Farm Bureau Press for October 23

OCTOBER 23, 2020 • VOLUME 23 • ISSUE 21

Farm Bureau Press A PEEK INSIDE

ARKANSAS MEAT AND POULTRY PROCESSING GRANT RECIPIENTS AWARDED $10.4 MILLION The Arkansas Department of Agriculture has announced the complete list of recipients for funding through the Arkansas Meat and Poultry Processing Grant Program.

The program was previously approved and provided funding of $5 million by the CARES Act Steering Committee and the Arkansas Legislative Council.

An additional $5.4 million in funding for the program was approved today bringing the total funding available through the program to $10.4 million.

Rural Arkansas Sees $11.8 Million Investment in High-Speed Broadband, page 2

A review committee consisting of the Arkansas Department of Agriculture, Arkansas Cattlemen’s Association, Arkansas Farm Bureau, the Livestock Marketing Association, Arkansas Hunters Feeding the Hungry, the University of Arkansas System Division of Agriculture, and the United States Department of Agriculture evaluated the applications and selected recipients.

“The response to the initial $5 million grant to expand our state’s packing capacity highlighted the clear need for additional support for this effort,” said Arkansas Farm Bureau President Rich Hillman. “Arkansas livestock producers are ready to provide our state’s families with more high quality, locally produced protein. We are happy about this additional $5.4 million in funding.

This is a critical step, but now we need to reinstitute the state meat inspection program so we can get more Arkansas meat products to consumers, schools and restaurants. This is an opportunity to impact some of our rural economies and that is needed right now. We look forward to working with Governor Asa Hutchinson, the legislature and other industry groups to make this happen as soon as possible.”

The Department received 45 applications requesting a total of more than $30 million in grant funding. Selected recipients will receive 85.9 percent of the amount requested up to a cap of $500,000 per application.

Collectively, the applicants receiving awards anticipate increasing processing capacity throughout the state by over 2,000 head of cattle, 850 hogs, 7,400

Farm Bureau Launches Think F.A.S.T. for Youth, page 3

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A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

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ARKANSAS FARM BUREAU FOUNDATION IN ACTION (Above) Arkansas FFA Donation | The ArFB Foundation is excited to announce its 5-year commitment to the Arkansas FFA Foundation. Supporting Arkansas youth in agriculture is at the heart of our mission, and we are honored to be a part of this project. Over the next 5 years, the ArFB Foundation will invest $150,000 in the Arkansas FFA Foundations’ Phase 1 improvements at Camp Couchdale that will serve FFA members and agriculture teachers for decades to come.

On hand to present the donation at the ArFB Center was (left to right) Amanda Williams, ArFB director of Women’s Leadership & Farm Bureau Foundation; Warren Carter, ArFB executive vice president; Jennifer Cook, Arkansas FFA Foundation, and Chuck Tucker, ArFB senior vice president.

(Below) Ronald McDonald House Donation | The ArFB Foundation is proud to partner with the Arkansas Farm Bureau Women’s Leadership (WLC) and Arkansas Farm Bureau Young Farmer and Ranchers (YF&R) Committee to present a $50,000 check to Janell Mason, executive director of Ronald McDonald House Charities of Arkansas. This bring our total donations to the RMH to $100,000 in 2020. These donations will help offset projected shortfalls as a result of COVID-19.

Pictured: Lauren Lee, ArFB YF&R; Michael Lee, ArFB YF&R; Doreen Antley, ArFB WLC; Magen Allen, ArFB WLC chair; Janell Mason, executive director, RMH; Kerry Stiles, ArFB WLC vice chair; Amanda Williams, ArFB director of Women’s Leadership & Foundation; Amy Young, ArFB WLC, and Jennifer Craig, ArFB director of Leadership Development and YF&R.

RURAL ARKANSAS SEES $11.8 MILLION INVESTMENT IN HIGH-SPEED BROADBAND The Trump Administration today announced that the United States Department of Agriculture (USDA) is investing $11.8 million in grants to provide broadband service in unserved and underserved rural areas in Arkansas. This investment is part of the $550 million Congress allocated to the second round of the ReConnect Program.

