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Corn continues to be the ingredient everyone is watching. The latest
price run-up in corn has many people talking about a new all-time high.
Of course, wheat and soybean prices also have been exploding.
-- Click on headline to read the rest of this
story by Troy Marshall
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"Accept and adapt" has certainly been the rallying cry of leading
management gurus regarding the government-created ethanol boom. These
experts have a valid point.
-- Click on headline to read the rest of this
story by Troy Marshall
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There's an old saying that is amazingly accurate: "Birds of a
feather flock together."
-- Click on headline to read the rest of this
story by Troy Marshall
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The U.S. Environmental Protection Agency (EPA) has published its
proposed rule to exempt air releases related to animal ag from emergency
release reporting requirements under the Comprehensive Environmental
Response, Compensation and Liability Act (CERCLA) and the Emergency
Planning Community Right to Know Act (EPCRA).
Under the proposal, the reporting requirements for CERCLA and EPCRA
wouldn't apply to air releases of ammonia and hydrogen sulfide from
animal waste at farms. EPA says it's proposing to eliminate these
reports for air releases from animal waste at farms because "it is
unnecessary to respond to such reports. This proposed rule would reduce
the burden on the regulated community of complying with these reporting
requirements and allow emergency responders to focus on hazardous
substance releases that would require a response."
Comments are due by March 27. Find more info on the rule at: www.epa.gov/emergencies/content/epcra/cercla_dec07.htm.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Meadowlands Farms ground beef is Cargill's latest national branding
effort, reports portfolio.com.
About 500 grocery stores in the Northeast, West Coast and Upper Midwest
have signed on to carry the brand, which features a variety of lean
ratings as well as sirloin, chuck and ground beef cuts. In addition to
the one-lb. trays commonly seen in meat cases, 10-lb. chubs are also
available for restaurants and other service industries.
The ground beef is produced at plants in Fresno, CA, Milwaukee, WI, and
Wyalusing, PA. More than 120 million people live within an eight-hour
drive, which promotes the brand's regional marketing effort. The
proximity ensures the product can be transported quickly and within a
day's drive, which ensures freshness, the article says.
- portfolio.com
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The Senate-passed farm bill calls for more time to review the impact
of bringing cloned food into the nation's food supply. It also requires
two studies be completed by the National Academy of Sciences (NAS)
before the Food and Drug Administration (FDA) can issue its final
decision on allowing cloned food in the market place.
NAS is to convene the nation's top scientists to review the FDA's
initial decision that food from cloned animals is safe. It also requires
NAS to study the "potential health impacts" if cloned foods are allowed
to enter the food supply, including the "possibility of an increase in
people developing chronic diseases" if they consume less milk for fear
of cloned animals. Meanwhile, USDA is to examine consumer acceptance of
cloned foods and the impact they could have on domestic and
international markets.
Sen. Barbara Mikulski (D-MD), sponsor of the cloned-animal provision,
said, "Just because something has been created in a lab, doesn't mean we
should have to eat it. If we discover a problem with cloned food after
it is in our food supply and it's not labeled, the FDA won't be able to
recall it like they did Vioxx -- the food will already be tainted." She
went on to say, "Before we allow cloned animals into our food supply, we
must know more about it. When something is this new, unclear and
uncertain, we need to be sure."
-- P. Scott Shearer, Washington, D.C.
correspondent
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Enough snow fell on Colorado the end of 2007 to avert dangerously
dry conditions that were beginning to emerge, says state climatologist
Nolan Doesken.
"Going into the end of November, it was very touch and go -- drought
conditions were redeveloping over the eastern Plains and snowfall in the
mountains was much less than average," Doesken said. But weather
patterns changed abruptly. "We went from being dangerously dry and warm
to being back on track for an average winter."
Snowpack in the Colorado mountains, the source for much of the state's
irrigation water, has now climbed to near average for this time of year
in the northern mountains, and to more than 140% of average in the
southern mountains, government data shows.
-- Colorado State University release
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The deadline for public comments on USDA's proposed voluntary
standard for a naturally raised marketing claim for livestock and meat
is Jan. 28. The proposed standard will establish the minimum
requirements for those producers who choose to operate a USDA-verified
program involving a naturally raised claim. This will be a voluntary
program.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Here are eight issues that look to be top of mind for the U.S. beef
industry in the coming 12 months.
-- Click on headline to read the rest of this
story by Burt Rutherford & Joe Roybal
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The recent rupture of an earthen levy in Nevada should serve as a
warning -- it's time to focus on rehabilitating flood control dams, says
Scotty Herriman, president of the Oklahoma Association of Conservation
Districts.
An irrigation canal in Frenley, NV ruptured after receiving heavy rain
and snowfall, says Ron Hays of Radio Oklahoma Network. "The damage that
appears to have caused this levy to break is very similar to the
problems facing many of our state's flood control dams due to the
shortage of operation and maintenance funds,' Herriman says. Burrowing
animals, trees and brush, and natural erosion are constantly at work on
these dams, he says. There simply isn't enough money to keep up with the
damage.
