USDA’s Economic Research Service says the drought is seriously affecting U.S. agriculture – impacting the crop and livestock sectors and potentially increasing food prices at the retail level.  Almost 40-percent of agricultural land is experiencing severe or greater drought at this point – which means the 2012 drought is more extensive than any drought since the 1950s. ERS will release its next farm income forecast August 28th. They say the drought’s impacts will be reflected – as 62-percent of farms are located in areas experiencing drought. Nine-percent are experiencing extreme or exceptional drought. Based on the 2010 value of production – ERS says about two-thirds of all crops and two-thirds of all livestock are produced in areas experiencing at least moderate drought. ERS says 44-percent of cattle production and nearly 40-percent of corn and soybean production is in areas experiencing at least severe drought.

ERS says the farm price of corn has already increased – with additional increases depending on the extent of the drought. The price of other crops – such as soybeans – and other inputs in the food supply – such as animal feed – will also be affected. The effect on retail prices – ERS notes – will depend on the severity of the drought and will begin to appear on supermarket shelves this fall. ERS suggests the impacts on beef, pork, poultry and dairy will likely be seen within two months.

Thanks to less debt, record-high grain and land prices, greater production and exports – Ag bankers, farm managers and economists say U.S. farmers are facing the current drought in their strongest financial position in history. That’s the big difference from the situation today when compared to the drought of 1988. Stronger crop and livestock insurance programs will also make a difference. All-in-all – Iowa Farm Bureau Director of Commodity Research Dave Miller says the farm economy is much healthier than it was 24 years ago. At that time – farmers were emerging from a farm crisis, there had been an extended period of low prices for grains, there was severe financial stress in the ag economy and land prices had plummeted about 60-percent in many of the Midwest areas. Miller says the picture is much different today. Farmers National Company Chief Executive Jim Farrell says grain farm balance sheets and better crop insurance are keys this time around.

JEFFERSON CITY, Mo. (AP) – Missouri Gov. Jay Nixon is announcing additional funding to help drill or deepen water wells after intense demand from the state’s farmers.

On Tuesday, Nixon announced an emergency program that would cover 90 percent of the cost for a water project with a maximum cost-sharing award of $20,000. Typical state soil and water cost-share programs cover 75 percent of the cost. The state Soil and Water Commission this week approved $2 million for the assistance program.

However, by Thursday, the governor’s office said more than 600 farmers had applied for the funding and that 33 contracts had been awarded.

Nixon was holding a news conference to announce additional funding Thursday at the state Department of Agriculture in Jefferson City.

The American Farm Bureau Federation welcomes the emergency actions U.S. Ag Secretary Tom Vilsack announced Monday to provide assistance to the farm and ranch families suffering from the drought. For many farmers and ranchers – Farm Bureau says USDA’s actions will result in immediate flexibility in the nation’s major conservation programs – helping to provide crucial assistance to hard-hit livestock producers. But the group says there are areas of the nation that may require expedited assistance due to established grazing prohibitions. Farm Bureau says these prohibitions would prevent grazing until the nutritional value of the grazing plants has totally been diminished by the drought.

Farm Bureau President Bob Stallman says the drought has reached crisis proportions in certain parts of the country. He says Farm Bureau appreciates the responsiveness and understanding exhibited by Secretary Vilsack during this drought-related emergency. The group is also hopeful – he says – that Vilsack will consider additional action for specific parts of the country where additional grazing prohibitions are in place.

Stallman notes a record 54-percent of pasture and rangeland is in poor or very poor conditions. As available feeding and grazing land is becoming depleted – feed prices are rising – and some farmers and ranchers have begun to liquidate their livestock herds.

National Farmers Union President Roger Johnson says USDA’s proposed modifications to the Operating Loan application to create a new microloan category will benefit beginning farmers and ranchers. This new category would provide flexible capital to farmers requiring operating loans of 35-thousand dollars or less. Johnson says NFU members believe the ability of the next generation of family farmers to continue to produce food and fiber is critical to the economy, health and security of our nation and local communities. To address that concern – he says programs must be in place and funded to meet the unique needs and barriers facing beginning farmers and ranchers.

NFU notes the proposed modifications would also streamline and simplify applications to ensure candidates don’t spend excessive amounts of time on their paperwork. Johnson says modifications to the yield reporting requirements will prevent diversified farmers growing a wide variety of produce – for example – form demonstrating inaccurate yields. Additionally – according to Johnson – decreasing the collateral requirement from 150-percent of the loan amount to 100-percent effectively secures the loan while allowing farmers with limited assets to access credit.

