Farm Bureau Press for November 6

NOVEMBER 6, 2020 • VOLUME 23 • ISSUE 22

Farm Bureau Press A PEEK INSIDE

ArFB ANNOUNCES $300,000 COMMITMENT TO FFA, 4-H

The Arkansas Farm Bureau announced a commitment of $300,000 to the FFA and 4-H over the next five years to support the development of new facilities and the growth of these youth leadership programs. Each organization will receive a total of $150,000.

The funding for these donations comes from the Arkansas Farm Bureau Foundation, a 501(c)(3) nonprofit created in 2016 to further understanding of agricultural and rural issues, and support the agriculture and rural communities through financial assistance for education, research, litigation and disaster relief.

Secretary Perdue Statement on DOL’s H2A Wage Rule, page 2

The five-year commitment to Arkansas FFA will support improvements at Camp Couchdale in Hot Springs and will include the naming of the auditorium at the Camp’s Fletcher Leadership Center in honor of Troy Buck, former Arkansas Farm Bureau board member and FFA leader, for his 55-year Continued on page 2

Extension Hosts Virtual Field Days Promoting Healthy Soils for Sustainable Cotton, page 3

FOLLOW US ONLINE 2020 Livestock Show | The Arkansas State Fair Sale of Champions was held Oct. 23 for youth participating in the 2020 livestock show. Only animals designated as champions of their respective market divisions were included in the premium sale. Arkansas Farm Bureau is proud to have led the way, providing more than $40,000 in premiums for participants who qualified for the sale.

Arkansas FarmBureau

ArFB

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

arfb1935

FFA AND 4H COMMITMENT SECRETARY PERDUE STATEMENT O Continued from page 1

career in agriculture education.

“Supporting youth in agriculture is at the heart of our mission and the mission of the Arkansas Farm Bureau Foundation,” said ArFB Executive Vice President Warren Carter. “Arkansas 4-H and FFA provide valuable experiences for young people that help prepare them for higher education and professional careers and they are critical for developing future leaders in our industry and the state.”

The $150,000 commitment to the Arkansas 4-H Foundation will be used for the construction of a pavilion at the C. A. Vines Arkansas 4-H Center located in Ferndale.

“The Rose Garden Pavilion will be a great functional addition to the Arkansas 4-H Vines Center and an added draw for potential guests,” said John Thomas, Arkansas 4-H Foundation development officer.

“This investment in our Phase 1 improvements at Camp Couchdale will not only serve FFA members and agriculture teachers for decades to come, but Arkansas Farm Bureau will use the naming rights to our auditorium as an opportunity to honor Mr. Troy Buck from Alpine for his 55-year commitment to teaching high school agriculture,” said Jennifer Cook, executive director of Arkansas FFA. Initial donations of $30,000 were made to each organization this month, with special check presentation ceremonies at the Arkansas Farm Bureau Center in Little Rock. The groups will receive $30,000 annually over the five-year span of the commitment.

U.S. Secretary of Agriculture Sonny Perdue praised the Department of Labor’s (DOL) new H2A Wage Rule, which delivers on President Trump’s promise to stabilize farm labor costs and reform the H-2A wage rate.

DOL’s final rule updates the methodology for determining the annual Adverse Effect Wage Rates (AEWRs) in the H-2A visa program. The new rule improves the consistency of the AEWRs, provides stronger protections for workers, and establishes better stability and predictability for employers in complying with their wage obligations.

For the vast majority of agricultural jobs, the rule stabilizes the wage rate through calendar year 2022 by using the average hourly wages for field and livestock workers (combined), as reported by the U.S. Department of Agriculture’s Farm Labor Survey published in November 2019, as the AEWRs for field and livestock worker occupations. Beginning in 2023, and annually thereafter, DOL will adjust these AEWRs by the percentage change in the Bureau of Labor Statistics’ (BLS) Employment Cost Index for wages and salaries for the preceding 12-month period.

