November Ag Prices Received Increases, Prices Paid Decreases

November Prices Received Index Up 3.5 Percent The November Prices Received Index (Agricultural Production), at 88.1, increased 3.5 percent from October 2018. At 84.1, the Crop Production Index increased 5.0 percent. The Livestock Production Index, at 92.1, increased 0.9 percent. Producers received higher prices for lettuce, market eggs, cattle, and broilers but lower prices for soybeans, milk, hogs, and lemons. Compared with a year earlier, the Prices Received Index is down 3.6 percent. The Crop Production Index increased 2.7 percent and the Livestock Production Index decreased 9.5 percent. In addition to prices, the indexes are influenced by the volume change of commodities producers marke

U.S. Dairy Fears Losing Japanese Market

The U.S. dairy sector is worried about access to the lucrative Japan market. Dairy groups and officials are sending a brand-new, industry-funded study to President Donald Trump, administration officials, and to members of Congress. Politico says the study stresses the need for expanding market access overseas. The report points out that the U.S. is the only major dairy-exporting country not included in one of two new trade deals with Japan. The report was commissioned by the U.S. Dairy Export Council and conducted by a Tokyo-based consulting company. The new report projects export losses for the U.S. dairy sector of up to $1.3 billion within 10 years because countries like Australia, New Zea

This Week's Drought Summary (1/30)

Colder than normal temperatures dominated most of the United States for the week, especially areas east of the continental divide. The eastern half of the country remained quite wet, with most areas east of the Missouri River recording above-normal precipitation for the week. The cold settled in as a polar vortex descended south and arctic air blasted the Midwest, Great Lakes and portions of the Plains at the end of the current period. Northeast Temperatures were mixed during the week; coastal areas were normal to slightly above normal while portions of New York and Pennsylvania were normal to slightly below normal. The region was wet from the impact of a winter storm that tracked through th

Dairy Producers To Receive Refund Up To 75% Of MPP Under New Farm Bill

Under the 2018 farm bill, dairy producers will receive a refund up to 75% of Margin Protection Program (MPP) premiums paid from 2014 to 2017, excluding administrative fees. “Due to the low frequency of program payments, total program payments made to dairy farmers during this time are estimated at less than $12 million – resulting in an aggregate loss ratio of less than one-sixth of 1%,” says John Newton, chief economist at American Farm Bureau Federation. He adds that farmers will receive a refund of up to 75% of premiums. “Based on estimates of premiums paid into the program and program payments, up to $60 million dollars are likely eligible for premium refunds. Premiums paid for 2018 cove

Dairy: Prices dip, then rally

Cash dairy prices were mixed in the shortened Martin Luther King Day holiday week with the Cheddar blocks losing a penny, closing Friday at $1.39 per pound, 8 1/4-cents below a year ago when they lost 9 1/4-cents. The barrels plunged to $1.16 Wednesday, the lowest price since July 23, 2009, but closed Friday at $1.18, down 2 cents on the week and 14 cents below a year ago. Monday’s block price gained three-quarters, then jumped 4 3/4-cents Tuesday, climbing to $1.4450, the highest price since Nov. 16, 2018, as lawmakers and President Donald Trump agreed to a three-week reopening of the government and arctic cold weather gripped the Midwest and Northeast. The barrels jumped 3 cents Monday and

"Too Many Cows" Is Expected To Continue

High on the list of reasons for weak farm milk prices . . . and it’s easy to make a case it is number one . . . is too many cows. Within reason, no matter how much exporters are able to export and/or no matter how much Mother Nature takes a bite out of feed quality or quantity, the U.S. dairy industry has more cows than it needs. Hundreds of thousands more . . . entire states worth more. It’s a situation that a recent long-range USDA forecast sees no likelihood of changing. Few of the 112 pages in USDA Agricultural Projections 2027 (available for free download) focus on dairying, but those that do, predict basic farm conditions that point to weak milk prices persisting well into the next dec

Fluid Milk and Cream - Western U.S.

Milk production throughout the state of California is even. Class I sales in Southern California are down because the strike in the Los Angeles school district caused the closure of the schools for several days. However, bottled milk orders in the remaining regions of the state are steady. Interest for Class II is stable. In Arizona, milk production is strong, but remains below last yearśs volumes. Therefore, processing facilities are not as busy. Nevertheless, they continue to run at full capacity. Bottling milk requests are at the same level as the previous week. Class III pulls are rising because more cheese is being produced for the Super Bowl season. The milk market tone is

Idaho farmers see production increase, revenue decrease in 2018

BOISE — Despite drops in prices, cash receipts for Idaho farmers stayed about the same in 2018 due to increases in production. "Our prices are terrible ... but this year we had a really good year," University of Idaho Associate Professor Garth Taylor told the Senate Agricultural Affairs Committee Thursday. "Those farmers were out there doing the job." Cash receipts in 2018 were $7.18 billion, Taylor said, compared to $7.2 billion in 2017. But net farm income, he said, dropped from $1.23 billion in 2017 to $900 million, due to expenses increasing more than expected. Dairy and beef cattle represent the biggest chunk of Idaho's agricultural economy — a third of this revenue comes from milk, 23

