Oklahoma's latest farm and ranch news

A service of Producers Cooperative Oil Mill, Midwest Farm Shows and KIS Futures!

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.

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 Tulsa Farm Show coming this December- December 8th through the 10th. Click here for the Midwest Farm Show main website to learn more about their lineup of shows around the country!

We invite you to listen to us on great radio stations across the region on the Radio Oklahoma Network weekdays- if you missed this morning's Farm News - or you are in an area where you can't hear it- click here for this morning's Farm news from Ron Hays on RON.

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.

Former Chairman of the US House Ag Committee Pushing for Livestock Industry Relief from Ethanol Mandate

Virginia Congressman Bob Goodlatte, a former chairman of the House Agriculture Committee believes that the political momentum has shifted in in the direction of a federal policy that would relax some of the tax incentives and mandates that have encouraged the heavy use of corn in ethanol production.

Goodlatte told the National Chicken Council's 57th annual conference Wednesday that he is optimistic about chances of a bill that he has introduced to reduce the renewable fuels standard, which now requires 15 billion gallons of ethanol annually, when corn stocks are low. If in use today, he said, the formula "would trigger a 25 percent reduction in the renewable fuels standard."

"I think the momentum is building," he said. Although his "trigger approach is a new idea," he said that concern about the government's role in the ethanol industry is one that has been coming under increasing pressure." He cited a Senate vote earlier this year to repeal the blender's tax credit and a House vote rejecting a proposal to subsidize installation of ethanol-pumping equipment.

Click here for more from Rep. Goodlatte on his bill and the changes to the RFS.

The National Cattlemen's Beef Association supports the new legislation and changes to the renewable fuels standard. NCBA released the following statement below.

During a recent hearing of the House Subcommittee on Livestock, Dairy and Poultry, Dr. Steve Meyer, president of Paragon Economics, a livestock and grain marketing and economic advisory company in Adel, Iowa, said on behalf of the National Cattlemen's Beef Association (NCBA), that since 2004, the last year before the RFS was implemented, corn used for ethanol production increased from nearly 1.4 billion bushels to an estimated 5 billion bushels in 2010-2011, a 382 percent increase. However, he noted corn production has only increased by 5.4 percent over that same time period. Meyer said in his opinion, these differing growth rates and subsequent unprecedented low carryover stocks were primarily caused by ethanol subsidies and guaranteed market.

Kevin Kester, California cattleman and president of the California Cattlemen's Association, an affiliate of NCBA, said this legislation will provide relief from tight corn supplies.

"Cattlemen are not opposed to ethanol and we're not looking for cheap corn. We simply want the federal government to get out of the marketplace and allow the market to work," Kester said during a news conference.

Click here for more from NCBA on their statement of suppor for the Goodlatte proposal on the RFS.

Biofuel Groups Push Back on Renewable Fuel Standard Changes

Reducing America's consumption of renewable fuels based upon arbitrary, pre-determined thresholds for corn demand and supply ratios is unnecessary and may lead to higher prices at the pump warned leading biofuel organizations - the American Coalition for Ethanol (ACE), the American Farm Bureau Federation (AFBF), Growth Energy, the National Corn Growers Association (NCGA), the National Farmers Union (NFU), the National Sorghum Producers, and the Renewable Fuel Association (RFA).

The groups' warning came in a letter sent to Representatives Bob Goodlatte (R-VA) and Jim Costa (D-CA) following the introduction of their legislation to reduce or eliminate the volumes of renewable fuel use required by the Renewable Fuels Standard (RFS) based upon corn stocks-to-use ratios. The groups pointed out a number of flaws in the rationale for such legislation.

Speaking to concerns over high corn prices, the groups wrote, "Numerous studies have concluded that the RFS is a minor contributor to corn prices. The most recent study, a July 2011 analysis commissioned by the International Centre for Trade and Sustainable Development, found that corn prices would have been exactly the same in 2009/10 if both the RFS and Volumetric Ethanol Excise Tax Credit (VEETC) had not existed."

