USFR Weekly Recap - June 18-19, 2011

June 20, 2011 08:50 AM
 

THIS WEEK ON U.S. FARM REPORT
EPISODE #1975
JUNE 18-19, 2011

JOHN’S OPEN: HELLO AND WELCOME TO U.S. FARM REPORT, I'M JOHN PHIPPS. I HAVE BEEN TRYING TO COMPREHEND HOW CORN PRICES COULD DROP NEARLY A DOLLAR IN A WEEK AND NOT REDUCE ME TO A BLUBBERING BASKET CASE. OKAY, I HAVE WHINED A TINY BIT, BUT THEN I ALSO SOLD SOME THE WEEK BEFORE WHICH REALLY MESSES WITH YOUR MIND. I AM NOT ALONE. OTHER FARMERS I HAVE TALKED TO ARE NOT PUSHING THE PANIC BUTTON. IN FACT, THE MORE WE SCOUT OUR FIELDS THE MORE WE LEAN TOWARD THE IDEA OF FUNDAMENTALS LIKE SUPPLY REASSERTING SOME LEVERAGE IN FUND-DOMINATED MARKETS. IN FACT, AS I SEE HISTORIC BASIS LEVELS COUNTERACTING PLUMMETING FUTURES PRICES, I BEGIN TO WONDER IF THE BROKEN WHEAT MARKET IS AN OUTLIER OR A PRECURSOR. TIME NOW FOR THE HEADLINES.....HERE'S AL PELL

AG BUDGET: THANK YOU JOHN. THE HOUSE OF REPRESENTATIVES APPROVED LEGISLATION THURSDAY THAT FUNDS THE DEPARTMENT OF AGRICULTURE FOR THE NEXT FISCAL YEAR. TOTAL SPENDING IS AROUND 145-BILLION DOLLARS. AND MUCH OF THAT IS FOR FOOD PROGRAMS. BUT FOR THE BIG LIVESTOCK GROUPS, THE IMPORTANT FOOT-NOTE IS WHAT WAS NOT FUNDED. THE HOUSE MEASURE DENIES MONEY FOR THE GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION - OR GIPSA. AS MANDATED BY THE 2008 FARM BILL, GIPSA WOULD DEVELOP RULES ON PRODUCTION AND MARKETING CONTRACTS OF LIVESTOCK AND POULTRY. GROUPS LIKE THE NCBA AND NATIONAL PORK PRODUCERS COUNCIL SAY "GIPSA" GOES FAR BEYOND ITS MANDATE. THE SENATE IS YET TO TAKE-UP THE BUDGET.

INFORMA ACREAGE: AN UPDATED ACREAGE FORECAST FROM INFORMA ECONOMICS REFLECTS THE IMPACT SEVERE FLOODING IS HAVING ON THE CORN CROP. THE COMMODITY RESEARCH FIRM EXPECTS UNDER 91-MILLION ACRES OF CORN WERE PLANTED THIS YEAR. IN MARCH, USDA PROJECT PLANTED ACREAGE ABOVE 92-MILLION. THE REVISION IS A RESULT OF LOST ACRES FROM FLOODING ALONG THE MISSISSIPPI AND MISSOURI RIVERS. SPRING WHEAT ACRES ARE ALSO LOWER, PEGGED AT 13.2 MILLION, DOWN MORE THAN A MILLION FROM USDA'S MARCH FORECAST. MEANWHILE, INFORMA SEES A BIGGER COTTON CROP THAN USDA. THE PRIVATE FIRM SEES 13.8 MILLION ACRES, WHILE USDA IS CALLING FOR 12.5 MILLION. USDA WILL RELEASE ITS UPDATED FORECAST ON JUNE 30TH.

CANADA WHEAT: AT A TIME WHEN WHEAT PRICES ARE HIGH, CANADIAN FARMERS WON'T BE ABLE TO BENEFIT. THE CANADIAN WHEAT BOARD SAYS A SOGGY SPRING HAS LIMITED FARMERS' ABILITY TO SEED THEIR CROPS IN MANITOBA AND SASKATCHEWAN. THE MARKETING BOARD EXPECTS BETWEEN 5 AND 7 MILLION ACRES IN THOSE TWO PROVINCES WILL GO UN-PLANTED THIS YEAR. IN OTHER WORDS, ONLY ABOUT 20% OF MANITOBA'S FARM-LAND WILL TURN A CROP THIS YEAR.

