Thursday September 29 Ag News
Posted
in Chad Moyer's Blog
at 03:24PM on 09/29/2011
Thurston Mfg. Grows Workforce By 18% in 2011
Still Looking For More
As much of the nation’s economy continues to struggle with issues of low consumer demand and high unemployment, the agricultural sector has been soaring. This growth extends past farming operations to the dealers and manufacturer’s that provide farmers with agricultural equipment. As the manufacturer of Circle R Side Dump Trailers and BLU-JET fertilizer and tillage products, Thurston Manufacturing has seen tremendous growth within the last 24 months and sees the opportunity for more. Over the past year Thurston Manufacturing Company has hired 14 additional people to help meet new product demand and serve existing customers; they have 22 additional new positions open they are looking to fill immediately.
“We have been asking a lot from our current workforce this past year in terms of additional overtime hours and improving production efficiencies; and they have stepped up to the challenge”, said Ryan Jensen. “We have a great group of people here that work very hard day in and day out to meet our production goals.”
As Thurston Manufacturing’s Chief Operations Officer, one of Jensen’s responsibilities is to try and keep production on pace with swelling demand. He’s been meeting the challenge thus far by offering overtime and additional incentives to current employees, while continuing to hire qualified candidates that apply for work.
Although these measures have worked to satisfy demand so far, Jensen recognizes that they are temporary solutions to a more permanent challenge. “We realized that the high level of demand we are experiencing is likely to continue, and the pace and hours our team has been working simply isn’t sustainable for an extended period of time”, he observed. “We have been over extending both our employees and our facilities; and the market has presented us with an opportunity to take a step forward and grow as a company in both of these areas.”
Nick Jensen, Chief Marketing Officer at Thurston Manufacturing, concurs with his brother’s assessment of the marketplace. “It’s no secret that the agricultural sector of our nation’s economy is currently one of its brightest beacons”, he said. “We’re seeing heightened demand for BLU-JET equipment from our traditional markets in the U.S. corn belt, as well as newer markets in North America, Europe, Asia, and Africa”. Activity is also increasing in the Circle R Side Dump product line, as dealers have cleared out all existing inventory and are looking for more.”
On top of filling the 22 new full time positions now available within the production facility, plans are in place to invest three to five million dollars towards a 50% increase in facilities and equipment over the next 5 years using various funding sources. The timing and total amount invested will depend on the continued stability of the agricultural economy, and the continued recovery of the construction industry. The company is working to ensure that demand for its products stays strong by aggressively pursuing the expansion of its overseas markets.
“Over the last few years, our primary domestic markets have dominated our production capacities, with export sales running a mere 6% of total sales”, said Jensen “With the expansion efforts we are now making, export sales could increase to 20% in the next two to three years; while simultaneously increasing our abilities to meet higher primary and secondary domestic market demands.”
The completed expansion will extend all three current buildings southward and add a new building to the east side of the facility. Cleaning, painting and assembly areas are the focus of filling the new footprint. Automation and robotics will also play a major role in the expansion process. This will increase the current square footage under roof by 50%. Concrete work for
the plant expansion project started September 19th. The new building should be completed by mid-summer 2012, and be fully operational at this time next year.
Based in Thurston, NE, Thurston Manufacturing is celebrating 40 years of designing, producing and marketing manufactured durable goods. It currently manufactures two prominent brands: BLU-JET Fertilizer and Tillage Products for agriculture, and Circle R Side Dump Semi-Trailers for the construction, mining, demolition, refuse and agricultural industries. For more information regarding positions currently available at Thurston Manufacturing Company, call 800.658.3127 or visit the facility located at 1708 H Ave., Thurston, NE.
Producers Encouraged to Monitor Grain this Fall
As harvest begins around the state, farmers are encouraged to be aware of the potential for development of molds and fungus in corn. Recent warnings by Iowa State University (ISU) Extension and Outreach's Integrated Crop Management (ICM) staff about hail-damaged corn in northwest Iowa help draw attention to the issue, according to ISU Extension swine program specialist Matt Swantek.
"The concern is not only for crop farmers, but for those feeding corn to livestock," Swantek said. "Pork producers whose corn fields experienced hail late this summer should be monitoring grain for contamination and either avoid feeding contaminated grain to pigs or explore alternative strategies for utilizing this corn in their feeding programs."
It's recommended that suspect fields be harvested as early as possible because molds and toxins worsen as they remain in the field, he said. Normally, there is no increase as grain is stored.
