AgDay Daily Recap -July 3, 2018

July 3, 2018 06:00 AM
 

TODAY ON AGDAY
JULY 3, 2018

HEADLINES

TARIFFS AND TRADE WEIGH ON THE START OF A HOLIDAY WEEK. "NOW WE'RE INTO CRUNCH TIME. THIS IS TARIFF WEEK WHERE THE PRESSURE MOUNTS EACH DAY," IN AGRIBUSINESS...PEANUT PRICES. THE DAIRY REPORT TALKS CLASS 7 PRICING AND THIS EDUCATIONAL DAIRY ISN'T IMMUNE TO THE MARGIN PRESSURES OF  FALLING MARKETS.  AGDAY-BROUGHT TO YOU BY THE DEPENDABLE, LONG LASTING CHEVY  SILVERADO. 

GRAINS UNDER PRESSURE
GOOD MORNING I'M CLINTON GRIFFITHS. GRAINS UNDER PRESSURE TO START THE WEEK AS THE THREAT OF TARIFFS ON  U.S. AG GOODS CONTINUES TO RISE.  TRADERS SAY UNCERTAINTY IS LINGERING AS BOTH MEXICO AND CHINA  THREATEN TO POSE MORE TARIFFS ON U.S. AG PRODUCTS - BY THE END OF THE WEEK.  THE MOVE IN RESPONSE TO THE U.S. OWN TARIFFS ON STEEL AND ALUMINUM. CANADA ALREADY CRACKING DOWN, TACKING ON 12-POINT- 6 BILLION DOLLARS  IN TARIFFS ON U.S. PRODUCTS SUNDAY. ON THE LIST, ORANGE JUICE, BEEF PRODUCTS, STEEL AND ALUMINUM.  RETALIATORY TARIFFS FROM CANADA, MEXICO AND CHINA COMBINED COULD  TALLY UP TO NEARLY 50 BILLION DOLLARS. "SO, WE ARE IN A BAND HERE, THIS IS WHY THE MARKET IS AN EXTREME ANXIETY OVER THESE THINGS, RIGHTFULLY SO. THEY COULD REALLY START HURTING. NOW WE ARE GOING TO SEE IF TRUMP FOLLOWS THROUGH  ON IMPLEMENTING THE SANCTIONS."MEXICO ALSO CONSIDERING A SECOND WAVE OF TARIFFS TARGETING SOME 3  BILLION DOLLARS WORTH OF U.S. GOODS. ON THE LIST, CHEESE, APPLES, PORK HAMS, SHOULDERS...AND CORN. "WE SOLD CHINA NEAR 1.2 BILLION BUSHELS OF SOYBEANS LAST YEAR. THAT WAS 27 PERCENT OF ALL THE  BEANS WE PRODUCED IN THIS COUNTRY. THEIR RESTRICTIONS ARE REALLY GOING TO HAVE AN IMPACT." THIS OCCURS THE SAME DAY THE U.S. IS ANTICIPATED TO ROLL OUT IT'S OWN 25  PERCENT DUTY ON ABOUT $34 BILLION DOLLARS WORTH OF CHINESE EXPORTS  TRADERS SAY UNCERTAINTY IS LINGERING AS BOTH MEXICO AND CHINA  THREATEN TO POSE MORE TARIFFS ON U.S. AG PRODUCTS - BY THE END OF THE  WEEK.  

