July 29 Cattle on Feed, Cattle Inventory, and Ag News

United States Cattle on Feed Up 3 Percent
   
Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.7 million head on July 1, 2012. The inventory was 3 percent above July 1, 2011. The inventory included 6.74 million steers and steer calves, up 4 percent from the previous year. This group accounted for 63 percent of the total inventory. Heifers and heifer calves accounted for 3.92 million head, up 1 percent from 2011.

Placements in feedlots during June totaled 1.66 million, 2 percent below 2011. Net placements were 1.60 million head. During June, placements of cattle and calves weighing less than 600 pounds were 460,000, 600-699 pounds were 320,000, 700-799 pounds were 390,000, and 800 pounds and greater were 494,000.

Marketings of fed cattle during June totaled 1.97 million, 6 percent below 2011. This is the lowest fed cattle marketings for the month of June since the series began in 1996. Other disappearance totaled 66,000 during June, 8 percent below 2011.

United States All Cattle on Feed Up 1 Percent
Cattle on feed July 1, 2012, from all feedlots in the United States, totaled 12.3 million, up 1 percent from the 12.2 million on July 1, 2011. Cattle on feed in feedlots with 1,000 or more head accounted for 87 percent of the total cattle on feed on July 1, 2012, up from 86 percent last year.



NEBRASKA CATTLE ON FEED UP 12 PERCENT

Nebraska feedlots, with capacities of 1,000 or more head, contained 2.27 million cattle on feed on July 1, according to the USDA’s National Agricultural Statistics Service, Nebraska Field Office.  This inventory was up 12 percent from last year.  This is the highest July inventory since the data series began in 1994.    Placements in feedlots during June totaled 385,000 head, up 24 percent from 2011 and the highest June placements since the data series began in 1994.    Marketings of fed cattle during June totaled 465,000 head, the same as last year.  Other disappearance during June totaled 10,000 head, compared with 15,000 head  during 2011.



Iowa Cattle on Feed July 1, 2012

Cattle and calves on feed for slaughter market in Iowa for  all  feedlots  totaled  1,235,000  on  July  1,  2012 according  to  the  USDA,  National  Agricultural Statistics Service,  Iowa Field Office.   The  inventory is down 5 percent from June 1, 2012 but up 2 percent from  July  1,  2011.    Feedlots with  a  capacity  greater than  1,000  head  had  620,000  head  on  feed,  down 3 percent  from  last month but up 5 percent  from  last year.    Feedlots with  a  capacity  less  than  1,000 head had 615,000 head on  feed, down 8 percent  from  last month and down 1 percent from last year.

Placements  during  June  totaled  121,000  head,  a decrease  of  4  percent  from  last  month  but  up 6 percent  from  last  year.    Feedlots  with  a  capacity greater  than  1,000  head  placed  61,000  head,  up 3 percent  from  last month  but  down  5  percent  from last  year.    Feedlots  with  a  capacity  less  than 1,000 head  placed  60,000  head.  This  is  down 10 percent  from  last month  but  up  20  percent  from last year.

Marketings  for  June  were  182,000  head,  up 18 percent from last month and up 1 percent from last year. Feedlots with a capacity greater than 1,000 head marketed 77,000 head, up 20 percent from last month but down 4 percent  from  last  year.     Feedlots with  a capacity less than 1,000 head marketed 105,000 head, up 17 percent from last month and up 5 percent from last year. Other disappearance totaled 9,000 head.



July 1 Cattle Inventory Down 2 Percent

All cattle and calves in the United States as of July 1, 2012, totaled 97.8 million head, 2 percent below the 100.0 million on July 1, 2011. This is the lowest all cattle and calves inventory for July 1 since the series began in 1973.  All cows and heifers that have calved, at 39.7 million, were down 2 percent from July 1, 2011.
*    Beef cows, at 30.5 million, were down 3 percent from July 1, 2011.
*    Milk cows, at 9.2 million, unchanged from July 1, 2011.
   
