AgDay Daily Recap -May 20, 2016

May 20, 2016 02:57 AM
 

TODAY ON AGDAY
MAY 20, 2016


OPENING HEADLINES:
COMING UP TODAY ON AGDAY -THE RURAL ECONOMY CAPTURES THE ATTENTION OF SENATORS IN WASHINGTON. PLUS, AN UPDATE ON ANOTHER POTENTIAL MEGA-MERGER. IN AGRIBUSINESS...A OLD STORY IS NEW AGAIN...EVERYBODY WAS SO FOCUSED ON CHINA BUT WHAT ABOUT INDONESIA WHAT ABOUT MALAYSIA. A GREAT AMERICAN BARN FROM TOBACCO COUNTRY IN INDIANA. AND THIS LIVESTOCK OWNER'S FENCE IS MAKING THE GRADE FOR USING UNIQUE MATERIALS.
RURAL MAIN STREET INDEX SHOWS AG ECONOMY SUFFERING:
GOOD MORNING I'M CLINTON GRIFFITHS. FROM THE NATION'S CAPITOL TO AMERICA'S HEARTLAND, THE BUMPY FARM ECONOMY TAKES CENTER STAGE. PRODUCED MONTHLY BY CREIGHTON UNIVERSITY, THE RURAL MAINSTREET INDEX HELPS TRACK THE GENERAL HEALTH OF THE AG ECONOMY IN TEN KEY STATES. THE R-M-I HAS REMAINED BELOW THE BENCH MARK OF "GROWTH NEUTRAL" FOR NINE STRAIGHT MONTHS. BUT THERE WAS A SLIGHT IMPROVEMENT FROM APRIL. THE R-M-I SHOWS FARM EQUIPMENT SALES SANK EVEN FURTHER, BROUGHT ON BY WEAK FARM INCOMES AND GRAIN PRICES. A THIRD OF THE BANKERS SURVEYED FOR THIS REPORT SAY SLOW OR NEGATIVE RURAL GROWTH IS THE BIGGEST ECONOMIC THREAT TO THEIR BANK OVER THE NEXT FIVE YEARS.
SENATE AG COMMITTEE HOLDS HEARING:
THE SENATE AG COMMITTEE HOLDING A HEARING ON THE FARM CREDIT SYSTEM AND THE OVERALL HEALTH OF THE RURAL ECONOMY. CHAIRMAN PAT ROBERTS SAYS IT'S BEEN 10 YEARS SINCE THE BANKING INDUSTRY AND FARM CREDIT APPEARED IN FRONT OF THE COMMITTEE. MEMBERS OF THE BOARD TESTIFYING THAT DESPITE THE CHALLENGING FACING FARMERS, THE LENDING SYSTEM IS WELL POSITIONED TO WITHSTAND THE DOWNTURN IN THE ECONOMY. THE PANEL SAYS THERE'S A BIG DIFFERENCE BETWEEN THE CHALLENGES NOW AND THE STRUGGLES IN 1980'S.
TPP:
THEY SAY INTEREST RATES ARE LOWER, THE SYSTEM IS WELL CAPITALIZED AND BALANCE SHEETS ARE IN A BETTER POSITION TO WITHSTAND A DOWNTURN. NUMEROUS AG GROUPS ARE APPLAUDING THE ANALYSIS OF THE TRANS PACIFIC PARTNERSHIP TRADE DEAL BY THE INTERNATIONAL TRADE COMMISSION, THE I-T-C REPORT FOCUSES ON LIKELY IMPACTS IF THE T-P-P IS APPROVED. THE COMMISSION SAYS T-P-P WOULD HAVE POSITIVE EFFECTS, ALTHOUGH SMALL COMPARED TO THE OVERALL SIZE OF THE U-S ECONOMY. IT ESTIMATES U-S EXPORTS WOULD BE 27 BILLION DOLLARS HIGHER ANNUALLY ONCE THE DEAL IS FULLY IMPLEMENTED IN 15 YEARS. THE I-T-C SAYS AGRICULTURE AND FOOD SECTORS WOULD SEE THE GREATEST GAIN. AS EXAMPLES, I-T-C SAYS BEEF EXPORTS WOULD INCREASE BY 876 MILLION DOLLARS ANNUALLY. POULTRY EXPORTS COULD JUMP 175-MILLION DOLLARS.
