November 30, 2018 Tennessee Market Highlights Number: 48

FED CATTLE: Fed cattle trade was not well established at press as bid and ask prices were separated by as much as $8 on live basis. Prices are likely to settle near un-changed compared to last week. The 5-area weighted average prices thru Thursday were $115.46 live, up $0.09 from last week and $183.08 dressed, up $1.59 from a week ago. A year ago prices were $120.68 live and $190.05 dressed. Cattle feeders and packers were slow to agree on a price this week with cattle feed-ers asking $4 to $5 higher prices than the previous week while packers were bidding $3 lower than the prior week. It is highly unlikely the market will move much in ei-ther’s favor compared to week ago prices given the somewhat stagnant nature of live cattle futures following the Thanksgiving holiday. Cattle feeders should still hold some leverage over packers at this point in the game as the holiday season buying and restocking of beef counters post-holiday will keep the beef market supported. Cattle feeder leverage may be further sustained during the winter months if poor winter feeding conditions result in lighter weights. BEEF CUTOUT: At midday Friday, the Choice cutout was $212.79 up $0.18 from Thursday and down $0.44 from last Friday. The Select cutout was $198.64 up $0.11 from Thursday and down $0.29 from last Friday. The Choice Select spread was $14.15 compared to $14.98 a week ago. Quality and yield grade is where value is made or lost. In the year 2000, the percent of carcasses grading Prime, Choice and Se-lect were approximately 3.5, 57.3, and 39.2 percent respectively. These values were consistent in 2005. In 2010, the percentage of cattle grading Prime was consistent with previous years but the percentage grading Choice was about 64.5 while Select was at 31.5 percent. By 2015, the percentage of cattle grading Prime was near 5.4 percent

with Choice cattle making up 72.9 percent. In 2018, the percentage of cattle grading Prime through the end of September was 7.8 percent while 73.7 percent graded Choice and only 18.3 percent graded Select showing tremendous improvement in quali-ty grade. However, the opposite is happen-ing with yield grade. The percentage of yield grade 1 carcasses in 2000 was 10.9 percent with 45.7 percent yield grade 2 carcasses, and 41.0 percent yield grade 3 carcasses. In 2018, yield grade 1, 2, 3, 4, and 5 were 5.9, 35.3, 47.1, 10.0, and 1.7 percent respectively. Does the market no longer place enough value on yield or is quality all that matters? OUTLOOK: There are several reasons cattle producers do not use the futures market as a risk management tool and there are sev-eral reasons why some producers do not even look at the futures market. This week’s price action from a cash standpoint increased compared to last week while the price action of feeder cattle futures moved lower through the week. This move in op-posite directions represents a reason why producers do not use it for risk manage-ment and do not even look at it for ex-pected price movement. However, this is a flawed depiction of the two markets. Feed-er cattle futures prices surged higher late last week and were a couple of dollars to several dollars higher than any daily trade from the week prior. Though there was softening in the market this week, the fu-tures market continued to trade above pric-es from two weeks ago. The Thanksgiving holiday shutdown several auction markets while the futures market kept chugging along which impacted trends on the cash market. Additionally, the futures market is the expectation of what is going to happen in the future while the cash market is a here and now type of market. This would indicate that the futures market is for long-er term planning horizons instead of near term solutions. Considering feeder cattle

(Continued on page 2)

Livestock Comments by Dr. Andrew P. Griffith Trends for the Week Compared to a Week Ago

Slaughter Cows

$3 lower

Slaughter Bulls

$5 lower

Feeder Steers

$2 to $8 higher

Feeder Heifers

$2 to $10 higher

Feeder Cattle Index

Wednesday’s index: 147.47

Fed Cattle

The 5-area live price of $115.46 was up $0.09. The dressed price of $183.08 was up $1.59.

Corn

March closed at $3.77 a bushel, up 7 cents since last Friday.

Soybeans

January closed at $8.94 a bushel, up 13 cent since last Friday.

Wheat

March closed at $5.15 a bushel, up 8 cents since last Friday.

