MARCH 27, 2020 • VOLUME 23 • ISSUE 6
Farm Bureau Press A PEEK INSIDE
ARKANSAS AG INDUSTRY TO GOV. ASA HUTCHINSON: AG INDUSTRY IS ESSENTIAL Late last week, the Department of Homeland Security designated food and agriculture one of 16 critical sectors in the midst of the coronavirus crisis, and said that workers in those industries should stay on the job. Arkansas Farm Bureau and a consortium of agriculture industry groups have come together to thank Arkansas Gov. Asa Hutchinson for his response to the COVID-19 crisis so far and request that he designate agriculture as essential at the state level.
#StillFarming Social Media Roundup, page 2
In the event that stricter COVID-19 measures must be invoked and more work stoppages be required, we must ensure that agriculture and agriculture-related businesses can continue to operate in order to provide the food, fiber and shelter the nation and world requires. To maintain a safe and abundant food supply, work must continue across the agricultural spectrum, from input businesses to farmers and ranchers to transportation and food processing operations. The groups that came to together to sign on to this letter are: • Arkansas Farm Bureau Federation • Arkansas Cattlemen’s Association • Livestock Marketing Association • Arkansas Forestry Association • Catfish Farmers of Arkansas • Agricultural Council of Arkansas • Arkansas Pork Producers Association • Producers Rice Mill
• Arkansas Soybean Association • The Poultry Federation • Riceland Foods • AgHeritage Farm Credit Services • Farm Credit of Western Arkansas • Farm Credit MidSouth • Delta ACA Farm Credit Services • Arkansas Rice Federation
A copy of the letter from these organizations to Gov. Hutchinson can be found at, https://bit.ly/AgIndustryLetter.
Rural Resilience Training Program Addresses Farm and Ranch Stress, page 3
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STUDENTS AND EMPLOYEES G CRITICAL NEED FOR BROAD Students and Employees Go Online, Highlighting Critical Need for Broadband Access With schools and offices throughout the country closed to stem the spread of COVID-19, access to broadband is critical as students and employees transition to online classrooms and teleworking and the general public tries to stay connected and informed.
Desite the COVID-19 Virus focing businesses to close or alter the way to function and to work from home, Arkansas farmers are will working. Arkansas Farm Bureau has been working to highlight this work by asking farmers and rachers to send in videos and help emphasis to the public that farm work does not stop. These videos, interviews and photos are being promoted through all the ArFB social media channels, including Facebook, Twitter & Instagram. You can also find a complete roundup on the ArFB website, https:// bit.ly/StillFarming2020. If you would like to share what’s currently happening on your farm during the COVID-19 outbreak, please send a horizontally filed video to Director of Public Relations Rob Anderson, at rob.anderson@arfb.com.
DAIRY FOODS, RICE IS NICE CONTESTS TO CONTINUE Since schools are closed and 4-H and other youth activities are suspended for a few more weeks, counties are encouraged to select your county winners in the Dairy Foods Contest and the Rice is Nice Youth Cooking Contest based solely upon their written entry. The state will provide prizes for the winners as promised, all you need to do is send in the form provided in the official rule book for each contest. As for the state contests, Dairy Foods is scheduled for June 4 and Rice is Nice is scheduled for July 21, 2020. There is no way to know yet if we will be able to hold an in-person state contest or if we will also have to hold a virtual contest, but we will notify counties as soon as a determination is made. 2
Unfortunately for many in rural America, an already troubling situation is being made worse by lack of the critical connections only high-speed internet can provide. Data compiled by the Federal Communications Commission shows that 26.4% of rural Americans lack access to broadband compared to only 1% of urban Americans. “Rural students without broadband access are going to be very limited in their ability to stay connected with their teachers and peers and stay on top of their schoolwork. And in many cases, adults in rural households have off-farm jobs that may require them to work from home at this time. Without that option, their jobs could be in jeopardy,” explained RJ Karney, director of congressional relations. With the drastic decline in primary care physicians throughout rural America, broadband access is also important for rural medical facilities because it allows medical personnel to consult
