“AFBF Reports Quarterly Food Costs”
The American Farm Bureau Federation’s Marketbasket survey shows a modest increase in retail food prices during the first quarter. The informal survey shows the total cost of 16 food items that can be used to prepare a meal was $45.54 – 6 percent higher than the fourth quarter of 2009. Of the 16 items surveyed, 14 increased and two decreased in average price.
Shredded cheddar cheese, deli ham, apples, vegetable oil, bacon, boneless chicken breasts and eggs increased the most in dollar value from quarter-to-quarter. Shredded cheddar cheese increased 62 cents to $4.26 per pound; sliced deli ham increased 48 cents to $4.83 per pound; apples increased 25 cents to $1.50 per pound; vegetable oil increased 23 cents to $2.74; bacon and boneless chicken breasts increased 22 cents to $3.22 and $2.93 per pound, respectively; and eggs increased 19 cents to $1.74 per dozen. On the down side of the ledger, white bread was down 11 cents to $1.71 for a 20-oz. loaf; and ground chuck was down 6 cents to $2.63 per pound.
AFBF Economist John Anderson points out – improved demand for milk and dairy products here at home and from export markets was the driving factor behind higher retail prices. At the same time, higher retail prices for some meats were due to reduced supplies.
Using the “food at home and away from home” percentage across-the-board, the farmer’s share of this quarter’s $45.54 marketbasket would be $8.65.
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“Obama Wants to See FTA Vote”
U.S. Trade Representative Ron Kirk won’t say which deal will pass first, but he says President Obama wants Congress to approve at least one of the three pending free trade deals by the end of the year. Of the three pending agreements between the United States and Korea, Columbia and Panama, progress is being reported in the Panama agreement. Kirk told Bloomberg news – the administration is making good progress on resolving labor and tax issues with Panama.
Meanwhile, Seoul would like Obama to move its agreement for ratification by this summer due to the political sensitivity of the November mid-term elections. The Obama administration is trying to find ways to address lopsided auto trade and limited shipments of U.S. beef so it can push ahead with the Korea FTA’s ratification.
The 2010 Trade Barrier Report estimates – the reduction of Korean tariffs and tariff-rate quotas on goods alone would add 10-billion to 12-billion dollars to annual U.S. Gross Domestic Product and around 10-billion to annual merchandise exports to Korea.
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“Competition Case Favors Poultry Producers”
After three weeks – a jury in McCurtain County, Oklahoma ruled that Tyson Foods must pay 10 poultry producers due to deceptive and coercive business practices. More than 50 chicken growers claimed Tyson used its economic powers to persuade them into growing chickens at a low cost. According to the attorney for the producers – they will receive about 4.79-million dollars in damages and about half that much in punitive damages. Tyson plans to appeal the ruling – reportedly stating it has strong and numerous grounds on which to appeal.
R-CALF USA was pleased with the ruling – with CEO Bill Bullard stating the courts are beginning to recognize how the power wielded by multinational packers is disrupting market competition and forcing tens of thousands of farmers and ranchers out of business. Bullard is hopeful the Oklahoma decision will build momentum in D.C. to take steps to restore competition in livestock markets.
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“AMI Program Receives Welfare Certification Approval”
The Professional Animal Auditor Certification Organization has accredited the 2010 Edition of the American Meat Institute Foundation Recommended Animal Handling Guidelines and Audit Guide. The Accreditation means AMI’s program, authored by animal welfare expert Temple Grandin, has met or exceeded PAACO’s minimum standards for auditing, training and auditors. The program was reviewed by an independent panel comprising animal welfare and meat industry experts.
PAACO Chairman Dave Hermes says – audit programs provide expert validation of welfare practices — in this case at the plant level. He adds, – there is an increasing need for quality audits implemented by trained, knowledgeable, independent auditors who can fairly and accurately assess welfare practices. Third-party certification provides the customer with information that can be documented, is transparent and shows continual improvement.
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“BCAP Moving Biomass Industry”
USDA’s Biomass Crop Assistance Program is investing a lot of dollars into our nation’s energy facilities. FSA Administrator Jonathan Coppess reports, trough April 2, 2010, USDA has approved 4,605 agreements for the delivery of more than 4.18 million tons of biomass and paid eligible biomass owners over 165-million dollars in matching payments under BCAP’s first phase.
Biomass is any organic matter that is available on a renewable or recurring basis including: agricultural commodities, plants, trees, algae, and other animal, vegetative and wood waste materials. The matching payments are for the collection, harvest, storage and transportation of eligible biomass delivered to approved facilities to convert it to biofuels.
Once a final rule is released, Coppess believes, we will then realize – the full potential of the BCAP program to encourage on-the-ground innovation through new crops and new economic development for farmers and rural communities. The final rule will provide funding for producers of renewable biomass who establish new biomass crops within select geographical areas and will continue to provide matching payments for deliveries of eligible materials.
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“Agriculture Water Quality Funds Released”
Natural Resources Conservation Service Chief Dave White has announced the availability of 61.2-million dollars in financial assistance funding for Agricultural Water Enhancement Program projects. This funding will help producers conserve surface and ground water and improve water quality on agricultural land. When an AWEP project area has been approved and announced, individual producers will be able to apply for program benefits through their local NRCS office.
Approximately 40.4-million dollars will be made available to AWEP partners whose projects were approved during last fiscal year. The remaining, approximately 20.7-million, will be available for new project proposals. Deadline for partner organizations to submit a proposal is May 17, 2010.
Projects to be considered include: plan development; restoration or enhancement; irrigation enhancements; drought preventative measures; and other activities that will benefit agricultural land.
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“Checking Alfalfa Stand”
With spring temperatures stretching across much of the U.S., alfalfa has broken dormancy in many areas, making it an optimal time for growers to evaluate stand density and yield potential. According to the folks at Pioneer Hi-Bred this information can help you determine yield potential. And it can help you determine if you need to refresh or tear up your stand.
When counting plants per square foot, growers should take a random 1-foot square and count the number of plants, at their crowns, that are alive and healthy. Take four to five counts for every 10 acres. A good stand after one year would be indicated by a count of 15 or more healthy plants per square foot. A poor stand would be indicated if fewer than 4 healthy plants remain after four years.
There is a second option. It’s more reliable but needs to be conducted several weeks after initial green-up, when alfalfa plants are 5 to 6 inches tall. First, randomly select four to five 1-foot-square sites for every 5 to 10 acres and count the number of stems per square foot. If an alfalfa field averages more than 55 stems per square foot, it has top yield potential. Some losses may incur with 40 to 55 stems per square foot. If the stem count is below 40 stems per square foot, the grower should consider replacing the stand.
