Cash Rents Still Went Up in 13 States This Year

The National Ag Statistics Service said cash rents dropped six percent around the U.S. compared to last year. Cash rental rates hadn’t dropped since 2007. However, an Ag Web Dot Com report said the not-so-good-news was rental rates were very uneven. Rents did drop between six and seven percent in some states, but in others the rates were five percent higher. 13 states saw higher cash rates this year, including Idaho, Utah, Arizona, New Mexico, Wisconsin, Michigan, Ohio, West Virginia, Virginia, Delaware, New Jersey, South Carolina and Mississippi. “It’s important for producers to remember the impacts of the ag economy slowdown and resulting lower farm incomes will vary across the country,” said Purdue Ag Economist David Widmar. He added that national trends are important, but it’s still a key to keep an eye on local conditions too. Changes in pasture rental rates vary significantly as well. Nebraska and South Dakota saw the sharpest declines in pasture rental rates at 16 and 11 percent respectively. Neighboring great plains states saw five to six percent declines, but the eastern Corn Belt rates were sharply higher. 

Farmers Pessimistic About 2017

The Purdue/CME Group Ag Economy Barometer turned lower in October, dropping to an index reading of 92, the lowest reading since last March. That’s also the lowest index since data collection began back in October of 2015. Producers’ expectations of the long-term health of the ag economy dove in October, with the Index of Future Expectations dropping to 95 in October, down from 109 in September and the July peak of 121. Producers responding to the survey are very pessimistic about the ag economy over the next year. 79 percent of respondents expect tough financial times over the next year, an 11-point jump from the September survey. Price expectations for corn and soybean between now and next year are mixed. One-third of producers expect corn prices to exceed $4 per bushel between now and July 2017. 30 percent of respondents expect July 2017 soybean prices to exceed $10 per bushel. However, 27 percent of respondents expect corn prices below $3 per bushel and 25 percent expect soybean prices below $8 per bushel. Producers also plan to make management changes next year because of the economy. 46 percent of respondents plan to lower fertilizer rates and 35 percent plan to adjust trait packages in their seed varieties.

ASA Responds to GMO Article in New York Times

American Soybean Association President Richard Wilkins responded to what he called “the inaccuracies and false conclusions in the article,” written in the New York Times about yield benefits and pesticide use when cultivating GMO’s. He said the article lacks any reference of reduced or eliminated tillage as a result of increased use of GMOs. He said, “GMO technology provides weed control without tilling the soil multiple times.” This fact has allowed farmers to increase use of conservation tillage practices, as well as reduced soil erosion, improved water quality, and reduced greenhouse gas emissions. The article called into question yield and pesticide results between the U.S. and Canada compared to western Europe. Wilkins said, “the author fails to standardize data from France when comparing it to the U.S. because America has nine times the amount of arable land. Also, the author made sensational and false links to Agent Orange and sarin gas.” Wilkins said the article fails to distinguish between even the most basic types of chemicals used. Over the past twenty years, farmers have replaced more toxic herbicides with less toxic options, even when applied at a higher poundage. 

MPP Fix Most Important To National Milk Producers Federation

There’s not an issue more important than getting the Margin Protection Program (MPP) fixed,” says Randy Mooney, National Milk Producers Federation (NMPF) chair. “It’s the right program for dairy farmers but it’s not working.” His comments led off the joint annual meeting between NMPF, Dairy Management Inc. and the United Dairy Industry Association.Experts agree that the original proposal outlined by NMPF and others would have been most effective, but changes by Congress have hindered the ability of the program to work as designed. The question is how to get the right policies set with the new Congress moving forward.To that end NMPF has developed an Economic Policy Committee to create a proposal that will take advantage of the legislative opportunities within the new Congress. The committee, made up of industry economists, will look at changes including regional issues, margin payment structures, timing of payments to producers and other issues to help make MPP a more effective risk management program.“There is a strong desire to get MPP reform done early,” says Paul Bleiberg, senior director of government relations with NMPF. “We don’t know what the playing field is going to look like so we need to be ready for whatever changes happen.” 

