AgDay Daily Recap -November 15, 2016

August 29, 2016 02:57 AM
 
AgDay

TODAY ON AGDAY
NOVEMBER 15, 2016


HEADLINES
COMING UP ON AGDAY-AN EARTHQUAKE IN NEW ZEALAND LEAVES CHALLENGES AHEAD FOR DAIRY FARMERS. PLUS, HARVESTING SWEET POTATOES AFTER HISTORIC FLOODING. IN AGRIBUSINESS...LOOKING PAST 2016 YIELD DATA. YOU KNOW WE PROBABLY ENDED THAT CONVERSATION ON YIELDS 30 TO 45 DAYS AGO IF ANYTHING THIS THIS LAST REPORT USDA PRETTY MUCH CONFIRMED THAT WE’VE GOT A GOOD CROP OUT THERE THE DAIRY INDUSTRY WANTS A NEW SAFETY NET. WHAT WOULD IT LOOK LIKE. AND BUILDING FURNITURE BY GROWING MUSHROOMS.  BIO-MANUFACTURING IS SET TO TAKE OFF. AGDAY-BROUGHT TO YOU BY THE DEPENDABLE, LONG LASTING CHEVY SILVERADO.

NEW ZEALAND EARTHQUAKE
GOOD MORNING I'M CLINTON GRIFFITHS. AFTERSHOCKS ARE STILL BEING FELT IN NEW ZEALAND AS THE COUNTRY TRIES TO RECOVER FROM A MASSIVE EARTHQUAKE. AND THE DEVASTATION WILL IMPACT THE MAJOR DAIRY PRODUCING NATION FROM EXPORTING ITS GOODS. THE SEVEN-POINT-EIGHT TREMOR STRUCK THE SOUTH ISLAND IN A MOSTLY RURAL AREA THAT'S DOTTED WITH SMALL TOWNS. SO FAR, THE GOVERNMENT CONFIRMED TWO DEATHS. BUT THE TREMOR CAUSED SEVERE DAMAGE TO BUILDING AND ROADS. THE VIOLENT SHAKING TORE FISSURES INTO ROADS AND SPARKED LANDSLIDES. "THE SLIPS ON STATE HIGHWAY 1 ARE SIGNIFICANT. SO IT COULD BE DAYS OR WEEKS BEFORE WE CAN REALLY, SORT OF, GET IN THERE AND CLEAR THOSE SLIPS." NEW ZEALAND IS ONE OF THE WORLD'S LARGEST DAIRY PRODUCING COUNTRIES. FONTERRA, THE WORLD'S BIGGEST DAIRY EXPORTER, SAYS SOME OF ITS FARMS WERE WITHOUT POWER AND WOULD LIKELY HAVE TO DUMP MILK. OTHERS EXPECT SHIPMENTS TO BE LATE. THAT AREA ACCOUNTS FOR ROUGHLY 13 PERCENT OF THE NEW ZEALAND'S MILK OUTPUT. ANALYSTS EXPECT THE EARTHQUAKE TO LIFT MILK PRICES AT TUESDAY'S GLOBAL DAIRY TRADE EVENT. THIS VIDEO OUT OF NEW ZEALAND MAY BE THE MOST STRIKING SO FAR. IT SHOWS THREE COWS STRANDED ON AN ISLAND OF GRASS IN A PASTURE THAT WAS RIPPED APART BY THE EARTHQUAKE. THE AERIAL FOOTAGE SHOWS THE COWS SURROUNDED BY HUGE LANDSLIDES. NO WORD ON IF OR HOW THE CATTLE WOULD BE RESCUED.

CANADIAN GOV’T INVESTING IN DAIRY FARMS
SPEAKING OF DAIRY, THE CANADIAN GOVERNMENT SAYS IT'S PLANNING TO INVEST 250 MILLION DOLLARS INTO THE NATION'S DAIRY FARMS. IT'S ALSO CONTRIBUTING 100 MILLION DOLLARS TO SPUR INVESTMENTS INTO PROCESSING INFRASTRUCTURE. THE INVESTMENT IS IN THE WAKE OF THE RECENT CANADA AND E-U TRADE AGREEMENT KNOWN AS CETA. DAIRY LEADERS SAY THE DEAL WILL CAUSE ROUGHLY 116 MILLION DOLLARS IN REVENUE LOSSES...MUCH OF IT IN LOST CHEESE PRODUCTION.

