Ag Reaction to the SOTU Centers on TPA and Cuba

Several ag groups reacted last night to President Barack Obama's State of the Union- we have four groups that we have posted stories on our website this morning- with all four of them applauding the move to normalize relations with Cuba and three of the four liking his call on Congress to give him Trade Promotion Authority so that he can finish negotiations on several trade deals and bring them back to Congress for an up or down vote.  

The three groups that reacted last night with a thumbs up on TPA were the American Farm Bureau, the American Soybean Association and the National Corn Growers Association. The one group that is strongly opposed to TPA is the National Farmers Union.   Their President, Roger Johnson, called on the President to rethink trade deals. "Free trade agreements are not only exporting American jobs, they are contributing to an increasing trade deficit that has become a major drag on the economy," according to Johnson.

Of the groups that like TPA- Corn Growers President Chip Bowling says TPA is needed for deals that are already in the works- "Currently, the United States is pursuing an ambitious set of trade negotiations, including the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership. Trade Promotion Authority legislation, which renews the president's authority to submit trade agreements to Congress for an up-or-down vote without amendments, is critical in finalizing agreements such as TPP because it assures our trading partners that a final deal won't be altered by Congress."

AFBF President Bob Stallman says his group really likes the idea of normalizing relations with Cuba- "We strongly support President Obama's efforts to normalize trade and other relations with Cuba. Cuba remains off-limits to almost all American trade - a self-imposed tactic that has repeatedly failed to secure reforms. American agriculture needs the same access to Cuban markets that so many other countries have. Easing trade financing restrictions is a strong beginning to U.S. food and fiber being accessible to Cuba's 11 million consumers. It's also something most Americans know is right."

Click on the names of the groups above to see their full statements in reaction to the President and his comments last night. 

Lower Gas Prices Helping Domestic Beef Demand 

With gasoline prices cut in half, in comparison to last year, American consumers have more money in their pocket. According to Kansas State Extension Livestock Market Economist Dr. Glynn Tonsor said that means more money for discretionary buying purchases, like beef.


"Going forward, we expect that to show up in the form of higher prices basically," Tonsor said. "That has definitely helped the entire protein complex. That's the reason to be bullish on the demand front."


On the flip side, lower prices for crude oil will negatively impact key exporting partners. Tonsor said countries like Russia that are dependent on oil income are likely to import fewer protein pounds because of the hit to their economy. Overall, Tonsor sees lower oil prices to be bullish in terms of reducing the cost of doing business, increasing consumer income, which will result in higher protein demand domestically. 

I interviewed Tonsor at the recent American Farm Bureau Federation Annual Convention in San Diego.  Click here to read or to listen to this portion of that conversation that is being spotlighted as a Beef Buzz segment.

Food Demand Survey Shows Lower Willingness to Pay for Steak, Hamburger 

Consumers are willing to pay more than a year ago for most meat products in their supermarket- but did lower their willingness to pay for beef and pork products in the latest  Food Demand Survey (FooDS) released by the Ag Economics Department at Oklahoma State University. According to Dr. Jayson Lusk who authors the monthly report, consumers willingness-to-pay (WTP) for all beef and pork products decreased from one month ago and it increased for chicken.


WTP for steak and hamburger both fell by around 7% and deli ham WTP decreased almost 10% from one month ago. As of January, the dollar figure associated with the Willingness to Pay computation is $7.28 a pound for steak, $4.14 a pound for hamburger, $4.04 for a pork chop and $5.09 a pound for a chicken breast.


Weekly food-grocery expenditures were at $92.76, down slightly from one month ago. Weekly meals away from home increased.75 percent to $49.41. Consumers expect slightly higher meat prices this month and they are expecting a slight a decrease in purchases of all meat products. 

Click or tap here to read more about consumer concerns or for a link to the full survey.   

A front-page story in the New York Times delved into operations at the USDA's Meat Animal Research Center in Clay Center, Neb., raising questions about how the animals are treated.


The research facility is exempted from federal animal welfare regulations that address how live animals are treated right up to the point of slaughter. The story was written by Michael Moss, who was awarded a Pulitzer Prize in 2010 for a story he wrote about the E. coli outbreak in ground beef in 2007.


