[school bell ringing] [car horn honks] if your kids rely on subsidized school meals, contact your feeding america member food bank to learn about free summer meals. another big usda report adds to commodity market today on u.s. farm report. another big u.s.d.a. report adds to commodity turmoil. and the epa extends the

renewable fuels standards comment period. u-s farm report...i'm john phipps. good morning and welcome to u.s. farm report. i'm john phipps. well it didn't take long for my 2009 plan to be rewritten. this is an expected feature of farming. one reason we are all used to updating our budgets and recalculating the best decisions to make. thank goodness for computers. do we use sophisticated technology to make a @$'p

complicated issue easier. sometimes i'm not so sure. let's begin with the news with al pell. the usda released prices. the 2009-2010 carry over was raised 40 billion-bushels to 250 million. thanks to extra records beginning next week. that's a slight increase from the june report. now the june 30th acreage report brought surprises from market traders when the usda brought nearly 3 million acres of corn were planted this week. part of that surprise were part -- the ag department says 87 million acres of corn were

planted this spring. that's a second highest amount since 1946 trailing in 2007. noted ag economist daryl good says those extra acres brought in reports of tighter ending stocks. >> what we would expect now if corn prices are permenantly lower here for the foreseeable future. that this should really slow, perhaps bring to a halt the liquidation and stock numbers which means that consumption can get back to a little higher plain. this should also improve the mar margins for ethanol producers. the u.s. average shield is near the adjusted trend of 153- bushels per acre. now on the soybean side, 77.5

million acres will be planted. that's up 2% higher than last year. the agency says it's extending the comment period on a draft rule known as i52. the proposed changes are made due to bio fuel. what role and direct land use have in the production of ethanol. in this morning's crop watch we start in the golden triangle of montana. they got some timely rains this week . about a half inch. they grow it for rotational purposes and not beer. johnny sanders from fort gains said they got 7/10 of an inch in june. cotton and peanuts are as dry as he's ever seen. meanwhile we have a photo

from larson farms. they got 1-1/2 last week and the corn is standing tall. we would like to hear about your farm conditions. e-mail your pictures to us. the government gets these reports all the time. some of the guys were a little surprised that they found an extra 3 billion acres. >> they added to corn and soybeans. my problem is i'm looking at a bad crop all around me and south of me its even worse. you tend to think this is what it's like. obviously there's a lot of places that had time and conditions, they planted more corn. until we had better field information, we'll have to go with those numbers. i'm going to ask guys we talk to in a minute. >> great that will be fine. because next al will move over to the market desk.

the conversation begins with mike florez and dorothy in just two minutes.

round table guest this morning on u.s. farm report, marty doherty and mike florez. the reports say one thing; and the numbers say another thing. i'm going to, brian i think i'll begin with you. you give me a summery ability how you felt about the friday morning report. >> sure, friday morning report had a very bullish report. another inventory report that had a negative tone to it. not much of a negative reaction but a negative tone. >> kind of a tone is a feeling that sort of thing. how do you feel about that, any way. >> well, from trading standpoint, if a negative report can't break the market. i would think -- the market came down today.

so i would say you will see a upward move in the market next week. i think some time has to go by for the market to be able to sustain higher prices. >> you mentioned that acreage report. the acreage report came out and we had how many more acres? >> a couple of million. >> was it out there, or where was it. >> i don't know, i think somebody threw pixie dust or something. i don't believe it. i think it'll be adjusted at times. but as a trade, what are you going to do. it is what it is. but i'm just very upset with the way those numbers came out. i don't see how they can come up with that. >> you saw that report too. that affected your customers. >> it sure did. the phantom acres that didn't show up on the march report. not only showed up on the june report, but we also saw a situation where it doesn't appear the usda took into account any of the late planted

corn that may have been abandoned or switched over to soybeans. that may have been two million acres. even if the fda threw extra acres, i think the report should have been a more neutral report. >> you think it came out bearish. of course corn lost a 1.50 in some nations. >> right. >> since we are talking about corp. the last time you were here, you mentioned corn could go to $8.50 a bushel. >> yeah, from that point in time we had a swing of about 500 million-bushels, going off of the balance sheet to on to balance sheet based on these acres. they haven't changed the acres on today's report any way. we went to a period where we were going to be, this time next year, we were going to be in very tight supply. this report changed that whole

