AgDay Daily Recap - July 23, 2018

July 23, 2018 02:57 AM
 
AgDay

TODAY ON AGDAY
JULY 23, 2018

HEADLINES

PRESIDENT TRUMP UPS THE ANTE ON TARIFFS. HOW BIG IS THE NATION'S CATTLE HERD? WILDFIRES DEVOUR HARVEST-READY WHEAT. IN ANALYSIS....PREPARING FOR THE WEEK AHEAD. AND MACHINERY PETE SHARES HOW EMISSION STANDARDS HAVE CHANGED  AUCTION PRICES. AGDAY - BROUGHT TO YOU BY THE CHEVY SILVERADO, THE MOST DEPENDABLE, LONGEST-LASTING FULL  SIZE PICKUPS ON THE ROAD. 

TRUMP THREATENS MORE TARIFFS
GOOD MORNING I'M CLINTON GRIFFITHS. PRESIDENT TRUMP CONTINUES TO 'UP  THE ANTE' IN THE TRADE TUSSLE WITH CHINA. THE PRESIDENT THREATENED FRIDAY TO IMPOSE TARIFFS ON 500-BILLION  DOLLARS WORTH OF CHINESE IMPORTS INTO THIS COUNTRY. THE PRESIDENT TELLING BUSINESS CHANNEL CNBC THAT WAS WILLING "TO GO  TO 500" - MEANING 500 BILLION WHICH IS ROUGHLY THE VALUE OF ALL GOODS SHIPPED INTO THE U-S. THE U-S CURRENTLY CARRIES A 375-BILLION DOLLAR TRADE DEFICIT WITH CHINA"WE HAVE BEEN RIPPED OFF BY CHINA FOR A LONG TIME AND I TOLD THAT TO PRESIDENT XI. I SAID, 'HOW DID THIS EVER HAPPEN?' AND YOU KNOW WHAT THEIR ANSWER IS? BECAUSE I DEAL WITH THE  HIGHEST ECHELONS OF CHINA. ONE OF THE GREAT PEOPLE OF CHINA SAID, "THERE WAS NEVER  ANYBODY TO TALK TO IN THE UNITED STATES."TRUMP HAS ALREADY IMPOSED TARIFFS ON 34 BILLION DOLLARS IN CHINESE  GOODS. BEIJING HAS RETALIATED WITH TARIFFS ON AN EQUAL AMOUNT OF AMERICAN EXPORTS.. THE TWO COUNTRIES HAVE ALSO  TARGETED AN ADDITIONAL 16 BILLION OF EACH OTHER'S GOODS FOR AN EXPECTED SECOND  ROUND OF TARIFFS.  NATIONAL ECONOMIC COUNCIL HEAD LARRY KUDLOW TELLING AXIOS THAT CHINA  PRESIDENT  IS THE PROBLEM... SAYING HE DOESN'T WANT TO MOVE, AND  THEY'VE OFFERED THE U.S. ABSOLUTELY ... NO OPTIONS REGARDING THE ISSUE OF INTELLECTUAL PROPERTY THEFT AND FORCED TECHNOLOGY TRANSFER." FARM COUNTRY, ISN'T GETTING A LOT OF SYMPATHY FROM WHITE HOUSE TRADE  ADVISER PETER NAVARRO. NAVARRO, SAYING THE TRADE LOSSES DUE TO CHINA'S NEW TARIFFS AMOUNT TO  A "ROUNDING ERROR."  IOWA REPUBLICAN SEN. JONI ERNST WAS QUICK TO HIT BACK AGAINST  NAVARRO'S COMMENTS.  "OFFHAND COMMENTS LIKE THE ONES THAT MR. NAVARRO ... DISREGARD THE PEOPLE WHOSE LIVELIHOODS DEPEND ON GLOBAL TRADE," SHE SAID. "IN IOWA ALONE, MORE THAN 456,000 JOBS ARE SUPPORTED BY TRADE, AND  THESE NEW TARIFFS ARE THREATENING $977 MILLION IN STATE EXPORTS. THAT IS  NO 'ROUNDING ERROR.'" 

