SEPTEMBER 25, 2020 • VOLUME 23 • ISSUE 19
Farm Bureau Press A PEEK INSIDE
ArFB BOARD APPROVES 2021 LEGISLATIVE PRIORITIES
The Arkansas Farm Bureau Board of Directors recently approved preliminary priorities for the 2021 legislative session. • Provide resources to underserved and unserved areas for broadband access. Arkansas ranks 50th in broadband availability. ARFB is seeking funds to expand broadband access and help rural communities apply for federal funds. ARFB staff is working with local communities to help them apply for funds. If your community is interested in more information, contact Jason Smedley at jason.smedley@arfb.com. • Reinstatement and funding for a state meat inspection program under the Arkansas Department of Agriculture. ARFB is spearheading a coalition of stakeholders interested in creating a state meat inspection program. A state inspection program will expand market opportunities for producers by allowing additional direct–to– consumer marketing and sales to local restaurants. To help launch this program, the Arkansas Department of Agriculture is offering $5 million in grants to allow meat processors to upgrade. The deadline to apply for the grant is Sept. 30. For more information, contact Jessica Burkham at Jessica. Burkham@arfb.com. • Ensure levee boards get appropriate funding and authority to operate in the most efficient and effective manner in order to maintain the integrity of the overall levee system. The 2018 floods highlighted the need to improve Arkansas’s levee and drainage system. After an extensive review, the Governors Levee Taskforce developed several recommendations for the legislature to consider in 2020. Other issues Arkansas Farm Bureau will be working on in the 2021 session include: helping the Forestry Commission use current funds for scholarships, a peanut checkoff program, expanding uses of conservation tax credits, a parts and labor tax exemption, funding for Center for Forest Business at UAMonticello, tax credits to help beginning farmers, and expanding “lemon laws” to cover trucks up to 14,000 lb gross vehicle weight rating (GVWR).
USDA to Provide Additional Direct Assistance to Farmers and Ranchers, page 2
ArFB Recognized for Contributions to Foodbank, page 2
Arkansas Agriculture Hall of Fame Seeking Nominations, page 3
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USDA TO PROVIDE ADDITIONAL D FARMERS AND RANCHERS IMPA President Donald Trump and U.S. Secretary of Agriculture Sonny Perdue announced up to an additional $14 billion dollars for agricultural producers who continue to face market disruptions and associated costs because of COVID-19. Signup for the Coronavirus Food Assistance Program (CFAP 2) will begin Sept. 21 and run through Dec. 11.
Junior Livestock | Garland County Farm Bureau President Tommy Sorrells presented Fair Board member Keith Rucker with a $3,000 check to be distributed as add-on money to the participants of the 2020 Garland County Jr. Livestock & Premium Sale. Garland County Farm Bureau Agency Manager Scott Jones (left) and Agent Benson Jordan (right) were also present for the donation.
Background The U.S. Department of Agriculture (USDA) will use funds being made available from the Commodity Credit Corporation (CCC) Charter Act and CARES Act to support row crops, livestock, specialty crops, dairy, aquaculture and many additional commodities, based upon feedback from producers in reaction to the original CFAP. CFAP 2 payments will be made for three categories of commodities – price trigger commodities, flat-rate crops and sales commodities. Price Trigger Commodities Price trigger commodities are major commodities that meet a minimum 5% price decline over a specified period of time. Eligible price trigger crops include corn, sorghum, soybeans, sunflowers, upland cotton and all classes of wheat. For broilers and eggs, payments will be based on 75% of the producer’s 2019 production. Dairy (cow’s milk) payments will be based on actual milk production from April 1 to Aug. 31, and estimated production
Franklin County Meeting | Due to Covid-19, the Franklin County annual meeting Sept. 21 was held outside at the Greenwood Community pavilion. Pictured are Franklin Co. FB board member Robert Ballinger and state board members Tom Jones (center) and Joe Thrash (right).
