View this email as a Web page Please add Crop News Weekly to your Safe Sender list.

Corn & Soybean Digest Farm Industry News
 :: SUBSCRIBE
 
 :: PREFERENCES
 :: CONTACT US
A Penton Media Publication December 24, 2008 | Volume 8 Issue 52   
TABLE OF CONTENTS
 >> Logan Hawkes

 >> USDA raises payments limit bar

 >> USDA opens signup for 2009 DCP

 >> House hearing: Credit default swaps

 >> Obama nominates former Iowa governor for Secretary of Agriculture

 >> MORE: Vilsack Nomination

 >> Don't miss Conservation Tillage Conference Jan. 28-29

 >> THIESSE'S THOUGHTS: ACRE Program Details

 >> FARMER VIDEOS: Step into the new world

 >> USDA: Average corn price lower in 2008 than 2007

 >> 80 million soybean acres possible for 2009

 >> ROAD WARRIOR: The Ugly Economic Numbers

 >> NEW POLL: Let your vote be counted!

 >> Economist Anderson: 2008 and beyond

 >> Biofuels and energy independence in uncertain times

 >> New herbicide sprayer to help eradicate noxious plants

 >> Water and energy resources will be limiting factors



  EDITOR'S NOTE
Logan Hawkes
12/24/08    Crop News Weekly
It's one of the most wonderful times of the year, as they say, and here's hoping your holiday season will be beautiful and bright. In many ways 2008 has been a very challenging year. It's certainly been a year of change. It was a farm bill year, a presidential election year, and year of higher - way higher - fuel prices, followed by the onset of a recession and some of the lowest fuel prices in six years. If nothing else, as we prepare to enter the end-of-year holiday season, we should take some time to consider all that has transpired over the last year. The New Year, at best, could be a time for recovery and stability; a time when we prop up our economic and social structure much the same way our fathers did, and their fathers before them. As editor of Crop News Weekly over the past seven-plus years, I have had the pleasure of meeting and getting to know a lot of good folks across the nation, like Eric Beyers and the crew of first harvest reports, stationed all across the Midwest. And like the annual high cotton award winners, who stretch from the Southeast coast to the West coast. As I reflect on these brief relationships and new-found friendships, I have discovered there are a lot of good farmers out there. These guys, and their thousands of counterparts all across the nation, are the backbone of the American spirit, and it gives one reason to hope that the future may not be such a bad place after all with such a core of good-hearted, hard-working families holding down the fort.

Now I'm caught up in the warm, fuzzy feeling of the holidays. But on to the news: USDA raises payment limit bar; signup opens for 2009 DCP; credit default swaps; Obama nominates ag secretary; Conservation Tillage conference; ACRE program details - you'll find these stories and more in this issue of Crop News Weekly. Happy ready - and Happy Holidays!



  FROM OUR MAGAZINES
USDA raises payments limit bar
USDA is publishing an interim final regulation that will require individuals and entities to make significant contributions of (1) capital, equipment, land or a combination of those and (2) personal labor or active personal management to be considered “actively engaged in farming.”

The new definition of actively engaged is part of a long-awaited announcement of the rules for implementing the payment limitation provisions of the 2008 farm bill. The rules were unveiled by Agriculture Secretary Ed Schafer late Friday and are scheduled to be published in the Federal Register this week.

Besides the new rules for actively engaged, direct attribution and reconstitution of farming operations, the interim final rule also sets out how USDA intends to enforce the new adjusted gross income or AGI limitations in the Food, Conservation and Energy Act of 2008. - Forrest Laws, Farm Press Editorial Staff
(To read the complete article, click on the headline above)

USDA opens signup for 2009 DCP
Agriculture Secretary Ed Schafer announced farmers can begin signing up for the 2009 Direct and Counter-cyclical Payment program this week. The announcement, which came at 4:20 p.m. on Friday, should be good news for producers who have been waiting to request a 22-percent advance direct payment to help with the financing for their 2009 crops. The 2008 farm bill required USDA to offer producers the 22 percent advance payment by Dec. 1. Farm groups and farm-state senators have been complaining about the “significant delay” in announcing the signup period.

“I have heard from farmers across Arkansas who, in addition to facing an extremely volatile market and working to overcome the damage wrought by natural disasters this year, are hampered in their ability to plan for the coming year,” Sen. Blanche Lincoln, D-Ark., said in a letter to Schafer. - Forrest Laws, Farm Press Editorial Staff
(To read the complete article, click on the headline above)

House hearing: Credit default swaps
As the nation’s economy struggles to regain its footing, those testifying at a House Agriculture Committee hearing on regulating credit default swaps suggested ways those regulations — and clearinghouses for the transactions — could be set up.

