USFR Weekly Recap - June 4-5, 2011

June 6, 2011 08:09 AM
 

THIS WEEK ON U.S. FARM REPORT
EPISODE #1973
JUNE 4-5, 2011

TODAY ON U.S. FARM REPORT, A DIFFERENT ATMOSPHERE LOOMS OVER THE OPENING ROUNDS OF TALKS FOR THEFECTION FARM BILL. AND IF YOU DON'T COUNT OHIO AND MICHIGAN AND INDIANA, CROP PLANNING IS CATCHING UP. AND YOUR MARKET EXPERTS TALK ABOUT NEW CONTRACT HIGHS.

U.S. FARM REPORT BROUGHT TO YOU BY CHEVY AND THEIR AWARD- WINNING CARS, TRUCKS, AND CROSSOVERS. HELLO AND WELCOME TO U.S. FARM REPORT. I'M JOHN PHIPPS. MORE THAN A FEW FRUSTRATED FARMERS ARE LOOKING FOR THAT LAST ROW TO BE PLANTED. AND FOR OF US ARE SURVEYING FIELDS WITH SUBDUED ENTHUSIASM. FARMERS ARE UNSETTLED ABOUT CROPS THIS YEAR. THIS IS WHAT IT LOOKS LIKE WHEN SUPPLY AND DEMAND STRUGGLE TO MEET. AS THIS SUMMER PROPRESSES, WE'RE GOING TO LEARN ABOUT HOW OUR AG SECTOR WORKS WITH A SMALL MARGIN FOR ERROR. FOR MY PART, I THINK IT'S TIME TO PUT MY SON IN CHARGE OF MARKETING. TIME FOR THE HEADLINES. HERE'S AL PELL.

THE SENATE AG COMMITTEE CONDUCTED ITS FIRST FIELD HEARING THIS WEEK AND TO NO ONE'S SURPRISE, THE BUDGET DEFICIT IS AT THE CORE OF EVERY CONVERSATION. TUESDAY'S HEARING WAS HEADED BY COMMITTEE CHAIR DEBBIE --AND RANKING REPUBLIC PAT ROBERTS. IT'S A JOBS BY. FOR HIS PART, ROBERTS SAYS MAINTAINING A TOP PROGRAM IS CRITICAL. AT A PREVIOUS HEARING IN WASHINGTON, TOM VILLE SACK SAID THEY'RE WILLING TO ACCEPT BUDGET CUTS, BUT THEY CAN ONLY GO SO DEEP.

I HOPE THAT THIS COMMITTEE WILL GIVE SERIOUS THOUGHT TO YOUR PRIORITIES FOR USDA AND TO THE VALUES OF AMERICAN PEEL. WE AT USDA ARE PREPARED TO DO AS MUCH AS WE CAN WITH FEWER RESOURCES, BUT THERE'S NO DOUBT THAT CUTS WILL HAVE AN IMPACT ON AMERICAN AGRICULTURE AND ON PEOPLE. THERE WILL BE PAIN AND EVERYONE WILL HAVE TO SACRIFICE SOMETHING.

THE SECRETARY ALSO SAID USDA IS SHOULDERED A MUCH BIGGER PORTION OF CUTS COMPARED TO OTHER FEDERAL AGENT SIS. MEANWHILE THE --2012 FISCAL YEAR. ONE OF THE MAJOR AMENDMENTS WILL PROHIBIT FUNDS FOR CERTAIN APPLICANTS. THEY WILL NEED TO MAY MAKE LESS THAN $250,000 TO BE ELIGIBLE FOR PAYMENTS. UNDER CURRENT LEGISLATION, PEOPLE WITH 500,000 AND SOURCES ARE ARE 750,000 IN UNFARMED ADJUSTED GROSS INCOME ARE NOT ELIGIBLE. IN THE FIELDS, PLANTING REMAINS A SLOW GO IN SOME PARTS OF THE CORN BELL. SOME PART OF THE CROP HAD BEEN PLANTED. THAT'S NINE POINTS BEHIND AVERAGE. PARTS OF THE EASTERN CORN BELT HAVE SEEN IMPROVEMENT, THE CORN IS USUALLY AT 93% PLANTED BY NOW. THOSE ARE THE HEADLINES. NOW BACK TO JOHN FOR CROP WATCH.

CROP WATCH THIS WEEK BEGINS IN THE RAIN SOAKED NORTHERN PLAINS. TAKE A LOOK AT THIS PICTURE OF A MACHINERY DEALERSHIP IN NORTH DAKOTA. GROWERS IN THAT REGION SAY THE FIELDS THAT WERE SEEDED ARE WASHING OUT AFTER ANOTHER WEEK OF DOWNPOURS. IN OHIO, IT APPEARS THAT FISH ARE THE CROP IN SOME FIELDS. PLANS IS WAY BEHIND IN THE BUCKEYE STATE DUE TO ONE HEAVY RAIN AFTER THE OTHER. ON THE OTHER END OF THE SPECTRUM, TEXAS. ACCORDING TO U.S. DROUGHT MONITOR, SOME PARTS OF THE STATE, SPECIFICALLY THE PANHANDLE ARE BEING HIT BY AN EXCEPTIONAL DROUGHT. FOR MANY RANCHERS, WATER SOURCES ARE SIMPLY DRYING UP. WHEN WE COME BACK, AL RETURNS TO TALK MARKETS. THAT DISCUSSION BEGINS IN JUST TWO MINUTES. PLEASE STAY WITH US. GENTLEMEN, I'M GOING TO ASK YOU A QUESTION AND I WOULD LIKE YOUR FIRST ANSWER. WHAT DO YOU THINK IS THE MOST CRITICAL ISSUE IN MARKETING YOUR CROPS THIS YEAR. ONE WORD ANSWER?

