Lower Farm Loan Rates Help Sustain Lending According to KC Fed Ag Finance Databook 

Further declines in interest rates on farm loans at commercial banks helped sustain farm lending during the third quarter, according to the Federal Reserve System's Agricultural Finance Databook.

The average effective interest rate on both real estate and non-real estate farm loans edged down between the May and August Survey of Terms of Banking Lending to Farmers. In contrast, a rise in interest rates on U.S. Treasury securities in June placed upward pressure on interest rates commercial banks charge for nonfarm loans. However, heated competition among lenders, a strong farm economy and solid loan repayment rates contributed to lower interest rates on farm loans during the third quarter.

Agricultural loan volumes at commercial banks returned to the previous year's levels during the third quarter after rising in the spring. According to national survey data collected during the first full week of August, both real estate and non-real estate farm loan volumes held relatively steady when compared to last year. Rising farmland values supported farm real estate financing while high production costs bolstered demand for farm operation loans. Agricultural banks reported improved profits and stronger capital positions at midyear. The return on assets at agricultural banks during the second quarter exceeded year-ago levels while the returns at other small banks were little changed.

Click here to read more and to find a link to the latest databook.

USMEF Reports Beef Exports Up, Pork Stable in August 

A strong performance by the top three international markets kept U.S. beef exports on an upward path in August while sales to China and several up-and-coming markets helped pork exports stay nearly even with last year's record-setting pace, according to statistics released by the USDA and compiled by the U.S. Meat Export Federation (USMEF).

Beef sales to Japan, Mexico and Canada all posted solid gains in August along with a resurgent Taiwan market as overall U.S. beef exports grew 5 percent in volume and 16 percent in value compared to year-ago levels, reaching 105,544 metric tons valued at $563.3 million. For the first eight months of 2012, beef exports are up 1 percent in volume and 10 percent in value to 767,017 metric tons valued at $4.01 billion.

Pork exports were bolstered by the largest sales to the China/Hong Kong region since February, as well as strong performances by the Central/South America and ASEAN regions. Total exports for August were down a fraction in volume (174,281 metric tons) but up 1 percent in value ($501.1 million), while 2013 totals were down 4.6 percent in volume (1,405,078 metric tons) and 4.5 percent in value ($3.94 billion).

You can read more of this story on our website by clicking here.

EWG Demands Crop Insurance Reform and Stronger Environmental Protections in Farm Bill

The Environmental Working Group (EWG) sent a letter to members of the 2013 Farm Bill conference committee today demanding a farm bill that reforms crop insurance and strengthens environmental protections.

EWG's recommendations to conferees include:

--Relinking conservation compliance with crop insurance subsidies

--Supporting crop insurance means testing and transparency

--Eliminating coverage options that shift additional risk to taxpayers

--Reforming or removing new government subsidy programs

--Upholding strong measures in the conservation title

--Supporting nutrition assistance and nutrition education

--Supporting local and organic food programs

--Rejecting harmful provisions and riders 

Click here to read their full letter.
 

Farm Bureau's John Collison Talks Grassroots Resoluitions Development Process  

A measure supporting more research on effectively using the state's water supply was among more than 50 resolutions passed by the Oklahoma Farm Bureau state resolutions committee Oct. 22-23, in Norman. The resolutions meeting is just one part of Oklahoma Farm Bureau's grassroots policy development process, where members from each county help determine priority issues for upcoming legislative sessions.

"We boiled them down from over 500 resolutions around the state to a more manageable number that we will now take to our convention and to the full body to be voted on," said John Collison, vice president of governmental affairs with the Oklahoma Farm Bureau.    

One of the biggest issues to come out of the policy forum has been water. Some parts of the state are still suffering severely due to the drought and Oklahoma Farm Bureau members want elected officials to continue working on that issue.

You can read more of this story or listen to my interview with John by clicking here.  

