USFR Weekly Recap - Jan. 23-24, 2016

January 23, 2016 03:30 AM
 

TODAY ON U.S. FARM REPORT:
JAN. 23-24, 2016


OPENING HEADLINES:
<FROM THE 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 YOU CAN EXPECT OVER THE NEXT HOUR.  CLEANING UP AND CLEARING OUT...  ONE LESSON LEARNED IS NOT ONLY IS IT OUR GOAL TO DEPOPULATE IN 24 HOURS.>  DESPITE THE COLD AIR, OFFICIALS ARE DEPOPULATING BARNS TO  QUICKLY CONTAIN THE LATEST OUTBREAK  OF AVIAN FLU.   BREAKING THE MOLD..  <WE TRY NEW THINGS. WE'RE NOT AFRAID TO TRY NEW CROPS.>  IN LEAVE A LEGACY WE TRAVEL TO TEXAS TO MEET A FAMILY WILLING TO TAKE RISKS, WITHOUT SACRIFICING  STRONG FAMILY VALUES.   AND IN JOHN'S WORLD..  <WHY DON'T SATES TAKE CHARGE OF FOREIGN TRADE> 
HOW LOW WILL OIL PRICES GO?:
NOW FOR MARKET RELATED NEWS, AS WARNINGS OF THE WORLD DROWNING IN TOO MUCH OIL HITS   HEADLINES, THE U-S STOCK MARKET IS HAVING ITS WORST YEAR EVER, WITH SOME NOW ASKING HOW LOW OIL PRICES WILL GO.   CRUDE TRADED IN THE 27 DOLLAR PER BARREL MARK BEFORE RALLYING ON THURSDAY. THE INTERNATIONAL ENERGY INFORMATION WARNING  TUESDAY ABOUT THE BOOM IN OIL SUPPLIES, AS SANCTIONS ON IRANIAN OIL ARE LIFTED.  THAT COULD INITIALLY PUMP AN ADDITIONAL 500 THOUSAND BARRELS A DAY INTO THE MARKET.   SCOTT SHELLADY AT THE C-M-E SAYS AS THERE'S NO STRONG DEMAND FOR OIL,  THE REAL STORY IS THE MARKET COULD SEE THESE LOWER PRICES LONGER THAN ANALYSTS THOUGHT.  
 "I KNOW THAT GOLDMAN SACHS AND OTHERS HAVE CALLED FOR $20 OIL AND WE'VE HAD SOME RIDICULOUS CALLS FOR $10 OIL BUT I JUST DON'T SEE IT .> 
OIL PRICES DID REBOUND LATER IN THE WEEK AS WEEKLY PRODUCTION DECLINDED. THE BEARISH OIL PICTURE IS SPILLING INTO OTHER MARKETS.

GLOBAL MARKETS SCREAM RED:
THE  S&P HIT ITS LOWEST POINT IN TWO YEARS ON WEDNESDAY, BUT IT'S NOT JUST THE DOMESTIC MARKET SCREAMING RED.  THE U-K'S EXCHANGE CLOSING DOWN 20 PERCENT FROM IT'S APRIL'S HIGH. DUBAI HITTING A 28 MONTH LOW THIS WEEK. JAPAN FALLING TO THE LOWEST LEVEL SINCE OCTOBER 2014.  
MACRI KEEPS TO HIS WORD AND LIFTS EXPORT TAXES:
AS AREGENTINE EXPORT TAXES ARE LIFTED, IT'S OPENING THE GATE FOR MORE EXPORTS OUT OF THE COUNTRY.   THE FIRST VESSEL OF ARGENTINE WHEAT LEFT FOR  NORTH CAROLINA THIS WEEK, WITH A SECOND VESSEL SCHEDULED FOR NEXT WEEK.   THE U-S DEPARTMENT OF AGRICULTURE SAYS THAT SHIPMENT ALONE WILL CARRY MORE WHEAT THAN WAS EXPORTED FROM JUNE TO NOVEMBER LAST YEAR.   AS PROMISED, THE NEWLY ELECTED PRESIDENT MAURICIO MACRI SCRAPPED EXPORT TAXES ON GRAIN AND BEEF, AND KNOCKING THE SOYBEAN TAX DOWN TO 30 PERCENT. 
