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Trade, market access and building demand all important in the face of large corn crop

(ILCG) With corn production yield estimates coming in nationally at a record-high number, and the Illinois yield to be the second largest on record, market access will be a key factor in limiting losses due to depressed corn prices. “

This is the type of scenario that we pencil out to demonstrate why market access is so important to corn farmer profitability,” said Illinois Corn Growers Association President Justin Durdan. “Now it looks like our “what if” scenarios might become “what now” situations as we face continued below cost of production prices, threats to our export relationships, and deteriorating transportation infrastructure.”

The November 9, 2017, National Agricultural Statistics Service (NASS) Crop Production report pegs the national average per acre corn yield at 175.4 that if realized, would be a record. “We cannot say strongly enough how important export markets are to the profitability picture for corn farmers,” said Durdan. “Specifically, NAFTA needs to remain in effect, and maybe even improved by the Trump Administration, but we cannot withdraw because losing our top corn customer right now is unimaginable.”

Secretary Perdue said this past week that the U.S. Department of Agriculture is preparing for the loss of NAFTA, just in case, but at the farm level, no amount of preparation will make a difference to losing that market, especially since we believe that more than half the corn that ends up in Mexico from the U.S. was grown on an American farm.

Organic livestock rule delayed until January

The U.S. Department of Ag announced it will delay the Organic Livestock and Poultry Practices Rule until January 19. The Hagstrom Report says the announcement was strongly criticized by several House Democrats but praised by House Ag Committee Chair Michael Conaway, a Texas Republican.

There are several provisions under the rule, an example of which is requiring outdoor access for poultry that will produce meat to be labeled “Certified Organic.”

The USDA announcement says during the course of reviewing the rule, officials discovered a material error in the record and there was a question about the scope of statutory authority. The agency also says it’s delaying the rule so that it can answer important questions, including the likely costs and benefits analysis.

However, three Democrats, including Ron Kind of Wisconsin, said they were outraged, saying, “This is not a regulation for the sake of regulation,” they said., “This rule has already undergone over 10 years of public process and debate.” The Organic Trade Association filed a lawsuit against USDA, seeking a judicial review of the Trump Administration’s delay of final organic livestock production rules. While the lawsuit is still pending, USDA must answer it by mid-November.

Monday’s closing grain bids

November 13th, 2017

 

St Joseph

 

Yellow Corn

3.02 – 3.12

White Corn

no bid

Soybeans

9.04 – 9.12

LifeLine Foods

 3.14

 

 

Atchison

Yellow Corn

3.02 – 3.07

Soybeans

 8.94

Hard Wheat

 3.57

Soft Wheat

 3.39

 

 

Kansas City Truck Bids

 

Yellow Corn

3.15

White Corn

no bid

Soybeans

9.23

Hard Wheat

3.83 – 3.88

Soft Wheat

3.74 – 3.79

Sorghum

3.40


USDA Cash Grain Prices

For more information, contact the 680 KFEQ Farm Department.
816-233-8881.

Delay sought for reporting farm air emissions

(NPPC) With a Nov. 15 deadline looming, the National Pork Producers Council and the U.S. Poultry and Egg Association today filed a brief in support of the U.S. Environmental Protection Agency’s motion to delay a mandate that farmers report certain air emissions from manure on their farms. In April, a federal court, ruling on a lawsuit brought by environmental activist groups against EPA, rejected an exemption for farms from reporting “hazardous” emissions under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and the Emergency Planning Community Right to Know Act (EPCRA). CERCLA mainly is used to clean hazardous waste sites but has a federal reporting component, while EPCRA requires entities to report on the storage, use and release of hazardous substances to state and local governments, including first responders. EPA had exempted farms from CERCLA reporting, reasoning that while emissions might exceed thresholds that would trigger responses under the law such responses would be “unnecessary, impractical and unlikely.” The agency limited EPCRA reporting to large, confined animal feeding operations (CAFOs), requiring them to make one-time reports. Under the decision from the U.S. Court of Appeals for the District of Columbia Circuit, all livestock farms, not just CAFOs, are required to report.

WTO ruling an important win for U.S. beef exports to Indonesia

(USMEF) The World Trade Organization has ruled in favor of the United States in a dispute over Indonesia’s complex import requirements for a number of agricultural products, including U.S. beef. The ruling is expected to open up significant new export opportunities for U.S. beef in the Indonesian market. Thad Lively, U.S. Meat Export Federation senior vice president for trade access, explains that Indonesia’s import restrictions were originally aimed at achieving self-sufficiency in beef production but actually resulted in tight beef supplies and high prices for consumers. He notes that the ruling gives both U.S. exporters and Indonesian importers confidence that the market will remain open to U.S. beef, paving the way for significant growth. Last year U.S. beef and beef variety meat exports to Indonesia were 10,783 metric tons valued at $39.4 million, making it the ninth-largest export market for U.S. beef by volume and 15th-largest by value. Through September of this year, exports to Indonesia already nearly matched last year’s totals, reaching 9,934 mt valued at $36.6 million. Indonesia is currently the third-largest export market for U.S. beef hearts, following Mexico and Hong Kong.
More details on the ruling are available from the WTO website and from the Office of the U.S. Trade Representative.

