Farm BUreau Press for Feb. 22

FEBRUARY 22, 2019 • VOLUME 22 • ISSUE 4

Farm Bureau Press A PEEK INSIDE

STAY IN THE KNOW • Support the Clean Water Act during the 60-day comment period that closes on april 15 by submitting comments through FB Advocacy’s Clean Water Clear Rules action alert, http://bit.ly/CleanWaterComments.

• Win safety equipment for your local fire department by nominating a fire department at http://bit.ly/GrainBinSafetyContest now until April 30. Fire departments could receive grain rescue tubes and hands-on training to help first responders save lives.

Rule change for dicamba use, page 2.

Ag safety week, page 3.

Farm Bureaus across the state celebrated Farm Bureau week Feb. 3-8. Greene County Judge Rusty McMillion (sitting) signed a proclamation declaring Feb. 4-8 be Farm Bureau week. Pictured behind McMillion (left to right) is board secretary Ronnie Robers, board president Terry Norwood, agency manager Bill Pollard and board vice president Justin Blackburn.

Rural broadband bill, page 3.

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

AFBF ISSUE ADVISORY COMMITTEE MEETINGS American Farm Bureau Federation held Issue Advisory Committee Meetings Feb. 21-22 where farmers and ranchers from across the country were assigned to a committee to give input on agricultural issues. ArFB President Randy Veach and state board members participated in the meetings.

President Randy Veach (right) served on the Farm Policy Committee.

RULE CHANGE FOR DICAMBA USE The Arkansas Agriculture Department’s State Plant Board voted at a public hearing and special board meeting Feb. 20 to approve regulatory changes for application of dicamba herbicides on dicamba-tolerant crops in Arkansas.

The proposed new rule is applicable to all current (Engenia, Fexapan, and Xtendimax) and future dicamba products registered for in-crop use in Arkansas. Changes regarding dicamba use in the proposed rule include: • Restrictions on in-crop applications of dicamba from May 26 to Oct. 31 • A half-mile buffer zone required around all nondicamba crops whendicamba isapplied • A one-mile buffer zone for university and USDA research stations, certified organic crops and commercially grown specialty crops between April 16 and May 25 2

• Prohibiting the mixing of dicamba with glyphosate between April 16 and May 25 • Requiring applicators to provide proof of training to pesticide dealers prior to purchasing dicamba in-crop products The rule change will now be submitted to the Joint Budget Committee’s Administrative Rule and Regulation Review Subcommittee. If approved by this subcommittee, the proposed rule will be sentto the full Joint Budget Committee for review. If approved by the Joint Budget Committee, the new rule will be filed with the Secretary of State’s office and will become effective ten days after the filing date.

AG SAFETY WEEK Farm Bureaus across the country are making safety a top priority this spring through the Agricultural Safety Awareness Program (ASAP). As a part of ASAP, March 3-9 has been designated as Agricultural Safety Awareness Week.

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

After more than nine and a half hours of a public hearing and special called board meeting of the State Plant Board, a motion passed to enable dicamba for in-crop use through May 25. safety a priority on the farm.

For more information, visit the “Education” section of Arkansas Farm Bureau’s website, www.arfb.com.

RURAL BROADBAND BILL

This year’s theme, “Safety: Know Your Limits,” will highlight a different safety focus each day of the week.

Monday will focus on Emergency Preparedness; Tuesday, Livestock; Wednesday, Heat Stress and Hydration; Thursday, Roadway Safety; and Friday, Hearing Safety.

During this week and throughout the year, Arkansas Farm Bureau is encouraging farmers and ranchers to make

Senate Bill 150, filed by Sen. Breanne Davis of Russellville, was approved 98-0 in the House of Representatives Feb. 19 and approved 34-0 by the state Senate Feb. 12. Now the bill heads to Gov. Asa Hutchinson to be signed into law.

The bill amends the Telecommunications Regulatory Reform Act of 2013 and allows government entities — including cities, school districts and state agencies — to provide broadband either on their own, or in partnership with a private entity.

The bill will also allow, after public notice, municipalities and other entities to seek out grants or loans to build, lease or otherwise acquire land or buildings to deploy broadband service in unserved areas.