Cotton

March closed at 78.91 cents per lb, up 1.69 cents since last Friday.

2

futures and looking longer term, the yearling cattle market moving through the winter and spring months appear to be stagnant in 2019 with the market gathering strength in the summer and fall months. The current price expectations should support calf prices from now through early April with the strongest calf prices in late February through early April. For producers with spring born calves yet to be marketed, holding onto the calves until the first of the year should be a profitable decision as grass cattle will be in demand. The suggestion to yearling cattle producers is to stay the course at this point. There does not appear to be any advantage to hedging cattle now with little indication of market prices moving lower and value of gain numbers being favorable. ASK ANDREW, TN THINK TANK: There have been a few ques-tions the past two or three weeks concerning the optimal weight to market calves and feeder cattle. These questions hinged around the weight that would return the largest profit. The answer to this question changes continuously. Whether a cow-calf producer or a stocker producer, each producer needs to consider how to maximize profits relative to the available resources while also considering seasonality of cattle prices throughout the year. Producers also need to consider decisions that could impact long term profits and not just profits in a sin-gle year. The cattle business is about developing a reputation for developing low risk cattle that will provide value for the next producer and ultimately the consumer. There are general answers to the aforementioned question based on expected prices during the year, but the general answer does not even fit the average producer very well. Consider the costs of feeding the animal versus the value of feeding the animal on a regular basis and the question will be answered. Please send questions and comments to agriff14@utk.edu or send a letter to Andrew P. Griffith, University of Tennessee, 314B Morgan Hall, 2621 Morgan Circle, Knoxville, TN 37996. FRIDAY’S FUTURES MARKET CLOSING PRICES: Friday’s closing prices were as follows: Live/fed cattle –December $116.93 +0.33; February $120.50 +0.23; April $122.00 +0.13; Feeder cattle –January $145.23 -0.75; March $142.85 -0.83; April $143.63 -0.75; May $143.95 -0.53; December corn closed at

(Continued from page 1)

Livestock Comments by Dr. Andrew Griffith

$3.67 up $0.06 from Thursday.

Thursday, November 29, 2018

Month Class III Close Class IV Close

Nov 14.47 15.07

Dec 14.14 14.89

Jan 14.43 14.93

Feb 14.71 15.01

Mar 14.98 15.16

Milk Futures

Cattle Hogs

———— Number of head ————

This week (4 days) 119,000 466,500

Last week (3 days) 119,333 479,333

Year ago (4 days) 119,000 457,500

This week as percentage of

Week ago (%) 100% 97%

Year ago (%) 100% 102%

Average Daily Slaughter USDA Box Beef Cutout Value

Choice 1-3 600-900 lbs

Select 1-3 600-900 lbs

———————— $/cwt —-———————

Thursday 212.61 198.53

Last Week (Wednesday) 213.69 198.26

Year ago 206.55 185.84

Change from week ago -1.08 +0.27

Change from year ago +6.06 +12.69

3

Crop Comments by Dr. Aaron Smith

Overview Corn, cotton, wheat, and soybeans were up for the week.

A strong finish to the week, due to optimism regarding trade discussions, led prices to close up for the week across the board. Markets will closely monitor trade news out of Buenos Aires, Argentina where G-20 leaders are meeting

November 30 and December 1. The anticipated meeting between Presidents Trump and Xi (on Saturday) will dictate price direction early next week, particularly for soybeans. Positive news, indicating a path toward a trade dispute resolution between the world’s two largest economies, will likely result in a continuation of the late week rally, possibly breaking through strong resistance at $9.00 (January soybean contract). Negative reports could trigger a retest of the six month low of $8.26 (January soybean contract).

Total U.S. export commitments (accumulated exports and outstanding sales) for corn, soybeans, and wheat continue to languish well below the required pace to meet USDA’s marketing year projection for the 2018/19 marketing year. Cotton, the lone bright spot, has seen sales wain in recent weeks after very strong sales this summer and early fall. Currently, cotton export commitments are 70% of the USDA marketing year total well above the 5-year average pace of 58%. By comparison, corn, soybean, and wheat export commitments (5-year averages) are 41% (46%), 45% (71%), and 54% (73%).

