AgDay Daily Recap -June 20, 2016

June 20, 2016 02:57 AM
 

TODAY ON AGDAY
JUNE 20, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY -USDA EXPECTS BIG PAYMENTS FOR FARMERS IN 2016. PLUS, THE DAIRY BOOM IN SOUTH DAKOTA..."I'M MICHELLE ROOK. DAIRY PRODUCERS HAVE RAMPED UP MILK PRODUCTION IN THE STATE OF SOUTH DAKOTA CREATING A NEED FOR ADDITIONAL PROCESSORS.  I'LL HAVE THE STORY TODAY ON AGDAY. "
I'M TYNE MORGAN, WHAT'S THE BIGGEST MISTAKE YOUNG FARMERS MAKE IN SUCCESSION PLANNING? THAT'S COMING UP ON AGDAY. IN ARIBUSINESS...COULD A FLASH DROUGHT DRIVE MARKETS HIGHER?  SURE ANYTHING IS POSSIBLE I THINK 5 DOLLAR IS A REALITY ANY YEAR THAT WE HAVE WEATHER ISSUES IN JULY MACHINERY PETE SAYS CORN HEADER PRICES ARE DOWN BUT STABILIZING. AND THE ICONIC CRITTER OF TASMANIA IS UNDER ATTACK.
MAJORITY OF YEAR’S FARM PAYMENTS WILL GO TO SAFETY NET PROGRAMS:
GOOD MORNING I'M CLINTON GRIFFITHS. EVEN WITH THE HEAT OF SUMMER STILL TO COME, USDA IS FORECAST A BIG YEAR FOR FARM PAYMENTS. FRESH NUMBERS FROM USDA SHOW IT'S EXPECTING FARM PAYMENTS TO BE 31 PERCENT HIGHER IN 2016. IT'S FORECASTING A NEAR 14-BILLION DOLLAR BILL THIS YEAR. THE LARGEST PIECE OF THE PIE--IN TERMS OF PAYMENTS-- WILL GO TO THE P-L-C AND A-R-C PROGRAMS. --WHICH TOGETHER ARE EXPECTED TO ACCOUNT FOR MORE THAN $9 BILLION DOLLARS.THE MAJORITY OF ARC PAYMENTS ARE PAID TO FARMS WITH A HISTORY OF CORN PRODUCTION, FOLLOWED BY WHEAT AND SOYBEANS. PLC PAYMENTS TEND TO GO TO FARMS WITH A HISTORY OF LONG-GRAIN RICE, PEANUTS, AND CANOLA PRODUCTION.
DAIRY STRUGGLE, SOME FORCED TO DUMP MILK:
SOME OF THOSE PAYMENTS CREEPING INTO THE DAIRY INDUSTRY AS THEY STRUGGLE WITH TIGHT MARGINS...AMID LOW PRICES AND HIGH PRODUCTION. USDA WILL RELEASE MAY MILK PRODUCTION TOMORROW. IN APRIL AVERAGE DAILY PRODUCTION INCREASED MORE THAN A PERCENTAGE POINT--A REFLECTION OF A GROWING COW HERD AND RISING PER COW PRODUCTION.SOME PARTS OF THE COUNTRY HAVE ALREADY REPORTED DUMPING MILK BECAUSE THEY DIDN'T HAVE A MARKET.
DAIRY PRODUCTION SURGES IN SOUTH DAKOTA:
ONE OF THE STATES WITH SURGING PRODUCTION IS SOUTH DAKOTA. AFTER NEARLY 30 YEARS OF WORK, THE STATE HAS SUCCESSFULLY ATTRACTED DAIRIES FROM PLACES LIKE CALIFORNIA, HOLLAND AND DENMARK.  THE I-29 CORRIDOR AND THE STATE OF SOUTH DAKOTA HAS BEEN A REAL SUCCESS STORY WHEN IT COMES TO DAIRY EXPANSION."WATCHING IT TEN YEARS AGO TO ONLY 80,000 COWS IN OUR STATE….WE'RE AT 114, 000 COWS TODAY." SOME OF THE GROWTH HAS COME FROM NEW DAIRIES, BUT THERE HAS ALSO BEEN INTERNAL GROWTH. OPERATIONS LIKE MODAK DAIRY GREW FROM JUST 100 COWS TO OVER 2,000 IN THEIR CURRENT HERD. SO AFTER YEARS OF DAIRY RECRUITMENT AND EXPANSION, SOUTH DAKOTA IS NOW EXPERIENCING A MILK SURPLUS….
