The latest round of “undercover” videos released by the Humane Society of the U.S. (HSUS) ostensibly targeted two farms – owned by Seaboard Foods and Prestage Farms – to illustrate the alleged cruelty of gestation stalls and misbehavior by farm workers. HSUS hyperbole about gestation stalls is well known, totally without scientific foundation, and use of the stalls is essentially an issue of personal belief, science, experience and perception.

However, the video – once again filmed some months ago, but held by the media-hungry HSUS until the maximum media moment – has less to do with the two farms and everything to do with intimidating their retail customers. HSUS went the extra step this time, filing complaints with the Securities & Exchange Commission (SEC) and the (FTC), alleging the treatment of pigs as “illustrated” by the video is at odds with company website statements and is “misleading its shareholders and the public.”

HSUS lets anyone cruising its website know Seaboard is a WalMart supplier; Prestage Farms has major retail customers as well. The strategy here is to frighten these mega retailers with an implied message: “We will continue to embarrass you by attacking your suppliers. Use the power of the purse to force them to raise pigs the way WE want pigs raised, or risk our continued wrath.”

This is an opportunity for WalMart and others to show some backbone. Resist the temptation to go with the quick public relations fix and stand with farmers and ranchers – no matter the size of their operations – and send HSUS and groups of its ilk the message that cheap video stunts and allegations to the government will not deter you from getting the facts and the using the science and experts — including real live farmers and ranchers — to inform your decisions. There are thousands of farmers who will stand with you or in front of you in dealing with HSUS trust me. Respect will grow.

This does not compromise your commitment to your customers when it comes to proper care and treatment of the animals which provide the meat for your stores. It avoids political shenanigans in DC and statehouses around the country by politicians who don’t know any better, but think they can make you happy by whacking at your farmer supplier. But most importantly, it demonstrates to your customers you have the same priorities as they – and the farmer – namely, ensuring that the best is being done in the best way by the best people.

I’m not suggesting turning a blind eye to bad practices. On the contrary, I’m advising retailers to learn as much about the producer and the process as you know about the product and the price. Set your standards based upon knowledge and practical application; weigh the options out there for your suppliers, and become an ally, not an enemy with a reputation for knee-jerk ill-advised PR responses to activist pressure.

Being responsible, showing some backbone in the face of activist political pressure gains you friends and allies. At the same time, you maintain your standards, your quality supply of product, you keep your customers happy and you help ensure there are farmers and ranchers around who will step up and work with you and for you.

Beginning in 2012 the American Quarter Horse Association (AQHA) will be offering trail challenges, to learn more I talked with Roxanne Swygart of Ft. Wayne, a member of the Indiana Quarter Horse Association. Roxanne says events can have from6 to 16 different challenges and riders will compete in three different categories.

Audio: Roxanne Swygart, Indiana Quarter Horse Assn. (3:00 MP3)

Jim Ramm of Atkinson, Nebraska is the president of the Nebraska Cattlemen’s organization.  In an interview with Brownfield at the Cattle Industry Conference in Nashville, Ramm discussed some of the national and state issues that his group is focused on.  He also talks about the four percent increase in Nebraska’s January 1st cattle inventory and indications that increased heifer retention might be taking place in the Sandhills of Nebraska.

AUDIO: JIm Ramm (4:26 MP3)

The USDA has announced more than $40 million in value added producer grants are being given to nearly 300 recipients in 44 states and Puerto Rico. The grants fall in two categories: planning grants and working capital grants. Deputy Secretary Kathleen Merrigan says they do require a dollar-for-dollar match. Merrigan announced the grants in Chicago after giving the keynote address at the Federal Reserve Bank of Chicago for the Local/Regional Food System Conference.

Asked by reporters whether the USDA will insist on mandatory funding for Value Added Producer Grants, Merrigan said they know the program works – but Congress writes the farm bill. “I’m too poor to put any money down on the table what’s happening this farm bill season. I’m as confused as can be.”

Merrigan says the Value Added grants DO help producers – and will be featured in the USDA’s report about the Know Your Farmer – Know Your Food Initiative as mandated by the Fiscal Year 2012 appropriations bill, “Generally, we think anything that helps farmers improve their bottom line, whether they’re doing local, whether they’re doing export markets – that’s the business of USDA and we’re going to stay in that business.”

Merrigan said Living Water Farms, in Strawn, Illinois, is one of the grant recipients – using the funds to expand their hydroponically-grown greens for specialty markets – their current customers include Illinois grocery stores, restaurants in Chicago and St. Louis and a “Midwest college food service program.”