BIRD FLU IN GERMANY
GERMAN AUTHORITIES SAY A FLOCK OF 30-THOUSAND CHICKENS HAS BEEN DESTROYED IN A NORTHERN STATE AFTER A STRAIN OF BIRD FLU WAS DETECTED IN THEIR HOUSING. THE ANIMALS WERE CULLED SUNDAY AND MONDAY TO TRY TO CONTAIN THE H5N8STRAIN OF THE VIRUS. THE STATE GOVERNMENT ANNOUNCED NEW PROTECTIVE MEASURES, INCLUDING ORDERING SPECIAL PROTECTIVE CLOTHES FOR WORKERS, AND DISINFECTION OF ALL VEHICLES USED TO TRANSPORT POULTRY. AHEAD OF THE CHRISTMAS SEASON WITH HIGH DEMAND FOR GOOSE, DUCK AND CHICKEN, FARMERS ARE CONCERNED ABOUT THE IMPACT OF AN OUTBREAK. CASES HAVE BEEN REPORTED RECENTLY ELSEWHERE IN EUROPE, INCLUDING SWITZERLAND, AUSTRIA AND HUNGARY.

HARVEST UPDATE
HARVEST CONTINUES AROUND THE COUNTRY ALTHOUGH MANY AREAS ARE STARTING DOWN THE HOMESTRETCH. THE NATION'S CORN CROP IS 93-PERCENT HARVESTED. IN THE TOP 18 STATES, THERE ARE NO MAJOR DELAYS. MICHIGAN IS BRINGING-UP THE REAR 70-PERCENT. BUT THAT'S STILL JUST THREE POINTS BEHIND AVERAGE. SOYBEAN HARVEST REACHED 97-PERCENT. NORTH CAROLINA TRAILS THE REST OF THE COUNTRY AT 62-PERCENT. BUT THAT'S WELL AHEAD OF THE FIVE YEAR AVERAGE FOR THAT STATE. MOST OF THE WINTER WHEAT CROP IS SEEDED.  84-PERCENT HAS EMERGED. 59-PERCENT IS GOOD TO EXCELLENT, UP A POINT FROM LAST WEEK.

