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Agriculture • Drought forces farmers to sell livestock; feed is too costl
Drought forces farmers to sell livestock; feed is too costly
By Judy Keen, USA TODAY
CHICAGO – Some farmers are selling off their livestock herds because they can’t afford to buy feed, marking a new level of fallout from the drought that will affect consumers and possibly the entire U.S. economy.
The cost of meat at the grocery likely will drop as farmers liquidate cattle and pigs in the next few weeks, but higher pork prices and even shortages could follow in "as soon as six months," says Mike Platt, executive director of the Indiana Pork Producers.
"We’re going to see a very tight market" for beef "around the Christmas holidays and into January," says Joe Moore, executive vice president of the Indiana Beef Cattle Association.
When that happens, small meatpacking plants might be forced to reduce shifts or lay off workers just as consumers tighten their budgets after a summer of high air-conditioning bills, says Chris Lehner, a Kansas City, Mo., commodities broker.
"We could see it affecting the whole economy," he says.
The U.S. Department of Agriculture says the nation’s cattle herd numbered 97.8 million as of July 1 — the lowest inventory since it began the count in 1973.
The drought, which now affects almost 63% of the contiguous USA, has seared crops and sent corn prices to record highs this week. Soybean prices rose more than 20% in the past few weeks.
A coalition of meat and poultry organizations, including the National Cattlemen’s Beef Association, this week asked the Environmental Protection Agency to temporarily waive a federal mandate requiring petroleum blenders to use corn-based ethanol in gasoline. The groups say the move would free up more corn for feed.
When the price of feed is too high to ensure profits later when animals are sold, farmers cull their herds. Platt says some farmers in Indiana, which is among the hardest-hit drought states, are giving away piglets to avoid having to pay high feed prices during the six months it takes for them to grow large enough to be slaughtered.
Moore says some farmers who sell their cattle now might be forced out of business, because it takes 2-3 years to breed and raise cattle for the market. "I’m sure some people are liquidating and they’ll be done," he says.
Will Spargo, who raises corn and soybeans on a 3,300-acre farm in Naylor, Mo., says he’s keeping his crops alive — but at a high price. He irrigates his corn every three days, up from once a week in a normal year, and has had to shut down pumping from some streams because they ran dry. Seed and fertilizer costs were "up tremendously" this year, he says.
"It’s not going to be a banner year by any means," Spargo says.
http://www.usatoday.com/weather/drought … 56716506/1
Statistics: Posted by yoda — Fri Aug 03, 2012 12:14 am
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Agriculture • EPA withdraws proposed livestock reporting rule
EPA withdraws proposed livestock reporting rule
NCBA | Updated: July 16, 2012
Late Friday afternoon, July 13, 2012, the Environmental Protection Agency (EPA) withdrew its proposed Clean Water Act (CWA) Section 308 CAFO (Concentrated Animal Feeding Operations) Reporting Rule. The rule sparked controversy within the agricultural community due to what was referred to as a serious overreach of EPA’s authority. The National Cattlemen’s Beef Association’s (NCBA) primary concern was the likelihood the proposed rule could put the nation’s food system at risk of increased terrorist attacks. NCBA President J.D. Alexander said this move by EPA is a victory for cattlemen and women and illustrates the importance of the beef cattle community working together to educate government officials.
“Early on, we called for EPA to pull this rule. It turns out they listened. This really showcases the importance of cattlemen and women becoming engaged in the regulatory process and making sure their concerns are heard,” said Alexander. “We encourage the agency to redirect its focus to working with states and other partners to attain already publicly available information that would allow them to work toward their goal of improved water quality. This can be done in a way that does not put our food system at increased risk.”
The proposed rule required all cattle operations meeting the regulatory definition of a CAFO to report a long list of information about their operations to EPA, including latitude and longitude (or street address) of the production area, acres available for land application of manure, type and number of head and contact information for the owner or authorized representative. EPA stated it would place this information on the agency’s website in an easily searchable database, where NCBA feared extremists could access the information with the intent to do harm to cattle operations or the nation’s food system. Any non-compliance with the proposed rule would have been a violation of the CWA, which would have resulted in fines of up to $37,500 per day.
Alexander said NCBA worked with EPA to convey the privacy concerns on behalf of cattlemen and women. On Feb. 3, 2012, NCBA invited EPA to attend its annual convention in Nashville, Tenn., to discuss the proposed rule face-to-face with the beef cattle community. Ellen Gilinsky represented EPA at NCBA’s convention, where she acknowledged the industry’s biosecurity and privacy concerns. Alexander said cattlemen speaking directly with EPA officials makes a lot of difference.