AS A RESULT, THE DAIRY INDUSTRY AND THE STATE, LED BY GOVERNOR DAUGAARD, ARE WORKING WITH EXISTING PROCESSORS TO ENCOURAGE EXPANSION, BUT THEY'RE ALSO COURTING NEW PROCESSORS. I'LL LOOK AT THAT THOSE EFFORTS TOMORROW. IN SOUTH DAKOTA, I'M MICHELLE ROOK REPORTING FOR AGDAY.
GMO LABELING LAW GOES INTO EFFECT IN VERMONT:
THANKS MICHELLE.
IN LESS THAN TWO WEEKS VERMONT'S NEW ANTI-GMO LABELING LAW GOES INTO EFFECT. BUT IN REALITY, THERE'S ONLY A HANDFUL DAYS LEFT IN CONGRESS TO GET ANY MEASURE IN PLACE TO CIRCUMVENT THAT LAW. THE LAW GOES INTO EFFECT ON FRIDAY JULY FIRST. BUT THE HOUSE OF REPRESENTATIVES IS ONLY SCHEDULED TO WORK FOUR DAYS THIS WEEK BEFORE TAKING THEIR JULY 4TH RECESS. MANY FOOD MAKERS AND AG GROUPS HAVE WARNED THERE COULD BE CHAOS IN THE MARKETPLACE IF A SINGLE STATE IS ALLOWED TO DICTATE FOOD LABELS.
TOP PRODUCER:
DAIRY PRODUCERS AND MANY OTHER YOUNG FARMERS SPENT LAST WEEK IN NASHVILLE AT THE TOMORROW'S TOP PRODUCER SEMINAR. DURING THE TWO DAY EVENT-- FUTURE LEADERS IN THE AG INDUSTRY LEARNED ABOUT A VARIETY OF TOPICS. TYNE MORGAN WAS ON HAND AND JOINS US WITH A LOOK AT ONE OF THE ISSUES TOP OF MIND. THANKS SO MUCH, CLINTON. WELL, DURING TOMORROW'S TOP PRODUCER SEMINAR IN NASHVILLE, TENNESEEE, I TALKED TO SUCCESSION PLANNER, AND HE SAYS EVEN THOUGH IN AGRICULTURE, WE HAVE A LOT OF MULTIGENERATIONAL FARMS, MOST OF THE TIME, FARMERS ARE ACTUALLY BEHIND THE CURVE IN SUCCESSION PLANNING, TO ENSURE THAT NEXT GENREATION IS THERE TO FARM.
CROP COMMENTS:
CROP COMMENTS TODAY, SHOWS SUMMER WORK IS WELL UNDERWAY. MIKE HOFFMAN JOINS US THIS MORNING WITH A COUPLE OF EXAMPLES. GOOD MORNING, CLINTON. LET'S START OFF IN NORTHWEST IOWA..MATT ESSICK SAYS THERE IS MORE VARIABILITY THIS YEAR DUE TO A COOL AND WET SPRING.. BUT THE CROP IS TAKING OFF THANKS TO RECENT WARMER TEMPERATURES. MATT SAYS THE AREA RECEIVED SOME MUCH NEEDED RAIN BUT UNWELCOMED HAIL!MOVING OVER TO ILLINOIS,CORY RITTER IS SIDE DRESSING CORN IN CENTRAL ILLINOIS.. USDA RELEASES ANOTHER CROP PROGRESS REPORT THIS AFTERNOON.
TEASE:
WHEN WE COME BACK, WE'LL CHECK ON THE WEATHER SITUATION AND IT'S POTENTIAL TO MOVE MARKETS OVER THE NEXT THREE MONTHS. PLUS MACHINERY PETE IS HERE. STAY TUNED FOLKS COMING UP WE’RE GOING TO TALK 12 ROW CORN HEADS. AND LATER - WHAT DO YOU ENVISION WHEN YOU HEAR THE PHRASE TASMANIAN DEVIL? IS IT THAT CARTOON CHARACTER OR THE REAL THING? THE FURRY CREATURE IS IN TROUBLE. DETAILS WHEN WE HEAD IN THE COUNTRY.
FROM THE FLOOR OF CME:

IN AGRIBUSINESS LETS SEE HOW MARKETS ENDED THE WEEK. FOR THAT WE HEAD TO THE FLOOR OF THE CME IN CHICAGO. LOOKS LIKE THE WEATHER'S PROBABLY GONNA BE ONE OF THE BIGGEST FACTORS. LET'S START WITH SOYBEANS. WE HAD STRONG SALES IN EXPORTS AGAIN THIS WEEK. THE FUNDS WERE SELLING EARLIER IN THE WEEK BUT WE'VE GOT A GOOD BOUNCE UP IN THE A.M. AGAIN LIKE I WAS SAYING. IT LOOKS LIKE THE BUYERS ARE COMING BACK. IN ONE OF THE ISSUES THAT EVERYBODY'S LOOKING AT IS THAT WEATHER PREMIUM AND IT LOOKS LIKE THAT'S GONNA PLAY OUT FROM JULY TO SEPTEMBER, SO WE'RE GOING TO BE LOOKING FOR SOME VERY CHOPPY TIMES. THIS IS GARY KOZLOWSKI WITH FARR FINANCIAL COMING TO YOU FROM THE CME.
AGRIBUSINESS:
THE GRAIN MARKETS ARE ALL ABOUT WEATHER RIGHT NOW - AND IF THE LATEST LONG-TERM PROJECTION IS TRUE, WE COULD SEE SOME ACTION THIS SUMMER. THE CLIMATE PREDICTION CENTER SAYS THE CORN BELT COULD SEE A "FLASH DROUGHT" OVER THE SUMMER. THE C- P-C'S THREE MONTH OUTLOOK SHOWS TEMPERATURES ACROSS THE U-S MAY BE HIGHER THAN NORMAL.THE ONLY SPOT IN THE COUNTRY WITHOUT ABOVE NORMAL TEMPS IS THAT WHITE SPOT IN SOUTHEAST TEXAS. THE ABOVE-NORMAL TEMPERATURES MAY COMBINE WITH A DROP IN RAINFALL FROM NEBRASKA IN THE WEST TO OHIO IN THE EAST.TYNE MORGAN JOINS US THIS MORNING FROM THE ROAD WITH MORE ON WEATHER MADE MARKETS. WELCOME BACK HERE NOW WITH BRIAN A SPLIT OF ALAN DALE RYAN A LOT OF TALK ABOUT THE WEATHER ABOUT THE WEATHER MARKET HOW BULLISH IT COULD BE FOR PRICES COULD WE SEE FIVE DOLLARS CORN?SURE ANYTHING'S POSSIBLE I THINK FIVE DOLLARS CORN IS A REALITY ANY YEAR THAT WE HAVE WEATHER ISSUES IN JULY SO JULY AND THE USDA ACKNOWLEDGED A COUPLE YEARS AGO THAT NINETY PERCENT OF THEIR YIELD MODEL WAS BASED ON JULY WEATHER SO WE'RE GONNA COME UP TO A VERY IMPORTANT TIME WHERE WE MAKE OR BREAK THIS CROP AND RIGHT NOW NOAH HAS A FORECAST RELEASED TODAY THAT HAS JULY BEING ABOVE AVERAGE TEMPERATURES ONE THING WE ARE TO SET A STANDARD FOR IS THAT THEACTUAL TEMPERATURES FOR JUNE HAVE BEEN HOTTER THAN WHAT NOAA HAD FORECAST NOAA SAID THAT JUNE WAS ACTUALLY GOING TO BE BELOW AVERAGE THAT'S NOT THE CASE SO LOOKING AHEAD