The presence of mycotoxins in corn can have long-term effects, including effects on sell weights of pigs a year or more in the future.
"High levels of mycotoxins in the 2009 corn crop led to longer days on feed, lower gains and poorer feed efficiencies in operations in 2010," Swantek said. "Pigs were held in barns longer because weight gains were slower, and sell weights were 10 to 20 pounds lighter than targeted by producers."
The effects of those lower efficiencies carried over into 2011 albeit in a different way.
"2011 sell weights were higher than 2010 because those having to feed contaminated grain until the 2010 crop reached storage and usage grew accustomed to slower gains and lighter sell weights," Swantek said. "Thus, when the 'clean' 2010 corn was fed, pigs ate more, and grew faster, consequently catching many unprepared and selling hogs much heavier than expected."
Being aware of any contamination in corn or feed stocks now also can help producers better plan for the financial uncertainty of grain markets, he said. Late summer reports of lower yields for the 2011 crop and record low 2010 ending stocks may force grain prices to new highs and mean additional higher pressures on cost of production and lower returns."
A great information source on molds and fungus is available from the Iowa Pork Industry Center website. Written by ISU swine nutrition specialist John Patience and clinician Steve Ensley with ISU's Veterinary Diagnostic and Production Animal Medicine department, "Mycotoxin Contamination of Corn: What it is, what it does to pigs, and what can be done about it" (IPIC12) can be viewed and downloaded at no charge.
Nebraska Ethanol National Open races October 1-2
Ethanol-powered cars & E85 discounts featured during weekend racing events
The Nebraska Ethanol Board is co-sponsoring racing events this weekend at the Kearney Raceway Park in Kearney, including quarter-mile drag races with cars powered by E85.
As part of this weekend’s events, two Bosselman’s Pump & Pantry locations in Kearney will offer an 85 cent per-gallon discount on E85 and a free 32 oz. soft drink with a minimum 10 gallon purchase of E85. This special deal is good only on Sunday, October 2 from noon to 6 pm at the Pump & Pantry at 4311 N 2nd Avenue, and the Pump & Pantry at 1212 E 56th Street.
E85 is a blend of up to 85% ethanol with gasoline and can be used in Flex Fuel Vehicles. Visit the Nebraska Ethanol Board online for a list of E85 stations in Nebraska... http://www.ne-ethanol.org/e85/stations.htm.
Saturday’s events include Test and Tune & NHRA Qualifying starting at 10 am, and Super Shootout & ST/SS Combo races beginning at 3pm.
Sunday’s events begin at 9 am with Time Trials & NHRA qualifying. Eliminations begin at 1 pm.
Starting times for races are subject to change due to weather. Check the Kearney Raceway Park website at www.krpi.com for entry and admission details. Download the flier here for more on the races... http://www.krpi.com/Images/index/Special%20Event%20Flyers/2011%20National%20Open.jpg.
ASA’s 2012 Farm Bill Proposal: "Risk Management for America’s Farmers"
Savings Would Be Used for Agriculture’s Share of Deficit Reduction
The American Soybean Association today released its proposal for the 2012 Farm Bill, "Risk Management for America’s Farmers." "This proposal will help farmers manage the risks they face from adverse weather, crop disease, and volatile commodity markets," stated ASA President Alan Kemper, a soybean producer from Lafayette, Ind. "ASA believes the current farm program safety net can be made more effective, efficient, and defensible by reallocating baseline funding to this revenue-based program that improves risk management and complements crop insurance," Kemper added. Because the proposal would replace current farm programs, this proposal would also result in savings that help agriculture contribute its fair share to deficit reduction.
The "Risk Management for America’s Farmers" program, or "RMAF," would partially protect revenue losses by farmers of soybeans and other program commodities that result from low prices or reduced yields for their crops. The program would establish commodity-specific revenue benchmarks for individual farmers based on historical yields and prices, and compensate them for part of the difference when current-year revenue for a commodity on their farm falls below a percentage of the benchmark. All planted and prevented planted acres would be covered under the plan. The program would complement the existing crop insurance program used by most farmers, which ASA strongly supports and believes should be continued. More details on the plan can be found on ASA’s website at www.soygrowers.com/policy/ASA-RMAF.pdf.
