Farm Bureau Press - July 6, 2012

In Farm Bureau Farm Bill vote disappoints ArFB Arkansas Farm Bureau expressed disappointment in Farm Bill legislation passed by the U.S. Senate, citing a glaring gap for several commodities grown in Arkansas.

“The purpose of the Farm Bill, historically, has been to provide a safety net for farmers and ranchers and help them through difficult times,” said ArFB President Randy Veach. “This version passed by the Senate offers no safety net for much of southern agriculture. Rice, in particular, is left without any programs that help farmers manage their risk. That, alone, makes this legislation unacceptable to us, though it is far from the only issue we find with this Farm Bill. We fear this could destabilize southern agriculture and could affect food prices. Despite our best efforts to get some amendments included that might improve this legislation, we

James Kirkland (dark shirt, left) of Carpenter Produce in Grady hands out samples of fresh watermelon to people visiting the Carpenters’ River Market produce stand in Little Rock.

The Carpenter family has been growing and selling fresh produce more than 40 years and has been a staple at the River Market since it opened. Farmers’ markets are growing in popularity and provide an opportunity for local farmers to build positive relationships with consumers.

were unsuccessful.”

Veach is hopeful the version of the Farm Bill that comes out of House can provide for regional crop differences and price protection for southern crops. “We have great hope that the House Ag Committee, where Rep. Rick Crawford is a member, can craft more workable legislation,” he said. “We will work with all our House delegation, including Reps. Mike Ross, Tim Griffin and Steve Womack, to help ensure a version of a Farm Bill that is more equitable to southern agriculture.”

On June 20, Benton Co. FB board member Tim Crawley hosted a tour and barbecue dinner at his dairy farm in Maysville, Crawley’s Valley View Dairy, for those attending the National Convention of the American Milking Shorthorn Society. This is the first time the convention has been held in Arkansas.

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District Farm Families of the Year The district winners for the 66th Annual Arkansas Farm Family of the Year Program have been selected.

These will be judged to determine a state winner, which will be announced at the Farm Family of the Year luncheon on Dec. 6 at the Wyndham Riverfront Hotel in North Little Rock.

The district winners are: • Keith and Jill Jones of Palestine in the East Central District. The Joneses grow soybeans, rice, corn and grain sorghum on 2,000 acres. They have two daughters, Maggie and Elizabeth.

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A Publication of Arkansas Farm Bureau Federation

July 6, 2012 • Vol. 15, No. 12

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CLARK CO FB photo

Arkadelphia children at Funtime Daycare and the Perritt Summer School learned to milk a cow and other farm activities thanks to Clark Co. FB Women’s Committee members who sponsored a recent visit by ArFB education coordinator Matt Jackson.

Teen Challenge was held at the C.A. Vines 4-H Center at Ferndale June 18-21. During the camp, students tested their skills on the ropes course, the giant’s ladder and the rock wall, along with several other activities. Forty-eight students attended this year’s event.

commercial cows and stocker calves.

They also grow forage and hay on their 430-acre farm. The Carvers have four children, Matthew, Kayleu, Lauren and Aubrey.

• DeSalvo Family of Center Ridge in the Western District. The DeSalvos farm 1,300 acres, with almost 900 acres devoted to wheat silage, sorghum Sudan silage and Bermuda hay. The rest of their farm is devoted to 350 head of commercial cows, 150 head of registered cattle and 30-40 head of registered bulls. They have two children, Benjamin and Isabella.

“Congratulations to each of the great farm families who have been named district winners,” said ArFB

President Randy Veach. “I’d also like to extend congratulations to those families who were recognized as county Farm Families of the Year as well.”

KEITH SUTTON photo

KEITH SUTTON photo

• Tom and Margaret Vanemburg of Desha in the North Central District.

The Vanemburgs grow corn, soybeans and wheat on their 312-acre farm.

They also have 92 head of beef cattle and raise 1,260,000 broilers annually.

They have three children, Kip, Jeff and Aaron.

• Gene and Mary Jo Crouch of Harrisburg in the Northeast District.

The Crouches grow rice, soybeans and wheat on 3,290 acres. They have two children, Gregg and Rhonda, and three grandchildren.

• Scott and Cassie Davis of Prairie Grove in the Northwest District. The Davises have 223 head of dairy cows and grow mixed grass/Bermuda hay, wheat and rye silage, and sorghum silage on 650 acres. They have two daughters, Lily and Ella.

• Jared and Holi Holzhauer of Gillett in the Southeast District. They grow corn, soybeans and rice on 2,017-acre Holzhauer Farms. They have three children, Ethan, Kelsey and Kara.

• Perry and Colleen Watkins of Banks in the Southwest District. The Watkins raise 40,000 breeder hens for the production of broiler hatching eggs. They also have a 20-acre pine plantation. They have one child, Alex.

