NOW THE LATEST FROM THE ALL AG NEWSROOM...

 

The next Secretary of Agriculture will be:  we don't know yet, but here are the leading names being tossed around by the Obama camp.  The top four names include:

Former Governor of Iowa Tom Vilsack (would be a reward for Iowa carrying Obama in the election.  Vilsak is a politician and lawyer who could follow the lead of the past two Ag Secretaries - both Johanns and Schaefer were former governors - but lacks the inside knowledge of Washington, USDA and the US Congress - not to mention farming.  Vilsak was also a National Co-Chair for Hillary Clinton's Presidential campaign.  We feel the odds are against Vilsak being selected)

Former Texas Congressman Charlie Stenholm (a farmer and now with the firm Olsson Frank and Weeda in Washington, DC. Stenholm shares quite a few of Obama's views, but more importantly wants to control spending and cut the deficit. In addition, he understands farm policy - as co-author of the 2002 Farm Bill - and is well-liked by most every farm and commodity organization, not to mention by most members of the US House and Senate.  Stenholm would also be a good choice for a Texan in the Cabinet - which could pay dividends in 2010 and 2012 elections.  In our minds, Stenholm is the leading candidate for the position)

Lobbyist Marshall Matz (has been highly involved in the Obama campaign and is with the firm Olsson Frank and Weeda - along with Stenholm - and would be a reward for all his efforts.  Matz, like Vilsak, lacks the knowledge and inside understanding of USDA - though he did serve as Special Counsel to the Senate Ag Committee. Matz is a principal at OFW which may play a decision in the process.  He might actually suggest Stenholm over himself for future reference.  OFW already has former Ag Secretary John Block on staff and having Stenholm return to the firm following a stint as Secretary could bolster the firm as the premier ag lobbying firm on the hill - and you know that the ag lobby is big business)

National Farmers Union President Tom Buis (a long-shot in our opinion, but nonetheless mentioned as a possibility)

House Ag Committee Chairman Colin Peterson (would be a great choice by the Obama administration, but Peterson has stated that his intention for this next year is reforming USDA.  Though surely that could be done by the Secretary, it will require legislation from Congress so the administration may be better served by having him as the Chairman of the Committee - especially if Blanche Lincoln (D-AR) takes the reins of the Senate Ag Committee)

GUEST INTERVIEWS:

 

DAY	GUEST	LISTEN TO INTERVIEWS...
Monday	Bob Maurer, Manduca Trading in Chicago	click here to listen
Tuesday	Scott Hazlett, CEO of MachineryLink	click here to listen
Wednesday	James Hunt, Texas Cattle Feeders Association	click here to listen
Thursday	Vic Lespinasse, GrainAnalyst.com	click here to listen
Friday	Rick Tolman, CEO National Association of Corn Growers	click here to listen

           

Interviews air during the Agri-Business Report at 2:12pm, 6:12pm, 10:12pm and the following morning at 8:12am...

 

                               

 

 

 

AG HEADLINES:

 

• (11/18/08) The Environmental Protection Agency has raised the ethanol blend rate for 2009 to 10.21 percent. That’s up from this year’s 7.76 percent. This means that refiners, importers and blenders must blend into gasoline that much more ethanol to meet their renewable volume obligations for next year. The EPA calculation is set to meet the provisions of the Energy Independence and Security Act of 2007, which requires 11.1 billion gallons of renewable fuel production in 2009. That number includes 500 million gallons of biodiesel and renewable diesel.

 

• (11/18/08) A new report released by an analyst at the consulting firm LECG LLC shows that for every dollar of federal tax incentive for ethanol - five dollars are returned. The report notes that since 1978, the U.S. ethanol industry has generated an estimated 33.4 billion dollars in tax revenues for the federal government and nearly 17-billion of additional tax revenues for state and local governments, reduced America's tab for imported oil by 97.5 billion dollars and reduced farm program payments by more than three-billion annually since 2006. Don Hutchens, executive director of the Nebraska Corn Board says, - those figures and positive overall return are not surprising. Hutchens notes, - an analysis of the impact of ethanol production in Nebraska also shows a tremendous economic return, which helps drive farm income and positive ripples through our economy. Nationally, ethanol represented seven percent of U.S. gasoline supply, or roughly nine billion gallons this year. The industry is set to provide 10.5 billion gallons of ethanol next year, allowing fuel blenders to meet the Renewable Fuels Standard.

