Agriculture News
Broiler lawsuit ignores economic reasons for cutbacks
Watt Ag Net | Posted on September 20, 2016A class-action antitrust lawsuit charges that U.S. broiler companies conspired to reduce chicken production to cause chicken prices to rise to “unprecedented” levels during the period from 2008-2014. In a press release, a 50 percent increase in chicken prices is what is described as “unprecedented.” During the period of time the lawsuit addresses, a number of significant events occurred to change the economics of poultry production in the U.S. The country’s largest broiler company, Pilgrim’s Pride, filed for chapter 11 bankruptcy protection. The Renewable Fuel Standard (RFS), enacted in 2005, ramped up and ethanol production assumed the role as the largest user of corn in the U.S. Combine the growth of the RFS with a few droughts and corn prices reached record high levels. In fact, one might even refer to the U.S. average corn price in 2012 of $6.67 per bushel, nearly three times the $2.28 average for 2006, as “unprecedented.” Ultimately, the positive economics of producing corn caused acreage to be shifted to corn production and the cost of virtually all food products increased. The Great Recession which started with the financial crisis in 2007-2008 and lingered past 2010 reduced consumer income and borrowing while increasing consumer saving. Consumers had less money to spend on meat and per capita red meat and poultry consumption declined by 9 percent from 2007 to 20014. It shouldn’t be a surprise that individual broiler companies responded to these economic challenges in similar manners. Reducing chick placements and culling breeder flocks a few weeks early is a reasonable response to ongoing losses on sales of chicken on commodity markets. Reducing orders for future flocks of breeders is also to be expected when total feed costs reach previously unimagined levels at the same time that there is a surplus of animal protein on the market. Remember that the droughts during this time frame also reduced productivity of pasture land in the western U.S. which resulted in cattle being brought to market rather than being held over as breeding stock.
Activists pushing Massachusetts ban on eggs from some farm animals
WCVB | Posted on September 20, 2016Animal rights activists are facing little organized opposition as they push a ballot question that would ban the sale of eggs and other food products in Massachusetts that come from farms where animals are confined to overly restrictive cages. Supporters of the question have reported raising $1.6 million so far in direct contributions and another $525,000 in in-kind contributions, like donated staff times. The state's latest campaign finance deadline passed without any opposition group filing a fundraising report with the Office of Campaign and Political Finance. The single biggest source of funding for Citizens for Farm Animal Protection - the group pushing the ballot question - has come from the Maryland-based Humane Society of The United States, which has contributed about $1.5 million in direct and in-kind contributions.
Commentary: Nurturing the next generation of farmers
West Central Tribune | Posted on September 20, 2016When it comes to farming, it seems the critics always have the easy answer. They portray this line of work as if every day brings blue skies and no worries. The reality is the farming business comes with a fair share of challenges; chief among them is the unpredictability of weather and markets. Anything can and will happen. Most kids don't return to the farm, which is evident by the average age of the American farmer. It's 58 years old and it keeps creeping upward. This is not a good trend for American agriculture and something that should worry all of us. If we lose our farmers then we lose our ability to grow our own national food supply. We need the next generation to be involved in production agriculture. But we cannot expect them to even consider it when this way of life seems to always be under attack, making an already challenging profession even more difficult. Contending with bad weather and bad markets pales sometimes to the uncertainty that comes out of Washington, D.C., through tax policies, regulations, and the threat of policymakers arbitrarily cutting the very tools that farmers need to survive hard times: crop insurance and farm policy.
NCBA seeks to intervene in OCM lawsuit
http://www.agri-pulse.com/NCBA-seeks-to-intervene-in-OCM-lawsuit-09162016.asp | Posted on September 20, 2016The National Cattlemen's Beef Association is looking to have a say in a lawsuit seeking to force disclosure of records that USDA gathered in an audit of the beef checkoff program. NCBA filed a motion to intervene this week in the case originally brought in 2014 by the Organization for Competitive Markets with the help of attorneys from the Humane Society of the United States. NCBA said some of the records involve confidential business information and that the lawsuit is an attempt by HSUS to “divert attention from beef promotion activities.” The OCM complaint seeks disclosure of agency records from USDA's Office of the Inspector General audit that began in 2011. That program is better known as the beef checkoff, which collects a $1 per head assessment on all live cattle sold in the U.S. to be used for research and promotion purposes.
Big crops, high dollar mean tough year for grain growers
Capital Press | Posted on September 20, 2016Another year of bumper crops and high inventories are likely to spell another year of lower prices for corn, soybean and wheat growers, and alternately keep some feed costs in check for livestock producers. Ag economists at Purdue University’s Center for Commercial Agriculture laid out what grain growers are facing in a crop outlook webinar on Sept. 13 based on USDA’s latest crop estimates and world supply and demand report. The wheat crop is expected to bring record yields of 52.6 per acre, although lower acreage won’t bring record production. But at 2.3 billion bushels, it’s the largest crop since 2003, according to USDA. Inventories are also an issue, with decade-high inventories of corn and soybeans and the highest inventory of wheat since 2009 by the end of the marketing year. Approximately 50 percent of a full year’s use of wheat at the end of next May will be leftover when harvest begins on next year’s crop in June and July, he said.