AUSSIE WHEAT: MEANWHILE, AUSTRALIA IS OFF TO A GOOD START. THE AUSSIE DEPARTMENT OF AG SAYS GOOD SOIL MOISTURE IN THE EASTERN STATES AND FAVORABLE GRAIN AND OILSEED PRICES HAVE ENCOURAGED AUSTRALIAN PRODUCERS TO INCREASE WINTER CROP PLANTINGS THIS YEAR. THE AREA PLANTED TO WHEAT IS FORECAST TO REACH A RECORD 35-MILLION ACRES, SEVEN PER CENT HIGHER THAN LAST YEAR.

CROP WATCH: CROP WATCH THIS WEEK...IN ARKANSAS, AN ENTOMOLOGIST FOR THE STATE EXTENSION OFFICE SAYS PRODUCERS MAY HAVE ANOTHER TOUGH YEAR WITH BOLLWORM. THE ARKANSAS EXTENSION OFFICE SAYS IN EARLY MAY TRAPS AVERAGED ALMOST 60 MOTHS PER. NOW IT'S OVER 400. ENTOMOLOGIST EXPECTS THE BUG CAME-IN FROM A SOUTHERLY FLOW OF WIND FROM MEXICO AND THE CARIBBEAN. FROM WELD COUNTY, COLORADO A PRODUCER SAYS THEY PLANTED DEEP THIS SPRING LOOKING FOR MOISTURE WITH ONLY ABOUT AN INCH OF RAIN IN THE FIRST MONTHS OF THE YEAR. BUT THEN RAINS STARTED IN MAY, FOLLOWED BY COOL TEMPERATURES. THE PRODUCER SAYS THE SEED STRUGGLED AGAINST THE COLD, DEPTH OF PLANTING AND CRUSTING. WHEN U.S. FARM REPORT RETURNS, AL IS BACK TO TALK MARKETS WITH RICHARD BROCK AND MIKE FLOREZ. THEY JOIN US IN TWO MINUTES - PLEASE STAY WITH US.

