U.S. Beef Exports Recovering After Rough Start in 2015 

U.S. meat exports have had their challenges in 2015, but beef has continued to hold strong. U.S. Meat Export Federation President and CEO Phil Seng talked with fellow farm broadcast colleague Ken Rahjes at the Summer Cattle Industry Convention last week in Denver. Seng said the value of beef exports are higher than last year's strong performance.


"We're up about two percent as far as our value and that's building on a $7 - billion dollar market last year as far as exports," Seng said. "I think we're looking right at about $300 a head as far as the export dividend to the producer."


The return to beef producers could go higher with movement on the Trans Pacific Partnership (TPP), a trade agreement between the U.S. and eleven other countries. The Obama Administration has recently participated in TPP negotiations after being given Trade Promotion Authority recently by Congress. Seng said in 2015 the U.S. has had good sales to Asian Pacific Rim. He said Korea has had some challenges with Middle East Respiratory Syndrome (MERS) which has caused fatalities and concerns over the outbreak, which has hurt the food service industry in Korea. Seng said exports have been strong in Japan with sales are above last year's levels for the first five months of the year in terms of volume and value.


In looking back at the first half of the year, exports started off rough in getting product out of the United States. Seng said the West Coast Labor dispute disrupted product flow, so customers were sourcing meat products from other destinations, as a result beef exports from Australia are significantly higher this year. With passage of the Japan-Australia Economic Partnership Agreement, Seng said Australia has about a ten percent duty advantage over the U.S. That is being compounded by the Australian dollar depreciating while the U.S. dollar has appreciated in value.


Phil Seng was our guest on Beef Buzz- and you can hear his comments by clicking or tapping here. 
 

Senate Finance Committee Introduces Tax Bill to Help Agriculture, Other Small Businesses

The Senate Finance Committee responded to the concerns of farmers and ranchers across America as it put forward a bill today to extend important tax provisions through 2016.


The legislation includes two provisions that let small businesses deduct major capital expenditures over just a few years, rather than the full life of the equipment they buy. Known as Section 179 small-business expensing and bonus depreciation, these measures have already boosted the economy and increased cash flow for farmers and ranchers. Extending the provisions now is critical and an important step toward making them a permanent part of tax law. In a business marked by uncertainty, farmers and ranchers need a tax code that allows them to plan ahead and invest in the future of their businesses. The bill also includes language to promote the production and use of renewable energy, as well as incentives for charitable donations and higher education.


"Section 179 and bonus depreciation lend stability and help minimize risk in an unpredictable industry," AFBF President Bob Stallman said. "Farmers and ranchers rely on tax provisions that allow them to manage their cash flow and put their money back to work for their businesses and local economies."
 

Click here to read more Farm Bureau's take on these provisions approved by the Senate Finance Committee.

Corn Farmers Committed to Expanding Ethanol Infrastructure

The National Corn Growers Association took another big step toward providing the driving public with lower gas prices and more fuel choice including better access to higher blends of home-grown American Ethanol.


NCGA announced the investment of an additional $500,000 to an innovative program called Prime the Pump, which seeks to expand fueling infrastructure capable of delivering higher blends of ethanol fuel to American consumers. This increases the NCGA commitment to $2 million in the last year.


Prime the Pump will use the funds pledged by corn farmers as matching funds to secure grants under the recently announced program by the U.S. Department of Agriculture. USDA's Biofuel Infrastructure Partnership is making $100 million in grants available. 

Click here to read more about NCGA's increased funding commitment. 

Dairy Checkoff Pushes Back with 'The Udder Truth'- Using Videos to Counter Production Related Myths

The dairy checkoff is debunking some consumer myths and setting the record straight about the work dairy farmers do and the milk they produce.


Dairy Management Inc.™ (DMI), which manages the national dairy checkoff on behalf of America's dairy farm families and importers, will launch "The Udder Truth," a series of videos and edgy content designed to address common consumer myths, on Tuesday.  


The Udder Truth is a continuation of the checkoff's consumer confidence work to help protect and grow public trust in dairy farmers, products and the industry, particularly among millennials.


"This effort is unlike anything the checkoff has ever done before," said Paul Rovey, Arizona dairy farmer and chairman of DMI. "It's critical that we tell our story in new ways such as The Udder Truth to capture the interest of the next generation. We need to make sure they know the true story of where their food comes from."


A three-part video series features farmers debunking common myths such as antibiotics, animal care and "big ag." The videos are now online at the UdderTruth.Org.  Click here to read more about the Udder Truth.

Here's episode one that features Annie Link who takes aim at critics of "big farms."

The Udder Truth- Episode One

Nationwide Survey of Cattle Producers Finds Smallest Opposition Ever to Beef Checkoff

Three out of four producers (76 percent) continue to support the Beef Checkoff Program and the more they know about the program, the more supportive they are. In addition, the number of producers who say they do not support the program, at 10 percent, is the lowest ever found.


The random survey of 601 beef and dairy producers nationwide was conducted by the independent firm Aspen Media & Market Research in late June and early July. The survey found an overwhelming majority of beef and dairy producers continue to say their beef checkoff has value for them in many ways:

-- 81 percent of producers say the beef checkoff has helped to contribute to a positive trend in beef demand.

-- 71 percent of producers say the beef checkoff contributes to the profitability of their operations.

-- 71 percent say the checkoff represents their interests.

-- 68 percent of producers believe the checkoff is well managed  

Click here to read more about these research findings.  

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.

Peel Analyzes Summer Meat Demand of Beef, Pork and Poultry

Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist, writes in the latest Cow/Calf Corner newsletter.

Meat prices are higher in the latest retail prices released for the month of June. The All Fresh retail beef price was $6.114/lb., up $0.059 cents from May and up $0.606/lb. from one year ago. The June retail pork price was $3.703/lb., up $0.007/lb. from last month but $0.413/lb. lower than June of 2014. The retail broiler composite price was $1.987/lb., $0.055/lb. higher than May and up $0.038/lb. year over year.   


Pork and broiler retail prices increased in June despite continued increases in supplies for both meats. High beef prices may be providing more evident support for the other meats. However, retail beef prices remain record high relative to pork and broiler prices. In June, retail beef prices were 3.1 times retail broiler prices, continuing a ratio above 3.0 that first occurred in December 2014. Both retail beef and broiler prices climbed about 6 cents per lb. from May to June. Wholesale poultry breast meat and leg prices have continued to decline through June and into July, while wing prices have be mostly steady since May. Weak broiler exports, down 8.6 percent for the year to date, due to the strong dollar, avian influenza and the Russian poultry ban, are contributing to soft broiler wholesale values.
 

Click here to read more about retail beef prices and demand pressures.

This N That - Taste of Elegance, Big Iron Wednesday and OCA Just a Day Away

We will have a more complete story tomorrow in our email- but just wanted to offer kudos to Roy Lee Lindsey and his folks at the Oklahoma Pork Council for a job well done at their Taste of Elegance event last night at the National Cowboy Hall of Fame(I know- it's the National Cowboy and Western Heritage Museum). 

Anyway- a dozen Chefs did their magic and while my favorite did not win the overall prize or even the People's Choice award- I want you to fest your eyes on my choice of goodness with just a little bit of a kick- the creation of Patrick Williams of Vast- Braised Pork Shoulder with Red Eye Gravy- 

Yum! (I was told I am a country boy since I went with the Red Eye Gravy)

Congrats to the First Place Award Winner- Chef Leland Spence of the Tulsa Renaissance Hotel for his Braised Pork Belly with Smoked Sweet Potato dish.

More on Taste of Elegance to come.

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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 382 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.  

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Thursday is tomorrow- and tomorrow is only a day away- and that means the Cattle Industry gathering at the Reed Center is only a day away as well.

Details on the 2015 edition of the OCA Convention with it's Richard Gebhart inspired theme "Squared Away" are available here. 

We invite you to join us on Friday afternoon at 1:00 PM as we will be moderating a panel on State Question 777- the all star panel includes House Author of the resolution approved by the Legislature earlier this year, Scott Biggs, Oklahoma Pork Council Exec Roy Lee Lindsey and consultant Glenn Coffee who is helping get the coalition of supporters organized and ready for a Yes Vote next November.