SOUR YEAR FOR SWEET POTATOES
IT'S BEEN A ROUGH WEATHER YEAR FOR MANY SWEET POTATO GROWERS. NORTH CAROLINA GOT HIT BY HURRICANE MATTHEW LAST MONTH. THE STATE LEADS THE COUNTRY IN SWEET POTATO PRODUCTION. FORTUNATELY, HALF OF THE SWEET POTATO CROP WAS HARVESTED BEFORE THE STORM. HOWEVER SOME LOSSES MAY NOT BE KNOWN UNTIL THE CROP IS IN STORAGE. MEANWHILE THE NUMBER FOUR PRODUCER -LOUISIANA -GOT HIT BY RECORD RAINFALL IN AUGUST. IN THIS REPORT FROM THE LSU AGCENTER, CRAIG GAUTREAUX SAYS SOME GROWERS MAY EXHAUST THEIR SUPPLY BY NEXT SPRING.LOUISIANA SWEET POTATO PRODUCERS ARE WRAPPING UP THEIR HARVEST ON A SEASON THAT HAS BEEN ONE OF EXTREMES. THE EARLY PLANTING SEASON WAS PLAGUED BY RAIN, THEN A DRY PERIOD, WHICH WAS FOLLOWED BY ONE OF THE WETTEST AUGUSTS IN THE STATE'S HISTORY. WHEN IT CAME TIME TO HARVEST, ABNORMALLY DRY CONDITIONS RETURNED.  MYRLSISTRUNK:  WE WENT DRY. ACTUALLY GROWERS HAD TO WATER THEIR FIELDS IN ORDER TO HARVEST. IT JUST GOT SO DRY ON US, BUT WE'VE REALLY HAD NO BREAKS DUE TO ANY WET WEATHER. THE FLOODING RAINS OF AUGUST PUT A DAMPER ON A CROP THAT HAD THE POTENTIAL OF BEING A VERY GOOD ONE. SOME GROWERS DELAYED HARVESTING TO ALLOW THEIR POTATOES TO IMPROVE IN SIZE, WHICH WAS SLOWED BY ENVIRONMENTAL CONDITIONS.  WE THINK ALL THE EXCESSIVE RAIN KIND OF SHUT THE PLANT DOWN, STRESSED THE PLANTS, AND IT WAS SLOW COMING BACK AND TO FINISH  THE GROWTH ON THE POTATOES. LOUISIANA HAS TWO SWEET POTATO GROWING REGIONS, ONE IN THE SOUTHERN PART OF THE STATE AND ANOTHER IN THE NORTHEAST. BOTH AREAS SUFFERED LOSSES FROM THE AUGUST FLOOD, BUT THE SOUTHERN PART RECEIVED THE MOST DAMAGE. AVOYELLES PARISH PROBABLY A 70 PERCENT LOSS. SOME AREAS WOULD BE DIFFERENT. ST. LANDRY AND EVANGELINE WOULD BE 50 PERCENT. YOU COME TO NORTH LOUISIANA, IT RANGED FROM ANYWHERE FROM 15-20 PERCENT UP TO 30-35. WITH THESE LOSSES, SISTRUNKBELIEVES THAT SOME LOUISIANA GROWERS WILL HAVE NOT HAVE ENOUGH POTATOES TO CARRY THEM INTO THE SPRING SEASON LIKE THEY NORMALLY WOULD. I THINK SOME GROWERS ARE GOING TO COME UP SHORT THIS YEAR JUST BECAUSE OF THE WEATHER SITUATION THAT WE HAD THIS YEAR. ONE POSITIVE FOR GROWERS IS THAT PRICES REMAIN STRONG FOR SWEET POTATOES WITH A 40-POUND BOX FETCHING SOMEWHERE IN THE $19 DOLLAR RANGE. WITH THE LSU AGCENTER, THIS IS CRAIG GAUTREAUX REPORTING. )

CROP COMMENTS
"CROP COMMENTS IS POWERED BY RESICORE HERBICIDE FOR CORN, FROM DOW AGROSCIENCES." MIKE HOFFMAN JOINS US NOW WITH A LOOK AT FARM COUNTRY AND TODAY'S CROP COMMENTS. MIKE. GOOD MORNING, CLINTON. MATT NELSON IN BURT COUNTY, NEBRASKA SAYS HIS RYE, RADISH AND TURNIP CROPS ARE COMING UP NICELY. HE IS NOW DONE WITH HARVEST, LIKE MANY AROUND THE COUNTRY. MATT RAASCH FROM ODEBOLT, IOWA SAYS THIS WAS THE LAST OF HIS HARVEST BEFORE HE FINISHED UP FRIDAY NIGHT. HE SAYS THE AREA HAS SOME DECENT SOIL MOISTURE BUT IT COULD BECOME A CONCERN WITHOUT SOME RAIN SOON. AND TAKING A LOOK A THE WEATHER MAP STILL NOT A LOT GOING ON BUT THAT STORM SYSTEM OUT WEST IS COMING EAST AND THAT WILL BE PRODUCING SOME RAIN AS IT COMES INTO THE PLAINS FOR THE MIDDLE OF THE WEEK WE’LL LET YOU KNOW WHAT THE REST OF THE FORECAST LOOKS LIKE OVER THE NEXT COUPLE OF DAYS COMING UP BUT FIRST HERE ARE SOME HOMETOWN TEMPS

TEASE
WHEN WE COME BACK WE'LL LOOK AT LAST WEEK'S USDA REPORT AND WHAT TO EXPECT FROM MARKETS. AND LATER, THE FUTURE OF RENEWABLE MANUFACTURING FROM GROWING MUSHROOMS TO BUILDING BRICKS WITH BACTERIA. THAT STORY TODAY ON IN THE COUNTRY.

