NCBA Finds Growing Disapproval of WOTUS, But Fight Isn't Over 

The comment period for the 'Waters of the US' proposal from the Environmental Protection Agency and US Army Corps of Engineers will be open for one more month til the 20th of October. The National Cattlemen's Beef Association continues to let EPA know that they need to ditch the rule. NCBA Vice President of Government Affairs Colin Woodall said efforts to fight the rule made two significant strides this past week.


"The passage by the House of Representatives of HR5088, where they went in and basically said to EPA you are going to stop this process and go back to the drawing board," Woodall said. "That passed overwhelmingly on the House side. We received all of the Republicans who voted yes and we had 35 democrats who voted yes. So that was a strong bipartisan signal to EPA that they have kind of gotten this wrong."


Over the weekend the National Association of State Departments of Agriculture, the heads of the all of the state departments of agriculture also came out and took a position against the WOTUS rule.


"So it just continues to help show there is not a lot of support in the countryside for what EPA is doing and politically that continues to turn the heat up on them," Woodall said. 

Click here to read or to listen to my interview with Woodall about the continuing war of words over WOTUS. 

Soybean Farmers Encouraged to Safeguard Export Markets 

As the soybean and corn harvest hits full stride in much of the nation's growing regions, the farmer-leaders of the American Soybean Association remind farmers to do their part by taking extra care to keep biotech traits that are not yet approved in key export markets out of normal grain marketing channels. For those soybean farmers that also produce corn, this includes keeping biotech corn traits that are not yet approved in China, such as MIR 162 and Duracade, out of normal commodity streams so that U.S. soybean shipments to China aren't at risk of rejection due to the presence of unapproved corn traits.


"China is U.S. soy's biggest customer, buying more U.S. soybeans than all other foreign customers combined," said ASA President and Corning, Iowa, farmer Ray Gaesser. "With a record U.S. soybean crop ready for harvest, we need to ensure that U.S. soy exports aren't disrupted. Farmers growing biotech corn traits that aren't yet approved in China need to follow stewardship agreements carefully, ensure thorough equipment clean-out, and only market their grain in approved domestic channels."


In the current marketing year, China has imported nearly one-third of all U.S. soybeans produced and U.S. soybean exports to China total over $14 billion.


The National Corn Growers Association (NCGA) has been working with Syngenta and reminds farmers about the need to keep Duracade technology out of export channels.  Click here to read more about what's at stake.  

Export Customers Commit to Buy $2.3 Billion of U.S. Soy

Buyers from China at the second-annual, soy-checkoff-funded U.S. Global Trade Exchange have agreed to buy $2.3 billion of U.S. soy totaling 176 million bushels of U.S. soybeans, marking the second consecutive year that the gathering has generated significant export sales for U.S. soybean farmers in their own backyard.


"This is very exciting news for U.S. soybean farmers," says Jim Call, soybean farmer from Minnesota and United Soybean Board (USB) chairman. "This shows that we continue to meet the needs of our international customers, and they've certainly taken notice."


The event - where foreign buyers gather in the heart of the American Soybean Belt to make deals and learn about U.S. soy - is co-sponsored by the U.S. Soybean Export Council (USSEC), the Midwest Shippers Association and the American Soybean Association (ASA). It continues through Thursday, Sept. 18.


"This week is really a great example of the whole picture of U.S. soy's work with our export partners," says Randy Mann, USSEC chairman and soybean farmer from Kentucky. "Of course the new sales are a boon for farmers, but we're also laying groundwork for future sales by helping our current and prospective customers learn more about the sustainability and quality advantage of American soybeans."
 

Click here to read more about the U.S. Global Trade Exchange event.  

Beef Checkoff Working Group Moving Forward

Wyoming dairy producer Scott George is a past president of the National Cattlemen's Beef Association. For the past three years he has served as a representative for NCBA in the beef checkoff enhancement working group. During that time the groups has been working on coming up with a consensus and industry wide support for a referendum for a second dollar for the beef checkoff. Other groups have a different agenda. They want to reform the beef checkoff as they don't like NCBA being the primary contractor and they want to end that particular relationship between NCBA and the Cattlemen's Beef Board. Recently one of the groups the National Farmers Union announced they are pulling out of the negotiations. Even with one less member George said the group can continue moving forward.


"I can tell that the working group is still planning on meeting," George said. "They are going to go forward and look and see where the groups are. I felt like it was almost a betrayal for these groups to decide to go public. I would have expected they would have come instead to the private group and say you know we are not going to participate any longer, but that's their decision. I respect their right to make that decision."