• David and Miesha Carver of Lockesburg in the West Central District. The Carvers raise chickens,

Pope and Yell Co. students attending MASH camp at St. Mary’s Medical Center in Russellville thought they had walked onto a real accident scene June 28, but it was actually a “MASH crash,” a simulated accident staged by real emergency workers for the students’ benefit.

Craighead Co. FB hosted a pre4th of July barbecue June 29 at the ASU Regional Farmers’ Market in Jonesboro to thank those who support the organization throughout the year. More than 100 attended, enjoying a lunch of ribs, chicken, sandwiches and all the fixings.

Guffey elected AITC president Andy Guffey, ArFB’s Ag in the Classroom coordinator, has been elected president of the National Agriculture in the Classroom organization.

Guffey joined AITC in 2004 as the state contact from Arkansas and was elected to the executive committee as a Southern Region representative Guffey in 2007. He was appointed by other members of the executive committee as treasurer in 2010 and was elected by the membership as presidentelect in 2011. He began his term as president this June at AITC’s annual meeting and will serve a one-year term with an option to be re-elected for a second term.

The National Ag in the Classroom Organization was founded and is run

by AITC state contacts nationwide to further the efforts of ag literacy and promote professional development of its members. Members work with corporate sponsors and the U.S. Agriculture Department to provide program grants and resource

development, and host an annual national conference for teachers, volunteers and program leaders.

Election directory updated ArFB’s election directory has been updated following the primary elections. The directory now includes each party’s official nominees for the general election, including candidates from the Green, Independent and Libertarian parties. The directory can be accessed at http://issuu.com/arfb/ docs/electiondirectory12/31.

In Arkansas

LONOKE CO. FB photo

Fair stays in Little Rock After weighing many options, the Arkansas Livestock Show Commission

Lonoke Co. FB’s $1,000 Gordon R. Brown Scholarship for the 201213 school year was awarded to Megan Davis, daughter of Lonnie Marie Davis of Lonoke. Megan is a senior at Arkansas State University and is pursuing a bachelor’s degree in agriculture business.

has decided to keep the state fair in its current Little Rock location. The Commission has spent the past two years exploring the possibility of relocating the fair to Jacksonville, North Little Rock, Conway or Saline County. While Jacksonville and North Little Rock both came to the commission with land commitments, no city could produce the estimated $120 million in capital needed to replace the facilities. The city of Little Rock put forth a proposal to the Commission that outlined four opportunities for expansion, including a possibility for a dedicated entrance from Interstate 30.

Although the Commission decided to remain at their Roosevelt Road home, no final decision was made about what expansion option most appeals to fair officials. No matter what direction the fair decides to grow, the city has committed to improving the streetscape surrounding the grounds and exploring several opportunities for building improvement. The city also reaffirmed its commitment to providing police services and working on improved visibility for the fair.

New Arkansas Ag Secretary Gov. Mike Beebe recommended, and the Arkansas Agriculture Board has approved, former state legislator and current head of the Department of Rural Services, Butch Calhoun, to replace Dick Bell as Arkansas’ Secretary of Agriculture following Bell’s retirement June 30. Calhoun has served for several years as a member of Arkansas Farm Bureau’s

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The Rohwer Research Station staff is preparing for a Crops Field Day July 19 (see http://aaes.uark. edu/sebranch.html ) that will include a Farm Bill discussion led by ArFB’s Jeffrey Hall.

Pictured (l to r): Randy Cingolani, David Roberts, Ervin Penny, Roosevelt Dye, Kenneth Gamble, Tanya Hughes, Leonard Swopes and Larry Earnest.

Rural Health and Safety Committee and, prior to being elected as a state representative, as Prairie County judge for several terms. He also has farmed rice and soybeans.

In a letter to Gov. Mike Beebe, Bell said he was leaving because he has accomplished the work he set out to do when appointed seven years ago, and due to health reasons.

“Dick Bell has provided steady leadership for the Arkansas Agriculture Department since its inception and through two administrations,” Gov. Beebe said.

“We’ll miss him, and I thank Dick for his service on behalf of all Arkansans, but especially Arkansas farmers and ranchers.”

Elsewhere Game builds math skills A new online game, the first of its kind for pre-kindergarten and kindergarten students, is now available on MyAmericanFarm.org, the popular agricultural gaming site. While playing “In My Barn,” students use math skills to help Farmer Faye care for her animals. As they play the game, students earn points that help them fill a grain storage silo.

“A solid understanding of core subjects such as science and mathematics lays the groundwork for students to grow in their understanding of where food, fiber and renewable fuels come from,” said Dan Durheim, executive director of the American Farm Bureau Foundation for Agriculture.