"ASA supports a risk management program that partially offsets shallow revenue losses at the farm level not covered by crop insurance," said ASA Farm Bill Task Force Chairman Rob Joslin, a soybean farmer from Sidney, Ohio. "Farmers told ASA that they want a program that operates off a farm-level revenue loss trigger rather than a state, Crop Reporting District, or even county loss trigger. Farmers told us that the use of a state-level revenue loss trigger in the current Average Crop Revenue Election (ACRE) program was one of the problems they saw in that program that resulted in low participation rates. I want to thank the members of ASA’s Farm Bill Task Force, who were from all soybean growing regions, for their work in listening to their fellow producers and for crafting this risk management proposal," concluded Joslin.
According to Kemper, "Preliminary indications are that RMAF could cost significantly less than the existing ACRE, the Supplemental Revenue Assistance Payments Program, Direct Payment, and Counter-Cyclical programs, resulting in savings that can be used to meet part of agriculture’s share of deficit reduction required by the Budget Control Act." Kemper added that "while ASA strongly supports federal support for on-farm conservation practices, given the cost of these programs, we believe they need to be included in helping to meet agriculture’s share of deficit reduction. Thus, for that for that portion of spending cuts that does not come from other farm bill titles, ASA is suggesting spending reductions should come equally from commodity and conservation programs.
"ASA supports efforts to address our Nation’s debt through a comprehensive and balanced approach to deficit reduction that includes cuts to all areas of Federal spending," said Kemper. "Farmers are willing to do their fair share to contribute to these efforts, but cuts to agricultural spending should not be disproportionate." The ASA President concluded his remarks by emphasizing that "federal crop insurance is the core of agriculture’s safety net, and has already contributed to deficit reduction. ASA will strongly oppose any proposal to further reduce crop insurance funding."
ASA represents all U.S. soybean farmers on domestic and international issues of importance to the soybean industry. ASA’s advocacy efforts are made possible through the voluntary membership in ASA by over 21,000 farmers in 31 states where soybeans are grown.
September Farm Prices Received Index Declines 1 Point
The preliminary All Farm Products Index of Prices Received by Farmers in September, at 183 percent, based on 1990-1992=100, decreased 1 point (0.5 percent) from August. The Crop Index is unchanged but the Livestock Index decreased 7 points (4.4 percent). Producers received higher prices for cattle, strawberries, hay, and grain sorghum and lower prices for broilers, hogs, milk, and corn. 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, apples, and potatoes offset decreased marketings of cattle, wheat, broilers, and grapes.
The preliminary All Farm Products Index is up 40 points (28 percent) from September 2010. The Food Commodities Index, at 169, decreased 4 points (2.3 percent) from last month but increased 28 points (20 percent) from September 2010.
Prices Paid Index Unchanged
The September Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 205 percent of the 1990-1992 average. The index is unchanged from August but 22 points above (12 percent) September 2010. Higher prices in September for complete feeds, supplements, LP gas, and potash & phosphate offset lower prices for concentrates, feeder cattle, feed grains, and feeder pigs.
Prices Received by Farmers
All crops: The September index, at 210, is unchanged from August but 38 percent above September 2010. Index increases for fruits & nuts, feed grains & hay, and upland cotton offset index decreases for oilseeds, food grains, commercial vegetables, and potatoes & dry beans.
Food grains: The September index, at 245, is 1.6 percent below the previous month but 30 percent above a year ago. The September all wheat price, at $7.53 per bushel, is down 8 cents from August but $1.74 above September 2010.
Feed grains & hay: The September index, at 281, is unchanged from last month but 62 percent above a year ago. The corn price, at $6.69 per bushel, is down 19 cents from last month but $2.61 above September 2010. The all hay price, at $176 per ton, is up $4.00 from August and $64.00 higher than last September. Sorghum grain, at $11.70 per cwt, is $1.00 above August and $4.44 above September last year.
Cotton, Upland: The September index, at 157, is up 1.3 percent from August and 28 percent above last year. The September price, at 95.4 cents per pound, is up 1.4 cents from the previous month and 20.7 cents above last September.
Oilseeds: The September index, at 215, is down 10 percent from August but 44 percent higher than September 2010. The soybean price, at $13.10 per bushel, decreased 30 cents from August but is $3.12 above September 2010.
Livestock and products: The September index, at 151, is 4.4 percent below last month but up 13 percent from September 2010. Compared with a year ago, prices are higher for cattle, milk, eggs, hogs, calves, and turkeys. Prices for broilers are lower than last year.
Meat animals: The September index, at 149, is down 2.6 percent from last month but 16 percent higher than last year. The September hog price, at $66.70 per cwt, is down $9.10 from August but $5.70 higher than a year ago. The September beef cattle price of $112 per cwt is up $1.00 from last month and $17.90 higher than September 2010.