Weatherman predicts good winter for region's growers

Pacific Northwest farmers are likely to see normal or above-normal precipitation this year, weatherman Art Douglas predicts. Douglas, a professor emeritus of atmospheric sciences at Creighton University in Omaha, Neb., will offer his popular weather forecast at opening session of the Spokane Ag Expo and Pacific Northwest Farm Forum, 9 a.m. Tuesday, Feb. Douglas has been a fixture at the Expo since 1977. “The first thing we’ve got to keep in mind is we have an El Nino, and it’s not been a normal El Nino development,” Douglas told the Capital Press in November. An El Nino is the warm phase of temperature fluctuations in the ocean and atmosphere in the east-central equatorial Pacific, according

This Week's Drought Summary (1/24)

An active pattern has continued with general ridging over the West and a trough digging in through the central and eastern United States. During the past week, a strong surface low developed in the Southwest and tracked through the central Plains into the Midwest and finally the Northeast. Abundant precipitation was recorded and snow totals in the Rocky Mountains were good. With the cold air dropping in behind these storms, most of the eastern half of the country has remained colder than normal while the West has been warmer than normal. Northeast Temperatures were below normal for the week with most of the region recording temperatures that were 3-6 degrees below normal. The coldest areas w

Dairy Market: Poor price prospects ahead

CME dairy prices didn’t respond much to last week’s jump in the GDT, in fact most prices weakened. The Cheddar blocks slipped to $1.3875 per pound Thursday but closed Friday at $1.40, down a penny on the week and 16 1/2-cents below a year ago. The barrels sank to $1.1850 Thursday but climbed back to $1.20 Friday, still down 4 1/2-cents on the week and 14 1/2-cents below a year ago. The markets were closed Monday for the Martin Luther King Day holiday. The blocks gave up a penny Tuesday, slipping to $1.39, while the barrels dropped 2 1/4-cents and dipped to $1.1775, lowest CME price since July 27, 2009, and a whopping 21 1/4-cents below the blocks. Dairy Market News reports that Central chees

Milk price protection sign-up to begin by early March

Last year’s milk and dairy product prices continued to be depressed despite ebbing growth in milk output and U.S. dairy exports, exceeding 2017 levels for most of this year. According to the USDA, the average Class III milk price for 2018 was $14.60 per hundredweight (cwt.), which was the lowest price recorded over the past four years. Trade conflicts with China and Mexico weighed heavily on dairy product markets as sales slowed. As a result, relatively high levels of stocks forced down prices. As this new year unfolds, milk and dairy product price forecasts indicate U.S. milk prices may average $1 to $1.50 per cwt. above those seen during 2018. Even so, it could be better if lingering trade

Fluid Milk and Cream - Western U.S

California milk volumes are reasonably balanced with current demand. Processing plants are busy with milk clearing schedules and are not taking any additional loads from outside the region. Milk production is mostly flat, but component levels are stronger. Class I sales are unchanged from a week ago. In Arizona, milk balancing is going well with most processing facilities running at full capacities or close to it. Milk output is growing seasonally, while remaining at levels that are manageable within the state. Weather is contributing to increased milk yield per cow. Class I requests are even. New Mexico Class III milk intakes grew due to increased cheese manufacturing. However, Class I inqu

Culver’s giving 250 FFA members chance to attend NCBA Trade Show

Hey, FFA students — want to attend the 2019 Cattle Industry Convention and Trade Show for free? Check out Culver’s latest offer to sponsor the registration fees for 250 FFA students in New Orleans! Culver’s is giving 250 FFA students the opportunity to attend the convention and trade show for free! If you’re a young person or know of an FFA member who would benefit from this opportunity, please pass along these important details. Culver’s restaurant chain recently announced the company will be covering the registration fees of the first 250 FFA members andadvisors for FFA Day at the National Cattlemen’s Beef Association (NCBA) Trade Show on Friday, Feb. 1, in New Orleans, La. The FFA Day at

This Week's Drought Summary (1/17)

A mixture of rain and snow accompanied a low pressure system from the Great Lakes to New England during early January. An upper-level low and its associated surface low tracked across the central and eastern U.S. from January 11 to 13. More than 4 inches of snow blanketed areas from Kansas east to the middle Mississippi Valley, Ohio Valley, and mid-Atlantic. Snowfall reports of up to 20 inches were reported from northern Missouri, while 8 to 13 inches of snow occurred in the Washington, D.C. metro area. Periods of onshore flow continued to affect the West Coast although precipitation generally averaged below normal across the Pacific Northwest during the past week. A vigorous upper-level low

GDT auction jumps 4.2 percent

The second Global Dairy Trade auction of 2019 got another boost in its weighted average of products offered, jumping 4.2 percent Tuesday, following the Jan. 2 gain of 2.8 percent. It was the fourth consecutive session of gain. All products, except rennet casein, were in the black, led by skim milk powder, up 10.3 percent, after it climbed 7.9 percent in the last event and 3.4 percent in the event before that. Lactose followed, up 7.9 percent. Butter was up 4.6 percent, after a 3.9 percent climb last time. Cheddar was up 4.2 percent, following a 3.2 percent increase, and anhydrous milkfat was up 3.2 percent following a 3.9 percent gain. Whole milk powder rounded up the gains with a 3.0 percen

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