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A recent survey to gauge farmer’s confidence found that, while
farmers’ outlook on the economy generally mirrors that of the overall
population, more than half of farmers surveyed are employing
risk-management strategies to help navigate the difficult economic
climate.
“Our survey demonstrates U.S. farmers and ranchers are tackling the
current economic environment head on by making smart choices to help
them weather the storm,” says John Ryan, president and CEO for Rabo
AgriFinance. “While many are hurting because of the economy, there is
some optimism that the situation will improve next year.”
According to the Rabobank Farm & Ranch Survey, more than half of U.S.
farmers have recently implemented or plan on investing in risk
management or marketing strategies. Among those, pre-selling
crops/livestock is the most regularly used risk-management approach,
followed by hedging future commodity sales and lock-in margins.
“We’re in the midst of difficult financial times, but this survey
illustrates farmers are taking steps to mitigate their risk, which will
ease concerns about the future,” Ryan says.
However, deployment of risk management strategies varies based on the
degree of concern about the U.S. ag economy. While 45% of farmers who
are concerned about the ag economy use at least one risk-management
strategy, the percentage employing risk-management solutions increases
to 60% for farmers who are somewhat concerned and to 80% for those who
say they’re not concerned.
Business conditions. While revenue is declining for many
farmers, the cost of inputs is improving. Significantly fewer farmers
indicate their costs are worse this year (67% vs. 94% in 2008),
according to the report. In fact, 30% of farmers expect input costs to
decrease.
Additionally, fewer farmers expect conditions to get more difficult when
compared to the same period last year. In other words, less than 20% of
farmers thought 2009 would be better than 2008, while 30% think 2010
will be better than 2009.
Ag economy & financial concerns. In looking ahead, nearly half
of those surveyed expect the ag economy to worsen in 2010, and most are
currently concerned about the economy. Nearly nine of 10 farmers are
concerned about their own economic situation, and nearly eight of 10 say
they would have been more optimistic if current economic conditions had
been better, according to the survey.
However, three of every four farmers said their outlook for the future
would be more favorable if their own financial situation or the overall
economy was better. Nearly 90% of farmers who actively manage risk feel
their responses would have been more favorable about the future compared
with those who don’t (72%). This survey finding suggests the current
economic condition is driving the adoption of risk-management solutions.
Expansion plans. While hiring of employees and land expansion
are relatively stagnant among farmers surveyed, U.S. farmers’
intentions to purchase equipment are on par with 2008. The majority of
farmers (77%) have kept the same workforce size, and nine in 10 don’t
plan to buy or sell land. Additionally, one in three farms expect to
purchase farm equipment next year, but will look to used rather than new
equipment (43%).
For more info, go to www.RabobankAmerica.com
-- Rabobank release
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The national average price for regular gasoline at retail fell for
the first time in three weeks, shedding 0.9¢/gal. to settle at $2.037.
Meanwhile, diesel moved up 0.7¢ for the week to reach $2.228/gal.,
$1.727 below the year-ago price.
For the week, gasoline was $1.295/gal. below a year ago. The Rocky
Mountain and West Coast regions were up, with the former adding 2.7¢ to
$1.964, and the latter jumping 4.2¢ to $2.249. The East Coast was down
0.3¢ to $2.022, the Midwest shed 4.4¢ to $1.987, and the Gulf Coast
dropped 1.3¢ to $1.956. California was up 6¢ for the week to $2.308.
Diesel was down in all regions for the week, except for the East Coast,
which dipped 0.2¢ to $2.279. Otherwise, the Midwest was up 0.2¢ to
$2.178, the Gulf Coast 0.7¢ to $2.21, the Rocky Mountains 6.7¢ to
$2.213, and the West Coast 2.9¢ to $2.311. California was up 3.8¢ to
$2.335/gal.
-- U.S. Energy Information Administration
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The Colorado State University (CSU) forecast team predicts an
average 2009 Atlantic basin hurricane season based on the potential for
a weak El Niño event and an observed cooling of tropical Atlantic
sea-surface temperatures.
The team anticipates 12 named storms forming in the Atlantic basin
between June 1 and Nov. 30. Six are predicted to become hurricanes; of
those six, two are expected to develop into intense or major hurricanes
with sustained winds of 111 mph or greater.
"We expect current weak La Niña conditions to transition to neutral and
perhaps weak El Niño conditions by this year's hurricane season. If El
Niño conditions develop for this year's hurricane season, it would tend
to increase levels of vertical wind shear and decrease levels of
Atlantic hurricane activity," says William Gray, who is beginning his
26th year forecasting hurricanes at CSU.
