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Logan
Hawkes
10/25/06
Crop News Weekly
While harvest is a wrap for many Midwest
growers, the last rush to bring in the crops is underway across the
remaining fields as winter-like weather begins to make its presence
known in some areas. While harvest numbers aren't in yet, it appears it
has been a good yield and reasonably healthy crop in most areas - at
least in the Midwest. Way down south, Texas Valley citrus growers are
expecting a better-than-usual year with Sept-Oct rains bringing promise
of a sweet, juicy crop. And life goes on. Then, there's the farm bill
issue.
In the top of the news (you guessed it), the farm bill. There's more
than one version of a 2007 farm bill being tossed around both Houses.
The latest is another amendment being offered that would shift a portion
of farm program payments to conservation program payments. Then there's
the question as to whether farmers can even survive the coming years.
Low prices, the drought of 2006, high energy costs, a world war on U.S.
subsidies and a farm bill that may not be as farmer friendly as those in
years past will contribute to fewer farmers. In other news, soybean
breeders, producers and scientists have a new resource to tap.
Agricultural Research Service (ARS) scientists recently launched "The
Soybean Breeder's Toolbox," an online database that allows exploration
of the soybean's genetic makeup, and we will tell you how to log in.
Also this week, a study released by the National Corn Growers
Association indicates local ethanol plant ownership generates
significantly more economic activity for the communities in which the
plants are located than plants owned by absentee investors. And in case
you missed it last week, USDA has announced that corn farmers will
receive a final counter-cyclical payment of $0.35 per bushel, while
soybean growers will not receive a CCP payment based on season-average
market prices for 2005.
You'll find these and other stories in this issue of Crop News
Weekly. Happy reading.

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Survey
says U.S. citizens support incentives for biofuel
10/23/06
Four in five U.S. adults agree that national and state
governments are not doing enough to promote production of biofuels --
fuels made from agricultural crops or plant matter -- according to a
survey released by the Biotechnology Industry Organization. The survey,
conducted by Harris Interactive, also found that 82 percent of adults
say national and state governments should provide financial incentives
to biofuels producers to encourage the production and availability of
biofuels. More than two out of three adults would use American-made
biofuels even if these fuels cost slightly more than conventional
gas.

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Ending
stocks higher for cotton, rice, soybeans
10/24/06
USDA's World Agricultural Outlook Board reduced
projected ending stocks for U.S. corn to just under 1 billion bushels
and lowered its expectation for U.S. cotton exports and consumption in
its Oct. 12 estimate of supply and demand. USDA projected cotton
domestic mill use 200,000 bales lower based on declining use rates in
recent months. Projected exports were also reduced 200,000 bales due to
lower world import demand. Ending stocks for 2006-07 are 17 percent
higher this month but are 11 percent below 2005-06. - Elton Robinson,
Farm Press Editorial Staff

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Cotton,
soybean crops get bigger, corn yields down
10/23/06
Better than expected yields in most cotton-producing
states has increased the size of the estimated 2006 U.S. cotton crop by
2 percent from last month to 20.7 million bales, according to USDA's
October crop production report. USDA also estimated record soybean
production. Soybean production is forecast at 3.19 billion bushels, up 3
percent from the September forecast and up 4 percent from the 2005 crop.
If realized, this would be the highest production on record. Based on
Oct. 1 conditions, yields are expected to average 42.8 bushels per acre,
up 1 bushel from September but down 0.2 bushel from last year's record
high yield.- Elton Robinson, Farm Press Editorial Staff

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An
online toolkit for soybean studies
10/20/06
Soybean breeders, producers and scientists have a new
resource to tap. Agricultural Research Service (ARS) scientists at Ames,
IA, recently launched "The Soybean Breeder's Toolbox," an online
database that allows exploration of the soybean's genetic makeup through
easily retrieved information. The website is the new interface to
SoyBase, a pioneering, ARS-supported plant-genetic database established
in 1993. - The Corn & Soybean Digest

