Monday February 1 Ag News
Posted
in Chad Moyer's Blog
at 03:24PM on 02/01/2010
Obama: End Crop Subsidies to Wealthy
President Barack Obama asked Congress on Monday to slash crop subsidies to "wealthy farmers" and to pare federal support for crop insurance, moves estimated to save $10 billion over 10 years. In his proposed budget for fiscal 2011, Obama suggested a sharply lower cut-off in income that qualifies for crop supports, implemented over a three-year period. It would save $2.26 billion over 10 years.
The administration plan would end crop subsidies to people with more than $250,000 adjusted gross income from off-farm sources or more than $500,000 on-farm AGI. The caps now are set at $500,000 off-farm AGI and $750,000 on-farm AGI. Some $8 billion would be saved over 10 years by reforming administration of the federally subsidized crop insurance system to end "huge windfall profits." The Agriculture Department is negotiating a new master agreement with insurers to reduce overhead payments.
Obama suggested crop subsidy cuts for the second year in a row and as Congress nears an overhaul of the farm program. Last year, lawmakers said any change in farm subsidy rules should wait until a new farm law is written. "This proposal would allow USDA to target payments to those who need and can benefit from them most while at the same time preserving the safety net that protects farmers from low prices and natural disasters," said the administration.
Besides the lower AGI ceiling, the administration would cap the direct-payment subsidy at $30,000 a year, down from the current $40,000. In its budget proposal, the White House proposed $53 million in funds to develop markets overseas, counter-balanced by a 20 percent cut, or $40 million, in the Market Access Program, which shares the cost with trade groups to promote U.S. goods. The White House also requested a 25 percent cut, to $1.2 billion, in the Environmental Quality Incentives Program. The green-payment Conservation Security Program would be cut by roughly $1 million and enrollment held to 12 million acres in fiscal 2011 instead of 12.8 million acres.
NCBA Structural Concept Adopted by Wide Margin at 2010 Cattle Industry Convention
More Efficiency, Agility are Intentions of Board Actions
In preparation for key battles it foresees for the beef industry in coming years, the National Cattlemen’s Beef Association (NCBA) Board of Directors today voted to adopt a report and governance structure concept by a Governance Task Force that would lead to significant structural changes to the organization.
Meeting at the 2010 Cattle Industry Convention, the Board adopted the task force report by a 201-13 margin, putting in motion the creation of a new governance structure, which would feature a smaller NCBA Board of Directors and a new House of Delegates that would include the organization’s state affiliates, state beef councils, industry/breed organizations, and product/allied industry councils. The Federation of State Beef Councils would be housed within the House of Delegates, and continue to conduct its federation duties as specified in the Beef Promotion and Research Act & Order.
“This is an important step in making our industry more responsive to the challenges it faces,” said Jan Lyons, a Kansas beef producer and co-chair of the Governance Task Force. “There are entities across the country seeking to keep us from succeeding as cattlemen and women. The changes we have recommended make it easier for us to move quickly against those groups and assure that consumers know the facts about the great beef we produce and the people that produce it.”
Specifics of the recommendation include:
· A Board of Directors that has 29 members, 26 of whom are elected by the House of Delegates. The Board, which has legal and fiduciary responsibility for the organization;
· A House of Delegates with a total of 250 votes. Of those votes, 106 would go to State Beef Councils, 106 to state affiliates, and 38 to industry and breed organizations, as well as the allied industry/product council;
· The Federation of State Beef Councils within the House of Delegates that elects a chair and vice chair and the eight other members to the Beef Promotion Operating Committee;
· Committees approved by that board that would make proposals to the House of Delegates. These committees would be comprised of NCBA members, members of member organizations and/or invited guests.
“Over the period of 18 months we visited with producers and worked hard to come up with a system that would maximize the capabilities of our organization,” according to Lyons. “We think this new structure will make us as strong as possible as we face the many adversities that face us today.”
Lyons said the task force sought to maintain grassroots input and control of the organization. This is accomplished through the operations and structure of the House of Delegates, whose member organization votes will be weighted based on NCBA investment. They will vote on policy to be recommended to the Board of Directors, the policy-establishing body for the organization. Grassroots input will also be accomplished through committees of like-minded beef producers (such as cow-calf operators, feeders or those interested in beef demand), who will provide input to the House of Delegates.
According to John Queen, task force co-chair and a beef producer from North Carolina, the group was careful to develop recommendations that kept in mind the NCBA’s quest for an industry with one vision, one plan and one voice. It determined that current structure that includes a 274-member Board of Directors is unwieldy and makes authority and accountability within the organization more difficult.
“We wanted to make it easier for the Board to maneuver,” Queen says. “At the same time, NCBA has always sought to conduct our affairs the right way, utilizing checkoff dollars only for those programs for which they were intended. Our recommendation is legal and maintains the strict firewalls required by law for checkoff and non-checkoff dollars.” Queen says the recommendations comply with the Checkoff Act and Order. Legal counsel and the U.S. Department of Agriculture were consulted throughout the process.
The 21-member Task Force included both producer members and state organization staff interested in improving their national organization and the entire industry. Its recommendations were submitted to the NCBA Executive Committee in San Antonio, and discussed by the full Board of Directors today during its Annual Meeting.
Working groups will be established to take the structure concept and further develop bylaws, investment schedules and a transition timeline. Bylaw changes will be considered by the board at the Summer Conference in Denver this July. If bylaws are approved at that meeting, implementation of the structure would begin.
NCBA Members Elect Officers and Approve New Organizational Structure Concept, Policies for 2010
The annual Cattle Industry Convention concluded today with the National Cattlemen’s Beef Association (NCBA) board of directors meeting and annual membership meeting. During the meetings, members voted on leadership and policies to ensure the organization’s success in 2010. More than 6,000 people attended this year’s convention in San Antonio, Texas.
Steve Foglesong, owner of Black Gold Ranch in Illinois, was officially elected to succeed Gary Voogt as NCBA’s new president. Foglesong encouraged NCBA members to join him in leading this great industry—and the association—to an even stronger future, by getting engaged in the issues and telling their story to the public, as well as lawmakers in Washington, DC.
“Our industry has a great story to tell,” said Foglesong. “Our numbers may be small, but when each of us engages and makes our voice heard, we are a force to be reckoned with.”
