AgDay Daily Recap - Aug. 30, 2016

August 30, 2016 02:57 AM
 

TODAY ON AGDAY
AUG. 30, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY -CONCERNS FROM FARM COUNTRY. I'M MICHELLE ROOK. LOW COMMODITY PRICES AND THE REGULATORY CLIMATE IN WASHINGTON WERE THE TOP ISSUES AMONG FARMERS HERE AT DAKOTAFEST. I'LL HAVE THE STORY TODAY ON AGDAY. PLUS CROP PROGRESS.. IN AGRIBUSINESS...LOOKING FOR A HARVEST LOW. IF WE CONTINUE TO GET THESE RAINS WE'VE BEEN GETTING I MEAN THAT COULD CAUSE SOME CONCERNS HERE. MACHINERY PETE JOINS US WITH A LOOK AT SOME GREAT TRACTOR DEALS IN KANSAS. AND NEW RULES FOR SMALL DRONES COULD HELP THE INDUSTRY TAKE OFF.
COMMODITY CHALLENGE:
GOOD MORNING I'M CLINTON GRIFFITHS. COMMODITIES CONTINUE TO PROVE CHALLENGING IN 2016 AND A REPORT SAYS SPUTTERING FARM INCOMES ARE STARTING TO BLEED INTO AG RETAILER BALANCE SHEETS. ACCORDING TO A NEW REPORT FROM CO-BANK, "THE DROP IN FARM INCOME OVER THE PAST THREE SEASON IS THE BIGGEST SINCE THE GREAT DEPRESSION," COBANKS SAYS ACCOUNTS RECEIVABLE AT AG RETAILERS ACROSS THE COUNTRY--THAT'S THE MONEY THESE BUSINESSES ARE OWED---HAVE JUMPED 11 PERCENT THIS YEAR. THE AUTHORS SAY IT'S LIKELY GO HIGHER AS FARMERS CONTINUE TO STRUGGLE WITH THEIR OWN CASH FLOW. ACCORDING TO THE REPORT, FERTILIZERS USUALLY ACCOUNT FOR HALF THE REVENUE AT AG RETAILERS. BUT FALLING PRICES ARE MAKING IT DIFFICULT TO HOLD POSITIVE MARGINS.
DAKOTA FARMERS FACE ANOTHER YEAR OF DEPRESSED COMMODITIES:
AGDAY'S MICHELLE ROOK --RECENTLY ATTENDED DAKOTAFEST IN MICHELL, SOUTH DAKOTA TAKES A LOOK AT HOW FARMERS ARE FACING A TRIPLE WHAMMY OF LOW PRICES, LOWER ROW CROP YIELDS AND THE MOUNTING BURDEN OF REGULATIONS OUT OF WASHINGTON. FARMERS ATTENDING DAKOTAFEST ARE FACING ANOTHER YEAR OF DEPRESSED COMMODITY PRICES AND THIS SEASON THEY WON'T HAVE A BUMPER CROP TO MAKE UP THE DIFFERENCE.  "LOW PRICES AND THE LOWER YIELDS. YOU KNOW GETTING BACK TO BACK YEARS WITH LOW PRICES ITS STARTING TO ADD UP AND YOU KNOW THE PRODUCERS ARE STARTING TO FEEL IT."  "EVERYBODY'S LOOKING AT HOW THEY'RE GONNA CASH FLOW THIS YEAR AND THEN HOW LONG ARE COMMODITY PRICES GOING TO STAY LIKE THIS? DURING A CONGRESSIONAL UPDATE AT DAKOTAFEST SOUTH DAKOTA CONGRESSWOMAN KRISTI NOEM TOLD FARMERS THE FARM SAFETY NET ISN'T PROVIDING ADEQUATE HELP.