ROUNDTABLE: ROUND TABLE GUEST THIS WEEK RICHARD BROCK AND MIKE FLOREZ. LAST WEEK, AN UNDERSTATEMENT, IT WAS A VERY UNUSUAL WEEK IN THE MARKET. RICHARD, I'M GOING TO GO TO YOU, YOU WERE FIGURING UP HOW MUCH WE LOST. I THINK WE HAD A LOT OF UNUSUAL WEEKS HERE IN THE LAST THREE OR FOUR MONTHS. AS THE WEEK CAME TO A CLOSE CORN WAS DOWN 50, WHEAT DOWN 88- CENTS AND YOU TAKE A LOOK AT THE CROP TERRAIN TODAY IN NORTHERN INDIANA AND FLEW INTO OHIO, THERE IS NO CROP TO LOOK AT. NOTHING IS MORE THAN 3 OR 4 INCHES TALL. IT IS AMAZING THIS TIME OF THE YEAR. LAST YEAR AT THIS TIME, CORN WAS HALF OF A KNEE HIGH? OR LARGER. RIGHT? A LOT OF THAT CROP HAS BEEN PLANTED. BOY IT IS GOING TO STRUGGLE TO HAVE A DECENT YIELD. NOW, MICHAEL YOUR JUDGMENT THE REASON THAT THE PRICES WENT DOWN. WE HAD MANAGEMENT MONEY LIQUIDIDATE THEIR POSITIONS. BASICALLY YOU'RE TALKING ABOUT THE FUNDS LIQUIDATING. RIGHT. I THINK 60,000 CONTRACTS TRADED BETWEEN MONDAY AND THURSDAY -- LIQUIDATION. I DON'T KNOW WHAT IT WAS TODAY. THEY RAN OVER IT, IT STOPS, SNOWBALLS UPON ITSELF. WE HAD THREE OF THESE OVER THE PAST THREE MONTHS. THE TSUNAMI AND GOLDMAN WAS SAYING TO SELL EVERYTHING. THEY STEAM ROLLED OVER EACH OTHER. IT HAS NOTHING TO DO WITH CORN. YOU'RE SAYING THAT, IS THAT TRUE? THINK SO, CORN IS TAKING PLACE OF WHAT HAPPENED WITH WHEAT. YOU HAVE THE CASH MARKET AND THE FUTURES AND THE TWO SEPARATE THEMSELVES. IN THE EASTERN CORN BELT, IT IS 80-CENTS TO $1 A BUSHEL OVER THE BOARD. THE MARKET DOESN'T BREAK MOST PEOPLE CANNOT GET CORN. SO, WE'RE SEEING A SEPARATION HERE, BUT WHAT MIKE SAYS IS REALLY TRUE. IT IS IMPORTANT TO UNDERSTAND IN THE MARKETS RIGHT NOW, YOU HAVE THE NORMAL FUNDAMENTALS THAT WE REALIZE, HOW BIG THE CROP IS AND WHAT WE WILL CONSUME. THE OTHER THING IS THE CASH FLOW AND OUT OF THE FUNDS. YOU CAN SAY THIS WOULD NOT HAVE GONE DOWN, IF NOT UP FOR THE FUNDS. THAT'S TRUE, BUT WE WOULD NOT BE UP TO THIS LEVEL. THEY DRIVE IT UP AND DOWN. '08 IS A GOOD EXAMPLE. THERE IS NO QUESTION ABOUT THAT. THE FUNDS CAUSED THEM TO DECIDE TO GET RID AND LIQUIDATE THE MARKET? I CAN'T SAY IF IT IS A NEW STORY, I CAN'T SAY IT IS. THE MARKETS WILL USUALLY FIND A NEW STORY, BUT IT IS AL UNTIL THEY START SELLING. THERE IS SO MUCH TO SELL DURING THE PERIOD OF TIME DURING THE DAY. IT IS AUTOMATIC. AND ANOTHER FACTOR, A LOT OF IT IS TIED TO THE CRUDE OIL, IT MAKES THE BIGGEST PORTION OF THE FUND. AND THE CRUDE-OIL MARKET HAS BEEN CRASHING LIKE THERE IS NO TOMORROW. SO IF THE CRUDE OIL MARKET IS GOING TO GO DOWN, THEY HAVE TO SELL POSITIONS. QUESTION TO BOTH OF YOU GUYS, IS THIS A TREND THAT WILL CONTINUE AT THIS POINT AND TIME IF YOU GAVE THREE EXAMPLES OF THIS HAPPENING ALREADY THIS YEAR. THE FIRST TIME THE MARKET BROKE $1.03. IF WE DO IT THIS YEAR, THAT TAKES US TO $6.70. WE GOT TO $6.90 TODAY. ONCE THE BREAKS, WHEN THEY OCCURRED IN THE PAST, IT TOOK THREE WEEKS TO GO BACK AND MAKE NEW HIGHS. RICHARD, DO YOU THINK IT IS A TREND? I THINK SO, I DON'T THINK THERE WITH BE ANYTHING TO REGULATE THE FUNDS. I THINK THEY ARE HERE TO STAY FOR QUITE SOME TIME. THE FUNDS HAVE ADDED A LOT OF VOLATILITY. WE WERE TALKING ABOUT THAT WHEN WE WENT ON THE AIR. ONE THING THAT DRIVES US CRAZY IS NIGHTTIME TRADING. PEOPLE CAN TRADE AROUND THE WORLD NOW, BASICALLY 24/7. AND LIQUIDATED IN THE FRACTION OF A SECOND BECAUSE IT WAS ON A COMPUTER. IT DIDN'T USED TO DO THAT. NOW, IS THE EXCEPTION, RATHER THAN THE RULE. THAT IS CORRECT. WHEN WE COME BACK, I WANT TP TALK