POTENTIAL MEGA MERGER BETWEEN BAYER AND MONSANTO:
AN UPDATE OVERNIGHT ON A POTENTIAL MEGA MERGER WITH AGRICULTURE-BAYER CONFIRMING IT HAS MADE AN UNSOLICITED TAKEOVER PROPOSAL TO MONSANTO. TOGETHER THE TWO COMPANIES WOULD CREATE THE WORLD'S LARGEST AGRICULTURAL SEEDS AND PESTICIDES COMPANY. MONSANTO'S BOARD CONFIRMS THEY ARE REVIEWING THE OFFER...ALTHOUGH ITS GIVEN NO INDICATION OR REACTION TO THE BID. EARLIER IN THE WEEK, NEWS OUTLETS REPORTED THAT B-A-S-F WAS ALSO CONSIDERING AN OFFER. REGARDLESS, THE DEAL IS LIKELY TO BE EVEN LARGER THAN CHEM CHINA SYNGENTA DEAL WHICH CAME IN AT 43 BILLION DOLLARS. SPEAKING OF SYNGENTA--SHAREHOLDERS HAVE MORE TIME TO MULL OVER THAT $43 BILLION TAKEOVER BID FROM STATE-OWNED CHEMCHINA, THE DEADLINE TO ACCEPT THE BID WAS EXTENDED THIS WEEK, AS SYNGENTA
USDA TO REVIEW DEAL:
EARLIER THIS WEEK, WORD USDA WILL JOIN A REVIEW OF THE DEAL BY THE U.S. TREASURY DEPARTMENT. U.S. LAWMAKERS REQUESTED USDA BE PART OF THE REVIEW TO BETTER ASSESS THE IMPACT OF THE TRANSACTION ON DOMESTIC FOOD SECURITY.
DROUGHT MONITOR:
OUT IN THE COUNTRYSIDE, TAKE A LOOK AT THE LATEST DROUGHT OUTLOOK FROM NOAA. IT'S SHOWS DROUGHT PERSISTING AND GAINING OUT ON THE WEST COAST THROUGH ARIZONA. WHILE DROUGHT IMPROVES IN NEW MEXICO AND THE SOUTHEAST. OVERALL, LARGE PARTS OF THE COUNTRY APPEAR TO BE HEADED RELATIVELY NEUTRAL GROWING SEASON. WINTER AND SPRING RAINS HELPING PARTS OF CALIFORNIA TURN GREEN THIS YEAR. NOW THE STATE PLANS TO LOOSEN SOME ITS WATER USAGE RESTRICTIONS. LOCAL WATER DISTRICTS GIVEN THE AUTHORITY TO SET THEIR OWN CONSERVATION TARGETS BASED ON WATER SUPPLIES AND DEMAND. PARTS OF NORTHERN CALIFORNIA HAS SEEN AMPLE RAIN AND SNOW FALL HELPING TO REPLENISH RESERVOIRS. WHILE DOWN SOUTH THE DROUGHT CONTINUES.
CROP COMMENTS:
WE HAVE CROP COMMENTS THIS MORNING FROM THE WOLVERINE STATE TO THE PEACH STATE. HERE'S MIKE HOFFMAN. GOOD MORNING CLINTON. A HAILSTORM THAT HIT SOUTH GEORGIA TWO WEEKS AGO HAS LEFT MANY WATERMELON FIELDS DAMAGED. GEORGIA IS ONE OF THE TOP WATERMELON PRODUCERS IN THE COUNTRY. GEORGIA'S COOPERATIVE EXTENSION ESTIMATES 400 ACRES WERE HIT. ACCORDING TO OUR PARTNERS AT "AG PRO" SOME GROWERS WERE FORTUNATE TO HAVE UN-DEVELOPED FRUIT SETS THEREFORE DAMAGE WAS MINIMAL. BUT FARMERS WITH HEAVY FRUIT SETS WILL HAVE UN-MARKETABLE FRUIT. FROM OUR COUSINS AT AGWEB, WE HEARD FROM A FARMER IN BRANCH COUNTY, MICHIGAN.