The team has seen anomalous cooling of sea-surface temps in the tropical
Atlantic over the past few months. Cooler waters are associated with
dynamic and thermodynamic factors that are less conducive for an active
Atlantic hurricane season.
"Based on our latest forecast, the probability of a major hurricane
making landfall along the U.S. coastline is 54% compared with the
last-century average of 52%," says lead forecaster Phil Klotzbach of the
CSU hurricane team. "We’re calling for an average hurricane season
this year – about as active as the average of the 1950-2000 seasons."
In addition to its overall prediction that there’s a 54% chance of a
hurricane making landfall in the U.S., they predict a 32% chance that a
major hurricane will make landfall on the U.S. East Coast, including the
Florida Peninsula (the long-term average is 31%), and a 31% chance that
a major hurricane will make landfall on the Gulf Coast from the Florida
Panhandle west to Brownsville, TX (the long-term average is 30%).
Probabilities of tropical storm-force, hurricane-force and intense
hurricane-force winds occurring at specific locations along the U.S.
East and Gulf Coasts within a variety of time periods are listed on the
forecast team's Landfall Probability website. The site provides U.S.
landfall probabilities for 11 regions and 205 individual counties along
the U.S. coastline from Brownsville, TX, to Eastport, ME. The website
(www.e-transit.org/hurricane)
is the first publicly accessible Internet tool that adjusts landfall
probabilities for regions and counties based on the current climate and
its projected effects on the upcoming hurricane season. Additional info
is also available at: hurricane.atmos.colostate.edu/.
-- Colorado State University release
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Congressional Democrats passed a $3.5-trillion budget that includes
many of President Barack Obama’s proposals. However, the Congress
rejected the administration’s plan to alter the 2008 farm bill by
phasing out direct payments for producers with gross sales over $500,000
and capping farm payments at $250,000. The administration met strong
resistance from a united ag community and the leadership of the House
and Senate ag committees. There’s a strong feeling among Congressional
ag members that the 2008 farm bill made cuts in farm programs and that
further cuts would weaken the ag economy.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Congress is in a two-week recess returning on April 21. Key issues
will be the budget conference report and fiscal year 2010 appropriation
hearings.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Senators Tom Harkin (D-IA), John Thune (R-SD) and Tim Johnson (D-SD)
introduced legislation to authorize loan guarantees for the construction
of renewable fuel pipeline projects. The purpose is greater
transportation efficiency of renewable fuels to major population
centers, particularly in the Eastern U.S.
Harkin says, “Promoting the planning and development of projects that
transport renewable fuels efficiently and inexpensively helps enlarge
the market for biofuels like ethanol, reduces our dependence on foreign
fuels and will provide good construction jobs.” Thune adds, “These
pipelines will reduce energy costs across the country as well as create
an estimated 25 jobs for every $1 million of construction. Access to
ethanol-dedicated pipelines will benefit both consumers and the ethanol
industry for years to come.”
-- P. Scott Shearer, Washington, D.C.
correspondent
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It's the time of year when lots of people perform yard and home
cleanup. Most cattlemen are aware that various yard “trimmings” can
be toxic to cattle, but in progressively urbanizing states, neighboring
homeowners may not be aware that some yard vegetation can be deadly when
consumed by livestock.
Stan Smith, Ohio State University (OSU) Extension, says in the April 8
OSU Beef Cattle Letter that it behooves farm owners, and
especially cattlemen, to establish acquaintance with neighbors, sharing
with them seasonal concerns.
“Perhaps during this time of year, the greatest risk may come from
those who need a place to discard their yew bush trimmings. As little as
½lb. of yew trimmings, consumed by a 500-lb. calf can be fatal,” he
says.
The most common symptom of poisoning from this evergreen ornamental bush
is sudden death within 24 hours, he adds, though occasionally death may
be precluded by respiratory difficulty, shaking or muscle weakness. As
there’s no known antidote for yew poisoning, prevention is critical.
As spring progresses and new plants begin rapid spring growth,
additional vegetation with the potential to harm livestock will emerge
and leaf out, Smith says. For more info on plant toxicity, go to www.library.uiuc.edu/vex/toxic/comlist.htm.
-- Stan Smith, Ohio State University Extension
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The Food and Drug Administration (FDA) has delayed implementation of
the BSE final rule, “Substances Prohibited from Use in Animal Food or
Feed,” until June 26. FDA says it’s taking this action because
affected parties have indicated their concerns about being able to
comply with the original implementation date of April 27. Some indicated
difficulty to find alternate ways of disposing of material that may
“no longer be rendered for animal feed use” when the final rule
takes effect.
