Farm Bureau Press for June 19

JUNE 19, 2020 • VOLUME 23 • ISSUE 12

Farm Bureau Press A PEEK INSIDE

ArFB’S OFFICERS AND LEADERS CONFERENCE CANCELED

The Arkansas Farm Bureau Federation Board of Directors has made the difficult decision to cancel this year’s Officers & Leaders Conference. This decision was based first and foremost on protecting the health and wellbeing of all our members, and also on the fact that with social distancing restrictions the facility simply could not accommodate the conference. Please proceed with canceling any reservations you have made at this time.

USDA Announces Improvements to the Livestock Risk Protection Program, page 2

I also want to let you know that we are planning a virtual leaders conference that we will conduct via Zoom and video presentations. This virtual conference is scheduled for Thursday, July 23, at 6 p.m.

Additional information will be provided closer to the conference date.

YF&R MOVES TO VIRTUAL DISCUSSION MEET

With the cancellation of the 2020 Officers and Leaders Conference, ArFB is hosting a virtual YF&R Discussion Meet. The virtual format will allow members to participate in a similar fashion to a face to face competition. The competition will run from July 20-23.

For rounds one and two, competitors will have 24 hours to submit two, fiveminute videos containing individual discussion around the YF&R Discussion Meet question. These clips will be sent to groups of judges in random sets to be evaluated.

The final four will be similar to in person discussion, competitors will be judged on problem solving and implementation, analysis or top or problem, cooperative attitude, delivery and opening and closing statements.

June 30 Deadline for Agriculture Risk Coverage, Price Loss Coverage, page 2

Virtual Tour to Showcase Conservation Efforts, page 3

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The deadline to apply is Tuesday, July 10.

For the more information and the discussion meet questions, visit bit.ly/ ArFB_YFR. Questions can be sent to Jennifer Craig, ArFB YF&R Coordinator, at jennifer.craig@arfb.com.

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A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

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2020 COMMODITY SUMMER DIVISION MEETINGS Arkansas Farm Bureau has released the Summer Division Meeting schedule for 2020. Due to COVID-19 social distancing, many of the meetings have be moved to conference call or a Zoom conference.

Below is a the upcoming schedule.

Specialty Crops June 24 at 6 p.m. – Conference Call Soybean June 25 at 1 p.m. – Zoom Conference Call

The USDA’s Risk Management Agency (RMA) announced changes to the Livestock Risk Protection (LRP) insurance program for feeder cattle, fed cattle and swine starting this summer with the 2021 crop year. Changes include moving premium due dates to the end of the endorsement period and increasing premium subsidies to assist producers.

“These changes will make these policies more usable and affordable for livestock producers,” RMA Administrator Martin Barbre said. “We are working to ensure these improvements can be implemented by July 1 so producers can take advantage of these changes.”

Specifically, the changes:

Wheat & Feed Grains June 25 at 1 p.m. – Zoom Conference Call

• Allow premiums to be paid at the end of the endorsement period, putting it in line with other policies.

Dairy June 30 at 10 a.m. – Bill Haak Dairy Farm

• Increase the premium subsidy for coverage levels above 80 percent. Those with an 80 percent or higher coverage level will get a 5-percentage point subsidy increase.

Cotton June 30 at 9 a.m. – Zoom Conference Call Rice July 1 at 6 p.m. – Zoom Conference Call Questions regarding meetings should be sent to the Commodity Coordinator.

LOOKING FOR MORE? Arkansas Farm Bureau has several channels to communicate news, stories and upcoming events, including The Feed, and the Arkansas AgCast.

To subscribe, visit http://bit.ly/ArFBeNewsSignUp. 2

USDA ANNOUNCES IMPROVE LIVESTOCK RISK PROTECTIO

Producers may buy LRP insurance throughout the year from Approved Insurance Providers (AIPs), with coverage prices ranging from 70 to 100 percent of the expected ending value of their animals. At the end of the insurance period, if the actual ending value is below the coverage price, producers will be paid

JUNE 30 DEADLINE FOR AGRIC RISK COVERAGE, PRICE LOS Agricultural producers who have not yet enrolled in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs for 2020 must do so by June 30. Although program elections for the 2020 crop year remain the same as elections made for 2019, all producers need to contact their local USDA Farm Service Agency (FSA) office to sign a 2020 enrollment contract.