FLOOR OF THE CME
IN AGRIBUSINESS THE U.S. DOLLAR CONTINUES TO CLIMB. LETS SEE HOW MARKETS FAIRED TO START THE WEEK..FOR THAT, WE HEAD TO THE FLOOR OF THE CME IN  CHICAGO. HI IT'S BEEN A LOWER DAY FOR THE MOST PART THE GRAIN MARKETS, A COUPLE REASONS. FIRST THE DOLLAR HAS BEEN VERY VERY STRONG HERE TODAY THE DOLLAR INDEX MOVING ABOVE ONE HUNDRED ON AND THAT'S PAR ON THE INDEX AND THAT'S CREATED SOME SELLING IN JUST ABOUT ALL COMMODITIES IN THE GRAINS AND THE OIL SEEDS ARE NOT EXCLUDED FROM THAT SELLING PRESSURE. ALSO AFFECTING THE MARKETS IS NEWS FROM CHINA THAT THE CHINESE GOVERNMENT IS REALLY CRACKING DOWN ON SPECULATION IN THOSE FUTURES MARKETS OVER THERE. OF COURSE OF THE DALIAN FUTURES MARKET HAS BECOME VERY VERY IMPORTANT HERE FOR THE GRAINS AND OILSEEDS BECAUSE IT REFLECTS THE CHINESE INTERNAL PRICES AND PROVIDES A LOT OF TRADERS WITH SOME IDEA JUST HOW BIG THAT THE PRICE SPREAD IS BETWEEN CHINA AND THE UNITED STATES.

AGRIBUSINESS
JARODCREED WITH GAVILONOUR GUEST HERE AT THE AGRIBUSINESS DESK TODAY. JARODLET'S TALK ABOUT THESE LATEST YIELD ESTIMATES DO WE CARE? SHOULD WE STILL CARE ABOUT WHAT THEY ARE AND  WHAT THEY COULD BE?  WELL WE DO HAVE TO CARE. PERSONALLY PERSONALLY I HAVEN'T REALLY CARED FOR A WHILE. YOU KNOW WE'RE PROBABLY ENDED THAT CONVERSATIONAL YIELDS THIRTY TO FORTY FIVE DAYS AGO IF ANYTHING THIS LAST REPORT USDA PRETTY MUCH CONFIRMED THAT WE GOT A GOOD CROP OUT THERE WE HAVE A LITTLE BIT BIGGER CROP THAN WE EXPECTED. I THINK CORN JUMPING BY TWO BUSHEL PER ARCECERTAINLY CAUGHT A LOT OF PEOPLE OFF GUARD THE SOYBEAN YIELD IS PROBABLY THE MORE INTERESTING ONE. YOU TRANSITION  FROM WHAT WE'VE BEEN GIVEN TODAY INTO OUR FINAL YIELD MAYBE SEE A LITTLE WIGGLE ROOM IN CORN I WOULD SAY THAT THE WIGGLE ROOM IN SOYBEANS PROBABLY THE LESS THAN MAYBE POINT FOUR POINT FIVE BUSHEL AN ACRE BUT I THINK WE'RE GOING TO HAVE TO MOVE FORWARD FROM THESE YIELDS AND START LOOKING AT THE DEMAND SIDE. OK ON THE DEMAND SIDE WHAT ARE WE SEEING THERE? WELL IT IS REALLY NO DIFFERENT THAN WHAT WE TALKED ABOUT A COUPLE MONTHS AGO ON THE PRO FARMER CROP TOUR USDA  GAVE US A GIFT RIGHT OFF THE BAT SAYING WE GOT THIS RECORD PROGRAM COMING TO US RECORD EXPORTS ON SOYBEANS RECORD ETHANOL USAGE CLOSE TO RECORD CORN EXPORT NUMBERS FEED AND RESIDUAL NUMBERS WERE GOING TO GET A LITTLE PEEK UNDER THE SKIRT IN JANUARY ON WHAT USDAIS DOING WITH FEED AND RESIDUAL ON CORN. SO YOU LOOK AT ALL THESE DEMAND NUMBERS COMBINED RIGHT NOW WE HAVE A ENORMOUS TASK IN FRONT OF US TO ACHIEVE ALL THESE NUMBERS. WE KNOW THAT WE'RE GOING TO HAVE COMPETITION FROM SOUTH AMERICACOME IN ON PIPELINE IN ANOTHER THREE FOUR MONTHS AS THEY GET THEIR CROP ESTABLISHED AND WE'RE REALLY GONNA HAVE TO BANG OUT THE PARK TO MAKE SURE THAT WE DON'T GO BACKWARDS. ON OUR USAGE ESTIMATES WERE TODAY THAT'S REALLY THE MAIN RISK. IT'S VERY  TOUGH TO PAINT A PICTURE WHERE WE CAN INCREASE OUR CURRENT USAGE NUMBERS ON CORN AND SOYBEANS. ALRIGHT WE'LL KEEP AN EYE ON IT. JAROD THANK YOU FOR BEING HERE. WE'LL BE BACK WITH MORE AGDAYIN JUST A MINUTE

