Farm Bureau Press for May 22

MARCH 22, 2020 • VOLUME 23 • ISSUE 10

Farm Bureau Press A PEEK INSIDE

USDA ANNOUNCES DETAILS OF DIRECT ASSISTANCE TO FARMERS THROUGH THE CORONAVIRUS FOOD ASSISTANCE PROGRAM U.S. Secretary of Agriculture Sonny Perdue announced details of the Coronavirus Food Assistance Program (CFAP), which will provide up to $16 billion in direct payments to deliver relief to America’s farmers and ranchers impacted by the coronavirus pandemic. In addition to this direct support to farmers and ranchers, USDA’s Farmers to Families Food Box program is partnering with regional and local distributors, whose workforces have been significantly impacted by the closure of many restaurants, hotels, and other food service entities, to purchase $3 billion in fresh produce, dairy, and meat and deliver boxes to Americans in need.

“America’s farming community is facing an unprecedented situation as our nation tackles the coronavirus. President Trump has authorized USDA to ensure our patriotic farmers, ranchers, and producers are supported and we are moving quickly to open applications to get payments out the door and into the pockets of farmers,” said Sec. Perdue. “These payments will help keep farmers afloat while market demand returns as our nation reopens and recovers. America’s farmers are resilient and will get through this challenge just like they always do with faith, hard work, and determination.”

Beginning May 26, the U.S. Department of Agriculture (USDA), through the Farm Service Agency (FSA), will be accepting applications from agricultural producers who have suffered losses.

Additional information and application forms can be found at farmers.gov/ cfap. Producers of all eligible commodities will apply through their local FSA office. Documentation to support the producer’s application and certification may be requested. FSA has streamlined the signup process to not require an acreage report at the time of application and a USDA farm number may not be immediately needed. Applications will be accepted through Aug. 28.

Important Reminder To Arkansans Acquiring Livestock From Out of State, page 2 Pandemic effects showing in price spreads in meat supply chain, page 2

Arkansas Soil & Water Virtual Field Trips, page 3

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A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

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FRANKLIN COUNTY FARMER LUNCH The Franklin County Farm Bureau office hosted a Farm Appreciation To-Go Lunch on May 21 at the Ozark and Charleston offices. The lunch was to show their apprecaiton and say thank you to farmers for being essential and providing food and fiber for Arkansas.

IMPORTANT REMINDER TO AR ACQUIRING LIVESTOCK FRO

The Arkansas Department of Agriculture is reminding Arkansans th meets the State and Federal import requirements. The Departmen animals have the proper documentation to allow movement into A

All animals brought into Arkansas must meet the importation requ Livestock, Poultry, and Exotic Animals. For swine, USDA interstate c Swine, and the state requires that swine that are not from a qualifie Veterinarian Inspection is also required to make sure the animal is the spread of disease within the state.

More information about animal importation requirements ma www.aad.arkansas.gov/Websites/aad/files/Content/5937242/Entry_R

Individuals planning to purchase an animal for processing should arranging for holding the animal until it can be processed. If peopl meat processors in Arkansas are already booked for several month

A list of Arkansas meat processors may be found on an interac directory

PANDEMIC EFFECTS SHOWING PRICE SPREADS IN MEAT SU

The meat sector is feeling an accordion effect. Squeezed by panic b at the farm and wholesale levels, according to an analysis done by Agriculture.

Anderson is head of the agricultural economics and agribusiness d Food and Life Sciences. His analysis is based on data from the U.S.

He said the effects of April’s meat processing disruptions are appar its farm-level net value. The loss in processing meant cattle intende

“ERS reports an April farm-to-wholesale price spread of 165.1 cent Anderson said. “That is a record wide spread between farm and wh of the sharp loss in slaughter/processing capacity in the sector in A

Pork also saw increases, but they were not as dramatic as they wer “The farm-to-wholesale spread in pork also increased modestly in pound,” Anderson said. “This is a relatively wide spread seasonally,

Picking poultry Poultry moved upward at the retail level, but not as much as migh “Supply only describes one side of the market,” he said.

“It is a bit surprising that the biggest month-over-month percenta the previous month, Anderson said. “With falling consumer income product.

“With most food being prepared and consumed at home now, the also be influencing consumer demand,” he said.

To read more of Anderson’s analysis on COVID and consumer spen Impacts2020.

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A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

RKANSANS OM OUT OF STATE

hat they must ensure any livestock they purchase or receive from other states nt of Agriculture’s Livestock and Poultry Division can offer assistance to ensure the Arkansas.

uirements set by USDA and the State’s Health Requirements Governing the Entry of commerce regulations call for Premises Identification Number Ear Tags for Slaughter ed-validated herd be tested for Brucellosis and Pseudorabies. A Certificate of not showing signs of illness. These rules are in place for public safety and to prevent

ay be obtained from the Arkansas Department of Agriculture website at: https:// Requirments_.pdf

first check with local processing plants or prepare for other options such as le are not planning to process the animals themselves, they should know that many hs.

ctive map at: https://www.fsis.usda.gov/wps/portal/fsis/topics/inspection/mpi-

G IN UPPLY CHAIN

buying and supply chain disruptions, record gaps are forming between pricing y John Anderson, economist for the University of Arkansas System Division of

department, with a joint appointment in the Dale Bumpers College of Agriculture, Department of Agriculture’s Economic Research Service.

rent in the ERS data on the difference between the wholesale value of meat versus ed for slaughter were beginning to back up on the farms.

ts/pound – or about 41 percent of a carcass’ wholesale value of 402 cents/pound,” holesale values and clearly demonstrates the unprecedented market consequences April.”

re in beef.