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Farmer-owned
ethanol plants contribute to economy
10/20/06
Local ethanol plant ownership generates significantly
more economic activity for the communities in which the plants are
located than plants owned by absentee investors, according to a study
released by the National Corn Growers Association (NCGA). The study,
"Economic Impacts on the Farm Community of Cooperative Ownership of
Ethanol Production," concludes that, "Since a farmer-owned cooperative
ethanol plant is literally a member of the community, the full
contribution to the local economy is likely to be as much as 56% larger
than the impact of an absentee-owned corporate plant." John Urbanchuk of
LECG, LLC, conducted the analysis. - The Corn & Soybean Digest

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News from the Top of the
Hill
10/20/06
National Hog Farmer
AG Coalition for Vietnam PNTR -- The
Agriculture Coalition for U.S.-Vietnam Trade sent a letter to every
member of Congress urging the passage of Permanent Normal Trade
Relations (PNTR) for Vietnam. According to the coalition, products
benefiting would be beef, pork, dairy products, grapes, apples, pears,
and soybeans. Under the agreement, tariff rates for approximately 75% of
U.S. agricultural exports to Vietnam would decline to 15% or less.
According to USTR tariffs would be reduced as follows:
Pork: Tariffs on pork offals will be immediately cut from 20% to 15%
with further reductions to 8% over four years. Tariffs on other key pork
and pork products will be reduced by 50% over five years, including
tariffs on hams and carcasses, which will fall from 30% to 15% in that
timeframe. Rates on processed pork products will be reduced from 20% to
10% over five years.
Beef: Tariffs on U.S. beef offals will be reduced from the rate 20%
to 15% immediately and phased down to 8% over four years. Boneless beef
will be cut from 20% to 14% over 5 years. The duty on beef sausages,
currently at 50% will drop to 40% immediately and will be reduced to 22%
over five years.
Hides and Skins: Tariffs on hides and skins will be bound at zero
immediately. This is currently one of the United States largest exports
to Vietnam.
Grains: Vietnam will bind its applied rate of 5% for both corn and
wheat.
Soybean products: Tariffs on full fat soybean meal and flour will be
reduced from 30% to 8% over five years. Tariffs on soybean oil also will
be significantly reduced, from 50% to 30% with additional reductions to
20% over five years.
Congress is expected to consider the PNTR legislation in November or
December. Members of the coalition include: American Farm Bureau
Federation, American Meat Institute, American Soybean Association,
National Association of Wheat Growers, National Cattlemen's Beef
Association, National Corn Growers Association, National Cotton Council,
National Milk Producers Federation, National Pork Producers Council, and
U.S. Apple Association.
Cloned Food Closer to Approval -- The Food and Drug
Administration (FDA) has indicated that they are planning to release a
draft risk assessment on livestock cloning before the end of the year.
There is expected to be a 60 day comment period. Afterwards, FDA likely
will lift a voluntary moratorium on the sale of milk and meat from
cloned animals and their offspring. The Consumers Federation of America
said in a press release, "By not requiring that cloned milk and meat be
labeled, the U.S. Government is permitting these ethically questionable
products to be foisted on a reluctant public through secrecy and
stealth. There will be no freedom to choose in the cloned milk and meat
marketplace."
10 Biobased Items for Federal Procurement -- USDA announced 10
more biobased product categories (representing over 480 biobased
products) that will receive special purchasing consideration by all
federal agencies. The new items include: bath and tile cleaners;
clothing products; concrete and asphalt release fluids; cutting,
drilling, and tapping oils; deicers; durable films; firearm lubricants;
floor strippers; laundry products; and wood and concrete sealers. The
designations are part of the Federal Biobased Products Preferred
Procurement Program or "BioPreferred." This program was authorized under
the 2002 farm bill.
Deficit Declines -- The U.S. Treasury Department announced the
fiscal year 2006 deficit was $247.7 billion. This was the lowest budget
deficit in four years. However, it still ranks as one of the largest
single fiscal year deficits in U.S. history. - P. Scott
Shearer

