JANUARY 25, 2019 • VOLUME 22 • ISSUE 2
Farm Bureau Press A PEAK INSIDE
STAY IN THE KNOW • ArFB’s YF&R and Collegiate Conference will be held Feb. 16-17 in Little Rock. With the theme “I am Arkansas Agriculture,” the conference will cover topics ranging from solar energy and record keeping to herd health and livestock marketing. Contact your county office to register by Feb. 1. • A public hearing date has been set for the proposed regulations that allow the use of dicamba in Arkansas on soybean and cotton varieties resistant to dicamba. The public hearing will be held Feb. 20 in Little Rock. Written public comments are also being accpeting now until Feb. 5. Comments can be submitted online at http://bit.ly/DicambaComments or can be mailed to: Attn: Pesticide Division, Arkansas State Plant Board, P.O. Box 1069, Little Rock, AR 72203. • Arkansas Grazing Lands Conference will be held March 7 in Hope and March 8 in Greenbrier. Featured topics are soil health, profitability and multi-species grazing. Learn more and register by visiting www. argrazinglandscoalition.org or by calling 501-944-7310
Gov. Asa Hutchinson was sworn in Jan. 15 for his second term as the 46th governor of Arkansas. Photo courtesy of the governor’s office.
ArFB Announces Support for Proposed Reorganization of Agriculture Department, page 2.
USDA to Reopen FSA Offices for Additional Services During Government Shutdown, page 3.
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ArFB SUPPORTS REORGANIZATION BILL ArFB announced its support for House Bill 1117, as written, a bill that would restructure the Arkansas Agriculture Department. HB 1117, part of a broader effort by Gov. Asa Hutchinson to streamline state government, has been referred to the House State Agencies Committee. ArFB actively opposed reorganization attempts in the last legislative session because it was in conflict with Farm Bureau policy. Gov. Hutchinson met with Farm Bureau’s board after the session to understand its concerns. He also spoke at the organization’s mid-summer Officers & Leaders conference held in Springdale, outlining his intentions with the reorganization effort. Farm Bureau’s policy, adopted in late November at its annual convention, called for any transition, transformation, or consolidation of the Arkansas Agriculture Department (AAD) to include the following: • No change in regulatory functions of the individual agencies within the AAD. • Special revenues collected within the individual agencies will be maintained and devoted to their intended purpose. • The State Plant Board, Livestock & Poultry Commission and Forestry Commission will retain the exact same prescribed statutory powers, authorities, duties, and functions as they have currently. • All employees will report to their department heads, and department heads will report to the Secretary of Agriculture. Individual agencies will implement the regulations of the independent
Mack Hayden (right) was recognized for his 20 years of service as a member of the Pope Co. FB board by county vice president Charles Metz at the organization’s January board meeting. •
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boards and commissions. There will be no change from the current administration and appointment process of the promotion boards. The Secretary of the AAD be appointed as a permanent member of the Pollution Control and Ecology Commission. The Arkansas Natural Resources Commission will be placed under the AAD. The Garland County Farm Bureau Women’s Leadership Committee worked with 4-H groups in the county to collect hats, scarves, gloves and mittens for Mountain Pine School District.
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The Arkansas Agriculture Department held a Local Conversations event Jan. 17 in Hermitage for farmers to network with school and food representatives to source new marketing opportunities for locally grown products. Learn more about the event by visiting http://bit.ly/LocalConvo.
USDA TO REOPEN FSA OFFICES U.S. Secretary of Agriculture Sonny Perdue announced that all Farm Service Agency (FSA) offices nationwide will reopen Jan. 24 to provide additional administrative services to farmers and ranchers during the lapse in federal funding. Certain FSA offices have been providing limited services for existing loans and tax documents since Jan. 17, and will continue to do so through Jan. 23. Additionally, Sec. Perdue announced that the deadline to apply for the Market Facilitation Program, which aids farmers harmed by unjustified retaliatory tariffs, has been extended to Feb. 14. The original deadline had been Jan. 15. For the first two full weeks under this operating plan (January 28 through Feb. 1 and Feb. 4 through February 8), FSA offices will be open Mondays through Fridays. In subsequent weeks, offices will be open three days a week, on Tuesdays, Wednesdays, and Thursdays if needed to provide the additional administrative services. Agricultural producers who have business with the agency can contact their FSA service center to make an appointment.
