AgDay Daily Recap - August 18, 2011

August 18, 2011 04:06 AM
 

TODAY ON AGDAY:
AUGUST 18, 2011

TEXAS DROUGHT:
TO USE THE WORD "HISTORIC" WHEN DESCRIBING THE DROUGHT IN TEXAS WOULD NOT DO IT JUSTICE. PERHAPS A BETTER WORD IS "COSTLY". THE TEXAS AGRI-LIFE EXTENSION JUST RELEASED ITS NEWEST ANALYSIS OF THE DROUGHT IMPACT ON AGRICULTURE AND IT'S GRIM.
ECONOMISTS IN TEXAS SAY THE DROUGHT HAS LED TO A RECORD 5.2 BILLION DOLLARS IN AGRICULTURAL LOSSES, MAKING IT THE MOST COSTLY DROUGHT ON RECORD. THE LOSSES THIS YEAR FAR EXCEED THE PREVIOUS RECORD OF FOUR BILLION DOLLARS DURING THE 2006 DROUGHT. AND THEY WARN OF FURTHER LOSSES IF RAINFALL DOES NOT COME SOON TO ESTABLISH THE WINTER WHEAT CROP AND WHEAT GRAZING.

COTTON CROP:
ONE OF THE BIG REASONS FOR THOSE MASSIVE LOSSES IS THE LACK OF A TEXAS COTTON CROP. AT SEVEN MILLION ACRES, THE LONE-STAR STATE PRODUCES ABOUT A THIRD OF THE NATION'S CROP. IN THIS REPORT FROM THE TEXAS FARM BUREAU, MATT FELDER LOOKS AT THE COTTON FAILURE. MATT WILL BE BACK LATER TO SHOW US THE LATEST EFFORTS TO IMPROVE ON DROUGHT RESISTANT COTTON. MEANWHILE, TEXAS AGRI-LIFE ECONOMISTS SAYS THESE LOSS ESTIMATES DO NOT INCLUDE LOSSES TO FRUIT AND VEGETABLE PRODUCERS, HORTICULTURAL AND NURSERY CROPS. IN THAT REGARD - THE ECONOMISTS SAY - THESE ESTIMATES ARE CONSIDERED CONSERVATIVE.

BEEF TODAY REPORT; LIVESTOCK LOSSES:
OUR BEEF TODAY REPORT CONTINUES TO LOOK AT THE TEXAS AGRICULTURAL LOSSES. THE FIVE BILLION DOLLLAR TOTAL TAKES INTO ACCOUNT THE ONE BILLION-DOLLAR IN DROUGHT LOSSES PREVIOUSLY REPORTED IN MAY. THOSE WERE PRIMARILY RELATED TO THE LIVESTOCK INDUSTRY, SUCH AS SUPPLEMENTAL COSTS AND LOST GRAZING. THE STATE'S CATTLE PRODUCERS CONTINUE TO CULL HERDS AT HISTORIC LEVELS AND SPEND MONEY ON EXPENSIVE SUPPLEMENTAL FEED. OF THE FIVE BILLION DOLLAR TAB, TWO BILLION IS IN THE LIVESTOCK SECTOR ALONE. MUCH OF THE INCREASE IS BASED ON HIGHER SUPPLEMENTAL FEED COSTS, LIKE HAY. THERE ARE ALSO MARKET LOSSES. TEXAS AGRI-LIFE SAYS MARKET LOSSES INCLUDE THE IMPACT OF FEWER POUNDS SOLD PER CALF AND THE IMPACT OF LOWER MARKET PRICES DUE TO THE LARGE NUMBER OF CATTLE GETTING SOLD OFF.

BEEF TODAY REPORT; TRUCK LIMITS:
MEANWHILE, STATES THAT ARE ANXIOUS TO GET HAY FOR THEIR LIVESTOCK HERDS ARE GETTING SOME HELP FROM SOUTH DAKOTA. THIS WEEK, THE STATE GAVE APPROVAL FOR SOUTH DAKOTA TRUCKERS TO TEMPORARILY HAUL HAY BALES TO OTHER STATES WITHOUT GETTING THE STATE PERMITS NORMALLY NEEDED FOR OVERSIZE VEHICLES. SOUTH DAKOTA'S GOVERNOR SIGNED THE EXECUTIVE ORDER WHICH SUSPENDS THE NEED FOR OVERSIZE VEHICLE PERMITS UNTIL OCTOBER 26TH. STATE OFFICIALS SAY THE SUSPENSION OF THE OVERSIZE TRUCK PERMIT WILL HELP TRUCKERS AND SOUTH DAKOTA PRODUCERS GET HAY TO THOSE DROUGHT-STRICKEN AREAS. BE SURE TO CLICK ON WWW.BEEFTODAY.COM FOR REGULAR UPDATES ON THE BEEF INDUSTRY.

LEVEE REBUILD:
THE U.S. ARMY CORPS OF ENGINEERS IS COMING UNDER FIRE FOR ITS PLAN TO RE-BUILD A BLOWN MISSOURI LEVEE. THE CORPS BLEW THE "BIRDS POINT" LEVEE EARLIER THIS SPRING TO REDUCE FLOODING OF THE MISSISSIPPI RIVER. ABOUT 130,000 ACRES OF MISSOURI FARMLAND GOT SWAMPED. THE CORPS IS RE-BUILDING THAT LEVEE BUT IT'S PLANNING TO BUILD IT UP TO ONLY 51 FEET. THAT'S ELEVEN FEET SHORTER THAN BEFORE THE FLOOD. THE MISSOURI FARM BUREAU SAYS THIS DECISION IS "IMPOSSIBLE TO UNDERSTAND" AND SAYS IT WILL DEVASTATE HUNDREDS OF HARD WORKING FARM FAMILIES.

