USFR Weekly Recap - October 17-18, 2009

10/19/2009

THIS WEEK ON U.S. FARM REPORT
Episode #1888
October 17-18, 2009
 
John’s Hello: IT HAS BEEN INTERESTING TO SEE THE MARKETS REACT TO WORSENING DELAYS IN THE 2009 CORN, SOY AND COTTON HARVESTS. I SUSPECT TRADERS AND USERS HAVE BEEN LULLED INTO A FALSE SENSE OF SECURITY BY STUNNING HARVESTING PROGRESS ROUTINELY ACCOMPLISHED WITH ALL THOSE GIANT MACHINES. BUT THIS YEAR PRESENTS A DIFFERENT CHALLENGE. THIS CROP IS WET - AND WET CROPS CLOG THE GRAIN CHANNELS UNLIKE PREVIOUS LOW MOISTURE HARVESTS. A GIANT COMBINE SITTING FULL AT THE END OF THE FIELD DOESN'T DO MUCH TO RECOVER THE PACE. WE ARE RUNNING OUT OF DAYS BEFORE WINTER AS WELL, AND EVERY DAY OF RAIN PUTS MORE CROP AT RISK OF HARVEST LOSS OR SPOILAGE.
 
Dairy COOL: THE COUNTRY OF ORIGIN LABELING LAW WENT INTO EFFECT LAST YEAR. BUT NOW THERE'S A PUSH TO EXPAND IT... TO INCLUDE DAIRY PRODUCTS. AS THE LAW IS WRITTEN RIGHT NOW, IT REQUIRES LABELING TO SHOW THE COUNTRY WHERE MEAT, PRODUCE AND NUTS COME FROM. THIS WEEK, DEMOCRATIC SENATORS FROM OHIO, WISCONSIN AND MINNESOTA INTRODUCED A BILL TO EXPAND THE MANDATORY LABELING TO DAIRY PRODUCTS. THE MEASURE WOULD INCLUDE MILK, CHEESE, YOGURT, ICE CREAM AND BUTTER.
  
JBS: J-B-S-SWIFT GOT THE GREEN LIGHT FROM TWO KEY GOVERNMENT REGULATORS TO MOVE FORWARD WITH ITS PURCHASE OF PILGRIM'S PRIDE. THE JUSTICE DEPARTMENT AND THE U-S FEDERAL TRADE COMMISSION BOTH APROVED THE AQUISITION. BRAZIL-BASED J-B-S WANTS TO BUY 64-PERCENT OF PILGRIM'S PRIDE. THE TEXAS-BASED POULTRY PROCESSOR FILED FOR BANKRUPTCY LAST YEAR.
 
Direct Payments: THE AG DEPARTMENT SAYS IT WILL NOT ISSUE FINAL 2008 COUNTER-CYCLICAL PAYMENTS TO SOME FARMERS ENROLLED IN THE DIRECT AND COUNTER-CYCLICAL PROGRAM. SPECIFICALLY, PRICES FOR PEANUTS, CORN, GRAIN SORGHUM, SOYBEANS AND OATS DID NOT DROP LOW ENOUGH TO TRIGGER THE PROGRAM. HOWEVER, AG DEPARTMENT WILL ISSUE PAYMENTS FOR UPLAND COTTON. THE FINAL COUNTER-CYCLICAL PAYMENT RATE FOR UPLAND COTTON IS TWELVE-58 A POUND - THE STATUTORY MAXIMUM LEVEL.  PRODUCERS WHO RECEIVED A PARTIAL PAYMENT WILL RECEIVE THE BALANCE PAYMENT OF SEVEN-55 CENTS PER POUND.
 
Cotton Delays: WEATHER DELAYS ARE IMPACTING FIELD WORK NOT ONLY IN THE MIDWEST AND THE PLAINS, BUT ALSO IN THE SOUTH.  IN PARTICULAR, COTTON HARVEST IS WAY BEHIND. AS OF MONDAY, ONLY 12-PERCENT OF THE NATION'S COTTON HAD BEEN CUT. NORMALLY, A THIRD IS HARVESTED. BUT THE PROBLEM IS EVEN WORSE ON A STATE-BY-STATE LEVEL. FOR INSTANCE, ONLY TWO PERCENT OF MISSISSIPPI COTTON AND FIVE PERCENT OF ARKANSAS COTTON IS OUT OF THE FIELD. ABOUT A QUARTER OF THE LOUISIANA CROP IS FINISHED, BUT USUALLY IT'S APPROACHING 70-PERCENT. LOUISIANA FARMERS PLANTED THE SMALLEST COTTON CROP IN THE STATE'S RECORDED HISTORY. WHILE THE WEATHER IS DISCOURAGING FOR FARMERS, HE SAYS BETTER COTTON PRICES MAY PREVENT ACREAGE FROM DROPPING EVEN FURTHER.
 
