Markets, Not Mandates, Shape Ethanol Production According to KC Fed 

The 2012 drought has reignited the food versus fuel debate. In the latest issue of the Main Street Economist, Federal Reserve Bank of Kansas City economist Nathan Kauffman explores ethanol mandates and market-based demand for ethanol, concluding that markets, not mandates, will shape future ethanol production and its use of scarce corn.

After cutting U.S. corn production below recent years' consumption, the drought sparked a U.S. grain shortage and sent global food prices soaring. As the grain shortage intensified, pressure to relieve the shortage by easing ethanol mandates mounted. Escalating ethanol mandates under the Renewable Fuel Standard (RFS), which fueled the expansion of the U.S. ethanol industry, will soon exceed the amount of ethanol than can be used in current U.S. gasoline blends.

Though some industry participants believe that a waiver of the mandate could reduce ethanol production and relieve high corn prices, a request the EPA recently denied for the 2013 mandate, Kauffman explains that ethanol production may not decline significantly from a temporary waiver. The RFS mandates stipulate ethanol blending for the next decade. A temporary waiver would not relieve the pressure on current production to build credits to satisfy future mandates.

You can read more by clicking here and you'll also find a link to Kauffman's full analysis.  

Kim Anderson Says Sideways Pattern to Continue in Grain Markets 

In this week's preview of SUNUP, Oklahoma State University Grain Marketing Specialist Kim Anderson says given the dry conditions and potential for crop loss, grain markets are reacting with caution.

"With the current supplies--ending stocks 700-million bushels, right around average for the U.S., just slightly below average for the world--you would expect wheat prices to be lower than they are right now. The drought, I think, has got the market afraid that we're not going to have much of a crop in 2013 and they're going to keep as much wheat as possible in storage. To a certain degree, I think, they're betting on higher prices as you get out into the March, April, May, June, July time period. If it rains, then I think we could see prices going down."

Anderson says the sideways pattern is continuing, with prices holding near the bottom of their range. He expects them to stay there for the next few weeks.

"We're in the holiday time period, not much happening in the markets right now and I don't think much is going to happen until we get out into, maybe, mid-January as the market is looking at wheat to come out of dormancy and see how much moisture we've received in that time period."

You can listen to more from Kim Anderson as well as see the lineup for this week's SUNUP show by clicking here.

 

Bob Stallman, Poultry Reps Applaud Passage of Bill Lifting Roadblocks to PNTR with Russia

The Senate yesterday overwhelmingly passed legislation that will pave the way for Permanent Normal Trade Relations with Russia if the bill is signed by President Obama.  The Russia and Moldava Jackson-Vanik Repeal Act of 2012 rescinds legislation that is a roadblock to United States agricultural exports to the former Soviet Union.  The House passed the bill in November.  The bill now goes to the President for his signature.

American Farm Bureau President Bob Stallman hailed the bill's passage, saying it "will ensure the U.S. benefits from Russia's accession to the World Trade Organization and remains competitive in that market. We applaud Senate members for approving this critical legislation."  (Click here for more from Bob Stallman.)

Poultry producers represented by the National Chicken Council, National Turkey Federation and USA Poultry & Egg Export Council also commended the Senate for their rapid attention to the bill.  (Click here for more of their statement.)

Secret Farm Bill from Secret Santa?

The following editorial was originally published by the Environmental Working Group in their Ag Mag newsletter.

Congressional leaders in search of a compromise to avert the "fiscal cliff" are under growing pressure from advocates for subsidized agriculture to attach a $1 trillion farm bill to legislation ostensibly designed to straighten out the nation's finances.

What a lump of coal for taxpayers!!

Only in Washington could some political leaders propose to bypass the floor of the House of Representatives and attach a $1 trillion farm bill - at a cost higher than the Affordable Care Act - to a measure designed to reduce the federal deficit.

Both of the farm bills drafted by the House and Senate would actually increase crop insurance subsidies and put the taxpayer on the hook for more spending when farm prices fall.

