand," "Top Horse," and "Tough Hand' awards.

Click here to listen to my interview with Michael Kelsey or to read more.
 

Heath Sanders Named Canola Field Specialist with GPCA

Jeff Scott, President of the Great Plains Canola Association, today announced the appointment of Heath Sanders of Yukon, Okla., as Canola Field Specialist for the organization.

"We are very fortunate to have an individual of Heath's caliber who will be providing critically needed, hands on expertise to both new and veteran canola growers in the Great Plains region." Scott said. "He has a wealth of knowledge and experience with canola having worked previously in other segments of the industry. Heath was instrumental in helping establish the Oklahoma State University canola program and he has spent the last three years working as an oilseed agronomist on the agribusiness side of the industry. These experiences will be invaluable in helping GPCA meet its goal of expanding canola acreage in the Great Plains region."

Sanders says that during his previous work experiences with canola, he forged strong relationships with different segments of the industry. He said, "The southern Great Plains region has quickly become the second largest canola producing area in the US. I look forward to working with others in further expanding the industry here."

You can read the full article by clicking here.

 

Markets Shrug at Latest WASDE Report, Kim Anderson Says

There have been several trading days since the WASDE report came out on Monday, and Oklahoma State University Small Grain Marketing Specialist Kim Anderson says in his preview to this weekend's SUNUP show that the reaction in the markets was rather "ho hum."

"I don't think there were any surprises in the report. You've got record world wheat production at 25.9 billion bushels. You've got a record U.S. corn crop that was less than the market expected at 13.76 billion bushels. Corn ending stocks were 1,480,000,000 bushels, slightly less than expectations. And wheat ending stocks for next year were projected to be 551,000,000 bushels which was relatively below.

 "You look at what's happened in the world on those reports over the last couple of months, I think they've all been positive pricewise, maybe a little negative for corn, but not much. Definitely positive for wheat."

Anderson said the trade since the WASDE report was released tends to indicate the numbers were as traders expected them to be. 

You can click here for more of Kim Anderson's SUNUP preview and you'll also find a rundown of this week's show.

American, Missouri FBs Bringing the Heat on Farm Bill

The American Farm Bureau Federation and Missouri Farm Bureau, along with Sen. Roy Blunt and Rep. Vicky Hartzler teamed up at a news conference during the Missouri State Fair to put the heat on Congress to pass legislation important to agriculture.

The farm leaders and policy makers met at Missouri Farm Bureau's State Fair building during Legislators' Day at the Missouri State Fair. In addition to members of the news media, several hundred farmers and ranchers packed the building for the event. They waved specially designed "Bring The Heat" cardboard fans from the crowd.

AFBF farm policy specialist Mary Kay Thatcher joined the farm leaders and lawmakers to bring attention to the organization's August recess grassroots campaign-"Bring the Heat." While the Missouri event focused on the farm bill, the other campaign components are ag labor reform and passage of waterways improvement legislation.

Thatcher urged Congress to pass a five-year farm bill instead of another extension when they return to Washington, D.C., after Labor Day. She asked farmers and ranchers to tell members of Congress to move quickly toward passage of the bill that affects both consumers and the agricultural community before the bill expires at the end of September.

Click here to read more and to find a link to a video with more comments by Mary Kay Thatcher.