by the day. a massive farm that crosses two states is now on the market. and the agriculture department steps up efforts to help land owners rebuild after a year of devastating weather. >> united states farm report is brought to you by the enlist weed control system and by the 2012 chevy silv era do the move dependable. longest lasting full sized pick up on the road. . hello and welcome to united states farm report. we have lots to cover over the next 60 minutes. our marketing insider also join us to break down another very active week in the commodity trade. also a trip to tennessee to visit a dairy operation recognized for innovation. ? first, the headlines. morgan is at news desk.

>> thank you. a combination of severe drought in the southern plains and historicly high grain prices continue to drive hay prices higher. at this time hay is nearly $70 a ton more than a year ago. according to the recent agriculture prices report the all hay price in december was $177 a ton. that's up slightly from november but $66 higher than december 2010. at $199 a ton alfalfa hay is even higher, nearly $80 more than last year. a farm that includes acres in colorado and kansas is on the market. it wants to take advantage of strong farmland values, low interest rates and rising commodity prices. that's why the farming operation is base putting nearly 18,000 acres up for sale. it's located near burlington colorado and some of the tracks

just over the kansas state line. you may remember the name. been was a finalist for the top producers of the year award in 2010. the obama administration puts the brakes on a 1700-mile pipeline project that would stretch from alberta canada to texas. that said the white house said the oil company could reapply for a permit to build the keystone excel. a timeline to approve it was attached to a piece of tax cut legislation. the president said congressional republicans put a unreasonable deadline on the measure. the pipeline would go through montana. south dakota, nebraska and then to texas. after a year of record breaking weather disasters, the u.s.d.a. said it'll provide more money to people in 33 states. between the flooding, hurricanes and drought natural disasters impacted about 55 million acres of farmland in

2011. the agriculture secretary said the funding will be used to remove debris from water rates and farmland, restore livestock, protect eroded stream banks and restore conservation structures. those are the headlines. now back toal. >> . >> you may have snow but for many its been a dry winter and they are worried about going into spring with a soil moisture shortage. samples were taken at the research station and showed there was no water in their five foot deep soil profile. a grower in central missouri said they were digging up a stump with deep roots and found nothing but dry soil. they also said winter wheat is struggling without snow cover. and winter rains helping

improve winter forages in texas. parts of east texas had five inches of rain. the drought monitor index showed 62% of the state is still under a severe to extreme drought. while high that number was 97% in october. when we return it's back to talk market was mike flores and chip. the discussion starts in just two minutes. please stay with us.

. we have chip who is with blue [inaudible] agriculture markets, and gentlemen, we can say this about whatever but this has

been an unusual week in markets i think this week. everybody is talking [inaudible] will go down. but it came back. you can bring me up to date on how the market finished. >> it was a choppy day. finished in corn pretty good n beans kind of soft. wheaton the up upside. >> i get asked what is actually moving the markets? >> i think still the europe inissue shall the dollar drops near 130 points. that helped give us an under pin in the market. also on that break after the u.s.d.a. report we started finding export business. we are competitive in the world now and that's helping along with the drop on the dollar this week kind of put a supported floor under the market. >> you stay competitive in a world they -- that lower prices here to on the markets actually helping to. >> yeah.

we had the sharp break offer the u.s.d.a. report with the dollar dropping. we got competitive in the world market both really all three major grains, wheat is more competitive. we started doing corn business this week. china bought a few cargoes of united states beans. >> i understand china is probably not going to do much business this week because of the lunar new year. >> probably going to be quit for the next week arviso. they have become profitable on their crush margins domestic i and that could bode well for use. >> when you see the markets moving like this and you look at the technical aspects of this thing what are you looking at now? >> i'm looking at to me something that looks really positive. i'm always bullish corn. essentially we don't have any corn. i don't think we have the ability to go down and stay

