FEBRUARY 26, 2021 | VOLUME 24 | ISSUE 4
Farm Bureau Press A PEEK INSIDE
LIVESTOCK INDEMNITY PROGRAM CAN HELP WITH COSTS OF LOST ANIMALS Due to the extreme weather conditions across the state of Arkansas the during third week of February, many beef and dairy producers have lost cattle due to death related to the cold. The USDA has disaster assistance programs, such as the Livestock Indemnity Program (LIP), which may be helpful for producers who experienced losses. Administered by USDA’s Farm Service Agency, this program will pay out 75% of the fair market value of the animal lost upon application by producers to the program. Contact local FSA offices for more information and/or to submit both a notice of loss and an application for payment. Notice of losses must be submitted within 30 days of the loss and application for payment must be submitted within 60 days after the end of the year in which the loss occurred.
USDA Extends General Signup for CRP, page 2
Resources: LIP Final Rule & Fact Sheet: http://bit.ly/2021LIPFinalRuleAndFactSheet USDA FSA County Office Locator: http://bit.ly/USDAFSACountyOfficeLocator
Homegrown By Heroes Scholarship Applications Due March 26, page 3
FOLLOW US ONLINE FFA Donation | Arkansas Farm Bureau’s Director staff (from left) Matt King, Matt Jackson, and Justin Reynolds presented Arkansas FFA Foundation Executive Director Jennifer Cook and Arkansas FFA President Brooke Bradford (right) a $10,000 donation for National Give FFA Day, held Feb. 25.
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USDA EXTENDS GENERAL SIGNUP FOR CRP
Cross Co. Snow Clearing | Cross County Farm Bureau board member Cole Campbell brought his equipment to town to help clear snow from the parking lot of local businesses.
The U.S. Department of Agriculture (USDA) is extending the Conservation Reserve Program (CRP) General Signup period. USDA will continue to accept offers as it takes this opportunity to allow the incoming Administration to evaluate ways to increase enrollment. Under the previous Administration, incentives and rental payment rates were reduced resulting in an enrollment shortfall of over 4 million acres. This signup for CRP gives producers an opportunity to enroll land for the first time or re-enroll land under existing contracts that will be expiring Sept. 30. All interested producers are encouraged to contact their local USDA Service Center for more information. Before the General CRP signup period ends, producers will have the opportunity to adjust or resubmit their offers to take advantage of planned improvements to the program.
SWINE EXHIBITORS WARNED ABOUT VIRUS Rivercrest School Clean Up | During February’s record snowstorm, Raymond Henard, Adam Henard, Mark Fincher, Kevin Johns, Travis Senter and Kevin Goble were among the Mississippi County farmers who drove tractors and other equipment to Rivercrest School in Wilson and worked together to get roads and parking areas cleared of snow.
Youth who show swine are being warned about Porcine Epidemic Diarrhea virus, or PED. “Because PED is caused by a very contagious virus, the disease can get out of hand quickly,” said Heidi Ward, DVM, extension veterinarian for the University of Arkansas System Division of Agriculture. “Cold temperatures add an extra layer to the environmental stress that can lead to disease susceptibility.” Ward noted that Oklahoma is now requiring a certificate of veterinary inspection within 72 hours before arriving at a show. “By getting the word out now and observing restrictions, we can stop the virus from spreading,” Ward said. “We do not want traveling show swine to bring this disease into Arkansas and our show circuits.”
Baxter Co. Ag Student of the Month | The Baxter County Farm Bureau Board and YF&R Committee announced Caleb Bailey as the first recipient of the Baxter County Ag Student of the Month honor. Board Treasurer & YF&R Committee Chairman Hannah Walker (left) and FFA Advisor Adrianne Watts (right) were on hand for the presentation. 2
Those who show swine are urged to keep healthy swine away from those that are sick and quarantine swine that have been at shows. While adult pigs may have mild to severe diarrhea from the virus, the diarrhea is nearly always fatal to baby pigs. Ward emphasized that this virus doesn’t affect any other species and that pork is safe for consumption.
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NRCS ARKANSAS TECHNICAL ASSISTANCE PROJECT PROPOSALS DUE APRIL 20 NRCS Arkansas is now accepting applications to assist it in implementing projects that will address key conservation objectives. This will be achieved through projects that provide technical services that assist NRCS in working with producers to plan and/or implement conservation practices throughout Arkansas. NRCS Arkansas is seeking support from and opportunities to partner with likeminded natural resource conservation partners. The overall intent of this solicitation is to solicit partnerships to provide technical services that address key conservation objectives and focus areas. Proposals will be accepted from Arkansas. NRCS anticipates that the amount available for support of this program in FY 2021 will be approximately $3 million. The minimum amount is $5,000 for a single award and the maximum amount for a single award will be $3 million. Proposals are requested from eligible entities, non-profits, governmental or non-governmental organizations, and institutions of higher learning for competitive consideration of awards for projects between one and three years in duration. The full announcement and accompanying documents can be found on Grants.gov under Funding Opportunity Number: USDA-NRCS-AR-MULTI-21-NOFO0001046. APPLICATIONS DUE DATE: Applications must be received by NRCS by 3 p.m. CST, April 20. Questions regarding this notice of funding opportunity (NFO) may be submitted until March 26. Responses to questions posed will be posted on Grants.gov approximately two weeks before the application due date. SUBMISSIONS: Applications may be sent electronically through www.grants.gov or via email to amanda.mathis@ usda.gov with a copy to kimberly.chavis@usda.gov. Applications may also be sent via express mail, overnight courier service, or the United States Postal Service to: USDA-NRCS, Amanda Mathis, Room 3416, Federal Building, 700 West Capitol Avenue, Little Rock, AR 72201.