FINANCIAL SITUATION OF OUR COUNTRY AND THE WORLD.

OKAY. AND I'M GOING TO ASK YOU THE SAME THING. WE HAVE TO THINK OF SOMETHING AND THEN WE'RE GOING TO TALK ABOUT THAT. WHAT'S YOUR MOST CRITICAL ISSUE, YOUNG?

FLEXIBILITY.

FLEXIBILITY. LET'S TALK ABOUT FLEXIBILITY FIRST BECAUSE THE FINANCIAL SITUATION IN THE WORLD SEEMS TO BE LIKE THAT WOULD BE A PRETTY BIG THING TO SOLVE, BUT BE THINKING ABOUT THINGS TO OFFER. WHAT DO YOU THINK ABOUT FLEXIBILITY.

THE NEXT 90 DAYS ARE CRITICAL TO WHAT'S GOING TO HAPPEN IN THESE MARKETS FOR YEARS TO COME. IF A PRODUCER IS FORTUNATE ENOUGH TO HAVE THE CROP IN THE GROUND AND GROWING AT THIS POINT, WITH DECEMBER FUTURES MAKING A NEW CONTRACT HIGH THIS WEEK, UNPRECEDENTED OPPORTUNITY, A LOT OF PRODUCERS HAVE CROP INSURANCE, FLEXIBILITY IS THE KEY FOR NOW IN TERMS OF MARKETING THE CROP. YOU WANT TO MAINTAIN THE FLOOR BUT KEEP JUST AS MUCH --AS POSSIBLE. NOT SAYING FOR SURE IT WILL, BUT IF IT WANTS TO MOVE HIGHER, YOU WANT THAT FLEXIBILITY TO PARTICIPATE IN THE UPSIDE.

THAT'S THE SAME MESSAGE WE'VE SHARED WITH OUR CUSTOMERS. USE THESE --TO MAKE SOME QUALITY CASH SALES HERE. THERE'S MASSIVE PROFIT RIGHT HERE, GET THE SALES MADE. BECAUSE IT'S SO VOLATILE, WE DON'T KNOW WHERE THE MARKET IS GOING GOING TO GO. THERE'S ENOUGH VOLATILITY, IT COULD GO SKY HIGH. IF YOU --CORN, DON'T RELIEVE 2010. MAKE SOME $7 SALES, HAVE SOME CALL STRATEGIST ON TO GIVE YOU POTENTIAL OF SEEING THE UPSIDE AND I THINK THAT'S NOT SOLD, PUT A STRATEGY ON IT AND GO TO BED AT NIGHT WITH GOOD MONEY IN YOUR POCKET.

AS WE CLOSED THE WEEK LAST WEEK, WE LOOKED LIKE WE WERE ON ANOTHER BULL MARKET. THERE WERE A LOT OF GUYS IN A BULL MARKET SAY I'M GOING TO WAIT BECAUSE THAT MARKET IS GOING GO UP AND THEN TAKE ADVANTAGE OF IT. YOUR COMMENTS ON THAT? IS THAT NOT BEING FLEXIBLE?

I KNOW WHAT YOURS IS GOING TO BE.

THERE'S NO QUESTION. ANY SALES UP TO THIS POINT HAVE BEEN AT LOWER LEVELS, BUT HAVING SAID THAT, THERE WILL COME A TIME --IT'S NOT IF, THERE WILL COME A TIME WHEN THE MARKET IS GOING TO PEAK. NO ONE NOSE WHEN THAT'S GOING TO HAPPEN. THE BEST WE CAN DO IS MANAGE THIS PRICE OF VOLATILITY. SEVERAL WAYS TO DO. THAT WE LIKE TO USE OPTIONS WITH SALES AND OPTIONS ATTACHED TO THAT'RE PUT OPTION GIVES YOU THE CASH FLOOR. IRREGARDLESS, THE FACT IS THE MARKET WILL PEAK AT SOME POINT. IT'S IMPOSSIBLE TO SAY WHERE. YOU WANT TO BE PREPARED WHEN IT DOES.

YOU'RE STARTING TO SMILE WHEN I ASK THAT QUESTION. WHAT ARE YOU THINKING ABOUT, MIKE?

THE THING IS --AND BRIAN POINTED IT OUT WELL --THIS MARKET WILL PEAK. IT ALWAYS COMES ON THE DAY THAT EVERYONE LEAST EXPECTS AND FOR REASONS NOBODY CAN REALLY, TRULY BELIEVE IN. I MADE THE COMMENT EARLIER ABOUT FINANCIAL CONCERNS. THE BOTTOM LINE HERE IS IF YOU LOOK AT 2008, WHICH EVERYONE LOVES TO PARALLEL THIS YEAR TO. 2008'S PEAK CAME FROM INFORMATION THAT HAD NOTHING TO DO WITH CORN. IT WAS FINANCIAL IN ITS CONCERN. THIS YEAR IS LINING UP THE SAME WAY IN THAT REGARD. WE HAVE PLENTY OF THINGS OUT THERE THAT COME RIGHT INTO THIS MARKET AND BLOW IT UP.

TODAY, JUST THIS MORNING WE RELEASED INFORMATION THAT THE GOVERNMENT NOW HAS SAID WE'VE GOT 9.1% UNEMPLOYMENT. LOOKS LIKE MAYBE WE'LL HAVE MORE RATHER THAN LESS UNEMPLOYMENT. THAT GOING TO BOTHER AGRICULTURE MARKETS?