CATTLE ON FEED, MILK PRODUCTION
A BUSY DAY FRIDAY AT THE 'NASS' OFFICE AT USDA AS THE AGENCY UPDATES  SEVERAL KEY REPORTS, INCLUDING MILK PRODUCTION, CATTLE ON FEED AND  THE CATTLE INVENTORY REPORT. STARTING WITH INVENTORY - ALL CATTLE AND CALVES AS OF JULY FIRST THERE  ARE 103-MILLION HEAD IN THE COUNTRY. THAT'S ONE PERCENT HIGHER THAN LAST YEAR. USDA ALSO UPDATING NUMBERS FROM THE FEEDLOT. CATTLE AND CALVES ON FEED FOR THE SLAUGHTER MARKET TOTALLING 11- POINT-THREE MILLION HEAD. FOUR PERCENT HIGHER THAN A YEAR AGO. USDA SAYS THIS IS THE HIGHEST LEVEL SINCE THIS REPORT BEGAN IN 1996. PLACEMENTS DURING JUNE TOTALED NEARLY ONE-POINT-EIGHT <1.79> MILLION HEAD, ONE PERCENT ABOVE 2017. MARKETINGS OF FED CATTLE LAST MONTH ARE ALSO UP ONE PERCENT, COMING  IN AT TWO MILLION HEAD. DESPITE LOW PRICES, MILK PRODUCERS ARE STILL GENERATING A LOT MILK. MILK PRODUCTION IN THE 23 MAJOR STATES LAST MONTH WAS 17-POINT-TWO BILLION POUNDS, UP 1.3 PERCENT FROM A YEAR AGO. PRODUCTION PER COW REGISTERING 19-HUNDRED AND 64 POUNDS IN JUNE. THAT'S THE HIGHEST PER COW AVERAGE SINCE 2003. 

OREGON WILDFIRES
WILDFIRES IN OREGON HAVE GOBBLED-UP THOUSANDS OF ACRES OF HARVEST- READY WHEAT-FIELDS. THERE WAS A LOT OF PROMISE IN THE WINTER WHEAT  CROP THIS YEAR. LAST MONDAY'S CROP PROGRESS REPORT SHOWS 75- PERCENT OF THE CROP WAS GOOD-TO-EXCELLENT. RAIN AND COOL TEMPS THIS SPRING PUT EXTRA YIELD ON THE STALKS FOR SOME FARMERS, BUT IN THE PAST MONTH RAIN HAS BEEN SHORT AND HEAT TOO  HIGH. THURSDAY'S DROUGHT MONITOR IN OREGON SHOWS JUST FIVE PERCENT IS DROUGHT-FREE. 80-PERCENT IS IN MODERATE TO EXTREME DROUGHT. ALONG THE NORTHERN EDGE - WASCO COUNTY IS GROUND ZERO FOR WILDFIRES TEARING THROUGH WHEAT. 80 SQUARE MILES OF WHEAT AND GRASSLAND HAD BEEN DESTROYED BY WEEKS'  END....A FIRE THAT AUTHORITIES SUSPECT WAS INTENTIONALLY SET. OREGON FARMERS RUSHED TO NEIGHBORING FARMS TO HELP CUT FIRE-BREAKS IN FIELDS AND TO MAN WATER TANK-TRUCKS TO PROTECT THE CROPS.  THAT INCLUDED AGDAY ANALYST KEVIN DULING OF K-D INVESTMENT SERVICES  WHO FARMS IN WASCO COUNTY.  "THIS ONE WAS BAD BECAUSE IT HAPPENED AT 2 P.M. ON A 100 DEGREE DAY WITH 30 MPH WINDS,  AND IT WAS AN ARSON FIRE," SAID DULING. "THEY PUT IT RIGHT IN THE SPOT WHERE IT WOULD JUST CUT THE  WHEAT BELT – IT WAS JUST HORRIBLE. THIS ONE HAD SUCH SEVERE WIND SPEEDS AND LOW-HUMIDITY AND NO RECOVERY OF HUMIDITY AT NIGHT, AND SO IT WAS JUST A WORST-CASE SCENARIO."DULING ESTIMATES THAT WASCO COUNTY ALONE PROBABLY LOST TWO MILLION  BUSHELS OF WHEAT. THERE WERE AT LEAST 200 INDIVIDUAL FIRES ACROSS THE STATE OF OREGON. A FLURRY OF TORNADOES SWEPT THROUGH CENTRAL IOWA THURSDAY AFTERNOON, INJURING AT LEAST 17 PEOPLE, FLATTENING BUILDINGS IN THREE  CITIES AND FORCING THE EVACUATION OF A HOSPITAL. ONE TORNADO TOUCHING DOWN AND TEARING THROUGH SEVERAL BIG  BUILDINGS AT AGRICULTURAL MANUFACTURER VERMEER IN THE TOWN OF  PELLA . LEADERS SAY EMPLOYEES HAD TAKEN SHELTER BEFORE THE STORM HIT. THE TORNADO ROARED ONTO CAMPUS AS THE COMPANY WAS HOSTING AN ANNUAL EVENT WITH SOME 400 CUSTOMERS AND BUSINESSES FROM AROUND  THE WORLD. . THE STORM CAUGHT A LOT OF RESIDENTS OFF-GUARD. "SO, WE'VE NEVER HAD TO GO TO THE BASEMENT FOR ANYTHING. IT JUST KIND OF ALWAYS GOES AROUND US, BUT THIS TIME, NOT." "PRETTY MUCH LOST EVERYTHING EXCEPT THE HOUSE. BUT THE CATTLE WERE STILL HERE, THEY WERE  SPOOKED." HARDEST HIT APPEARED TO BE MARSHALLTOWN, A CITY OF 27,000 PEOPLE ABOUT 50 MILES NORTHEAST OF DES MOINES, WHERE BRICK WALLS COLLAPSED IN THE  STREETS, ROOFS WERE BLOWN OFF BUILDINGS AND THE CUPOLA OF THE  HISTORIC COURTHOUSE TUMBLED 175 FEET TO THE GROUND. THE J-B-S PORK PLANT IN MARSHALLTOWN WAS CLOSED FRIDAY AFTER IT  SUSTAINED SOME DAMAGE FROM THE STORM. 

