Farm Bureau Press for Jan. 11

JANUARY 11, 2019 • VOLUME 22 • ISSUE 1

Farm Bureau Press A PEAK INSIDE

TOP STORIES • President Donald Trump will make an appearance Jan. 14 at the American Farm Bureau Federation’s 100th annual convention in New Orleans. Trump is expected to take part in the convention’s general session. This will mark the second year in a row that Trump has spoken at the Farm Bureau convention.

• USDA announced the deadline for farmers to apply for Market Facilitation Program payments will be extended because of the partial shutdown of the federal government. The application deadline will be extended for a period of time equal to the number of business days Farm Service Agency offices were closed, once the government shutdown ends.

Clowser joins Arkansas Farm Bureau, page 2.

• ArFB is sponsoring a public Grain Bin Rescue and Safety Program Feb. 12 in Jonesboro. The program includes a classroom portion and hands-on rescue simulation. For more information, contact Jason Kaufman at 501-516-0776 or jason.kaufman@arfb.com.

China approves Enlist E3 soybeans, page 2.

ArFB President Randy Veach (left) was recognizedby AFBF President Zippy Duvall for the organization’s membership work.

Meet the 2019 Arkansas Agriculture Hall of Fame inductees, page 3.

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

CLOWSER JOINS ArFB Jessica Clowser has been hired as Director of Commodity Activities and Economics for Aquaculture, Forestry and Specialty Crops at Arkansas Farm Bureau, where she is responsible for directing commodity-specific programs and activities.

Clowser spent the last four years in Washington, D.C., working as a Legislative Assistant for U.S. Sen. Deb Fischer of Nebraska, where she advised on legislative issues for the Senate Agriculture, Nutrition and Forestry Committee, as well as the Senate Environment and Public Works Committee.

“I am excited to serve as part of the Farm Bureau team,” said Clowser. “I look forward to meeting the farmers and ranchers of Arkansas and will work as hard as I can to promote priorities and policies related to Arkansas agriculture.”

Clowser holds an undergraduate degree in animal science from the University of Nebraska and two graduate degrees, one in business administration from Indiana University and the other in agricultural economics from Purdue University.

CHINA APPROVES ENLIST SOYBEANS Enlist E3 soybeans, jointly developed by Dow Agrosciences and MS Technologies, are approved for import by China. The country approved five new genetically modified crops, Jan. 8 for import for the first time in 18 months.

With this approval, farmers can plant Enlist E3 soybeans that include tolerances to 2,4-D choline, glyphosate and glufosinate. Herbicide options for Enlist E3 soybeans include Enlist Duo, a mix of glyphosate and 2,4-D choline, and Enlist One, a straight-goods 2,4-D choline option that can be tank mixed with approved herbicides.

Prior to this decision farmers could only plant Enlist E3 soybeans in certain areas. China’s green light gives farmers across the U.S. access to another tool to manage weeds.

Other crops approved for import by China include: BASF’s RF3 canola and Bayer-owned Monsanto’s glyphosate-tolerant MON 88302 canola; SYHT0H2 soybeans developed by Bayer CropScience and Syngenta but now owned by BASF. In addition, Dow’s DP4114 corn was also approved.

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PHOTO BY KEITH SUTTON

GOING FOR THE GOLDFISH Lonoke County is rich with gold — goldfish, that is. Pool Fisheries in Lonoke, founded in 1959, produces around 175 million goldfish each year, about 80 percent of the total U.S. production.

Ronnie Pool and general manager Rodney Elmore described how this family business fulfills orders for these popular aquarium and bait fish throughout the year in one of our latest videos.

To watch this video, visit http://www.arfb.com/news.

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

ARKANSAS AG HALL OF FAME The Arkansas Agriculture Hall of Fame has announced plans to induct five individuals whose leadership and service have brought distinction to the state’s largest business sector.

The newest class includes retired University of Arkansas educator Dr. L.B. (Bernie) Daniels of Fayetteville; Ed Fryar of Rogers, the founder of Ozark Mountain Poultry; UA professor Dr. Donna Graham of Fayetteville; UA distinguished professor Dr. Terry Siebenmorgen of Fayetteville; and David Walt of Dumas, a retired soybean farmer.

The group will be honored with an induction luncheon, set for 11:30 a.m. on March 1 at Little Rock’s Embassy Suites Hotel.

THE BROAD REACH OF THESE FIVE INDIVIDUALS HAS BEEN FELT IN EVERY CORNER OF ARKANSAS, FROM THE DELTA FLATLANDS TO THE PASTURES OF WESTERN ARKANSAS.

PHOTO BY KEN MOORE

Farmers and ranchers attended a Conway-Perry County legislative breakfast meeting Jan. 5 in Morrilton. State representatives Rick Beck (standing left) and Mary Bentley (standing right) discussed Farm Bureau priority issues including State Agriculture Department reorganization and increased funding for the UA Division of Agriculture.

