Ethanol Protects Against Repeat of Devastating Effects of 1973 Oil Embargo 

Bob Dinneen, President and CEO of the Renewable Fuels Association (RFA), wrote on the E-Xchange blog:

The gas lines of 1973 are iconic images in America's collective memory. October 16th marks the 40th anniversary of the oil embargo imposed by the Organization of Arab Petroleum Exporting Countries (OAPEC) as punishment for America's support of Israel during the Yom Kippur War.

To be exact, on that date, the Organization of Petroleum Exporting Countries (OPEC) decided to raise the price of oil by 70 percent a barrel and cut production over time in 5 percent increments until they were satisfied that their political policies were understood and respected.

U.S. energy independence is at the heart of this country's economic and national security. The modern industry was born from the energy crisis of 1973 and officially launched by energy legislation signed into law by President Jimmy Carter. The spirit and intent of that law to establish a domestic, renewable fuel alternative to foreign oil has been supported by Democratic and Republican Presidents ever since. Ethanol has the proven ability to not only displace foreign oil and stretch our existing domestic oil supply; it has proven to lower the price per gallon of gasoline, replace lead and other toxins, reduce green house gas emissions all while stimulating economic development and job creation here in the United States.

You can read more of Bob Dinneen's editorial by clicking here.

 

Corn Prices are Falling- and It's Not Just Harvest Pressure

Corn prices continue the long retreat from the peak of September 2012, declining to the lowest level since late August 2010. The most recent price weakness reflects both supply and demand considerations.

On the supply side, ongoing reports of yields that exceed expectations in many areas suggest that the next USDA forecast of the U.S. average yield will be at least equal and perhaps exceed the September forecast of 155.3 bushels. There is still some uncertainty about the magnitude of harvested acreage that will not be cleared up, at least partially, until the USDA releases the next Crop Production report. Even so, it appears that production will be large enough to result in a sizable build-up in stocks by the end of the current marketing year.

On the demand side, the partial shutdown of federal government activities leaves a void in the usual flow of weekly data including export sales, export inspections, livestock slaughter, and broiler chick placements. The U.S. Energy Information Administration has also discontinued weekly estimates of ethanol production, imports, and stocks. The primary news on the demand side has been the leaked report of an apparent EPA proposal to reduce the magnitude of biofuels mandates, including renewable (ethanol) mandates, under the RFS beginning in calendar year 2014.  

To read more of this analysis, please click here.

Enhancing Beef Demand Must be Industry's Priority, Tom Field Says

The fortunes of all operators at every step of the beef industry chain ultimately rest with consumer demand for beef. And a University of Nebraska agribusiness specialist spoke on sustaining that demand, even amidst high retail beef prices, at the recent Beef Stocker Field Day at Kansas State University. Tom Field points out that maintaining the trust of beef consumers must continue to be a priority for the cattle industry...and that rests with good stewardship through the beef sector.

"We have to proved them a product that they can feel good about, that they know there was a person of integrity and experience who's standing behind that product, who gave great thought to the process that was used from production all the way to processing."

The encouraging thing, says Field, is that despite the economic recession in recent years, consumer interest in purchasing beef has remained resilient despite the fears of many inside the industry that consumers might switch to chicken.

Tom joins me on the latest Beef Buzz.  Click here to listen in or to read more of this story.

 

AFBF Praises Farm Bill Conferees for Getting to This Point- Offers Wish List of What They Want in Conference Report

Congressional leaders' moving forward on negotiations to resolve differences between the Senate and House versions of the 2013 farm bill is a commendable step but much more remains to be done, according to the American Farm Bureau Federation.

Overall, both the Senate and House bills provide an adequate food and farm safety net for consumers and farmers, built around options that are consistent with AFBF policy, AFBF President Bob Stallman noted in a letter to conferees detailing Farm Bureau's views on an array of issues related to the legislation.

"Farm Bureau's two overarching concerns related to the Senate-House conference on the farm bill are ensuring that permanent law is not repealed and a complete, unified bill continues," said Stallman.

"For some time, the threat of reinstatement of the long-outdated policies of the 1938 and 1949 acts has served as strong motivation for Congress to enact new farm bills," Stallman said. "Repealing those acts and making the 2013 farm bill commodity title permanent law could make it difficult in the future to generate sufficient political pressure to adjust the commodity safety net provisions should conditions in production agriculture change." 

Click here to read more of this story.  

Knowing Hay Quality Affects Supplementation Strategy, Derrell Peel Says

Glenn Selk, Oklahoma State University Emeritus Extension Animal Scientist, writes in the latest Cow-Calf Newsletter:

Cattle producers in many areas of Oklahoma have been fortunate this summer to receive timely rains. Many big round bales of hay have been stored for winter feeding. Meeting the supplemental protein needs for the cows and replacement heifers consuming that forage must be done properly and economically. Protein is a vital nutrient for the ruminant because protein is necessary for the multiplication of, and the feed digestion by the microbes in the rumen. The microbial population in the rumen of cows is largely responsible for digesting cellulose in standing or harvested forages.

Higher quality forages are more readily digested in the rumen and have higher rate of passage through the digestive tract of the cow than do lower quality roughages. Therefore the cow can consume more of the high quality forage on a daily basis and receives more total digestible nutrients (TDN) from each pound of feed consumed. If adequate protein is available to cows consuming lower quality roughages, then the rate of passage and the digestibility is improved compared to cows that are inadequately supplemented while consuming the same low quality forage. 

Click here for more details from Glenn Selk.

 

This N That: South Dakota Help, Big Iron,  and Rainfall Goes North of Three Inches

We have found a website that you may want to check out that is offering help to South Dakota ranchers- it has a link to the initial South Dakota Ranchers Relief Fund- but these folks from Montana are also challenging cattle producers to donate a bred heifer to be given to  South Dakota ranchers who have lost a lot or most or in some cases all of their beef cattle herds in the October 4th Blizzard.  Check out this Help for South Dakota website by clicking here. 

The guy's name that has gotten the ball rolling on this is Ty Linger- and he's got ranchers from about eight states helping to get this effort off the ground. 

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It's Wednesday- and that means it's almost closing time for a bunch of items on the Big Iron equipment auction website.  This week- there are featured sellers from Oakwood and Seiling this week- 331 items to sell and you can learn more by clicking here.  

You can also find out more about how the Big Iron process works by talking with Mike Wolfe- call him at 580-320-2718.

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Rainfall amounts were heaviest in the south central and south eastern parts of Oklahoma this week- at least a half dozen Mesonet stations have topped three inches in rainfall this week.  Click here for the live Mesonet map that shows rain going back over a three day period.