DAIRY PRICES EXPECTED TO STAY LOW:
PAINFUL PRICES FOR DAIRY FARMERS AREN'T EXPECTED TO EASE ANYTIME SOON.  BLOOMBERG REPORTS AS PRODUCERS SAW THE LOWEST PRICES IN 12 YEARS LAST YEAR, SLUGGISH DEMAND AND MARKET TURMOIL IN CHINA WILL ONLY FURTHER HURT PRICES.  CANADIAN PROCESSOR SAPUTO PREDICTS MILK PRICES TO REMAIN DEPRESSED IN 2016.  AND NOW IT'S A QUESTION OF WHICH COUNTRY'S PRODUCERS CAN HANDLE THE LOWER PRICES AND ADAPT TO VOLATILITY.  
SYNGETNA SUPPORTS CEHM CHINA MERGER:
NOW ON THE AG MERGER FRONT, BLOOMBERG BUSINESS REPORTING SYNGANTA'S  BOARD IS BACKING THE PROPOSED SALE TO CHEM CHINA.  BUT A GROUP OF SYNGENTA'S SHAREHOLDERS ISN'T ON THE SAME PAGE, SAYING THEY OPPOSE THE DEAL.   THIS NEWS COMES AFTER SYNGENTA BOARD CHAIRMAN  MICHEL DEMARE SAID LAST WEEK THE COMPANY WAS IN TALKS ABOUT A POSSIBLE MERGER.  SYNGENTA HASN'T COMMENTED ON THE STATUS OF  ANY NEGOATIATIONS.  
CANADIAN MINE HALTS POTASH PRODUCTION:
CANADA BASED POTASH CORP SAYS ITS HALTING PRODUCTION AT A MINE IN NEW BURNSWICK. 
THE PICADILLIY MINE JUST OPENED IN LATE 2014--AND  WAS EXPECTED TO CRANK OUT UP TO ONE POINT 8 MILLION TONS OF POTASH A YEAR.  BUT PRICES HAVE DROPPED SIGNIFICANTLY IN RECENT  YEARS...FROM 900 DOLLARS A TON IN 2008 TO ROUGHLY  300 A TON NOW.  THE DECISION TO INDEFINITELY SUSPEND PRODUCTION WILL RESULT IN MORE THAN 400 LAYOFFS..ALTHOUGH IT WILL BE CAPABLE OF RESTARTING PRODUCTION IF PRICES INCREASE. 
NATIONAL WEATHER:
THOSE ARE THE HEADLINES...LET'S CHECK IN NOW WITH METEOROLOGIST MIKE HOFFMAN. MIKE, THINGS  ARE GETTING UGLY OUT EAST.
YOU ARE ABSOLUTELY RIGHT, TYNE. IT IS GOING TO TAKE A WHILE FOR  SOME FOLKS TO DIG OUT FROM THIS ONE. THE GOOD NEWS IS THAT STORM WILL CONTINUE TO MOVE OFF SHORE AND THINGS WILL SLOWLY IMPROVE FOR THE REST OF THE WEEKEND AND IT HAS BEEN SLOWLY IMPROVING IN THE DROUGHT AREAS OUT WEST, WHILE YOU CAN SEE THE EASTERN TWO THIRDS  OF THE COUNTRY NO PROBLEMS THERE, BUT THE EXTREME TO EXCEPTIONAL  DROUGHT AREAS CALIFORNIA, PARTS OF NEVADA, PARTS OF OREGON, CONTINUE TO SLOWLY SHRINK,  BUT IT IS A VERY SLOW PROCESS DESPITE ALL THE MOISTURE YOU HAVE HAD IT TAKES A LONG TIME TO GET OUT FORM A  LONG TERM DROUGHT AND THAT'S WHY WE WERE ARE SEEING  SLOW IMPROVEMENTS THERE.
TEASE:
THANKS, MIKE. WHEN WE COME BACK WE'LL TAKE A DEEPER DIVE INTO FALLING OIL PRICES. JOE VACLAVIK AND RICH NELSON JOIN ME TO TALK MARKETS NEXT.  
ROUNDTABLE 1:
 WELCOME BACK TO U.S. FARM REPORT.
WELL, AS PROMISED ON THE ROUND TABLE WITH ME THIS WEEK, RICH NELSON OF ALLENDALE AND JOE VACLAVIK OF STANDARD GRAIN.
BIG MARKET MOVER THIS WEEK.
WE SAW OIL, OIL PRICES JUST CONTINUED TO TANK, ALTHOUGH WE SAW A LITTLE BIT OF A REBOUND LATER IN THE WEEK.
SO, RICH, MOVING FORWARD, I MEAN, WE'RE TALKING ABOUT $20 OIL.
DO YOU ACTUALLY THINK WE CAN GET DOWN THAT LOW?
 AT THIS POINT I THINK IT'S MORE A SPECULATION THAN ANYTHING HERE.

