Archive for the ‘Government Reports’ Category

Here Comes the Milk

May 27, 2014 – Milk production is steady to easing in the Northeast and Mid-Atlantic Regions, according to USDA’s Dairy Market News. Manufacturing milk supplies were heavy goingDBU into the Memorial holiday period. Balancing plants are working through the increased volumes with minimal delays.

According to NASS, in New England, above average temperatures and sunny days helped to speed along fieldwork, and crop progress this past week. Milk production in the Southeast varies. Most of region’s farm volumes are leveling out, with slight increases in some parts, due to cooler temperatures.

Milk/cream sales are slightly down. Some haulers are having issues with load temperatures when making deliveries, as warmer conditions necessitate equipment adjustments.

Farm milk production in Florida is still on the decline. Class I demand was down, as expected, due to Memorial Day and schools closing for the summer. Last week, Florida’s milk supply has led to the exporting of 120 spot loads.

According to NASS pastures in southwest Florida received some rain recently, which helped improve conditions. Cream supplies are tight. Demand has eased in some channels as most cream-based operations finalized holiday production volumes clearing to retail outlets. Ice cream sales are improving.

June Federal Order Class I Price Drops $1.61

May 21, 2014 – The Agriculture  Department announced the June Federal order Class I base milk price this  afternoon at $22.86 per hundredweight, down $1.61 from the record high May  price, but still $3.93 above June 2013, and the highest June Class I price since  June 2011. It equates to about $1.97 per gallon.

That puts the six-month Class I  average at $23.02, up from $18.22 at this time a year ago, $16.48 in 2012, and  $18.14 in 2011.    The  two-week, NDPSR-surveyed butter price used in calculating today’s price was  $2.0176 per pound, up 4.7 cents from May. Nonfat dry milk averaged $1.8768, down  12.7 cents. Cheese averaged $2.2029, down 16.7 cents, and dry whey averaged  67.24 cents, down fractionally from May.

April Milk Production Up 1.2%

May 19, 2014 –  The Agriculture  Department’s preliminary data issued this afternoon in its latest Milk Production report, shows April milk  output in the top 23 producing states at 16.3 billion pounds, up 1.2 percent  from April 2013. The 50-state total, at 17.43 billion pounds, was up 1.0 percent  from a year ago.    Revisions added 6 million pounds to the original March 23-state estimate,  now reported at 16.7 billion pounds, up 1.1 percent from a year ago.    April cow numbers in the 23  states, at 8.53 million head, were up 10,000 from March. Year ago data was not  available due to the Sequester.    April output per cow in the 23 states averaged 1,911 pounds, down from  1,958 pounds in March, but the highest production per cow for the month of April  since the 23 State series began in 2003. Again, year ago data was not available  due to the Sequester.

EPA Administrator Addresses Proposed Water Act Rule

May 13, 2014 — EPA Administrator Gina McCarthy met with farm broadcasters at the recent NAFB ‘Washington Watch’ in D.C. last week. She addressed the new environmental

Gina McCarthy, EPA Administrator

Gina McCarthy, EPA Administrator

challenges that agriculture and rural communities face and admits the Clean Water Act has been bogged down by confusion. That’s why a Clean Water Act rule is proposed that clarifies which waters are protected.

New Dairy Safety Net Expected By Sept. 1st

May 12 2014 — The main dairy provision from the new farm bill is the Margin Protection Program and  Agriculture Secretary Tom Vilsack reassured producers last week that

Ag. Secretary Vilsack meeting with farm broadcasters in Wash. D.C.

Ag. Secretary Vilsack meeting with farm broadcasters in Washington, D.C.

implementation is on schedule.

“I’m confident we will be ready to go by September 1st,” he told farm broadcasters in Washington, D.C. “This is part of what we’ll be doing this spring and summer – getting the educational information out to producers so they can make an evaluation and determination about precisely what’s in their best interest.”

The Margin Protection Program will be a new safety net program that will provide dairy producers with indemnity payments when actual dairy margins are below the margin coverage levels the producer chooses on an annual basis. The goal is to protect farm equity by guarding against destructively low margins, not to guarantee a profit to individual producers.

