Sep 23, 2014
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THIS WEEK ON U.S. FARM REPORT

EPISODE # 2079

JUNE 15-16, 2013   

 

JOHN’S OPEN:

HELLO AND WELCOME TO U-S FARM REPORT, I'M JOHN PHIPPS. THE OLDEST MAN IN HISTORY DIED THIS WEEK AT 116. AND TO MY EMBARASSMENT, MY FIRST THOUGHT WAS - "WHOA, THAT GUY SURE WON BIG ON SOCIAL SECURITY". OF COURSE, HE WAS JAPANESE, AS ARE MANY OF THE 50-ODD PEOPLE IN THE WORLD OVER 110, SO IT DIDN'T MATTER. BUT JUST LIKE THE OLDEST WOMAN IN HISTORY WHO DIED A FEW YEARS AGO AT 122, CENTENARIANS ARE THE FASTEST GROWING DEMOGRAPHIC GROUP IN THE WORLD. AND GET THIS, AT AGE ONE HUNDRED, YOU ARE STILL LIKELY TO LIVE ANOTHER TWO YEARS ACCORDING TO ACTUARIAL TABLES. BETTER DIET, MEDICAL ADVANCES, AND MORE PEACE IN THE WORLD MEANS MOST OF US WILL LIVE LONGER THAN WE THINK. AND MORE THAN A FEW OF US, UNFORTUNATELY, WILL LIVE LONGER THAN WE WANT.

HEADLINES:

THANK YOU, JOHN AND HELLO, EVERYONE. USDA RELEASED ITS JUNE GRAIN STOCKS AND SUPPLY AND DEMAND REPORT THIS WEEK. WE'VE HEARD FROM MANY ANALYSTS WHO SAY IT HAD LITTLE VALUE, AS MANY AREAS DIDN'T SEE A LOT OF CHANGE. USDA LEFT DOMESTIC SOYBEAN ESTIMATES UNCHANGED FROM MAY WITH TOTAL PRODUCTION AT JUST UNDER THREE-POINT-FOUR BILLION BUSHELS. DESPITE WEATHER CHALLENGES IN THE SOUTHERN PLAINS, USDA INCREASED WINTER WHEAT PRODUCTION BY TWO PERCENT FROM ITS ESTIMATES IN MAY. USDA IS NOW FORECASTING AT ONE-AND-A HALF BILLION BUSHEL CROP. WHILE UP FROM MAY, IT'S DOWN EIGHT PERCENT FROM A YEAR AGO. WHILE THE USDA REPORT DIDN'T SHOW AN ACREAGE SHIFT, ROACH AG MARKETING SURVEYED ITS CUSTOMERS FROM SIX OF THE BIGGER CORN-GROWING STATES, INCLUDING IOWA, ILLINOIS AND MINNESOTA. THEIR ESTIMATES PUT LOST CORN ACRES - EITHER DUE TO PREVENTED PLANT OR THOSE FARMERS WHO SWITCHED TO SOYBEANS - AT JUST OVER THREE-POINT-SEVEN MILLION ACRES. OF THOSE SIX STATES, MINNESOTA HAD THE BIGGEST LOSS WITH MORE THAN A MILLION ACRES. TO LOOK AT IT ANOTHER WAY, ROACH AG ESTIMATES THAT'S A LOSS OF A HALF BILLION BUSHEL OF CORN.

CROP WATCH:

CROP WATCH THIS WEEK BEGINS IN THE MIDWEST. PARTS OF NORTHWEST INDIANA GOT DUMPED ON WEDNESDAY NIGHT. THAT'S WHEN THOSE POWERFUL STORMS CHARGED ACROSS IOWA, ILLINOIS AND INDIANA, BEFORE HEADING TO THE EAST COAST. THIS PHOTO IS TAKEN IN PULASKI COUNTY, INDIANA.THAT COUNTY WAS DRENCHED FROM THE STORMS. IN ATKINSON COUNTY, GEORGIA, A CROP REPORTER SAYS MUCH OF CORN CROP IS TASSELING. THEY'VE HAD AN ABUNDANCE OF RAIN WHICH HAS SLOWED-DOWN DOUBLE-CROPPING AFTER WHEAT.