Friday’s closing grain bids

November 10th, 2017

 

St Joseph

 

Yellow Corn

3.03 – 3.11

White Corn

no bid

Soybeans

9.17 – 9.25

LifeLine Foods

 3.14

 

 

Atchison

Yellow Corn

3.04 – 3.06

Soybeans

 9.07

Hard Wheat

 3.63

Soft Wheat

 3.46

 

 

Kansas City Truck Bids

 

Yellow Corn

Closed

White Corn

Closed

Soybeans

Closed

Hard Wheat

Closed

Soft Wheat

Closed

Sorghum

Closed


USDA Cash Grain Prices

For more information, contact the 680 KFEQ Farm Department.
816-233-8881.

Cautious Optimism Ahead in Grain, Ethanol Markets

CoBank says rising incomes around the globe will help push demand higher and create more opportunities for U.S. exports in grains, oilseeds, and ethanol. A new report from CoBank’s Knowledge Exchange Division says things like commodity surpluses around the globe, trade agreement negotiations, and the relative strength of key currencies all will influence the scope of growth over the next three years. Tanner Ehmke, the manager of the Knowledge Exchange Division, says in the absence of major weather disruptions, global grain surpluses will continue over the next three years. “Acreage expansions and improvements to yields in competing export markets will be the headwinds for U.S. exports,” he says. “The bright spot will be the continuing growth in demand. As the global middle class grows, so will the opportunities for U.S. exports.” Ehmke says the combination of anemic growth in domestic corn demand and growing competition in the export markets will only bring minor improvements unless more free trade agreements are signed. Wheat farmers are struggling on an uphill climb against Russia’s dominance in the world wheat market. Soybean farmers are chasing Brazil, the world’s top supplier, but growing demand for livestock feed will help sustain growth.

Arkansas Dicamba Restrictions Await Final Approval

In-season application restrictions of dicamba now await final approval in Arkansas. The Arkansas State Plant Board voted to prohibit the use of dicamba from April 16 through October 31. The board vote was 10-3, with one member recusing from voting. The regulations include exemptions for dicamba use in a pasture, rangeland, turf, ornamental, direct injection use for forestry, and home use. A DTN report says the rule is now awaiting final approval by the Executive Subcommittee of the Arkansas Legislative Council. Arkansas State Plant Board Director Terry Walker says it’s possible that the legislature could get it on the calendar right away during the next session, or even call a special session because it’s a hot-button topic. The board moved the meeting to a hotel in Little Rock in order to accommodate the number of people that wanted to participate in the event. As further proof of the event’s magnitude, a number of armed security personnel were on hand to prevent trouble. The preparation came about because of the contentious nature of the issue but the hearing started and finished peacefully.

NAFTA Withdrawal Contingency Plans

Ag Secretary Sonny Perdue says he’s in the process of drawing up contingency plans for the agriculture industry, in case the U.S. withdraws from the North American Free Trade Agreement. The Washington Examiner says those comments come just days ahead of the fifth round of talks between the U.S., Canada, and Mexico. There hasn’t been a lot of measurable progress as Canada and Mexico are rejecting the Trump Administration’s more controversial proposed changes to the deal. That has made the threat of breakdowns in negotiations a real possibility. Perdue says a breakdown in communications could mean the U.S. would pull out of the pact. “We’re talking to the administration and Congress about some mitigation efforts if that were to occur,” says Perdue, “such as how we would protect our producers with the safety net if prices respond negatively to withdrawal.” Still, Perdue says these are only contingency plans and that he expects the NAFTA negotiations to succeed. “There’ll be some nervous bumps along the road, in the meantime,” Perdue says.

Thursday’s closing grain bids

November 9th, 2017

 

St Joseph

 

Yellow Corn

3.00 – 3.05

White Corn

no bid

Soybeans

9.15 – 9.20

LifeLine Foods

 3.12

 

 

Atchison

Yellow Corn

3.02 – 3.06

Soybeans

 9.05

Hard Wheat

 3.59

Soft Wheat

 3.44

 

 

Kansas City Truck Bids

 

Yellow Corn

3.05 – 3.10

White Corn

no bid

Soybeans

9.26

Hard Wheat

3.79

Soft Wheat

3.74

Sorghum

5.38


USDA Cash Grain Prices

For more information, contact the 680 KFEQ Farm Department.
816-233-8881.

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