 

• (11/18/08) The Federal Trade Commission has issued a report which concludes that the U.S. fuel ethanol market, measured on the basis of production or capacity, remains un-concentrated. The report states, as of September of 2008 160 firms produced ethanol in the United States – a one-year increase of 57 firms. The FTC report states that the largest producer accounts for approximately 11 percent of domestic ethanol capacity, down from 16 percent in 2007. The report concludes that the level of concentration in ethanol production would not justify a presumption that a single firm, or a small group of firms, could wield sufficient market power to set or coordinate price or output levels. In addition, the ease of entry by new firms and the availability of ethanol imports provide additional constraints on current market participants.

 

• (11/18/08) More than 75 countries are expected to be represented during an International Conference on biofuels in Sao Paulo, Brazil. The two day meeting, which begins Thursday, encourages international discussion about the opportunities and challenges presented by biofuels. It will provide a forum for governments, the private sector, and civil society, the academic and scientific community, and private voluntary, non-governmental, and international organizations to focus on the biofuels aspects of energy security, climate change, sustainability, innovation, and international trade. Agriculture Secretary Ed Schafer will lead the U.S. delegation. During the conference, Schafer says,- the United States will emphasize the sustainable production and use of biofuels as a positive contribution to worldwide economic development. Development that maintains food production, increases energy independence and mitigates climate change. Schafer says, - we are excited for the rapidly developing second generation biofuels which will allow production of energy based on a wide variety of locally available materials. While in Sao Paulo, Schafer will also meet with several agriculture ministers from around the world and with other high-level officials.

 

• (11/18/08) A coalition of organizations is calling on Congress and the Obama Administration to repeal what they call – the harmful ethanol subsidies. The groups represent the livestock sector, government watchdog groups, environmental advocates, hunger organizations, tax groups and retailers. Representatives of the groups have released a national survey of one thousand Americans which indicates that 89 percent of those surveyed are concerned about the rising cost of food. Keeping in mind that corn ethanol production is the cause of only 10 percent of food price inflation, nearly half became less likely to support policies aimed at promoting corn for ethanol production. The coalition includes the National Turkey Federation, the American Meat Institute, the National Chicken Council and the National Cattlemen's Beef Association. The groups say Congress created the first subsidy for ethanol 30-years ago and have increased the cost to taxpayers nearly five-billion dollars annually. The National Corn Growers Association responded strongly, saying - this attack on ethanol comes from the same group that failed earlier this year in its efforts to reduce the renewable fuels standard and increase our country’s dependence on foreign oil. NCGA President Bob Dickey says - these same ethanol critics are the ones who virtually promised to reduce food prices immediately, and have failed to do so, even though corn prices and energy prices are down by more than half in the last few weeks.

 

• (11/18/08) Agricultural lenders from seven states surveyed by the Federal Reserve Bank of Kansas City reported healthy farm credit conditions during the third quarter, but raised concerns about the outlook for 2009. Some borrowers faced tighter credit standards as almost 20 percent of the 255 respondents raised collateral requirements but less than 2 percent reported refusing a loan due a shortage of funds. According to the survey, released earlier this week, farm loan demand was projected to rise in the fourth quarter and participating lenders anticipated additional tightening in credit standards. Looking ahead, farm incomes are expected to decline well below the record high reported at the beginning of the year and many respondents expressed concern that rising input costs would cut profit margins next year. The Kansas City Fed covers Colorado, Kansas, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.

