NCGA Calls on All Members and Allies to Defend Ethanol 

Citing severe economic and environmental ramifications, the National Corn Growers Association today called on all its members and friends to submit comments to the U.S. Environmental Protection Agency, opposing its proposal to slash the amount of corn ethanol required in the Renewable Fuel Standard.

"It's critical that our growers and all those concerned about the rural economy stand up for corn ethanol and urge the EPA to keep the volume obligations as they are now written in the law," said NCGA President Martin Barbre. "The impacts of the EPA's proposal, if enacted, will ripple throughout communities where America's family farmers live, shop and do business. Rural America cannot afford this and neither can the environment."

For 2014, the EPA has proposed a 1.4 billion gallon reduction in how much corn ethanol will be required under the RFS, the federal law that requires the blending of domestic, renewable, cleaner-burning corn ethanol into the nation's fuel supply. This will reduce already-low corn prices and negatively affect planting decisions in 2014. It also will reduce the environmental benefits of using more domestic, renewable biofuels.

Click here for more information and to respond to the EPA, which is accepting public comments until January 28.  

Hope Hangs On By a Thread as Farm Bill Negotiators to Meet Wednesday 

Washington ag policy watchers will be staking out the meeting room on Wednesday of key farm bill negotiators as at least the "big four" farm bill conferees will meet face to face to assess where the discussions are- and to consider the options in pulling together a Commodity Title that will allow final decisions to be made on several other issues that perhaps will line up if the Commodity Title is resolved.


While the Senate is not in session this week, Senators Debbie Stabenow and Thad Cochran will be returning to Washington to meet with their counterparts in the House- House Ag Committee Chair Frank Lucas and his ranking member Collin Peterson. Stabenow was quoted by the Washington Post as saying that outstanding issues yet to be finalized include not just the Commodity Title and the Nutrition Title- but also Dairy, Conservation Compliance and Crop Insurance.


The hope remains that a farm bill deal can still be achieved by next week- opening the door to votes in the House and Senate before 2013 ends. 

USDA's Tom Vilsack continues to beat the drum for the Conferees to broker a deal- he is teaming up in a news conference with Ducks Unlimited CEO Dale Hall today  to highlight the need for a new Food, Farm and Jobs Bill to continue record conservation efforts achieved in recent years by producers and landowners in partnership with USDA.  

The news conference will be at USDA at 11:00 AM central time this morning.  

Complex Factors Signal Beef Demand Challenges Ahead, Peel Says 

Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist writes in the latest Cow-Calf Newsletter:

Beef production is falling at the end of 2013 and is expected to fall sharply in the coming year. This reduction in beef supply will add significant additional pressure to increase wholesale and retail beef prices. This leads to much concern in the beef industry that beef will "price itself out of the market". These concerns are understandable and there is indeed much uncertainty about beef markets for the next couple of years. However, it is important to remember how demand works and keep in mind the many factors involved in demand. While there is concern that consumers will buy less beef with higher prices, it is important to keep in mind that there will be less beef on the market and thus a need to ration beef. The economic principle of demand is based on the concept that when a smaller quantity is available, higher prices will ration beef to those consumers who are most willing and able to purchase beef. In general, the idea that higher prices will restrict consumption of beef is precisely what will be needed to balance supply and demand in the coming months.

However, beef demand is very complex. Beef is not a single market but rather consists of many distinct but related markets. At higher prices, there will be much substitution between beef products and also with other protein sources. The unprecedented beef market situation makes it very difficult to know exactly how consumers will adjust the mix of beef products as well as total quantity of beef consumption at record price levels. Quality will be of paramount importance in beef markets at record prices. Especially for middle meats, the ability to support premium beef prices will depend on consistently providing a premium product. The recent increase in Choice grading percentage, due partially to reduced use of beta agonists, may be particularly timely in improving the quality mix of a limited beef supply.

Click here for more of Derrell Peel's analysis.

Phillips Selected as Secretariat of U.S. Biotech Crops Alliance

The founding organizations of a broad-based group known as the U.S. Biotech Crops Alliance (USBCA) announced that Dr. Michael J. Phillips has been selected as its first secretariat to spearhead collaborative efforts to improve the environment for technology innovation and the market for U.S. crops produced through modern biotechnology.