WHEAT FUTURES AT WORST LEVEL IN 10 YEARS:
THANKS MICHELLE, WHEAT GROWERS ARE NOT GETTING ANY HELP ON THE INCOME FRONT. WHEAT FUTURES CONTINUING TO SLIDE NOW AT THEIR WORST LEVELS IN TEN YEARS SEPTEMBER FUTURES IN CHICAGO FALLING TO ROUGHLY 3-70 A BUSHEL. THAT'S THE LOWEST PRICE IN AT LEAST 10 YEARS. WE START WITH SPRING WHEAT IN THE CROP PROGRESS REPORT -81-PERCENT IS NOW HARVESTED, THAT'S ABOUT 20 POINTS AHEAD OF THE FIVE YEAR AVERAGE. NOW TO CORN -NO CHANGE IN CONDITION 75-PERCENT STILL GOOD TO EXCELLENT. NINE PERCENT OF THE CROP IS MATURE...WHICH IS TWO POINTS BEHIND AVERAGE. 60-PERCENT AT DENT STAGE. SEVERAL STATES IN THE SOUTH HAVE STARTED HARVEST. BUT NOT ENOUGH FOR A NATIONAL REPORT. AND IN SOYBEANS...CONDITION CLIMBED A POINT FROM LAST WEEK. 73-PERCENT IS GOOD TO EXCELLENT. LEAVES ARE STARTING TO DROP ON THE BEAN CROP IN FIVE-PERCENT OF THE FIELDS. 94-PERCENT SETTING PODS.
MINNESOTA GOVERNOR RESTRICTS NEONICOTINOID TO SAVE BEES:
IN MINNESOTA, GOVERNOR MARK DAYTON ISSUING AN EXECUTIVE ORDER AIMED AT NEONICOTINOID PESTICIDES. THE NEW RESTRICTIONS AN EFFORT TO STEM BEE AND POLLINATOR LOSSES. THE GOVERNORS ORDER SAYS STATE REGULATORS SHOULD REQUIRE VERIFICATION THAT THE USE OF NEONICOTINOID PESTICIDES IS NECESSARY DUE TO IMMINENT THREATS OF SIGNIFICANT CROP LOSSES. IT ALSO CREATES A NEW TASK FORCE TO STUDY ISSUES IMPACTING POLLINATORS AND TO RECOMMEND LONG-TERM SOLUTIONS. CROP COMMENTS IS POWERED BY RESICORE HERBICIDE FOR CORN, FROM DOW AGROSCIENCES.TWO DIFFERENT CROP DISEASES ARE TAKING A BITE OUT OF YIELD.
CROP COMMENTS:
MIKE HOFFMAN HAS DETAILS IN CROP COMMENTS, MIKE. GOOD MORNING CLINTON. A FARMER FROM HAMILTON COUNTY, IOWA -THAT'S ABOUT AN HOUR NORTH OF DES MOINES -SAYS BEANS LOOKED REALLY GOOD A FEW WEEKS AGO. BUT NOW THE OUTBREAK OF SUDDEN DEATH SYNDROME IS GETTING BAD. THE SCOUTS ON THE PROFARMER MIDWEST CROP TOUR SAID SAW THE SAME THING AS THEY TRAVLED THE STATE, S-D-S IS REALLY CUTTING INTO THE PROSPECTIVE YIELD. MEANWHILE IN FOREST COUNTY, WISCONSIN, A FARMER POSTED COMMENTS ON AGWEB ABOUT WHITE MOLD, HE SAYS IT'S DESTROYING HIS SOYBEAN CROP WHICH IS WAY UP NORTH NEAR RHINELANDER, HE SAYS TO EXPECT A LOT OF 20-30 BUSHEL BEANS IN THAT REGION DUE TO THE SEVERITY OF THE DISEASE.
TOSS TO WEATHER:
AND TAKING A LOOK AT THE WEATHER MAP TODAY WE'LL SEE A SYSTEM THROUGH THE MIDDLE OF THE COUTNRY CAUSING SOME SHOWERS AND THUNDERSTORMS AND THERES SOME REASONS IN THE ATLANTIC AND GULF WE HAVE TO BE WATCHING I'LL HAVE MY FORECAST COMING UP N A FEW MINUTES BUT FIRST HERE ARE SOME HOMETOWN TEMPS.
TEASE:
WHEN WE COME BACK, TYNE MORGAN JOINS US WITH A LOOK AT MARKET PRICES AND WHEN WE MIGHT ANTICIPATE A HARVEST LOW FOR PRICES.PLUS MACHINERY PETE FILLS IN FOR OUR DAIRY REPORT THIS TUESDAY. STICK AROUND FOLKS COMING UP WE'RE GOING TO TALK AN AUCTION IN KANSAS WITH ONE VERY HIGH PRICE FOR A VERY GOOD BARGAIN AND LATER, DRONES CONTINUE TO BE POPULAR ADDITIONS FOR FARMERS. WE'LL LOOK AT HOW SOME NEW FAA RULES MAY IMPACT THE FUTURE OF INNOVATION.