“Right now we are looking at a pretty healthy dairy market and milk market,” Vilsack reported. “We know that changes and we are very cognizant of the responsibility we have to get this thing set up and set up right, and getting information to producers as quickly as we can.”

The farm bill requires the Margin Protection Program to be established no later than September 1, 2014. In the interim, producers have access to the Milk Income Loss Contract (MILC) program so that there is still some protection if high milk prices suddenly and precipitously drop.

As for the new program, “We have to do it right and that’s why Congress basically gave us two tranches of $3 million each,” he said.

One tranche goes for outreach to help get information to producers during this spring and summer. Another tranche will go to a handful of universities who will create the decision making tools for producers.

“That second tranche is complicated because, depending upon how you set the model up, it could favor one commodity or one type of item more,” Vilsack said. “So you have to be real careful that you have sort of a neutral model so that people can make the best possible decision.”

That’s why USDA is taking a little time to make sure they get it right. Once implemented, all dairy operations will be eligible to participate in the program. Producers will be able to select margin protection coverage at 50 cent increments beginning at $4 per cwt. Premiums will be fixed for 5 years.

Vilsack is hopeful the educational materials will be available in the coming months to give dairy producers time to really think about it because it is obviously an important set of decisions they have to make.

Benchmark Milk Price Sets New Record High at $24.31/cwt.

April 30, 2014 –  The Agriculture Department announced the April Federal order Class III milk price today at an all time record high of $24.31 per hundredweight (cwt.), up 98 cents from March, $6.72 above April 2013, and equates to about $2.09 per gallon.

That will likely be the peak for 2014 as Class III futures settled today as follows: May, $22.55; June, $21.22; July, $20.43; August, $19.97; September, $19.87; October, $19.40; November, $18.94; and December, $18.61.

The Class III average for 2014 now stands at $23.04, up from $17.48 at this time a year ago, $16.14 in 2012, and $16.69 in 2011.

The April Class IV price is $23.34, down 32 cents from March but $5.24 above a year ago. Its 2014 average now stands at $23.19, up from $17.81 a year ago, $15.66 in 2012, and $18.50 in 2011.    The 4-week, NDPSR-surveyed cheese price used in calculating today’s milk prices was $2.3547 per pound, up 8.6 cents from March. Butter averaged $1.9227, up 6.7 cents. Nonfat dry milk averaged $2.0191, down 7.1 cents, and dry whey averaged 67.74 cents, up 2.2 cents. California’s comparable 4a and 4b prices will be announced tomorrow by the California Department of Food and Agriculture.

Risk Management Decisions

April 29, 2014 — Dairy producers have a decision to make on what type of risk management program is best for them. University of Wisconsin’s Brian Gould says several questions need to be answered before deciding.

Producers Face Risk Management Decisions

April 28, 2014 — Dairy producers are in a quandary when it comes to a risk management plan. Producers already have access to USDA’s Livestock Gross Margin for Dairy (LGM-Dairy) CenterForDairyExcellenceprogram – but should they be waiting until the new Margin Protection Program (MPP) is implemented? Alan Zepp, Risk Management Coordinator from the Center for Dairy Excellence, joins us to discuss on today’s DairyLine:

 

March Milk Production up 1.1 Percent

April 21, 2014 — Milk production in the 23 major States during March totaled 16.7 billion pounds, up 1.1 percent from March 2013. February revised production at 14.9 billion pounds, was up 1.3 percent from February 2013. The February revision represented a decrease of 18 million pounds or 0.1 percent from last month’s
preliminary production estimate.

Production per cow in the 23 major States averaged 1,959 pounds for March.

The number of milk cows on farms in the 23 major States for March was 8.51 million head, 1,000 head more than February 2014.

January – March Milk Production up 1.0 Percent

Milk production in the United States during the January – March quarter totaled 51.1 billion pounds, up 1.0 percent from the January – March quarter last year.

The average number of milk cows in the United States during the quarter was 9.22 million head.

