Lucas and Peterson Release House Farm Bill 

Chairman Frank Lucas of Oklahoma and Ranking Member Collin Peterson of Minnesota released a discussion draft of the Federal Agriculture Reform and Risk Management Act (FARRM)- their "mark" of the 2012 Farm Bill that will be considered by the House Ag Committee next Wednesday, July 11. The measure differs from the Senate passed Farm Bill in notably the Commodity Title and the Nutrition Title. 

First in the Commodity Title- the Senate put all of their farm safety net "eggs" into the single basket of a shallow loss program- backed up by crop insurance. The House proposal goes with a variation of the shallow loss program- not quite as generous as the Senate plan- but also offers a second choice called the Price Loss Coverage- a remake of the Counter Cyclical Program of previous farm laws- it includes higher target prices that reflect the new higher commodity prices of recent years and can be selected by farmers on just some crops or on an entire farm- different than the ACRE program of the 2008 which was an all or nothing deal. The House shallow loss program is called the Revenue Loss Coverage- or RLC.  The Leadership claim savings in this part of the farm bill draft of $14 billion. 

In the Nutrition title- the House goes for more savings than that extracted by the Senate's four billion dollar number over ten years.  The House contends that by simply making folks applying for SNAP benefits to follow the law and not be too easily automatically qualified- you get significant savings. Ranking member Collin Peterson indicated that he would had found different ways to save money on Nutrition programs- but acknowleged that those cuts are a means to the end- and that is to keep a farm bill moving first through Committee next week- then in some miraculous way- across the floor of the House.

Charles Abbott in his Reuters piece on the release of the House Ag Committee plan says "The House Agriculture Committee was scheduled to vote on the package next Wednesday.  After that, the House has 18 days available for floor debate before the 2008 law expires on Sept 30. Analysts see low odds for enactment of a new law on time."

Reaction was not immediate from the farm groups and others on this release coming one day after a major US holiday- Chairlady of the Senate Ag Committee, Debbie Stabenow, cheered her House counterparts for farm bill movement- but did express misgivings about the deeper Nutrition savings- click here for her statement.

The Environmental Working Group blasted Lucas and Peterson for the deeper cuts in nutrition and what they considered an expansion of farm program subsidies compared to the Senate plan- click here for their statement.  The National Farmers Union and their President, Roger Johnson, said they were pleased with the release- saying  the measure was another sign of moving the overall process forward- click here for their statement.  The National Corn Growers only said they would study the proposal and compare it to the Senate version (they are Mega supporters of Shallow Loss and see no need for anything else in the Commodity Title) and the American Farm Bureau was SILENT in that they offered no statement or reaction through early this morning.

Two groups that like what they saw at first glance- the National Cotton Council and the National Sorghum Producers.  Both praised the House leaders for offered choice in the commodity title and Sorghum also likes the idea of price protection that the RLC provides.

The House Ag Committee staff provided us a link late on Thursday afternoon regarding the actual budget scoring of the House Ag Committee proposal- this bill as drafted would save $35.1 billion over a ten year period- click here for the details on the CBO website.

Click here for the statements released by Chairman Lucas and Ranking member Peterson- there are links on to the full text of the bill and a handy dandy summary of the measure as well.

Over Sixty Percent of Oklahoma Back Under Drought Designation 

Drought continued to expand and intensify across Oklahoma over this past week as the heat continues unabated for now. Associate State Climatologist Gary McManus does indicate that there could be some relief by early next week- with the arrival of cooler air and even some rain.

The latest Oklahoma Drought Monitor map shows the the state jumped from 48% drought coverage to 61%, although the entire state is classified as being at least abnormally dry.

In particular, coverage increased across eastern and western Oklahoma while the center corridor of the state managed to hold onto the D0 designation. The reasons are obvious, of course, with the relentless heat, wind, sunshine and lack of rainfall continuing to leech moisture from the soil and surface reservoirs. The statewide average rainfall total over the last 30 days was 1.78", 2.26" below normal (or about 44% of normal). That's the seventh driest such June 5-July 4 period since 1921.

To read more and see the latest drought-coverage map, please click here.

USDA Rainfall Insurance Protects Against Dry Weather

Farmers and ranchers can control many aspects of the farm or ranch business. For instance, a rancher can dictate the calving season, controlling when and how their cattle are bred. They can determine what types of health care programs their cattle receive and the types of forages used for grazing and hay production. However, one production variable that ranchers have no control over is the weather, which creates substantial production risk.

In Oklahoma and Texas, dry spells and prolonged drought create the greatest threat of production risk for cattle producers. During dry spells and drought, available forage becomes scarce and sometimes nonexistent. Consequently, baled hay becomes very expensive. In some cases, it becomes too expensive to purchase, forcing ranchers to reduce cattle numbers.