down. we just had such a lack of supply. when we pull down in price -- we have the demand which is human. a year ago today it was 650 on march corn, now it's about 610. we are cheaper in price and we have according to the u.s.d.a. 283 million-bushels less of corn than a year ago. so less corn and a lower price. doesn't make sense to me. i can't understand the bearish argument. i think we will go higher. >> you think we will go higher basically on the technical aspects. >> yeah the -- that's a fundamental aspect but we have been in a trading range since october and you only want to look at that. >> are you agreeing that? i see you have a different look on your face. >> longer term. very tight stocks domesticly and the world in corn. my only problem is after this united states report, u.s.d.a. report of -- there is not going

to be much in the near term. the next four to six weeks unless we see rainfall this weekend in south america. there is not much to give us a bullish spark until we get closer to planting, talk about spring weather. i agree that longer term this thing is supportive, cash basis level is strong but my fear is the next four to six weeks may be a choppy grind where the downside might be easier to accomplish than a strong rally but like mike said that support will always be there with the demand lurking. >> i would take just the other view of that. i see the downside is limited, just because lines of basis is so strong. you can't get corn. there is no corn to be had. >> pay more -- why would that give you lower prices, if you are having a hard time buying the basis, pushing it to get the corn from the farmer why would that make the market go down. >> i agree.

the basis has been strong all year. right through harvest and seen a good harvest. >> the basis is strong. why would the prices go lower? that's unusual. >> we are looking at 201 crop, what we have and that kind thing but 2012 and i know in farmer releases their figures they raise the corn numbers and the soybean numbers. just going to be the last into 2012, that crop. >> hold that question. you are getting ready to say it but -- we will be back with more united states farm report in just a moment.

♪ grew up in a small town and when the rain would fall down ♪ ♪ i'd just stare out my window ♪

♪ dreaming of what could be and if i'd end up happy ♪ ♪ i would pray i could breakaway ♪ ♪ i'll spread my wings and i'll learn how to fly ♪ i'll do what it takes till i touch the sky ♪ ♪ i gotta make a wish, take a chance, make a change, and break away ♪ ♪ out of the darkness and into the sun ♪ ♪ i won't forget all the ones that i love ♪ ♪ i gotta take a risk, take a chance, make a change, and break away ♪

♪ i gotta take a risk, take a chance, make a change, and break away ♪ someone's gonna get away.we draw the winner of our free trip anywhere southwest . round table guests, mike i just asked you a question, set up a situation for the 2012 crop. planting a lot more acres and if we have a good crop and you are pretty bullish on this.

if we can grow twice as much corn as we did this year is that going to -- you are still bullish. >> sure if you are going to have more corn that's an issue but that's what they said about south america and look what happened there. there are so many unknowns tinamou and plant that first acre. i -- my thinking that the market will anticipate potential problems and rally ahead of it. we don't know how the crop will be. you don't know how many acres you will plant. you will plant 95 million acres. you have -- you have to see how it wraps up. >> he is making sense on that? >> yeah. agree 100%. i think the way it stands if you look at the last two weeks new crop beans have really gained on new crop corn. at the widest level we have been and 550 or under december

corn future was relikely not to plant the 94, 95 million acres that the market expects. there is a lot of give and take over the next three months. >> what should a producer do right now to be able to guarantee himself a profit? >> number one is know what that is. know where your cost of production is, your break evens at different yield assumptions. i think for the new crop the best thing is be patient and not panic even if we would go a little lower over the next six or eight weeks. >> you think we will go lower. i think we could. we are in a range like i said earlier. just not much barring some major news event or presumption of the hot dry condition that will spark this market any time soon barring a sharp drop in the dollar. outside of that i still see a lot of risk out of europe. i think we are stuck in a rain shear where it may be easier for the short term to head

lower rather than higher. >> are you talking about choppy really and flex skill all that sort of thing. as a speculator what you do surrender try to take advantage of that. >> i try to. >> you try to. >> it doesn't work but i try to. >> so from producer standpoint if you put those shoes on what would you do? >> if you are -- if it's a decision should i sell my new crop corn i would say that i would not do that because i think there is to much worry in front of you. we are at a low price now. the low end of a range. i don't see how it can drop much. i would delay any new crop sales. >> think you will get better prices. that would be my advise, wait. >> yes. >> so where are we going to go at the end of the year and you don't know? dream a little bit. we don't know what the weather will be. all those flexibilities. >> if you are coming in to the season with really low stocks,

