Farm Bureau Press | January 15

JANUARY 15, 2021 | VOLUME 24 | ISSUE 1

Farm Bureau Press A PEEK INSIDE

ArFB ANNOUNCES PROMOTIONS IN OMP DEPARTMENT Arkansas Farm Bureau Federation’s Organization and Member Programs department announced promotions for four members of its staff

Justin Reynolds

Justin Reynolds has been promoted to Director of Organization and Member Programs at Arkansas Farm Bureau. In his new role, Reynolds will assist with supervision and direction for the organization’s district directors, who work with the county Farm Bureaus to implement legislative, leadership and agricultural outreach programming. He will also coordinate work with the Women’s Leadership Committee, the Young Farmers & Ranchers Committee, and the eight Collegiate Farm Bureau chapters in Arkansas.

CRP General Signup Open, Ends February 12, page 2

“I’m honored and excited to take on this expanded role,” said Reynolds. “I look forward to working with Arkansas Farm Bureau members and county leaders to help the organization grow and continue our important grassroots work on behalf of Arkansas agriculture.”

Reynolds has been with Arkansas Farm Bureau since 2006, serving as district director for the 13-county South central district, including Perry, Garland, Saline, Hot Spring, Grant, Clark, Dallas, Cleveland, Ouachita, Calhoun, Bradley, Columbia and Union counties.

He previously spent three years with the Dairy Farmers of America in Sulphur Springs, Texas.

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A native of Magnolia, Reynolds holds undergraduate and graduate degrees from Southern Arkansas University. He and his wife Jennifer have a 5-year-old daughter, Emory.

Matt Jackson, of Morrilton, was promoted Continued on page 2

ArFB Names Bailey as Director of Commodity and Regulatory Affairs Department, page 3

Matt Jackson

Arkansas FarmBureau

ArFB

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

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UPDATES FOR OMP DEPARTMENT Continued from page 1

to Director of Education and Outreach for the organization. In this role, he will be responsible for coordination and implementation of education programs for the organization. Additionally, he will work closely with FFA, 4-H and vocational agriculture programs in the state. Jackson joined ArFB as Safety Coordinator in 2008. He is a graduate of Bismarck High School and Southern Arkansas University. He and his wife Stephanie have two children, Addison and Easton.

Jason Kaufman, also of Morrilton, was promoted to Director of the Northcentral District. His responsibilities include serving as liaison between county Farm Bureaus and the Federation in the 13 counties in his district. He also provides assistance in the development, implementation, coordination and Jason Kaufman evaluation of programs and activities in the Northcentral District. Kaufman most recently assisted Jackson as Education Coordinator and joined the organization in 2011 as Safety Coordinator. He is a graduate of Wonderview High School and the University of Arkansas. He and his wife Jane have two sons, Noah and Bo. Jeremy Wesson, of Searcy, was promoted to Senior Director for the Northeast District. He joined Arkansas Farm Bureau in 2000. Like Kaufman, he serves as liaison between the state organization and the 12 counties in his district. Wesson is a graduate of Newport High School and earned a Bachelor’s degree in Jeremy Wesson Agriculture from Arkansas State University. He is married to Melissa and has two adult children, Jessica and Will, and a stepson, Conley Branscum.

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CRP GENERAL SIGNUP OPEN, END Agricultural producers and private landowners interested in the Conservation Reserve Program (CRP) can sign up for the popular program through Feb. 12. The competitive program, administered by USDA’s Farm Service Agency (FSA), provides annual rental payments for land devoted to conservation purposes.

“This signup for the Conservation Reserve Program gives producers and landowners an opportunity to enroll for the first time or continue their participation for another term,” said FSA Administrator Richard Fordyce. “This program encourages conservation on sensitive lands or low-yielding acres, which provides tremendous benefits for stewardship of our natural resources and wildlife.”

Through CRP, farmers and ranchers establish long-term, resource-conserving plant species, such as approved grasses or trees, to control soil erosion, improve water quality and enhance wildlife habitat on cropland. Farmers and ranchers who participate in CRP help provide numerous benefits to their local region and the nation’s environment and economy. CRP general signup is held annually and is competitive; general signup includes increased opportunities for wildlife habitat enrollment through the State Acres For Wildlife Enhancement (SAFE) initiative.