Data Trickling In Continues to Show Strong Cattle Markets, Derrell Peel Says

During the federal government shutdown, there was no USDA livestock data available. Now that the shutdown is over, the data is starting to trickle in says OSU Extension Livestock Economist Derrell Peel.

"We're confirming that cattle markets and beef markets, generally, continued to strengthen through the month of October. The boxed beef price in this last week or so has advanced pretty close to that $2 a pound mark. We briefly went above that last spring. That was an all-time record. We're going to move back above that for the balance of the year."

He says prices for cattle across the board are on their way up all the way from wheat pasture calves to feeder cattle. Demand is simply outstripping supply at this point.

"The wheat pasture is in pretty good shape. I think we will have some opportunities for wheat pasture that are better than we've had in recent years. I think the demand is coming on for the cattle now that it's pretty certain that we're going to have some winter grazing. And, so, the opportunities are there for producers to take advantage of that and put some weight on these cattle."

Derrell joins me on the latest Beef Buzz.  Click here to listen in or to read more. 

NCGA Action Team Brings CommonGround Volunteers Together for World Class Discussion on GMOs

CommonGround volunteers and staff from state corn and soy associations gathered in St. Louis for the CommonGround Biotechnology Communications Workshop which was graciously sponsored by the National Corn Growers Association's Trade Policy and Biotechnology Action Team. The day-long event, held at the Donald Danforth Plant Science Center, featured internationally respected experts on biotechnology and a tour of the independent research facility.

"The energy and desire to learn that these women brought to the conference was inspiring," said NCGA Chairwoman Pam Johnson, who also attended. "They took full advantage of the opportunity to delve more deeply into the science behind common myths about biotech and GMOs, both actively listening and discussing these topics. Farmers must greatly intensify their efforts to help the public understand the benefits and importance of biotechnology in agriculture. I feel confident that these women will make the most of their interaction with these esteemed experts as they continue their conversations with consumers about food and farming."

Click here for more. 

This N That- Record Cattle Prices, Kris Black Cream of the Crop Happens Today and Bacon and Bourbon Happens This Friday   

In feedlot country, the Texas Cattle Feeders Association saw cash cattle trade happen this past Wednesday- and it was at record levels.

Cash cattle in Texas and Kansas brought mostly $132 per hundredweight (cwt), which was up $3 from last week, feedlot sources said. That price surpassed the previous record high of $130 for the week ending March 2, 2012.  

From a Reuters report- "Everything that was supposed to happen fundamentally came together for the cattle market," said U.S. Commodities analyst Don Roose, who also cited rising wholesale beef values. 

The TCFA report for Texas, Oklahoma and New Mexico feedlots shows 9.879 cash cattle sold, with steers at $132.11 and heifers at $132.04.

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A quick reminder about what is always an excellent seedstock auction- the 9th Annual Kris Black Cream of the Crop Bull Sale is set for TODAY- at the ranch near Crawford, Oklahoma.   

More than a hundred high powered bulls are being featured- and while you are always welcome to attend in person- you can also participate via video as Superior Livestock is handling the sale via satellite and also via the internet.   

Click here for more details or contact our friend Christy Collins at 516-366-0734.

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Last call for the fabulous Bacon and Bourbon Dinner planned for this coming Friday night- November first- 7 p.m., at Gaillardia Country Club in NW Oklahoma City.

Roy Lee Lindsay says they have just a few tickets left  for this gourmet feast- the menu includes (by course number):

1st. Bacon Dashi, Miataki Mushrooms

Jim Beam Black

2nd. Crispy Pig ear, Grilled Pear, Baby Rocket Lettuce, warm Bacon Vinaigrette

Basil Hayden

3rd. Pancetta, Pea Risotto, Sea Scallop, Candied Bacon

Maker's 46

4th. Bacon and Belly Crepinette, Roasted Potato, Sauce Bourguignonne

Knob Creek

5th. Bacon and Maple Doughnut, with Dr.Pepper Bacon Glaze