Dairy products: The September index, at 160, is down 4.8 percent from a month ago but 18 percent higher than September last year. The September all milk price of $20.90 per cwt is down $1.10 from last month but $3.20 higher than September 2010.
Poultry & eggs: The September index, at 147, is down 8.1 percent from August but unchanged from a year ago. The September market egg price, at 76.9 cents per dozen, decreased 22.2 cents from August but is 32.3 cents above September 2010. The September broiler price, at 44.0 cents per pound, is down 4.0 cents from August and 5.0 cents below a year ago. The September turkey price, at 72.1 cents per pound, is up 1.4 cents from the previous month and 3.1 cents higher than a year earlier.
FSA Reminds Producers of MILC Production Start-Month Change Provisions
Thurston County USDA Farm Service Agency (FSA) Executive Director Josie Waterbury reminds Milk Income Loss Contract (MILC) Program participants that they can change the month of commercially marketed production for which the Commodity Credit Corporation (CCC) will begin issuing payments to their dairy operation.
"Any start-month changes must be made on or before the 14th of the month before the selected MILC production start-month," said Waterbury. "The change must also be made before requesting payment and before the original MILC production start-month has passed," she said.
Changes to the dairy operation production start-month must be designated on FSA’s form CCC-580M, "Milk Income Loss Contract (MILC) Modification."
MILC compensates dairy producers when domestic milk prices fall below a specified level. Eligible dairy producers can apply for program benefits any time through September 30, 2012.
Chicago Fed Reserve to Hold Conference on Rising Farmland Values
On November 15, the Federal Reserve Bank of Chicago will hold a conference to explore the factors contributing to large increases in agricultural land values and cash rental rates in the Midwest.
Farmland values increased 16 percent from a year ago in the first quarter of 2011; 2011 cash rents for farmland increased 16 percent as well. At the conference, experts from academia, industry and policy institutions will present research on the causes of rapid increases in agricultural land values and cash rents, as well as their interrelationship.
The goals of the conference include analyzing demographic and geographical characteristics of Midwest farmland ownership; understanding the dynamics of farmland valuations; assessing the risks facing agriculture and the banking industry from rising farmland values; and discussing policy implications for agricultural lending stemming from current farmland trends.
FSA Decreases Complaints to Lowest-Ever Level
U.S. Department of Agriculture Farm Service Agency Administrator Bruce Nelson announced Wednesday that FSA has significantly reduced the number of civil rights complaints in fiscal year 2010 to the lowest level in the agency's history, while increasing the number of loans and dollar amount obligated to programs dedicated to minority and women farmers for fiscal year 2011.
"The loan numbers reflect the significant progress we have made in the effort to equally serve all eligible applicants for FSA program support," said Nelson. "Under the leadership of President Obama and Secretary Vilsack, the Farm Service Agency is committed to diversity, inclusion and performance like never before, for the benefit of our customers and our employees. At USDA, we understand that the work we do makes a positive impact on the lives of the American people every single day, in so many ways."
Over the last fiscal year, FSA's loan division conducted business with 70,000 borrowers and provided support to 1.9 million producers through its farm programs. Out of the nearly 2 million producers the agency has served, 37 complaints were received — the lowest number filed since the agency began. During the same year, more than 5,650 loans and $509 million in support were obligated to minority and women farmers under FSA's loan programs.
Funding obligated for minority and women farmers has increased in fiscal year 2011 by 9 percent over the same period last year, to $554 million as of September 27, 2011. The largest increase has come in guaranteed farm ownership loans. These loans, which help producers obtain commercial credit to establish or maintain a family farm or ranch, have increased 40 percent to $161.8 million for minority and women farmers.
In addition to improvements in lending practices to minority and women producers, FSA has seen an overall improvement in its loan portfolio. Losses in the direct loan program fell to 1.2 percent, its second lowest level since 1986, while direct loan delinquency has been at historic lows not seen for the past two decades, resting at 5.9 percent. Delinquency rates for fiscal year 2010 under the guaranteed loan program were at 1.69 percent, the second lowest since 1995. Foreclosure rates remain low with just 64 completed in fiscal year 2010. That represents less than one-tenth of one percent of the agency's direct loan caseload.
As a result of this progress, USDA Assistant Secretary for Civil Rights Joe Leonard presented FSA with a "Job Well Done" award in December 2010. The award underscores efforts made by USDA to improve its service after years of litigation alleging unfair treatment to women and minority farmers and ranchers.