MEXICAN ELECTIONS, NAFTA TALKS
MEANWHILE MEXICO'S NEWLY-ELECTED PRESIDENT APPEARS READY TO RE- NEGOTIATE THE NORTH AMERICAN FREE TRADE AGREEMENT WITH PRESIDENT  TRUMP. ANDRÉS MANUEL LÓPEZ OBRADOR WILL BECOME MEXICO'S NEXT PRESIDENT  HAVING GARNERED 53-PERCENT OF THE VOTE SUNDAY. LOPEZ OBRADOR SAID HE SUPPORTS REACHING A DEAL ON NAFTA. THE TALKS  HAVE STALLED IN RECENT MONTHS. LOPEZ OBRADOR TOLD REPORTERS THAT HE WILL RESPECT THE CURRENT TEAM  OF NEGOTIATORS, AND LET THEM CONTINUE REPRESENTING MEXICO UNTIL HE TAKES OFFICE DECEMBER FIRST. PRESIDENT TRUMP SAYING OVER THE WEEKEND, HE'S NOT HAPPY WITH HOW  RENEGOTIATIONS ARE GOING AND SAYS HE WON'T SIGN A NEW NAFTA AGREEMENT UNTIL AFTER THE MIDTERM ELECTIONS. DURING A MEETING OF COMMODITY GROUPS LAST WEEK IN MICHIGAN, USDA DEPUTY SECRETARY TED MCKINNEY SAID NAFTA WILL GET DONE....ONE WAY OR  ANOTHER. WHILE PRAISING THE TALKS, MCKINNEY SAYS A BIOTECHNOLOGY "TITLE" IS NOW  INCLUDED IN THE NEW NAFTA. THAT SECTOR OF AGRICULTURE WAS NOT A  RELEVANT PART OF THE CONVERSATION WHEN THE TRILATERAL TRADE PACT WAS ORIGINALLY WRITTEN IN 1993. "WE'RE JUST FORTUNATE THAT MEXICO AND CANADA BY AND LARGE SAW THE WORLD OF BIOTECHNOLOGY  PRODUCTS SOON. IT'S GENE EDITING OR THE CRISPR TECHNOLOGIES AND WE SEE THOSE IN THE SAME  LIGHT. BUT WHAT WE NOW HAVE IS A PRETTY DARN GOOD BIOTECH. SCHACHTER AS PART OF THE NEW NACTA THAT WILL OPERATE HOW WE ALL TRADE AMONGST OUR THREE COUNTRIES AND MORE IMPORTANTLY I  THINK SETS A PERFECT IDEAL TEMPLATE FOR ANY OTHER AGREEMENT THAT WE OR FRANKLY ANY OTHER  COUNTRIES MIGHT TAKE ON."

U.S. AND WTO
FROM BLOOMBERG... THE ADMINISTRATION IS WALKING BACK COMMENTS ON  WITHDRAWING FROM THE WORLD TRADE ORGANIZATION. COMMERCE SECRETARY WILBUR ROSS SAYING IT'S A "LITTLE PREMATURE" AS  THE ADMINISTRATION LOOKS AT WAYS TO IMPROVE THE GLOBAL TRADE BODY. ROSS SAYING THE WTO KNOWS SOME REFORMS ARE NEEDED.  AXIOS REPORTING THAT THE WHITE HOUSE WAS CONSIDERING LEAVING THE TRADE ORGANIZATION...SAYING IT INTERFERES WITH SOVEREIGN TRADE  MATTERS AND THAT CHINA FAILED TO OPEN UP ITS ECONOMY AS PROMISED  WHEN JOINING IN 2001. "DOES THE PRESIDENT WANT TO WITHDRAW FROM THE WTO? (MARK SHORT) I THINK THAT THE PRESIDENT HAS EXPRESSED FRUSTRATIONS WITH INTERNATIONAL  ORGANIZATIONS FROM A SOVEREIGNTY PERSPECTIVE. BUT, I THINK THE PRESIDENT ALSO BELIEVES THAT THERE'S EXTENSIVE TARIFFS ASSESSED ON AMERICAN PRODUCTS OVERSEAS THAT'S NOT A RECIPROCAL  TARIFF. (REPORTER) LET ME ASK YOU, IS THE PRESIDENT CONSIDERING WITHDRAWING FROM THE WTO? (MARK SHORT) I'M NOT FAMILIAR WITH ANY PLANS RIGHT NOW. (REPORTER) BUT HE IS FRUSTRATED WITH THE WTO.   (MARK SHORT) THAT'S FAIR TO SAY.> 

EU AND U.S. TRADE
MEANWHILE EUROPEAN UNION LEADERS MEETING LAST WEEK STRESSING THEIR  RESOLVE TO STAY UNIFIED IN THE FACE OF PRESIDENT TRUMP'S TRADE PUSH. "WE HAVE TO SHOW THAT WE DO EXIST, THAT WE ARE UNITED AND THAT WE ARE PRESENTING AS MEMBER STATES AND THE COMMISSION AND THE PRESIDENT OF THE (EUROPEAN) COUNCIL THE SAME  VIEW. SO WE SHOULD DIPLOMATISE THESE RELATIONS. WE NEED THESE RELATIONS, THE US NEEDS  THESE RELATIONS. I'M NOT SURE THAT WE WILL FIND AN AGREEMENT BETWEEN US AND THE EUROPEAN UNION BUT WE'LL TRY."PRESIDENT JUNCKER SAYS HE PLANS TO TRAVEL TO WASHINGTON LATER THIS  MONTH. 