WEATHER
WELCOME BACK TO AGDAY, HERE WITH METEOROLOGIST MIKE HOFFMAN. MIKE LOOKING AT THIS SYSTEM HERE THEY'RE TALKING SOME SNOW IN THE NORTHERN PLAINS RIGHT? EVENTUALLY. WE ARE GOING TO SEE THE COMBINATION OF MUCH COLDER AIR AND A STORM SYSTEM COMING IN FROM THE WEST, SO LOTS OF FOLKS THAT HAVEN'T SEEN SNOW SO FAR THIS YEAR, MAY, OVER THE NEXT WEEK. FARTHER EAST WE HAVE A STORM SYSTEM HEADING UP THE EASTERN SEABOARD. THIS WON'T BE PRODUCING A LOT OF RAIN BUT IT WILL CAUSE SOME SHOWERS AS IT MOVES ACROSS NEW ENGLAND OVER THE NEXT TWENTY FOUR TO THIRTY SIX HOURS. OTHER THAN THAT LOTS OF HIGH PRESSURE FROM THE SOUTHEAST THROUGH MOST OF THE SOUTHWEST. THE ACTIVITY WILL START TO INCREASE OVER THE NEXT COUPLE OF DAYS FOR THE NORTHERN TIER OF STATES. LET'S PUT THE MAPS INTO MOTION. YOU SEE THIS FIRST FRONT REALLY DOESN'T HAVE A LOT OF MOISTURE WITH IT MOST OF THOSE SHOWERS ARE GOING TO BE NORTH IN THE SOUTHERN CANADA. WE DO HAVE A LITTLE BETTER GULF MOISTURE KINDA FLOWING NORTHWARD AND THAT WILL PRODUCE SOME CLOUDS BUT I JUST HIT-N-MISS SHOWERS HERE AND THERE, ESPECIALLY IN THE SOUTHEAST. BUT DON'T GET TOO EXCITED ABOUT THAT IN THE DROUGHT AREAS. I DON'T SEE TOO MUCH MOISTURE AT ALL. THE STORM SYSTEM HAS A FAIR AMOUNT OF RAIN AND SNOW AS IT COMES INTO THE A NORTHWESTERN PORTIONS OF THIS COUNTRY. OF COURSE THE SNOW IS GOING TO BE IN THE HIGHER ELEVATIONS THIS TIME OF THE YEAR BUT THAT STORM SYSTEM WILL BE A MOVING EASTWARD AS WE HEAD INTO THE MIDDLE OF THE WEEK SO AS WE HEAD A INTO WEDNESDAY YOU CAN SEE THE SHOWERS MOVE ALONG THE CANADIAN BORDER THERE. BEHIND THIS SYSTEM THEN WE WILL HAVE SOME FAIRLY COLD AIR TRYING TO COME AND SO SOME OF THAT SNOW YOU SEE OVER THE NORTHERN ROCKIES WILL EVENTUALLY COME EASTWARD AS ANOTHER STORM SYSTEM DEVELOPS ALONG THIS FRONT AND MOVES NORTHEASTWARD LATER IN THE WEEK. SO THERE'S A PRECIPITATION ESTIMATE OF THE PAST TWENTY FOUR HOURS IN A LITTLE BIT IN THE MID