IT ALREADY HAS. LOOK AT THE HOG MARKET. SAME THING. IT'S THOSE MARKETS THAT DICTATE WHAT THEIR CAPACITY IS TO PAY FOR CORN. LET'S NOT FORGET THAT THE LIVESTOCK INDUSTRY IS STILL, AS WE GO THROUGH THE BALANCE SHEET, OUR NO. 1 OR NO. 2 CUSTOMER, DEPENDING ON HOW THE NUMBERS FINALIZE THEMSELVES AT THE END OF THE YEAR, THE BOTTOM LINE IS IF THEY HAVE BAD TIMES, THEY WILL NOT BE IN A GROWTH PHASE, SEEK MORE FEED.

MORE FEED MEANS CORN OR BEANS OR WHATEVER THEY'RE FEEDING. DO YOU THINK IT'S GOING TO HAPPEN BEFORE WE GET THROUGH THIS UNKNOWN SHEET THAT WE HAVE OUT THERE CALLED WEATHER IN THIS U.S..

IT'S A GREAT QUESTION BECAUSE YOU HAVE A WINDOW OF EXTREME VOLATILITY HERE WHERE THE MARKET IS LOOKING FOR EXTRAORDINARY TIGHT STOCKS, RECORD LOW BASE LEVELS. NOW WE'RE LOOKING AT THE POSSIBILITY OF SIGNIFICANT LOSSES IN THE INDUSTRY WHICH WILL CURTAIL FEEDING. SO THOSE THINGS GO DIFFERENT DIRECTIONS.

LET'S TALK ABOUT USERS WHEN WE COME BACK WITH U.S. FARM REPORT IN JUST A MOMENT. ROUND TABLE GUEST THIS IS WEEK, WHEN WE LEFT THIS LAST --FEELS LIKE A HALF HOUR SOMETIMES. WE LEFT OUR INTERVIEW AND WE WERE TALKING ABOUT WHAT'S GOING TO HAPPEN. IT'S DIRECTLY RELATED TO SUPPLY AND DEMAND. RIGHT NOW THE DEMAND IS REALLY DEMANDING THE PRODUCT, BUT HOW HIGH CAN A PRICE GET BEFORE THAT STOPS?

WELL, I THINK WE'VE ALREADY STARTED TO SEE IT TO SOME DEGREE. IF YOU LOOK AT WHERE THE LIVESTOCK INDUSTRY IS, IF YOU'VE WATCHED THE EBBEN FLOW OF MARGINS, IF YOU'VE WATCHED OUR EXPORTS, WE'VE STARTED TO LEAN INTO THAT TOO HIGH TYPE OF CATEGORY.

WE'RE TALKING ABOUT CORN PRIMARILY.

ABSOLUTELY.

YOU WATCHED AS WE GOT TO 680 THE LAST TIME. THE EXPORT DRIFTED OFF TO NOTHING. THE FACT THAT WE REBOUNDED OUR EXPORTS HAD EVERYTHING TO DO WITH THE FACT WE CUT PRICE. THEY REBOUNDED, THE MARKETS HAVE COME BACK UP. THERE'S AN EBB AND FLOW HERE. WE'RE, IN MY OPINION, STARTING TO LEAN INTO TERRITORY WHERE WE'RE TOO HIGH.

WE NEED TO PLANT FOR ACRES, BUT WE HAVEN'T DONE THAT?

IT'S BEEN A STRUGGLE FOR THE EASTERN CORNER BELT.

MORE GRAIN TO SELL, MORE SUPPLY. PARTICULARLY WHAT WE PICKED UP THIS SPRING IS THAT OUR CUSTOMERS OUT WEST IN STATES LIKE IOWA, MINNESOTA, NEBRASKA, WESTERN AND NORTHERN ILLINOIS, WISCONSIN ADDED MORE ACRES THAN HEY ORIGINALLY PLANNED. THE WEATHER WAS FAVORABLE FOR THOSE PRODUCERS, AND THEY KEPT PLANTING CORN. TO SOME DEGREE WE FOUND OUT -- THAT MAY OFFSET SOME OF THE LOSSES THAT OCCURRED OR ARE OCCURRING IN THE EASTERN BELT AND PLAINS.

SOME OF THE PRIVATE ESTIMATORS, ONE OF THEM SAID MAYBE EVEN 5 MILLION-ACRES LESS THAN WHAT THE GOVERNMENT SAID WE WERE GOING TO PLANT. IF WE DO THAT AND WE HAVE ONE OR 1.5-BUSHELS LESS PER ACRE, THAT MEANS WE'RE GOING TO BE SHY ON CORN PARTICULARLY. WE MAY GET TO THAT POINT WHERE WE'RE GOING TO FORCE SOME OF THE CATTLE PRODUCER, FORCE SOME OF THE ETHANOL PRODUCERS IT OF BUSINESS. IS THAT WHAT YOU'RE SAYING?

WELL, YOU ALWAYS GET A RETRACTION FROM THE DEMAND SIDE. THAT'S THE MARKET THAT WE'RE STARTING TO SEE DEVELOP, THE GREEN MARKETS HAVE MOVED HIGH ENOUGH. WE CAN'T TELL WHERE THE PEAK IS GOING TO BE, BUT WE'VE MOVED HIGH ENOUGH WHERE THAT'S STARTING TO TAKE PLACE. YOU SEE PEOPLE COMING BACK FROM THE TABLE AND INSTEAD OF BUYING UP WHAT THEY CAN IN THE FUTURE, THEY'RE LIVING HAND AND MOUTH AND LIVING ON A WEEK TO WEEK BASIS, PRAY THAT THE MARKET COMES BACK. THIS ALL STARTED WHEN I SAID THE --WENT UP TO 9% AND WE'RE GOING TO HAVE LESS MONEY TO SPEND AT THE GROCERY STORE AND THAT'S GOING TO HURT THE FARMERS; RIGHT?

OKAY. HOW ABOUT THE WEATHER CONDITIONS? IS THAT GOING TO HURT THE FARMER?