ROUNDTABLE:

AL TAKES OVER TO TALK MARKETS WITH DARREN FRYE AND DUSTIN JOHNSON.

JOHN’S WORLD:

THERE WAS A CURIOUS, AND TO ME UNSETTLING BIT OF FINANCIAL NEWS THIS WEEK. THE WIDELY WATCHED CONSUMER CONFIDENCE INDEX, COMPILED BY THE UNIVERSITY OF MICHIGAN CONFIRMED THAT NOT ONLY DOES IT RELEASE THE INFORMATION FIVE MINUTES EARLY TO THOMPSON REUTERS, THE NEWS COMPANY THAT HAS PAID A COOL MILLION DOLLARS FOR SOLE DISTRIBUTION RIGHTS, BUT THERE WAS ANOTHER TIER OF EVEN MORE SPECIAL CLIENTS. FOR AN UNDISCLOSED FEE, ELITE TRADERS CAN GET THE NUMBERS TWO SECONDS EARLIER, AND IN A FORMAT THAT ALLOWS COMPUTERS TO READ THEM AND ACT IN LESS THAN TEN MILLISECONDS. KEEP IN MIND IT TAKES YOU 200 TO 300 MILLISECONDS TO BLINK YOUR EYE. THIS ARRANGEMENT HAS BEEN GOING ON SOME TIME, IT SEEMS. AND SINCE THESE ARE OSTENSIBLY PRIVATE NUMBERS, NOT GOVERNMENT DATA, U OF M OFFICIALS DENY ANY WRONGDOING. WELL, HERE'S A NEWS FLASH FOR THE WOLVERINE ADMINISTRATION: I THINK IT STINKS. SELLING EARLY RELEASE IS NOT IN ACCORDANCE WITH WHAT PUBLICLY FUNDED INSTITUTES OF HIGHER LEARNING ETHICS SHOULD BE. WHILE THE REPORT IS PREPARED WITH MOSTLY PRIVATE FUNDS, THE PRACTICE IS CORROSIVE TO ALREADY FALTERING TRUST IN OUR FINANCIAL AND HIGHER EDUCATION SYSTEMS. MY HOPE IS THE MARKET WILL NOW DISCOUNT THE VALUE OF THIS REPORT, AS INVESTORS LARGE AND SMALL REFUSE TO BE PICKPOCKETED BY COMPUTERS WITH A HEAD START. THE TAKEAWAY FOR FARMERS IS CLEAR: IF YOU THINK YOUR MARKETS ARE ISOLATED FROM PRACTICES LIKE THIS, BETTER THINK AGAIN.

2ND HALF

JOHN’S OPEN:

HELLO AND WELCOME TO U-S FARM REPORT, I'M JOHN PHIPPS. INTEREST RATES ARE SOARING. THAT'S THE HEADLINE ANYWAY. BUT ACCORDING TO ACTUAL NUMBERS 10 YEAR BONDS HAVE SEEN YIELDS RISE FROM A RECORD LOW OF 1.54 PERCENT TO AROUND 2.2 PERCENT NOW.  OKAY, THAT IS A NEARLY 50 PERCENT RATE JUMP, BUT SEVEN-TENTHS OF A PERCENT IS NOW SOARING? IF RATES SLIDE BACK DOWN TO BELOW 2, WOULD THAT BE PLUMMETING?  SUFFICE IT TO SAY, THE MONEY MARKETS HAVE A LOW THRESHOLD IT SEEMS FOR EXCITEMENT THESE DAYS. THOSE OF US WHO CAN REMEMBER PAYING 20 PLUS PERCENT FOR OPERATING MONEY HAVE BEEN VACCINATED AGAINST SWEATING WHAT IS TRULY SMALL POTATOES. LET'S GET STARTED WITH THE HEADLINES AND TYNE MORGAN.

HEADLINES:

WITH THE SENATE APPROVING THE FARM BILL MONDAY, NOW THE ATTENTION TURNS TOWARD THE HOUSE OF REPRESENTATIVES. SPEAKER JOHN BOEHNER SAYS HE'S INCLINED TO VOTE FOR THE HOUSE VERSION OF THE LEGISLATION. HE VOTED AGAINST THE 2008 FARM BILL. BOEHNER SAYS THERE ARE ELEMENTS OF THE DAIRY PROVISION THAT HE DOESN'T LIKE.  BUT HE SAYS 'BY DOING NOTHING, THERE WOULD NO CHANGES IN FARM AND NUTRITION PROGRAMS, WHICH HE SUPPORTS. THE NATURE OF WILDFIRES MEANS IT CAN QUICKLY CHANGE, BUT FIREFIGHTERS IN COLORADO ARE WORKING TO GET THE UPPER HAND ON A WILDFIRE NEAR COLORADO SPRINGS.  ABOUT 50 SQUARE MILES WERE EVACUATED DUE TO THE BLACK FOREST FIRE, WHICH IS NOW THE WORST IN THE STATE'S HISTORY. PARCHED FORESTS, LOW HUMIDITY, AND HIGH TEMPERATURES ARE A DEVASTATING COMBINATION. HUNDREDS OF HOMES HAVE ALREADY BEEN DESTROYED AND TWO DEATHS. IN SOUTHWEST NEW MEXICO, A HUGE FIRE HAS BURNED MORE THAN 10 SQUARE MILES. THE SILVER FIRE IS BURNING IN AN AREA THAT HASN'T SEEN FIRE IN DECADES.  CREWS BATTLING THE FIRE ARE WORKING IN STEEP, RUGGED TERRAIN.  WHILE LIGHTNING SPARKED THE FIRE, IT'S BEEN FUELED BY DEAD PINE TREES WHICH WERE KILLED BY BARK BEETLES. SCIENTISTS SAY MILLIONS OF PINE TREES - FROM CANADA TO NEW MEXICO - ARE AT RISK OF THE INVADER. THE LATEST DROUGHT MONITOR FROM NEW MEXICO SHOWS THAT VIRTUALLY THE ENTIRE STATE IS IN SEVERE DROUGHT OR WORSE. WHILE NEW MEXICO HAS BEEN IN DROUGHT FOR SEVERAL YEARS, THE INTENSITY HAS WORSENED THIS SPRING. THREE MONTHS AGO, JUST FOUR PERCENT OF THE STATE WAS IN EXCEPTIONAL DROUGHT. NOW IT'S NEARLY HALF. USDA SAYS 97-PERCENT OF THE STATE'S GRAZING AND PASTURE LAND IS POOR TO VERY POOR. FROM FIRES TO WATER - WATER RIGHTS CAN LEAD TO EMOTIONAL DEBATE AND OFTEN END AT THE COURTHOUSE. IN THE PAST 10-DAYS, THERE HAVE BEEN THREE MAJOR RULINGS IN THIS COUNTRY. THIS WEEK THE U-S SUPREME COURT REJECTED A TEXAS CLAIM THAT IT HAS A RIGHT TO CROSS THE BORDER WITH OKLAHOMA TO TAP INTO THE RED RIVER.  THEY ARE PART OF A FOUR-STATE PACT ALL WITH SHARED WATER RIGHTS.  BUT A TRIBUTARY SERVING OKLAHOMA HAS BETTER QUALITY WATER. AND THAT'S WHAT TEXAS WANTED ACCESS TO. IN A DIFFERENT WATER RIGHTS CASE IN TEXAS, A STATE JUDGE RULED IN FAVOR OF THE TEXAS FARM BUREAU IN A LAWSUIT STEMMING FROM USE OF THE BRAZOS RIVER. EARLIER THIS YEAR, TEXAS WATER REGULATORS BYPASSED A LONG-ESTABLISHED DOCTRINE WHICH SAID WATER USERS WITH SENIORITY WERE THE FIRST TO GET THEIR ALLOCATION OF WATER. IN MANY CASES, THESE ARE FARMERS. THE JUDGE RULED THAT THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY OVERSTEPPED ITS BOUNDS BY PUTTING JUNIOR WATER USERS AT THE HEAD OF THE LINE WITHOUT COMPENSATING THE SENIOR RIGHTS HOLDERS. TENS OF THOUSANDS OF ACRES IN OREGON'S KLAMATH BASIN WILL NOT RECEIVE IRRIGATION WATER THIS SUMMER.  THE KLAMATH INDIAN TRIBE IS INVOKING ITS WATER RIGHTS WHICH IT RECEIVED FROM THE STATE OF OREGON IN MARCH.  THE TRIBE HAS SENIORITY OVER OTHER WATER-USERS, AND INTENDS TO PREVENT IRRIGATION USE TO PROTECT THEIR TRADITIONAL FISHING GROUNDS. THAT MEANS FARMERS AND RANCHERS IN WHAT'S CALLED THE "UPPER BASIN" WILL BE CUT-OFF FROM IRRIGATION WATER. ACCORDING TO OREGON-LIVE-DOT-COM, ABOUT 100-THOUSAND CATTLE WILL BE IMPACTED BY THE DECISION. IT'S GOOD NEWS FOR MILK LOVERS. THE U-S-D-A SAY THERE WILL BE PLENTY OF MILK AVAILABLE THIS YEAR, WITH A FORECAST FOR RECORD LARGE U-S MILK PRODUCTION NUMBERS IN 2013. USDA LEFT THE FORECAST FOR THIS YEAR UNCHANGED, BUT SLIGHTLY LOWERERED THE OUTPUT FOR NEXT YEAR. USDA SAYS IT EXPECTS LOWER DAIRY PROFITABILITY, AND EXPECTS PRODUCTION GROWTH TO SLOW THE FIRST HALF OF 2014.

CITY MOMS:

PEOPLE ARE MORE INTERESTED IN LEARNING WHERE THEIR FOOD COMES FROM ORIGINALLY. SO THE ILLINOIS FARM BUREAU IS EMBRACING THIS TREND. THIS YEAR TWO DOZEN MOMS FROM THE CHICAGO AREA ARE VISITING ILLINOIS FARMS. THE URBAN "FIELD MOMS" ARE LEARNING HOW CROPS GROW AND HOW TO RAISE A PEN OF PIGS. AS WES MILLS TELLS US, THESE CONSUMERS ARE GETTING THEIR FOOD QUESTIONS ANSWERED AND LEARNING WHAT GOES INTO FARMING.

BUG EYE CAM:

FARMERS ARE KEENLY AWARE OF PEST PRESSURES IN THEIR FIELDS. IMAGINE IF YOU COULD SEE FROM A BUG'S PERSPECTIVE OF WHAT THEY'RE FEEDING ON. SCIENTISTS AT THE UNIVERSITY OF ILLINOIS DEVELOPED A MINIATURE LENS THAT "SEES" LIKE A BEE. TOM RITCHIE FROM THE ASSOCIATED PRESS HAS DETAILS.

TRACTOR TALES:

AL IS BACK - WHAT DO YOU HAVE FOR US THIS WEEK. JOHN, WE'VE GOT A CLASSIC MASSEY-HARRIS TO SHOW OFF.

CHURCH SALUTE:

TODAY'S COUNTRY CHURCH SALUTE GOES TO ROCK CREEK LUTHERAN CHURCH IN OSAGE, IOWA. THEY'RE CELEBRATING THEIR 150TH ANNIVERSARY. IT WAS ORGANIZED BY NORWEGIAN SETTLERS IN 1863. THE ORIGINAL STRUCTURE WAS JUST 50 FEET BY 35 FEET. BUT IT'S GROWN CONSIDERABLY SINCE THEN. OVER THE GENERATIONS THEY BUILT A STEEPLE AND ADDITIONS. NORWEGIAN SERVICES WERE HELD UNTIL 1912 WHEN THEY CONDUCTED THE FIRST ENGLISH-SPEAKING SERVICE. CHURCH MEMBER DEE UR-BATCH SAYS THE CHURCH WAS STARTED BY FARMERS WHO SETTLED IN THIS PART OF IOWA TO PLOW THROUGH THE VIRGIN PRAIRIE SOIL. CONGRATULATIONS TO ROCK CREEK LUTHERAN OF OSAGE, IOWA.

MAILBAG:

TIME NOW FOR OUR WEEKLY LOOK INSIDE THE FARM REPORT MAILBAG. MY REMARKS ABOUT FARMERS USING A DECEPTIVE IMAGE TO ENLIST PUBLIC SUPPORT FOR SUBSIDIES WERE APPARENTLY NOT VERY CLEAR FOR VIEWERS. FROM NATE HAAS, IN BYRON, ILLLINOIS.

 

 

 

 

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