>> hello and welcome to us farm report. i'm al pell and poor john vets. just when we think the drought has bottomed out we have new government data that further reminds us just how precious and welcome a good summer rain would be. by far in not bad in the heart of the indiana drought. now we did get some rain this week, it's just a fraction of what the parched field name. time now for the headlines. >> tom vilsack designated 76 additional counties and six drought impacted states as drought affected areas this week. so far nearly 31 counties and to restate that that declaration. it continues to weather in the.

the monitor now shows every state has a small amount of abnormally dry conditions or worse. the red color indicates there is an extreme drought. while some rainfall in the last week is still way behind the average rainfall. as far as crops it was a three- point decline. we saw another big drop in corn. and that's another five-point decline. a fourth estate has now been added to the list with single digits or guilt. and, along with indiana, kentucky and missouri. the corn crop would be called excellent this week and a 7% is good. there's a new call to a limit the amount of corn in the

nation's fuel supply. and under the renewable fuel standards to the size of the corn crop. poultry as well as livestock producers are feeling the effects of higher feed costs associated with the drought. and to help livestock producers a usda is making additional changes to the conservation program. this secretary bill vilsack says they are making further adjustments. any currency listed by the us drought monitor has been abnormally dry areas or worse with now emergency -- qualify for emergency use. pay and grading will be allowed with the local primary nesting season has passed. those are the headlines, now we go to crop watch.

>> hogwarts begins in union county kentucky in the northwest corner near indiana. a former farmer there said his corn has had it. he says soybean bwon't make 10 bushels unless they get blamed soon but keep the faith. and in northwest alabama a farmer says his corn crop started out great. he had good rain on june the 11th of stolen nation was beginning. but they haven't had rain for three weeks and 100 plus temperatures every day. and in montana we country, winter we harvest is ahead of the average pace. as of monday 11% was cut. it's usually just starting. -- called how to crop good to excellent. when the us farm report returns, it's time to talk

markets. stay with us.

>> are guests here on roundtable today, it's just you and i today tommy which is fun because now i can open up and asking the questions that i always like to find out about you. you are a speculator, you are not a producer. even though you did have a farm and you're not living on a farm now, you don't have a thousand bushels of corn growing out here that you have to protect. so how do you make your decisions on what you do? >> one of the things, when i need farmers, i tell them i'm the lucky one. i'm the one that can decide to be one a thousand bushels of corn, and my heart goes out to the producer this year, someone who is waiting for hoping for

rain. i have the ability to get in and out of the market. i have to be very careful and realize that the producer just grows onecap per year and when they make marketing decisions or talk about selling some corn out or protecting some downside, they only grow one crop and it takes a whole year to do that. so although i enjoy talking to the producers i have to make sure that my timeframe doesn't get confused with theirs. >> there are a lot of things that would cause you to be protected. this year is because it's so dry, but another year you might look at what happens in another country. >> their crops are getting smaller, and so as a global trader or someone who treats greens 21 hours per day now,

receive news headlines come out and if not all about america. while we are struggling here there's also talk about the monsoon season in india affecting crops like rice and those particular types of crops to grow there. so the united states will be looking at south america whether pretty soon. obviously what you notice most is right outside your door of your farm, but you have to realize that the big picture and is other people trying to produce grain also. >> we talked about this information, that information has always been there but you didn't have access to it. >> while some of the farmers, facebook came out with earnings, and the discussion came out, how many people are on a conventional computer. well it's not uncommon to see

up front with his 68 or 72 years old talking to you on an iphone. those aren't typically the people he sees talking to you, but is typically their son or daughter but it's a whole new world out there. we spoke off-camera about when it rains, how i can tell it's raining when people tweak. people would have to take drought 12. and then you go on a pro forma crop tour and you meet these people, and that's exciting also. certification has changed. >> you talked about indications, but not everything you get that way is always accurate, is it? >> sure. you have to know your source. one guy on twitter, something horrible had happened. he was arrested for hitting someone on the road, hit and

run drinking and driving. so all of a sudden you see people start saying, this isn't the guy i thought it was. so when you see these people on twitter, you can be anything you want to be on facebook and twitter. and sometimes i stay on twitter, i'd love to come to your farm and people say, stop on by. >> when we come back we will talk about real agriculture markets when we coback.