and we have to have everything perfect again in the united states, and we are starting the season where a lot of areas don't have ideal conditions, what if something goes wrong? you go to the all time highs. we don't have any corn in storage. i think you can be dynamicly bullish. have you to much in front of you to make those decisions. i wouldn't lock in any -- not cost but i wouldn't lock in any prices on my corn boss of that. >> there are ways you can protect yourself. ask opposed to lock in a sale or something like that. some of those alternatives. >> yeah. i agree with mike. i think there is enough worry we will see bounces along the way. i think he we are toward the end of the road. it seems like the last three or four year itself you sit on your hands and do nothing the market rallies. i think there will be rallies ahead of us but producers need to take advantage of them.

one of these years the odds will kick in and we will raise a big crop if it happens to be on big acres we will drastically rebuild the stock. i think you hit the nail on the head. there is lot of strategies and tools to lock in those prices when you see those rallies and to profitable levels, put who be one, selling crop, buying calls, couple different ways that you can lock that profit in and retain upside potential. >> want to hear you both saying doing nothing is not the answer. we will be back with united states farm report in just a moment.

. welcome back to united states farm report. for this weekend. i'm mike hoffman. this has been a topsy turvy month. if you live in the north you have been fairly cold with occasional warm ups. in the south you have been

fairly warm with occasional cooldowns. that has been the business as we have moved through this year. as everything continues to move quickly from west to east. we will start with a good trough and as you can see though that doesn't extend to far south. down by the gulf of mexico you are still mild for this time of year. that will move on through new england, bit of a ridge through the great lakes, another trough across the rockies, great lakes and the northeast and in the models showing things flattening out. you notice how the lines were going southward this is very cold air up over southern canada which we didn't have back in december. every time you do get a cold front this is very cold air and that push there suggests we are heading toward a colder weather pattern next weekend and the following week. in the meantime, it's just going to be the same as its been. the storm system moving west to east. very cold in the north and

mildler to the south. on monday we actually show the cold front in to the northern gulf of mexico but it's losing steam by that point. it'll be cold into the ohio and tennessee valleys and then not as much down by the gulf of mexico, scattered showers, thunderstorms, parts of florida, rain showers up the east coast to start the week but inside new england back across the great lakes we see some areas of snow, lot of that will be lake effect snow as we head through monday in the great lakes the way it looks now on the back side that will continue to move off to the northeast. lot of areas like ohio, western pennsylvania you will start with rain and end with snow. next system out west. the pacific northwest getting rain in the valleys and along the coast but snow in the higher el vagues. let's go onto wednesday. couple of areas of low pressure moving from west to east. that's that storm coming in off the west coast as we head into monday. by wednesday this will move eastward. kind of a complex system but

could bring needed moisture president . scattered showers and thunderstorms. northern system probably with some light snow around it. high iowa, minnesota into parts of the great lakes and another system. this one looks strong coming in to the pacific northwest by friday then we can see that system with good snows across the northern plains, northern rockies, rain farther south lingering lake effect snow showers in the great lakesw. he be back in the next half hour with a longer range outlook.

john is on the road this week, . john is on the road this week but his world carries on he tackles a popular subject, income taxes. >> well the weather is declined into typical winter for much of the country with cold and snow or rain, overcast

and biting winds. a perfect time to wrestle with the income taxes. one thing that should brighten the outlook is that we seem to be winning this match with the irs. well, cheating more effectively may be a better description. the amount of oured tax that go unpaid has reached a new record high. going from 3 billion to nearly 400 in 2006. those are the latest nones we have. while the rate of skating essentially the same about 17%, a larger economy means a larger loss. nor does it appear to be a function of tax rates. we are cheating just as hard at lower rates. most of the slip age so to speak is under reporting income. one of the most likely types to be wrong is farm income. i have marveled for year that agriculture product sales were not subject to form 1099 reporting that seems to be effective in reducing these

