Frank Lucas Questions Fed Chair on Unintended Effects of Quantitative Easing On Farm Policy 

House Agriculture Committee Chairman Frank Lucas (R., Okla.) discussed issues associated with the agricultural economy with Federal Reserve Chairwoman Janet Yellen on Tuesday during a House Financial Services Committee Hearing.

Lucas was mainly concerned with the effects of the Fed's Quantitative Easing policy on asset prices. He outlined the stock market rebound since its crash in 2008 and the continuing climb in farm land prices that mirrored the stock market. Lucas asked Yellen if the boost in liquidity resulting from Quantitative Easing had bled over into land prices. 

"I will not profess to be an expert on land prices," Yellen said, "but I think land prices have been going up at a remarkable rate even before the stock market began to recover and have certainly caught our attention as an area where we would be concerned about valuations. We've been watching that very closely."

Lucas said he was concerned that Quantitative Easing would have an opposite and unintended effect on farm policy as codified in the new farm bill when the program was meant to boost the housing market. 

"If resources becoming so plentiful spread out into the economy away from housing, if it distorts the decision-making process, I mean, in the farm bill this time we did away with the old direct payment program, basically taking four billion dollars each year out of the farm economy in a effort, part of which, to address that issue."

Yellen tried to reassure Lucas that the Fed has everything under control.

You can read the rest of this story and watch C-SPAN coverage of the hearing by clicking here. 

AFBF Applauds OSHA's Compliance with Grain Bin Safety Law 

Bob Stallman, president of the American Farm Bureau Federation, issued the following statement after the Department of Labor withdrew its Family-Farming Guidance yesterday:

"The Department of Labor's decision to withdraw enforcement of the Occupational Safety and Health Administration's small farm grain bin guidance is a positive step forward for agriculture. The American Farm Bureau Federation is optimistic that this action will result in OSHA's compliance with the small farm exemption as required by law. 

"Farm safety is a top-of-mind priority for our farmers. Throughout the country, state and county Farm Bureaus conduct safety training programs and work to ensure that everyone who is working on a farm is trained and safe. We not only appreciate OSHA's concern with grain bin safety, we are committed to grain bin and farm safety. But we also believe that the key to improving farm safety is a collaborative, cooperative process that was not helped by OSHA's enforcement under the just-rescinded 2011 guidance document that was not consistent with the law."

Click here for more of this story.  

Worldwide Wheat Marketing Efforts on Display for Oklahoma Ag Leaders

Members of Class 16 of the Oklahoma Agricultural Leadership Program were scheduled to leave today for South Africa. One of the group's first meetings will be with officials of U.S. Wheat Associates. The Capetown Office of U.S. Wheat is responsible for market-development programs in the 36-country Sub-Sahara African region. Mike Schulte of the Oklahoma Wheat Commission spoke with me and says that while in Capetown, class members will get to meet with Gerald Theus, assistant regional director of U.S. Wheat, and hear firsthand from U.S. Wheat's Regional Office Manager Jim McKenna.    

"He's going to be showing them locations where they actually bring in the wheat imports from the United States and, hopefully, they will get to see what they do on a regional effort within that part of the world... We are very involved with the country of Nigeria. Nigeria is our largest importer of hard red winter wheat out of the Southern plains of the United States.

"Looking at the things we are working on with milling and baking tests and showing them different product opportunities that they can use to put in that marketplace, we think that it will be interesting to show our wheat producers back here at home the efforts going on in those foreign market development areas."

Click here for more of my interview with Mike Schulte.  

NOTE- The Snowstorm on the East Coast has delayed the Class XVI departure by at least a day- as they were scheduled to travel through Dulles AIrport in Washington- closed today due to the storm.  A new travel plan is being worked on.

USDA Accepting Conservation Innovation Grant Proposals

The United States Department of Agriculture (USDA) is accepting applications for competitive grants to develop and accelerate conservation approaches and technologies on private agricultural and forest lands.
     
"Conservation Innovation Grants (CIGs) have contributed to some of the most pioneering conservation work on America's agricultural and forest lands, " said Agriculture Secretary Tom Vilsack. "It's an excellent investment in new conservation technologies and approaches that farmers, ranchers and forest landowners can use to achieve their production and conservation goals."
     
Gary O'Neill, Oklahoma State Conservationist for the USDA's Natural Resources Conservation Service (NRCS) said, "State and local governments, federally recognized Indian tributes, non-governmental and education organizations, private businesses and individuals are eligible to apply". About $15 million will be made available nationwide for this program. 

Click here to read the rest of this story.

CAB Momentum Pays Record Premiums: Nearly 30% of Total Paid Since 2011

Market premiums paid for cattle that earn the Certified Angus Beef ® (CAB®) brand trademark more than doubled recent annual totals to reach the neighborhood of $50 million.

The brand's 10 years of increasing demand and seven years of sales records left some Angus producers wondering how that affects their bottom line. Results from the biennial survey of CAB-licensed packers in January shines a halogen beam on the answer.

There were plenty of hints. In 2011, a 45% increase in grid premiums to $32.3 million did not in itself constitute a trend. But USDA's mandatory reporting, never known for overstating, showed 2012 starting with a CAB premium of $8 per hundredweight (/cwt.).

Apparently, that mark was often revisited in 2012 to bring about the 60% single-year further increase to a record $51.6 million paid. The previous record of almost $40 million was 10 years earlier in a turbulent world market affected by bovine spongiform encephalopathy (BSE or "Mad Cow Disease") and trade barriers.

The rest of this story is available on our website.  Please click here to go there.

Last Call for Canola College- We Have Got the Agenda

Canola College is set for TODAY at the Garfield County Fairgrounds Pavilion in Enid. Our link below will show you the times for each of the four breakout sessions planned through the day- starting at 9:45- plan to arrive early to register and visit with the industry folks in the trade show.

Once again, the Great Plains Canola Association, Oklahoma State University, Kansas State University and partners from the canola industry are teaming up to conduct Canola College. 

This will be the premier canola education/training event in the region in 2014. Anyone with an interest in canola will want to be part of this event where they will be able to share ideas and experiences with canola experts and more than 300 new and veteran canola producers and industry members. 

There will be four concurrent breakout sessions with the following topics covered by experts in their areas: basic production practices, advanced production practices, starter fertilizer, insect control, weed control, residue management and harvest management. 

Click here for all of the details.

Calendar This N That- McAlester Cow Sale, Save the Date on Noble's Texoma Cattle Conference and Enid's Con Til COnference NEXT WEEK 

There will be a special replacement Cow and Bull sale at the McAlester Union Stockyards this coming Saturday, February 15th at 12 Noon!

Already consigned are over 500 Head of Bred Cows, Pairs, Bred Heifers & Bulls- click here for more details and to look at the consignment list- call 918-423-2834 for more information.

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It will be a tremendous one day cattle industry conference that you do NOT want to miss- so mark your calendar right now for Thursday, February 27 and plan on heading to Ardmore that day to be a part of the Texoma Cattlemen's Conference.  

Click here to go and read more about the speaker lineup- for the second year- I am excited to be emceeing the day's event- and invite you to join me for the Conference.   

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Coming up next Wednesday is an excellent conservation tillage conference in Enid at the Chisholm Trail Expo Center.

OSU Extension folks and NRCS specialists have a variety of issues they will be covering to help you be the best you can be when it comes to no till or low till farming efforts.  

Click here for details- this meeting is a very practical meeting in that just a couple of ideas taken away could make you thousands of dollars in either cost savings, higher productivity or both.