thing. we go from 750 million-bushel to 1.5 billion. how do you adjust for that? >> so double the carry over. >> yeah, double the carry over. so i don't believe the report. but what are you going to do about it. it is what it is. >> it is what it is, so now we're going to have to deal with it. let's just talk specifics. what do we do now. there's probably some guys out there haven't done anything yet. if you haven't done anything, what do you do? >> there's many that haven't done anything. the trend is often your friend. right now the trend doesn't have a bullish perception or adage to it. the reality is, though the funds come in and continue to sell the corn market or continue to see liquidation. aggressive with some

defensive. the likelihood of a push down to $3 in futures, maybe to $2.75 is certainly a looming possibility. if this acreage number is correct and if weather continues to be conducive for crop maturity. >> those prices you mentioned get down that low. it's probably a lot less than the cost of production. that means the guy is going to be losing money out there in the farm situation. >> well i guess when people are in that situation, the last thing you want to do is sell. it's tough to advise anybody of what to do right now. because, i mean, last year you couldn't give the crop away at the end of the year either. then the market, came down what $1.00 or $1.50. i don't know how much more we have in the downside. the funds are basically neutral on corn now. they were down the line, they ended up dumping 100,000 contracts. that's what pushed the contract down. maybe you don't have the sowing pressure right now.

it's out of the market. >> we come back and talk about soybeans, we'll talk about more of what's in the market. we'll be back with more u.s. farm report in just a moment.

round table guest this week, mike florez, florez trading, marty dorothy of peterson. did i say that right? >> yes, sir. >> how do you say it. >> duherty or that's how my grandfather told me. he's an immigrant. so. >> good deal. >> we were going to talk about soybeans. boy, we really kind of told the bad news. what is the good news and what were you telling me? >> we kind of asked guys that don't have anything priced what should they do. my bias was to be defensive yet, because the trend hasn't

changed and told us other wise. everybody wants an answer to where is the market going down to. i mentioned $2.75 or in the area. but it's not going to stay there that long. from there it will fall into $4 for next year's uncertainty. >> of course we don't nope -- we don't know what the weather is going to do. >> i would assume normal weather until proven other wise. this crop is late. needs a lot of time. eastern corn belt is so wet there's some guys that really niece the moisture. it's not here yet. but i think it's safer most of the time from a marketing standpoint to not guess against mother nature. right now, the weather is good enough. >> okay good deal. mike, soybeans. >> well that's the market that seems to have the most umph

behind it. the demand is great. that's one side that's positive. we are sewing sowing a lot of grains. soybeans have great demand in japan and china. they are not backing off at all. yeah, i think you have to take a trading approach right now. i don't think you can expect to buy soybeans and take a dollar out of them in a week or so. you can buy them and take 20- cents off or 30-cents off. that's the attitude you want to have, an up and down kind of market. time has to heal this. >> we're just going to go up and down. even though we have low prices right now. a lot of guys are saying prices are going to go up and down. >> probably trading range. >> trading range. >> i'm the eternal optimist. i think grain prices, even though corn has dropped down to a $3.30 today. what was it two years ago. tw&3sdollars. we are dealing with higher levels.

i don't think we're ever going to go down to those $2 levels again. not for many many years or forever. because we have a lot of things that didn't use grain. i think you have to be optimistic in the products you produce. >> we're really, looked at agriculture markets pretty good. i'm going to shift gears a little bit here. that is with having all the outside money to come into the markets from time to time. particularly in the market. now the ftc is looking and saying our prices went to high. because of the outside money and that sort of thing. if they come in with some sort of regulation in the federal level to affect the types of trading going on. what could that do or could it do to the agriculture market. is it good or bad. any one of you? >> i don't think it matters. >> you don't think it matters? >> if they reduce the limiting on how much you can buy. >> yes. >> right now funds are actually

short wheat and their neutral on corn and long on beans. maybe it's going to limit a bigger position that you can put on. that also goes buyers and sellers. not just one. >> agreed fully. last year was an extraordinary year. extraordinary event we're going to see that over time. getting positions that long takes a long time. i think this is a reaction to something that happened a year ago. it's out there to sort of pacify those who are concerned about it. i think it has little bearing on the markets in the near future or in the next decade or two. >> we're not going to say whether you like the government relating what you do or not do. >> the government cannot be your friend in trading. >> it can't. >> no comment. >> okay thank you very much gentlemen. both for being here today. we'll be back with more u.s. farm report in just a minute.

