AgDay Daily Recap - July 08, 2011

July 11, 2011 05:21 AM
 

TODAY ON AGDAY:
JULY 08, 2011

CAGED EGGS:
WE HAVE ALL OF THOSE STORIES, BUT WE BEGIN THIS MORNING WITH A MAJOR DEVELOPMENT THAT COULD IMPACT ALL OF ANIMAL AGRICULTURE. THE HUMANE SOCIETY OF THE UNITED STATES AND THE UNITED EGG PRODUCERS ANNOUNCED AN AGREEMENT THAT WOULD DO-AWAY WITH CONVENTIONAL CAGES USED BY A MAJORITY OF THE EGG-LAYER INDUSTRY. THE TWO GROUPS AGREED TO WORK TOGETHER TOWARD THE ENACTMENT OF NEW FEDERAL LEGISLATION FOR ALL 280 MILLION HENS INVOLVED IN U-S EGG PRODUCTION. THE PROPOSED MEASURE WOULD REQUIRE DOUBLING THE AMOUNT OF SPACE CURRENTLY ALLOTTED FOR HOLDING CAGES. IF PASSED BY CONGRESS, THIS WOULD BE THE FIRST FEDERAL LAW ADDRESSING THE TREATMENT OF ANIMALS ON FARMS, AND NOT JUST EGG LAYING HENS. IT WOULD SUPERCEDE STATE LAWS IN PLACE. THE CHANGES WOULD BE PHASED IN OVER SEVERAL YEARS. WHAT DO YOU THINK ABOUT THE AGREEMENT? DOES IT SET A PRECEDENT FOR ANIMAL AGRICULTURE? SEND YOUR COMMENTS TO THE AGDAY INBOX. THE ADDRESS IS INBOX@AGDAY.COM.

ETHANOL DEAL:
A DEAL IS ON THE SENATE TABLE THAT WOULD IMMEDIATELY END A TAX-CREDIT FOR ETHANOL. SENATORS AMY KLOBUCHAR OF MINNESOTA, JOHN THUNE OF SOUTH DAKOTA AND DIANNE FEINSTEIN OF CALIFORNIA ARE PROPOSING TO DIVERT THE MONEY MARKED FOR THE ETHANOL TAX CREDIT, TO GO TOWARDS DEBT REDUCTION. WASHINGTON CONSULTANT JIM WEES-MEYER REPORTS THAT THE SENATE DEAL WOULD REPEAL THE NEARLY SIX- BILLION-A-YEAR ETHANOL SUBSIDY AND END THE TARIFF ON FOREIGN ETHANOL BY THE END OF THIS MONTH. THE MONEY WOULD BE DIVERTED TOWARD THE FEDERAL DEFICIT...WHILE KEEPING IN PLACE INCENTIVES FOR CELLULOSIC BIOFUELS FOR THREE MORE YEARS. THE NEWS HELPED FEEDER CATTLE FUTURES ON THE CHICAGO BOARD OF TRADE CLIMB TO NEW HIGHS. SEPTEMBER CONTRACTS CLOSED ABOVE $1.45 A POUND.

FTA HEARING:
ALSO IN WASHINGTON...COMMITTEES IN BOTH THE HOUSE AND SENATE HELD HEARINGS THURSDAY ON IMPLEMENTING THREE FREE TRADE AGREEMENTS. MANY SECTORS IN AGRICULTURE ARE ANXIOUS FOR PASSAGE OF THOSE DEALS WITH SOUTH KOREA, COLOMBIA AND PANAMA. THE SENATE HEARING INCLUDED A DISCUSSION ABOUT "TRADE ADJUSTMENT ASSISTANCE", WHICH WOULD GIVE JOB TRAINING AND FINANCIAL AID TO U-S WORKERS AFFECTED BY FOREIGN TRADE. FINANCE COMMITTEE CHAIRMAN MAX BAUCUS SAYS THE TRADE DEALS WILL NOT GO FORWARD WITHOUT THE TAA'S. IOWA SENATOR CHUCK GRASSLEY SAYS *THAT'S* THE STUMBLING BLOCK.

ROOK TRADE:
MANY AGRICULTURE SECTORS ARE STILL HOPEFUL FOR A SUMMER VOTE ON THE LONG-STALLED DEALS. AGDAY REGIONAL REPORTER MICHELLE ROOK LOOKS AT THE IMPACT THEY WILL HAVE ON THE PORK INDUSTRY.  ANOTHER MARKET WITH BIG POTENTIAL IS RUSSIA, BUT THEY HAVE CONTINUED TO D-LIST U.S. PORK PLANTS WHICH CAN SHIP PRODUCTS. THE NPPC SAYS THIS HAS BEEN FRUSTRATING TO PRODUCERS AND ONE REASON WHY THE ORGANIZATION DOES NOT SUPPORT RUSSIA BEING ALLOWED INTO THE WORLD TRADE ORGANIZATION.

MEXICO TRUCKING:
IN OTHER TRADE NEWS, MEXICO TRUCKS ARE HEADED FOR THE U-S AFTER THE TWO COUNTRIES AGREED TO NEW TERMS IN A CROSS BOARDER TRUCKING DISPUTE. THE RESOLUTION ALLOWS A NUMBER OF MEXICAN DRIVERS AND TRUCKS INTO THE U.S. WHILE LIFTING PUNITIVE TARIFFS ON NEARLY TWO AND HALF BILLION DOLLARS WORTH OF U.S. PRODUCTS. UNDER THE NEW DEAL, MEXICO WILL SUSPEND 50% OF THE RETALIATORY TARIFFS WITHIN 10 DAYS AND THE REMAINDER WITHIN FIVE DAYS OF THE FIRST MEXICAN TRUCKING COMPANY RECEIVING ITS U.S. OPERATING AUTHORITY.

PFIZER SPINOFF:
IN AGRIBUSINESS THIS MORNING, DRUG GIANT PFIZER IS LOOKING AT OPTIONS FOR ITS ANIMAL HEALTH AND NUTRITION UNIT. ITS PART OF AN EFFORT TO REFOCUS A DIVERSE CORPORATE STRUCTURE, BUILT ON YEARS OF MEGA-MERGERS. PFIZER HOPES TO WHITTLE DOWN TO ITS CORE WHICH IS DEVELOPING AND MARKETING PRESCRIPTION DRUGS AND VACCINES FOR HUMANS. THE ANIMAL HEALTH UNIT MAKES DRUGS FOR LIVESTOCK AND PETS. LAST YEAR SALES FOR THAT BUSINESS CAME IN JUST OVER THREE AND HALF BILLION DOLLARS.

LAND VALUES:
THE BULL CHASING LAND VALUES HIGHER MAY BE RUNNING OUT OF BREATH. RABOBANK INTERNATIONAL SAYS THE FIVE YEAR CLIMB IN PRICES MAY PEAK THIS YEAR. THE GROUP ANTICIPATES INCREASES IN INTEREST RATES AND LOWER CROP PRICES MAY END THE HISTORIC SURGE. IN 12 MIDWESTERN STATES, LAND VALUES WENT UP AN AVERAGE OF 23% IN THE LAST HALF DECADE. BUT, RABOBANK SAYS THE SPIKE ISN'T A BUBBLE. THEY EXPECT LAND COSTS COULD SEE A GENTLE FALL--AS MUCH AS 15% OVER THE NEXT SEVEN YEARS. AL PELL AND RICHARD BROCK RECENTLY SAT DOWN TO DISCUSS LAND VALUES.
THEY JOIN US WITH THIS MORNING'S ANALYSIS.

ANALYSIS:
RICHARD BROCK

IN THE COUNTRY; INSECT MUSEUM:
THEY'RE CREEPY, CRAWLY AND MOST OF US DO WHAT WE CAN TO KEEP INSECTS OUT OF THE HOUSE. THAT'S NOT THE CASE AT THE LOUISIANA STATE ARTHROPOD MUSEUM LOCATED ON LSU'S CAMPUS. IT HOUSES MORE THAN 20,000 SPECIES HELPING ENTOMOLOGISTS WITH INSECT I-D AND TELLING THE HISTORY OF THESE ARTHROPODS IN THE PELICAN STATE. LSU AGCENTER'S TOBIE BLANCHARD TAKES US ON A VISIT.  THANKS TOBIE. UP NEXT, THEY'RE SUPPORTING COWS BY SERVING CHICKEN. WE'LL TELL YOU HOW CHIK-FIL-A IS SURVIVING AND GROWING WHILE ONLY STAYING OPEN SIX DAYS A WEEK.

CHICK FILA:
VERY FEW NATIONAL BUSINESSES MAKE IT THEIR CORPORATE POLICY TO "REST ON THE SEVENTH DAY". BUT ONE OF THEM IS CHICK-FIL-A RESTAURANTS. THE GEORGIA BASED COMPANY HAS 1,500 QUICK-SERVICE RESTAURANTS NATIONWIDE AND PLANS TO ADD 90 MORE THIS YEAR. THE COMPANY REPORTED SALES OF MORE THAN 3.5 BILLION LAST YEAR, UP 11% FROM THE YEAR BEFORE. THEY'VE ENJOYED THAT SUCCESS, WHILE KEEPING THEIR DOORS CLOSED ON SUNDAYS. THE COMPANY PRESIDENT SAYS MORE SERVICE BUSINESSES SHOULD FOLLOW THEIR LEAD. BY THE WAY, TODAY IS "COW APPRECIATION DAY" AT THE RESTAURANT. IF YOU WALK INTO ANY OF THEIR STORES TODAY, DRESSED ENTIRELY AS A COW, YOU GET A FREE MEAL. IF YOU'RE PARTIALLY DRESSED IN COW ATTIRE, YOU GET A FREE ENTREE. CATHY SAYS 450,000 PEOPLE DRESSED FOR THE OCCASION LAST YEAR.

CONTACT PAGE:
REMEMBER OUR INBOX QUESTION FROM THE TOP OF THE SHOW REGARDING ANIMAL WELFARE LEGISLATION. CALL US AT 800-792-4329. SEND AN EMAIL TO INBOX@AGDAY.COM. DROP US A NOTE ON WWW.FACEBOOK.COM/AGDAY.
 

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