errors. grain coops already report gray sales to take advantage of tax breaks. if i ran the irs this would be one area where i would push for more complete income reporting. however, budget cuts mean that not as many auditors will work for the irs. so tax law enforcement isn't like think to get better. cutting the deficit with an axe may prove to be more count procedure ductive than expected. counter productive. >> send e-mails to mailbag at united states farm report.com or call and leave us a voicemail. in the next half hour a competition where have you to speak fast to keep up. the second half is coming right up.

. this week on united states farm report you may not have noticed a try tip to the grocery store is more affordable. a female auction near makes a name for herself. and a dairy farmer added for his ways and welcoming personality. united states farm report brought to you by the enlist weed control system. . >> hello and welcome to united states farm report. i'm al pell. as winter returned in many parts of farm country the

thought of getting back in the field seems distant on many operations, even so we have a lot to share with you including stops in colorado, tennessee and wisconsin. all that's ahead but first let's get started the headlines. >> reporter: thank you. and hello. it may be hard to believe for anyone at the store lately but food prices fell throughout 2011. the index from the united nations shows prices peaked in february of last year. although some retreated the whole year average was the highest in more than two decades. compare to a year prices right now are down about 11%. the top is because of lower commodity prices around the world combined slowing demand and a strong dollar. bad news for the texas citrus industry. state agriculture officials say a case of citr us greening has been confirmed in the southern tip of the state.

it's a disease that can devastate a crop. it's carried by a bug called citrus fillet. it's a 140 million-dollar industry. the u.s.d.a. said it's the first confirmed case of the disease in the lone star state. and the ongoing effort to find out what is behind a decline of bees, a sciencist said a seed coating may be a factor. he has been analyzing bees found dead around hives for two years. he found the presence of certain types of insecticid section commonly used to coat seeds before planting. seed makers will cot them with talc. it helps seeds keep flowing through planters. its light and moves through the air. it can float from fields onto flowers that the bees may be on. the makers of pepsi and a

host of other well known products are looking to the dairy industry to increase revenue. while speaking at the 2012 forum this week in california a pepsi executive predicted product also play a key role in the global growth strategy. the company is look for new products to fill voids. and you may remember this from last year. john deere's prosect president secret can do where a team created a combine made of canned food. it used 308,000 cans and more than 11,000 bags of food to create the model it's the largest ever built from canned food. more than double the number of cans used by the prior record holder. that's it for news. mike half monday with the national forecast.

. >> reporter: >> and a fast moving jet stream just continues to push the storm systems quickly across the lower 48 and it's interesting this winter so far we haven't seen these troughs or ridges stay put at any one time. they just condition to ripple from west to east and that means you don't stay cold or warm for any real long period of time though it's stayed fairly mild over the past month in most of the southern states. here is the way it looks now on monday. lingering lake effect snow showers late in the day in the great lakes, for the eastern great lakes and ohio valley it'll start as rain, turn to snow for the northeast it'll be mainly rain. another system coming in out west. another ripple in the jet stream. rain and mountain snows there. the ripple in to the middle of the country moving quickly from wrist to east. we will see snow through parts of the northern plains, western great lakes, from about st. louis southward and thunderstorms down closer to gulf of mexico.

otosis it temperature starting to show out west and this one looks strong as it comes in. we will have to watch that one and that will be spreading some brit large amounts of moisture, a lot of this heavy snow, northern plains back in to the higher elevations of the rockiessa that system comes in. that first one still a trough in the east with lingering snows in the northeast, in the form of rain. let's check the temperatures for next week. this would be the very end of january, january 29th through february 4th from the great lake across the northern half of the plains, northern half to two thirds of the rockies, a colder and colder weather pattern kind of settling southward. above normal for mississippi and alabama down across most of texas and into the far southwest near normal up and down most of the eastern seaboard. lue go back and forth though. cold some days and warm others. there is the precipitation, in

the same areas we have been seeing it most of the season and this is typical la nina. temperatures haven't been typical but the moisture has been. this is -- this could be good news. i know parts of iowa and missouri have been dry. hopefully you get this above the northeast of the. drought areas southwest and texas probably below normal. nine day outlook from the great lakes to the northwest. southern plains in to the southeast and taking a look at the 90 day outlook above normal, tennessee valley in to the great lakes, below for the southern tier of states. >>