Will Science or Activist Politics Decide Atrazine's Future?
AgSense | Posted on September 20, 2016Recently, the EPA released a draft Ecological Risk Assessment on atrazine, a popular herbicide used for weed control in growing the vast majority of corn, sorghum and sugarcane in the United States. Unfortunately, the federal agency is refusing to follow the law. Instead of using sound science in today’s review process, political activism is driving the re-registration of atrazine. According to the latest assessment, EPA is recommending aquatic life level of concern (LOC) be set at 3.4 parts per billion (ppb) on a 60-day average. The EPA’s current LOC for atrazine is 10 ppb. However, scientific evidence points to a safe aquatic life LOC at 25 ppb or greater. The proposed level cuts average field application rates down to 8 ounces (one cup) per acre. If EPA continues to use the same false logic or endpoints as noted in the preliminary assessment, atrazine would be rendered useless in controlling weeds in a large portion of the Corn Belt – effectively eliminating the product.
Pennsylvania says most conservation districts agree to do inspections
Farm and Dairy | Posted on September 20, 2016The Pennsylvania Department of Environmental Protection reports that conservation districts in 29 counties in the Chesapeake Bay Watershed have successfully applied to conduct farm inspections aimed at reducing agricultural runoff into local streams and rivers and the bay. Nine conservation districts failed to meet application criteria or have declined to participate. Conservation districts were asked to conduct certain farm inspections on the DEP’s behalf, in exchange for funding to support bay technician staff. Conservation districts had previously worked with farmers and landowners on a mostly voluntary basis — and some district were concerned that doing inspections would cross the line between helping farmers and enforcing compliance. At first, the inspections will be limited to ensuring that farmers have completed nutrient/manure management plans, and agricultural erosion and sediment control plans. Both plans have been required in Pennsylvania since at least 1985.
Methane bill includes some safeguards for Calif. dairies
Capital Press | Posted on September 20, 2016A bill to reduce methane emissions from California’s dairies and livestock operations is headed to the governor following its passage on the final day of the state Legislature’s regular session. SB 1383 would require the state Air Resources Board to begin implementing a strategy to reduce methane emissions 40 percent below 2013 levels by 2030. Implementation would be required no later than Jan. 1, 2018, with regulations to take effect on or after Jan. 1, 2024. Originally opposed by the dairy industry — which argued the mandate would target dairy operations with unachievable goals, no viable strategy and no financial assistance — the bill survived with some added safeguards to make it slightly more palatable. The livestock portion of the bill pertains to manure management and requires that regulations to reduce emissions be economically and technica lly feasible and foregoes ARB’s proposal to directly regulate enteric emissions from livestock. It defines what ARB’s authority is related to the dairy industry, as opposed to unrestrained authority given the agency in SB 32 — which establishes a new mandate of reducing greenhouse gas emissions 40 percent below 1990 levels by 2030, said Rob Vandenheuvel, manager of Milk Producers Council. SB 32 doubles down on a 2006 legislative goal of reducing greenhouse gas emissions to 1990 levels by 2020, giving ARB virtually unlimited authority to meet that goal, he said.
Industry groups urge USDA to allow comments on GIPSA
Meatingplace (registration required) | Posted on September 20, 2016Five industry groups Monday sent a letter to Secretary of Agriculture Tom Vilsack urging him to allow public comment if USDA proceeds with certain portions of a livestock and poultry marketing rule originally proposed in 2010 that are strongly opposed by the industry. “The opposition expressed six years ago remains as staunch as ever, and we urge the agency to abandon the proposed rule because of the significant adverse effect adopting it would have on the meat and poultry industry, particularly the producer community, who will be disproportionately affected,” wrote the North American Meat Institute, National Cattlemen’s Beef Association, the National Chicken Council, the National Pork Producers Council and the National Turkey Federation.
Animal activists outline their own cruel tactics
Meatingplace (registration required) | Posted on September 20, 2016Of all the off-the-wall statements made by speakers at HSUS’ Taking Action for Animals Conference and the National Animal Rights Conference this summer, there is one I just can’t quite get out of my head. “When it is time to launch a campaign, find a vulnerable target, prepare everything for at least a few weeks and then assemble an overwhelming force to utilize from day one. The crueler it is, the quicker the fight is over.” This gem was offered by David Coman-Hidy of The Humane League, speaking in a session titled “Engaging Institutions: Getting food processors, distributors and servers to reduce the use of animals.” Coman-Hidy continued, stating that once the activists achieve a “victory” and get a public statement from a company, they should start over with a new company and under no circumstances give a reprieve. “When the competition is drowning, stick a hose in their mouth.” With statements like this, I find it unbelievable that food companies would ever work with – and I know there is a very loose definition here of “work with” – groups like The Humane League. And yet, some food brands have mentioned the group in press releases announcing animal care policies.