USFR Weekly Recap - April 23-24, 3026

April 23, 2016 03:30 AM
 

TODAY ON U.S. FARM REPORT
APRIL 23-24 2016


OPENING HEADLINES:
FROM TEH STUDIOS OF FARM JOURNAL BROADCAST, THIS IS U-S FARM REPORT. WELCOME TO U.S. FARM REPORT. I'M TYNE MORGAN, AND HERE'S WHAT WE'RE WORKING ON FOR YOU OVER THE NEXT HOUR..  A RALLY WITH NO FUNDAMENTAL REASON... SOYBEANS BREAK 10 DOLLARS LEAVING SOME TO EXPLORE AN ACREAGE SHIFT.  A PROPOSED CHANGE TO HOW AG RETAILERS STORE ANYHDROUS AMMONIA COULD CUT DEEP...               <"FOR US TO BE UPDATED, WE'D HAVE TO CHANGE ABOUT 60 TANKS. WE'RE LOOKING AT COST ANYWHERE BETWEEN 8 TO 10 MILLION DOLLARS OVER TIME,">  OUR FARM JOURNAL REPORT LOOKS AT HOW THE OSHA RULE COULD IMPACT YOU.   THE KY'S THE LIMIT FOR AG DRONES...  <I SEE A HUGE OPPORTUNITY FOR US TO GATHER DATA.>  WE'RE OFF TO TEXAS TO SEE HOW THIS TECHNOLOGY  IS PROPELLING FARMERS TO THE FUTURE.  AND IN JOHN'S WORLD...  <GROWING OLD ON THE FARM ISN'T FUN BUT IT'S NOT AS BAD AS IT USED TO BE> 
RALLY:
NOW FOR THE NEWS THAT MOVED THE MARKETS THIS WEEK, A SURPRISE RALLY IN BOTH CORN AND   SOYBEANS, WITH SOYBEAN PRICES REACHING THE HIGHEST POINT SINCE LAST SUMMER.   SOYBEANS ARE HAVING A FUN RIDE HIGHER, FLYING PAST THE 10 DOLLAR MARK WEDNESDAY.  WHILE UNFAVORABLE WEATHER IN PORTIONS OF SOUTH AMERICA HELPED PRICES, PUSH WAS MAINLY   FROM ACTIVE FUND BUYING.  
PLANTING PROGRESS:
THE RALLY IS DESPITE FARMERS MAKING NICE  PLANTING PROGRESS ACROSS THE COUNTRY.  NATIONALLY, 13 PERCENT OF THE CORN IS IN THE GROUND, 5 POINTS AHEAD OF AVERAGE. THE BIGGEST PROGRESS BEING MADE IN MISSOURI, WHERE 58 PERCENT OF THE CORN IS PLANTED. THAT'S 37 POINTS AHEAD OF THE AVERAGE PACE.   SPRING WHEAT PLANTING IS ALSO PROGRESSING  QUICKLY, WITH 27 PERCENT OF HTE CROP  PLANTED.   SOUTH DAKOTA FARMERS ARE BEATING THE 5-YEAR A  AVERAGE BY 26 POINTS.  COTTON PLANTING BEHIND:
 THE NATION'S COTTON FARMERS ARE A LITTLE BEHIND, WITH 7 PERCENT OF THE COTTON IN THE   GROUND, 3 POINTS BEHIND.  COTTON PRICES RALLYING THIS WEEK, DESPITE THE NEWS THAT MORE PRODUCT COULD FLOOD THE MARKET. 

CHINA PLANS TO RELEASE MASSIVE COTTON RESERVES ON THE MARKET:
CHINA SAYS IT PLANS TO OPEN THE FLOODGATES ON IT'S MASSIVE COTTON RESERVES. THE COUNTRY PLANNING TO AUCTION 2 MILLION METRIC TONS OF COTTON MAY THROUGH AUGUST.  BRAZILIAN PRESIDENT MOTION FOR IMPEACHMENT WITH GO TO COUNTRY’S SENATE:
BRAZILLIAN PRESIDENT DILMA ROUSSEFF IS ONE STEP CLOSER TO IMPEACHMENT. BRAZIL'S LOWER HOUSE PASSED A MOTION TO IMPEACH  HER THIS WEEK. THE MOTION STILL NEEDS TO GO IN FRONT OF THE  COUNTRY'S SENATE. IF MAJORITY APPROVES IT THERE,  ROUSSEFF WILL BE ASKED TO STEP DOWN FOR 180  DAYS TO DEFEND HERSELF IN THE IMPEACHMENT TRIAL. ROUSSEFF IS THE COUNTRYS' FIRST FEMALE  PRESIDENT, TAKING OFFICE IN 2010.
