Grain News

This Week's Grain Industry News Highlights: Farm Bill Impasse, Southern Drought, Agrex/Deweese Agreement

Date Posted: November 16, 2007

by Ed Zdrojewski, Grain Journal Editor

Senate Farm Bill Debate at Impasse

In a last-minute effort to get a farm bill passed before the end of the year, U.S. Senate Majority Leader Harry Reid, D-NV, on Nov. 15 filed a cloture motion on the 2007 farm bill under debate in the Senate.

This motion would limit debate to 30 hours and provide for only a limited number of amendments to the legislation, which would be required to be germane to the farm bill itself.

Progress on the five-year legislation stalled, as Democrats accused Republicans of trying to kill the bill by proposing numerous irrelevant amendments, and Republicans accused Democrats of trying to stifle debate on the bill.

Reid told members of the media that if a cloture vote passes in the Senate, a farm bill could be on the president's desk by Christmas, but failure means that no bill would be passed before 2008.

Cloture requires a minimum of 60 out of 100 votes in the Senate.

Drought Relief from Storm System Short-Lived

A storm system that brought heavy rains to drought-stricken areas of the Southeast late in October provided short-term relief but did little to ease the long-term outlook.

With annual rainfall running 16 inches or more behind in much of George, Alabama, Tennessee, and the Carolinas, 2007 crops have been devastated, and the Atlanta, GA metro area is under severe water use restrictions.

Meteorologists with the National Oceanic and Atmospheric Administration (NOAA) were quoted Nov. 12 as saying that a La Nina climate pattern that has developed in the South Pacific is likely to persist at least through early 2008.

A La Nina often results in warmer- and dryer-than-normal conditions in the southern half of the United States.

Agrex Purchasing Grain Elevators from Deweese Agri Services

Agrex Inc., Overland Park, KS, announced an agreement Nov. 8 to purchase two grain elevators from Deweese Agri Services, Deweese, NE.

The purchase includes an 830,000-bushel elevator at Deweese and a 510,000-bushel elevator at Oak, NE, including both upright tanks and flat storage buildings.

"Over the years, Agrex and Deweese have had a very good working relationship," said Larry Jackson, Agrex vice president of operations and busienss development.

"We feel these two facillities are a natural fit with our facility at Superior (NE) and will help expand our marketing arena."

Deweese Agri Services will continue to operate a feed mill and fertilizer operations at Deweese.

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