YES OR NO ANSWER, BECAUSE WE DON'T KNOW WHAT THAT'S GOING TO BE.

FROM ALL SIDES, PRODUCERS WERE GOOD AT PRODUCING INSURANCE. SO BACK IN FEBRUARY, HEAVY INTEREST IN PURCHASING ROB INSURANCE, THAT'S BEEN A NICE STOP TO HAVE. WE THINK THE BEST PLAN, MANAGER THE PRODUCTION RISK AND THE PRICE RISK. MERGE THEM TOGETHER AND YOU HAVE A WIN FOR A MARKETING PLAN. THERE'S NO QUESTION THERE'S PRODUCTION RISK AHEAD OF US.

WE JUST RECEIVED NEW INFORMATION THAT THE GOVERNMENT NOW HAS EXTENDED THE DAYS OF REPORTING ON PREVENTATIVE PLANNING. THE OTHER SIDE OF IT IS IT SEEMS LIKE THEY'RE DOING EVERYTHING THEY CAN TO ENCOURAGE MORE ACRES TO BE PLANTED THIS YEAR. YOU'VE SAID THAT WAS POSITIVE; RIGHT?

YEAH, ANY EFFORTS THAT WE CAN MAKE WHEREVER TO ENCOURAGE GREENER PLANTING WILL BE A POSITIVE FOR ALL OF US DOWN THE ROAD. THE BOTTOM LINE IS WE DON'T WANT TO CREATE A BUBBLE MARKET. WE DON'T WANT TO SEE THIS GO UP TO WHATEVER NUMBER YOU WANT TO PROJECT. WE WANT SO TEE --IN THE END, IF PRICES GO TOO HIGH, IT WILL ONLY HURT THEM IN THE END. IT'S NOT A GOOD THING TO SEE. YOU DON'T WANT TO SEE THIS MARKET GET OUT OF CONTROL. ANYTHING WE CAN DO TO KEEP THE THINGS ROLLING IS A GOOD THING.

IN LESS THAN 30 SECONDS, CAN YOU GIVE ME ONE, TWO, THREE, WHAT A PRODUCER SHOULD KNOW AND BE DOING RIGHT NOW.

NO. HAVE AN UNDERSTANDING LENDER. HAVE A CLOSE WORKING RELATIONSHIP WITH YOUR LENDER. AT THAT POINT, I WOULD SAY IF YOU'RE FINANCIALLY ABLE, PUT EVERYTHING YOU CAN INTO THIS CORN CROP. WHATEVER IT IS. I THINK IT'S WORTH THE INVESTMENT.

THANK YOU VERY MUCH. WE'LL BE BACK WITH U.S. FARM REPORT IN JUST A MOMENT.

WEATHER ON U.S. FARM REPORT IS BROUGHT TO YOU BY NATIONWIDE AGRIBUSINESS. IT'S THE NO. 1 FARM INSURER IN THE U.S.

MIKE HOFFMAN JOINS US NOW. I FELT DRYER AIR AND SAW SOME SUNSHINE. ARE WE LOOKING AT MAYBE A PATTERN CHANGE HERE?

WE'VE SEEN IT CHANGE. WE STARTED TALKING ABOUT THIS WEEKS AGO. THERE'S NO QUESTION THE DRYER AIR IS WINNING OUT. WE DON'T WANT THIS TO EXTEND NORTHWARD. THIS IS GOOD NEWS. MOST OF THE COUNTRY IS GOING TO BE DRYING OUT AFTER A VERY WET SPRING. THE DROUGHT MONITOR SHOWS THAT'S NOT THE CASE IN MUCH OF TEXAS, GULF COAST REGION AND SOUTHWEST. YOU GUYS ARE SEEING TERRIBLE DROUGHT CONDITIONS. A HUGE PART OF NEW MEXICO, TEXAS, AND EVEN LOUISIANA ARE IN AN EXCEPTIONAL DROUGHT. THAT'S THE HIGHEST CATEGORY WE HAVE. WE HAVE TO WATCH THAT SITUATION CAREFULLY. I DON'T SEE AN END TO THAT UNLESS WE START GETTING TROPICAL SYSTEMS IN THIS AREA. SHOWERS AND THUNDERSTORMS AT BEST WHEN YOU HAVE A RIDGE ACROSS THE SOUTHERN PLAIN STATES INTO THE SOUTHEAST. AS WE HEAD THROUGH TIME, THE RIDGE BREAKS DOWN A LITTLE BIT. LITTLE RIPPLES THROUGH THAT PART OF IT. MOVES THROUGH THE NORTHERN INTERIOR STATES BY NEXT WEEKEND, BY THE RIDGE IS BASICALLY HOLDING. THAT'S THE PATTERN CHANGE WE'VE BEEN TALKING ABOUT. WHEN THE RIDGE POPS OUT THERE, IT PUTS EVERYBODY INTO A SOUTHERN TYPE MODE. ON MONDAY, WE WILL SEE AGAIN THESE ARE HIT AND MISS SHOWERS AND THUNDERSTORMS. DON'T GET YOUR HOPES UP TOO MUCH IF YOU NEED THE RAIN HERE. THEY WILL BE SCATTERED ALONG THE WARM FRONT AS WELL. THE MAJORITY OF THE MOISTURE IS GOING TO BE FURTHER TO THE NORTH. BY WEDNESDAY THAT FIRST SYSTEM IS ACTUALLY SCOOTING THROUGH THE STATES TO THE EAST COAST. YOU CAN SEE SOME LINGERING SHOWERS THERE. ANOTHER SYSTEM COMES IN AND REPLACES THE FIRST ONE TWO DAYS LATE WE ARE A FAIR AMOUNT OF RAIN ACROSS THE LOWER STATES AGAIN. UP IN THIS AREA IT'S A FAIRLY WET PATTERN, BUT THEN WHERE IT'S BEEN --MOST OF THE SPRING, REALLY NOT A WHOLE LOT COMING. THUNDERSTORMS ALONG THE GULF COAST. FRIDAY, THE NEXT SYSTEM MOVING THROUGH THE GREAT LAKES. HIT AND MISS THUNDERSTORMS ALONG THE COLD FRONT AND ANOTHER WEAK SYSTEM COMES FROM OUT WEST. WE'LL CHECK THE LONG RANGE FORECAST IN OUR NEXT HALF HOUR.