Exports are an important demand source for all four commodities that help increase the prices U.S. producers receive for their commodities. Over 85% of the cotton, 45% of the soybeans, 15% of the corn, and 45% of the wheat produced in the U.S. are ex-ported to other countries. Access to international markets and fair trade with other countries will be essential to price improve-ments as we enter 2019.

Corn

The Crop Progress report estimated corn harvested at 94% compared to 90% last week, 94% last year, and a 5-year average of 96%. Ethanol production for the week ending November 23 was 1.048 million barrels per day, up 6,000 from the previous week. Ethanol stocks were 22.93 million barrels, down 139,000 barrels. Corn net sales reported by exporters from November 16-22 were above expectations with net sales of 49.9 million bushels for the 2018/19 marketing year. Exports for the same time period were up 26% compared to last week at 41.5 million bushels. Corn export sales and commitments were 41% of the USDA estimated total annual exports for the 2018/19 marketing year (September 1 to August 31) compared to a 5-year average of 46%. Across Tennessee, aver-age corn basis (cash price-nearby futures price) weakened at Northwest Tennessee and strengthened at Memphis, Northwest Barge Points, and Upper-middle Tennessee. Overall, basis for the week ranged from 16 under to 10 over the December futures contract with an average of 1 under at the end of the week. December 2018 corn futures closed at $3.66. In Tennessee, January 2019 corn cash forward contracts averaged $3.74 with a range of $3.58 to $3.90. Mar/May and Mar/Dec future spreads were 8 and 22 cents. March 2019 corn futures closed at $3.77, up 7 cents since last Friday. For the week, March 2019 corn futures traded be-tween $3.67 and $3.78.

December 2019 corn futures closed at $3.99, up 4 cents since last Friday. Downside price protection could be obtained by purchas-ing a $4.00 December 2019 Put Option costing 25 cents establishing a $3.75 futures floor.

(Continued on page 4)

4

Crop Comments by Dr. Aaron Smith

Soybeans

The Crop Progress report estimated soybeans harvested at 94% compared to 91% last week, 99% last year, and a 5-year average of 98%. In Tennessee, soybeans harvested were estimated at 83% compared to 74% last week, 90% last year, and a 5-year average of 92%. Net sales reported by exporters were within expectations with net sales of 23.1 million bushels for the 2018/19 marketing year. Exports for the same period were down 20% compared to last week at 37.6 million bushels. Soybean export sales and com-mitments were 45% of the USDA estimated total annual exports for the 2018/19 marketing year (September 1 to August 31), com-pared to a 5-year average of 71%. Average soybean basis weakened or remained unchanged at Memphis, Northwest Barge Points, Northwest, and Upper-middle Tennessee. Basis ranged from 66 under to 19 under the January futures contract at elevators and barge points. Average basis at the end of the week was 38 under the January futures contract. January 2019 soybean futures closed at $8.94, up 13 cents since last Friday. For the week, January 2019 soybean futures traded between $8.57 and $8.96. In Ten-nessee, January 2019 soybean cash contracts average $8.64 with a range of $8.20 to $9.13. March 2019 soybean futures closed at $9.07, up 13 cents since last Friday. Jan/Mar and Jan/Nov future spreads were 13 and 45 cents, respectively.

November 2019 soybean futures closed at $9.39, up 9 cents since last Friday. Downside price protection could be achieved by pur-chasing a $9.40 November 2019 Put Option which would cost 57 cents and set an $8.83 futures floor. Nov/Dec 2019 soybean-to-corn price ratio was 2.35 at the end of the week.