MEXICO LIFTS BAN ON U.S. POULTRY EXPORTS, EXCEPT FOR INDIANA:
MEXICO IS LIFTING ITS BAN ON U-S POULTRY EXPORTS IN EVERY STATE BUT INDIANA.  THE BAN ORIGINIALLY PUT IN PLACE ON 14 STATES DUE TO THE OUTBREAK OF HIGHLY PATHOGENIC AVIAN FLU.  MEXICO IS THE LARGEST BUYER OF U-S POULTRY AND POULTRY PRODUCTS SINCE 2010. 
STERLING PROFIT TRACKER:
THE LATEST STERLING PORK PROFIT TRACKER SHOWS MARGINS FOR FARROW TO FINISH OPERATIONS ARE ABOUT 2 DOLLARS LESS THAN A MONTH AGO.  HOWEVER, AT 4 OH-NINE A HEAD, THAT'S ABOUT A 70 CENT IMPROVEMENT FROM LAST WEEK. AND MUCH BETTER THAN THE NEGATIVE 11 DOLLARS THAT   OPERATIONS SAW LAST YEAR. 
NATIONAL WEATHER:
  THOSE ARE THE HEADLINES...METEOROLOGIST CINDI CLAWSON IS IN FOR MIKE HOFFMAN THIS WEEK. CINDI, SOME OF OUR SOUTHERN VIEWERS ARE HOPING YOUR FORECAST DOESN'T INCLUDE RAIN.  WELL, I WISH I COULD SAY THAT BUT WE CERTAINLY DO  HAVE SOME RAIN IN THE FORECAST FOR SOME OF THOSE AREAS THAT HAD SO MUCH OVER THE LAST WEEK. BUT YOU KNOW THERE ARE OTHER AREAS THAT ARE GETTING INCREASINGLY  DRY. DEFINITELY AREAS WE'RE WATCHING.  TYNE?
TEASE:
THANKS, CINDI. WHEN WE COME BACK, THIS SURPRISE  RALLY WILL KICK OFF OUR MARKETING DISCUSSION.  BOB UTTERBACK AND DOUG WERLING JOIN ME AFTER  THE BREAK.  
ROUNDTABLE 1:
WELCOME BACK. WELL, WE HAVE BOB UTTERBACK OF UTTERBACK MARKETING AND DOUG WERLING OF BOWER TRADING WITH US THIS WEEK. A NICE, LITTLE SURPRISE RALLY. DOUG, I'M GOING TO START WITH YOU.WHY DID SOYBEANS PUSH PAST THE $10 MARK MIDWEEK?
LET’S TALK RALLY:
OKAY, TYNE, WELL, AS WE WERE TALKING OFF AIR FOR SOYBEANS, YOU KNOW, WHEN YOU HAVE A MARKET THAT ESSENTIALLY HAS BEEN IN SOMEWHAT SLEEPING MODE,HAS BEEN SUPPLY DRIVEN ORIENTED, NO DEMAND WHAT TO SPEAK. I MEAN, GOOD DEMAND, SOLID, BUT NO INCREASES.
WE WERE IN HEALING MODE AFTER A SELLOFF MARKET LAST YEAR, SO, YOU KNOW, WE HAVE BEEN IN THIS TRADING RANGE FOR THE LAST FOUR TO FIVE MONTHS. WE FINALLY GOT A LITTLE BIT OF CHANGE FROM BRAZILIAN WEATHER. AND WE GOT A LITTLE POP FROM THAT ACREAGE REPORT.AND THEN YOU JUST SAW THINGS SNOWBALL OFF OF THAT.FUND POSITIONS WERE SHORT.THEY GOT WIPED OUT. OUR EXPORT SALES HAVE BEEN PRETTY STEADY REGARDLESS OF WHAT SOME MAY THINK, SO    I MEAN, THE DEMAND WAS ALWAYS THERE.