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Face
of farming set to change again
10/20/06
Low prices, the drought of 2006, high energy costs, a
world war on U.S. subsidies and a farm bill that may not be as farmer
friendly as those in years past seem to point to another round of farm
liquidations over the next few years. Liquidation of course is another
way of saying that farmers are "going broke." Part of the American
farmer's problem is that the average, non-farming American doesn't
understand that subsidies help invigorate the rural economy. - Elton
Robinson, Farm Press Editorial Staff

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WTO leader
says agriculture is Doha 'stumbling block'
10/20/06
WTO Director-General Pascal Lamy says agriculture
holds the key to the resumption of the Doha Round negotiations, and,
until agriculture's issues are resolved, he expects little progress
toward reaching a new global trade agreement. An article on the
Bloomberg.com Web site says Lamy told European Parliament members in
Brussels today that he is trying to get the five-year-old negotiations
restarted by meeting with countries and groups of countries to find a
solution to the impasse in the Round. - Forrest Laws, Farm Press
Editorial Staff

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Farm bill
proposal kinder to environment, consumers
10/20/06
Rep. Ron Kind, D-Wis., no stranger to being on the
short end of farm legislative debates, has introduced the first in what
is expected to be a long line of proposals for the 2007 farm bill. Kind,
who authored an amendment that would have shifted $19 billion from farm
program to conservation program payments in the 2002 farm bill, calls
his measure the Healthy Farms, Foods and Fuels Act, H.R. 6064. (The
House defeated the 2002 farm bill amendment by a vote of 226-200.) -
Forrest Laws, Farm Press Editorial Staff

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USDA
announces 35-cent CCP for corn
10/18/06
USDA has announced that corn farmers will receive a
final counter-cyclical payment of $0.35 per bushel, while soybean
growers will not receive a CCP payment based on season-average market
prices for 2005. The $0.35 per bushel will be part of a total of $3
billion in final 2006-year direct payments to producers enrolled in the
Direct and Counter-cyclical Payment Program and $1.6 billion in 2005
corn counter-cyclical payments. - Forrest Laws, Farm Press Editorial
Staff

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Study
shows impact of ag policy reform
10/18/06
U.S. farm policy reform without corresponding
multilateral trade reform and market access would result in lower
production and incomes for many U.S. agricultural producers over the
next 15 years, according to a study conducted by the Australian Bureau
of Agricultural and Research Economics. Among the program crops, the
largest reductions in production would occur for cotton and rice, which
would decline by 11 percent and 13 percent respectively by 2020 if the
United States undertook reform alone. - Elton Robinson, Farm Press
Editorial Staff

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Chicago
Council weighs in on next farm bill
10/17/06
The 2007 or 2008 farm bill -- if Congress doesn't
act next year -- could be a far different animal from its predecessor
if some non-farm groups are able to put their stamp on it. For months,
farmers have been telling anyone who listened that they want to keep the
current law. But the Chicago Council on Global Affairs recently released
a report that calls for what would amount to a complete makeover. -
Forrest Laws, Farm Press Editorial

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Good corn
yields lead to more acres
10/17/06
It started out as a demonstration plot in 2005, a few
acres of corn planted in a twin-row, 30-inch pattern using a borrowed
Great Plains planter. But when the plot on Dulaney Farms, just south of
Clarksdale, Miss., yielded 280 bushels per acre, "that opened our eyes,"
said Wayne Dulaney, who farms with his father, Edwin, uncle, Terry and
brother, J.D. After the good results, the Dulaneys started making plans
to gear up for more corn acres in 2006. They liked the idea of twin-row
production, but were a little hesitant about purchasing new twin-row
planters. - Elton Robinson, Farm Press Editorial Staff

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Researchers
identify alternative fuels impact
The first comprehensive analysis of the full life
cycles of soybean biodiesel and corn grain ethanol shows that biodiesel
has much less of an impact on the environment and a much higher net
energy benefit than corn ethanol, but that neither can do much to meet
U.S. energy demand. The study, which was funded in part by the
University of Minnesota's Initiative for Renewable Energy and the
Environment, was conducted by researchers in the university's College of
Biological Sciences and College of Food, Agricultural and Natural
Resource Sciences. - The Corn & Soybean Digest

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