“The Agriculture Risk Coverage and Price Loss Coverage programs are critical safety-net programs for farmers, helping producers weather market distortions resulting from natural disasters, trade disruptions and, this year, a pandemic,” said FSA Administrator Richard Fordyce. “Contact your FSA county office today to complete enrollment before June 30. This can be done in concert with filing your acreage report and applying for other FSA programs.”

To date, more than 1.4 million ARC and PLC contracts have been signed for the 2020 crop year. This represents 89 percent of expected enrollment. FSA will send reminder postcards to producers who, according to agency records, have not yet

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EMENTS TO THE ON PROGRAM an indemnity for the difference. Premium rates, coverage prices and actual ending values are posted online daily.

RMA is authorizing additional flexibilities due to coronavirus while continuing to support producers, working through AIPs to deliver services, including processing policies, claims and agreements. RMA staff are working with AIPs and other customers by phone, mail and electronically to continue supporting livestock insurance coverage for producers. Farmers with livestock insurance questions or needs should continue to contact their insurance agents about conducting business remotely (by telephone or email). More information can be found at farmers.gov/coronavirus.

Livestock insurance is sold and delivered solely through private insurance agents. A list of insurance agents is available online using the RMA Agent Locator.

Learn more about livestock insurance and the modern farm safety net at rma.usda.gov.

VIRTUAL TOUR TO SHOWCASE CONSERVATION EFFORTS Jeff and Marsha Marley have implemented conservation measures at their poultry and beef farm in Elkins to protect and conserve water resources. They use grassed waterways, aerated pastures, and farm ponds that help reduce nutrient runoff — just a few of the efforts documented through their participation in the Arkansas Discovery Farms program.

A virtual tour of the Marley Farm will be available free online to anyone interested in learning about how the Marleys implemented conservation efforts while maintaining a profitable farm. The tour is part of the Arkansas Soil & Water Conservation Virtual Field Trip Series funded by the U.S. Department of Agriculture’s Natural Resources and Conservation Service, and hosted by the University of Arkansas System Division of Agriculture.

During this virtual tour of the Jeff and Marsha Marley poultry and beef farm in Elkins, Northwest Arkansas, you will learn how this Discovery Farm is helping farmers document how their conservation measures protect local water resources, while maintaining profitability.

CULTURE S COVERAGE submitted signed contracts for ARC or PLC for the 2020 crop year.

Producers who do not complete enrollment by close of business local time on Tuesday, June 30 will not be enrolled in ARC or PLC for the 2020 crop year and will be ineligible to receive a payment should one trigger for an eligible crop.

ARC and PLC contracts can be mailed or emailed to producers for signature depending on producer preference.

Signed contracts can be mailed or emailed back to FSA or, arrangements can be made in advance with FSA to drop off signed contracts at the FSA county office – call ahead for local drop off and other options available for submitting signed contracts electronically.

Producers are eligible to enroll on farms with base acres for the following commodities: barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium- and short-grain rice, safflower seed, seed cotton, sesame, soybeans, sunflower seed and wheat.

The one-hour virtual tour will be available as a webinar on the Zoom online platform, and it will be streamed on Facebook Live. The tour will begin at 10 a.m. June 23. To register, visit bit.ly/Registration-Marley-DiscoveryFarm-Protecting-Water-Resources-VFT. There is no cost to register or participate.

Participants will see how Discovery Farms use stateof-the-science equipment to collect water samples for analysis.

The tour is an effort of both the research and extension arms of the Division of Agriculture, the Arkansas Agricultural Experiment Station and the Cooperative Extension Service.

For people not able to view the virtual tour as it is broadcast, a recording will be available on the Division of Agriculture’s YouTube channel at bit.ly/2MQmLW1.

More information about the Arkansas Soil & Water Conservation Virtual Field Trip Series is available at bit. ly/NRCS-AR-Soil-and-Water-VFT-Webpage.

