Sep 20, 2014
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THIS WEEK ON U.S. FARM REPORT

EPISODE # 2067

MARCH 23-24, 2013  

 

JOHN’S OPEN:

HELLO AND WELCOME TO U-S FARM REPORT, I'M JOHN PHIPPS. DON'T LOOK NOW BUT CORN PRICES HAVE STRUGGLED HIGHER OVER THE LAST TWO WEEKS - EVEN NEW CROP. I'M SURE OUR MARKET EXPERTS WILL BE WEIGHING IN ON THIS BUT THE CONTINUED COLD WEATHER IS CAUSING BUYERS TO START FLIPPING THE CALENDAR. MEANWHILE MANY SOUTHERN GROWERS ARE COPING WITH PERSISTENT RAIN AS THEY PLANT.GIVEN OUR TINY CARRYOVER AND SURPRISINGLY STRONG DEMAND, WE COULD HAVE A PROBLEM IF THE 2013 CROP IS DELAYED. WE WON'T RUN OUT, OF COURSE, BUT WE WILL HAVE TO FIND A PRICE TO RATION SUPPLIES. IN ALL, IT COULD BE ANOTHER HOT SUMMER IN CHICAGO.

HEADLINES:
CONGRESS TOOK ACTION THIS WEEK TO HELP SAVE MORE THAN 8 THOUSAND MEAT AND POULTRY INSPECTOR JOBS FROM BEING FURLOUGHED. MEANWHILE, OTHER AREAS HAVEN'T BEEN SO LUCKY, AS SOME CUTS HAVE ALREADY TAKEN AFFECT. DETAILS CONTINUE TO ROLL OUT REGARDING WHO AND WHAT WILL BE IMPACTED BY WASHINGTON'S SEQUESTRATION CUTS. AND NOW IT LOOKS LIKE FARMERS PAYMENTS ARE NEXT IN LINE. NOAA RELEASED ITS SEASONAL DROUGHT OUTLOOK THIS WEEK. IT DOESN'T PAINT A PROMISING PICTURE FOR DROUGHT IN THE SOUTHWEST AND WEST COAST. WHILE IT SHOWS SOME IMPROVEMENT IN NEBRASKA AND KANSAS, PREDICTIONS ARE POINTING TO DROUGHT INTENSIFYING IN STATES LIKE TEXAS, NEW MEXICO AND PARTS OF CALIFORNIA. WHAT A DIFFERENCE A YEAR MAKES FOR U-S TEMPS. LAST YEAR AT THIS TIME, PARTS OF THE U-S WERE ENJOYING RECORD HIGHS. THIS WEEK, PARTS OF THE UPPER MIDWEST EXPERIENCED THE COLDEST START TO SPRING SINCE 1965. SOILS HAVE YET TO WARM UP, WHICH IS KEEPING PLANTERS PARKED.

CROP WATCH:

WE HEAD NORTH THIS WEEK FOR CROP WATCH.

ROUNDTABLE:

OUR WEEKLY MARKETING ROUNDTABLE. SUE MARTIN AND MIKE HOGAN ARE HERE.

JOHN’S WORLD:

