Ag Loan Volumes Continue Rising as Lower Farm Incomes Persist

Loan volumes for almost all farming purposes rose at commercial banks, as many producers contended with tighter profit margins, according to the Federal Reserve's Agricultural Finance Databook.


The report published by the Federal Reserve Bank of Kansas City found overall growth in loan volume was driven by increased borrowing for current operating expenses and livestock purchases. Persistently low crop prices and elevated input costs continued to increase farmers' short-term financing needs, and high prices for feeder cattle further boosted loan volumes in the livestock sector.


Lower farm incomes kept loan demand strong throughout the Federal Reserve Districts surveyed, while loan repayment rates were slightly weaker. Despite reduced farm incomes and increased debt outstanding, loan delinquency rates declined and profits increased slightly at most agricultural banks.


Lower farm incomes also affected farmland values, but the changes varied widely among states. Farmland values in crop-intensive states decreased slightly, while demand strengthened for good-quality farmland and ranchland in states more concentrated in livestock production or with wealth generated from other sources, such as oil and natural gas exploration.


The Agricultural Finance Databook is a quarterly compilation of national and regional agricultural finance data. The complete release is available by clicking here. 

NCBA Urges U.S. Senate to Repeal Death Tax

Down through the years, small businesses and several agricultural groups have fought hard to totally eliminate the federal estate tax, otherwise known as the "Death Tax". This last week the House of Representatives voted in favor of total repeal of the estate tax. The only problem is for supporters of the elimination of the death tax that vote in the House might be all they get. The Senate might consider the legislation, but ultimately it is highly unlikely that President Barack Obama would ever go along with a total repeal of the estate tax.


For supporters, like the National Cattlemen's Beef Association, the House vote to repeal the death tax was a great win. NCBA Vice President Government Affairs Colin Woodall said this was a huge victory because the bill passed by a significant margin and several Democrats came over to support the legislation.


"I think it's a good sign that maybe finally we have been able to convince these members of Congress, especially the House, that the death tax repeal is not going to help the Paris Hilton's of the world, because they can already afford the attorney's and the accountants to protect their assets," Woodall said. "This is going to help true small businessmen and women and farmers and ranchers who often find themselves asset rich and cash poor and are the ones that are typically hit by the death tax. So to have that finally resonant, to get such a good victory on our hands is really something that we are really proud of." 


The legislation will still have go to the Senate, before it can be sent to the President. Woodall address what he expects from the Senate side.  Click here to read more or to listen to this Beef Buzz feature.  

Senate Finance Committee Advances TPA Bill- House Ways and Means Considers Today

The Senate Finance Committee approved Senate Bill 995 on Wednesday evening by a 20 to 6 vote. Senate Bill 995 would give President Barack Obama "fast track" or Trade Promotion Authority to negotiate a trade deal with other countries- and then bring that proposal back to Congress for a straight up or down vote. The House Ways and Means Committee is scheduled to debate its companion bill on Thursday morning.

After the vote, a couple of Ag Groups quickly offered praise to the Committee for moving forward. The President of the National Cattlemen's Beef Association, Phillip Ellis of Wyoming offered the following statement about this progress on TPA: ""We were very happy to see the Committee pass a TPA bill, without amendments that would hinder progress on future free trade agreements. Trade Promotion Authority gives our negotiators and trading partners a clear signal to negotiate the best deal for our products, knowing it will receive an up or down vote in Congress. Current and future free trade agreements give us the ability to take our beef, the best protein in the world, to the 96 percent of the world's population that lives beyond our borders."  

Also offering thanks to the Senate Finance Committee for their vote on Wednesday was the National Corn Growers- their President Chip Bowling then pointed his comments to the House- "We now call on members of the House Ways & Means Committee to pass a clean TPA bill out of committee, and for both the House and Senate to bring this important legislation to a floor vote as soon as possible."

Yesterday- Roy Lee Lindsey of the Oklahoma Pork Council told us that TPA is absolutely essential to complete as that will allow the Trans Pacific trade deal to be finalized- he says it could be THE most important trade deal to all of ag and especially to pork- period.

You can read the full statements from NCBA and NCGA- plus hear comments from Roy Lee on the TPA-TPP trade issue by clicking or tapping here. It's our Top Ag Story for this Thursday morning.

By the way- at the bottom of this story- we have additional links to trade "backgrounder" papers from a variety of ag groups- another reason to jump over to our website here.  

Go All Out- Oklahoma FFA Reporter Megan DeVuyst Wants Members to Give it Their All

Sometimes in life you just have to face for biggest fears. Megan DeVuyst wasn't always the confident young lady she portrays today. In junior high she was shy, awkward and hated public speaking. During her 8th grade year, she was entered in a FFA speech contest. She was so nervous that she hide under her family's kitchen table and cried. She said her dad consoled her and helped her believe it would be alright.


"It was basically like my parents forcing me to do my first speech," DeVuyst said.


That first speech had her so nervous she was shaking, but the more she was forced to do public speaking the easier it has become. Today she is much more confident in herself and those jitters have gone away. She said public speaking has become something she enjoys, as she feels like public speaking allows her to be herself and show her personality while educating and informing the audience.