. where can you find some of the fastest talkers in the

world? look no further than the championship sponsor by the auctioneers association. ann with the denver post documents an event where history was made. >> it'll be loud, fun, it's going to be exciting, sometimes people call them hypnotizing, mesmerizing, i can't spell that soy can't use that word. tonight is the conference of the colorado auctioneers association and on the friday night of the conference we have our competition for the state championship auctioneer. >> i'm competing in the auctioneer's contest for the first time. >> competition tonight will see about 14, 15, maybe 16 people. >> excited, but i really wish

i could just calm down. >> there is not more than ten or 12% of them who are women. >> i like being a girl in a man's industry. it's -- make itself interesting. >> normally we see mostly men. with one or two women competing. >> definitely. >> this year we have at least three if not four women. >> i'm a full time student but i have been an auctioneer for four years. i like the competition. i like challenging myself. >> having them you will see two very different styles. >> mine isn't words. >> you get ha that and you get caught up in it. >> it's amazing. you wouldn't think she could do

something like that. when it comes out that speed. >> for the first time ever a female auctioneer has won the colorado auctioneer association championship. >> glad to see that a young woman that age can stick with the men and then take home the big one. >> 50 plus years of men dominating the field has ended. >> it's really an honor. especially where it's mainly men. >> one more time. $30. >> for a woman to win is a pretty big deal and him honored to be the first one. >> reporter: our thank you to ann of the denver post for this great story. to learn more about the association, head online to co auctioneers.org. we will post a link on the home page. next week we are off to pennsylvania to meet a young couple making a difference for environmental efforts on their farm and that can be hard to do

when are you a pork producer. that story next week. next we head to tennessee to meet a dairy producer not afraid to open his doors to strangers so they can see what agriculture is all about. . >> miss any of today's show? head to united states farm report.com to watch the program online. united states farm report, the spirit of the countryside.

. a tennessee dairy farmer has opened the doors to his operation to showcase american agriculture. that's's one of the reasons john harrison has been named dairy farmer of the year by the international dairy foods association and dairy today magazine. . >> reporter: across the rolling hills and greene pastures of eastern tennessee you will find sweet water valley farms tucked at the end of a blacktop drive. this little piece of paradise sits just off i-75.

today like most days they are hosting an assortment of shoppers at its cheese store where taste testers go over a buffet of 25 varieties while behind the glass. the experience continues. sweet water valley farm milks a thousand cows and farms a little more than 1200 acres. >> growing about 80% of the forage now and -- we would love to add enough land base to grow some corn and beans also. >> adding land base has been a challenge for them. earn tennessee's climate and countryside is a sought off commodity for retirees and competition for land is tough. that's one driver behind the harrison's thinking. >> we wanted to grow the business. we felt we why in an area going urban pretty fast and would be

hard to expand. it would give us just a way to grow the business. >> the growing came in adding value to the milk on hand. they opened their own cheese factory and country store but for a lifelong dairy man learning to make cheese wasn't necessarily easy. >> everything was secretive. i couldn't -- i would go to minnesota and couldn't find out anything. that's -- that's why we were determined to put our production behind glass so people could see how it's made and answer questions. >> that hands on and up front pope is what led to their next thing. >> i feel like the public doesn't know anything about what we do and we needed to do something. >> what they did is the udder story. a five thousand square foot event and educational center. >> we have these people come to the farm. if we aren't making cheese every day i felt we needed to

do something that we could see something, if they stopped got off the interstate, took the time to come to the farm i wanted to be able to see something. >> and those visitors see everything from showing how the feed is grown to milking demonstrations, to full on farm tours. there is even the occasional live birth. >> people have the fascination about seeing cows and where milk comes from and what cows all about. >> all together sweet water valley farms played host to nearly 8 5,000 visitors sharing the positive message that's modern agriculture. >> we have to do a better job of telling the public what we do. the public has a desire to know where their food comes and how it's produced i don't think we have done a good job of that. >> its part of an idea that places as much importance on the presentation as it does on the production. >> that's what we have tried to do is just lay it out.