TEASE:
WE TALK A LOT ABOUT THE IMPACT CHINA HAS ON AMERICAN AGRICULTURE. NEXT IN AGRIBUSINESS, WE'LL DISCUSS SOME OFTEN OVERLOOKED, BUT NO LESS IMPORTANT, MARKETS ALSO IN SOUTHEAST ASIA, WE'LL TAKE YOU INSIDE THIS SMALL BARN IN DOWNSTATE INDIANA TO SEE HOW IT'S KEEPING TRADITION ALIVE... AND WE'LL BE HEADED IN THE COUNTRY TO NORTH DAKOTA WHERE WE MEET THE CREATOR OF THIS "GRADE A" FENCE. THE MATERIALS HE USED MAY JUST "PLOW" YOU OVER....
FROM THE FLOOR OF THE CME:
GRAINS WERE WEAKER OVERNIGHT AS THE U.S. DOLLARS CONTINUES TO SHOW STRENGTH. IT'S NOW HIT ITS HIGHEST MARK SINCE MARCH 23RD. THE RALLY ON NEWS THE FEDERAL RESERVE COULD RAISE INTEREST RATES IN JUNE IF ECONOMIC DATA POINTS TO STRONGER SECOND-QUARTER GROWTH. SO LETS SEE HOW COMMODITIES FAIRED ON THURSDAY. FOR THAT WE TURN TO THE FLOOR OF THE CME IN CHICAGO. UNFORTUNATELY I WISH I HAD A LITTLE BIT MORE NEWS. GRAINS TRADING DOUBLE DIGIT LOSSES ACROSS THE BOARD. CORN, SOYBEANS, WHEAT ALL SEEING A LOT OF PRESSURE COME UPON THEM. I THINK A LOT OF THIS IS DUE THE STRONGER U.S. DOLLAR. THIS HAS BEEN OLIVER SLOUP WITH II TRADER HERE ON THE FLOOR OF THE CME.
AGRIBUSINESS:
JOINING US HERE AT THE AGRIBUSINESS DESK WE GOT THE EDITORIAL DIRECTOR OF PRO FARMER IN THE HOUSE, CHIP FLORY. GOOD TO SEE YOU. GOOD TO SEE YOU. LET'S TALK ABOUT SOME OF THESE STORIES THAT JUST KEEP COMING BACK. OLD STORIES, NEW CHAPTER. YOU WERE TELLING ME THAT MAYBE ASIAN DEMAND IS ONE OF THOSE. WHILE YOU KNOW YOU LOOK AT ALL OF BIG PRESENTATIONS OVER THE LAST FEW YEARS HAVE ALL BEEN SO FOCUSED ON THE NINE BILLION PEOPLE BY TWENTY FIFTY. RIGHT RIGHT. I THINK YOU GOT TO THE POINT THAT THE MARKET, FARMERS, ANALYSTS, EVERYBODY GOT SO TIRED OF TALKING ABOUT IT ON A REGULAR BASIS.
NATIONAL WEATHER:
WELCOME BACK TO AGDAY HERE WITH METEOROLOGIST MIKE HOFFMAN. TAKING A LOOK AT THE DROUGHT MONITOR MIKE AND IT CONTINUES TO BE DRY IN THE WESTERN PART OF THE COUNTRY. BUT IT'S BETTER THROUGHOUT THE MIDDLE OF THE COUNTRY. YEA, IT REALLY ISN'T ISN'T BAD AT LEAST DRYNESS IS IN THE WORST PROBLEM AS WE SAW IN CROP WATCH. MOISTURE HAS BEEN A PROBLEM IN PARTS OF THE COUNTRY. BUT AS YOU CAN SEE THE DROUGHT MONITOR VERY FEW ISSUES WITH DRYNESS THROUGH THE PLAINS STATES, THROUGH THE MIDDLE OF THE COUNTRY, THE ONLY REAL ISSUE THAT'S DEVELOPING IS IN THE SOUTHEAST MAINLY NORTHERN GEORGIA AND SOME OF THE SURROUNDING AREAS.
REGIONAL WEATHER:
THAT'S A LOOK ACROSS THE COUNTRY NOW LET'S TAKE A LOOK AT SOME LOCAL FORECASTS. WE'LL GO TO TWIN FALLS IDAHO FIRST OF ALL A RATHER CHILLY WITH A SHOWER OR THUNDERSTORM HIGH OF FIFTY SIX. TAKING A LOOK AT MUSKOGEE OKLAHOMA MIXTURE OF SUN SHINING CLOUDS HIGH TEMPERATURE OF SEVENTY FOUR AND FINALLY ALBANY NEW YORK MOSTLY SUNNY AND VERY NICE HIGH OF SEVENTY FIVE.