Still Looking For More
As much of the nation’s economy continues to struggle with issues of low consumer demand and high unemployment, the agricultural sector has been soaring. This growth extends past farming operations to the dealers and manufacturer’s that provide farmers with agricultural equipment. As the manufacturer of Circle R Side Dump Trailers and BLU-JET fertilizer and tillage products, Thurston Manufacturing has seen tremendous growth within the last 24 months and sees the opportunity for more. Over the past year Thurston Manufacturing Company has hired 14 additional people to help meet new product demand and serve existing customers; they have 22 additional new positions open they are looking to fill immediately.
“We have been asking a lot from our current workforce this past year in terms of additional overtime hours and improving production efficiencies; and they have stepped up to the challenge”, said Ryan Jensen. “We have a great group of people here that work very hard day in and day out to meet our production goals.”
As Thurston Manufacturing’s Chief Operations Officer, one of Jensen’s responsibilities is to try and keep production on pace with swelling demand. He’s been meeting the challenge thus far by offering overtime and additional incentives to current employees, while continuing to hire qualified candidates that apply for work.
Although these measures have worked to satisfy demand so far, Jensen recognizes that they are temporary solutions to a more permanent challenge. “We realized that the high level of demand we are experiencing is likely to continue, and the pace and hours our team has been working simply isn’t sustainable for an extended period of time”, he observed. “We have been over extending both our employees and our facilities; and the market has presented us with an opportunity to take a step forward and grow as a company in both of these areas.”
Nick Jensen, Chief Marketing Officer at Thurston Manufacturing, concurs with his brother’s assessment of the marketplace. “It’s no secret that the agricultural sector of our nation’s economy is currently one of its brightest beacons”, he said. “We’re seeing heightened demand for BLU-JET equipment from our traditional markets in the U.S. corn belt, as well as newer markets in North America, Europe, Asia, and Africa”. Activity is also increasing in the Circle R Side Dump product line, as dealers have cleared out all existing inventory and are looking for more.”
On top of filling the 22 new full time positions now available within the production facility, plans are in place to invest three to five million dollars towards a 50% increase in facilities and equipment over the next 5 years using various funding sources. The timing and total amount invested will depend on the continued stability of the agricultural economy, and the continued recovery of the construction industry. The company is working to ensure that demand for its products stays strong by aggressively pursuing the expansion of its overseas markets.
“Over the last few years, our primary domestic markets have dominated our production capacities, with export sales running a mere 6% of total sales”, said Jensen “With the expansion efforts we are now making, export sales could increase to 20% in the next two to three years; while simultaneously increasing our abilities to meet higher primary and secondary domestic market demands.”
The completed expansion will extend all three current buildings southward and add a new building to the east side of the facility. Cleaning, painting and assembly areas are the focus of filling the new footprint. Automation and robotics will also play a major role in the expansion process. This will increase the current square footage under roof by 50%. Concrete work for
the plant expansion project started September 19th. The new building should be completed by mid-summer 2012, and be fully operational at this time next year.
Based in Thurston, NE, Thurston Manufacturing is celebrating 40 years of designing, producing and marketing manufactured durable goods. It currently manufactures two prominent brands: BLU-JET Fertilizer and Tillage Products for agriculture, and Circle R Side Dump Semi-Trailers for the construction, mining, demolition, refuse and agricultural industries. For more information regarding positions currently available at Thurston Manufacturing Company, call 800.658.3127 or visit the facility located at 1708 H Ave., Thurston, NE.
Producers Encouraged to Monitor Grain this Fall
As harvest begins around the state, farmers are encouraged to be aware of the potential for development of molds and fungus in corn. Recent warnings by Iowa State University (ISU) Extension and Outreach's Integrated Crop Management (ICM) staff about hail-damaged corn in northwest Iowa help draw attention to the issue, according to ISU Extension swine program specialist Matt Swantek.
"The concern is not only for crop farmers, but for those feeding corn to livestock," Swantek said. "Pork producers whose corn fields experienced hail late this summer should be monitoring grain for contamination and either avoid feeding contaminated grain to pigs or explore alternative strategies for utilizing this corn in their feeding programs."
It's recommended that suspect fields be harvested as early as possible because molds and toxins worsen as they remain in the field, he said. Normally, there is no increase as grain is stored.
The presence of mycotoxins in corn can have long-term effects, including effects on sell weights of pigs a year or more in the future.