CROP COMMENTS
TORNADOS WERE NOT THE ONLY NATURAL DISASTER FACING FARMERS LAST  WEEK. CINDY CLAWSON HAS MORE IN TODAY'S CROP COMMENTS. GOOD MORNING CLINTON. MORE PICTURES ARE ROLLING IN FROM THE  DEVASTATING WILDFIRE IN OREGON.  BAILEY JENKS SAYS THE SUBSTATION FIRE WIPED OUT MORE THAN 50 THOUSAND  ACRES OF RIPE WHEAT AND GRASSLAND. IT WAS MOSTLY PUT OUT AS OF FRIDAY,  BUT THEY HAD TO WATCH HOT SPOTS CLOSELY, AS THE WINDS SHIFT. SHE SAID  THE FIRE COULDN'T HAVE BEEN MANAGED WITHOUT THE HELP OF FIREFIGHTERS,  FARMERS AND RANCHERS WORKING TOGETHER.  AND WE HEARD FROM A CROP REPORTER IN CULLMAN COUNTY ALABAMA WHO  SAYS THEY'VE HAD SOME POP-UP SHOWERS RECENTLY BUT NO WIDESPREAD RAINFALL. SOIL IS DRYING OUT VERY FAST DUE TO THE EXCESSIVE HEAT. AND WE'VE HAD A LOT OF HEAT AND WE'VE HAD A LOT OF DRY CONDITIONS. WE'RE GOING TO TALK ABOUT  THE LATESTU.S. DROUGHT MONITOR COMING UP IN JUST A FEW MINUTES. BUT FOR NOW HERE ARE YOUR HOMETOWN TEMPS. 

TEASE
WHEN WE COME BACK, WE'LL TALK MORE ABOUT THE WEATHER AND TRADE WITH  OUR EXPERTS HERE AT THE AGRIBUSINESS DESK. AND LATER, MACHINERY PETE. TRACTORS WITH OLDER ENGINES IN HIGHER DEMAND IN SOME CASES. STICK AROUND. WE'LL TALK ABOUT IT. PLUS WE'LL TRAVEL TO THE FORESTS OF AFRICA WHERE WORK IS UNDERWAY TO  SAVE THESE HARD WOODS WITH THE HELP OF COFFEE. AGDAY - BROUGHT TO YOU BY TOP THIRD AG MARKETING.  FARMER-FIRST, WITH A PLAN FOR EVERY  MARKET. 