TEASE:
 UP NEXT A HISTORIC GREAT AMERICAN BARN FROM TOBACCO COUNTRY IN SOUTHERN INDIANA. WE'LL TAKE A CLOSER LOOK AFTER THE BREAK. AND LATER, MEET A NORTH DAKOTA RANCHER WHO KNOWS HOW TO BUILD A FENCE THAT WILL STAND THE "TEST OF TIME".
GREAT AMERICAN BARNS:
TODAY'S GREAT AMERICAN BARN PAYS TRIBUTE TO A CROP THAT ONCE WAS VITAL TO AMERICAN AGRICULTURE. BUT IT HAS SINCE FALLEN OUT OF FAVOR. THIS TOBACCO BARN -LOCATED IN DEPUTY, INDIANA -WAS BUILT IN 1900. IT'S NOW OWNED BY WILLIAM SIGMAN. IT SITS ON A TREE FARM IN SOUTHEASTERN JENNINGS COUNTY. BUT IT'S STILL USED TO DRY TOBACCO GROWN IN THAT AREA. ACCORDING TO THE INDIANA BARN FOUNDATION, THIS BARN WAS BUILT SPECIFICALLY FOR THE DRYING OF TOBACCO. OUR THANKS TO THE INDIANA BARN FOUNDATION FOR POINTING OUT THIS GREAT AMERICAN BARN.
SOUTH STRUGGLING WITH FLOOD CONDITIONS:
FROM BARNS TO BEEF, IT'S BEEN A CHALLENGING START FOR MANY CATTLEMEN AND WOMEN. FLOODS AND OVERCAST CONDITIONS HAVE HAMPERED FORAGE GROWTH ACROSS...ALL WHILE PRICES FALL. CRAIG GAUTREAUX WITH THE LSU AGCENTER REPORTS. LOUISIANA'S BEEF INDUSTRY RELIES ON THE PRODUCTION OF FORAGE GRASSES TO FEED AND MAINTAIN CATTLE. THIS SPRING, BEEF PRODUCERS HAVE SEEN MORE THAN THEIR SHARE OF RAINY AND OVERCAST DAYS, LEAVING MANY PASTURES IN POOR CONDITION. OUR WHOLE INDUSTRY IS BUILT ON FORAGE CROPS. WE DON'T DO A LOT OF FEEDING SUPPLEMENTS, GRAINS AND THOSE TYPE OF THINGS. WE'RE DEPENDENT UPON THAT FORAGE.  WITH THE LSU AGCENTER, THIS IS CRAIG GAUTREAUX REPORTING.
TEASE:
WHAT DO COUNTY ROAD GRADERS, CATTLE AND LIVESTOCK FENCING HAVE IN COMMON? THE ANSWER WHEN AGDAY CONTINUES.
IN THE COUNTRY:
FARMERS AND RANCHERS USE SOME INGENUITY WHEN IT COMES TO DESIGNING CLEVER WAYS TO CORRAL THEIR LIVESTOCK. . .OR JUST KEEP SOMEONE OFF THEIR PROPERTY. YOU MAY REMEMBER THIS NORTH DAKOTA FELLA WHO USED LARGE CABLE SPOOLS TO LINE HIS LAND. THE SPOOLS ARE LEFT OVER BY UTILITY COMPANIES WHO'VE BEEN TRYING TO KEEP UP WITH NEW ENERGY NEEDS AS A RESULT OF THE OIL BOOM. NOT TO BE OUTDONE....A RETIRED RANCHER IN FORTUNA, NORTH DAKOTA IS MAKING THE "GRADE" -SO TO SPEAK -WITH HIS CLEVER CORRAL. AS YOU MIGHT EXPECT, OUR FRIEND CLIFF NAYLOR HAS THE STORY.
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 -MONDAY ON AGDAY -AS WINTER WHEAT HARVEST QUICKLY APPROACHES, WHERE DO WE STAND IN THE MARKETS? WHERE IS THE PORK SECTOR HEADING THE REST OF THIS YEAR? AND MACHINERY PETE HAS THE LATEST DEALS ON USED FARM EQUPMENT. WATCH US WEEKDAYS ON AGDAY.

 

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