Milk Production % – 23 Selected States: March 2013 and 2014

Arizona           1.2
California       3.7
Colorado        6.5
Florida            3.1
Idaho               1.7
Illinois           -1.8
Indiana           0.6
Iowa               -3.4
Kansas            1.2
Michigan        0.3
Minnesota    -3.8
New Mexico  -0.1
New York
Ohio               -4.8
Oregon            4.2
Pennsylvania  0.3
South Dakota  1.8
Texas                6.4
Utah                 3.5
Vermont          0.4
Virginia            2.6
Washington    3.5
Wisconsin     -1.6

23-State Total  1.1

USDA Helps Expand Export Markets

April 16, 2014 –  Agriculture Secretary Tom Vilsack announced today that the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS) awarded funding to more than 60 U.S. agricultural organizations to help expand commercial export markets for American products. The funding was made available through the 2014 Farm Bill. USDA will begin accepting applications for 2015 export development program funding on April 17, 2014.

“Now that Congress has passed the Farm Bill, USDA is moving quickly to implement our trade promotion programs to help open and expand opportunities for farmers, ranchers, and small businesses and build on the past five years of record agricultural exports,” said Vilsack. “These programs are an important investment in rural America. Every dollar we invest in trade promotion provides $35 in economic benefits.”

Through the Market Access Program (MAP), FAS partners with U.S. agricultural trade associations, cooperatives, state regional trade groups and small businesses to share the costs of overseas marketing and promotional activities that help build commercial export markets for U.S. agricultural products and commodities. The program, which focuses on consumer promotion, including brand promotion for small companies and cooperatives, is used extensively by organizations promoting fruits, vegetables, nuts, processed products, and bulk and intermediate commodities. Through MAP, FAS will provide $171.8 million to 62 nonprofit organizations and cooperatives. Participants contribute an average 171-percent match for generic marketing and promotion activities and a dollar-for-dollar match for promotion of branded products by small businesses and cooperatives.

The Foreign Market Development (FMD) Program focuses on trade servicing and trade capacity building by helping to create, expand and maintain long-term export markets for U.S. agricultural products. Under FMD, FAS will allocate $24.6 million to 22 trade organizations that represent U.S. agricultural producers. FAS partners with U.S. agricultural producers and processors, who are represented by non-profit commodity or trade associations called cooperators. The organizations, which on average contribute nearly triple the amount they receive in federal resources, will conduct activities that help maintain or increase the demand for U.S. agricultural commodities overseas.

Applications for 2015 export development program funding will be accepted beginning April 17, 2014. In addition to MAP and FMD programs, eligible organizations can apply for funding through the Technical Assistance for Specialty Crops (TASC) Program, Quality Samples Program (QSP) and Emerging Markets Program (EMP). The TASC program funds projects that address sanitary and phytosanitary barriers that prohibit or threaten the export of U.S. specialty crops. The 2014 Farm Bill amended the program to allow participants to address technical barriers to trade regardless of whether they are related to a sanitary or phytosanitary barrier. QSP helps agricultural trade organizations provide product samples to potential importers. EMP provides funding for technical assistance activities to promote exports to emerging markets. The programs were authorized as part of the 2014 Farm Bill.

Applicants are encouraged to apply via the Unified Export Strategy online application system. Information is available at http://www.fas.usda.gov/unified-export-strategy. Applications can also be emailed to podadmin@fas.usda.gov or hand-delivered to: USDA Foreign Agricultural Service, Office of Trade Programs, 1400 Independence Avenue, SW, Room 6512-S, Washington, D.C. 20250. New applicants are encouraged to email podadmin@fas.usda.gov to request more information. Applicants must have a Dun & Bradstreet (DUNS) number for federal assistance, which can be obtained online at http://fedgov.dnb.com/webform or by phone, (866) 705-5711.

USDA’s international market development programs have had a significant and positive impact on U.S. agricultural exports. An independent study released in 2010 found that trade promotion programs like MAP and FMD provide $35 in economic benefits for every dollar spent by government and industry on market development.

The past five years represent the strongest period for U.S. agricultural exports in the history of the United States. Farm exports in fiscal year 2013 reached a record $140.9 billion and supported 1 million jobs in the United States.