Other class estimates on July 1, 2012 and the changes from July 1, 2011, are as follows:
*    All heifers 500 pounds and over, 15.7 million, down 2 percent.
*    Beef replacement heifers, 4.2 million, unchanged.
*    Milk replacement heifers, 4.1 million, down 2 percent.
*    Other heifers, 7.4 million, down 3 percent.
*    Steers, weighing 500 pounds and over, 14.0 million, down 1 percent.
*    Bulls, weighing 500 pounds and over, 1.9 million, down 5 percent.
*    Calves under 500 pounds, 26.5 million, down 3 percent.
*    All cattle and calves on feed for slaughter, 12.3 million, up 1 percent.

The 2012 calf crop is expected to be 34.5 million, down 2 percent from 2011. Calves born during the first half of the year are estimated at 25.1 million, down 2 percent from 2011.



Governor Heineman Announces Saline County Designation As Livestock Friendly

Governor Dave Heineman today announced the official designation of Saline County as Nebraska’s newest Livestock Friendly County. With the addition of Saline County, there are now 17 counties designated as Livestock Friendly through the state program, including: Adams, Box Butte, Dawes, Deuel, Gage, Garden, Grant, Hitchcock, Jefferson, Keith, Lincoln, Morrill, Scotts Bluff, Sheridan, Wayne, and Webster Counties.

"In receiving this designation, Saline County has shown it is committed to supporting the county’s livestock industry and related economic development," said Governor Heineman. "Being part of the Livestock Friendly program is a way to recognize the tremendous impact the livestock industry has on Main Streets and the local economy. It provides jobs for those working with animals and a marketplace for grain and hay producers, while also adding value to those products. With this designation, Saline County has demonstrated it is open to agribusiness and the benefits that come from responsible livestock production."

Governor Heineman presented the Livestock Friendly certificate to Saline County Commissioners Willis Luedke, William Wenz, Janet Henning, Marvin Kohout, and Richard Jiskra. The county also will receive road signs bearing the program logo to display along highways. The program is coordinated by the Nebraska Department of Agriculture (NDA).

NDA Director Greg Ibach said the official designation makes a positive statement about Saline County. “It was clear from the submitted materials that Saline County officials have given some purposeful thought to supporting the livestock industry.”

To apply for a livestock friendly county designation, the county board must hold a public hearing and pass a resolution to apply.  A completed application is then submitted to NDA for review.  Local producers or community groups can encourage their county board to submit a livestock friendly county application.

Additional information on the Livestock Friendly County program is available by contacting NDA toll free at 800-422-6692, or by visiting the NDA website at www.agr.ne.gov and clicking the Livestock Friendly County link.



UNL Extension Launches New Drought Resources Website

University of Nebraska-Lincoln Extension has created a new website that offers resources from the Institute of Agriculture and Natural Resources and others for dealing with drought in the region.

The site is at droughtresources.unl.edu.

"As we Nebraskans know, our weather brings new challenges every year," said Kathleen Lodl, UNL Extension associate dean. "Last year it was flooding, this year it's drought. UNL Extension has a deep wealth of research-based, unbiased expertise, and our new website will give Nebraskans quick, easy access to that expertise."

"By all accounts," Lodl added, "it appears the 2012 drought may be one for the record books. While we can't control that, we can do our best to manage water resources to mitigate damage. That's what we're committed to in UNL Extension."

The new site includes links to information on crops, livestock, economics, water, families, and home and garden. It will include the latest weather forecasts from state climatologist Al Dutcher, as well as links to such ongoing programing as "Market Journal", CropWatch and "Backyard Farmer;" UNL Extension publications; UNL news releases; and links to a number of key resources outside the university.



 Johanns Urges Prompt USDA Action on Drought Disaster Declaration, Launches Drought Relief Website

Sen. Mike Johanns (R-Neb.) wrote Secretary of Agriculture Tom Vilsack urging prompt action on the Nebraska State Farm Service Agency’s (FSA) request for 58 Nebraska counties to be declared Secretarial Disaster Designations. This disaster designation qualifies producers on a case-by-case basis in those counties for emergency, low-interest loans through the FSA. In the letter, Johanns also asked Vilsack to consider allowing emergency haying and grazing of Conservation Reserve Program (CRP) lands for the entire state.