Oklahoma has more flood-control dams than any other state. Herriman says
figures from the Oklahoma Conservation Commission show a need for at
least $25 million, spread out over the next five years, just to address
the day-to-day operation and maintenance of Oklahoma's flood-control
infrastructure. This is on top of the need for funds to rehabilitate the
1,000+ flood-control dams that will be past their design life over the
next 10 years.
-- Ron Hays, Radio Oklahoma
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The Energy Information Administration's (EIA) short-term energy
outlook was released this week. Among its prognostications is that the
retail prices for petroleum products are expected to increase in 2008,
pushed by higher average crude oil prices. Both motor gasoline and
diesel are projected to average more than $3/gal. in 2008 and 2009, with
monthly average gasoline prices peaking near $3.50 this spring.
In addition, global oil markets will likely remain tight through 2008,
easing moderately in 2009. EIA expects world oil demand to continue to
grow faster than oil supply outside the Organization of the Petroleum
Exporting Countries (OPEC) in 2008, leaving OPEC and inventories to
offset the upward pressure on prices.
In 2009, higher non-OPEC production and planned additions to OPEC
capacity should relieve some market tightness. As a result, the level of
surplus production capacity is projected to grow from its current level
of under 2 million barrels/day to more than 4 million by the end of
2009.
The West Texas Intermediate (WTI) crude oil spot price, which approached
$100/barrel twice over the last six weeks, is expected to average
$94/barrel in January 2008. The WTI price averaged $72/barrel in 2007,
and is expected to average about $87/barrel in 2008 and $82 in 2009.
Go to www.eia.doe.gov/emeu/steo/pub/contents.html
to see the report.
-- Energy Information Administration
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A two-year, $81,000 grant from the state of Washington will test the
feasibility and replicability of converting land coming out of the
Conservation Reserve Program (CRP) into a vertically integrated
grass-fed beef production system. More than 1 million acres in
Washington are enrolled in CRP.
"We seek to develop a replicable strategy to help farmers make the
transition from conventional dryland wheat production to sustainable
alternatives that are profitable, good for the environment and that
allow farmers to remain on the land and support rural communities," says
Don Nelson, Washington State University (WSU) Extension beef specialist.
The study will take place at G & L Farms in the southeast corner of
Adams County, which will test a holistic approach to the profitable
production of value-added natural or organic grass-fed beef by becoming
an integral part of the production chain based on cooperation of the
segments from conception to consumption," he adds.
Washington's Agricultural Pilots Projects program was created to develop
and test regional programs and management practices that could reconcile
conflicts between existing agricultural land uses and protection of
critical areas.
-- WSU news release
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A "natural" beef production meeting is set for Jan. 23 at the Ramada
Inn in Aberdeen. Sponsored by the South Dakota Cooperative Extension
Service, experts from South Dakota State University (SDSU), USDA and
private industry will discuss what's involved in operating "the natural
ranch."
The pre-registration deadline is Jan. 18; the registration fee is $30.
For more info or to pre-register, contact Tyler Melroe at 605-448-5171
or Tyler.Melroe@sdstate.edu;
Russ Daly, DVM at 605-688-6589 or Russell.Daly@sdstate.edu;
or Jim Krantz at 605-772-4661 or Jim.Krantz@sdstate.edu.
-- SDSU news release
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The House of Representatives returns next week with the Senate
returning the following week. The House and Senate Ag Committee staffs
have been meeting in preparation for the House-Senate farm bill
conference report. The major issue will be how to fund the farm bill,
with the administration threatening a veto if the bill includes tax
increases. Other key issues will be payment limitations, conservation,
commodity programs, country-of-origin labeling, and the packer ban. The
deadline is March 15.
-- P. Scott Shearer, Washington, D.C.
correspondent
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The Indiana State Department of Ag (ISDA) will begin the pilot phase
of the Certified Livestock Producer Program (CLPP) this month. Several
producers have volunteered for the pilot program, which will test the
proposed specifications to determine if the program is effective for
statewide implementation.
CLPP will recognize producers who are willing to demonstrate their
commitment to the environment, animal well-being, food safety, emergency
planning, biosecurity and being a good neighbor.
-- Indiana State Department of Agriculture
release
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The Livestock Marketing Association (LMA) says a USDA-proposed rule
on transporting horses sets up "an unauthorized administrative and
enforcement nightmare for the equine industry and livestock
markets."
USDA already has a rule in place banning horse transportation to
slaughter in double-decker trucks. The proposed rule would extend that
ban, making it illegal to transport horses in double-decker trucks to
intermediate points, such as a stockyard, feedyard or assembly
point.
"LMA is concerned these changes will have a significant negative
administrative impact on its member markets and a broader negative
economic impact on the equine industry," the group said in comments to
USDA. "Until the agency has a better fix on the degree of the problem,
its ability to enforce this rule on the many vs. a selective few, and
its overall impact on the equine industry and allied businesses, the
proposed rule should be withdrawn," LMA said.
