AgDay Daily Recap - February 18, 2011

February 18, 2011 04:51 AM
 

TODAY ON AGDAY:
FEBRUARY 18, 2011

CHICAGO FED LAND VALUES:
GOOD MORNING. IS THE AMERICAN FARMER AND RANCHER REACHING A GOLDEN ERA FOR PRODUCTION? IT'S A QUESTION BEING ASKED FROM WASINGTON DC TO THE WASHINGTON STATE COAST. FROM COMMODITY AND CATTLE PRICES, TO INCOME FORECASTS, TO EQUIPMENT PURCHASES, THE TRENDS ARE UP AND APPEAR TO BE HEADING HIGHER. IT’S A CONCERT OF PIECES THAT TOGETHER CONTINUE TO SET RECORDS ACROSS THE AGRICULTURAL INDUSTRY. WE BEGIN WITH FARMLAND PRICES. THE FEDERAL RESERVE BANK IN CHICAGO, WHICH REPRESENTS THE HEART OF THE CORNBELT, SAYS THE VALUE OF GOOD FARMLAND ROSE 12% LAST YEAR. THAT'S THE SECOND LARGEST INCREASE IN THREE DECADES. STATE BY STATE, IOWA FARMLAND VALUES LED THE SURGE, UP 18%. ILLINOIS AND INDIANA FOLLOWED WITH DOUBLE DIGIT GAINS. THE CHICAGO FED SAYS DIVERSITY OF AGRICULTURE IN WISCONSIN AND MICHGAIN PROBABLY LIMITED THE GROWTH IN FARMLAND VALUES SINCE THE PRINCIPAL DRIVER OF THE CURRENT BOOM HAS BEEN CORN AND SOYBEAN PRODUCTION. STILL, THE VALUES ARE UP IN THOSE TWO STATES AS WELL.

COMMODITY PRICES:
HIGHER LAND VALUES ARE BEING DRIVEN, IN PART, BY DEMAND AS COMMODITY PRICES CONTINUE TO RISE. COTTON FUTURES ON THURSDAY REACHED ANOTHER ALL TIME RECORD SURPASSING $2.00 A POUND FOR THE FIRST TIME IN AMERICAN HISTORY. CORN TRADED OVER SEVEN DOLLARS, SOYBEANS DANCED NEAR 14 AND WHEAT IS APPROACHING 8 AND HALF DOLLARS PER BUSHEL. CATTLE MARKET FUTURES ALSO SURGED TO RECORD NUMBERS WITH MARCH FEEDER CATTLE NUMBERS HITTING 130 PER HUNDRED.

NFMS:
BACK TO THE FED REPORT, 67% OF THE BANKERS WHO WERE SURVEYED ON LAND VALUES ARE FORECASTING HIGHER PURCHASES OF MACHINERY AND EQUIPMENT THIS YEAR. AND ONE OF THE PLACES WHERE FARMERS ARE LOOKING IS THE NATIONAL FARM MACHINERY SHOW. IT'S NOW UNDERWAY AT THE KENTUCKY EXPOSITION CENTER IN LOUISVILLE. NOW IN ITS 46TH YEAR, THIS SHOW IS BILLED AS THE NATION'S LARGEST INDOOR FARM SHOW. THE FARM JOURNAL TEAM HAS A BIG PRESENCE AT THE SHOW. THEY REPORT THE EXHIBITION FLOORS ARE VERY BUSY...AND MOODS ARE OPTIMISTIC.

DEERE EARNINGS:
THE WORLD'S LARGEST EQUIPMENT MAKER IS BENEFITTING FROM STRONG GRAIN PRICES. JOHN DEERE IS REPORTING A FIRST QUARTER PROFIT OF MORE THAN 500-MILLION-DOLLARS...DOUBLE WHAT IT DID A YEAR AGO. SALES ARE UP 21% IN ITS AG DIVISION. DEERE SAYS PRODUCTION CONSTRAINTS TIED TO THE NEW TIER-4 ENGINES WILL ALLOW FOR ONLY MODEST GROWTH IN THE MONTHS AHEAD.

INTERIM FOUR:
AS OF THE FIRST OF THE YEAR TRACTOR MANUFACTURERS AND ENGINES MAKERS WERE REQUIRED TO MEET THE 2011 EMISSION STANDARDS FOR ENGINES IN 174 HORSE POWER PLUS TRACTORS. IT WAS A MANDATE HANDED DOWN BY EPA TO LOWER EMISSIONS AND PARTICULATE MATTER IN DIESEL ENGINES. AGDAY'S MICHELLE ROOK RECENTLY TALKED TO SOME OF THE MAJOR MANUFACTURERS ABOUT HOW THEY ARE MEETING THOSE STANDARDS AND WHAT ADVANTAGES THE TECHNOLOGY HOLDS FOR THEIR CUSTOMERS. ALL OF THE EQUIPMENT MAKERS SAY THE NEW ENGINES DELIVER UNCOMPROMISED HORSEPOWER AND TORQUE, DESPITE THESE MAJOR CHANGES IN THE ENGINES FARMERS ARE FAMILIAR WITH.

SAPUTO CHEESE:
IN AGRIBUSINESS THIS MORNING CANADIAN-BASED SAPUTO INCORPORATED SAYS IT'S BUYING FAIRMOUNT CHEESE HOLDINGS.  FAIRMOUNT IS THE PARENT COMPANY OF DCI CHEESE COMPANY WHICH MARKETS SPECIALTY CHEESE FROM FACILITIES IN GREEN BAY WISCONSIN AND CARLSTADT NEW JERSEY. SAPUTO IS THE 12TH LARGEST DAIRY PROCESSOR IN THE WORLD.

MEXICO CORN:
FROM CANADA TO MEXICO, CORN STOCKS IN NORTH AMERICA MAY GET EVEN TIGHTER. THE US AG ATTACHE IN MEXICO SAYS COLD WEATHER MAY CAUSE MAJOR LOSSES THE COUNTRY'S CORN CROP. THEY SAY A COLD SNAP AT THE BEGINNING OF FEBRUARY MAY COST THE COUNTRY 3 MILLION METRIC TONS. FARMERS HOPE TO GET MANY OF THE ACRES REPLANTED BY THE END OF THE MONTH.

ANALYSIS:
GARY WILHELMI

IN THE COUNTRY; HEALTHY HARTSVILLE:
MANY PEOPLE IN ONE RURAL TENNESSEE TOWN SPENT THE PAST YEAR EATING BETTER AND GETTING MORE EXERCISE. THANKS TO A PROGRAM FROM THE U-T EXTENSION, THE "GET HEALTHY" CAMPAIGN REALLY SEEMS TO BE WORKING. IN THIS REPORT FROM UT, CHUCK DENNEY SHOWS US WHAT CAN HAPPEN WHEN YOU PRACTICE GOOD HEALTH HABITS. KEEPING WITH THE THEME OF HEART HEALTHY...UP NEXT WE'LL TELL YOU ABOUT THREE CUTS OF BEEF THAT JUST GOT THE "SEAL OF APPROVAL." FOOD AND YOUR FAMILY IS STRAIGHT AHEAD.

HEART HEALTHY BEEF:
IN FOOD AND YOUR FAMILY BEEF IS GETTING VERFIED AS HEART HEALTHY. THE BEEF CHECKOFF PROGRAM SAYS THE AMERICAN HEART ASSOCIATION HAS LISTED THREE BEEF CUTS AS PART OF ITS FOOD CERTIFICATION PROGRAM. THIS CERTIFICATION ALLOWS RETAILERS TO DISPLAY THE HEART-CHECK MARK ON THE PACKAGES. THE CUTS THAT MET THE AMERICAN HEART ASSOCIATION'S CRITERIA FOR EXTRA LEAN INCLUDE BONELESS TOP SIRLOIN PETITE ROAST, TOP SIRLOIN FILET AND TOP SIRLOIN KABOB. ALL THREE ARE IN THE "SELECT" GRADE AND ARE NOW CERTIFIED TO DISPLAY THE HEART-CHECK MARK.

POULTRY OVERTAKES BEEF:
DESPITE THOSE HIGH MARKS FROM THE HEART ASSOCIATION, IT APPEARS BEEF WILL HAVE SOME STIFF COMPETITION FROM THE POULTRY SECTOR WHEN IT COMES TO THE CONSUMER DOLLAR. USDA'S ECONOMIC RESEARCH SERVICE RELEASED ITS ECONOMIC OUTLOOK FOR THE NEXT TEN YEARS. IT'S PREDICTING POULTRY WILL OVER-TAKE RED MEAT IN THE AMERICAN DIET WITHIN TEN YEARS. THE AG DEPARTMENT SAYS PART OF THE REASON IS HIGH FEED COSTS. THE ECONOMISTS SAY POULTRY PRODUCERS CAN REACT QUICKER TO FEED COST CHANGES.

CONTACT PAGE:
WE'D LOVE TO HEAR FROM YOU! CONTACT US AT 800-792-4329. OR DROP AN EMAIL TO INFO@AGDAY.COM. . YOU CAN ALSO CHECK US OUT ON SOME OF THAT NEW TECHNOLOGY, AT WWW.FACEBOOK.COM/AGDAY .
 

 

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