Farm Bureau Press - September 11, 2015

In Farm Bureau ArFB applauds judge’s ruling Arkansas Farm Bureau President Randy Veach said an Aug. 27 preliminary injunction to block implementation of the Environmental Protection Agency’s Waters of the U.S. (WOTUS) rule to regulate water on private property was a breath of fresh air in a debate that has been heated and frustrating.

U.S. District Judge Ralph Erickson of North Dakota ruled that EPA’s plan to greatly expand its regulatory authority over water was inappropriate. “It appears likely that the EPA has violated its Congressional grant of authority in its promulgation of the rule,” he said as part of the ruling.

Judge Erickson said the rule suffered from a “fatal defect” of allowing regulation of ditches and streams that were not connected to navigable waters.

“The judge clearly made the right call,” said Veach. “I’ve never met the man, but I want to shake his hand. He obviously sees the world with clear eyes and that should be applauded.

These Garland Co. FB Women’s Committee members and student advisors raised more than $500 Aug. 29 in Hot Springs for the Loca Bonita Horse Ranch. Loca Bonita’s mission is “to facilitate an opportunity for children, families and horses of all ages to come together, free of charge, for the help, healing and restoration of each other, through the love of Christ.” John and Sonja McCaleb own the ranch, which serves 500 visitors a year.

“This has not been a debate about how water should be regulated. It has been an effort to see just how far the U.S. citizens would allow a government agency to get into their business. Hopefully, this injunction is the first step toward total dismissal of EPA’s efforts to supersede local and state authority.”

Arkansas will be among 13 states excluded, at least temporarily, from implementation of the WOTUS rule. Additional Trio’s chef Capi Peck (right) and Shanna Merriweather prepared popped caramel sorghum with peanuts and bacon at the Aug. 26 sorghum promotion dinner sponsored by Trio’s and the Ark. Corn and Grain Sorghum Board. Several food bloggers attended to learn about sorghum uses and production from farmers like Trent Dabbs, Jon Carroll, Mike Richardson and Tommy Young.

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states included are Alaska, Arizona, Colorado, Idaho, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota and Wyoming.

In Arkansas Arkansas schools win grants Three Arkansas school districts received a total of $60,000 in grants this year from America’s Farmers Grow Rural Education,

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A Publication of Arkansas Farm Bureau Federation

September 11, 2015 • Vol. 18, No. 17

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Lonoke Co. FB President Robby Bevis (right) recently presented Sissy Fletcher of Lonoke Public Schools a $2,000 donation for the school’s Backpack Program, which supplies food to children in need. The England and Carlisle school districts received $2,000 donations as well. The project was a joint effort of the county Women’s Committee and YF&R Committee.

January. For more information, visit www.GrowRuralEducation.com.

Food-processing workshops How to start a food-processing business will be explained during workshops in three Arkansas cities in October. The sessions are being presented by the Arkansas Food Innovation Center (AFIC), which assists entrepreneurs with processing value-added food products.

Personnel from AFIC, a unit of the University of Arkansas System Division of

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sponsored by the Monsanto Fund.

The program partners with farmers to keep rural schools growing by supporting math and science education.

Westside School District in Craighead County received a $25,000 grant for “Project Barn Raising.” Batesville School District in Independence County was awarded a $25,000 grant for a project titled “SoilLess Gardening: The Wave of the Future.”

A $10,000 grant went to Bald Knob School District in White County for “Experiencing Science Through Engineering.”

Since 2011, Grow Rural Education has awarded more than $9 million to support math and science education in rural school districts across the country. “Funding for science, technology, engineering and math education can be challenging for rural school districts,” said Michelle Insco, Monsanto Fund program officer. “Grow Rural Education is helping enhance opportunities for rural students by supporting critical math and science initiatives required for successful careers in agriculture and other industries.”

This year school districts also received an educational starter kit from Monsanto to help establish a pollinator garden, which will give students first-hand knowledge of the critical role habitat plays in providing bees and butterflies with food, shelter and places to lay eggs.

Farmer nominations for the 2016 program will be accepted beginning in early

Tommy Sorrells, (standing) Garland Co. FB president, led discussion of county and state issues during the county’s policy development meeting Sept. 1 at Lake Hamilton High School.

In addition to members of the county board, the meeting included local school administrators, state police and state Farm Bureau staff.

ArFB sponsored Foodie Friday at the Arkansas Women Bloggers Conference Aug. 28 in Hot Springs. One of the day’s main events was a Women in Agriculture panel featuring (left to right) Lori Dabbs of Arkansas County, Susan Anglin of Benton County and Donette Spann with Ark Beef Council.