THIS WEEK OUT OF THE BLUE, I RECEIVED AN INVITATION TO APPEAR ON THE WILLIS REPORT ON FOX BUSINESS NETWORK. FRANKLY, I THOUGHT THE E-MAIL WAS A HOAX FROM ANY NUMBER OF FRIENDS WHO OWE ME PAYBACK FOR SOMETHING OR OTHER, BUT A LITTLE INVESTIGATION PROVED IT TO BE LEGITIMATE. THEY WANTED ME TO TALK ABOUT SKYROCKETING LAND PRICES, SOMETHING I COULD DRONE ON ABOUT FOR HOURS, SO I AGREED. MY MOTIVATIONS WERE COMPLEX. I WAS SURE IT WOULD BE AN INTERESTING EXPERIENCE TO SEE HOW THE TALKING HEAD BUSINESS WORKED. AND I HAD BEEN INSANELY JEALOUS EVER SINCE MY COLLEGUE CHIP FLORY AT PRO FARMER APPEARED ON CNBC. I MEAN - CHIP FLORY! IT TURNED OUT BE A VERY INTERESTING AND PROFESSIONAL EXPERIENCE. AND I ACTUALLY LEARNED SOMETHING OTHER THAN I'M NOT REALLY READY FOR PRIME TIME. THE REST OF THE WORLD - EVEN THE INVESTING WORLD - MAY NEVER TRULY COMPREHEND HOW FARMERS VALUE FARMLAND. IT'S NOT JUST A CAREFULLY MEASURED PIECE OF THE GLOBE - IT'S JOB SECURITY AND A WAY OF LIFE FOR OUR GRANDCHILDREN. BECAUSE OUTSIDERS CANNOT SEE A FIELD WITH OUR EYES, THEY ARE PUZZLED HOW WE CAN WATCH COLLEAGUES SEEMINGLY OVERPAY AND AGREE WITH THEIR DECISIONS. CERTAIN PLOTS OF EARTH CAN BE WORTH ASTRONOMICAL PRICES TO THE RIGHT FARMERS. I ALSO REALIZED THE WORLD IS HUNG UP ON SPOTTING BUBBLES - SOMETHING ECONOMISTS ARE PRETTY SURE CAN ONLY BE DONE IN HINDSIGHT. FARMLAND, IN MY OPINION IS NOT A BUBBLE - IT'S MORE LIKE A SNOWBALL ROLLING DOWNHILL. IT MAY MELT DOWN A LITTLE SOMEDAY, BUT IT WON'T BURST.

2ND HALF

JOHN’S OPEN:

HELLO AND WELCOME TO U-S FARM REPORT, I'M JOHN PHIPPS. LAST WEEK, I ANSWERED AN E-MAIL ABOUT LABELING ARTIFICIAL SWEETNERS IN FLAVORED MILK. THE PROBLEM WAS THE MARKETING PERCEPTION AMONG CHILDREN OF PRODUCTS LABELED "REDUCED CALORIES". WE RECEIVED WORD THIS WEEK THAT THE NATIONAL MILK PRODUCERS FEDERATION WOULD NOT PURSUING THE RULE CHANGE. PUBLIC OPINION ON THE ISSUE IS TOO HARDENED TO ALLOW MODIFICATION TO BE EFFECTIVE. WHILE I THINK THERE WAS MUCH LESS AT STAKE HERE, THE RESULT MAY NOT PROVE AS DEVASTATING AS THE DAIRY INDUSTRY THINKS. YOUNG PEOPLE ARE ALREADY DRINKING DIET SODA AND UNFORTUNATELY AND ILLEGALLY, LIGHT BEER, SO MAYBE DIET CHOCOLATE MILK COULD CATCH ON.
HEADLINES:

RUSTLING CATTLE HAS BEEN AROUND FOR CENTURIES. IN SOUTHERN MISSOURI THEFTS ARE UP AND EXPERTS SAY OLD-FASHIONED BRANDING IS ONE ANSWER. A NEW MEXICO BUSINESS, VALLEY MEAT COMPANY NEAR ROSWELL, SAYS THEY'RE PLANNING TO OPEN THE NATIONS FIRST HORSE SLAUGHTERHOUSE. IT WOULD BE THE FIRST TO PROCESS HORSES SINCE 2007 WHEN CONGRESS SHUT OFF FUNDING FOR INSPECTORS. THE OWNER SAYS HE THINKS VALLEY MEAT WILL EVENTUALLY EMPLOY ABOUT 100 PEOPLE. EXPORTS OF LIVE HORSES ARE UP SIX TIMES WHAT IT WAS A DECADE AGO. NOW TO THE NATION'S WHEAT FIELDS WHICH ARE COMING OUT OF WINTER DORMANCY. UNFORTUNATELY, MUCH OF PRIMARY WHEAT BELT IS AWAKENING TO VERY DRY CONDITIONS. IN OKLAHOMA, MORE THAN A THIRD OF THE WINTER WHEAT IS RATED AS POOR TO VERY POOR. YOU WON'T HAVE TO WORRY ABOUT THE STATE OF MISSISSIPPI TAKING ON THE ROLE OF "FOOD PORTION POLICE". THE STATE'S GOVERNOR SIGNED A LAW THAT SAYS CITIES AND COUNTIES CANNOT PUT A LIMIT ON FOOD AND DRINK PORTIONS. JUST LIKE GRAIN PRICES, A SHORT "CROP" OF HONEY IS RESULTING IN HIGHER PRICES. THE AG DEPARTMENT SAYS HONEY PRICES INCREASED TO A RECORD HIGH LAST YEAR - 195-CENTS A POUND. THAT'S NEARLY 20-CENTS A POUND HIGHER.  YIELD PER BEE COLONY WAS DOWN SIX PERCENT FROM A YEAR AGO. BUT THE NUMBER OF COLONIES WAS UP FIVE PERCENT. PURPLE CORN DATES BACK TO MORE THAN TWO THOUSAND YEARS AGO AND IS STILL WIDELY CULTIVATED IN PERU.  BUT A COMPANY THAT GOES UNDER THE NAME SUNTAVA IS HOPING TO GET THIS PURPLE CORN CLASSIFIED AS A SUPER FOOD. THE COMPANY SAYS ITS FREE RADICAL FIGHTING POWER IS TWICE AS GOOD AS BLUEBERRIES. SUNTAVA PLANS TO START ROLLING OUT NEW PURPLE CORN PRODUCTS LIKE FOOD COLORINGS, CORN MEAL AND CORN SYRUP.

