Farm Bureau Press for November 22

NOVEMBER 22, 2019 • VOLUME 22 • ISSUE 23

Farm Bureau Press A PEEK INSIDE

USDA ANNOUNCES FUNDING TO CONTROL FERAL SWINE IN ARKANSAS The U.S. Department of Agriculture (USDA) announced it is awarding more than $3.4 million to fund pilot projects to control feral swine in Arkansas.

These projects are part of the Feral Swine Eradication and Control Pilot Program (FSCP) – a joint effort between USDA’s Natural Resources Conservation Service (NRCS) and Animal and Plant Health Inspection Service (APHIS) to help address the threat that feral swine pose to agriculture, ecosystems, and human and animal health.

NRCS and APHIS are working with Arkansas Agriculture Department’s Natural Resources Division and several partner organizations on four pilot projects in Arkansas to reduce the feral swine population, agronomic damage and environmental impacts throughout the project areas.

YF&R State Committee Visits DC, page 2.

NRCS, APHIS and the Arkansas State Technical Agriculture Committee worked together to define the critical areas to be considered for projects within the state. The Arkansas pilot projects are for three years in duration. Proposals were submitted to NRCS in August 2019, and a competitive process was used to evaluate each proposal for potential funding. The four Agriculture Department Natural Resources Division projects cover four regions of the state that have experienced excessive agricultural damage from feral swine.

NRCS is awarding more than $16.7 million this year for feral swine pilot projects in select areas of Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina and Texas. The funding limit for a single award is $1.5 million. Awardees are required to provide at least 25 percent of the partnership agreement budget as a match to NRCS funding. APHIS is providing $23.3 million this year to the Wildlife Services programs located in the pilot projects states.

United States and South Korea Reach Agreement on Guaranteed Market Access for American Rice, page 2-3.

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The 2018 farm bill provides $75 million for the Feral Swine Eradication and Control Pilot Program. These funds are for the life of the farm bill and divided evenly between NRCS and APHIS. Additional information on feral swine control work in the state can be found at http://bit.ly/ControlFeralSwine.

Arkansas FarmBureau

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A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

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CATFISH FARMERS OF ARKANSAS PROVIDE SCHOLARSHIP OPPORTUNITY Each year, the Catfish Farmers of Arkansas awards two $1,000 scholarships, one each for fall and spring semesters. Awards are for undergraduate (in either 2-year or 4-year programs) study and may be used for education-related expenses, including tuition, fees, books, supplies, room and board. Recipients are encouraged to attend the annual convention of the Catfish Farmers of Arkansas and make a short presentation on their experience or interest in the catfish industry in Arkansas.

The application and full details can be found online at, http://www.cfarkansas.com/ scholarships.html.

ARKANSAS YF&R STATE COMMITTEE VISITS DC The Arkansas Young Farmers & Ranchers State Committee recently went to Washington, D.C. to visit with the EPA, the USTR, the USDA and meet with member of our state’s congressional delegation.

Committee members were able to have one-on-one conversations about issues they are facing and receive updates from the different offices.

UNITED STATES AND SOUTH KO GUARANTEED MARKET ACCES United States Trade Representative Robert Lighthizer and U.S. Secretary of Agriculture Sonny Perdue are pleased to announce that the Trump Administration has reached an agreement with the government of South Korea on market access for U.S. rice.

Under the agreement, Korea will provide access for 132,304 tons of U.S. rice annually, with an annual value of approximately $110 million. Korea also agreed to important disciplines to ensure transparency and predictability around the tendering and auctioning for U.S. rice.

“Thanks to President Trump’s leadership, this agreement gives our farmers the largest volume of guaranteed market access for rice in Korea that the United States has ever enjoyed,” said Ambassador Lighthizer. “It will prove enormously beneficial for American producers and their customers in Korea, who will enjoy access to high quality and cost competitive U.S. rice.”

Sen. John Boozman’s Office | Members in attendance included (from left) Reed Storey, Jason Cranford, Adam Cloninger, Sen. John Boozman, Dustin Cowell, Kayla Cowell, Tiara Boney, Price Boney, Julie Tubbs, Jeffery Tubbs, Lauren Lee and Michael Lee. 2

Secretary Perdue said, “Today’s announcement is another great testament of President Trump’s determination to expand export opportunities for America’s farmers and ranchers. Exports are critical for the economic health of the U.S. rice industry, with half our crop being exported every year. Agreements like this,

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

ARKANSAS FARM BUREAU HIRES MCMINN IN COMMODITY ROLE John McMinn has been hired as the director of Commodity Activities and Economics at Arkansas Farm Bureau, where he will be responsible for economic analysis and commodity-specific programs and activities surrounding for aquaculture, forestry and specialty crops.

OREA REACH AGREEMENT ON SS FOR AMERICAN RICE that expand opportunities for U.S. rice producers in important markets, are critical to introduce foreign customers to the bounty of goods produced by America’s farmers.”

In 2014, the United States, Australia, China, Thailand, and Vietnam entered into negotiations with Korea when its special treatment for rice market access under the World Trade Organization (WTO) expired. As a result of these negotiations, Korea agreed to include in its WTO Schedule a 408,700-ton tariff-rate quota for rice imports with a 5% in-quota duty and a 513% above-quota duty. Of that 408,700 tons, Korea will allocate 388,700 tons of rice into country-specific quotas under a Plurilateral Agreement with the U.S., Australia, China, Thailand and Vietnam. The remaining 20,000 tons will be administered on a global basis, which U.S. suppliers can also bid for.

