today on u.s. farm report. the fallout continues in the ohio animal abuse case. crop progress looks solid except where it doesn't. and grain market bears are asking, did anybody get the number on that truck? >> u.s. farm report brought to you by chevy and their award- winning cars, trucks, and crossovers. hello and welcome to u.s. farm report. i'm john phipps. while the livestock industry is focused on animal rights issues confronting them other issues are emerging to complicate

their recovery for profit accident. a surprisingly strong feed grain market could squeeze mark. at the same time or byzantine system is under scrutiny. no issue gets more scrutiny. i talked about our moment in history last week. i suspect our protein sector is discovering history is no more fun to write than tots study. time for the headlines. here's al pell. >> thanks, john. the owner of an ohio dairy farm won't face charges in connection with with a video showing cows being beaten. in may an animal rights group released undercover video. investigators studied the unedited video and concluded conklin acted appropriately. a release from the prosecutors

office says mfa allowed the animals to suffer for three weeks so they could film it. the farm fired an employee who has pleaded not guilty to 12 counts. as we reported last week, the buckeye state could soon be home to a number of new animal welfare reforms after agreement was reached between the humane society and the ohio livestock standards board. reaction in farm country has been mixed. some fear the humane society is out to get animal agriculture, while others are concerned the debate could reach the federal level. >> there's some other sites out there, some blogs that are contradicting the groups that are against us saying, listen, they're against all animal agriculture. they don't want to us change the ways we're doing things, they want us to abolish animal agriculture. >> certainly this could happen at the federal level once enough states have moved. something could go through

congress and change the way we do things. that's probably more likely the way that it impact us. >> the usda is working with the world health organization to develop international standards for animal welfare. now, in an ongoing effort to better align supply with demand a dairy cooperative is moving forward saying it has accepted nearly 200 bids representing more than 34,000 cows and 653 million pounds of milk annually. last year they managed programs that pulled cows out of production. executives say another round was needed because herd numbers had leveled off. in the fields crops are progressing nicely across most of farm country. in its weekly update the ag department rates 7 1% of the corn crop and 66% of the soybean crop as good to

excellent. state with the healthiest jobs include kentucky and north dakota, crops particularly strong in oklahoma and tennessee. and for winter wheat harvest now stands at 54% complete right in line with the five- year average. and that's it forehead lines. now back to john for crop watch. for crop watch this week we begin in virginia. a grower says his corn crop is now in the hands of the insurance people. he says the stalks are so dry they're falling over. the entire state is suffering from record high temperatures and rainfall deficits. in alabama an extension agent in jackson county says their excellent crops of corn and soybeans from a few weeks ago have disappeared. they are now in survival mode due to hate and dry weather.

in wisconsin, a grower says last week was the first week since mid-may that he didn't see any rain. he's pleased with his corn crop except for a couple of lower fields. when u.s. farm report returns mike north and brian basting join al for the discussion which begins in two minutes. please stay with us. u.s. farm report guest this week brian basting, mike north. gentlemen, the government came

out with supply/demand report. we were talking about what was planted in the fields. let's bring everybody up to date on what the report said. who would like to start? >> well, i guess the net effects is we raised stocks on soybeans by 25 million bushels so a slight increase there, and we decreased the ending stocks on corn by 200 million which largely was made up of a change to the old crop, the '09-010 where they cut 125 million out, but then coming in and i creasing the amount of feed usage largely because of the test weight issue that we've been hearing and talking about so much for the last year. so the net effect is, less corn, more soybeans, and -- >> what about wheat? >> the wheat, there, too, we edged the wheat markets higher in terms of -- not the market,

excuse me, but tending stocks higher by over a million bushels, largely because of a really good crop that's coming out of the field. we sane crease on the yield side, we saw a little bit of a blip on the export side of things, but in the end raised the carry-out on wheat. so another reason a guy should be address wheat price right now. >> on tuesday, wednesday, soybean prices really went up. flat on friday but wheat was up fry dwlai. do you think? >> a lot of the groups under the heading of funds came in and decided to just buy commodities. without looking at that time supply/demand balance sheet, which mike highlighted well, we have a tremendous amount of domestic wheat, approaching 1.1 billion bush valleys wheat. when wheat was at $12 the carry- out was under 400 million