ROUNDTABLE 2:
 WELCOME BACK TO U.S. FARM REPORT.
OKAY, JOE, WHEN WE LOOK AT THIS ACRES PICTURE DO YOU THINK OVERALL ACRES ARE GOING TO BE DOWN CONSIDERING THE PRICES WE HAVE RIGHT NOW?
 NO, IT ACTUALLY APPEARS AS IF OVERALL    WELL, CORN AND SOYBEAN ACRES ARE GOING TO BE UP, PROBABLY.
WE KNOW THAT WINTER WHEAT ACRES ARE DOWN PRETTY SIGNIFICANTLY.
THE WAY THAT THE CORN AND SOYBEAN ACREAGE ROTATION IS GOING TO GO REMAINS TO BE SEEN.
THERE'S A COUPLE DIFFERENT SCHOOLS OF THOUGHT THERE.
THE ONE SCHOOL OF THOUGHT IS THAT, WELL, SOYBEANS ARE CHEAPER INPUT.
WE'RE GOING TO SEE EXPANDED BEAN ACREAGE.
THE OTHER SIDE OF THAT IS THAT I THINK THE MARGINS IN A LOT OF AREAS PENCIL OUT A LITTLE BIT BETTER FOR CORN RIGHT NOW GIVEN CURRENT PRICES, SO THE SCHOOL OF THOUGHT THERE WOULD BE THAT DESPITE CHEAP PRICES YOU'RE GOING TO SEE A YEAR TO YEAR INCREASE IN CORN ACREAGE, SO I THINK OVERALL THE COMBINED ROW CROP ACREAGE WOULD BE UP.

MARKETS NOW:
OKAY,
NOW WE'RE BACK WITH MARKETS NOW.
RICH NELSON, WE'LL START WITH YOU.
 MAIN ISSUE HERE, YOU KNOW, THINGS ARE LOW PRICED RIGHT NOW, AND THEY'RE NOT GOING TO RECOVER MAJORLY SOON.
ON A POSITIVE END LET'S KEEP IN MIND WE'RE COMING OFF OF A RECORD YIELD FOR SOYBEANS, AND A SECOND HIGHEST YIELD EVER FOR CORN THIS PAST YEAR.
JOHN’S COMMENTARY:
WITH ALL THIS TALK ABOUT THE OVERSUPPLY OF OIL, JOHN HAS SOME TIMELY THOUGHTS.  JOHN.   LAST SATURDAY, IRAN RELEASED  FIVE AMERICAN DETAINEES. EARLIER IN THE WEEK THE IRANIAN MILITARY PERFORMED A KIND OF CATCH-AND-RELEASE ON SOME U-S NAVY PERSONNEL WHO HAD STRAYED INTO IRANIAN WATERS. BOTH THESE CONCLUSIONS WERE TO ME HAPPY ENDINGS, BUT HOW WE GET TO THOSE HAPPY ENDINGS SEEMS TO MATTER TO SOME MORE THAN IT USED TO.  DIPLOMACY IS BORING AND TIME-CONSUMING AND EXHAUSTING. MEANWHILE THE REST OF OUR LIVES HAS MOVED INTO CONSTANT EXCITEMENT OVERDRIVE WITH NEARLY INSTANTANEOUS CONSEQUENCES FROM OUR CHOICES. AND DIPLOMATIC RESULTS RARELY GIVE THAT "TOTAL VICTORY" FEELING MANY NOW LONG FOR. THE SATISFACTION OF CONCLUDING A TRADE AGREEMENT   JUST CAN'T COMPARE WITH THE FEELING OF WINNING THE SUPER BOWL, EVEN WHEN WE KNOW WHICH IS MORE IMPORTANT.  ON OUR FARMS THIS WINTER, THERE HAS BEEN SOME SERIOUS DIPLOMACY UNDERWAY WITH LANDOWNERS,  LENDERS AND VENDORS. GRANTED THE STAKES ARE ECONOMIC, NOT GEOPOLITICAL, BUT IN MANY CASES THE CONCLUSIONS MAY FEEL LESS THAN SATISFYING.   WE WOULD MUCH RATHER HAVE THE POWER TO DICTATE OUR TERMS TO OBTAIN INSTANT RESULTS WHOLLY IN OUR FAVOR.   TEASE:
THANKS, JOHN. WHEN WE COME BACK, AS THE LATEST AVIAN INFLUENZA OUTBREAK HITS INDIANA, THE RESPONSE HAS BEEN QUICKER THAN LAST YEAR, BUT THE FRIGID TEMPERATURES AREN'T HELPING EASE THE PROCESS. THAT'S OUR FARM JOURNAL REPORT AFTER THE BREAK.  
