Sep 16, 2014
Home| Tools| Events| Blogs| Discussions Sign UpLogin

USFR Weekly Recap - October 23-24, 2010

November 2, 2010

THIS WEEK ON U.S. FARM REPORT

EPISODE #1941

OCTOBER 23-24, 2010

JOHN’S OPEN: HELLO AND WELCOME TO U.S. FARM REPORT, I'M JOHN PHIPPS. YOU WOULD THINK THAT SINCE WE HAVE BEEN USING THE WORD "GLOBAL" IN EVERY OTHER SENTENCE FOR THE LAST FEW YEARS, WE'D BE MORE AWARE OF DEVELOPMENTS AROUND THE WORLD. I'M NOT SO SURE. FOR EXAMPLE, WE CONTINUE TO BE SURPRISED BY EXPORT DEMAND. THIS WEEK IT WAS CHINA AGAIN IN THE SOY MARKET. IT MAY BE A GENERATIONAL THING, AS MANY OF US HAVE SPENT A CAREER WHERE EXPORTS WERE A MUCH SMALLER FACTOR IN MARKET FORCES. NO LONGER. AND TO MAKE IT MORE CHALLENGING, WE ARE DISCOVERING OUR UNDERSTANDING OF FOREIGN CUSTOMERS IS OUTDATED AT BEST. ONE PROBLEM WITH BEING A REALLY BIG PLAYER ON THE WORLD SCENE MAY BE WE SPEND TOO MUCH TIME READING ABOUT OURSELVES. TIME NOW FOR THE HEADLINES.....HERE'S AL PELL

LAND VALUES: COULD U.S. FARMLAND BE THE NEXT ECONOMIC BUBBLE AT RISK FOR BURSTING? A LEADING BANKING REGULATOR SAYS IT'S NOT OUT OF THE QUESTION. IN A REPORT FROM REUTERS NEWS SERVICE, FDIC CHAIR SHEILA BAIR, SAID IT'S IMPORTANT TO MONITOR U.S. FARMLAND VALUES FOR SIGNS OF INSTABILITY LIKE THE PRICE BUBBLES IN THE HOUSING AND STOCK MARKETS. AS WE'VE BEEN REPORTING FARMLAND VALUES REMAIN HIGH, WHILE COMMERCIAL AND RESIDENTIAL REAL ESTATE PRICES HAVE FALLEN SHARPLY. DESPITE THE STRENGTH FARMLAND VALUATIONS, BAIR SAYS THOSE "POSITIVE FUNDAMENTALS" COULD CHANGE. BAIR SAYS THE HEALTH OF OVER 1,500 FARM BANKS WOULD BE THREATENED IF THE "POSITIVE FUNDAMENTALS" IN THE BOOMING AGRICULTURAL SECTOR SUDDENLY REVERSED.

DAIRY PRODUCTION: MILK PRODUCTION CONTINUES TO CLIMB ACROSS THE COUNTRY, EVEN THOUGH THE HERD IS SHRINKING. USDA REPORTS THAT MILK PRODUCTION CLIMBED 3.3% IN SEPTEMBER. THAT'S ON TOP OF THE TWO POINT GAIN IN AUGUST. THROUGH THE FIRST THREE QUARTERS OF 2010, MILK PRODUCTION IS RUNNING TWO BILLION POUNDS AHEAD OF THE SAME PERIOD LAST YEAR... A JUMP OF 1.5%. AND WHILE PRODUCTION INCREASES, THE HERD CONTINUES TO DWINDLE.

JAPAN BEEF: ONCE THE BIGGEST BUYER OF U.S. BEEF, JAPAN APPEARS TO BE - ONCE AGAIN - ANALYZING THE SAFETY OF MEAT FROM CATTLE OLDER THAN 20 MONTHS. THE U.S. BEEF INDUSTRY HAS BEEN PUSHING ITS ASIAN PARTNER TO NORMALIZE TRADE BY ALLOWING MEAT FROM ANIMALS THAT ARE 30 MONTHS OR OLDER. ACCORDING TO BLOOMBERG, JAPAN OFFICIALS ARE NOW COLLECTING DATA ON RISK ASSESSMENT. IN ORDER FOR IMPORTS OF OLDER CATTLE TO RESUME, JAPAN'S FOOD SAFETY COMMISSION MUST RULE THAT ANY CHANGE IN POLICY WON'T INCREASE HUMAN HEALTH RISKS. JAPAN BANNED AMERICAN BEEF AFTER THE BSE OUTBREAK IN 2003. THAT BAN WAS RELAXED IN 2005. BUT IT STILL LIMITED IMPORTS TO CATTLED AGED 20 MONTHS OR YOUNGER.