bushels, so he we've now tripled. the buying in wheat just more speculatively driven, if you will, and i think producers really want to sees this opportunity to take advantage and make some sales. >> let's stay on wheat because seems to me like, we were talking off-camera, we've got almost as much wheat as we actually have, right? >> absolutely. >> almost as much in storage as we are going grow. two-year supply. >> there's going to be a lot of conversation about storage, especially when you get into the western corn belt and start to work your way south into wheat country where there's two and three years of wheat in storage. >> some of those guys raise corn, too. go ahead. >> this year kansas has more corn acres than wheat acres. with that much wheat in storage, now a big wheat crop and the prospect of a good corn crop we could have a real conundrum with regard to storage. for the first time in 36 months

we have reduced the ending stocks worldwide on wheat r. we in a storage? by no means. we're in a glut. brian said we have almost a full year's worth of is wheat in the bins right now. these are opportunities to take advantage v. when you get a dollar rally at harvest with a great yield, you better be taking action. you better not be sitting still. >> some of those areas particular out west, seems to me like some of the marketers have been making up on a basis buck sell the wheat, you get pretty good price, but whenever you deliver it's a different story. >> absolutely. that's something that has to be mitigated, but that is a function of all the wleet we have. you cannot expect basis to tighten and cash markets to rally around higher prices when we're sitting on years of supply. it's not going to happen. >> now, is that same thing true? we're going to talk about some other things in the second segment. that same thing true with corn and beans? we thought we were going to have a lot of beans because

south america is doing it. apparently bean prices have been doing pretty good, too. >> there's good carry in the market in corn, al. i think when you look at the carry from december futures to march futures, some where in that 11, 12, 13 cent range. when you look further out, all the way out to july, some where in that hey 20s, low 30s rang. that's good carry in the market. it's not as high as wheat, but a producer looking forward to the fall in terms of a storage decision would want to look at that closely. not near as good a carry today what. the soybean market is telling the farmer to do is to sem the beerngs and if you want to remain bullish, related to demand or south american he weather, buy a call option to participate in the up side. >> that's when you get on there, and you can do this to participate on the up side. >> we'll be back with more u.s. farm report in just a moment.

gentlemen, there's some other things i want to talk about. i'm going to generally say government regulations. seems like the government is becoming more and more regulate black the farmer and producer can do, and sometimes it's a good deal, sometimes it might not be a good deal. for example, they are going to do some research now to find out whether or not we can still use atrocene, even though it was taken off, put back on, all this stuff. i wonder what that's going to do whenever the government gets involved because a guy has been successful, then they say you can't do that. comments? you're smiling. >> you're shaking your head. >> a painful sort of way. government regulation, in my opinion -- and this really kind of comes multi-fold. we've seen that recently with a

joint partnership with hsus in ohio coming in. >> animal, how are you going to take care of animal regulations. >> we've seen the atrocene issue, all sorts of groups, especially on the environmental side, or animal welfare side, a lot more costly to do business, and just -- it's become a very, very big challenge at the farm. there's a lot to keep up with already, and this just adds more to their point. how will this affect us? bottom line is over time it will likely increase the cost of our had food. that's the bottom line. >> first it will increase the cost to the farmer, a few of them will have to go out of business, or they'll associate, but eventually, and you're nodding your head when he said increase cost of food. >> good summary there, al.

i think what you start with sin crease in the cost of production, and that is transferred down the line, to increase the cost of food. the government means while. there is a tendency to overregulate in cases. the farmer, i maintain, is still the best steward of animal. >> best steward of animals because he wants them to live healthy and do good. >> land and animals. the wheel concept here is that we are all the government so whenever you think about that, we are all the government, sour part of the government. now let's compare us, then with other countries in the world who are trying to emulate us in terms of agriculture production, and they are beginning to take more advantage of our seeds and our fertility knowledge and the knowledge to come out of our universities and that sort of thing, and our equipment companies are marketing to them and that kind of thing. are we going to have more