PRICES WEAKEN BY THE END OF THE WEEK, WHAT DOES IT MEAN FOR NEXT WEEK’S PRICES:
 BOB, FRIDAY WE SAW SOYBEAN PRICES WEAKEN. DO YOU THINK THAT'S SETTING US UP NEXT WEEK TO TREND LOWER?  NO, I THINK WE JUST REMOVED THE EXCESSES OF THIS WEEK. YOU KNOW, WE HAD SOME PEOPLE ARE SAYING BETWEEN $3 AND $6 BILLION HAVE COME INTO THE COMMODITY MARKETS OVER THE LAST FOUR WEEKS. THE TONE HAS REMARKABLY CHANGED IN TONE, SENTIMENT, SO I THINK WE JUST GOT TOO EXCITED MIDWEEK.
WILL THE RALLY LAST?:
 DOUG, CONSIDERING THAT WE DIDN'T SEE A LOT OF FUNDAMENTALS MOVING THIS MARKET HIGHER, YOU KNOW, USUALLY    A LOT OF THIS OUTSIDE MONEY WAS THE CAUSE. LOOKING LONGER TERM, DO YOU THINK WE CONTINUE TO RALLY IN SOYBEANS AND CORN THIS YEAR?  OKAY, SO THERE'S GOING TO BE TWO THINGS. ONE, WHEN I LOOK AT THE SOYBEAN MARKET IT PROBABLY HAS THE BEST CHANCE WITH SUMMER WEATHER ADVERSITY, AND THAT'S JUST BECAUSE WHERE THE ACREAGE IS AND OUR STOCKS TO USE RATIO BEING IN THE 11% 12% RANGE DEPENDING ON WHAT YOU SAY YOUR DEMAND FACTORS ARE THAT CHANGE THAT. SO, WHEN YOU GET THOSE UNDER 10% THAT CHANGES THINGS.
CROP PROGRESS LONG TERM OUTLOOK:
 DOUG TALKED LONGER TERM, BUT, BOB, LOOKING LONG TERM WHEN WE SEE THIS CROP PROGRESS REPORT COME OUT MONDAY WE COULD SEE SOME SIGNIFICANT PROGRESS TAKE PLACE. DOES THAT IMPACT THE MARKET AT ALL ON MONDAY? >> I THINK THAT'S PUT    WHY THE CORN MARKET HAS DROPPED 20 CENTS IN THE LAST    SINCE MIDWEEK, THE CROP PROGRESS, BUT HERE THURSDAY, FRIDAY, SATURDAY THE WEATHER IS WEST SO WE'RE I THINK STARTING NEXT WEEK NOT WITH A LOT OF FURTHER PROGRESS. NOW, YOU ALWAYS HEAR THESE BULL ARGUMENTS AFTER THE BULL HAS SURFACED.
TEASE:
 ALL RIGHT, WELL, WE HAVE WE HAVE TO TALK ABOUT THIS CURRENCY WAR. WE'LL INTO THAT WHEN WE COME BACK ON U.S. FARM REPORT.
ROUNDTABLE 2:
>> WELCOME BACK. WELL, BEFORE THE BREAK BOB WAS TALKING ABOUT THE U.S. DOLLAR. SO, BOB, I WANT TO ASK YOU THIS. DO YOU THINK WE’VE PUT A TOP IN? >> I THINK WE MADE A STRUCTURAL HIGH LAST YEAR, BUT I STILL AM CONCERNED THAT THERE'S SOME HISTORICAL    ANALYSIS I'VE DONE STILL SAYS THERE'S STILL RISK BECAUSE I THINK OUR ECONOMY IS STRONGER THAN EUROPEAN ECONOMY.
CHINA:
I THINK THE CHINESE THAT ARE TRYING TO SAY THE BOTTOM'S IN, BUT I'VE READ A LOT OF POSITION PAPERS ABOUT THEIR FINANCIAL RELATIONSHIPS AND THEY'VE GOT SOME REAL PROBLEMS OVER THERE. SO I NOT CONVINCED THAT THERE WON'T BE A SURGE BACK TO THE DOLLAR, BUT I THINK THE EXTREME HIGH IS IN. I JUST DON'T THINK IT'S GOING TO FALL APART.