WOTUS LANGUAGE
ALSO IN WASHINGTON, THE EPA ISSUING A PROPOSED RULE FRIDAY THAT  CLARIFY'S THE ADMINISTRATION'S PLANS TO REPEAL THE MUCH MALIGNED  WATERS OF THE U.S. RULE. THE LANGUAGE SAYS THE EPA IS PROPSING TO PERMANENTLY AND COMPLETELY  REPEAL THE 2015 WOTUS RULE AND KEEP THE PRE-2015 REGULATORY FRAMEWORK WHILE WORKING ON A NEW DEFINITION. 

CROP COMMENTS
MIKE HOFFMAN KEEPING THE CROP CONVERSATION ROLLING. HE JOINS US WITH A LOOK AT TODAY'S CROP COMMENTS. GOOD MORNING MIKE. GOOD MORNING CLINTON. LETS CONTINUE WITH WHEAT, IN FACT OUR JULY FACEBOOK COVER PHOTO  CONTEST WINNER IS BROOKE SPRUNG. SHE SENT US THIS GREAT SHOT OF WHEAT WAITING HARVEST FROM NEAR  CHILLIHOWE MISSOURI. THAT'S IN HENRY COUNTRY. BROOKE WINS AN AGDAY HAT FOR HER SUBMISSION. AND THIS PHOTO COMES FROM ST JOE COUNTY INDIANA. THUNDERSTORMS POPPED UP OVER THE WEEKEND AS THE AREA SAW  TEMPERATURES INTO THE MID-90'S. THIS FIELD WASN'T PLANTED UNTIL JUNE IT'S PROBABLY NOT GOING TO MAKE IT  TO KNEE HIGH BY THE FOURTH OF JULY.  THE AREA HAS SEEN PLENTY OF RAIN THIS SEASON..BUT THE MORE MATURE  CORN IN THE AREA MAY FACE THESE HIGHER TEMPERATURES DURING POLLINATION. NOW TAKING A LOOK AT THE WIND SPEED FORECAST. YOU CAN SEE THE NORTH CENTRAL PLAINS AND WEST  TEXAS A LITTLE BIT BREEZY THIS MORNING. IT TURNS WINDY IN THE WEST ESPECIALLY FROM WYOMING  DOWN INTO SOUTHERN ARIZONA AND A LITTLE BIT BREEZY ACROSS THE PLAIN SOUTHERN MISSISSIPPI  VALLEY. AND AS WE HEAD INTO THE DAY TOMORROW IT'S MAINLY GOING TO BE THE NORTHERN PLAINS DOES START THE DAY AND THEN WE TURN WINDY UP AND DOWN THE PLAINS AND PARTS OF THE WEST AS  WE HEAD THROUGH THE AFTERNOON. WE'LL HAVE YOUR FORECAST COMING UP IN JUST A LITTLE WHILE. BUT  FIRST HERE ARE SOME HOMETOWN TEMPS. 

TEASE
WHEN WE COME BACK, WE'LL GO SOUTH TO CHECK ON PEANUT PROGRESS AND  MARKET EXPECTATIONS WITH ASHLEY ARRINGTON AT THE AGRIBUSINESS DESK. AND LATER, THIS EDUCATIONAL DAIRY IN MICHIGAN IS FACING CHANGES DUE TO  LOW MILK PRICES. BETSY JIBBEN REPORTS FROM ANDREWS UNIVERSITY, TODAY ON IN THE COUNTRY. 