Roundtable: Mike North from First Capitol Ag and Brian Dougherty from Stewart Peterson
 
John’s World: WE HAVE ENOUGH GOING ON BOTH IN AGRICULTURE AND THE U-S CONGRESS TO OCCUPY OUR ATTENTION, BUT VERY QUIETLY OUR ALLIES IN EUROPE ARE PLODDING TOWARD A SIGNIFICANT POLITICAL ACHIEVEMENT.  ITH THE RE-VOTE IN IRELAND PASSING OVERWHELMINGLY, THE TREATY OF LISBON FOR THE EUROPEAN UNION SEEMS DESTINED TO BE ENACTED.  IT CONSTITUTES ANOTHER STEP IN THE UNIFICATION OF WESTERN EUROPE INTO WHAT WILL APPEAR MORE AND MORE LIKE ONE NATION, ESPECIALLY FOR COMMERCE. THE SNAIL'S PACE OF THIS PROCESS IS DECEPTIVE. E-U COUNTRIES HAVE AT LEAST SHOWN THE ABILITY TO COOPERATE IN BUSINESS AND NOW FOREIGN POLICY MATTERS. THE RESULT COULD BE A BIG SURPRISE TO AMERICANS AND ESPECIALLY AMERICAN FARMERS IN THE NEAR FUTURE. WITH THE ADDITION OF COUNTRIES LIKE POLAND AND BULGARIA, THE EU NOW HAS EXPANSION CAPABILITIES FOR ITS AGRICULTURE UNLIKE ANY POSSIBILITY IN MY LIFETIME. HEAVY INVESTMENT FROM WESTERN EUROPEAN FARMERS IN THESE NEW MEMBER NATIONS IS UNDERWAY.   NOW ADD IN A POPULATION 60% GREATER AND A GDP SLIGHTLY LARGER THAN THE U-S AND THE EU IS SOLIDIFYING INTO A FORMIDIBLE TRADING PARTNER AND MARKET. ALREADY WE ARE SEEING THE STRENGTH OF THE EURO REFLECT THIS DEVELOPMENT. FOR U-S FARMERS, THE DAYS OF SIMPLY RELYING ON OUR NATURAL ADVANTAGES OF LAND AND CLIMATE TO MAKE US COMPETITIVE COULD BE NUMBERED. E-U FARMERS HAVE GOT GAME - AND THEY ARE BRINGING IT.
 
USFER-2nd half
 
John’s Hello: THERE AREN'T MANY PARTS OF ANIMAL AGRICULTURE WITH HAPPY PRODUCERS RIGHT NOW, AS INDUSTRY WIDE, LOSS OF EXPORTS AND HIGH FEED COSTS HAVE LANDED A ONE-TWO PUNCH ON OPERATORS.  IN THIS DIFFICULT ATMOSPHERE, IT IS REMARKABLE THAT THE MICHIGAN FARM BUREAU AND OTHER AG REPRESENTATIVES WERE ABLE TO NEGOTIATE A COMPROMISE WITH ANIMAL WELFARE ADVOCATES AND MAKE IT LAW. WE'LL HAVE THE STORY SHORTLY. THE WORST TIME TO REACH A COMPROMISE IF WHEN PEOPLE ARE UNDER STRESS AND POLITICS ARE INVOLVED. IT REQUIRES CONSIDERABLE PATIENCE AND EFFORT TO OVERCOME INCENDIARY RHETORIC TO FIND COMMON GROUND. THE RESULTS USUALLY DON'T TOTALLY PLEASE MANY, BUT GETTING SOMETHING RESOLVED RENEWS OUR FAITH WE CAN TACKLE OTHER TOUGH ISSUES AS WELL.
 
Confined Animal Law: MICHIGAN IS THE LATEST STATE TO IMPOSE TOUGHER REGULATIONS ON THE STATE'S LIVESTOCK PRODUCERS. DEMOCRATIC GOVERNOR JENNIFER GRANHOLM SIGNED LEGISLATION THIS WEEK REQUIRING THAT FARM ANIMALS CONFINED IN SMALL CAGES HAVE ENOUGH ROOM TO TURN AROUND AND FULLY EXTEND THEIR LIMBS.  THE LAW BANS THE USE OF CAGES FOR EGG-LAYING HENS. IT ALSO BANS GESTATION CRATES FOR PREGNANT SOWS.  PRODUCERS MUST INSTITUTE THOSE PRACTICES WITHIN TEN YEARS. THE LEGISLATION ALSO BANS CRATES FOR VEAL PRODUCTION. THAT BAN GOES INTO EFFECT IN THREE YEARS.
 