BRAZIL IN ROUSSEFF IS IMPEACHED:
 WHEN WE LOOK AT BRAZIL AND WE LOOK AT THE REAL THERE. DILMA ROUSSEFF, YOU KNOW, COULD BE IMPEACHED.WE'RE STILL WAITING TO HEAR EXACTLY WHAT'S GOING TO HAPPEN. BUT IF SHE IS IMPEACHED, DOUG, WHAT HAPPENS TO THE REAL AND HOW DOES IT IMPACT US? >> WELL, YOU KNOW, HERE IN THE SHORT TERM IT WOULD PROBABLY BE SOMEWHAT OF A POSITIVE BECAUSE OF VALUATION, SO WE'LL GET SOME EXPORT BUSINESS, AND YOU'VE SEEN SOME OF THE THINGS GOING ON DOWN THERE ALREADY WITH    I WANT TO CALL IT A CROP SCARE RIGHT NOW BECAUSE THAT'S REALLY WHAT IT IS.
THE MACRO PICTURE:
>> LOOKING AT THE MACRO PICTURE, BOB, WHAT CONCERNS YOU THE MOST? >> GLOBAL DEBT, AND THE ABILITY OF FISCAL POLICY GOVERNMENTALS TO DO ANYTHING ABOUT PRO-GROWTH ORIENTATED. HOW DO WE GET GROWTH IN THE UNITED STATES, EUROPE TO GO AT A RATE TO BASIC OFFSET THE DEBT?BECAUSE I THINK DEBT IS    I SAW A STATISTIC LAST YEAR, THE CONSUMER DEBT WAS GROWING FASTER THAN THE GMP.
TEASE:
 ALL RIGHT, WELL, WE NEED TO GET YOUR CLOSING THOUGHTS. WE'LL DO THAT WHEN WE COME BACK ON U.S. FARM REPORT. DON'T GO ANYWHERE.


MARKETS NOW:
>> WELCOME BACK TO MARKETS NOW. TIME TO GET CLOSING THOUGHTS. DOUG, LET'S START WITH YOU.>> WELL, WHEN WE HEAD IN HERE TO NEXT WEEK I'M GOING TO WATCH THE SPREADS, SEE HOW THEY TRADE, BECAUSE WE'VE TAKEN CARRYOUT OF THE SOYBEAN MARKET THIS PAST WEEK.I WANT TO SEE IF THAT HOLDS, AND THEN I ALSO WANT TO WATCH THE CORN SPREADS AND SEE IF THEY CONTINUE TO NARROW AND TAKE CARRYOUT.
TEASE:
 ALL RIGHT, THANK YOU BOTH FOR BEING HERE THIS WEEK. WE APPRECIATE IT. STAY WITH US. JOHN PHIPPS JOINS US WHEN WE COME BACK.>>> JOIN TOP PRODUCER MAGAZINE FOR TOMORROW'S TOP PRODUCER'S SEMINAR IN NASHVILLE, TENNESSEE THIS YEAR.
JOHN’S WORLD:
OVER THE LAST FEW YEARS ON OUR FARM, WE HAVE BEEN MAKING SMALL BUT POWERFUL UPGRADES TO MUCH OF OUR EQUIPMENT. OUR LATEST EFFORT IS TO IMPROVE THE GRAIN TRUCKS WE USE. WE’VE ADDED ELECTRIC TARP DRIVES, GRAIN GATES AND HOIST CONTROLS. THESE ARE NOT PARTICULARLY NEW, BUT THEY JUST NOW GOT INTO OUR PRICE RANGE.
AS MORE OF US ARE ACTIVE INTO OUR SEVENTIES AND BEYOND, THANKS TO MEDICINE AND TECHNOLOGY LIKE THIS, IT COULD MEAN FARMING CAREERS WILL START LATER AND LAST LONGER THAN WE IMAGINE. AG IS ONE PROFESSION WHERE AGE IS NOT THE HANDICAP IS USED TO BE.

FOR MANY OF YOU, FARMING AND RANCHING IS THE  ONLY JOB YOU'VE EVER  KNOWN. AND THANKS TO TECHNOLOGY, YOU CAN FARM OR RANCH AS LONG AS YOUR HEART DESIRES. JOHN HAS MORE.    THANKS, JOHN.  
TEASE:
UP NEXT, A CHANGE IN ANYDROUS AMMONIA COULD  COST FARMERS MILLIONS. THAT'S OUR FARM JOURNAL  REPORT AFTER THE BREAK. 