The ladies answered questions about the roles of women in agriculture.

Kathy (left) and Ronald (second from right) Cavenaugh of Walnut Ridge, Lawrence County’s Farm Family of the Year, were honored at the Lawrence Co. FB annual meeting Aug. 31 in Walnut Ridge. State Sen. Blake Johnson (second from left) and State Rep. James Ratliff presented the Cavenaughs with recognition citations from the Arkansas Senate and House.

Agriculture, will explain the fundamentals of starting a food-processing business and will show participants the process of taking a food product from concept to the commercial market.

The workshops will be held from 9 a.m. to 3 p.m. at these dates and places: Oct. 6 in Little Rock at the Cooperative Extension Service state office at 2301 S. University Ave.; Oct. 7 in Pine Bluff at the S.J. Walker 1890 Extension Complex at the University of Arkansas at Pine Bluff, 1200 N. University Drive; and Oct. 8 in Forrest City at the Forrest City Civic Center, 1335 N. Washington St. The agenda for the sessions will include information about food-processing facilities, business plans, marketing, food preservation, food additives and ingredients, food processing equipment, packaging and labels, regulations and liability. Registration is required and limited to 50 people per site. The workshop is free and includes lunch. To register, complete forms available at http://afic.uark.edu/training.html in the section labeled “Starting a Food Processing Business Workshops.”

September is Rice Month Rice Month in Arkansas just hit its 25th birthday. To celebrate, the Arkansas Rice Council will hold events throughout the month to help promote the top rice-producing state and support local agriculture. The rice industry also will donate more than 100,000 pounds of rice to the

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Preparing for avian influenza In preparation for the possible re-emergence of highly pathogenic avian influenza (HPAI) in Arkansas as wild birds begin to migrate south from Canada, the Arkansas Livestock & Poultry Commission and its industry partners have identified “Minimum Biosecurity Standards for Arkansas Poultry Growers.” These standards have been distributed to each county Farm Bureau office and also are available on the commission’s

USDA Foreign Agriculture Service attachés representing 24 embassies learned about Arkansas aquaculture from ArFB board member Mike Freeze (back right) at Keo Fish Farm Sept. 2. The attachés visited several farms and businesses during the tour hosted by the Arkansas Agriculture Department, including Tyson Foods, Brantley Farms and a Mulberry edamame-processing plant.

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Arkansas Rice Depot to help feed hungry Arkansans.

Students have an opportunity to participate thanks to a new partnership with the Department of Education. Those enrolled in Future Farmers of America or Family and Consumer Sciences classes are eligible to win $500 toward their national convention by participating in the “30 tweets for #ArkansasRiceMonth” contest. Contest details, as well as a list of tweets, are available by visiting www.arkansasricemonth.com. All Arkansans can participate in the Twitter contest for a chance to win $500.

“Young people are vital to the rice industry,” said Steve Orlicek, Arkansas Rice Council President. “They are our future growers and consumers with the capacity to communicate and advocate for rice in a way that cannot be overlooked.”

Rich Hillman of Carlisle, vice president of Arkansas Farm Bureau, was the guest speaker Aug. 26 at Van Buren Co. FB’s annual meeting at Clinton High School.

Hillman thanked local members and leaders for helping make ArFB a strong grassroots organization and updated them on ArFB’s efforts to resolve agricultural issues such as the EPA’s Waters of the U.S. rule. website, http://alpc.arkansas.gov.

Biosecurity is the poultry industry’s first line of defense to all avian diseases, including HPAI. Rigorous implementation of biosecurity principles will be essential to preventing disease introduction into Arkansas and will be even more important if Arkansas has an outbreak of HPAI. The Arkansas Livestock & Poultry Commission has worked closely with the poultry industry to ensure these practices are applicable to a wide variety of production operations and to serve as a list of recommendations to farmers and associated personnel.

Arkansas Farm Bureau is working closely with The Poultry Federation and Arkansas Livestock & Poultry Commission to keep our producer-members informed as to confirmed cases of HPAI. Although poultry companies will more than likely contact growers first about any possible outbreak, Arkansas Farm Bureau felt it necessary to inform poultry growers as well.

Poultry growers who would like to receive updates on avian influenza can text the keyword ARFBAI to 88202 to be added to the text message group. Arkansas Farm Bureau will by no means be in front of The Poultry Federation or Arkansas Livestock & Poultry Commission on the issue, but wanted to be another outlet for information.