Ohio animals: NEXT MONTH, OHIO VOTERS WILL BE ASKED TO DECIDE ABOUT AN AMENDMENT TO THE STATE CONSTITUTION THAT WOULD SET STANDARDS FOR LIVESTOCK CARE. VOTING IN FAVOR OF "ISSUE TWO" WOULD CREATE A LIVESTOCK CARE BOARD. ANIMAL ACTIVISTS ARE OPPOSED TO THE MEASURE.   BUT FARM GROUPS SAY IT'S A WAY TO BLOCK ANIMAL RIGHTS GROUPS FROM PUSHING THRU THEIR AGENDA TO BAN CAGES FOR POULTRY AND GESTATION CRATES FOR SOWS.
 
Animal Activism: ANIMAL RIGHT ACTIVISTS ARE GAINING MOMENTUM IN THEIR EFFORT TO LEGISLATE TOUGHER ANIMAL WELFARE STANDARDS, BUT LIVESTOCK GROUPS ARE STARTING TO PUSH BACK.    OFTEN UNDERCOVER VIDEO, LIKE THIS FROM THE HUMANE SOCIETY OF THE U-S, IS USED TO TURN THE PUBLIC AGAINST THE LIVESTOCK INDUSTRY. DAIRY AND BEEF GROUPS ARE TRYING TO GET AHEAD OF THE EMOTIONAL MESSAGES ACTIVISTS USE TO TURN THE PUBLIC AGAINST ANIMAL AGRICULTURE.  LIZ DOORNINK, SPOKESPERSON FOR AMERICAN FARMERS FOR THE ADVANCEMENT OF CONSERVATION AND TECHNOLOGY, SAYS FARMERS ARE FACING AN UPHILL BATTLE BECAUSE ANIMAL RIGHTS GROUPS HAVE BIG BUDGETS BEHIND THEM.  TO TELL THEIR STORY, FARM ORGANIZATIONS ARE STARTING TO USE TOOLS SUCH AS SOCIAL MEDIA TO EDUCATE CONSUMERS ABOUT AGRICULTURE
 
MOVING EQUIPMENT: FOR OUR VIEWERS WHO ARE NOT AROUND FARM EQUIPMENT VERY MUCH, YOU NEED TO REALIZE IT'S A CHALLENGE TO MOVE THOSE LARGE PIECES OF EQUIPMENT FROM THE FARM TO THE FIELD.  WITH THE HARVEST SO LATE THIS YEAR, FARMERS ARE WORKING LONG HOURS TO BRING IN THE CROPS. THAT MEANS THEY MAY BE MOVING THEIR EQUIPMENT WHEN IT'S DARK.  FARMERS ARE REQUIRED TO HAVE SOME BASIC SAFETY MARKINGS ON THEIR EQUIPMENT TO KEEP YOU AND OPERATOR SAFE. ALL FARM EQUIPMENT BUILT AFTER 2003 SHOULD ALREADY MEET MINIMUM REQUIREMENTS FOR MARKINGS -- SUCH AS REFLECTIVE TAPES AND FLASHING LIGHTS. BUT OLDER EQUIPMENT MAY NEED ADDITIONAL MARKINGS ADDED.
 
Spirit of the Heartland: IT GOES AGAINST CONVENTIONAL WISDOM THAT THE DESERT OF THE SOUTHWEST UNITED STATES WOULD BE A PRODUCTIVE PLACE TO RAISE CATTLE. BUT AT THE DUSTY A RANCH IN BENSON, ARIZONA, SHELBY AND BONNIE THWAITS HAVE SHOWN IT CAN BE DONE. IN THIS REPORT FROM THE AMERICAN ANGUS ASSOCIATION, WE SEE HOW THE HUSBAND AND WIFE TEAM HAVE DEVOTED THEIR LIVES TO RAISE QUALITY ANGUS SEEDSTOCK IN A HARSH ENVIRONMENT.
 
Baxter Black: HE'S A COWBOY, A POET, A HUMORIST -- AND NOW BAXTER BLACK IS PART OF U-S FARM REPORT. KNOWN FOR HIS DROLL WHIT AND SIGNATURE MOUSTACHE, BAXTER SHARES HIS AMUSING AND UNIQUE VIEW OF THE MODERN COWBOY. TODAY, WE HEAD TO HIS ARIZONA RANCH TO GET HIS PERSPECTIVE ON, WELL, CUD. WE'LL BE AIRING BAXTER BLACK'S WORK EACH WEEK HERE ON U-S FARM REPORT...AND BE SURE TO CHECK OUT HIS WEBSITE -- BAXTER-BLACK-DOT-COM...WE'LL POST A LINK ON OUR HOME PAGE FOR EASY ACCESS...
 