SECOND HALF OF 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 HEAD. OUR FARM JOURNAL REPORT  SHOWS HOW OFFICIALS ARE CONTAINING THE LATEST AVIAN   FLU OUTBREAK. IN LEAGACY, IT'S ALL ABOUT TAKING RISKS, NO MATTER YOUR AGE. JOHN PHIPPS ANSWERS A VIEWER'S COMMENT ABOUT WANTING STATES TO TAKE CONTROL OF MORE TRADE DEALS. AND IN TRACTOR TALES, WE HAVE A ONE-OF-A KIND CLASSIC IN KANSAS.   

AVIAN FLU:
NOW FOR THE HEADLINES, THE WINTER BLAST DIDN'T STOP OFFICIALS FROM CLEANING UP THE LATEST AVIAN INFLUENZA OUTBREAK, AS 400 THOUSAND BIRDS WERE KILLED IN JUST A MATTER OF DAYS.   AS WE FIRST REPORTED LAST WEEK, OFFICIALS CONFIRMED THE H-7-N-8 STRAIN IN TURKEY FARMS HOUSED IN SOUTHWEST INDIANA. MORE THAN 400 THOUSAND TURKEYS AND BROILERS WERE EUTHANIZED TO STOP THE SPREAD OF THE DISEASE.   EVEN THOUGH THE A-I WAS ONLY FOUND IN TURKEYS, 156 THOUSAND CHICKENS WERE ALSO DEPOPULATED SINCE THE BIRDS WERE SO CLOSE TO THE INFECTED AREA.   CHICKENS DEPOPULATED TO PREVENT AVIAN FLU SPREAD:
<THOSE CHICKENS WERE CONSIDERED DANGEROUS CONTACT JUST BECAUSE THEY MAY HAVE BEEN BEEN IN CLOSE PROXIMITY OR THEY MIGHT OF HAD SHARED PERSONNEL OR EQUIPMENT WITH AN INFECTED FLOCK SO BECAUSE OF THAT THEY WERE DEPOPULATED BUT AGAIN WE WANT TO STRESS THEY WERE NOT POSITIVE  FOR AVIAN INCLUDEZA. ALL OF THE BIRDS THAT WERE POSITIVE WERE COMMERICAL TURKEYS> 
NEW STRAIN:
AS WE'VE BEEN REPROTING, THE OFFICIALS CONFIRMED THE H-7 STRAIN ON MULTIPLE INDIANA FARMS LATE LAST WEEK.  THIS IS DIFFERENT FROM THE H-5 STRAIN THAT FORCED THE SLAUTHTER OF 48 MILLION BIRDS AND DROVE UP  THE PRICES OF EGGS.   WHILE THE OUTBREAK LOOKS TO BE CONTAINED,  IT'S GARNERED INTERNATIONAL ATTENTION, AND AS   EXPECTED, NEW EXPORT BANS ARE NOW IN PLACE. 
AVIAN FLU’S IMPACT ON EXPORTS:
HERE'S THE LATEST INFORMATION FROM THE EXPORT COUNCIL.  OFFICIALS TELL US SOUTH KOREA IS RESTRICTING ALL U-S UNCOOKED POULTRY PRODUCTS AND EGGS, BUT COOKED POULTRY IS STILL ALLOWED.   HONG KONG BANNED POULTRY FROM ONLY THE INFECTED INDIANA COUNTY.  JAPAN HAS TRADE RESTRICTIOSN ON JUST INDIANA.   AND CHINA STILL HAS ITS BAN ON POULTRY FROM EARLY LAST YEAR.
 KILL BILL: A BILL TO KILL THE HIGHLY DEBATED WATERS OF THE U-S RULE DIDN'T MAKE IT PAST THE PRESIDENT'S DESK. BUT SUPPORTERS SAY THEY AREN'T GIVING UP JUST YET.   AS EXPECTED, THE PRESIDENT VETOED THE ANTI-WOTUS BILL TUESDAY SAYING, QUOTE, TOO MANY OF   OUR WATERS HAVE BEEN LEFT VULNERABLE.  THE SENATE FAILED TO OVERRIDE THE PRESIDENT'S VETO THIS WEEK.  