FROM THE FLOOR OF THE CME:
LETS SEE WHERE MARKETS CLOSED FROM THE FLOOR OF THE CME IN CHICAGO. THE WHEAT MARKET FEELING SOME ADDITIONAL SELLING PRESSURE ON IDEAS OF BIG COMPETITION FROM EUROPE, BUT MOSTLY FROM RUSSIA. THE RUSSIAN COMPETITION THOUGHT TO BE VERY FIERCE.PLUS EGYPT TALKING ABOUT ONCE AGAIN GOING TO ZERO ERGOT TOLERANCE POLICY. AND THAT'LL MAKE DEMAND FROM EGYPT VERY VERY HARD TO FULFILL EITHER FROM U.S OR RUSSIA. THAT POTENTIAL LOSS OF DEMAND IN THE WORLD MARKET HAS REALLY DRIVEN THE MARKET LOWER HERE TODAY. LEAD BY KC MARKET WHICH IS SHOWING THE MOST WEAKNESS HERE. CORN MARKET ALSO TRADING A BIT LOWER DESPITE THE FACT THAT PRO FARMER FOUND ON FRIDAY LESS CORN THAN WHAT THE MARKET GENERALLY EXPECTING. STILL IT'S A BIG PRODUCTION ESTIMATE OUT THERE. AND WITH WHEAT TRADING AS LOW AS IT IS, THAT'LL PROVIDE GOOD COMPETITION ON THE FEED SIDE OF THINGS FOR THE CORN MARKET. AND I THINK THAT'S WHAT THE CORN MARKET IS REFLECTING HERE.
NATIONAL WEATHER:
WELCOME BACK TO AGDAY HERE WITH METEOROLOGIST MIKE HOFFMAN. MIKE AS WE LOOK AT THE MAP FOR A COUPLE OF TROPICAL SYSTEMS THAT WE'RE WATCHING PRETTY CLOSELY. BOTH ARE MINIMAL TROPICAL STORMS. THE ONE ALONG THE CAROLINAS PROBABLY NOT GOING TO CAUSE ANY ISSUES BUT THE ONE ALONG THE GULF PROBABLY WILL. SO IF YOU LIVE IN THE SOUTHEAST PORTIONS OF THE COUNTRY YOU NEED TO PAY ATTENTION TO YOUR LOCAL FORECAST OBVIOUSLY BUT THEN THE IMMEDIATE THOUGHT IS ON THE ONE IN THE GULF IS GOING TO EVENTUALLY CUT NORTHEAST THEN HEAD TOWARDS FLORIDA. PROBABLY SOMEWHERE EAST OF THE PANHANDLE BUT WE'LL HAVE TO WAIT AND SEE. WE ALSO HAVE ANOTHER TROPICAL LIKE SYSTEM HEADING UP THE EAST COAST OF FLORIDA ANYWAY. SO YOU HAVE THREE SYSTEMS THERE ALL WITH A LOT OF RAIN BUT NONE OF THEM FULL FLEDGED HURRICANES AT ALL. NOW YOU CAN SEE THE SYSTEM IN THE MIDDLE OF THE COUNTRY THERE'S A FAIR AMOUNT OF SHOWER AND THUNDERSTORM ACTIVITY WITH THAT SYSTEM AS IT MOVES THROUGH THE MISSOURI VALLEY CENTRAL MISSISSIPPI VALLEY OVER THE NEXT TWENTY FOUR HOURS OR SO IT'S HOT AND HUMID BASICALLY FROM THE MID ATLANTIC STATES ALL AWAY INTO THE SOUTHERN PORTIONS OF THE COUNTRY.
REGIONAL WEATHER:
THAT'S A LOOK CROSS COUNTRY NOW LET'S TAKE A LOOK AT SOME LOCAL FORECASTS FOR PROVO UTAH TODAY PLENTY OF SUNSHINE AND HOT HIGH TEMP OF NINETY THREE DEGREES .MITCHELL SOUTH DAKOTA WARM IN HERE WITH LOTS OF SUNSHINE HIGH OF EIGHTY SIX. AND TUPELO MISSISSIPPI GOOD DEAL OF SUNSHINE HOT AND HUMID BEHIND NINETY FIVE DEGREES. NEXT MACHINERY PETE FINDS IMPRESSIVE PRICES ON TRACTORS IN KANSAS. STICK AROUND, WE'LL TELL YOU ABOUT THE LATEST DEALS. PLUS, AS NEW DRONE RULES TAKE FLIGHT....FIND OUT HOW ONE FARMER IS USING THE TOOL TO FIND THE TINIEST BREAK IN AN IRRIGATION LINE.