In a landmark vote, the board approved a new organization structure, as presented today by the Governance Task Force. The board also demonstrated confidence in NCBA by voting unanimously to approve a dues increase to help ensure the organization is on sound financial footing. Dues now start at $100 for cow-calf members. Feeder assessments increased from 10 cents to 12.5 cents per head. Earlier in the week, the Allied Industry Council also expressed its support of NCBA by voting to increase its member dues from $17,500 to $25,000.
In addition to structural changes, members approved a number of policy recommendations to guide NCBA efforts in Washington, DC in 2010.
In the area of federal lands, property rights and land management, members approved policy calling for reform of the Equal Access to Justice Act (EAJA). While EAJA was established by Congress to ensure that individuals, small businesses or public-interest groups with limited financial resources could seek judicial recourse from unreasonable government actions, a lack of federal oversight has allowed the Act to be abused, particularly by environmental-activist organizations which often target farmers and ranchers under the guise of "public interest." In a six-year period, non-profit environmental groups have filed more than 1,500 lawsuits and in turn the federal government has paid out billions in taxpayer dollars in settlements and legal fees under EAJA and other fee-shifting statutes in cases against the U.S. government.
Also with regards to federal lands, members approved policy to address the growing problem of wild horse and burro over-population, which has contributed to range degradation and reductions in biodiversity and livestock productivity. The policy calls for a comprehensive program—including fertility control, sex ratios, and other humane means of herd reduction—in accordance with the management options authorized to be used by the Bureau of Land Management.
With regard to international markets, members passed policy calling on NCBA to urge Congress to immediately ratify the Korea-U.S. Free Trade Agreement (KORUS FTA)—one of the most important bilateral trade agreements in the history of the U.S. beef industry. According to South Korean Economic Minister Choi, who addressed attendees at this week’s economic markets committee meeting, U.S. competitors such as Australia are well on their way to finalizing free-trade agreements with Korea, putting U.S. competitiveness at risk for years to come.
In the area of cattle health, NCBA will pursue priorities and strategies regarding both the modification of the National Brucellosis Eradication Program and the eradication of brucellosis from the Greater Yellowstone Area. New policy also directs NCBA to work to maintain producers’ ability to keep their cattle healthy through the use of approved antibiotics.
All policies adopted are now subject to approval by more than 30,000 NCBA members nationwide. Convention results will become official after a mail-in ballot process concludes in March.
In other news, former Vice President Bill Donald of Mont. was confirmed as the new president-elect, and former Federation Division Chairman J.D. Alexander of Neb. was elected to succeed Donald as vice president. Other newly-elected officers include: Scott George, Wyoming, federation division chairman; David Dick, Missouri, federation division vice chairman; Bruce Hafenfeld, California, policy division chairman; and Bob McCann, Texas, policy division vice chairman.
Foglesong ended the convention with his outlook for 2010. Despite the very-real challenges facing the industry—including an over-reaching federal government and increasing attacks by activist groups—he said he’s optimistic about the year ahead. “We have a nation of bright and professional agriculturalists who are ready to meet demand when it rebounds. And we have a noble profession: feeding people here at home, and around the world. This is a job and a lifestyle to be proud of and fight for so we can turn a strong industry and industry association over to our next generation.”
Gov. Heineman Announces Line-up for 22nd Annual Governor’s Ag Conference
Gov. Dave Heineman today previewed the schedule for the 2010 Governor’s Ag Conference, being held Wednesday, March 3 and Thursday, March 4 at the Holiday Inn Convention Center in Kearney, located at 110 Second Ave. The theme for the 22nd annual conference is “Nebraska Agriculture: Your Industry. Your Story. Your Future.”
“This event is one way we work with agricultural producers to highlight new opportunities in this increasingly diverse industry,” Gov. Heineman said. “Agriculture continues to change and evolve. Continuing this annual tradition is one way to help ensure this industry remains strong and continues to grow.”
Organized by the Nebraska Department of Agriculture (NDA), the pre-conference activities begin at 6 p.m. on Wednesday, March 3 with the Celebrate Nebraska Agriculture Reception, featuring foods produced by Nebraska farmers and ranchers and speaker Mike Perry. The conference begins at 9 a.m. on Thursday.
Featured speakers on topics impacting Nebraska farms and ranches include Jason Henderson of the Omaha Branch of the Federal Reserve Bank of Kansas City, who will discuss current economic conditions and future projections. In addition, University of Nebraska President James B. Milliken will discuss the university’s research and other efforts to ensure the success of the agriculture industry.
Other speakers include a panel of presenters discussing the need and opportunities for producers to tell their stories. Panelists include Stan Garbacz, Foreign Trade Representative for the Nebraska Department of Agriculture, Cheryl Stubbendieck of the Nebraska Farm Bureau, and Terry Landes with Prairieland Dairy.
NDA Director Greg Ibach, said, “The Governor’s Ag Conference presents opportunities each year for Nebraska agriculturalists to hear about emerging agriculture issues and gain insight on how those issues affect them. Attendees will benefit from discussion about the economy, growing marketing opportunities and a host of other issues that impact them daily.”
The conference is open to anyone with an interest in agriculture issues. A $75 registration fee covers participation at both the conference and the Wednesday reception. Registration information is available online at www.agr.ne.gov, or by calling NDA toll-free at (800) 831-0550.
Nebraska monthly weather summary
Agricultural Summary: For the month of January 2010, above normal temperatures during the second and third weeks of the month brought some relief to livestock producers struggling to feed and care for livestock, according to USDA’s National Agricultural Statistics Service, Nebraska Field Office. Precipitation was light during January with much of the western two-thirds of the state receiving less than .25 inch. Snow depth was also limited in the western two thirds of the State, however, a foot or more was still being reported in portions of the northeast. Livestock care and marketing grain were the main activities during the month.
Weather Summary: Average snow depth at the end of January was 3 inches statewide, less than half of the eight inches reported at the beginning of the month. However, snow depth varied widely by region. Temperatures averaged below normal the first and fourth weeks of the month and above normal during the middle. During the last week of the month, soil temperatures ranged from 26 degrees in the extreme northwest to 32 degrees in parts of the southeast and east central counties.