The agreement gives the U.S. the greatest volume of guaranteed rice market access in Korea ever with an annual value of approximately $110 million. Additionally, the agreement provides U.S. suppliers with enhanced disciplines related to administration of the U.S. country-specific quota.

A native of Stuttgart, McMinn has spent the past three years as a program associate in the agricultural economics and agribusiness department with the University of Arkansas Division of Agriculture Research and Extension. His primary responsibility has been to develop and promote specialty crop budgets for growers within Arkansas to help them better manage risk. He also did price analysis for different specialty crop markets and helped define new forms of valueadded products for Arkansas growers. McMinn also worked as a precision ag adviser for Greenway Equipment, where he helped farmers deploy global positioning satellite equipment and other precision ag technologies.

McMinn earned undergraduate and graduate degrees through the Dale Bumpers College of Agricultural, Food and Life Sciences at the University of Arkansas.

As part of his master’s degree program in international agricultural economics, McMinn studied at the University of Ghent in Belgium.

“John’s experience during his last three years at the Cooperative Extension Service and the relationships he developed will allow him to hit the ground running,” said Evan Teague, vice president of Commodity and Regulatory Affairs. “He has some interesting ideas about farm-to-table markets that should expand opportunities for our members into a growing market. He will also bring a fresh perspective to our aquaculture and forestry areas as well.”

The agreement will enter into force on Jan. 1, 2020.

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MARKET NEWS as of November 21, 2019 Contact Brandy Carroll 501-228-1268 brandy.carroll@arfb.com

Rice The U.S. rice production estimate was cut by 700,000 cwt. to a total 187.9 million cwt. in the November report.

The national average yield was reduced to 7,587 pounds per acre harvested from 2.477 million acres.

The Arkansas totals were unchanged from the October report, leaving production in the state at 84.45 million cwt. The supply/demand balance sheet was otherwise unchanged, so the cut in the production estimate carried through to an equal reduction in ending stocks. The average on-farm price held steady as well at $13.00. January will need to close above resistance at the October 30 high of $12.20 ½ in order to suggest further gains are possible. Strong weekly exports gave the market a boost late this week, with net sales of 96,300 metric tons and shipments of 51,500 metric tons.

Cotton Cotton futures have been moving mostly sideways but holding steady above trendline support until this week. The breakout to the downside could signal a move toward support in between 60 and 61 cents for March. Strong export demand has been supportive, with weekly net sales of 345,100 bales last week a marketing-year high. This week’s sales of 227,600 bales was a solid number as well. Shipments this week were a bit disappointing at 137,900 bales. The tenuousness of the situation with China has traders worried. In the November report, the crop production estimate was reduced from the previous month, but is still 13% larger than a year ago.

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The average on-farm price is pegged at 61 cents.

Corn Corn futures have been drifting lower. Bullishness in the market due to the harvest delays is generally being overridden by the fact that there is still a lot of old crop corn hitting the market. The weather forecast for the next couple of weeks is not favorable for farmers, but a slow harvest is built into prices at this point. Weekly exports of 788,000 metric tons was within trade expectations, but USDA also reported another sale of 106,000 metric tons to an unknown destination on Thursday, giving the market a bit of a boost. USDA’s November crop estimate was a little higher than expected, and usage was cut sharply.

Ethanol usage was cut by 25 million bushels, exports were cut 50 million bushels, and feed usage was cut 25 million. The net result is that 19/20 corn carryout is now pegged at 1.910 billion bushels. The average on-farm price is now pegged at $3.85.

Soybeans Soybean futures are trending lower as harvest pressure and trade woes weight on the market. The November production and supply/demand reports disappointed those who were expecting a drop in the yield estimate. In fact, very little was changed; only a 15 million bushel cut to the domestic crush estimate. The net result was an increase in carryout to 475 million bushels. The average on farm price is pegged at $9. There is little optimism regarding a deal with China at the moment. The January contract looks to be headed for a retest of support at $8.95 while November 2020 could retest support at $9.40.

Livestock & Poultry The rally in cattle futures has run out of steam and the market has been moving mostly sideways in recent weeks. December live cattle have resistance at the recent high of $120.32 ½, and support at $117.35.

Relatively strong wholesale beef prices and firm cash cattle prices

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remain supportive, however, recent weakness in pork values and hog futures could pressure the market.

Futures are also technically oversold, so a correction is not out of the question.

Hogs Hog futures are trending lower and the selloff accelerated on Wednesday in reaction to sharp declines in cutout values. Record large hog supplies and weak cash fundamentals, coupled with continued uncertainty about a trade deal with China, will continue to limit the upside. Technically, the February contract has support at $65.45.

In the November supply/demand report, USDA raised the forecast for 2019 red meat and poultry production. The broiler production forecast was higher as hatchery data suggests a larger supply of birds will be available in the fourth quarter. For 2020, the total red meat and poultry forecast was increased last month, as an increase in broiler and turkey production more than offsets a lower beef production forecast.

Dairy In the latest Supply/Demand report, USDA increased its projections for 2019 and 2020 milk production on strong growth in milk per cow estimates. The 2019 all milk price forecast was raised to $18.60/cwt and 2020 was unchanged at $18.85.

The largest milk processor in the U.S. filed for bankruptcy in early November. Dean Foods filed for Chapter 11 bankruptcy, citing the per capita decline in consumption of 39% in 40 years as a reason for the filing.

Competition from store brand milk was likely also a factor, as Walmart opened its own milk processing plant in 2018.

EDITOR Ashley Wallace ashley.wallace@arfb.com