From: Ron Hays [] on behalf of Ron Hays []
Sent: Wednesday, October 27, 2010 7:52 AM
To: Hays, Ron
Subject: Oklahoma's Farm News Update
Oklahoma's latest farm and ranch news
Your Update from Ron Hays of RON for Wednesday October 27, 2010
A service of Producers Cooperative Oil Mill, Midwest Farm Shows and Big Iron OnLine Auctions!
-- Countdown to Midterms- A Week Away from Calling Frank Lucas "Mr. Chairman"?
-- National Farmers Union Weighs in on GIPSA- Offering Strong Support for This Reform
-- Meanwhile, NCBA Beats the Drum in Opposition to the GIPSA Rule
-- Southwestern at Weatherford is Hosting a Biofuels Forum on Thursday
-- China is a Market Force in the US Wheat Market- Whether They Buy From Us or Not
-- Wheat Pasture Conditions and Feeder Marketing Strategies
-- Economy Wide Benefits of Etahnol Cited by USDA
-- Let's Check the Markets!

Howdy Neighbors!

Here's your morning farm news headlines from the Director of Farm Programming for the Radio Oklahoma Network, Ron Hays. We are proud to welcome Big Iron Unreserved Online Auctions as our newest sponsor of the daily Email. Their next auction is Wednesday, October 27 - featuring Low Hour, Farmer Owned Equipment. Click here for their website to learn more about their Online Farm Equipment Auctions.

We are also excited to have as one of our sponsors for the daily email Producers Cooperative Oil Mill, with 64 years of progress through producer ownership. Call Brandon Winters at 405-232-7555 for more information on the oilseed crops they handle, including sunflowers and canola- and remember they post closing market prices for canola and sunflowers on the PCOM website- go there by clicking here.

And we salute our longest running email sponsor- Midwest Farm Shows, producer of the springtime Southern Plains Farm Show, as well as the upcoming Tulsa Farm Show. Click here for more on the December 2010 Tulsa Farm Show, including information on how you can be an exhibitor.

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Countdown to Midterms- A Week Away from Calling Frank Lucas "Mr. Chairman"?
The Resolutions Committee of the Oklahoma Farm Bureau kicked off two days of work at noon on Tuesday, and heard during their opening luncheon from Oklahoma Congressman Frank Lucas, now the ranking Minority Member of the House Ag Committee. The Chairman of their Resolutions Committee is their Vice President, Bob Drake, and he wasted no time as he introduced Congressman Lucas to the group as the Next Chairman of the House Ag Committee. That brought an enthusiastic response from the crowd as they stood to welcome Roger Mills County Rancher to the meeting.

Lucas spoke of several familiar priorities with Farm Bureau leaders- including the need to postpone working on a new farm bill until 2012- instead of pushing for a 2011 start as advocated by the current Chairman of the House Ag Committee, Collin Peterson. He also spoke of the need for oversight hearings and told afterward that a list is being compiled of agencies and issues where oversight needs to be addressed.

One issue that he mentioned as a candidate to be considered in the House Ag Committee during the Lame Duck Session is the proposed livestock market rule from GIPSA at USDA. Saying that USDA could move quickly after the November 22nd end of the public comment period to make the rule final- he promises a personal conversation with current Chairman Collin Peterson on GIPSA when the Lame Duck goes into session November 15.

Click on the LINK below to listen to our latest conversation with Congressman Frank Lucas as the midterm elections near- and with those elections the persistent question to be answered for Oklahoma Ag Interests- will Frank be Chairman Frank come January or not.

Click here for our latest visit with Congressman Frank Lucas as we caught up with him in Oklahoma City on Tuesday.

National Farmers Union Weighs in on GIPSA- Offering Strong Support for This Reform
National Farmers Union (NFU) President Roger Johnson submitted comments today commending U.S. Department of Agriculture's (USDA) Grain Inspection, Packers and Stockyard Administration (GIPSA) on its proposed rule, calling it a "Farmer and Rancher Bill of Rights."
"Input from agricultural producers is essential to the rulemaking process," said Johnson. "The Packers and Stockyards Act has been around for 90 years. It's time to start enforcing it. The Farmer and Rancher Bill of Rights will protect farmers and ranchers from anticompetitive behavior by packers and processors. Industry will no longer be allowed free rein to abuse livestock producers who have limited market power."

The proposed rule addresses concerns that have been discussed for decades. The rule is also well within the scope of GIPSA's authority granted by the Packers and Stockyards Act and was developed in response to the 2008 Farm Bill, which requires USDA to carry out specific rulemaking to improve fairness in the marketing of livestock and poultry.