A copy of the letter can be viewed HERE... http://www.johanns.senate.gov/public/?a=Files.Serve&File_id=e3fd6c6a-0d66-4dc8-8062-7950b8862896. 

“As of today, farmers and ranchers in every Nebraska county are facing drought conditions,” Johanns wrote. “And, more than 75 percent of the state is in a state of severe drought … the Nebraska State Farm Service Agency has requested a Secretarial Disaster Designation for 58 counties.  As you know, this designation can ensure that farmers and ranchers in these counties are eligible for low-interest emergency loans.  Thus, I urge you to act promptly on this and other similar requests in the days and weeks ahead.”

Currently 69 Nebraska counties have been approved for emergency haying and grazing of CRP lands. Johanns asked Vilsack to consider approving the entire state for this emergency relief.

Johanns also launched a page on his Senate website devoted to the drought. The website will provide timely updates on the drought, actions taken by the state and federal government and a list of agencies that can assist Nebraska ranchers and farmers. Click HERE to visit the website... http://www.johanns.senate.gov/public/?p=2012-drought-response. 



Former Panhandle Center Director Hibberd is New UNL Extension Dean and Director
Charles "Chuck" Hibberd, former district director of the Panhandle Research and Extension Center, is the new dean and director of University of Nebraska-Lincoln Extension.

The Lexington, Neb. native and UNL graduate will assume the position Oct. 1.

Hibberd has been director of Extension and associate dean of agriculture at Purdue University since 2007. Previously, he was director of the Panhandle center at Scottsbluff for 13 years.

Hibberd assumes leadership of UNL Extension at a critical time, said Ronnie Green, Harlan vice chancellor of the Institute of Agriculture and Natural Resources.

"There are a number of opportunities ahead for UNL Extension to be a major part of new initiatives at the University of Nebraska, such as the Daugherty Water for Food Institute, the Buffett Early Childhood Education Institute, and the about-to-be-launched Rural Futures Institute," said Green, who also is University of Nebraska vice president for agriculture and natural resources.

"The issues and needs are changing rapidly and new challenges and opportunities are developing," Green added. "It will be exciting to have Dr. Hibberd bring some of his new ideas and perspectives from his experience at Purdue, coupled with the deep understanding he has of Nebraska and Nebraska Extension."

When Hibberd spoke to faculty and staff earlier this month during the interview process, he said, "We can't sit on our laurels. We can't continue to do things the way we've always done them."

He praised the "big, bold projects" under way at UNL and said UNL Extension is viewed as a national leader.

"It's an honor to be part of an organization that is viewed in such high esteem," Hibberd said.

Hibberd received his bachelor's degree in agriculture, with an animal science major and his master's and Ph.D. degrees from Oklahoma State University in animal science and animal nutrition, respectively. He was a faculty member at OSU from 1982-94.

Hibberd replaces Elbert Dickey, who retired this summer. Alan Moeller, assistant IANR vice chancellor, is serving as interim dean and director of UNL Extension until Hibberd arrives.

UNL Extension, with a network of 83 offices serving Nebraska's 93 counties, is part of the Institute of Agriculture and Natural Resources. It also administers the 4-H program.



ASA and Syngenta Announce 2013 Leadership At Its Best Class

Members of the 2013 Leadership At Its Best (LAIB) class will participate in advanced leadership development training Aug. 6-10, in Greensboro, N.C., focusing on leadership and communications, media relations, public speaking development, policy issues, and network with producers representing the National Corn Growers Association. The program is designed to provide current state Board directors with advanced leadership skills development so they can pursue future leadership positions.

The 2013 LAIB class is: Colt Clemmons (Ala.), Bill Raben (Ill.), Tom Griffiths (Ind.), Jeff Jorgenson (Iowa), Brice Bunck (Kan.), Jed Clark (Ky.), Dan Keenan (Mich.), Belinda Burrier (Mid-Atl.), Dan Brandt (Minn.), Paul Freeman (Minn.), Nathan Dorn (Neb.), Ryan Richard (N.D.), Mark Klepper (Tenn.) and John Simon (Wis.).

Part two of the program will be held in Washington D.C. in March 2013 to expose the participants to Capitol Hill and ASA Board meeting activities.