(JEFFERSON CITY, Mo.)–The Missouri Corn Growers Association (MCGA), a membership-based organization representing corn farmers across the state, today announced its endorsement of Gov. Jay Nixon for re-election.  This marks the first time MCGA has made a gubernatorial endorsement.

“We’ve never thrown our support behind a governor, but Gov. Nixon has gone the extra mile to support Missouri’s farm families,” said MCGA President Billy Thiel.  “Gov. Nixon has been a strong and consistent promoter of Missouri agriculture through his help in expanding markets globally, supporting farmer-owned ethanol cooperatives and standing up against out-of-touch federal regulations trying to limit our children’s involvement in family farms.  We are confident he will do what’s best for Missouri farmers so we can do what we do best:  feed and fuel the world.”

Gov. Nixon received MCGA’s endorsement by a unanimous vote of the organization’s board of directors, a governing body comprised of 14 corn farmers from across the state.  His longstanding support of Missouri corn growers and the state’s farmer owned-ethanol industry has also garnered several past awards including: Friend of Corn Growers Award in 2011; Public Servant Award in 2010; and the President’s Award in 2008.

Since being elected, Gov. Nixon has worked with farmers to expand markets for Missouri agriculture products, opposed the State Tax Commission’s proposals to increases taxes on Missouri farmland, put pressure on the U.S. Army Corps of Engineers to make flood control the top priority when managing the Missouri River and supported Missouri’s ethanol industry by fully funding the Missouri Qualified Fuel Ethanol Producer Incentive Fund.  It is estimated Missouri’s corn and ethanol industries add $5.4 billion in economic output and generate 67,535 jobs for the state.

The Missouri Corn Growers Association was formed in 1978 to advance policies that will help protect the rights of over 2,000 farmer-members, build new markets for corn and increase opportunities through partnerships within agriculture and beyond.  To learn more, visit www.mocorn.org.

SPRINGFIELD, Mo. – Gov. Jay Nixon Tuesday announced an emergency program to help Missouri farmers suffering from the statewide drought drill or deepen water wells to benefit their livestock or crops. The Governor made the announcement this  at the Springfield Livestock Market, where he met with area dairy farmers and livestock producers.

“Because of the shortage of hay and the stress on their animals from the heat, livestock producers have been especially hard-hit by the extreme weather conditions affecting almost the entire state of Missouri,” Gov. Nixon said. “This emergency program will make it easier for farmers to drill or deepen water wells, or undertake other water distributions projects sooner, in order to care for their livestock or crops.”

The emergency cost-share program will be available to Missouri livestock or crop farmers whose production is being severely impacted by the current drought. On Monday, Gov. Nixon signed an executive order authorizing the State Soil and Water Districts Commission to implement the program, which it did so yesterday by a unanimous vote. In order to qualify for the program, a proposed water project must bring immediate material benefit to crops or livestock, and not adversely affect a public water supply.

Under this emergency program, 90 percent of the eligible project cost will be covered, with a maximum cost-share award of $20,000. Normal soil and water cost-share programs provide 75 percent of the project cost, with the landowner covering the remaining 25 percent. Because of the emergency situation of the drought, applications from farmers for this cost-share program must be submitted by Aug. 6, 2012, to either the local soil and water district or online to the state of Missouri at MO.gov. The local soil and water district will act on each application within 72 hours of its receipt.

With his executive order, Gov. Nixon also established the Agriculture Water Resource Technical Review Team, to be named by the directors of the Missouri departments of agriculture and natural resources. The team will consist of staff from those two departments who have agricultural and water resource experience, and will assist in the expedited processing of applications and the implementation of the emergency cost-share program. Any completed application that is not acted upon within 72 hours by a local soil and water district will be forwarded to the Agriculture Water Resource Technical Review Team to act on the application within 72 hours.

The Governor said the emergency cost-share program would be narrowly targeted to alleviate the immediate water shortages facing Missouri agriculture. Because of the emergency nature of the drought situation and the need to put measures in place as soon as possible, any of the rules, procedures and certifications generally applicable to soil and water cost-share programs will be waived for this program.

Also on Monday, Gov. Nixon issued an executive order declaring a state of emergency in Missouri in response to concerns for both agriculture and public health because of the prolonged severe heat and drought. At the request of Gov. Nixon, the U.S. Department of Agriculture earlier this month declared an agriculture disaster in all 114 Missouri counties, making affected farmers eligible for federal assistance for their losses.