>> on friday, or economics updated forecast for this year's dwindling crops. for soybeans the analytical firm says it expects savings down one and a half from the forecast taking production to 1.3

billion. as far as corn, that's down nearly 9 bushels from its previous forecast. that put production at 11 and a half billion bushels. according to our partners, a small crop will put a squeeze on the demand letter. >> now it's prices have gone high enough on the new contract reports are corn export numbers that low, with problems in russia and ukraine and kazakhstan, have we seen high enough prices from going to force our corn exports low? >> probably not at this point in time, it's kind of a crapshoot in terms of when we see the demand destruction have been because it happened after-the-fact. but probably not what they do best answer. >> so does tony have an opportunity of what's involved in agriculture? and of course we depend a lot on the estimates that depend on

people other than the government and guesses would be my best judgment at this point in time. but how important is this international market dealing with them and? >> well a few years ago cheney used to sell corn and then it switched from where china went to a net exporter occurred to a net importer. it's hard to get information out of china. they don't let people like me communicate with twitter and facebook. but they say they're crop is okay there, we will see. sometimes people travel to china and the rest of the world needs grains also ended the scramble to see what's out there, not only in our country but in their country as well. >> they tell me that they don't always demand, and maybe there are other factors in there. are we in a demand structure

rather than supplying? >> this week in exports we had a negative export number in corn which is something to see more of. we had a good beating number and a good week number. so they might find other things to use instead of corn. the word is out that america doesn't have much corn. certain companies are importing from brazil and there was also talk of brazil importing the point that they have left. so that will affect the price. we have massive demand destruction which will help us prices but in one year or 18 months from now we will trade at a much lower priced assuming that somewhere in the world will grow a couple of good crops. >> well i heard that sure for high prices is high prices. so we will probably get back to where it's difficult to plan

and make money. >> that's what i'm afraid of and the part that i speak to, that's their fear as well. if they grow eight or $9 corn, next year they might have to sell four or $5 corn. >> from the standpoint of speculative, you have to plant all of these acres at all the inputs and is kind of thing. what are some things that you have to look out for? >> as a traitor or producer? >> well as a producer, you have to maybe lose your fear. an lot of producers are afraid to use futures. so after the psg financial debacle, a lot of farmers could have used upside calls and they didn't have them and they were afraid to use the futures

market. >> but just because the futures market went bad on some it's still a tool that you could use to work? yes. you can use the futures market to your advantage especially in a year like this. >> you have to be able to make decisions clean and clear. >> i would think so. there is a great wit and traders. they are good at what they do and they like to buy low and sell high. >> and that's the way to make money. we've had great company here and we'll be back with more in just a

welcome the us army port. i'm meteorologist mike hoffman. this has to be one of the most sickening weather maps you

could see. it's the drought monitor and it's getting worse and worse. the bright red basically from the ohio river valley all the way through utah is an extreme drought. now the next bubble up is exceptional. and then from the boot hill in missouri's two southwestern indiana. and many parts of georgia and alabama. it's gotten much worse, and we have had some rain from the lower great lakes but because the drought monitor takes a while to change it looks bad in these areas. but it's still very dry down below. we continue to see, it's a big

rotating upper level storm system and hudson bay sending down some energy and you can see how it intensifies next week for a while and minimizes for a while that more energy will be diving into that as we head into the next weekend. and it looks like for much of the rest of the summer the highest heat will be out west with little inroads of cooler air coming into the great lakes. we checked things out as we head through day by day this week. basically a stationary front from west to east. but the carolinas bacterium brassica and kansas, and of long and especially north of that, a good chance of some areas of thunderstorms, the hit and miss for a further two the

south and southeast. corporation wednesday, the storm system starts off in the western plains and moves along a stationary front, so the wettest area is probably the east coast. probably those areas in the west and southwest. jars of thunderstorms along that, the same thing in the south east and southwest. back in the next half-hour with a longer range forecast.

