AFR/OFU President Terry Detrick Reviews 2014 Farm Bill Passage, Previews Annual Convention 

With a vote in the Senate on the Agriculture Act of 2014 still pending, Terry Detrick, president of American Farmers and Ranchers, spoke with me about the importance of the bill's passage to his organization's members. He also talked about the upcoming AFR/OFU annual convention. 

"This is very, very important. It's long overdue. We've had the extension. The extension has expired. We've got producers who are trying to plan their futures.   They need to have some certainty when they go to the bank. The banks need some certainty because we operate, in large part, on borrowed capital. And it requires quite a bit of it.

"I commend Congressman Lucas. What a yeoman's job. At the times we're in now in Washington, D.C., to be able to get a bipartisan vote and to finally get it through the House of Representatives, which has kind of been the problem a lot all along... And I really commend him for the work that he has done and his staff. He has really put together a great staff, most of which are from Oklahoma by the way.   And to thank him and Congressman Cole and Congressman Mullin for supporting that bill through the House."

Also on Detrick's agenda in the near future is the annual convention of the American Farmers and Ranchers/Oklahoma Farmers Union. He said they have held meetings with their members all across the state and their policy committee has worked to draw up resolutions in preparation for the convention.

"One of the big issues is always water," Detrick said. "And I have run it by our policy committee and I do not anticipate any change to our water policy which opposes selling water to Texas. We have lots of needs for that water right here within our state. That policy also states that in the event that water is ever sold, the people in the watershed from whence that water came should also share in the proceeds of that. That's a natural resource where they dwell and they should have some proceeds from that."

Click here to listen to my conversation with Terry.  He will also be my guest on this weekend's "In the Field" segment on News 9 about 6:40 a.m. Saturday. 

Drought Conditions Worsen, Possible Winter Precip Promises Minor Relief 

Dry conditions are increasing across Oklahoma according the latest U.S. Drought Monitor map. Associate State Climatologist Gary McManus says January will go down in the record books as one of the state's ten driest on record.

He says the same basic pattern we've seen for the last three-plus years continues to hold with severe to exceptional (D2-D4) drought covering the western third of the state and moderate drought across north central Oklahoma down to I-40 also increasing.

The statistics table shows the percentage of the state in at least moderate (D1) drought went from 38 percent last week to 48 percent this week, and the percentage covered by at least severe (D2) drought rose from 19 percent to 29 percent. That might not seem like much, McManus says, but it is still fairly significant for the cool season. Dry, windy days over the last month have speeded the drought intensification and put 23 Oklahoma counties under burn bans.

McManus says the best we can hope for right now is some quick relief from some possible storms early next week. 

Click here to see the latest Drought Monitor Map and next week's Rainfall Forecast Map.

Less Uncertainty About Future Corn Prices Highlights Liquidity, According to KC Fed

A high probability of lower corn prices in 2014 is leading to prospects of lower incomes for U.S. corn producers. The latest issue of the Main Street Economist from the Kansas City Fed explains that markets appear more convinced that corn prices are unlikely to match the levels of the past few years. Expectations of lower corn prices and reduced profitability for 2014 corn production underscore the importance of liquidity for agricultural producers.

Though crop producers often characterize price uncertainty as a nuisance to be managed through various risk management strategies, less uncertainty is not automatically better for producers. Expected future corn prices are significantly less volatile now than in recent years, but the decreased uncertainty is accompanied by prospects of considerably lower prices. The variability of expected harvest prices mirrors that of a decade ago as diminishing ethanol growth has curbed demand potential.

Liquidity allows producers to combat potential short-term risks of significantly weaker, or even negative, profit margins. Overall, farmers have greatly improved their cash position in the last several years, suggesting that a crisis in 2014 is unlikely. However, some less-liquid operations may be more exposed to short-term risk than others and weaker profitability could intensify challenges beyond 2014.

Click here for the full story from the Kansas City Fed.

 

U.S. Wheat Prices Face Downward Pressures, Anderson Says

Wheat prices challenged support levels this week. In his preview to this weekend's SUNUP program on OETA, Oklahoma State University Extension Grain Marketing Specialist Kim Anderson says the downward pressure is on.