FSA TRANSACTIONS THAT WILL BE AVAILABLE: • Market Facilitation Program. • Marketing Assistance Loans. • Release of collateral warehouse receipts. • Direct and Guaranteed Farm Operating Loans, and Emergency Loans. • Service existing Conservation Reserve Program contracts. • Sugar Price Support Loans. • Dairy Margin Protection Program. • Agricultural Risk Coverage and Price Loss Coverage. • Livestock Forage Disaster. • Emergency Assistance Livestock, Honey Bees, and Farm-raised Fish Program. • Livestock Indemnity Program. • Noninsured Crop Disaster Assistance Program. • Tree Assistance Program. • Remaining Wildfires and Hurricanes Indemnity Program payments for applications already processed. TRANSACTIONS THAT WILL NOT BE AVAILABLE: • New Conservation Reserve Program contracts. • New Direct and Guaranteed Farm Ownership Loans. • Farm Storage Facility Loan Program. • New or in-process Wildfires and Hurricanes Indemnity Program applications. • Emergency Conservation Program. • Emergency Forest Rehabilitation Program. • Biomass Crop Assistance Program. • Grassroots Source Water Protection Program.
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MARKET NEWS as of January 24, 2019 Contact Brandy Carroll 501-228-1268 brandy.carroll@arfb.com Rice Rice futures trade has been choppy over the last few weeks, with very low volume. The March contract has found support at $10.34, for the time being, with additional support at the major low of $10.10 1/2. The market will find resistance at $10.93 and $11.26 1/2. Harvest pressure is keeping Asian prices under pressure currently, which will cause competition in export markets. Export sales and shipments are currently unreported as the government shutdown continues. The latest USDA Supply/Demand report for rice shows total 2018-19 U.S. supplies higher when compared to a year earlier, with ending stocks increasing from 29.4 million to 44.2 million cwt. That increase is not favorable for prices and lead to the estimated on farm price of $11.60 to $12.60. Soybeans The long-term trend for soybeans remains higher, but price movement has been more erratic on a shorterterm basis. The market seems optimistic about the reopening of trade with China. At this point, most of the negative fundamentals have been built in to the market, and there is the potential for some upside movement. March has resistance at the recent high of $9.27 3/4, and a close above that level would signal a retest of resistance at $9.41. Dry weather in Brazil could result in yield reductions there, but the crop was expected to be a record-breaker, so the market reaction will be limited. 4
Mike Richardson of Davis Angus Farm near Waldron in Scott County and Shaun Rhoades, staff chair of the county extension office, talk about the impacts of the unusually wet winter weather on ranchers in one of our recent videos. To see the video, visit http://bit.ly/WetWeatherWoes. As we move into spring, traders will be watching closely as acres shift between corn and soybeans. Corn Corn futures continue to build on long-term support, but are trading in a narrowing channel below resistance. March has been unable to challenge resistance at $3.84, while July needs to close above $4 in order to signal further gains are possible. Carryover weakness from the ethanol market is limiting the upside potential of corn. Low prices have led to thin to negative margins for ethanol producers, and stockpiles are up 2.7 percent from a year earlier. Also, domestic use of DDGs is declining due to price. Prices have gone up as ethanol production has declined, and DDGs are no longer as competitive compared to soybean meal as they once were, thanks to lower soy prices. Cotton The sharp selloff in cotton looks to be over, and the market is building on support at the recent lows. For March, that is at 70.65 cents. For newcrop December, that is 72.24 cents.
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This market needs to see some real movement in U.S.-Chinese trade talks. Mill buying appears to be supportive. There is currently no export data available as the shutdown continues. Livestock Live cattle futures set a new contract high on Jan. 16, but futures have since gapped lower. The market has been supported by higher cash prices and winter weather that is delaying the sell of some animals. However, the market had become overbought and was due a correction. The chart gap between $126.22 1/2 and $126.02 1/2 will be the first level of resistance for February There should be support around $125. Hog futures have been under pressure from demand concerns. Optimism about trade with China has underpinned the market, though. February is trading just above support near $125.
EDITOR Maddison Stewart Stone maddison.stone@arfb.com
100th ANNUALAMERICAN FARM BUREAU CONVENTION HIGHLIGHTS
ArFB members waiting in the audience to hear from President Donald Trump.
ArFB President Randy Veach representing Arkansas on stage at the convention.
President Donald Trump speaking to farmers and ranchers from across the county.
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Austin Kennon of Stone Co. represented Arkansas in the YF&R Discussion Meet.
Bo and Katie Mason (left) and Jana and Jon Carroll represented Monroe Co. FB at the convention.
ArFB Women’s Leadership Committee before the women’s voting session.
ArFB President Randy Veach (right) and Vice President Rich Hillman during the business session.
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ArFB state board member Dan Wright of Scott Co. speaking on agricultural issues at the business session.
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