-- P. Scott Shearer, Washington, D.C.
correspondent
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The University of Georgia (UGA) Mountain Beef Cattle Field Day is
April 15 in Blairsville’s Georgia Mountain Research and Education
Center from 9 a.m.-3 p.m. Participants will learn the most up-to-date,
research-based info from UGA, University of Tennessee and USDA
scientists and industry reps.
This year's topics will cover genetic defects, by-product feeds,
culling, economic outlook, stocker feeding, cold-hardy bermudagrass and
cool-season forages.
The event is free and lunch and refreshments will be provided. Sponsored
in part by AgGeorgia Farm Credit and Braswell Cattle Company, call
706-745-2655 for more info.
-- Farm Press
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Jerry Wulf from Morris, MN, wears many hats in the cattle business.
The Wulf operation encompasses three different entities: Leonard Wulf &
Sons, Inc., a crop and seedstock enterprise with 900 registered Limousin
and Lim-Flex cows; Wulf Cattle Co. LLP, feeding 22,000 head annually;
and Golden Hills Ranch, a 3,000-head stocker operation in western South
Dakota.
-- Click on the headline to read the rest of this
story by Alaina Burt
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A federal court has denied an activist's demand for National Animal
Identification System (NAIS) livestock data. The attorney and freelance
writer initially filed suit against the USDA in June 2008, demanding it
comply with her Freedom of Information Act (FOIA) request to view
livestock and premises records collected as part of NAIS. The lawsuit
also asked a federal judge to prevent USDA from using federal privacy
law to shield those records from disclosure.
But U.S. District Judge Emmet Sullivan rejected the complaint March 31,
ruling that the NAIS records in question were exempt from public
disclosure under FOIA. See the article at: www.capitalpress.info/main.asp?SectionID=94&SubSectionID=801&ArticleID=50244&TM=78477.62.
-- Mateusz Perkowski, Capital Press
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Rep. Joe Crowley (D-NY) plans to introduce the “Affordable Food
and Fuel for America Act.” It would phase out the 54¢ tariff for
imported ethanol, as well as the ethanol blender’s tax credit over a
five-year period.
-- P. Scott Shearer, Washington, D.C.
correspondent
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The chances the Obama administration – and some Midwest,
farm-state senators – will be able to impose new limits on spending on
farm programs appear to be growing dimmer for the 2010 fiscal year.
-- Click on headline to read the rest of this
story by Forrest Laws, Farm Press
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When BEEF magazine and Elanco Animal Health partnered up to
debut the National Stocker Award competition four years ago, the primary
hope was to highlight the importance of the stocker industry, recognize
leading stocker operators, and give stocker producers an opportunity to
learn from their peers. Turns out, the process is also helping
participants learn more about their own operations.
“I encourage stocker operators to participate in this contest. The
application process really makes you sit down and evaluate the strengths
and weaknesses of your business in a new light. We’re privileged to
have won and we know there are a lot of other top operations out there
who can submit applications reflective of their outstanding efforts,”
says John Paul Pendergrass of Pendergrass Cattle Company, Inc. at
Charleston, AR. He and his dad, John Frank, were named the National
Stocker Award winner in 2008.
This year’s contest, the nomination deadline for which is May 1,
offers the same opportunity, though perhaps more simply. The application
has been streamlined for this year’s contest, and only finalists will
be asked to submit profit metrics for up to five groups of calves.
The winner receives $5,000 cash and an expense-paid trip to the 2010
National Cattle Industry Convention in San Antonio in January, courtesy
of Elanco. The winner also receives an expense-paid trip to the
BEEF Quality Summit, set for Nov. 10-11 at the Stoney Creek Inn
in St. Joseph, MO, courtesy of BEEF magazine. Two runner-ups will
each receive $1,000 cash from Elanco.
So, sharpen your pencils and plan to participate. Get your nominations
in by May 1. Application forms and a sample application are available at
www.nationalstockeraward.com.
You can find videos and articles on past winners at the same
website.
-- Wes Ishmael
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Here's a rating on the reliability of bovine viral diarrhea (BVD)
vaccination programs in preventing disease, reproductive losses and the
spread of the BVD virus.
-- Click on the headline to read the rest of this
story by Clint Peck
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This week the Food and Drug Administration (FDA) announced a delay
in implementing the rule, “Substances Prohibited From Use in Animal
Food or Feed,” originally published April 25, 2008 in the Federal
Register. The final rule, which was set to take effect April 27, is now
delayed 60 days until June 26.
-- Click on headline to read the rest of this
story by Alaina Burt
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Deworming your cows in the spring is catching on as a cost-effective
practice. You can look at it the same way you look at weeds in your
pastures, says Mike Hildreth. The weeds are there and, if they get too
thick, need to be controlled. But no matter how hard you try, you'll
never completely knock them out.