THE IDEA IS MISTAKENLY BASED ON THE ASSUMPTION THAT ALL USE OF FEDERAL DOLLARS ARE EQUALLY IMPORTANT AND NECESSARY. FOR DIRECT PAYMENTS FOR CROPS SEEING PRICES, THAT'S HARD TO JUSTIFY. BUT IT ALSO MEANS THE DISTRIBUTION OF FEDERAL DOLLARS IS THE SOLUTION. THIS IS ILLOGICAL. THE SECOND DEFENSE OF FARM SUBSIDIES. THEY ONLY CONSTITUTE A SMALL PORTION OF THE FEDERAL BUDGET. IF THAT EXECUTIONS $25 BILLIONS OF YEAR FROM SCRUTINY, THEN ALL PROGRAMS THAT SIZE AND SMALLER GET A PASS AS WELL. THIS TOO SMALL BATTER WOULD LEAVE OUT THE EPA, IRS, PUBLIC TELEVISION. GETTING FEDERAL DOLLARS NOW IS NO JUSTIFICATION FOR CONTINUING TO GET PUBLIC DOLLARS. BUDGET CUTS THOUSAND MADE ACCORDING TO COST CALCULATIONS. FOR GROWERS SEEING HISTORICALLY HIGH PRICES, THAT COULD PRESENT A PROBLEM. NEITHER MY DIRECT PAYMENT OR A LOAN LEVEL OF $2 IS KEEPING ME IN BUSINESS. LET US KNOW WHAT YOU THINK. SEND E-MAILS TO MAILBAG AT USFARMREPORT.COM OR CALL AND LEAVE US A VOICE MAIL. COMING UP IN OUR NEXT HALF HOUR, WE TAKE YOU TO WHERE CLASS WORK AND FARM WORK BOTH MATTER AT GRADUATION TIME. THE U.S. FARM REPORT IS COMING RIGHT UP.

TODAY ON U.S. FARM REPORT, THE NEW U.S. COUNTRY OF ORIGIN LABELS FACE A CHALLENGE. THE MYSTERIOUS HONEY BEE DECLINES ARE NOT SOLVED, BUT THE NEWS IS NOT ALL BAD. ONE COLLEGE PLACES EMPHASIS ON AG EDUCATION. U.S. FARM REPORT BROUGHT TO YOU BY CHEVY AND THEIR AWARD- WINNING CARS, TRUCKS, AND CROSSOVERS. HELLO AND WELCOME TO U.S. FARM REPORT. I'M JOHN PHIPPS. THE OBVIOUS LINK BETWEEN FARM AND FOOD SHOWS UP TODAY AS MANY ISSUES RIPPLE BACK DOWN TO THE FARM. THERE ARE SEVERAL WAYS TO LOOK AT THE INDUSTRY. PRODUCERS LIKE TO SAY IT DEPENDS ON THEM. MILLIONS OF JOBS DEPEND ON AGRICULTURE. THAT'S ONE WAY, BUT THE MORE I LOOK AT WEB INPUT AND PROCESSING THAT DELIVERS EDIBLES TO MY PLATE. THE MORE I SEE IT IN REVERSE. I'M RESPONSIBLE FOR TURNING MY OUT PUT INTO SOMETHING I WANT TO EAT. LET'S GET STARTED WITH THOSE HEADLINES NOW AND AL PELL.

THANK YOU, JOHN. A U.S. LABORING LAW HAS BECOME THE ISSUE OF A U.S. TRADE DISPUTE. THEY'VE PRELIMINARY ISSUED -- BETTER AT COL. IT REQUIRES TO SHOW WHERE FOOD COMES FROM. CANADA AND MEXICO FILED A COMPLAINT SAYING THE LABELING LAW IS ILLEGAL. THE WTO IS EXPECTED TO ISSUE THE FINAL RULING THIS FALL. IN GERMANY, HEALTH OFFICIALS ARE TRYING TO PIN DOWN THE SOURCE OF AN E KOA LIE OUT LEAK. AT THIS TIME, TOURISTS ARE BEING ADVISED NOT TO EAT LETTUCE OR CUE COUPLERS. NOW, BACK IN THE U.S. AN INVESTIGATION IS LAUNCHED. THIS WEEK THERE WERE 25 PEOPLE AFFECTED IN 11 STATES. NOW, THE COMMON LINK APPEARS TO BE BABY CHICKS AND DUCKLINGS THAT WERE SENT THROUGH THE MAIL. THE CENTERS FOR DISEASE CONTROL SAID THEIR INVESTIGATION LED THEM TO A HATCHERY THAT HAS YET TO BE PUBLICLY IDENTIFIED. THE ILLNESSES WERE FIRST REPORTED IN LATE FEBRUARY. OF THOSE WHO GOT SICK, ABOUT HALF OF THOSE WERE HOSPITALIZED.

