Farm Bureau Press | June 18

JUNE 18, 2021 | VOLUME 24 | ISSUE 12

Farm Bureau Press Spring 2021 Flooding Report • Volume 1 Crop Insurance Overview

CropCAT Insurance Overview coverage is catastrophic coverage and is the lowest amount of insurance available and only covers

A PEEK INSIDE

EXCESSIVE RAIN IMPACTS ALL OF ARKANSAS AGRICULTURE

yield.

For individual CAT coverage, are compensated for losses exceeding 50% of an average CAT coverage is catastrophic coverageproducers and is the lowest amount of insurance available and only covers yield.

For individual CATpaid coverage, producers are compensated exceeding an average yieldarea and plans, paid at 55% of the yield and at 55% of the established pricefor forlosses the crop during50% theofcrop year. For established priceare forcompensated the crop duringatthe crop area(typically plans, producers are compensated at 65% of the producers 65% ofyear. the For area’s by county) yield and paid at 45% ofarea’s the (typically

by Overview county) yield and paid at 45% of for the established price.

Premiums for CAT coverage are 100%pay subsidized butper producers established price.

Premiums CAT coverage are 100% subsidized but producers the $300 surance Farmers andand ranchers have andper county administrative fee. dealt pay crop the $300 crop county administrative fee. with numerous challenges and stresses this

verage is catastrophic coverage and is the lowest amount of insurance available and only covers growing season.

These theexceeding potential reduce or individual CAT coverage, producers arechallenges compensatedhave for losses 50%toofsignificantly an average In some cases, producers have now found thatduring buying up tocrop aup Revenue Protection policy at apolicy lower at coverage some cases, producers have now that buying to a Revenue Protection a lowerlevel is nd paid atIn 55% of the established price for thefound crop the year.

For area plans, a producer’s revenue.

Below are a few examples of potential profitability coverage level is comparable to the cost ofupCAT coverage.

This buy up affords the producer replant planting comparable to the cost of CAT coverage.

This buy affords the producer replant coverage as well as preventative ers are compensated at 65% of the area’s (typically by county) yield and paid at 45% of the coverage asnot well as preventative planting coverage that is not available under aprovides CAT policy.

In addition, impacts: coverage that is available under a CAT policy.

In addition, a Revenue Protection policy more comprehensive shed price. Premiums for CAT coverage are 100% subsidized but producers pay the $300 per a Revenue policy provides more comprehensive givinginthe producer protection coverage, givingProtection the producer protection for both a change in price as coverage, well as a decline yield. d county administrative fee.

Soybean face dual of completing planting and the for •both a changeproducers in price as well as athe decline in challenge yield. potential replanting the current crop if flood waters fail to recede.

Commodity Early Planting Final Planting Date End Planting Date e cases, producers have nowoffound that buying upDate to a Revenue Protection policy at a of lower Soybeans 4/16/21 6/25/21 • Rice producers have the potential topping levees7/15/21 and ge level is comparable to the cost of CAT coverage.

This buyof upflood affordswaters the producer replant Corn 3/11/21 4/25/21 5/10/21 ge as well as preventative planting coverage that is not available under a CAT policy.

In addition, stressing the young plants. This stress combined with the need to pull new nue Protection policy coverage, giving the5/25/21 producer protection Riceprovides more comprehensive 4/1/21 6/9/21 levees willasnegatively impact yields this fall. 5/25/21 h a change in price as well a decline in yield.

Cotton 6/9/21 and cotton plants are beingDate stressed byPlanting excessive moisture and the Commodity• Corn Early Planting Date Final Planting End of Dates were based on Arkansas County.

Northern counties datesDate are later.

Soybeans 4/16/21 6/25/21 7/15/21 lack of adequate sunlight and heat units.

The Rain Corn 3/11/21 is preventing 4/25/21 5/10/21 • The excess moisture hay producers from getting the first TheFarmers Rain and ranchers have raced weather challenges to ensure their crop will have Rice 4/1/21 5/25/21for numerous years 6/9/21 cutting of hay.

