Obama Adminstration Focuses on Expanding Drought Assistance for Producers 

Agriculture Secretary Tom Vilsack called on Congress to work quickly to enact measures to assist livestock and grain producers hit hard by the deepening drought.

In a White House news briefing, Vilsack told reproters that 78 percent of the corn crop and 77 percent of the soybean crop in the US are being grown in counties that are considered to be in drought. He said it is too early to tell how badly yields will be affected, but the markets are growing increasingly uneasy. He said the price of corn has risen 38 percent since June 1st, and soybeans have climbed 24 percent.

To assist farmers, Vilsack said the Obama administration has streamlined the disaster assistance process and has lowered interest rates on disaster loans from 3.75 percent to 2.2 percent. He also said producers would be allowed to hay or graze CRP acres and penalties for doing so would be drastically reduced.

With the addition of 39 counties to the list of those under a disaster declaration, Vilsack said 1,336 counties-or about 1/3 of all counties in the U.S.-are now affected by the drought

Food prices will undoubtedly be affected, the secretary said, but the results will not be immediate. As cattle producers begin to liquidate their herds, Vilsack said, the price of meat should actually fall before rising toward the end of the year and into 2013.

He said crop insurance should cushion the blow for many farmers, historically covering about 72 percent of their losses. He said livestock producers will feel the biggest bite due to the fact that livestock disaster assistance programs ended last year.

"It is the livestock producers who are in the biggest and most troubled situation because they simply don't have any disaster program. There's no such thing as 'crop insurance' for livestock," he said.

To read more or to hear the secretary's full news conference, please click here. 

Pork Board, Pork Council Take Issue With Animal Rights Activists' Video 

The National Pork Board and the National Pork Producers Council are both taking issue with a video produced by Mercy for Animals purporting to show pigs being mistreated by hog farmers.

The NPPC said the undercover video from a Minnesota hog farm is from an animal rights group that, along with the Humane Society of the United States, has as a goal ending food-animal production in this country. Both groups repeatedly have grossly misrepresented what is shown in such videos and not told the truth about how farmers raise and care for their animals.

The National Pork Board said, "Pig farmers have a strong track record of animal husbandry practices that have been developed with the help of research on what is best for the animal. And as an industry, we are always seeking to improve those practices."

Click here to read more from the National Pork Producers Council.

You can read more from the National Pork Board and find links to two videos on the practices that animal rights activists misrepresent by clicking here.

Energy Company Partners with Wildlife Conservation Department to Minimize Impact to Lesser Prairie Chicken

Plains and Eastern Clean Line Oklahoma LLC (Clean Line) and the Oklahoma Department of Wildlife Conservation (ODWC) signed a memorandum of understanding to create a collaborative working relationship for lesser prairie-chicken conservation. The lesser prairie-chicken was identified as a species of greatest conservation need in the Oklahoma State Wildlife Action Plan and is a candidate species for listing as a federal threatened or endangered species. Under this agreement, Clean Line and ODWC will work together to minimize any adverse effects to the species from the planned Plains & Eastern Clean Line transmission project.

The ODWC has a spatial planning tool that allows industry to avoid, minimize, and offset habitat impacts in selecting sites for wind farm and transmission line development. Under this MOU, Plains and Eastern Clean Line will cooperate with the ODWC to protect, enhance, and/or restore lesser prairie-chicken habitat in northwest Oklahoma and the Panhandle in an attempt to offset any unavoidable adverse effects. This agreement solidifies a common goal between both agency and industry to promote lesser prairie-chicken conservation and sustainable energy development in Oklahoma. Clean Line is participating in ODWC's Oklahoma Lesser Prairie-Chicken Conservation Action Plan, as well, in an effort to demonstrate to the U.S. Fish and Wildlife Service that all reasonably practicable actions are being implemented to ensure the viability of this species.

Click here to read more.

NCBA Testifies Against Federal Regulation of Farm Dust

The National Cattlemen's Beef Association (NCBA) made clear its position on any attempt by the Environmental Protection Agency (EPA) to lower the coarse particulate matter (PM) standard as part of the National Ambient Air Quality Standards (NAAQS) during one of two public hearings hosted by EPA.

"NCBA represents tens of thousands of America's cattlemen and women who provide much of the nation's supply of food. Our members are proud of their tradition as stewards and conservators of America's lands and waters," said Ashley McDonald, NCBA Deputy Environmental Counsel, during the hearing. "Cattle producers across the country would be adversely affected if EPA lowers the dust standard, especially those in the West, Southwest and Midwest, and we urge the agency to retain the current standard as proposed."

Every five years, the EPA is required to review scientific studies associated with "criteria pollutants" regulated under the NAAQS of the Clean Air Act to determine if the pollutant is regulated appropriately.

