Farm Bureau Press | November 10

NOVEMBER 10, 2023 | VOLUME 26 | ISSUE 23

Farm Bureau Press A PEEK INSIDE

AVIAN INFLUENZA CONFIRMED IN ARKANSAS COMMERCIAL FLOCK Testing has confirmed a case of avian influenza on an Arkansas poultry farm in Madison County. Following an investigation by the Arkansas Department of Agriculture’s Livestock and Poultry Division in collaboration with United States Department of Agriculture (USDA) Veterinary Services, the USDA National Veterinary Services Laboratory has confirmed poultry from this farm have tested positive for highly pathogenic H5N1 avian influenza (HPAI).

There is no public health concern, and avian influenza does not affect poultry meat or egg products, which remain safe to eat. The Arkansas Department of Agriculture and partner agencies, including the USDA, are working to contain the situation. Actions include sampling and quarantining nearby poultry flocks.

Under the provisions of the Poultry Disease and Flock Condemnation Rule, which can be found online, it is prohibited to conduct the following actions within an affected area:

AFBF Celebrates Court Order that EPA Must Follow Science, Page 2

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• Exhibit poultry and domestic waterfowl.

• Move poultry or domestic waterfowl.

• Sell, barter, trade, auction or give away poultry or domestic waterfowl at fairs, swap meets, auctions, flea markets and similar events and locations.

An affected area is an area determined by the Arkansas Department of Agriculture of approximately 25 miles surrounding a flock with a confirmed case of HPAI. The boundaries of the affected area for the confirmed case in

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Madison County are Gateway (northernmost), Osage (easternmost), Combs (southernmost), and Harmon (westernmost).

Additionally, all free-range and backyard poultry within an affected area, whether intended for commercial or noncommercial use, must be confined under cover or inside structures to prevent contamination from migratory birds. Backyard flock owners who have sick or unusual deaths in their flocks should email info@agriculture.arkansas.gov or call (501) 823-1746.

More information on avian influenza can be found here and information on protecting poultry can be found here.

AFBF CELEBRATES COURT ORDER THAT EPA FOLLOW SCIENCE The Eighth Circuit Court of Appeals granted a major victory to farmers recently when it ruled the Environmental Protection Agency must base its decisions on sound science and the law. The court was clear that EPA failed to follow the law when it revoked chlorpyrifos tolerances – effectively banning the pesticide. The American Farm Bureau Federation was one of several agriculture organizations that sued EPA, asserting the agency ignored scientific evidence that proved the pesticide’s safety.

“AFBF appreciates the Eighth Circuit Court of Appeals for recognizing that the Environmental Protection Agency failed to follow the law when it revoked the use of chlorpyrifos,” said AFBF President Zippy Duvall.

“Farmers and ranchers are committed to growing safe and nutritious food, and they use science to guide decisions on how to manage pests and insects.

Today’s decision sends a message to EPA that it, too, must use sound science when drafting rules.”

Read the Eighth Circuit Court of Appeals ruling here.

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USDA OFFERS CONSERVATION AS Private landowners, tribes, land trusts and other groups wanting to restore and protect critical wetlands and protect agricultural lands and grasslands through the USDA’s Natural Resources Conservation Service (NRCS) Agricultural Conservation Easement Program (ACEP) have until Nov. 30, 2023, to apply for funding consideration during the 2024 enrollment period.

There will be a second cutoff date of Feb. 29, 2024, also for funding consideration for Fiscal Year 24. The deadline is for the Wetlands Reserve Easements (WRE) and Agricultural Land Easements (ALE) programs.

The Inflation Reduction Act (IRA) authorized the use of ACEP funds for easements or interests in land most likely to reduce, capture, avoid, or sequester carbon dioxide, methane or nitrous oxide emissions on program-eligible land. Under this authority, there is also an IRA sign-up period for both ACEP-WRE and ACEP-ALE easements.

This authority will have continuous enrollment, with an initial batching deadline of Nov. 13.

ACEP provides assistance to landowners and eligible entities helping conserve, restore and protect wetlands and productive agricultural lands and grasslands. NRCS accepts ACEP applications year-round, but applications are ranked and funded by enrollment period.

