Farm Bureau Press - September 28, 2012

In Farm Bureau Website, blog win awards Arkansas Farm Bureau’s revamped website, along with its food blog, “Taste Arkansas,” earned national recognition from the prestigious Web Marketing Association.

ARFB.com took home the Outstanding Website award in the Food Industry category, and TasteArkansas.com won a Standard of Excellence Award.

ArFB partnered with Aristotle Inc. in Little Rock to produce the awardwinning sites.

The website has had more than 1.5 million page views during the past year, while “Taste Arkansas” works to ensure that consumers understand the role farmers and ranchers play in our food production system.

Visit www.arfb.com and www. tastearkansas.com to see why the judges were so impressed.

On Sept. 18, 3to 5-year-olds at Little Bitty City Daycare in Hot Springs enjoyed a program about foods from the farm (“Reddy the Farm Truck”) developed and presented by Sara Beth Waller (left) and Sara Loe with Garland County Farm Bureau.

ArFB hosts poultry team ArFB and the U.S. Grains Council recently hosted an eightperson team of Colombian poultry producers. The program was brought about by the recent passage of the U.S.-Colombia Free-Trade Agreement and a desire to develop closer ties with Colombian grain importers.

ArFB intends to send a follow-up delegation of producers to Colombia this fall. Colombia imports more than 236 million bushels of corn, barley, sorghum, wheat and soybean South Logan Co. FB President Joe Bob Staton (right) addressed attendees at the group’s 50th annual meeting. The group passed policy recommendations, confirmed new board members and recognized efforts of the Women’s Committee.

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www.arfb.com

meal annually.

Until 2008, Colombia was the fifth-largest market for U.S. coarse grains. However, prior to the U.S.Colombia FTA, U.S. market share for coarse grains had fallen from more than 80 percent to less than 20 percent. With the passage of the Colombia–U.S. FTA, ArFB and the U.S. Grains Council are looking forward to regaining U.S. market share by working closely with the Colombian poultry industry and promoting U.S.-origin grains.

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A Publication of Arkansas Farm Bureau Federation

September 28, 2012 • Vol. 15, No. 18

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Izard Co. FB recognized several local students for their outstanding 4-H garden projects at the organization’s annual meeting Sept. 6 at Izard County HS in Brockwell. said. “It can go from frosted tips to nothing in two days.”

Fall armyworms are being reported in Baxter, Benton, Faulkner, Independence, Prairie and Pulaski counties and throughout southwest Arkansas.

To learn more about managing armyworms, read “Managing Armyworms in Pastures and Hayfields,” available through your county extension office or at www. uaex.edu/Other_Areas/publications/ PDF/FSA-7083.pdf.

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Armyworms devouring pastures With the recent spate of cooler temperatures and rain, once dry bermudagrass came out and grew.

So much so that “people went to mowing yards and baling hay,” said Brent Griffin, Prairie County Extension Staff chair for UofA’s Division of Agriculture. The next day, some people found no lawn or pasture.

The suspect? Fall armyworms.

These tiny larvae may have been feeding for days before the damage became evident.

Because fall armyworms work so fast, extension experts recommend scouting to catch the larvae while they are still small.

Clues include flocks of birds feeding in the field, seeking out the armyworms for food, or fields that look “frosted,” caused by the newly hatched caterpillars chewing only the green underside of the leaves or the grass blade tips.

“If they see any damage or windowpaning, people should scout their fields or lawns,” Jennings

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In Arkansas

Dr. B.E. Holmes of Lonoke (right) was recognized at a special ceremony Sept. 5, receiving a plaque from former Lonoke Co. FB agency manager Robert Millard for his work establishing a fund to help students participate in the M*A*S*H program for his dedication to improving the quality of health care for local citizens.

Steve Stevens (right) of Tillar described research being conducted on his Desha Co. cotton farm to representatives from Arkansas, Louisiana, Minnesota, Missouri, North Dakota, Tennessee and Wisconsin attending a three-day Discovery Farms tour earlier this month.

Desha Co. FB President Leon Chapman (left) welcomed ArFB Executive Vice President Ewell Welch as guest speaker at the county’s annual meeting in Dumas Sept. 18.