ABOUT ONE THING. THE PRICES WENT WAY DOWN AND A LOT OF FARMERS ARE EXCITED. ROUNDTABLE AGAIN AND MIKE, YOU'RE A SPECTATOR, HOW DO YOU FEEL WHEN YOU LOOK AT THE MARKET AND SEE IT GO DOWN. IT DEPENDS ON WHAT SIDE YOU'RE ON. THIS IS TOUGH TO DO. YOU KNOW --IT IS TOUGH TO CONTROL RISKS. SO, I WANT TO BUY A TIME WINDOW AND HOLD IT. WE CAN DO THAT BETTER WITH OPTIONS. IT IS REALLY HARD WHEN YOU SEE THE MARKETS DRIVE DOWN FOR NO APPARENT REASON. IF I WAS A PRODUCER I WOULD BE A LITTLE BIT UPSET ABOUT IT. RICHARD YOU WORK WITH PRODUCERS ALL OF THE TIME. THIS HAD TO AFFECT PRODUCERS, AND THEY WERE NOT GOING TO SELL UNTIL THE CORN WAS HIGHER. HOW ARE THEY FEELING RIGHT NOW? IT IS A DOUBLE-EDGED SWORD. PRODUCERS ARE CONCERNED ABOUT PRICE, OR HAVING A CROP. YOU TAKE THE TWO THINGS TOGETHER AND A LOT OF PEOPLE ARE VERY EMOTIONAL AND YET YOU GO TO THE WESTERN CORN BELT AND AREAS OF IOWA AND NEBRASKA AND I THINK THIS IS GREAT, BECAUSE THEY HAVE A BIG CROP COMING ON AND BIG PRICES HERE. I THINK IT WILL BE HARD TO CONTROL EMOTIONS GOING FORWARD HERE FOR THE NEXT THREE OR FOUR MONTHS, THIS VOLATILITY IS NOT GOING TO LEAVE. WE'RE GOING TO HAVE TREMENDOUS VOLATILITY IN THE MARKET. I'M A LITTLE BIT IN MIKE'S CAMP. I DON'T THINK THE MARKET GOING TO BREAK UNTIL MID JULY. THIS COULD TURNAROUND QUICKLY IF WE GET THE RIGHT WEATHER. AT THAT POINT AND TIME, I WOULD BE CAREFUL ONCE WE ARE PAST THE 4th OF JULY WEEKEND, LET'S REMEMBER, ALL MAJOR BULL MARKETS HAVE TURNED INTO BEAR MARKETS. THIS ONE IS NOT GOING TO BE DIFFERENT. IT IS NOT A QUESTION OF WHAT WILL HAPPEN, BUT WHEN IT WILL HAPPEN. HOW ABOUT THE LIVESTOCK PRODUCERS. THEY ARE HAVING TROUBLE TO MEET THEIR FEED NEEDS AT THE HIGH PRICE AND STAY IN BUSINESS. IT IS A HORRIBLE SITUATION RIGHT NOW. HOG AND COW PRODUCERS AND POULTRY. A LOT OF THEM HAVE GONE TO WHEAT. AS A FEED? AS A FEED. SO, THEY ARE NOT MAKING MONEY. THE POULTRY GUYS ARE GETTING SQUEEZED RIGHT NOW. PORK, SOME ARE MAKING MONEY AND SOME ARE LOSING MONEY, BUT MANY ARE CONCERNED ABOUT JUST GETTING CORN, IF THEY DON'T HAVE IT BOOKED. TALK TO PRODUCERS, PORK PRODUCER YESTERDAY, THEY ARE BACKED THROUGH AUGUST. THEY SAID I DON'T KNOW WHERE I'M GOING TO GET THE CORN AFTER ALL. WE BELIEVE THERE WILL BE PLANS IN OHIO THAT WILL HAVE TO SHUTDOWN ONCE WE GET INTO AUGUST, BECAUSE THERE WILL NOT BE THE AVAILABLE CORN TO RUN THE PLANT. IT IS CHEAPER. THE THING THAT IS CONCERNING TO ME, MIKE. THE JULY GAINS. THAT SPREAD IS VOLATILE. IT CHANGES ON A DIME, TOO. IT IS NOT A BULLISH INDICATOR RIGHT NOW. THE OTHER SIDE OF THAT, IS THAT THERE IS SO MUCH FUNDAMENTALS NOW THAT SHIFTED TO THE NEW CROP. MADE THE BULL SPREAD WORSE. A LOT OF COMPANIES HAD THEIR CASH COVERED THROUGH THE END OF THE SUMMER AND THEN START TO BUY THE DECEMBER BOARD. THERE IS A TIME TO START MARKETING NEXT YEAR'S CROP. I'M NOT TALKING ABOUT THE ONE THAT WE'RE PLANNING RIGHT NOW, BUT 2013. WE HAVE NOT STARTED YET, BUT WE ARE VERY CLOSE. DECEMBER 2013 CORN IS AT $6 AND NOVEMBER BEANS ARE AT $13.45. A YEAR AGO EVERY FARMER WATCHING THIS SHOW WOULD HAVE GIVEN THEIR RIGHT ARM FOR THE PRICES. NOW, WE ARE SITTING THERE THINKING I DON'T KNOW IF WE WANT TO DO THIS OR NOT. $6 CORN IS THE LOWEST PRICES THAT YOU GET IT IS A PRETTY GOOD YEAR, BUT STILL, WITH THAT --IN MIKE'S CAMP, I THINK THAT WE'RE A LITTLE BIT EARLY HERE ON THAT. I WOULD NOT DO ANYTHING. WE HAVE HIGHER PRICES COMING. ALL RIGHT. GENTLEMEN, THANK YOU BOTH FOR BEING HERE TODAY. WE'LL BE RIGHT BACK.

