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Commodity News
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Milo news
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Tuesday, 23 November 2010 13:54 |
The U.S. Department of Agriculture finalized procedures for the upcoming referendum on the continuation of the Sorghum Checkoff Program, published in the Federal Register Nov. 18. The referendum will be conducted Feb. 1 to 28, 2011, at local Farm Service Agency offices. Those eligible to participate include any person engaged in the production or importation of sorghum from July 1, 2008, to Dec.31, 2010. Individuals are required to provide documentation such as a sales receipt or remittance form that shows they have paid assessments.
Sorghum Checkoff is intended to be a national, coordinated, self-help marketing program designed to strengthen the position of sorghum in the marketplace, maintain and expand existing domestic and foreign markets and uses for sorghum, and develop new markets and uses for sorghum.
NSP, ag leaders and ethanol groups urge extension of tax policies
In an effort to push clean energy legislation forward, NSP and other groups sent a letter Nov. 16 to leaders of the House and Senate urging legislation to be passed during the lame duck session that would extend critical ethanol tax incentives that will expire at the end of this year.
The ethanol industry has been a vital, value-added market for sorghum producers and has created thousands of jobs, all while reducing dependence on foreign oil and reducing the nation’s emissions of greenhouse gases and other pollutants. Two important programs that will expire at the end of the year include the Volumetric Ethanol Excise Tax Credit and the Alternative Fuel Infrastructure Credit.
“The extension of each of these incentives is critical to the health of the U.S. ethanol industry and will avoid a significant industry downturn, such as that recently experienced by the biodiesel industry when its credits were allowed to expire,” the letters states. “Not only are these incentives necessary to provide certainty in the marketplace as we work collaboratively to reform the federal tax structure for renewable energy, but they are also essential if we, as a nation, are intent on continuing our goals of achieving energy security, creating green jobs, and revitalizing rural communities across the country.
Signatories include National Sorghum Producers, American Coalition for Ethanol, Growth Energy, National Association of Wheat Growers, National Corn Growers Association and Renewable Fuels Association. To view the full letter, please visit our website.
Lame duck legislation still up in the air
The Senate Finance Committee continues to work on a tax package that will satisfy all parties involved. Senator Max Baucus (D, MT), committee chair, has promised to introduce a bill by the end of the month, and it is expected to contain a number of the extensions of the so called Bush income tax cuts. A bipartisan, bicameral leadership dinner with President Obama to discuss the issue was set for Nov. 18 but later rescheduled for Nov. 30.
NSP participates in 66th annual NAFB Convention
Last week NSP Chairman Gerald Simonsen traveled to Kansas City for the National Association of Farm Broadcasters convention. Simonsen spoke about various issues including NSP’s new coalition with the Sweet Sorghum Ethanol Association, post-election analysis and future legislation. Farm broadcasters travel from across the United States, gathering interviews during the famous Trade Talk session of the convention to take back and broadcast at their respective stations. NAFB offers an excellent opportunity to voice the accomplishments and ongoing efforts by NSP for the sorghum industry.
NSP comments on Wall Street Reform and Consumer Protection Act
Chairman Gerald Simonsen submitted comments on behalf of NSP to the U.S. Commodity Futures Trading Commission Nov. 15 regarding Section 724 of the Wall Street Reform and Consumer Protection Act. Sorghum is not traded on exchanges, so many issues are not applicable, but NSP supported the option to keep the margin requirement lower for producers. For more information about this subject, visit www.cftc.gov and choose Dodd-Frank Act under the Law & Regulation tab.
This week’s crop report
Nationwide, 93 percent of the sorghum crop was harvested by November 14, 28 percent ahead of last year and 13 percent ahead of the 5-year average. In Kansas, harvest neared completion despite rainfall throughout much of the state.
Sorghum producers can now receive monthly e-Newsletters from the United Sorghum Checkoff Program
To receive monthly news and information regarding the Sorghum Checkoff’s efforts in sorghum research, education and market development contact
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
and provide your email address. You can also sign up at www.SorghumCheckoff.com/contact-us. You can also follow the checkoff on Twitter @SorghumCheckoff.
Upcoming field days and events
Nov. 18 and 19: Kansas Agribusiness Expo, Wichita
Nov. 19 to 21: Oklahoma Ag Expo, Oklahoma City, Okla.
Nov. 30 to Dec. 1: Texas Board and Association Meeting and Texas Commodity Symposium, Amarillo, Texas |
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Livestock news
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Tuesday, 23 November 2010 13:48 |
MANHATTAN - Kansas State University's Department of Animal Sciences and Industry has posted its latest swine research findings on the Web.
The results of more than 35 research projects related to nursery pig nutrition, finishing pig nutrition and feed management are available for reading and downloading by clicking on Swine Day 2010 at http://www.KSUswine.org. More information, including economic calculators and research findings from years past, also is available on the website.