NEW GUIDELINES ARE IN PLACE FOR COOKING PORK. USDA SAYS CUTS CAN BE CONSUMED SAFELY WHEN COOKED TO AN INTERNAL TEMPERATURE OF 140 DEGREES, THE AGENCY ALSO SAYS YOU NEED TO LET THE PORK REST FOR THREE MINUTES AFTER PULLING IT FROM THE GRILL OR STOVE. LIKE ALL GROUND MEAT, GROUND PORK SHOULD BE COOKED TO 160 DEGREES. EACH WINTER YOU AND USDA AND BEEKEEPERS MANAGE THE NUMBER OF BEES THAT DIED THROUGHOUT THE SEASON. 30% LOSSES FROM VARIOUS CAUSES, INCLUDING COLONY COLLAPSE DISORDER. THE GOOD NEWS IS THESE LOSSES ARE COMPARABLE TO THE ONES SEEN OVER THE PREVIOUS YEARS, SO THE PROBLEM DOES NOT SEEM TO BE GETTING WORSE.

THAT'S IT FOR HEADLINES. TIME FOR THE NATIONAL FORECAST WITH METEOROLOGIST MIKE HOFFMAN. THERE'S NO QUESTION, A HUGE CHANGE IN THE PATTERN ACROSS THE LOWER 48 HAS OCCURRED. THAT MEANS A HUGE RIDGE ACROSS THE PLAIN STATES AND INTO THE SOUTHEAST. THAT ALSO MEANS WETTER CONDITION. THAT'S NOT GOOD NEWS FOR SOME OF YOU FOLKS SOUTH OF MINNESOTA WHERE IT'S STILL AND YOU HAVE FLOODING. BUT IT'S GOOD NEWS FOR THE REST OF THE CORN BELT WHERE THICKS WILL BE DRYING OFF. DON'T GET TOO EXCITED ABOUT THESE AREAS OF GREEN HERE. THESE ARE VERY SCATTERED SHOWERS AND THUNDERSTORMS, MAINLY DURING THE AFTERNOON, A LITTLE MORE SUBSTANTIAL --WILL BE FARTHER NORTH ALONG THE JET STREAM THERE. THE RIDGE HOLDS AS WE HEAD TO THE MIDDLE OF THE WEEK. THAT'S GOING TO BE SOME DECENT RAINS ALONG THE CANADIAN BORDER. SCATTERS SHOWERS AND THUNDERSTORMS INTO THE NORTHEAST AND YOU SOME SUMMER LIKE SHOWERS AND SHOWERS AND THUNDERSTORMS SCATTERED THROUGH THE GULF REGION. BY FRIDAY YOU CAN SEE THE FIRST TROUGH COMES INTO THE EDGE. COLD FRONT MAY CAUSE A MITT AND MISS THUNDERSTORM, LET'S TAKE A LOOK AT THINGS. FOR NEXT WEEK. THIS IS FOR THE LATTER PARTS OF JUNE. ABOVE NORMAL TEMPERATURES, SOUTHEAST AND THE SOUTHERN HALF OF THE PLAIN STATES, THAT INCLUDE THE TENNESSEE VALLEY BELOW NORMAL FOR THE LAKES, BACK INTO THE MOUNTAIN AREA, AS FAR AS PRECIPITATION. THAT MAY EXTEND SOUTH WARD TO THE OHIO VALLEY AND NORTHERN GREAT LAKES . 30 DAY OUTLOOK FOR TEMPERATURES, SAME AREAS, REALLY, BELOW NORMAL. BACK INTO THE NORTHWEST. AS FAR AS RESIPPATION OVER THE NEXT 30 DAYS, ABOVE NORMAL FROM THE GREAT LEAKS. BELOW NORMAL FOR SOUTH FLORIDA, LOUISIANA AND SOUTHERN PLAINS. JOHN, IF YOU NOTICE THESE LAST MAPS I'VE SHOWN ARE FOR THE 30- DAY OUTLOOK.

LOOKS LIKE THE HIGH WILL GET A CHANCE TO PLANT SOMETHING. WE DON'T KNOW WHAT THEY WILL BE PLANTING BUT NONETHELESS THEY MAY HAVE TIME TO GET SOMETHING N.

THE FAR NORTHERN AREAS, THIS WILL BE BETTER THAN IT HAS BEEN. YOU WILL HAVE DRYER PERIODS.

THANKS SO MUCH. SPIRIT OF THE HEARTLAND IS NEXT. HIGHEST PAYING COLLEGE DEGREES ARE ENGINEERING, COMPUTER SCIENCE AND ACCOUNTING. AT ONE SCHOOL, AGRICULTURE IS STRONG. SPRINGFIELD, MISSOURI, A PLACE WHERE CLASS WORK AND FARMWORK COUNT AT GRADUATION.

A PRETTY GIRL GOING TO SCHOOL FOR ANIMAL HUSBANDRY.

I WOULD LIKE TO WORK FOR THE FARM BUREAU.

EARNING A LITTLE CLASS CREDIT.

I'VE BEEN THERE SINCE MY FIRST DAY OF FRESHMAN YEAR. I WOULD LIKE TO OPEN ONE UP BACK HOME AT CONWAY SOME DAY.

MILKING --AND CHECKING ON THE HERD BETWEEN CLASSES TO MAKE THE GRADE.

I'VE ALWAYS WANTED TO WORK WITH COWS. I GREW UP AROUND THAT.

ALL THIS DIVERSIFIED FARMING CAN ONLY BE HARD WORK U, THE COLLEGE OF THE OZARKS. AGRICULTURE CONSISTENTLY RANKS IN THE TOP --OF THE MAJORS AND MINORS.

WE DRAW FROM SMALL RURAL COMMUNITIES THROUGHOUT THE OZARK REGION AND AGRICULTURE IS TYPICALLY PART OF THEIR BACKGROUND.

IT GOES --AFTER SET OF BOOKS, THEIR FIRST PURCHASE WAS A DAIRY COW. FOR THE FIRST 60 YEARS OF ITS EXISTENCE, EVERYTHING ON THE FARM HELPS FEED STUDENTS, FACULTY AND STAFF. AGRICULTURE WAS INCORPORATED INTO IT EDUCATION PROGRAM IN 1968.