-- LMA release
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If someone asked how many cattle you ran on your ranch, surely you'd
know a number. But if you were asked how many species of birds and
wildlife could be found on your land, would you know? Would it be
important to know?
-- Click on headline to read the rest of this
story by Kindra Gordon
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Soaring grain prices and export caps are driving many cattle
ranchers in Argentina to sell their herds and farm more lucrative crops,
reports Lean Trimmings newsletter. The culprit is export caps
imposed by former President Nestor Kirchner as an anti-inflation
measure, which have flooded the local market with meat, keeping beef
prices low while soybean, corn and wheat prices soar. The trend has
driven Argentina, the world's biggest beef exporter until the 1950s, to
fourth in USDA rankings, behind Brazil, Australia and India. USDA
predicts Argentina will fall to fifth place behind Canada in the coming
year, according to AP. Per capita meat consumption among Argentines is
nearly 154 lbs./year.
-- National Meat Association's Lean Trimmings
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The National Grain and Feed Association (NGFA) is recommending USDA
not develop standards for biofuel products -- such as distiller's dried
grains or DDGs -- claiming that existing government and industry
frameworks for such products are working.
In a statement submitted to USDA's Grain Inspection, Packers and
Stockyards Administration, NGFA said existing procedures for approving
feed ingredients, and the NGFA's own Grain Trade Rules, Feed Trade Rules
and Arbitration System, already provide parameters for trading
distillers grains and other biofuel products.
"We believe the existing government and industry frameworks are working
well and provide for the effective trading of these products and do not
believe that additional involvement by GIPSA is necessary to further
enhance the marketing of grain inputs used for ethanol production or the
resulting distillers grains products," the NGFA wrote.
"The NGFA believes additional government standards for these inputs
could have the negative impacts of stifling the rewards of innovation,
reducing the number and quality of products available in the marketplace
and ultimately limiting the opportunities for either buyer or seller to
capture optimal value for these products."
GIPSA is considering whether to develop standards for distillers dried
grains with solubles and standardized testing methods for ethanol
product quality factors.
NGFA represents 900 grain, feed, processing, exporting and other
grain-related companies.
-- Forrest Laws, Farm Press
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Look for fed- and feeder-cattle prices to remain high in 2008, says
Jim Gill, Texas Cattle Feeders Association (TCFA) market director,
Amarillo.
"Competition for fed cattle among packers will increase in 2008 and
packers will have to pay more for the cattle they want," Gill says. "In
addition, the weak dollar will make beef exports more attractive to
other countries. It will be a while before we get exports back to
pre-2003 levels, but I expect a continued increase this year."
Gill's outlook for fed-cattle prices: $93-$105 for the first quarter;
$91-$96 for the second quarter; $95-$98 for the third quarter; and
$96-$104 for the fourth.
Feeder-cattle prices should see similar strength. "We're dollars below
the record Feeder Cattle Index of $120.10 set on Sept. 10, 2006, but
we're at a level now that looks attractive to anyone wanting to buy
feeder cattle," he says.
But don't look for any bargains. While higher corn prices and losses in
cattle feeding have pressured feeder-cattle prices, tight supplies are
likely close to putting a floor under the feeder cattle market, Gill
says.
Herd expansion, and thus feeder cattle supplies, will remain flat, Gill
says, due largely to drought and high corn prices. The farm level corn
price in the Corn Belt in September-November last year was $3.36,
according to USDA. "I would expect the price for the 2007-08 year to be
near $3.80, and for the 2008-09 year to be closer to $4.25."
-- TCFA Newsletter
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R-CALF USA will hold its 9th annual convention Feb. 20-23 at the
Holiday Inn Omaha Convention Center in Omaha, NE. Themed "Fighting for
the U.S. Cattle Producer's Prosperity -- Together," a Feb. 20 seminar on
private property rights kicks off the meeting. For more info, call
406-252-2516.
-- R-CALF release
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The highest January price ever for regular gasoline was registered
as the U.S. average retail price shot up 5.6¢ to $3.109/gal., as of
Jan. 7 -- 80.3¢ over a year ago. Retail diesel also increased -- by
3.1¢ --to $3.376/gal., or 83.9¢ higher than last year.
Gasoline prices were up across all regions. The Midwest added 6.9¢
to $3.101 (89.1¢/gal. more than last year), the East Coast rose
5.9¢ to $3.124, the Gulf Coast jumped 5.7¢ to $2.977, the
Rocky Mountains gained 2.9¢ to $2.95, and the West Coast logged the
highest regional price, rising 2.9¢ to $3.247/gal. California's
average price for regular climbed 3¢ to $3.328.
Meanwhile, all regional prices for diesel were up, with the East Coast
adding 3.7¢ to $3.436/gal., the Midwest 3.6¢ to $3.345, the
Gulf Coast 2.5¢ to $3.318, the Rocky Mountains 0.7¢ to $3.276,
and the West Coast adding 2.3¢ to $3.474. California added
3.5¢ to $3.526.
-- Energy Information Administration
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