Texas Cattle Feeders Association President Says Back-to-Back Tough Years Hitting Feedlots Hard 

Ross Wilson, president and CEO of the Texas Cattle Feeders Association, says 2011 was a tough year for feedlots his organization represents in Texas, Oklahoma, and New Mexico. He says 2012 is turning out to be tough as well.

He spoke with us at the Summer Cattle Industry Conference in Denver and says the ongoing drought gets a lot of the blame.

"This drought continues to get larger, it seems, day by day. It's affecting an early corn crop in a more dramatic way than it probably would have in previous years. And we've all seen what's happened to corn prices. The saving grace coming out of a very tough 2011 in Texas and Oklahoma, the southwestern part of the United States with dwindling cattle numbers, was that our ration prices might be OK.

"That's gone out the window and production costs have escalated. Cattle coming out of the feedyards are losing at least $200 a head and, in some instances, more. So this is really going to test the intestinal fortitude of a lot of cattle feeders and a lot of livestock producers. They have it, but it's unfortunate after what we've come out of 2011 and now we've got to face a similar situation in 2012."

You can read more from Ross Wilson or listen to our complete interview by clicking here.

House Ag Committee Chair Lucas Defends One Year Extension as Transition to Full Five Year Plan- With Drought Help for Livestock Producers 

It appears that the full five year 2012 Farm Bill will not get floor time in the House of Representatives before the August recess, but House leaders will allow consideration of package that includes a one-year extension of the 2008 farm bill.

House Agriculture Committee Chairman Frank Lucas said, "Next week's schedule calls for consideration of a package that includes disaster assistance programs and a one-year extension of current farm policy. It is critical that we provide certainty to our producers and address the devastating drought conditions that are affecting most of the country and I look forward to supporting and advancing this legislation."

The cost is projected to be $621 million over 10 years, saving $399 million. 

We talked with Congressman Lucas as he prepared to speak to a GOP event in Canadian County on Saturday evening- and called this a "two track approach" to farm policy- this one year extension that will included vitally needed disaster assistance for livestock producers as well as his efforts to continue to move forward with regular order and obtain floor time to debate and pass his Committee's 2012 Farm Bill.  

Lucas acknowledged that there is a great deal of talk about taking this one year extension, once passed by the House, into a Conference with the Senate and attempting to craft a deal among the House and Senate Ag Leadership, but indicated that as of that moment anyway, that was what he called a "rumor" and that the measure is what it is- Disaster help in a one year extension.   

If I might interject my opinion at this point- I would not expect the Chairman to ever admit that such a pathway was available to be taken- as that would give any and all opponents of the Senate and House Ag Bill efforts to date a very large reason to adamantly oppose this Disaster Package wrapped around a one year extension. Collin Peterson can talk about it- Debbie Stabenow can speculate and call for the House to act- but Lucas cannot  make such statements.   

The key thing to watch on Wednesday is how Ranking Member Peterson votes- and if he has worked to bring some Democrats with him- if he supports the extension- it MAY mean he has good reason to believe that a Conference for a five year bill can work. 

Click here for our exclusive audio with Chairman Lucas from Saturday- we have links within the story to the full 48 page bill as well as a transcript of our interview with Mr. Lucas that was done by our colleagues over at FarmPolicy.Com.  

Speaking of FarmPolicy.Com, their Monday morning update leads off with our interview- and goes into a lot of other perspectives which help pull together where we stand in advance of this Wednesday debate and vote- click here to read.   

NCGA President Says American Agriculture Needs a New Farm Bill

National Corn Growers Association President Garry Niemeyer released the following statement in response to a decision by the House of Representatives to take up a one-year extension of the farm bill:

"America's farmers need a new farm bill that will allow them the ability to make sound business decisions for the next five years. An extension of current law fails to provide the needed level of certainty. The National Corn Growers Association has strongly advocated programs, such as direct payments, be reformed into more efficient farm policy that will be responsive to taxpayers.

"It is important to get to conference and pass a bill before the current law expires September 30. Continuing outdated farm policies will negatively impact agriculture, the federal budget, consumers and the economy."
 

Extreme Potential for Wildland Fires Exists Across Oklahoma

Oklahoma Forestry Services (OFS), a division of the Oklahoma Department of Agriculture, Food and Forestry wants the public to be aware of the increasing potential for extreme wildland fires to occur across much of the state.

