Grain Reserves: Time for a Much-Needed Discussion 

Darryll E. Ray and Harwood D. Schaffer of the Excellence in Agricultural Policy Center at the University of Tennessee published the following column in their "Policy Pennings" newsletter:

The headline of the Friday, September 21, 2012 news story written by DTN's Washington Insider (WI) caught our eye. It read: "Buffer Stocks, Yet Again," as if there were something blasphemous for people to talk about the role of grain reserves in ensuring the availability of essential foodstuffs in times of production shortfalls.

Perhaps WI has come to believe that wide swings in the production of agricultural commodities are a thing of the past, having been banished to history's dustbin through the miracle of modern plant breeding programs.

Leaving out this year and looking at the previous ten years of production records in the US, it might be possible to come to that conclusion. But as any dryland Texas farmer can tell you, if you don't have the rain, you won't have a crop, no matter how good the genetics. And as we saw in 1993, too much of a good thing-rain-can be just as problematic.

The most memorable editorial cartoon from that year appeared in the Des Moines Register. It showed the cross-section of the depth of a "lake" with a farmer sitting in the back of an outboard motorboat. Attached to rear of the boat was a bar that descended to the bottom of the lake-with stubble from the previous year's crop-where it was attached to a corn planter. Much of the crop planted in the upper Midwest in 1993 was mudded-in.

We find it strange that when it comes to storm preparedness, households are urged to keep on hand a several day supply of essentials like food, water, and medicine and yet when it comes to our national household, we do not want to talk about setting aside a reasonable supply of storable commodities to tide grain demanders through crop years like 1993 and 2012. Even if WI does not want to talk about it, a discussion of the value of a reserve program is an essential part of the ongoing evolution of agricultural policy.

You can read the rest of this story on our website by clicking here. 

Beef Market Trapped In Narrow Range For Awhile, Peel Says 

The price of wholesale boxed beef has been trading in a narrow range between $1.90 and $2 per pound for quite some time. Packers who need to keep a supply of beef in the pipeline are holding the price up, and consumers reluctant to pay more at the store are keeping the cap on.

Derrell Peel, an Extension livestock market economist at Oklahoma State has examined the situation and says in today's Beef Buzz that the past may be prologue.

"We've repeatedly, this year, cycled boxed beef prices up on a several-week, cyclical basis. But once we get above that 195 level, for choice boxed beef, we seem to run into a wall. We've done it several times and immediately, again, there's push back against it. That $2 level for choice boxed beef seems to be a significant point of resistance for us. I think it is inevitable we will eventually go across that although it appears the demand challenges in order to do that are pretty significant and probably or it may not happen this year. It could be next spring before we see that happen."

Click here to listen to more of Derrell's analysis.

 

Chesapeake Energy Partners with OACD to Promote Oklahoma River Quality

The ongoing work to maintain and improve the quality of water in the Oklahoma River received an additional boost today through the donation of up to $10,000 from Chesapeake Energy to the Oklahoma Association of Conservation Districts (OACD) ECOpass program. The donation from Chesapeake will go to additional landowner education and outreach activities on the river as well as helping incentivize farmers and ranchers to maintain best management practices established on their land to help protect the watershed.   According to Joe Parker, President of the Oklahoma Association of Conservation Districts, this donation will make a definite impact on the work being done to help promote water quality in the Oklahoma River.

"We are very excited to have Chesapeake as a partner in protecting the Oklahoma River," Parker said. "Through this donation we can provided additional incentives to landowners who have installed practices to protect the river but would like to extend the life of their improvement or possibly do more to improve water quality. This donation will also give us additional resources to reach out to more urban and suburban landowners closer into the metro area and work with them on strategies to protect this vital watershed. This donation is a real shot in the arm and we are very appreciative for it."

Click here for more.