JOHN’S WORLD: FARMERS ARE SIFTING THROUGH THE RESULTS OF THIS WEEKS POLITICAL ACTION AND DOUBTLESS SCRATCHING THEIR HEADS. ON ONE HAND, THE SENATE RESOUNDING VOTED DOWN ETHANOL SUBSIDIES, BUT NARROWLY FAILED TO STOP OTHER PERKS TO THE BIOFUEL INDUSTRY. ACROSS THE ROTUNDA, HOUSE COMMITTEES PREVENTED CUTS IN A BIZARRE BRAZILIAN COTTON PAYOFF AND ALSO CUT FOOD STAMPS TO PRESERVE FARM PAYMENTS. THE TEA LEAVES ARE PRETTY MUDDLED HERE, BUT I THINK THE SENATE VOTE HAS TO BE THE LARGER DEVELOPMENT. FIRST, IT WAS THE WHOLE SENATE, NOT AN AG-FRIENDLY COMMITTEE VOTE. SECOND, IT WAS THE SENATE - THE STALWART LINE OF DEFENSE FOR FARM SUBSIDIES, WHERE ACRES COUNT MORE THAN PEOPLE. FINALLY, THE ETHANOL VOTE HAD MAJOR IMPLICATIONS FOR REPUBLICAN LAWMAKERS WHO HAVE BEEN UNDER IMMENSE PRESSURE FROM ANTI-TAX LOBBYIST GROVER NORQUIST. HIS SHOWDOWN WITH SENATOR TOM COBURN TURNED OUT TO BE A SURPRISING ROUT FOR THE SENATOR, WHICH MAY SIGNAL A POSSIBILITY FOR A BREAKTHROUGH IN THE MUCH MORE IMPORTANT DEFICIT - BORROWING LIMIT TALKS. EVEN THOUGH FARMERS HAVE BEEN TOLD OUR SHARE OF THE BUDGET WOULD BE CUT AND WE HAVE NODDED OUR HEADS, UNTIL AN ACTUAL VOTE GOES AGAINST THE FARM LOBBY, MOST OF US REALLY, REALLY DIDN'T THINK IT WOULD EVER HAPPEN. AGRIBUSINESS ALMOST NEVER LOSES. WHAT IS UNIQUE ABOUT THIS ATTITUDE OF DISBELIEF IS IT IS FOUND EQUALLY IN THOSE WHO SUPPORT THE STATUS QUO AND THOSE WHO OPPOSE IT. AT LEAST WE HAVE FINALLY FOUND SOME COMMON GROUND.