"High levels of mycotoxins in the 2009 corn crop led to longer days on feed, lower gains and poorer feed efficiencies in operations in 2010," Swantek said. "Pigs were held in barns longer because weight gains were slower, and sell weights were 10 to 20 pounds lighter than targeted by producers."
The effects of those lower efficiencies carried over into 2011 albeit in a different way.
"2011 sell weights were higher than 2010 because those having to feed contaminated grain until the 2010 crop reached storage and usage grew accustomed to slower gains and lighter sell weights," Swantek said. "Thus, when the 'clean' 2010 corn was fed, pigs ate more, and grew faster, consequently catching many unprepared and selling hogs much heavier than expected."
Being aware of any contamination in corn or feed stocks now also can help producers better plan for the financial uncertainty of grain markets, he said. Late summer reports of lower yields for the 2011 crop and record low 2010 ending stocks may force grain prices to new highs and mean additional higher pressures on cost of production and lower returns."
A great information source on molds and fungus is available from the Iowa Pork Industry Center website. Written by ISU swine nutrition specialist John Patience and clinician Steve Ensley with ISU's Veterinary Diagnostic and Production Animal Medicine department, "Mycotoxin Contamination of Corn: What it is, what it does to pigs, and what can be done about it" (IPIC12) can be viewed and downloaded at no charge.
Nebraska Ethanol National Open races October 1-2
Ethanol-powered cars & E85 discounts featured during weekend racing events
The Nebraska Ethanol Board is co-sponsoring racing events this weekend at the Kearney Raceway Park in Kearney, including quarter-mile drag races with cars powered by E85.
As part of this weekend’s events, two Bosselman’s Pump & Pantry locations in Kearney will offer an 85 cent per-gallon discount on E85 and a free 32 oz. soft drink with a minimum 10 gallon purchase of E85. This special deal is good only on Sunday, October 2 from noon to 6 pm at the Pump & Pantry at 4311 N 2nd Avenue, and the Pump & Pantry at 1212 E 56th Street.
E85 is a blend of up to 85% ethanol with gasoline and can be used in Flex Fuel Vehicles. Visit the Nebraska Ethanol Board online for a list of E85 stations in Nebraska... http://www.ne-ethanol.org/e85/stations.htm.
Saturday’s events include Test and Tune & NHRA Qualifying starting at 10 am, and Super Shootout & ST/SS Combo races beginning at 3pm.
Sunday’s events begin at 9 am with Time Trials & NHRA qualifying. Eliminations begin at 1 pm.
Starting times for races are subject to change due to weather. Check the Kearney Raceway Park website at www.krpi.com for entry and admission details. Download the flier here for more on the races... http://www.krpi.com/Images/index/Special%20Event%20Flyers/2011%20National%20Open.jpg.
ASA’s 2012 Farm Bill Proposal: "Risk Management for America’s Farmers"
Savings Would Be Used for Agriculture’s Share of Deficit Reduction
The American Soybean Association today released its proposal for the 2012 Farm Bill, "Risk Management for America’s Farmers." "This proposal will help farmers manage the risks they face from adverse weather, crop disease, and volatile commodity markets," stated ASA President Alan Kemper, a soybean producer from Lafayette, Ind. "ASA believes the current farm program safety net can be made more effective, efficient, and defensible by reallocating baseline funding to this revenue-based program that improves risk management and complements crop insurance," Kemper added. Because the proposal would replace current farm programs, this proposal would also result in savings that help agriculture contribute its fair share to deficit reduction.
The "Risk Management for America’s Farmers" program, or "RMAF," would partially protect revenue losses by farmers of soybeans and other program commodities that result from low prices or reduced yields for their crops. The program would establish commodity-specific revenue benchmarks for individual farmers based on historical yields and prices, and compensate them for part of the difference when current-year revenue for a commodity on their farm falls below a percentage of the benchmark. All planted and prevented planted acres would be covered under the plan. The program would complement the existing crop insurance program used by most farmers, which ASA strongly supports and believes should be continued. More details on the plan can be found on ASA’s website at www.soygrowers.com/policy/ASA-RMAF.pdf.