April to 59.9 cents/pound, or 49 percent of the wholesale value of 121.6 cents/ but it is not unprecedented.”

ht be expected given the disruptions in processing.

SOIL & WATER VIRTUAL FIELD TRIPS The United States Department of Agriculture (USDA) Natural Resources and Conservation Service (NRCS), has provided funding for the University of Arkansas System Division of Agriculture to integrate the efforts of the Arkansas Discovery Farms and the Arkansas Soil Health Alliance.

The goal is to educate a statewide network of participants through a series of no-cost virtual researchbased, interactive demonstrations and educational experiences.

This series of Soil & Water Conservation Virtual Field Trips focuses on the conservation benefits exension researchers have developed with respect to water quality, irrigation water use, climate change, soil health, profitability and sustainability through their partnership with farmers on selected farms including some farmers involved in the Arkansas Discovery Farms Program.

Lesson guides that meet the Arkansas Department of Education’s Next Generation Science Standards (NGSS) framework are created and made available for this series at no cost to high school science teachers.

Upcoming Virtual Field Trips • June 23, 2020 - Marley & Elkins Poultry House Monitoring • August 5, 2020 - Surge Irrigation

age increase in retail price was observed in chicken,” which rose 5 percent from es and heightened perceptions of risk, consumers are likely favoring lower-priced

e greater availability of ready-to-eat and/or convenience products from chicken may

• August 19, 2020 - Greene County Extension Agent Demonstration For more information, to register or to watch previous field trips, visit https:// bit.ly/2020UAEXVirtualFieldTrips.

nding, see this and other economic impact reports at https://bit.ly/AR-Ag-Eco-

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

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MARKET NEWS as of May 21, 2020 Contact Brandy Carroll 501-228-1268 brandy.carroll@arfb.com

Cattle Cattle futures have run out of steam for the time being. A large back-up of market-ready cattle due to plant closures now looms over the market, and it could take months to work through the excess supplies. Daily slaughter totals are climbing, but still well below year-ago levels. Moderate activity in cash trade is providing some support. Trade estimates for the upcoming Cattle on Feed report have April placements pegged at 77.1% of the previous April, and feedlot marketings are estimated to total 74.7% of the year-ago total. The total on-feed inventory is estimated to be between 94.1% and 95.7%.

October live futures have lost ground after failing at resistance at $105. The market charted a bearish key-reversal on Wednesday, which signals another step down for prices. Support begins at $95, with additional support at $92.50. August feeders look to be headed toward a retest of support at $125.

Hogs Plant closures due to Covid-19 have significantly reduced hog slaughter capacity in the U.S. Daily slaughter totals are increasing, and could provide some support. This week has seen a sharp drop in composite pork cutout values, however, which could limit packer demand and have pushed cash hog bids lower. The July contract is now trading at 3-week lows after charting a bearish keyreversal on Tuesday and gapping lower on Wednesday. It’s difficult to 4

find any significant chart support above the contract low of $49. An October close below $51 would signal a retest of the contract low of $48.

Corn Corn futures are trending sideways and consolidating into an increasingly narrow trading range.

Expectations for a huge crop this year (currently estimated at a record high of 16 billion bushels) and recordhigh ethanol stocks will continue to loom over the market, limiting upside potential. The crop is off to a favorable start and is now 80% planted nation-wide, compared with a 5-year average of 71%. Ethanol production continues to recover, but the 4-week average is down 42.3% from a year ago. The 4-week average of gasoline demand is down 29.1% from a year ago. Estimated ethanol stocks are estimated to be shrinking, but stocks are still burdensome considering demand. December futures are consolidating between resistance at $3.40 and support at $3.30.

Soybeans Soybeans have recovered a bit this week, with November moving to a new 5-session high on Wednesday.

The next upside objective for November is the recent spike high of $8.65. The low of $8.31 looks like solid support for November for now.

The May supply/demand report projected a 4.125 billion bushel crop, up 568 million bushels from last year. Global demand is expected to increase next year, and the U.S. is projected to capture 34% of the world soybean trade. Ending stocks are projected to decrease by 175 million bushels from 2019/20 to 20/21. However, the average on-farm price is also expected to decrease, pegged at $8.20/bushel, down 30 cents from 2019/20.

Rice Rice futures continue to see wide

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

daily trading ranges and a big divergence between old crop and new crop prices. Old crop July continues to set new highs, with resistance now at the recent contract high of $16.54½. New crop September, on the other hand, continue to fail at resistance at $12.

Support at $11.80 has held since late March as futures consolidate within that 20-cent range. In the May Supply/Demand report, USDA reduced the rice export projection by 1 million cwt, and lowered the projected on farm price to $13 for 2019/20. For 2020/21, production is expected to be up 17% from 2019/20. Larger exports, domestic use, and a 32% decrease in beginning stocks will help to offset the increase in production. But ending stocks are still projected to be up 32% from 2019/20. The projected on-farm price for 2020/21 is projected to be $12.90.

Cotton Cotton futures are trending mostly sideways with December consolidating between resistance at the recent high of 59.50 cents and support just above 54 cents.

The May supply/demand report for 2020/21 projects production down 400,000 bales from the previous year.

That is based on the 13.7 million acre planting intentions reported in March, which is very likely to be revised downward as farmers reacted to sharply lower prices and altered their planting decisions. Mill use is expected to recover by 200,000 bales, and exports are expected to be up 1 million bales, but ending stocks are still projected to rise 600,000 bales to 7.7 million bales. The on-farm average price is pegged at 57 cents per pound.

EDITOR Ashley Wallace ashley.wallace@arfb.com