COSTLY REGULATIONS BURDEN RURAL ECONOMIES: A NEW SURVEY SHOWS IT'S THOSE COSTLY REGULATIONS THAT COULD BE THE BIGGEST THREAT TO RURAL ECONOMIES THIS YEAR.   THAT'S ACCORDING TO THE LATEST RURAL MAINSTREET   INDEX PUBLISHED EACH MONTH BY ERNIE GOSS OF CREIGHTON UNIVERSITY.  HE SAYS WHEN SURVEYING RURAL BANKERS IN JANUARY, THE HEALTH OF THE RURAL ECONOMY REMAINS WEAK, WITH THE INDEX HITTING THE LOWEST POINT SINCE AUGUST 2009. 
RENEWABLE FUELS FEEL THE BURN:
FOR A FIFTH CONSECUTIVE MONTH, THE MAINSTREET  INDEX FELL BELOW GROWTH NEUTRAL. RENEWABLE FUELS ARE ALSO FEELING THE BURN.   ABOUT ONE-FIFTH OF BANKERS REPORT CUT TO ETHANOL PRODUCTION IN THEIR AREA.  
CRUZ’S LACK OF SUPPORT FOR RENEWABLE ENERGY COULD COST IOWA VOTES:
SPEAKING OF ETHANOL, IT WAS A HOT TOPIC ON THE CAMPAIGN TRAIL THIS WEEK.  THE GOVERNOR OF ETHANOL POWERED IOWA SAYS VOTERS SHOULD REJECT REPUBLICAN PRESIDENTAL  HOPEFUL TED CRUZ OVER HIS LACK OF SUPPORT FOR RENEWABLE FULES.  WHILE SPEAKING AT A RENEWABLE FUELS SUMMIT, GOVERNOR TERRY BRANSTAD  SAID CRUZ HASN'T   SUPPORTED RENEWABLE FUELS, AND THINKS "IT WOULD BE A BIG MISTAKE FOR IOWA TO SUPPORT HIM." 

 BEEF FAT BIOFUEL SEEKS TO BE PART OF GREENER ENERGY:
WHAT DOES THE U-S NAVY AND CATTLE RANCHERS  HAVE IN COMMON? THEY BOTH ARE POWERED BY VEEF.  THE NAVY LAUNCHED ITS FIRST CARRIER STRIKE GROUP THIS WEEK THAT'S PARTLY POWERED BE BIOFUEL, A MIX MADE FROM BEEF FAT.   IT  ONLY CONTAINS 10 PERCENT BIOFUELS,  BUT THE NAVY HOPES THAT WILL CHANGE.  THE ORIGINIAL GOAL WAS A 50-50 RATIO, BUT THE COST WAS TOO HIGH.   AG DEPUTY SECRETARY TO STEP DOWN:
A MAJOR ADVOCATE FOR YOUNG FARMERS AND RANCHERS IS LEAVING HER POST AT THE AG DEPARTMENT EARLY.  DEPUTY SECRETARY OF AGRICULTURE KRYSTA HARDEN ANNOUNCED THIS WEEK SHE'S STEPPING DOWN NEXT MONTH.  NO REASON WAS GIVEN.   MICHAEL SCUSE, THE CURRENT UNDER SECRETARY  FOR FARM AND FOREIGN AGRICULTURAL SERVICES, WILL NOW SERVE AS ACTING DEPUTY SECREATRY.   FEDERAL RAILROAD ADMINISTRATION TALKS MERGER:
THE FEDERAL RAILROAD ADMINISTRATION SAYS IT WOULD NEED A CLOSE LOOK AT ANY POSSIBLE MEGA MERGER.  THE COMMENT COMES AS CANADIAN PACIFIC RAILWAY AND NORFOLK SOUTHERN DISCUSS COMBINING FORCES. A LTHOUGH THE NEARLY 30 BILLION DOLLAR OFFER  FROM C-P IS YET TO BE ACCEPTED.  THE TALK HAS SHIPPERS--INCLUDING FOLKS IN AGRICULTURE--WORRIED ABOUT POSSIBLE INCREASES IN PRICES OR SERVICE CHALLENGES.  OTHER BIG RAILROAD COMPANIES SAY IF A DEAL LIKE THIS GOES THROUGH IT WOULD FORCE THEM TO LOOK AT CONSOLIDATION AS WELL. 

DAIRY PRODUCERS TO RECEIVE SOME COMPENSATION FOR DUMPED MILK:
AN UPDATE TO THE SOUTHWEST BLIZZARD THAT HAMPERED MILK PRODUCTION AND FATAL TO BOTH DAIRY AND CATTLE RANCHERS.  DAIRY FARMERS ARE FINALLY SEEING FINANCIAL RELIEF ROLL IN.   DAIRY FARMERS IN THE PATH OF WINTER STORM GOLIATH'S MAMMOTH BLIZZARD LOST MILLIONS OF DOLLARS IN MILK PRODUCTION. PRODUCERS WHO ARE MEMBERS OF THE GREATER SOUTHWEST AGENCY, COMPRISED  OF DAIRY FARMERS OF AMERICA (DFA), SELECT MILK PRODUCERS AND ZIA MILK PRODUCERS, RECEIVED FINANCIAL RELIEF FOR THOSE LOSSES-- TO THE TUNE OF $4.5 MILLION. 
THROUGHOUT THE TWO-DAY STORM PRODUCERS WERE EITHER UNABLE TO MILK COWS BECAUSE OF THE EXTREME CONDITIONS, OR THEY HAD TO DUMP THE MILK THEY PRODUCED DOWN THE DRAIN BECAUSE THE ROADS WERE CLOSED AND MILK TRUCKS COULDN'T PICK IT UP. THE AGENCY  ESTIMATES 24 MILLION POUNDS OF MILK WERE PRODUCED AND DUMPED  DOWN THE DRAIN BETWEEN THE THREE COOPERATIVES DURING THE STORM.  THE CO-OPS HAVE VOTED TO PAY EVERY PRODUCER IN THE AFFECTED  REGION 85% OF THEIR AVERAGE PRE-STORM MILK VOLUME FOR THE FIVE  DAYS FOLLOWING THE STORM, DEC. 27-31. A DECISION THAT GH CAIN, DFA'S DIRECTOR OF MEMBER SERVICES IN THE REGION, SAYS ISN'T STANDARD PROCEDURE.  NATIONAL WEATHER:
THAT'S IT FOR NEWS...METEOROLOGIST MIKE  HOFFMAN JOINS US NOW WITH A LONGER-RANGE  OUTLOOK. MIKE, AS YOU'VE MENTIONED, THE DROUGHT MONITOR JUST WON'T BUDGE IN CALIFORNIA.   HOPEFULLY THERE'S EVEN MORE RELIEF ON THE HORIZON.   THANKS, TYNE. IT KIND OF LOOKS LIKE A LITTLE BIT OF A LOLL FOR THE WEST COAST NOT GETTING THOSE HEAVY RAINS AND SNOWS TILL THE END OF THE WEEK AGAIN.
AVAIN FLU IN SOUTHWEST INDIANA:
THANKS, MIKE.  AS WE REPORTED EARLIER, AFTER MONTHS OF NO REPORTED CASES OF AVIAN INFLUENZA, IT'S BACK, BUT THIS TIME IN A DIFFERENT FORM.   THE INDIANA BOARD OF ANIMAL HEALTH AND USDA ANNOUNCED 10 INFECTED COMMERCIAL TURKEY   OPERATIONS TESTED POSITIVE FOR AVIAN INFLUENZA- WITH BOTH LOW AND HIGH PATH CASES.   NATIONAL REPORTER BETSY JIBBEN HAD BOOTS ON  THE GROUND IN SOUTHWEST INDIANA THIS WEEK.   AS SHE TELL US IN THIS FARM JOURNAL REPORT, WHILE AVIAN FLU ISN'T NEW, THERE ARE STILL LESSONS TO BE LEARNED.   IT WAS LAST YEAR AT THIS TIME AVIAN INFLUENZA FIRST  POPPED UP ON THE WEST COAST. BY MARCH, THE DISEASE BEGAN RAGING THROUGH THE MIDWEST.  MINNESOTA TURKEY GROWER, GREG LANGMO WASN'T SPARED.  "THERE'S NOTHING YOU CAN DO YOU CAN'T MAKE IT BETTER. AND THAT'S  WHAT'S BEEN SO FRUSTRATING FOR ME.... I COULDN'T STOP IT."  LANGMO AND HUNDREDS OF OTHERS...  DURING THAT TIME, NEARLY 50 MILLION BIRDS, INCLUDING BACKYARD FLOCKS, WERE INFECTED AND DEPOPULATED.
DIFFERENT AVIAN FLU STRAIN:
BUT UNLIKE THE H5- CASES FROM LAST YEAR, THIS IS A DIFFERENT STRAIN CALLED H-7-N-8.  INDIANA STATE VETERINARIAN, DOCTOR BRET MARSH,  SAYS THIS FINDING OF HIGH PATH H7M8 IS UNIQUE TO NOT ONLY INDIANA BUT THE NATION.  "WHEN IT COMES TO AVIAN INFLUENZA, WE ARE THINKING OF THE 5S AND THE 7S. THERE ARE LOTS OF OTHERS BUT THOSE ARE THE ONES THAT HAVE THE POTENTIAL TO CAUSE  SERIOUS IMPACTS IN THE POULTRY INDUSTRY.