john is off this week - taking a break from what >> john is off this week taking a break from what has become a stressful season on the farm. like most farmers in the midwest, john is suffering from drought on the brain. >> many of you viewers are tragically young so you don't have those warm memories of 80,

83 droughts that ensued. so let me give you some tips on what's happening to your brain and what will help your behaviors match the situation you are in. first, get up early, 4:30 or five. this is not that big of a deal because most of you probably aren't sleeping well anyway because of the drought. get up early because it never looks better than it does at five or 6:00 and trust me at 4:00 in the afternoon it will not look good at all. so if you have to do anything, do it between five and 6:00 a.m. didn't go in and have lunch. if you don't have an appetite it's probably because of your anxiety. don't worry about that either, take credit for that as an example of self-control and just tell everyone you are on a diet. don't drive around to share stories about how bad it is.

any competition you will get into about it being awful, you will lose. and spend the afternoon after lunch inside in a dark place with your computer because you are way behind on the computer. you have stuff you haven't read, you have an inbox that's full and accounts you haven't brought up to date. take some time to catch up on your reading. and by that i need in a dark room with your buck falling asleep. do not emerge from your house until after the shade has completely invoked her backyard and only then is it safe to come back outside and let your brain explains what's really going on. what we have going on here is a situation similar to what we saw in those old commercials about drugs. remember the two eggs in the frying pan?

this is your brain on drugs. this is what your brain looks like on drought. >> send us your mail at us army port dcom. coming up, baxter black talks about surviving a season. stay with us, the second half of us farm report is coming right up. coming up on us

farm report... the drought of 2012 chips away at healthy rural coming up on us farm report, the drought of 2012 chips away at the healthy rural economies. find out where women rule the ag world. and we know its desert dry in texas, but our camels necessary? >> hello and welcome to us farm

report. the last time the census was conducted, they found striking differences in within that world of farm. that's an increase of 19%, and why not text many of the market analyst to appear on this show tell me that women are better at making marketing decisions. it appears the trend of women as principal operators will continue in the next generation. flight details in a moment that the top story is the lingering drought. let's get started with headlines. >> delivering midwest drought is having an impact on main street in farm country. each month great university economist ernie got assembled the report based on surveys of bankers and attend state regions of the great plains and corn belt. he says the july index plunged to its lowest level in two

years adhesive slowdown in prices and sales of farm equipment. he said just of the region benefited from very healthy farming over the past few years he's now detecting economic reversal for world areas. the mighty mississippi is also struggling with the drought, a far cry from five years ago. farmers were dealing with the tens of thousands of inches of farmland. the river in memphis is now at the 6 feet lower than the highest reading taken during last year's flood. the court says it's working to keep the river open. the number of young women entering college to study agriculture far surpasses the number of men. the usda got a moment at 70. the study looked at him all the data from 2004 through 2011.

the 2004 men outnumbered women by more than 1400. in 2011, women had the majority by 2900. the tech department says the trend corresponds with the overall rise in wounded arm operators. how do you celebrate your birthday? with a cake. and in the buckeye state the cake is made with butter and lots of it. each year they unveil a butter sculpture and this year the american dairy association is paying tribute to columbus and selected a team in which the dairy group looks for something noncontroversial and the sox optimism. >> inside the butter cooler you will find a six-foot tall birthday cake larger than life. the unique thing about the cake is it's adorned with various landmarks from columbus. >> the artist used 1900 pounds

of butter. the fair runs through mid- august. >> that's it for news. now we have mike hoffman was the forecast. >> that just came in the upper atmosphere for most of the summer has been well into the northern plains, even southern canada from time to time and going eastward. even then we are seeing these vocational props developing, even though they are weak troughs. keeping things lately cooler, keeping the heat away and pressing it into the southwest. it doesn't help into the plains states for the southeast because he just continues in those areas. most of the moisture this coming weekend the far southeast, although there is a