Elsewhere Rice Foundation accepting applications The Rice Foundation is accepting applications for the 2016 Rice Leadership Development Program. Rice producers or industry-related professionals between the ages of 25 and 45 are eligible to apply by the Oct. 3 deadline.

The Rice Leadership Development Program provides a comprehensive understanding of the rice industry, with an emphasis on personal development and communication skills. During a two-year period, class members attend four one-week sessions designed to strengthen leadership skills through studies of all aspects of the rice industry.

The class is comprised of five rice producers and two industry-related professionals chosen by a committee of agribusiness leaders. The committee evaluates the applications of all candidates, reviews letters of recommendation and conducts personal interviews with the finalists. Interviews will be conducted at the USA Rice Outlook Conference in New Orleans in December. For additional information and an application form, visit www.usarice.com and click the “Read More” button on the sliding panel featuring the leadership program applications.

Editor Keith Sutton

keith.sutton@arfb.com

Next Marketing Year Export Sales as of Aug. 27

In the Market As of Sept. 11, 2015 September report will provide little closure for markets Commodity prices remain depressed in the days leading up to the release of the USDA September Supply and Demand Report. While there are likely to be some minor adjustments to production numbers, they are unlikely to be large enough to significantly reduce ending supplies for next year. In addition to larger-than-expected supplies, concerns regarding demand also will weigh on prices as weak export demand is overshadowing a healthy domestic demand for most commodities. The current slow export pace combined with the slowdown in China and a looming rate hike by the Federal Reserve expected this fall has made it difficult to bring the bulls back to the commodity markets.

Corn and Soybeans In the August Supply and Demand Report, the USDA shocked the market by forecasting strong yields and large supplies for corn and soybeans. The question now is, will the USDA make significant supply adjustments this month? Leading up to the report there is a wide range of trade expectations.

While expectations are for the USDA to lower yields in the report, there remains some concern that yields may increase. While the expected marginal declines in production will have a minimal impact on prices, it will still be supportive. On the other hand, if supplies increase this would likely push prices to new lows.

While the production estimates remain a wild card for all commodity

Soybeans Corn

Million MT (MMT)

2015/16 13.451 2014/15 21.674 2013/14 20.550 2012/13 18.080 2011/12 11.599 2010/11 15.315

6.968 10.475 11.575 8.150 9.690 10.616

markets, so does the demand picture.

Historically, by this time of year corn and soybeans would have significant sales on the books for the next year.

However, current sales are lagging well behind year-ago levels.

Soybeans and corn are measured on a September to August marketing year, and in the last Export Sales report, the USDA reported corn sales for next year were 3.13 MMT behind the five-year average of 10.10 million MMT, and soybeans were 4 MMT behind their five-year average of 17.45 MMT. Slow sales in these markets remain worrisome for the market as Argentina and Brazil are forecast to have a record 1.9 billion bushels in soybean stocks this fall, Total Commitments as of Aug. 27

Rice Cotton

MT R. Bales 2015/16 895,905 2,708,988 2014/15 669,940 5,047,280 2013/14 405,762 3,542,044 2012/13 508,299 4,441,058 2011/12 700,065 6,416,027 2010/11 837,425 6,754,645

which is 500 million more than their five-year average. The market will be closely watching to see if South American supplies continue to compete this fall.

Rice and Cotton Rice and cotton prices both fared fairly well following last month’s

USDA report. Both markets saw prices continue to move higher in the days following the report, and at the time of this writing, they are still above pre-report price levels. Rice prices continue to show strength despite large U.S. supplies and will need exports to remain strong in order to hold recent gains. Cotton, on the other hand, remains under pressure from the turmoil in the Chinese market. China is the largest user of U.S. and world cotton. A slowdown in this market combined with cheap oil prices will keep cotton prices depressed. The Export Sales data for each of these markets showcases the challenges and advantages in each market.

Rice and cotton are measured on an August to July marketing year, and in the last Export Sales report, total commitments for cotton trailed previous years while rice sales were beating all previous years. Total commitments are the sum of year-todate exports and outstanding sales.

This year, cotton commitments trail the five-year average by more than 2.5 million running bales, while rice commitments are 271,607 MT ahead of the five-year average. Both these numbers are in line with the current USDA forecast of a 6 million cwt increase in rice exports and a 1.2 million bale decline in cotton exports.

While these numbers look good now, it is early in the marketing year, and sales will need to continue for both commodities to keep these forecasts at current levels.

CONTACT • Matt King 501-228-1297, matt.king@arfb.com.