Wetland Reserve Easements Through ACEP Wetland Reserve Easements, NRCS helps landowners and tribes restore, enhance and protect wetland ecosystems. NRCS and the landowner work together to develop a plan for the restoration and maintenance of the easement.

Wetland conservation easements are either permanent, for 30 years, or the maximum extent allowed by state law. Tribal landowners have the added option of enrolling in 30-year noneasement restoration contracts. Eligible lands include: • Farmed or converted wetlands that can successfully be restored; • Croplands or grasslands subject to flooding; and • Riparian areas that link protected wetland areas.

Agricultural Land Easements Through ACEP Agricultural Land Easements (ALE), NRCS

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SSISTANCE TO LANDOWNERS provides funds to eligible entities to purchase easements on private working lands. This program helps keep working lands working, especially in areas experiencing development pressure.

Eligible cooperating entities include state or local agencies, non-profits and tribes.

Landowners continue to own their property but voluntarily enter into a legal agreement with a cooperating entity to purchase an easement. The cooperating entity applies for matching funds from NRCS for the purchase of an easement from the landowner, permanently protecting its agricultural use and conservation values. Landowners do not apply directly to NRCS for funding under ALE. Easements are permanent.

Eligible lands include privately owned cropland, rangeland, grassland, pastureland and forestlands.

Inflation Reduction Act Funded Agricultural Conservation Easements Through the Inflation Reduction Act, authorized the use of ACEP funds for easements or interests in land most likely to reduce, capture, avoid or sequester carbon dioxide, methane, or nitrous oxide emissions on program-eligible land. This will allow for the possibility of additional funding for both ACEP-WRE easements and ACEP-ALE easements in Arkansas. This funding is nationwide and all applications will be ranked nationally for funding and then funding amounts will be determined at the state level based on the national funding availability. Priority areas include land that either meets one of the primary ACEPWRE land eligibility categories or is eligible as adjacent land, and that will be restored and managed as native forest habitat.

More Information ACEP remains a major part of the 2018 Farm Bill and program implementation will continue during fiscal year 2024.

Landowners and tribes interested in wetland reserve easements and partners interested in agricultural land easements should contact their local USDA service center. More about ACEP and other technical and financial assistance available through NRCS conservation programs can be found online or at www.ar.nrcs. usda.gov.

ARKANSAS FARM BUREAU FOUNDATION NIGHT-IN The Arkansas Farm Bureau Foundation will be hosting this year’s Foundation Night-In event during the Arkansas Farm Bureau 89th Annual Convention.

The event will be held from 6–8 p.m. Nov. 29 at Little Rock’s Statehouse Convention Center, Governor’s Hall IV. Event tickets are $75 each or $700 for tables of 10. To reserve tickets, please contact your county office. The deadline to reserve tickets is Nov. 15.

Several items have been added to the live auction this year, including giving the highest bidder the opportunity for his/her county to have the first spot in the dinner line. Additionally, there will be an Ag in the Classroom Book Barn stocked with accurate ag children’s books, an educational cow and the Annual ArFB Foundation Picnic. There will be other great items, including a Lifetime Hunting and Fishing License, hotel packages and hunting trips included in a silent auction.

All proceeds of the Foundation Night-In Event will benefit the Arkansas Farm Bureau Foundation.

Watershed Mitigation | Arkansas Farm Bureau hosted a water systems symposium in conjunction with USDANRCS, the Arkansas Black Mayors Association and other stakeholders to discuss implementation plans for a Flood Prevention Operations Watershed Mitigation project. A $96 million USDA grant has been awarded to assist communities with negative impacts of natural disasters, such as floods, droughts, landslides, and erosion, in targeted areas throughout Arkansas. ArFB vice president of governmental affairs Stanley Hill and vice president of environmental issues Evan Teague offered guidance and support for the program, which was held Nov. 8.

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MARKET NEWS as of November 8, 2023 Contact Brandy Carroll

brandy.carroll@arfb.com

Tyler Oxner

tyler.oxner@arfb.com

Rice Rice futures have been under some pressure the last few days. General concerns about food security have underpinned the market, but Asian prices have declined as perhaps those fears have lessened for the time being.