AUDIO: Deputy Secretary Kathleen Merrigan, Conference Call (18:00 mp3)

USDA – Value-Added Producer Grants

Soybeans were higher on speculative and technical buying, along with the higher Dow and crude oil. The trade continues to watch weather in South America with scattered rainfall expected around the region during the coming week. The global supply remains tight ahead of February 9th’s USDA supply and demand update, where USDA will also have updated South American production estimates. Informa Economics most recent estimates have Argentina’s soybean crop at 46.5 million tons and Brazil at 70 million tons. Soybean meal and oil were higher, following soybeans’ lead. According to DTN and Reuters, Taiwan’s Breakfast Soybean Procurement Association bought 60,000 tons of soybeans from Brazil.

Corn was modestly higher on technical buying and spillover from beans. There was no fresh news with most of the South American crop damage probably factored in at this time. However, we do know that damage has been done – USDA’s agricultural attaché has lowered its’ production outlook for Argentina, from 26 million tons to 21.8 million tons, while Informa Economics pegs the Argentina crop at 22.5 million tons and sees Brazil’s corn crop at 61.65 million. The next official USDA estimate is out with the supply and demand numbers on Thursday, February 9. Ethanol futures were steady to weak. Dow Jones Newswires reports South Korean feedmills bought 174,500 tons of corn (Major Feedmill Group: 69,500 tons optional origin; the Busan branch of the Korea Feed Association: 55,000 tons U.S. corn; the Seoul branch of the KFA: 50,000 tons optional origin) with delivery scheduled for mid-May. DTN and Dow Jones add Taiwan’s Maize Industry Procurement Association bought 55,000 tons of Argentine origin corn for shipment in mid to late March.

The wheat complex was mixed. Chicago and Kansas City were down on profit taking and technical selling. Minneapolis was up on the comparatively good demand for high protein wheat. On Friday, Russia raised its export projection to 27 million tons and said it won’t add an export tax this April. Moscow says grain exports as of February 3 are 19.6 million tons and along with an increase in the production total, up to 93.9 million tons, the Ag Ministry also cited enough carryover and intervention stocks as reasons for the export increase. Dow Jones Newswires Eastern European growing areas should see a break from the recent extremely cold conditions. European wheat was up on the recent Eastern European weather concerns. India’s Farm Ministry expects domestic wheat production to be a new record high 88.31 million tons.

USDA Mandatory is reporting cattle trading was moderate in the South Plains on moderate demand. Compared to last week, live sales sold 1.00 lower at 123.00. In Eastern Nebraska and Iowa, dressed sales trended mostly 2.00 lower at 198.00 on moderate demand with a few sales at 199.00 in Eastern Nebraska. Live sales in Iowa were .50 lower at 123.00 to 123.50., with Eastern Nebraska live sales 1.00 lower at 123.00. The weekly cattle slaughter was estimated at 589,000 head, 19,000 below the previous week and 38,000 less than 2011. This is the first time that packers have killed fewer than 600,000 in a none holiday week since April of 2009.

Boxed beef cutout values were weak on light to moderate demand and offerings. Choice boxed beef was down .07 at 183.12, and select was .45 lower at 178.08.

Chicago Mercantile Exchange live cattle contracts settled 35 to 152 points lower on weaker cash markets and pressure from technical trading. Traders appeared to be taking a longer term view on the market rather than focusing solely on the potential cash market. Weaker boxed beef values at midday also weighed on the live contracts. February settled 1.52 lower at 123.62, and April was down 1.50 at 127.40.

Feeder cattle ended the session 37 to 92 points lower on a lack of support from the live pit. Softer corn values gave some support to the complex. Trade was pretty much at a standstill late in the session. March settled .92 lower at 154.55, and April was down .90 at 157.02.

Feeder cattle receipts at Missouri auctions this week totaled 36,601 head. Compared to last week, feeder steers weighing less than 750 pounds sold 2.00 to 4.00 higher, over 750 pounds steady to 2.00 lower. Feeder heifers sold 2.00 to 5.00 higher with several weighing less than 550 pounds 6.00 to 8.00 higher. The feeder supply was moderate. Receipts are starting to taper off although it has not happened as quickly as many had expected, especially given the mild weather this winter which has resulted in very few days in which transportation of cattle has been an issue. 1194 head of feeder steers medium and large 1 weighing 572 pounds traded at 176.88 per hundredweight. 1046 heifers averaging 575 pounds brought 157.80.

