News Update
October 26, 2011
Ag Risk Management Seminar Set for Nov. 9 in Comanche
The Texas AgriLife Extension Service will conduct a free regional risk management seminar from 8:40 a.m.-3 p.m. Nov. 9 at the Comanche Community Center, 100 Indian Creek Drive in Comanche.
“2011 has been a real test of all Texas agricultural producers’ risk management plans and strategies,” said Whit Weems, AgriLife Extension agent in Erath County and a seminar coordinator. “The purpose of this seminar is to allow producers to examine their current risk vulnerabilities as well as possible future opportunities. Rather than the standard market outlook programs we usually have, this one will address the bigger picture issues of finances, marketing, legalities and the increased production risks many producers are now facing.”
Weems said the day’s topics will include marketing alternatives and considerations for local livestock producers, management lessons and strategies for cow-calf producers, crop and rainfall insurance alternatives, tax management and planning strategies, U.S. Department of Agriculture- Natural Resources Conservation Service (USDA-NRCS) technical assistance resources, overall farm and ranch insurance planning, and agricultural lending perspectives of farm and ranch financial business performance.
For additional information, including registration information, visit www.api-virtuallibrary.com/meetings_other_calendar.html.
NCBA Stays Firm on Farm Dust
Although rumors are circulating that refer to the Environmental Protection Agency (EPA) attempt to regulate farm dust as a myth, a hearing hosted by Chairman Ed Whitfield (R-KY) of the House Subcommittee on Energy and Power cleared up what many call profound misconceptions. Testifying on behalf of the National Cattlemen’s Beef Association (NCBA) was Steve Foglesong, immediate past president of the organization and a rancher from Astoria, Ill. Foglesong said ranchers are pleased EPA has decided not to propose to lower the standard for coarse particulate matter (dust) this year, but the issue is far from resolved.
He said EPA does not have a consistent track record of doing what it proposes. In fact, in 1996 EPA proposed to remove the dust standard altogether, only to bring it back in the final rule. In 2006, EPA proposed to exempt farm dust. That exemption also disappeared in the final rule. Foglesong said even if EPA retains the current dust standard, the opportunity remains for the agency to tighten it in the future. Unless Congress passes the Farm Dust Regulation Prevention Act, he said that threat remains. Chairman Whitfield said family farmers and ranchers need flexible, science-based regulations, rather than an EPA guessing game.
“EPA’s unprecedented wave of stringent and inflexible regulations pose a serious threat to the economy,” said Whitfield. “Now, this overly aggressive EPA has discussed focusing their efforts on family farms under the guise of revising the National Ambient Air Quality Standards for particulate matter. With record-high unemployment and deficits, it is beyond understanding as to why EPA would even think about regulating farm dust.”
Foglesong testified that the regulation of dust under the Clean Air Act (CAA) is supposed to be based on a finding by scientists of adverse health effects. Historically, he said, there has been no evidence of adverse health effects from farm dust at ambient levels. But EPA has decided to regulate it anyway. In 2006, EPA based its decision on the precautionary principle.
“That’s right, EPA’s dust regulation is not based on science but on caution,” said Foglesong. “In an effort to bring a little common sense back into the process, cattlemen believe the best solution is for Congress to pass the Farm Dust Regulation Prevention Act of 2011. That way regulatory decisions regarding dust will be left to state and local government instead of the federal one-size-fits-all approach.”
He cautioned that no one can be sure of the outcome of the rulemaking until it is final. Foglesong still worries about the future since the CAA requires the standard come under scrutiny every five years. He said the only way to provide certainty to farmers and ranchers is for Congress to pass the Farm Dust Regulation Prevention Act.
“The fact is, farmers and ranchers want and need certainty about this issue. Regulatory uncertainty is unnecessary and unproductive,” said Foglesong. “If EPA follows through and does not revise the dust standard, such an action would only provide us with certainty for five years. It provides no relief to those producers who are spending more than $1,000 per day on dust control measures right now. We need immediate, permanent relief from federal dust regulation on farms. And cattlemen believe the best way to achieve that is by passing the Farm Dust Regulation Prevention Act.”