The groups also highlighted the inherent risk associated with tethering public policy to frequently changing corn stocks-to-use data reported by the Department of Agriculture (USDA). According to University of Illinois economist Darrell Goode, stocks-to-use ratio should only be considered as "a starting point (for estimating potential price impacts)" and as such, "the relationship between stocks-to-use and price is not consistent over time." Such an imperfect indicator of potential market conditions should not be used as the basis for policy, the groups stated.

Click here for more from these organizations and a copy of the letter that was sent

Ag Chairman Frank Lucas says It's Time for Congress to Put Jobs First

This week during The Ag Minute, Agriculture Committee Chairman Frank Lucas discusses what is at stake for farmers, ranchers, and small businesses if the Senate fails to pass H.R. 872, the Reducing Regulatory Burdens Act, before October 31.

The legislation, which passed the U.S. House of Representatives and the Senate Agriculture Committee in bipartisan votes, eliminates a costly and duplicative permitting requirement for the application of pesticides. This requirement is the result of a misguided court order, which goes into effect at the end of the month unless there is a legislative fix.

A portion of the transcript is written below.

"On October 31st, a court order will begin requiring redundant permitting for pesticide applications.

"Because pesticide applications are already regulated, this new requirement won't provide any additional environmental benefits.

"All it will do is impose substantial new costs. That slows down economic activity and hurts job growth, at a time when we can ill afford to do so.

"The House of Representatives responded by passing the Reducing Regulatory Burdens Act-H.R. 872. This bipartisan legislation would eliminate the second, redundant permitting process."

Click here to listen to Chairman Lucas' comments and the complete transcript

Getting Winter Canola Established Before Winter Dormancy- How Late is Too Late?

Dry seedbed conditions continue to exist in many parts of Oklahoma as we approach the tail-end of the canola planting window. However, we still have time to plant and have a good chance to establish winter hardy canola stands. Canola plants require an adequate amount of time (4-6 weeks) to develop leaf area and begin photosynthesis to enable carbohydrate storage in roots.

Ideally, a large tap root (1/2-inch diameter) would provide adequate carbohydrate reserves in the root to help the plant survive. Winter canola will tolerate freezing temperature for short periods of time as long as the temperature does not get below 25oF. Leaf margins may be hurt but as long as the crown remains unharmed the plant is alive and will begin re-growth as soon as temperatures warm up. When dormancy occurs, canola can easily tolerate freezing temperatures for long periods of time.

Maximum winter hardiness in canola has been observed when plants have 7-8 true leaves and the canopy height is about 10 inches. True leaves are defined as leaves that emerge from the growing point (crown) after the two cotyledon leaves emerge from the soil.

A new leaf will appear every 4-7 days during the fall before winter dormancy. Even emergence with winter canola is not as important as with crops such as corn and sorghum. After canola re-growth begins in the spring plants should look similar. Winter survival is dependent in a large part upon carbohydrates stored in the plant's roots.

Click here for more information on canola planting this fall

Panama Canal Expansion Could Improve Competitiveness of U.S. Soy

An extensive study coordinated by the United Soybean Board's (USB) Global Opportunities (GO) program expects a new, larger shipping lane through the Panama Canal to double the area that draws U.S. soy to Mississippi River destinations eventually destined for export through Gulf of Mexico ports.

The soybean checkoff-funded study, conducted by Memphis, Tenn.-based Informa Economics, says the expansion of the Panama Canal, expected to be completed in 2014, "will eventually alter trade lanes" in the United States and other countries. The in-depth examination, recommended by the checkoff-funded Soy Transportation Coalition (STC), claims a new, larger shipping lane for the nearly 100 year old short-cut between the Atlantic and Pacific Oceans will:

-Expand the average area that draws U.S. soy and grain to the Mississippi River for barge transit to central Gulf of Mexico ports from 70 miles to over 150 miles

-Increase the total volume of U.S. soybeans and grain moving through the Panama Canal to export markets by 30 percent

-Result in an approximate 35 cents per bushel savings for elevators within the range of central Gulf of Mexico ports, assuming the ports will dredge to ensure at least a depth of 45 feet to handle larger ships capable of moving through the expanded Panama Canal.

