From: Ron Hays [ron@oklahomafarmreport.ccsend.com] on behalf of Ron Hays [ron@oklahomafarmreport.com]
Sent: Thursday, January 27, 2011 6:47 AM
To: Hays, Ron
Subject: Oklahoma's Farm News Update
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Oklahoma's latest farm and ranch news
Your Update from Ron Hays of RON for Thursday January 27, 2011
A service of Producers Cooperative Oil Mill, Midwest Farm Shows and KIS Futures!
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-- Talking State of the Union and More with US House Ag Committee Chairman Frank Lucas
-- UN Agency Warns East Asia- Foot-and-Mouth Disease in South Korea Signals Regional Risk
-- Cattle Inventory Report Due Out This Friday from USDA
-- Strong Boxed Beef Price Levels Making High Cattle Prices Back Down the Chain Work
-- Krysta Hardin to Be New Chief of Staff at USDA
-- Boll Weevil Infestation Just a Strong South Wind Away
-- Messner Ranch Getting Ready for the Oldest Purebred Production Sale in Oklahoma
-- 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 have KIS Futures as a regular sponsor of our daily email update. KIS Futures provides Oklahoma Farmers & Ranchers with futures & options hedging services in the livestock and grain markets- Click here for the free market quote page they provide us for our website or call them at 1-800-256-2555.

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 recent Tulsa Farm Show.. Click here for the Midwest Farm Show main website to learn more about their lineup of shows around the country, including the Southern Plains Farm Show April 7-9, 2011 in Oklahoma City.

If you have received this by someone forwarding it to you, you are welcome to subscribe and get this weekday update sent to you directly by clicking here.


Talking State of the Union and More with US House Ag Committee Chairman Frank Lucas
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The Chairman of the House Agriculture Committee, Frank Lucas of Oklahoma, says the best thing about the State of the Union Address on Tuesday evening from an agricultural perspective, is that President Barrack Obama did not specifically mention agriculture.

The five year freeze on discretionary spending that President Obama called for may actually help in finding some money for the many different programs in the 2008 farm law that currently have no budget baseline associated with them. Lucas said he would be pleased if we could simply freeze agricultural spending where it is now- especially at the point that we begin to write the 2012 Farm Bill late this year or early next year.

Congressman Lucas says the mention of the free trade agreements that have been in limbo since George W Bush was in the White House- for South Korea, Columbia and Panama- raised concerns about the President's intentions on global trade efforts. He called the President's comments that he wants to rework the agreements with Panama and Columbia "very unfortunate" as he says those agreements would really help US farmers and ranchers if they were ratified immediately. He is hopeful the President will submit the South Korean agreement quickly as he believes that Congress will ratify in short order.

We covered several more subjects as well with Congressman Lucas on Wednesday afternoon- and you can hear the full conversation by clicking on the LINK below to jump to our Podcast of this visit with the Chairman of the House Ag Committee.

Click here to go and hear our latest interview with Congressman Frank Lucas on all things agriculture.


UN Agency Warns East Asia- Foot-and-Mouth Disease in South Korea Signals Regional Risk
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According to the Xinhua news agency, The UN Food and Agriculture Organization (FAO) has warned Asia to urgently prepare for an outbreak of foot-and-mouth disease (FMD), following its discovery in South Korea.
The agency said Thursday veterinary and border control authorities in Asia needed to be on alert as there were signs of animal infection by the livestock-affecting sickness.

"The current FMD dynamics in eastern Asia, as well as the magnitude of the outbreak in South Korea, are unlike anything that we've seen for at least a half century," FAO chief veterinary officer Juan Lubroth said.
"Authorities in Asia should make sure they are in a position to detect any instances of the disease and respond rapidly in an appropriate way. FAO is advocating proactive vaccination campaigns designed to stop the spread of the disease," he said.

Meanwhile, The South Korean government on Wednesday urged the public to actively participate in its efforts to stem foot-and- mouth disease (FMD) amid concerns that the highly contagious animal illness could spread fast during the upcoming Lunar New Year holiday, which is February 2-4 this year.
Since November, about 2.5 million head of livestock have been culled and up to nine million animals have been or are being vaccinated for the disease.

Click here for some details from a news story from South Korea on efforts to stop the spread of FMD during their holiday celebration.


Cattle Inventory Report Due Out This Friday from USDA
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Rich Nelson with Allendale provides us with several bullet points to ponder as he provides the Allendale guesses about the size of the total US cattle herd as of January first, 2011. He sees a shrinking cattle herd- and that trend is not done yet, according to this market watcher.