Field Crops Report: Wheat conditions statewide rated 0 percent very poor, 6 poor, 39 fair, 51 good, and 4 excellent, below last year. Hay and forage supplies rated 1 percent very short, 13 short, 83 adequate, and 3 excellent, were also below a year ago. Livestock, Pasture, and Range Report: Cattle and Calves condition rated 0 percent very poor, 3 poor, 28 fair, 66 good, and 3 excellent, below last year.
The following are comments from Nebraska’s FSA County Executive Directors and County Extension Educators:
NORTHEAST
ANTELOPE: There has been some snow melt and some harvesting has been possible.
BOONE: Bitter cold making it hard for farmers feeding cattle.
CEDAR: Snow and blowing snow have been a problem for livestock care. Most, if not all, of the normal crop feeding residue is covered under snow. Some small calves were lost during the early January storm with temperatures dropping down to 27 below zero.
DIXON: Producers continue to move 2009 farm stored grain to markets with on-going concerns about excess moisture and condition. Cow-calf producers continue to feed more hay then expected due to the snow cover and limited access to harvested fields.
KNOX: Cattle have been stressed with the tough weather. Feed supplies will be nip and tuck.
THURSTON: Excess snow, blizzard conditions, ice storms, power outages, and cold weather have all taken their toll on livestock.
EAST CENTRAL
DODGE: No more corn has been harvested because of the snow. Some instances the corn is getting moldy in the fields.
DOUGLAS: Still lots of snow and really cold.
NANCE: Several producers have reported death losses in calves born from Christmas through mid-January.
SAUNDERS: Piled snow still stands in much of the county. Many with cattle on stalks have supplemented hay.
UNL Platte County workshop Feb 10th
UNL Extension in Platte County is hosting a farm managment and grain marketing workshop on Wednesday, February 10th, at Wonderlich's Catering in Columbus. At 6pm there will be a meal and the workshop will follow. Extension Educator Allan Vyhnalek says the topics include "Analysis Paralysis", "Ambiguous Loss", farm planning and goal setting, constructing a grain marketing plan, time managment, and decision making. Registration is 10 dollars per farm and is due by Feb 5th. Call the UNL Extension Office in Columbus for more information and to register at 402-564-4901.
Clinic Will Help Farmers with Corn and Soybean Production
University of Nebraska-Lincoln Extension will provide farmers, landowners, and crop consultants with information on how to be successful with corn and soybean production practices at the Washington County Corn and Soybean Production Clinic. The clinic is from 1:00 p.m. - 3:30 p.m. on Friday, Feb. 19 at the Washington County Extension Office in Blair.
Producers will learn the benefits of conserving soil and water with crop residues and cover crops, fertilizer recommendations for optimum yields and weed control strategies for maximizing profits and how they can work for them. Attendees will hear the latest UNL research for no till and conservation tillage systems production of corn and soybeans and how it applies to their farming operation.
Speakers include University of Nebraska-Lincoln Extension specialists for tillage systems, soil fertility and weed control. Paul Jasa, UNL Extension tillage systems specialist, will discuss saving soil moisture with crop residues, tillage effects on infiltration and runoff potential and using cover crops to build the soil; Richard Ferguson, UNL Extension soils specialist, will cover nitrogen and phosphorus recommendations for corn and soybeans, enhancing fertilizer efficiency and how soil fertility contributes to yield and Lowell Sandell, UNL Extension weed science educator, will speak on managing volunteer corn in soybeans and corn, glyphosate resistance and new products for weed control.
The clinic is sponsored by the University of Nebraska –Lincoln Extension in Washington County. For more information contact Steve Tonn, UNL Extension Educator in Washington County at 402-426-9455 or email stonn2@unl.edu.
Nebraska Farm Bureau to Senators: Repeal the Water Checkoff
Nebraska Farm Bureau President Keith Olsen urged the legislature to repeal the water checkoff on corn and sorghum in testimony in support of LB 689. Speaking to the Natural Resources Committee, Olsen said Farm Bureau has two primary concerns with the use of checkoff revenues for the Water Resources Cash Fund.
First, checkoffs on commodities traditionally have been used to fund programs designed to stimulate use and demand for that commodity. Diversion of checkoff revenue to another purpose would be precedent-setting, he said. He told senators: “As you no doubt know, it’s a precedent farmers don’t want to see.”
On the second point, Olsen said, “Farm Bureau members believe strongly all Nebraskans have an interest in resolving our water challenges, and as such, funding for water programs should be broad-based.
“The economic benefits of use of water in irrigation are distributed widely. A Nebraska Policy Institute study showed that roughly one-third of the economic benefits of irrigation accrue to the farmer and two-thirds accrues to the economy at large. The state and local communities benefit from irrigation through greater sales and economic activity, higher property tax base, and more taxes collected,” he said.
Using checkoff revenues to fund the Water Resources Cash Fund leans disproportionately on agriculture, Olsen said. “Farmers are already contributing directly through regulatory and voluntary reductions in water use. Reduced water allocations mean reduced yields and reduced income per acre.”
Farm Bureau’s opposition to the water checkoff shouldn’t be viewed as a lack of commitment to finding financial resources to address the state’s water challenges, Olsen emphasized.”Funding is needed for research, implementing integrated management plans, and programs and management activities to resolve conflicts and manage our water resources soundly in the future.
“Dollars are needed to fund these needed programs. Farm Bureau is ready to work with the legislature and other interested parties to find the appropriate funding source,” he said.
USDA Announces Commodity Credit Corporation Lending Rates for February 2010
The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for February 2010. The CCC borrowing rate-based charge for February 2010 is 0.375 percent, unchanged from January 2010. For 1996 and subsequent crop year commodity and marketing assistance loans, the interest rate for loans disbursed during February 2010 is 1.375 percent, unchanged from January 2010.
In accordance with the 2008 Farm Bill, interest rates for Farm Storage Facility Loans approved for February 2010 are as follows - 3.250 percent with seven-year loan terms, 3.750 percent with 10-year loan terms and 4.000 percent with 12-year loan terms - up from 2.875 percent with seven-year loan terms, 3.375 percent with 10-year loan terms and 3.750 with 12-year loan terms in January 2010. The interest rate for Sugar Storage Facility Loans for February 2010 is 4.375 percent, up from 4.000 percent in January 2010.
Peterson Talks 2012 Farm Bill with Wheat Organization Boards
House Agriculture Committee Chairman Collin Peterson (D-Minn.) told wheat growers this week that he plans to write a bipartisan, baseline 2012 Farm Bill, with hearings exploring stakeholder ideas and concerns coming as soon as March or April.