stationary front which might increase there, and the far southwest, will this be the afternoon thunderstorms that pop up and develop? there is a closer area to the jet stream which will cause showers and thunderstorms from the upper midwest or the ohio valley and by wednesday the wettest area maybe the mid atlantic of the system that subway and the trough deepens a little bit for a day or two they are into the east. then it's just hit and miss variety through the plains, and in the afternoon and a variety of the monsoon type storms into the northwest. by friday, the trough into the northwest and that will cause charts and thunderstorms with cool fronts across the great lakes into the northern plains and again just to hit and miss variety of southeast and southwest. was go further out. for next week temperatures above normal, for the nation's capital and all the way back across most of the plains states into montana and idaho as you can

see. or maybe through the great lakes looks normal and below normal from south texas, all the way along the fringes of arizona and new mexico and the west coast as you can see. precipitation next week looks to be above normal, from the northern plains to the lower great lakes, ohio valley and the southeast. people with normal from arkansas through texas and back into parts of colorado, or eastern colorado. also below normal from the pacific southwest. there is a good chunk of the country. only below normal out west and a look at precipitation over the next 90 days from pennsylvania to the gulf coast. above normal in the heart of the country and below normal for most of the southern plains. below normal for the southern

plains. raising cattle,

there's much more than beef in the lone-star state. in fact, look close enough and you can find camels dotting >> water or grazing cattle, there is much more than the lone star state. in fact, but close enough and you can find camel spotting the texas landscape. as mrs. smith tells us in this report from the texas farm bureau, dry weather and make these voters feel right at home. >> car is often slow down when it passed the family farm but not to get a look at crops or cattle, they rubberneck to see the camels to call the place home. though the lawn along with his wife trish raises camels and operate the texas camel corps. doug and his family traveled

the state and present educational presentations to schoolchildren, fairs and expositions. he was first exposed to camels while working part-time at a zoo in nashville. >> i was interested in working with an eloquence that i didn't have that opportunity. so camels were the next best thing and i fell in love with it immediately. >> it took only a short time before he was back in texas raising his own. now he dedicates his research to a short time in the army would camels were used as pack animals. >> i get incredible pleasure saying the story. >> these camels stick out in central texas, but they don't seem to mind because they have all the comforts of home and they get plenty of trouble. these camels are more like pets than beasts of burden as the miles and miles of texas.

each year they camel tours in the area. they camel is in some ways representative of the middle eastern culture but only as the horse is to texas. >> i know plenty of people who don't own horses and perhaps have never ridden a horse, and the same allegory is true across the middle east. >> his son ride shotgun for some excursions. >> i've always wanted to run my own show and have a zoo of crazy animals. >> that's how camels say hello. >> it's ideal for the camels and me, because if i don't camels can't live like a month without water but they can go a long time. >> like many texas farm and ranch operations, if a family

affair. he not only shares his fondness for history and more with this token that puts it high on his priority list. >> if you are standing here talking to a traditional stockman, they would answer the question of the same way. this is my livelihood and it's my best interest to take the best care that i can up my animals. >> bob struggled with drought but he was unable to sell off stock leaving him with no option but to buy high-priced hay. as far as future plans to leave the cable business to his children, he said the decision is up to them. >> if the kids are smart, they will run the other direction. if you want to take it over, that's great, but the animals will always be part of the family. >> and here is a camels back. they can drink 40 gallons of water in just one sitting.

next week we are headed to northwest iowa to be a fellow scrap of choice with asparagus. and when we come back, baxter black checks in from viewers on a ranch. please stay with

as a large animal veterinarian, baxter black faces some unique >> as a large animal veterinarian, baxter black aces have unique challenges, especially during the fall run, his busiest time of

year. >> i was writing tends for horses last year and it was early in october and the run had just begun. it was buying calves like crazy because the price was on the rise and you could see his pupils for the glitter in his eyes. he bought big old druggie winners that soaked up by wrist like a sponge. he brought termites and junkies that have been around the world and hungry auction refugees that stuffed their cheeks like squirrels. he bought growers off of wheat grass, i don't pastor cats, he brought roping steers and cutting goals, the have-nots and the house. he bought heifers that were backing up, raised on with the spruce and sage, some that waited to 50 and were legal drinking age. others were spectating ones on the day before they broke when the boss comes up and he stops

and lit a smoke, took a times and shot a maalox and blew his nose and spoke right out. yes son, this is what beating cattle is all about. it was several days before i saw him after that, because all hell broke lose the next morning and i was in up to my heart. it was more than just an isolated outbreak in the yard, and a good luck we had going was completely gone. catastrophic comes to mind, like a hurricane, a bad divorce were to take into point. chicken little should have been there. every cowboy wrote and doctored, hardly getting any rest. i've do we earned our wages, kissed her one day occupy, and working sex until midnight eating supper on the fly.

and we have all got back to normal, except the boss, who is now confined. he's been checked into a clinic where they put in every year to recover and rejuvenate and let his conscience clear. sort of jiffy lube for managers who have lost our sense of place, where they get their eyes cleared and their memory erased. this is baxter black from out there. >> baxter joins us again in two weeks. up next, time for tractor deals and our country church salute. we will be right tractor is a

classic from case. the tractor

worked for the same family for a number of years welcome back. this was tractor is a classic case. the truck to work with the same family from a number of years until it was put up for auction. fortunately for the owner was able to track it down and bring it back home. >> the data have farmed with this tractor back in the 1950's and 60's. they were always proud of it because that was the one tractor they said they never got stuck in the field with. so that was their heavy tillage tractor that they would use a lot in the winter. after my dad died and his dad died they have a bond sale and we were able to track it down and bring it back. surprisingly it doesn't fit in quite as well with our 450-

horsepower tractors. and i was going to take it down the road somewhere and i decided that the ride was brutal and i decided you had to be a man to drive these tractors. and of course we couldn't readily find a duplicate suicide it off and had it put in a furnace and have the cracks we welded and repression the motor but the rest of the tractor was pretty sound. we gave it a coat of paint and we were ready to go. >> take a look at these tractors. bob says that one on the left -- the one on the right is a formal i've succeed purchased on the day bob was born in 63.

today's country church salute takes us to rock west virginia where members of the non- grove baptist church are celebrating their 70 fifth anniversary. the net at 1937 of the local schoolhouse to organize the church. the reverend was named to lead the congregation. edward parker donated the land where the church was to be built and still stands today. our thanks to arnold parker for sharing this story. we also want to say hello to plymouth congregational church in sedgwick kansas. they were our church salute in mid may. plymouth congregational was established in april 1872. and as always we would like to learn about your home church as well. salutes could be sent to your address on the screen.

time now for our weekly look inside the farm report mailbag...john received a letter about drought in-the-news. as always, we >> time now for our mailbag. tom received a letter about dropping the news. >> the viewer in texas cometh on drug coverage. you folks reported about the texas drought of 2011 however not with the fervor of the drop of this year. jim, guilty as charged. i'm sure i'm a little more concerned when the problem is

outside my door but there are some differences between these two events. the 2011 drought was certainly historically severe and only partial relief has been seen since it's peak. but it was signed to a much smaller portion of the nation. this event is approaching all- time records for coverage and severity. this is also threatening our largest and most valuable crop, corn. bailout of global supply of soybeans is on the verge of disappearing altogether. the current drought will undoubtedly provide some data to speculate how effective this policy might be. states like iowa and missouri are in play politically. all these factors make the 2012 drop a story that crowds out other news even though the effect on farmers and ranchers is exactly the same as last year. thank you for watching, and for your feedback. your point is well taken.

as always, we want to hear from you. send comments to mailbag at us farm report.com or leave us a voicemail. i'm al pell, thanks for joining us. we hope to see you again next weekend, have a great week.