House Ag Committee Assesses Progress of Global Derivatives Reforms, Conaway Opposes Increased Funding to CFTC

The House Agriculture Committee Wednesday held a hearing to assess the progress of global derivatives reforms since the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law five years ago. Dodd-Frank imposed sweeping new regulations over the financial industry, including the regulation of swaps under Title VII, which had previously not been regulated in the U.S.


After the 2008 financial crisis, leaders from 19 of the world's largest economies and the European Union (the G-20) formulated a global plan to prevent a similar crisis from reoccurring. They set out five categories of reforms for derivatives products- clearing, margining, electronic execution, data reporting, and capital standards - to make the markets safer. Title VII of Dodd-Frank was the U.S. effort to implement those reforms.


Since the law's passage five years ago, Members of the Agriculture Committee have repeatedly heard testimony from market participants supportive of the goals of Title VII, but deeply frustrated with the implementation. Today's hearing examined the progress regulators are making in achieving the G-20's goals. Witnesses highlighted the still unresolved impasse over clearinghouse recognition, trade execution requirements that are fragmenting liquidity, reported data that is incomprehensible to regulators, and the U.S. margin and capital rules that are significantly different than international standards.


"The testimony we heard today confirms the committee's concerns over the lack of coordination and harmonization that jeopardizes the implementation of reforms to global swaps markets. Five years have passed since President Obama signed into law the derivatives reforms the G-20 leaders promised to enact. Despite 50 rulemakings by the CFTC, so far, these reforms have not lived up to their promises, and there is a lot of work to be done. Each failure to harmonize rules drives a regulatory wedge between the United States and our global trading partners, needlessly complicating financial markets and weakening the derivatives reforms the G-20 sought to achieve," said Chairman K. Michael Conaway, Chairman of the Agriculture Committee. 

Chairman Conaway said in his opening statement he opposes any increase in funding for the CFTC until it is reauthorized.  Click here to read more from Chairman Conaway.

OSU Research Project Progresses in Examining Water Intake in Cattle

Oklahoma State University is part of a million dollar research project that is looking at new ways for agriculture to adapt to climate variability. This project is specifically looking at water efficiency in cattle. The research project is being funded through the US Department of Agriculture's National Institute of Food and Agriculture. OSU Assistant Professor Dr. Megan Rolf serves as the Principal Investigator for the project.


I caught up with Dr. Rolf at the recent Oklahoma Cattlemen's Association annual convention about second year of the research effort. She said the project is allowing researchers to learn about water use by cattle and the amount of variation of water use from one animal to another.


"So that's one of the unique things about the study, is that instead of using pen data on animals, we can actually dial down to individual animals and understand whether there are big differences in water intake in animals that are performing very similarly in terms of feed intake, or average daily gain, carcass traits, things of that nature," Rolf said.


Dr. Megan Rolf visited with us on our Beef Buzz report- and you can hear her comments on this research and extension project by clicking or tapping here.    

USDA Announces Private Sector Investments through U.S. Rural Infrastructure Opportunity Fund

U.S. Agriculture Secretary Tom Vilsack Tuesday announced the first round of investments in rural infrastructure projects through the U.S. Rural Infrastructure Opportunity Fund. Through the Fund and its expanded public-private partnerships, USDA has facilitated the investment of nearly $161 million in private capital 22 critical water and community facilities projects in 14 states, maximizing the impact of USDA's own investments in job-creating rural infrastructure projects across the country.


"The Fund and USDA's other public-private partnership efforts help to facilitate private investment in rural businesses and infrastructure projects and maximize USDA's own record investments in rural America," said Tom Vilsack, U.S. Department of Agriculture Secretary and Chair of the White House Rural Council. "USDA and other agencies invest in infrastructure through a variety of federal initiatives, but our resources are finite and there are backlogs of projects in many parts of the economy. Efforts like the Fund help encourage substantial private investment in even more projects that help to grow the rural economy and support rural communities where people want to live, work and raise their families."


Strong, secure infrastructure-roads and bridges, but also internet access and community facilities like hospitals and schools-improves connectivity and access to information, moves products to market, and makes communities competitive and attractive to new businesses and investments. 

Click here to read more about the community facilities projects, water systems and other critical infrastructure projects. 

Oklahoma Department of Agriculture Invites Comments for Pollinator Plan

The Oklahoma Department of Agriculture, Food and Forestry will host a public hearing to gather comments on its proposed pollinator plan. The meeting will take place on Tuesday, August 11, 2015 from 1 p.m. - 3 p.m. in the auditorium at Langston University's campus in Oklahoma City located at 4205 N. Lincoln Blvd., Oklahoma City, OK 73105.