He made the comments as part of a wide-ranging discussion at a joint session of the NAWG and U.S. Wheat Associates Boards, during which he was presented with the 2009 Wheat Leader of the Year Award, the wheat industry’s highest public service award.
Peterson said everything was on the table for the next round of federal farm policy discussions and that producers should start evaluating priorities now, even as the 2008 Farm Bill is still being implemented.
“You need to start thinking now about what you want in the next farm bill, and that’s part of why I'm starting early, to get you guys engaged,” he said.
Peterson said he wasn’t sure the current safety net programs are adequate given input cost increases and expressed interest in revenue concepts like ACRE, though he noted ACRE is too complicated and would be better if based on county revenue.
He noted the importance of the crop insurance program to the farm safety net and expressed concern about losing baseline through the Administration’s renegotiation of the Standard Reinsurance Agreement. Peterson referenced that he met with Secretary of Agriculture Tom Vilsack and told him he was “not enamored” with giving up $4 billion in authority needed to write the next farm bill.
He said his goal was to create a safety net that would allow producers to share risk with the government and be able to get financing if production problems occur.
“We should provide the underpinning to let you do what you do best – and that is produce,” he said. “What I'm interested in is having a safety net for agriculture that works.”
Importantly, Peterson also described to growers his efforts to help his fellow Members better understand agriculture and discussed challenges from reform advocates, saying that agriculture’s opponents often try to define what “reform” means.
“We need to be looking at how to make this work better, how to have systems that we can explain to our urban colleagues that make sense to them,” he said. “That's part of what I want to do over the next year.”
As Chairman, Peterson’s work touches nearly every aspect of agricultural policy and often involves careful negotiations to ensure wide-ranging bills don't inappropriately affect agricultural production.
In the past year, he has worked intensely on climate change, food safety and derivative legislation, and his continued efforts to bridge the divide between agricultural priorities and Members who aren’t familiar with rural life was a key component in his selection as 2009 Wheat Leader.
“At the end of the day,” Peterson told growers, “I'm in Congress because I want to help production agriculture, producers. That's why I do it.”
January Farm Prices Received Index Up 2 Points From Last Month
The preliminary All Farm Products Index of Prices Received by Farmers in January, at 137 percent, based on 1990-92=100, increased 2 points (1.5 percent) from December. The Crop Index is unchanged but the Livestock Index increased 4 points (3.4 percent). Producers received higher prices for broilers, cattle, hogs, and apples and lower prices for lettuce, corn, broccoli, and soybeans. In addition to prices, the overall index is also affected by the seasonal change based on a 3-year average mix of commodities producers sell. Increased monthly marketings of corn, soybeans, wheat, and rice offset decreased marketings of milk, broilers, cotton, and grapes.
Prices Received by Farmers
The January All Farm Products Index is 137 percent of its 1990-92 base, up 1.5 percent from the December index but 1.4 percent below the January 2009 index.
ALL CROPS: The January index is 148, unchanged from December but 8.1 percent below January 2009. Index increases for fruits & nuts, cotton, food grains, and potatoes & dry beans offset the index decreases for commercial vegetables, feed grains & hay, and oil-bearing crops.
Food Grains: The January index, at 171, is unchanged from the previous month but 22 percent below a year ago. The January all wheat price, at $4.79 per bushel, is down 6 cents from December and $1.41 below January 2009.
Feed Grains & Hay: The January index is 150, down 3.2 percent from last month and 20 percent below a year ago. The corn price, at $3.45 per bushel, is 14 cents lower than last month and 91 cents below January 2009. The all hay price, at $109.00 per ton, increased $2.00 from December but is $26.00 below last January. Sorghum grain, at $5.53 per cwt, is down 18 cents from December and 15 cents lower than January last year.
Oil-Bearing Crops: The January index, at 169, is down 1.7 percent from December and 5.6 percent lower than January 2009. The soybean price, at $9.49 per bushel, decreased 31 cents from December and is 48 cents below January 2009.
LIVESTOCK & PRODUCTS: The January index, at 123, is 3.4 percent above last month and up 7.9 percent from January 2009. Compared with a year ago, prices are higher for milk, hogs, cattle, turkeys, and calves. Prices for broilers and all eggs were unchanged.
Meat Animals: The January index, at 109, is up 3.8 percent from last month and 2.8 percent higher than last year. The January hog price, at $47.30 per cwt, is up $2.30 from December and $4.50 higher than a year ago. The January beef cattle price of $81.90 per cwt is up $3.30 from last month and $1.80 higher than January 2009.
Dairy Products: The January index, at 126, is unchanged from a month ago but 24 percent higher than January last year. The January all milk price of $16.50 per cwt is unchanged from last month but is up $3.20 from January 2009. The fluid grade milk price is unchanged but the manufacturing grade milk price is down 30 cents from the previous month.
Prices Paid Index up 4 Points
The January Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 183 percent of the 1990-92 average. The index is up 4 points (2.2 percent) from December and 3 points (1.7 percent) above January 2009. Higher prices for taxes, cash rent, other services, and diesel more than offset lower prices in January for interest, feed grains, concentrates, and mixed fertilizer.
NFU President Roger Johnson Submits Comments on TPP to USTR Kirk
National Farmers Union (NFU) President Roger Johnson recently submitted comments to United States Trade Representative (USTR) Ron Kirk regarding NFU’s position and support of restructuring the Trans-Pacific Partnership Trade Agreement (TPP).
“NFU supports fair trade policies that allow agricultural producers to compete on a level playing field,” said Johnson. “Unfortunately, our past U.S. trade agenda has not prioritized the best interests of our family farmers and ranchers, and has consistently used agriculture as a bargaining chip for other sectors of the U.S. economy to achieve an agreement.”
Many of the most serious problems of the previous trade agreement model are replicated in the three free trade agreements with Colombia, Korea and Panama, and must be addressed if the TPP is to represent a more balanced way to expand trade. The failure to remove these problematic provisions means a trade pact would not even pass the most conservative “does no further harm” test.
“NFU is eager to support future trade agreements that benefit a majority of U.S. farmers, ranchers, small businesses and consumers,” said Johnson. “We all want American trade and globalization policies that promote the larger societal goals of healthy communities, feeding the poor, economic justice, human rights and a sound environment.”