AGRIBUSINESS
HERE AT AGROBUSINESS DESK WE'VE GOT DAN HUBER THE HUEBER REPORT AND MARK GOLD TOP THIRD AG MARKETING THANK YOU BOTH FOR BEING HERE. OK LAST WEEK KIND OF A DYNAMIC WEEK IF WE'RE LOOKING AT WHAT GRAINS DID SPECIFICALLY WHAT WAS YOUR TAKEAWAY MARK. WE'LL START WITH YOU. WHILE I THINK THE TAKEAWAY WAS WE RALLIED WITH SOME BAD NEWS HAD SOME GOOD TECHNICAL INDICATORS AND A MARKET THAT LOOKS LIKE AND HOPEFULLY WE CAN PUT THE TERRORISTS BEHIND US AND GET TO WEATHER AND SOME OTHER FACTORS FOR A CHANGE. YEAH. DAN WHAT WAS YOUR TAKEAWAY FROM LAST WEEK. YOU KNOW I ABSOLUTELY CONCUR WITH MARK AND REALLY FOR THE LAST EIGHT WEEKS WE'VE DONE NOTHING BUT DO A WORRY AND FRET ABOUT WHAT'S GOING TO BE THE TARIFFS IN ABOUT THE TIME YOU THINK WE'RE BEYOND THAT. THEN WE HAVE MORE TARIFF TALK AND CONTINUE TO PUSH US INTO LOWER LOWS AND I THINK WE JUST REACHED THE POINT WHERE ONE EVALUATE AREA I THINK A LOT OF AND YOU JUST PARTICULARLY IN THE CORN AND TO A LESSER EXTENT WHEAT LOOK AT THIS IS A IS A GOOD BARGAIN ON CORN AND I THINK YOU'RE NOW SEEING THAT IN THE BEANS AS WELL. WE ARE WE HAVE TAKEN US BEANS UNDER THE PRICE OF BRAZILIAN BEANS NOW SO I MEAN CONTENTEDLY ON A WORLDWIDE BASIS WE SHOULD SEE DEMAND START TO SHIFT BACK TO THEU.S. MARKET AS WE PREPARE FOR THE FRESH WEEK AND WE'RE KIND OF COMING TO THE END OF JULY. YOU KNOW WE'VE BEEN IN A VERY HOT PATTERN ESPECIALLY IN THE CENTRAL PLAINS. WHAT ARE YOU WATCHING AS WE GET THROUGH THIS WEEK AND IN THROUGH THE REST OF THE MONTH. WELL THEY'RE TALKING ABOUT THE AUGUST WEATHER BEING HOT DRY AND BRINGING IN SOME MORE DROUGHT CONDITIONS. AND OBVIOUSLY THAT'S GOING TO HAVE A MAJOR IMPACT ON THE BEANS. BUT THE CORN TO EVEN THE WURLEY IN THE CORN POLLINATION KIND OF WINDING DOWN A LITTLE BIT IT'S GOING TO AFFECT THE CORN. IF WE DO GET THE HOT DRY WEATHER SO IF WE CAN GET ENOUGH NEWS FROM THE WEATHER FRONT AND MAYBE FORCE THE FUNDS OUT OF SOME OF THESE SHORT POSITIONS IT CAN GIVE GUYS ANOTHER MARKETING OPPORTUNITY. YEAH DAN REAL QUICK DO WE. WHAT DO WE NEED TO DO ON THIS TARIFF SITUATION TO BUMP US A DIFFERENT DIRECTION. WELL OF COURSE ANY RESOLVE ON THE TARIFF WOULD OF COURSE BE A HUGE PSYCHOLOGICAL BOOST BUT THE IF WE COULD START WORKING WITH SOME MORE NEGOTIATED DEALS WITH MEXICO AND CANADA I THINK THAT WILL START TO OVERSHADOW THE THE CHINESE ISSUES AND PROBLEMS THAT ARE OUT THERE AND GRANTED IT WOULD BE NICE NOT TO HEAR ABOUT ANY MORE THREATS ON WHAT IS GOING TO BE WHAT'S GOING TO BE THREATENED FOR TARIFFS OUT THERE. BUT I THINK WE'RE REALLY KIND OF GETTING THAT INTO THE BACK BURNER AT THIS POINT WHICH IS GOING TO ALLOW US TO START REFOCUSING ON NOT ONLY PRODUCTION HERE BUT REALLY WHERE WE STAND ON A WORLDWIDE BASIS AND INVENTORIES IN ANY QUARTER ESPECIALLY THAT IS IS A RELATIVELY TIGHT SITUATION RIGHT NOW. INSURERS ARE I APPRECIATE YOU BOTH FOR BEING HERE. WE'LL BE BACK AND WE'RE AT JUST A MINUTE.