SOY INNOVATION CHALLENGE AWARD DISRUPTIVE INNOV The Soy Innovation Challenge calls on ag-tech startups and teams to disrupt the current soybean value chain and create value for soybean farmers through innovation and technology. U.S. soybean farmers principally are price takers in the existing soybean supply chain, without transparent access to market signals originating from end users. Similarly, the complexity of the value chain makes it difficult for end users to buy raw materials that meet their needs. To enhance farmers’ ability to make dynamic, profit-enhancing decisions based on clear demand information, the Soy Innovation Challenge, sponsored and founded by the United Soybean Board (USB) and led by the Yield Lab Institute (YLI), aims to solve this problem. To commemorate National Ag Day, USB and the YLI announce the Soy Innovation Challenge. This non-dilutive startup accelerator program identifies innovative soybean value chainbased product solutions and supports the most promising ones with business coaching and entrepreneurial networking. The Soy Innovation Challenge seeks ideas for the creation of
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GO ONLINE, HIGHLIGHTING DBAND ACCESS with specialists on test results, diagnoses and treatments. “With health care facilities in all communities poised for an onslaught of potentially very sick and certainly very contagious COVID-19 patients, doctors and nurses in rural facilities have to be able to quickly connect with specialists. Telemedicine networks, which require broadband access, are likely the best way to do that,” Karney said. There’s also the human connection to consider, Karney continued. “At a time when we’re supposed to be isolating ourselves to protect our physical health, keeping in close touch with friends and family is important to our mental health. Many of us rely on high-speed-internet-dependent tools like Facebook, Facetime and Skype to do that,” he said. Ensuring reliable access to broadband throughout rural America is a priority for Farm Bureau. The group praised Congress’ recent passage of the Broadband Deployment Accuracy and Technological Availability (DATA) Act, which requires broadband providers to report more specific data to create a significantly more accurate and granular National Broadband Map. With more precise data, federal agencies can target funding to areas that need it most.
E TO VATORS new kinds of supply chain structures and technologies that offer transparency, facilitate alignment based on measurable sustainability parameters and increase farm profitability. This partnership between USB and the YLI initiates a real opportunity to increase collaboration and bridge the gap between farmers, agribusinesses, experts and the selected startup companies or teams.
RURAL RESILIENCE TRAINING PROGRAM ADDRESSES FARM AND RANCH STRESS As people around the country look for big and small ways to help their neighbors through the uncertainty that has come with COVID-19, the Rural Resilience Training Program, now available at no cost for all Farm Bureau members and staff, is a chance to do just that. Developed by Michigan State University Extension in partnership with the American Farm Bureau Federation, National Farmers Union and Farm Credit, the online training program is designed for individuals who interact with farmers and ranchers to help recognize signs of stress and offer resources. “This free training comes at the perfect time and provides Farm Bureau staff and members a meaningful way to make a difference in their communities,” said RJ Karney, AFBF director of congressional relations. The program will give participants the skills to understand the sources of stress, learn the warning signs of stress and suicide, identify effective communication strategies, reduce stigma related to mental health concerns and connect farmers and ranchers with appropriate mental health and other resources. The training takes about 4-5 hours to complete and can be done over multiple sessions. “Yes, it is a time investment, but one that pays vast dividends for both participants and those they will help,” Karney said. State and county Farm Bureau staff and members can register for the online training https://bit.ly/ RuralResilienceTrainingProgram.
