| In the January 5, 2012, Issue: |
| By John Pocock, Corn & Soybean Digest |
Farmers in the Midwest may want to pray for more balmy water temperatures off Peru’s equatorial coast. Colder-than-normal seas in this region indicate that a La Niña weather event is still stewing that could negatively alter rainfall and temperature patterns elsewhere, including the U.S. Corn Belt – similar to what occurred during summer 2011.
“The dry-weather bias across the Midwest from August through September last year was, in part, a function of La Niña,” says Drew Lerner, meteorologist and owner, World Weather Inc. “La Niña wasn’t solely responsible for the drought in Indiana and Illinois during early summer last year. However, late in summer, during August and September, La Niña reasserted itself and the drought in Indiana and Illinois spread to other, immediately neighboring states.”
In 2011, spring started out cool and wet in Indiana, with planting delays occurring during April and May, says Shaun Casteel, Purdue University Extension agronomist. “Then, during summer, we experienced drought conditions and a lot of heat stress,” says Casteel. “How the crop performed really came down to how much rain your farm received and when it occurred. In northeastern and southern Indiana, it was fairly common for soybean yields ... |
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| By Richard Brock, Corn & Soybean Digest columnist |
Both corn and soybean futures have remained in weather-market mode to start 2012, but the crop concerns may be getting overblown at this point with much of Brazil still looking at favorable production prospects.
The markets have been focused on hot, dry conditions in Argentina and southern Brazil, which have stressed crops there over the past couple of weeks. The moisture situation is now critical for Argentina’s corn crop and is becoming critical for the soybean crop as well.
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| By Karen McMahon, Farm Industry News |
Christmas should have been good for corn and soybean farmers in the Midwest. Recent figures from Illinois indicate that the average income on grain farms will likely be more than $200,000 for 2011. High corn and soybean prices have pushed incomes to these levels.
University of Illinois economist Gary Schnitkey presented the latest Illinois farm income figures at the recent Illinois Farm Economics Summit. The figures were obtained from grain farms enrolled in Illinois Farm Business Farm Management (FBFM).
From 2001 to 2006, grain farm incomes in Illinois averaged just $66,000 a year, Schnitkey said. Then a “golden age” began when incomes rose to an average $177,000 per farm for 2006 through 2010. The 2011 average crop income will likely average more than $200,000. |
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| By Kent Thiesse, Corn & Soybean Digest columnist |
As we look ahead to 2012, crop revenues are likely to remain strong, though possibly not as high as 2011 revenue levels. However, rising crop input costs and land rental rates could reduce profit potential and add more risk to 2012 crop production. The profit margins in the livestock sector look improved for 2012, but could also get quite tight if feed costs increase during the next 12 months.
The short-term operating credit needs for agriculture are likely to increase in the coming year, given the increases in farm input expenses and land rental rates for 2012. Credit availability for agriculture should remain good for farm businesses that are on a solid financial base; however, credit could get tighter for farm businesses that are in a “higher-risk” financial position.
Following are some financial strategies … |
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| By Liz Morrison, Corn & Soybean Digest |
For a new view of crop production, try rising above it all.
Aerial images of fields are useful tools for detecting crop variations and equipment problems that are hard to see from the ground, says Tom Oswald, a Cleghorn, IA, farmer who’s used aerial imagery for several years.
From a bird’s eye view, you can spot nitrogen (N) deficiencies, poor irrigation-water distribution, drainage problems and uneven seeding or fertilizer application. Geo-referenced aerial photos can show storm damage, soil compaction, disease infestations and even marauding wildlife. Aerial images are also helpful for finding old tile lines or soil variations.
The view from 1,000 ft. up offers “a different perspective,” Oswald says, one that can have … |
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Very few Corn Belt farmers are unaware that 74 acres of northwestern Iowa farmland reached the $20,000/acre mark recently, with one farmer purchasing the land from an out-of-state owner. It was the second occasion in a short period of time that Sioux County, IA, farmland established a new record for land values. But what is driving those values?
As land prices push higher every week, growing concerns are expressed that the values will not hold and land prices will collapse into an economic meltdown for rural communities. They point to the early 1980s as an example. Common to every discussion are questions about what is pushing prices higher and whether those prices are … |
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| Source: United Soybean Board |
More than 7 billion people inhabit planet Earth, and about 2 billion more will join within 40 years, according to the United Nations Population Division. While many decision makers express concern about sustaining the population, often they forget to ask an important question: Are U.S. farmers ready to produce the food needed to feed the growing population?