President Barack Obama asked Congress on Monday to slash crop subsidies to "wealthy farmers" and to pare federal support for crop insurance, moves estimated to save $10 billion over 10 years. In his proposed budget for fiscal 2011, Obama suggested a sharply lower cut-off in income that qualifies for crop supports, implemented over a three-year period. It would save $2.26 billion over 10 years.
The administration plan would end crop subsidies to people with more than $250,000 adjusted gross income from off-farm sources or more than $500,000 on-farm AGI. The caps now are set at $500,000 off-farm AGI and $750,000 on-farm AGI. Some $8 billion would be saved over 10 years by reforming administration of the federally subsidized crop insurance system to end "huge windfall profits." The Agriculture Department is negotiating a new master agreement with insurers to reduce overhead payments.
Obama suggested crop subsidy cuts for the second year in a row and as Congress nears an overhaul of the farm program. Last year, lawmakers said any change in farm subsidy rules should wait until a new farm law is written. "This proposal would allow USDA to target payments to those who need and can benefit from them most while at the same time preserving the safety net that protects farmers from low prices and natural disasters," said the administration.
Besides the lower AGI ceiling, the administration would cap the direct-payment subsidy at $30,000 a year, down from the current $40,000. In its budget proposal, the White House proposed $53 million in funds to develop markets overseas, counter-balanced by a 20 percent cut, or $40 million, in the Market Access Program, which shares the cost with trade groups to promote U.S. goods. The White House also requested a 25 percent cut, to $1.2 billion, in the Environmental Quality Incentives Program. The green-payment Conservation Security Program would be cut by roughly $1 million and enrollment held to 12 million acres in fiscal 2011 instead of 12.8 million acres.
NCBA Structural Concept Adopted by Wide Margin at 2010 Cattle Industry Convention
More Efficiency, Agility are Intentions of Board Actions
In preparation for key battles it foresees for the beef industry in coming years, the National Cattlemen’s Beef Association (NCBA) Board of Directors today voted to adopt a report and governance structure concept by a Governance Task Force that would lead to significant structural changes to the organization.
Meeting at the 2010 Cattle Industry Convention, the Board adopted the task force report by a 201-13 margin, putting in motion the creation of a new governance structure, which would feature a smaller NCBA Board of Directors and a new House of Delegates that would include the organization’s state affiliates, state beef councils, industry/breed organizations, and product/allied industry councils. The Federation of State Beef Councils would be housed within the House of Delegates, and continue to conduct its federation duties as specified in the Beef Promotion and Research Act & Order.
“This is an important step in making our industry more responsive to the challenges it faces,” said Jan Lyons, a Kansas beef producer and co-chair of the Governance Task Force. “There are entities across the country seeking to keep us from succeeding as cattlemen and women. The changes we have recommended make it easier for us to move quickly against those groups and assure that consumers know the facts about the great beef we produce and the people that produce it.”
Specifics of the recommendation include:
· A Board of Directors that has 29 members, 26 of whom are elected by the House of Delegates. The Board, which has legal and fiduciary responsibility for the organization;
· A House of Delegates with a total of 250 votes. Of those votes, 106 would go to State Beef Councils, 106 to state affiliates, and 38 to industry and breed organizations, as well as the allied industry/product council;
· The Federation of State Beef Councils within the House of Delegates that elects a chair and vice chair and the eight other members to the Beef Promotion Operating Committee;
· Committees approved by that board that would make proposals to the House of Delegates. These committees would be comprised of NCBA members, members of member organizations and/or invited guests.
“Over the period of 18 months we visited with producers and worked hard to come up with a system that would maximize the capabilities of our organization,” according to Lyons. “We think this new structure will make us as strong as possible as we face the many adversities that face us today.”
Lyons said the task force sought to maintain grassroots input and control of the organization. This is accomplished through the operations and structure of the House of Delegates, whose member organization votes will be weighted based on NCBA investment. They will vote on policy to be recommended to the Board of Directors, the policy-establishing body for the organization. Grassroots input will also be accomplished through committees of like-minded beef producers (such as cow-calf operators, feeders or those interested in beef demand), who will provide input to the House of Delegates.
According to John Queen, task force co-chair and a beef producer from North Carolina, the group was careful to develop recommendations that kept in mind the NCBA’s quest for an industry with one vision, one plan and one voice. It determined that current structure that includes a 274-member Board of Directors is unwieldy and makes authority and accountability within the organization more difficult.
“We wanted to make it easier for the Board to maneuver,” Queen says. “At the same time, NCBA has always sought to conduct our affairs the right way, utilizing checkoff dollars only for those programs for which they were intended. Our recommendation is legal and maintains the strict firewalls required by law for checkoff and non-checkoff dollars.” Queen says the recommendations comply with the Checkoff Act and Order. Legal counsel and the U.S. Department of Agriculture were consulted throughout the process.
The 21-member Task Force included both producer members and state organization staff interested in improving their national organization and the entire industry. Its recommendations were submitted to the NCBA Executive Committee in San Antonio, and discussed by the full Board of Directors today during its Annual Meeting.
Working groups will be established to take the structure concept and further develop bylaws, investment schedules and a transition timeline. Bylaw changes will be considered by the board at the Summer Conference in Denver this July. If bylaws are approved at that meeting, implementation of the structure would begin.
NCBA Members Elect Officers and Approve New Organizational Structure Concept, Policies for 2010
The annual Cattle Industry Convention concluded today with the National Cattlemen’s Beef Association (NCBA) board of directors meeting and annual membership meeting. During the meetings, members voted on leadership and policies to ensure the organization’s success in 2010. More than 6,000 people attended this year’s convention in San Antonio, Texas.
Steve Foglesong, owner of Black Gold Ranch in Illinois, was officially elected to succeed Gary Voogt as NCBA’s new president. Foglesong encouraged NCBA members to join him in leading this great industry—and the association—to an even stronger future, by getting engaged in the issues and telling their story to the public, as well as lawmakers in Washington, DC.
“Our industry has a great story to tell,” said Foglesong. “Our numbers may be small, but when each of us engages and makes our voice heard, we are a force to be reckoned with.”
In a landmark vote, the board approved a new organization structure, as presented today by the Governance Task Force. The board also demonstrated confidence in NCBA by voting unanimously to approve a dues increase to help ensure the organization is on sound financial footing. Dues now start at $100 for cow-calf members. Feeder assessments increased from 10 cents to 12.5 cents per head. Earlier in the week, the Allied Industry Council also expressed its support of NCBA by voting to increase its member dues from $17,500 to $25,000.
In addition to structural changes, members approved a number of policy recommendations to guide NCBA efforts in Washington, DC in 2010.
In the area of federal lands, property rights and land management, members approved policy calling for reform of the Equal Access to Justice Act (EAJA). While EAJA was established by Congress to ensure that individuals, small businesses or public-interest groups with limited financial resources could seek judicial recourse from unreasonable government actions, a lack of federal oversight has allowed the Act to be abused, particularly by environmental-activist organizations which often target farmers and ranchers under the guise of "public interest." In a six-year period, non-profit environmental groups have filed more than 1,500 lawsuits and in turn the federal government has paid out billions in taxpayer dollars in settlements and legal fees under EAJA and other fee-shifting statutes in cases against the U.S. government.
Also with regards to federal lands, members approved policy to address the growing problem of wild horse and burro over-population, which has contributed to range degradation and reductions in biodiversity and livestock productivity. The policy calls for a comprehensive program—including fertility control, sex ratios, and other humane means of herd reduction—in accordance with the management options authorized to be used by the Bureau of Land Management.
With regard to international markets, members passed policy calling on NCBA to urge Congress to immediately ratify the Korea-U.S. Free Trade Agreement (KORUS FTA)—one of the most important bilateral trade agreements in the history of the U.S. beef industry. According to South Korean Economic Minister Choi, who addressed attendees at this week’s economic markets committee meeting, U.S. competitors such as Australia are well on their way to finalizing free-trade agreements with Korea, putting U.S. competitiveness at risk for years to come.
In the area of cattle health, NCBA will pursue priorities and strategies regarding both the modification of the National Brucellosis Eradication Program and the eradication of brucellosis from the Greater Yellowstone Area. New policy also directs NCBA to work to maintain producers’ ability to keep their cattle healthy through the use of approved antibiotics.
All policies adopted are now subject to approval by more than 30,000 NCBA members nationwide. Convention results will become official after a mail-in ballot process concludes in March.
In other news, former Vice President Bill Donald of Mont. was confirmed as the new president-elect, and former Federation Division Chairman J.D. Alexander of Neb. was elected to succeed Donald as vice president. Other newly-elected officers include: Scott George, Wyoming, federation division chairman; David Dick, Missouri, federation division vice chairman; Bruce Hafenfeld, California, policy division chairman; and Bob McCann, Texas, policy division vice chairman.
Foglesong ended the convention with his outlook for 2010. Despite the very-real challenges facing the industry—including an over-reaching federal government and increasing attacks by activist groups—he said he’s optimistic about the year ahead. “We have a nation of bright and professional agriculturalists who are ready to meet demand when it rebounds. And we have a noble profession: feeding people here at home, and around the world. This is a job and a lifestyle to be proud of and fight for so we can turn a strong industry and industry association over to our next generation.”
Gov. Heineman Announces Line-up for 22nd Annual Governor’s Ag Conference
Gov. Dave Heineman today previewed the schedule for the 2010 Governor’s Ag Conference, being held Wednesday, March 3 and Thursday, March 4 at the Holiday Inn Convention Center in Kearney, located at 110 Second Ave. The theme for the 22nd annual conference is “Nebraska Agriculture: Your Industry. Your Story. Your Future.”
“This event is one way we work with agricultural producers to highlight new opportunities in this increasingly diverse industry,” Gov. Heineman said. “Agriculture continues to change and evolve. Continuing this annual tradition is one way to help ensure this industry remains strong and continues to grow.”
Organized by the Nebraska Department of Agriculture (NDA), the pre-conference activities begin at 6 p.m. on Wednesday, March 3 with the Celebrate Nebraska Agriculture Reception, featuring foods produced by Nebraska farmers and ranchers and speaker Mike Perry. The conference begins at 9 a.m. on Thursday.
Featured speakers on topics impacting Nebraska farms and ranches include Jason Henderson of the Omaha Branch of the Federal Reserve Bank of Kansas City, who will discuss current economic conditions and future projections. In addition, University of Nebraska President James B. Milliken will discuss the university’s research and other efforts to ensure the success of the agriculture industry.
Other speakers include a panel of presenters discussing the need and opportunities for producers to tell their stories. Panelists include Stan Garbacz, Foreign Trade Representative for the Nebraska Department of Agriculture, Cheryl Stubbendieck of the Nebraska Farm Bureau, and Terry Landes with Prairieland Dairy.
NDA Director Greg Ibach, said, “The Governor’s Ag Conference presents opportunities each year for Nebraska agriculturalists to hear about emerging agriculture issues and gain insight on how those issues affect them. Attendees will benefit from discussion about the economy, growing marketing opportunities and a host of other issues that impact them daily.”
The conference is open to anyone with an interest in agriculture issues. A $75 registration fee covers participation at both the conference and the Wednesday reception. Registration information is available online at www.agr.ne.gov, or by calling NDA toll-free at (800) 831-0550.
Nebraska monthly weather summary
Agricultural Summary: For the month of January 2010, above normal temperatures during the second and third weeks of the month brought some relief to livestock producers struggling to feed and care for livestock, according to USDA’s National Agricultural Statistics Service, Nebraska Field Office. Precipitation was light during January with much of the western two-thirds of the state receiving less than .25 inch. Snow depth was also limited in the western two thirds of the State, however, a foot or more was still being reported in portions of the northeast. Livestock care and marketing grain were the main activities during the month.
Weather Summary: Average snow depth at the end of January was 3 inches statewide, less than half of the eight inches reported at the beginning of the month. However, snow depth varied widely by region. Temperatures averaged below normal the first and fourth weeks of the month and above normal during the middle. During the last week of the month, soil temperatures ranged from 26 degrees in the extreme northwest to 32 degrees in parts of the southeast and east central counties.
Field Crops Report: Wheat conditions statewide rated 0 percent very poor, 6 poor, 39 fair, 51 good, and 4 excellent, below last year. Hay and forage supplies rated 1 percent very short, 13 short, 83 adequate, and 3 excellent, were also below a year ago. Livestock, Pasture, and Range Report: Cattle and Calves condition rated 0 percent very poor, 3 poor, 28 fair, 66 good, and 3 excellent, below last year.