Johnson acknowledges that some clarifications may be needed to address some of the concerns of the producer groups who are against the rule- but clearly NFU is on board with Dudley Butler and the Obama Administration on the majority of the proposal. Click on the LINK below for more on this proposal that some say will lead to the most sweeping changes in livestock marketing in almost a hundred years.

Click here for the NFU Call for Enactment of the GIPSA Marketing Rule

Meanwhile, NCBA Beats the Drum in Opposition to the GIPSA Rule
The discussion about the GIPSA Marketing Rule continues to accelerate as we come closer to the end of the comment period on the rule- the comment period ends November 22, 2010. Speculation is mounting that USDA will not read and consider the comments provided- but will allow the Administrator of GIPSA, Dudley Butler to finalize the rule largely as it is on November 23rd or shortly after.

Lead Lobbyist for the National Cattlemen's Beef Association, Colin Woodall, says its imperative that individuals send comments to Secretary Vilsack about how the rule will impact them- that if the agency is buried in comments about the proposal- it will be harder for them to ignore all of the comments and finalize the rule the next day.

We talk about this with Woodall on today's Beef Buzz- click on the LINK below to jump to our page on OklahomaFarmReport.Com for the first part of our conversation with him this week on the subject. We talked with him during the Texas Cattle Feeders Association convention that was held in Oklahoma City.

Click here for Colin Woodall's current thoughts on the GIPSA Rule Rumble

Southwestern at Weatherford is Hosting a Biofuels Forum on Thursday
Southwestern Oklahoma State University will host a Community Forum on expanding the U.S. Biofuels Market led by USDA on Thursday, October 28th. USDA has outlined a plan on how to develop a successful biofuels market capable of achieving the U.S. Renewable Fuels Standards mandate of not only producing, but also using, 36 billion gallons of renewable transportation fuel per year by 2022. However, this is an interim plan and now the department needs input and feedback from Rural America.

The Congressionally mandated RFS2 goal is to use at least 36 billion gallons of bio-based transportation fuels by 2022 that reduce greenhouse gas emissions by the percentages specified under the RFS2. Fifteen billion gallons can come from conventional biofuel sources such as corn ethanol. EPA's analysis projects that 15 billion gallons of conventional biofuels could come from current or planned production capacity of corn starch ethanol by 2022.

The 21 billion gallons of biofuels not coming from grain starch based ethanol is the question mark- and will be one of the prime things that will be discussed in this forum Thursday evening.
The local contact for the Forum is Britton Rife, who may be reached by calling 405-325-8870.

Click here for our calendar listing of this event planned for Thursday evening in Weatherford, Oklahoma

China is a Market Force in the US Wheat Market- Whether They Buy From Us or Not
China's dynamic market is impacting U.S. wheat supply and demand reported speakers at the U.S. Wheat Associates (USW) board of directors meeting in Minneapolis, MN. Mike Krueger, president of The Money Farm, Fargo, ND, and USW Regional Vice President Matt Weimar, Hong Kong, examined how the changing demand for food in China can move U.S. prices, in separate presentations. Although China is the largest producer of wheat in the world, it imports some wheat each year.

"Chinese flour millers need imported, high-quality wheat to blend their domestic medium protein wheat up or down to produce flour products that meet increasing demand for more premium products," Weimar said. "Their imported wheat reserves are low, so the market is calling for more imported wheat from classes like hard red spring, soft white and maybe some hard red winter.
Weimar directs USW promotion programs in the People's Republic of China and North Asia. He said China's wheat imports could increase from about 31 million bushels in 2009 to 55 million bushels in 2011.
"To position U.S. wheat as the right choice to meet that need," Weimar said, "we are focused on educating large millers about the ability to certify the quality and characteristics they need from the U.S. wheat supply chain." Weimar also noted the on-going USW effort to train Chinese millers and bakers to produce flours and premium products that favor a preference for U.S. wheat.

Mike Krueger, who advises farmers on crop marketing, said Chinese demand for corn is helping increase U.S. corn prices. That also has an impact on U.S. wheat prices.
"Some analysts believe China could import three or more metric tons of U.S. corn this marketing year," Krueger said. "That is not a huge export market for corn, but meat consumption keeps growing and China really doesn't have an alternative to corn as a course feed grain. On top of the lower U.S. production forecast and the existing ethanol demand, Chinese demand is helping to hold up U.S. wheat prices."

The comments of both of these gentlemen came during the Fall Board Meeting of US Wheat that was held in conjunction with the National Association of Wheat Growers in Minneapolis this past week.

