From: Ron Hays [] on behalf of Ron Hays []
Sent: Wednesday, November 17, 2010 7:38 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 November 17, 2010
A service of Johnston Enterprises, P & K Equipment/ P & K Wind Energy and American Farmers & Ranchers Mutual Insurance Company!
-- Wheat Commission to Discuss Checkoff Increase
-- Public Comment Period Ends Next Monday for GIPSA Rule
-- HSUS Ready to Strike Again
-- At What Point Do We Run Out of Cattle?
-- Farm Groups Offer Thumbs Up to Governor Elect Fallin for Selecting Jim Reese as Next Secretary of Agriculture
-- Kansas City Smashes Annual Volume Record for HRW Trading- 24 Billion Bushels Worth of Contracts Already Traded in 2010
-- Oklahoma Cattlemen Continue on the American Angus Board
-- 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 pleased to have American Farmers & Ranchers Mutual Insurance Company as a regular sponsor of our daily update- click here to go to their AFR web site to learn more about their efforts to serve rural America!

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Wheat Commission to Discuss Checkoff Increase
The regular monthly board meeting of the Oklahoma Wheat Commission is set for later this morning at 9 AM in Oklahoma City- and listed on their agenda is a time of discussion to consider asking the legislature to amend the law that established the Wheat Commission. Two possible amendments will be talked about by the Wheat Commission.

The first, according to the agenda is "Consideration and Possible Approval of the Oklahoma Wheat Commission Board to support a 1/2 cent increase on the producer wheat check off taking the current check off amount from 1 cents per bushel to 2 cents per bushel in the Oklahoma Wheat Resources Act during the 2011 legislative session."

In conjunction with that discussion, the Commissioners will also look at asking the state lawmakers to also mandate a higher percentage of the total dollars taken in go to research efforts. The OWC agenda says "Consideration and Possible Approval of the Oklahoma Wheat Commission Board to support increasing the amounts given to the Oklahoma Wheat Research Foundation from 20 percent to 25 or 30 percent in the Oklahoma Wheat Resources Act during the 2011 legislative session."

While the Commission cannot lobby the state legislature, going on record for these changes allows farm groups and individuals who support the need for change to have specifics to talk with lawmakers about.
Besides these changes, the Wheat Commission has a full agenda to work through- click on the LINK below to see that agenda as found in the calendar section of our website, www.OklahomaFarmReport.Com.

Click here for our calendar item listing the agenda of the Oklahoma Wheat Commission.

Public Comment Period Ends Next Monday for GIPSA Rule
As we approach the end of the public comment period that USDA Secretary Tom Vilsack has authorized for the so called GIPSA Rule, another study has been released looking at the possible impact on livestock production in this country. This study, commissioned by the National Chicken Council, was conducted by FarmEcon LLC, an agricultural economics consulting firm.

"The proposed rule changes are likely to slow the pace of innovation, increase the costs of raising live chickens, and result in costly litigation," wrote Thomas E. Elam, president of FarmEcon. "Higher costs would put upward pressure on chicken prices, and economic theory strongly suggests that consumers would ultimately bear most of these costs."
Rules proposed by USDA's Grain Inspection, Packers & Stockyards Administration (GIPSA) would force changes in the relationship between the nation's chicken companies and the independent farmers who grow chickens under contracts with the companies, and would also require changes in the production and marketing system for cattle and pigs. GIPSA maintains that the changes will have little economic impact, but evidence is accumulating that the cost will in fact be considerable. The FarmEcon study was the first to look at the impact on the meat chicken industry specifically.
Click here for our story on this study that was released yesterday- and which will be submitted to USDA as part of the comments that the National Chicken Council says they will be making to the agency.

Meanwhile, this study as well as the study released last week from Informa Economics suggest that USDA miscalculated when they said no economic impact study would be needed because the rule would cause little or no economic changes to the industry. Gregg Doud of the NCBA wondered out loud on Tuesday's Beef Buzz about the lack of a government Economic Analysis. You can hear his comments by clicking on the LINK below and listening to our Q&A with him.

