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Logan
Hawkes
04/05/06
Crop News Weekly
April has arrived and once again the Easter
season is upon us - a little later this year than last. Regardless, it's
a busy time on the farm and chances are good you're having trouble
finding the time to keep up with the news. But it's a busy time in the
news world as well and there's a lot of developing issues and stories
you probably need to know. Let's get you briefed on the latest.
In the spotlight this week: with all the talk about immigration reform
floating around Washington these days, I was wondering when someone
would wake up to the impact some of the suggested reform would have on
U.S. agriculture. Apparently someone is finally speaking out. The
Chairman of the Senate Agriculture Committee says the agricultural guest
worker program language reported out by the Senate Judiciary Committee
March 27 will "punish" farmers who have been abiding by the law and
utilizing the H-2A program, the current, temporary guest worker program.
Not only that, it would create a new "blue card" program that would
enable current or future aliens to enter the United States, work for a
farmer or rancher for a short time and then move on to other, "less
back-breaking" forms of employment. In other news, Indiana's pace of
rapid growth in bioenergy and energy self-sufficiency took another step
forward last week as Governor Mitch Daniels announced that Louis Dreyfus
Agriculture Industries LLC plans to build the world's largest biodiesel
plant near Claypool. And speaking of fuel issues, talk about timing!
While major oil company executives were being grilled by the Senate
Judiciary Committee about record profits and the impact of
consolidations on prices, gasoline pump prices were seeing one of the
biggest short-term run-ups since Hurricane Katrina. Within the space of
three weeks, starting late February, prices hereabouts rose more than 40
cents per gallon. Elsewhere on the farm front, as you know, soybean
production is a game of inches every crop season. Do growers plant in
7.5-in. rows? Fifteen-in. rows? Thirty-in. rows? The row spacing
question has taken on greater significance with Asian soybean rust now a
potential threat in the United States. Find out the latest row
recommendations this week. Elsewhere in the news, the Supreme Court
refuses case against Tyson Foods; March 31 crop report coverage;
negative net worth on the farm and an early start to the soybean
season.
You'll find these stories and a lot more in this news-packed issue of
Crop News Weekly. Happy reading.
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most comprehensive look at rust movement available. For more information
on Syntinel RustTracker, please visit http://www.soybeanrust.com.
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Senate
Judiciary immigration bill would punish farmers
04/01/06
Saxby Chambliss says the agricultural guest worker
program language reported out by the Senate Judiciary Committee March 27
will "punish" farmers who have been abiding by the law and utilizing the
H-2A program, the current, temporary guest worker program. Not only
that, it would create a new "blue card" program that would enable
current or future aliens to enter the United States, work for a farmer
or rancher for a short time and then move on to other, "less
back-breaking" forms of employment, the chairman of the Senate
Agriculture Committee said. - Forrest Laws, Farm Press Editorial
Staff
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Indiana
attracts world's largest biodiesel plant
04/04/06
Indiana's pace of rapid growth in bioenergy and energy
self-sufficiency took another step forward March 8 as Governor Mitch
Daniels announced that Louis Dreyfus Agriculture Industries LLC plans to
build the world's largest biodiesel plant near Claypool, Indiana. With
this facility, two other biodiesel and six ethanol plants currently
under construction, Indiana will become a leading producer in the
biofuels industry. Indiana is the fifth largest corn state and the
fourth largest soybean state and with the facilities under construction,
the state will produce an additional 400 million gallons of ethanol
annually and 95 million gallons of biodiesel (including Louis Dreyfus).
- The Corn & Soybean Digest
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An
unexpected culprit in gas price escalation
04/03/06
Talk about timing: While major oil company executives
were being grilled by the Senate Judiciary Committee about record
profits and the impact of consolidations on prices, gasoline pump prices
were seeing one of the biggest short-term run-ups since Hurricane
Katrina. Within the space of three weeks, starting late February, prices
hereabouts rose more than 40 cents per gallon. In one two-day period,
the price of regular unleaded went up 10 cents per gallon each day,
hitting $2.499 before dropping back ever so slightly to the current
$2.459. In California, the per gallon price of unleaded topped $2.60.