"Much of the talk about the impact of the Panama Canal expansion has been speculation," says USB Vice Chair Vanessa Kummer, a soybean farmer from Colfax, N.D. "The soybean checkoff initiated this study to assemble credible data and scenarios that will allow U.S. soybean farmers and the rest of the U.S. soy industry to better understand and prepare for what may result from a much larger Panama Canal."

Click here for more information on this new potential for U.S. soybeans

Oklahoma Selected to Receive Grant to Boost Economic Development

Agriculture Secretary Tom Vilsack announced investments in 33 states and one territory that will create jobs and improve the quality of life in rural communities across the nation.

"These projects not only provide needed infrastructure in rural communities, they contribute to the Obama administration's continued efforts to create quality jobs and improve the nation's economy," Vilsack said. "The projects announced will help strengthen facilities and amenities in rural towns and small cities."

In Wilburton, Okla., Eastern Oklahoma State College was selected to receive a $36,310 grant to help expand and update the college's meat processing plant.

The $46.8 million is being funded through the USDA Rural Development Community Facilities Program. Funding of individual recipients is contingent upon meeting the terms of the loan or grant agreement. USDA Rural Development's Community Facilities Program helps finance essential community facilities for public use in rural areas. These facilities include child care centers, hospitals, medical clinics, assisted-living facilities, fire and rescue stations, police stations, community centers, public buildings and transportation. Through this program, USDA ensures that such facilities are available to all rural residents. These funds are available to public bodies, non-profit organizations and federally recognized Indian tribes.

Click here for a link to the complete list of projects selected by the USDA

Looking for Rain in Driest Parts of Western Oklahoma.

Already tiny amounts of preciptiation have been seen in Western portions of the state- and there is a promise for more by Friday night into Saturday and Sunday. According to the Oklahoma Mesonet- the rainfall amounts to this point are in the hundredths of an inch.

Today- it may be more of a wind event. In the National Weather Service Forecast Discussion- they say of today's weather- "Our attention turns quickly to large storm system approaching from the west. Initial impact will be to drop surface pressures in the lee of the Rockies which will in turn create windy conditions across the southern plains. Will need to go with a wind advisory for portions of Western and Northwestern Oklahoma today as sustained wind speeds of 30 mph and frequent gusts over 40 mph seem likely by late morning through the afternoon hours."

Significant rainfall is STILL in the mix by Friday evening and Saturday- the question in the weather service's collective braintrust is- how far east will the rain track. Again- back to the NWS and their Forecast Discussion- "much better opportunity for precip will hold off until late friday into friday night across western sections of Oklahoma into western north Texas. Still quite a bit of difference in eastward progression of precip over the weekend" between two of their major weather models.

Chances of rainfall in western Oklahoma seem to be as high as 60 to 70% on Friday night and Saturday- meanwhile the northeastern counties of the state are only looking at 20% chances of rain Saturday night and Sunday. In the McAlester area, chances are only 20% in Little Dixie for rain- and that's only seen in their Sunday forecast.

Click here for the realtime Precipitation Map from the Oklahoma Mesonet for the state- I have it set as the 4 day model so it will show everything from last night right into the weekend.

SPCC Enforcement Looms

We wanted to clarifiy our reports from earlier this week on the SPCC regulations that are already on the books. We implied that these were new regs- they are not new- what is new is the EPA intent to get really nasty in their enforcement on those who do not have a plan and should have one. The folks at One Resource Environmental expalin it this way- "SPCC is not a new regulation. It has been in effect since 1974. Farmer's who were in business before August of 2002 are supposed to have an SPCC plan already, however, 99% do not have one and are already out of compliance. The compliance deadline of November 10, 2011 has been imposed because of this lack of conformation. ALL farmer's who fall within the storage thresholds and could reasonably be expected to have a spill on their property reach water MUST comply by the deadline or face fines beginning at $1,000 per day if they are found not to have a plan." If you want to know more- click on the One Resource Environmental link in the next paragraph.

Our thanks to Midwest Farms Shows, PCOM, P & K Equipment/ P & K Wind Energy, Johnston Enterprises, American Farmers & Ranchers ,One Resource Environmental- operators of FarmSPCC.Com, and KIS Futures 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 $11.34 per bushel, while the 2012 New Crop contracts for Canola are now available are $11.40 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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