Lawmakers from dairy states took their respective shots at Agriculture Secretary Mike Johanns over President Bush’s proposed cuts to dairy, as well as a proposed tax on milk.

The budget calls for a 3-cent-per-hundredweight tax on milk, which would cost an average-size dairy farm about $720 per year. The budget also changes how USDA sets dairy support prices in an effort to minimize payments. In addition, it proposes a 5 percent cut to all crop payments, including to the Milk Income Loss Contract program.

Source: Gazette/ Associated Press/ Frederick Frommer, March 9, 2006
Source URL: http://www.gazetteextra.com/dairyprograms030906.asp

The farming community is the target of considerable criticism about USDA farm program payments. Taxpayers, who pay less at the grocery store because of them, will toss periodic barbs at their local farmer. Other nations around the world will fire similar shots at US farm policy because of those subsidy programs. For the US taxpayer it is a policy choice of either paying on April 15 or a little throughout the year at the weekly trip to the food store. But for the other nations, most of which participate in various degrees in financial support for their agricultural programs, it is not much more than a pot and kettle name-calling episode. Just how pervasive is the practice of national support for its agricultural industry and for its consumers? Read on….

Source: Farmgate/ Stu Ellis/ University of Illinois, March 9, 20006
Source URL: http://www.farmgate.uiuc.edu/archive/2006/03/post_18.html

In a move unpopular with consumer groups and state officials, the U.S. House passed a bill earlier this week that would override 200 state food-safety laws. The measure passed 283-139 and now moves to the Senate for consideration.

Foes of the measure say the uniform food labels that would be enforced nationwide will invalidate consumer warnings over such things as mercury in fish, arsenic in bottled water, lead in ceramic tableware, and alcohol in candy.

Proponents of the measure say a standard format is better than food safety warnings and labeling rules that vary state by state.

Source: Checkbiotech/ Reuters/ Charles Abbott, March 10, 2006
Source URL: http://www.checkbiotech.org/root/index.cfm?fuseaction=newsletter&topic_id=6&subtopic_id=33&doc_id=12415

Delegates to National Farmers Union's 104th anniversary convention this week in Denver, pushed for stronger U.S. dairy policies. NFU President Tom Buis said now is not the time to jeopardize the future of American family dairy farmers.

Delegates approved the following proposals, among others:

• Reject President Bush’s FY2007 budget proposal of new taxes and reduced safety-net for dairy farmers;

• Fully restore the MILC program funding levels;

Source: National Farmers Union/ News Release, March 8, 2006
Source URL: www.nfu.org

Forecast milk production in 2006 is raised from last month as January output was larger than expected. Commercial use is to remain relatively firm but the increase in production and higher-than-expected beginning stocks are expected to result in lower forecast prices and increased commercial ending stocks.

The cheese price is forecast lower than last month, which will more than offset slightly stronger whey prices and result in a reduced Class III price. Both butter and nonfat dry milk prices are forecast lower than last month, and the Class IV price forecast is lowered to reflect this. CCC net removals of nonfat dry milk are raised slightly from last month. The forecast all milk price for 2006 is lowered to $12.75 to $13.35 per cwt.

Source: USDA/ ERS, March 10, 2006
Source URL: http://usda.mannlib.cornell.edu/reports/waobr/wasde-bb/2006/wasde432.txt

FLUID MILK:  Milk production continues to increase over most of the country. The spring flush seems to be coming earlier in the Southeast and may also last longer than normal. Where schools are starting to take spring breaks, Class I needs are generally lighter and additional volumes are diverted to manufacturing. Manufacturing milk supplies remain heavy and nearing capacity levels through most of the country. Steady to larger milk volumes are being shipped out of some states for processing. Plant capacity to handle anticipated spring peak volumes is a growing concern for more plant operators.

Source: USDA/ March 10, 2006

Cheddar Cheese prices received for US 40 pound Blocks averaged $1.18 per pound for the week ending March 4. The price per pound decreased 3.6 cents from the previous week. The price for US 500 pound Barrels adjusted to 38 percent moisture averaged $1.15 per pound, down 4.7 cents from the previous week.

Butter prices received for 25 kilogram and 68 pound boxes meeting USDA Grade AA standards averaged $1.18 per pound for the week ending March 4. The U.S. price per pound decreased 2.6 cents from the previous week.

Source: USDA/ ERS, March 10, 2006
Source URL: http://www.usda.gov/nass/PUBS/TODAYRPT/dppr1006.txt

For the week, grain and soybean bids were lower except wheat which was mixed. Wheat was pressured by rain in parts of the winter wheat region. However, there are concerns of the southern and western parts of the belt that might miss out on rain. Weekly export sales were bullish coming in at 440,800 tonnes as compared to 200,000-400,000 tonnes. Corn and soybean bids declined as pressure from spread of bird flu overseas and demand concerns triggered the losses. However, the good weekly export sales late in the week limit the downside. The Midwest received much needed rain last weekend and this week helping the subsoil moisture. A chance of more rain is in the forecast for the weekend. Spring is just around the corner and farmers are ready for another crop season. In Brazil soybean harvest is on going adding additional pressure to the market. Weekly export sales were good for corn and soybeans coming in at 1.434 million tonnes and 750,000 tonnes respectively. Wheat was 8 cents lower to 6 cents higher. Corn was 4-7 cents lower. Sorghum was 6-21 cents lower. Soybeans were 10-11 cents lower.

Source: USDA/ AMS, March 10, 2006
Source URL: http://www.ams.usda.gov/mnreports/SJ_GR851.txt

Harvest numbers on cows this week were moderate and packers were able to buy live cows lower throughout the week. With the lack of demand for lean boneless beef and the increasing offerings on alternative beef grinding materials buyers forced packers to lower prices in order to move inventories. Import boneless beef prices were weak to lower on very slow trading. Retail demand was light and food service demand was light to moderate at best. Consumer demand was light because of an abundance of lower priced alternative protein sources being offered on the market. Cow striploins were lower, with all other items firm to higher on moderate demand and offerings.
  
Lean boneless beef 92-94% 6.00 to 8.00 lower; 90% 7.00 to 12.00 lower; 85% 1.00 to 2.00 lower; 81% not established; 75% generally steady; 73% not established; 65% steady to 3.00 higher. 100% lean inside rounds and eye of round weak; outside rounds, flats/eyes and S.P.B. steady and striploins higher.

The Cutter cow carcass gross cut out value for Thursday, March 9, 2006 was estimated at 112.59 per cwt, dn 4.01 from last Friday.

Source: USDA/ AMS, March 10, 2006
Source URL: http://www.ams.usda.gov/mnreports/NW_LS850.txt

The objective of this study was to identify factors affecting variation in conception rate to first artificial inseminations (AT) (CR: number of pregnant cows on D80-100/inseminated cows) and the incidence of embryonic/foetal loss (LEM) between 21 and 80 days of pregnancy (number of cows non-pregnant on D80-100/pregnant on D21) in 44 low fertility dairy herds of the west-central region of France.

The absence of a relationship between estimated genetic index and LEM in spite of its effect on CR indicates that estimated genetic merit has a greater effect on early embryonic loss or fertilisation failure than on later stages of embryo development.

Source: Genetic and environmental factors influencing first service conception rate and late embryonic/foetal mortality in low fertility dairy herds. Animal Reproduction Science 91 (2-Jan): 31-44, 2006. Grimard, B.; Freret, S.; Chevallier, A.; Pinto, A.; et al.