SOUTH AFRICA:

THIS WEEK WE HEAD TO TANZANIA FOR THE SECOND OF OUR SERIES OF REPORTS FROM MY TRAVELS IN AFRICA. NORTH DAKOTA FARMER WALLIE HARDIE CONFRONTS THE PROBLEMS - EXPECTED AND UNEXPECTED - OF TURNING A HIGH SAVANNAH INTO ACRES OF CASH CROPS. TANZANIA WAS A GERMAN COLONY THAT WAS TAKEN OVER BY THE BRITISH AFTER THE FIRST WORLD WAR. THAT BRITISH INFLUENCE IS A KEY TO THE PROBLEM OF ACTUALLY OWNING THE LAND.

TEXAS:

I HAVE SOMEONE TO ENTRUST THE LAND AND THE OPERATION WHEN I DECIDE TO CALL IT QUITS. MY SON AARON RETURNED TO THE FARM, AS MANY OF YOU KNOW.  NOT EVERY FARMER CAN SAY THAT. IN THIS LEGACY REPORT PROVIDED BY THE TEXAS FARM BUREAU, NATHAN SMITH TELLS US ABOUT A RELATIONSHIP BETWEEN A RETIRING FARMER AND YOUNG MAN WHO DESPERATELY WANTS TO FARM.

TRACTOR TALES:

I HEAR WE'VE GOT A BIT OF A PATRIOTIC THEME FOR TRACTOR TALES THIS WEEK." WE SURE DO! WE HEAD TO TEXAS THIS WEEK WHERE TRACTOR OWNER, CLARENCE LEE, CLAIMS HE IS THE 4TH COUSIN TO GENERAL ROBERT E. LEE.

CHURCH SALUTE:
TODAY'S COUNTRY CHURCH SALUTE GOES TO COTTONWOOD UNITED METHODIST CHURCH OF TOLEDO, ILLINOIS. THE CHURCH WAS FORMED DURING THE CIVIL WAR . A HALF DOZEN FAMILIES HELD SERVICES IN THEIR HOMES. IN 1902 THE PRESENT STRUCTURE WAS ERECTED. IT INCLUDED A SERIES OF STAINED GLASS WINDOWS WHICH BRING A SPECIAL GLOW TO SERVICES. THE PRESENT MEMBERSHIP IS JUST 28 PEOPLE, BUT THEY ARE TRUE TO THEIR FAITH. OUR THANKS TO CHURCH HISTORIAN DOROTHY CUT-RIGHT FOR SHARING THE NEWS OF COTTONWOOD UNITED METHODIST CHURCH.

MAILBAG:

TIME NOW FOR OUR WEEKLY LOOK INSIDE THE FARM REPORT MAILBAG. MY REPORTS FROM AFRICA GENERATED THIS INTERESTING NOTE FROM PETER GADWA.

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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