DECEMBER 20, 2019 • VOLUME 22 • ISSUE 25
Farm Bureau Press A PEEK INSIDE
UNITED SOYBEAN BOARD ELECTS ARKANSAS FARMER AS CHAIR United Soybean Board farmer-directors elected Jim Carroll III from Brinkley, Arkansas, as Chair at the annual board meeting on Dec. 11. In addition, 19 new directors, appointed by Secretary of Agriculture Sonny Perdue, were sworn in by the U.S. Department of Agriculture. “We’ve made great strides to innovate beyond the bushel and infuse every opportunity we can into growing markets and creating new uses for soybeans,” said Carroll. “We have a lot to be proud of, but also have tremendous potential to further demand as we continue our progress through wise and strategic investments. One of my priorities as Chair is to recognize the performance and sustainability of U.S. soy and show our customers its many capabilities as a renewable alternative.”
Farm Bureau Insurance donates to SAU’s new poultry science facility, page 2.
Jim Carroll
USB leadership, with oversight from USDA, guides the activity of the national soy checkoff in accordance with the strategy outlined by the 78-member board. USB continues to focus on three priority areas for investment: meal, oil and sustainability. During the meeting, they considered market impacts, challenges and opportunities that will affect soybean value, hearing from several key industry influencers. USB also recognized the American Soybean Association’s 100th anniversary at the meeting, noting its commitment to domestic and international policy issues important to the soybean industry. At the meeting, USB also elected nine directors to serve alongside Carroll on the Executive Committee: Dan Farney, Vice Chair, llinois; David Iverson, Secretary, South Dakota; Meagan Kaiser, Treasurer, Missouri; Woody Green, South Carolina; Tom Oswald, Iowa; Mark Seib, Indiana; Belinda Burrier, Maryland; Ralph Lott II, New York and Andy Fabin, Pennsylvania In addition, three farmer-directors were elected to serve on the Strategic Management Committee: Doug Winter, Illinois; Ed Lammers, Nebraska and Philip Good, Mississippi.
J.P. Fairhead To Serve as Arkansas Agriculture Feral Hog Eradication Coordinator, page 3.
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Engineering Award | Women’s Committee Chair Donna Bemis presents the Ronald McDonald House Charities of Arkansas Executive Director Janell Mason a $4,000 donation on behalf of the Arkansas Women’s Leadership Committee. The committee has partnered with Ronald McDonald House for more than 20 years. Dr. Trey Berry, SAU president, and David Moore, executive vice president celebrate with SAU administrators and the Farm Bureau leadership team science facility.
FARM BUREAU INSURANCE SAU’S NEW POULTRY SCIE In a tremendous show of support for the students of Southern Arkansas University, Farm Bureau Mutual Insurance Company of Arkansas, Inc. has generously donated $100,000 to the University’s new poultry science facility. Dr. Trey Berry, SAU’s president, said the gift represents the extraordinary bond between Farm Bureau and SAU and its budding poultry program. Farm Bureau Insurance made the gift to the SAU Foundation. It supports construction of the new poultry house on the north side of the Agriculture Center. “SAU is truly grateful for our partnership with Farm Bureau,” said Berry. “It is committed to providing facilities necessary for our students to be educated in an environment that meets local industry needs.”
Retirement Party | Mike Fielder, Phillips County Agency Manager, has retired from 40 years of service with Farm Bureau. A party was held Dec. 13. ArFB state employees and local staff were in attendance. 2
He thanked David Moore, executive vice president and general manager of Farm Bureau Mutual Insurance of Arkansas, for his ongoing support for SAU’s students. “Farm Bureau has been a partner in our success long before this commitment,” Berry said. “They have provided internships for many of our agriculture and business students and employed many of our graduates.” Moore said that, as the leading provider of agricultural insurance services in Arkansas, Farm Bureau Insurance assumes a responsibility of helping customers make informed buying
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J.P. FAIRHEAD TO SERVE AS FERAL HOG ERADICATION COORDINATOR The Arkansas Department of Agriculture has hired John Paul (J.P.) Fairhead as its first Feral Hog Eradication Program Coordinator. The newly created position is part of a $3.4 million grant recently awarded to the Department through the USDA Feral Swine Eradication and Control Pilot Program.
and general manager of Farm Bureau Mutual Insurance of Arkansas, as Farm Bureau contributes $100,000 to the University’s new poultry
DONATES TO ENCE FACILITY decisions. “Our partnership with Southern Arkansas University is unique in that it provides educational opportunities for our customers and staff. Plus, it assists SAU in providing learning activities for students who want to be involved in the poultry industry. Southern Arkansas University, Farm Bureau, and the surrounding communities all win.” In recognition of this extraordinary gift, the building will be named the Farm Bureau Insurance Agriculture Education Facility. It will also have the Farm Bureau Insurance Broiler/ Breeder Room inside. New signage reflecting the Farm Bureau name will be installed directing students and guests to the facility. In addition to strengthening the educational component of SAU’s poultry program, Farm Bureau will document the proper construction techniques used in building the poultry house.