WEATHER
WELCOME BACK TO AGDAY. METEOROLOGIST CINDY CLAWSON IN THIS MORNING LOOKING AT THE  DROUGHT MONITOR HERE SEEN HERE OBVIOUSLY WIDESPREAD DROUGHT BUT SOME OF THESE PLACES DID  GET RAIN. YEAH ABSOLUTELY AND YOU OBVIOUSLY WE'VE BEEN CONCENTRATING ON ESPECIALLY THE CENTRAL SOUTHERN PLAINS AND OVER THE FOUR CORNERS REGION. BUT LOOK AT WHAT'S HAPPENING AS FAR  AS THE RAINFALL OVER THE LAST WEEK. SOME OF THE VERY DRIEST AREAS HAVE BEEN RECEIVING SOME  RAIN OBVIOUSLY IN THE FOUR CORNERS REGION. WE'VE GOT THE ADDITION OF THAT MONSOONAL MOISTURE  SO WE'VE SEEN SOME SHOWERS AND THUNDERSTORMS PARTICULARLY OVER IN ARIZONA CENTRAL AND EASTERN PART OF ARIZONA. BUT WE'VE ALSO SEEN SOME ESPECIALLY KANSAS INTO THE WESTERN PARTS  OF NEBRASKA UP TOWARDS RAPID CITY WE'VE SEEN A FAIR AMOUNT OF RAIN AND OF COURSE SOME  STRONGER STORMS AS WELL. A LOT OF RAIN GETTING INTO PARTS OF THE CENTRAL CORN BELT AS WELL. WHAT  DO WE HAVE IN STORE FOR US. WELL HERE'S A LOOK AT YOUR JETSTREAM. WE'VE GOT KIND OF A TROUGH IN  THE EASTERN COUNTRY SO STARTING OFF WITH A LITTLE BIT OF WET WEATHER. OVERALL IT'S GOING TO BE HOT  BUT WE'RE GOING TO WATCH THIS CLOSED OFF LOW THAT'S GOING TO BE MOVING ACROSS THE NORTHERN TIER STATES INTO THE GREAT LAKES AS WE GET TOWARDS THE END OF THE WEEK BUT NOTICE A LOT OF  FOLKS ARE GOING TO BE HOT. LOOKS LIKE FOR A WHILE HERE. LET'S TAKE A LOOK AT THE TEMPERATURES  NOW BECAUSE OF THAT LOW PRESSURE SYSTEM. WE'LL PROBABLY SEE TEMPERATURES JUST A LITTLE BIT  BELOW NORMAL FOR PARTS OF THE GREAT LAKES AND INTO THE CORN BELT THIS WEEK. I DON'T THINK IT'S  GOING TO BE A LOT BELOW NORMAL. I THINK IT'S GOING TO BE CLOSE TO IF NOT JUST A LITTLE BIT BELOW  NORMAL. NOW PRECIPITATION WISE WE'RE GOING TO SEE ABOVE NORMAL AS WE GET ACROSS OVER THE TOWARDS THE EASTERN SEABOARD AND INTO PARTS OF THE SOUTHERN PLAINS. THAT'S GOOD NEWS  BECAUSE THAT'S WHERE WE REALLY REALLY NEED SOME OF THAT RAIN A LITTLE BIT ON THE DRIER SIDE IN  THE GREAT LAKES AND UP TOWARDS THE PACIFIC NORTHWEST. NOW AS WE TAKE A LOOK A LITTLE BIT FURTHER INTO THE FUTURE LET'S TAKE A LOOK AT THE 30 DAYS BECAUSE THIS IS NOT GOOD. WE'VE BEEN  SO WARM AND SO MUCH OF THE UNITED STATES EVER GOING TO CONTINUE THAT TREND AS WE HEAD  THROUGH THE MIDDLE OF JULY. END OF JULY AND EVEN INTO THE MIDDLE PARTS OF AUGUST AS WE SEE ABOVE NORMAL TEMPERATURES FOR MOST OF THE COUNTRY MAYBE CLOSER TO NORMAL AS YOU GET INTO  SOME OF THE NORTHERN PLAINS PRECIPITATION WISE OBVIOUSLY THIS IS AN IMPORTANT ONE AS WELL.  LOOKS LIKE IT MIGHT BE ON THE DRY SIDE IN PARTS OF THE SOUTHERN PLAINS WESTERN GULF COAST STATES ABOVE NORMAL WITH THAT MONSOONAL MONSOONAL MOISTURE IN THE FOUR CORNERS REGION  AND THEN MAYBE A LITTLE BIT ABOVE NORMAL IN PARTS OF THE SOUTHEAST BUT KIND OF THE EQUAL  CHANCES OF OF ANY OF THOSE HAPPENING JUST NORMAL PRECIPITATION IN THE NORTHEAST IN THE GREAT  LAKES AND IN PARTS OF THE NORTHERN PLAINS AS WELL LOOKS LIKE IT MIGHT BE JUST A BIT ON THE DRY  SIDE IN PARTS OF THE PACIFIC NORTHWEST AS WELL. THAT'S A LOOK AT YOUR NATIONAL FORECAST. NOW  LET'S CHECK OUT THE WEATHER WHERE YOU LIVE. BOISE IDAHO SUNNY AND HOT FOR YOU TODAY WITH A HIGH OF 96 DEGREES. HEADING OVER TO CENTRALIA MISSOURI MOSTLY SUNNY AND WARM WITH A HIGH  OF 85 DEGREES. MOBILE ALABAMA A CHANCE FOR A FEW SCATTERED SHOWERS AND THUNDERSTORMS  WITH A HIGH OF 93. 