- Hembree Brandon, Farm Press Editorial Staff
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Fungicide
unaffected by row widths
04/04/06
Soybean production is a game of inches every crop
season. Do growers plant in 7.5-in. rows? Fifteen-in. rows? Thirty-in.
rows? The row spacing question has taken on greater significance with
Asian soybean rust now a potential threat in the U.S. Fortunately for
producers, Purdue University research indicates that row width has no
bearing on fungicide spray coverage. The research project was inspired
by farmer inquiries, says Shawn Conley, Purdue Extension soybean
specialist. - The Corn & Soybean Digest
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News from the Top of the
Hill
03/31/06
National Hog Farmer
Farm Bill Summaries - Secretary of Agriculture
Mike Johanns released a summary of the more than 4,000 comments from the
52 USDA Farm Bill Forums held in 48 states. The comments were summarized
and placed into 41 general subject areas themes for further analysis.
The 41 comment summary papers include three sections: factual background
data about the topic, a summary of general opinions expressed, and a
list of specific suggestions that are conveyed. The first theme that
USDA will conduct further analysis is risk management. The summary
papers, including ones on agricultural concentration, animal welfare,
and country of origin labeling, can be found on USDA's website at http://www.usda.gov. Some of the opinions
expressed on agricultural concentration include:
Eliminate the use of mandatory arbitration in contracts for the
livestock industry.
Restrict a packing entity from having more than 25 percent of its
slaughter mix from captive supplies on a per plant, per day basis.
Packers should only be able to won cattle one week prior to
slaughter.
Enact reforms to protect producers in contracts by requiring
contracts be written in plain language.
Supreme Court Refuses Case Against Tyson Foods - The U.S. Supreme
Court refused to revive the case against Tysons Foods by Leroy Pickett
of Alabama and other producers. Pickett and the producers claimed that
Tysons "used its market dominance to artificially push down cattle
prices." Earlier a jury had agreed with Pickett and awarded them $1.28
billion. However, the trial judge overturned the jury verdict and the
11th U.S. Circuit Court of Appeals agreed with the judge. The National
Farmers Union (NFU) in a statement said, "NFU is disappointed that the
Supreme Court chose not to hear this very important case. Cattle
producers across the country are faced with decreased competition for
their cattle and the U.S. Department of Agriculture's failure to enforce
anti-trust laws."
CRP Sign-up - Farmers and ranchers have until April 14 to sign-up
for the Conservation Reserve Program (CRP). CRP participants
"voluntarily enroll highly erodible and other fragile cropland in CRP
through long-term contracts of 10 to 15 years." Grasses, trees and other
vegetation are planted on the enrolled land. Participants receive annual
rental payments and a payment for up to 50 percent of the cost of
establishing conservation covers. Eligible CRP offers will be evaluated
on improving soil retention, water quality, wildlife habitat and air
quality. More information is available at local USDA Farm Service Agency
(FSA) offices or at http://www.fsa.usda.gov/dafp/cepd/drpinfo.htm.
AFBF & NFU Support Disaster Assistance - The American Farm Bureau
Federation (AFBF) and the National Farmers Union (NFU) held a joint
press conference in support of disaster assistance legislation
introduced by Senator Kent Conrad (D-ND). AFBF President Bob Stallman
said, "This past year was one when several major natural disasters
including droughts, floods, fires, tornadoes and hurricanes ravaged
thousands of acres of agricultural land, plus, destroyed farmstead
buildings and homes. The Emergency Agricultural Disaster Assistance Act
of 2006 will provide help to producers for losses incurred during the
2005 crop year. Without such help, many producers will be forced out of
business." The disaster legislation would provide emergency funding to
farmers and ranchers who have suffered weather-related crop production
shortfalls, quality losses, damage to livestock feed supplies and
payments for the loss of livestock. The bill also helps farmers overcome
losses as a result of energy prices.
BSE Cases Declining - A recent report by the United Nations Food
and Agricultural Organization (FAO) indicates that cases of BSE are
declining worldwide. According to the report, the rate of reported cases
has dropped 50 percent for each year over the past three years. "In
2004, 474 animals died of BSE around the world, compared with 878 in
2004 and 1646 in 2003."