FLOOR OF THE CME
IN AGRIBUSINESS LETS SEE HOW MARKETS STARTED THE HOLIDAY WEEK. FOR THAT WE HEAD TO THE FLOOR OF THE CME IN CHICAGO. SOYBEANS ARE SLIDING AGAIN THAT CHINA IS PREPARING TO MOVE AHEAD WITH THE TARIFFS AND THAT'S GOT EVERYONE A LITTLE BIT NERVOUS AND A LOT OF THE TRADERS HAVE REALLY MOVED TO THE SIDELINES. THE UNCERTAINTY HAS GOT PEOPLE VERY VERY WORRIED. THE MARKET WAS DOWN A LOT TRIED TO COME BACK SOME BUT THEN STARTED TO SLIP AGAIN AND TRADERS ARE REALLY SHRUGGING OFF EVEN  THE WEATHER UNCERTAINTY WHICH NORMALLY WOULD BE A POSITIVE FOR SOYBEANS CORN ALSO DROPS. IT  WAS FAVORABLE WEATHER CONDITIONS IS REALLY BEARISH FOR THOSE FUTURES. SPEAKING OF FALLING WHEAT FELL A LOT TODAY THE DOWNTREND REALLY DOES REMAIN INTACT. INTERESTINGLY ENOUGH WE  OPENED UP ALMOST 14 CENTS AND ENDED UP DOWN 15 CENTS. SO IT WAS A BIG TRADING DAY AND A BIG WIDE RANGE BUT DEFINITELY WORKED. BACK TO THE DOWNSIDE. SO IT TOOK BACK ALL OF FRIDAY'S  GAINS. THAT'S ALL FROM THE FLOOR AT THE CME GROUP HERE IN CHICAGO. I'M VIRGINIA MCGATHEY. HERE AT THE AGRIBUSINESS DESK TODAY WE HAVE ASHLEY ARRINGTON OF AGRI AUTHORITY. LET'S TALK  ABOUT THE PEANUT CROP DOWN IN THE SOUTH. HE'S BEEN A LOT OF TIME IN GEORGIA IN THAT AREA.  SOME OF THE PICTURES I'VE SEEN PEANUTS DON'T LOOK TOO BAD. WELL WHAT HAPPENED WAS LAST YEAR WE HAD SOME GREAT PRICES. WE HAVE 450 FOR PLUS IN SOME AREAS AND THEN WE HAD A  BUMPER CROP AN ABSOLUTE BUMPER ALMOST EVERY AREA BUT THEN THIS YEAR SINCE WE HAD THE  BUMPER CROP. HUGE SUPPLY. WE'VE SEEN PRICES SLIP LITTLE UNDER 400 BUT AGAIN NOW IT'S THE BUMPER CROP THIS YEAR. THE WITNESS THAT'S OK LIGHT PLANNING ALL OVER THE BOARD FROM GEORGIA OVER TO ALABAMA. WE'RE SEEING SOME DISEASE IN SOME PLACES. PEOPLE ARE STILL PLANTED IN  SOME AREAS. SO THE CROP IS COMING IN LESS THAN STELLAR THIS YEAR SO I'M KIND OF SPENDING CASH  PRICES TO ACTUALLY BE ABOVE ALL FOR CONTRACT PRICES AT THE BEGINNING OF THE YEAR BECAUSE OF THE  LESS THAN STELLAR CROP WE'RE LOOKING AT IN THE FIELD RIGHT NOW. INTERESTING TO THE PICTURES THAT  WE'VE SEEN ARE PROBABLY SOME OF THE BEST LOOKING CROPS OUT THERE BECAUSE EVERYBODY IS STRUGGLING. YES SOME PEOPLE GOT EARLY PLANTED AND GOT LUCKY TO GET HIT AS HARD BY THE RAINS.  BUT THE AREA THAT I MEAN THAT'S REALLY PEANUT HEAVY HAS HAD TO REPLANT GOT DROWNED OUT. AND  THE ONES THAT DID SURVIVE THEY'RE NOT LOOKING THE BEST. EVERYBODY SAID IT LOOKS REALLY POOR HEADED ACREAGE THERE BECAUSE IT HAD WE HAD STRONG COTTON PRICES AND I'M GUESSING SOME OF  THAT ACREAGE CHANGES BETWEEN THE TWO. YES WELL IN THE SOUTH A LOT OF TIMES IF YOU PLANT  COTTON YOU PLANT PEANUTS IN A LOT OF AREAS NOT ALL OF COURSE BUT WE HAVE A ROTATION. SO SOME OF IT DIDN'T CHANGE BECAUSE OF ROTATION. BUT OF COURSE WE DID SEE A LOT MORE GO INTO COTTON  THAN PEANUTS BUT I DON'T THINK IT WAS OVERWHELMINGLY SO. SO AS YOU LOOK OUT TOWARD THE END  OF THIS YEAR WHAT DO YOU EXPECT WHEN WE GET TOWARD HARVEST FOR PEANUTS. I'M EXPECTING TO SEE THE PRICES GO UP AS THAT YOU KNOW CONTRACT IS CONTRACTING THIS WHAT YOU GET PAID FOR  ANYTHING THAT FARMER HAS OVER CONTRACTED. I THINK CASH PRICES MAY BE ABOVE THE CONTRACTED  PRICE SO THEY'LL BE HAPPY TO HAVE SOME OVER CONTRACTED THIS YEAR. ALL RIGHT WELL I THINK THAT WILL  BE GOOD. APPRECIATE IT. ASHLEY THANK YOU FOR BEING HERE WE'LL BE BACK. MORE THAN JUST. 