June Commercial Red Meat Production Down from Last Year

Commercial red meat production for the United States totaled 4.02 billion pounds in June, down 5 percent from the 4.22 billion pounds produced in June 2011.

Beef production, at 2.25 billion pounds, was 5 percent below the previous year. Cattle slaughter totaled 2.87 million head, down 8 percent from June 2011. The average live weight was up 28 pounds from the previous year, at 1,290 pounds.

Veal production totaled 8.9 million pounds, 20 percent below June a year ago. Calf slaughter totaled 56,000 head, down 23 percent from June 2011. The average live weight was up 4 pounds from last year, at 270 pounds.

Pork production totaled 1.75 billion pounds, down 4 percent from the previous year. Hog slaughter totaled 8.55 million head, down 4 percent from June 2011. The average live weight was up 1 pound from the previous year, at 274 pounds.

Lamb and mutton production, at 12.4 million pounds, was down 1 percent from June 2011. Sheep slaughter totaled 168,900 head, 8 percent below last year. The average live weight was 147 pounds, up 10 pounds from June a year ago.

January to June 2012 commercial red meat production was 24.3 billion pounds, up slightly from 2011. Accumulated beef production was down 2 percent from last year, veal was down 9 percent, pork was up 3 percent from last year, and lamb and mutton production was up 2 percent.

Iowa ........: 506.1 million pounds, 96% of June 2011      
Nebraska .: 609.9 million pounds, 98% of June 2011
Kansas ....: 463.9 million pounds, 92% of June 2011
    


Monitor Earthen Basins and Manure Application

Dry, hot weather combined with manure application or irrigation can have unintended consequences.  Cracks in the soil can provide a near direct line for manure to reach a stream. The same weather conditions can cause problems in earthen basins used to store manure, according to the Iowa DNR.

"We don't want to add to livestock farmers' stress levels, but we've had similar conditions a few years ago and had several fish kills and water quality problems," said Cindy Martens, an environmental specialist in the DNR's Spencer field office. "Farmers think it's dry and the liquid manure will just soak in. They may want to irrigate to provide moisture to the crop, but often they don't realize how fast it can travel straight to a tile line and then into a stream. We just want people to be aware that it can be a problem, so they can do something about it."

Martens said the problem is most likely to occur when farmers start to irrigate a crop or spread liquid manure on alfalfa or pasture. "I've also seen problems in dry years with a gated pipe going from a basin to a crop field," she said. "And some of our field staff are seeing big cracks in the walls of earthen basins."

If manure application is necessary, the DNR has the following tips to help reduce the risk of manure going to a stream:
-- Check for cracks in the soils before applying. If soils are cracked, delay application until soil moisture increases, if possible.
-- Find all underground tile inlets and where tile lines outlet into streams or ponds. Cover or block off any inlets.
-- Have emergency spill kit and information on hand before applying.
-- Check the nutrient or manure management plan for required separation distances from streams, lakes and other sensitive areas.
-- Consider a setback for injected manure, even when it's not required.
-- Apply at the slowest possible rate.
-- Move hoses and irrigation equipment frequently.
-- Check tile outlets before, during and after application.
-- If it rains or the outlet is discharging, check tile outlets and the stream or pond below the outlet for odor, solids and impacts to fish or other aquatic life such as crayfish.
-- Stop applying manure immediately if manure is discharging.
-- Contain and clean up any spilled manure.

Producers are required to call the DNR 24-hour spill line at 515-281-8694 to report spills or discharges as soon as possible or within six hours of the discovery or beginning of the spill.

"The sooner farmers call, the better, because the DNR has trained specialists who can help contain the manure," said Martens. "The quicker they are notified, the more likely they can help producers minimize damage to fish and water quality downstream.

DNR specialists also advise checking the berms of earthen basins frequently. If there are large cracks or signs of leakage, the producer may need to wet down the berm or fill the cracks.

Producers can also request technical assistance from their local DNR field office. Find phone numbers and staff specialties at http://www.iowadnr.gov/. 