USDA Reports All-Milk Price Up 20 Cents Per Hundredweight In September

USDA released its Ag Prices report this week, showing the September all-milk price at $17.30/cwt. That’s up 20¢/cwt from August but also trails year-ago prices by 20¢/cwt.Most states in the Midwest and Northeast were reporting even higher prices, with Minnesota and Wisconsin coming in at $17.90 and New York and Pennsylvania at similar levels. California, however, continued to report the lowest all-milk price, at $15.75, of the 23 states reporting.With lower feed prices, dairy margins are improving as well. USDA reported the September Margin Protection Program margin at $9.48, up more than $1 from the July/August average of $8.43. The September MPP margin was the largest since December 2014, when it was $10.66/cwt.Despite the better milk prices overall, dairy cow replacement values were down about 15% from a year ago. USDA estimates average replacement values at just $1,690/head, down from $1,980 a year ago. 

NCBA and PLC File Opening Brief in WOTUS Legal Battle

 WASHINGTON (November 1, 2016) – The National Cattlemen’s Beef Association and the Public Lands Council, along with other industry and municipal stakeholders, filed the opening brief today in the Sixth Circuit Court of Appeals calling for the Environmental Protection Agency and the Army Corps’ “waters of the United States” rule to be invalidated. Tracy Brunner, NCBA president and Kansas cattle producer said subjectivity and egregious overreach by the agencies is of grave concern for landowners nationwide.“Cattlemen and women have long asked for clarity in the Clean Water Act, yet this rule adds subjectivity,” said Brunner. “By violating fundamental tenets of administrative law and expanding jurisdiction well beyond the text and structure of the Clean Water Act, it is very clear the WOTUS rulemaking was flawed from start.”The opening brief details how the agencies disregarded the statutory and constitutional limits of federal authority, lobbied on their own rule making, and failed to craft a rule that meets the rigors of the law.PLC President Dave Eliason said WOTUS is just one example of the onslaught of regulations that rural America is facing.“Regulatory overreach is becoming the norm for farmers, ranchers and small businesses across the country, hampering economic growth and threatening the stability of many rural communities,” said Eliason. “Unfortunately, because Congress has repeatedly failed to act on this issue, we are fighting the legal battle to keep this rule from being implemented.” 

Federation of State Beef Councils Earmarks $940,000 for New International, National Beef Demand-Building Efforts

Executive Committee Acts Quickly to Address Cattle Market Challenges on Beef Side
 
CENTENNIAL, COLO. (November 2, 2016) – Facing low cattle prices and increasing supplies of beef, and with strong encouragement from its state beef council partners, the Federation of State Beef Councils at the National Cattlemen’s Beef Association will invest nearly $1 million of reserve funds in international and national beef promotions to increase demand for beef.
 
The Federation Executive Committee voted for this additional spending at an NCBA Executive Committee meeting Nov. 1. The $940,000 investment, from Federation reserves, will be spent in the following areas:
 
·         $260,000 to the U.S. Meat Export Federation for a promotion with national retail chains in Japan. The promotion is expected to move an additional 6.9 million pounds of beef;
·         $140,000 to the U.S. Meat Export Federation for regional retail promotion campaigns in Japan. The promotion could move another 2.75 million pounds of beef;
·         $200,000 to the U.S. Meat Export Federation for a Korean beef promotion with national retail and second tier discount chains. The effort is expected to incrementally move about 5.8 million pounds of beef;
·         $40,000 to the U.S. Meat Export Federation for an Asian island promotion targeting a quickly-growing tourist destination which has growth opportunities for beef; and
·         $300,000 to NCBA, for an Ibotta promotion that targets millennials in larger cities and encourages greater beef purchases in retail stores. Ibotta is a smartphone app that shares beef information with consumers, then allows them to obtain cash rebates based on their retail beef purchases.
 
According to Steve Hanson, a beef producer from Elsie, Neb., and chairman of the Federation of State Beef Councils, the Federation Executive Committee moved quickly to approve these additional investments. He said the Federation intends to add a spark to beef demand at a time when producers are feeling a squeeze in their own bottom lines.
 
“Our state beef council partners communicated to national leadership the importance of using every opportunity to use checkoff resources to build demand in the face of cattle market challenges,” Hanson said. “In both the international and national beef markets, our producer leaders identified these new investments as a chance to quickly and directly make a difference in beef demand.”