The longer the grass grows without being cut thehave lower the Farmers and ranchers have raced weather challenges for numerous years to ensure their crop will bountiful April showers bring May flowers wasn’t theacase this Cotton a bountiful harvest in the fall. The old saying that 5/25/21 6/9/21 harvest inquality the fall. The old saying that April showers bring May flowers wasn’t the case this year, it seemed to keep bringing year, it seemed to keep bringing showers and slowing planting for Arkansas row crop producers while and value of Northern the haycounties at harvest.

Datesshowers were based on Arkansas County. dates are later. slowing planting Arkansas rowhay. crop producers while also preventing ranchers from cutting hay. also and preventing ranchersforfrom cutting

2021 ArFB Foundation Trap Shoot, page 2

The estimated cost of this disaster is still being assessed as the extent of the 2.89 2.89

2.62 2.62

2.83 2.83

n Above averagerainfall rainfall Above average begin inknown the state in May the and continued into June.

The 2021 Rainfall Chart shows the weekly damage willweather not bechallenges until rains stop.

TheRAINFALL potential s and ranchers have raced for numerous years to2021 ensure their crop willloss havein revenue in the sumbegin of rainfall forstate each in location according to NOAA collection sites. With each of these stations reporting above average tiful harvest the fall.

The old saying that showers May flowers wasn’t the case this to the toinfarmers agriculture across the April state couldbring potentially reach $310 million May and continued rainfall, face the concerning decision to file prevent planting or the option to replant their crop in an attempt to seemed to keep bringing showers and slowing planting for Arkansas row crop producers while into June.

The 2021 agricultural economy salvage the rest of the growing season.due to total crop devastation or yield losses due to 4/4/21 - 4/10/21 eventing ranchers from shows cutting hay.

Rainfall Chart 1.96 1.96

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0.31 0.31

00

0.31 0.31

1.09 1.09

0.56 0.56

0.76 0.76

0.22 0.22

1.96 0.14 0.14 1.96

0.21 0.21

1.44 0.1 1.44 0.1

1.09 1.09

00

0.76 0.76

0.56 0.56

0.04 0.04

0.04 0.04

0.79 0.79

1.17 1.17 0.94 0.94

1.03 1.03

0.22 0.22

0.14 0.14

1.03 1.03

1.44 1.44

1.8 1.8

1.94 1.94

2.08 2.08

2.27 2.27

4/11/21 - 4/17/21

0.54 0.54

0.65 0.65

0.79 0.79

0.1 0.1

0.21 0.21

0.54 0.54

0.05 0.05

1.8 0.05 0.05 1.8

1.94 1.94

1.17 1.17 0.94 0.94

0.31 0.31 2.27 2.27

1.21 1.21

0.65 0.65

2.08 2.08

0.65 0.65

1.37 1.37

0.05 0.05

1.21 1.21

1.37 1.37

1.85 1.85

0.68 0.68

0.71 0.71

2.13 2.13

2.31 2.31

0.05 0.05

0.31 0.31

0.65 0.65

1.25 1.25

0.68 0.68

0.71 0.71

2.89 2.89 1.25 1.25

1.48 1.48

1.58 1.58 1.37 1.37 1.36 1.36

1.65 1.65

1.22 1.22

2.83 2.83

2.62 2.62

1.85 0.21 0.21 1.85

1.48 1.48

1.65 1.65

1.58 1.58 1.37 1.37 1.36 1.36

1.22 1.22

0.21 0.21

2.13 2.13

2.31 2.31

flooding. the weekly sum of USDA to Begin Payments for 4/18/21 - 4/24/21 average rainfall 2021 RAINFALL rainfall for each 4/25/21 - 5/1/21Producers Impacted by 2018 n the state in location according to 5/2/21 - 5/8/21 d continued and 2019 Natural Disasters, NOAA collection sites.

5/9/21 - 5/15/21 ne. The 2021 page 3 5/16/21 - 5/22/21 With each of these 4/4/21 - 4/10/21 Chart shows 4/11/21 - 4/17/21 5/23/21 - 5/29/21 stations reporting ekly sum of 5/30/21 - 6/5/21 4/18/21 - 4/24/21 for each above average 4/25/21 - 5/1/21 rainfall, farmers face n according to 5/2/21 - 5/8/21 B LL YY TT H H EE V V II LL LL EE AR R C C II TT YY CR RO O SS SS EE TT TT MO ON N TT II C C EE LL LL O O U TT TT G GA AR R TT the concerning B SS TT A C M SS TT U collection sites.

