News Update
June 30, 2009

USDA’s Newly Released Corn Estimates Means Lower Feed Prices, Experts Say

The U.S. Department of Agriculture (USDA) released estimates today showing 2009 U.S. corn acreage at more than 87 million acres, up 1 million acres from its March forecast.

According to Reuters, the estimates show farmers planted the second-largest corn crop ever, the most since 1946. The numbers suggest corn production of 12.3 billion bushels (bu.) — welcome news for livestock producers who will undoubtedly see lower feed prices thanks to the report. According to Meatingplace.com, corn futures prices on the Chicago Board of Trade (CBOT) fell the daily limit of 30¢ per bu. following USDA’s report.

Climate Bill Passes House, Awaits Senate

The “American Clean Energy and Security Act,” known as the climate bill or cap-and-trade legislation, narrowly passed the House of Representatives late Friday, June 26.

According to The Wall Street Journal, the House voted 219-212 for the legislation, which calls for broad-sweeping energy standards, including regulations and a credit system for greenhouse gas (GHG) emissions.

The bill mandates that 15% of the nation’s electricity come from renewable sources by 2020 and seeks to boost industries like wind-generated electricity and solar power, The Wall Street Journal reports.

Although recent amendments to the bill ease GHG regulations for ag producers and move oversight of GHG offset credits and their implementation from the Environmental Protection Agency (EPA) to the USDA, the legislation could have detrimental effects for some livestock producers.

The bill could mean higher feed costs for ranchers if the race for carbon credits reduces crop acreage and yields, according to Pork magazine. Citing the National Pork Producers Council (NPPC), an article released yesterday by Pork reports it is unlikely revenues from the sale of offset credits for producers will counterbalance the additional energy and input costs associated with the bill.

As it enters the Senate, the future of the climate change legislation remains unclear. According to The Wall Street Journal, the House bill could be a tough sell for some senators, who will likely back less ambitious action.

Sen. Sherrod Brown (D-Ohio) told Pork the bill would not pass “unless Midwestern Democratic senators support it in large numbers.”

JBS Expands Beef Recall

JBS Swift Beef Co., based in Greeley, Colo., is voluntarily expanding its June 24 recall to include approximately 380,000 pounds (lb.) of assorted beef primal products that may be contaminated with E. coli O157:H7, the USDA Food Safety and Inspection Service (FSIS) announced Sunday.

Together with traceback information and laboratory data, the recall is being expanded as a result of FSIS’ cooperation with the Centers for Disease Control and Prevention (CDC) in an ongoing investigation into 24 illnesses in multiple states, of which at least 18 appear to be associated. This investigation prompted the company to re-examine the effectiveness of their food safety system for the April 21 production of beef primals, and they are conducting this recall out of an abundance of caution as the safety of the products produced on a portion of that day could not be assured.

The beef products were produced on April 21, 2009, and were distributed both nationally and internationally. A list of the products subject to the expanded recall is available at www.fsis.usda.gov.

— Adapted from a release provided by USDA.

Great Plains Sorghum Conference Scheduled Aug. 11-12 in Amarillo

Two days of informative meetings and field tours are planned for the Great Plains Sorghum Conference and Sorghum Improvement Conference of North America, to be Aug. 11-12 in the Amarillo, Texas, area.

The meeting will start at 8 a.m. Aug. 11 with presentations at the Texas AgriLife Research and Extension Center in Amarillo. The presentations will be followed by afternoon tours of an ethanol plant, dairy, Advanta and Richardson Seed.

The ethanol and dairy tours will focus on use of grain sorghum for ethanol and utilizing forage sorghums in the diets of dairy cattle.

Speakers from Texas, Oklahoma, Kansas and New Mexico will cover a range of disciplines including agronomy, physiology, biotechnology, utilization, pathology and entomology.

During the educational programs, participants will have an opportunity to view posters and presentations from graduate students on their latest research findings.

The Aug. 12 field tour will take place from 8 a.m. to 3:30 p.m. This tour at the Texas AgriLife Research-Bush Farm and the U.S. Department of Agriculture-Agricultural Research Service (USDA-ARS) Conservation and Production Research Laboratory at Bushland will feature more than 50 sorghum silage, sweet sorghum and new bioenergy sorghum hybrids. A second stop will feature weed-control advances in grain sorghum.

The final stop will feature limited irrigation and scheduling on the development and productivity of sorghum, he said.

Registration forms can be found at www.sorghumcheckoff.com.

For Sorghum Improvement Conference of North America members, early registration by July 20 will be $15 for students and $25 for all others. On-site registration will be $35. Bean said producers should feel free to attend all or part of the conference and field tours at no charge. This will include a free lunch on both days and dinner on Aug. 11.

— Release provided by Texas A&M.

— Compiled by Crystal Albers, associate editor, Angus Productions Inc.


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