HOMEGROWN BY HEROES SCHOLARSHIP APPLICATIONS DUE MARCH 26 The Arkansas Department of Agriculture and Farm Credit Associations of Arkansas are partnering to provide two $1,000 Homegrown by Heroes academic scholarships to military veterans and active military personnel, their spouses, or children who are pursuing a degree in agriculture. Funding for the scholarships is generously provided by Farm Credit. Applications are due March 26, and are available at: agriculture.arkansas.gov/arkansasdepartment-of-agriculture-programs/. “We are proud to partner with Farm Credit to provide academic scholarships for the men and women, and their families, who have served our country in the military,” said Arkansas Agriculture Secretary Wes Ward. “Military service members and their families have many skills that make them great candidates for successful careers in agriculture. It is an honor to provide these scholarships as a way of thanking them for their service to our country.” “The Farm Credit Associations of Arkansas appreciate the service Arkansas veterans and current military personnel give our country. We are pleased to help service members and their families pursue degrees and careers in the agricultural field by sponsoring these scholarships,” said James McJunkins, CEO and president of Farm Credit Midsouth. Selection of scholarship recipients will be based on academic achievement, community involvement, extracurricular activities, financial need and family circumstances. Preference will be given to Arkansas Homegrown by Heroes members, spouses and their children, but membership is not required. The scholarships are affiliated with Homegrown By Heroes, an Arkansas Department of Agriculture program that helps farmer veterans market their local agricultural products by labeling them as veteranproduced. Learn more about Homegrown by Heroes and find products grown or made by military veterans at arkansasgrown.org/homegrown-by-heroes/.
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MARKET NEWS as of February 24, 2021 Contact Brandy Carroll 501-228-1268 brandy.carroll@arfb.com
Corn At its annual Agriculture Outlook Forum, USDA announced its initial estimate for corn acres to increase by 1 million acres, for a total planted acreage of 92 million. That is, of course, assuming a return to a more favorable planting season that sees a reduction in prevented planted acres. Corn prices are expected to decline slightly with larger acreage and a return to trendline yields, but will be supported by demand. The first estimate based on farmer surveys will be released March 31. We are in the last trading days of February, and the average December futures price, which is used to calculate the revenue guarantee for Revenue Protection insurance, is $4.55, up 67 cents from last year. Technically, old crop March futures are chopping along mostly sideways. Support is at the recent low of $5.243/4, and resistance is at the contract high of $5.74¼. New crop December was able to overcome previous resistance at $4.65½ this week to set new contract highs. Soybeans USDA has pegged the soybean crop at 90 million acres in its initial estimate. That is up 6.9 million from last year, and also assumes a return to more favorable planting conditions and a significant reduction in prevented planted acres over 2019 and 2020. Old crop contracts continue to be supported by tight supplies, a surging soy-oil market and a slow Brazilian harvest. May has so far been capped by the contract high of $14.33 set in mid-January. 4
New-crop November set a new high this week, moving to $12.40 on Wednesday. As we wrap up February trading, the average price of November futures is at $11.78, which means this year’s Revenue Protection insurance guarantee will wind up approximately $2.50 higher than 2020. Rice Rice acres are expected to decline after last year’s very large crop that resulted in sharply higher ending stocks in 2020–21. Large stocks and high prices for alternative crops are projected to cut into rice acres. Exports are expected to decline in 2021–22 due to smaller supplies and tough global competition. Rice prices are projected to remain firm, however, with carryover support from other commodities. Trading volume has been relatively high for rice in recent days. May futures have support at $12.90 and an upside target of resistance at $13.35. September is in position to challenge the high of $12.87 charted early this month. Cotton USDA has pegged cotton acres at 12 million, down slightly from the previous year. The National Cotton Council’s annual grower survey paints a different picture, though. NCC says 11.468 million acres will be planted to cotton this year, down 5.2% from 2020. Arkansas’ farmers responding to NCC say they will plant 489,000 acres this year, down 6.8% from 2020. USDA will release its first estimate based upon grower surveys on March 31, and analysts are looking for its estimate to be scaled back. Futures prices reflect that expectation, with May setting a new 2½ year high of 93.73 cents this week. December continues to set a new high on an almost daily basis. Livestock, Dairy and Poultry Livestock and poultry sectors will, of course, be faced with higher feed costs, but demand is expected to stabilize, and prices are forecasted to average above 2020 prices. Total
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red meat and poultry production for 2021 is forecast to increase 1% over last year. The beef production forecast was increased on higher cattle slaughter and heavier-than-expected cattle weights. The broiler sector is expected to undergo a slowdown in expansion for 2021 on higher feed costs and weakening returns. The egg production estimate has also been reduced due to higher feed costs. Dairy farmers will also face higher feed costs in 2021, and all-milk prices are expected to decline. This is expected to result in a decline in the herd during 2021. Producers are forecast to keep approximately 2% fewer heifers this year for the breeding herd. The Farm Economy USDA currently expects net farm income to finish 2020 at $136.2 billion and to fall to $128.3 billion in 2021. Cash receipts are expected to increase $20.4 billion to $390.8 billion in 2021. However, the decline from 2020 to 2021 in direct government farm payments is expected to more than offset the increase in cash receipts and drive most of the decline in net farm income. USDA has temporarily suspended past-due collections and foreclosures for distressed borrowers under the Farm Storage Facility Loan and the Direct Farm Loan programs administered by the Farm Service Agency (FSA). Flexibilities have been made available to lenders to assist in servicing its customers for the Guaranteed Loan Program as well. This suspension is in place until further notice and is expected to continue while the national COVID-19 disaster declaration is in place. According to USDA data, this will impact approximately 10% of all FSA borrowers — more than 12,000 farmers and rancher.
EDITOR Ashley Wallace ashley.wallace@arfb.com