IF YOU'RE ON AG FACULTY, IS THIS A PRACTICE WHAT YOU PREACH POSITION?

DEFINITELY. THE STUDENTS SEE WHAT YOU DO ON THE FARM. YOU'RE TEACHING THEM IN CLASS.

ABOUT HALF OF THE COLLEGES USDA INSPECTED MEATS AND GRADE A MILK IS ON THE MENU IN THE DINING HALL. YES, DOING FARM STORIES DOES HAVE ITS BENEFITS. IN THE FAST PACED KITCHEN ARE SUE CHEFS, GOING INTO THE WORLD OF FINE DINING. UNDERSTAND THE ECONOMICS OF BRINGING FOOD FROM THE FARM TO THE TABLE.

I GET TO SEE ONE END TO THE OTHER. SO THAT MIGHT BE GOOD.

THE DEAL THE COLLEGE MAKES WITH ALL STUDENTS IS DO WELL IN CLASS, DO SOME CHORES, AND THE DEGREE IS FREE. THAT'S HOW THEY CAN MAKE HARVESTING ONIONS APPETIZING FOR CRIMINAL JUSTICE MAJORS.

YOU WORK FOR YOUR EDUCATION. YOU CAN WORK 15 HOURS A WEEK, TWO 40 HOUR WEEKS AND YOU'RE GOOD TO GO.

THERE'S ALSO A MILL GRINDING WHOLE GRAIN FLOUR AT THIS CHRISTIAN COLLEGE THERE'S A MESSAGE TO FEED --IT'S NOT JUST ABOUT COMMODITIES. IT'S ABOUT CHARACTER.

HARD WORK.

THIS IS STEVE GRANT WITH US FARM REPORT.

ONE FINAL NOTE, THE COLLEGE OF THE OZARKS BAKES AND SELLS 25,000 FRUIT CAKES EACH SEASON, IN CASE YOU'RE WONDERING WHERE ALL THOSE COME FROM.

A MICHIGAN MAN AND HIS TRACTOR. THIS SUMMER, TRACTOR DAVE IS DRIVING HIS TRACTOR 180 MILES EACH DAY RAISING MONEY FOR CAUSES. WE'LL LET YOU KNOW IF HE'S COMING TO A TOWN NEAR YOU. UP NEXT, HOW AN EDUCATOR MADE A LIFELONG IMPACT ON BAXTER BLACK. PLEASE STAY WITH US. >>>

LIKE ALL OF US, A HANDFUL OF INFLUENTIAL INDIVIDUALS HELPED SHAPE BAXTER BLACK'S -- ON LIVING. THIS WEEK HE SAYS THANKS TO A HIGH SCHOOL TEACH THAT ARE TAUGHT HIM A VALUABLE LESSON.

SOMEBODY ASKED ME WHAT PEOPLE HAVE HAD THE GREATEST IMPACT ON MY LIFE. ONE OF THEM HAS TO BE --MR. MR. MANZELLOS MY TEACHER. THE OWL IS A SYMBOL OF WISDOM. IT'S HARD FOR A 16-YEAR-OLD KID TO EVALUATE WISDOM. MOST OF OUR PROJECTS INCLUDED A COUPLE OF STEER. SURE THERE WERE KIDS WHO IS PARENTS PARENTS PARENTS WERE GOOD FARMERS, BUT RUPPERT TREATED US ALL THE SAME. WE ALL HAD THE LOVE OF AGRICULTURE AND THE OPTIMISM OF YOUTH. HE TOLD US THAT DIRT WAS UNDER YOUR FINGERNAILS AND SOIL WAS WHAT YOU TILLED. HE SHOWED HOUSE HOW TO WORK ON MACHINERY AND HOW TO TELL A RIB STEAK FROM A CHUCK. IT'S NOT UNTIL MUCH LATER I CAME TO REALIZE HOW MUCH AN AG TEACHER HAS TO KNOW. I SAID HE TREATED EVERYBODY THE SAME. THAT'S NOT QUITE TRUE BECAUSE HE MADE ME FEEL LIKE I WAS SPECIAL. BUT IF THE TRUTH WERE KNOWN, HE PROBABLY MADE US ALL FEEL THAT WAY. WHEN WE DECIDED TO INVITE THE GOVERNOR TO BE THE SPEAKER AT OUR LOCAL --HE SAID DON'T ADVERTISE IT IN CASE THE GOVERNOR DIDN'T SHOW. WE SENT OUT INVITATIONS TO ALL THE SCOREBOARD, PRINCIPAL AND OTHER DIGTARIES, BUT MOST DECLINED BECAUSE THEY HAD OTHER THINGS TO DO. THE DAY BEFORE THE BANQUET, THE GOVERNOR CONFIRMED. IT CAME OUT IN THE PAPER, SUDDENLY THE LOCAL DIGTARIES WERE TRYING TO GET TICKETS. OVERNIGHT THEY HAD DEVELOPED A SINCERE INTEREST IN THE FFA. I LIKE TO THINK IT WAS ONE OF RUPPERT'S FINEST HOURS. FOR ALL YOU DEDICATED TEACHERS, I SALUTE YOU. MAY I REMIND YOU YOU'RE IN A POSITION TO SHAPE YOUNG PEOPLE'S LIVES LIKE MINE IT'S NO RESPONSIBILITY. AND MR. MANSELL, IF WE EVER AMOUNT TO ANYTHING, YOU HAD A HAND IN IT. YEAH, YOU, THERE BY THE OWL.

THIS IS BAXTER BLACK FROM OUT HERE. THANKS.