The bill amends the Telecommunications Regulatory Reform Act of 2013 and allows government entities — including cities, school districts and state agencies — to provide broadband either on their own, or in partnership with a private entity.

The bill will also allow, after public notice, municipalities and other entities to seek out grants or loans to build, lease or otherwise acquire land or buildings to deploy broadband service in unserved areas.

Some 200 farmers attended a recent Grain Bin Safety Program hosted by ArFB in Craighead County. Learn more about the program that was presented

by Mississippi Farm Bureau at http://bit.ly/ arfbgrainsafety.

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

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

Rice Rice futures have trended sharply lower over the past couple of weeks.

USDA’s data dump Feb. 8 didn’t do the rice market any favors. The annual crop production report showed an increase in harvested acres and yield.

For 2018 U.S. production is now estimated at 224.2 million cwt, which is up nearly 6 million cwt from the previous estimate and 26 percent from last year. The average yield is estimated at 7,692 lbs. per acre, which is 170 lbs. higher than the prior estimate and the second highest average yield on record. The increase is only partially offset by a 2 million cwt. increase in domestic use and a 1 million cwt. increase in exports.

The net result is an estimate of 47.1 million cwt in ending stocks for the 2018-19 marketing year, which is up 60 percent over the previous market year. USDA left the average farm price estimate unchanged at $11.60$12.60.

Taking a look at the charts, March rice has broken through several layers of resistance, including the September 2018 low of $10. The market is showing technical signs of bottoming, though. Export sales and shipment reports are still behind, but have been uninspiring. Positive developments are needed on the trade front to get this market moving in a different direction.

Cotton Cotton futures have been under pressure in recent weeks, breaking 4

through up trending support. The National Cotton Council released the results of their annual grower survey Feb. 9. According to the survey, U.S. farmers intend to plant 14.5 million acres of cotton this spring. Upland cotton acres are expected to rise 2.8 percent to 14.2 million, while ELS acres are expected to be up 6.3 percent to 264,000 acres.

The market is showing some signs of bottoming thanks to positive news coming out of trade talks with China. So far, December has held above support at the January low of 72.24 cents and is chopping along mostly sideways just above that level.

Soybeans New crop soybeans continue to trend higher, but recent chart action is worrisome. This market desperately needs to see some positive movement in the trade talks between the U.S. and China.

The USDA reports released Feb. 8 didn’t provide much for the market to chew on, and the market reaction was pretty muted. The expected carryover for the 2018-19 crop was lowered to 910 million bushels, down from 955 million, but that is still a lot of beans. The average yield was lowered to 51.6 bu/ac from 52.1 bu/ ac, but that was offset by a decrease in export expectations of 25 million bushels. Global 2018-19 ending stocks were lowered to 106.7 million tons, which is still 8.6 million tons larger than 2017-18 ending stocks.

USDA has the average on-farm price for 2018-19 pegged at $8.10 to $9.10, and the November contract is currently trading in the $9.50 area.

That means there could be a lot of downward potential for this market, depending on the size of the crop this year.

Corn The USDA reports were a mixed bag for corn. On the one

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

hand, production was cut more than expected, resulting in total production 14.4 billion bushels, usage was cut nearly as much. Feed usage was cut by 125 million bushels and ethanol use by 25 million bushels. Total domestic usage was down 165 million bushels. The net result of the report was only a slight decline in ending stocks to 1.735 billion bushels. While 2019 planting estimates haven’t been released at this point, the trade is expecting to see a large jump in acreage, which, when combined with these carryover stocks, could result in a bearish situation for corn prices. USDA currently has the average on-farm price pegged at $3.35-$3.85, and December prices are trading above that range.

Livestock Lean hog futures have been hit with a new wave of selling, and markets were down the daily limit in all nearby contracts on Thursday. April set a new contract low of $56.525. Weaker wholesale pork prices and soft cash hog fundamentals are pressuring the market from a fundamental perspective, while technical selling was also a factor. This is also a market that would benefit from a positive outcome from the U.S.-China trade talks.

Live cattle futures are trending sharply higher, with April challenging resistance at the contract high of $129.47. Good cash trade and another winter storm delaying marketings are supportive, however packer margins are narrowing and could become a concern.

EDITOR Maddison Stewart Stone maddison.stone@arfb.com