With the application period launching March 24 through May 1, 2020, USB and the YLI invite ag-tech startups, project teams and groups to submit their ideas online, www.f6s.com/ soyinnovationchallenge/apply. This includes entities that operate in the soybean value chain and have an innovative product, service or technology that provides value directly back to U.S. soybean farmers. Cash prizes will be awarded at the conclusion of the challenge. All selected teams will receive mentoring and resources to help advance their ideas in the areas of technical, business, financial and environmental impact. A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION
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MARKET NEWS as of March XX, 2019 Contact Brandy Carroll 501-228-1268 brandy.carroll@arfb.com
Cotton Cotton futures have rebounded after charting an 11-year low earlier this week. Old crop May bottomed out on Monday at 50.68 cents, and that low now becomes support. New crop December, however, set the bottom on Tuesday at 51.90 cents before completing a key reversal by the close. That signals that the low will be the floor and the market should work higher from here. However, crude oil is trading at an 18-year low at this point, meaning that synthetics will remain a very cheap option for clothing manufacturers and will continue to pressure cotton prices. In their annual production survey, the National Cotton Council reported an expected total U.S. crop of 13 million acres, down 5.5% from last year’s crop. However, those surveys were completed by farmers in January and early February, when the price for cotton was over 15 cents per pound higher than it is currently. The March 31 USDA Prospective Plantings report will provide an updated number for the market to chew on, and that could provide some support. Weekly export reports have so far remained the bright spot in this market, and China has been a steady if modest buyer of the past few weeks. Cattle Live cattle futures charted limit gains on Monday and Tuesday, but most contracts retreated a bit on Wednesday amid profit taking. Ideas that the panic buying of meat in reaction to social distancing 4
requirements is slowing down, and wholesale beef prices have declined this week as a result. However, cutout values and boxed beef prices saw unprecedented gains last week, and values are still very strong. Cash trade this week has been solid, reportedly $8-$10 per cwt higher than the trade last week. The monthly Cattle on Feed report showed a total inventory virtually unchanged from the February 2019 report. Marketings were up 5.5% and placements were down 7.6%. Overall the report is bullish for prices, but market instability in reaction to COVID-19 will continue to impact the market. Hogs The bottom dropped out of hog futures last week, but after spiking to new lows the market is attempting to stabilize. The market is concerned about demand, especially from China as coronavirus continues to spread. April will have support at the low of $51.12 ½ and is now testing resistance between $67 and $68. Cutout values have declined this week as panic buying has subsided for now, but packer margins are still healthy. Corn Corn futures are looking like a bottom has been put in for now, at $3.32 for nearby May, and $3.55 for new-crop December. Weakness in the dollar and stronger outside markets have contributed to the relative strength in corn futures. However, uncertainty about global demand as the world continues to reckon with COVID 19, and weak demand for ethanol production are both bearish factors in the market. The initial USDA acreage estimate of 94 million acres, up from 89.7 million a year ago, also continues to loom large over the market. The March prospective plantings report, scheduled for release March 31, isn’t expected to show big changes to that estimate. So far, the forecast isn’t great for planting progress in the south, but
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that won’t affect the market unless significant planting delays are seen in the Mid-west, too. Soybeans Soybeans are looking like the bottom is in for the time being. However, both July and November have very tough resistance at the chart gap at $9. A close above that level, however, would clear the way for a retest of resistance at $9.20. Measures to combat COVID-19 in Argentina and Brazil are hindering both the harvest and the movement of grain, which supports U.S. futures. Stronger outside markets and a weaker dollar this week have also provided some support. USDA currently has 2020 soybean acreage pegged at 85 million acres, up from 76.1 million in 2019, and soybean prices are expected to average $8.80 per bushel. The current forecast is for a warm but wet spring throughout much of the south and mid-west, which may make planting the crop difficult. It’s too early for any market impact at this point, but traders will be watching planting progress reports carefully. Rice Rice futures have retraced a significant portion of the recent rally after old crop futures moved to new 6-year highs last week. The initial USDA supply/demand projections for rice paint a bearish picture, especially if the weather cooperates. Acreage is projected to be up over 600,000 acres and production is forecast to be up 47.8 million hundredweight, resulting in the highest ending stocks number in over 20 years. However, current conditions have not been great for progress across Arkansas thus far.
EDITOR Ashley Wallace ashley.wallace@arfb.com