2ND HALF:
JOHN’S OPEN: HELLO AND WELCOME TO U.S. FARM REPORT, I'M JOHN PHIPPS. OF ALL THE MEMORIES OF THIS SPRING I THINK THE ONE THAT WILL LINGER THE LONGEST FOR ME IS NOT THE PLANTING PROBLEMS OR SURPRISING PRICES, BUT A PARTICULARLY NASTY NEW INSECT PEST FOR OUR PART OF THE COUNTRY - THE BUFFALO GNAT. WHEN THEY FIRST SHOWED UP IN MAY, PEOPLE ASSURED ME ONLY A FEW OF US REACT STRONGLY TO THEIR BITES. I'M REALLY HAPPY FOR THE REST OF YOU. THEN THEY TOLD ME THEY WOULD BE GONE IN TWO WEEKS - BUT THAT TURNED OUT TO BE THE SAME EXPRESSION CONTRACTORS USE WHEN YOU ASK WHEN YOU’RE REMODELING WILL BE DONE. THEN I WAS TOLD TO USE VANILLA EXTRACT AS A REPELLANT SINCE DEET DOESN'T WORK.
NOW ALL I CAN THINK ABOUT IS ICE CREAM. LET'S GET STARTED WITH THE HEADLINES AND AL PELL

ETHANOL VOTE: THANKS JOHN. THE ETHANOL DEBATE TAKES CENTER STAGE IN WASHINGTON THIS WEEK AS THE SENATE VOTES TO REPEAL TAX CREDITS FOR PRODUCING ETHANOL. BY A 73-27 VOTE, THE SENATE OKAYED A MEASURE THAT WOULD REPEAL THE FIVE BILLION ANNUAL SUBSIDY. THE VOTE CAME JUST TWO DAYS AFTER AN IDENTICAL MEASURE WAS REJECTED. THE TAX CREDIT PROVIDES 45 CENTS A GALLON TO OIL REFINERS WHO MIX ETHANOL WITH GASOLINE. ETHANOL OPPONENTS SAY THE INDUSTRY DOESN'T NEED GOVERNMENT INCENTIVES TO SURVIVE. ANOTHER BILL WOULD PHASE-OUT THE BLENDERS CREDIT OVER THREE YEARS. THE MONEY WOULD GO TOWARDS BUYING MORE ALTERNATIVE FUEL PUMPS THAT CAN DISPENSE HIGHER GRADES OF ETHANOL. IN DECEMBER, CONGRESS VOTED TO EXTEND THE BLENDERS CREDIT FOR ANOTHER YEAR. WITHOUT LEGISLATIVE ACTION, IT EXPIRES ON DECEMBER 31ST.

DEAD ZONE: EXTREME FLOODING THIS SPRING ALONG THE MISSISSIPPI AND MISSOURI RIVERS MAY INCREASE THE "HYPOXIC ZONE" IN THE GULF OF MEXICO. THAT'S THE FORECAST FROM THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION - OR NOAA. THE HYPOXIC ZONE IS AN AREA THAT CONTAINS TOO LITTLE OXYGEN TO SUPPORT MARINE LIFE NEAR THE SEA FLOOR. IN THIS CASE, IT'S LOCATED OFF THE COAST OF LOUISIANA AND TEXAS. SCIENTISTS SAY THE SO-CALLED "DEAD ZONE" IS CAUSED BY NUTRIENT RUN-OFF. THEY SAY THIS YEARS FLOODS WILL INCREASE THE AMOUNT OF NUTRIENTS INTO THE GULF. "NOAA" SCIENTISTS PREDICT THE AREA COULD MEASURE UP TO 9,400 SQUARE MILES.

