Sep 22, 2014
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THIS WEEK ON U.S. FARM REPORT

EPISODE # 2080

JUNE 22-23, 2013   

 

 

JOHN’S OPEN:

HELLO AND WELCOME TO U-S FARM REPORT, I'M JOHN PHIPPS. THIS WEEK WAS ALL ABOUT CONGRESS. TYNE WILL HAVE THE SPECIFICS IN A MOMENT. THE UNPRECEDENTED ACTIONS IN THE HOUSE HAS TEMPORARILY STUNNED PUNDITS, AND I MUST ADMIT, THE FARM BILL OUTCOME WASN'T ON MY RADAR EITHER. HISTORY IS WRITTEN IN A ROUGH DRAFT. THESE DAYS HOWEVER WE GET A REAL-TIME PEEK AT THAT PROCESS. THE AMOUNT OF DETAIL IN THE NEWS BOTH ENLIGHTEN AND CONFOUND OUR UNDERSTANDING OF WHAT IS ACTUALLY HAPPENING. I THINK IT IS THIS NEW LEVEL OF TRANSPARENCY THAT HAS CAUSED THE GROWING CYNCISM OF GOVERNMENT. MY HOPE IS WE'LL ADJUST TO UNDERSTAND AN INCREASINGLY COMPLICATED ECONOMY AND CULTURE WILL REQUIRE A CORRESPONDINGLY COMPLEX GOVERNMENT.

HEADLINES:

THERE'S A LOT OF FINGER POINTING IN WASHINGTON AS THE HOUSE OF REPRESENTATIVES FAILS TO PASS THE 2013 FARM BILL. THE BIG QUESTION NOW FACING LAWMAKERS - WHAT'S NEXT? ON THE SENATE SIDE OF THE CAPITOL, REPUBLICAN SENATORS SEARCHING FOR COMPROMISE ON AN IMMIGRATION BILL HAVE ANNOUNCED A DEAL TO STRENGTHEN BORDER SECURITY. THE AMENDMENT WOULD DOUBLE THE NUMBER OF AGENTS ALONG THE BORDER. IT WOULD ALSO REQUIRE 700 NEWS MILES OF FENCING AND INCREASE THE USE OF HIGH-TECH TOOLS, LIKE DRONES. UNDER THE EMERGING COMPROMISE, THE GOVERNMENT WOULD GRANT LEGAL STATUS TO ILLEGAL IMMIGRANTS LIVING IN THE UNITED STATES AT THE SAME TIME THE ADDITIONAL SECURITY WAS BEING PUT INTO PLACE. THE SENATE AG COMMITTEE WANTS TO MAKE SURE THE NATION'S TOP FOOD REGULATORS HAVE INPUT INTO THE PROPOSED SALE OF SMITHFIELD FOODS TO A CHINESE MEAT PRODUCER. A DEAL HAS BEEN REACHED BETWEEN CARGILL AND NORTHSTAR GRAIN. NORTHSTAR AND THE ASSOCIATED COMPANY OF 'STAMP FARMS" ACHIEVED NOTORIETY IN THE PAST YEAR.  PREVIOUS OWNER, MIKE STAMP, FILED FOR CHAPTER ELEVEN BANKRUPTY LAST FALL. AT ONE TIME STAMP FARMED 40-THOUSAND ACRES IN SOUTHWEST MICHIGAN.  HE PURCHASED NORTHSTAR IN 2007. STAMP MADE HUGE INCREASES TO GRAIN STORAGE AND NEGOTIATED A DEAL WITH NORFOLK SOUTHERN RAILWAY, WHICH PROVIDED ACCESS TO EAST-COAST GRAIN USERS.

CROP WATCH:

THANKS TYNE. CROP WATCH THIS WEEK BEGINS IN PENNSYLVANIA. A FARMER IN PERRY COUNTY SAYS THE CORN HE PLANTED DURING THE FIRST WEEK OF MAY IS NOW KNEE HIGH AND IT'S LOOKING GOOD. HIS JUNE-PLANTED BEANS HAVE EMERGED WITH TIMELY RAINS.
IN STEARNS COUNTY, MINNESOTA, A POST ON AGWEB READS "WHOEVER IS REPORTING THESE CROP CONDITIONS TO USDA AT A LOCAL LEVEL SHOULD LAY OFF THE WHISKEY AND GET OUT AND ACTUALLY LOOK AT THE CROPS COUNTYWIDE." THIS FARMER OBVIOUSLY DOESN'T AGREE WITH THE LATEST CROP CONDITION AND GRAIN STOCKS REPORTS.

ROUNDTABLE:

AL JOINS US TO TALK MARKETS WITH JIM BOWER AND BILL BIEDERMANN.