 

• (11/18/08) The Environmental Protection Agency has transmitted to the President its annual Performance and Accountability report, as required by law. In his cover letter, EPA Administrator Stephen Johnson wrote, - EPA achieved results that demonstrate progress in advancing the Agency’s mission of protecting human health and the environment. Johnson expects air quality to improve as a result of implementing stringent new standards, including for ozone. He said food is expected to be safer after the year’s completed reassessment of all food-use pesticides. Johnson emphasized that EPA is – more prepared to respond to emergencies and disasters. EPA chief Financial Officer Lyons Gray says EPA continues to rank among the highest performing federal agencies under the President’s Management agenda scorecard. Anyone interesting in viewing the 555 page report can visit the EPA web site at www.epa.gov.

 

• (11/18/08) Canada has confirmed its 16th case of BSE. Bovine Spongiform Encephalopathy has been identified in a 7-year-old dairy cow from British Columbia. The Canadian Food Inspection Agency reports that no part of the animal’s carcass entered the human food or animal feed systems. The animal’s age and location are consistent with previous cases found in Canada. This case should not affect exports of cattle or beef from Canada. The OIE has determined that Canada is a Controlled Risk country for BSE. OIE says Canada had two BSE cases in 2003, one each in 2004 and 2005, five cases in 2006, three in 2007 and four so far this year. Canada also had an imported case of BSE in 1993.

 

• (11/18/08) A bill called the Omnibus Land Management Act of 2008 has been considered in committee and recommended for consideration by the Senate as a whole. That was last June and the last we’ve heard about it until now. R-CALF USA has stepped forward urging the Senate to - oppose this piece of legislation. R-CALF USA believes this particular legislation would subject millions of acres of land to government control and regulation and could prevent U.S. citizens from exercising their right of property ownership and wise multiple use of federal lands. The organization says the bill grabs so-called “wilderness areas,” “heritage areas,” and “scenic rivers,” and extends damaging centralized command and control of these lands. R-CALF USA Private Property Rights Committee Co-Chair Harlan Hentges says - this bill creates new ‘conservation’ programs that would effectively encumber property rights, and millions of additional acres of land will be controlled by a vast and unaccountable bureaucracy. Ultimately, Hentges says, - this bill forces American taxpayers to pay for an unnecessary restriction on the beneficial use of these valuable resources.

 

• (11/18/08) Just a few years ago T. Boone Pickens and his wife, Madeleine, led the fight to close the last horse slaughterhouse in the United States. At the time an outcry was heard over the fate of unwanted horses. During a public hearing in Reno, Nevada Monday, Madeleine Pickens made known her intentions to adopt not just the two-thousand healthy wild horses maintained by the government, but most or all of the 30-thousand horses and burros kept in federal holding pens. To accomplish this adoption Madeleine Pickens is now looking for land in the West that would be an appropriate home for the horses. She is working with the Bureau of Land Management to adopt the horses, while the agency persuades Congress to shift 20 million dollars in funding to feed and protect the horses now in captivity for another year.

 

• (11/18/08) Agricultural Research Service entomologist James Cane and his colleagues are discovering the extent to which wild bees can help pollinate pumpkins, other squashes, and gourds. Such help is especially needed in view of the ongoing problems with colony collapse disorder faced by the nation's premier pollinator, the European honey bee. Cane’s research has shown, for the first time, that male Peponapis pruinosa play a surprisingly significant role in pollinating the blossoms of yellow summer squash. In the past, less than 10 percent of pollination has been attributed to male bees. But, with both male and female bees on the job, fewer bees overall would be needed. This suggests that growers and beekeepers hives of honey bees could be freed up for work elsewhere. Crane says simple lust may explain the male squash bee's role in pollinating blooms. Unlike male bees that mainly hunt for females at nest sites, P. pruinosa males seek their mates at flowers. At the same time, as they fly from one blossom to the next, the bees inadvertently carry grains of pollen trapped in tiny hairs on their bodies--thus helping ensure that plants have the needed pollen.