Cotton

The Crop Progress report estimated cotton harvested at 70% compared to 59% last week, 78% last year, and a 5-year average of 77%. In Tennessee, cotton harvested was estimated at 92% compared to 87% last week, 90% last year, and a 5-year average of 88%. Net sales reported by exporters were down from last week with net sales of 176,800 bales for the 2018/19 marketing year and 14,200 bales for the 2019/20 marketing year. Exports for the same time period were 126,100 bales, down 16% from last week. Upland cotton export sales were 70% of the USDA estimated total annual exports for the 2018/19 marketing year (August 1 to July 31), compared to a 5-year average of 58%. Delta upland cotton spot price quotes for November 29 were 75.93 cents/lb (41-4-34) and 77.68 cents/lb (31-3-35). Adjusted World Price (AWP) increased 0.03 cents to 67.92 cents. March 2019 cotton futures closed at 78.91, up 1.69 cents since last Friday. For the week, March 2019 cotton futures traded between 77.18 and 79.32 cents. Mar/May and Mar/Dec cotton futures spreads were 1.04 cents and -1.88 cents. May 2019 cotton futures closed at 79.95, up 1.46 cents since last Friday.

(Continued on page 5)

5

Crop Comments by Dr. Aaron Smith

December 2019 cotton futures closed at 77.03, up 0.48 cents since last Friday. Downside price protection could be obtained by purchasing a 78 cent December 2019 Put Option costing 5.38 cents establishing a 72.62 cent futures floor.

Wheat

Wheat net sales reported by exporters were within expectations with net sales of 13.9 million bushels for the 2018/19 marketing year. Exports for the week were down 50% compared to last week at 9.2 million bushels. Wheat export sales were 54% of the USDA estimated total annual exports for the 2018/19 marketing year (June 1 to May 31), compared to a 5-year average of 73%. March 2019 wheat futures closed at $5.15, up 8 cents since last Friday. March 2019 wheat futures traded between $5.04 and $5.19 this week. March wheat-to-corn price ratio was 1.37. Mar/May and Mar/Jul future spreads were 6 cents and 12 cents. May 2019 wheat futures closed at $5.21, up 8 cents since last Friday.

The Crop Progress report estimated winter wheat condition at 55% good-to-excellent and 13% poor-to-very poor; winter wheat planted at 95% compared to 93% last week, 99% last year, and a 5-year average of 99%; and winter wheat emerged at 86% com-pared to 81% last week, 91% last year, and a 5-year average of 92%. In Tennessee, winter wheat condition was estimated at 67% good-to-excellent and 2% poor-to-very poor; winter wheat planted at 83% compared to 74% last week and 90% last year; and win-ter wheat emerged at 67% compared to 59% last week and 78% last year. In Tennessee, June/July 2019 wheat cash contracts ranged from $5.04 to $5.40 for the week. July 2019 wheat futures closed at $5.27, up 7 cents since last Friday. Downside price pro-tection could be obtained by purchasing a $5.30 July 2019 Put Option costing 32 cents establishing a $4.98 futures floor.

Additional Information: Links for data presented: U.S. Export Sales - https://apps.fas.usda.gov/export-sales/esrd1.html USDA FAS: Weekly Export Performance Indicator – https://apps.fas.usda.gov/esrquery/esrpi.aspx EIA: Weekly ethanol Plant Production - https://www.eia.gov/dnav/pet/pet_pnp_wprode_s1_w.htm EIA: Weekly Supply Estimates - https://www.eia.gov/dnav/pet/pet_sum_sndw_a_EPOOXE_sae_mbbl_w.htm Upland Cotton Reports - https://www.fsa.usda.gov/FSA/epasReports?area=home&subject=ecpa&topic=fta-uc Tennessee Crop Progress - https://www.nass.usda.gov/Statistics_by_State/Tennessee/Publications/Crop_Progress_&_Condition/ U.S. Crop Progress - http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1048 USDA AMS: Market News - https://www.ams.usda.gov/market-news/search-market-news

If you would like further information or clarification on topics discussed in the crop comments section or would like to be added to our free email list please contact me at aaron.smith@utk.edu.