Fairhead, employed with the Arkansas Game & Fish Commission since 2008 as a Natural Resource Program Technician and Field Biologist, has served as the Feral Hog Eradication Program Coordinator for the Arkansas Game and Fish Commission since February of 2013. He has been involved in the Arkansas Feral Hog Eradication Task Force since it was formed in 2017, serving on the Management and Control Subcommittee. Arkansas was one of 10 states to receive funding through the USDA Feral Swine Eradication and Control Pilot Program. The program will be a collaborative effort between the NRCS, APHIS, Arkansas Conservation Districts, Arkansas Association of Conservation Districts, and other Feral Hog Task Force members to reduce feral hog populations, address resource concerns, and provide public education about effective control methods in four project areas across the state. More information about the Feral Hog Task Force can be found at aad.arkansas.gov/feral-hogeradication-task-force. Feral hogs, and the damages associated with them, are an issue in Arkansas and the entire southeastern United States. Damage estimates approach $1.5 billion annually to the U.S. and approximately $19 million in Arkansas. Feral hogs are a threat to agriculture, forestlands, waterways, wildlife, and human health.
Poultry is the leading agriculture industry in Arkansas, and SAU’s Poultry Science program will prepare students for careers in the ever-growing and changing industry. The poultry industry provides more than 15,000 jobs in Arkansas. Forty-one percent of farms in Arkansas produce some type of poultry, and the poultry industry pays an average of $58,776 in wages and benefits.
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MARKET NEWS as of November 21, 2019 Contact Brandy Carroll 501-228-1268 brandy.carroll@arfb.com
USDA Program Signups Underway USDA continues to enroll producers in ARC and PLC for 2020. Producers who have not made their elections should make an appointment with their FSA office. Texas A&M University has a decision-making tool that will help farmers analyze payment yield updates and expected payments for 2019 and 2020. The tool can be found at the following address: https://www.afpc. tamu.edu/. Today, December 20, is the deadline to sign up for the Market Facilitation Program. Producers of corn, cotton, rice, peanuts, soybeans, wheat, diary and hogs, among others, are eligible to apply for assistance through the program designed to aid those impacted by trade disuptes. Trade Agreement Progress The U.S. and China have reached a potential trade deal. It is being reported by various outlets that the agreement has the U.S. offering to eliminate as much as half of the existing tariffs on $360 billion of Chinese goods and cancelling another round of tariffs. The White House has announced that China will buy $40$50 billion in U.S. ag products. The agreement is expected to be signed next month. This week t he U.S. House passed the U.S.-Mexico Canada Agreement (USMCA) after reaching an agreement with the Trump Administration. The deal doesn’t contain big changes for grains, which is good news. Mexico is a key buyer of both rice and corn. The agreement also contains new market access for U.S. dairy products, eggs and turkey in Canada. 4
USMCA now heads to the Senate for approval before it can be signed by the U.S. Soybeans The soybean charts show that the market has likely bottomed for the time being. November 2020 is trending sharply higher but will have tough resistance between $9.70 and the recent high of $9.80. Buying from China has provided support in recent weeks. However, there is real potential for a huge Brazilian crop and there are concerns that China has filled their needs as their hog crop is estimated to be 45% smaller than a year ago. Even so, soybean stocks are projected to decline by approximately 50% from the previous marketing year. Rice Rice futures have also been moving higher. Nearby January has been unable to close above resistance at $12.80, however, which could result in a more sideways trading pattern going forward. The most recent Supply/ Demand report was positive for rice prices as USDA cut 3 million/cwt from their long-grain carryout estimate, bringing U.S. carryout to 16.7 million cwt. That is down from 32.6 million in the previous marketing year. The average on-farm price estimate was unchanged, however, at $11.80/cwt. Weekly exports of 36,900 metric tons were disappointing, but shipments of 75,600 metric tons was up 28% from the four-week average. Cotton Cotton futures have rallied in recent weeks, breaking out to new 5-month highs. March futures are now bumping against resistance at 68 cents, while new-crop December has resistance at 69 cents. News of a potential deal between the U.S. and China is a major factor in the rally. We will need to see this translated into a signed deal and increased exports, though, or the impact on the market will be shortlived. The December Supply/Demand report also had good news for cotton. USDA cut the size of the 19 crop to 20.2 million bales, down 600,000 bales from last month, but still up from 18.37 million last year. Demand was
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unchanged, meaning the cut carried over directly into the carryout estimate, which is now pegged at 5.5 million bales. The average on-farm price was unchanged, however, at 61 cents a pound. Corn Corn futures have also seen strength in recent weeks. News that USMCA was finally moving forward was great news for corn, and Mexico was a major buyer of corn last week, making the 5th largest single day U.S. corn purchase on record. However, exports are still approximately 42% behind last year’s pace and are not on pace to reach USDA’s 2019-2020 export forecast. Livestock Cattle futures have been trading in a mostly sideways pattern, with March finding support around $123. News of the potential trade deal with China send futures to new highs, but the market has quickly retreated as questions remain about when that agreement will be signed and the impact it might have on exports. February will have resistance at the recent high just below $128. Hogs Hog futures also got a boost from the potential agreement with China. With African swine fever wiping out about half of the hog heard in that country, they will need to import to meet the demand. February has found resistance at $71/cwt for the time being, and could fall into a sideways pattern. Dairy Milk production forecasts for 2019 and 2020 were unchanged in the December supply/demand report. The 2019 all milk price forecast was unchanged at $18.60/cwt, while the 2020 all milk price was raised to $19.40/cwt.
EDITOR Ashley Wallace ashley.wallace@arfb.com