Looking back at 2014, it was a mixed bag for Oklahoma. Wheat farmers battled drought and had one of the smallest crops in the state's history, but there were also some bright spots too. In recapping the year, Oklahoma Secretary of Agriculture Jim Reese said one of the big surprises was the arrival of June and July rains bringing one of the wettest summers.


"Summer crops did really well, helped a lot of recovery, commodity prices have been good, so agriculture in general has been good," Reese said. "Since the 2011 drought we've been recovering ever since, every rainfall has been good."


Another bright spot was the cattle market. With tight supplies cattle prices saw record levels this year. Reese said the prices have been incredible and a lot of producers have told him they have waited for these kind of prices their entire life and now that it is here it's kind of scary. With the decisions producers are making now Reese said there is a lot more at stake as producers choose between holding back heifers and expanding their herd or selling at these high prices.


"It's the fact that we're producing a great product," Reese said. "Consumers so far have been willing to continue to pay what it takes to get meat on their table, so we have been really blessed."


In January Governor Mary Fallin will begin her second term and Reese will continue to be at the helm of the Oklahoma Department of Agriculture Food and Forestry. In the new year, Reese said the agency is setting goals for the upcoming year. Currently Oklahoma's agricultural industry generates a total gross product of about $7 billion annually. In the next year they want to measure the state's agricultural sector to make sure the industry is growing and increasing agricultural products. Secondly Reese said they want to increase the state's agricultural exports which will further support commodity prices for ag producers. Further Oklahoma want to increase advanced processing of agricultural products with milling along with increasing food manufacturing in the state. 

Click here to listen to my full interview with Reese, including more about the department's goals for 2015.  

Reese will be joining me for the weekly In the Field report Saturday morning at 6:40 am on KWTV News9 in Oklahoma City. 

US Agriculture Welcomes Removal of Trade Barriers with Cuba

The White House announced Wednesday that the Obama Administration will begin the process of normalizing its relations with Cuba.  U.S. Agriculture Secretary Tom Vilsack said the reforms will make it make easier for U.S. exporters to sell U.S. farm products to Cuba.

"What this particular opportunity creates is a much more efficient, less-expensive opportunity for Cuba to buy American agricultural products," Vilsack told POLITICO on the sidelines of the U.S.-China Joint Commission on Commerce and Trade meeting.  Click here to read more of the potential growth of US ag exports to Cuba.  

American Farm Bureau Federation President Bob Stallman said he believes expanded trade with the U.S. can serve as a cornerstone for additional reforms.   

"The president's opening to Cuba promises to improve trade conditions by making it easier for Cuba to buy U.S. agricultural and food products. This is welcome news for our nation's farmers and ranchers," Stallman said.  "Right now, U.S. farmers can export to Cuba, but third-party banking requirements and limited credit financing make it harder to compete in the market than it should be. We look forward to a prompt lifting of those restrictions."  Click here to read more from American Farm Bureau.

The National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) believe this will make it easier for Cuba to buy U.S. agricultural products, including wheat.  Cuba is the largest wheat market in the Caribbean.

"The U.S. wheat industry applauds these actions, which take concrete steps away from a policy approach towards Cuba that has accomplished little," said USW President Alan Tracy. "If Cuba resumes purchases of U.S. wheat, we believe our market share there could grow from its current level of zero to around 80-90 percent, as it is in other Caribbean nations."  Click here to read more NAWG and USW. 

In a Tweet from the US Wheat Associates account on Wednesday- they think we could easily see 500,000 metric tonnes of Hard Red Winter Wheat going into Cuba from our Gulf ports- a nice pick me up for HRW demand.

One other group that is expressing excitement about Cuba is the American Soybean Association- click here for their statement released on Wednesday afternoon. 

National Livestock CEO Looks Back at Unprecedented Year

It's been a wild ride for the cattle industry in 2014. National Livestock Credit Corporation President/CEO Robert York looks back at this unprecedented year. Going into the year everyone knew the US had tight cattle supplies and everyone expected higher cattle prices. York said yet no one expected the records that were set this year.


"It is incredible, the market set new highs and they were well beyond the new highs that all of us insiders thought we would see," York said. "When it got to the levels that we thought would be unbelievable, it just surpassed it and kept going higher. It's been a very memorable year in the industry. It's helped a lot of families out, a lot of ranchers out and it's been a year to remember."


With a strong cattle market nationally cattlemen are beginning to hold back heifers. York said he is seeing it in the sale barn receipts with the percentage of heifers sold. In talking with customers he said its a trend that is widespread.   York said there has been a lot of heifer retention which will begin to show in production numbers in the next two to three years. 


I featured York on the Beef Buzz feature. Click or tap here to listen to the Beef Buzz as York talks about the outlook for heifer retention in Oklahoma and the challenges that are ahead with having record cattle prices.  

Farm Bureau Commends and Defends State Attorney General Scott Pruitt

Here is a Statement from Tom Buchanan, Oklahoma Farm Bureau President- released by the general farm organization earlier this week:


"We have seen and heard much talk in the media lately about our Attorney General Scott Pruitt. The talking heads would like for you to believe that industry in the state of Oklahoma has bought and paid off our AG. Nothing could be further from the truth. We at Oklahoma Farm Bureau would like to set the record straight.


"AG Pruitt and Oklahoma Farm Bureau have worked closely and tirelessly over the past few years to make sure our membership has been protected from over regulation, whether from the EPA, U.S. Fish and Wildlife Service or even private environmental groups such as HSUS. All of these groups have tried and continue to try to have a major impact on how we farm and ranch here in the state. Make no mistake, not just these groups but many others have come after our very way of life. One person and one office has shown the courage it takes to stand up to such out-of-state interest, and that person is AG Scott Pruitt.


