Farm Bureau Press - May 30, 2014

In Farm BureauCritical habitat issues

More than 30 counties and almost half the land in Arkansas (most of it privately owned) would be affected if the U.S. Fish and Wildlife Service moves ahead with its proposal to designate 769 river miles in the state as critical habitat for the Neosho mucket and rabbitsfoot mussel, Arkansas Farm Bureau President Randy Veach and state board member Gene Pharr told the U.S. House of Representatives’ Natural Resources Committee at a field hearing in Batesville May 14.

In the potentially affected area, “Arkan-sas has more than 21,000 family farms, 7.4 million acres of farmland and more than $2.9 billion worth of agricultural income, which accounts for a half million jobs,” Veach said. “Farmers in these areas produce more than 78 million broiler chickens, more than 6 million laying hens, 606,000 acres of rice, 780,000 acres of soy-beans and 8.6 million acres of forestland.”

Veach took issue with the USFWS’ “incremental approach” to analyzing the

economic impact of critical habitat desig-nations, versus a “full analysis.” Using an incremental approach, the federal govern-ment only has to consider the direct cost to government agencies, instead of consider-ing costs to all stakeholders.

“A process that allows a full and com-plete economic impact study before critical habitat areas are declared would, clearly, be a better approach,” he said.

Pharr said farmers in the state worry

that if the critical habitat designations go through, they will lead to unwarranted lawsuits and litigation against private landowners, with little risk placed on those who file the lawsuits because the federal government picks up the legal fees for those filing them.

In his opening statement at the hear-ing, House Natural Resources Committee Chairman Doc Hastings noted that the concerns expressed by Arkansas land-

May 30, 2014 • Vol. 17, No. 11A

Publ

icat

ion

of A

rkan

sas

Farm

Bur

eau

Fede

ratio

n

www.arfb.com

On May 20, Ann Mills (left), NRCS’s deputy undersecretary for natural resources and environ-ment, and Nancy Stoner (right), EPA’s acting assis-tant administrator for wa-ter, toured the Stuttgart Discovery Farm of ArFB state board member Terry Dabbs where researchers are monitoring edge-of-field runoff and water quality. The tour was part of the Mississippi River/Gulf of Mexico Watershed Nutrient Task Force an-nual meeting held in Little Rock.

KEI

TH S

UTT

ON

pho

toST

EVE

EDD

ING

TON

pho

toOn May 16, Arkansas

Farm Bureau President Randy Veach of Manila

spoke on the state of Arkansas’ agricultural

economy to Leader-ship Arkansas, the Ar-kansas State Chamber of Commerce’s leader-

ship development class. The group was holding its northeast Arkansas agriculture session in Jonesboro.

owners about the Endangered Spe-cies Act are shared

by property owners across the country. As such, he called for legislation that would require more transparency for the true costs of listings and habitat designations and would limit listings and habitat desig-nations to areas where their costs do not outweigh their benefits.

Commodity Division meetingsJune is the month for ArFB’s summer

commodity division meetings, where Farm Bureau leaders can hear the latest industry news pertaining to their segment of agri-culture. The schedule is as follows. (The times noted do not include registration.) • June 3: Aquaculture, conference call, 2 p.m. • June 3: Beef Cattle, Equine, Poultry, Swine, Lake Point Conference Center, Russellville, 9:30 a.m. • June 5: Dairy, conference call, 8:30 a.m. • June 5: Cotton, conference call, 1 p.m. • June 6: Specialty Crops, Vegetable Research Station, Kibler (Alma), 9:30 a.m. • June 18: Forestry, Farm Bureau Center board room, Little Rock, 10 a.m. • June 26: Rice, Rice Research & Extension Center, Stuttgart, 9 a.m. • July 1: Soybean, Wheat & Feed Grains, Lon Mann Research Station, Marianna, 10 a.m.

For more information about any of these meetings, or to be included in the conference calls, please contact [email protected].

In ArkansasArkansas cotton crop shrinking

Last year, 39 cotton gins operated across Arkansas, combing the seeds out of the

state’s cotton crop. That’s a steep drop from 2000, when 86 gins were humming across the Natural State.

The decline in the number of gins is one of the more visible signs of the overall shrinkage of the cotton crop, not only in Arkansas but across the Mid-South. How-ever, the reason for this decline has less to do with the cotton crop itself and more to do with the success of two other crops — corn and soybeans — that have taken a bite out of cotton acreage.

“Both these crops have captured cotton acres, and producers have found these crops to be extremely profitable from both a price and a yield standpoint,” said Scott Stiles, an extension economist with the University of Arkansas System Division of Agriculture. “There are a number of fac-tors behind the shift away from cotton, but profitability and ease of management for competing crops are the biggest drivers.”

Last year, cotton production in Arkan-sas dropped below 300,000 acres, breaking the previous record low of 320,000 acres set in 1983. Together, the five Midsouth states — Arkansas, Louisiana, Mississippi, Missouri and Tennessee — produced 1.7 million acres in 2013, down from 3.9 mil-lion acres in 2000.

ElsewhereNew era in conservation

On May 27, U.S. Agriculture Secretary

KEI

TH S

UTT

ON

pho

to

Students at Gardner Magnet School in Hot Springs had the opportunity to learn about horses, donkeys, rabbits, cows, chickens and other farm ani-mals as part of Arkansas Agriculture Day. Members of the Garland Co. FB Women’s Committee sponsored and ran the event with assistance from several mentor students and local farmers and ranchers.

STEV

E ST

RO

H p

hoto

Matt King, Arkansas Farm Bureau’s director of market information and economics, was guest speaker at Monroe Co. FB’s May 12 board meet-ing in Clarendon. King was on hand to share information from the USDA’s latest agricultural supply and de-mand estimates report with county board members as part of ArFB’s market update webinar.

MIL

LER

CO

. FB

pho

to

Ashley Nailling (center), a senior at Arkansas High School in Texar-kana, received a $1,000 scholarship presented by Miller Co. FB Women’s Committee members Nedra Turney (left) and Barbara Sutton. Ashley is the daughter of Mark and Dawn Santifer and granddaughter of Charles Santifer, all of whom served on the Miller Co. FB board.

KEI

TH S

UTT

ON

pho

to

Fried catfish and all the fixings were served to guests who attended Pope Co. FB’s Measure the Candidates meeting in Russellville May 12. The dinner was cooked by (left to right) agency manager Dave Palfreeman and agents Marty McDaniel, Chase Smith, Rick Adkins, Mark Johnson and Richard Pierce. Several candidates for county offices spoke at the meeting.

Tom Vilsack joined Senate Agriculture Committee Chairwoman Debbie Stabenow to launch a new era in American conser-vation efforts with an historic focus on public/private partnership. Vilsack made the announcement in Bay City, Mich.

The Regional Conservation Partner-ship Program will competitively award funds to conservation projects designed by local partners specifically for their region. Eligible partners include private compa-nies, universities, nonprofit organizations, local and tribal governments and others joining with agricultural and conservation organizations, farmers and ranchers to invest money, manpower and materials to their proposed initiatives.

With participating partners invest-ing along with the department, the U.S. Department of Agriculture’s $1.2 billion in funding over the life of the five-year program can leverage an additional $1.2 billion from partners for a total of $2.4 billion for conservation. A total of $400 million in USDA funding will be avail-able the first year. Through RCPP, partners propose conservation projects to improve soil health, water quality and water use efficiency, wildlife habitat and other related natural resources on private lands.

USDA is now accepting proposals for this program. Pre-proposals are due July 14, and full proposals are due Sept. 26. For more information, visit www.nrcs.usda.gov/GetStarted or your local USDA service center.

Farmers’ markets growGrowth in the number of U.S. farm-

ers markets continued last year, and the markets are adapting to new locations and innovative formats to meet consumer needs. According to the USDA, there were 8,144 farmers markets in 2013, an increase of 3.6 percent from 2012. The rapid growth can be attributed to several factors, includ-ing consumer perceptions about superior freshness and quality, the ability to learn about farming practices and a desire to support local businesses and farmers.

Rice and ducksThere’s no doubt that rice, waterfowl

and wetland habitats work cohesively to form a perfect ecosystem, and a recently published report puts a monetary value on those existing rice lands. On May 6, the USA Rice Federation and Ducks Unlim-ited hosted a news conference at the U.S. Department of Agriculture to introduce the results of the report authored by DU scientists for The Rice Foundation. The study found that the cost of attempting to replace rice lands with natural wetland habitat would exceed $3.5 billion.

Dr. Mark Petrie, assistant director for conservation planning for DU and lead scientist on the report, said, “The bottom

line is, without the presence of working rice lands, there would be no waterfowl habitat to speak of in the U.S.”

Unfortunately for waterfowl and rice farmers alike, the country’s three main rice-producing regions all face challenges that relate to keeping rice on the land. Water supplies for rice production are under increasing pressure in all areas, and many rice farmers may be forced to adopt practices that provide far fewer benefits for ducks and geese.

“We applaud the many rice producers who integrate extra conservation measures into their rice production to maintain water quality and provide much-needed waterfowl habitat,” added Jason Weller, chief of the USDA Natural Resources Conservation Service. “The partnership between DU, USA Rice, and USDA offers increased technical and financial assistance to help producers accomplish these goals on their land.”

