AgDay Daily Recap - July 5, 2011

July 5, 2011 03:52 AM
 

TODAY ON AGDAY:
JULY 5, 2011

PREVENT PLANTING:
GOOD MORNING. PREVENTED PLANTING ACRES ARE UP THIS YEAR AFTER RECORD FLOODING AND RAINY WEATHER KEPT EUIPMENT OUT OF THE FIELD. AND FOR SEVERAL STATES TO THE NORTH THIS ISN'T THE FIRST SOAKED SPRING. NOW, THE USDA'S RISK MANAGEMENT AGENCY IS MAKING CHANGES TO PREVENTED PLANTING INSURANCE FOR THE 'PRAIRIE POTHOLE STATES.' THE DESIGNATION IS FOR PRDUCERS IN IOWA, MINNESOTA, MONTANA, NORTH AND SOUTH DAKOTA. THE NEW RULES ADD A YEAR TO THE REQUIREMENTS FOR GETTING LAND ACCEPTED INTO THE PROGRAM. INSTEAD OF REQUIRING A MINIMUM OF ONE CROP EVERY THREE YEARS, THE USDA IS STRETCHING IT TO ONE IN FOUR. FOR MANY THAT ALLOWS FARMERS TO USE THE DRIER 2008 GROWING SEASON IN CONJUNCTION WITH 09, 2010, AND 2011 FOR DETERMINING PREVENTED PLANTING COVERAGE NEXT YEAR. WITHOUT THE CHANGE MANY PRODUCERS IN THE AREA WOULD HAVE LMITED ACCESS TO THE PP CROP INSURANCE COVERAGE. PREVENTED PLANTING GUARANTEES FARMERS A PAYMENT THAT'S BETWEEN 60 AND 70 PERCENT OF WHAT THE CROP SHOULD HAVE PRODUCED...HELPING PRODUCERS STAY IN BUSINESS WHEN RAIN AND WEATHER KEEPS CROPS OUT OF THE FIELD.

FLOODED FARM FIELDS:
IN NORTH DAKOTA, AN ESTIMATED SIX MILLION ACRES ARE GETTING SIGNED-OVER TO PREVENTED PLANTING. THE WEATHER CHALLENGES, THAT STARTED LAST WINTER, PROVED TOO DIFFICULT TO OVERCOME. THAT'S A FAMILIAR STORY THAT STRETCHES FROM MONTANA AND NORTH DAKOTA DOWN TO LOUISIANA. FOR MANY FARMERS WITH LAND NEAR THE MISSISSIPPI AND MISSOURI RIVERS, IT'S A LOST SEASON. FLOODING HAS WIPED OUT THE CHANCE TO PLANT A CROP. RETHA COLCLASURE FROM AFFILIATE KFYR TELLS US ABOUT ONE FAMILY WORRIED ABOUT HAVING ENOUGH HAY FOR THE HERD NEXT YEAR.

SOUTHERN DROUGHT:
THANKS RETHA. YOU HEARD IN THAT STORY, PRODUCERS ARE WORRIED ABOUT CUTTING ENOUGH HAY TO LAST THE WINTER. THE SAME IS TRUE IN THE SOUTH AND SOUTHWEST AS SEVERE DROUGHT CONTINUES TO BURN UP PASTURES AND FIELDS. ROUND BALES WEIGHING IN AROUND 1,500 POUNDS ARE NOW GOING FOR NEAR 100 DOLLARS AND IN SOME PLACE MORE. ABOUT DOUBLE WHAT IT WAS LAST YEAR. REPORTS OUT OF ARIZONA HAVE HAY BEING PRICED AT 250 DOLLARS A TON.

DAIRY TODAY FREE TRADE AGREEMENTS:
FROM OUR REPORTING PARTNERS AT DAIRY TODAY, TWO MAJOR DAIRY GROUPS ARE ENCOURAGING LAWMAKERS TO MOVE FORWARD ON FREE-TRADE AGREEMENTS THAT HAVE LINGERED IN WASHINGTON. BUT ON FRIDAY, A MOCK "MARK-UP" OF THE TRADE DEALS FELL APART IN THE SENATE FINANCE COMMITTEE. SEVERAL REPUBLICAN MEMBERS REFUSED TO TAKE PART. THOSE LAWMAKERS ARE CONCERNED ABOUT THE 'TRADE ADJUSTMENT ASSISTANCE". THE TAA WOULD GUARANTEE AID FOR U.S. WORKERS WHO MIGHT LOSE JOBS BY THE TRADE DEALS. THIS MEASURE HAS BEEN SUPPORTED BY BIG LABOR. FROM THE DAIRY SECTOR, THE PENDING AGREEMENTS WITH SOUTH KOREA, COLOMBIA AND PANAMA HAVE THE POTENTIAL TO EXPAND U.S. DAIRY EXPORTS. THE NATIONAL MILK PRODUCERS FEDERATION AND THE U.S. DAIRY EXPORT COUNCIL STRONGLY SUPPORT EFFORTS BY THE OBAMA ADMINISTRATION AND MEMBERS OF CONGRESS TO QUICKLY MOVE FORWARD IMPLEMENTATION OF THREE FTA'S. A SPOKESMAN FOR USDEC SAYS THAT THE INDUSTRY ESTIMATES THAT AS MANY AS 10,000 ADDITIONAL U.S. JOBS, BOTH ON AND OFF THE FARM COULD BE CREATED BY THE KOREAN AGREEMENT ALONE. AND DON'T FORGET, FOR THE VERY LATEST NEWS AFFECTING THE DAIRY INDUSTRY, INCLUDING PRODUCTION AND POLICY ISSUES, CHECK OUT WWW.DAIRYTODAY.COM.