5/9/21 - 5/15/21 decision to file 5/16/21 - 5/22/21 ach of these prevent planting or the option to replant their crop in an attempt to salvage the rest5/23/21 of the growing - 5/29/21 s reporting season.

5/30/21 - 6/5/21 average , farmers face B LL YY TT H H EE V V II LL LL EE SS TT A C MO ON N TT II C C EE LL LL O O U TT TT G GA AR R TT B AR R C C II TT YY CR RO O SS SS EE TT TT M SS TT U cerning Arkansas ArFB arfb1935 n to file FarmBureau The complete ArFB Spring 2021 Flooding Report Vol. 1 can be found online at t planting or the option to replant their crop in an attempt to salvage the rest of the growing http://bit.ly/ArFBSpring2021FloodingReportVol1.

For more information contact Mark Lambert (501)-519-1209

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

WATER RULE REVERSAL A BLOW TO AGRICULTURE

American Farm Bureau Federation President Zippy Duvall commented June 9 on the Environmental Protection Agency’s (EPA) announcement of its intention to reverse the Navigable Waters Protection Rule.

Pike Co. Scholarship | Pike Co. Agency Manager Jeff Jones presented the 2021 Pike Co. scholarship recipient, Mikaila Cook, with a check June 2. Mikaila is Kirby High School graduate.

“The American Farm Bureau Federation is extremely disappointed in the Environmental Protection Agency’s announcement of its intention to reverse the environmentally conscious Navigable Waters Protection Rule, which finally brought clarity and certainty to clean water efforts. Farmers and ranchers care about clean water and preserving the land, and they support the Navigable Waters Protection Rule.

“Administrator Regan recently recognized the flaws in the 2015 Waters of the U.S. Rule and pledged not to return to those overreaching regulations. We are deeply concerned that the EPA plans to reverse the Navigable Waters Protection Rule, which puts the future of responsible protections at risk. We expected extensive outreach, but today’s announcement fails to recognize the concerns of farmers and ranchers.

Sebastian Co. Legislative Appreciation | Sebastian Co. Farm Bureau hosted a Legislative Appreciation Dinner June 9 at the Ft. Smith Riverfront Pavilion. Lawmakers discussed the legislative session with board members and guests. In attendance (from left) included Danny Dalmut, Sebastian Co. FB board vice president; Terry Williams, Sebastian Co. FB board member; Sen. Terry Rice; Lynn Strang, Sebastian Co. FB board president; Rep. Justin Boyd and Rep. Lee Johnson.

“We call on EPA to respect the statute, recognize the burden that overreaching regulation places on farmers and ranchers, and not write the term ‘navigable’ out of the Clean Water Act. On this issue, and particularly prior converted croplands and ephemerals, we also urge Secretary Vilsack to ensure that we don’t return to the regulatory land grab that was the 2015 WOTUS Rule.

“Clean water and clarity are paramount, and that is why farmers shouldn’t need a team of lawyers and consultants to farm.”

2021 ArFB FOUNDATION TRAP SHOOT The ArFB Foundation hosted its 3rd Annual Trap Shoot Fundraiser on June 11. A total of 37 teams competed at the event with 185 shooters and more than 275 total attendees. Photos from the event can be found at http:// bit.ly/2021ArFBFoundationTrapShoot.

Congratulations to this years top teams: Top Shooter: Issac Gregory, Sharp County Youth Division: 1st Place – Craighead Clay Crushers Cole Cureton, Maddox Tarnin, Blaine West, Caden Arnold and Mason Burris 2nd Place – Bergman Trap Team Jace Clark, Logan Williams, Dalton West, Kade Magness and Lucas Gibson 2

3rd Place – Lafayette County Farm Bureau Hunter Wood, Cason Anders, Wyatt Baker, Matt Hamiter and Joey Brown

Adult Division: 1st Place – Union County/Smackover Shooting Sports Jax Todd, Colby Pearson, Tyler Sharp, Tyler Sexton and Dalton Ray 2nd Place – Arkansas Cattlemen’s Association Kody Rodgers, Issac Gregory, Logan Jennings, Scott Moody and Randy Black 3rd Place – Clover for Life AJ Russell, Greyson Freel, Ashlyn Ward, Jesse Bocksnick and Matt Breshears