The National Farmers Union and several other groups that agree with their position have called on US Ag Secretary Tom Vilsack to make major reforms to the beef checkoff and force that on the industry. Click here to read or to listen to his comments on why that will be challenge for Secretary Vilsack.     

Ag Committee Examines Projects to Reduce Dependency on Food Stamps

Chairman Frank Lucas held a public hearing to review the implementation of state pilot projects under the Supplemental Nutrition Assistance Program (SNAP) of the Agricultural Act of 2014. SNAP is designed primarily to increase the food purchasing power of eligible low-income households to help them buy a nutritional, low-cost diet. One of the reforms in the 2014 Farm Bill included new Employment and Training pilot projects. They allow for up to ten states to develop and test methods to help adults secure employment and job training and reduce their dependency on SNAP. On August 25, the U.S. Department of Agriculture (USDA) released the Request for Applications and Request for Proposals for the pilot projects setting in motion the next phase of implementation.


"It is important to maintain an open line of communication with USDA as it implements the Agricultural Act of 2014. Today's hearing was a part of that process and I appreciate Secretary Vilsack's participation and commend his efforts to date. The work pilot projects are a response to a need to help struggling Americans find employment and earn higher wages so they are no longer dependent on federal food assistance. I was encouraged to hear the Secretary is focused on a broad range of projects to help determine the best strategies states can use to help Americans get back to work and off of SNAP. I am hopeful we will soon see a positive outcome as a result of these projects," said Chairman Frank Lucas.


"The work pilot programs discussed today are an example of the bipartisan, cooperative work the Agriculture Committee does so well. We authorized these pilot projects because we value work and we want to put people back to work. Keeping a close eye on farm bill implementation is a top Committee priority and I welcomed the opportunity to learn more about USDA's efforts to implement the SNAP work pilot programs," said Ranking Member Collin Peterson.

Click here to read the full opening comments from House Ag Chairman Lucas.  

Rail Competition Will Impact Southern Plains Cattle Producers

Shipping by rail is getting drastically more expensive. Last year rail car use cost $400. Late this summer the cost sky rocketed to more than $3 - thousand dollars. AgResource Company President Dan Basse said there is a real logistical jam due to the rising energy production in the United States, particularly in North Dakota.


"North Dakota now producing a million barrels of crude oil a day and that competing with agriculture in terms of rail car availability," Basse said. "It's going to pressure basis levels to the farmer because the grain farmer is always the one who bears the weight of all this and unfortunately there is going to be mounds of gold, corn stored across the ground, if indeed the producer doesn't think about his storage options and availability toward the harvest time frame."


Cattle feeders in the midwest will benefit. Basse said the cattle producers located closer to corn are going to be at an advantage because they are going to have cheaper basis levels and the availability of that supply.


"If you are at a situation where you are in North Texas or maybe New Mexico where you rail in a lot of corn, that rail availability will be diminished and of course basis will be to you somewhat higher," Basse said.

Click here to read more (or to watch the video) about Basse's outlook for cattle producers.   

This N That- Heart of American Starts 3 Day Run, Odile Cometh as Does Cattle on Feed

The second annual Heart of America Farm Show kicks off this morning  at 9:00 AM- the show runs today, Friday and Saturday from 9 am to 5 pm each day.

There's lot's of stuff going on- for a complete schedule, check out their website here.  We plan on hanging out at the Heart of America Farm Show on Friday and Leslie Smith will be at our booth on Saturday!

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It does appear that the leftovers from Pacific Hurricane Odile will be making a trip through Oklahoma this coming Saturday- it will be an in and out kind of a visit so- the rainfall amounts probably won't be historic- but Travis Meyer (you can follow him on Twitter here- he calls himself news0n6wxguy) provides us a great map showing a lot of the state- including much of our wheat and canola belt will get precipitation.   

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Our next regular Cattle on Feed report is out on Friday afternoon at 2 pm central time- after the markets are done for the week. According to Rich Nelson of Allendale, this report could be historically significant.

"August Placements are expected to be 5.2% lower than last year. This would be the lowest August placement since the history of the current data series (1996). USDA's cattle feeding margin ended the month with a $105 per head profit on outgoing cattle (10 months in a row). Corn averaged $3.97 in Western Kansas in July ($4.16 in July, $6.27 in August 2013). August placements supply the January through April slaughter period.

"Allendale anticipates a Marketing total 1.1% lower than August 2013. There was after a 4% increase due to the calendar day adjustment for this particular month.

"Total Cattle on Feed as of September 1 now totals 2.6% under last year. That is a decrease over the August 1 total of 1.9% under last year."

We plan on having Tom Leffler to provide us with some Friday afternoon "after the report" analysis of these September numbers.