WEATHER
WELCOME BACK TO AGDAY HERE WITH METEOROLOGIST MIKE HOFFMAN. MIKE WE'RE LOOKING AT THIS  LOW DOWN THERE ON THE GULF COAST AND IT'S PUTTING DOWN SOME RAIN AND WHEN IT'S OVER THE GO  OFF IT'S ALWAYS A SLIGHT CHANCE IT BECOMES A TROPICAL STORM OF SOME TYPE. EITHER WAY IT HAS A  BUNCH OF TROPICAL MOISTURE. WE STARTED TALKING ABOUT THIS WHEN LATE LAST WEEK AND OVER THE  WEEKEND ON US FARM REPORT IF YOU WATCH THAT SHOW BUT IT'S EXPECTED TO SLOWLY MEANDER WESTWARD INTO SOUTH CENTRAL TEXAS IN ABOUT 48 HOURS FROM THERE YOU NEVER KNOW THERE IS NO  JET STREAM PATTERN IS GOING TO PULL IT NORTH NECESSARILY BUT IF IT DOES GET SLIGHTLY PULLED NORTH  AND THEN TURNS NORTHEAST WE'LL JUST HAVE TO KIND OF WATCH WHERE THAT MOISTURE GOES. OTHER  THAN THAT WE'RE LOOKING AT KIND OF A STALLED OUT FRONT ACROSS THE OHIO RIVER VALLEY. THERE'LL BE  SOME POP UP SHOWERS AND THUNDERSTORMS DURING THE AFTERNOON HOURS. HIGH PRESSURE IN THE SOUTHEAST KEEPING THINGS MAINLY DRY. IT'S A VERY MUGGY THOUGH SO SOME AFTERNOON  THUNDERSTORMS IN A FEW SPOTS POSSIBLE. SAME IDEA IN THE SOUTHWEST ALTHOUGH WE HAVEN'T  REALLY SEEN THE MONSOON MOISTURE GET GOING QUITE YET HEADING INTO THE DAY TOMORROW THEN WE'LL WATCH THE NORTHERN SYSTEM COMING INTO THE NORTHERN PLAINS WITH SOME SHOWERS AND  THUNDERSTORMS IN THAT AREA. VERY HEAVY RAINS AROUND THE HOUSTON AREA TO START THE DAY  TOMORROW. AND THEN YOU CAN SEE THAT STORM SYSTEM CONTINUES TO GO WEST FOR NOW AGAIN. IT'S VERY TOUGH TO KNOW WHERE IT'S GOING FROM THERE JUST BECAUSE THE JET STREAM ISN'T AROUND TO  REALLY PULL IT NORTHWARD AS YOU'LL SEE. AND YOU CAN SEE THE WARM FRONT NOW IT'S GOING TO START  TO BRING BACK SOME WARMER MORE HUMID AIR INTO THE OHIO VALLEY SOUTH WESTERN GREAT LAKES  AS WE HEAD INTO TOMORROW AFTERNOON. SO PRECIPITATION ESTIMATE PAST 24 HOURS WE'VE SEEN SOME AREAS FROM THE GULF COAST ALL THE WAY INTO THE EASTERN GREAT LAKES AND THE NORTHEAST A FEW SPOTS ACROSS THE NORTHERN PLAINS. ADDING IN THE NEXT 36 HOURS YOU CAN SEE THAT  MOISTURE THAT'S ACTUALLY MORE THAN HALF A FOOT SHOWING UP ON OUR COMPUTER MODEL IN PARTS OF  COASTAL LOUISIANA FAR SOUTHEASTERN TEXAS. SO WE'LL BE WATCHING THAT AND SOME DECENT  MOISTURE IN PLACES ACROSS THE NORTHERN PLAINS AS YOU CAN SEE THERE CHECKING OUT TEMPERATURES IT'S STILL GOING TO BE VERY HOT. CENTRAL AND SOUTHERN PLAINS HIGHS IN THE 90S IN  MANY AREAS LOW TEMPERATURES TONIGHT VERY MUGGY UPPER 70S AND 80S ACROSS THE CENTRAL AND  SOUTHERN PLAINS STATES PRETTY MUGGY INTO THE OHIO RIVER VALLEY SOUTHWESTERN GREAT LAKES  ONCE AGAIN. AND YOU CAN SEE THE 90S BASICALLY FROM ABOUT OMAHA SOUTHWARD WITH A FEW HUNDREDS IN THE DESERT SOUTHWEST DURING THE DAY TOMORROW. HERE'S THE JETSTREAM THEM START  OFF THE BIG RIDGE IN THE EAST THAT'S WHERE THE HEAT HAS BEEN AND KIND OF RETRO GRADES THEN  BACK TO THE WEST WE HAVE A TROUGH COMING IN TO COOL THINGS DOWN FOR THIS WEEKEND. HEAT MAY COME BACK OCCASIONALLY ABOUT I THINK WHAT WE'RE GOING INTO HERE IS A RIDGE IN THE WEST  AND TROUGHING THIS OCCASIONALLY IN THE EAST KEEPING THINGS FROM GETTING TOO HOT. WE'LL HAVE TO  WAIT AND SEE. THAT COULD BE THE REST OF THE SUMMER. THAT'S A LOOK ACROSS THE COUNTRY. NOW LET'S TAKE A LOOK AT SOME LOCAL FORECASTS. FIRST OF ALL JULES BERG COLORADO HAZY SUNSHINE HOT  AND HUMID HIGH OF 95 DEGREES. VICKSBURG MISSISSIPPI MUGGY WITH SHOWERS AND  THUNDERSTORMS HIGH OF 89 AND PORTLAND MAINE A MIXTURE OF CLOUDS AND SUNSHINE. HIGH TEMPERATURE AROUND 80 DEGREES.