ATLANTIC. LITTLE BIT IN NORTHERN MINNESOTA BUT THE MAJORITY HAS BEEN IN THE NORTHWEST ESPECIALLY WESTERN WASHINGTON AND OREGON. ADDING ON THE NEXT THIRTY SIX HOURS YOU CAN SEE WE'RE GOING ADD SOME ACROSS NEW ENGLAND AS THAT STORM SYSTEM MOVES ON NORTHWARD. AND WE'RE GOING TO ADD A LITTLE BIT ACROSS THE NORTHERN TIER OF STATES MAINLY IN SOUTHERN CANADA THOUGH AND WE'LL CONTINUE TO SEE SOME MOISTURE IN THE PACIFIC NORTHWEST. SOME OF THAT EVEN GETS IN A NORTHERN CALIFORNIA. AS FAR AS SNOW GOES YOU CAN SEE VERY LITTLE OVER THE PAST TWENTY FOUR HOURS. WE'RE GOING TO INCREASE THAT SNOW OVER THE HIGHER ELEVATIONS OF THE A WESTERN AREAS AS YOU CAN SEE, EVEN SOME OF THOSE MOUNTAINS IN WESTERN WASHINGTON AND OREGON GOING TO SEE SOME OF THE WHITE STUFF. THIS TIME AROUND. LET'S CHECK OUT TEMPS THEN. LOOK AT THE WARMTH OVER THE CENTRAL AND SOUTHERN PLAINS STATES HIGHS IN THE SEVENTY'S EVEN EIGHTY'S IN SOUTHERN TEXAS. YOU CAN SEE VERY PLEASANT TEMPERATURES ACROSS MOST OF THE CORN BELT. LOW TEMPS ARE GOING TO DROP OFF INTO THE THIRTIES AND FORTIES ACROSS THE NORTHERN TIER OF STATES. FIFTIES INTO DIXIE SIXTIES BY THE TIME YOU GET TO THE GULF COAST. AND THEN YOU CAN SEE TOMORROW MORE OF THE SAME; SEVENTIES AND EVEN LOW EIGHTIES ALL THE WAY UP INTO KANSAS AND NEBRASKA, MUCH OF NORTHERN TEXAS. HERE'S THE JET STREAM YOU CAN SEE THE TROUGH IN THE EAST THAT WILL CONTINUE TO MOVE THAT WAY. KIND OF A RIDGE REPLACES IT, BRINGING BACK THE WARMTH BUT THERE'S A BIG STORM SYSTEM BOWLING BALL IN ACROSS THE COUNTRY AS WE HAD THROUGH THE WEEK AND IN THE NEXT WEEK IT'LL BE INTO NEW ENGLAND. THAT'S A LOOK ACROSS A COUNTRY PALACE TAKE A LOOK AT SOME LOCAL FORECASTS. WE HEAD TO LAS VEGAS NEVADA FIRST OF ALL PARTLY TO MOSTLY SUNNY AND MILD HIGH OF SEVENTY SIX. PIERRE SOUTH DAKOTA GOOD DEAL OF SUNSHINE PLEASANT HIGH OF SIXTY FIVE. AND STATESBORO GEORGIA MOSTLY SUNNY PLEASANTLY WARM AFTERNOON HIGH ROUND SEVENTY FOUR DEGREES.

TEASE
OUR DAIRY REPORT WILL FOCUS ON THE MARGIN PROTECTION PROGRAM FOR THE DAIRY INDUSTRY. THAT STORY AFTER THE BREAK. AND LATER, BIO-ENERGY IS ONE THING HOW ABOUT GROWING YOUR OWN FURNITURE WITH MUSHROOMS.

DAIRY INDUSTRY SHARES FRUSTRATIONS WITH INSURANCE LEVELS
THE 2018 FARM BILL IS ONE POLICY CHANGE ON THE MINDS OF THOSE IN FARM COUNTRY-- WHICH WILL HAPPEN UNDER A NEW ADMINISTRATION. DAIRY PRODUCERS IN PARTICULAR ARE FRUSTRATED WITH THEIR CURRENT INSURANCE LEVELS. BETSY JIBBEN TAKES A LOOK AT WHERE THEY WANT TO SEE IMPROVEMENT. A GLUT OF DAIRY PRODUCT IS WEIGHING ON THE MARKET AND THE EFFECTS ARE TRICKLING DOWN TO THE PRODUCER. "THE COST OF MILK WE'RE RECEIVING NOW IS AT OR BELOW THE COST OF PRODUCTION FOR THE MAJORITY OF PEOPLE. CERTAINLY A DOWNWARD TREND SINCE 2014," DAIRY PRODUCERS ACROSS THE MIDWEST SAY THEIR INSURANCE IS NOT RELIEVING  PRICES EITHER. PRODUCERS MAY USE THE MARGIN PROTECTION PROGRAM UNDER THE CURRENT FARM BILL. BUT INDUSTRY LEADERS SAY MPP IS NOT SET UP THE WAY AS WAS PROPOSED AND NOT AS EFFECTIVE AS HOPED. "TWO YEARS AGO WE BOUGHT UP AND BOUGHT THE INSURANCE. LAST YEAR TOO. WE HAVEN'T TAKEN A PENNY OUT OF IT AND ALL WE'VE DONE IS FEED IT. THE PROGRAM IS BROKEN," INDUSTRY LEADERS SAY THE FEED FORMULA WAS CHANGED 10 PERCENT DUE TO BUDGET CONSTRAINTS. IT TOOK OFF A DOLLAR A HUNDRED WEIGHT AND CHANGED THE COVERAGE. "HAD WE STUCK WITH THE ORGINIAL NUMBERS FOR THE FORMULA BEFORE THEY WERE CHANGED, BECAUSE OF COST CONCERNS, WE WOULD HAVE SEEN A LOT MORE PAYOUTS," "BUT UNDER HTE PROPOSAL, FARMERS COULD HAVE GOTTEN PAYMENTS UP TO 4 DOLLARS. WE WERE CLOSE TO CATASTROPHIC LEVELS BUT BECUASE OF HTE BUDGET, THAT DIDN'T HAPPEN. PEOPLE ARE REALLY FRUSTRATED," THAT'S WHY THE INDUSTRY BELIEVES THE INSURANCE NEEDS TO BE CHANGED IN THE NEXT FARM BILL. SOME SAY THAT ISN'T SOON ENOUGH. THE NATIONAL MILK PRODUCERS FEDERATION IS EXPLORING OPTIONS FOR IMPROVING MPP. THAT COULD MEAN ATTACHING IT TO A BILL PRIOR TO THE NEW FARM BILL. RESPRESENTATIVES SAY THEY HOPE TO AGREE ON A COURSE OF ACTION WHEN THE BOARD OF DIRECTORS MEET NEXT IN MARCH. "WE WANT TO LOOK AT REGIONAL FEED COSTS, GETTING BACK TO THE ORGINIAL RATES PROPOSED, WE WANT TO LOOK TO SEE IF THE PREMIUMS ARE RIGHT. WE WANT TO LOOK AT DIFFERENT TERRIFFS IN THE PROGRAM," WHILE IT'S WISHFUL THINKING -SOME SAY TRYING TO MAKE THE CHANGE BEFORE THE NEXT FARM BILL WILL BE DIFFICULT. "I DON'T KNOW IF THEY CAN POLITICALLY GO BACK AND FIX IT OR NOT OR ADJUST WHO WILL BE ELGIBLE OR ANYTHING LIKE THAT BUT WE'RE ALWAYS FIGHTING THE FEDERAL BUDGET WITH THE DEFICIT SO LARGE, IT'S GOING TO BE AN UPHILL BATTLE TO GET A FIX WHICH WILL HELP EVERYONE," CALIFORNIA PRODUCERS ARE SOUR TOWARDS THE MPP PROGRAM TOO. SOME CALIFORNIA PRODUCERS FEEL THEIR LOCATION MAKES A DIFFERENCE WITH THEIR MARGIN PROTECTION PROGRAM INSURANCE COVERAGE AS WELL. "MOST OF THOSE GOVERNMENT PROGRAMS AREN'T GEARED FOR CALIFORNIANS. WE GET A LITTLE BENEFIT OUT OF THOSE THINGS. THE WAY THEY VALUE MILK  AND FEED, IT'S A MIDWESTERN CALCULATION, WHICH IS DIFFERENT FROM CALIFORNIA," POLICY THE DAIRY INDUSTRY NEEDS... AS THEY DEAL WITH AN EXCESS PRODUCT... "WE GO THROUGH GOOD TIMES AND BAD TIMES AND ABSORB SOME OF THOSE TIMES WITH LOSSES. THAT'S THE NATURE OF THE BUSINESS." NMPFREPRESENTATIVES SAY ITS POSSIBLE TO GET MPPADJUSTMENTS EARLIER, IF IT WERE ABLE TO BE ATTACHED TO ANOTHER BILL IN CONGRESS. THEY ALSO SAY, CURRENTLY, THERE'S NO PLAN TO INCLUDE REGIONAL ADJUSTMENTS IN PRICING, FEED COSTS OR MILK PRICES IN THE FINAL LEGISLATION.