Because of the significance of rice lands for waterfowl habitat, the two groups formed the USA Rice-DU Stewardship Partnership in 2013 to advocate for sound agriculture- and conservation-related policies and to promote the important ecosystem benefits of rice agriculture.

EditorKeith [email protected]

FILE

pho

to

A yearly beekeeper survey released May 15 showed fewer colony losses occurred in the U.S. during winter 2013-14 than in recent years, but beekeepers say losses remain too high. Total bee colony losses were 23.2 percent nationwide. That’s above the 18.9 percent beekeepers say is acceptable for their economic sustainability, but far less than the 30.5 percent loss in 2012-13.

KEI

TH S

UTT

ON

pho

to

At a special luncheon May 27 in Conway, member service represen-tatives (left to right) Melinda Turner, Julie Johnston, Janet Jordan, Christy Webb, Anna Johnson, Patty Shelman and Candee Tipton with Faulkner Co. FB were recognized for exceptional service provided to Farm Bureau members following the April tornado in Mayflower and Vilonia.

In the MarketAs of May 29, 2014

Ukraine grain situation improvesJust a few weeks ago, we were talk-

ing about July wheat prices testing resistance near $7.50, but now we are asking ourselves, “When will the bleeding stop?” July wheat has lost more than a dollar per bushel over the last two weeks, and we are now asking, “Will wheat test support near $6?” Before you begin harvesting wheat in the next couple of weeks, you very well could see wheat with a five in front of it. So what happened to wheat prices?

The recent run in wheat prices was driven by supply concern, particu-larly in Ukraine. The unrest in the region had some concerned about the effect this could have on the countries’ grain supplies. In the last few weeks, private forecasts indicated Ukrainian farmers will grow a sig-nificant quantity of wheat, and that wheat will be able to reach the export market. With this threat moved off the front burner, traders then began to focus on the new USDA report that shows, despite a global reduc-tion in wheat production, supplies continue to exceed demand, caus-ing a continued build-up in global supplies. The recent increase in wheat relative to other feed grains has pushed wheat out of feed rations, thus lowering demand. Given the current outlook, producers should consider pricing remaining wheat to avoid additional losses in the market

Cotton prices, much like wheat, have seen sharp declines in recent weeks. Since the USDA released its 2014-15 forecast for cotton, the December contract has declined almost 6 cents. While the USDA

forecast showed lower stocks than the National Cotton Council esti-mate in February, traders were very concerned about U.S. stocks increas-ing to 3.9 million bales. Then, late last week, we saw rain finally arrive to major growing areas in Texas. Those rains continued this week and are adding additional pressure to this market, as growers now will have enough moisture to plant a crop. While there is still a lot of time before a crop is made, traders finally have something to be optimistic about.

REAP program to continue with a few changes

The 2012 farm bill will continue to fund a very successful cost-share program known as REAP (Renew-able Energy for America Program). REAP is a 25-percent cost-share program that will pay for a host of re-newable energy or energy efficiency upgrades on the farm and in other rural businesses. Farm Bureau has been very successful in the past at helping its members get these grants, as we have seen more than $2 million dollars in cost-share money paid to growers during the past four years.

REAP grants have been paid for poultry-house upgrades, irrigation upgrades, grain dryers and refrigera-tion units, just to name a few. The new program announced last week will change the funding method somewhat in that the USDA will no

longer administer a national pool. Instead, states will administer the program locally. This is good news for Arkansas, as we were not as suc-cessful at getting money from the national pool as other states. We will now have somewhere around $800,000 available to Arkansas farm-ers. Rules are still being tweaked for the new program. Watch for more information in coming weeks.

Soybeans remain strongThe soybean market continues to

focus on strong demand, which is supporting prices. While corn, wheat and cotton have seen sharp sell-offs the past few weeks, soybeans remain within 25 cents of recent highs. This market continues to look at the near-term demand picture where stocks are going to be historically tight at some point in the near future. The market will move its focus to next year. At that point, prices will fall sharply. (Remember the corn market last year.) Corn prices held close to $6 through most of the spring and into June. Even the December 2014 corn contract was around $5.80 in June 2013. When the market began to see the potential of the 2013 crop, prices fell like a rock and lost more than 25 percent of their value. The soybean market is set up for a similar situation. A 25-percent decline in soybeans is $9.37. Soybeans may not go that low this fall, but it’s some-thing to think about.

CONTACT

• Brandy Carroll 501-228-1268, [email protected]

• Bruce Tencleve 501-228-1856, [email protected]

• Matt King 501-228-1297, [email protected]