Farm Bureau Press for September 20

SEPTEMBER 20, 2019 • VOLUME 22 • ISSUE 19

Farm Bureau Press A PEEK INSIDE

ARFB TO HOST: HOW TO WIN AN ELECTION SEMINAR Arkansas Farm Bureau has joined with the Arkansas State Chamber of Commerce/Associated Industries of Arkansas to hold a two-day seminar called “How to Win an Election” October 22-23 in Little Rock.

County Farm Bureau leaders and others interested in attending should contact Jeff Pitchford in the Public Affairs and Government Relations department at 501-228-1625.

This unique and proven campaign management training seminar can help unlock the secrets to running a successful political campaign. This seminar teaches you how to evaluate the candidate and the electorate, build a campaign structure, raise money, enlist allies, create coalitions and get lastminute, election-day voter attention.

USDA Must End NRCS Abuses, page 2.

TO WIN AN

It was developed by American Farm Bureau, an organization noted for its understanding of the political process, with the help of professional political consultants and staff members of Democratic and Republican parties. The instructors are trained staff members of Farm Bureau, and the program will include a video recording, a case study and a computer simulation that allows you to test techniques, tools and methods.

ELECTION

To register, visit https://arfb.webconnex.com/HOWTOWINELECTION.

2019 Rice is Nice Recipe Contest page 3.

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A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

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ArFB President Veach | President Randy Veach (center) and his wife Thelma were recognized for their outstanding leadership to Arkansas Farm Bureau during Faulkner County Farm Bureau’s annual meeting Sept. 5 in Conway. County Farm Bureau president Chris Schaefers (left) presented the Veaches with a plaque for their unwavering dedication.

USDA MUST END NRCS ABU Farmers and ranchers are being denied due process as part of an abuse of discretion by the Natural Resources Conservation Service, according to a scathing ruling by the Court of Appeals for the Seventh Circuit. The ruling was highlighted in a letter from the American Farm Bureau Federation calling on Agriculture Secretary Sonny Perdue to enact much-needed reforms in the agency.

The letter focused on the case of an Indiana farm owned by David and Rita Boucher, and Mrs. Boucher’s 17-year saga of unfair treatment at the hands of the NRCS staff. The Bouchers removed nine trees on 2.8 acres and NRCS, in turn, demanded they plant 300 trees per acre as compensation.

Sevier County Farm Family | The Josh Morris Family of Gilliam was recognized at the Sevier County Farm Bureau annual meeting as the county Farm Family of the Year. County Farm Bureau president Bruce Jackson (left) presented the award.

Tossed Contest | Benton County Women’s Leadership Committee membe, Linda Simpson presented the third-place award to Lily Lubbess.

The award is sponsored by the committee as part of a new program called “TOSSED” that focuses on recycling trash into art.

The court found that NRCS wrongly accused the Bouchers of harming a non-existent wetland on their property but made no effort to correct the record even after the accusations were shown to be groundless. The NRCS judgment made the farm ineligible for a wide variety of government programs, creating a roadblock for the Bouchers to obtain the loans and crop insurance necessary to stay in operation.

“The USDA repeatedly failed to follow applicable law and agency standards,” the court wrote. “It disregarded compelling evidence showing that the acreage in question never qualified as wetlands that could have been converted illegally into croplands. And the agency has kept shifting its explanations for treating the acreage as converted wetlands.

The USDA’s treatment of the Bouchers’ acreage as converted wetlands easily qualifies as arbitrary, capricious, and an abuse of discretion.”

The Bouchers are not the only victims of NRCS regulatory abuse, as noted in the letter and as previously conveyed to USDA by AFBF. “The wrongs identified by the Seventh Circuit are systemic throughout NRCS and representative of the experience of countless farmers,” AFBF wrote. “We hope that you find this

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A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

ARFB SPONSORS 2019 RICE IS NICE CONTEST Sixteen-year-old Emily Gibson of Jonesboro won first place at the 2019 Rice is Nice Youth Cooking Contest with her Rice Chips recipe. The contest was held Sept. 17 at the Arkansas State Fair Grounds.

The contest was open to Arkansas students nine-18.

Contestants compete in one of two categories, main dish and party ideas, at the county level before advancing to the state level.

USES case as shocking and troubling as does the Seventh Circuit.

Other finalists include Emma Thurman of El Dorado, second place; Abby Berger of Weiner, third place and Maggie Hutton of Weiner, fourth place.

“USDA’s implementation of its conservation compliance programs transcends politics: the Bouchers’ battle began in the beginning of the Bush presidency and continued through the Obama and Trump administrations. The unanimous judges on the Seventh Circuit were appointed by Presidents Reagan, Clinton, and Obama. And the actions by USDA were not limited to a few individuals, but were endemic through all levels of review and appeal.”

AFBF is calling on Secretary Perdue to accept the Seventh Circuit decision and compensate Mrs. Boucher for costs incurred in her fight against the federal government. More broadly, the letter urges USDA to view its finalization of the Interim Final Rule as an opportunity to correct the problems identified in the ruling.

The letter explains, “In reality, affected farmers typically have been unable to challenge the agency’s decisions because they simply cannot afford to lose eligibility or the costs of a fruitless appeal. Generally, farmers follow the direction of the agency to avoid ineligibility instead of appealing.”

Additionally, AFBF is asking USDA to: • Retrain National Appeals Division judges and agency directors in how to provide a fair and balanced hearing; • Require USDA to provide the entire record or decisional documentation to the farmers at the time of alleged compliance violation; • Allow the farmer and his or her counsel to call NRCS technical staff as witnesses in the appeal; • Accept evidence provided by the farmer as true, absent substantial evidence to the contrary; and • Compensate the farmer for legal fees when the farmer wins an appeal – i.e., when the farmer is forced to incur costs as a result of an incorrect decision from NRCS.

2019 Rice is Nice Contest | (Above) Women’s Leadership Committee Chairwomen Donna Bemis (left) posed with first-place winner, Emily Gibson. (Below) 2019 Rice is Nice Contest contestants with Donna Bemis included (from left) Emma Thurmon, Emily Gibson, Maggie Hutton and Abby Berger.

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

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MARKET NEWS as of September 19, 2019 Contact Brandy Carroll 501-228-1268 brandy.carroll@arfb.com

ARC and PLC Enrollment Underway USDA has announced an enrollment period for the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs. Eligible producers can make an appointment with their Farm Service Agency office to sign up between September 3, 2019, and March 15, 2020, to enroll for 2019. Enrollment for 2020 will begin on October 7, 2019, meaning producers waiting until that date can sign-up for two years at once.

Texas A&M University has a decisionmaking tool that will help farmers analyze payment yield updates and expected payments for 2019 and 2020.

The tool can be found at https://www. afpc.tamu.edu.

Cotton In last week’s report, USDA cut the forecast for 2019 cotton production by 660,000 bales thanks to lower acreage and a lower average yield.

However, U.S. carryout was unchanged at 7.2 million bales as the export projection was cut by 700,000 bales.

The projected on-farm price for cotton for 19-20 was further lowered to an average range of 58-60 cents per pound. December cotton posted sharp gains in reaction to the report, but failed just above 63 cents and have been working lower this week.

Exports continue to be a worry in the cotton market, with commitments down 6% from a year ago. Last week’s export report was disappointing, with shipments down 27% from the fourweek average and a cancellation of 39,300 bales by China.

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Soybeans Soybean production was cut in the September reports, although maybe not as much as analysts were expecting. The September report pegged production 3.633 billion bushels on a yield of 47.9 bushels per acre. 19020 carryout was pegged at 640 million bushels, down from 755 million in the August report. The average on farm price was estimated to be $8.50, up a dime from the August report. November futures posted sharp gains last Thursday, in reaction to the report, but also on optimism on the trade front. News that China purchased U.S. beans and are reportedly planning to exempt U.S. soybeans from additional tariffs also gave the market a boost. The market has failed, however, to hold above the $9 level, and have begun to work back a bit lower. Strong chart support can be found at $8.50.

Milk USDA increased their 2019 milk production estimate by 1 billion pounds the September report, bringing total production to 218 billion pounds. The 2020 total is pegged at 221.1 billion pounds. On-farm price estimates were also raised. Class III prices are up to $16.45 per cwt for 2019, while the estimate for 2020 was up 50 cents to $17.05.

Rice The rice harvest is well underway across the country. USDA says 46% of the crop was harvested as of September 15. That total was 44% in Arkansas, slightly behind the 5-year average of 48%. The September crop production and WASDE reports held bullish news for rice. The 2019 production estimate was slashed by 8.8% from the August report, finally reflecting the lower acreage that everyone was expecting. USDA now says 2.477 million acres will be harvested in the U.S., 1.126 million in Arkansas. Production is now estimated to be 187 million cwt, on an average yield of 7,563 pounds per acre. That resulted in U.S. carryout for

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the marketing year being cut to 11.4 million cwt. and the average on-farm price being increased a dollar to $12 per cwt. November futures are trending higher, but will find resistance at $12.50. Trendline support starts near $12.15, with further support at the recent low of $11.84. Export demand has also been a supportive factor in recent weeks, with export commitments up 80% from this time last year. Sales last week totaled 81,800 metric tons, and Mexico was the top buyer. Shipments were also strong at 63,500 metric tons.

Cattle Live cattle futures have attempted to rally, as indicators show the market is oversold and optimism about a trade deal with China. However, futures continue to be capped by resistance at the huge gaps charted in reaction to the beef plant fire in August. That resistance starts at $106.22 ½ and the market has yet to close above that level. Seasonally weak demand is pressuring the wholesale beef market, but packer margins remain extremely strong.

Hogs Volatility in hog futures has been high in recent weeks. Cash markets continue to be weak. In the monthly supply/demand report, USDA cut their cash hog price forecast from $52 to $48. Pork cutouts are at 6-month lows.

However, there was renewed optimism in the market amid news that China purchased a significant amount of U.S. pork, the first sale of its kind since May. There is also news that China will exclude U.S. pork from new tariffs.

December futures gapped higher last week, and closed a chart gap between $69.95 and $70.27 ½, but were unable to hold above $70 and are working lower.

EDITOR Ashley Wallace ashley.wallace@arfb.com