"Conditions are deteriorating," said Oklahoma State Forester George Geissler. "Fire behavior is nearing the point where firefighters' initial attack will be unsuccessful and long duration wildfires can happen."

Although the occurrence of wildfires to date has been lower, exceptionally dry fuels, heat advisories, increasing winds and no expectation for substantial rainfall results in increased fire danger situations similar to that of last year.  

"Caution should be taken with any outdoor activities," said Oklahoma Secretary of Agriculture Jim Reese. 

Click here for a link to the OFS website listing county burn bans across the state.

Oklahoma Company Among Advanced Biofuel Producers Receiving Ag Department Payments

Agriculture Secretary Tom Vilsack announced payments for 125 advanced Biofuel producers across the country to support the production and expansion of advanced biofuels from a wide variety of non-food sources, including waste products. Among those companies receiving payments is High Plains Bioenergy, LLC, based in Guymon, which received $1,628,461 for biodiesel transesterification

"Advanced biofuels are a key component of President Obama's 'all-of-the-above' energy strategy to reduce the Nation's reliance on foreign oil and take control of America's energy future," said Vilsack. "These payments represent help spur an alternative fuels industry using renewable feedstocks grown in America, broadening the range of feedstock options available to biofuels producers, helping to create an economy built to last."

The funding is being provided through USDA's Bioenergy Program for Advanced Biofuels, which was established in the 2008 Farm Bill. Under this program, payments are made to eligible producers based on the amount of biofuels a recipient produces from renewable biomass, other than corn kernel starch. Examples of eligible feedstocks include but are not limited to: crop residue; animal, food and yard waste material; vegetable oil; and animal fat. Through this and other programs, USDA is working to support the research, investment and infrastructure necessary to build a biofuels industry that creates jobs and broadens the range of feedstocks used to produce renewable fuel.
 

Click here to read more.

Farming, Food, and Climate Activists Call On Ag Secretary to Discuss Climate Change

In light of the drought currently sweeping the nation, climate-change activists from Forecast the Facts and Food Democracy Now! are calling on Agriculture Secretary Tom Vilsack to address the issue of climate change.

Organizers from the two groups circulated a petition calling on Vilsack to discuss what they believe to be connections between climate change and the current drought. They also want Vilsack to address the implications of climate change to the future of farming in America.

"The science tying climate change to longer and more severe droughts is clear," claims Daniel Souweine, Campaign Director for Forecast the Facts. "In fact, Secretary Vilsack's own Department contributed to a 2009 report warning that manmade climate change would create worsening water shortages, longer heat waves, and deeper droughts in the Great Plains. It's simply not credible for Vilsack to now claim he is unaware of the science, and it contradicts the USDA's mission of providing farmers with the scientific information they need to do their jobs."

You can read more of this story on our home page.  Just click here.

Names of Note- and a Beef Buzz to Boot

Several folks that we wanted to salute and say a big Howdy to- winners of honors from the 60th Annual Oklahoma Cattlemen's Association Convention in Midwest City.  At the top of the list- we say congratulations to Lowell Hobbs of Haskell, Oklahoma- named as the OCA Cattleman of the Year. OCA honored two gentlemen with their 2012 Distinguished Service Award- Oklahoma Secretary of the Environment Gary Sherrer and retiring Dean of the OSU Division of Agriculture and Natural Resources, Dr. Bob Whitson. The Allied Industry person honored by the group for 2012 is Kevin Johnson of Merck Animal Health, while the All Around Junior Cattleman was Levi Shelby from Madill- click here to read about his winning the Senior Division of the state Beef Ambassador Contest back in June of this year.  The Cattle Women also had a couple of awards they handed out- one to Nancy Buckminster of Lahoma, named as their 2012 CattleWoman of the year, while Steve McKinley with the OCA staff was saluted with their 2012 Honorary CattleWoman Award.  

We are a little more than halfway through 2012- and it already feels like the US beef cattle market has absorbed a full year or more of market shocks. Don Close with Rabobank was the Market Analyst Keynote at the 2012 Oklahoma Cattlemen's Association, and just a few minutes before he took the stage at the OCA concluding session, we sat down and talked with him about a variety of market related issues. Part one of that interview is our Monday Morning Beef Buzz- and you can click here to read more and take a listen.