"You can go back two or three weeks ago and we had a 30-cent price rally. I was saying hopefully and possibly wheat prices had bottomed out for the year. We've taken out that 30 cents. This week we challenged that $6 price level for the Kansas City March and July contracts. July actually got down to $5.99 and it closed at $6 so we haven't closed below it, but we're sure putting pressure on that low price now."

He says we can't look at the wheat prices and possible trends without looking at their relationship to corn.

"This time last year wheat prices were 40 cents higher than corn prices. Right now wheat is $1.40 above corn so we don't have the corn prices this year to support wheat prices. So, when wheat prices start falling, there's just nothing there to hold them except for the demand for the wheat."

You can listen to Kim Anderson's market analysis by clicking here.  You'll also find the full rundown for this week's SUNUP. 

USMEF Strongly Supports 2014 Farm Bill

The U.S. Meat Export Federation (USMEF), an organization charged with increasing the value and profitability of the U.S. beef, pork and lamb industries by enhancing demand in international markets, issued a statement strongly supporting the Agricultural Act of 2014 - the farm bill that was advanced from conference committee earlier this week and approved today by the House of Representatives on a vote of 251 to 166.

"USMEF commends the farm bill conference committee for finding the common ground necessary to advance legislation that will put in place for the next five years programs that are critical to U.S. agriculture and the rural economy, and we thank the House of Representatives for approving the bill," said USMEF President and CEO Philip Seng.

Seng noted that the new farm bill fully funds the USDA Market Access Program (MAP) and Foreign Market Development (FMD) program, which represent important investments in U.S. agricultural exports.

You can read the rest of this story by clicking here.  

When Americans sit down in front of the tube this Sunday to partake of the annual Super Bowl, they'll be reaching for a lot of snacks.

According to the National Chicken Council's 2014 Wing Report, 1.25 billion wings will be devoured during Super Bowl XLVIII, as fans watch the Seattle Seahawks and Denver Broncos battle for the Lombardi Trophy, matching the record level of 2012. That is about 20 million more wings than were consumed last year during Super Bowl XLVII.  Click here for more Super Bowl chicken wing trivia.

A lot of viewers will be tuning in to watch the creative commercials which have become a staple of the Super Bowl games.  You probably remember last year's favorite "So God Made a Farmer" commercial for Dodge trucks.  Among this year's crop, Chevy will air its ranch-themed "Hellooo Ladies!" spot touting their new pickups.  Click here to watch the video which has already gone viral with more than 1.2 million hits as of yesterday afternoon.

This N That- Messner Ranch Production Sale, Cattle Industry Convention Happening Next Week in Music City and Next Friday's Superior Sale is a Big One

Messner Herefords invites you to their 2014 edition of Oklahoma's Oldest Annual Production Sale tomorrow, Saturday, February first at the Messner Ranch, Slapout, Oklahoma.

Van and Milt Messner will be selling 150 service age Hereford and Angus bulls as well as 60 bred Angus and Hereford Heifers.

The sale will be seen live on DV Auction at dvauction.com - Sale time February 1st is 12:30 PM

For information- call Van Messner at 580-552-1555.  The catalog is now available on the DV Auction website- click here for the Messner catalog.

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We will be heading for Nashville at the start of next week- and our coverage of the 2014 Cattle Industry Convention gets underway Tuesday and runs through the end of the week and beyond.   

We have a preview of the 2014 event on today's Beef Buzz, with comments from Scott George, the current President of the NCBA- George is a dairy and cow-calf producer from Wyoming.  Click here for that.  

A good group of Oklahoma cattle producers will be there- the Oklahoma delegation led by Richard Gebhart, current President of the Oklahoma Cattlemen as well as the current chair of the NCBA 's Federation Division- which is made up of state beef councils from around the country, including the Oklahoma Beef Council.    

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Next Friday, the next regular sale from the Superior Livestock folks is scheduled- we will have more details as the week goes on- but an early heads up is in order- this sale is going to be a really big one- 46,500 have been consigned.

That includes a large consignment from a group known as the Pond Beef Alliance out of Troop, Texas.

To see the full rundown on next Friday's sale- click here for the details on the Superior website.  You can also call 1-800-422-2117 for more information as well.