Northey to Visit IDA Grove, Marcus, Orange City, Remsen

Iowa Secretary of Agriculture Bill Northey Thursday announced that he will be visiting Ida, Cherokee, Sioux and Plymouth Counties on July 23 as part of his efforts to visit each of Iowa's 99 counties again in 2012.

Northey will visit the Ida County Fair in Ida Grove, tour Little Sioux Corn Processors in Marcus, tour Van Beek Natural Science in Orange City and then visit Remsen Processing in Remsen. All events are open to the press.

The details of the visits follow here:
-- Ida County -- 10:30 a.m., visit Ida County Fair, 2332 Hwy 59, Ida Grove
-- Cherokee County -- 12:30 p.m., tour Little Sioux Corn Processors, 4808 F Ave., Marcus
-- Sioux County -- 2 p.m., tour Van Beek Natural Science, 3689 460th St., Orange City
-- Plymouth County -- 3:30 p.m., tour Remsen Processing Center, 230 S. Washington, Remsen

Northey, a corn and soybean farmer from Spirit Lake, is serving his second term as Secretary of Agriculture. His priorities as Secretary of Agriculture are promoting the use of science and new technologies to better care for our air, soil and water, and reaching out to tell the story of Iowa agriculture.



USDA Cold Storage Highlights

Total red meat supplies in freezers were down 6 percent from the previous month but up 15 percent from last year. Total pounds of beef in freezers were down 5 percent from the previous month but up 9 percent from last year. Frozen pork supplies were down 7 percent from the previous month but up 20 percent from last year. Stocks of pork bellies were down 25 percent from last month but up 1 percent from last year.

Total frozen poultry supplies on June 30, 2012 were up 5 percent from the previous month but down 6 percent from a year ago. Total stocks of chicken were up 1 percent from the previous month but down 14 percent from last year. Total pounds of turkey in freezers were up 10 percent from last month and up 8 percent from June 30, 2011.

Total natural cheese stocks in refrigerated warehouses on June 30, 2012 were up 2 percent from the previous month but down slightly from June 30, 2011.  Butter stocks were down 7 percent from last month but up 28 percent from a year ago.

Total frozen fruit stocks were up 7 percent from last month and up 13 percent from a year ago.  Total frozen vegetable stocks were up 3 percent from last month and up 6 percent from a year ago.



USDA Announces Sign-Up Date for Highly Erodible Land Initiative under the Conservation Reserve Program

Agriculture Secretary Tom Vilsack today announced that the U.S. Department of Agriculture will begin sign-up for the Highly Erodible Land Initiative under the Conservation Reserve Program (CRP) on July 23, 2012. The purpose of this initiative, announced by Secretary Vilsack in February, is to protect up to 750,000 acres of the nation’s most highly erodible croplands. Producers may enroll at their local Farm Service Agency (FSA) county office. Enrollment will continue until the 750,000 acre limit has been met.

“CRP is an important program with more than 25 years of success in protecting the nation’s natural resources through voluntary participation,” said Vilsack. “We are excited to include this new initiative that targets the most fragile cropland, in addition to other targeted initiatives that are currently available under the CRP.”

CRP is a voluntary program designed to help farmers, ranchers and other agricultural producers protect their environmentally sensitive land. Currently, 29.6 million acres are enrolled in CRP. Through this Highly Erodible Land Initiative, eligible landowners receive annual rental payments and cost-share assistance to establish long-term, resource conserving covers on eligible cropland for a period of 10 years. Croplands with an Erodibility Index of 20 or greater are eligible for enrollment.

In March, Secretary Vilsack announced an increase of 1 million acres of land in a new CRP Initiative to Restore Grasslands, Wetlands and Wildlife. On June 12, a portion of the 1 million acres available for the initiative were allocated. Initiatives receiving acres are: Wetland Restoration, 200,000 acres; Habitat Buffers for Upland Birds (Quail), 150,000 acres; Duck Nesting Habitat, 150,000 acres; and Pollinator Habitat, 100,000 acres. Sign-up for the Pollinator Habitat initiative began on June 12 as part of the continuous sign-up criteria.