competition for the u.s. even though our population is going to double in the next 20 years, world population? >> yeah, there will obviously be more competition. i think the best example of that is wheat production. once we move beyond this $3 to 4 price range, wheat became economically viable in a lot of different countries around the world that haven't had a very strong production history. i mean, the -- >> talking about world price now. >> talking world pricing. but you get out beyond the black sea region, you get over into the kazakhstans of the world, the muldovas, the countries that most people have never even considered, with you they're booming. they're making major strides to grow their production base. china is doing the same thing. >> i was going to say, look how much we're talking about china more. >> exactly, south america. going back to our government topic here a little bit, isn't it interesting that even in

lesser regulated environments they're still using a lot of our practices because they know that what we do is always in the best interest of our land and cattle because our profitability rests on it. you can't do a horrible job managing soil and wash it down the stream. you can't be blowing fertilizer out the end gate and hanging your boom over the water. you just can't afford to be doing that kind of stuff. that's why we have precision farming that's coming along. you cannot be wasteful. you cannot be a bad steward or you are out of business. >> quickly, the american farmer going to be able to keep up and be ahead as we have been for the last 10, 15, 20, 30, 40, all the way back? >> no question. farmers are embracing precision farming. almost every farmer i talk to is doing that at the highest level. i continue to believe the u.s. farm ser the best farmer in the world. >> not to mention we have a

much bert infrastructure, transportation and otherwise in our country to move product and inputs back and forth. >> that doesn't mean there's not some things that need to have some work done on them, but thank you both for being here. gee whiz, we could talk about this a long time. back with miern moment.

welcome back to u.s. farm report. so far this season dryness hasn't really been a big issue for most areas but it is starting to become a little more so even in areas that aren't showing even a moderate drought. we're starting to see the topsoil dry out. we're seeing dryer and drier conditions in the mid-atlantic states. we've got all that heat this week, also northern louisiana, southern portions of arkansas, parts of northeastern texas, and, of course, northern

wisconsin, the u-p of michigan. we have some dry areas out west but for this time of year it's not looking too. the jet stream is going to be basically moving from west to east across the northern tier of states. we'll start with a little bit of a trough moving through the nosh plains, then into the great lakes on tuesday, the northeast on wednesday, and our computer models suggesting the east coast should start to bake again as we head into the latter parts of next weekend. we are still going to see these little systems moving from west to east through the northern tier of he states which will keep some areas keeler. let's go day by day. on mon date looks like a nice batch of air coming into the northern plains. we'll see some showers and thunderstorms from the great lakes through the middle mississippi valley. these will be the hit-and-miss showers and thunderstorms that pop up in the afternoon in the south land. no fronts really to speak of,

so those will be mostly areas not getting a lot of rain, but again, some areas will get a little bit. as we head through the week that front kind of slows down, stalls out across oklahoma and texas. on wednesday scattered thunderstorms, a little more substantial, up in the ohio valley, another front coming into montana and north dakota with showers around those areas. that front will move into the great lakes, down toward kansas with scattered showers and thunderstorms bey the end of the week, then that first front kind of stalls out. that will be the focus for showers and thunderstorms there. longer range forecast coming up in our next half-hour. >> miss any of today's show? head to usfarmreport.com to watch the program on-line. u.s. farm report. the spirit of the countryside.

regulations, it would seem, have replaced women in that old adage can't live with them, can't live without 'em. in the past few years we have learned market don't always self-police, and the threat he of legal actions doesn't stop blunders, but we remain adamant about minimizing government interference in our lives and work. similar to tarksz they're not such a bad idea for other people. this love/hate relationship with referees will spread into other areas. the wheat market seems to be benefiting, at least from a grower perspective, from new trader programs. i wish i could talk competently about these market rules, but like many of the new regs they are not easily grasped by folks who don't deal easily with them. the larger message seems to be don't expect simple regulations

to manage complex problems. and we should remember that even supposedly open markets cannot exist without basic rules such as property rights. the case can be made for allowing the fabled invisible hand of the market to handle bad actors. but our experience with bankers, derivative traders and outright crooks is the hand is neither timely nor delicate. what's on your mind? send e-mails to info at u.s. farm report.com or call us and leave a voice mail. in our next half-hour, packs of alpacas roam the kentucky countryside. stay with us, the second half is coming right up.