The following chart summarizes this year’s Market Access Program allocations:

Market Access Program – 2014 Allocations
Participant FY 2014 Allocation
American Hardwood Export Council, APA – The Engineered Wood Association, Softwood Export Council, and Southern Forest Products Association $8,996,182
Alaska Seafood Marketing Institute $3,560,749
American Peanut Council $2,235,570
American Pistachio Growers/Cal-Pure Pistachios, Inc. $1,380,409
American Seed Trade Association $229,118
American Sheep Industry Association $421,340
American Soybean Association $4,523,434
American Sweet Potato Marketing Institute $200,000
Blue Diamond Growers/Almond Board of California $4,729,064
Brewers Association, Inc. $600,895
California Agricultural Export Council $1,228,525
California Cherry Marketing and Research Board $519,189
California Cling Peach Growers Advisory Board $444,892
California Grape and Tree Fruit League $428,800
California Pear Advisory Board $442,081
California Prune Board $2,668,406
California Table Grape Commission $3,093,070
California Walnut Commission $3,902,619
Cherry Marketing Institute $204,115
Cotton Council International $15,423,937
Cranberry Marketing Committee $1,561,170
Distilled Spirits Council $401,630
Florida Department of Citrus $3,885,364
Food Export Association of the Midwest USA $9,637,643
Food Export USA Northeast $8,138,985
Ginseng Board of Wisconsin $167,539
Hop Growers of America $310,320
Intertribal Agriculture Council $642,528
Mohair Council of America $45,759
National Association of State Departments of Agriculture $3,533,072
National Confectioners Association $965,826
National Pecan Growers Council $487,035
National Potato Promotion Board $3,647,427
National Renderers Association $871,872
National Sunflower Association $1,119,044
National Watermelon Promotion Board $290,367
New York Wine and Grape Foundation $484,886
Northwest Wine Promotion Coalition $988,092
Organic Trade Association $746,912
Pear Bureau Northwest $2,926,873
Pet Food Institute $1,361,288
Raisin Administrative Committee $827,922
Southern United States Trade Association $5,874,329
Sunkist Growers, Inc. $2,372,577
Synergistic Hawaii Agriculture Council $388,412
The Popcorn Board $369,806
U.S. Apple Export Council $712,727
U.S. Dairy Export Council $4,084,503
U.S. Dry Bean Council $1,147,741
U.S. Grains Council $6,731,882
U.S. Hide, Skin and Leather Association $49,548
U.S. Livestock Genetics Export, Inc. $1,538,250
U.S. Meat Export Federation $14,073,511
U.S. Wheat Associates $5,973,322
USA Dry Pea and Lentil Council $850,359
USA Poultry and Egg Export Council $4,952,183
USA Rice Federation/U.S. Rice Producers Association $2,735,162
Washington Apple Commission $4,930,752
Washington State Fruit Commission $1,561,810
Welch Foods, Inc. $834,411
Western U.S. Agricultural Trade Association $8,097,508
Wine Institute $6,322,046
Total $171,874,788

The following chart summarizes this year’s Foreign Market Development Program allocations:

Foreign Market Development Program – 2014 Allocations
Cooperator FY 2014 Allocation
Almond Board of California $125,045
American Hardwood Export Council, APA – The Engineered Wood Association, Softwood Export Council, and Southern Forest Products Association $2,655,416
American Peanut Council $533,746
American Seed Trade Association $185,722
American Sheep Industry Association $123,798
American Soybean Association $5,198,548
Cotton Council International $3,199,712
Cranberry Marketing Committee $153,754
Leather Industries of America $210,730
National Renderers Association $682,463
National Sunflower Association $212,505
North American Millers Association $54,594
U.S. Dairy Export Council $442,188
U.S. Dry Bean Council $100,313
U.S. Grains Council $2,439,510
U.S. Hide, Skin and Leather Association $91,952
U.S. Livestock Genetics Export, Inc. $535,518
U.S. Meat Export Federation $1,081,750
U.S. Wheat Associates $4,176,733
USA Dry Pea and Lentil Council $157,661
USA Poultry and Egg Export Council $1,014,940
USA Rice Federation $1,267,187
Total $24,643,785

Visit www.fas.usda.gov to learn more about the Market Access Program, the Foreign Market Development Program and other FAS programs.

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