LUNCH AND LEARN:
THANKS MIKE. IF YOU'RE HEADED TO THE FARM PROGRESS SHOW LATER THIS MONTH, YOU HAVE AN OPPORTUNITY TO GET A FREE LUNCH, ON US.  ONCE AGAIN, AGDAY IS HOSTING OUR VERY POPULAR "LUNCH AND LEARN" PROGRAM AT THE FARM PROGRESS SHOW. THIS YEAR, IT'S IN DECATUR, ILLINOIS. OUR LUNCH IS SET FOR TUESDAY AUGUST 30TH. WE'LL HAVE SEVERAL OF OUR POPULAR MARKETING EXPERTS ON-HAND. PLUS, YOU GET LUNCH AND A NICE PLACE TO SIT-DOWN. BUT DON'T WAIT - SEATING IS LIMITED. RESERVATIONS ARE ON A FIRST-COME, FIRST SERVE BASIS. SO PLEASE EMAIL US. SEND IT TO INBOX-AT-AGDAY-DOT-COM. AND YES, IF YOU DON'T HAVE EMAIL, YOU CAN CALL US AT 800-792-4329....THAT'S 800-79-AGDAY. WE'LL NEED YOUR NAME AND NUMBER IN YOUR PARTY. FOLKS FROM OUR OFFICE WILL CONTACT YOU TO CONFIRM.

DEERE:
IN AGRIBUSINESS, DEERE AND COMPANY REPORTED A HIGHER-THAN-EXPECTED QUARTERLY PROFIT ON WEDNESDAY. THE EQUIPMENT MAKER SAYS INTERNATIONAL DEMAND FOR LARGE MACHINES AND A WEAKER U-S DOLLAR HELPED THEIR BOTTOM LINE. INTERNATIONAL SALES GREW NEARLY FIVE TIMES FASTER THAN U.S. AND CANADIAN SALES IN THE THIRD QUARTER. NET EARNINGS ROSE 15% TO 712 MILLION DOLLARS.

ANALYSIS:
SUE MARTIN

IN THE COUNTRY; DROUGHT FIGHTER:
EARLIER IN THIS PROGRAM WE TALKED ABOUT THE DEVASTATING DROUGHT IN TEXAS. AG ECONOMISTS NOW SAY IT'S CAUSED MORE THAN FIVE BILLION DOLLARS IN AGRICULTURAL LOSSES. SOME OF THOSE LOSSES ARE ASSOCIATED WITH THE TEXAS COTTON CROP. FOR YEARS, SCIENTISTS IN BOTH THE PUBLIC AND PRIVATE SECTORS HAVE BEEN WORKING ON DROUGHT TOLERANT VARIETIES. MATT FELDER FROM THE TEXAS FARM BUREAU RE-JOINS US NOW TO TALK ABOUT SOME OF THE LATEST RESEARCH. THANKS MATT. INTERESTING RESEARCH. STILL TO COME - CRANBERRIES AND CATFISH. FOOD AND YOUR FAMILY IS NEXT.

CRANBERRY SEASON:
IN FOOD AND YOUR FAMILY, U-S CRANBERRY GROWERS ARE SET TO DELIVER A HUGE CROP THIS YEAR - PERHAPS IT’S SECOND LARGEST ON RECORD. USDA SAYS 7.5 MILLION BARRELS OF CRANBERRIES WILL GO OUT THIS YEAR. THAT'S A 10% JUMP ON LAST YEAR. WISCONSIN LEADS THE NATION IN CRANBERRY PRODUCTION. THE STATE GROWER ASSOCIATION SAYS PRODUCERS WILL YIELD FOUR-POINT-THREE MILLION BARRELS THIS YEAR. MASSACHUSETTS IS EXPECTED TO SHIP TWO MILLION BARRELS. THE CROP WAS ABOUT THREE WEEKS BEHIND IN JUNE, BUT THEN THE JULY HEAT AND SUNSHINE HELP THE CROP CATCH-UP. HARVEST BEGINS IN ABOUT A MONTH.

CATFISH:
AUGUST IS NATIONAL CATFISH MONTH. UNFORTUNATELY, IT GETS A LITTLE MORE DIFFICULT TO CELEBRATE EACH YEAR. MANY U.S. CATFISH PRODUCERS ARE FACING THE SAME CHALLENGES THEY WRESTLED WITH IN RECENT YEARS - HIGH FEED COSTS AND STIFF COMPETITION FROM CHEAPER, IMPORTED FISH. IN ARKANSAS, CATFISH PROCESSING IS DOWN 37-PERCENT FROM THE SAME PERIOD LAST YEAR. SOME PRODUCERS HAVE LEFT THE BUSINESS DUE TO COMPETITION IN SOUTHEAST ASIA. IMPORTS ARE UP 64% FROM MAY OF LAST YEAR. BUT ACCORDING TO THE UNIVERSITY OF ARKANSAS, THERE IS SOME OPTIMISM THAT THE INDUSTRY IS RECOVERING. THE AVERAGE PRICE PAID TO CATFISH PRODUCERS WAS A $1.23 A POUND IN JUNE. THAT'S 44 CENTS HIGHER THAN JUNE OF 2010.
 

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