Weekly rice exports were impressive last week, with USDA reporting 93,500 metric tons, which is 78% higher than the previous four-week average. The majority of the rice went to Mexico and Colombia — the result of free trade agreements with those countries. Under the agreement with Colombia, the TRQ auction held in October was successful, with the entire available quota of 19,790 metric tons sold to exporters.

The January contract has overhead resistance at $16.60 and is building some support around $15.80.

Cotton Cotton futures have fallen to new four-month lows. Harvest pressure is certainly a factor, with 57% of the crop out of the field. Disappointing export demand has also been a factor. Last week was the exception, though, with a marketing-year high of 457,100 bales sold to China and other foreign buyers.

Recent weakness in the dollar is likely having a positive impact on cotton exports as U.S. cotton becomes more competitive. December has violated support at the June low, which means there is little technical support on the chart above 74.25 cents. March does still have support at the June low near 77 cents.

Soybeans The soybean market faced the impact of potential planting delays in South America due to spotty weather conditions. The uncertainty surrounding planting progress in key 4

soybean-producing regions like Brazil and Argentina added an element of volatility to soybean prices. China’s import volumes also played a role in shaping the market, as imports surged significantly compared to the previous year. However, U.S. exporters faced competition as Brazil, with surplus soybean stocks, was a primary supplier to China. This shift in import dynamics had implications for the soybean market. Furthermore, the anticipation of tight U.S. soybean supplies in the 2023-24 season, as reflected in USDA expectations, provided underlying support for soybean prices. Overall, the soybean market’s movements were influenced by a combination of factors, including export demand, weather-related planting concerns, changing import dynamics, and supply expectations.

Corn Corn prices remained steady, failing to sustain an earlier rally. Key factors impacting the market included Brazil’s 66% planting progress for its first corn crop and the Ukrainian Grain Association’s raised production forecast, exceeding USDA export estimates.

U.S. export inspections were in line with expectations, and year-to-date inspections surpassed the USDA forecast. Money managers extended their short position to over 144,000 contracts. However, 81% of the U.S. corn harvest had been completed, with some states lagging due to challenging weather conditions. The WASDE report is expected to maintain the corn-crop estimate at 15.0 billion bushels, with U.S. ending stocks above 2.1 billion bushels, weighing on corn prices. In South America, weather conditions in Brazil and Argentina influenced the market. The corn market experienced fluctuations driven by factors like a stronger dollar and easing oil prices, following a recent rally. Despite progress in corn harvest, challenges in the Upper Midwest and reduced grain quality affected prices, with certain states facing slow harvest conditions.

The corn market awaited fresh news to guide price movements.

Wheat Wheat prices saw mixed movements driven by various factors. The USDA’s

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Crop Progress report revealed a surprising 3% weekly increase in wheat condition ratings, leading to bearish sentiment as global demand remains satisfied by rapid Russian exports.

Ukraine’s winter crops were successfully planted and are in good shape, providing stability to the market. In the U.S., winter wheat conditions improved by 3% due to rains in the Southern Plains, surpassing analyst expectations.

This positive development is favorable for 2024 wheat production, particularly in areas affected by drought in recent years. Additionally, the market faced challenges as U.S. export inspections hit a multi-year low, down 27% from the previous year. Saudi Arabia’s purchase of 710k mt of wheat from outside the kingdom, likely from Russian and Ukrainian sources, added to the dynamics. The upcoming WASDE report is anticipated to provide insights into international estimates, particularly regarding Russia’s wheat production.

While prices fluctuated, factors like improved crop conditions, global demand, and export figures played pivotal roles in shaping the wheat market’s direction.

Hogs The rebound in hog futures continues after the February contract charted a key reversal and broke through downtrending resistance. The October low looks like a major bottom at this point, but the market is struggling to break through resistance at $78. From a fundamental perspective, ample hog supplies and expectations for higher production in 2024 will limit the upside potential.

Cattle The February live cattle chart looks extremely bearish at this point. The market gapped lower on Oct. 23, but a failed attempt to close that gap between $186.60 and $187.52 has resulted in another leg down as prices fell to new five-month lows.

EDITOR Ashley Wallace ashley.wallace@arfb.com