-- Click on the headline to read the rest of this
story by Burt Rutherford
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The U.S. Senate confirmed Kathleen Merrigan as USDA deputy secretary
and Jim Miller as under-secretary for farm and foreign ag. Meanwhile,
Krysta Hardin, National Association of Conservation Districts CEO, is
nominated to be assistant secretary for congressional relations. More
USDA nominations are expected in the near future.
-- P. Scott Shearer, Washington, D.C.
correspondent
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USDA is making more than $17 million in grants available under the
Beginning Farmer and Rancher Development Program. The education,
training, technical assistance and outreach program is designed to help
U.S. producers who have farmed or ranched 10 years or less.
Congress authorized the fiscal 2009 funding for this program in the 2008
farm bill, with another $19 million in mandatory funding for fiscal
2010. Under the program, USDA will make grants available to state,
local, tribal, regional, non-profits, community based organizations,
academic institutions and networks of appropriate private and public
organizations to design programs to help beginning farmers and ranchers.
The projects are limited to three years. Budget requests in the
proposals, due May 13, can’t exceed $250,000/year. USDA is looking for
proposals from these areas:
- Mentoring, apprenticeships and internships.
- Resources and referrals.
- Assisting beginning farmers or ranchers in acquiring land from
retiring farmers and ranchers.
- Innovative farm and ranch transfer strategies.
- Entrepreneurship and business training.
- Model land-leasing contracts.
- Financial management training.
- Whole-farm planning.
- Conservation assistance.
- Risk-management education.
- Diversification and marketing strategies.
- Curriculum development.
- Understanding the impact of concentration and globalization.
- Basic livestock and crop-farming practices.
- The acquisition and management of ag credit.
- Environmental compliance.
- Info processing.
- Other similar areas that would be useful to beginners.
Learn more at: www.csrees.usda.gov/fo/beginningfarmerandrancher.cfm.
-- Farm Press
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USDA released its much anticipated “Prospective Plantings”
report last month, providing its first survey-based estimate of
farmer’s intentions for the upcoming growing season. USDA reported
that, as of March 1, corn growers planned to plant 84.986 million acres,
1.2% less than last year, but still the third-largest acreage since 1949
(2007 and 2008 were the largest and second largest, respectively).
“This corn planted acreage figure should be relatively neutral to
slightly bullish to corn prices,” says Darrell Mark, University of
Nebraska-Lincoln ag economist. Writing for the Livestock Marketing
Information Center in Denver, he says the report was close to the
average pre-release expectation.
“Additionally, it should provide for an adequate crop and ending
stocks for the 2009-10 marketing year in the neighborhood of 1.4-1.5
billion bu. (using the USDA’s forecasted yield of 156.9 bu./acre and
total domestic use of 12.45 billion bu. from USDA’s Ag Outlook Forum
in late February). While the report doesn’t provide evidence of
dramatically larger corn acres that livestock feeders might have liked
to see, the fact that acreage didn’t drop into the lower
80-million-acre range should help prevent large, sustained rallies
(assuming a decent growing year),” Mark says. In the report, USDA
also indicated that harvested hay acres were expected to increase by
235,000 acres to 60.3 million acres, which should generally be
supportive to cattle production.
The “Prospective Plantings” report also showed significant acreage
reductions for the major crops of: sorghum (-16.0%), barley (-6.6%),
winter wheat (-7.3%), durum wheat (-10.5%), spring wheat (-5.9%),
cotton, (-7.0%), sunflowers (-17.7%), canola (-15.2%), and peanuts
(-26.7%).
“Combined with corn, this represents a decrease in planted acres of
8.779 million acres for these crops compared to last year. Increases in
oats, rice, hay, soybeans and sugarbeets only accounted for less than a
1-million-acre increase in total planted acres. So, for all these crops
listed above, total planted acreage is reported down 7.8 million acres
from last year.”
The question, he says, is what happened to these acres and what will
they be planted to? “I think it’s safe to say the housing industry
hasn’t been good enough this past winter for urban encroachment to
have taken over nearly 8 million acres. Thus, there still may be room
for acreage increases in some major crops – producers haven’t
revealed all their acreage decisions yet. And, although some acreage
decisions were made last summer and fall, undecided acres have responded
to dramatically changing incentives in the past several months,
including this past month since the data in the report were
collected.”
Mark says it’s likely the incentive to grow corn vs. soybeans will
continue to change for the next month until planting. “As usual, we
won’t know until the final acreage report in June. In the last 20
years, the 'Prospective Plantings' report for corn has been below the
actual corn planted acres in seven years and above the actual corn
planted acres in 13 years."
-- Livestock Marketing Information Center
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