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Additional CFAP 1 Payments and Futures Market Update

By Josh Maples
 
On Wednesday, March 24th, USDA announced updates to the Coronavirus Food Assistance Program (or CFAP) and these updates directly affect cattle producers. For background, there were two rounds of CFAP during 2020 that provided direct payments agricultural producers including cattle producers (you can find previous newsletters on CFAP 1 and CFAP 2 here and here).
 
With the latest updates, previous applicants will receive additional payments for inventory submitted on their CFAP 1 applications. The additional payment rates are shown in the table above. USDA is implementing an increase in CFAP 1 payment rates based on the number of cattle in inventory between April 16, 2020 to May 14, 2020. Cattle producers with approved CFAP 1 applications will automatically receive these payments.
 
Additionally, USDA will reopen acceptance of new and modified CFAP 2 applications on April 5, 2021. The application period for CFAP 2 previously ended on December 11, 2020. This reopening likely won’t affect the many producers who already submitted and received CFAP 2 payments. However, if you did not submit a CFAP 2 application, this will be another chance to do so. The program is advantageous to cattle producers. The payment rate is $55 per head for a producer’s owned inventory of eligible beef cattle (excluding breeding stock) on a date selected by the producer from April 16, 2020, through August 31, 2020. More information is available from USDA by clicking here.
 
Futures Market Update
 
Trading of CME feeder cattle futures contracts pushed prices higher last week after declines two weeks ago. The May 2021 contract started last week around $145. Increases each day last week and in trading today pushed the contract price above $152 which is the highest level seen for that particular contract month and year.
 
Similar strength occurred in the fall contracts with many topping $160 per cwt today. For context, this is the first time any feeder cattle futures contract has closed above $160 since April 2019 when the fall contracts traded above $160 for a few weeks. Prior to that, you’d have to go back to 2017 to find a daily closing price above $160.
 
There remains optimism for cattle markets this year. As Kenny wrote a few weeks ago, the strong fall feeder contract prices suggest a relatively attractive price forecast for heavy feeders this fall and more aggressive bidding on calves to be placed in grazing programs this spring. High feed prices remain a point of concern and cattle markets will be paying attention to corn crop progress this year. The annual Prospective Plantings report will be released this week on March 31.
Source : osu.edu

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The 15-Year Bet Behind Every New Variety

Video: The 15-Year Bet Behind Every New Variety!



Canada is trying to decide how much agricultural research capacity it can afford to lose. Brian Rossnagel believes the better question is whether the country can afford to rebuild it.

The longtime barley and oat breeder makes the case with a simple fact about his profession: the consequences of today’s decisions may not become visible for 10 or 15 years.

“Pick the right parents. That’s the biggest thing,” Rossnagel says. “If you pick the wrong parents, you’re not going to get anywhere—and you don’t know that until 10 years, 15 years later.”

That warning carries particular weight as Agriculture and Agri-Food Canada moves to reduce spending and streamline parts of its science operations. The department’s 2026–27 plan anticipates the loss of approximately 665 positions by 2028–29 and says some research will be reduced where capacity exists in academia or industry. AAFC says the changes will make its science operations more cost-effective over the long term.

For Canada’s seed industry, Rossnagel’s career illustrates what is at stake.

This fall, the retired University of Saskatchewan breeder will be inducted into the Canadian Agricultural Hall of Fame. During his 35-year career at the Crop Development Centre, he helped develop more than 100 barley and oat varieties, including CDC Austenson—one of Western Canada’s most widely grown feed barleys. His induction recognizes not only those varieties, but the collaboration and research system that made them possible.

Rossnagel is quick to emphasize that none of it was the work of one person.

“The first thing I thought about was all the other people who contributed to whatever success I and my program had over the years,” he says. “We know that it’s not an individual who does this. It’s a group—a team.”

That team extends well beyond the breeder whose name appears beside a variety. It includes technicians, pathologists, quality specialists, statisticians, regional testing sites, seed growers and industry partners. It also includes the breeders who came before and those who will carry the germplasm forward.

CDC Fraser barley, for example, moved through three breeding careers. Its parents came from Brian Harvey’s program. Rossnagel advanced the material after Harvey retired, and Aaron Beattie later guided it through registration and release.

That kind of handoff is normal in plant breeding. The person who makes the original cross may never see the resulting variety reach farmers.

It also explains why lost research capacity cannot simply be switched back on when budgets improve.

“If you shut it off, it’s very, very difficult—and particularly costly—to start it up again,” Rossnagel says. “If you have to start from scratch, it’s going to be at least 10 years before anybody notices whether you’re getting anything done or not.”

The concern is not simply how many experimental lines Canada can process. Modern equipment, statistical tools and genetic technologies allow today’s breeding programs to evaluate tens of thousands of lines—far more than Rossnagel could handle when he entered the field in the early 1970s.

But efficiency and automation do not generate every idea.

“If you pare back down, and instead of having six or seven individual scientists concentrating on wheat breeding, you go down and say three people could handle all this, well, that’s half the ideas gone,” he says. “Particularly if you happen to lose the three people who had the really neat and innovative ideas, boy, that’s a problem.”

It is a timely distinction for Canadian agriculture. Consolidating programs may preserve the volume of material moving through a system, at least initially. It may not preserve the diversity of thinking, regional knowledge or willingness to pursue unconventional crosses.

That regional knowledge matters because Canadian agriculture is not one uniform production environment. A variety suited to southern Alberta may face different disease, moisture and maturity pressures than one grown in Manitoba, Ontario or Atlantic Canada.

“Agriculture is applied biology,” Rossnagel says. “Biology, all around the Earth, moves from the poles to the equator. It does not move from Newfoundland to B.C. like politics do.”