CRP has a quarter-century legacy of successfully protecting the nation’s natural resources through voluntary participation, while providing significant economic and environmental benefits to rural communities across the United States. Under CRP, farmers and ranchers plant grasses and trees in crop fields and along streams or rivers. The plantings prevent soil and nutrients from washing into waterways, reduce soil erosion that may otherwise contribute to poor air and water quality, and provide valuable habitat for wildlife. Plant cover established on the acreage accepted into the CRP will reduce nutrient and sediment runoff in our nation’s rivers and streams. In 2011, as a result of CRP, nitrogen and phosphorous losses from farm fields were reduced by 623 million pounds and 124 million pounds respectively. The CRP has restored more than two million acres of wetlands and associated buffers and reduces soil erosion by more than 300 million tons per year. CRP also provides $1.8 billion annually to landowners—dollars that make their way into local economies, supporting small businesses and creating jobs. In addition, CRP is the largest private lands carbon sequestration program in the country. By placing vulnerable cropland into conservation, CRP sequesters carbon in plants and soil, and reduces both fuel and fertilizer usage. In 2010, CRP resulted in carbon sequestration equal to taking almost 10 million cars off the road.

In 2011, USDA enrolled a record number of acres of private working lands in conservation programs, working with more than 500,000 farmers and ranchers to implement conservation practices that clean the air we breathe, filter the water we drink, and prevent soil erosion. Moreover, the Obama Administration, with Agriculture Secretary Vilsack’s leadership, has worked tirelessly to strengthen rural America, implement the Farm Bill, maintain a strong farm safety net, and create opportunities for America’s farmers and ranchers. U.S. agriculture is currently experiencing one of its most productive periods in American history thanks to the productivity, resiliency, and resourcefulness of our producers.

Producers are encouraged to contact their local FSA office or visit FSA’s website at www.fsa.usda.gov/crp for additional information regarding CRP.



Still No Action From House Leaders on Farm Bill

With just two weeks until the Congressional August recess begins, it remains unclear if the 2012 Farm Bill will come to the House floor this summer. House Speaker John Boehner (R-Ohio), who effectively controls the floor schedule along with House Majority Leader Eric Cantor (R-Va.), had not made a decision about floor time.

Pressure is on from agriculture leaders in the House, including House Agriculture Committee Chairman Frank Lucas (R-Okla.) and Ranking Member Collin Peterson (D-Minn.), and through a Dear Colleague letter urging floor consideration, led by Rep. Kristi Noem (R-S.D.) and Rep. Peter Welch (D-Vt.).

"The House Agriculture Committee has done its work and we now ask that you make time on the floor of the House to consider this legislation, so that it can be debated, conferenced and ultimately passed into law, before the current bill expires," the letter said, referencing the legislation passed by the Ag Committee on July 12. "We need to continue to tell the American success story of agriculture and work to ensure we have strong policies in place so that producers can continue to provide an abundant, affordable and safe food supply."

Calls for House consideration of the bill this summer, which is necessary to finalize new farm and food policy by the time current law expires on Sept. 30, also continue to come from farmers and rural constituents through Hill visits and calls, media interviews and social media using the hashtag #farmbillnow.

About 45 groups have written to Boehner and House Minority Leader Nancy Pelosi (D-Calif.) late last week, telling them time is short to get the new bill passed.

"While representing a wide range of interests, we are united in our view that the bill should receive floor time and be finalized this year, on schedule," the groups wrote. "We reject calls for delay and believe that extension of the current bill does not adequately address the needs of farmers, ranchers, foresters, those in need of food assistance at home and abroad, conservation, rural communities, or food and agricultural research."



The Means to Help Producers Impacted by Drought
Tom Vilsack, Agriculture Secretary

This week, we continued to see historic levels of drought grip much of our nation, impacting thousands of farm families. Although the hard work and innovation of our producers has fueled a strong farm economy in recent years, President Obama and I understand the major challenges this drought poses for American agriculture.

As of July 20, the U.S. Department of Agriculture has designated 1,055 counties across the country as disaster areas due to drought. Significant portions of many crops are impacted – for example, according to the most recent U.S. Drought Monitor report, 88 percent of our nation’s corn and 87 percent of our soybeans are in drought-stricken areas. Rising grain prices are threatening livestock and dairy operators with high input costs.

Our farmers and ranchers are no strangers to uncertainty – but it’s even harder to plan for the future when we don’t know how much more severe the drought will be.

Over the years, American producers have constantly innovated to meet new demands and adapt to new conditions, embracing new methods and utilizing new technology. The same innovative spirit that has positioned American agriculture as a global leader has helped to reduce the impact of the drought.

Nevertheless, the uncertainty of drought means this is a very difficult time for many. At President Obama’s direction, USDA is doing all it can within the Department’s existing authority to help.

Last week, I announced a final rule to simplify the process for Secretarial disaster designations – both to speed the process for producers and to reduce the burden on State government officials, who are also hard at work to help producers around the country cope with this disaster.

I reduced the interest rate for Farm Service Agency Emergency Loans, effectively lowering the current rate from 3.75 percent to 2.25 percent to help ensure that credit is available for farm families who are hit by drought.

And finally, I announced that USDA has lowered payment reductions for Conservation Reserve Program lands that qualify for emergency haying and grazing in 2012, from 25 to 10 percent.

USDA officials are traveling to states around the country to see firsthand the impact of the drought, and we will continue to look for ways to help. But the fact is USDA’s legal authority to provide assistance remains limited right now. That’s because the 2008 Farm Bill disaster programs, which were implemented under President Obama, expired last year. Prior to the expiration, these programs helped hundreds of thousands of U.S. producers during disasters.

If Congress doesn’t act, USDA will remain limited in our means to help drought-stricken producers. That’s why President Obama and I continue to call on Congress to take steps to ensure that USDA has the tools it needs to help farm families during the drought. Disaster assistance for producers is also one of many reasons why we need swift action by Congress to pass a Food, Farm and Jobs Bill this year.

I know that many producers are struggling today with the impact of this historic drought. The President and I are committed to doing all we can to help farmers and ranchers in this difficult time.

As all of us across America hope for rainfall, and while USDA does all it can to assist America’s farmers, ranchers and rural communities, I hope that Congress will do all it can to help us get the job done.



Australia's 2012-13 Wheat Crop Forecast 25 Mln Tons

Australia's 2012-13 wheat crop could yield 25 million metric tons, Rabobank Australia forecast Friday, though concerns voiced this week about dry weather in Western Australia and the three-month rainfall outlook suggest this estimate could be optimistic.

The bank's estimate is up from a projection of 24.1 million tons issued in June by the government's Australian Bureau of Agricultural and Resource Economics and Sciences.

If achieved, Rabobank's 2012-13 crop forecast would be down 15% from record production of 29.5 million tons last crop year ended March 31, 2012, but still above a five-year annual average of 22.8 million tons.

With July shaping up as a particularly dry month in Western Australia, Kim Simpson, president of the Western Australian Farmers Federation grains lobby, warned Tuesday that "we're probably looking at an average or below-average season, depending on how good the spring is."

The Western Australia wheatbelt, potentially an important supply region to the global trade, has started to dry out with minimal rain this month, Commonwealth Bank of Australia agri-commodities strategist Luke Mathews said Thursday.

"Increased rainfall is needed to lift production prospects before the critical spring growing season. However, the eight-day forecast offers no meaningful relief," he said, adding Friday that production uncertainty in the state is among other influences supportive of global prices.

Western Australia is projected to produce 8.7 million tons of wheat this crop year, after producing almost 12 million tons--around 8% of this year's global trade--last crop year, according to Abares.

A rainfall outlook for August through October suggests a drier than normal season is likely for large parts of southeast, central and northeastern Australia, the Bureau of Meteorology reported Thursday.

This suggests winter crops including wheat and canola in these areas, particularly in South Australia and western areas of Victoria state, could be moisture-stressed in spring, potentially impacting production.

Moreover, the temperature outlook for August through October 2012 shows warmer days and nights are more likely over most of Australia, potentially compounding soil moisture issues, the bureau said.

The rainfall outlook favored neither a wetter nor drier period ahead in Western Australia, which critically depends on winter rains June through August to build soil moisture before the weather typically dries off in spring before crops are harvested in November and December.