Tractor Tales: BRUCE BAKER OWNS AN UNUSUAL FARMALL CUB. WE TAKE YOU TO WESTERN OHIO TO SEE THIS MODIFIED CLASSIC IN THIS WEEK'S TRACTOR TALES.
 
Country Church Salute: THE FIRST PRESBYUTERIAN CHURCH OF CAMBRIA, WISCONSIN CELEBRATED THEIR 150TH ANNIVBERSARY LAS MONTH.  TWO YEARS AFTER THE ORIGINAL ORGANIZATION THE FIRST CHURCH WAS COMPLETED, AND IN 1894 THE PRESENT BUILDING WAS DEDICATED. IN 1955 THE CONGREGATION MERGED WITH THE OLIVET WELSH CHURCH. THE PASTOR IS KRISTIN FREDERICH.  PAUL THOMAS SENT US THE INFORMATION. OUR SECOND CHURCH IS ST JOHN'S LUTHERAN CHURCH IN ARLINGTON TOWNSHIP, LIBBY COUNTY NEAR ARLINGTON, MINNESOTA.  STARTING FROM A MISSION CALLED PRAIRIE MOUNT, THE CONGREGATION FIRST MET IN A LOG CHURCH.  MEMBERS CONTRIBUTED 11 POSTS AND 33 RAILS EACH. THE PRESENT CHURCH WAS FINISHED IN 1916 AND A NARTHEX ADDED IN 1978. THE 120 MEMBERS ALSO MARKED THEIR 150TH ANNIVERSARY LAST MONTH. THE PASTOR IS WILLIAM POSTEL. OUR THANKS TO ANTHONY DENO FOR SENDING IN HIS CHURCH.
 
USFR mailbag: TIME NOW FOR OUR WEEKLY LOOK INSIDE THE FARM REPORT MAIL BAG... EVEN THOUGH I AM NOT ALLOWED IN THE KITCHEN WITHOUT ADULT SUPERVISION, I THOUGHT I WOULD TACKLE THIS COOKING QUESTION FROM DEAN HILL OF TALLAHASSEE, FLORIDA: "MY QUESTION IS WHY OR HOW IS IT OUR GROUND BEEF TODAY WHEN COOKED EMITS WATER AS WELL AS A LITTLE OIL, BUT MOSTLY WATER. IS THIS WATER AN INJECTION PROCESS FROM AMERICAN PROCESSORS OR IMPORTS?" FIRST AND MOST IMPORTANT, ALTHOUGH HAMBURGER AND GROUND BEEF CAN CONTAIN SEASONINGS, THEY CANNOT HAVE ADDED WATER, PHOSPHATES, EXTENDERS OR BINDERS BY USDA REGULATION. THE SURPRISING FACT IS HAMBURGER CONTAINS AS MUCH AS 70% WATER, ALTHOUGH THE AVERAGE IS 50%. THIS SEEMS HIGH UNTIL YOUR REMEMBER THE HUMAN BODY IS 75% WATER. THIS WATER IS SIMPLY A PART OF WHAT WE CALL MEAT. THE ACTUAL MUSCLE FIBER COMPROMISES ONLY ABOUT 12% OF THE WEIGHT ON AVERAGE. THE MORE FAT CONTENT, THE HIGHER THE SHRINKAGE AS A RULE, BUT EXCESS SHRINKAGE OR LOSS OF WATER MAY BE CAUSED BY TWO THINGS ACCORDING TO THE COOKING SITES I CHECKED. FIRST, IF MEAT IS FROZEN, THE FORMATION OF ICE CRYSTALS DAMAGES THE PROTEIN FIBERS AND ALLOWS WATER MOLECULES TO ESCAPE - SO TRY PRODUCTS THAT HAVE NOT BEEN FROZEN. SECOND, RAPID COOKING OVER HIGH HEAT ALSO ACCELERATES THE LOSS OF WATER FROM THE MEAT FIBERS, SO TURN DOWN THE HEAT. MY GUESS IS BACKYARD GRILLS ARE THE BIGGEST CULPRITS. ABOVE ALL, REMEMBER TO COOK HAMBURGER THOROUGHLY ALL THE WAY THROUGH AS THE FINAL STEP IN FOOD SAFETY PRECAUTIONS.
 
 

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Agriculture Markets
Futures MO Last Chg
Corn December 391'0 -4'0
Soybeans January 1046'0 7'0
Wheat December 559'6 -2'6
Milk November 14.06 0.00
Feeder Cattle January 92.675 0.850
Live Cattle December 83.950 0.275
Lean Hogs December 57.600 1.625
Cotton December 70.41 0.00

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