Page 3 - Oct12020
P. 3

The Midwest Cattleman · October 1, 2020 · P3

                    October 1, 2020   Volume 26   No. 9

           2020 FALL CATTLE MARKET OUTLOOK:                                   UP TO $14 BILLION IN ROUND TWO CFAP
                   HOPEFUL BUT BE PREPARED                                    TO FARMERS, RANCHERS AND GROWERS
                   By Jason Bradley, Agricultural Economics Consultant                               By Sonja Begemann
                          I feel like I can safely say that the markets       Last week President Trump along with USDA Secretary
                       in 2020 have been a little off. It’s like we’ve  Sonny Perdue announced a second round of Coronavirus Food
                       been on an insane roller coaster ride, with cat- Assistance Program (CFAP) will be distributed. Farmers im-
                       tle prices going up and down, bouncing around  pacted by economic fallout from COVID-19 will be eligible to
                       all over the place, leaving us with no option  receive funds from the up to $14 billion allocated for assis-
                       but to hold tight while we ride the markets  tance.
                       out.  The October feeder cattle contract has           Signup for CFAP 2 began September 21, 2020 and continues
                       traded as high as $157 in January and as low  through Dec. 11, 2020. Funds are being made available from
      as $113 in April. That’s a $350 per head swing in the span of  the Commodity Credit Cor-
      about 12 weeks. Definitely                                            poration (CCC) Charter Act
      not what we’re used to.                                               and CARES Act to support
      PRICES ARE  LOOKING                                                   row crop, livestock, special-
      HOPEFUL                                                               ty crop, dairy, aquaculture
         However,  where  does                                              and other commodities.
      that leave us today?  As                                                If you’re interested in
      of this writing,  Aug. 12,                                            applying for CFAP 2, do so
                                                                            at your local Farm Service
      2020, that same October
      contract was traded at                                                Agency (FSA) county office.
                                                                            USDA said it incorporat-
      $150, which shows some
      good news and optimism                                                ed improvements in this
                                                                                                                            continued on page 14
                                                      continued on page 10
                                                                               HOURS-OF-SERVICE WAIVER EXTENDED
         COVID-19 COMES WITH SILVER LININGS                                    COVID-19 emergency declaration extended through year’s end
                     FOR THE BEEF INDUSTRY

                                 By Jager Robinson                                                                        The Federal Motor
                                                       As the COVID-19                                                 Carrier  Safety Ad-
                                                    pandemic  reached                                                  nounced it is extend-
                                                    its fifth full month                                               ing its COVID-19
                                                    of  activity  in  the                                              emergency      declara-
                                                    U.S. over the sum-                                                 tion,  which  suspends
                                                    mer, several agri-                                                 hours of service reg-
                                                    cultural economists                                                ulations for certain
                                                    have        gathered                                               haulers, through Dec.
                                                    enough data to look                                                31.
                                                    at full trends of the                                                 The      declaration
                                                    globe’s largest glob-   was issued following President Trump’s declaration of nation-
                                                    al pandemic since       al emergency in March. It has been extended several times
                                                    1918.                   and was most recently set to expire Sept. 14. The suspension
         Jayson Lusk, the head of the Department of Agricultural            of Parts 390 through 399 of the Federal Motor Carrier Safety
      Economics at Purdue University, was the first speaker part            Regulations applies to the transportation of the following:
      of the Pasture to Plate webinar series put on by the South
      Dakota Farm Bureau.   Lusk covered the cattle and beef sup-                                                           continued on page 14
      ply chain over the three-month period of rapid growth and
      decline.                                                                                             Coming Sales-38
         “There has been a lot of confusion on the causes and driv-
      ers of the disruptors we’ve seen,” he said.                                                          Life is Simple-5
         The cattle market demand and supply shocks could be out-                                          Market Report-8
      lined by several major events, starting with the closure of the                                      Agribusiness
      country. As restaurants closed, demand for beef plummeted.                                           Directory-36
      At the same time, demand for grocery store meat skyrocket-

                                                      continued on page 12
   1   2   3   4   5   6   7   8