The United Soybean Board (USB) and soybean checkoff has responded with a resounding ‘yes,’ by funding soybean production research designed to help U.S. farmers grow as much as possible with as few resources needed. |
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The USDA announced it has deregulated the biotech trait, MON 87705, in Monsanto's Vistive Gold soybeans. The soybeans produce soybean oil with increased levels of monounsaturated fat while lowering saturated fat.
“With the availability of Vistive Gold soybeans, farmers will soon be able to deliver an economical and sustainable source of nutritionally improved soybean oil to consumers and food companies,” said Joe Cornelius, Monsanto global technology lead for food quality traits. |
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| Source: National Biodiesel Board |
The National Biodiesel Board (NBB) expressed support for the EPA's final rule establishing U.S. renewable fuel requirements for 2012 and called on the Obama administration to act quickly in completing a 2013 rule that maintains the EPA's recommended volume increases for Biomass-based Diesel.
The 2012 rule raises the Biomass-based Diesel program to 1 billion gallons, up from 800 million gallons this year. According to the latest EPA figures, the biodiesel industry had produced some 908 million gallons through the end of November, exceeding the 2011 requirement with one month of production remaining. |
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| Source: Renewable Fuels Association |
A judge in Federal District Court in Fresno, California, has sided with America's ethanol industry in ruling that the State of California's Low Carbon Fuel Standard (LCFS) is unconstitutional. Judge Lawrence J. O'Neill agreed with the arguments that the LCFS is in violation of the Commerce Clause the U.S. Constitution.
In a joint statement, RFA President and CEO Bob Dinneen and Growth Energy CEO Tom Buis said: “The state of California overreached in creating its LCFS by making it unconstitutionally punitive for farmers and ethanol producers outside of the state's border. With this ruling, it is our hope that the California regulators will come back to the table to work on a thoughtful, fair, and ultimately achievable strategy for improving our environment by incenting the growth and evolution of American renewable fuels.” |
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| Source: Center for Rural Affairs |
USDA's National Resources Conservation Service (NRCS) recently announced that the deadline for producer applications for the Conservation Stewardship Program (CSP) will be Jan. 13, 2012.
While CSP is a continuous sign-up program and producers can apply to enroll at any time of the year, NRCS applies a cut-off date for applications to be considered during a particular fiscal year. Once the cut-off date is past, producers may continue to apply for the program, but they will not be considered for entry until the spring of the following year – in this case, spring 2013. In order to enroll in 2012 applications must be filed by Jan. 13. |
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| RECENT VIDEOS | Current Strength In Agriculture ‘Not A Flash In The Pan,’ USDA Analyst Says
Some farmers have been pinching themselves because of the high commodity prices they’ve experienced this year. Are those prices a one-time thing or part of a long-term trend? USDA’s Michael Dwyer says the current prosperity could be here to stay unless it gets derailed by a recession in Europe.
A Second Dose Of La Niña?
If you liked the weather in 2011, you’re probably going to love the weather for the next few months. Elwynn Taylor, climatology specialist with Iowa State University, says the phenomenon known as La Niña is recovering in strength and will likely be a factor in the nation’s weather in 2012. He discussed the impact La Niña could have on different parts of the country and next year’s corn yields in an interview during Iowa State’s Integrated Crop Management Conference in Ames, IA.
Created Wetlands Help Reduce Nitrogen, Phosphorus Escapes
The hypoxia, or “dead zone,” in the Gulf of Mexico is one of those issues that seems to go on and off the radar of environmental activists. But farmers and government officials like Iowa Agriculture Secretary Bill Northey are continuing to work on the problem. Northey talked about those efforts following a presentation at annual Integrated Crop Management Conference at Iowa State University.
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| FROM THE EDITOR | La Niña Challenge For Corn Following Corn?
With the possibility of another La Niña weather pattern lingering into 2012, farmers in the Upper Midwest may be facing another hot, dry summer, similar to 2011 that could bring about disappointing results for some corn and soybean growers, according to Drew Lerner, World Weather Inc., owner and meteorologist. Lerner notes that corn is often impacted first by La Niña, but its effect is also a function of when planting occurs.
“The later corn is planted, the higher the potential for problems during a La Niña summer if the prevailing weather pattern is dry,” says Lerner. “Early planted corn can sometimes avoid a serious problem with La Niña, but the impact then becomes a function of the prevailing weather pattern and soil moisture in the spring.”
If hot, dry weather reigns this summer, Illinois farmers who grow corn following corn may be facing their third bad production year in a row. Yields over the last two cropping seasons ...
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