ArFB RECOGNIZED FOR CONTRIBUTIONS TO FOODBANK Arkansas Farm Bureau was recently presented with the 2020 Acting Out Against Hunger Award from the Arkansas Foodbank and the Arkansas Hunger Relief Alliance.
54 Years of Service | Hempstead County Farm Bureau held its annual meeting and policy development meeting Sept. 22. The Board of Directors honored Denver Ward, retiring board member, with a service plaque. Ward has been a dedicated member of the board for 54 years. 2
The award was created 10 years ago by the state’s six Feeding America food banks and is presented to the individuals, schools, non-profits and companies who have shown leadership, courage and dedication to the fight against hunger. The award is traditionally presented at the Arkansas Hunger Relief Alliance Action Breakfast. However, this year the breakfast tradition was disrupted by COVID and the ceremony was streamed on YouTube.
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Arkansas Hung presented the A ArFB President R and David Moo Inc./SVP – State also in attendan
DIRECT ASSISTANCE TO ACTED BY THE CORONAVIRUS for Sept. 1, to Dec. 31. Eligible beef cattle, hogs and pigs, and lambs and sheep payments will be based on the maximum owned inventory of eligible livestock, excluding breeding stock, on a date selected by the producer, between April 16, and Aug. 31. It is important to note that contract producers who do not share in the price risk of their production are not eligible for CFAP 2. Flat-Rate Crops Crops that either do not meet the 5% price decline trigger or do not have data available to calculate a price change will have payments calculated based on eligible 2020 acres. These crops include rice, peanuts, ELS cotton and several others. Sales Commodities Sales commodities include specialty crops; aquaculture; nursery crops and floriculture; and other commodities not included in the price trigger and flat-rate categories that were grown for food, fiber, fur or feathers. Payment calculations will use a salesbased approach based upon 2019 sales. Applying for Assistance CFAP 2 signup is available through Dec. 11. Complete information, including payment limitations and Adjusted Gross Income requirements, and application forms can be found at farmers.gov/cfap. Customers seeking one-on-one support with the CFAP 2 application process can call 877-508-8364 to speak directly with a USDA employee ready to offer assistance.
ARKANSAS AGRICULTURE HALL OF FAME SEEKING NOMINATIONS Created by the Agriculture Committee of the Little Rock Regional Chamber of Commerce in 1987, the Arkansas Agriculture Hall of Fame was established to recognize members of Arkansas’ important agriculture community. Arkansas Farm Bureau joined the Chamber in sponsoring this activity in 2002. Over its 30-year history the Arkansas Agriculture Hall of Fame has worked to enhance agriculture awareness and recognize past and current leaders who have contributed significantly to agriculture, community and economic development.
Nominations are being solicited from across the state to ensure the statewide reach. Previous nominees who have not been inducted are eligible to be considered. Nominations should be submitted no later than Nov. 1. The final selection will be made by the Arkansas Agriculture Hall of Fame Committee. More information, including photographs and biographies of all the Arkansas Agriculture Hall of Fame members, as well as a digital nomination form, is available online at arkansasaghalloffame. org. Should you have questions or need additional information, please contact Steve Eddington at 501228-1383 or steve.eddington@arfb.com.
LAWRENCE COUNTY EARNS HONOR COUNTY
ger Relief Award | Arkansas Foodbank CEO Rhonda Sanders Arkansas Hunger Relief Alliance Acting Out Against Hunger award to Rich Hillman on behalf of the organization. Warren Carter (left), EVP, ore (right), EVP Farm Bureau Mutual Insurance Company of Arkansas, e Manager Southern Farm Bureau Casualty Insurance Company, were nce.
Lawrence County Farm Bureau has reached quota and has qualified as Honor County No. 1. This is the first time Lawrence County has been Honor County No. 1. Congratulations to the Lawrence County membership chairman, board of directors, employees, and all membership workers are to be commended for a job well done.
