USFR Weekly Recap - August 3-4, 2013

August 3, 2013 03:30 AM
 

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THIS WEEK ON U.S. FARM REPORT

EPISODE # 2086

AUGUST 3-4, 2013   

 

 

JOHN’S OPEN:

HELLO AND WELCOME TO U-S FARM REPORT, I'M JOHN PHIPPS. IT WAS A GREAT WEEK IN THE GRAIN MARKETS - FOR USERS, ANYWAY. PRICES CONTINUE TO LOOK FOR A LEVEL THAT WILL ENTICE SOME DEMAND HERE AND ABROAD. BUT STEADILY FALLING PRICES DO NOT ENOURAGE BUYING. AFTER ALL, IT COULD BE EVEN CHEAPER TOMORROW. DEEP IN OUR HEARTS GRAIN PRODUCERS KNOW WE HAVE A HARD ROAD TO REBUILD DEMAND, AND THE ONLY HELP FOR THAT WILL PRICES THAT ENABLE OUR CUSTOMERS TO MAKE MONEY. THAT ROAD COULD BE LONGER AND SLOWER THAN WE THINK, AS IT LOOKS LIKE GLOBAL GROWTH HAS SETTLED INTO A LOW GRIND. WHEN 2% GROWTH LOOKS LIKE AN AMBITIOUS HOPE, YOU KNOW THIS IS NOT YOUR TYPICAL RECOVERY.

HEADLINES:

STOCK IN FERTILIZER MAKERS TUMBLED THIS WEEK ON CONCERNS A RUSSIAN POTASH MAKER COULD FLOOD THE MARKET WITH THE INPUT. AFTER THE RECENT STRING OF CHEMICAL PLANT EXPLOSIONS, LIKE THE ONE IN WEST, TEXAS, HAS THE PRESIDENT'S ATTENTION. PRESIDENT OBAMA ISSUED AN EXECUTIVE ORDER TO THE DEPARTMENTS OF HOMELAND SECURITY, LABOR AND THE E-P-A. HE'S ORDERING THE AGENCIES FOR AN EXTENSIVE REVIEW OF U-S CHEMICAL PLANTS, SPECIFICALLY SAFETY AND SECURITY PROCEDURES, OVER THE NEXT NINE MONTHS. JAPAN HAS LIFTED ITS BAN ON U-S WESTERN WHITE WHEAT. THE COUNTRY HALTED SHIPMENTS AFTER G-M-O WHEAT MYSTERIOUSLY SHOWED-UP IN AN OREGON FIELD. JAPANESE OFFICIALS SAY TESTS SHOWED NO PRESENCE OF THE WHEAT IN SHIPMENTS FROM THE U-S. MEANWHILE, USDA SAYS THEY'VE DETERMINED IT'S MON71-800, A STRAIN DEVELOPED BY MONSANTO. IT'S YET TO BE DETERMINED ON HOW THAT SPECIFIC GENETICALLY ENGINEERED WHEAT VARIETY GOT IN THE FIELD. MEANWHILE, CANADA MAY HAVE ITS OWN PROBLEM WITH UN-APPROVED G-M-O WHEAT. AND CANADA GEESE COULD BE TO BLAME. CANADIAN AG OFFICIALS ARE INVESTIGATING WHETHER GEESE FED ON SOME TEST PLOTS OF OF G-M O WHEAT AT A CANADIAN EXPERIMENTAL FARM. THEY BELIEVE GEESE MAY HAVE GRAZED LAST SUMMER. AND THE GEESE DROPPINGS CONTAINED SEED. GMO WHEAT IS NOT APPROVED FOR COMMERCIAL USE IN CANADA. NEW YORK IS BEING SUED OVER POLICY'S DESIGNED TO HELP GROW THE STATE'S DAIRY INDUSTRY. SEVERAL ENVIRONOMENTAL GROUPS SAY NEW WASTE HANDLING RULES VIOLATE THE CLEAN WATER ACT.

CROP WATCH:

A "NASS" CROP REPORTER FROM WATAUGA COUNTY, NORTH CAROLINA SAYS HAY QUALITY AND SUPPLY WILL BE SIGNFICANTLY LOWER THIS YEAR. ONLY 40-PERCENT OF THE FIRST CUTTING OF HAY IN THAT COUNTY WAS HARVESTED BEFORE JULY FIRST.  AND HAY PRODUCERS IN MACON COUNTY, GEORGIA ARE ALSO HAVING A DIFFICULT TIME WITH HARVEST BECAUSE OF CONSTANT "POP-UP" SHOWERS. CORN SILAGE CHOPPING IS UNDERWAY WHEN FARMERS CAN GET INTO THE FIELDS.

ROUNDTABLE:

AL TAKES OVER TO TALK MARKETS WITH ANDY SHISSLER AND MARK GOLD.