DIRTY DOZEN: A PRO-ORGANIC WATCH-DOG GROUP HAS RELEASED ITS ANNUAL LIST OF FRUITS AND VEGETABLES TREATED WITH PESTICIDES. THE ENVIRONMENTAL WORKING GROUP CALLS IT THEIR "DIRTY DOZEN".
TOPPING THEIR LIST THIS YEAR - APPLES...FOLLOWED BY CELERY AND STRAWBERRIES. EWG SAYS THE ANALYSIS IS BASED ON DATA PROVIDED BY USDA. THE GROUP SAYS PESTICIDES WERE PRESENT IN 98-PERCENT OF ALL THE APPLES SAMPLED. THE U.S. APPLE ASSOCIATION CRITICIZED THE GROUP, CALLING THEIR RESULTS "MIS-LEADING". IT SAYS OVERALL PESTICIDE RESIDUALS ARE BELOW THE SAFETY LEVELS SET BY EPA.

PEANUT ALLERGIES: A FLORIDA RESEARCHER IS ABLE TO SHED SOME MUCH NEEDED "LIGHT" ON PEANUT ALLERGIES. A UNIVERSITY OF FLORIDA RESEARCHER SAYS HE HAS DEVELOPED A NEW WAY TO STOP THE PROBLEM. THE PROFESSOR USED PULSED ULTRAVIOLET LIGHT TO REDUCE THE ALLERGEN IN PEANUTS. THE BURST OF LIGHT CHANGES PEANUT ALLERGENS SO THAT HUMAN ANTI-BODIES CANNOT RECOGNIZE THEM. THE RESEARCHER THINKS HE CAN CONTROL THE ALLERGEN EVEN BEFORE THE PEANUT PRODUCT GOES TO THE SHELF. AN ESTIMATED THREE MILLION AMERICANS ARE ALLERGIC TO PEANUTS AND TREE NUTS. REACTIONS CAN RANGE FROM SKIN RASHES TO DEATH.

LOUISIANA WILDLIFE: WHEN THE MISSISSIPPI RIVER BROKE ITS BANKS IN LOUISIANA LAST MONTH, HOMES AND FARMSTEADS WERE DESTROYED - ALONG WITH WILDLIFE HABITATS. IN THIS REPORT FROM THE LOUISIANA FARM BUREAU, AVERY DAVIDSON SHOWS US HOW FARMERS ARE HAVING TO DEAL WITH HUNGRY WILDLIFE IN SEARCH OF HIGHER - AND DRYER - GROUND. LOUISIANA PLAYS A MAJOR ROLE IN U.S. AGRICULTURE. IN ALL, MORE THAN 40% OF ALL GRAIN EXPORTS MOVE THROUGH THE STATE.

BAXTER BLACK: WHEN WE COME BACK, A BATTLE TO BE THE BEST IN BAXTER BLACK'S NEIGHBORHOOD...IT'S STORY TIME NOW WITH BAXTER BLACK. THIS WEEKEND, HE TELLS US ABOUT A NEIGHBOR WHO IS ALWAYS ONE STEP AHEAD...ALWAYS...UP NEXT - BOTH TRACTOR TALES AND OUR COUNTRY CHURCH SALUTE HAIL FROM THE WOLVERINE STATE.- WE'LL BE RIGHT BACK...

TRACTOR TALES: AL JOINS US NOW WITH TRACTOR TALES...JOHN, THIS WEEK WE CHECK OUT A 1949 ALLIS-CHALMERS "B" FROM CENTRAL MICHIGAN. BEGINNING IN 1938, THIS TRACTOR WAS IN PRODUCTION FOR NEARLY 20 YEARS WITH MORE THAN 120,000 COMING OFF THE ASSEMBLY LINE. NEXT WEEK WE GO GREEN. BELIEVE IT OR NOT, THIS 1939 JOHN DEERE "H" HAS NO STARTER, NO HYDRAULICS AND NO PTO. THE PROUD OWNER FROM INDIANA SHOWS IT OFF NEXT WEEK ON "TRACTOR TALES".