 

• (11/18/08) Before you microwave that “Lean Cuisine” dinner today, know that it may be recalled. Springville, Utah-based Nestle Prepared Foods Company has recalled nearly 880-thousand pounds of frozen chicken meals that may contain foreign materials such as hard plastic. The products are: 9.5-ounce packages of "Lean Cuisine Pesto Chicken with Bow Tie Pasta" with a Best Before date of May 2010; 10.5-ounce packages of "Lean Cuisine Chicken Mediterranean" brand frozen meals with a Best Before dates of 2010 or November 2010. And 12.5-ounce packages of "Lean Cuisine Chicken Tuscan" brand frozen meals with Best before dates of: September, 2009; October2009; and November 2009. USDA's Food Safety and Inspection Service says the recalled products were produced from August 18th through October 27th and were distributed to retail establishments nationwide. The problem was discovered after Nestle received consumer complaints and a report of one injury.

 

• (11/18/08) Agriculture Secretary Ed Schafer has announced 32 appointments to the Cattlemen's Beef Promotion and Research Board. All appointees will serve 3-year terms beginning January 31, 2009. The Secretary selects the appointees nominated by beef, veal, dairy and importers certified organizations. USDA's Agricultural Marketing Service monitors operation of the board. The board oversees collection of one dollar per head on all cattle sold in the United States and one dollar per head equivalent on imported cattle, beef and beef products. In addition, the board contracts with established national, non-profit, industry-governed organizations to implement programs of promotion, research, consumer information, industry information, foreign marketing and producer communications.

 

 

• (11/17/08) This is a busy week in Washington, D.C. as both sides of Capitol Hill meet in a “Lame-Duck” session to work on a financial aid package. The Senate met Monday and the House will follow on Wednesday, to take up what the Democratic leadership hopes will be an aid package for domestic automakers. The package was to be considered by the Senate first because that is where the rules permit any lawmaker the ability to block legislation. Earlier, the White House had expressed opposition to the bailout proposed by Democrats who had been working with Republican senators and the Bush administration to find common ground. Also, freshman orientation and party organizational caucuses for the new 111th Congress will take place this week. The only chairmanship that appears to be contested is over the House Energy and Commerce Committee, where Representative Henry Waxman of California is vying for the seat long held by John Dingell of Michigan.

 

• (11/17/08) Sara Wyant of Agri-Pulse says she has in her possession a week-old document that suggests front-runners for Cabinet nominations, senior White House staff and independent agency heads. Wyant says it appears to be on target because it correctly identified Rahm Emanuel as chief of staff, Robert Gibbs as press secretary and Ron Klain as chief of staff for Vice President-elect Joe Biden. Missing from that document is the name of Senator Hillary Rodham Clinton. Suggested Secretaries of Agriculture are mostly the names already the subject of widespread speculation but contain a couple of surprises. They are former Iowa Governor Tom Vilsack; National Farmers Union President Tom Buis, and three former members of Congress: Representatives Charles Stenholm of Texas, Jim Leach of Iowa, and Calvin Dooley of California (former CEO of the Grocery Manufacturers Association or GMA). The spread sheet also lists Dooley as a potential U.S. Trade Representative, along with Thomas McLarty III, former chief of staff in the Clinton Administration; Lael Brainard, Brookings Institution economist; Daniel Tarullo, former assistant Secretary of State for economic and business affairs; and Michael Wessel, a public affairs consultant. Only two are mentioned for administrator of the Environmental Protection Agency: Robert F. Kennedy Jr., and Kathleen McGinty. McGinty chaired former President Clinton's Council on Environmental Quality and headed the Pennsylvania Department of Environmental Protection.

 

• (11/17/08) The Department of the Interior will make available more than 190-million acres of federal land in 12 western states for geothermal energy development. A department environmental impact statement identifies 118 million acres of public lands managed by the Bureau of Land Management and 79 million acres of National Forest System lands that could be opened to future geothermal leasing. The statement says this could potentially lead to 5,540 megawatts of new geothermal power capacity by 2015. DOI will amend 122 BLM land use plans to allow for geothermal development, while allowing the Forest Service the discretion of evaluating geothermal leasing and considering whether to amend its land use plans. The document also includes site-specific environmental analyses for 19 pending geothermal lease applications for seven sites in Alaska, California, Nevada, Oregon, and Washington. The U.S. Geological Survey says the Interior Department's estimates of potential geothermal power production may actually be low. In late September, the USGS released its first assessment of geothermal resources in more than 30 years and found that identified geothermal resources in the West could produce nine thousand MW of power, while another 30 thousand could be generated from conventional geothermal resources that have not yet been discovered.