JOHN’S WORLD:

THE DEMOGRAPHERS AT THE UN ARE HIGHLY REGARDED AND USUALLY ACCEPTED AS THE FINAL WORD ON POPULATION PROJECTIONS. SO IT WAS A SHOCK WHEN THEY REPORTED LAST MONTH THAT NEW SURVEYS IN AFRICA HAVE PROMPTED SIGNIFICANT UPWARD REVISIONS. LIKE MANY OTHERS, I HAD WATCHED THE FALLING GLOBAL FERTILITY RATES AND HOPEFULLY BET THAT WE WOULD PEAK GLOBAL POPULATION BOTH SOONER AND LOWER.
ALMOST ALL OTHER FERTILITY RATES ARE FALLING, BUT AFRICA IS BUCKING THE TREND. SO MUCH SO THAT NIGERIA, WHICH IS THE SIZE OF TEXAS, COULD SURPASS THE U-S AS THE THIRD-LARGEST COUNTRY IN THE WORLD BY 2050. MORE ALARMING STILL, AFRICA'S POPULATION COULD QUADRUPLE BY 2100. UNLIKE INDIA AND CHINA, LITTLE RAPID ECONOMIC DEVELOPMENT IS UNDERWAY IN AFRICA. AT THE SAME TIME THE NEED FOR EVEN EXTREMELY LOW WAGE FACTORY WORKERS IS NOT GROWING FAST ENOUGH TO PROVIDE JOBS. AFRICA IS ON TRACK TO BECOME AN EVEN LARGER HUMANITARIAN AND ECONOMIC CHALLENGE THAN EVER. BUT OUTSIDE SOLUTIONS WILL FACE HISTORIC RESISTANCE. THE CULTURE, GEOGRAPHY, AND POLITICS OF AFRICA WILL LIKELY CONFOUND BOTH PRIVATE AND GOVERNMENT EFFORTS TO COPE WITH THESE PROBLEMS. ANSWERS WILL COME, I BELIEVE, SLOWLY AND PAINFULLY FROM AFRICANS THEMSELVES, AND ANY EFFORTS FROM THE DEVELOPED WORLD SHOULD BE DIRECTED TOWARD BOTTOM UP SOLUTIONS. THERE ARE MANY WAYS WE CAN AND SHOULD AID THE PROCESS, BUT THE WORLD SHOULD BE PREPARED FOR A VERY LONG HAUL.

2ND HALF

JOHN’S OPEN:

HELLO AND WELCOME TO U-S FARM REPORT, I'M JOHN PHIPPS. NOTHING LIKE A BRISK AUGUST MORNING TO GET YOUR DAY OFF TO A GOOD START. THIS UNUSUAL SUMMER KEEPS AVOIDING NORMAL IN EVERY WAY IT CAN. AND THE BACK TO BACK COMPARISON WITH THE HEAT AND DROUGHT OF 2012 HAS PROBABLY ERASED OUR MEMORIES OF WHAT AN AVERAGE SEASON LOOKS LIKE. WHILE EXTREMES SEEM TO BE THE ORDER OF THE DAY IN MANY ASPECTS OF OUR LIVES, I THINK WE SELL SHORT OUR ABILITY TO NOT JUST COPE, BUT EVEN ENJOY UNUSUAL CIRCUMSTANCES. IT IS CERTAINLY GOOD FOR US IN THE MEDIA - THERE IS ALWAYS A SURPRISE TO REPORT. BETTER YET, IN THOSE ODD MOMENTS WHEN LIFE IS ACTUALLY BORING, WE NOW ARE MORE LIKELY TO APPRECIATE THE LACK OF EXCITEMENT.

HEADLINES:

THE LATE SPRING COULD IMPACT MORE THAN JUST CROPS THIS FALL, SPECIFICALLY WHEN IT COMES TO DELIVERIES TO LOCAL ELEVATORS. CHINA IS HALTING ALL POULTRY PRODUCTS FROM ARKANSAS AFTER A ISOLOATED CASE OF AVIAN INFLUENZA WAS FOUND IN THE STATE BACK IN JUNE. SO FAR, ALL TESTS OF SHIPMENTS ARE NEGATIVE FOR THE VIRUS. ARKANSAS FARM BUREAU ECONOMIST MATT KING DOESN'T EXPECT CHINA WILL LIFT ITS BAN RIGHT AWAY. HE SAYS CHINA IS A HALF BILLION DOLLAR MARKET FOR AMERICAN POULTRY. ARKANSAS IS THE SECOND LARGEST POULTRY PRODUCING STATE IN THE U-S, RIGHT BEHIND GEORGIA. MEANWHILE, NEW MEXICO BASED VALLEY MEAT COMPANY, WHICH RECENTLY RECEIVED FEDERAL APPROVAL TO OPEN A HORSE PROCESSING FACILITY, IS FACING MORE HURDLES. BLAIR DUNN, THE ATTORNEY REPRESENTING THE COMPANY, TOLD U-S FARM REPORT SOMEONE SET FIRE TO THE FACILITY. INITIAL REPORTS FROM THE SHERIFF'S DEPARTMENT INDICATE ARSON.  DUNN TOLD US IT LOOKS LIKE THEY WERE TRYING TO DESTROY THE REFRIGERATION UNITS, WHICH COULD COST THE COMPANY TENS OF THOUSANDS OF DOLLARS. THE HOUSE LOOKS TO BE GETTING CLOSER TO A VOTE ON A stand-alone NUTRITION BILL.   THURSDAY, SOUTH DAKOTA REPUBLICAN REPRESENTATIVE KRISTI NOEM TOLD A REPORTER THE CURRENT OUTLINE CUTS 40 BILLION DOLLARS FROM THE SNAP PROGRAM OVER 10 YEARS. THAT'S DOUBLE THE AMOUNT THAT WAS VOTED DOWN LAST MONTH. IF A 40 BILLION REDUCTION PASSES IT WILL BE ADDED TO THE FARM ONLY FARM BILL AND SENT TO CONFERENCE WITH THE SENATE. AG COMMITTEE CHAIR FRANK LUCAS SAYS NO MATTER THE NUMBER, IT WILL STILL NEED TO BE WORKED OUT IN CONFERENCE. MINORITY LEADER COLLIN PETERSON SAYS THE 40 BILLION DOLLAR CUT MEANS THE HOUSE HAS NO INTENTION IN GETTING A FARM BILL DONE. NEW YORK IS BEING SUED OVER POLICY'S DESIGNED TO HELP GROW THE STATE'S DAIRY INDUSTRY. SEVERAL ENVIRONOMENTAL GROUPS SAY NEW WASTE HANDLING RULES VIOLATE THE CLEAN WATER ACT. WEEKS AGO WE WERE TALKING ABOUT RECORD HEAT, BUT THE TABLES HAVE QUICKLY TURNED AND NOW IT'S RECORD COLD. NEWLY COMPILED DATA FROM LAST WEEK SHOWS THE U.S. SET MORE THAN 11-HUNDRED RECORD COLD TEMPERATURES. THE COLD FRONT BLANKETED MUCH OF THE U-S, COVERING FROM THE DAKOTA'S TO ARKANSAS AND NEW ENGLAND TO ARIZONA.

PIVOT ROCK:

THE LAW OF GRAVITY CAN BE DEBATED AT PIVOT ROCK - A NATURALLY-OCCURING, EYE-GRABBING LANDMARK IN THE ARKANSAS OZARKS. A PHOTO BACK-DROP FOR COUNTLESS COUPLES OVER THE DECADES, IT'S NOW FOR SALE. STEVE GRANT FROM AFFILIATE KY-THREE TELLS US HOW IT CAN BE YOURS.

BAXTER BLACK:

THE RELATIONSHIP BETWEEN A FARMER AND HIS WIFE IS ONE OF A DELICATE BALANCE.
BAXTER BLACK GIVES US HIS PERSPECTIVE FROM THE RANCH.

TRACTOR TALES:

AL, WHAT DO YOU HAVE FOR US THIS WEEK IN TRACTOR TALES? JOHN, EVER SEEN AN E-3 CO-OP BEFORE? THIS 1950 CLASSIC LIVES IN SOUTHERN INDIANA AND LEADS A NICE QUIET LIFE OF RETIREMENT, WITH AN OCCASIONAL JOB OR TWO. SCOTT THOMAS TELLS US ALL ABOUT IT.

CHURCH SALUTE:

TODAY'S COUNTRY CHURCH SALUTE GOES TO TRINITY PRESBYTERIAN CHURCH OF MERCER, PENNSYLVANIA. THE CHURCH WAS STARTED IN 1805 WHEN FARMER SAMUEL TAIT LEFT HIS HORSE AND PLOW FOR A CONGREGATION AND PULPIT. THE CHURCH DIVIDED INTO TWO CONGREGATIONS DURING THE CIVIL WAR OVER THE ISSUE OF SLAVERY. BUT THEY REUNITED IN 1928 WHEN ONE OF THE CHURCHES WAS DESTROYED BY FIRE. THE PRESENT CHURCH WAS BUILT IN 1866. CHURCH MEMBER LARRY MOOSE SAYS TRINITY PRESBYTERIAN HAS HAD FIVE NAMES IN FOUR CHURCHES DURING ITS 200 YEAR HISTORY, BUT IT SHARES A SINGLE FAITH AND A VISION OF WORSHIP.

MAILBAG:

TIME NOW FOR OUR WEEKLY LOOK INSIDE THE FARM REPORT MAILBAG. A VIEWER TAKES EXCEPTION TO MY COMMENTS ABOUT THE CONSITUTION LAST WEEK.

 

 

 

 

 

 

 

 

 

As always, we want to hear from you, send comments to mailbag@usfarmreport.com or leave us a voice mail at 800-792-4329.

 

 

 

 

 

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