Pombo New Vice Chair of House AG - Congressman Richard Pombo
(R-CA) has been named Vice Chairman of the House Agriculture Committee.
Pombo has been a member of the committee since 1993. Also, Congressman
Mike Sodrel (R-IN) has been named a member of the committee. These
announcements are the result of Congressman John Boehner (R-OH) having
to leave the committee because of his recent election as House Majority
Leader. - Scott Shearer
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Thiesse's
Thoughts: March 31 crop report
04/04/06
On March 31, 2005, USDA released its Prospective
Plantings Report and its Quarterly Grain Stocks Report. Typically, these
late March USDA reports are very critical to farm operators and grain
traders because these reports tend to have a high impact on grain market
prices in the spring and early summer. This is the time of the year when
many farm operators try to sell remaining grain inventories from the
previous growing season, as well as look for opportunities to forward
price a portion of the anticipated crop for the current year. In a
majority of years, corn and soybean prices usually reach their peak
price for a calendar year sometime between April 1 and July 15. -
Kent Thiesse, The Corn & Soybean Digest
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High
fuel, fertilizer prices result in negative net worth
04/03/06
High fuel and fertilizer prices continue to decrease
the economic viability of farms represented in a baseline study released
recently by the Agricultural and Food Policy Center at Texas A&M
University in College Station. Farmers experienced as much as a 28
percent hike in fuel input costs in 2005, which also increased the
likelihood of negative net cash flows, according to the report.
Commodity price increases projected through 2010 won't be enough to
offset increased input costs. - Blair Fannin, Farm Press Editorial
Staff
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Early
start leads to early finish for soybean producers
04/03/06
An early start means an early finish for soybean
producers Don and Jimbo Davis, Tippo, Miss. That is why every one of
their 3,000 soybean acres this year will be planted in Group 4s, ranging
in maturity from 4.4 to 4.9. "This is the third year that we have had
all Group 4s," Don said on a recent sunny March morning, taking a break
from preparing a field for soybean planting. "When we had Group 5s,
August used to be a big month for us, and we would pray for rain. We're
also trying to beat the Asian rust and other diseases with the Group 4s.
With Group 4s, we get to July 4, and we don't have to worry about it."
- Elton Robinson, Farm Press Editorial Staff
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Expected
Drop in U.S. corn acreage?
04/03/06
Corn E-Digest
USDA's Prospective Plantings report shows farmers
across the nation plan to slash corn acreage by 3.74 million acres, or
5%, compared to 2005. The report cites "the high cost of fuel and
fertilizer" as the cause for the switch from corn to "less
input-intensive crops such as soybeans." The report also shows farmers
plan to increase U.S. soybean acreage 7% in 2006 compared to 2005. The
National Agricultural Statistics Service (NASS) released the Prospective
Plantings report on Friday, March 31. The report has already had an
immediate affect on prices.
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ASA urges
China to accept greater ag import access
03/31/06
American Soybean Association (ASA) Vice-President Gary
Joachim has stressed the importance of opening the Chinese market to
further agricultural imports in the current Doha round of World Trade
Organization (WTO) trade negotiations. Joachim testified during a Senate
Finance Committee hearing March 29 on U.S./China economic relations
where he cited preliminary analysis that China will account for between
35 and 40 percent of total world agricultural trade gains from a new WTO
agreement. - Farm Press Editorial Staff
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Brazil's
advantages: land resources, plant breeding
03/31/06
On our fifth day in Brazil we discovered just how
small the world is when we met another agricultural tour group at our
hotel in Rondonopolis, Mato Grosso (MT). This group, a young-adult
agricultural leadership class, was from Oklahoma State University. They,
like us, were in Brazil to study soybean production, Asian soybean rust,
and the impact of Brazil on international agricultural trade. Not so
surprisingly, both groups were going to visit many of the same places.
- Daryll E. Ray
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Alabama
Senate passes BSE confidentiality legislation
03/31/06
The Alabama State Senate has passed HB 254 with a vote
of 20-6. This bill will provide for the confidentiality of information
initially gathered by the Alabama Department of Agriculture and
Industries as the department implements and maintains a database for
Animal Identification in accord and consistent with the United States
Department of Agriculture's National Animal Identification System.