State Beef Councils Supplement Checkoff Program Funding

Beef producers serving state beef council boards throughout the country have chosen to supplement national and international research, education and promotion programs funded by the Beef Checkoff Program by about $6.6 million in fiscal year 2013, which began Oct. 1. The supplemental funds, invested through the Federation of State Beef Councils, are to be added to $40.3 million invested through the Cattlemen's Beef Board (CBB) and approved by the Beef Promotion Operating Committee, which met in Denver Sept. 19 - 20. The Committee's decisions were submitted to the full CBB and the USDA for approval.

State beef councils in 45 states are qualified to collect the full $1-per-head beef checkoff, and retain 50 cents of each dollar for use in authorized state, national and international programs. The other 50 cents is remitted to the Cattlemen's Beef Board. Collections from beef importers, who must also pay the checkoff, and from cattle producers in states with no Qualified State Beef Council, are conducted by the CBB.

You can read more by clicking here.

 

Soy Checkoff Study Finds No Volatile Chemical Residues on U.S. Soybeans

When a Japanese soy importer found higher than allowed residues of a fungicide in a small shipment of U.S. soybeans, it was up to the U.S. soy industry to demonstrate that the discovery was an isolated incident. And the industry did just that, thanks to a study funded by the United Soybean Board (USB).

"We fund studies that support the sale of U.S. soybeans around the world," says Dwain Ford, USB director and soybean farmer from Kinmundy, Ill. "In this case, because USB partners in Japan had a full agricultural chemical analysis of the 2011 U.S. soybean crop in hand, they were able to assure the Japanese importer that this was a unique occurrence and avoid a trade disruption with our third-largest export market."

The U.S. Department of Agriculture's Grain Inspection, Packers & Stockyards Administration (GIPSA) conducted the analysis, which has been funded by USB's Global Opportunities program. Using statistically representative export samples of the most recent crop, this study analyzed the soybeans to determine if more than the allowable levels of agricultural chemical residues exist.

Click here to read more of this article.

Choice Boxed Beef and Finished Cattle Up a Dollar on the Week

In this week's beef report with Ed Czerwien of the USDA's Market News Office in Amarillo, Texas, the choice cut market ended the week of October 5, at $189.99 cwt, trading in a very close range all week. That price was up about one dollar. The up front load was down a little at 974 total loads.

The general trend in the finished cattle trade was mainly one dollar higher last week at mostly $123 to instances of $124.50 cwt.

The harvest weight last week from the Texas Panhandle was 1,277 pounds, seven pounds lower than the previous week.

You can hear Czerwien's complete weekly report by clicking here.

 

This N That- Columbus Day Delays Reports, Blackjack Sale This Saturday and USDA Info Meeting This Evening

With Monday being Columbus Day, it was a day of rest for banks and federal government employees- and that's just about it.  Some federal employees do work on holidays like this one- for example our friends at the USDA Market News Offices- so we have Monday cattle auction reports from key markets like Oklahoma City, Tulsa and Joplin.  However, the rest of the Feds stay home- so reports that are fixtures on Mondays like the weekly Crop Weather Updates and the national Crop Progress numbers are delayed a day- and will be available this afternoon. And- for those of you that need to be visiting with someone at the Farm Service Agency for example- they are back after their three day weekend.

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The Blackjack and Guests Female Production Sale is scheduled for this Saturday, October 13, 2012 at Blackjack Farms, Seminole, Oklahoma. Keith and Janet Grissom have got an excellent set of cattle to offer- and they are welcoming three other great operations that will be a part of the sale on Saturday- including McFerran Farms, MCS Cattle Company and Pfeiffer Angus Farms.  Click here and you can jump right over to their sale catalog that is found on the National Cattle's website.  

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A meeting is planned in Siloam Springs, Arkansas (close to the Oklahoma-Arkansas state line) by the US Department of Agriculture that is designed to provide information as to how you can tap into the settlement funds that USDA is making available for Hispanics and Women who believe they have been discriminated against when it comes to obtaining USDA backed loans.

There's over a billion tax dollars that have been set aside for this process- click here to learn more about the process itself and you can click here to jump to the PDF of a flyer we have been provided that explains more about this informational meeting set for tonight at the Total Life Community Center in Siloam Springs (and yes, folks from eastern Oklahoma are welcome to cross the state line and attend.)