NATIONAL WEATHER:
WELCOME BACK TO AGDAY ON THIS MONDAY MORNING METEOROLOGIST MIKE HOFFMAN HERE. MIKE WE'VE BEEN TALKING ABOUT THE WEATHER AND SOME OF THE DRYNESS IN DIFFERENT PARTS OF THE COUNTRY WHAT DO YOU SEE THIS CARRING ON OR DO WE KNOW YET. YOU KNOW I AM CONCERNED ABOUT IT AND SEE MY WEEKLONG FORECAST I'M GOING BELOW NORMAL FOR A GOOD CHUNK OF THE CORN BELT WERE ALREADY STARTING TO SEE SOME DRY POCKETS SHOWING UP ON THE DROUGHT MONITOR. OBVIOUSLY CENTRAL AND SOUTHERN CALIFORNIA THE WORST AREA BUT WE HAVE SEEN THAT ACTUALLY EXPAND OVER THE PAST WEEK OUT WEST AS WELL AS SOUTHERN ARIZONA IN THE SOUTHEAST HAS BEEN EXPANDING AND AGAIN WE'RE STARTING TO SEE THAT SEE THOSE POCKETS OF DRYNESS SHOWING UP ON THE COURT ALSO FOUR WEEKS AGO YOU CAN SEE WHERE WE WERE IN FACT WE WERE WET IN MANY PARTS OF THE CORN BELT AS WE GO THROUGH THE LAST FOUR WEEKS YOU CAN SEE HOW IT GETS WORSE IN THE SOUTHEAST AND JUST ALL OF A SUDDEN IN THE LAST WEEK WE'RE STARTING TO SEE 
REGIONAL WEATHER:
THAT'S A LOOK ACROSS THE COUNTRY NOW LET'S TAKE A LOOK AT SOME LOCAL FORECASTS. WE HEAD TO SANTA BARBARA CALIFORNIA FIRST OF ALL MOSTLY SUNNY AND RATHER WARM HIGH OF EIGHTY EIGHT DEGREES. CORPUS CHRISTI TEXAS PARTLY SUNNY MAYBE A THUNDERSTORM HIGH OF NINETY ONE AND MYRTLE BEACH SOUTH CAROLINA PLENTY OF SUNSHINE AND PLEASANT AFTERNOON HIGH EIGHTY FIVE.
TEASE:
IT'S NOT HARVEST SEASON BUT IN JUST A FEW MONTHS COMBINES WILL BE RUNNING FOR MAJOR ROW CROPS. MACHINERY PETE JOINS US NEXT WITH A LOOK AT LATE MODEL CORN HEADER PRICES. AND ONE OF THE MARQUEE CRITTERS OF AUSTRALIA IS FACING AN UN-CERTAIN FUTURE. WE'LL TELL YOU WHAT THEIR GOVERNMENT IS DOING TO PRESERVE THE "TAZ".
MACHINERY PETE:
LARGE LATE MODEL USED EQUIPMENT TOOK A BIG HIT, PRICE WISE IN THE LAST YEAR OR SO, AS MARKETS TIPPED OVER. THIS MORNING GREG PETERSON SAYS NOT ALWAYS JUST THE MACHINE FEELING THE DEMAND DROP, BUT OFTEN THE ATTACHMENTS THAT GO WITH IT. GREG.
THIS WEEK FOLKS WE'RE GONNA TALK ABOUT JOHN DEERE SIX TWELVE C CORN HEADS AS AN EXAMPLE OF WHAT I'VE SEEN THE LAST THREE YEARS WITH THE USED VALUES ON A LARGE LATE MODEL EQUIPMENT NOW OBVIOUSLY A COMMODITY PRICES FELL BACK IN SPRING OF TWO THOUSAND THIRTEEN AND NOT SURPRISINGLY WOULD BEGAN TO SEE SOFTER AUCTION PRICES AGAIN PARTICULARLY LARGE LATE MODEL UNITS SOLD ACROSS THE COUNTRY 
TEASE:
WHEN WE COME BACK...HEAR ABOUT A PLAN TO PROTECT THESE FURRY "DEVILS" FROM TAKING A PATH THAT THREATENS THEIR VERY EXISTENCE.
IN THE COUNTRY:
FOR MANY OF YOU - IN A CERTAIN AGE GROUP - THIS LOONEY TUNES CARTOON IS ABOUT THE ONLY IMAGE YOU HAVE OF A TASMANIAN DEVIL.DESPITE IT'S WHIRLING AND CHOMPING, "TAZ" COULD NEVER GET THE UPPER HAND OVER BUGS BUNNY. IN REAL LIFE, TASMANIAN DEVILS ARE ACTUALLY ENDANGERED. SINCE THE 1990'S, THESE MARSUPIALS HAVE BEEN BATTLING A DEADLY DISEASE WHICH SEVERELY REDUCED THE POPULATION IN TASMANIA. THE GOVERNMENT STARTED A PROGRAM TO CAPTURE THE CRITTERS IN URBAN SETTINGS TO HELP BUILD-UP THE POPULATION.
CLOSING:
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN. FOR TYNE MORGAN AND MIKE HOFFMAN, I'M CLINTON GRIFFITHS. HAVE A GREAT DAY.

PROMO:
I'M CLINTON GRIFFITHS. TUESDAY ON AGDAY - WE SEE WHAT THE FASTEST GROWING DAIRY STATE IS DOING TO ATTRACT PROCESSORS TO SOUTH DAKOTA. PLUS, USDA PREPARES TO RELEASE A KEY ACREAGE REPORT. WE'LL EXAMINE THE "WHAT IFS".  CATCH US WEEKDAYS RIGHT HERE ON AGDAY.

 

 

 

 

 

 

 

 

 

 

 

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