You can read more of the EWG's take on a possible "stealth" farm bill by clicking here.

 

Newly-Approved Label Claim for Baytril 100 Broadens Application Options for Cattle Producers

Baytril 100 has been around for a number of years. Dr. Larry Hawkins of Bayer Animal Health says it is now better than ever due to the approval of a new label claim by the Food and Drug Administration.

"Control is FDA's word for mass medication or mediphalaxis, as producers and veterinarians would call it, but FDA calls it control. So that broadens the use of Baytril 100 for management of respiratory disease in cattle operations."

Hawkins says the label change allows for broader use of the product, making it easier and more effective in minimizing the impact of BRD for the producer.

"What it means is for those high-risk cattle that are coming in, it now says right on the label things that identify high-risk. So, things like shipment or commingling or those individuals that one producer would expect to cause disease in the cattle, we can now treat them when they arrive and keep that to a minimum. The results we have so far look good. We've got some ongoing testing."

Larry Hawkins is my guest on the latest Beef Buzz.  Click here to join us.

Eight Days Remain to Vote for USFRA's 'Faces of Farming and Ranching' Finalists

There are only eight days remaining for America to help decide the next faces of agriculture. The U.S. Farmers & Ranchers Alliance (USFRA) has identified nine finalists in its Faces of Farming & Ranching program who all have the passion and desire to share more about how they grow and raise food. Consumers and other farmers and ranchers around the country are asked to vote online for their favorites to help choose who will be the winners. The winners will represent all farmers and ranchers and help encourage dialogues around food production questions. More importantly, they will help set the record straight about the way our nation is fed.

Click here to go to our webpage where you'll find links to watch a short video of each finalist's farm or ranch. You can then vote for your favorites.  The voting will conclude on December 15. These votes will contribute to the total score and help determine the winners.

 

This N That- Drought Tops the Evening News, John Ward Memorial Info and some Tulsa Farm Show Notes 

Yesterday at the Tulsa Farm Show, we enjoyed visiting with several of our wonderful colleagues from Griffin Communications- Craig Day, Oscar Pea and Travis Meyer. Craig and Oscar were busy during the day as they put together an excellent TV package on the severity of the current drought that most of Oklahoma is now facing. 

That package ended up as the lead story at 6 PM on the News on 6, the top rated station in the Tulsa television market. Day pointed out that these conditions that rival the dry periods seen in the 1950s and even the 1930s have an economic cost to them- but also a human cost. We have his package on our website this morning- we even make a cameo appearance- and you can take a look by clicking here.  

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John Henry Ward's life will be celebrated this afternoon at Life Church in Edmond at 1:30- John was an All American football player and wrestler at Oklahoma State University- and after a pro football career, returned to his beloved Oklahoma and gave of himself in several public service oriented positions. In recent years- he had served as a Vice President for The Poultry Federation and as the lead man for their Oklahoma operations. He fought and lost a battle with a rare form of cancer- and his wife Gayle is asking that if you wish to honor John's life- that you do so in the form of a contribution to the efforts to battle GIST cancer. Click here for the website that can help you learn more about this disease- and there is a place there that you can donate- just specify that it is in the name of John Ward of Oklahoma.

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The Tulsa Farm Show continues today and tomorrow at Expo Square- we will be on the scene today and our colleagues Ed Richards and Jim Apel will be manning the booth on Saturday- at aboout 1 PM on Saturday- we will be drawing a name for the Winch provided by Perfection Truck Parts and Equipment- that means you have a chance all day today and tomorrow morning to sign up for your chance to win!  One of the highlights of the day today- besides the chance to trade Howdys with yours truly- is the 2012 Livestock Handling Skills Contest which will pit ten FFA teams against one another as they work cattle, show off their knowledge of cattle well being handling- and compete for scholarships- a major sponsor of this contest is American Farmers & Ranchers.

Click here for the agenda for this year's show- we look forward to seeing you- and perhaps hearing your drought story for 2012.