TEASE
WHEN WE COME BACK WE'LL SEE HOW MANUFACTURERS ARE HARNESSING THE POWER OF MICRO-ORGANISMS AND FUNGUS TO CREATE FUNCTION PRODUCTS LIKE FURNITURE.

IN THE COUNTRY
IN THE COUNTRY - BROUGHT TO YOU BY KUBOTA'S BX AND L SERIES COMPACT TRACTORS -AVAILABLE NOWWITH A SIX-YEAR LIMITED POWERTRAIN WARRANTY.  LEARN MORE TODAY AT YOUR LOCAL KUBOTA DEALER.  WE'VE TALKED A LOT OVER THE YEARS ABOUT THE BIO-ECONOMY...USING PLANTS AND BACTERIA TO CREATE USEFULPRODUCTS. SO FAR, THE YOUNG FIELD OF MANUFACTURING WITH MICRO-ORGANISMS IS STILL MORE ABOUT PROMISE THAN ACTUAL PRODUCTS...BUT PROGRESS IS BEING MADE. MICHAEL HILL REPORTS. THIS STOOL TOOK SHAPE WITH HELP FROM MUSHROOMS. THESE BRICKS ARE THICK THANKS TO BACTERIA. MICRO-ORGANISMS ARE SHAPING UP TO BE THE NEW BUILDING BLOCKS.... AS MORE BUSINESSES ARE LITERALLY GROWING CLOTHES AND MATERIALS. ECOVATIVE IN UPSTATE NEW YORK MAKES FURNITURE BOARDS WITH MYCELIUM, THE STRINGY FIBERS FROM FUNGUS. "IT'S LIKE GROWING A TREE INTO THE SHAPE OF YOUR FURNITURE, BUT RATHER THAN A TREE, WE'RE USING MUSHROOMS." ECOVATIVE PACKS MYCELIUM WITH BITS OF STALKS AND STEMS INTO BAGS. OVER DAYS IT GROWS INTO A MOLDABLE MIX THEY SELL AS PACKAGING MATERIAL. THEY ALSO CREATE BOARDS BY ADDING HEAT AND PRESSURE. "I THINK WE ARE BECOMING LIKE A DOW OR A DUPONT. WE HAVE APPLICATIONS IN PACKAGING, IN INSULATION. ESSENTIALLY, EVERYTHING FOR YOUR HOME, GROWN, RIGHT, FROM YOUR WALLS TO THE STRUCTURAL MATERIAL, TO THE FURNITURE, TO EVEN THE THINGS YOU PUT ON YOUR DESK." IN NORTH CAROLINA, BIOMASONMAKES BRICKS WITHOUT FIRING UP A KILN. BACTERIA IS ADDED INTO SAND AND PLACED INTO MOLDS. THE BRICKS GET THEIR STRENGTH FROM THE SAME PROCESS THAT MAKES CORAL REEFS SO SOLID. THE INDUSTRY IS STILL YOUNG... BUT PROPONENTS THINK THESE BIO-FABRICATED MATERIALS WILL ONE DAY STACK UP IN THE MARKET. MICHAEL HILL, ASSOCIATED PRESS

CLOSE
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.

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