TEASE
MACHINERY PETE HAS SOME INTERESTING PERSPECTIVE ON TRACTORS BUILT  BEFORE THOSE NEW EMISSIONS STANDARDS. HE JOINS US NEXT. AND LATER, FIGHTING TO SAVE THESE HARD WOOD FORESTS IN AFRICA BY  PLANTING COFFEE TREES. 

MACHINERY PETE
BACK IN 2014, E-P-A CHANGED EMISSIONS REGULATIONS WHICH REQUIRED NEW  POWERED FARM EQUIPMENT - AND OTHER OFF-ROAD MACHINES - TO BE IN  COMPLIANCE WITH THE SO-CALLED TIER 4 STANDARDS. THOSE STANDARDS DO NOT APPLY TO OLDER ENGINES.  AND AS MACHINERY  PETE TELLS US FARMERS ARE ALWAYS LOOKING FOR NON-TIER-4 MACHINES. WE'LL TIER FOUR EMISSION STANDARDS FOR TRACTORS WENT INTO EFFECT IN A COUPLE STAGES. INTERIM  TIER 4 KICKED IN JANUARY OF 2011 AND THE FINAL STAGE FOR EARLY IN 2014. NOW WHAT I'VE BEEN  SEEING LATELY FOR VERY GOOD CONDITION TRACTOR'S JUST PRIOR TO THE TIER 4 IS INCREASING DEMAND  AND A PRIME EXAMPLE OF THAT WAS LAST TUESDAY ON A FARM AUCTION UP IN NORTHWEST IOWA WHERE THIS REALLY SHARP 2007 JOHN DEERE 8530 2823 HOURS ON IT SOLD FOR A HUNDRED SEVENTY  TWO THOUSAND FIVE HUNDRED DOLLARS. AND FOLKS THAT IS THE HIGHEST AUCTION PRICE I'VE SEEN ON AN  8530 DEERE TRACTOR IN OVER THREE AND A HALF YEARS NOW. I POSTED THAT BLOG ON MY LINKEDIN  PAGE AND I GOT A VERY INTERESTING COMMENT FROM AN EMPLOYEE WITH ONE OF THE MAJOR ENGINE MANUFACTURERS WHO BASICALLY SAID YOU KNOW I'M NOT TOO SURPRISED THAT THAT HIGH PRICE  BECAUSE THERE IS A VERY STRONG DEMAND FOR THE GOOD CONDITION PRETIUM FOR ENGINES. AND I  THINK THAT'S ACCURATE. ANOTHER EXAMPLE ARE A RECENT AUCTION ON THE RED SIDE BACK ON A FARM AUCTION MART FIRST IN SOUTHEAST NORTH DAKOTA. THIS 2011 CASE IH STAIGER 485 QUAD TRACK.  SIXTEEN HUNDRED THIRTY FIVE HOURS ON IT. VERY NICE CONDITION SOLD FOR TWO HUNDRED THIRTY THREE  THOUSAND DOLLARS AND THAT'S THE HIGHEST AUCTION PRICE I'VE SEEN IN SEVEN YEARS ON THAT ON A  485 QUAD TRACK. NOW THIS BRINGS UP AN INTERESTING POINT. IF YOU'RE SELLING A VERY NICE CONDITION  TRACTOR JUST PRIOR TO TIEF FOUR ENGINES IT WOULD BE SMART TO AT THE START OF YOUR LISTENING TO SAY  PRE TIER FOUR IN YOUR DESCRIPTION.

TEASE
STILL TO COME - A PROJECT IN AFRICA WITH DOUBLE BENEFITS - PROTECTING  FORESTS WHILE CREATING JOB OPPORTUNITIES FOR IMPOVERISHED FARMERS. 