“This class of inductees includes entrepreneurs, researchers, educators and agricultural leaders,” said Butch Calhoun of Des Arc, chairman of the Arkansas Agriculture Hall of Fame committee. “The broad reach of these five individuals has been felt in every corner of Arkansas, from the Delta flatlands to the pastures of western Arkansas.

“I have said this before and it bears repeating; agriculture is one of the great success stories of our state. We are pleased to bring recognition to these individuals who have impacted our state’s largest industry in such a positive way.”

The new selections will bring to 169 the number of honorees in the Arkansas Agriculture Hall of Fame, encompassing 32 classes of inductees.

Luncheon tickets are $35 each. Individual tickets and tables of 10 are available by calling (501) 228-1609 or emailing aghalloffame@arfb.com.

Learn more about each inductee by visiting http://bit.ly/araghof2019.

ARKANSAS AG HALL OF FAME CLASS OF 2019

DANIELS

FRYAR

GRAHAM

SIEBENMORGEN

WALT

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

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MARKET NEWS as of January 11, 2019 Contact Brandy Carroll 501-228-1268 brandy.carroll@arfb.com Shutdown impacts agriculture As the federal government shutdown completes its third week, farmers are feeling the effects. Most urgently, no trade aid payments can be made and federal crop loans are unavailable. Farmers waiting on a loan are unable to plan for the 2019 crop season and are unable to purchase inputs.

Another impact, though the severity can be debated, is the lack of government market data. There is currently no data on export sales and reports such as the January annual production report, stock reports and monthly supply and demand reports will not be released.

Rice Rice futures moved to their lowest levels since October during the last week of 2018. However, the market found support and has put 60 to 70 cents back on the market in nearby contracts. That low now becomes support, which for March is $10.10½. Support below that level is at the contract low of $10. Resistance remains near $10.80. A close above that level would be positive and could see the market move toward a retest of resistance near $11, where the market gapped lower in early December to accelerate the selloff. Chinese customs announced Dec. 28 that the China market is opened for the import of U.S. milled rice in accordance with the Sanitary and Phytosanitary Protocol signed between the U.S. and China from July 2017. However, the market reaction has been tempered by the fact that 4

there is still much work to be done for U.S. suppliers to comply with the complex protocol. As of this writing, no sales of U.S. rice have been made to China.

Cotton Cotton futures have lost significant ground since early December. Dec. 7 the March contract gapped higher but then failed at resistance at 82 cents. In reaction, the market moved significantly, finding support only when the market moved below 71 cents. There is additional support at the June 2017 low of $66.75 on the weekly continuation. The lack of demand remains the driving factor in the market. Without China to buy U.S. cotton, the upside potential of the market will be limited. Another bearish factor for cotton was the legalization of industrial hemp in the farm bill. Hemp creates competition for cotton in the fiber market.

Soybeans Soybeans have been more positive for other markets, which may be because things had been so negative for so long. The long-term trend of the market is still up, but the short-term trend is more sideways.

January has found resistance at $9.15 and has seen some weakness as a result. Support will be found at the Dec. 27 low of $8.67.

On the tariff front, the market is expecting positive news, bolstered by the resumption of talks between the U.S. and China. However, the market still has a tremendous amount of soybeans to move. The Brazilian crop, which was off to a great start, has become drought-stressed and private crop estimates are declining substantially at this point.

Corn Corn futures have been trending mostly sideways, with March holding

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

between support at $3.72 and resistance at $3.87. A breakout of either side of this range will be a clue about the longer-term direction of the market. Weak ethanol prices (thanks to lower gasoline prices) have impacted domestic demand. A big question mark for the corn market will be the size of the 2019 crop.

Recent gains in soybeans may mean that fewer acres than first thought would shift from beans into corn.

Livestock Live cattle futures ended the year at contract-high levels. Since then, the market has been on a bit of a roller coaster ride, with the February contract quickly taking about $4 off the market before again surging to a new contract high of $125.50 on Jan. 8. Cash markets have been quiet this week, but wholesale beef prices have been firmer. With no significant weather events in the forecast for the Plains, marketing should stay current.

There are some overriding concerns about the U.S. economy that could limit the upside potential of the market as there are implications for meat demand.

February hogs are trending higher, but are not seeing the same strength as cattle. However, the cash market has likely put in its seasonal low, which will provide some support. Futures still hold a large premium to the CME cash hog index, though, which will likely limit the upside for futures. The market is also seeing support from concerns about China’s African swine fever epidemic.

Wthout a trade agreement in place, exports to China will be limited by the high tariffs on U.S. pork.

EDITOR Maddison Stewart Stone maddison.stone@arfb.com