today on u.s. farm report. so, what's in your food? the usda wants your advice on labels. the idea of a soda tax is bubbling up in washington. and meteorologist mike hoffman looks for relief from scorching temperatures. >> u.s. farm report brought to you by chevy and their award- winning cars, trucks, and crossovers. >> hello and welcome to u.s. farm report. i'm john phipps. food is much on our minds and in our news these days, from worries about obesity, to the growth of organic production there seems to be a certain restlessness in consumers. one idea that's going to get tested is whether consumers will make different choices when they have more information about food contents and sources. another is whether taxes on foods of questionable

nutritional benefit will change consumer minds. i think those answers will be much longer uncoming than he we expect. food preferences seem to be strongly held, and formed early. to change them we often need to change the consumers themselves. let's get started now with the headlines and al pell. >> thanks, john. the federal government is preparing to administer a new label law for restaurants and it wants your help. the law sets requirements for food sold at certain restaurants, movie theaters, bakeries, and vending machines. before, labeling was only required on a long list of packaged goods, but labels will cover everything from calories to fats to protein. the fda is gathering public comment through early september on how best to carry tout new regulations. we'll post a link on our home page, u.s. farm report.com, outlining how you can participate. also this week, another round

in the soda tax debate. the usda research shows a 20% tax hike would make a significant difference in the fight against obesity. research concluded this type of tax could reduce overweight previous lens by 5% in just one year. at this time the government reports 67% of all adults in the u.s. are overweight and a third are obese. the ag department says it was compelled to investigate after two medical think tanks suggested a tax on sweetened beverages would help com bass soaring obesity rates. that's it for news. time now for the national forecast from meteorologist mike hoffman. u.s. farm report weather brought to you by stratego funk i fungicide. >> we'll start the week with showers and thunderstorms in the middle mississippi valley

because of this weak trough. most of the activity this week is going to be across the northern tier of states with the fronts, but just because of the humidity and the heat through the southland, you are going to have at least some spotty showers and thunderstorms develop during the late afternoon and evening hours. kind of a typical summer-like weather pattern. let's go toward wednesday. that first trough moves in, and that will be the focus of showers and thunderstorms. those will stretch back along a weakening front into portions of oklahoma and texas as well. muggy weather continues along the gulf coast. another trough starts to move into montana. that will cause showers there and on into north and south dakota. by friday that trough moves into the great lakes. that will be another band of showers and thunderstorms, stretching back across the middle portions of the plains states and the portions of colorado as well. again, the hit and miss afternoon variety thunderstorms in the southeast, although there will be a stalled out front there, portions of the tennessee valley, maybe northern georgia and alabama as

well. that could focus more on the way of showers and thunderstorms. temperatures next week this will be for july 18th through 24th, you can see i don't have any areas below normal. above normal for most of the eastern seaboard, through the ohio valley, a great lakes, northern and central plains, back into the southwest as far as precipitation next week we are going to go above normal from the lower great lakes on through ohio valley, tennessee valley and portions of the southeast, below normal out west, most of the plains states near normal. as far as the 90-day outlook, above normal in the southwest, southern half of the plains, great lakes and the entire eastern seaboard. i don't see any below-normal areas there as well so looks like a good chunk of this summer is going to continue to be on the hot side. precipitation over the next 90 days, below normal tennessee over toward ohio, and toward the gulf coast and mid-atlantic below normal. some of this will feature moisture from tropical storms and hurricanes. said if you aim for

nothing, you'll hit it every time. it's master motivator zig ziegler said if you aim for nothing will you hit it every time. it is certainly not the path to success for our ultimate farm quest families. we'll see how leon and jennifer are diversing for their operation. >> reporter: leon is a man in constant motion, a former golf pro turned farmer, he grows 2,000 acres of corn, soybeans, and feeds out 500 head of cattle each year. his wife jennifer balances managing the farm finances with caring for the couple's one- year-old son lincoln. leon says marketing is one skill he hopes ultimate farm quest experts will help him take to the next level. >> marketing, we do, i guess i would say satisfactory job, by