6

Friday, November 23, 2018 — Thursday, November 29, 2018

Commodity Contract Month Friday Monday Tuesday Wednesday Thursday

Soybeans Jan 8.81 8.62 8.75 8.90 8.87

($/bushel) Mar 8.94 8.76 8.89 9.04 9.00

May 9.08 8.89 9.02 9.17 9.13

Jul 9.20 9.02 9.15 9.30 9.26

Aug 9.25 9.07 9.20 9.34 9.30

Sep 9.26 9.09 9.21 9.34 9.30

Corn Dec 3.59 3.56 3.56 3.60 3.60

($/bushel) Mar 3.70 3.68 3.68 3.73 3.73

May 3.78 3.75 3.75 3.80 3.80

Jul 3.85 3.82 3.82 3.87 3.87

Sep 3.89 3.86 3.86 3.89 3.90

Dec 3.95 3.92 3.92 3.96 3.96

Wheat Dec 4.99 5.07 4.98 4.97 4.96

($/bushel) Mar 5.07 5.14 5.06 5.11 5.07

May 5.13 5.18 5.12 5.19 5.14

Jul 5.20 5.25 5.19 5.26 5.21

Sep 5.31 5.34 5.29 5.35 5.31

Soybean Meal Dec 305 303 304 307 306

($/ton) Jan 308 305 307 310 309

Mar 310 307 310 313 312

May 313 310 312 316 314

Jul 316 313 315 318 317

Aug 318 315 317 320 319

Cotton Dec 74.92 77.40 76.77 77.76 76.64

(¢/lb) Mar 77.22 78.58 77.88 78.88 78.68

May 78.49 79.75 79.04 79.96 79.75

Jul 79.71 80.88 80.18 81.01 80.80

Oct 77.15 77.82 77.32 78.06 77.94

Live Cattle Dec 117.10 116.92 116.70 116.77 116.60

($/cwt) Feb 120.92 120.65 120.60 120.55 120.27

Apr 123.15 122.87 122.57 122.40 121.87

Jun 115.42 115.30 114.90 114.65 113.82

Aug 113.32 113.32 113.05 112.90 111.67

Feeder Cattle Jan 149.37 149.15 148.42 147.70 145.97

($/cwt) Mar 145.92 146.15 146.00 145.35 143.67

Apr 146.25 146.47 146.40 145.82 144.37

May 146.50 146.72 146.60 146.05 144.47

Aug 150.45 150.60 150.32 149.82 148.70

Sep 149.90 150.30 150.00 149.52 148.02

Market Hogs Dec 59.07 57.40 57.87 57.95 58.72

($/cwt) Feb 67.82 65.55 65.05 64.50 67.35

Apr 72.40 71.30 70.57 70.07 72.00

May 77.80 76.62 75.97 75.27 76.87

Jun 85.40 84.35 83.17 82.47 84.00

Futures Settlement Prices: Crops & Livestock

7

Cattle Receipts: This week: 6,404 (7) Week ago: 3,728 (5) Year ago: 5,405 (7)