The key expectations from Allendale in advance of the Cattle Inventory report to be released Friday afternoon this week include:

Drought and reduced hay acreage has pushed the breeding herd into a five year contraction.

Lowest January 1 total cattle herd since January 1958.

Lowest annual calf crop since 1950. Lower calf crop numbers will continue for three years.

Allendale expects the total US cattle herd to total just over 92 million head, with the Beef Cow population expected to come in around 30.6 million head, off about 2.5 percent from a year ago.


Strong Boxed Beef Price Levels Making High Cattle Prices Back Down the Chain Work
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Breakevens of market ready cattle have been rising in recent months- and Oklahoma State University Livestock Market Economist Dr. Derrell Peel says that the market "is at best keeping pace" with the rising breakeven costs- which is the line between profit and loss for the feedlot operator.

On today's Beef Buzz, we also talked with Derrell Peel about wholesale boxed beef prices- which are above the $1.70 per pound level. He says as long as the boxed beef prices can stay strong- it helps the rest of the chain to function at higher levels as well. We also talked of the export markets that have given an assist in keeping wholesale prices here in the US at these lofty levels.

Click on the LINK below for this latest installment with Derrell Peel about some of the fundamental reasons why we have cattle prices at the levels that we have them.

Click here for our latest Beef Buzz with comments from Derrell Peel of Oklahoma State University


Krysta Hardin to Be New Chief of Staff at USDA
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Effective on Monday, Jan. 31, Krysta Harden, Assistant Secretary for Congressional Relations at USDA, will assume the role of Chief of Staff for Agriculture Secretary Vilsack. John Berge, currently Deputy Assistant Secretary for Congressional Relations, will serve in the interim, per the line of succession, until a new Assistant Secretary for Congressional Relations is named.

A lot of folks in Oklahoma may remember Krysta from her time as the Chief Executive Officer of the National Association of Conservation Districts. She spent five years in that role.

Before confirmation to her Congressional Relations post, Harden was CEO of the NACD and earlier a VP of the Gordley Associates consulting firm handling American Soybean Association duties. She spent 12 years on Capitol Hill as farm aide and chief of staff for former Congressman Charles Hatcher, a Democrat from Georgia.


Boll Weevil Infestation Just a Strong South Wind Away
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When thousands of boll weevils turned up in monitoring traps in 2007 in parts of Texas' Southern Rolling Plains, Agricultural Research Service researchers went to work. At that time, the boll weevil problem had been all but eradicated in that area. In fact, the boll weevil was eliminated from much of the southern United States, thanks to large-scale eradication efforts begun about 30 years ago, but it remains a problem in some areas, and reinfestations are a constant threat.

ARS researchers immediately began to help Texas cotton growers track down the likely origins of the infestation, provided guidance on how to avoid future infestations and shed light on how far the pest can travel under certain conditions. Growers in the area affected in the 2007 infestation spent 1.4-million dollars on increased insecticide applications alone.

The researchers at the Southern Plains Agricultural Research Center in College Station, Texas, used modeling techniques and weather data to analyze the effects of wind patterns on insect movement. The culprit was Tropical Storm Erin which swept through South Texas in August 2007. The researchers concluded the storm brought weevils into the area from the Winter Garden district.

Click here to read more from the Ag Research Service website about this battle just to our south in Texas.


Messner Ranch Getting Ready for the Oldest Purebred Production Sale in Oklahoma
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The Messner Ranch 50th Annual Production Sale is set for Saturday February 5, 2011. The sale will be held at the Ranch near Slapout and is located 6 miles South and 11 miles west of Laverne, Oklahoma.

The Sale Catalog talks about the Messner history in the cattle business. "Milton started in 1948 with a few registered Hereford cattle. In 1950, he began selling cattle by private treaty and by consignment in various county sales. The first production sale took place in Buffalo, Oklahoma in 1961 with long time Hereford breeder, Bob Taft. The sale stayed in Buffalo until 1973 when it was moved to the ranch where the sale is still held today. In 1996, Van sold the first set of Angus cattle. Both herds carry some of the top genetics in their breeds today."

This year's sale includes 120 Service Age Hereford and Angus Bulls, 30 Bred Hereford Heifers and 25 Angus Bred Heifers

For information call Van Messner at 580-552-1555 or Milton at 580-273-9494. Click on the LINK below for more information- and we have the entire catalog linked there as well for you to download.

Click here for more details of the 50th Anniversary Purebred Sale of the Messner Ranch.


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!
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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 $9.60 per bushel, while the 2011 New Crop contracts for Canola are now available are $10.15 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.



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