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

USDA TO BEGIN PAYMENTS FOR PRODUCERS IMPACTED BY 2018 AND 2019 NATURAL DISASTERS More than $1 billion in payments will be released over the next several weeks for agricultural producers with approved applications for the Quality Loss Adjustment (QLA) Program and for producers who have already received payments through the Wildfire and Hurricane Indemnity Program Plus (WHIP+). These U.S. Department of Agriculture (USDA) programs provide disaster assistance to producers who suffered losses to 2018 and 2019 natural disasters.

Producers weathered some significant natural disasters in 2018 and 2019, and USDA’s Farm Service Agency (FSA) provided support for crop value and production losses through QLA and crop quantity losses through WHIP+.

Second WHIP+ Payments WHIP+ provides payments to producers to offset production losses due to hurricanes, wildfires, and other qualifying natural disasters that occurred in 2018 and 2019. WHIP+ covered losses of crops, trees, bushes and vines that occurred as a result of those disaster events.

Producers who applied for and have received their first WHIP+ payment can expect to receive the second payment beginning in mid-June for eligible crop losses.

Due to budget constraints, producers received an initial WHIP+ payment for 2019 crop losses equal to 50% of the calculated payment. This second payment will be equal to 40% of the calculated payment for a total 90% WHIP+ program payment. This second round of WHIP+ payments are expected to exceed $700 million. A third round of payments may be issued if sufficient funds become available. Producers with 2018 crop losses have already been compensated at 100%.

Future Insurance Coverage Requirements All producers receiving QLA Program and WHIP+ payments are required to purchase federal crop insurance or Noninsured Crop Disaster Assistance Program (NAP) coverage for the next two available crop years at the 60% coverage level or higher. If eligible, QLA participants may meet the insurance purchase requirement by purchasing Whole-Farm Revenue Protection coverage offered through USDA’s Risk Management Agency.

For more information, visit www.farmers.gov.

COURT ORDERS REMOVAL OF APPOINTED STATE PLANT BOARD MEMBERS On June 10, the Pulaski County Circuit Court, 6th Division, entered an order removing nine of the 18 members of the State Plant Board from their positions on the Board. The Court’s action was a result of a ruling from the Arkansas Supreme Court that those nine members had been unconstitutionally appointed.

In 2017, a lawsuit was filed by six Arkansas farmers challenging the constitutionality of the statute that provides for certain members of the Plant Board to be elected by private trade associations. The circuit court upheld the constitutionality of the statute and the farmers appealed to the Arkansas Supreme Court. The Supreme Court had earlier held that the statute was unconstitutional and remanded the case to the circuit court with instructions for the 6th Division judge to enter an order removing the unconstitutionally appointed members.

The law that was held unconstitutional by the Supreme Court was amended by the Arkansas General Assembly earlier this year. The new law will be effective July 28 and allows the Governor to appoint positions formerly elected by the trade associations. ARFB supported the new law.

DIACAMBA TEMPORARY RESTRAINING ORDER On June 7, the Arkansas Supreme Court issued a stay of the Pulaski County Circuit Court’s temporary restraining order that delayed implementation of the 2021 amendments to the State Plant Board’s Pesticide Classification rules – specifically known as the dicamba rule.

The legal effect of the Supreme Court’s Stay is that the State Plant Board’s recently adopted emergency rule amendments regarding the use and application of dicamba are again in effect. In-crop application of dicamba is now allowed but shall be prohibited after June 30.

See www.agriculture.arkansas.gov/plant- industries/ rules-and-regulations for the complete rule including buffer zone requirements.

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

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to prices in the outlying quarters.

MARKET NEWS as of June 16, 2021 Contact Brandy Carroll 501-228-1268 brandy.carroll@arfb.com

Red Meat and Poultry In the monthly Supply/Demand report, USDA raised its for 2021 red meat and poultry production estimate from last month as higher forecast beef, broiler, and turkey production more than offsets lower pork production. The increase in beef production is small as higher than expected cow slaughter is largely offset by lower steer and heifer slaughter.