"While many from across our state's borders want to criticize the AG for standing up for personal property rights and our way of living, we at Oklahoma Farm Bureau want to commend AG Pruitt and tell him to keep up the fight! As the state's voice for agriculture, Oklahoma Farm Bureau stands with our attorney general and will keep fighting for our members' right to farm and ranch in Oklahoma."
 

EQIP Applications Due January 16th

The head of the Oklahoma Natural Resource Conservation Service (NRCS) is reminding producers that applications for the Environmental Quality Incentives Program (EQIP) must be submitted by January 16, 2015. Gary O'Neill, NRCS State Conservationist for Oklahoma said EQIP is available to producers and landowners active in agricultural or forest production engaged in livestock, agricultural, or forest production on eligible land that have a natural resource concern to be addressed.


EQIP provides financial assistance for eligible producers to help plan and implement conservation practices that address existing natural resource concerns and for opportunities to improve soil, water, plant, animal, air and related resources on agricultural land and non-industrial private forestland. Another purpose of EQIP is to help producers meet Federal, State, Tribal, and local environmental regulations. There are several special cost share funding assistance programs that are available through the EQIP. Some of these include programs such as Organic Farming, Seasonal High Tunnel Houses, AFO/CAFO (Confined Animal Feeding Operations) Waste Management, Lagoon Closures, Irrigation Water Conservation, and others. Producers are encouraged to contact their local NRCS office for details about all of these and other programs that might be available to them.


"EQIP is an important Farm Bill conservation program that helps established farmers as well as beginning, historically underserved, and limited resource producers," O'Neill said. "This is another example of the work of NRCS in Oklahoma and our efforts together with our partners to address environmental conservation issues and strengthen Oklahoma's rural economy."

Click here to read more on applying for EQIP funding.  

Farmer Co-ops Submit Comments on Food Safety Proposals Dust

The National Council of Farmer Cooperatives (NCFC) on Monday submitted comments to the U.S. Food & Drug Administration (FDA) on four supplemental notices for comments that are part of the implementation of the Food Safety Modernization Act (FSMA).


"As the FDA continues the implementation of FSMA, NCFC will continue to advocate for policy based on sound science, that is risk based and commodity specific," the organization said in its comments. "NCFC applauds FDA's revised effort to implement FSMA commends FDA for recognizing that significant changes were needed and allowing the public the opportunity to provide input on FDA's new thinking."


The four rules open for comment were the:


(1) Foreign Supplier Verification Programs for Importers of Food for Humans and Animals (FSVP rule);


(2) Current Good Manufacturing Practice and Hazard Analysis and Risk-Based Preventive Controls for Human Food (Human Food Preventive Controls rule);


(3) Standards for the Growing, Harvesting, Packing, and Holding of Produce for Human Consumption (Produce Safety rule) and


(4) Current Good Manufacturing Practice and Hazard Analysis and Risk-Based Preventive Controls for Food for Animals (Animal Food Preventive Controls rule).  
 

 Click here to read more about why NCFC urged changes to the food safety rule. 

This N That- CME Expands Feeder Cattle Contract Limits, Final Cattle On Feed of 2014 and Superior Livestock Selling Today and Tomorrow

If you are long Feeder Cattle, I'm sorry.  Currently, Feeder Cattle Futures on the CME have gone limit down for five straight trading sessions- and veteran traders tell us there is more down to this market.

As a result, CME Group has announced it will change daily price limits in its CME Feeder Cattle futures effective TODAY- pursuant to its emergency action authority.

The current daily price limit for CME Feeder Cattle futures is $3.00 per hundredweight and will change to $4.50 per hundredweight effective on trade date December 18. Additionally, effective December 19, these limits will have the ability to expand by 150 percent to $6.75 per hundredweight on any business day in the event that one of the first two contract months settles at limit on the previous trading day. 

One Tweet we saw after the announcement said- the drop today will be the limit again- just this time it will be $4.50.  By the close of trade today- we will see if liquidity surfaces or not in the Feeder Cattle contracts.

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The last Cattle on Feed report of the year will be released tomorrow afternoon at 2:00 PM central after the markets close for the week- and here's what Rich Nelson with Allendale is thinking when it comes to this latest cattle feedlot count:

"November Placements are expected to be 3.8% lower than last year at 1.796 million head. This would be the smallest November placement in 10 years. USDA's cattle feeding margin ended the month with a $64 per head profit on outgoing cattle (14 months in a row). Corn averaged $3.77 in Western Kansas in November ($3.52 in October, $4.32 in November 2013). November placements supply the April through August slaughter period.

"Allendale anticipates a Marketing total 6.3% lower than November 2013. There was no calendar day adjustment for this month. Our 1.555 million head estimate is the smallest November marketing in 11 years.

"Total Cattle on Feed as of December 1 is 0.7% over last year. That is an increase over the November 1 total of 0.5% over last year."

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Superior Livestock has a pair of sales this week- one today and one tomorrow.  This afternoon, it's Superior's Livestock Select Female Sale- starting at 1:00 PM central time on DISH Network channel 232 as well as via the internet on Superior Click to Bid.Com.   

Superior will have about 3,800 females to sell- with a lot of quality females ready to be brought in to help rebuild your mama cow herd.

Click here for the info page for today's replacement female sale.

Tomorrow- Superior will be selling a lot of top notch calves and yearlings from across the country- 16,700 will be sold.

That will include 4,000 yearling steers, 2,400 yearling heifers and 7,850 weaned calves.

As with today's replacement female sale- you can see tomorrow's auction- starting at 8:00 AM- on DISH Network Channel 232 and via Superior Click to Bid.Com.

Click here for more details about this final Superior Auction of 2014.