Mountain View Telephone Company (MVTC) will use a $2.9 million ReConnect grant to deploy a fiber-to-thepremises network to connect 1,331 people, 39 farms, six businesses, two fire stations, and one post office to highspeed broadband internet in Stone County.

Northern Arkansas Telephone Company (NATCO) will use a $4.7 million ReConnect grant to deploy a fiber-to-thepremises network to connect 1,202 people, 68 farms, and six businesses to high-speed broadband internet in Marion County.

Arkansas Telephone Company (ATC) will use a $4.1 2

million grant to deploy a fiber-to-the-premises network to connect 491 people, 92 farms, and four businesses to high-speed broadband internet in Pope and Van Buren counties.

“The need for rural broadband has never been more apparent than it is now – as our nation manages the coronavirus national emergency. Access to telehealth services, remote learning for school children, and remote business operations all require access to broadband,” said U.S. Secretary of Agriculture Sonny Perdue. “I am so proud of our rural communities who have been working day in and day out, just like they always do, producing the food and fiber America depends on. We need them more than ever during these trying times, and expanding access to this critical infrastructure will help ensure rural America prospers for years to come.”

To learn more about ReConnect Program eligibility, technical assistance and recent announcements, visit www.usda.gov/reconnect.

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

FARM BUREAU LAUNCHES THINK F.A.S.T. FOR YOUTH The American Farm Bureau has launched a new online youth safety course, Think F.A.S.T. (Farm & Ag Safety Training). The program was developed to help youth aged 14 to 17 think through and learn about avoiding common safety hazards on the farm and ranch.

The program and related materials focus on general safety, leadership and critical thinking skills applied to technical and agriculture-specific contexts. The training is available at no cost to anyone interested in learning about farm safety (Farm Bureau membership is not required for access).

The program includes 10 modules that each take 10 minutes to complete and follow-up competency quizzes.

A curriculum guide for classroom and workshop settings is available for download.

Program modules include, Attention & Distractions with ATVs and UTVs, Spatial Awareness with Livestock, Looking at Situations from Multiple Points of View with Tractors & Machinery, Task Breakdown and Job Safety with Personal Protective Equipment, Matching Tasks and Skills with Electrical, Decision Making for How to Complete a Task with Manual Labor, Situational Management with Bins, Silos and Pits, Empowerment and Permission to Say No with Chemicals & Pesticides, Tough Conversations with Slips, Trips and Falls, and Impact of Injuries with Shop Safety.

The program also includes online self-paced and inperson direct instruction options for the core and technical safety skills including Attention & Distractions, Spatial Awareness, Task Breakdown and Job Safety, Tough Conversations and Impact of Injuries, ATVs, Livestock and Tractors & Machinery.

Literature Donation | Crittenden County Farm Bureau made book donations to every school in the county to foster a lifelong love of learning and appreciation of agriculture. Each school received copies of “Full of Beans,” the AFBF ‘Book of the Year,’ as well as ArFB available materials “The Landscape of Arkansas,” “Farming for the Future,” and “Eatology.”

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poultry, and eight goats and sheep per month. The applicants also anticipate utilizing 258 full-time positions and 75 part-time positions. Recipients will also provide additional further processing and value-added capacity and assist with education and workforce development.

Arkansas ranks 10th in the nation in the value of animals and animal products that provide more than $5.6 billion to the state’s economy annually. In the 2019 production year, Arkansas was ranked 10th in the nation in beef cow inventory and 25th in the nation in cattle and calves with 510,641,000 pounds of production.

Backpack Program | The Independence County Farm Bureau Women’s Committee has been hard at work with Ag in the Classroom activities. Helen Williams (left) recently made deliveries of Ag Readers, rice samples, and peanut butter for the backpack programs to local schools in Independence County.

