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- and their IPHONE App, which provides all electronic futures quotes is available at the App Store- click here for the KIS Futures App for your Iphone.

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Our top Ag Story on our website this morning is about our reporting via Twitter from the conference- we went back and picked up many of our Tweets during the day on Thursday from the speakers- here are some of the key take home messages we heard: The drought we now find ourselves in clearly is linked to La Nina of this past fall and winter.

The water temperature in the Pacific is in the neutral range right now- but cooling could happen again late summer or fall and we could end up with a double dip La Nina.

The severe to exceptional drought we find much of Oklahoma and Texas in has only a five percent chance of being totally broken between now and the end of summer.

It would take probably a foot and a half of rainfall to break the drought in our state between now and the end of September- Dan Collins of the NWS says there is only maybe a five percent chance of that happening.

Click on the LINK below to read more about the conference and what we have taken away from it- plus listen to our conversation with one of the more interesting speakers of the day- Klaus Wolter out of Boulder, Colorado.

Click here for more from the Drought Workshop held in Austin, Texas

In addition to nitrate toxicity potential, another potential negative to utilizing johnsongrass is that it has a high potential to produce hydrogen cyanide (HCN). This is more commonly known as prussic acid. The forages used in Oklahoma that are most likely to produce toxic levels of HCN are the grain sorghums, johnsongrass, sorghum-sudangrass hybrids, and sudangrass.

During severe droughts, grazing pastures that are mainly johnsongrass should be avoided. Do not rely solely on drought-damaged forages as the only source of forage. It is important to keep some other form of dry forage available at all times.

Click here for more safety measures for grazing johnsongrass

Subcommittee Members questioned USDA administrators on how these programs can be streamlined to be more effective and efficient. Although the past two farm bills saw dramatic increases in conservation spending, several of the programs do not have a budget baseline beyond the expiration of the 2008 Farm Bill.

"This hearing provided members of the subcommittee an opportunity to hear from USDA about the content of the many Title II programs. I believe this hearing gives our members a solid foundation of knowledge as we prepare to draft a new conservation title that provides necessary programs to our farmers and ranchers in a cost-effective manner," said Chairman Glenn 'GT' Thompson (R-PA).

Click here for more from this hearing, including Chairman Frank Lucas's opening comments

Subcommittee Chairman Scott Tipton (R-CO) led the proceeding and said in his opening statements, "Saddling small farms and small businesses with more government regulations will only prolong our economic downturn and crush more jobs. In fact, if the GIPSA proposed rule is adopted, it has the potential to reduce gross domestic product by over $1.5 billion and cost the U.S. economy nearly 23,00 jobs."

The subcommittee did not hold back when it came time to question Edward Avalos, USDA Under Secretary of Marketing and Regulatory Programs. However, Avalos continued to stress the USDA's stance on the importance of small businesses in the agricultural industry.

"As you all know, small businesses are the lifeblood of our economy and where jobs are created and new ideas are tested," said Avalos. "The Secretary and I have long recognized the importance of farmers, ranchers and producers to rural communities. Our livestock and poultry producers benefit rural communities because they utilize other small local businesses, like hardware and feed supply businesses and local tractor dealerships, to succeed."

Click here for more information on the hearing over GIPSA

It wasn't smooth sailing though. Ways and Means Democrats objected to the lack of TAA - while Senate Finance Republicans objected to the inclusion of TAA in the Korea bill. Iowa Senator Chuck Grassley said the TAA program needs to be voted on separately from the trade deals - and said it was a violation of the process to put the TAA program in an implementing bill.

In the end - Senate Finance turned back Republican amendments to extend Presidential fast track authority for two and four years and to destroy TAA in the Korea FTA - while majority Republicans in the House Ways and Means turned back a Democrat amendment to include worker assistance.

The committees considered the draft implementing bills during a mock markup because Congress can't offer amendments to the final implementing bills submitted by the Administration under fast track procedures. Baucus says the agreement on trade adjustment assistance along with the free trade agreements will open lucrative new markets to American goods.

Several ag groups cheered the work in Congress on this issue- click here for a look at the US Wheat Industry Reaction

American Coalition for Ethanol
In response, Brian Jennings, Executive Vice President of the American Coalition for Ethanol, released the following statement.

"We thank Senators John Thune (R-SD) and Amy Klobuchar (D-MN) for their support and leadership in negotiating this compromise, and we echo the sentiments of Senator Thune who recently called the legislation 'trying to make the best of a bad situation.' Despite its shortcomings, this compromise represents the art of the possible given the temperament of Congress and buys us time to tackle unfinished business by building a new and broader coalition. ACE will support efforts in Congress to enact this legislation into law by the end of July."

National Corn Growers Association
National Corn Growers Association President Bart Schott released the following statement in response to today's announcement of a bipartisan compromise on ethanol tax incentives.

"NCGA is grateful to Senators Thune and Klobuchar for the hard work and dedication they have put in to reaching a final deal. There are many positive components of this compromise that are important to the ethanol industry and rural America. The final compromise reflects both the importance of the ethanol industry to achieve energy independence and the need for fiscal responsibility. The ethanol industry continues to have a positive impact on all parts of America, and we are committed to working with Congress in the future on steps that can move the ethanol industry and the nation's economy forward."

Growth Energy
Growth Energy, the coalition of U.S. ethanol supporters, released the following statement in response to the announcement of a deal made to reform the Volumetric Ethanol Excise Tax Credit (VEETC) in order to invest in next generation ethanol, remove barriers to the marketplace by providing consumer access at the pump, and reduce the federal budget deficit.

"Senators Thune and Klobuchar worked tirelessly to help shape a compromise that will benefit all Americans. This proposal will benefit consumers at the pump, reduce our dependence on foreign oil by investing in next generation biofuels, and make a significant contribution to reducing our nation's budget deficit," said Growth Energy CEO Tom Buis."

Click here to read more from each of the organizations listed above.

We have the Drought Monitor Graphic for you to see- AND- we have several pictures emailed to us showing drought from several perspectives. We have a creek that locals find themselves up without a paddle- or water. We also have some corn that battled the heat and lost- and a ten story high whirlwind from the Altus area. Click here to jump over to our website and see all of these pictures and the Drought Monitor.

From the auction calendar- we remind you that July 16- Griswold Cattle plans a Grass to Grid Customer Appreciation sale at the Red River Livestock Market just south of Ardmore. Selling will be 800 Commercial Bred Cows, Bred Heifers and Open Heifers. Featuring 150 Clubby Bred Females The entire offering carries the service of GCC Genetics or Grass to Grid Bulls. Call Jeff Bourquin at 806-886-3145 or jump over to their website by clicking here for more details.

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

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.