Established under a memorandum of understanding signed in 2012, the USBCA already has developed and is working to implement consensus positions on key policy issues designed to improve the introduction, stewardship, domestic and international regulatory policy, and distribution in U.S. and export markets of commodities and processed products containing or derived from modern biotechnology.                                                                      

In his capacity as secretariat, Phillips will be the focal point of the group's efforts to further advance the reach, work and wide range of activities being pursued under the expanding broad-based national initiative that currently consists of 11 influential national organizations representing U.S. biotechnology providers; seed, grain and oilseed producers; grain handlers, feed manufacturers, grain processors and millers; exporters; and other end-users.   The secretariat also will serve a key role in helping develop and implement consensus positions on specific policy issues.   

You can read more of this story by clicking here.

Texoma Cattlemen's Conference Examines Risks, Opportunities

Cattle producers across the country face new challenges as the cattle market reaches new heights. Although advantageous to sellers, as purchasers the market creates consternation. Additionally, even though feed and fertilizer are less expensive than in years past, most agricultural inputs are on the rise. Cattlemen are perhaps operating with greater exposure to associated risks; but higher risks usually mean there is potential for higher rewards. So where are the opportunities? What are the risks we need to manage, and how do we do that successfully?

On Thursday, Feb. 27, 2014, the Noble Foundation will host the Texoma Cattlemen's Conference at the Ardmore Convention Center. The theme for the event is "Rising Risks - Expanding Opportunities." The conference will provide insight to regional beef producers on how to successfully manage their operations with today's markets. I will moderate the event starting at 9 a.m.  

Among the presenters will be Dan Childs, senior ag economist with the Noble Foundation, Ted McCollum, professor and extension beef cattle specialist with Texas AgriLife Extension, and Derrell Peel, professor of ag economics and marketing at Oklahoma State University.  

Beef Checkoff Focuses on the Millennials

While the base tagline is the same, "Beef, it's what's for dinner," the method of delivering that message to the consumer that most needs that information has changed a great deal since the early days of the establishment of the Beef Checkoff and adequate money to purchase a National TV schedule. Earlier this calendar year, the contractors that work with the Cattlemen's Beef Board began to look for the best agency partner that can take beef checkoff promotional dollars and effectively reach the very large generational market- the Millennials.

The Millennials are a generation that are "online" and can best be reached using a mix of some traditional media along with a large dose of social media. According to the Beef Board, this generation is incredibly important to the future of beef demand in the US.

There is a concern that millennials, who are just entering child-bearing years, currently are reducing the amount of beef that they serve to their kids. This could have negative long-term repercussions if the beef industry does not respond with solid, science-based information about beef that would make this generation more inclined to increase consumption of it.

Click here to read the full story on our website.

 

Really Cold to Our North By This Weekend- Plenty Cold Around Here 

Bitterly cold temperatures have broken out of the arctic and are already moving towards Oklahoma. Temps could be twenty below zero across a good bit of Montana and the Dakotas by Saturday morning in the northern part of the US. The southern great plains- including Oklahoma and Texas- will have temperatures not approaching zero- but will be down into the single digits if this model holds true. 

Maps that show this blast of cold air can be seen by clicking here.

We also have the latest overview of what the end of the week looks like thru the words of Alan Crone, Meteorologist with the News on 6- comments from his blog are included in the story linked in the paragraph above.

In brief- we will go below freezing Wednesday night and won't get above freezing again until perhaps Monday afternoon.  Moisture in the form of snow, freezing rain, sleet and ice will come in and coat a good bit of Oklahoma- the ice event is most likely in the southern third of the state.

Alan says of moisture amounts- "The exact amount of accumulating precipitation is problematic due to the varying transitions of precip types during the early stages of the event. A general idea of 2 to 4 inches of wintry precip seems a possibility along the I-44 corridor through Sunday morning. Some icing in the form of .10 to .18 of an inch unfortunately is a possibility across the southeastern third of the area, generally south of the I-40 corridor and east of I-35."

Brrrrrrrrrrrrrrrrr!