A draft pollinator plan for participants to comment on is posted on the www.ag.ok.gov website. There will be a panel of four speakers including an Oklahoma State University entomologist, a commercial beekeeper from Oklahoma, a backyard beekeeper from Oklahoma and a representative from a national chemical company.


Following the panel's presentations, there will be time for comments from the public on the draft pollinator plan drawn up by Dr. Don Molnar for ODAFF. The Oklahoma State Board of Agriculture will adopt a pollinator plan at a later date.


Pollinators are essential to agriculture in Oklahoma. They are responsible for the success of many of the state's crops like canola, sesame and watermelons. Native pollinators are also necessary for many native plants like redbud, Oklahoma's state tree, and Chickasaw plum.
 

Oklahoma Cattlemen Honor Late Richard Gebhart as Hall of Fame Inductee

The late Richard Gebhart was inducted into the Oklahoma Cattlemen's Association Hall of Fame during the recent Oklahoma Cattlemen's Association (OCA) Convention and Trade Show.


Richard Gebhart passed away on May 31. At the time of his passing, he was serving as OCA president and would have finished his term on July 25, 2015.


Richard is the third inductee into the OCA Hall of Fame and will always be remembered as an exemplary leader in the beef industry.


Richard and his family operated Beacon Hill Ranch, a Hereford operation established in northeastern Oklahoma in 1909. He was an active volunteer leader in the cattle industry for many years at all levels. Nationally, he was treasurer of the National Cattlemen's Beef Association and had served as chairman of the Federation of State Beef Councils and vice chair of the Joint Issues Management Subcommittee. He also served as an advisor on several sustainability efforts involving the beef supply chain, and participated in writing a comprehensive Life Cycle Assessment of the U.S. beef supply chain.


"He was an outstanding leader with an unparalleled vision and commitment for moving our cattle industry forward," said newly elected OCA President, Charlie Swanson.  

Click here to read more about Richard Gebhart's involvement in the beef industry and to learn about the Gebhart Legacy Fund 

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.

Smaller Cattle Operations Should Invest in Planning Now to Increase Profit Later

The average beef cow herd may only be 40 head according to U.S. Department of Agriculture, but those with small herds can add value by working together. Tom Brink, Top Dollar Angus, gives some suggestions for smaller cattle operations to find their path to profit.


"..if you're a smaller producer and maybe you can only come up with 30,000 pounds of steers to put on a load or to contribute toward a load--and of course a standard load semi load is 50,000 pounds--the thing to do is to find somebody in the, in the vicinity, in the same county, in the same general area that you are that has similar genetics, similar cattle, similar weights and to work with them to put together a load," Brink said. And it's really not that hard to do. It just takes a little bit of cooperation and a little bit of planning ahead if you know some people in your area that have similar genetics, they don't have to be identical."


Brink recommends limiting weight variation to 250 pounds from the lightest to the heaviest, and consider that range when pooling animals together. But marketing is only part of the path to higher profits-that path begins with focused planning.  Click here to read more recommendations from Tom Brink on what producer's should be investing in.  

This N That- Grassley Wants Probe of JBS- Cargill Deal and End of the Month Rain in the Mix

Senator Chuck Grassley of Iowa sent a letter earlier this week to the Department of Justice pressing the Antitrust Division to review JBS USA's proposed acquisition of Cargill Inc.'s pork unit.

Grassley expressed concern that the merger will increase concentration and decrease competition in the U.S. pork industry.
 
"If the JBS-Cargill deal is finalized, the four largest pork processors will control roughly 71 percent of the processing capacity in the country.  Continued mergers and acquisitions in an already consolidated pork industry could reduce competition.  And, reduced marketing opportunities for farmers and independent producers, and the subsequent impact it could have on pork prices for consumers is of great concern," said Grassley.  

If the JBS-Cargill deal is consumated, it will also mean that JBS will become more vertically integrated in the pork industry in the US.  The Cargill pork unit includes several sow units- including one in eastern Oklahoma between Poteau and Ft. Smith, Arkansas, as well as the old Premium Standard Sow Farms in the Dalhart, Texas area. Cargill had acquired the Dalhart operations of Premium Standard Farms LLC in the spring of 2011.

To read more-and to have a chance to review the full Grassley Letter to Justice- click or tap here.

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Some folks like to call this the Monsoon season for the Oklahoma/Texas Panhandle and west into New Mexico- and the next seven days will certainly point to the validity of that concept.  The "QPF" forecast map for rainfall across the US for the next seven days shows a TON of rain in the northern Gulf of Mexico with a lot of rain from New Orleans along the Gulf Coast down to Sarasota, Florida.  It also shows rain across New Mexico stretching into the Panhandles and even some into the western body of our great state.   

The Dalhart, Texas area shows a rainfall amount of more than three inches is possible-  

Here's the Map- courtesy of DTN's Bryce Anderson who posted it on Twitter this morning: