Federal Reserve's Agricultural Finance Databook: Farm Lending Rises with Higher Production Costs 

The summer drought spurred higher feed costs and farm lending activity at commercial banks, according to the Federal Reserve System's Agricultural Finance Databook.

During the second quarter, farm operating loans rose at their fastest pace in five years. An August survey of national commercial banks revealed additional demand for short-term farm operating loans in the third quarter as input costs soared. Lending to livestock operations jumped as feed costs spiked and herd liquidations boosted loans for feeder cattle. Higher fuel costs to power irrigation systems and harvest crops also increased lending to crop producers.

Drought conditions had little impact on farmland markets as markets followed seasonal trends. Many agricultural bankers expected farmland values to stabilize until after harvest, when more farms would be put up for auction. The strongest farmland value gains emerged in the central Plains, where irrigation is prevalent, and the northern Plains, where land lease revenues from mineral rights continue to climb.

Flush with deposits, bankers reported having ample funds to meet additional loan demand. Higher farm loan volumes helped lift loan-to-deposit ratios off recent lows, and competition among agricultural lenders for qualified borrowers remained heated. Farm loan delinquency rates declined further, and bankers expected loan repayment rates to remain solid as high crop prices compensate for lower yields and crop insurance payments support farm income. 

Oklahoma Mesonet Cattle Comfort Advisor Useful Tool During Quick Shifts in Weather 

For cattle producers, quick shifts in fall and spring weather can be particularly stressful on a herd's health and conditioning, and that is where the Oklahoma Mesonet Cattle Comfort Advisor can help.

"The cattle comfort advisor is now running year round," said Al Sutherland, Oklahoma State University Cooperative Extension assistant specialist with Mesonet. "This means that heat stress in one part of the day can be monitored, along with quick shifts to cold stress."

To stay on top of quickly changing conditions over large areas, the Mesonet Cattle Comfort Advisor provides minimum and maximum statewide maps for the two most recent days, the current-day forecast and the forecast for the subsequent two days.

For a detailed view of cattle comfort at a local ranch, time series graphs are available. The Past 10 Days and Forecast map provides hourly cattle comfort information for the past 10 days based on Mesonet data and a forecast based on the National Weather Service North American Mesoscale Forecast.

Click here for more.

Oklahoma Farm Bureau Supports State Question 766

Passage of State Question 766 is vital to Oklahoma farmers and ranchers, who could end up paying new property and business taxes if the voters were to reject it.

"Our state's farmers have been hit hard in recent years with drought and the economic downturn," said Oklahoma Farm Bureau President Mike Spradling. "The prospect of numerous new property taxes would make it difficult to recover from these difficult times."

SQ 766 exempts all intangible personal property from ad valorem taxation. The ballot measure was necessary following a 2009 state Supreme Court decision which opened the door to widespread taxation of intangible property.

Examples of intangible property include brand names and logos, cooperative agreements, leases, water and land use rights, unused mineral rights, regulatory approvals and exemptions, supplier contracts and distribution rights. 

You can read more by clicking here.

 

Drought May Skew Soil Test Results, Agronomist Says

Growers conducting soil tests this fall may be surprised at unexpectedly low potassium (K) levels. It's likely, however, that fields tested in drought-stricken areas have plenty of nutrients waiting to move back into the soil, according to DuPont Pioneer agronomy experts.

"The K is actually quite safe in the plant residues, so growers shouldn't be alarmed if soil test levels of this nutrient are lower than expected. Just be aware that more nutrients will be released into the soil with precipitation," says Andy Heggenstaller, DuPont Pioneer agronomy research manager.

With little rain on most fields in 2012, K, absorbed by corn plants during the growing season, has not yet been released back into the soil from deteriorating corn stalks. In a drought year, K also can become fixed between clay layers until water moves through the soil again. Expect that K test levels will increase to more normal values if you can wait to sample following a significant fall rain event.

"Some growers may think it's a better idea to wait and sample soil in the spring because it will give them a more reliable nutrient reading," says Heggenstaller. "But I would caution against spring sampling unless this is your normal practices, because you would end up comparing apples and oranges and couldn't rely on previous soil tests as a basis."