tell people what we do and why. once you do most people are pretty understanding. >> to learn more about this award head online to idfa.org the home page of the international dairy foods association. when we come back its time for tractor tales and our country church salute. please stay with us.

. we met a tractor owner looking for a new owner for his oliver. we found this super 55 at a tractor auction even though the owner enjoyed having it in his collection he was hoping to find someone who treasured it more than he did.

this is a super 55 oliver and about the same size as a forward tractor. i have only had it a year. i bought it from a estate farmer, restored them and he passed away. relatives sold it. they call kneeing more for the raking hay and that kind of stuff. good for loaders. we had a for with allodder and then went to -- the bigger tracker and stronger loader. they get a better tractor and then look for a lower one with a power steering. a bucket full of -- in the front, pretty tough to steer them. i like the little oliver and the class was better than average. i have restored them and believe me a lot of work. most of them this had loaders on them and used little jobs, small jobs, few of them had

diesel engines. i would want another collector. you don't want to see it go back to work. not now. in all reality it won't, the most that would happen is somebody would put a motor on it which would be fine. the main thing is to keep them up. you hate to see them misused. this is better than when it was new. they never painted like this before. you like to see it stay nice. >> don't forget if you would like to watch tractor tail tales be sure to head to the website or find us on facebook. you can also down load these segments as pod casts from i- tunes. just do to the i-tunes store and search tractor tales. we only have one submission for this week's country church salute and it goes to st. paul's lutheran church in roseville ohio which is celebrating 175 areas of

ministry. it's organized in 1836. its part of the lutheran church of america. the beautiful structure is considered english gothic. it's one of the three point parish currently serving people in three counties. the pastor alex brown leads them. we want to learn about your church as well. stay bus. the mailbag is next. . >> country church salute is brought to you by farmers feeding the world. agriculture leading the way and feeding a hungry planet. learn more, give, dream huge with us.

. time for the weekly look inside the mailbag. john joins us now with that. >> a viewer in harrison tennessee is concerned about the falling number of large animal vets. i'm concerned the future blacks bleak. i don't foe what the farmer also do when the vets retired.

you aren't alone in your worries. thehe number of food animal vets need willed rise by 35% in the next five-years and we haven't graduating enough to meet the demand. most go into com panon animal work where the hours and physical demands are less. the shortage of large animals specialist social s is a threat, especially dairies and horse owners. the obvious economic result of such a shortage would be higher fees for vet work adding another cost disadvantage to small herd owners. very large live stock operations is -- and more production to spread that kosta cross. for the time being there is no quick solution. many customers will face increasingly poor service. more over salleys will have to address the distance by rising

more in under served areas. other solutions could be expanded use of vet tech knowledgists and attracting foreign trained vets. as always we want to hear from you. send comments to mailbag at united states farm report.com or you can leave us a voicemail. for all of us, thank you for watching. we hope to see you again next week for another edition of united states pardon me report. have a great weekend.

♪ grew up in a small town and when the rain would fall down ♪ ♪ i'd just stare out my window ♪ ♪ dreaming of what could be and if i'd end up happy ♪ ♪ i would pray i could breakaway ♪ ♪ i'll spread my wings and i'll learn how to fly ♪ i'll do what it takes till i touch the sky ♪ ♪ i gotta make a wish, take a chance, make a change, and break away ♪ ♪ out of the darkness and into the sun ♪ ♪ i won't forget all the ones that i love ♪ ♪ i gotta take a risk, take a chance, make a change, and break away ♪