While noting that many advancements in quality and productivity of animals and meat products have resulted from the center's research over the last 50 years, Moss focused on the toll that some research projects have taken on the living animals.


 More details are available by clicking here.  

Oklahoma Farm Bureau Names 2014 Champion Award Recipients

Nine of the state's top agricultural advocates will receive the Oklahoma Farm Bureau 2014 Champion Award during the OKFB Leadership Conference, Feb. 16-17, at the Renaissance Convention Center Hotel in Oklahoma City. The Oklahoma Farm Bureau Board of Directors is recognizing the state leaders and legislators for going above and beyond to protect and improve agriculture and rural Oklahoma during the 2014 legislative session.


"It is the responsibility of Oklahoma Farm Bureau to protect the livelihood and legacy of our fellow farmers and ranchers," said Tom Buchanan, OKFB president. "We are honored to recognize these state leaders who continue to help make positive strides for agriculture and rural Oklahoma."


The following state leaders will be recognized for their outstanding efforts: Attorney General Scott Pruitt, Tulsa; Rep. Scott Biggs, Chickasha; Rep. Tom Newell, Seminole; Rep. Mike Sanders, Kingfisher; Sen. Brian Bingman, Sapulpa; Sen. A.J. Griffin, Guthrie; Sen. Ron Justice, Chickasha; Sen. Bryce Marlatt, Woodward; and Sen. Mike Schulz, Altus.


Nominations for the awards were received from county Farm Bureau boards and the OKFB Board of Directors.

Award winning broadcast journalist Jerry Bohnen has spent years learning and understanding how to cover the energy business here in the southern plains- Click here to subscribe to his daily update of top Energy News.

CattleFax Webinar Tonight - Being Made Available Free of Charge by Elanco

Cow-calf producers are at a fork in the road, according to CattleFax, the global leader in beef industry research, analysis and information. The current expansion environment has produced record profitability and exposed the segment to more financial and production risk than any other time in recent history. CattleFax will address this challenge during its next Trends+ Cow-Calf Webinar at 6:30 p.m. CT tonight.


Calf prices are nearly $100/cwt. higher than last year at this time, and bred cow values have increased nearly $1000/head in the last year. The dynamic market shift occurring in 2014 has motivated cow-calf expansion and created indecision at the same time.


During the one-hour session, CattleFax analysts Mike Murphy and Lance Zimmerman will discuss how producers can navigate marketing decisions and business plans for the next five to 10 years.  

All cattle and beef producers will benefit from CattleFax's analysis and perspective on factors influencing the cow-calf, stocker and backgrounding businesses. Click here to learn more about this webinar- including how to register to participate.

This N That- Snow Coming, Big Iron Happening and No Till Conference Arrives Next Week  

From Temps in the 70s to snow to temps bouncing back to the 50s and some 60s sums up our January weather across Oklahoma in recent days and the days to come.  News9 Meteorologist Jed Castles posted a graphic that shows some of the driest areas of Oklahoma have a chance for at least a little moisture dead ahead- and some of it may be the white fluffy kind.

After this weather making system makes its way across Oklahoma- we get sunshine and a warm up back to the 60s by Saturday, Sunday and Monday- altho winds will be kicking up and adding a brisk feeling to those temps.  

We have several resources on our weather page on our website- including the forecasts from News9 and News on 6, an Oklahoma Mesonet  link and a link to the National Weather Service. 

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It's Wednesday- and that means the Big Iron folks will be busy closing out this week's auction items - all 361 items consigned.  Bidding will start at 10 AM central time.                  

Click Here for the complete rundown of what is being sold on this no reserve online sale this week.

If you'd like more information on buying and selling with Big Iron, call District Manager Mike Wolfe at 580-320-2718 and he can give you the full scoop.  You can also reach Mike via email by clicking or tapping here.  

The 2015 No Till on the Plains Winter Conference gets underway next Tuesday- and there is still time for you to sign up and attend.   

This is the premiere No Till conference in this part of the country- and by attending- you will be exposed to cutting edge ideas on how to improve soil health by establishing and maintaining a No Till system on your farm.

Details are available here for you to sign up and attend.