Editor Keith Sutton keith.sutton@arfb.com

In the Market As of July 3, 2012:

 SOYBEAN stocks and planted acreage released on June 29 by USDA were both considered negative. Soybean plantings were 76.08 million acres, or 2.18 million acres above March intentions, and 500,000 acres above the average pre-report estimate. Stocks at 667 million bushels were 27 million bushels above the average estimate. Typically that would have triggered a flurry of downward movement. However, the market simply blinked and quickly extended the up move that began four weeks earlier. Limited rain across the Midwest, coupled with high temperatures, has brought early comparisons to the drought year of 1988. The latest crop progress report saw the good to excellent category decline 8 percent to just 45 percent. That compares to 66 percent a year ago. Some early yield forecasts are down to 40 bushels per acre, which would yield a crop of barely 3 billion bushels and suggest price will have to ration supplies. November has topped $14.50 and $15.00 seems just a step away. Higher may be possible.  CORN has led the recent drive higher.

Almost half the 96.4 million acres, as reported by USDA, is in or near pollination. High temperatures at this stage, coupled with the extremely dry conditions, don’t bode well for yields. A significant downward adjustment from the current 166 bushels per acre in next week’s supply/demand report won’t be a surprise. A 14.78 billion bushel crop could be headed significantly lower. A 5 percent cut, or just over eight bushels per acre, would put the crop at 14.04 billion bushels. A 10 percent cut, or almost 17 bushels per acre, would put the crop at 13.3 billion bushels. Price would have to ration use to keep stocks at a billion bushels. December, as this is written, is testing the contract high just above $6.73; $7.00 isn’t far away. And, while higher appears possible, even probable, this is an excellent pricing opportunity.  WHEAT is riding the corn market wave, with a reduced world production kicker. The International Grains Council

made significant downward adjustments in production estimates for Black Sea area countries, Russia and Ukraine. Their world estimate of 665 mmt is well below the USDA June estimate of 672 mmt. A smaller U.S. winter wheat acreage was revealed in last week’s report. Technically, September futures have little resistance until around $8.30 on long-term charts. That is about 50 cents above today’s trade and appears a real possibility if dry conditions persist and corn continues higher. The market is quickly approaching overbought as measured by the relative strength index (RSI), which is around 72.  USDA put 2012 RICE plantings at 2.661 million acres, down 28,000 acres from 2011, but 100,000 acres above March intentions. Ninety thousand of those acres were in Arkansas, and 80,000 were long grain. Small declines in other states left long grain at 1.94 million acres, or 76,000 acres above March intentions. That will add about 5 million cwt. to the long grain production estimate, bringing it to 132.5 or slightly higher. The increase in the U.S. medium grain acreage will likely add 2.5 million cwt. bringing it to 58 million cwt., so look for a production estimate of 190 million cwt. or slightly more. Immediate reaction to the report was negative as funds bailed out of positions. At worse, stocks will be about the same as last year and still fairly tight. For now, September futures seem destined to remain in the $14.00 to $15.25 trading range. Longer term, the wider trading range that extends to $16.20 on the top could come into play.  COTTON received a positive report with just 12.6 million acres planted in 2012. That is down 14 percent from 2011 and 4 percent lower than the March intentions. The key will be how much is abandoned. Conditions have improved in Texas from 2011, but soil moisture remains limited. The Texas Cotton Crop Condition Index was 62 in late June or in line with the 2009 crop when 30 percent of the planted acreage was abandoned. This year that would be about 2 million acres. U.S. production could be real close to the current projection of 17 million bales. December futures found some support near 68 cents, but would have to close above 75 cents to suggest

further upside potential. Huge world stocks will limit higher movement.  POULTRY. Shell egg demand rose following last week’s good retail activity, but advertisements are few going into the current ad cycle, and the rally may be over. Wholesale large shell egg prices remain steady for moderate supplies and offerings and slow trading. Breaking stock prices are steady for light offerings and light to moderate supplies; market activity is slow. The preliminary sample of supermarket featuring into next week indicates a sharp drop with very few retailers offering sales on shell eggs into the next week. The average ad price level is unchanged. No price incentives are more prevalent as grocers shift their attention to this marketing method in lieu of price deals. Current days of shell eggs on hand for marketing is 4.56 days with a 26-week average of 4.71 days.  CATTLE Higher corn values are pressuring feeder futures, which appear to have topped for the near-term. Heavier slaughter weights are impacting the market, and hot weather is expected to curtail demand now that the holiday rush is over. Hot weather is also limiting movement and could create a temporary backlog of supplies. December futures, however, are benefiting from indications that the cattle herd is shrinking.

December is now in a position to retest resistance between $129-$130.  HOG The composite pork cutout has dropped nearly $10 since June 25. This is clearly impacting packer operating margins. Average weights are dropping due to the heat, and marketings have slowed, but it is likely this drop in prices combined with the heat is creating a backlog of market-ready hogs. Deferred contracts are finding some support from concerns that high corn values will keep producers from expanding production. On the futures chart, August has completed a 62 percent retracement of the spring selloff, but will likely find it tough to break through resistance at the spike high of $96.32 ½ given current fundamentals.

CONTACT • Gene Martin 501-228-1330, gene.martin@arfb.com.