This Week Last Week Year Ago

Low High Weighted Average Weighted Average Weighted Average

—————————————————————— $/cwt ——————————————————————

Steers: Medium/Large Frame #1-2

300-400 lbs 140.00 180.00 159.93 151.96 165.38

400-500 lbs 135.00 166.00 150.40 149.74 157.39

500-600 lbs 127.00 161.00 144.46 137.91 151.24

600-700 lbs 119.00 143.50 134.77 130.71 139.66

700-800 lbs 115.00 136.00 125.23 126.49 132.98

Steers: Small Frame #1-2

300-400 lbs 130.00 148.00 136.85 ——— ———

400-500 lbs 112.50 142.50 130.56 ——— 118.71

500-600 lbs 80.00 135.00 115.64 ——— 126.96

600-700 lbs 110.00 120.00 116.85 ——— ———

Steers: Medium/Large Frame #2-3

300-400 lbs 112.00 162.50 137.45 130.73 154.57

400-500 lbs 120.00 150.00 137.10 135.73 140.14

500-600 lbs 110.00 143.00 131.12 121.01 132.03

600-700 lbs 110.00 139.00 121.58 120.50 130.79

700-800 lbs 110.00 115.00 112.54 ——— 121.58

Holstein Steers

300-400 lbs ——— ——— ——— ——— ———

500-600 lbs ——— ——— ——— ——— 86.57

700-800 lbs ——— ——— ——— ——— ———

Slaughter Cows & Bulls

Breakers 75-80% 37.00 41.46 44.78 48.19 48.00

Boners 80-85% 43.64 46.18 55.46 36.50 52.00

Lean 85-90% 30.00 45.00 36.40 37.30 44.98

Bulls YG 1 55.00 75.00 65.17 70.24 73.00

Heifers: Medium/Large Frame #1-2

300-400 lbs 110.00 140.00 131.10 128.91 139.77

400-500 lbs 110.00 142.00 126.74 118.25 135.77

500-600 lbs 107.50 132.00 122.54 118.25 131.73

600-700 lbs 95.00 129.00 117.14 116.62 125.45

Heifers: Small Frame #1-2

300-400 lbs 90.00 130.00 115.45 ——— 133.55

400-500 lbs 95.00 124.00 113.58 ——— 119.19

500-600 lbs 90.00 120.00 110.80 ——— 119.35

600-700 lbs 82.50 110.00 100.86 ——— ———

Heifers: Medium/Large Frame #2-3

300-400 lbs 110.00 132.50 123.56 111.44 128.39

400-500 lbs 100.00 126.00 118.55 112.73 123.77

500-600 lbs 100.00 123.00 114.03 111.38 120.38

600-700 lbs 80.00 122.00 101.85 106.77 114.21

Prices on Tennessee Reported Livestock Auctions for the week ending November 30, 2018

8

Friday, November 23, 2018 — Thursday, November 29, 2018

Friday Monday Tuesday Wednesday Thursday

Low High Low High Low High Low High Low High

———————–——————————————— $/bushel ———————————————————–———

No. 2 Yellow Soybeans

Memphis ——— 8.30-8.35 8.43-8.47 8.58-8.63 8.55-8.59

N.W. B.P. ——— 8.35-8.43 8.46-8.55 8.62-8.66 8.59-8.62

N.W. TN ——— 7.97-8.12 8.10-8.26 8.25-8.41 8.22-8.37

Upper Md. ——— 8.27-8.37 8.40-8.52 8.55-8.65 8.51-8.63

Lower Md. ——— ——— ——— ——— ———

Yellow Corn

Memphis ——— 3.60-3.65 3.60-3.64 3.64-3.70 3.64-3.70

N.W. B.P. ——— 3.56-3.58 3.60-3.64 3.66-3.69 3.65-3.68

N.W. TN ——— 3.36-3.59 3.37-3.60 3.41-3.64 3.40-3.63

Upper Md. ——— 3.46-3.53 3.46-3.53 3.50-3.63 3.50-3.63

Lower Md. ——— ——— ——— ——— ———

Wheat

Memphis ——— ——— ——— ——— ———

Prices Paid to Farmers by Elevators

85

105

125

145

165

185

Tennessee 700-800 lbs. M-1 Steers Prices2017, 2018 and 5-year average

2012/2016 Avg 2017 2018

8595

105115125135145155

5-Area Finished Cattle Prices2017, 2018 and 5-year average

2012/2016 Av g 2017 2018

35455565758595

105

Tennessee Slaughter Cow PricesBreakers 75-80%

2017, 2018 and 5-year average

1.00 2017 2018

100

120

140

160

180

200

220

Tennessee 500-600 lbs. M-1 Steer Prices2017, 2018 and 5-year average

2012/2016 Avg 2017 2018

9

Blue Grass Stockyards - November 27, 2018 1 load of 80 heifers; black; avg. wt. 630 lbs.; $142.00 1 load of 64 steers; black; avg. wt. 800 lbs.; $145.90 1 load of 60 steers; black; avg. wt. 850 lbs.; $140.00 Browning Livestock Market - November, 28, 2018 1 load of 63 steers; M&L 1-2s; avg wt. 787 lbs.; $141.00 Farmers Livestock East TN Cattle Alliance Preconditioned Sale, Greeneville, TN Weighted Average Report for Thursday Nov 29, 2018 Cattle Receipts: 532 For complete report: https://www.ams.usda.gov/mnreports/nv_ls185.txt Hardin County Stockyard - November 28, 2018 66 steers, 759 lbs, M&L 1-2, Black/BWF Red/RWF CHX, 4-5 flesh, $145.00 72 heifers, 717 lbs, M&L 1, Black/BWF Red/RWF CHX, 5-6 flesh, $134.50 Mid-South Livestock Center - November 26, 2018 1 load of 59 steers; M&L 1-2s; avg. wt. 842 lbs.; $142.35 TLP Beef Alliance Sale, Columbia, TN Weighted Average Report for Tuesday Nov 27, 2018 Cattle Receipts: 1644 For complete report: https://www.ams.usda.gov/mnreports/nv_ls188.txt

11/27/18 TN Livestock Producers Fayetteville Receipts: 591 (232graded & grouped) Steers: Med & Lg 1-2 Heifers: Med & Lg 1-2 300-400 lbs 127.50-136.00 300-400 lbs 128.00-132.00 400-500 lbs 128.00-132.00 400-500 lbs 120.00-129.00 500-600 lbs 140.00-148.00 500-600 lbs 119.50-123.50 600-700 lbs 134.00-142.00 600-700 lbs 112.00-119.00 Bulls: Med & Lg 1-2 400-500 lbs 131.00-135.00 500-600 lbs 123.00 600-700 lbs 118.00 700-800 lbs 110.00

Graded Sales, Video Board Sales, Video Sales & Loads Self-Reported and Self-Graded Livestock Markets

Self-Reported and Self-Graded Livestock Markets

10

Breaking: Deal Reached on Farm Bill By John Herath, Farm Journal Media, News Director

November 29, 2018

House and Senate negotiators have reached a deal on a 2018 farm bill. That agreement now awaits scoring from the Con-gressional Budget Office to make sure it meets fiscal con-straints for farm bill funding.

“We’re pleased to announce that we’ve reached an agreement in principle on the 2018 farm bill,” said a joint statement from the four leaders of the House and Senate Agriculture Com-mittees. “We are working to finalize legal and report language as well as CBO scores, but we still have more work to do. We are committed to delivering a new farm bill to America as quickly as possible.”

The statement was attributed to House and Senate Agriculture Committee Chairmen Mike Conaway (R-Texas) and Pat Roberts (R- Kan.) and Ranking Members Collin Peterson (D-Minn.) and Debbie Stabenow (D-Mich.)

According to Pro Farmer Washington Analyst Jim Wiesemeyer, the report from the Farm Bill Conference Committee could be released as soon as Friday or early next week, depending on how long it takes for CBO to complete its analysis.

Wiesemeyer said the agreement will likely allow for annual election between improved Price Loss Coverage (PLC) and Agri-cultural Risk Coverage (ARC) safety net programs. Those pro-grams are likely to see updated yield parameters.

Roberts told reporters on Wednesday that the farm bill will likely be held as a standalone bill rather than being wrapped into an omnibus spending package that must be passed by Dec. 7 to keep the government operating.

The latest hold-up on the farm bill conference had been disa-greement over forest management provisions brought up in the wake of recent, devastating California wildfires.

“Congressional leadership apparently settled the matter by punting most of the forestry title as a separate bill, a maneuver used in the past,” Wiesemeyer said. “Some minor forestry items could still be included in the coming farm bill conference

Beef Industry News Featured Article from AgWeb

report.”

Watch AgWeb.com for continuing coverage of this breaking story.

Department of Agricultural and Resource Economics 314 Morgan Hall • 2621 Morgan Circle

arec.tennessee.edu USDA / Tennessee Department of Agriculture Market News Service http://www.tennessee.gov/agriculture/article/ag-farms-market-news 1-800-342-8206