Click here to learn more.

 

Women in Ag Conferences Slated

Several events targeted to women in agriculture are being jointly planned by Oklahoma State University Cooperative Extension and the United States Department of Agriculture's Farm Service Agency (FSA) for November.

Each conference will offer a variety of sessions, with topics ranging from insurance products to contracts and leases to marketing strategies. Participants will be engaged in improving skills to manage their business risks, said Damona Doye, OSU Cooperative Extension farm management specialist.

"The one-day conferences will provide the latest information on topics that empower women to solve issues and concerns of importance to them, their families and communities," said Doye. "Each conference is tailored to agricultural interests in the local community." 

Click here to read more and find a full listing of all of the upcoming Women in Ag Conferences.

Jim Rutledge Inducted into the National 4-H Hall of Fame

Jim Rutledge recently was inducted into the National 4-H Hall of Fame for his lifetime achievements and contributions to 4-H. Honored by the National Association of Extension 4-H Agents (NAE4-HA), Rutledge was one of 16 people inducted during the ceremony held near Washington, D.C., at the National 4-H Youth Conference Center in Chevy Chase, Md.

"NAE4-HA is proud to acknowledge the outstanding 2012 National 4-H Hall of Fame honorees for the passion, dedication, vision and leadership they've shown toward our young people during their many years of service to 4-H," said Debbie Nistler, NAE4-HA president.

Rutledge was honored for more than 40 years of professional and volunteer service to the 4-H movement in America. During his career he worked in Wisconsin, Wyoming, Oregon and Oklahoma. He began his career as a county 4-H educator and concluded his full time professional work with 15 years as a State 4-H Program Leader. For the past eight years he has worked part time in support of the Oklahoma 4-H Foundation, primarily as the executive director. Rutledge has worked in the State 4-H Office in Stillwater for nearly 19 years. 

You can read more about Jim Rutledge and his award by clicking here.

 

As Halloween Arrives- Arkansas Cattle Producers Consider 2012 Weather a Dirty "Trick"- But There is a "Treat" Today From President Obama

Our friend Keith Good at FarmPolicy.Com watches for farm related agricultural news all over the web- and discovered an update from earlier this week in Arkansas about the 2012 Drought and Beef Cattle Production in that state.  As you may know- a lot of the beef cattle numbers in Arkansas are in the far northwestern corner of their state- right up against Oklahoma SO they share a lot of common ground with us in Oklahoma- especially our producers in Green Country.

Keith shares with his readers- "Steve Painter reported earlier this week at The Arkansas Democrat Gazette that, "Record-high prices are forecast for cattle headed to slaughter in 2013 as a result of prolonged drought conditions in the nation's midsection.

"Cattlemen in Arkansas and other affected regions continue to shrink their herds because of a lack of hay and grass to feed them.

"The drought 'made us sell a lot of cattle two to three months early,' said Harold Sargent, president of Farmers Livestock Auction in Springdale. Calves that should be selling now, he said, were sold in June and July."

"Mr. Painter noted that, "A study released last month by the University of Arkansas System Agriculture Division found that drought has cost the Arkansas beef cattle industry $128 million and projected that losses could go higher. Of the ranchers surveyed, 3 percent said they intended to sell all of their livestock.

"Authors of the study said the $128 million loss 'should be deemed a conservative estimate of the direct impact of the drought on cow-calf producers' income.' The drought cost to producers was estimated at $141 per head."

So- drought is the dirty trick of 2012- What's the treat on this Halloween 2012?

Well- I gave credit to Barack Obama- but he really has to share credit with George W Bush as his administration actually did all the work in cutting a deal with a Free Trade Deal with Panama.  After letting three FTAs sit on the back burner for a couple of years- the Administration "tweaked" them a bit and submitted them to Congress and they were ratified. The final of those three deals- the one with Panama- goes into effect TODAY- October 31, 2012.  Click here for a story from earlier this month about the Cattle Industry being very pleased with this FTA finally coming to fruition.