JOHN’S WORLD:

WHILE CHINA MADE THE NEWS THIS WEEK WITH SIGNS ITS ECONOMY MAY BE SLOWING FROM THE TORRID PACE OF THE LAST FEW YEARS, OVERLOOKED IN THE MARKET REACTION WAS ANOTHER, I THINK, EVEN MORE IMPORTANT ANNOUNCEMENT THAT ECHOES THE AMBITION AND SCOPE OF DISASTROUS "GREAT LEAP FORWARD" IN THE SIXTIES. OVER THE NEXT DECADE, CHINA WILL MOVE 250 MILLION RURAL RESIDENTS - MOSTLY SUBSISTENCE FARMERS - INTO HIGH-RISE CITY APARTMENT BUILDINGS. THIS HAS BEEN THE STRATEGY BEHIND THE ONGOING URBAN BUILDING BOOM. THE FARMERS WILL BE COMPENSATED, AND THE APARTMENTS WILL BE FREE. THE GOAL IS TO TURN THEM INTO CONSUMERS OF BOTH PUBLIC AND PRIVATE GOODS CREATING BADLY NEEDED DOMESTIC DEMAND FOR THEIR ECONOMY. THIS WOULD BE THE LARGEST URBAN MIGRATION IN HUMAN HISTORY, AND CREAT STAGGERINGLY LARGE METROPLEXES IN SEVERAL AREAS OF THE COUNTRY. BUT EVEN IF SUCCESSFUL, AVERAGE FARM SIZE WOULD ONLY GROW FROM MINSCULE TO TINY - SOME 300 MILLION FARMERS WILL REMAIN. NEEDLESS TO SAY, ECONOMISTS AND SOCIOLOGISTS AROUND THE WORLD ARE FLABBERGASTED AT BOTH THE SCALE AND RATIONALE BEHIND THIS RELOCATION. MORE THAN FEW ARE HIGHLY SKEPTICAL AT THE PROBABILITY OF SUCCESS. FOR AMERICAN FARMERS, THE POSIBLE IMPACT OF THIS PROGRAM IS ENORMOUS. IN ORDER TO REALIZE THE DEMAND FOR AG PRODUCTS WE ALL HAVE ASSUMED FOR CHINA IN THE FUTURE, TENS OF MILLIONS OF CHINESE HAVE TO REACH THE FIRST RUNG OF THE CONSUMER LADDER. WE SEE IF THE CHINESE GOVERNMENT CAN FORCE THAT TO HAPPEN.

2ND HALF

JOHN’S OPEN:
HELLO AND WELCOME TO U-S FARM REPORT, I'M JOHN PHIPPS. WE'RE STARTING OFF WITH NEWS ABOUT TRADE TALKS WITH EUROPE, AND WHILE I HAVE GREAT RESPECT FOR THE PEOPLE WHO ARE ESSENTIALLY MY DISTANT COUSINS, I HAVE LEARNED TO CURB MY EXPECTATIONS FOR RAPID RESULTS. MY THEORY IS ALL MY IMPATIENT ANCESTORS MIGRATED TO AMERICA.  FOR EXAMPLE, THE U-S/EU FEUD OVER HORMONE-FED BEEF HAS BEEN AROUND AS LONG AS I CAN REMEMBER. THE GMO DISPUTE SEEMS TO BE A PERMANENT ARGUMENT AS WELL. SO WHILE I AM HOPEFUL PROGRESS MIGHT BE MADE ON INTELLECTUAL PROPERTY OR DRUG APPROVAL, I AM LESS OPTIMISTIC FOR AG ISSUES. WHEN YOUR CULTURE IS 1500 HUNDRED YEARS OLD, I GUESS TAKING 50 YEARS TO SOLVE A PROBLEM DOESN'T SEEM EXCESSIVE.

HEADLINES:

THANKS JOHN. FORMAL TALKS ON A TRADE DEAL BETWEEN THE EUROPEAN UNION AND THE UNITED STATES ARE SET TO BEGIN NEXT MONTH IN WASHINGTON. THE TRADE AGREEMENT - IF APPROVED - WOULD SUBSTANTIALLY REDUCE THE TARIFFS PAID ON VARIOUS PRODUCTS, INCLUDING FARM GOODS. BACK HERE AT HOME - A BIG STUMBLING BLOCK FOR U-S FARMERS AFTER CONGRESS FAILED TO PASS A NEW FARM BILL. THE HOUSE OF REPRESENTATIVES VOTED 195-TO-234 AGAINST THE LEGISLATION. THE SENATE APPROVED ITS VERSION EARLIER THIS MONTH. ONE OF THE BIGGEST OBSTACLES DEALT WITH CUTS TO FOOD STAMPS. REPUBLICANS WANTED TO CUT TWO BILLION OUT OF THE 80 BILLION DOLLARS SPENT EACH YEAR. DEMOCRATS CALLED THE CUTS TOO EXTREME. BEFORE THE FINAL VOTE OF THE FARM BILL, A MEASURE THAT WOULD SET NATIONAL CAGE STANDARDS FOR LAYING HENS WAS TAKEN OUT. YOU MIGHT REMEMBER THAT'S THE DEAL BETWEEN THE UNITED EGG PRODUCERS AND H-S-U-S. THE HOUSE RULES PANEL REJECTED, 3 TO 7, A PROPOSAL TO ALLOW A VOTE ON THE AMENDMENT. WE TALKED TO MEMBERS OF U-E-P. THEY HOPE TO GET THE MEASURE ATTACHED TO ANOTHER BILL IN THE FUTURE. MANY MAINSTREAM LIVESTOCK GROUPS ARE OPPOSED TO THE LEGISLATION. DUNKIN DONUTS IS MAKING SOME ADDITIONS TO ITS MENU WHICH COULD BENEFIT PEOPLE WHO CAN'T STOMACH WHEAT PRODUCTS. THE DONUT CHAIN SAYS IT WILL START SELLING GLUTEN-FREE DONUTS AND MUFFINS IN ALL U-S STORES THIS YEAR. THE PASTRIES ARE PACKAGED SEPARATELY TO AVOID CONTAMINATION FROM OTHER FOODS THAT CONTAIN WHEAT FLOUR. THOSE WITH CELIAC DISEASE CAN'T EAT GLUTEN, THE PROTEIN IN WHEAT, RYE AND BARLEY.  THE FOOD CHAIN HAS ALREADY TEST-MARKETED THE GLUTEN FREE PRODUCTS IN MASSACHUSETTTS AND WERE PLEASED WITH THE CONSUMER RESPONSE. DESPITE DEBATE OVER GENETICALLY MODIFIED FOODS, THREE BIOTECH SCIENTISTS ARE THIS YEARS WINNERS OF THE WORLD FOOD PRIZE.

SALSA:

SALSA IS A STAPLE OF TEXAS CUISINE. EVERYONE HAS THEIR FAVORITE AS LONG AS IT'S MADE IN THE LONE-STAR STATE. FOR MARY MOORE IT'S THE ONE MADE IN HER OWN KITCHEN. JESSICA DOMEL {doe'-mul} WITH THE TEXAS FARM BUREAU CONDUCTS A TASTE-TEST OF MOORE SALSA.

BAXTER BLACK:

BAXTER BLACK LOVES SPENDING TIME IN THE GREAT OUTDOORS - BUT HE DOESN'T ALWAYS RETURN HOME WITH EVERYTHING HE TOOK OUT WITH HIM. HE JOINS US NOW FROM HIS ARIZONA RANCH.

TRACTOR TALES:

TRACTOR TALES IS A BIT DIFFERENT THIS WEEK. WE'LL ENJOY NOT JUST ONE TRACTOR, BUT A MUSEUM FULL. JOHN, IT'S CALLED THE KEYSTONE TRACTOR WORKS AND IT INCLUDES 90-THOUSAND SQUARE FEET OF CLASSIC IRON. NORM HYDE FROM THE VIRGINIA FARM BUREAU TAKES US ON TOUR.

CHURCH SALUTE:

TODAY'S COUNTRY CHURCH SALUTE GOES TO ST JAMES UNITED CHURCH OF CHRIST. IT'S LOCATED IN MAN-IH-TOE-WOCK COUNTY, WISCONSIN. IT WAS ORGANIZED BY A SMALL GROUP OF GERMAN SETTLERS. IN 1868 LAND WAS DONATED TO BUILD A CHURCH. AS DECADES PASSED, THE CONGREGATION GREW. THEY BUILT AN ADDITION IN THE 1950'S. ANOTHER ADDITION CAME ALONG IN 2002. AS A WAY TO CELEBRATE THEIR RURAL HERITAGE, THE CHURCH IS OBSERVING "DRIVE YOUR TRACTOR TO CHURCH" THIS WEEKEND.  OUT THANKS TO DORIS MAY SPRENGER AND MARY ANN VOGEL FOR SHARING THE HISTORY OF ST JAMES UNITED CHURCH OF CHRIST.

MAILBAG:

TIME NOW FOR OUR WEEKLY LOOK INSIDE THE FARM REPORT MAILBAG. A VIEWER IN THE PACIFIC NORTHWEST REACTS TO A COMMENT FROM OUR MARKET EXPERTS ABOUT THE GM-WHEAT PROBLEM.

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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