TEASE
DAIRY NEWS IS NEXT....LATER DAIRY FARM IN TROUBLE.

DAIRY REPORT
GOVERNMENT LEADERS IN CANADA'S LARGEST DAIRY-PRODUCING PROVINCE  WONDER IF THE NATION SHOULD RECONSIDER ITS CLASS SEVEN MILK PRICE  POLICY.  THAT POLICY HAS BEEN BLAMED FOR SOME OF THE DAIRY PROBLEMS IN  THIS COUNTRY. QUEBEC PREMIER PHILIPPE COUILLARD (FUH-LEEP COO-YAIR) SAID IN AN INTERVIEW WITH BLOOMBERG NEWS THAT THE CLASS 7 POLICY - AND NOT THE  OVERALL SUPPLY MANAGEMENT SYSTEM - SEEMS TO BE THE MAIN STICKING  POINT WITH THE U-S. CANADA'S CLASS 7 POLICY WAS ROLLED OUT LAST YEAR.  IT MAKES IT CHEAPER  FOR CANADIAN PROCESSORS TO BUY DOMESTIC SUPPLIES OF ULTRA-FILTERED MILK, USED TO BOOST PROTEIN CONTENT IN CHEESE AND YOGURT.  COUILLARD SAYS "IF THAT'S THE MAIN ISSUE, CANADA SHOULD LOOK FOR WAYS  TO SEPARATE CLASS 7 FROM FROM SUPPLY MANAGEMENT," ACCORDING TO REPORTING FROM OUR PARTNERS AT MILK BUSINESS, USDA AND OTHER ANALYSIS SAYS IF TARIFFS FROM MEXICO AND CHINA GO INTO EFFECT, IT  COULD TAKE MORE THAN A DOLLAR OFF MILK PRICES IN THE SECOND HALF OF  2018. ANALYSTS WITH INTL FCSTONE, ESTIMATE TARIFFS WOULD CUT U.S. EXPORTS BY  ABOUT 41-THOUSAND TANKER LOADS PER YEAR, OR 113 LOADS PER DAY. TWO WEEKS AGO, USDA WAS PROJECTING AN AVERAGE ALL-MILK PRICE OF $16.80  HUNDRED WEIGHT FOR ALL OF 2018...50 CENTS PER HUNDREDCWT LOWER THAN LAST YEAR. AND ACCORDING TO A NEW IOWA STATE SURVEY ON LAND OWNERSHIP, NEARLY  60 PERCENT OF FARMLAND IN THE STATE IS OWNED BY PEOPLE WHO DON'T ACTIVELY FARM. ABOUT A THIRD DON'T HAVE ANY FARMING EXPERIENCE AT ALL. A QUARTER OF OWNERS ARE RETIRED FARMERS ACCORDING TO I-S-U. THE FARMLAND OWNERSHIP TENURE SURVEY BASED ON 2012 TO 2017. A COUPLE OF OTHER NOTEABLE STATS FROM THE SURVEY... EIGHTY-TWO PERCENT OF IOWA FARMLAND IS OWNED DEBT-FREE. THATS MUCH HIGHER THAN THE 62 PERCENT IN 1982 AND 78 PERCENT IN 2012.  AND OWNERSHIP AGE IS ON THE RISE-- PEOPLE 65 YEARS OR OLDER OWN 60  PERCENT OF FARMLAND, TWICE THE LEVEL IN 1982. WHILE THOSE YOUNGER  THAN 35--THEY OWN LESS THAN 2 PERCENT OF IOWA FARMLAND. IN THE COUNTRY IS NEXT. 

IN THE COUNTRY
SOUTHWEST MICHIGAN IS DEEPLY ROOTED IN AGRICULTURE - FRUIT, VEGGIES  AND LIVESTOCK. BUT DESPITE THE DIVERSITY, IT'S NOT IMMUNE TO A DOWNTURN  IN THE MARKET....LIKE IN DAIRY. A S BETSY JIBBEN REPORTS, A CENTURY-OLD FARM OWNED BY A LOCAL COLLEGE  IS NO LONGER ABLE TO WEATHER THE UN-CERTAINTY IN THE DAIRY INDUSTRY. DAY-TO-DAY DAIRY OPERATIONS ARE POWERED BY ROUTINE...  "I DO A 3 AM SHIFT, AN 11 AM SHIFT AND THEN A 7 P.M."THAT RHYTHEM AND ROUTINE EQUALS SUCCESS FOR A DAIRY FARM.  "WE ARE PREG CHECKING RIGHT NOW AND THEN ALL THE COWS THAT ARE OPEN THAT DON'T HAVE A CALF,  THEY'RE GETTING SOME KIND OF A SHOT TO GET BACK TO HEAT AGAIN,"THE CYCLE OF LIFE OVER THE PAST FEW YEARS, GLOBAL CONSISTENCY AND GROWING PRODUCTION IS CAUSING FINANCIAL STRESS.. EVEN IN BERRIEN COUNTY, MICHIGAN.  "WE'VE BEEN SHRINKING TOO. THERE'S ONLY A FEW LEFT IN OUR COUNTY,""I KNOW OF TWO FRIENDS AND FAMILY THAT HAD TO STOP ALSO BECAUSE OF THAT SAME REASONING. IT HITS HOME FOR ME A LITTLE BIT."IT HITS CLOSE TO HOME FOR ALL OF THEM... FALLING MILK PRICES AREN'T JUST HURTING THE 'AVERAGE' DAIRY. IT'S FORCING ANDREWS UNIVERSITY TO CLOSE THE DOORS ON ITS  'EDUCATIONAL' DAIRY TOO.  "LIKE MUCH OF THE DAIRY INDUSTRY, THE DAIRY AT ANDREWS UNIVERSITY HAS BEEN OPERATING BELOW  THE COST OF PRODUCTION. SO MUCH SO THE UNIVERSITY HAS DECIDED TO CLOSE ITS DAIRY OPERATIONS  "TAKES A BREATH - I WISH THAT THE DECISION MAKERS, THE BOARD MEMBERS, THOUGHT DIFFERENTLY  BUT WE HAVE TO THINK OF THE OVERALL BUDGET OF THE UNIVERSITY. I DON'T WANT TO BE SELFISH BECAUSE  A LOT OF PEOPLE ARE INVOLVED IN THIS BUT - PAUSE- IT'S VERY DIFFICULT TO SEE - TAKES A LONG  PAUSE ,"THE DAIRY AT THE UNIVERSITY WAS NEVER DESIGNED TO BE A MONEY MAKER  BUT STALE FINANCIALS AND DSTAGNET MARKETS ARE MAKING IT IMPOSSIBLE TO  STAY OPEN. "OVERALL, WE NEED ABOUT 16 DOLLARS PER HUNDREDWEIGHT TO BREAK EVEN, THE REALITY HAS BEEN  IN TEH LAST 2 OR 3 YEARS, IT'S BEEN 13 TO 14.""WE'VE GONE FROM THAT