For more on this story, click here.

Rabobank Anticipates Historically Tight Beef Supplies Will Impact Future of Lean Finely Textured Beef

As the U.S. rapidly enters a period of the tightest beef supplies in modern history, researchers at Rabobank's Food & Agribusiness Research and Advisory group predict the portion of U.S. beef supply that was made up of Lean Finely Textured Beef (LFTB) will, following necessary industry changes, return to the U.S. food supply. The group cites the industry's intolerance of wasting the valuable product as the primary reason for the return.

"In the tight U.S. beef market, beef processors consider two percent of the beef supply as simply too much to waste," notes report author Don Close, Vice President, Food and Agribusiness Research & Advisory, Animal Protein.

Lower production levels, due in part to drought in the U.S., and increased global export demands are contributing to the tight market.

Click here to read more on the future prospects of LFTB. 

Smaller Placements May Be Key Feature of Friday's Cattle on Feed Report

The US Department of Agriculture's July Cattle on Feed numbers wll be released on Friday afternoon after the markets close for the week- and the general expectation is that fewer cattle were sent to the feedlots in the US in June of this year- compared to 2011. Analysts believe that the larger placements of cattle forced off pastures across the midwest because of this summer's drought will be seen in July and perhaps the August Cattle on Feed reports.

One market watcher who subscribes to that train of thought is Jim Robb with the Livestock Market Information Center. On today's Beef Buzz, we have his take on both the Cattle on Feed numbers as well as the mid year Cattle Inventory Report that USDA will also issue on Friday afternoon at 2 PM central time.

Robb thinks both placements and marketings this past month were well under that of 2011- perhaps as much as six to seven percent less in June 2012 than in June 2011. His pre-report guess on the overall number of cattle in the nation's feedlots is just a little above the total number on feed as of July first of last year- he foresees an on feed number that is 1.5 to 1.5 percent higher than July 1, 2011.

Click here for the average pre report guesses that are out for this week's report- and for a chance to listen to Jim Robb's assessment of what USDA will be saying Friday in both the Cattle on Feed as well as midyear Cattle Inventory reports.

This N That- Wheat Growers NOT Happy with Senator Coburn's Attack on MAP Funding, Are the Japanese Finally Moving BSE Related Standards- and a Don Close Observation

The Oklahoma Wheat Growers Association are objecting to the continuing attacks on the USDA Market Access Program being made by Oklahoma's Junior Senator, Dr. Tom Coburn.  Coburn says the MAP funding is unneeded pork- and he has offered several amendments this year in various venues to zero out funding of the cost share program that helps to promote US farm goods in overseas markets.  

Past President of the OWGA, Jimmy Musick of Sentinel, says of the MAP program "MAP is a very efficient, cost-effective program, returning $35 for a $1 investment, according to a study done by IHS Global Insight at USDA's request. These dollars go into farmers' pockets, to our local farm economies and to the gross domestic product.

"More than half of the U.S. wheat crop is exported and more than fifty percent of the Oklahoma wheat crop is exported. The successes of programs like MAP directly affect the price received by the Oklahoma wheat farmers and the contribution they can make to the Oklahoma economy."

Click here to read the rest of the Jimmy Musick statement about this long standing program that continues to be a target of GOP lawmaker Coburn.

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Are the Japanese ready to ease the restrictions on US Beef that sprang from the Cow that Stole Christmas back in December 2003?  The cattle futures trade pondered that question yesterday morning- and decided the news was good from Tokyo and that helped the Live Cattle and Feeder Cattle futures to have a strongly higher day on Wednesday.   

At the heart of the news is that the "Food Safety Committee" authorized by the Japanese government is set to hold their seventh meeting on the subject next week.  And, according to a Japan Times webstory- they may decide on the issue here in July or make a final decision in August.  IF they decide to allow beef imports from the US from older cattle (30 months or less versus the current 20 months or less), that change could be in place by November or December of this year.  And, it's likely that beef shipments to Japan will increase significantly. 

We talked to folks at the National Cattlemen's Beef Association- and they see little chance of much movement before early in 2013- but obviously Mr. Market got really excited yesterday, and folks like Tres Knippa (tweets as CMETrader)  pointed to this story as the driving factor in the Cattle futures jump yesterday.

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Note in the Rabobank story about Pink Slime (LFTB) that is a couple of stories above in today's email- we quote Don Close of Rabobank.  Don will be in Midwest City next weekend- as next Saturday morning, he will be Market Analyst keynoter for the 2012 Oklahoma Cattlemen's Association convention and trade show- click here to see the agenda of the OCA meeting coming July 26-28.