In the often “hard to value credit default swaps market, several companies have stepped forward seeking approval to operate clearinghouses for credit derivatives,” Minnesotan Colin Peterson, chairman, said at the committee’s Dec. 8 hearing. “Such clearinghouses could reduce the bilateral risk of swaps transactions and increase transparency of these products — not just for the public but for all players in the industry.” - David Bennett, Farm Press Editorial Staff
(To read the complete article, click on the headline above)

Obama nominates former Iowa governor for Secretary of Agriculture
Former Iowa governor Tom Vilsack has been nominated for Secretary of Agriculture. President-Elect Obama made the announcement at a news conference late last week. During his eight years as Governor of Iowa, Vilsack was active on a number of issues affecting corn growers. He chaired the Governors Ethanol Coalition, Governors Biotechnology Partnership, and the National Governors Association’s Natural Resources Committee, which handles agriculture and energy policies. He also chaired the Democratic Governors Association in 2004. Tom Vilsack served as Governor of Iowa from 1999-2007. - Corn & Soybean DIgest
(To read the complete article, click on the headline above)

MORE: Vilsack Nomination
President-elect Barack Obama has selected former Iowa Gov. Tom Vilsack as agriculture secretary and will announce the appointment on Dec. 17, according to news reports out of Washington D.C. Various stories cited Democratic sources familiar with the selection process, who spoke on a condition of anonymity, as the source of the news.

Vilsack declined to comment on the report when reached by phone by the Chicago Tribune. "Those questions should be answered by the transition office and the president-elect," Vilsack said, answering his cell phone from what he said was Des Moines, IA. Vilsack would be the fourth former opponent of Obama in the 2008 Democratic primaries to join his new administration. - Richard Brock, Corn & Soybean Digest
(To read the complete article, click on the headline above)

Don't miss Conservation Tillage Conference Jan. 28-29
The fifth annual Conservation Tillage Conference is little more than a month away. The two-day event is scheduled for Jan. 28-29 at Jackpot Junction, Morton, MN. Leading industry and university experts will cover topics like: planting corn in cooler soils, placing fertilizer close to seed, tuning up your planter and getting the most out of your nitrogen fertilizers. Plus, you won’t want to miss the general session which will include a farmer panel discussing the latest conservation tillage practices. Cost for the conference is $100 until Jan. 9. After that, the price is $125. For more details and registration, log on to www.tillageconference.com or call Jodi or Mary Jo at the University of Minnesota Extension Regional Office, 507-337-2800. The conference is brought to you by the University of Minnesota and Corn & Soybean Digest. (To read the complete article, click on the headline above)

THIESSE'S THOUGHTS: ACRE Program Details
The Average Crop Revenue Election (ACRE) program is being implemented by USDA for the 2009 crop year, as part of the Food, Conservation, and Energy Act of 2008 (the new farm bill). Beginning in 2009, eligible farm operators will have the option to enroll in the ACRE program as an alternative to the current Direct and Counter-Cyclical Payment (DCP) program that was initiated in 2003 as part of the last farm bill. The ACRE program will offer the potential of revenue-based payments, based on yield and price, as compared to current price-only counter-cyclical payment (CCP) calculations. Farm Service Agency (FSA) offices will be holding information meetings and starting sign-up for the new ACRE program, in the coming months. - Kent Thiesse, Corn & Soybean Digest
(To read the complete article, click on the headline above)

FARMER VIDEOS: Step into the new world
It a big hi-tech world out there. Just look at farming. Times have changed, and so have the way we do things, and the tools we use to do them. The same is true about managing our time and dividing it between the many things we must do, like work and ongoing education, about getting the news and taking the time to vote. The electronic revolution of the first decade of the new millineum has brought about revolutionary changes. Put yourself on scene of the best ag-related stories with the new offerings from FIN/TV and Farm Industry News. This week, check out the new videos about the new line of Deere tractors and equipment; see the new closed system for handling insecticides on a planter and check out the new Gleaner, Massey Ferguson and Challenger combines. It's just a click away. Grab a sack of popcorn and get ready to join the technology revolution. Click on the headline above and we'll transport you to the very best 'movies for farmers'. - Farm Industry News

USDA: Average corn price lower in 2008 than 2007
In its newest corn supply and demand estimates, the USDA reported the estimated average farm price for corn in 2008 at $4/bu. – lower than the price for corn in 2007. Leaders at the National Corn Growers Association (NCGA) pointed out that this proves that higher ethanol demand can be accommodated with little impact on corn and food prices. The USDA estimates corn production at just over 12 billion bushels and yield at 153.8 bu./acre, with total corn supply at nearly 13.7 billion bushels. These numbers are the same at November’s estimate, but some changes were made to the USDA’s estimates for corn demand. - Corn & Soybean Digest
(To read the complete article, click on the headline above)

80 million soybean acres possible for 2009
U.S. farmers are leaning toward planting a lot more soybeans and a lot less corn for 2009, says Chad Hart, Iowa State University economist. “Currently, soybeans are definitely th­­­e lower-input-cost crop compared to corn,” says Hart. “So, most farmers are looking at soybeans as the place to move their acreage this year.” Also, due to significant corn acreage increases in the last two years, many farmers are looking to reestablish their crop rotation with soybeans for agronomic reasons. As a result, a significant switch back to beans will likely occur in 2009, he predicts. - Corn & Soybean Digest
(To read the complete article, click on the headline above)

ROAD WARRIOR: The Ugly Economic Numbers
Dave Kohl writes: "My past two discussions centered on housing starts and the Composite Leading Index as indicators of the health of the U.S. economy. Let’s dig deeper and examine another measure of the economy.