no means do i do a tremendous amount there. any way that i can market my crop better i would look at that. >> reporter: marketing experts and pro farmer editor chip flory says leon has tremendous enthusiasm, a solid understanding of basic marketing. probably the most important thing that he we need to work on is setting some goals. what kind of a return we eastern looking for per acre. he's got the -- a real strong basic understanding of marketing. it's that risk management and that risk balance that we're going to be working on the hardest with leon. >> reporter: flory adds that he plans to work with the family to build more marketing flexibility into their cattle operation and create a more concrete vision for what their farm can become in the next 10 to 20 years. >> it is going to be a lot of fun to work with leon and throw some different ideas out to him as we go along on marketing and risk management to see which

ones he does run up the flagpole and sea if they work for him or not. >> this is wes mills reporting for u.s. farm report. >> thanks, wes. when u.s. farm report returns, we'll find out why sheep and alpacas are becoming more common in central kentucky. "spirit of the heartland" is next. - lafayette, what're you doing? - ( music playing )

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hoping to one day form the center of the fiber a group of producers are hoping to one day form the center of the fiber strin bluegrass state. jeff franklin takes us to springfield, a small townhome to a growing number of sheep and alpacas. >> they raise sheep on their farm in springfield. the campbells moved to the farm 25 years ago, with no clue what to do with the fa. >> after we got it, we've learned what to do with 329 acres. of course, first thing i did was get some sheep before we even moved here. >> and getting some sheep was the right move for campbell as she just turned that into a very profitable enterprise. campbell takes the wool from

her sheep and uses it to make all kinds of figures, like sheep. show men and nomes, abe lincoln, and even her sheep sheerer george which all the locals recognize immediately because of its spot-on likeness. she uses natural dyes from plants found on her farm to add color to the wool. >> it's such a good example to teach people about value-added -- about agri tourism. there are so many angles that we can go through here. you are bound to like one of them. >> washington county extension agent rick greenwell worked with the campbells to secure funding for the kentucky agriculture agriculture development board to renovate this 1784 home of revolutionary war general matthew walton. the house is elected on the campbells farm and gives norma jean a place to teach community

wool arts classes, from the wool of sheep, to another fiber producer, alpacas. at sunshine alpacas of kentucky and washington county are being used to develop extensive product lines. the fine ser creating products like yarn, fabrics, and this teddy bear called the tucky bear. alpaca producer sean melloy plans to roll out a high-end women's clothing line and a sock line from his fiber mill. >> most of the alpaca wearers today come from peru or out of the country what. we're trying to do here is start showing people how you can take that fiber and turn it into finished product. >> sean and his wife lori moved to kentucky from maine two years ago with the goal of

starting micro businesses based on their fiber mill, either in sewing or raising the alpacas for fiber. from the university of kentucky college of agriculture is i'm jeff franklin reporting. >> long known as incan gold, alpacas have been raised for more than 6,000 years in peru, chile, and bolivia. next week we head twoaft check out lemon ladies orchard, another ag success story unique to the golden state. up next, baxter black coffee, you don't want to miss that. black, we hear of

in this week's visit from

baxter black we hear of his affinity for toxic coffee and other digestive challenges. at the convenience store i poured a 20-ounce styrofoam cup half full of coffee, then i put it under the cappuccino chemical disexpenser and dribbled in hazelnut ammonium hydroxide, then i took am ma rete toe chloride and splashed their flavors into my cup. all the while my taste buds were leaping in a bud frenzy doing gum drop cartwheels and encourage my salivary glands to whet their paths. toxic coffee, an exquisite possession. with my admitted weakness for such an unnatural beverage you

would think i would have some understanding of my children's love for pop tarts with their filling like gritty tar on pavement. how about dried cereal bits formed in the shape of clover leaves or pinto 0 beans, bat eyes or squirrel testicles, then rolled in baby talc or graphite, not to megs tennis ball tomatoes that would not break on the bat of sammy so sarks bright red, and tastes more like carpet fiber than tomatoes. mexican mutant strawberries as flavorless as poy. it's what we've done to chick zone we can deep fry it and addicted our kids. but i digress. the ultimate toxic invention, a

