policy

Farming Business Under DOJ & USDA Review


The Departments of Justice and Agriculture are holding their final workshop to discuss competition and regulatory issues in the agriculture industry. This final workshop will focus on margins.

According to the DOJ

This workshop will look at the discrepancies between the prices received by farmers and the prices paid by consumers. As a concluding event, discussions from previous workshops will be incorporated into the analysis of agriculture markets nationally.

This all day event wraps up a series of workshops that began in March of 2010. The four previous workshops covered Issues of Concern to Farmers, the Poultry Industry, the Dairy Industry, and the Livestock Industry.

DairyCast 0394 - Year End Economic Review from American Farm Bureau Federation Economist

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mp3DairyCast 0394 Show Notes:
  • Bob Young, Chief Economist for the American Farm Bureau Federation, discusses the impact of recent actions in Washington on the agricultural economy and the future of the industry.

Dairies Are Not Riding Agricultural Profit Wave


While other agricultural products are doing well for growers, U.S. dairy farmers are not doing as well. Feed prices combined with an over supply of milk products are pushing prices and profits down.

Dairy farmers expanded herds following the 70 percent jump in prices to a record in 2007, just before the U.S. began its longest recession since before World War II and unemployment rose to the highest level in a quarter century. Weaker demand was compounded by this year’s drought, floods or freezing weather from Canada to Kazakhstan that ruined crops and boosted competition for U.S. grain that dairies require.

It is anticipated that there will be some dairy operations that will fail in the coming months. It is also believed that the next year will continue to be rough on dairy producers because of continued market pressures from animal feed corn.

Corn futures have risen 48 percent since the end of June, the biggest gain in the Thomson Reuters/Jefferies CRB Index of 19 raw materials after sugar. The U.S. Department of Agriculture cut its estimate for the crop on Nov. 9 for a third straight month because of flooding in Iowa and Missouri and hot, dry weather from Illinois to Ohio.

Issues With Corn As Food Vs Fuel In 2011?


Corn production and demand are coming together to increase corn prices. This is great for corn growers but not great for those that depend on corn for animal feed. Adding ethanol into the mix again put corn in the middle of the food versus fuel debate.

Ethanol is consuming corn at a rate that is only 10 percent less than that of livestock and poultry demand. And more than one bushel of corn out of three produced in the US will be converted to ethanol in the current marketing year. That is going to cause concern about the amount of corn we will produce and whether it will be enough to meet demand with minimal rationing. And that causes concern for the traders.

Dr. Robert Wisner, University Professor Emeritus at Iowa State University, states "Corn supplies will be tight and some rationing of demand likely will be needed in the year ahead." This is not a great situation for those in animal agriculture without hedges and other risk mitigation actions in play.

What Does The Growing National Debt Mean To Dairymen?


The US National debt continues to grow. Progressive Dairyman highlights the looming issues of this continued growth and how the debt will impact all citizens.

 

One of the biggest problems about the current fiscal situation is that foreign countries control a large portion of the debt, leaving the U.S. in a precarious position. Eventually the federal debt may get so high that the U.S. would be seen as a bad credit risk.

What is needed to tackle the issue? Higher taxes, cutbacks in programs, and serious leadership.

 

Tough decisions will need to be made for cutting spending but also to raise revenue – meaning taxes. Without considering taxes somewhere, it is unrealistic that the federal budget can be balanced.

Is there leadership out there to take on the issue before the ability to execute on viable options disappear?

DairyCast 0390 - Watching Wisconsin Livestock Traceability Efforts

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mp3DairyCast 0390 Show Notes:

DairyCast 0389 - New Dairy Industry Organization In Development Stage

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DairyCast update for October 8, 2010, Why Are Regulators Taking Aim At Animal Health Products?

Are you planning to attend the National FFA Convention, October 20-23, 2010 in Indianapolis, Indiana?

DairyCast 0387 - What Are The Tax Considerations And Immediate Implications?

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mp3DairyCast 0387 Show Notes:
  • Additional immediate deductions for equipment investments along with enterprise express reporting provisions can be of great value to operations, but as Ag Law Specialist at Iowa State Roger McEowen tells Eric Atkinson, some elements require immediate action.

DairyCast 0384 - Big Boys Probably Won't Play Together Well On Farm Bill Debate

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mp3DairyCast 0384 Show Notes:
  • Farm Bill debate will likely be as partisan as all other legislative battles this term, according to Sara Wyant from Agri-Pulse.
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