Now that the House is planning to act on the farm bill by extending the 2008 version – the leadership is working to sort out the details regarding the best path forward for addressing drought conditions and farm policy. For one thing – House leaders need to determine what kind of rule on amendments will govern debate. The Republican leadership in the House has generally pursued a policy of open rules. At least when talking about the House Agriculture Committee’s farm bill – Ranking Member Collin Peterson said he was hopeful the Rules Committee would agree to a modified open rule – limiting the number of amendments. Another option is a closed rule – which would not allow for amendments. The House released language for a one-year extension of the current farm bill – including supplemental ag disaster assistance – on Friday afternoon – but it is unclear if this is seeking an actual extension or providing an avenue for a Senate-House farm bill conference. The measure to extend the current farm bill is expected to come up this week (week of July 30th). If it is approved – it will be conferenced with the Senate-passed farm bill in September.

Senate Agriculture Committee Chair Debbie Stabenow expressed that she was open to the House approach if they intend to send a bill that will be used to negotiate the farm bill during August. But she says a short-term extension is bad for farmers and the agricultural economy. If Congress kicks the can down the road with a short-term extension – Stabenow noted there will be no reform, direct payments will continue, we will lose the opportunity for major deficit reduction and deliver a real blow to the nation’s economic recovery. At the end of the day – she says it’s important to give farmers certainty with a full farm bill and keeping the ag economy growing.

Renewable Fuels Association President and CEO Bob Dinneen says USDA and the EPA have responsibly answered the panicked appeals to modify or dismantle the RFS – plainly stating that consideration of waiving the program is simply not warranted. Dinneen shared his thoughts in a letter to U.S. Ag Secretary Tom Vilsack and Environmental Protection Agency Administrator Lisa Jackson. According to Dinneen – their comments have provided the kind of certainty and security that is necessary to ensure the renewable fuels industry continues to evolve. Further – he says remarks from both agencies regarding the RFS serve as important signals to the investment community that the nation’s commitment to diversifying our fuel supply and creating a future market for new advanced biofuel technologies remains intact.

In his letter – Dinneen underscored how the flexibility built into the RFS program was designed to accommodate marketplace anomalies like this summer’s drought. He pointed to the billions of RINs available – as well as the recent analysis of Bruce Babcock at Iowa State University that found a waiver might result in only a 4.6-percent reduction in corn prices. When all the facts are on the table – Dinneen wrote – it becomes abundantly clear that waiving or altering the RFS in any way at this time would not be prudent and would not have a meaningful impact on corn prices or availability for feed use. According to Dinneen – market signals and the flexibility of the RFS are already working to ration demand in anticipation of a shorter-than-expected grain crop. Even if ethanol production is significantly reduced as a result of tighter supplies of corn in 2012-13 – Dinneen concludes obligated parties should have very little difficulty in meeting their obligations under the RFS for 2012 and 2013.

National Cattlemen’s Beef Association Director of Legislative Affairs Kent Bacus (back-us) said the estate tax is the number one priority for NCBA. Speaking to attendees of the 2012 Cattle Industry Summer Conference – Bacus explained that the issue rises to the top because of the burden it places on families that hope to pass their business on to the next generation. According to Bacus – the estate tax is a prime example of bad tax policy. He says Congress should repeal it. In order to sustain family businesses – Bacus said the future must contain a level of certainty. The next generation – he said – can’t possibly afford to take over the family business if they are taxed to death.

For cattlemen seeking permanent relief from the estate tax – Bacus had some good news. Texas Representative Kevin Brady has 218 cosponsors on his Death Tax Repeal Permanency Act. The legislation would essentially provide full and permanent relief from the tax. Companion legislation has been introduced by South Dakota’s John Thune in the Senate. The measure has 37 co-sponsors.

But Bacus shared some bad news too. He said the Senate recently took action on a tax package that did not address the estate tax. Instead – the package would leave small business owners and ranchers vulnerable to a reversion to pre-2001 levels of a 55-percent tax on estates worth one-million dollars or more. Bacus said most farmers and ranchers would reach the one-million dollar threshold on land values alone. According to Bacus – we must find permanent estate tax relief or risk taking land out of production agriculture. He says that would threaten our ability to provide food for consumers at home and abroad.

Scattered showers swept the northern portion of the state and the southeast district.  There were 6.4 days suitable for fieldwork.  Topsoil moisture remained the same as last week at 90 percent very short, 9 percent short, and 1 percent adequate.  Subsoil moisture also remained the same at 85 percent very short, 14 percent short, and 1 percent adequate.