SECOND HALF OF THE SHOW OPENING HEADLINES:
FROM THE STUDIOS OF FARM JOURNAL BROADCAST,  THIS IS U.S. FARM REPORT. WELCOME BACK TO U-S FARM REPORT. WE HAVE MUCH MORE AHEAD OVER THE NEXT 30 MINUTES. IT'S A STORAGE WAR BETWEEN AG RETAILERS AND  OSHA. WE'LL BREAK DOWN POSSIBLE CHANGES TO THE WAY ANYHDROUS AMMONIA IS STORED AND HOW IT COULD IMPACT YOU. AG DRONES ARE TAKING AGRICULTURE TO NEW HEIGHTS. WE'RE OFF TO TEXAS TO SEE WHY THE SKY'S  THE LIMIT FOR THE FUTURE OF AG. AND IN CUSTOMER SUPPORT, JOHN PHIPPS BREAKS  DOWN WHAT THE PHRASE PREVENT PLANT REALLY MEANS.  
OPERATING LOANS:
NOW FOR THE HEADLINES, AS THE RURAL ECONOMY  CONTINUES TO FEEL THE SQUEEZE FROM A WEAK   ENERGY MARKET AND LOWER COMMODITY PRICES, C-H- S CAPITAL SAYS THEY'RE STILL SEEING REQUESTS FOR  ADDITIONAL OPERATING LOANS LATER IN THE YEAR THAN NORMAL. THAT'S AS MORE BANKS PULL BACK ON FINANCING AGRICULTURE.  
LATEST RURAL MAIN STREET INDEX:
CREIGHTON UNIVERSITY'S ERNIE GOSS SAYS THE LATEST RURAL MAINSTREET INDEX REMAINS BELOW   GROWTH NEUTRAL FOR THE SEVENTH CONSECUTIVE MONTH.  THE INDEX IS BASED ON A SURVEY OF RURAL BANKERS. GOSS SAYS BANKS ARE NOW RESTRUCTURING WITH SOME ESTIMATING LOAN DEFAULTS INCREASING 5  PERCENT.  BUT HE SAYS DESPITE THE BAD NEWS, THE SITUATION IN RURAL AMERICA IS LOOKING A LITTLE BETTER.    GOSS ALSO THINKS LAND PRICES COULD FALL ANOTHER 6 TO 7 PERCENT THIS YEAR.
AG SECRETARY ADDRESSES POVERTY IN U.S. AT FORUM IN WASHINGTON:
 RURAL POVERTY IS BECOMING AN EVEN GREATER ISSUE ACROSS AMERICA.  U-S AG SECRETARY TOM VILSACK SAYING DURING A FARM FOUNDATION FORUM IN WASHINGTON THAT POVERTY IS FAR REACHING AND ONLY BECOMING WORSE. HE ALSO POINTED OUT THAT RURAL AREAS FEEL POVERTY TO A GREATER DEGREE. BUT VILSACK ALSO HIT ON THE TOPIC OF SUICIDE. HE SAYS IT'S A FUNCTION OF MANY ISSUES, BUT FOR  WHITE MALES, THE RATE IS HIGHER IN RURAL AREAS THAN URBAN.  

CITRUS GREENING REDUCES YIELDS BY 40 PERCENT:
ONE CROP BATTLING A DEVESTATING DISEASE IS  CITRUS. FLORIDA'S CITURS GROWERS NOW SAY 80 PERCENT OF THE STATE'S TREES ARE INFECTED WITH CITRUS  GREENING. THAT'S ACCORDING TO A NEW UNIVERSITY OF FLORIDA SURVEY. THE SURVEY CONDUCTED MARCH OF LAST YEAR IS THE FIRST GROWER-BASED ESTIMATES. CITRUS GREENING WIPES OUT THE CROP, WITH GROWERS SAYING GREENIGN REDUCES YIELD BY 40 PERCENT.   COSTCO TO BUILD POULTRY PLANT:
COSTCO ANNOUCING IT PLANS TO BUILD A STATE OF THE ART POULTRY PROCESSING FACILITY.  THE 180 MILLION DOLLAR INVESTMENT IS PLANNED FOR FREMONT NEBRASKA...AND WOULD CREATE 11-HUNDRED NEW JOBS.  COSTCO SAYS WHEN RUNNING THE COMPANY WILL PURCHASE 300,000 BUSHELS OF CORN AND 3,000 TONS OF SOYBEAN MEAL A WEEK FROM LOCAL PROVIDERS.
