Jul 13, 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 AND TO MAKE IT MORE CHALLENGING, WE ARE DISCOVERING OUR UNDERSTANDING OF FOREIGN CUSTOMERS IS OUTDATED AT BEST.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....

HILLANDALE EGGS: THANK YOU JOHN. THE FDA IS ALLOWING ONE OF TWO IOWA COMPANIES INVOLVED IN THE NATIONWIDE EGG RECALL OVER SALMONELLA TO BEGIN SHIPPING EGGS AGAIN. HILLANDALE FARMS CAN RE-START SHIPPING EGGS FROM THREE OF ITS EGG PRODUCING HEN HOUSES. THE FDA SAYS FOUR OTHER HILLANDALE HOUSES MUST UNDERGO ADDITIONAL TESTING. BUT, WRIGHT COUNTY EGGS, THE OTHER COMPANY AT THE CENTER OF THE RECALL, IS STILL PROHIBITED FROM SHIPPING EGGS. AN INVESTIGATION BY THE FDA SHOWED NUMEROUS PUBLIC VIOLATIONS AT THE IOWA FACILITIES. THIS WEEK, THE FDA SENT A LETTER TO THE COMPANY STRESSING THAT IF THEY DID NOT CORRECT VIOLATIONS, THE AGENCY WOULD BE ABLE TO TAKE ACTION. THE LETTER WARNED WRIGHT COUNTY EGG THAT - QUOTING NOW - "FAILURE TO TAKE PROMPT CORRECTIVE ACTION MAY RESULT IN REGULATORY ACTION. . .THESE ACTIONS INCLUDE, BUT ARE NOT LIMITED TO, SEIZURE AND/OR INJUNCTION."

NATIVE AMERICAN SETTLEMENT: A DISCRIMINATION CASE MORE THAN DECADE IN THE MAKING IS GETTING RESOLUTION. ON TUESDAY THE OBAMA ADMINISTRATION ANNOUNCED IT WOULD SETTLE A DISCRIMINATION LAWSUIT FILED BY NATIVE AMERICAN FARMERS AND RANCHERS. THE CLASS ACTION SUIT SAYS NATIVE AMERICANS WERE DISCRIMINATED AGAINST FOR DECADES BY THE USDA AND ITS LOAN PROGRAMS. FIRST FILED IN 1999, OFFICIALS HAVE AGREED TO SETTLE FOR 760 MILLION DOLLARS. THAT'S IT FOR NEWS...TIME NOW FOR THE NATIONAL FORECAST FROM METEOROLOGIST CINDI CLAWSON.

ULTIMATE FARM QUEST: WITH AN EARLY HARVEST, MANY FARMERS ARE GETTING A HEAD-START ON FALL TILLAGE. BUT THIS ADDITIONAL TIME IS ALLOWING THEM TO ANALYZE THAT TILLAGE. IN OUR ULTIMATE FARM QUEST UPDATE, WE HEAD TO SOUTHERN MICHIGAN. LEON KNIRK WENT INTO HIS JUST-TILLED FIELDS WITH FIELD AGRONOMIST MISSY BAUER. IN THE PAST, HE'D JUST STICK THE CHISEL PLOW IN THE GROUND AND GO. BUT THIS YEAR IS DIFFERENT.

HEARTLAND: MARK AND LYNN DAUGHTRY RUN THEIR PORK OPERATION IN THE CAPE FEAR WATERSHED OF NORTH CAROLINA. THE FARM HAS A COMBINATION OF WETLANDS, HIGH GROUND AND CROP GROUND...AND THEY GO ABOVE AND BEYOND TO PROTECT AND PRESERVE THEIR PROPERTY. AS A RESULT, THE FAMILY EARNED A 2010 ENVIRONMENTAL STEWARD AWARD FROM THE PORK CHECK-OFF AND NATIONAL HOG FARMER MAGAZINE. CINDI CUNNINGHAM SHOWS US HOW THE DAUGHTRY'S BALANCE NATURE AND MODERN AGRICULTURE. TO LEARN MORE ABOUT ALL FOUR WINNERS OF THE ENVIRONMENTAL STEWARD AWARDS, HEAD ONLINE TO WWW.PORK.ORG .

BAXTER BLACK: WHAT DO YOU DO WHEN GAGGLES OF GEESE DESCEND ON YOUR FARM? BAXTER BLACK JOINS US NOW WITH ONE MAN'S ANSWER...BAXTER JOINS US AGAIN IN TWO WEEKS TO OUTLINE THE "ANATOMY OF A WRECK"...UNTIL THEN, CHECK OUT HIS WORK ONLINE AT WWW.BAXTERBLACK.COM . WHEN WE COME BACK, A FLORIDA COLLECTOR SHOWS OFF HIS RESTORED JOHN DEERE. TRACTOR TALES IS NEXT FOLLOWED BY OUR COUNTRY CHURCH SALUTE...PLEASE STAY WITH US.

TRACTOR TALES: A LITTLE PAINT AND ELBOW GREASE CAN GO A LONG WAY WHEN IT COMES TO RESTORING CLASSIC IRON. DURING A TRIP TO FLORIDA, WE FOUND A COLLECTOR WHO DID JUST THAT WITH HIS OLD JOHN DEERE. DEERE BUILT THE LA MODEL FROM 1941 THROUGH 1946.