For all other agricultural jobs, DOL will set and annually adjust the AEWRs using the average hourly wages for the occupational classification reported by the BLS Occupational Employment Statistics (OES) Survey program. These agricultural jobs are often supervisory or higher skilled/uniquely skilled, such as

EXTENSION HOSTS VIRTUAL FIELD HEALTHY SOILS FOR SUSTAINAB Arkansas cotton producers now have access to more information about soil health through a series of virtual field days provided by the University of Arkansas System Division of Agriculture and the Soil Health Institute (SHI), the nonprofit entity charged with safeguarding and enhancing the vitality and productivity of soils.

The videos include conversations with cotton growers and soil health specialists in Arkansas, said David Lamm, project manager of Healthy Soils for Sustainable Cotton. The series of six videos is publicly available on SHI’s YouTube Channel.

Pictured with Troy Buck (seated) are ArFB Senior Vice President of Organization and Member Programs Chuck Tucker (left), Retired Programs Manager for Arkansas Agricultural Education Marion Fletcher and ArFB Executive Vice President of Warren Carter (right).

2

Fryer and Bill Robertson, extension cotton agronomist for the Division of Agriculture, are featured in the Arkansas-based videos, some of which were filmed at Joe Whittenton’s farm in St. Francis County and Adam Chappell’s farm in Monroe County, both located in Arkansas’ Delta region.

Seven additional videos from a virtual field day in South Carolina also are available. The

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

ON DOL’S H2A WAGE RULE construction jobs, which pay higher wages than typical farming occupations.

The changes implemented in this rule also address stakeholder concerns about the potential for significant and unpredictable wage changes from year-to-year associated with DOL’s prior AEWR methodology, while ensuring better wage protections for United States workers similarly employed in higher-skilled agricultural jobs. More predictable wage adjustments in the H-2A program will help American farmers plan and budget for their workforce needs, and ensure that wages in the H-2A program keep pace with steadily increasing wages in the wider economy. By taking this action, DOL is protecting U.S. workers and helping farmers keep food on America’s tables.

DOL intends to issue a second final rule to finalize the remainder of the July 29, 2019, proposed rule that will govern other aspects of the certification of agricultural labor or services performed by H-2A workers, and enforcement of the contractual obligations applicable to employers of such nonimmigrant workers.

Donation Drive | Congratulations to Chloe Chavers from Lamar and Braden Payne from Clarksville for being selected as recipients of the 2020 Johnson Co. Farm Bureau Scholarship. Pictured (L-R) are Marty Wilkins, Johnson Co. Farm Bureau agency manager; Chloe Chavers; John Payne, accepting on behalf of grandson Braden Payne and Mark Morgan, Johnson Co. Farm Bureau president.

Arkansas’ current AEWR is $11.83 and will be the frozen wage through 2022.

The new rule will be final 45 days after its published in the federal register.

D DAYS PROMOTING BLE COTTON South Carolina field day includes videos on bulk density, soil temperature and general principles of regenerative agriculture.

Donation Drive | Franklin Co. Farm Bureau filled a need in the community with a donation drive to provide clothing for students in need. The office was able to donate money and clothing to Ozark, County Line and Charleston schools.

The virtual field day videos are part of the Healthy Soils for Sustainable Cotton project, which provides farmer-focused education and training events delivered by Soil Health Institute scientists, partnering with local soil health technical specialists and farmer mentors who have implemented successful soil health management systems. The project aims to increase the adoption of soil health management systems among cotton producers while documenting environmental and economic benefits.

Healthy Soils for Sustainable Cotton is supported through the generosity of the Wrangler® brand, the VF Corporation Foundation and the Walmart Foundation. For more information about the project and access to the video series, visit https:// soilhealthinstitute.org/soil-health-training/.

Peak’s Posse | Benton County Farm Bureau shows its strong support for insurance agent and pancreatic cancer survivor Mike Peake. Benton Co. Farm Bureau Agency Manager Doug Miller formed a “Peake’s Posse” team to join Mike’s Purple Stride fund-raising fight against pancreatic cancer.