Beginning Farmer Bill Introduced in Congress for
Inclusion in New Farm Bill
House and Senate members Tuesday announced the introduction of the Beginning Farmer and Rancher Opportunity Act of 2011 [H.R. 3236], a comprehensive bill intended for inclusion in the 2012 Farm Bill that highlights federal programs that help support economic opportunities for young and beginning farmers and ranchers. The bill addresses many of the barriers that new agriculture entrepreneurs face, such as limited access to land and markets, hyper land price inflation, high input costs and a lack of sufficient support networks.
The Beginning Farmer Rancher Opportunity Act is a bipartisan and bicameral bill introduced in the House by Representatives Tim Walz (D-MN) and Jeff Fortenberry (R-NE), and an identical companion bill will be introduced by Senator Tom Harkin (D-IA) and other members of the Senate Agriculture Committee next week once they return from their current recess. There are additional members of both houses that have indicated their support for the bill and will likely be signing on as co-sponsors shortly after introduction.
The bill is a result of strategic collaboration among many individuals and farmer advocacy organizations, including the National Sustainable Agriculture Coalition (NSAC) and many of its member groups, including Land Stewardship Project, Center for Rural Affairs, National Young Farmers’ Coalition, California FarmLink and Michigan Organic Food and Farm Alliance, among others. During the past two years, NSAC and its allies have met with numerous officials at various USDA agencies, many legislative offices both in-district and on Capitol Hill, and with other farm and membership groups to solicit input on the bill’s provisions in order to make them as strong and targeted as possible.
The bill includes provisions that cut across six titles of the Farm Bill, including proposals that address conservation program set asides and incentives, access to credit, rural development, research and extension, and access to crop insurance and risk management.
Some of the specific proposals that are included in the Beginning Farmer bill are:
- Individual Development Accounts and FSA Microloans;
- Loans and set asides for conservation programs;
- Beginning Farmer and Rancher Development Program; and<
- Agricultural opportunities for military veterans.
With the new Farm Bill, Congress has an opportunity to expand and improve a comprehensive beginning farmer and rancher initiative that breaks down barriers to entry and gives real support to ensure the effective start-up and success of new small and mid-scale producers across the country.
For more information on the Beginning Farmer and Rancher Act, visit NSAC’s website.
Beef Herd Continues to Shrink Amid Drought,
Soaring Feed Costs
Drought in the Southern Plains and several years of high feed prices have discouraged beef producers enough that the U.S. cattle herd continues to shrink, Purdue Extension agricultural economist Chris Hurt says.
Since 2007, beef cow numbers have dropped by 12%, and the number of heifers retained for replacements is down 5%, Hurt said. Cow slaughter has remained high this year, ensuring even smaller cow numbers in 2012.
While less beef is being produced in the United States, more is being exported. Hurt said beef exports would be up about 19% this year.
“A weak dollar and strong economic growth in developing countries stimulates demand,” he said. “Beef exports are expected to be a record 11% of total U.S. production next year. This is a sharp recovery from 2004 when exports represented just 2% of production after discovery of a BSE (bovine spongiform encephalopathy) cow caused many world buyers to drop U.S. beef. Imports also are down 5% this year, meaning the U.S. will be a net exporter of beef — an unusual situation.”
The smaller production numbers, higher exports and lower imports mean the amount of beef available for each person in the United States will be down about 6% in 2012.
“Since feed prices began to escalate in 2007, the per-capita supply of beef available to Americans is down 17%,” Hurt said. “This means in 2012 there will only be 54.3 pounds of beef available per person, compared with 65.2 pounds in 2007.”
Less supply and strong demand mean beef prices are likely to soar in the coming year. In 2007 finished steer prices averaged $92 per hundredweight (cwt.). The 2011 average will be about $113 per cwt., and in 2012 Hurt expects prices to surge to new records above $120.
While drought and high feed costs are likely to stifle any herd expansion plans for now, Hurt said the outlook for cow-calf operators appears positive in coming years.
“The breeding herd is not likely to begin expansion until the drought in the Southern Plains fades,” he said. “If crop yields return to normal in 2012, prices for major feedstuffs and forages will be lower, and finished cattle prices will be very high. This is a combination that can add quickly to calf prices by the fall of 2012. The start of heifer retention in late 2012 would reduce beef supplies even more and be the foundation for even higher cattle prices in 2013.”
Hurt said low beef production likely would keep calf prices high through at least 2015.
“All of this favors Midwestern cow-calf operations that have reasonable forage supplies this year and can hold cows for the longer-run opportunities,” he said.
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