fruit roll-up. a it flattened sticky hankie- size sheet of goo that reminds sple a frog's tong on the roof of an octopus mouth. the kids love it. so be it. right now, i'm sipping coffee made from fresh ground costa rican beans in a china cup with real cream, and i'm wishing it had a big squirt of pecan caramel caustic capa which i no with a ph of 2. probably not a good idea. might take the' ma'am medical right off the cup. this is baxter black from out there. >> okay, next week, baxter has the story of the fuzzy slipper. until then, check out his work on-line at baxterblack.com. up next, tractor tales features a farm-all dating back to 1930. please stay with us. i can solve difficult problems

for a fortune five hundred company. i can run a successful business. i can manage your home improvements. i can publicize your message. i can motivate your audience. i can put my military experience to work for your company. i can teach your children. i can boost your bottom line. i can add value to your workplace. i can be a loyal and productive employee. but i can't put my skills to work for your organization if i'm not given the opportunity. if you don't recognize my talents and ability, if you don't hire me, if you don't have an open mind and a workplace that's open to everyone. if you don't realize that america works best when everybody works. what can you do? what can you do? what can you do? you can remember that at work, it's what people can do, it's what people can do that matters. nearly 50 million americans have disabilities. capitalize on their talents with employment practices

that benefit everyone. learn more at whatcanyoudocampaign.org because the 1930 farmall we're tractor tales this week is a quiet one. that's because the 1930 farm- all we're about to show you has been safely secured in the museum in newton, iowa. >> this is a 1930 farm-all regular. they were made from '24 till '32. it was general row crop track to kind of the first row crop tractors that came about. this is a tractor credited with getting rid of the horses on the farm. used for all sorts of plowing, belt work. they had cultivators mounted on them. they had a two-row corn pickers that mounted on them. this tractor was designed by a gentleman named burt benjamin.

he was a graduate of iowa state university. he went on to work for international harvester, and he's the one credited with the design of this and the pto. it starts on gasoline and runs on kerosene. it's got two main roller bearings, one in front, one in back, and a crank shaft floats between them. it was rated at 9 horsepower. the size of the horse's rump was 42 or 44 inches. that determined the row size, so this was made to straddle two rows. they're slow, about 2 miles per hour on third gear. you put the front wheel down between one row and the back wheel so you could keep using your horse planter and cultivators that were set up for the horses. just change your tongue, and away you go. >> to buy this model new in 1930 would have cost you around

$850. today's country church salute goes to the andover lutheran church in andover, illinois. they marked 160 years of ministry last month. andover is the oldest town in henry county, and the church is home to the famous jenny lynn chapel, the legendary sweedish soprano provided much of the money to build the church while on a concert tour of the u.s. the community and the church were begun by swedish immigrants. in addition, we are highlighting the st. mary of the fields holy shrine in nearby hoopel. it's under the directs of the sacred heart catholic church. as always we want to learn about your hole church as well. salutes can be sent to the address on the screen. stay with us, the mailbag is next. report

mailbag....i'd like to correct a misunderstanding >> time now for a look inside the mailbag. i'd like to correct a misunderstandings about my comments last week about he mowing roadside. alice writes, i would like to challenge farmers to replace the gas guzzling trucks for a more economic truck. obvious until person has not needed to go get bags of seeds, fertilizer, or haul hey. alice, that's not quite what i said but looking back my comment was easily misconstrued. in talk about objections to

roadside mowing i compared the reel 2eu68 small amount of fuel involved to another fuel waster, how the irs treats passenger vehicles weighing less than 6,000 pounds to. deduct expenses of operating them requires keeping a written travel log. for larger vehicles the rules are much simpler, similar to a tractor. consequently when it comes time to trade more than a few farmers opt for a large-size truck when a smaller one would do just to avoid the hassle. i am not advocating smaller trucks for all farmers. what i would like to see is that decision made on the basis of what size is appropriate for the job, not tax headaches. meanwhile i have discovered a gadget that uses gps to generate a travel log automatically. i will post a link for that as well. always always we want to hear from you as well. send comments or leave us a

voice mail at 800-792-4239. for al and make i'm john phipps saying thank you for watching u.s. farm report. be sure to join us next week. we'll be working to do even better.

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