CHURCH SALUTE: TODAY'S FIRST COUNTRY CHURCH SALUTE GOES TO ST. ANTHONY CHURCH IN HARBOR BEACH, MICHIGAN. THEY MARKED THEIR CENTENNIAL ANNIVERSARY THIS SUMMER. IN HONOR OF THE EVENT AN EXTENSIVE RESTORATION EFFORT WAS COMPLETED BY THE PARISH. THE EFFORT WAS LED BY A CONSTRUCTION COMPANY HEADED BY A PARISH MEMBER, DAN BOOMS, WHOSE GRANDFATHER HELPED BUILD THE CHURCH 100 YEARS AGO. OUR CONGRATULATIONS AND THANKS TO RICHARD GUSA FOR SUBMITTING HIS CHURCH. OUR SECOND CHURCH IS WARE'S GROVE EVANGELICAL LUTHERAN CHURCH IN BUTLER, ILLINOIS. THEY WILL CELEBRATE 150 YEARS OF SERVICE NEXT WEEKEND. AFTER MEETING IN THE LOCAL SCHOOLHOUSE, THE CHURCH WAS BUILT IN 1862. OVER THE NEXT CENTURY AND A HALF THE CONGREGATION ADDED TO AND IMPROVED THEIR CHURCH HOME. ONE VITAL MINISTRY IS COMMUNITY AID, WHICH WAS ORGANIZED IN 1927 AND CONTINUES ITS WORK TODAY AS AN OUTREACH AND COMMUNITY IMPROVEMENT EFFORT. OUR THANKS TO MARILYN MACCANELLI, A DESCENDANT OF FOUNDER JUSTIN WARE, FOR THE INFORMATION AND PICTURE. AS ALWAYS WE WANT TO LEARN ABOUT YOUR HOME CHURCH AS WELL... SALUTES CAN BE SENT TO THE ADDRESS ON THE SCREEN. STAY WITH US - THE MAILBAG IS NEXT.

MAILBAG: TIME FOR THIS WEEK'S FEEDBACK IN THE FARM REPORT MAILBAG...CONNIE PALS WRITES ABOUT HOW WE COVER ORGANIC AGRICULTURE: "I AM ONE OF MANY PEOPLE WHO STRIVE TO SUPPORT NON GENETICALLY MODIFIED AGRICULTURE. I WOULD LIKE TO SEE MORE REPORTING ON ORGANIC FARMING. IS THIS SOMETHING YOU CAN ADD TO YOUR PROGRAM?" CONNIE, THANKS FOR WRITING. YOU MENTION TWO SEPARATE, BUT RELATED ASPECTS OF FARMING. ORGANIC PRODUCTION IS CURRENTLY ALL NON-GMO, BUT NOT ALL NON-GMO PRODUCTION IS ORGANIC. WE DO COVER BOTH TYPES OF FARMING, BUT WE TEND TO FOCUS MORE ON HOW PRODUCERS MEET A SPECIFIC MARKET RATHER THAN METHODOLOGY. RECALL TOO, THAT ONLY A FEW CROPS, NOTABLY CORN AND SOYBEANS ARE INTENSELY GMO. FOR WHATEVER REASON, THERE SEEMS TO BE A MARKET PENETRATION LIMIT FOR ORGANIC PRODUCTION OF ABOUT 15%. AFTER DECADES OF INTENSE PROMOTION OF ORGANIC PRODUCTS IN EUROPE FOR EXAMPLE, MARKET SHARE IS STAGNANT. AT THE SAME TIME, THE WORRIES ABOUT GMO PRODUCTS ARE FADING, AS PREDICTED HEALTH AND ENVIRONMENTAL PROBLEMS FAIL TO EMERGE. ALSO, IT IS DIFFICULT TO DEMONSTRATE ANY ADVANTAGE TO NON-GMO PRODUCTION FOR CONSUMERS. MORE INTERESTING IS THE DEBATE IN ORGANIC CIRCLES ABOUT RECONSIDERING GMO TECHNIQUES SINCE THEY LOWER THE NEED FOR PESTICIDES AND BENEFIT YIELDS - TWO ISSUES THAT CHALLENGE ORGANIC PRODUCERS. OUR COVERAGE WILL FOLLOW CONSUMER TRENDS. CURRENTLY THE DEMAND FOR BOTH NON-GMO AND ORGANIC PRODUCTS IS AT BEST STABLE, AND THEY APPEAR TO BE SOLUTIONS LOOKING FOR A PROBLEM. AS ALWAYS, WE WANT TO HEAR FROM YOU, SEND COMMENTS TO INFO@USFARMREPORT.COM OR LEAVE US A VOICE MAIL AT 800-792-4329. FOR AL AND CINDI, I'M JOHN PHIPPS SAYING THANK YOU FOR WATCHING U.S. FARM REPORT. BE SURE TO JOIN US AGAIN NEXT WEEK, WE'LL BE WORKING TO DO EVEN BETTER.

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 Dairy Today's eUpdate today!

 

MARKETS

CROPSLIVESTOCKFINANCEENERGYMETALS
Market Data provided by Barchart.com
 
 
 
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