Farm Bureau Press | October 14

OCTOBER 14, 2022 | VOLUME 25 | ISSUE 21

Farm Bureau Press A PEEK INSIDE

OXNER JOINS COMMODITY TEAM Tyler Oxner has joined the Arkansas Farm Bureau Federation as a director of Commodity Activities and Economics. He will provide economic and regulatory guidance as well as be the staff coordinator for the organization’s Aquaculture, Foresty, and Wheat and Feed Grains commodity divisions.

A native of Marvell (Phillips County), where his family still farms, Oxner comes to ArFB after working with Scott Agri Crop Marketers, where he helped farmers managed marketing risk while evaluating commodity futures markets and helped manage client relationships across four states.

Farm Bureau defines Ballot Issue positions, Page 2 Tyler Oxner

He also spent four years with Rabo AgriFinance, assisting farmers with their business structure, financial analysis, projected revenues/expenses and loan facilitation.

Continued on page 2

FIRST CASE OF AVIAN INFLUENZA

Arkansas State Meat Inspection Program Announced, Page 3

On Friday, the Arkansas Department of Agriculture reported this year’s first case of highly pathogenic avian influenza in the state. We recognize this is a challenging and alarming situation for growers in the region, so we have identified some critical information that can help you in your efforts to protect your birds and maintain biosecurity in your houses.

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The following links provide information on how to identify symptoms of avian influenza and what you can do to protect your flock:

GET THE LINKS

APHIS Handout U of A Extension Agency Arkansas Agriculture Department USDA Defend the Flock Program

Scan the QR code to access direct links referenced in each article.

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

OXNER JOINS ArFB Continued from page 1

Oxner holds a master’s degree in agricultural economics and an undergraduate degree in agricultural business, both from the University of Arkansas in Fayetteville.

In addition to Oxner’s hiring, Teague announced that he had adjusted other staffing assignments in the Commodity and Regulatory Affairs department.

John McMinn, who joined the CRA team in Jan. 2020, has added responsibilities for the Soybean division, along with his work with the Specialty Crops commodity division and Local Foods marketing.

Jake Cartwright, who joined ArFB earlier this year, has assumed responsibilities for the Beef, Dairy and Equine commodity divisions.

FARM BUREAU DEFINES BALLOT I Arkansas Farm Bureau has announced opposition to Issues 1 and 4 in the upcoming general election, while supporting Issue 2, which would provide a higher threshold for items to be added to the state constitution.

Issue 1 would allow the General Assembly to call itself into special session, while Issue 4 would make recreational use of marijuana legal and create a state-sanctioned monopoly in the cultivation and distribution of marijuana. ArFB’s support for Issue 2 revolves around its belief that Constitutional revisions should require a higher threshold of voter support.

Arkansas Farm Bureau’s board of directors, citing memberdefined policy positions, affirmed the organization’s efforts to educate members about Issues 1, 2, and 4. Without specific policy on Issue 3, the board did not take a stance on that proposal.

Here is more detail on each of the issues and Farm Bureau’s existing policy position that supports its stances.

Issue 1 Long-standing Arkansas Farm Bureau policy states: “We support the General Assembly continuing to meet once every two years, with the Governor calling special sessions as needed.”

(Government 157, #24.)

Craighead Co. Community Helpers Day | Committee leaders Angie & David Hodges participated in Craighead County’s Community Helpers Day Parade for Brookland’s Kindergarten classes. Students had the opportunity for hands-on experiences with a variety of community helpers and their work equipment.

Jackson Co. Rice Celebration | Eva Young, who will be 101 on Oct. 14 enjoyed a rice and fruit parfait in celebration of September being Rice Month. Young is a lifelong Jackson Co. rice grower.

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Issue 1 would allow the Arkansas legislature to call themselves into special session at any time in one of two ways: the speaker of the House and president of the Senate jointly deciding to convene lawmakers; or two-thirds or more of both the House and Senate signing a written proclamation. Under the current system, only the sitting governor can call a special session. ArFB opposes Issue 1 because it believes the possibility of additional “special sessions” would discourage some Arkansans from seeking elected office, concerned over whether they would have time to serve, and, as such, threaten the balance of power between the branches of government.