welcome back to the u.s. farm report. the drought monitor hasn't changed a whole lot during the last week. we showed some pictures on agday. most of the area looked like a beach. very dry in the area. out west it's kind of stayed

the same as we've moved through the area. lingering into the north east for early parts of the week. you can barely see a ripple moving through the early part of the week. then another diving into the midwest by next weekend. our model is suggesting the ridge building up to the west. which would bring the heat back to your neck of the woods. here's yo monday back and you can see the cool air coming into the northern great lakes. it's not going to exactly be chilly in the southern great lakes in ohio valley. but not as hot as we typically see this time of year. back into the central plains, that will be the focus for showers and thunderstorms. a lot of these are afternoon variety pop up storms. by wednesday, that first front starts to go back as a cold front. another batch coming in with some drier air for the plains. for the great lakes, could be a

wet day for wednesday. and again, the heat starts to build out west. we're going to see that really start to move north ward. and that next front kind of cools down once again. cools things down once again for the great lakes and the northeast. scattered showers and thunderstorms along that front in the southeast. we'll check the longer range forecast coming up in our next half hour. top third ag marketing. ifou hello folks, this is mark gold. if you need help marketing your grai and livestock. give us a call. we offer one on one counseling. we don't speculate. we manage risks. if you are tired of paying acreage and management fees for marketing advise that hasn't actually helped your bottom line. give us a call. call today to get two weeks of mark's grains week. those are the best days.

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holla back. holla back. holla back. are you with your friends? that's lame. we're in a huge fight right now. x.o. what'd you dream about? me? [overlapping] is it something i did? are you on your way to the mall? i'm lonely. nude pics. send me some. [beep] text me. ways to reckon the passage of seasons. there are astonomical season determines by there are several ways to recon the passage of seasons. there are astronomical seasons that fall around the 21st ig98w september. there are meteoroligical seasons. many of us don't call it summer until the crops are planted, for example. which means, this year like

2008. my numbers and i have been cheated out of some of our summer. to be sure, we're going to tack some extra days on in september. because fall doesn't start until harvest. which will be later than normal. it's just mid-july and we just put the planter away. all this could be cured by some consecutive days of hot weather. farmers are fortunate in many ways to have this natural rhythm. at least our assembly line can't be speeded up or our project deadlines advanced at the whim of some executive decision. while we have managed to make marketing an almost 24/7 chore. once a year, a time to sow and a time to reap. as always we want to hear from you. send comments to info @ u.s. farm report or leave us an

voice mail. coming up in our next half hour, tennessee vets take care of some dangerous customers. stay with us, the second part of u.s. farm report is coming right up. ;4fl report... legislators in

washington churn out all kinds of new regulatory proposals american today on u.s. farm report. legislators turn out new regulatory proposals. and tennessee veterinarians take care of some unusually large cats. good morning and welcome to u.s. farm reports. you can tell that congress is not in when most of our news comes from washington, d.c. there are important legislative efforts on our way. many of these efforts will have to do with regulation of various sorts from financial to health. all of them eventually will

help all of us. but the problem with regulations to perceive problems. these are hard to forsee. and are one big reason why the list of rules never seems to shrink. time now for the news with al pell. al. >> thank you very much john. good morning everybody. we begin this morning with an update on immigration reform. that topic is of keen effort since many producers rely on migrant workers. the department of security announced their support of the e verify. critics say will allow employers to retain illegal workers. after months of meetings and

hearings, the health board released a list of regulations. the group is also recommending stepped up enforcement in beef plants to prevent e.coli. in addition the working group announced a new trace back response system in an effort to improve the chain of command. for its start the centers of disease control worked with states for quicker outbreak recommendations. the food and drug administration announces a new rule to help improve egg safety. the fda says egg producers with more than 3,000 hens will now be required to test for salmonella. it will also require producers to refrigerate eggs while in storage or in transit within 36 hours of being laid. more than 79,000 people get

sick each year from eating eggs contaminated by salmonella. the au says the tariff will help. the national bio diesel board says it's unnecessary decision calling it protectionist. when it comes to climate change, there is vigorous debate from all sectors on the best path to take. and it appears even some of the president obama's top administrators don't agree. during a senate hearing tuesday. epa administrator lisa jackson and steven chu have differing opinions over what impact a climate bill in the u.s. would have on global emissions. when asked by senator jim