 

Field Crops Report

 

Corn dough stage and beyond was 79 percent, 14 days ahead of last year, and 20 days ahead of normal (5-year average).  Corn dented was 48 percent, 15 days ahead of last year, and 20 days ahead of normal.  Corn mature was 9 percent, 18 days ahead of last year, and 3 weeks ahead of normal.  Corn condition was 54 percent very poor, 29 percent poor, 12 percent fair, 4 percent good, and 1 percent excellent.  Harvesting corn for silage continued.  Soybeansblooming and beyond were 74 percent, 1 week ahead of last year, and 11 days ahead of normal.  Soybeans setting pods and beyond were 27 percent, 3 days ahead of last year, and 5 days ahead of normal.  Soybean condition was 35 percent very poor, 37 percent poor, 21 percent fair, 6 percent good, and 1 percent excellent.  Cotton setting bolls and beyond were 40 percent, 8 days behind last year, and 12 days behind normal.  Cotton condition was 12 percent very poor, 31 percent poor, 42 percent fair, 13 percent good, and 2 percent excellent.  Riceheaded was 44 percent, 17 days ahead of last year, and 9 days ahead of normal.  Rice condition was 5 percent poor, 23 percent fair, 52 percent good, and 20 percent excellent. Sorghum headed and beyond was 57 percent, 13 days ahead of last year, and 8 days ahead of normal.  Sorghum turning color and beyond was 12 percent, 12 days ahead of last year, and 8 days ahead of normal.  Sorghum condition was 24 percent very poor, 35 percent poor, 31 percent fair, 9 percent good, and 1 percent excellent.  Alfalfa hay 3^rd cutting was 45 percent, 6 days ahead of last year and 12 days ahead of normal. Few areas have been able to produce a 3^rd cutting for alfalfa due to the drought.

 

Pasture & Livestock

 

Pasture condition decreased to 83 percent very poor, 15 percent poor, and only 2 percent adequate.  Supply of hay and other roughages was 47 percent very short, 39 percent short, and 14 percent adequate.  Stock water supplies were 58 percent very short, 33 percent short, and 9 percent adequate.  Hay supplies going into the fall were a concern due to lack of suitable pasture and early hay feeding due to drought.  Water supplies in the southern portion of the state remained a concern for some producers.

 

Weather Summary

 

Temperatures were 5 to 8 degrees above average around the state except the southeast district was 2 to 4 degrees above average.  Precipitation averaged 0.48 of an inch.

Reauthorization of the National Integrated Drought Information System is a priority for the American Farm Bureau Federation. Testifying on behalf of Farm Bureau – board member and Maryland Farm Bureau President Patricia Langenfelder told the House Subcommittee on Energy and Environment that timely drought data and information is critical for farmers and markets. To stress the importance of having the best, most up-to-date information on drought conditions – Langenfelder pointed to the significant drought currently gripping much of the nation – which will ultimately touch the lives of every agricultural producer and consumer in the country. The NIDIS – according to Farm Bureau – has become an invaluable tool within the agricultural community – allowing farmers, market analysts, researchers, extension professionals, crop consultants and others to more adequately plan for and respond to a drought’s impacts.

Farm Bureau says the NIDIS provides an unparalleled set of data and graphics on drought conditions in the U.S. Langenfelder told legislators this kind of data allows market participants to determine what crops are most directly impacted by drought and to incorporate that information into market analysis, price projections and risk management planning. Langenfelder said it’s imperative that America’s farmers, ranchers and the market system have the best information available to protect against the vagaries of uncertain weather. Farm Bureau says NIDIS provides the nation’s farmers, ranchers and markets an effective drought warning system for key indicators of drought conditions and impacts

JOPLIN, Mo. – Gov. Jay Nixon today visited the Joplin Regional Stockyards to update livestock producers and farmers on the emergency cost-share program the Governor’s administration launched last week.

In response to the historic heat and drought across Missouri, Gov. Nixon made available $7 million to help livestock producers and farmers drill or deepen wells or expand irrigation systems.  As of Monday morning, the program has approved 490 contracts for projects, totaling more than $2.1 million in assistance to producers and farmers.  Gov. Nixon reminded producers and farmers that the deadline to apply for the program is Monday, Aug. 6.

“Livestock producers across Missouri have been hit hard by this historic period of heat and drought, and this emergency assistance is making a real difference for our farm families,” Gov. Nixon said.  “We will continue to work closely with local soil and water district boards to approve these applications and keep this vital assistance moving.  I encourage producers and farmers who need access to water to submit their applications by Monday, Aug. 6.”

The emergency cost-share program is available to Missouri livestock or crop farmers whose production is being severely impacted by the current drought. Gov. Nixon signed an executive order last Monday (July 23) authorizing the State Soil and Water Districts Commission to implement the program, which it did by a unanimous vote on the same day. In order to qualify for the program, a proposed water project must bring immediate material benefit to crops or livestock.  To get the program up and running, the State Soil and Water Districts Commission also provided an initial outlay of $2 million in state reserve funds to provide the grants.

 

Because of tremendous demand, Gov. Nixon announced on Thursday that he had directed another $5 million into the program to supplement the initial $2 million dedicated from the State Soil and Water Reserve Fund. House Bill 8 provides the Governor the authority to direct funds for “responding during a declared emergency at the direction of the Governor, provided the services furnish immediate aid and relief.”

Under this emergency program, 90 percent of the eligible water project cost will be covered. 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.

With his executive order, Gov. Nixon also established the Agriculture Water Resource Technical Review Team. The team consists of staff from the Missouri departments of agriculture and natural resources who have agricultural and water resource experience; they are assisting in the expedited processing of applications and the implementation of the emergency cost-share program. The team also will ensure accountability to taxpayers and that the projects awarded do not adversely affect public water supplies.

The Governor said the emergency cost-share program is 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 are being waived for this program.