The latest research findings were presented by K-State animal science faculty at the KSU Swine Day Nov. 18 in Manhattan. |
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Corn news
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Tuesday, 23 November 2010 13:33 |
The National Corn Growers Association, Kansas Corn Commission and several other state corn groups has been honored National Association of Farm Broadcasting with the Herb Plambeck Award for Creative Excellence. NCGA President Bart Schott accepted the award from NAFB President Greg Akagi. Akagi, farm broadcaster for WIBW Radio and the Kansas Agriculture Network, completed his term as NAFB president at the group’s convention in Kansas City last week.
“The Corn Farmers Coalition began as a project of several of our state organizations to educate Washington policymakers about the value of today’s corn farmers,” NCGA President Bart Schott said. He was on hand to pick up the honor at NAFB’s annual awards banquet Thursday evening. “Our states worked very hard to develop and expand a well-conceived and powerful program in 2009 and 2010, and the coming year brings many more opportunities to make sure those who influence legislation and regulation are informed about what we do.”
The central message of the Corn Farmers Coalition campaign is that family farmers are growing more with less thanks to technology and innovation. Productivity is increasing as farmers adopt more sustainable farming methods on the same acreage. The Coalition used extensive advertising in the Washington metro system and airport; print advertising in political publications; online ads targeting the Capitol Hill community, and radio commercials.
Member corn states, including Kansas, placed the radio commercials, produced by Nebraska-based David and Associates, on stations in more than a dozen states from Maryland to Colorado. The commercials were produced to sound like a call-in radio show with the host answering questions about corn and farming.
“While the goal of the Corn Farmers Coalition is to provide information about corn farming to decision-makers in Washington, DC, we have found that the informational messages we developed resonate with people across the nation,” Schulte said. Schulte serves on the Corn Farmers Coalition steering committee. “The CFC makes its materials available to the state corn groups — not only the radio ads, but also materials from print and online promotions.”
Kansas Broadcaster Akagi Honored at Banquet
Greg Akagi was honored at the NAFB President’s banquet on Friday. Kansas Corn Commissioner Ken McCauley of White Cloud and Kansas Corn Commission Director of Communications Sue Schulte attended the banquet. McCauley is past president of the NCGA.
“Kansas is lucky to have leaders like Greg to represent agriculture not only in our state, but also on a national level,” McCauley said. “He is an outspoken and respected advocate for Kansas agriculture. |
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Livestock news
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Thursday, 11 November 2010 18:34 |
WASHINGTON - The National Pork Producers Council expressed disappointment that a final deal has not been reached between the United States and South Korea on issues related to trade in beef and automobiles. An agreement would have paved the way for the U.S.-South Korea Free Trade Agreement to be completed.
The two sides had hoped to resolve the outstanding issues before the conclusion of the G-20 economic meeting in Seoul, South Korea, which was held this week. The U.S.-South Korea FTA was signed on June 30, 2007. The FTA must be approved by the U.S. Congress as well as the South Korean National Assembly.
The FTA would be one of the most lucrative for the U.S. pork industry, according to NPPC, which has championed the pact for more than three years now. The organization is urging resolution of the outstanding issues so that congressional lawmakers can approve the trade deal as soon as possible.
“America’s pork producers and all of U.S. agriculture need the two sides to reach agreement quickly on the remaining issues so that Congress can act soon to pass the U.S.-South Korea Free Trade Agreement,” said NPPC President Sam Carney, a pork producer from Adair, Iowa. “This would be the biggest trade agreement ever for the U.S. pork industry. It would be good for agriculture, good for business and good for the U.S. economy. If the two sides don’t act quickly, I am very concerned that the FTA will be overtaken by the presidential election cycle.”
According to Iowa State University economist Dermot Hayes, by the end of the FTA’s 10-year phase-in period, total U.S. pork exports to South Korea will be almost 600,000 metric tons. That represents nearly twice the current U.S. export level to Japan - now the top value market for the U.S pork industry. The FTA will lift live hog prices by a staggering $10 per animal and will generate an additional $687 million in U.S. pork exports. South Korea alone will absorb 5 percent of total U.S. pork production, and the FTA will create more than 9,000 new direct jobs in the U.S. pork industry.
The South Korean market is now the fifth largest for U.S. agricultural exports, valued at $3.9 billion in 2009. According to an economic analysis by the American Farm Bureau Federation, the U.S.-South Korea FTA would expand exports in a wide range of commodities and result in $1.8 billion in additional agricultural sales - a 46 percent increase over last year.
“The export opportunities the FTA offers U.S. producers of pork and many other agricultural products in the Korean market are truly remarkable,” said Carney. “The agreement would help American farmers who depend on export markets for a major share of their income and who have been growing fearful that agreements between South Korea and some of our competitors could leave us worse off than we are now.”
South Korea has in place or is negotiating 13 other trade agreements, covering some 50 countries, many of which are competitors of the United States in food and agricultural products. Because of those, Iowa State’s Hayes has projected that, without a U.S.-South Korea FTA, the U.S. pork industry will be out of the Asian market in 10 years.
“We can’t let that happen,” Carney said. “Our livelihoods and U.S. jobs depend on trade and on maintaining and expanding markets. The Obama administration needs to resolve the outstanding issues in the FTA, then lawmakers need to approve the deal as soon as possible.”