Premises ID Registration has been implemented in the last year and
Animal ID Registration is not far behind. The information on premises
and animals, gathered at the request of Commissioner Sparks, is to
protect the interest of public health, safety, and welfare. - Farm
Press Editorial Staff
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Iowa
farmer, politician could be sincerely wrong
03/30/06
Mark W. Leonard sounds like a genuinely nice guy. Last
year, he brought a cotton farmer from Mali in West Africa to church
gatherings near his farm in Holstein, Iowa, to discuss U.S. farm
subsidies. But being a nice guy doesn't mean that Leonard, who,
according to a Wall Street Journal article, is a Republican candidate
for agriculture secretary in Iowa, cannot also be terribly wrong. -
Forrest Laws, Farm Press Editorial Staff
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Midwest
farmers may see payment limits differently
03/30/06
Last fall's record and near-record soybean and corn
crops haven't done much for commodity prices, but they may have helped
some Midwest farmers get a different slant on the payment limit issue.
Growers who thought payment limits were a "Southern problem" have begun
to see the debate in a different light after grain had to be stockpiled
across much of the Midwest, according to Dana Brooks, director of
congressional relations for the American Farm Bureau Federation. -
Forrest Laws, Farm Press Editorial Staff
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Seminar
to explore biotechnology's potential impact
03/30/06
Enormous advances and opportunities are occurring in
agricultural and industrial biotechnology, offering a chance to
revitalize rural economies in Texas, a West Texas A&M University
official said. West Texas A&M, Texas Agricultural Experiment Station,
Texas Department of Agriculture, U.S. Department of Agriculture-Rural
Development and the Amarillo Economic Development Corporation are
hosting a special seminar to spotlight the possibilities. - Farm
Press Editorial Staff
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Government
payments key in 2006 survival
03/29/06
If farmers had any doubts about the importance of
government payments to their ability to survive higher fuel and
fertilizer prices this year, all they have to do is look at Chuck
Danehower's numbers. Danehower, farm management specialist with the
University of Tennessee Extension Service, has calculated the yields
growers in his area would need to break-even under the scenario of
higher input costs anticipated for 2006. - Forrest Laws, Farm Press
Editorial Staff
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Making
the case for bio-diesel
03/29/06
As the cost of oil continues to rise in both price and
strife, domestically produced bio-diesel looks better and better. The
United States imports about 12.5 million barrels of oil per day. Some 5
million of those barrels come from OPEC nations. "Simple math tells us 5
million times $65 equals about $325 million per day going to OPEC," said
Tommy Foltz during a recent presentation by the Mid-South Clean Fuels
Coalition and sponsored by Delta King Seed Company. "That means in
January, (when oil averaged $64.95 per barrel) this country exported
over $10 billion of its wealth to OPEC." - David Bennett, Farm Press
Editorial Staff
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Rain
-- too little too late for wheat?
03/29/06
Some elevator managers have compared the 2006 wheat
crop to the 2002 and the 1996 wheat crops. During the recent weeks, cash
wheat prices have fallen about 41 cents and harvest forward contract
prices have declined about 47 cents. The price declines are due mostly
to expectations of and then actual rainfall over much of the hard
red-winter wheat area. The rain was beneficial. However, the rain may
have been too little, too late. - Kim Anderson, Farm Press Editorial
Staff
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Sign Up for
MarketMaxx
04/05/06
Sign up and play The Corn And Soybean Digest's fantasy
grain game called MarketMaxx. It's easy, fun and hopefully you'll learn
a little more about how to market the corn and beans your raise. It's
easy to sign-up. Just log on to http://www.marketmaxx.net and
register at the top left and begin trading your fictitious 100,000 bu.
of corn and 50,000 bu. of soybeans. If you're a winner at the end of the
game on October 31 you could take home the grand prize of a year's use
of a Massey Ferguson tractor or combine. Or, win additional prizes such
as a computer system from Syngenta Crop Protection, customized rugged
mobile computers from Grayhill Custom Mobile Solutions or a high-speed
satellite Internet service from Agristar Global Networks. - The Corn
& Soybean Digest
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