New cropland offered in the program must have been planted

SECOND ROUND OF PPP NOW AC The second $284 billion Paycheck Protection Program (PPP), which will offer more forgivable loans designed to soften job losses from the pandemic, is accepting applications.

Initially, only community financial institutions will be able to make first draw PPP loans on Jan. 11 and second draw PPP loans on Jan. 13, according to the U.S. Small Business Administration and Treasury Department.

The new PPP will open to all participating lenders “shortly thereafter,” and the loans will cover job retention and certain other expenses through March 31, the agencies said.

Certain existing PPP borrowers can apply for a second draw PPP loan. To qualify, businesses must have previously received a first draw PPP loan; will or have used the full amount only for authorized uses; have no more than 300 employees; and demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

PPP updates include that: • Borrowers can set their PPP loan’s covered period to be any length between eight and 24 weeks; • Additional expenses, including operations expenditures, property damage costs, supplier costs and worker protection expenditures will be covered;

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DS FEBRUARY 12 for four out of six crop years from 2012 to 2017. Additionally, producers with land already enrolled but expiring on Sept. 30, can re-enroll this year. The acreage offered by producers and landowners is evaluated competitively; accepted offers will begin Oct. 1.

Signed into law in 1985, CRP is one of the largest private-lands conservation programs in the U.S. The program marked its 35year anniversary in December 2020. Program successes include: • Preventing more than 9 billion tons of soil from eroding, which is enough soil to fill 600 million dump trucks.

• Reducing nitrogen and phosphorous runoff relative to annually tilled cropland by 95% and 85%, respectively.

• Sequestering an annual average of 49 million tons of greenhouse gases, equal to taking 9 million cars off the road.

• Creating more than 3 million acres of restored wetlands while protecting more than 175,000 stream miles with riparian forest and grass buffers, which is enough to go around the world seven times.

• Benefiting bees and other pollinators and increasing populations of ducks, pheasants, turkey, bobwhite quail, prairie chickens, grasshopper sparrows, and many other birds.

More information can be found at farmers.gov/coronavirus.

CCEPTING APPLICATIONS • Eligibility has expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations; • The new program provides greater flexibility for seasonal employees; and • Certain existing PPP borrowers can request to modify their first draw PPP loan amount.

“SBA will also employ community financial institutions to ensure that every small business in our state will have access to the resources they need to face the challenges caused by the pandemic and thrive in 2021. As SBA works to continue building and supporting this approved relief legislation, please sign up for our emails for the most up-to-date information on PPP and other COVID-19 funding options at sba.gov/updates,” said SBA Arkansas District Director Edward Haddock.

SBA Administrator Jovita Carranza said the PPP “served as an economic lifeline to millions of small businesses and their employees when they needed it most.”

“Today’s guidance builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to ensure their path to recovery,” he said.

ArFB NAMES BAILEY AS DIRECTOR OF COMMODITY AND REGULATORY AFFAIRS DEPARTMENT John Bailey has been promoted to Director of the Commodity and Regulatory Affairs Department at the Arkansas Farm Bureau, replacing Travis Justice.

In his new role, Bailey will be responsible for development, implementation and administration of department priorities and helping manage the department‘s efforts related to the organization’s commodity divisions, regulatory affairs activities, market information delivery, commodity checkoff program administration, and economic analysis impacting Arkansas agriculture.

Bailey has been with the Farm Bureau since 2016 as Director of Environmental and Regulatory Affairs, where he evaluates agriculture’s impact on the environment and examines issues such as air and water quality, watershed management, regulatory compliance and new technologies and farming practices.

Bailey has also led the organization’s Swine Division, where he works with members who raise hogs. He recently added responsibilities related to the Poultry Division as well.

He previously spent 16 years with the Arkansas Division of Environmental Quality, ending his tenure there as senior operations manager and assistant chief, where he managed more than 50 staff members. He also worked four years as a productions supervisor for Baxter Healthcare in Mountain Home.

Bailey earned a degree in Chemical Engineering from the University of Arkansas. He holds designations as a Registered Professional Engineer and is on the board of directors for the Illinois River Watershed Partnership. He also was appointed by Gov. Asa Hutchinson to the Nutrient Water Quality Trading Advisory Panel.