“EPA resides in Washington, D.C., and seldom gets the opportunity to hear directly from the providers of food for this country,” said Alexander. “It is paramount that we continue being engaged in the regulatory process. They need to hear from us. We must not take this lightly. This recent announcement by EPA proves that we can make a difference.”
http://www.cattlenetwork.com/cattle-new … 04796.html
Statistics: Posted by yoda — Mon Jul 16, 2012 11:20 am
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Agriculture • Livestock futures suffer from lower cash prices
Livestock futures suffer from lower cash prices
Doane Agricultural Services | Updated: July 13, 2012
Corn futures are trading mixed but mostly higher at midsession. Corn prices are slipping from early morning highs on end of the week profit taking. Weather forecasts calling for prolonged periods of hot dry conditions and minimal rainfall across the Corn Belt will continue to prop up the market. Due to recent weeks of excessive heat, new crop corn (along with soybeans) condition ratings have quickly deteriorated leading to USDA yield reduction. USDA slashed its yield projections more than expected to 146 bushels/acre, 20 bushels lower than the previous month’s estimate, increasing traders fears that new crop corn will be in short supply.
Soybean futures are trading 5 to 23 cents higher at midsession. Reported export sales of 150,200 metrics tonnes of soybeans to undisclosed locations for 2011/12 and 2012/13 marketing years are lifting old and new crop prices. Mounting concerns over tightening global supply due to USDA yield reductions are currently supporting the market as well. Weather remains a bullish factor as drought conditions across the Midwest worsen with forecasts predicting minimal rain over the region for the next 7 to 10 days.
Wheat futures are trading 4 to 12 cents higher at midsession. Wheat futures are feeling slight pressure as corn prices are turning lower. Weather worries in the corn market coupled with a dim outlook for the Black Sea Region wheat crop should undergird prices. The Midwest is currently experiencing the worst drought in over 20 years traders say and has the potential push prices to record levels if yields continue to fall. As corn prices rise, the demand for wheat as an alternative feed input will increase, thus pushing wheat futures higher.
Cattle futures are trading mixed but mostly lower at midsession. Declining demand for beef and lower beef prices continue to hurt cattle futures despite strength in the corn market. Thursday’s boxed beef prices closed down $1.78 for choice while select cuts were 24 cents lower. Cash trade was reported as light to moderate on Thursday with dressed prices in the South $2.00 lower and almost $5.00 lower in the North.
Lean hog futures are trading sharply lower at midsession. The front month July contract was trading slightly higher at the opening of pit trade due to its discount to cash prices but has now turned lower following the direction of deferred contracts. Market prices are trending lower due to lower cash prices and eroding pork cutout values. USDA reported average cash prices on Thursday down approximately $2.50 per cwt. Cash trade is expected to be steady to lower on Friday.
http://www.cattlenetwork.com/cattle-new … 62646.html
Statistics: Posted by yoda — Fri Jul 13, 2012 10:47 am
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Agriculture • Fears for US dryness spread to livestock industry
Fears for US dryness spread to livestock industry
Concerns about the impact of US dryness on crops have spread to livestock, with a warning that, with pasture conditions deteriorating, there is "plenty of room for worry" among cattle ranchers.
One of the major drivers in Chicago feeder cattle futures to record a high, on a spot lot basis, close to 160 cents a pound has been the switch to buying by southern US ranchers, who last year sold-down herds as a long-running drought dried up paddocks.
The proportion of Texas pasture rated "good" or "excellent" by the US Department of Agriculture stood at 27% as of Sunday, up from 9% in early June last year, and in Oklahoma at 50%, compared with 29% a year before.
Ranchers’ increasing willingness to rebuild herds is also evident in a reduced slaughter rate, which fell 16.5% last month, with a particular drop in beef cow liquidation in the south, a sign of producers keeping hold of breeding stock.
Nationwide decline
However, the improvement in southern grass condition, even to relatively weak levels in Texas, has not been mirrored elsewhere, with pastures nationwide rated 47% in good or excellent health, down from 53% a year before.
Missouri now shows as one of the states with the worst pasture condition, of 28%, compared with 64% a year ago.
"Pasture conditions are worse than a year ago and the 10-year average despite a significant improvement in the situation in Texas and Oklahoma," a report by Paragon Economics and Steiner Consulting said.
"The dividends of a warm winter and improved moisture conditions have largely been had," the briefing said, adding that the question now was whether dryness would force a revival in cow slaughter rates.
"Some early indications show that despite improvements in areas hit by drought last year, there is plenty of room for worry."
Drought conditions
The comments come amid broader concerns over dryness in the Midwest which have led many analysts to question US Department of Agriculture forecasts for a record corn yield, of 166 bushels per acre, although USDA chief economist Joseph Glauber on Thursday urged caution over reduced estimates.
Official data on Tuesday rated more than half the Midwest as suffering abormally dry or drought conditions, compared with 1.2% a year before, besides 71% of the High Plains, up from 21%.
"A number of areas in the Midwest have experienced below-normal precipitation in the last month, negatively affecting pastures," Paragon and Steiner said.
In the South 85% was still unusually dry, although the severity of the moisture shortages were generally lower than a year before.
"If current conditions continue, then we will likely see more pressure around the country. Herd rebuilding will have to wait for another year."
http://www.agrimoney.com/news/fears-for … -4615.html
Statistics: Posted by yoda — Mon Jun 11, 2012 5:39 am
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