The following are comments from Nebraska’s FSA County Executive Directors and County Extension Educators:
NORTHEAST
ANTELOPE: There has been some snow melt and some harvesting has been possible.
BOONE: Bitter cold making it hard for farmers feeding cattle.
CEDAR: Snow and blowing snow have been a problem for livestock care. Most, if not all, of the normal crop feeding residue is covered under snow. Some small calves were lost during the early January storm with temperatures dropping down to 27 below zero.
DIXON: Producers continue to move 2009 farm stored grain to markets with on-going concerns about excess moisture and condition. Cow-calf producers continue to feed more hay then expected due to the snow cover and limited access to harvested fields.
KNOX: Cattle have been stressed with the tough weather. Feed supplies will be nip and tuck.
THURSTON: Excess snow, blizzard conditions, ice storms, power outages, and cold weather have all taken their toll on livestock.
EAST CENTRAL
DODGE: No more corn has been harvested because of the snow. Some instances the corn is getting moldy in the fields.
DOUGLAS: Still lots of snow and really cold.
NANCE: Several producers have reported death losses in calves born from Christmas through mid-January.
SAUNDERS: Piled snow still stands in much of the county. Many with cattle on stalks have supplemented hay.
UNL Platte County workshop Feb 10th
UNL Extension in Platte County is hosting a farm managment and grain marketing workshop on Wednesday, February 10th, at Wonderlich's Catering in Columbus. At 6pm there will be a meal and the workshop will follow. Extension Educator Allan Vyhnalek says the topics include "Analysis Paralysis", "Ambiguous Loss", farm planning and goal setting, constructing a grain marketing plan, time managment, and decision making. Registration is 10 dollars per farm and is due by Feb 5th. Call the UNL Extension Office in Columbus for more information and to register at 402-564-4901.
Clinic Will Help Farmers with Corn and Soybean Production
University of Nebraska-Lincoln Extension will provide farmers, landowners, and crop consultants with information on how to be successful with corn and soybean production practices at the Washington County Corn and Soybean Production Clinic. The clinic is from 1:00 p.m. - 3:30 p.m. on Friday, Feb. 19 at the Washington County Extension Office in Blair.
Producers will learn the benefits of conserving soil and water with crop residues and cover crops, fertilizer recommendations for optimum yields and weed control strategies for maximizing profits and how they can work for them. Attendees will hear the latest UNL research for no till and conservation tillage systems production of corn and soybeans and how it applies to their farming operation.
Speakers include University of Nebraska-Lincoln Extension specialists for tillage systems, soil fertility and weed control. Paul Jasa, UNL Extension tillage systems specialist, will discuss saving soil moisture with crop residues, tillage effects on infiltration and runoff potential and using cover crops to build the soil; Richard Ferguson, UNL Extension soils specialist, will cover nitrogen and phosphorus recommendations for corn and soybeans, enhancing fertilizer efficiency and how soil fertility contributes to yield and Lowell Sandell, UNL Extension weed science educator, will speak on managing volunteer corn in soybeans and corn, glyphosate resistance and new products for weed control.
The clinic is sponsored by the University of Nebraska –Lincoln Extension in Washington County. For more information contact Steve Tonn, UNL Extension Educator in Washington County at 402-426-9455 or email stonn2@unl.edu.
Nebraska Farm Bureau to Senators: Repeal the Water Checkoff
Nebraska Farm Bureau President Keith Olsen urged the legislature to repeal the water checkoff on corn and sorghum in testimony in support of LB 689. Speaking to the Natural Resources Committee, Olsen said Farm Bureau has two primary concerns with the use of checkoff revenues for the Water Resources Cash Fund.
First, checkoffs on commodities traditionally have been used to fund programs designed to stimulate use and demand for that commodity. Diversion of checkoff revenue to another purpose would be precedent-setting, he said. He told senators: “As you no doubt know, it’s a precedent farmers don’t want to see.”
On the second point, Olsen said, “Farm Bureau members believe strongly all Nebraskans have an interest in resolving our water challenges, and as such, funding for water programs should be broad-based.
“The economic benefits of use of water in irrigation are distributed widely. A Nebraska Policy Institute study showed that roughly one-third of the economic benefits of irrigation accrue to the farmer and two-thirds accrues to the economy at large. The state and local communities benefit from irrigation through greater sales and economic activity, higher property tax base, and more taxes collected,” he said.
Using checkoff revenues to fund the Water Resources Cash Fund leans disproportionately on agriculture, Olsen said. “Farmers are already contributing directly through regulatory and voluntary reductions in water use. Reduced water allocations mean reduced yields and reduced income per acre.”
Farm Bureau’s opposition to the water checkoff shouldn’t be viewed as a lack of commitment to finding financial resources to address the state’s water challenges, Olsen emphasized.”Funding is needed for research, implementing integrated management plans, and programs and management activities to resolve conflicts and manage our water resources soundly in the future.
“Dollars are needed to fund these needed programs. Farm Bureau is ready to work with the legislature and other interested parties to find the appropriate funding source,” he said.
USDA Announces Commodity Credit Corporation Lending Rates for February 2010
The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced interest rates for February 2010. The CCC borrowing rate-based charge for February 2010 is 0.375 percent, unchanged from January 2010. For 1996 and subsequent crop year commodity and marketing assistance loans, the interest rate for loans disbursed during February 2010 is 1.375 percent, unchanged from January 2010.
In accordance with the 2008 Farm Bill, interest rates for Farm Storage Facility Loans approved for February 2010 are as follows - 3.250 percent with seven-year loan terms, 3.750 percent with 10-year loan terms and 4.000 percent with 12-year loan terms - up from 2.875 percent with seven-year loan terms, 3.375 percent with 10-year loan terms and 3.750 with 12-year loan terms in January 2010. The interest rate for Sugar Storage Facility Loans for February 2010 is 4.375 percent, up from 4.000 percent in January 2010.
Peterson Talks 2012 Farm Bill with Wheat Organization Boards
House Agriculture Committee Chairman Collin Peterson (D-Minn.) told wheat growers this week that he plans to write a bipartisan, baseline 2012 Farm Bill, with hearings exploring stakeholder ideas and concerns coming as soon as March or April.