BAXTER WILL JOIN US AGAIN IN TWO WEEKS. UNTIL THEN, CHECK OUT WWW.BAXTERBLACK.COM. WHENWECOMEBACK,IT'STIMEFORTHE TRA WHENWECOMEBACK,IT'STIMEFORTHETRA CTOR TAILS AND COUNTRY SALUTE. TRACTOR TALES. THIS TRACTOR MAY NEED WORK, BUT IT RUNS GREAT. IT'S UNIQUE TO THE EAST COAST. THIS MACHINE BROUGHT FOND MEMORIES BACK FOR HIS OWNERS.

THIS WAS THE FIRST TRACTOR I WAS ALLOWED TO DRIVE. AT HOME I WAS NOT ALLOWED ON A TOCK TORE UNTIL I WAS A LITTLE BIT OLDER. AND THEN THEY GAVE ME A FORTUNE. THIS IS A FARMALL --IT CAME FROM FOUR MILES FROM HERE. IT WAS PROBABLY THE FIRST TRACTORS I EVER SAT ON. IT'S IN TRAINING TO BE AN ANTIQUE. I LIKE TO TAKE THEM AND USE THEM FOR A COUPLE OF YEARS TO MAKE SURE WE DON'T HAVE OIL LEAKS AND IT RUNS WELL OR IF I HAVE TO DO ANY REBUILDING, THIS TRACTOR WORKED A FOUR-ACRE VEGETABLE FARM ALL ITS LIFE. SO IT NEVER REALLY GOT A LOT OF WEAR, BUT AS YOU CAN SEE, IT'S SOMETHING FROM THE OLD STAY OUT IN THE FIELD UNDER THE TREE SYNDROME. SO WHAT PAINT FARMALL PUT ON THEM, IT'S JUST ABOUT GONE. WHEN IT FIRST CAME OUT, IT TOOK OVER THE 14'S POSITION. THEY ADDED A LITTLE BIT OF HORSEPOWER. THE LEVERS WORK THE RIGHT WAY. THIS ONE IS SET UP THAT WAY. THE REGULAR C WAS NOT.

NOW HAVING USED IT FOR A COUPLE OF YEARS DOING VARIOUS THINGS, AND I'M FAIRLY CERTAIN WE DON'T HAVE ANY OIL LEAKS, I WILL TAKE IT APART AND SANDBLAST IT DOWN AND CLEAN IT AND PAINT IT. BRING IT BACK AS CLOSE AS I CAN TO THE ORIGINAL --THAT IT HAD BACK IN THE YEARS THAT THEY WERE MANUFACTURING THE Cs.

IN CONNECTION WEEK WE'LL CHECK OUT AN OLD TRACTOR THAT WAS DESIGNED BY THE STYLE OF AN INTERNATIONAL TRUCK. IT WAS PRODUCED FOR A FEW SHORT YEARS WITH ONLY 30,000 LEAVING THE PLANT.

TODAY'S COUNTRY CHURCH SALUTE COMES TO US FROM THE GREAT STATE OF WISCONSIN. THE SALEM ELDORADO UNITED METHODIST CHURCH IS LOCATED AT THE INTERSEX OF --JUST OUTSIDE FOND DU LAC. IT HAD 13 CHARTER MEMBERS. THE PLOT WAS PURCHASED IN 1859 FOR THE PRICE OF ONE DOLLAR. IN 19 --THE BUILDING BURNED TO THE GROUND AND ANOTHER CHURCH WAS IMMEDIATELY ERECTED IN ITS PLACE. THE CONGREGATION WILL CELEBRATE THE 80th BIRTHDAY OF THE CHURCH BUILDING THIS JULY. THANKS TO RICHARD LINK FOR SENDING IN THE STORY. 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.

TIME NOW FOR OUR WEEKLY LOOK INSIDE THE FARM REPORT MAILBAG. A FEW WEEKS AGO WE HAD A STORY ABOUT BAN ON CHOCOLATE MILK IN SCHOOL LUNCHES. WE HAD AN OUTRAGE OF PEOPLE REGARDING GOVERNMENT INSTITUTION.

I HAVE THREE BOYS, IF IT WASN'T FOR THE CHOCOLATE IN THE MILK, THEY WOULDN'T DRINK IT.

REFERENCES TO A NANNY STATE ARE OFF THE MARKET HERE. IT'S STILL A LOCAL GOVERNMENT UNIT, NOT A FEDERAL AGENCY. I THINK THIS IS THE APPROPRIATE LEVEL FOR SUCH A DECISION. THESE ARE THE PEOPLE THAT TOOK SODA MACHINES OUT OF SCHOOLS AND THERE WAS LITTLE OUTCRY OVER THERE. DAIRY SUPPORTERS POINT OUT THAT MILK CONSUMPTION DROPS WITHOUT FLAVORING. THE QUESTION IS WHETHER THE DECREASE IN SUGAR IS OUTWEIGHED BY THE LOSS OF OTHER VITAMINS. LOOKING AT THOSE NUMBERS, IT'S A CLOSE CALL, CONSIDERING OUR OBESITY PRONE SOCIETY. TAKING STEPS TO LOWER CHILDHOOD OBESITY IS ONE KEY IN TACKLING OUR BATTLE, BUT THE BIGGER PROBLEM IS HOW AMERICANS HAVE BEEN TRAINED FOR SWEET FOODS. TODAY THEIR MAIN PRODUCT DOES NOT SELL WELL WITHOUT ADDED SUGAR. AS ALWAYS WE WANT TO HEAR FROM YOU. LEAVE US A VOICE MAIL. FOR AL AND MIKE, I'M JOHN PHIPPS, SAYING THANK YOU VERY WATCHING U.S. FARM REPORT. BE SURE AND JOIN US NEXT WEEK. WE'LL BE WORKING TO DO EVEN BETTER.

 

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