In response to the production risk caused by dry weather and prolonged drought, a relatively new program sponsored by the Risk Management Agency (RMA) of the United States Department of Agriculture (USDA) provides pasture, rangeland and forage insurance for pastures that are grazed or used to produce hay. The programs are based on either a vegetation index or rainfall index. This article focuses on the potential benefits and costs associated with the rainfall index, the index used by RMA for ranchers operating in Oklahoma and Texas.

Click here to read more about USDA rainfall insurance.

Farm Service Agency Moves to Electronic Check Processing

The FSA is moving towards an electronic method for processing check payments from customers, Francie Tolle, executive director for the Oklahoma Farm Service Agency (FSA), announced.

Using the electronic method, when a producer submits a paper check payment, either in person or through the mail, the check will be converted into an Electronic Funds Transfer (EFT) using Over the Counter Channel (OTCnet), a web-based application.

According to Tolle, OTCnet will be implemented in a select number of counties throughout the state for 2012, but all counties will be transitioned into OTCnet by the end of 2013.

"It is important for producers to have sufficient funds in their bank account because the electronic transfer of funds could occur within 24 hours," said Tolle. 

You can read more of this story on our website by clicking here.

Maximum Soybean, Peanut Yields Dependent Upon Timely Irrigation

With high temperatures and little moisture in the forecast, Chad Godsey, oilseed cropping specialist with Oklahoma State University, says it is time to pay close attention to soybean and peanut crops. Irrigation is critical for optimal yields and preventing stress calls for good management throughout the growing season.

Godsey says the amount of irrigation required to achieve maximum soybean yield depends on many things such as yield potential of the cultivar, soil fertility, and weather conditions. In general, the amount of supplemental irrigation needed for soybean in Oklahoma may range from as little as 8 inches per year in the northeastern portion of the state to more than 13 inches in the southwest. Water stress at some stages of plant development will have a greater effect on soybean yield than at others. If adequate soil moisture is available to germinate and establish a good stand, moderate water stress in the early growing season has a mild effect on yield. If good subsoil moisture is available throughout the root zone, the plant root system will develop normally and irrigation should not be needed for the first six weeks after planting.

Click here to read more of Godsey's recommendations for soybeans.

Well-watered peanuts will use as much as 25 inches of water per season. The effective rainfall in the major peanut growing areas of the state during the season is approximately 10 inches in a normal growing season. This means as much as 15 inches of irrigation water could be required to keep the crop in a well-watered condition. There are three stages in the peanut life cycle when excess moisture stress will cause a reduction in the quantity or quality of nuts produced.

More of Godsey's recommendations for peanut irrigation are available by clicking here.

Crop Weather Conditions, Higher Demand Figures Send Grain Prices Higher, Anderson Says

The USDA lowered corn and soybean condition ratings in its latest report. The markets had expected a five percent drop in crops in the good and excellent categories, but the USDA figures showed an eight percent drop which sent prices higher, says Kim Anderson, Oklahoma State University small grains specialist.

In an interview with SUNUP's Lyndall Stout, Anderson says the International Grains Council also lowered world wheat production and raised estimates on corn and feed grain use, also sending prices higher. How much higher can grain prices go, and when will they peak?

"That's the million-dollar question," Anderson says. "Now, Allendale this week came out with a report. They said when you look on short crops, the price normally peaks early in short crop years. If you look at corn on the average in drought years, that price is going to peak in late August and early September. Allendale estimates that the Chicago Board of Trade December corn price is going to peak around $7 to $7.25.

"Wheat will probably follow the same months with peaking in late August and early September." 

You can catch more of Kim Anderson's analysis and a lineup for this week's SUNUP by clicking here.

Tulsa Farm Show Livestock Skills Contest Qualifying a Part of the Big Three Field Days 

Students from across Oklahoma will be making their way to Stillwater July 17-19 for the 2012 edition of the Big Three Animal Science Field Days- sponsored by the Animal Science Department of OSU- with the Sheep Field Day being held on Tuesday, the Beef Field Day on Wednesday and the Swine Field Day on Thursday. 

The folks with the Midwest Farm Shows and specifically the Tulsa Farm Show will be back again this year- as they will be offering FFA members a chance to participate in their annual Livestock Handling Skills Contest. John Sampson with Midwest Farm Shows provided us with a few details in a recent email- "We will be testing to qualify for the finals of the Livestock Handling Skills Competition during the Big 3 Field Days on the afternoon of Wednesday, July 18 in the Animal Science Building.  Teams may begin testing any time between noon and 4 pm. Teams are made up of 3 students from the same school.  The top 2 team scores from each of the 5 FFA districts will advance to the final held during the Tulsa Farm Show on Friday December 7, 2012.  All ten teams of 3 that qualify for the final will have earned a minimum of a $100 scholarship."  Click here for more details and plan on being in Stillwater to take a shot at qualifying for this great contest coming up in December.