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

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MARKET NEWS as of June 14, 2020 Contact Brandy Carroll 501-228-1268 brandy.carroll@arfb.com

Cattle Live cattle futures are trading at their lowest levels in five weeks.

The market remains under pressure from weaker cash cattle prices as a result of more than ample supplies of heavyweight cattle that backed up in the supply chain as processing plants closed due to COVID-19 outbreaks.

Wholesale beef prices are also weak.

The longer-term economic forecasts and predictions of a second wave of coronavirus in the fall have traders worried about beef demand and are limiting the upside potential.

The August live contract charted a bearish key reversal last Friday, but so far, follow-trough selling has been limited. However, there is downside risk to $90-$92. August feeders are holding above support at $128.33, and have resistance at $136.72.

Hogs Summer hog futures contracts set new contract lows this week.

Deferred contracts have also moved lower but have held above support set earlier in the spring. There is still a large backlog of heavyweight hogs in the pipeline after plant shutdowns this spring, and as plants have reopened that product is hitting the market. Cutout values are at their lowest level in two months. The July contract took out previous support at the double bottom at $49, setting a new low of $48.17. Resistance will be at the chart gap between $58 and $58.82. October has support at the contract low of $48 and resistance at the recent high of $54.98.

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Dairy In the June Supply/Demand report, USDA raised the milk production estimate for 2020 based on higher expected cow numbers. Price forecasts for cheese, butter, and nonfat dry milk were raised from the previous month due to recent price strength and stronger anticipated demand. The all milk price for 2020 was raised to $16.65 per cwt. The 2021 milk production forecast was also raised from last month on higher expected cow numbers and stronger growth in milk per cow. The 2021 all milk price forecast was raised to $16.20 per cwt.

Cotton Cotton futures are trending higher, but the recovery has been slow and not without setbacks. The monthly supply/demand report resulted in a setback last week as traders reacted to the negative report. USDA raised the 2019-20 carryout to 7.3 million bales, up 200,000 bales from last month. USDA also raised its 2020-21 carryout forecast by 300,000 bales to 8 million bales. That total was well above the average trade guess and resulted in selling pressure. Weekly cotton export sales were nothing special, but USDA did report sales of 97,600 bales of old crop cotton and 148,400 bales of new crop.

Shipments were better at 358,300 bales, including 123,500 bales to China. USDA says 43% of the crop is in good to excellent condition nationwide. In Arkansas, though, the crop looks solid with 79% rated good to excellent. Technically, December has support starting at 57.75 cents and resistance at the recent high of 61.14 cents.

Rice What was an almost $10 difference between old and new crop futures two weeks ago has narrowed to $2 as July rice futures collapsed from their near-record setting highs.

New-crop September has traded in a much narrow range, having

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

taken approximately 70 cents off the market since the May high was charted. Support for September is now the recent spike low of $11.65. Weekly export sales were disappointing at 14,900 metric tons for 2019-20 and 5,700 metric tons for 2020-21. Shipments were better at 63,700 metric tons, up 16% from the four-week average. The monthly supply/demand report added to the negative undertone of the market, as USDA added 2.0 million metric tons to the 2019-20 carryout estimate and added 1.5 million metric tons to the 2020-21 carryout estimate.

Nationwide, 63% of the crop is in good to excellent condition. In Arkansas, 64% is rated good to excellent.

Corn Corn futures are trending higher, but the trendline the trend isn’t steep. Expectations for a record setting crop continue to loom over the market. Export sales this week were a disappointing 357,800 metric tons for 2019-20 and 114,800 metric tons for 2020-21, well below trade estimates. December futures are building resistance below $3.50 and support at $3.30 as they attempt to work higher.

Soybeans November soybeans have begun to trade in a more sideways pattern again as resistance between $8.82 and $8.87 continues to cap the market. A break above that resistance would set an upside objective of the chart gap between $9 and $9.03.

Weekly export sales of 538,000 metric tons for 2019-20 were below expectations, but new crop sales of 1.382 million metric tons were good news for the market.

EDITOR Ashley Wallace ashley.wallace@arfb.com