Elsewhere USA Rice responds to article The rice industry responded promptly and forcefully to a Consumer Reports article published Sept. 19 that urged consumers to reduce rice consumption due to “worrisome” amounts of arsenic in rice products. Through a strong social media presence, interaction with consumers, a teleconference with key media members and interviews with major television news shows, the USA Rice Federation reinforced a U.S. Food and Drug Administration statement that rice is safe, and consumers do not have to change their rice consumption.

In a written statement to the media, USA Rice corrected the misleading data in the article, including: • An allegation that “... the Environmental Protection Agency assumes there is actually no ‘safe’ level of exposure to inorganic arsenic.” Scientists broadly, and the EPA in particular, do not accept the argument that “there is no safe level of arsenic.” EPA expressly considers arsenic levels in drinking water below 10 parts per billion to be “generally safe.” The arsenic content in drinking water is predominantly of the inorganic variety, while in foods, it’s a mix.

• After acknowledging the EPA’s 10 ppb drinking water standard,

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the article promptly discards it, and applies one twice as strict — 5 ppb — to rice. So Consumer Reports is comparing levels of arsenic in rice to a standard that does not exist.

• The article fails to mention the fact that no adverse health effects have been directly linked to rice consumption. The FDA stated in its Q&A document that “ there is an absence of the necessary scientific data that shows a causal relationship between those who consume higher levels of rice and rice products and the type of illnesses usually associated with arsenic.”

USA Rice has set up a website, http://arsenicfacts.usarice.com/, with detailed information about arsenic in food, including statements by scientific spokespersons and links to FDA information that support consumption of rice and rice products.

Student volunteers from South Side Bee Branch HS’s Family, Career and Community Leaders organization assisted Van Buren Co. FB Women’s Committee members at a Farmer-for-the-Day event Sept. 13-14. More than 600 K-3 students attended.

Capital gains taxes apply when land and buildings from a farm or ranch are transferred to a new or expanding farmer while the owner is still alive. This occurs most often when a farmer wants to expand his or her farm or ranch to take in a son or daughter, or when a retiring farmer sells his or her business to a beginning farmer.

“Because approximately 40 percent of farmland is owned by individuals age 65 or older, capital gains taxes provide an additional barrier to entry for young farmers and ranchers at a time when it is already difficult for them to get in to the industry,” said the AFBF statement. “Capital gains tax liabilities encourage farmers to

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AFBF urges change in tax law On Sept. 20, the American Farm Bureau Federation urged Congress to reform the capital gains tax because of the law’s detriment to young and beginning farmers. In a statement submitted to the House Ways and Means and Senate Finance Committees’ joint hearing on tax reform, AFBF said the cumbersome tax makes it difficult for current farmers to pass the torch to a new generation.

Garland Co. FB members met at Lake Hamilton High School Sept.

4 for a policy development meeting. President Tommy Sorrells of Royal presided as the group discussed issues to present for member consideration.

(l-r) Hunter Bell, Christopher Rodgers and Arielle Niblet received college scholarships and certificates of appreciation for their 4-H activities at the Sept. 13 Pulaski Co. FB annual meeting.

hold onto their land rather than sell it, creating a barrier for new and expanding farms and ranches to use that land for agricultural purposes.”

This added cost also increases the likelihood that farm and ranch land will be sold outside of agriculture for commercial uses to investors who are willing to pay more, causing agricultural land and open space to be lost forever.

The top capital gains tax rate will increase by a third on the first of the year, from 15 percent to 20 percent.

Farm Bureau supports a permanent extension of the 15 percent rate.

For kids: farmer’s markets online The popular agricultural gaming site MyAmericanFarm.org now includes a revised version of the “Farmer’s Market Challenge” game, updated to include K-2 learners.

The game has been updated to give K-5 grade level students the opportunity to practice essential math skills while learning about food and healthy choices.

The Farmers Market Challenge game, which is aligned to Common Core State Standards for Mathematics, also now includes an “Easy Reader” e-comic book that takes young readers on a virtual trip to a farmer’s market with their friends.

Both the game and e-comic book can be found at www. myamericanfarm. org/games/farmers_ market_challenge/.