In moving from North Dakota to Oklahoma, DeVuyst was also nervous about making friends at her new school. She soon found a common bond with her peers through FFA.


"I was looking for my place and looking where I fit, so when I got into the FFA that's where I found my passion, so it started with public speaking and showing cattle," DeVuyst said. "It's really what got me involved and found what I think my future will be one day."

As the Oklahoma FFA Reporter, DeVuyst is getting ready for the 2015 Oklahoma State FFA Convention.  She is being featured in April and May as one of the voices in an Oklahoma FFA radio campaign to raise awareness for the young men and ladies who wear the Blue and Gold jacket in the state of Oklahoma. The Campaign is being sponsored by SandRidge Energy, the Power of Us. Click here to learn more about the SandRidge story. 

You can hear the full conversation that I had with Megan DeVuyst by clicking or tapping here.  

What You Need to Know About the Current Highly Pathogenic Avian Influenza Outbreaks

By Dr. John Clifford, USDA Chief Veterinary Officer


Today I had a press call with our USDA partner, Dr. Alicia Fry from CDC and Dr. David Swayne of USDA's Southeast Poultry Research Lab to help get out some important information about the avian influenza event currently occurring in the United States.


Since December 2014, USDA has confirmed cases of highly pathogenic avian influenza (HPAI) H5 in the Pacific, Central and Mississippi Flyways (migratory paths for birds). The disease has been found in wild birds, as well as in some backyard and commercial poultry flocks.


There are three important things that you need to know about this situation:


1.Our food supply is safe. Food is safe because the United States has the strongest AI surveillance system in the world. We actively look for the disease, educate the public and producers on the most appropriate practices to ensure their health and safety, as well as provide compensation to affected producers to encourage disease reporting.


2.The risk to humans is low. No human infections with these viruses have been detected, and the CDC considers the risk to people from these HPAI H5 infections in wild birds, backyard flocks, and commercial poultry to be low.


3.USDA will continue to do everything it can to support states and producers. We are coordinating closely with State officials and other Federal departments on rigorous surveillance, reporting, and control efforts. At the same time, USDA will continue to work with Congress to ensure that we are able to provide a much-needed safety net to the poultry producers who are experiencing economic hardships as a result of losses due to the disease.  

USDA and its Federal and State partners are responding quickly and decisively to these outbreaks.  Click here to read more about this situation.  

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.

Growth Energy Commends the American Farmer on Earth Day

April 22 marks the 45th anniversary of Earth Day. For 45 years, concerned citizens have been taking action to help ensure our planet and our environment are protected for generations to come. But long before the first Earth Day was recognized, the American farmer was sustainably providing food, feed, fiber and fuel for Americans and citizens across the globe. As true stewards of the land, American farmers have ensured we will always be able to grow the crops we need for food AND fuel. In recognition of Earth Day and the American farmers' contribution to sustainability, Tom Buis, CEO of Growth Energy, issued the following statement:


"For hundreds of years, America's farmers have been working our land and providing the country and the world with high quality food, feed, fiber and fuel. These same farmers are committed to meeting the challenges of the 21st century with both cutting-edge innovations and a deep-rooted respect for the Earth. Farmers know that protecting the environment and sustaining the resources they use is critical to our current way of life and their livelihood. Furthermore, they understand the commitment that must be made must be made for future generations to continue their legacy and thrive.


"The American farmer is also the backbone of the renewable fuels industry. America's biofuel industry is producing the cleanest fuels in the world, and thanks to American farmers' hard work and commitment to our planet, we are making even bigger leaps forward right now. We are reducing our dangerous dependence on fossil fuels and foreign oil, all while reducing greenhouse gas emissions and creating new American jobs that cannot be outsourced." 

Click here to read more about Earth Day.  

Coming Friday- Cattle on Feed and Superior's Feeder Cattle Sale Plus a Chickasha DASNR Event

Tomorrow will see USDA offering their latest set of Cattle on Feed numbers- and one of the pre report guesses that we get regularly comes from Allendale and Rich Nelson- Here's his take on the Friday feedlot count:

"March Placements are expected to be 3.9% lower than last year at 1.737 million head. Our estimate is the smallest placement in seven years. USDA's cattle feeding margin ended the month with a $177 per head loss on outgoing cattle. This would be four months in a row of losses. Corn averaged $3.90 in Western Kansas in March ($3.92 in February, $4.85 in February 2014). March placements supply the August through October slaughter period.

"Allendale anticipates a Marketing total 3.8% lower than March 2014. There was one more weekday and one less Saturday which artificially inflated the number. Our 1.597 million head estimate is the smallest March marketing since the current data-series started in 1996.

"Total Cattle on Feed as of April 1 is 1.2% lower than last year. That is a decrease from the February 1 total of 0.5% under last year."

The USDA Cattle on Feed report will be released by Uncle Sam on Friday afternoon at 2 Pm central time.

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Superior Livestock will be offering 40,000 head of cattle on Friday during their regular every other week sale that starts at 8:00 AM central time on DISH Network Channel 232 as well as on the Internet at Superior Click to Bid.  

Click here for all the details on the sale that starts at 8 tomorrow morning.