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MARKET NEWS as of September 23, 2020 Contact Brandy Carroll 501-228-1268 brandy.carroll@arfb.com
Cattle The futures chart for the December contract looks somewhat positive. The market moved to new five-week highs last week. Resistance is building around $112.50, and the market will need to overcome that barrier before challenging the August high of $114.02. Firmer cash prices and expectations for tighter market-ready cattle supplies during the fourth quarter. Feeders are finding support from the live cattle market and solid demand from feedlots. Cattle producers are eligible for the new CFAP 2 program, with payments made on the highest owned inventory of eligible livestock, excluding breeding stock, on a date selected by the producer from April 16, through Aug. 31, multiplied by the payment rate of $55/head. Dairy Dairy (cow’s milk) production is covered under CFAP 2 as a price loss commodity. Payments will be based upon actual milk production from April 1–Aug. 31, multiplied by the payment of $1.20 per cwt, and estimated milk production from Sept. 1–Dec. 31, based upon the average daily production from April 1–Aug. 31, multiplied by 122, multiplied by a payment rate of $1.20 per cwt. Hogs Hog futures have run out of steam after posting significant gains in the early weeks of September. The most active December contract is consolidating after charting a major bearish reversal a week ago. The good 4
news is that follow-through selling has been limited so far. Key support is at $61.25, and then a chart gap between $60.55 and $59.97. Cattle producers are eligible for the new CFAP 2 program, with payments made on the highest owned inventory of eligible livestock, excluding breeding stock, on a date selected by the producer from April 16, through Aug. 31, multiplied by the payment rate of $23/head. Contract producers who do not share in the price risk of production are not eligible. Rice Rice futures have been a bit unsteady after charting a bearish key-reversal at the end of August. The uptrend that supported the market through August and early September has been violated, but futures are trading in wide ranges and consolidating above support at $12 and below resistance at $12.60. The ongoing harvest will likely limit the potential upside for the time being. Nationwide, the harvest is 47% complete. Arkansas farmers have harvested 44% of the crop, behind the 5-year average pace of 63%. Rice was included in the new CFAP 2 program as a flat rate crop after being left out of the first CFAP. Eligible acres of rice will be multiplied by a rate of $15 per acre. Cotton After moving to a new seven-month high early last week, cotton futures have worked lower for the past few sessions. Sharp gains were in reaction to the threat of Hurricane Sally, but when key growing areas in southern Georgia and the Delta were spared, the market corrected. Weekly net cotton export sales were supportive, as China continues to be an active buyer, accounting for most of last week’s business. December is building resistance just below 67 cents for the time being. Harvest has begun, and that could keep some pressure on the market. Upland cotton is included in CFAP 2 as a price trigger commodity. Payments based on the price trigger will be the greater of: 1) the eligible
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acres multiplied by a payment rate of $15/acre; or 2) the eligible acres multiplied by a nationwide upland cotton marketing percentage (46%), multiplied by the upland cotton payment rate ($0.08), and then by the producer’s weighted APH yield. Soybeans Soybean futures continue to trend higher, but the November chart is looking toppy. The market has worked lower this week after setting a new contract high of $10.46 ¾ on Friday. Commercial demand for soybeans has been strong and buyers in the Mississippi Delta have been offering a premium for early harvested beans. China continues to be an active buyer of U.S. soybeans, providing support. Recent strength in the dollar and favorable harvest weather across key growing regions are adding pressure. Soybeans are included in CFAP 2 as a price trigger commodity. Payments based on the price trigger will be the greater of: 1) the eligible acres multiplied by a payment rate of $15/ acre; or 2) the eligible acres multiplied by a nationwide soybean marketing percentage (54%), multiplied by the soybean payment rate ($0.58/bu), and then by the producer’s weighted APH yield. Corn Corn futures have seen weakness this week, after setting a new six-month high of $3.79 last Friday. The harvest will be in full swing soon, and traders will be watching the yields closely to better get a handle on the size of the crop. Chinese buying has been supportive, but strength in the dollar could limit exports going forward. Corn is included in CFAP 2 as a price trigger commodity. The nationwide corn marketing percentage is 40%, and the payment rate is $0.58/bushel.
EDITOR Ashley Wallace ashley.wallace@arfb.com