Remember also that we have our PRIMER on the GIPSA Rule still up and available for you to review. Click here to go there- we have details on how you can submit your comments to USDA before Monday, November 22.

Click here for our Beef Buzz with Gregg Doud of the National Cattlemen's Beef Association wondering why no Federal Government Economic Analysis of the GIPSA Rule

HSUS Ready to Strike Again
The Humane Society of the United States is planning a Media Event later this morning- to showcase their latest "undercover" discovery of bad behavior in the production of eggs in Texas.

According to the Media Advisory, the HSUS, is planning a "Press conference to announce The Humane Society of the United States' latest undercover investigation into a major egg producer in Texas. Recently, two factory farms in Iowa made national headlines when their eggs were linked to outbreaks of Salmonella and half a billion eggs were recalled. The factory farm that The HSUS investigated in Texas has similarly inhumane and filthy conditions.
"The HSUS will release video footage revealing appalling suffering at an egg factory farm and outline critically-needed reforms in animal agribusiness to reduce cruelty and improve food safety."

This will be held in Washington at the HSUS Headquarters- we will be able to monitor it via a teleconference they have set up for media- and they promise a visual event. HSUS tells the media to expect "Undercover video footage of Texas factory farm conditions"- as well as a" Large display photo examples highlighting food safety concerns."

When we tweeted the HSUS plan yesterday- a couple of ag groups that follow us called and wanted details- hopefully, they will be able to be ready to take another visual body blow from Wayne Pacelle against how eggs are produced in this country.

At What Point Do We Run Out of Cattle?
It's an interesting perspective that OSU Extension Livestock Market Economist Dr. Derrell Peel offers this week- as he believes that we have to cut marketings at some point soon in order to start rebuilding the cattle herd. He writes "The U.S. beef cow herd has decreased 12 of the last 14 years, dropping from a cyclical peak of 35.3 million head in 1996 to the January, 2010 level of 31.3 million head. This represents the smallest beef cow herd since 1963. Combined with smaller dairy cow numbers, the 2010 calf crop is expected to be 35.4 million head, the smallest U.S. calf crop since 1950. Total U.S. cattle inventory has decreased by almost 10 million head since 1996 to the January, 2010 level of 93.7 million head, the smallest cattle inventory since 1959.

"In contrast, total beef production has not changed accordingly. In fact, 2010 beef production is projected at 25.9 billion pounds, slightly higher than the 1996 level of 25.4 billion pounds. This leads to two questions: how have we maintained beef production with declining inventories? and can we continue to maintain production? We have maintained production thus far in two primary ways. First, decreasing inventories allows the industry to utilize that inventory as production while numbers are declining. Secondly, for the decade, between 1996 and 2006, cheap corn allowed the industry to feed animals to ever increasing carcass weights and to feed lightweight calves for many days in feedlots. Feedlot inventories are thus maintained by a slower rate of turnover. Thus, the industry was able to effectively turn fewer cattle into more pounds of beef."

Dr. Peel believes that we will reach a point where we will have to reduce cattle slaughter in order to retain heifers to start rebuilding the herd. You can click on the LINK below to read the rest of his ideas on this subject- and get his prediction as to when this herd rebuilding may finally start to happen.

Click here for more on the answer to the question- At What Point do we run out of cattle?

Farm Groups Offer Thumbs Up to Governor Elect Fallin for Selecting Jim Reese as Next Secretary of Agriculture
We have gotten "thumbs up" from both the Oklahoma Farm Bureau as well as the American Farmers & Ranchers in regards to the announcement on Monday afternoon that Jim Reese is Governor Elect Mary Fallin's choice to head the Oklahoma Department of Agriculture when she assumes office in January.

The Farm Bureau issued a statement from their President Mike Spradling. "We respect and support Governor-elect Mary Fallin's appointment of Jim Reese as agriculture secretary. The governor-elect was fortunate to have a large pool of dedicated Oklahoma agriculture leaders to choose from, and we are looking forward to working with Jim. We had a good working relationship with Jim when he was in the statehouse and when he was serving as FSA director," Spradling said.
While serving in the state legislature, Reese received Farm Bureau's Meritorious Service award, which is granted to lawmakers for their strong support of rural and agricultural issues.