CHURCH SALUTE: TODAY'S COUNTRY CHURCH SALUTE TAKES US TO MORENCI, MICHIGAN - HOME TO THE MORENCI UNITED METHODIST CHURCH. NEXT WEEKEND THE CONGREGATION WILL CELEBRATE ITS 175TH ANNIVERSARY WITH SPECIAL SERVICES AND HISTORICAL DISPLAYS. THE CHURCH BEGAN IN 1836 AS THE "BEAN CREEK MISSION" - THE FIRST SERVICES WERE HELD IN A LOG SCHOOLHOUSE JUST NORTH OF TOWN. THE LOT WHERE THE CHURCH STANDS TODAY WAS PURCHASED IN 1851. AFTER SURVIVING TWO FIRES AND NUMEROUS UPDATES, THE ORIGINAL WOOD STRUCTURE WAS REPLACED BY THE CURRENT BUILDING IN 1914. IT'S WORTH NOTING A STEEPLE BELL PURCHASED IN THE 1850'S IS STILL USED TODAY TO CALL WORSHIPERS TO SERVICE. OUR THANKS TO CAROL VAN-HAVEL FOR THE INFORMATION - AND OUR CONGRATULATIONS TO THE MORENCI UNITED METHODIST CHURCH.
AS ALWAYS WE WANT TO LEARN ABOUT YOUR HOME CHURCH AS WELL... SALUTES CAN BE SENT TO THE ADDRESS ON THE SCREEN. STAY WITH US – THE MAILBAG IS NEXT.

MAILBAG: TIME NOW FOR OUR WEEKLY LOOK INSIDE THE FARM REPORT MAILBAG....LES ODGERS FROM ARIZONA COMMENTED ON MY REMARKS ABOUT FLOOD CONTROL BY SUGGESTING INSTEAD OF MASSIVE LEVEES ALONG THE RIVERS, WE SHOULD PROTECT FARMS AND HOMES AND ALLOW FLOODS TO SPREAD OUT OVER A WIDER AREA. “ ANOTHER BENEFIT OF THIS WIDER SHALLOWER SYSTEM IS WE NOW GET VALUABLE FERTILE SEDIMENT DEPOSITED ON THE FARM GROUND WHERE IT CAN BE FARMED AGAIN VS. DUMPED IN THE GULF OF MEXICO TO CHOKE OFF THE COASTAL AREAS WITH ALGAE." LES, I AGREE, BUT I FARM MILES FROM ANY RIVER SO ITS AN EASY CALL FOR ME. ONCE FLOODPLAINS ARE RECLAIMED WITH LEVEES A POWERFUL SELF-INTEREST SITUATION IS CREATED FOR THOSE WHO WORK THAT GROUND. UNFORTUNATELY, THESE CONSEQUENCES HAVE BEEN CARRIED TO EXTREMES OVER THE DECADES BY VIEWING MASSIVE LEVEES AS AN EXAMPLE OF OUR ABILITY TO CONTROL NATURAL PROCESSES. THIS IDEA HAS WORKED WELL UNTIL RECENTLY. BUT I THINK TWO THINGS HAVE CHANGED, AND NEITHER OF THEM ARE PARTICULARLY POLITICAL. FIRST, THE WARMER ATMOSPHERE SUGGESTS WE WILL CONTINUE TO HAVE LARGER AND MORE FREQUENT DOWNPOURS, WHICH MEANS MORE LARGE RUNOFF EVENTS AND FLOOD OPPORTUNITIES. GIVEN THE REMARKABLE RAIN TOTALS WE HAVE SEEN IN THE LAST FEW YEARS, THESE EVENTS COULD CONTINUE TO SET RECORDS. AT THE SAME TIME GOVERNMENT BUDGETS WILL NOT SUPPORT MASSIVE NEW INVESTMENTS TO REPAIR OR IMPROVE LEVEES. WE NEED A NEW COST-EFFECTIVE STRATEGY TO MANAGE FLOODPLAINS. AS ALWAYS, WE WANT TO HEAR FROM YOU, SEND COMMENTS TO MAILBAG@USFARMREPORT.COM OR LEAVE US A VOICE MAIL AT 800-792-4329.

 

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