For Meat Producers- Steve Meyer Says the Impact of Drought will be a Multi Year Event

High feed prices have hit meat producers all across the board-cattle, pork, and poultry. Steve Meyer of Paragon Economics spoke with me at the recent National Association of Farm Broadcasters Convention in Kansas City.

Meyers says poultry and cattle producers got slammed by the high feed prices early and hard, but pork producers haven't escaped the onslaught.

"It has hurt the hog folks, no question. We've had some sizable losses this year. For those producers who are buying cash grain and selling cash hogs right now, the losses are 30 to 40 dollars a head. It's pretty big."

Meyer says hog producers have become much more adept at managing risk in the last five years by locking in margins when those margins are offered. He says that producers have not been liquidating sows and have shown more ability to stay afloat than he expected, but he doesn't think they can withstand another year of crippling drought and high feed prices unscathed.

As to what is going to happen to U.S. meat production in the years ahead. Meyer says we're going to see reductions all across the board, but we'll see more reductions in the beef cattle herd.

"The reductions we're seeing in slaughter now are not because of this drought, they're because of the 2007 and '08 runup in costs. It takes so long to react. So the impact of this drought is going to be '14 and '15 in coming. I see lower beef supplies for the next two to three years and record high beef prices.

You can listen to our interview or read more from Steve Meyer by clicking here. 

$5 Billion in Indemnity Checks Flow to Farmers- More to Come

As the claims come in from one of the worst droughts in decades, farmers and ranchers across the country are receiving indemnity payments for the losses they have incurred. To date, more than $5 billion has been sent to farmers. And while crop insurance can be purchased to protect 128 different crops, the top five crops that suffered the most damage from the 2012 drought are corn, wheat, cotton, soybeans and grain sorghum. 

• Farmers will invest more than $4.1 billion to purchase more than 1.2 million crop insurance policies.

• Those policies protect more than 282 million acres of eligible crops.

• 15,000 crop insurance agents and 5,000 loss adjusters are working around the clock to help farmers get their claims processed.

To learn more about crop insurance in America, click here.

Ethanol Saves Americans $29.13 on Average Thanksgiving Trip

Ethanol is helping reduce the cost of the Thanksgiving holiday for the average American family. More than 39 million Americans will take to the road for their Thanksgiving holiday, traveling an average distance of 588 miles, according to AAA. That means the average American family traveling by automobile this holiday will save $29.13 on gasoline purchases because of ethanol.

In May, the Center for Agricultural and Rural Development (CARD) released a study by economists at the University of Wisconsin and Iowa State University finding that in 2011, ethanol reduced wholesale gasoline prices by $1.09 per gallon nationally. Those savings have a very real impact on the average household budget. Ethanol reduced the average American household's spending on gasoline by more than $1,200 last year, based on average gasoline consumption data. Since 2000, ethanol has helped save $39.8 billion annually in excess gasoline costs - roughly $340 per household per year.

You can read more of this story by clicking here.

High Prices, Volatility in Grain Markets Illusory, Anderson Says

In his weekly conversation for this week's SUNUP show, Kim Anderson talks with Austin Moore about seemingly high prices and high volatility in the grain markets. He says the numbers may be higher, but the percentages tell the tale.

"We've been talking about prices moving in this 92-cent sideways pattern and it's been in it since July 13th. What you've got to look at is let's go back two years, three years, when prices were down around the $3 level. If you got a ten-percent price move with $3 wheat, that was 30 cents. Now, with near $9 wheat, if you get a ten-percent price move, that's 90 cents.

"And so what we saw back a couple of years when we had lower prices you had 30-cent channels. Now, with $9 wheat, we have 90-cent channels. We really don't have more volatility, but we do have variability in the market because, also in the last five years, we've seen prices move from about $3.08 up to as high as $12.58 or about a $9.50-cent spread.   And there's a lot of uncertainty and a lot of volatility in that."

Click here for more from Kim Anderson and to see a full lineup for this weekend's SUNUP show on OETA.

It Pays to be Prepared for Prolapses in Beef Cows

Writing in the latest issue of the Cow-Calf Newsletter, Glenn Selk, Oklahoma State University Emeritus Extension Animal Scientist, says it's not to early to begin preparing for spring calving.

Prolapses occur occasionally in beef cows. Most prolapses occur very near the time of calving. Two distinct kinds of prolapse exist. Uterine prolapse requires immediate attention and if treated soon, most animals have an uneventful recovery. If they subsequently rebreed and become pregnant there is no reason to cull animals suffering uterine prolapse after calving. Uterine prolapse is not likely to reoccur. Some may suffer uterine damage or infection that prevents conception and should therefore be culled. If the uterus becomes badly traumatized before treating, the animal dies from shock or hemorrhage.