"ASA supports a risk management program that partially offsets shallow revenue losses at the farm level not covered by crop insurance," said ASA Farm Bill Task Force Chairman Rob Joslin, a soybean farmer from Sidney, Ohio. "Farmers told ASA that they want a program that operates off a farm-level revenue loss trigger rather than a state, Crop Reporting District, or even county loss trigger. Farmers told us that the use of a state-level revenue loss trigger in the current Average Crop Revenue Election (ACRE) program was one of the problems they saw in that program that resulted in low participation rates. I want to thank the members of ASA’s Farm Bill Task Force, who were from all soybean growing regions, for their work in listening to their fellow producers and for crafting this risk management proposal," concluded Joslin.
According to Kemper, "Preliminary indications are that RMAF could cost significantly less than the existing ACRE, the Supplemental Revenue Assistance Payments Program, Direct Payment, and Counter-Cyclical programs, resulting in savings that can be used to meet part of agriculture’s share of deficit reduction required by the Budget Control Act." Kemper added that "while ASA strongly supports federal support for on-farm conservation practices, given the cost of these programs, we believe they need to be included in helping to meet agriculture’s share of deficit reduction. Thus, for that for that portion of spending cuts that does not come from other farm bill titles, ASA is suggesting spending reductions should come equally from commodity and conservation programs.
"ASA supports efforts to address our Nation’s debt through a comprehensive and balanced approach to deficit reduction that includes cuts to all areas of Federal spending," said Kemper. "Farmers are willing to do their fair share to contribute to these efforts, but cuts to agricultural spending should not be disproportionate." The ASA President concluded his remarks by emphasizing that "federal crop insurance is the core of agriculture’s safety net, and has already contributed to deficit reduction. ASA will strongly oppose any proposal to further reduce crop insurance funding."
ASA represents all U.S. soybean farmers on domestic and international issues of importance to the soybean industry. ASA’s advocacy efforts are made possible through the voluntary membership in ASA by over 21,000 farmers in 31 states where soybeans are grown.
September Farm Prices Received Index Declines 1 Point
The preliminary All Farm Products Index of Prices Received by Farmers in September, at 183 percent, based on 1990-1992=100, decreased 1 point (0.5 percent) from August. The Crop Index is unchanged but the Livestock Index decreased 7 points (4.4 percent). Producers received higher prices for cattle, strawberries, hay, and grain sorghum and lower prices for broilers, hogs, milk, and corn. 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, apples, and potatoes offset decreased marketings of cattle, wheat, broilers, and grapes.
The preliminary All Farm Products Index is up 40 points (28 percent) from September 2010. The Food Commodities Index, at 169, decreased 4 points (2.3 percent) from last month but increased 28 points (20 percent) from September 2010.
Prices Paid Index Unchanged
The September Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 205 percent of the 1990-1992 average. The index is unchanged from August but 22 points above (12 percent) September 2010. Higher prices in September for complete feeds, supplements, LP gas, and potash & phosphate offset lower prices for concentrates, feeder cattle, feed grains, and feeder pigs.
Prices Received by Farmers
All crops: The September index, at 210, is unchanged from August but 38 percent above September 2010. Index increases for fruits & nuts, feed grains & hay, and upland cotton offset index decreases for oilseeds, food grains, commercial vegetables, and potatoes & dry beans.
Food grains: The September index, at 245, is 1.6 percent below the previous month but 30 percent above a year ago. The September all wheat price, at $7.53 per bushel, is down 8 cents from August but $1.74 above September 2010.
Feed grains & hay: The September index, at 281, is unchanged from last month but 62 percent above a year ago. The corn price, at $6.69 per bushel, is down 19 cents from last month but $2.61 above September 2010. The all hay price, at $176 per ton, is up $4.00 from August and $64.00 higher than last September. Sorghum grain, at $11.70 per cwt, is $1.00 above August and $4.44 above September last year.
Cotton, Upland: The September index, at 157, is up 1.3 percent from August and 28 percent above last year. The September price, at 95.4 cents per pound, is up 1.4 cents from the previous month and 20.7 cents above last September.
Oilseeds: The September index, at 215, is down 10 percent from August but 44 percent higher than September 2010. The soybean price, at $13.10 per bushel, decreased 30 cents from August but is $3.12 above September 2010.
Livestock and products: The September index, at 151, is 4.4 percent below last month but up 13 percent from September 2010. Compared with a year ago, prices are higher for cattle, milk, eggs, hogs, calves, and turkeys. Prices for broilers are lower than last year.
Meat animals: The September index, at 149, is down 2.6 percent from last month but 16 percent higher than last year. The September hog price, at $66.70 per cwt, is down $9.10 from August but $5.70 higher than a year ago. The September beef cattle price of $112 per cwt is up $1.00 from last month and $17.90 higher than September 2010.