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

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

Cattle The weakness in cattle futures has resulted in an accelerated sell-off this week. Weaker wholesale beef prices and lackluster cash cattle trade have carried over into futures. Rising coronavirus cases and the lack of an economic stimulus package are also causing demand worries. Technical selling also had a hand in Monday’s collapse. December futures have support between $102.50 and $103.

Feeder futures have been under pressure from weakness in live cattle futures and also strength in corn.

The downtrend in feeders is more established than in the live contracts right now. November does have some support around $133.

Hogs Hog futures continue to show strength. Strong wholesale pork prices and firm cash prices have provided support and the market continues to trend higher. December hogs moved to a 12-month high on Monday, but that high of $72.80 could prove to be tough resistance.

The market hasn’t yet confirmed a top, though.

Rice Rice futures reacted negatively to the monthly production and supply/ demand reports. Supplies were raised as NASS increased the all-rice production forecast by 1.3 million cwt to 226.3 million cwt, on higher harvested area and yields. The all rice yield is forecast at 7,567 pounds per acre, up 38 pounds from the previous 4

forecast. Higher imports, which were increased to 37.3 million cwt, added to the total supply. Projected ending stocks for 2020–21 were raised 1.8 million cwt to 47.7 million, up 66% from last year. The projected 2020–21 season-average all rice farm price was raised $0.20 to $12.80. As of Sunday, the crop was 91% harvested nationwide, compared with 5-year average of 93%. Arkansas was at 89% harvested, compared with 5-year average of 95%. Export demand has been weak, and Asian prices are declining as well. Volume has been high as traders roll out of November contracts and into January. For the past several days, trading has been confined well within the huge trading range on Oct. 9, the day the bearish reports were delivered.

January has so far found support at $12.40, with resistance between $12.70 and $12.80.

Cotton December cotton continues to trend higher and is currently trading at 8-month highs. This week’s close above 70 cents was a technical milestone and indicates the market still has upside potential.

Crop damage from Hurricane Delta has unfortunately been a major bullish factor supporting the market, as Louisiana and Mississippi still had lots of open bolls in the field.

Drought and potential yield loss and abandonment in Texas are also supporting prices. As of Sunday, 34% of the crop nationwide had been harvested, but virtually all of the crop was open bolls.

Arkansas farmers are now 47% harvested, compared with a 5-year average of 66%. The October production and WASDE reports showed slightly lower production, and unchanged mill use, exports and ending stocks. At 7.2 million bales, U.S. ending stocks for 2020–21 are projected at 42% of use.

A PUBLICATION OF THE ARKANSAS FARM BUREAU FEDERATION

Soybeans Aggressive Chinese buying has continued to support soybean futures. Soybean meal prices are also supportive, while depressed soybean oil prices are creating a drag on the market. 2020 soybean production is now forecast at 4.3 billion bushels, down 45 million bushels from the previous report. Supplies are projected to be 4.8 billion bushels, down from the previous report due to lower production and beginning stocks. Exports were raised 75 million bushels, and ending stocks were pegged at 290 million bushels, down 170 million from last month. The season average on-farm price was pegged at $9.80/bushel, up 55 cents.

Resistance for November is at the recent high of $10.79 ¾.

Corn Record-setting Chinese demand continues to support corn futures.

December 2020 futures have an upside objective of $4.20, and are quickly approaching that level. December 2021, however, is struggling with resistance at $4.

Current price levels can be expected to result in increased acreage next year. As of Sunday, the crop was 60% harvested, well ahead of the 5-year average of 43%. The monthly production and supply/demand reports showed lower production, reduced ethanol, feed and residual use, and smaller ending stocks. Total production is now pegged at 14.722 billion bushels, down 178 million from the previous report. Sharply lower beginning stocks carried through, and 2020–21 ending stocks were lowered 336 million bushels.

The average on-farm price was increased 10 cents to $3.60/bushel.

EDITOR Ashley Wallace ashley.wallace@arfb.com