To make a donation, visit https://secure.pancan.org/site/TR/ PurpleStride/PurpleStride?team_id=28158&pg=team&fr_ id=2074.

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

3

MARKET NEWS as of November 4, 2020 Contact Brandy Carroll 501-228-1268 brandy.carroll@arfb.com

Cattle Cattle futures have recovered significantly over the past week and a half. February live cattle set a new 4-month low last Monday before staging a sharp recovery by the end of the week. That low of $105.50 looks like the bottom for now. The rally has stalled out, though, at $111 and will need to break through that support to suggest further gains are possible. January feeders have been unable to challenge resistance at $135 on their rebound. They do have strong chart support in the form of a double bottom charted in late October near $124.25. Higher wholesale beef prices and tightening market-ready cattle supplies have been supportive, as have weaker corn prices.

Hogs The CME is launching new pork cutout futures contracts this week, and increasing volatility in pork prices could spark buying interest in that new market. Lean hog futures continue to work lower, with the February contract trading at 2-month lows. The market this week closed a chart gap left during the early September rally between $64.50 and $64.80. Some of the technical selling pressure could ease now that the bears have met their downside objective. Further losses in composite pork cutouts and cash hog prices are providing some fundamental selling pressure, though.

4

Corn Traders continue to focus on the size of the U.S. crop. USDA’s November Crop Report is due Nov. 10. Private estimates have traders expecting the new estimate to be down from the October total of 14.722 billion bushels. The recent pace of exports has traders expecting to see U.S. exports raised in the Supply/Demand report, too. Ethanol production continues to climb, which is supportive, but is still not to prepandemic levels. That could lead to a decrease in the ethanol production estimate on the supply/demand balance sheet at some point. Tight old-crop supplies in Brazil, a weaker dollar, and stronger crude-oil prices have all been supportive. The crop is now 82% harvested, well ahead of the 5-year average pace of 69%.

Technically, the December contract looks to have topped for now, but have found support at $3.93 for now.

On a rebound, the market will find resistance at the small gap charted last week between $4.15¼ and $4.15½. Above that is resistance at the recent high of $4.22¼.

Soybeans While soybean futures look toppy, selling pressure has been limited. Last week, January set a new high of $10.88 on Tuesday before selling off on Wednesday.

The market has yet to close below $10.50, though, suggesting there is still a lot supporting the market.

Harvest progress last week was disappointing, only topping the previous week by 4%. However, we now stand at 87% harvested nation-wide, compared with a 4-year average of 83%. Speculation is growing that USDA will lower their production estimate in next week’s production report. Private analysts are shaving a bushel or more off itsyield estimate, leaving a very tight supply/use ratio unless there are corresponding cuts to the Supply/ Demand balance sheet.

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

Cotton Cotton futures charted a huge key reversal after moving to new 9-month highs Wednesday. That high of 73.27 cents looks to be the top for the time being. Selling has been limited by optimism about Chinese demand and support from outside markets. Both weakness in the dollar and strength in crude oil are supportive for cotton futures.

Increasing COVID cases and new rounds of closures across Europe could hurt demand, though. The crop is now 52% harvested, and 32% of what is left in the field is rated poor to very poor. Arkansas farmers have harvested 75% of their crop, compared with a 5-year average of 88%. Texas still has 42% of its cotton in the field, and 50% of that is rated poor to very poor, suggesting that abandonment numbers might climb.

Rice Rice futures have been working lower this week after charting a bearish outside day last Friday.

There is little chart support for January above the October spike low of $12.05. The crop is mostly in the bin, with 96% of the crop harvested nationwide. That is only up 2 percentage points from last week, though, as rains in the Delta kept farmers out of the field. A sale of U.S. rice to China was confirmed last week, after many years of work

by USA Rice to open that market.

While this first sale was small, it is important to the US market to have access to the Chinese market, which is estimated to consume more than 146 million metric tons of rice this year, compared with 4.6 million metric tons consumed in the U.S.

EDITOR Ashley Wallace ashley.wallace@arfb.com