Commodities that will gain immediate duty-free access to the South Korean market on implementation of the FTA include wheat, feed corn, soybeans for crushing, hides and skins, cotton and a broad range of high-value agricultural products. These include almonds, pistachios, wine, bourbon and Tennessee whiskey, raisins, grape juice, orange juice, fresh cherries, frozen French fries, frozen orange juice concentrate, corn gluten feed and meal and pet food.
A number of commodities will gain free access two years after implementation, including avocados, lemons, dried prunes and sunflower seeds, or five years, including food preparations, chocolate and chocolate confectionary, sweet corn, sauces and preparations, corn sweeteners, corn oil, other fodder and forage (alfalfa), breads and pastry, grapefruit and dried mushrooms.
Other U.S. farm products will benefit from expanded market access opportunities through new or bigger tariff rate quotas. These include skim and whole milk powder, whey for food use, cheese,starches - including high-value modified corn starches - barley, popcorn and soybeans for food use. Market access improvements will also be seen for beef products, pears, apples, grapes and oranges.
The U.S.-South Korea FTA is one of three trade deals that are pending approval by Congress. Agreements with Colombia and Panama also have been awaiting action for more than three years. NPPC has been calling for action on all three FTAs for years, pointing out the enormous risk of letting other countries move forward first. |
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Livestock news
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Thursday, 11 November 2010 18:28 |
The deadline of Nov. 22 is fast approaching for public comments to be submitted on the Obama administration’s proposed rule on buying and selling livestock and poultry, a regulation that the National Pork Producers Council believes will fundamentally change the food-animal industry, leading to lost jobs and higher retail meat prices.
The U.S. Department Agriculture’s Grain Inspection, Packers and Stockyards Administration in June unveiled the draft regulation,known as the GIPSA rule. Here are seven reasons why consumers should join livestock producers in opposing the rule:
No. 1 - It’s a solution in search of a problem.
The rule is based on the assumption that today’s livestock markets don’t function properly. In fact, current markets operate well for producers, packers and consumers alike. USDA’s own, peer-reviewed research confirms this. Neither a 1996 study on concentration in meat packing nor a 2007 meat marketing study found evidence of undue buyer or seller power in livestock markets. Meanwhile, food expenditures as a percentage of disposable income in this country are the lowest in the developed world – and have been declining steadily for decades.
No.2 - It’s a federal regulation on steroids – an unneeded bureaucratic overreach that does an end-run around Congress and caters to those who can’t compete.
GIPSA says the rule simply fulfills a mandate under the 2008 Farm Bill. In fact, it goes way beyond the specific requirements in the Farm Bill. Ironically, it adopts through regulation what a small band of disgruntled producers couldn’t achieve through legislation.
Several of the provisions were either specifically rejected by Congress or are counter to federal court rulings. Why should we remake the system to suit a tiny fraction of producers who can’t compete in today’s markets?
No. 3 - It will raise consumer meat prices.
Massive new regulatory requirements will translate into higher costs, which ultimately will be paid for by consumers in the form of higher retail meat prices.
No. 4 - It will stifle innovation in livestock production, further harming consumers.
The rule requires written justification for premiums paid to producers for higher quality livestock. Rather than deal with that, packers are likely to pay just one price to all producers, regardless of quality. This will kill any incentive for innovation, such as better genetics to produce leaner meat. No longer will the most efficient or the most innovative producers be rewarded. As competition disappears, consumers will see fewer choices in the meat case.
No. 5 - It will put producers out of business, eliminating rural jobs and concentrating power in the hands of the packers.
By discouraging long-term contracts with packers, the rule forces more producers into the cash market, where prices can fluctuate wildly and risks can be greater. That volatility also makes it harder to get from risk-averse bankers financing to run operations. Many producers will not survive in this more unpredictable environment. That will eliminate desperately needed rural jobs and concentrate power in the hands of the packers – the opposite of the rule’s purported intent.
No.6 - It will add costs for meat packers and expose them to the threat of litigation, prompting packers to raise their own livestock, killing even more jobs and giving more power to the packers.
Because of new regulatory requirements for dealing with producers, packers likely will choose to raise more of their own livestock. That will put even more producers out of business and increase vertical integration in the meat-packing industry. That means fewer rural jobs, as livestock farms and the jobs that go with them disappear.
No. 7 - It will be a bonanza for trial lawyers.
An expanded definition of what constitutes a violation of livestock laws will turn ordinary contract disputes into federal court cases. The ultimate beneficiaries will be trial lawyers, who will find it easier to win lawsuits claiming “unfair” treatment. Even President Obama’s GIPSA administrator has called the expanded violation definition “a plaintiff lawyer’s dream.” And when trial lawyers win, everyone else loses.
To learn more about the GIPSA rule, to set up an interview with a pork producer about the impact of the rule on his or her operation and/or to speak with
NPPC leadership about the regulation, contact Dave Warner at (202) 347-3600, or e-mail him at
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
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