The bottom line is special sessions should be called in rare circumstances and not used as a political tool. Since our state’s government was reorganized in 1874, only the sitting governor can call for special sessions of the general assembly/legislature and set the agenda for these sessions. It is a system that has served our state well for almost 150 years and provides a balance between the executive and legislative branches of our government.

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

ISSUE POSITIONS Issue 2 Current Arkansas Farm Bureau policy states: We recommend the legislature study the procedure by which ballot initiatives are proposed, with the possibility of making the process more stringent. (Government 157, #45) Arkansas Farm Bureau policy supports Issue 2, because we believe constitutional issues should meet a higher threshold than a simple majority. Issue 2 would require a 60% vote to approve ballot issues, which, if passed, amend our state constitution. ArFB supports a more stringent process for public referrals to get on the ballot in Arkansas since many recent ballot issues have had a negative impact on our state.

Several ballot issues have become Constitutional law in the past several years, and they are extremely difficult to amend or remove afterwards. It stands to reason that these measures should meet a higher threshold to become a part of the Arkansas Constitution.

Issue 4 On Issue 4, two policy positions currently exist, stating: We support legislation to ban production or use of recreational marijuana in the state of Arkansas. (Crime and Law Enforcement 162, #40). Also, “We oppose the legalization of recreational use of marijuana.” (Narcotics and substance abuse, N158, #3) Issue 4 is a citizen-initiated measure to legalize recreational marijuana. One of the most challenging workplace issues in Arkansas is absenteeism/employee sobriety. Farm Bureau believes legalizing recreational marijuana will intensify this challenge, making it more difficult for agriculture and other key industries to access the workers they need to meet food and product demands. Studies have shown open access to recreational marijuana leads to higher risk of drug addiction in minors and more dangerous roadways for Arkansans. In Washington state, the share of drivers who tested positive for marijuana following a fatal crash has doubled since the state legalized marijuana. And in Colorado, marijuana-related traffic deaths have more than doubled since the state legalized marijuana. On average, states where marijuana was legalized saw a 10 percent increase in auto premiums, and a 16 percent increase the following year, as additional accidents led to higher insurance premiums.

ARKANSAS STATE MEAT INSPECTION PROGRAM ANNOUNCED Gov. Asa Hutchinson, state legislative members, agriculture industry leaders, and the Arkansas Department of Agriculture announced approval of the state meat inspection program, finalized in a cooperative agreement with the U.S. Department of Agriculture’s (USDA) Food Safety and Inspection Service (FSIS). The state meat inspection program will allow the Department to inspect meat products for shipment within Arkansas.

Arkansas joins 28 states participating in FSIS’s State Meat and Poultry Inspection (MPI) programs. These programs allow state inspectors to ensure program enforcement and regulatory compliance in small establishments operating within the state. The MPI programs must develop, administer and enforce requirements “at least equal to” those set forth in the Federal Meat Inspection Act (FMIA).

“This program is important for our livestock producers. Joining the State Meat and Poultry Inspection program and expanding the market for their products will help smaller producers maintain profitability,” said Dan Wright, secretary-treasurer, Arkansas Farm Bureau.

The need for additional meat processing capacity was highlighted by food supply chain disruptions caused by the COVID-19 pandemic in early 2020.

In 2020, the Arkansas Department of Agriculture worked with industry stakeholders to receive and distribute $10.4 million in funding from the Coronavirus Aid, Relief, and Economic Security (CARES) Act through a Meat and Poultry Processing Grant Program. Subsequently, the Arkansas legislature passed Act 418 during the 2021 legislative session to create a state meat inspection program within the Arkansas Department of Agriculture.

Since December 2020, Arkansas’s in-state processing capacity has grown by more than 5 million pounds per year. The processing capacity is expected to continue to grow under the new state meat inspection program due to increased marketing and economic opportunities for local producers.