Lean hog contracts settled 47 higher to 82 points lower in light trade. The lackluster cash market movement in the morning report softened early support in the nearby contract. Wholesale prices have weakened and processors continue to face negative profit margins.  Some packers have slowed chain speed as the seasonal surge in demand has not materialized. February settled .05 lower at 87.52, and April was down .82 at 88.92.

Hog market activity was slow with light demand. Iowa/Minnesota hogs were 1.43 lower at 85.23 on a carcass basis, the West was down 1.31 at 85.82, and the East was 2.48 lower at 81.30. Missouri direct base carcass meat price is steady from 80.00 to 81.00. Terminal barrows and gilts closed steady to 1.00 higher from 57.00 to 60.00.

Pork trading was slow with light demand and light to moderate offerings.  Pork carcass cutout value was .15 higher at 85.10.

This week’s hog slaughter at 2,137,000 head is 30,000 less than last week, but, 78,000 more than last year when much of the major production areas were hit by a snow storm. Poor profit margins for packers could once again keep the chain speed slower than normal next week.

Mar. corn closed at $6.44 and 1/2, up 1 and 1/2 cents
Mar. soybeans closed at $12.32 and 1/2, up 15 and 1/2 cents
Mar. soybean meal closed at $328.60, up $5.20
Mar. soybean oil closed at 51.65, up 46 points
Mar. wheat closed at $6.60 and 3/4, down 2 cents
Feb. live cattle closed at $123.62, down $1.52
Feb. lean hogs closed at $87.52, down 5 cents
Mar. crude oil closed at $97.84, up $1.48
Mar. cotton closed at 96.34, up 213 points
Feb. Class III milk closed at $16.15, unchanged
Dow Jones Industrial Average: 12,862.23, up 156.82 points

Cattlemen, at the Ohio Cattlemen’s Association (OCA) annual meeting on Saturday, January 28, 2012, adopted policy that supports a voluntary $1.00 state checkoff increase.

Dave Felumlee, immediate past president of the OCA says additional dollars are needed to bring funding levels back to where they were when the checkoff began in 1986.

“This will give us a chance by adding $1.00 to the state checkoff, to be used in the State of Ohio, from Ohio producers, to advertise, to promote our business, to build consumer confidence and consumer demand here in Ohio,” said Felumlee.

Felumlee tells Brownfield the process will begin with OCA working with the Ohio Department of Agriculture (ODA) on the wording of a petition, which will then need 1,000 signatures in order to go to a referendum. The Licking County cattlemen says they’re looking at probably a late summer, early fall timeframe.

Later this school year, the Greene County Career Center at Xenia will be adding two new programs at what is now called the Greene County Agricultural Research Center.

“We’ve had the wonderful opportunity to purchase some land and an equine facility just north of Xenia,” said Green County Career Center Superintendent Dan Schroer. “And at that 49 acre facility we plan to be offering, starting in June adult education riding classes and then in August we’re going to be starting veterinary science and equine science for high school juniors and seniors.”

As a past state and national FFA officer and former ag teacher, Schroer tells Brownfield he’s had the opportunity to visit many agricultural programs, both here in Ohio and around the country, but none, he says like what you’ll find in Greene County.

“The facility is amazing with 34 horse stalls, classroom, office space, laboratory space and an 18,000 square foot indoor riding arena where we’ll also have bleachers and a stage to be able to put on shows and educational clinics,” Schroer said. “It is a wonderful, wonderful facility and we are going to be the center for agricultural education for the State of Ohio.”

An open house of the Greene County Agricultural Research Center at Xenia is going to be held Saturday, February 11 from noon until 2.

Audio: Dan Schroer, Superintendent, Greene Co. Career Center (7:05 MP3)

Weed resistance workshops, sponsored by the Ohio AgriBusiness Association and Ohio Soybean Association will be held later this month.

“And the idea is to make sure folks, both retailers and farmers are thinking ahead and preparing for some of the resistance issues that we’re facing today,” said Chris Henney, President and CEO of the Ohio AgriBusiness Association.

Workshops will be held:

February 28 – OARDC, 1680 Madison Ave. in Wooster

February 29 – The Fawcett Center, 2400 Olentangy River Road, Columbus

March 1 – The Centre, 601 North Main St., Bluffton

All three workshops will be held from 9:00 a.m. until 12:30 p.m. Information and registration information is available here.