Editor Keith Sutton

keith.sutton@arfb.com

In the Market As of Sept. 24, 2012:  SOYBEANS appear to have topped with November’s post Labor Day move to $17.89 and subsequent decline below $16.00.

Having said that, demand from China remains strong, but economic woes there may dim their buying prospects. A big crop in South America is anticipated and recent rains have put planters in high gear. One private consultant projects a South American crop of 150 mmt or slightly more, almost a third more than last year. The current inverted market (higher on the front contracts or no carry as you move to the more distant contracts) is suggesting to producers that storage is not a viable option, and that the 2012 crop should be sold, if not now, on any rebound.

Looking ahead to the 2013 crop, the soybean/corn price ratio is just over 2.1 and favors corn. To get soybean acreage the ratio will have to move toward 2.3 or higher. So, soybeans must gain on corn, but that could happen with corn declining faster than soybeans. Do your homework, figure your costs and price the 2013 crop accordingly.  CORN’S inability to take out the $8.49 early August high on a subsequent move suggests that December futures have topped.

Trading has been confined to a range of 20 cents ($7.40 to $7.60) the last week as harvest yields in the northern part of the Corn Belt are better than expected. That will help the supply situation, especially since price already has cut demand significantly. At some point, some export demand is expected to shift back from wheat to corn. A December close below $7.40 likely signals a move toward the early July gap around $6.75.  Wheat futures have settled in and are holding at good levels.

New Crop July is working sideways

with good support just above $8.40.

Ability to hold this level will be the key to future movement. A close below $8.40 brings support near $8.15, then $7.80 into play. Planting of the U.S. winter crop will be a factor, but the situation is likely to key on tightening global supplies.

Russia’s push to make export sales has left it with a tight situation and indications it will limit further exports.  RICE futures finally bottomed just above $14.50 and have worked up to resistance about a dollar higher. Harvest in the Mid-South is quickly moving toward conclusion, although Hurricane Isaac made the process much more difficult, while cutting yields as much as 10 percent in some fields. Those losses may offset the September increase in the USDA supply/ demand report of 6.3 million cwt.

Time will tell. Export demand for milled rice remains limited with only a couple of countries, Haiti and Ghana, making major purchases. Paddy rice continues to move to Mexico and other Central American destinations. International competition is strong with big Thai intervention stocks hanging over the market.  COTTON has been unable to make any significant upward moves with December futures topping around resistance at 77.5 cents. A smaller U.S. crop in the September report was drowned by a huge increase in projected ending world stocks, which climbed above 76 million bales. China, the major U.S. buyer, has stocks approaching 35.5 million bales. Coupled with its economic woes, demand could be diminished during the 2012-13 marketing year. December futures could move toward early summer support without fresh export demand.  Live Cattle futures have fallen well below the trading range that has supported prices for the past couple of months and additional weakness looks likely.

Falling wholesale beef prices and

technical selling were the impetus for the move. The monthly cattle on feed report showed bigger than expected near-term cattle supplies which pushed the market over the edge. December looks poised to test support near $123.50, and a failure at that level would signal a move toward longer-term support at $122.

November feeders have violated the recent up-trend signaling that the recent high just below $150 will be tough resistance for the market.  hog futures are still trending higher for the time being. Packers are bidding higher for cash supplies in order to meet their slaughter needs, and that is supporting nearby contracts. The next chart resistance for the October contract is nearly $2 higher at $78.  POULTRY Commercial hatcheries in the 19-state weekly programs set 184 million eggs in incubators last week. This was up 2 percent from the eggs set the corresponding week a year earlier.

Average hatchability for chicks hatched during the week was 85 percent. Broiler growers in the 19 state weekly programs placed 161 million chicks for meat production during last week. Placements were down slightly from the comparable week a year earlier. Cumulative placements from Jan. 1 through Sept. 15, 2012 were 6.06 billion, down 3 percent from the same period a year earlier.

Contact •Gene Martin (501) 228-1330, gene.martin@arfb.com.

•Brandy Carroll (501) 228-1268, brandy.carroll@arfb.com.

•Bruce Tencleve (501) 228-1856, bruce.tencleve@arfb.com.

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

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