Wheat Pasture Conditions and Feeder Marketing Strategies
According to OSU Livestock Market Specialist Dr. Derrell Peel, wheat pasture could still arrive this fall. "Most of the state of Oklahoma has received significant rain in the last 10 days. Many areas received one to two inches with some areas getting significantly more. The timing was good in that most of the wheat is planted with much of it up and the response to this moisture should be good. At this time, there is very little wheat pasture ready for grazing but this rain will help pasture develop, if somewhat later than planned. I expect that, similar to last year, we may see slow but steady wheat grazing develop through the winter with stockers dribbling out to pasture all winter."

"Feeder prices in Oklahoma are likely at the seasonal low and are expected to strengthen a bit in the last part of the year. Relative feeder prices provide several distinct signals to cow-calf, stocker and feedlot producers. Last week in Oklahoma, the cheapest feeder animal up to 850 pounds, on a $/cwt. basis was a 600 pound steer. At this time, there is relatively little demand for such an animal. It is a bit too heavy for traditional stocker programs and too light for feedlots to want to feed a lot of expensive corn to. There is also a relatively sharp break above and below 500 pounds. These price signals suggest several strategies for cattle producers."

Click on the LINK below for more of Dr. Peel's thoughts on the current market signals for cattle going onto wheat pasture here in the state.

Click here for more on the economics of wheat pasture for this fall in Oklahoma with OSU's Derrell Peel

Economy Wide Benefits of Etahnol Cited by USDA
An earlier study by researchers at USDA concluded that grain ethanol produces twice the energy than goes into its production. Now, USDA's Economic Research Service has completed an economic study that shows ethanol helps our economy and puts money back into the household budget. Growth Energy has been arguing that point from Day One. The conclusion is that increasing the use of ethanol will not only reduce our nation's dependence on foreign oil, but create economy-wide benefits.

The economists report: replacing petroleum gasoline with less expensive ethanol would reduce domestic spending on motor fuels. This reduction would occur as long as ethanol is competitive with imported petroleum oil. The cost savings from reduced motor fuel expenditures are passed on to households. The Department of Energy expects the price of ethanol to remain competitive at about two-dollars a gallon, with oil going higher than 100-dollars a barrel by 2020.

As the report asserts, success in meeting the RFS depends on overcoming some challenges, but the long-term gains to the economy from increased production of ethanol, are clear. If we truly want to reduce our dependence on foreign oil, create jobs and improve our environment, we must increase the use of biofuels in our fuel system.

Click here for more on this study from USDA than makes the case for ethanol produced here in the USA

Our thanks to Midwest Farms Shows, PCOM, P & K Equipment/ P & K Wind Energy, Johnston Enterprises, American Farmers & Ranchers, KIS Futures and Big Iron Online Auctions for their support of our daily Farm News Update. For your convenience, we have our sponsors' websites linked here- just click on their name to jump to their website- check their sites out and let these folks know you appreciate the support of this daily email, as their sponsorship helps us keep this arriving in your inbox on a regular basis- FREE!

We also invite you to check out our website at the link below to check out an archive of these daily emails, audio reports and top farm news story links from around the globe.

Click here to check out WWW.OklahomaFarmReport.Com

Let's Check the Markets!
We've had requests to include Canola prices for your convenience here- and we will be doing so on a regular basis. Current cash price for Canola is $8.95 per bushel- as of the close of trade on Thursday, while the 2011 New Crop contracts for Canola are now available are $9.65 per bushel- delivered to local participating elevators that are working with PCOM.

Here are some links we will leave in place on an ongoing basis- Click on the name of the report to go to that link:
Our Daily Market Wrapup from the Radio Oklahoma Network with Ed Richards and Tom Leffler- analyzing the Futures Markets from the previous Day-
Ron on RON Markets as heard on K101 mornings with cash and futures reviewed- includes where the Cash Cattle market stands, the latest Feeder Cattle Markets Etc.
Previous Day's Wheat Market Recap- Two Pager From The Kansas City Board of Trade looks at all three US Wheat Futures Exchanges with extra info on Hard Red Winter Wheat and the why of that day's market.
Daily Oklahoma Cash Grain Prices- As Reported by the Oklahoma Dept. of Agriculture. <
The National Daily Feeder & Stocker Cattle Summary- as prepared by USDA.
The National Daily Slaughter Cattle Summary- as prepared by USDA.
Finally, Here is the Daily Volume and Price Summary from the Texas Cattle Feeders Association.

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phone: 405-473-6144

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