hawthorn of oklahoma, the chief said going alone would be little, unless china would reduce emissions too. bradley says the senate finance economy would explosion climate change legislation. specifically the cap and trade aspect. >> i didn't think i would ever hear that from epa. that's been a fact we've known for a long time. and that's been one of the arguments that i've been using that we need an international agreement that includes china and india. because if the united states goes it alone, and we tax our energy more than any place else in the world, and china is not included, we're going to lose more manufacturing to china. and i think that's obviously bad for economy and bad for jobs in america. >> grassily doesn't think this legislation will move very

quickly through the senate. but when it does he expects a lot from the senate. you -- which do you think is going to affect the consumers the most. >> i think both will. that regulatory measure is going to have a huge hit. also that it's going to be structured under the fda not the usda. climate change, which is going to be a lot of changes in the climate change bill before we know. >> we are all going to be affected. a lot. >> thank you bill. >> all right. i know a lot of you that live in kansas, oklahoma and texas have seen a very hot summer. let me tell you, from the great lakes in the northeast. this has not been much of a summer at all. any time it tries to warm up. more cool air comes in. you can see the trough there

and the stream. i would call it very pleasant in the jágcñsouthern parts of t northeast. the heat continues into north texas. this front stalls out. there'll be areas of showers and thunderstorms out in the western states as well. the hit and miss storms that don't give the area much rain. it's a very weak trough moving through the middle of the country. that will be the focus for showers and thunderstorms. the great lakes down into the central mississippi valley up and down the eastern sea bourg. scattered showers and thunderstorms from the northern

plains down to the southeast. let's take a longer range view. below normal again for the great lakes to the northeast. that's been pretty typical. although it's been a pretty pleasant summer in most areas. from the southeast to most of the western states as you can see. above normal from the great lakes down into the south dakota, nebraska area. we're going to go below normal for the central and northern mississippi valley. above normal out west. precipitation, and this is a key, unfortunately below normal for much of central and south texas. above normal just along the eastern sea bourge. >> thanks mike. still ahead, we see how the researchers reach to the stars for answers to the h1n1 virus.

and exotic cats are getting attention from veterinary students. spirit of the heart land is next.

hey, guys. this is my teenage friend fred. rad! hey, pal, you want to pay attention to the road? relax, man. i got it. look, my man, if your bad driving gets me killed, you better hope you die too, or i will haunt you silly. and i'm not just gonna float over your bed like woooo. i'm going to be making a more annoying noise, like ahhhh. and instead of wearing those long white robes, i think i'll wear something more form fitting and upsetting. the other ghosts will look and be like,

"wow, we've never seen that before." about a veterinarian, most folks think about cats and dogs. of course, folks in our business think about large animal vets that treat cattle or horses. when we think about veterinarians, most folks think about cats and dogs. when you are a farmer, you think about cattle or horses. but students studying to be vets, they are looking at other patients. >> reporter: nevada is a male cougar. sedated for the moment so dr. stephanie mccain can take a blood sample to check his kidneys. >> we see a lot of kidney disease, a lot of joint problems and arthritis. and stuff like that that you

would expect an older animal to get. >> reporter: michelle jokes that she hasn't touched a cat or dog for years. uc college works with the big cat sanctuary to provide health care service. >> we usually spend two or three weeks with tiger haven, if it needs x-rays or anything more advanced. >> reporter: fourth year vet '7 today. >> just such a large collection of exotic cats. so it's a great opportunity to be exposed to lots of hands on opportunities that you don't normally see in the classroom. >> reporter: tiger haven is home to 280 big cats. a number of these animals are older and that's why the work of the vetsis so important. to maintain the overall health and quality of life for these cats. here in rural county where bamboo is planted next to honey suckle, now and then you will

hear this echo through the trees. it's true truly amazing to see all these magnificent animals next to each other. some rescued from abusive or bad situations all .óñover the country. some were malnourished, injure or diseased when they arrived here. cofounder mary lynne haven says her facility relies on the vet schools to keep these cats healthy. >> i don't know what i would do without them and their facility. their expertise. it's just been, we have the best vet care of any of the sanctuaries any where. >> reporter: these beautiful cats are nature's royalty. and with good nutrition and care they should live long happy lives here. chuck denny reporting.