STINK BUGS:
MARKETS WERE CLOSED YESTERDAY FOR THE HOLIDAY. THE MARKET TICKER REFLECTS FRIDAY'S CLOSE. IN AGRIBUSINESS FRUIT FARMERS IN SEVEN EASTERN STATES HAVE A NEW WEAPON AGAINST THE BROWN MARMORATED STINK BUG. THE EPA GAVE TWO INSECTICIDES EMERGENCY APPROVAL FOR USE ON CERTAIN FRUITS. IT ALLOWS FARMERS IN SEVEN EASTER STATES TO USE THE SPRAY ON APPLES, CHERRIES, PEARS, AND PEACHES. THE STINK BUG WAS ACCIDENTALLY IMPORTED FROM CHINA AND HAS NO NATURAL ENEMIES IN THE U.S.  IT EATS ON THE FRUIT, LEAVING HOLES THAT EVENTUALLY CAUSES IT TO ROT. WHILE THE SPRAY DESIGNATION IS ONLY FOR FRUIT GROWERS IN 7 EASTERN STATES, THE INVASTIVE STINK BUG HAS ALSO BEEN FOUND ON CORN, TOMATOES AND SOYBEANS. THE EMERGENCY EXEMPTION INCLUDES FARMS IN VIRGINIA, MARYLAND, DELAWARE, PENNSYLVANIA, WEST VIRGINIA, NORTH CAROLINA, AND NEW JERSEY

ANALYSIS INTRO:
LAST WEEK, USDA SURPRISED THE MARKET WHEN IT SAID THERE'S A MUCH BIGGER CORN CROP OUT THERE THAN TRADERS EXPECTED. USDA ESTIMATES A CORN CROP OF MORE THAN 92-MILLION ACRES. IN A SECOND REPORT, THEY SAID GRAIN STOCKS - WHILE STILL LOW - ARE NOT AS BAD AS TRADERS EXPECTED. THAT SENT CORN PRICES PLUMMETING ON THURSDAY. FOR END-USERS, LIKE FEEDLOT OPERATORS, THAT WAS GOOD NEWS, SIGNALING LOWER FEED COSTS.
IN THIS MORNING'S ANALYSIS, FARM DIRECTOR AL PELL TALKS WITH BILL BIEDERMANN OF ALLENDALE INCORPORATED ABOUT THE IMPACT OF THE REPORT.

ANALYSIS:
BILL BIEDERMANN

IN THE COUNTRY; HANDICAP KIDS:
FOR MANY OF US WHO GREW UP ON THE SHOW CIRCUIT, STEPPING INTO THE RING WITH THAT 4-H OR FFA ANIMAL MEANT IT WAS TIME TO COMPETE. I'M SURE I NEVER STOPPED LONG ENOUGH TO TRULY APPRECIATE THE EXPERIENCE. IT'S THAT EXPERIENCE ONE FFA CHAPTER IN OKLAHOMA IS PROVIDING FOR A SPECIAL GROUP OF KIDS. LYNDAL STOUT WITH OKLAHOMA STATE'S SUNUP PROGRAM TAKES US TO A ONE-OF-A-KIND LIVESTOCK SHOW, THAT GIVES ITS SHOWMEN AN OPPORTUNITY TO SHINE. THANKS LYNDALL. UP NEXT, WE'VE GOT THE LATEST CONSUMER RANKINGS FOR THE FAST FOOD INDUSTRY AND WOULD YOU DRINK BEER OR WINE WITH YOUR WHOPPER? FOOD AND YOUR FAMILY IS COMING UP.


FAST FOOD SURVEY:
IN TODAY'S FOOD AND YOUR FAMILY A NEW CONSUMER SURVEY NAMES IN AND OUT BURGER THE NATION'S FAVORITE FAST FOOD. THE FIRST EVER TALLY COMES FROM CONSUMER REPORTS. IN-N-OUT GOT HIGH SCORES FOR QUALITY OF FOOD, SERVICE, VALUE AND SPEED. ALSO AT THE TOP OF THE LIST, CHIK-FIL-A, CHIPLOTE, AND PAPA MURPHY'S TAKE AND BAKE PIZZA. IN THE SANDWICH REALM, JASON'S DELI AND FIREHOUSE SUBS TOOK THE TOP PRIZE. BUT, FAST FOOD STAND-BYES LIKE MCDONALDS, BURGER KING, ARBY'S, TACO BELL AND KFC ALL RECIEVED LOW OVERALL SCORES. NEARLY 37,000 FAST FOOD FANS PARTICIPATED IN THE SURVEY.

FAST FOOD ALCOHOL:
A TOUGH ECONOMY AND THE NEED FOR A BUMP IN SALES IS ONE REASON SOME FAST FOOD JOINTS ARE NOW SERVING UP BEER AND WINE. BURGER KING RECENTLY OPENED "WHOPPER BARS" IN MIAMI, LAS VEGAS AND KANSAS CITY...A COLD BREW GOES FOR ABOUT $4.25. CAR-HOP KING, SONIC IS ALSO PLANNING TO ROLL OUT ALCOHOL IN MIAMI AND FORT LAUDERDALE. IT WILL SELL 25 KINDS OF BEER AND TEN KINDS OF WINE.
AND STARBUCKS PLANS TO SOURCE LOCAL BEER AND WINE OUT OF ITS STORES. THE COMPANY SAYS BY SEPTEMBER FIVE LOCATIONS IN SEATTLE WILL START SELLING THE BEVERAGES TO CUSTOMERS.
 

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