REMBRANDT FOODS TO BUILD CAGE FREE FARM:
ONE OF THE NATION'S L ARGEST EGG PRODUCERS IS STEPPING UP ITS EFFORTS TO MEET THE GROWING  DEMAND FOR CAGE-FREE. IOWA BASED REMBRANDT FOODS SAYS IT'S BUILDING A  NEW CAGE FREE FARM IN EASTERN SOUTH DAKOTA. THAT ONE FARM WILL HOUSE 3 MILLION EGG LAYING  HENS. CONSTRUCTION IS EXPECTED TO  BEGIN THIS YEAR AND  FINISHED BY NEXT YEAR.  
SPRING STORMS BRING SOME RELIEF TO CALIFORNIA, BUT DROUGHT CONCERNS ARE FAR FROM OVER:
IT'S PARTIALLY GOOD NEWS FOR SOME CALIFORNIA  FARMERS.  THE STATE WATER PROJECT BUMPING UP WATER ALLOCATION TO 60 PERCENT OF REQUESTS. NOW THIS ALLOCATION WAS JUST 10 PERCENT IN JANUARY.  THAT'S AS RUNOFF FROM SPRING STORMS CONTINUE  TO BOOST STATE'S RESERVOIRS. BUT THE DROUGHT IS FAR FROM OVER, AS FAREMRS IN THE SAN JOAQUIN VALLEY AND SOUTHERN CALIFORNIA HAVEN'T SEEN AS MUCH RAIN AND RESERVOIRS STORAGE REMAINS LOW.. SOME COMMUNITIES EVEN SEEING WELLS GO DRY. 
THIEVES USE DISGUISE TO STEAL NUTS IN CALIFORNIA:
GROWERS IN CALIFORNIA ARE BATTLING MORE THAN JUST WEATHER. NOW NUT FARMERS ARE ON HIGH  ALERT FOR THEFT. NEW REPORTS SAY SOPHISTICATED CRIMINAL  ORGANIZATIONS ARE STEALING IDENTITIES AND FALSIFYING PAPERWORK TO POSE AS TRUCK DRIVERS...AND THEN MAKING OFF WITH FULL LOADS OF  ALMONDS, WALNUTS OR PISTACHIOS. SOME OF THESE SHIPMENTS WORTH 150 TO 500   THOUSAND DOLLARS. THE INDUSTRY IS MEETING WITH LAW ENFORCEMENT  HOPING TO STEM THE MASSIVE LOSSES. 
NATIONAL WEATHER:
THAT'S IT FOR NEWS...METEOROLOGIST CINDI CLAWSON JOINS US AGAIN WITH THE LONGER RANGE   FORECAST. HOW'S MOISTURE PANNING OUT CINDI?  WELL, TYNE, THAT DEPENDS ON WHERE YOU ARE. LET'S START OFF WITH THE JET STREAM THOUGH AND TAKE A LOOK AT WEEK AHEAD OF US. WE SEE  A TROPH MOVOING THROUGH THE NORTHERWESTERN UNITED STATES BUT HWE HAVE SOME NICE WARMP TEMPS COMING UP INTO MUCH OF HTE  EASTERN HALF OF HTE COUNTRY.
TYNE.                  

FERTILIZER STORAGE ON THE FARM COULD EXPERIENCE RULE CHANGE:
A POTENTIAL NATIONAL RULE CHANGE BY THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION -  OR OSHA -COULD REVISE THE WAY RETAILERS STORE AND HANDLE ANHYDROUS AMMONIA.   CONGRESS PUT A RIDER IN THE 2016 OMNIBUS APPROPRIATIONS BILL INSTRUCTING OSHA FROM   REQUIRING RETAILERS TO ADOPT STRICTER HANDLING AND STORING STANDARDS.  FARMERS REACT TO POSSIBLE RULE CHANGE:
BETSY JIBBEN HAS THIS WEEK'S FARM JOURNAL  REPORT. NEBRASKA FARMER JOHN OE-HLER-KING IS NOT SURE IF THE WAY HE FERTILIZES HIS CROP TODAY WILL BE THE SAME NEXT YEAR. <"I'M SITTING IN THE TRACTOR WONDERING WHAT I NEED TO DO FOR THIS FALL OR NEXT SPRING AND HOW TO PREPARE,">  THAT'S BECAUSE OSHA IS PLANNING TO CHANGE THE RULES GOVERNING THE STORING AND HANDLING OF ANHYDROUS AMMONIA.  CURRENTLY, AG RETAILERS HAVE AN EXEMPTION TO OSHA'S SAFETY STANDARDS FOR HANDLING HIGHLY HAZARDOUS CHEMICALS.   BUT THAT MAY CHANGE.  