LOW PATH OR HIGH PATH. SO WHEN WE RECEIVE THIS, WE WERE PERPLEXED. WE WEREN'T LOOKING FOR THE 5 TO COME THROUGH."  THE  ORIGINAL CASE, A FACILITY HOLDING 60-THOUSAND TURKEYS,  IS A HIGHLY PATHOGENIC STRAIN OF H7N8 MAKING IT THE FIRST KNOWN CASE OF HIGHLY PATH H7N8 IN THE COUNTRY.   EIGHT OF THE NINE OTHER CASES ARE CONSIDERED TO BE LOW-PATH H7. THE LAST OPERATION IS STILL BEING TESTED.   BIRDS IN THE AREA DEPOPULATED TO PREVENT SPREAD:
INITIALLY,OFFICIALS PUT UP A 10 KILOMETER QUARENTINE ZONE. BUT HAVE EXPANDED THAT ZONE FURTHER TO COMBAT THE VIRUS.   OFFICIALS SAY BIRDS HAVE BEEN DEPOPULATED ON ALL 10 LOCATIONS. SO FAR, THAT'S OVER 400THOUSAND TURKEYS AND BROILERS. COMPOSTING IS A SEPARTE PROCESS.   INDIANA OFFICIALS SAY THEY ARE HAPPY WITH THE  RESPONSE, HOWEVER SINGLE DIGIT FRIGID   TEMPERATURES WERE A PROBLEM.   COLD TEMPERATURES PRESENT CHALLENGES TO FIGHTING VIRUS:
THE COLD AIR FROZE WATER LINES USED TO CREATE FOAM FOR EUTHANIZATION- FORCING WORKERS HAD TO HAULT THE PROCESS OR USE OTHER HUMANE METHODS.   REPORTING FOR U.S. FARM REPORT, I'M BETSY JIBBEN.   THANKS, BETSY.   HARRIS VACCINES DEVLOPED A  H5 VACCINE IN 2015, HOWEVER IT HASN'T BEEN USED.    THEY SAY THEY DON'T HAVE A VACCINE FOR THIS NEW STRAIN..BUT ONCE THEY GET THE GENETIC SEQUENCE,  THE COMPANY SAYS IT CAN CREATE A VACCINE QUICKLY. 
TEASE:
UP NEXT, JOHN PHIPPS.
"DIPLOMACY, LET'S FACE IT, IT'S DULL."
TPP:
POLITICO REPORTED THIS WEEK THAT THE TRANS PACIFIC PARNTERSHIP COULD COAST THE U-S BILLIONS OF DOLLARS. BUT MANY AG GROUPS ARE TOUTING THE  BENEFIT INCREASED DEMAND WOULD BRING TO FARMERS ADN RANCHERS.  
CUSTOMER SUPPORT:
IN CUSTOMER SUPPORT, ONE VIEWER IS FRUSTRATED  WITH THE LACK OF TRADE PACT PROGRESS OUT OF WASHINGTON. JOHN'S HERE WITH MORE. JOHN.  
TRACEY LOCKWOOD IN LANSFORD, PA COMMENTS ON THE TPP.
"THERE'S BEEN A LOT OF TALK ABOUT THE TPP…VIRGINIA DOESN'T STAND AROUND WAITING FOR THE FEDERAL GOVERNMENT TO MAKE DEALS.    VIRGINIA MAKES ITS OWN DEALS.  WHY CAN'T MORE STATES TAKE RESPONSIBILITY FOR THEIR FUTURE?"    THANKS FOR WRITING. SEND YOUR ADDRESS AND I'LL GET A MUG TO YOU.  
I THINK YOUR ADMONITION TO HAVE STATES TAKE CHARGE WHEN THEFEDERAL GOVERNMENT IS SEEMINGLY FAILING CONFUSES SOME OF THE RESPONSIBILITIES OF EACH.  ALL STATES I SUSPECT HAVE TRADE MISSIONS. OFTEN FARMERS JOIN  THEM TO TRY TO IMPROVE SALES OF AG PRODUCTS FROM THEIR STATE.  