MARKETING RALLY: A REMINDER NOW ABOUT "MARKETING RALLY 2010" COMING THIS DECEMBER JUST OUTSIDE CHICAGO. THIS SECOND ANNUAL EVENT WILL BRING TOGETHER SIXTEEN OF THE BEST MARKETING MINDS IN AGRICULTURE - INCLUDING MANY OF THE ANALYSTS YOU SEE RIGHT HERE ON U.S. FARM REPORT. I'LL BE THERE AS WELL, HOSTING ALONGSIDE PRO FARMER EDITOR CHIP FLORY. THE EVENT IS SET FOR DECEMBER 1ST AND 2ND AT THE PHEASANT RUN RESORT IN ST. CHARLES, ILLINOIS. FOR THE FULL AGENDA AND REGISTRATION DETAILS, HEAD ONLINE TO WWW.MARKETINGRALLY.COM .

ROUNDTABLE: BRYAN DOHERTY OF STEWART PETERSON AND JUSTIN KELLY OF EHEDGER.

JOHN’S WORLD: THIS CAMPAIGN SEASON HAS FEATURED MANY INTENSE DISCUSSIONS ABOUT OUR LARGE AND GROWING FEDERAL DEFICIT. ON THE FACE OF IT, THE MAIN PURPOSE HAS SEEMED TO BE ASSESSING BLAME, BUT THE ANSWER THAT HAS BEEN ALMOST IGNORED IS THE TRICKY PART - CUTTING OUR FEDERAL BUDGET. IN FACT, GIVEN THAT EVEN THE MOST VEHEMENT DEFICIT HAWKS HAVE EXEMPTED AS MUCH AS 80% OF THE BUDGET AS UNTOUCHABLE, IT IS HARD TO SEE WHERE ANY SIZABLE SAVING WILL BE FOUND. WE MIGHT WANT TO LOOK UP FROM OUR ARGUING TO WATCH WHAT THE CONSERVATIVE COALITION GOVERNMENT IN GREAT BRITAIN IS DOING. RECENTLY THEY ANNOUNCED BUDGET CUTS OF BREATHTAKING DEPTH AND SCOPE FOR NEARLY EVERY GOVERNMENT DEPARTMENT. JUST TO GIVE YOU AN IDEA, SUPPORT FOR UNIVERSITIES WAS REDUCED BY 80%. EVEN DEFENCE SPENDING WAS CUT 8%. I COULD GO ON, BUT ONE KEY COST-SAVING TECHNIQUE THEY ARE EMPLOYING IS MEANS-TESTING. BASICALLY IF YOU MAKE OVER $100,000, YOU WON'T QUALIFY FOR MANY FORMER GOVERNMENT PAYMENTS. THERE IS A REAL RISK THESE DEEP CUTBACKS WILL PLUNGE THE UK BACK INTO RECESSION, BUT THEIR EXPERIMENT WITH AUSTERITY WILL PROVE TO BE AN EXAMPLE ONE WAY OR ANOTHER FOR GOVERNMENTS AROUND THE GLOBE. IF THEY MANAGE TO AVOID THE WORST, I THINK WE COULD SEE MORE MEANS-TESTING DEPLOYED HERE AS WELL. FOR THE AG BUDGET THE SAVINGS COULD BE ENORMOUS SINCE MUCH OF OUR FARM PAYMENTS GO TO LARGE FARMERS. LET US KNOW WHAT YOU THINK.... SEND EMAILS TO INFO@USFARMREPORT.COM OR CALL AND LEAVE US A VOICE MAIL.

2ND HALF:

JOHN’S OPEN: HELLO AND WELCOME TO U.S. FARM REPORT, I'M JOHN PHIPPS. THE ONGOING DROUGHT IN THE SOUTHEAST AND SOUTHERN MIDWEST IS GETTING WIDER ATTENTION IN THE GENERAL MEDIA. THE NOTABLE LACK OF HURRICANES AND THE FICKLE NATURE OF RAINFALL DURING LA NINA EVENTS HAVE COMBINED WITH A VERY WARM SUMMER AND FALL TO PARCH A LARGE AREA OF THE U.S. MORE OMINOUSLY, THERE ARE FEW PREDICTIONS FOR RELIEF IN THE IMMEDIATE FUTURE. I THINK IT IS SAFE TO SAY WE'LL BE TALKING ABOUT THIS FOR SOME TIME.  DROUGHT AFFECTS HOW FARMERS THINK, AND WILL CERTAINLY SHOW UP IN MARKET ACTION AS WELL. IN THIS PARTICULAR INSTANCE, THE MOST PERVERSE ASPECT IS IT FOLLOWS ALMOST ON THE HEELS OF EXCESSIVELY WET WEATHER LAST SPRING. LET'S GET STARTED WITH THE HEADLINES AND AL PELL....

READ MORE
Previous 1 2 Next

See Comments

RELATED TOPICS: USFR Recap

 
Log In or Sign Up to comment

COMMENTS

No comments have been posted



Name:

Comments:

Receive the latest news, information and commentary customized for you. Sign up to receive the AgWeb Daily eNewsletter today!.

 
 
Enter Zip Code below to view live local results:
bayer
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions