The fiscal year Labor, Health and Human Services and Education appropriations bill includes a provision that would stop new restrictions on fertilizer sales. North Dakota Democratic Senator John Hoeven says the bill moved out of committee on Thursday and would also stop the Occupational Safety and Health Administration from forcing agriculture retailers to comply with the same chemical storage requirements as wholesale facilities, according to the Hagstrom Report. Hoeven says the provision is needed because the OSHA regulations, yet to be implemented, have already caused nine facilities to close in North Dakota. Hoeven says the OSHA proposal would cause many retailers to stop selling to farmers at rural locations and threatened to limit the supply of anhydrous ammonia, a nitrogen fertilizer that is vital to farmers.
Category: Agriculture
Bankers tell Congress overregulation hurts rural banks
The American Bankers Association told Congress last week the growing volume of bank regulation is making it harder for America’s hometown banks to meet the needs of their customers, particularly in rural communities. Testifying in front of the House Small Business Subcommittee on Economic Growth, CEO of the Oklahoma Bankers Association, Roger Beverage, told lawmakers regulation shapes the way banks do business and can help or hinder the smooth functioning of the credit cycle. Beverage testified that the new regulatory atmosphere – not the local economic conditions – is often the tipping point that drives small banks to merge, noting that there are nearly 1,500 fewer banks than there were five years ago. First National Bank CEO Shan Hanes of Kansas told lawmakers that overregulation on rural America hinders growth for rural communities. Hanes also claimed the Farm Credit System puts rural banks on an uneven playing field.
Farm Credit Beginning Farmer Loans up 12 percent
Farm Credit made nearly 80,000 new loans to beginning farmers and ranchers last year totaling nearly $13 billion. The Farm Credit Administration says the number of loans made to beginning producers increased by 12.2 percent, 5,000 loans more than 2014. Loans to beginning farmers accounted for 22 percent of all loans made by Farm Credit. Officials say last year the average size Farm Credit loan to a beginning farmer or rancher was up slightly from 2014 to almost $160,000. Meanwhile, over the past ten years, new loans made by Farm Credit to beginning farmers increased by more than 45 percent. Each year, Farm Credit lenders specifically report their loan activities in support of beginning farmers and those results are reviewed by the Farm Credit Administration, the federal regulator that oversees Farm Credit activity, and reports the activity to Congress.
WASDE at a glance
CORN: Corn ending stocks for 2015/16 are reduced 95 million bushels as a 100-million bushel increase in the corn export forecast more than offsets a slightly higher import projection. As of early June, total U.S. corn export commitments are above year-ago levels for the first time in the 2015/16 marketing year. The U.S. corn export projection for 2016/17 is raised 50 million bushels as U.S. supplies are expected to remain more competitive. Corn ending stocks for 2016/17 are projected at 2,008 million bushels, down 145 million from last month. The season-average farm price for corn is raised for both 2015/16 and 2016/17. The 2015/16 price is forecast up 10 cents per bushel at the midpoint with a range of $3.60 to $3.80 per bushel.
SOYBEANS: Soybean crush for 2015/16 is raised 10 million bushels to 1,890 million reflecting an increase in projected soybean meal exports. Soybean meal exports are raised in part on commitments through early June. Soybean exports for 2015/16 are projected at 1,760 million bushels, up 20 million with reduced soybean production and exports for Brazil and Uruguay. Soybean ending stocks for 2015/16 are projected at 370 million bushels, down 30 million from last month. Ending stocks for 2016/17 are reduced 45 million bushels to 260 million. The 2016/17 season-average price for soybeans is forecast at $8.75 to $10.25 per bushel, up 40 cents at the midpoint.
WHEAT: Projected U.S. wheat supplies for 2016/17 are raised this month on both increased beginning stocks and larger winter wheat production. Projected production for 2016/17 is up 79 million bushels mainly on improved prospects for the Hard Red Winter wheat crop in the Great Plains following excellent growing conditions throughout the spring months. Consequently, the winter wheat yield is forecast to be record high. Ending stocks are raised 21 million bushels to 1,050 million, the largest in 29 years. Global wheat supplies for 2016/17 are raised 3.9 million tons.
RICE: U.S. 2015/16 rice ending stocks are lowered 0.5 million hundredweight this month to 42.9 million. The larger exports are based on a faster-than-expected pace of sales of southern medium- and short-grain rice to North Africa and the Middle East. Exports for 2016/17 are lowered 1.0 million hundredweight to 112.0 million, with reductions for medium- and short-grain, due to tightening supplies. Ending stocks for 2016/17 are raised 0.5 million hundredweight to 50.9 million and are the largest ending stocks since the mid-1980’s.
SUGAR: U.S. sugar imports for 2015/16 are increased by 182,558 short tons, raw value from last month. Although USDA announced the increase of the raw sugar tariff-rate quota by 140,000 short tons, raw value on May 17, 2016, it is estimated that 122,558 of that amount will enter, implying an increase in the total raw sugar TRQ shortfall of 17,442 to 45,000. Sugar production is increased by 7,874 short tons, raw value based on end-of-season reporting in Florida and Texas. Based on pace to date, exports for 2015/16 are reduced by 35,000 short tons, raw value to 65,000. Total U.S. sugar supply for 2016/17 is increased by 192,176 short tons, raw value.
COTTON: A marginal reduction of 50,000 bales in 2015/16 domestic mill use is the sole revision in this month’s U.S. cotton supply and demand estimates. U.S. ending stocks are now forecast at 4.1 million bales for 2015/16 and 4.8 million bales for 2016/17. The forecasts for the marketing year average price received by producers are unchanged for both seasons. The world 2016/17 cotton projections include lower beginning and ending stocks, due mainly to reductions in expected production by China.
LIVESTOCK, POULTRY, AND DAIRY: The forecast for total red meat and poultry production in 2016 and 2017 is lowered from last month, largely as higher feed prices dampen the rate of production growth. Beef production for 2016 is reduced mostly on lower carcass weights, but the pace of second-quarter slaughter is slightly slower than previously expected. Pork production for 2016 and 2017 is lowered as higher feed prices are expected to impact weights through early 2017. Broiler and turkey production for late-2016 and early-2017 is lowered as higher feed prices slow the expected rate of expansion. Egg production for 2016 is also reduced on expected weaker returns.
Milk production forecasts for 2016 and 2017 are raised from last month as recently reported cow numbers indicate the herd continues to expand. Cheese and butter prices for 2016 are forecast higher based on recent price data and lower forecast imports, despite relatively large stocks. The nonfat dry milk (NDM) price is raised based on recent price strength. The whey price forecast is unchanged at the midpoint.
Judge orders dairy group to pay farmers $50 million
The Dairy Farmers of America cooperative has agreed to a $50 million revised settlement paid to Northeast U.S. dairy farmers. The settlement stems from a class-action lawsuit that accused the marketing group of trying to drive down milk prices. The revised settlement includes new protections to prevent retaliation to farmers that was missing from a settlement proposal denied by a federal judge in March, according to Reuters. Settlement papers were filed on Thursday and require approval by a U.S. District Judge. If approved, the cooperative will pay an average of $4,000 to more than 8,000 dairy farms. The lawsuit was filed in 2009 when farmers accused Dairy Farmers of America, its Dairy Marketing Services arm and dairy processor Dean Foods of conspiring to monopolize the market for raw Grade A milk in 11 U.S. states stretching from New Hampshire to Virginia. Dean Foods reached a $30 million settlement in the case in 2011. The Kansas City, Missouri-based Dairy Farmers of America did not admit wrongdoing in agreeing to settle, according to court documents.
Senate ag committee continues GMO labeling talks
Staffers for members of the Senate Agriculture Committee are continuing negotiations on reaching a compromise for a national GMO labeling law. A key Senate aide told The Hagstrom Report this week that staff members for the committee are working on reaching an agreement on behalf of Republican chairman Pat Roberts and the committee’s ranking Democrat Debbie Stabenow. Less than two weeks of working days remain for Congress to pass a compromise that would supersede the Vermont mandatory GMO labeling law taking effect July first. The Coalition for a Safe Affordable Food Supply also noted that a New York state law continues to advance, and that the law was an indication of the danger of more states considering state laws with differences, potentially causing “chaos in the marketplace.”
Friday’s closing cash grain bids
June 10th, 2016
St Joseph |
|
Yellow Corn |
3.92 – 3.98 |
White Corn |
no bid |
Soybeans |
11.20 – 11.38 |
LifeLine Foods |
4.00 |
|
|
|
Atchison |
|
Yellow Corn |
3.98 – 4.01 |
Soybeans |
11.08 |
Hard Wheat |
4.13 |
Soft Wheat |
4.45 |
|
|
|
Kansas City Truck Bids |
|
Yellow Corn |
4.11 |
White Corn |
4.50 – 4.67 |
Soybeans |
11.43 |
Hard Wheat |
4.49 |
Soft Wheat |
4.70 |
Sorghum |
6.57 |
For more information, contact the 680KFEQ Farm Department.
816-233-8881.
General Mills announces partnership to help dairy farms go organic
General Mills this week announced a strategic sourcing partnership with the largest organic cooperative in the United States. The partnership with Wisconsin-based Organic Valley will help about 20 dairy farms add around 3,000 acres to organic dairy production. The program will assist General Mills to double the organic acreage from which it sources ingredients by 2019. Since 2009, General Mills has increased the organic acreage it supports by 120 percent. Also, General Mills will launch the Organic and Regenerative Agriculture Transition Council. The council, according to the company, will bring together sustainable agricultural leaders, farmers and industry stakeholders with the mission of advancing organic agriculture practices. General Mills attributes the moves to USDA data that says demand for organic food is increasing in the Unites States, but supply has not been able to keep up.
Egypt again changes to zero tolerance ergot policy
Egypt has backtracked on a government pledge to apply international standards on the fungus ergot found in wheat imports, recently rejecting two more shipments. Last time around, suppliers called the zero tolerance ergot standards by Egypt impossible to meet. Traders had boycotted tenders by Egypt to purchase wheat after the first round of rejections. The country later assured suppliers they would follow a 0.05 percent tolerance policy, a widely applied international standard. However, recently Egypt rejected 30,000 metric tons of Polish wheat and another 10,000 metric tons of Canadian wheat since April, according to Reuters. Those rejections come despite their levels of ergot falling below 0.05 percent. The Polish wheat, rejected twice since April, contained just 0.02 percent of ergot.
USDA funding research of manure management practices on antibiotic resistance
Researchers from four universities are teaming up with dairy farms across the Northeast and Mid-Atlantic to study the impact of manure management practices on antibiotic resistance. The $1 million project, funded by USDA’s National Institute of Food and Agriculture, will evaluate antibiotic-resistant bugs in dairy cow manure, how they survive treatment systems and whether any residuals end up on farm fields. Although there is no direct evidence of resistance spreading from antibiotic use on dairy farms, USDA is funding the research because of the potential risk. A team of scientists will evaluate how well three different waste-processing techniques — anaerobic digestion, composting, and long-term storage — remove drugs and germs in mannure.