IN THE COUNTRY
IN THE COUNTRY - BROUGHT TO YOU BY KUBOTA. CHECK OUT KUBOTA'S RTV-X-1140, A RUGGED UTILITY VEHICLE WITH SEATING FOR FOUR. SYOP BY YOUR LOCAL DEALER TODAY, OR VISIT KUBOTA.COM.  THERE ARE A LOT OF DIFFERENT WAYS TO FARM AROUND THE WORLD. IN MOZAMBIQUE, CONSERVATIONISTS ARE ENCOURAGING FARMERS TO GROW  COFFEE PLANTS IN THE SHADE OF HARDWOOD TREES. THEY HOPE THE METHOD WILL NOT ONLY IMPROVE THEIR LIVES BUT REVERSE  DECADES OF DEFORESTATION. THIS RAINFOREST IN MOZAMBIQUE IS HOME TO RARE ANIMALS AND SPECIES OF PLANTS. BUT, THESE PICTURESQUE MOUNTAINS REMAIN UNDER SEVERE PRESSURE FROM RAMPANT DEFORESTATION AND WAR. SCIENTISTS ESTIMATE THE RAINFOREST HAS SHRUNK ABOUT 40 PERCENT SINCE 1970. NOW LOCAL FARMERS ARE BEING ENCOURAGED TO GROW COFFEE IN THE SHADE OF THESE MASSIVE HARDWOOD TREES. THE GOAL, TO IMPROVE THEIR FINANCIAL LIVES AND RESTORE THE FOREST. EMILIA NACIR, GORONGOSA NATIONAL PARK COFFEE PROCESSING COORDINATOR : "WE ARE USING COFFEE IN THE RESTORATION PROJECT TO SUPPLY THE COMMUNITY FOR THE GORONGOSA MOUNTAINS ".  BUT MILITARY BATTLES AND CIVIL WAR HAS KEPT PROGRESS SLOW.  THERE WERE TIMES WHEN MANAGERS OF THE COFFEE-AND CONSERVATION PROJECT COULDN'T GO NEAR THE MOUNTAINS BECAUSE OF THE CONFLICT. WITH A LULL IN TENSIONS, THEY ARE PUSHING AHEAD WITH PLANS TO PLANT MORE COFFEE AND TREES. QUENTIN HAARHOFF, HEAD OF GORONGOSA COFFEE PROJECT: "WE HAVE HAD HUGE TROUBLES WORKING HERE, THIS MOUNTAIN IS TOTALLY CONTROLLED BY RENAMO, WHICH IS THE OPPOSITION FORCE, THEY ARE NOT IN GOVERNMENT, AND ALL THEIR BASECAMPS ARE UP THERE ON THE MOUNTAIN, THAT'S WHERE THEY LIVE AND THAT'S WHY THEY ARE PROTECTED BY THE PEOPLE HERE WHO LIVE ON THE MOUNTAIN. I WORK FOR THE GOVERNMENT OF MOZAMBIQUE, SO IT'S A VERY SENSITIVE ISSUE COMING UP HERE FOR BOTH SIDES, ". IT IS AMONG THE MORE COMPLEX CONSERVATION EFFORTS IN SOUTHERN AFRICA. AS ORGANIZERS WORK TO CONVINCE FARMERS TO ABANDON OLD-SLASH-AND-BURN METHODS OF FARMING AND COMMIT TO THE LONGER-TERM YIELD OF COFFEE ON THE SAME PLOTS.QUENTIN HAARHOFF, HEAD OF GORONGOSA COFFEE PROJECT: "THIS IS THE ONLY WAY WE CAN GET THEM (LOCAL RESIDENTS) TO BELIEVE IN IT: ACTUALLY SEEING WHAT CAN BE DONE ON A VERY SMALL AREA OF LAND. THE SIGNIFICANCE OF THIS IS THAT YOU CUT DOWN SLASH AND BURN, BECAUSE ONE FAMILY CAN LIVE ON ONE HECTARE AND MAKE MUCH MORE REVENUE THAN THE TRADITIONAL SYSTEM OF SLASH AND BURN". THESE MOUNTAINS CAPTURE RAINFALL AND SUPPLIES THE RIVERS SUSTAINING PEOPLE AND WILDLIFE LIVING AROUND ITS BASE. QUENTIN HAARHOFF, HEAD OF GORONGOSA COFFEE PROJECT: "IT IS ABOUT PLANTING 90 HARDWOOD TREES PER HECTARE, REFORESTATION... GREAT. BUT HOW ELSE CAN WE IMPROVE THE PRODUCTIVITY IN THIS ONE HECTARE OF COFFEE ? AND THE MORE WE PLANT IN HERE, THE MORE WE STOP EROSION, THE MORE WE CAN MAKE THIS PLACE LIKE A SPONGE AND WE RESTORE THE HYDROLOGY OF THIS MOUNTAIN, BECAUSE WE ARE RETAINING WATER IN THESE SMALL AREA FOR MUCH MUCH LONGER. SO THE WATER STAYS HERE, INFILTRATES THE SOIL, INSTEAD OF RUNNING OFF THE SURFACE OF THE SOIL, IT PERMEATES AND IT GOES DOWN AND IT REHYDROLYZES THE RIVER SYSTEMS."MOZAMBIQUE ISN'T A COFFEE PRODUCER ON A PAR WITH AFRICAN GIANTS LIKE ETHIOPIA AND UGANDA, AND PRODUCTION GOALS HERE ARE MODEST. ONLY ABOUT 100 ACRES OF COFFEE PLANTS ARE IN THE GROUND; FARMERS PLAN TO PLANT ANOTHER 250 ACRES THIS YEAR. THE FIRST HARVEST COMES FOUR YEARS AFTER THAT.IT'S A LONG TERM PLAN TO HELP FARMERS HERE FIND A FUTURE WHILE MAINTAINING A PRICELESS NATURAL RESOURCE. COFFEE FROM THAT REGION IS ALREADY ON SALE AT THE GIFT SHOP AT THE WILDLIFE PARK'S LODGE. ONE POSSIBLE MARKET IS PORTUGAL, WHERE THE GOR-ON-GOSA NAME ENJOYS COLONIAL-ERA MYSTIQUE. 

CLOSE
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN.  FOR ALL OF US AT AGDAY I'M CLINTON GRIFFITHS. HAVE A GREAT DAY. 

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