We caught up with Terry Detrick, President of the American Farmers & Ranchers early this morning at his Hotel in Washington. Detrick and several AFR leaders are in Washington until later today- talking with members of Congress as the Lame Duck Session rolls along. Detrick tells us that "We congratulate Jim and think it's a good move." Detrick adds that Reese understands the issues very well and that AFR looks forward to working with him.
Terry Detrick says that he expects Jim Reese will look at continuing the meetings held regularly at the State Department of Agriculture that most ag groups in the state took part in. These meetings were hosted by current Commissioner of Ag Terry Peach, who Detrick says "has set the bar for harmonization in the ag community in the state of Oklahoma."

Click here for more on the reaction to the Mary Fallin Choice for Oklahoma Secretary of Agriculture- Jim Reese

Kansas City Smashes Annual Volume Record for HRW Trading- 24 Billion Bushels Worth of Contracts Already Traded in 2010
The Kansas City Board of Trade has set a new annual trading volume record in the hard red winter wheat futures contract as of November 12. At the conclusion of Friday's trade 4,798,488 contracts or 23.99 billion bushels had traded thus far in 2010. The previous record was set in 2006, at 4,763,168 contracts or 23.82 billion bushels. Six weeks remain in the year to add to the record. The KCBT hard red winter wheat futures contract is the world benchmark pricing mechanism for bread wheat.

Volume and open interest in KCBT contracts have increased as demand for milling-quality wheat has taken center stage, traders said. In fact a new open interest record was set in the wheat futures contract just last Thursday at 250,506 contracts, capping a spate of recent open interest records. Trading has been active in both the intermarket and intramarket spreads. There has also been interest from traders looking at commodities in general as an inflation hedge, traders said.

Click on the LINK below for more on this record set by the KCBT- and a link to a very interesting graphic showing the growth in trade at the KCBT- fueled in part by the moving in of major hedge funds in the commodity markets.

Click here for more on the KCBT Record of 24 billion bushels of wheat traded thus far here in 2010.

Oklahoma Cattlemen Continue on the American Angus Board
American Angus Association delegates elected five members to its Board of Directors Monday, Nov. 15 at the 127th Annual Convention of Delegates in Louisville, Ky. Newly elected Board Directors include: Leo McDonnell Jr., Columbus, Mont.; John Pfeiffer, Orlando, Okla.; Kevin Yon, Ridge Spring, S.C; and John Harrell, Opelika, Ala. Jim Rentz, Coldwater, Ohio, was elected to a second term on the Board.

The new President of the American Angus Association Board hails from North Carolina, while the new Vice Chairman and Vice President is Jarold Callahan of Express Ranches in Yukon, Oklahoma. Jarold Callahan, the newly elected vice chairman and vice president, recently served as treasurer. Callahan received his undergraduate degree from Northeastern Oklahoma A&M College and a master's degree in agriculture from the University of Arkansas at Fayetteville. He taught purebred beef production and livestock selection at Oklahoma State University and served as executive vice president of the Oklahoma Cattlemen's Association before joining Express Ranches in 1996.

Our friend and fellow alum of Class One of the Oklahoma Ag Leadership Program- John Pfeiffer is a fourth-generation Angus breeder who graduated from Oklahoma State University with a bachelor's degree in animal science. John and his wife, Gaye, have two sons and operate the longtime Pfeiffer Angus business and diversified farming operation.
John spent 30 years teaching high school science and served two years as administrator. He served as president of the Oklahoma Angus Association and, with Gaye, serves as editor of the Oklahoma Angus Challenger and directory.

Click here to read more about the new board that Jarold and John are serving on in the coming year for the American Angus Association.

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 $8.45 per bushel- as of the close of business yesterday, while the 2011 New Crop contracts for Canola are now available are $9.25 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(includes latest cash cattle trade which is steady with last week- $98.50 top from the Texas Cattle Feeders Association.

God Bless! You can reach us at the following:
phone: 405-473-6144

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