INTERPRETATION CHANGE REASON FOR POSSIBLE RULE CHANGE:
IT CHANGED ITS INTERPRETATION OF THE TYPE OF FACILITY THAT FITS IN THE RETAIL DESCRIPTION.   SAYING "FACILITIES THAT STORE AND DISTRIBUTE LARGE QUANTITIES OF HIGHLY HAZARDOUS CHEMICALS ARE NOT RETAILERS."INSTEAD, PUTTING SOME OF THEM UNDER THE AGRICULTURAL MERCHANT WHOLESALER BANNER WHICH WOULD REQUIRE NEW SAFETY MEASURES PUT  IN PLACE.  
IF CHANGED, NEW RULE WILL MEAN COST FOR FARMERS:
THEY ESTIMATE THESE FACILITIES WILL HAVE TO MAKE  ROUGHLY 21-HUNDRED DOLLARS IN CHANGES IN ORDER TO COMPLY.  NOT EVERYONE AGREES WITH THEIR ESTIMATE. <"THE COST FACTOR WILL BE HORRENDOUS. YOU CAN SAY 4-5-6 MILLION DOLLARS. I BELIEVE THAT'S ON THE LOW SIDE."> 
REPORTING FOR U.S. FARM REPORT, I'M BETSY JIBBEN. THANKS, BETSY.
TEASE:
UP NEXT, JOHN PHIPPS. 
CUSTOMER SUPPORT:
WHILE FAMRERS IN THE SOUTH ARE UNDER WATER, WE HAVEN'T HEARD A LOT ABOUT PREVENT PLANT JUST YET. BUT A VIEWER WANTS TO JOHN TO EXPLAIN WHAT THE PHRASE MEANS.  
THIS WEEK WE HAVE AN AGSPLAINER ABOUT WHAT “PREVENT PLANT” MEANS:
PREVENT PLANT ACRES ARE A FUNCTION OF THE CROP INSURANCE PROGRAM. A LARGE MAJORITY OF FARMERS OF THE MAJOR CROPS USE CROP INSURANCE SO THE PHRASE IS FAMILIAR, BUT HERE IS A SIMPLIFIED EXPLANATION. CROP INSURANCE LIKE ALL INSURANCE REQUIRES REASONABLE ACTIONS BY PRODUCERS. IN OTHER WORDS, YOU CAN’T WAIT UNTIL JULY TO PLANT CORN AND THEN GET A PAYMENT BECAUSE YOUR YIELDS WERE TERRIBLE. THERE ARE SOME KEY DATES. FOR EXAMPLE, FOR IOWA MAY 31 IS THE LAST DATE TO PLANT A CORN CROP AND RECEIVE FULL COVERAGE. AFTER THAT DATE THE COVERAGE FOR A REVENUE POLICY THAT PROMISE TO GUARANTEE AN INCOME OF $500 PER ACRE BEGINS TO DECLINE DAILY. AFTER JUNE 25TH IN THIS EXAMPLE, THE INSURANCE GUARANTEE WOULD BE 60%, OR $300 PER ACRE, THE MINIMUM PAYMENT.

 TEASE:
THANKS, JOHN. EMAIL US YOUR QUESTIONS OR COMMENTS. YOU CAN  ALSO REACH US AT FACEBOOK OR TWITTER. UP NEXT, WHILE REGULATIONS ON DRONES ARE STILL STICKY, FOR SOME IN AGRICULTURE, IT'S ALREADY PROPELLING THEIR OPERATION TO NEW HEIGHTS.  WE'RE OFF TO TEXAS NEXT.   FEDERAL AVIATION ADMINISTRATION TAKES OVER DRONE REGULATION:
 JUST THIS WEEK THE U-S SENATE PASSED A MEASURE  DEEMING THE FEDERAL AVIATION ADMINSITRATION THE  NATION'S DRONE REGULATOR. THAT MEANS ANY STATE  OR LOCAL DRONE LAWS ARE VOID.  DESPITE UNCLEAR REGULATIONS, MORE AND MORE  FARMERS ARE EXPLORING AG DONRES. WHETHER IT'S TO CHECK CATTLE, OR EXPLORE CROP HEALTH MID-SUMMER, ED WOLFF WITH THE TEXAS FARM BUREAU SHOWS US WHY FOR SOME, THE SKY IS THE LIMIT. 
