AgDay Daily Recap - February 15, 2011

February 15, 2011 02:35 AM
 

TODAY ON AGDAY:
FEBRUARY 15, 2011

2012 BUDGET:
GOOD MORNING. PRESIDENT OBAMA SENT CONGRESS HIS 3.7 TRILLION DOLLAR BUDGET PROPOSAL ON MONDAY. IT CALLS FOR SPENDING CUTS AND TAX INCREASES. LOOKING AT AGRICULTURE, THE PRESIDENT PROPOSES 23.9 BILLION IN DISCRETIONARY FUNDING. THAT 'S A DECREASE OF ABOUT 3 BILLION DOLLARS FROM FISCAL YEAR 2010 LEVELS. THE PROPOSED BUDGET FOCUSES ON RENEWABLE ENERGY DEVELOPMENT. IT ALSO CUTS DIRECT-PAYMENT SPENDING.  WE'VE PUT SOME LINKS OF THE PRESIDENT'S PROPOSED BUDGET - SPECIFICALLY FOR THE AG DEPARTMENT - ON OUR HOMEPAGE. AND OF COURSE, FRONT-PAGE COVERAGE ON www.agweb.com .

AG EXPORTS:
ONE ASPECT OF THE OVERALL FISCAL PLAN, AS THE PRESIDENT SAID DURING HIS STATE OF THE UNION LAST MONTH, IS TO INCREASE EXPORTS. U.S. FARM EXPORTS HAVE BEEN ONE OF THE FEW BRIGHT SPOTS IN THE ECONOMY, HITTING JUST UNDER 116-BILLION DOLLARS IN CALENDAR YEAR 2010. THAT'S AN ALL-TIME HIGH. IT ECLIPSED THE PREVIOUS RECORD SET IN 2008 BY NEARLY A BILLION DOLLARS. USDA SAYS THERE WAS A RISE BOTH IN THE VALUE AND VOLUME OF U.S. AGRICULTURAL GOODS THAT WERE SHIPPED OUT. SOYBEANS WERE THE LARGEST EXPORTED AG PRODUCT...AND MORE THAN HALF WENT TO CHINA. AND FOR THE FIRST TIME, CHINA EMERGED AS THE TOP MARKET, OVERTAKING CANADA.

BEEF SHIPMENTS:
ONE OF THE REASONS FOR THE EXPORT RECORD IS REBOUNDING BEEF EXPORTS. STATISTICS RELEASED BY USDA AND COMPILED BY THE U.S. MEAT EXPORT FEDERATION SHOWS THAT 2010 WAS THE BEST YEAR EVER FOR U.S. BEEF EXPORT VALUE. USMEF SAYS A FINAL TOTAL OF JUST OVER FOUR BILLION DOLLARS BREAKS PREVIOUS HIGH SET IN 2003 OF 3.8 BILLION. AND THAT WAS BEFORE THE BSE OUTBREAK THAT DEVASTATED BEEF MARKETS. LAST YEARS TOTAL EXCEEDED 2009 LEVELS BY A BILLION DOLLARS. IT WAS A 19% INCREASE BY VOLUME.  INDUSTRY LEADERS SAY EXPORTS ARE IMPORTANT FOR MAINTAINING MARKET VALUE.

WINTER FEEDING:
IT'S BEEN A LONG COLD WINTER - - ESPECIALLY THE PAST COUPLE OF WEEKS - - FOR CATTLE RANCHERS. RECORD COLD AND SNOW MAKE IT TOUGH TO GET FEED AND HAY TO THE HERDS. IN NORTH DAKOTA, MANY RANCHERS ARE FORTUNATE TO HAVE PLENTY OF HAY. THAT'S BECAUSE OF THE BIG CROP THEY HAD LAST SUMMER. CLIFF NAYLOR FROM AFFILIATE KFYR IN BISMARCK TAKES US TO ONE FEEDLOT WHERE COLD WEATHER IS A WAY OF LIFE.

LEGACY TEASE:
WHEN CONGRESS APPROVED THE EXTENSION OF TAX CUTS LAST DECEMBER, IT ALSO MADE SOME DECISIONS THAT COULD AFFECT YOUR ESTATE PLANNING. IF YOU'RE WONDERING HOW THOSE DECISIONS COULD IMPACT YOUR FAMILY FARM, BE SURE TO JOIN US THURSDAY FOR OUR MONTHLY EPISODE OF LEAVE A LEGACY. SHOW-HOST KEVIN SPAFFORD IS JOINED BY ATTORNEY TOM O'DIAM WHO SPECIALIZES IN FARM FAMILIES WORKING ON THEIR SUCCESSION PLAN.

AMYLASE DEREG:
IN AGRIBUSINESS THE ETHANOL INDUSTRY GETS ANOTHER TOOL IN ITS BELT TO AID IN THE CREATION OF FUEL. THE USDA DEREGULATED AMYLASE CORN. A GENETICALLY ENGINEERED VARIETY, IT CONTAINS AN ENZYME THAT HELPS BREAK DOWN STARCH IN THE KERNEL. DEVELOPER-SYNGENTA-SAYS IT REDUCES THE AMOUNT OF ENERGY REQUIRED TO PRODUCE ETHANOL. SEVERAL GROUPS ARE CONCERNED IT COULD END UP IN FOOD. SYENGENTA SAYS SPECIAL STEPS ARE BEING TAKEN TO MAKE SURE THE VARIETY ISN'T MIXED WITH FIELD CORN

ANALYSIS:
GREG WAGNER

IN THE COUNTRY; SHEEP CHEESE:
WHETHER THEY'RE THE HIGH FALOOTIN TYPES, OR IN A COUNTRY KITCHEN...IT DOESN'T TAKE LONG TO REALIZE PEOPLE ARE PASSIONATE ABOUT THEIR CHEESE. FROM PENNSYLVANIA, TO WISCONSIN EVEN CALIFORNIA...QUALITY CHEESE AS A SNACK OR EVEN HORDUERVES IS HARD TO BEAT. TODAY ON IN THE COUNTRY TRACEY SELLERS OF CALIFORNIA COUNTRY TV INTRODUCES US TO A FAMILY PASSIONATE ABOUT SHEEP AND THE CHEESE THEY HELP TO CREATE. THANKS TRACEY.  BELLWEATHER FARMS RAISES ABOUT 1,200 LAMBS AND PRODUCES 10,000 POUNDS OF SHEEP'S MILK CHEESE EVERY YEAR.  FROM WOOL TO COTTON...THE COST OF CLOTHING IS GOING UP..FOOD AND YOUR FAMILY IS NEXT.

CLOTHING PRICES:
GROCERY PRICES AREN'T THE ONLY THING GOING UP. IN FOOD AND YOUR FAMILY THIS MORNING, RETAILERS ARE RAISING THE PRICE OF CLOTHES, BLAMING HIGHER INPUT COSTS AND INCREASING DEMAND.  RETAILERS SAY CLOTHING PRICES HAVE BEEN DROPPING FOR THE LAST DECADE, THANKS TO CHEAP OVERSEAS LABOR, TAME INFLATION AND FABRIC BLENDS. BUT AS THE WORLD ECONOMY STRENGTHENS AND DEMAND RISES, MANY EXPECT A 10% INCREASE IN CLOTHING PRICES THIS YEAR. COTTON ALONE IS UP 160% IN THE LAST TWELVE MONTHS. BUT AS THE NATIONAL COTTON COUNCIL POINTS OUT...NOT ALL OF THAT INCREASE CAN BE ATTRIBUTED TO A MORE EXPENSIVE COMMODITY.
RETAILERS EXPECT THE MAJORITY OF PRICE INCREASES WILL START SHOWING UP IN THE SECOND HALF OF THE YEAR.

 

 

Back to news


Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close