Senators Move Forward with Bill to End Cuban Embargo, Opportunity For U.S. Wheat

A bipartisan group of lawmakers led by Senator Amy Klobuchar (D-MN) introduced major legislation that would end the U.S. trade embargo of Cuba. The bill would end the restrictions on U.S. companies doing business in Cuba that have been in place since 1961. Senators Mike Enzi (R-WY), Debbie Stabenow (D-MI), Jeff Flake (R-AZ), Patrick Leahy (D-VT), and Dick Durbin (D-IL) co-sponsored the bill.

 

The National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW) are pleased to see bipartisan Congressional progress being made and look toward a speedy and permanent end to the Cuban trade embargo. NAWG and USW are members of the U.S. Agricultural Coalition for Cuba, which also endorsed the legislation.


"It is refreshing to see our nation's lawmakers reaching across the aisle to produce real and meaningful change. Increased trade with Cuba has great potential for U.S. wheat growers," said NAWG President Paul Penner.  Click here to read more from NAWG/USW.

American Soybean Association President and Brownfield, Texas, farmer Wade Cowan issued the following statement:


"Soybean farmers are, perhaps more than our counterparts in any other commodity, acutely aware of the benefits of growing our international trade relationships," Cowan said.  "We are the nation's leader in agricultural trade not because of one large relationship with a major purchaser, but because of our work in emerging economies like Cuba's, which is why we're so excited to support-as we long have-an end to the embargo. We applaud Sen. Klobuchar and all the bill's co-sponsors for their bold approach in introducing this bill, and we fully encourage its passage."  To read more from ASA, click here.    

Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel agrees with other economists that 2014 was an incredible year of profitability for all segments of the beef cattle business. At the recent Cattle Industry Convention in San Antonio, Texas, Dr. Peel said beef cow producers are seeing a lot of incentive with these high record prices to step up, hold back females and start that process of rebuilding their beef cow herd to have more output over the next few years. Dr. Peel said it's going to take some time, but clearly the signals are there after multiple years of drought reduced the nation's cowherd to historically small levels.


Over the last three years, Peel doesn't think producers have had a liquidation mindset. He believes producers have been ready to expand and were aware of how small the nation's cowherd was, but producers haven't had the resources (grass and water) to be able to grow their herd. Peel contends there is a certain amount of pent up expansion and that's why there has been a rapid transition from liquidation to expansion.


"I think its pretty clear that producers intentions were somewhat different than what the reality was that they had to deal with," Peel said. 

 

In our first Beef Buzz segment with him this week- Peel also addresses some of the tough decisions producers have had to make with high cattle prices. Read or have the opportunity to listen by clicking here.  (we'll continue our visit with Dr. Peel in subsequent Beef Buzzes this week)  

Meanwhile, in this week's Cow/Calf Corner newsletter, Dr. Peel addresses the weather, outlook for the cattle market and drought.  Click here to read the February Update.    

Oklahoma Pork Producers Will Gather in Norman on February 27

The Oklahoma Pork Congress is scheduled for Friday, Feb. 27, at the Embassy Suites Norman - Hotel and Conference Center in Norman, Okla. More than 150 pork producers, allied industry members and guests will meet for updates, programs, lunch, awards banquet, and business meeting as well as silent and live auctions.


The day will begin at 10 a.m. with an update from the National Pork Producers Council and the National Pork Board. After the national updates about the industry. An update and discussion with Dr. Clint Rusk, Animal Science Department Head at Oklahoma State University comes next. In addition, a discussion about pain mitigation research will take place with Dr. Michelle Calvo-Lorenzo and Justin Lyle.


During lunch, Class III of the okPORK Youth Leadership Camp plans to give a presentation about their travels through the state learning about the Oklahoma pork industry. The camp participants plan to spend the day helping with Pork Congress activities and talking with members about their experiences.  

To read more about the Oklahoma Pork Congress lineup, click here.  ALSO- See below for the Public Notice about the Pork Board elections that will take place that day.

Jody Campiche Offers "End Game" Update on Farm Bill Decision

Several farm bill related deadlines are approaching for farmers. This month farmers need to decide if they will reallocate their base acres and update yields and in March they need to select a safety net program offered through the 2014 Farm Bill. Speaking at the Oklahoma Crop Improvement Association annual meeting, Oklahoma State University Assistant Professor and Extension Economist Dr. Jody Campiche shared how she thinks a lot of farmers still have to decide if they will reallocate acres by the February 27th deadline.


"Right now I don't think we have seen a lot changes yet," Campiche said. "I think there are a lot of people haven't been in yet, but then in Oklahoma there is going to be a lot less base reallocation, then some of the other areas of the country, because a lot of our producers have wheat base and they have mostly planting wheat and if that is the case, then you really don't have a base reallocation option." 


Farmers have until March 31st to choose a safety net program through the 2014 Farm Bill. Farmers can select the Agricultural Risk Coverage (ARC) program or the Price Loss Coverage (PLC) program through the Farm Service Agency (FSA). She said it is easier to make that decision if a farmer has wheat right now as the National Agricultural Statistics Service (NASS) has put out their county wheat yields averages. She said those will not be the final yield as the FSA will adjust that figure for failed acres, which will lower the county average.


"We have a pretty good idea which counties will trigger ARC on wheat for 2014 and which ones won't," Campiche said.   

That is being taken under consideration as farmers make those choices. Campiche said if farmers are more worried about the price of wheat dropping further over the life of the Farm Bill, then they will likely select PLC instead.  To read or to have the opportunity to listen to Jody outline why farmers may select PLC instead by clicking here.  

Rural Opportunity Zone Bill Passes Out of House Committee

A measure that would create Rural Opportunity Zones in counties across the state passed easily out of a House committee.


House Bill 1747, by state Rep. Tom Newell, sailed out of the House Agriculture & Rural Development Committee by a 14-0 vote. The bill allows for the creation of 25 Rural Opportunity Zones across the state. For taxable years beginning in 2016, this legislation would allow for a five-year tax exemption for anyone who moves from out-of-state into a county projected to see a population loss between the effective date and 2075 per the 2012 Demographic State of the State Report - Oklahoma State and County Population Projections through 2075.


"Population loss is detrimental to not only rural Oklahoma, but the entire state," said Newell, R-Seminole. "A vibrant, rural Oklahoma is essential for the overall health of the state. This legislation creates a tool that helps community leaders recruit doctors, nurses, teachers and other professionals as well as skilled workers. Many of these counties compete directly with Texas, which has no income tax and rural counties in Kansas which has its own version of Rural Opportunity Zones. In the words of Brian Bush, the Director of the Altus Economic Development Corporation, 'This legislation will fuel a Rural Renaissance in Oklahoma.'

To read more about this bill, including why Speaker of the House Jeff Hickman, from Fairview in northwest Oklahoma, is a supporter of the zones, click here.   

Award winning broadcast journalist Jerry Bohnen has spent years learning and understanding how to cover the energy business here in the southern plains- 

Mad Cow Disease Remains a Trade Killer- South Korea Bans Canadian Beef After Latest BSE Case Reported in Alberta

South Korea has suspended quarantine inspections of Canadian beef after the major exporter confirmed its first case of bovine spongiform encephalopathy since 2011, the agriculture ministry said according to the Korean news agency Yonhap.

The Korean News report quotes a government spokesman as saying  "Although Canada has provided limited information, the (Korean) government has stopped the quarantine inspections to prevent any beef infected with the mad cow disease from entering the country. As the mad cow disease is not an infectious disease, (we) will decide whether to suspend imports considering possibilities of additional outbreaks."   

Click here for the complete article found on the Yonhap news service. 

The Canadian Food Inspection Agency last Friday confirmed the BSE case in a beef cow from Alberta. No part of the animal's carcass entered the human food or animal feed systems.

Canada remains a "controlled BSE risk" country, as recognized by the World Organization for Animal Health (OIE). The Canadian government contends that this case should not have affected current exports of Canadian cattle or beef. 

 Public Notice by Oklahoma Pork Council  And the National Pork Board 

The election of pork producer delegate candidates for the 2016 National Pork Producers (Pork Act) Delegate Body will take place at 3 p.m. on Friday, February 27, 2015 in conjunction with the Oklahoma Pork Congress and Annual Meeting which will be held at the Embassy Suites Convention Center and Hotel, 2501 Conference Dr., Norman, Okla. All Oklahoma pork producers are invited to attend.

Any producer age 18 or older who is a resident of Oklahoma and has paid all assessments due may be considered as a delegate candidate and/or participate in the election. All eligible producers are encouraged to bring with them a sales receipt proving that hogs were sold in their name and the checkoff deducted.

If you are interested in being a candidate, please prepare a short (1/2 page) biography telling about yourself and send it to the Oklahoma Pork Council, ATTN: Election Committee, 901 N. Lincoln Blvd., Suite 380, Oklahoma City, OK 73104-3206 to arrive by February 21, 2014. Nominations will also be accepted from the floor.