DRONES ARE REVOLUTIONARY AG TECHNOLOGY:
FARMERS ARE LOOKING TO THE SKY. UNMANNED AERIAL VEHICLES OR  UAVS, MORE COMMONLY CALLED DRONES, ARE ANOTHER STEP IN AGRICULTURAL TECHNOLOGY. THERE ARE A LOT OF QUESTIONS AND MUCH EXCITEMENT. RIGHT NOW, THE SKY'S THE LIMIT                     DRONES PROVIDE NEW WAYS TO GATHER AG DATA:
RESEARCHERS LIKE DR. THOMASSON ARE PUSHING THE BOUNDARIES.   SEEING WHAT THE TECHNOLOGY CAN DO. AND WHAT IT MAY DO IN THE FUTURE. TEXAS A&M AND AGRILIFE REASEARCH HAVE A STATEWIDE  RESEARCH PROJECT WITH THE TEXAS ENGINEERING EXPERIMENT STATION. ENGINEERS & AGRICULTURALISTS ACROSS THE STATE ARE  WORKING TOGETHER TO SEE HOW DRONES CAN BENEFIT AGRICULTURE BOTH  TODAY AND TOMORROW. EVERY IMAGE CONTAINS GPS INFORMATION ALLOWING THE IMAGE DATA TO BE STITCHED TOGETHER INTO LARGE-SCALE MAPS. MAPS THAT CAN   ZOOM ALL THE WAY INTO INDIVIDUAL PLANTS.   
"WE CAN ACTUALLY MEASURE THE HEATH OF THE PLANTS AND THEIR  GROWTH RATES | WE CAN PUT CAMERAS WITH DIFFERENT WHAT'S CALLED  MULTI SPECTRAL SENSORS SO MAYBE THEY LOOK IN VISIBLE WHERE OUR  EYES CAN SEE WE CAN ALSO LOOK IN THE NEAR INFRARED WHERE OUR  EYES CAN'T SEE.  AND THAT GIVES US DIFFERENT INFORMATION ABOUT THE  CROPS. PARTICULARLY THEIR HEALTH."  WITH THE TEXAS FARM BUREAU, ED WOLFF, LOCKNEY  TEASE:
THANKS SO MUCH, ED.  WHEN WE COME BACK, TRACTOR TALES AND OUR  COUNTRY CHURCH SALUTE...PLEASE STAY WITH US. 
TRACTOR TALES:
WELCOME BACK.  TRACTOR TALES THIS WEEK TAKES US OUT TO MISSOURI FOR A CLASSIC RED.  THIS FARMALL WAS THE BRAND FAMILY TRACTOR FOR MANY YEARS  AND RICHARD BRAND TELLS US HIS SONS LEARNED HOW TO DRIVE ON THIS, SUPER M.      CHURCH SALUTE:
TODAY'S COUNTRY CHURCH SALUTE GOES TO THE FAITH LUTHERN CHURCH IN PALERMO, NORTH DAKOTA.  IN 1963, THE LOCAL FIRST LUTHERAN AND TRINITY LUTHERAN CHURCHES DECIDED TO JOIN FORCES. AND IN 1967, THEY FORMALLY MOVED INTO THE SAME CHURCH HOME. THE CHURCH STILL CELEBRATES ITS ORIGINAL ANNIVERSARIES, GOING STRONG FOR MORE  THAN 100 YEARS. OUR THANKS TO IVA FOX FOR SHARING THEIR STORY.  
CROP COMMENTS:
 MASSIVE RAINS CAUSED FLOODING FOR OUR VIEWERS IN TEXAS, OKLAHOMA AND LOUSIANA THIS WEEK, MAKING FOR A FRUSTRATING SITUATION. AARON FARMS ABOUT AN HOUR SOUTH OF WACO. AND THIS IS WHAT YOUR FIELDS LOOK LIKE AFTER 8 AND HALF INCHES OF RAIN IN JUST 7 HOURS.
CLOSING:
  FOR JOHN, AL AND MIKE, I'M TYNE MORGAN. THANK  YOU FOR WATCHING U-S FARM REPORT.  BE SURE TO  JOIN US RIGHT HERE AGAIN NEXT WEEK, AS WE WORK TO BUILD ON OUR TRADITION. HAVE A GREAT WEEKEND, EVERYONE.  

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