TO LOSING BETWEEN 700 TO 900THOUSAND PER YEAR OVER THE LAST 3  YEARS."THREE YEARS OF PILING DEBT IS NOW HIGH ENOUGH TO TOPPLE A CENTURY OF MILKING. "SIGHS, WELL, IT'S VERY DISAPPOIPNTING. VERY SAD. 111 YEAR HISTORY. THE DAIRY INDUSTRY AS YOU'VE  HEARD FROM OTHERS IS READJUSTING,"SHE WOULD KNOW- SHE WAS THE FIRST WOMAN TO WORK AT THE DAIRY  DECADES AGO.  "I FED THE CALVES. VERY INTERESTING,"ANDREWS UNIVERSITY WAS FOUNDED IN BATTLE CREEK, MICHIGAN - LATER  MOVED TO BERRIEN SPRINGS FOR MORE SPACE.  "OUR HISTORY HERE IN SW MICHIGAN BEGAN IN 1901, WHEN WE MOVED HERE. THE FARM WAS  STARTED THE SAME YEAR AND SIX YEARS LATER, THE DAIRY, WHICH IS BEHIND US BEGUN,""ONE OF THE REASONS THIS SPOT WS CHOSEN WAS NOT JUST BECAUSE IT WASN'T JUST A GREAT SPOT FOR  A SCHOOL. IT WAS A GREAT SPOT FOR A FARM,"> IT'S HARD TO KNOW HOW THE FACILITIES AT ANDREWS WILL LOOK A YEAR FROM  NOW..  "WE'RE WORKING ON A PLAN TO SEE IF WE CAN'T UTILIZE SOME OF THESE FACILITIES FOR OTHER SPECIES,  YOU KNOW, LLAMAS, GOATS, SHEEP, CHICKENS, DUCKS..." AND HOW MUCH CHANGE WILL COME WITH CLOSURE... "I'VE BEEN HERE A TOTAL OF 22 YEARS COME THIS FALL...""I ENJOY IT VERY MUCH. I ENJOY THE PRODUCTS, THE JOB, THE WORK, ENJOY THE COWS AND PEOPLE. IT'S  ALL A NICE PACKAGE.."BUT UNTIL DAIRY PRICES REBOUND...  "IN A PERFECT WORLD, WE'D HAVE AIR CONDITIONING BUT WE DON'T HAVE THAT KIND OF MONEY.""AFTER THIS, I'M GOING TO RETIRE. LAUGHS. I'M OLD ENOUGH. I'VE BEEN DOING THIS ALL OF MY LIFE,"MAY SEE MORE DISRUPTIONS IN THE FUTURE.  REPORTING FOR AGDAY, I'M BETSY JIBBEN.  THANKS BETSY. KOUDELE { KUH-DELL} SAYS OUT OF THE GRADUATES, 90 PERCENT WHO APPLY  FOR VET SCHOOL ARE ACCEPTED.  THE UNIVERSITY IS NOT PLANNING ON DROPPING ANY OF ITS VET DEGREES FOR  NOW. HOWEVER, SOME STUDENTS ARE WORRIED HOW THEY WILL ACHIEVE THEIR  LARGE ANIMAL EXPERIENCE. 

CLOSE
THAT'S ALL THE TIME WE HAVE THIS MORNING. WE'RE GLAD YOU TUNED IN FOR  AGDAY 

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