He made the comments as part of a wide-ranging discussion at a joint session of the NAWG and U.S. Wheat Associates Boards, during which he was presented with the 2009 Wheat Leader of the Year Award, the wheat industry’s highest public service award.
Peterson said everything was on the table for the next round of federal farm policy discussions and that producers should start evaluating priorities now, even as the 2008 Farm Bill is still being implemented.
“You need to start thinking now about what you want in the next farm bill, and that’s part of why I'm starting early, to get you guys engaged,” he said.
Peterson said he wasn’t sure the current safety net programs are adequate given input cost increases and expressed interest in revenue concepts like ACRE, though he noted ACRE is too complicated and would be better if based on county revenue.
He noted the importance of the crop insurance program to the farm safety net and expressed concern about losing baseline through the Administration’s renegotiation of the Standard Reinsurance Agreement. Peterson referenced that he met with Secretary of Agriculture Tom Vilsack and told him he was “not enamored” with giving up $4 billion in authority needed to write the next farm bill.
He said his goal was to create a safety net that would allow producers to share risk with the government and be able to get financing if production problems occur.
“We should provide the underpinning to let you do what you do best – and that is produce,” he said. “What I'm interested in is having a safety net for agriculture that works.”
Importantly, Peterson also described to growers his efforts to help his fellow Members better understand agriculture and discussed challenges from reform advocates, saying that agriculture’s opponents often try to define what “reform” means.
“We need to be looking at how to make this work better, how to have systems that we can explain to our urban colleagues that make sense to them,” he said. “That's part of what I want to do over the next year.”
As Chairman, Peterson’s work touches nearly every aspect of agricultural policy and often involves careful negotiations to ensure wide-ranging bills don't inappropriately affect agricultural production.
In the past year, he has worked intensely on climate change, food safety and derivative legislation, and his continued efforts to bridge the divide between agricultural priorities and Members who aren’t familiar with rural life was a key component in his selection as 2009 Wheat Leader.
“At the end of the day,” Peterson told growers, “I'm in Congress because I want to help production agriculture, producers. That's why I do it.”
January Farm Prices Received Index Up 2 Points From Last Month
The preliminary All Farm Products Index of Prices Received by Farmers in January, at 137 percent, based on 1990-92=100, increased 2 points (1.5 percent) from December. The Crop Index is unchanged but the Livestock Index increased 4 points (3.4 percent). Producers received higher prices for broilers, cattle, hogs, and apples and lower prices for lettuce, corn, broccoli, and soybeans. In addition to prices, the overall index is also affected by the seasonal change based on a 3-year average mix of commodities producers sell. Increased monthly marketings of corn, soybeans, wheat, and rice offset decreased marketings of milk, broilers, cotton, and grapes.
Prices Received by Farmers
The January All Farm Products Index is 137 percent of its 1990-92 base, up 1.5 percent from the December index but 1.4 percent below the January 2009 index.
ALL CROPS: The January index is 148, unchanged from December but 8.1 percent below January 2009. Index increases for fruits & nuts, cotton, food grains, and potatoes & dry beans offset the index decreases for commercial vegetables, feed grains & hay, and oil-bearing crops.
Food Grains: The January index, at 171, is unchanged from the previous month but 22 percent below a year ago. The January all wheat price, at $4.79 per bushel, is down 6 cents from December and $1.41 below January 2009.
Feed Grains & Hay: The January index is 150, down 3.2 percent from last month and 20 percent below a year ago. The corn price, at $3.45 per bushel, is 14 cents lower than last month and 91 cents below January 2009. The all hay price, at $109.00 per ton, increased $2.00 from December but is $26.00 below last January. Sorghum grain, at $5.53 per cwt, is down 18 cents from December and 15 cents lower than January last year.
Oil-Bearing Crops: The January index, at 169, is down 1.7 percent from December and 5.6 percent lower than January 2009. The soybean price, at $9.49 per bushel, decreased 31 cents from December and is 48 cents below January 2009.
LIVESTOCK & PRODUCTS: The January index, at 123, is 3.4 percent above last month and up 7.9 percent from January 2009. Compared with a year ago, prices are higher for milk, hogs, cattle, turkeys, and calves. Prices for broilers and all eggs were unchanged.
Meat Animals: The January index, at 109, is up 3.8 percent from last month and 2.8 percent higher than last year. The January hog price, at $47.30 per cwt, is up $2.30 from December and $4.50 higher than a year ago. The January beef cattle price of $81.90 per cwt is up $3.30 from last month and $1.80 higher than January 2009.
Dairy Products: The January index, at 126, is unchanged from a month ago but 24 percent higher than January last year. The January all milk price of $16.50 per cwt is unchanged from last month but is up $3.20 from January 2009. The fluid grade milk price is unchanged but the manufacturing grade milk price is down 30 cents from the previous month.
Prices Paid Index up 4 Points
The January Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 183 percent of the 1990-92 average. The index is up 4 points (2.2 percent) from December and 3 points (1.7 percent) above January 2009. Higher prices for taxes, cash rent, other services, and diesel more than offset lower prices in January for interest, feed grains, concentrates, and mixed fertilizer.
NFU President Roger Johnson Submits Comments on TPP to USTR Kirk
National Farmers Union (NFU) President Roger Johnson recently submitted comments to United States Trade Representative (USTR) Ron Kirk regarding NFU’s position and support of restructuring the Trans-Pacific Partnership Trade Agreement (TPP).
“NFU supports fair trade policies that allow agricultural producers to compete on a level playing field,” said Johnson. “Unfortunately, our past U.S. trade agenda has not prioritized the best interests of our family farmers and ranchers, and has consistently used agriculture as a bargaining chip for other sectors of the U.S. economy to achieve an agreement.”
Many of the most serious problems of the previous trade agreement model are replicated in the three free trade agreements with Colombia, Korea and Panama, and must be addressed if the TPP is to represent a more balanced way to expand trade. The failure to remove these problematic provisions means a trade pact would not even pass the most conservative “does no further harm” test.
“NFU is eager to support future trade agreements that benefit a majority of U.S. farmers, ranchers, small businesses and consumers,” said Johnson. “We all want American trade and globalization policies that promote the larger societal goals of healthy communities, feeding the poor, economic justice, human rights and a sound environment.”