Pork production is lowered as higher than expected slaughter is more than offset by lower carcass weights. The broiler production forecast is raised primarily on higher production in the second quarter, while turkey production is raised on hatchery data and a more rapid pace of slaughter. Egg production is raised from the previous month on recent hatchery data. The 2022 red meat and poultry production forecast is little changed from last month with only a slight increase in turkey production due to expected improvement in turkey prices.

The beef import forecast is raised for 2021 and 2022 on expected strength in demand for processing beef. Exports for both years are raised on expected firm demand from Asian markets. Pork export forecasts for 2021 and 2022 are raised from the previous month as demand in several markets has strengthened. Broiler and turkey export forecasts for 2021 are raised on recent trade data; no change is made to 2022.

For 2021, cattle, hog, and turkey price forecasts are raised, reflecting current price strength. Hog and turkey prices are also raised for the first quarter of 2022. Broiler and egg price forecasts are reduced for second quarter 2021 based on current prices; no changes are made 4

Dairy In the June supply/demand report, milk production for 2021 is raised from last month on higher expected cow numbers. The all-milk price forecast is lowered to $18.85 per cwt for 2021.

The 2022 milk production forecast is raised from last month as higher forecast cow numbers for 2021 carry into 2022. Import forecasts are unchanged. The fat basis export forecast is unchanged, but the skim-solids export forecast is increased on expected strength in whey exports. For 2022, butter, NDM, and whey price forecasts are raised from the previous month while the cheese price is unchanged.

Thus, Class III and Class IV price forecasts are raised from last month. The all-milk price forecast is raised to $18.75 per cwt for 2022.

Rice Rice futures have faced renewed selling pressure this week. September has fallen to its lowest level in 6 months, with the next level of support at $12.50.

After heavy rains resulted in disaster declarations in the state the USDA now says 68% of the Arkansas crop is in good to excellent condition, down from 77% a week ago. The only changes in the supply/demand report were decreased imports and increased exports for the 2020-21 crop resulting in a small adjustment in beginning stocks for 2021-22 that carried through the report to decrease ending stocks for 2021-22 as well. The on-farm price for the 2021-22 crop was pegged at $14.20, unchanged from last month.

Corn USDA’s old-crop corn carryout estimate in the June supply/demand report was down 150 million bushels from last month at 1.107 billion bushels.

That carried through to a lower ending stocks estimate for 2021-22 of 1.357 billion bushels. Both were below the average trade estimate and a positive surprise for the market. The estimated on-farm price was unchanged at $5.70/ bushel. 68% of the crop is currently rated good to excellent, down 4% from just last week. Drought condition in the

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

corn belt and flooding in the south are expected to result in further downward revisions in the crop ratings. The market is now looking ahead to the acreage report at the end of the month, but will be focused on weather in the shortterm. Sharp losses this week are in reaction to milder forecasts for the midwest, but the drought is still expected to have an impact on the crop. December has long-term support at $5.20.

Soybeans New-crop November prices have broken out of their upward channel after setting a new high of $14.80 last week.

Support at $13.25¾ looks solid for now.

63% of the crop in Arkansas is in good to excellent condition according to the USDA. Recent flooding, however, will likely change those ratings. A hot, dry weather pattern is expected for the next couple of weeks through the Corn Belt and northern plains, and that could develop into a bad situation for farmers quickly if crop conditions deteriorate.

USDA increased its soybean carryout estimate to 135 million bushels due to a lower crush projection, but that is still a relatively tight supply situation.

Cotton The U.S. cotton projections for 202122 showed a 100,000-bale increase in exports from last month, to 14.8 million bales, on stronger–than–expected late-season. U.S. 2021-22 production and consumption are unchanged from last month, and with lower beginning stocks and higher exports, ending stocks are now 200,000 bales lower, at 2.9 million. The upland cotton farm price for 2021-22 was unchanged, at 75 cents per pound, while the 2020-21 price was pegged at 67 cents, down a penny from the previous report. USDA says only 45% of the crop is in good to excellent condition with drought conditions in Texas and heavy rains in the Delta impacting the quality of the crop.

EDITOR Ashley Wallace ashley.wallace@arfb.com