Dairy products: The September index, at 160, is down 4.8 percent from a month ago but 18 percent higher than September last year. The September all milk price of $20.90 per cwt is down $1.10 from last month but $3.20 higher than September 2010.
Poultry & eggs: The September index, at 147, is down 8.1 percent from August but unchanged from a year ago. The September market egg price, at 76.9 cents per dozen, decreased 22.2 cents from August but is 32.3 cents above September 2010. The September broiler price, at 44.0 cents per pound, is down 4.0 cents from August and 5.0 cents below a year ago. The September turkey price, at 72.1 cents per pound, is up 1.4 cents from the previous month and 3.1 cents higher than a year earlier.
FSA Reminds Producers of MILC Production Start-Month Change Provisions
Thurston County USDA Farm Service Agency (FSA) Executive Director Josie Waterbury reminds Milk Income Loss Contract (MILC) Program participants that they can change the month of commercially marketed production for which the Commodity Credit Corporation (CCC) will begin issuing payments to their dairy operation.
"Any start-month changes must be made on or before the 14th of the month before the selected MILC production start-month," said Waterbury. "The change must also be made before requesting payment and before the original MILC production start-month has passed," she said.
Changes to the dairy operation production start-month must be designated on FSA’s form CCC-580M, "Milk Income Loss Contract (MILC) Modification."
MILC compensates dairy producers when domestic milk prices fall below a specified level. Eligible dairy producers can apply for program benefits any time through September 30, 2012.
Chicago Fed Reserve to Hold Conference on Rising Farmland Values
On November 15, the Federal Reserve Bank of Chicago will hold a conference to explore the factors contributing to large increases in agricultural land values and cash rental rates in the Midwest.
Farmland values increased 16 percent from a year ago in the first quarter of 2011; 2011 cash rents for farmland increased 16 percent as well. At the conference, experts from academia, industry and policy institutions will present research on the causes of rapid increases in agricultural land values and cash rents, as well as their interrelationship.
The goals of the conference include analyzing demographic and geographical characteristics of Midwest farmland ownership; understanding the dynamics of farmland valuations; assessing the risks facing agriculture and the banking industry from rising farmland values; and discussing policy implications for agricultural lending stemming from current farmland trends.
FSA Decreases Complaints to Lowest-Ever Level
U.S. Department of Agriculture Farm Service Agency Administrator Bruce Nelson announced Wednesday that FSA has significantly reduced the number of civil rights complaints in fiscal year 2010 to the lowest level in the agency's history, while increasing the number of loans and dollar amount obligated to programs dedicated to minority and women farmers for fiscal year 2011.
"The loan numbers reflect the significant progress we have made in the effort to equally serve all eligible applicants for FSA program support," said Nelson. "Under the leadership of President Obama and Secretary Vilsack, the Farm Service Agency is committed to diversity, inclusion and performance like never before, for the benefit of our customers and our employees. At USDA, we understand that the work we do makes a positive impact on the lives of the American people every single day, in so many ways."
Over the last fiscal year, FSA's loan division conducted business with 70,000 borrowers and provided support to 1.9 million producers through its farm programs. Out of the nearly 2 million producers the agency has served, 37 complaints were received — the lowest number filed since the agency began. During the same year, more than 5,650 loans and $509 million in support were obligated to minority and women farmers under FSA's loan programs.
Funding obligated for minority and women farmers has increased in fiscal year 2011 by 9 percent over the same period last year, to $554 million as of September 27, 2011. The largest increase has come in guaranteed farm ownership loans. These loans, which help producers obtain commercial credit to establish or maintain a family farm or ranch, have increased 40 percent to $161.8 million for minority and women farmers.
In addition to improvements in lending practices to minority and women producers, FSA has seen an overall improvement in its loan portfolio. Losses in the direct loan program fell to 1.2 percent, its second lowest level since 1986, while direct loan delinquency has been at historic lows not seen for the past two decades, resting at 5.9 percent. Delinquency rates for fiscal year 2010 under the guaranteed loan program were at 1.69 percent, the second lowest since 1995. Foreclosure rates remain low with just 64 completed in fiscal year 2010. That represents less than one-tenth of one percent of the agency's direct loan caseload.
As a result of this progress, USDA Assistant Secretary for Civil Rights Joe Leonard presented FSA with a "Job Well Done" award in December 2010. The award underscores efforts made by USDA to improve its service after years of litigation alleging unfair treatment to women and minority farmers and ranchers.