 

• (11/17/08) The Central Vermont “Cow Power” program is touted as being the nation’s first manure-based farm-to-consumer energy program. Begun in 2004, the program continues to grow. The most recently added membership is the U.S. Forest Service’s Rutland headquarters. Forest Service Supervisor Meg Mitchell says - enrolling in “Cow Power” had a great impact. We are supporting a working landscape, helping to improve water quality and removing methane from the atmosphere. The Cow Power process is simple: manure and other agricultural waste are held in a sealed concrete tank at the same temperature as a cow’s stomach, 101 degrees. Bacteria digest the volatile components, creating methane and killing pathogens and weed seeds. The methane, which is roughly 20 times more harmful than carbon dioxide in trapping heat in the atmosphere, fuels an engine/generator. CVCP customers can choose to receive all, half or a quarter of their electrical energy through Cow Power, and pay a premium of 4 cents per kilowatt hour. That fee goes to participating farm-producers, to purchase renewable energy credits when enough farm energy isn’t available, or to the CVPS Renewable Development Fund. That fund provides grants to farm owners to develop on-farm generation. Farm-producers are also paid 95 percent of the market price for all of the energy sold to CVPS.

 

• (11/17/08) The use of melamine as a food additive may have been going on for some time now in China. And even if there has not been a cover-up, it appears to have been kept a secret. The Hong Kong government now admits that melamine has seeped into large parts of China’s food and feed industry – posing health hazards to consumers. Just this past week, a brand of chicken eggs from China’s leading egg processor, Dalian Hanwei Enterprise Group, was removed from the shelves in some stores after Hong Kong food safety regulators found excessive levels of melamine in the company's eggs. Authorities in the eastern city of Hangzhou recalled another company's eggs while Hong Kong's government said tests on eggs from two more processors found excessive amounts of melamine. There have been no reports of illnesses from the new contamination.

 

• (11/17/08) R-CALF USA and the Organization for Competitive Markets have filed a suit in the U.S. District Court – Northern District of Illinois, Eastern Division, against the proposed acquisition of National Beef Packing Company by Brazilian-owned meatpacker JBS. This suit joins a suit filed earlier by the U.S. Department of Justice and 17 state attorneys general. R-CALF USA CEO Bill Bullard believes this new suit will assist the government’s case - because we can fully represent the views and competitive concerns of farmers, ranchers and feeders who are most affected by this merger. The government’s lawsuit focuses primarily on the impacts on fat cattle and consumers. Bullard says the R-CALF USA/OCM lawsuit further addresses the impacts on feeders and other cattle. The suit also explains how packers use captive supplies to leverage down prices and how this negatively impacts the price for all classes of cattle.

 

• (11/17/08) The Agricultural Research Service has entered into licensing agreements with four seed distributors interested in marketing two new varieties of hairy vetch. Hairy vetch is a common cover crop planted in the fall that lies dormant throughout the winter and flowers in the spring. It can be tilled into the soil or rolled onto the soil surface, leaving a mat of protective stems that hold in moisture, prevent weed growth and curb erosion. The two new varieties, Purple Bounty and Purple Prosperity, are hardier and flower earlier than traditional varieties, adding up to two weeks to the growing season for corn, tomato, pumpkin and other summer crops. Organic farmers have been using hairy vetch for decades because it adds nitrogen to the soil without the use of synthetic or manufactured fertilizers. But earlier flowering varieties had limited use north of Maryland because they cope poorly with northern winters. The new varieties allow farmers to grow earlier-flowering vetch as far north as Ithaca, New York.

 

 

TEXAS CROP & WEATHER REPORT: