the most dependable longest lasting full sized pick ups on the road. >> hello and welcome to united states farm report. the drama of the drought has just been exceeded the attention span for much of america even as producers still experiencing worsening damage. from my part of the world the an anticipation of the after rest is closer to what you may expect for the upcoming root canal than a yearly payday. one neighbor said he was going to harvest 24 hours a day this year. when asked why he would want to he said he wanted to make sure he got a truck load a day. it doesn't help you have to admire the spirit. time fort headlines. >> thank you. hello. farmland value still remains strong despite the drought.

the federal reserve bank of chicago and kansas city issued the results of its most recent certify very this week. bankers in the kansas city reserve say crop land and ranch land values continue to post strong gains over year ago levels but the rate of increase showed during the second quarter. the land value gains were 3% over the past few months while those irrigated nonirrigated jumped 25% higher than the same time last year. the reserve bank of chicago is that represents five states iowa to michigan shows a 15% increase in year over year land values. land owner mike walston said though the pace is slowing, it's still a dynamic market. the. >> march. >> we have seen soft sails but others have been very strong.

there was a new record last week 15, 6hundred an acre and it was a large number of acres. it wasn't who, it was over a hundred and over 13,000 in indiana which is the hardest hit stage. those are the two hardest hit that you are setting record highs for. said crop insurance is a supporting factor and thinks lapped prices will continue to rise. with everybody watching the drought, profarmers yearly midwest crop tour will be one to watch closely. in its 20th year they run from nebraska to ohio. be sure to join us next week. corn production is down, peanut production is having a big year. u.s.d.a. pegged the crop at 5.3 billion pounds up 46% from last year.

69% of the united states peanut crop is good to excellent condition. u.s.d.a. said record high yields are expected in georgia and florida. those are the headlines, now back to john for crop watch. >> illinois farm where this year's corn crop is crop watch this week. john of manhattan illinois sent us this photograph. one dismal corner of his drought stricken fields. the four ears on top are from last year's crop. this year he says he will get about 45 years. the last rain was june 5th. he said barly and winter wheat took a beating. from north carolina, showers helped pastures and

soybeans. while some corn harvest is underway most fields need more weeks to dry down. when we come back al takes over to talk market. it all gets going in just two minutes. please stay with us.

. round table guest. we are daron, richard brock, brock associates and which of you know what happened on friday at the close or do we know when the market closes anymore? >> i think beans were up 20- cents. they went home 20-cents higher. wheat about 14 higher corn unchanged. >> corn has been trading even, seems like all week. up or down. >> interesting. >> from eight dollars. >> interesting look at the

last fine weeks. between $7.95 and $8.15. i don't think we have been out of that range. with all the bullish news and crop report and the markets just going alongsideways which i find unusual in this market. >> is that because we don't know whether the demand is hurt yet or what the yield will be. what's the reason or both of them? >> probably a combination. the yield keeps going down and down and down. almost all the reports this past week from central illinois, worse than anybody expected. you know the reality is i think what the market is saying at eight dollars we probably are cut back corn demand. at $16 we are not cutting back soybean demand. i think it's a big defense there. i don't think we are rationing beans. >> i will skip both of them for a minute and go to you and

talk about wheat because prices have been going up but we have international news causing that. >> yeah. news on friday talking about russia and ukraine talking about maybe export restrictions, also inventories tightening in australia and wheat has been drugga mainly by corn. we have a lucrative supply state and once corn had a story in june with the drought it's drug wheat along. now it's gaining some of its own story. its being used for feed and things tightening up around the world. >> a lot of talk about of course a lot of soybeans after wheat harvest because wheat harvest is early and i don't know how beans will do. i'm thinking now and i saw -- a report the other day, now is the time to plant wheat because wheat is up and corn will come off early this year. is that going to happen out there? >> i don't think we will see a lot of that. it'll be hard to compete with corn and soybeans and we are

finding the same thing. a lot of cotton producers if they have switched to corn they aren't wanting to come back. we have switched to more corn. i think we will see wheats up worldwide but not up in the united states. maybe -- he has a different --. >> i don't disagree. i think the farmers want to plant more corn and soybeans, soybeans will be hard to ration as richard had said and i think will are be a demand for the acres to be there. the other thing is will there be enough moisture. we will get a good base price. being set right now. i just don't know if we will get a lot more acres in wheat. >> how about the individual producer out there? now, we have had pretty good prices the last couple years and the yield won't be there but -- half the yield at twice the price almost comes out the same so are producers in that bad of shape?

>> corn? >> crop. crop producers. i'm not talking at livestock. we will talk about that the next half. >> grain producers not in bad shape. granted, if you are in an area where you lot of the crop, if you don't have good crop insurance you won't have a very goodyear. if you had crop insurance, had revenue insurance, maybe not a great year even at these prices but, after the last two years, this is one that most people can weather and so i don't think we will see a lot of financial pressure and those that had a crop are just having a heyday. probably some of the biggest financial stress in some will be producer who are very aggressive and forward cash contracting and now don't have the grain to fill the contracts. that creates issues which this is a -- the year the good example in what producers in the last three or four years have back away from using futures and options. they don't like it.

this is a goodyear to use them. like last week of may we were 80% priced on 2012 crop corn, on june 4th we brought it all back. if you have futures position you can do that. if you have a cash contract it's hard. >> when we come back we will talk act the livestock producer. not the commercial livestock, the farm. when we return with more.

. guest here, i promised to talk about livestock, mainly talked about dairy, beef, hogs and chickens, there are other livestock. i guess the question i'm asking and the question i hear in the national news, talks about the fact the food prices, meat will go through the roof because the producers have to have and pay hog prices to get -- the food for those animals, we of course wind of putting in the store.

is that really the case or what's the situation and -- second thing is -- can the producer, produces the items stay in business. >> i think the big thing is the meat prices, dairy prices go up, we will have a harder time rationing corn. if there is more in ethanol, hard to ration corn through that ethanol if they are printing black ink they will keep using grinding, feeding corn. the u.s.d.a. has cut two hundred billion off the supply side. demand is still out stripping supply and that's --. >> picking corn right now. >> talking corn. >> if -- as longs you have demand out stripping the supply, prices have to go higher to ration it. i think it's going to be done on the backs of the livestock feeder more than anything else. >> that's right. if milk prices, beef and pork keep going higher, you aren't

going to ration it fast enough. i guess i don't think that will happen. i think we have enough livestock operator that aren't covered aggressively enough that he this are going to see red ink for a while and i think we will see cut backs, cut backs in the dairy and cut backs in chicken, much less in pork, i think the pork industry is fairly well covered going in and it's just my gut instinct that the chicken wasn't as heavyly covered and the beef industry can get by. feed cattle, you aren't going to feed it rouhage to chicken and hog. you know we will -- not see the expansion. we are looking at higher meat prices, probably for three, four years. >> i wouldn't disagree with you. i don't think meat prices go up and keep us using corn. we have to have stress son

someone's balance sheet to quit using corn because we have a lot to ration. beans are a different story. >> yeah. beans are different. i don't think we start rationing demand there. i think we still are using beans. china hasn't backed away. they want our beans. >> the bean -- they aren't as tied. beans aren't as tied to livestock. . >> no they aren't. going back to corn. one of the things a lot of people are worried about and a lot of news, about whether or not there could be just a huge cut back in the ethanol industry. i don't see that happening. i don't see -- even if you cut the mandate on ethanol. >> report from purdue last week. >> to make it work and you know once the -- once the blenders have their rations put together, the blending rates -- it's very difficult to change that. so, you know i think we have cut the ethanol industry quite a bit. i think beyond this point it's -- i don't think you cut it much more.

>> down to about four and a half billion. maybe down to 4-2 but how much more can you go in exports, probably in --. >> okay. next question. we have profarmers out and a crop tour going on and they do that every year to come up with what they think will statement the corn yield after they walk through the fields. we don't know yet. they are just starting. you guys think we will have more corn or they will find more or less? >> i think it'll be less. i don't -- in particularly where they are starting, starting in ohio, end up in minnesota. we have cut those yields back quite a bit. i think at this point to estimate yields more for entertainment than fact. we already know we have a huge problem. you know it's -- how much worse can it get? >> i think it's going to be misleading. they will go count and look at volume and we know the volume

is less because of the speed in which it matured but the density is less. early test rates 49 to 51 pounds though we have smaller kernals they don't weigh as much and that will be hard to measure. we will find when the combine rolls. >> we will find out when the combines roll. back with more in a moment.

. cindy joining us, we got relief in the eastern corn belt. i mowed my yard after nine weeks. up incredible. >> still not good in the west. >> no. its been a drastic difference in rainfall from east to west. it's starts to tell a picture of who has had the rain and who hasn't. we have seen improvement here and it doesn't look that much

better when you look at the map. that's where we have seen the improvement from the rains offer the past few weeks. for the west into parts of month many and kansas and oklahoma and nebraska we have not seen very much improvement and the picture isn't good. what really tells the story of what we have been seeing in the past few weeks, is the drought outlook. this is much different from what we were seeing a week or two ago. some of the areas seeing the beneficial rains, looking like we will see that improvement continuing and that is great news but very bad news for a lot of people, missouri through much of the central and southern plains, even out through the west because it looks like that drought is expected to persist or get stronger. we really have to get the rain further to the west so that everybody can benefit but it doesn't look like that will be a pattern any time soon. let's look at the pattern for the jet stream over the

next week. a trough in monday, and that will keep cooler temperatures in much of the great lakes and in to the northeast. we will still see a ridge in the nation's midsection that will keep it warm there and then another trough across the northern tier because temperatures will remain closer to normal if not on the cool side. we are still expecting to see pretty good heat, especially out in the plains state. all right as we take a look at the front we head through the week. the exiting cold front we were see that drought john beneficial rain. we had a stationary front over the gulf coast states that. will bring the chances for thunderstormsw. he have another system moving in to the northwest and that will move across the country as we head through the week. here is what it looks like on wednesday. that low pressure system. chance for showers and maybe thunder as we get into montana and then heading down toward the four corners area, nation's

middlesex into the central corn belt. another chance for showers and thunderstorms there. we get into friday and then will see nah cold front bring in the more showers and thunderstorms in to the eastern corn belt. we will have more weather in the next half hour. stay tuned. >>

. the word the perfect storm has been way over used lately. i won't go there today but the political weather potential brewing over the next farm bill comes close to that. the last farm bills have not been slam dunk was serious opposition mounted from opponents. this year the critics can demonstrate how well agriculture has been doing. record farm profits, record prices, things have been good

down on the farm. wait, what about the drought. even that may not provoke as much sympathy as we think. as the vast majority of crop farmers -- this in some cases will actually mean high erin come than they expected this spring. after the huge under writing losses, insurance based program cost projections will increase watch. as far the happenless livestock sector, farm bills never really worried about them any way. there is a money problem or lack of it, budget hawks more and determined. the old method by sweetening the pot not an option and compromise is for sissies. even political leanings count procedure ductive. farmers overwhelmingly oppose youro called socialist president but the administration is their best

hope of passing the farm bill. we have a bad, not good storm approaching. next week, i will explain why i think we shouldn't even worry about it. let's know what you think. e-mail to mailbag at united states farm bag and leave us a e-mail. next half hour a state that is not the biggest story of the summer. the second half is coming up.

. today ground brief beef prices set a new record. abandoned spaces and willing hands help urban gardening take off and we visit one of the bright spots for corn production. >> united states farm report. farm report, i'm john phipps. the food versus fuel debate is escalating to

the food verses fuel debate is escalating to intense levels, it's no longer limited to just oil state politicians, the livestock sector has decided to fight back more strongly as what they see as unfair manipulation. we will cover this ongoing conflict in upcoming weeks. one ken consequence seems to be stronger values. we are dividing into subsectors. this is not necessarily bad but it is one step closer to a nasty family fight. tine with the headlines. >> thank you. consumers are starting to pay more for their favorite cut of meat. higher prices at the meat counter. according to data from the bureau of lay bar to thes the

average price per pound hit $3.09 in july. that's the highest ever. the bls has been tracking the numbers since 1984. ground beef was $1.29 a pound to start that year. the u.s.d.a. announced it'll buy $170 million of pork, chicken and catfish from those struggling with the drought. it'll be used for federal nutrition help programs. the u.s.d.a. said this is part of the emergency surplus removal program that lets u.s.d.a. buy meat and chicken products to help farmers and ranchers during natural disasters. they say this is on top of what it normally buys each year. the growing appetite for greek yogurt stirring new york to step up and help producers meet the demand. the new york governor said that

the state is taking new steps to help dairy farmers increase size including changing the current cap from 100 head to 300. since 2000 the number of processing plants has doubled. over the past six years the am of milk used has gone from 150 million-pounds to 1.2 billion. much of that increase has come from the growing greek yogurt trend. no its been a mild hurricane season so far in the united states but no it could change. the weather appearance has raised the predictions of the hurricane season for the atlantic. after initially calling for nine to 15 named storms they expect 12 to 17 before the season ends in november. they also increased the number of major hurricanes saying they are increasing the likelihood of the above normal season because storm wind patterns and warmer than normal sea surface temperatures are no place in

the atlantic. the yearly farm progress show is just around the corner and we invite you to join us as we take the show on the road to iowa. it's set for tuesday august 28th at the agriculture co exhibit lot. we will talk markets with a panel of veterans. let us know how many tickets you need by e-mailing mailbag at united states farm report.com or call us at 574- 284-3159. john we talked about yogurt and the growing trend. i. a fab of it. >> i have a longstanding rule i don't eat food that start was a funny letter, that includes kal experience yogurt but my grandchildren have been raised on the stuff so i can see the market expanding. thank you. let's head to cindy and check out the weather. >> we have been seeing

comfortable area cross much of the eastern united states over the weekend. that will continue as we start across the week. we will see a ridge over much of the western united states. we will see that heat continuing there as far as the rain, much of the eastern seaboard getting a chance for showers and thunderstorms, we will see that activity along the gulf coast states and that moisture will bring chances for showers and storms in the four corners area as well. by wednesday we will continue to see that ridge into the western united states, still below normal temperatures, in the northeast, we will mara cross the country and that will bring with us showers and storms. the cold front out to the west by friday. the atlantic into the eastern corn belt and we will get a dip in the jet stream that may bring relief to some folks in

the central corn belt as well. for the week we are expecting to see cooler than normal temperatures because of that dip in the jet stream. for much of the great lakes and this to the northeast but that heat remains in parts of the plains. as we take a look at the temperature -- the precipitation for the next week going to be on the wet side for much of the eastern half of the country, that is where we have been getting the rain. we need the rain. more people with the drought -- we are looking at below normal precipitation for a good piece of the western united states. as we take a look, little further into the future, we are going to see the 30 day temperatures, because we have seen this shift in the pattern. we will continue to see the chance for below normal temperatures in the great lakes in to the northeast, little on the warm side into the southern plains up into the northwest and that is something we have been seeing across most of the areas. as we look at that

precipitation, here is what the picture looks like. it's not a good one. in those drought areas because we will continue to seat same pattern moving across much of the plain states no carrierring0 . you don't get into drought overnight you won't get out overnight. >> thank you. >> spirit of the heard land is next.

. according to the un's latest food and agriculture organization report, production needs to increase by 60% in the next 40 years to meet rising demand for foot. that's a tall order and one that has denver city dwellers pitching in. ann of the denver post introduces us to the urban farmers. >> it's as close as it can get. >> -- right by the -- convention center. >> we are at the but bear farm downtown. we have -- started about month and kay havings. it was all grass fields so the father was just wasted.

we cut all the grass down and we built some raised beds and went on from there. the convention center they will use it for their catering. >> feeding thousands and thousands of guests every month. the kitchen is two hundred yard from here sot chef will hopefully come out and harvest and use all of this. >> we will be out here picking. the staff is asking me when is it going to be ready, when can we start picking? get out of that heat, into this heat. >> don't you think this is great? this farm called the blue bear farm. it'll be one of the largest urban gardens in this country. it's projected to produce over 2,000 pounds of fresh fruits and vegetables in the first year. >> a through z. you name it you have it. those are tomatoes. yellow -- pears. >> peppers, onions.

>> roasting the chillies. green chiley. >> you can get up to -- we have two of them here. hopefully 100 pounds of honey. >> i can't wait to incorporate all the fresh herbs. >> i already ate one. >> just to be included in something of this meaning, being right downtown and -- it's great. i can't tell you. >> u.s.d.a. says there are now about 7500 in the united states. next week we will head to the missouri ozarks where copper stills are still cook corn mash for moonshine but it's legal. that's next week on spirit of the heart land. up next we will visit one of the few states able to produce a good corn crop this year. we need every bushel. we will be right back.

. drought watch brought to you by zomatic by lindsey. visit lindsey advantage.com. >> topping our drought watch the impact on the dairy industry. u.s.d.a. reduced its milk production forecast for both 2012 and 2013. saying the forecast for higher feed prices is expected to put pressure on producer return. it'll also encourage a rapid decline in numbers. the latest drought monitor shows a slight reduction in the area of all categories of drought but the areas suffering the most got worse. in missouri for example the area in exceptional drought increased to 35% up from 14% the previous week. 63% of kansas is under exceptional drought. a 25 point jump. while much of the corn belt is

in severe drought bun midwest state has escaped most of the damage this summer and that's minnesota. the number four state in corn production. michelle surveys the one bright spot. >> most of the corn belt has been experiencing one of the worst droughts in united states history here crop conditions have been some of the best in the nation. >> i think we are sitting in a good spot in minnesota. there are other areas that are hurting and -- we are going to produce a crop. certainly, compared to the united states average we are are above average. >> as a result -- it overcame some of the heat. combined with the early planting there will be bumper yields. >> good germ nation. it came up. we had rain since then. we will see pretty good yields over 200-bushels. >> i would feel comfortable at 165, 170 maybe. i would be surprised to get

above that. >> i'm hoping for average to a little above. with prices where they are i think we will be fine. >> the unexception is southwest minnesota. >> seeing -- 30, 40% loss on yield from average and that's -- that's tough. >> the corn is also maturing fast and many is dented which will mean early harvest. >> they think it'll be mature by september 10th. it's coming on fast. >> it's ahead of normal. two weeks, we are two weeks ahead of normal which helps us on the test i.e. while he thinks the average yield will be down it'll be above the national trend line. >> it'll be 145. >> while it is harder so tempt soybeans it looks like timely rains will help add to some of the yield potential. >> the soybeans look outstanding. we have great potential to have a great crop but we need more

rain. we still have potential of that 60-bushel gain. >> beans could be average or maybe a little above if we continue to keep grains coming forward. >> farmers in minnesota feel fortunate to get a good crop considering the drought that's gripping the rest of the country. >> u.s.d.a. lowered the average corn yield in the biggest corn producing state by 30 to 40-bushels an acre. up next tractor tales and the country church salute. please stay with us.

al pell rejoins us now. we're off to the pacific northwest for tractor tales. . >> john this classic tractor in washington state, really doesn't get much work but the

owner sure loves to show it off. >> the 1937aos john deere. this is -- number 132 of the first year model. it was an orchard tractor for over eastern washington or wherever they had -- apple orchards or whatever. when they went out of business over in eastern washington guys from bainbridge bought it, he was going to do some logging with it. he decided that the front end was to light sew parked it and i found it later over there on the island and took it home and started to restore it. a long time to restore. when i found there were only 800 made and this was number 132, made it a very popular or

real antique. we got a threshing -- lyndon, every year august. goes there and thought about taking to down to california but gas prices maybe stopped that. i'm the only one in -- the area that has one that's politely restored there. are a few others here but nobody has them restored. i'm -- going to a show and it's the only one there. kind of a popular item. i work through the john deere store for 37 years. >> don't forget you can find tractor tales online at united states farm report.com or on facebook. the segments can be down loaded as pod casts. no today's country church salute goes to nazaeetl in trail minnesota. it's just east of grand forks. founded in 1906 it was made up of mainly norgewian settlers.

they moved in to a log church until 1924 when a new church was built. it and little oak lutheran joined in the 50s and since then other small churches have joined them as well. our thank you to mary who has been playing organ there for about 50 years. as always we want to learn about your home church. salutes can be sent to the address on the screen. stay with us. the mailbag is next.

us - the mailbag is next.

time now for our weekly look . time for the weekly look inside the farm report mailbag. roger pearce thinks i'm wimping out when the subject of climate change comes up. how can you not disassemble balance warming? farmers need to prepare for heat and drought as a normal condition or start supporting efforts to reduce co2 emissions. i go totman who goes to his doctor and says it hurts when i do this, the doctor say don't do that. most farmers disagree about the existence after importance of global warming. more importantly deem it more politics rather than science. when i talk about my belief in the consequences of green house gases on the farms, i brace for a separate of angry response -- spate of angry response was

cherry picked data or questionable research. i don't think a lot of mind's have changed. as for the consequences we don't have much choice. any reduction in ghc will help farmers in the next century but our fate is already decided. the rapid switch from coal to natural gas for electric power generation has decreased our co2 emissions to a 20 year low. for the corn belt, climate change presents two major problems i think. longer and more frequent droughts, larger and more frequent rain events. i'm preparing for both. we can talk more about climate change and probably will. but farmer opinion, probably isn't going to reverse itself any time soon. as always we want to hear from you. send comments to mailbag at united states farm report.com or leave us a voicemail. for all of us, thank you for

watch withing united states farm report. be sure to join us again next week. we will work to do even better. . >> united states farm report produced and