Vaginal prolapse, however, that which occurs before calving is a heritable trait and is likely to reoccur each year during late pregnancy. Such animals should not be kept in the herd. The condition will eventually result in the loss of cow, calf, or both plus her female offspring would be predisposed to vaginal prolapse. Call your local large animal veterinarian for proper treatment, or advice about culling of any beef female that has been found to have a prolapse. 

Click here for more advice on handling prolapse from Glenn Selk.

 

As the late comedian Rodney Dangerfield might say, "Turkeys don't get no respect..."  Americans consume nearly 100 million turkeys each year on three major holidays.  Some would contend that the rest of the year, the noble bird is seemingly consigned to oblivion- but there's also lots of consuming of turkey these days the other 362 days of the year- my youngest daughter's sandwich of choice at Subway- the Turkey Breast. 

With that being said- here are a few facts about the bird Americans identify most with Thanksgiving:

• Ben Franklin - in a letter to his daughter - proposed the turkey as the official United States bird.

• In 2007 - the average American ate 17.75-pounds of turkey.

• The heaviest turkey ever raised was 86 pounds - about the size of a large dog.

• A 15-pound turkey usually has about 70-percent white meat and 30-percent dark meat.

• The male turkey is called a tom. The female turkey is called a hen.

• The turkey was domesticated in Mexico and brought to Europe in the 16th century.

• Wild turkeys can fly for short distances up to 55-miles-per-hour and run 20-miles-per-hour.

• Turkeys' heads change colors when they become excited.

• Most of the turkeys raised for commercial production are White Hollands.

• It takes 75-80 pounds of feed to raise a 30-pound tom turkey.

• A domesticated male turkey can reach a weight of 30-pounds within 18-weeks after hatching.

• Forty-five-million turkeys are eaten each Thanksgiving. Twenty-two-million turkeys are eaten each Christmas. Nineteen-million turkeys are eaten each Easter.

• Male turkeys gobble. Hens do not. They make a clicking noise.

• Turkeys have heart attacks. The United States Air Force was doing test runs and breaking the sound barrier. Nearby turkeys dropped dead with heart attacks.

• The five most popular ways to serve leftover turkey is as a sandwich, stew, chili or soup, casseroles or as a burger.

Being Thankful Here in 2012

For many folks in agriculture- it's been a difficult year.  Our friends in the so called "corn belt" have faced a once in a multi decade drought- and we have all felt the impact of that- we have reported on that many times this year- and even have a couple of stories above in today's email that reflect the impact of drought here in 2012 that will be stretching forward into 2013 and perhaps beyond.

Obviously, here in the Oklahoma- it's actually year two of drought for many farmers and ranchers- and that has taken it's toll- even with a decent 2012 wheat and canola crop for many which was produced with just enough rain at just the right time- which is something to be thankful for in and of itself.

Yet, the miracle of agriculture- seeds being sown, sprouting and producing in a bountiful way- and animals giving birth and a tiny new life coming into this world- these miracles have been repeated over and over again this year as they have for thousands of years- and we have enjoyed a front row seat as we watch and participate in God's way to provide food and clothing for a ever more populated world. It's worthy of praise and something to be constantly thankful for.

It's easy to focus on the difficulties.  Wild fires, dry ponds, elections not going your way, the threat of war and so much more may be weighing on your mind and perhaps your heart as we arrive here at the 2012 Thanksgiving season. Your focus may be more personal- the loss of a loved one over this past year- or maybe you are walking through that valley as Thanksgiving arrives this year. 

Yet- for those that have a faith to undergird them- these difficulties are not the focal point of our lives. Rather, when things get tough- there is a source of strength that can flow through our lives.  A guy by the name of Isaiah many years ago penned a great word of encouragement for even today- "But those who trust in the Lord will find new strength, They will soar on wings like eagles, They will run and not grow weary, They will walk and not faint."

As I wrap up this final email in advance of Thanksgiving 2012, I am thankful for that new strength that has been promised. I am writing this from the little town that I grew up in many years ago- watching my Mom take perhaps her final breaths on this side of Heaven- knowing where she will be when that last breath comes. Those words from Isaiah where listed in the back of one of her Bibles as one of her favorites. She and my Dad have been faithful companions for the past 62 years- and it has been tough watching him having to say goodbye over the last few days- yet his faith of where she will be is strong and his vigil by her side has been the talk of the staff in the Hospice over this past week.  I am thankful for their example and how they formed who I am today over the years.

I am thankful this Thanksgiving 2012.  I hope you are, too- and that you have in your life that hope that my Mom has in her final moments on this earth.

One reminder- no email tomorrow or Friday- we will return with one on Monday, November 26.