INTERNATIONAL AGREEMENTS LIKE TPP - THE BIG TRADE PACKAGE  BEFORE CONGRESS - MUST NECESSARILY BE NEGOTIATED BY THE FEDERAL  GOVERNMENT. VIRGINIA DOES NOT HAVE THE AUTHORITY TO CHANGE IMPORT AND EXPORT RULES AND FEES. THIS MAKES SENSE, BECAUSE OTHERWISE STATES LIKE KANSAS WOULD BE AT THE MERCY OF ARBITRARY TRADE RULES FOR THEIR PRODUCTS GOING THROUGH CALIFORNIA OR LOUISIANA.  BESIDES ARTICLE 1, SECTION 8, CLAUSE 3 - THE  COMMERCE CLAUSE - EMPOWERS CONGRESS ALONE "TO REGULATE COMMERCE WITH FOREIGN NATIONS, AND AMONG THE SEVERAL STATES, AND WITH THE INDIAN TRIBES"   TEASE:
THANKS, JOHN. WHEN WE COME BACK, WE'RE OFF TO THE LONE-STAR STATE TO MEET A YOUNG FARMING FAMILY PUSHING THE ENVELOPE TO BUILD A BETTER FUTURE.  

INNOVATIVE TEXAS FARMER:
EACH YEAR, THE TEXAS FARM BUREAU SEARCHES THE STATE TO RECONGNIZE A PROLIFIC YOUNG FARMER OR RANCHER. THIS YEAR'S WINNERS GROW AN  ASSORTMENT OF CROPS, INCLUDING RICE, ORGANIC  CORN, GRAIN SORGHUM, SOYBEANS AND WHEAT. BUT AS TEXAS FARM BUREAU TELLS US, IT'S THEIR WILLINGNESS TO TAKE RISKS, WHILE NOT SACRIFICING THEIR FAMILY VALUES, THAT MAKES THEM THE CREAM OF THE CROP.  
BE AN INNOVATOR. DON'T BE AFRAID TO TAKE RISKS. THAT WAS THE  MOTTO OF TIMOTHY GERTSON'S GRANDFATHER.  AND TIMOTHY IS  FOLLOWING IN HIS FOOTSTEPS. HE GROWS RICE, GRAIN SORGHUM, SOYBEANS AND WHEAT IN WHARTON COUNTY.   
AS A YOUNG FARMER, IT'S HARD TO BALANCE FARM, FAMILY AND SERVICE.  BOTH TIMOTHY AND HIS WIFE, LINDY TEACH SUNDAY SCHOOL AT THEIR CHURCH.  TIMOTHY AND HIS DAD HELP WITH HABITAT FOR HUMANITY.  AND HE'S THE PRESIDENT OF THE WHARTON COUNTY FARM BUREAU.  HE ALSO SERVES ON SEVERAL RICE BOARDS & COMMITTEES.  HELPING TO MAKE SURE U.S. RICE IS TOP QUALITY.   
THANKS SO MUCH. AND OUR CONGRATULATIONS TO THE GERTSONS FOR FINSIHING IN THE TOP TEN NATIONALLY AT THE AMERICAN FARM BUREUA CONVENTION THIS MONTH. 
TEASE:
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  TO THE KANSAS PLAINS  WHERE WE INTRODUCE YOU TO A COLLECTOR WHO RESTORED A ONE-OF-A KIND CLASSIC.    IT'S CALLED A SIMPSON AND IT'S POWERED WITH A  CHRYSLER ENGINE.  IT MAY LOOK LIKE A STANDARD  TRICYCLE TRACTOR, BUT THERE'S MORE TO THIS BEAUTY THAN WHAT YOU SEE. 
CHURCH SALUTES:
THIS WEEKEND, WE ARE PAYING TRIBUTE TO THE TAYLOR CHAPEL UNITED METHODIST CHURCH IN FORT WAYNE, INDIANA. THE CONGREGATION JUST  CELEBRATED 150 YEARS IN NOVEMBER. TERRY AND MARCIA NICCUM TELL US THE CHURCH WAS HIT BY A  TORNADO IN 1998 AND A FIRE IN 2012, BUT REBUILT A  NEW SANCTUARY AND STILL GOING STRONG TODAY.   OUR THANKS TO THE NICCUMS FOR SHARING THEIR  STORY.   CROP WATCH:
 8 DEGREES WITH A BARE FIELD. BUT ALVIN TELLS US THEY'VE RECEIVED SOME SNOW AS OF RECENT, WITH NO SHORTAGE OF WIND TO GO ALONG WITH IT.   THE POTTINGERS WERE ENJOYING THE BLANKET OF WHITE SNOW ON THE FARM. LEAH CAPTURED SOME PHOTOS. IT LOOKS SO PRESTINE. THIS IS AFTER THEY RECEIVED FOUR INCHES OF SNOW MID-WEEK. BUT THAT WAS JUST THE START, AS THAT GOLIATH OF A WINTER STORM WAS SUPPOSED TO DROP UJP TO A FOOT OF  SNOW WITH EVEN A LITTLE ICE.
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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