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

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MARKET NEWS as of Oct. 12, 2022 Contact Brandy Carroll 501-228-1268 brandy.carroll@arfb.com Rice Warm, dry conditions have allowed farmers in the south to harvest the crop in a hurry. Despite a very late start to the crop, farmers nationwide are 81% harvested, which is right on pace with the five-year average. In Arkansas, 90% of the crop is in the bins, ahead of the five-year average of 86%. The October production report increased the all-rice yield by 13 lbs/acre to 7,599 lbs/acre. The 2022–23 export forecast was lowered to 75 million cwt, which would be the lowest all-rice export total since 1991–92. Ending stocks were raised 2.3 million cwt to 33.2 million, but that is still down 16% from the prior year. Futures continue to move lower as harvest pressure takes its toll on the market. Historic strength in the dollar is impacting demand.

Production problems throughout Asia could provide some support, as rice is a staple food for many around the world. Basis levels are being impacted by transportation woes, as barges sit idle on the Mississippi river due to low water levels as the drought continues. November futures have fallen through support at $16.80, suggesting further losses are possible.

Cotton December cotton has been under pressure, charting a bearish outside day last week. The weakness has been limited as the market has continued to close above support at the July low of 82.54 cents. The crop is 29% harvested nationwide. The production estimate in the October 4

report was reduced slightly to 13.8 million bales. The export forecast was lowered by 100,000 bales to 12.5 million bales as world trade is expected to continue at a sluggish pace. That reduction directly carried over into the carryout estimate, which were up 100,000 bales. The season-average price for upland cotton is now forecast to be 90 cents per pound, down six cents from the previous report. December futures have managed to hold above support at the July low of 82.94 cents, but are finding resistance at 90 cents.

Soybeans The October reports saw USDA lower the soybean production forecast by 65 million bushels thanks to a 0.7. bu/acre cut to the nationwide yield estimate, which is now petted at 49.8 bushels per acre. Total production is now forecast to come in at 4.3 billion bushels. Lower production was, however, partially offset by higher beginning stocks, and total supplies were reduced by 31 million bushels.

Exports were reduced 40 million bushels to 2.05 billion bushels.

Increased domestic crush partially offset the lower exports, though, and ending stocks were unchanged from last month at 200 million bushels.

The season-average on farm price is forecast at $14/bushel, down 35 cents from last month’s report.

Technically, November futures have found support at $13.50, and are building resistance at the previous support level of $14.

Corn The October reports reduced the corn production forecast by 49 million bushels to 13.895 billion bushels. That is the result of a reduction in the average yield to 171.9 bushels per acre. Total corn supplies are forecast at 15.322 billion bushels, a decline of 172 million bushels from last month, as lower production and beginning stocks were partially offset by higher

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

imports. The net result of the report was that supply fell more than use, and projected ending stocks were cut 47 million bushels. The seasonaverage on farm price received by producers was raised 5 cents to $6.80/bushel.

Livestock and Poultry In the October supply/demand report, USDA raised the forecast for 2022 red meat and poultry production. Lower turkey production partially offset increases in the production estimates for beef, pork and broilers. Beef forecasts were raised on higher expected slaughter and higher expected carcass weights. Pork was raised on higher slaughter in the third quarter. Broiler production was raised on current slaughter totals and higher eggs set and chicks placed.

The projected average price for steers in 2022 was raised to $143.15/cwt, while the price for barrows and gilts was lowered to $71.08/cwt. Broilers were also lowered to $1.41/lb.

Dairy Milk production forecasts for 2022 and 2023 were raised from the previous report. The cow inventory was raised reflecting a more rapid pace of expansion in late 2022 and into the first half of 2023. Outputper-cow was also raised for the same period.

Both Class III and Class IV prices were raised, reflecting the higher butter and cheese prices respectively. For 2023, price forecasts for butter and cheese were raised while the nonfat dry milk price was lowered. The 2022 all milk price forecast is raised to $25.60 per cwt and the 2023 all milk price is raised to $22.90 per cwt.

EDITOR Ashley Wallace ashley.wallace@arfb.com