Missouri also has a hay directory for livestock producers as well as other information and resources online at MO.gov.

U.S. Agriculture Secretary Tom Vilsack has announced new flexibility and assistance in USDA’s major conservation programs to help livestock producers as the drought in the U.S. intensifies. Vilsack also plans to encourage crop insurance companies to provide a short grace period for farmers on unpaid insurance premiums – given some farming families will likely struggle to make ends meet at the close of the crop year. Vilsack expressed a commitment to getting help to producers as soon as possible and sustaining the success of America’s rural communities through these difficult times. Beginning immediately – he said USDA will open opportunities for haying and grazing on lands enrolled in conservation programs while providing additional financial and technical assistance to help landowners through the drought.

USDA says the assistance announced by Vilsack uses the Secretary of Agriculture’s existing authority to help create and encourage flexibility within the Conservation Reserve Program, the Environmental Quality Incentives Program, the Wetlands Reserve Program and the Federal Crop Insurance Program.

According to a USDA press release – here’s how:

Conservation Reserve Program (CRP)

To assist farmers and ranchers affected by drought – Vilsack is using his discretionary authority to allow additional acres under CRP to be used for haying or grazing under emergency conditions. CRP acres can already be used for emergency haying and grazing during natural disasters to provide much needed feed to livestock. Given the widespread nature of this drought – forage for livestock is already substantially reduced. Monday’s action will allow lands that are not yet classified as “under severe drought” but that are “abnormally dry” to be used for haying and grazing. This will increase available forage for livestock. Haying and grazing will only be allowed following the local primary nesting season – which has already passed in most areas. Especially sensitive lands such as wetlands, stream buffers and rare habitats will not be eligible.

Environmental Quality Incentives Program (EQIP)

To assist farmers and ranchers affected by drought – Vilsack is using his discretionary authority to provide assistance to farmers and ranchers by allowing them to modify current EQIP contracts to allow for prescribed grazing, livestock watering facilities, water conservation and other conservation activities to address drought conditions. The USDA Natural Resources Conservation Service (NRCS) will work closely with producers to modify existing EQIP contracts to ensure successful implementation of planned conservation practices. Where conservation activities have failed because of drought – NRCS will look for opportunities to work with farmers and ranchers to re-apply those activities. In the short term – funding will be targeted towards hardest hit drought areas.

Wetlands Reserve Program (WRP)

To assist farmers and ranchers affected by drought – Vilsack is using his discretionary authority to authorize haying and grazing of WRP easement areas in drought-affected areas where such haying and grazing is consistent with conservation of wildlife habitat and wetlands. For producers with land currently enrolled in WRP – NRCS has expedited its Compatible Use Authorization (CUA) process to allow for haying and grazing. The compatible use authorization process offers NRCS and affected producers with the management flexibility to address short-term resource conditions in a manner that promotes both the health of the land and the viability of the overall farming operation.

Federal Crop Insurance Program

To help producers who may have cash flow problems due to natural disasters – USDA will encourage crop insurance companies to voluntarily forego charging interest on unpaid crop insurance premiums for an extra 30 days – to November 1, 2012 – for spring crops. Policy holders who are unable to pay their premiums in a timely manner accrue an interest penalty of 1.25-percent per month until payment is made. In an attempt to help producers through this difficult time – Vilsack sent a letter to crop insurance companies asking them to voluntarily defer the accrual of any interest on unpaid spring crop premiums by producers until November. In turn – to assist the crop insurance companies – USDA will not require crop insurance companies to pay uncollected producer premiums until one month later.

Mississippi Delta farmers who plant soybean crops in rotation with paddy rice can see yield losses as high as 25-percent. But the work of USDA scientists could result in soybean varieties that thrive in soggy fields – which would help increase profits for these farmers. A collaborator at a USDA Agricultural Research Service facility in Ohio has studied flood tolerance in soybeans in a range of environments. In an effort to supplement the narrow genetic base of U.S. soybeans and improve their tolerance to wet soil and associated diseases – this scientist and her colleagues are finding and incorporating genes from non-native soybean varieties.

The flood tolerance of lines native to Vietnam and Cambodia and lines from Australia, China, Japan and Taiwan created with modern breeding techniques were among those included. The top three flood-tolerant lines were identified during screenhouse tests. The plants were grown in pots – and once in full bloom – were placed in a bucket of water so that the water level was two-inches above the soil surface for two weeks. The plants from the top lines grew the tallest and produced the biggest seeds and highest yields. When replicated in flooded experimental fields – USDA says the results were the same.