>> tiger haven is a charitable nonprofit organization funded entirely through donations. you can find more at tigerhaven.org. how scientists can gather information like the h1n1 virus from out of space. stay with us.

canadian health officials seem perplexed over the source of a new flu virus that infected two hog-farm workers. but according to reuters, one thing is clear -- the virus is not according to writers, one thing is clear, the virus is not the h1n1 strain associated with more than 400 deaths worldwide. the workers apparently have a new seasonal virus. health officialdescribe it as mile. canadian food officials say they tested but found the pigs have a form of the flu but it's

different from the workers. >> while the h1n1 virus had faded from the headline, scientists are still working to stay one step ahead of it. hoping to predict where it might show up next. clark powell tells us researchers are looking toward space for a clue. >> we need to get a handle on microbes in the food chain. >> reporter: if there's something more frightening to scientists than a stubborn virus, is as easily those germs can get around. 2% of the world's population have moved to a new country. and cçf:zalthough that may not like much. >> that's over 200 million people. these infections we're talking about are global. >> reporter: and they are serious. so serious in fact, that dr. larry gobelson has started a study to find them and fight

them. over 50 scientists work on treatment for the next major outbreak. while they never know if it'll be tb or h1n1 flu they will know where to find it. using remarkable computer programs, another group of scientists at ohio state can map cases overnight. even zoom into street level to tell them who is infected. like they did with this map while tracking avian flu. >> i can tell you where they came from. >> reporter: but diagnose ing the disease is only half the battle. many diseases have evolved and are now resistant to our drugs. which is why this team is constantly looking for solutions. >> if we are not smart they will win the battle.

not humans. >> reporter: this is clark powell reporting. and the h1none may be the latest pandemic to face a threat. but it is not the first. on that note, i think we should get to tractor tales.

tractor tales comes to us from the lone star state. jim fields shows us a slightly modified 1947 farmall h. this week's tractor tales come with us from wénvthe lone state. >> this is a 1947 farm tractor, farm all. it has been used as a farm tractor. the gentlemen who had it bought it new. and i bought it from a friend of his. and they've both passed away since. they put the wide front end on it. i don't know why. a lot of guys like the wide

front end. i have another one that's a 1941h. this has a front end out of chicago. a lot of collectors like those wide front end. i have a farm 20 miles from here and i use it there. i use this one and my m. you know. if i was growing corn i would use it in the corn fields because of the wide front. there's a lot of people you can buy parts from. a lot of times we buy an old tractor, we need a part. we have one setting on our property some where with parts. we just take it out of that one if it works. it wouldn't run. the carburetor was messed up. i put a new float it. it had an old beer can in the motor and it shot up up when it fired it. at the last place i went to i

had to change. when i got it it with us just a rust bucket. those were the original tires in the back. i enjoy the tractors, take them to the shows and parades. kids enjoy seeing them. >> international harvester began using the tractor in 1973. the company only started making them in texas because they weren't sure if they would be accepted in other states. one striking feature of the church is a ained glass window that was carried by hand four miles. the church has been moved 200 yards and sawn in half at one point to enlarge it. it has been known for its traditional sweety services and

cooking. christ lutheran church will also mark their 125th anniversary. after begin in a log cabin. the new structure was built in 1903. one of its members went on to fame as the creator of the peanuts comic strips. the church is surrounded by agriculture. as always, we would love salute your church as well. stay with us, the mail bag is next.

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are more fuel efficient, produce fewer greenhouse gases, and can save you money. and when you're helping the environment, it's a nice reflection on you. smartway. because it's time america turned over a new leaf. follow the leaf. go to www.epa.gov/smartway

inside the farm report ml bag... we received a helpful correction to my remark last week about local time now for our weekly look at the mail back. the information came to us from john mcbride. i was commenting on the closure of a major rket in sue falls. john writes that closing should not be interpreted of marketing business in general. america's livestock markets annually move over 30 million head of cattle and calves from buyers to sellers. john goes on to point out the

continuing importance in viability. nonetheless, the livestock industry is concentrating. in many parts of cow country there's moving. while local markets are selling over 30 million head of cattle annually. where livestock still fits, i'm sure local markets will continue to serve them. but for many of us, specializization into cash grain only, means it's difficult to support traditional, local sales outlet.

think. feel free to contact us directly. send information to info.com. for al and mike i'm john phipps, thank you for watching agday. make sure to join us next week, we'll be working to do a lot better.