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MARKET NEWS as of January 13, 2021 Contact Brandy Carroll 501-228-1268 brandy.carroll@arfb.com

Corn On Tuesday, USDA released its monthly supply/demand report, quarterly grain stocks report, and the Annual Crop Production Report. In the reports, USDA slashed its 2020 U.S. corn crop and 2020-21 carryout estimates sharply, sending futures limit-up. They reduced their crop estimate by 325 million bushels, the largest cut ever made by USDA in the January production report. The decrease is the result of a 3.8 bushel per acre cut from the average yield and a slight cut to the harvested acreage total. Ending stocks are now projected at only 1.552 billion bushels, which brings the stocks to use ratio to a very tight 10.6%. This is despite the fact that they lowered corn-for-ethanol use and exports by 100 million bushels each, and feed residual use by 50 million bushels.

The average on-farm price was raised 20 cents to $4.20. The December 2021 contract charted a huge bullish outside day on Tuesday on its way to a limit-up close. Expect prices to stay high as the market looks to increase acres for 2021 in order to get back to a more comfortable stocks to use situation.

Soybeans USDA had big surprises for the soybean market, too. They cut their crop estimate by another 35 million bushels, bringing the crop to 4.135 billion bushels. Exports were raised 30 million bushels and the domestic crush by 5 million. The cuts were partially offset by increases in the old crop carryout and import projections.

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The net result of the report was projected ending stocks of only 140 million bushels, which is a stocks-touse ratio of only 3.1%. The average on-farm price was raised 60 cents to $11.15. On the futures charts, the trend is solidly higher. Old crop March doesn’t have major resistance until we get to $15.36 ¾, but could see some psychological resistance in the $15 area. The November contract could see resistance in the $12 area, but as the markets compete for acres to remedy the tight supply, it looks like the uptrend will remain intact as producers make planting decisions.

Rice Rice futures also got a boost from a bullish USDA report. A sharp increase in domestic and residual usage evident in the NASS rice stocks report resulted in a 2020-21 all-rice carryout of 38.4 million hundredweight. That is a 12.4 million bushel cut from the December report. 2020 production totaled 228 million cwt, up 23% from 2019. The average US yield was pegged at 7,619 pounds per acre.

The average on-farm price for long grain rice is pegged at $12.00, up 20 cents from the previous report.

The average medium-grain price is pegged at $12.30, up 30 cents from the previous report. Technically, March futures charted a bullish outside day in reaction to the report and climbed above $13 on Wednesday. A close above $13 would be a positive signal that further gains are possible, as resistance there has been tested but not yet overcome.

Cotton Cotton was no exception to today’s bullish reports and subsequent chart action. USDA cut its U.S. cotton carryout estimate by 1.1 million bales, which is more than 19%, due to lower estimated production and stronger expected exports. U.S. production was pegged at 14.95 million bales, down a million bales from the last report.

Exports were raised 250,000 bales to 15.25 million bales. The average on-farm price was raised 3 cents per

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pound to 68 cents per pound. The world cotton carryout was lowered to 96.32 million bales, down 3.56 million bales from a year earlier.

Livestock, Poultry, and Dairy The 2020 total red meat and poultry production estimate was reduced from last month. Beef production is expected to be lower as cattle slaughter is reduced. The pork production estimate was also reduced on slower slaughter pace that more than offset heavier carcass weights.

The broiler production estimate was reduced on recent hatchery and slaughter data. The egg production estimate was unchanged.

For 2021, total red meat and poultry production forecast was lowered from the previous month as lower expected beef, broiler, and turkey production more than offsets higher pork production. Lower placements in late 2020 will impact fed cattle supplies in mid-2021. Cattle carcass weights are forecast lighter for 2021. USDA will release its semi-annual Cattle report on January 29, providing estimates of heifers held for breeding and an insight into the number of feeder cattle available for placement during 2021. The pork production forecast for 2021 is raised from the previous month as higher expected hog slaughter more than offsets lighter expected carcass weights. Broiler, turkey and egg production forecasts are lowered for 2021 as higher feed costs are expected to slow production growth.

The milk production estimate for 2020 and forecast for 2021 are raised from the previous report on higher milk per cow and higher dairy cow numbers.

The 2021 all milk price forecast was raised to $17.65 per cwt.

EDITOR Ashley Wallace ashley.wallace@arfb.com