MACHINERY PETE:

MACHINERY TRAVELED TO KANSAS RECENTLY WHERE HE FOUND A REALLY GOOD DEAL ON ONE TRACTOR....AND AN EXCEPTIONAL PRICE ON ANOTHER. PETE JOINS US FROM HIS HOME OFFICE TO SHARE HIS FINDINGS. WELL FOLKS THE THING ABOUT AUCTIONS OF COURSE IS EVERY SALE THERE'S ALWAYS SOMETHING THAT SELLS HIGH AND SOMETHING THAT'S A VERY GOOD BARGAIN NOW CASE IN POINT WAS A RECENT FARM AUCTION IN CENTRAL KANSAS BACK ON AUGUST EIGHTEENTH AND I TALKED ABOUT THIS COMBINE LAST WEEK A NINETEEN EIGHTY EIGHT JOHN DEERE SEVENTY SEVEN TWENTY TITAN 2 THIRTY ONE HUNDRED DOLLARS SOLD WITH A NINE TWENTY TWO HEADER BROUGHT THIRTY FIVE THOUSAND BUCKS VERY STRONG SALE PRICE THERE BUT ON THE SAME FARM AUCTION THIS TWENTY FOURTEEN JOHN DEERE NINETY THREE SIXTY R FOUR WHEEL DRIVE SIX HUNDRED FORTY FIVE HOURS BAREBACK SOLD FOR ONE HUNDRED FORTY THOUSAND BUCKS NOW THAT'S A FAIRLY GOOD BUY IN FACT THAT'S THE LOWEST AUCTION PRICE OF EVER SEEN A NINETY THREE SIXTY R SO TWO THINGS HERE FOLKS. THE OLDER CONDITION EQUIPMENT IN VERY GOOD CONDITION HOLDING ITS VALUE VERY WELL AND ON A LATE MODEL SIDE IT'S STILL A TREMENDOUS OPPORTUNITY RIGHT NOW HERE DOWN THE HOME STRETCH IN TWENTY SIXTEEN TO BE LOOKING TO UPGRADE INTO LATE MODEL USED.
TEASE:
NEXT ON AGDAY -FIND OUT HOW DRONE TECHNOLOGY IS HELPING TO SAVE THOUSANDS OF GALLONS OF FARM WATER IN WATER DEPRIVED CALIFORNIA.
IN THE COUNTRY:
UNMANNED AERIAL VEHICLES, U-A-V'S, OR DRONES HAVE TAKEN THE COUNTRY BY STORM. SO MUCH SO THAT THE F-A-A BUILT A REGISTRY AND SET GUIDELINES FOR THEIR USE. BUT STARTING THIS WEEK IT'S EASING SOME RESTRICTIONS. CHANGES THAT COULD HAVE BIG BENEFITS FOR THE FUTURE OF THE INDUSTRY. IN THE DROUGHT-STRICKEN WEST, WHERE EVERY DROP OF WATER COUNTS, ADVANCED DRONE TECHNOLOGY IS HELPING SOME CALIFORNIA FARMERS SAVE THE SCARCE RESOURCE. "THE DROUGHT'S BEEN A HUGE DEAL AND IT'S DRIVEN US TOWARDS THE EFFICIENCY ANGLE JUST AS MUCH AS WE CAN. WE INVEST IN THESE REALLY EXPENSIVE DRIP SYSTEMS THAT SAVE US 40 TO 50 PERCENT ON THE WATER THAT WE USED TO USE.
CLOSING:
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN. FOR MIKE HOFFMAN, AND ALL OF US AT AGDAY. I'M CLINTON GRIFFITHS. HAVE A GREAT DAY.
PROMO:
I'M CLINTON GRIFFITHS. WEDNESDAY ON AGDAY -AS WHEAT PRICES STRUGGLE, WE'LL REPORT ON WHAT IT'LL TAKE TO TURN THOSE PRICES AROUND. PLUS, WE CHECK ON WHEAT HARVEST IN THE NORHTERN PLAINS. AND NEWS FROM OUR PARTNERS AT THE PACKER. WATCH US WEEKDAYS HERE ON AGDAY.

 

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