Purchasing Manager Index
The Purchasing Manager Index (PMI) is a gauge of how well the manufacturing industry in the economy is performing. Granted, the service sector dominates our economy with 70% driven by this segment; however, the PMI as an index of the manufacturing base is a lead indicator to reckon with... " - Corn & Soybean Digest
(To read the complete article, click on the headline above)

NEW POLL: Let your vote be counted!
What is your strategy for spring 2009 fertilizer purchases?

Register your vote at cornandsoybeandigest.com.
Click on the headline above and go there now.

Economist Anderson: 2008 and beyond
For agricultural economist Carl Anderson, the big question over the last year has been whether pogo-ing crop prices indicated a structural shift or just short-term adjustments.

“I definitely believe it’s only short-term adjustments and we’ll return to the fundamentals of supply-and-demand driven prices,” said the Texas A&M professor and Extension specialist emeritus, who spoke at the recent American Society of Farm Managers and Rural Appraisers annual meeting in San Antonio.

Of course, those prices must be high enough to make productive, commercial farms profitable. So, “while input costs increase — and I know lower fertilizer and fuel costs are coming on — faster than technological developments to increase production, higher commodity prices will be necessary to maintain production. Also, higher crop prices should be a consequence as we move into greater demand for the use of land for the production of biofuels.” - David Bennett Farm Press Editorial Staff
(To read the complete article, click on the headline above)

Biofuels and energy independence in uncertain times
Thirty-five years ago this month, President Richard Nixon declared the country would be energy independent in a mere seven years. Obviously, that didn’t work out, but economist Joe Outlaw says it wasn’t a bad idea then and still isn’t.

“It’s easy for people to be cynical — ‘Energy independent? We can’t do that’ — but my point is every little bit helps as long as the economics and a business model support it,” said the co-director of the Texas-based Agricultural and Food Policy Center at the recent American Society of Farm Managers and Rural Appraisers annual meeting in San Antonio.

The “whole complex” of biofuels is “tremendous. Lots of people say I’m a biofuels apologist. What I am is a realist. I don’t care what anyone says, we’re going to have biofuels in this country. The politicians want it. For the most part, consumers want it.”

What really matters is the economics. - David Bennett, Farm Press Editorial Staff
(To read the complete article, click on the headline above)

New herbicide sprayer to help eradicate noxious plants
New Mexico State University engineers and the boards of supervisors for the Central Valley and Peñasco Soil and Water Conservation Districts (SWCD) have developed a novel herbicide sprayer that will provide an efficient and cost effective way to eradicate invasive plant species. The sprayer will soon be available to ranchers in the districts.

Invasive plant species, such as mesquite, creosote and certain types of juniper, pose a problem in the arid Southwest, using precious water resources that might otherwise support beneficial grasses or cause the erosion of land.

The sprayer is the culmination of more than 10 years of research conducted by Don Alam, who was district conservationist for United States Department of Agriculture’s, Natural Resources Conservation Service and the board of supervisors for the Central Valley and Peñasco SWCD’s at the time. Alam retired in 1998 and has since returned, now working part-time for the district. - Linda Fresques, NMSU College of Engineering
(To read the complete article, click on the headline above)

Water and energy resources will be limiting factors
Water and energy are the two most fundamental resources of modern civilization and demands for each are increasing at what may be an unsustainable rate.

The world will need to find ways to conserve these vital resources, and soon, say David Pumphrey and Erik Peterson, both with the Center for Strategic and International Studies, a think tank in Washington, DC. They discussed energy and water issues recently at the Sourcing USA Summit in Austin. - Ron Smith, Farm Press Editorial Staff
(To read the complete article, click on the headline above)



ABOUT THIS NEWSLETTER

You are subscribed to this newsletter as #email#

To get this newsletter in a different format (Text or HTML), or to change your e-mail address, please visit your profile page to change your delivery preferences.

For questions concerning delivery of this newsletter, please contact our Customer Service Department at:
Customer Service Department
Corn & Soybean Digest and Farm Industry News
A Penton Media publication
US Toll Free: 866-505-7173 International: 847-763-9504 Email:cropnewsweekly@pbinews.com

Penton Media | 249 W. 17th Street | New York, NY 10011

Copyright 2008, Penton Media. All rights reserved. This article is protected by United States copyright and other intellectual property laws and may not be reproduced, rewritten, distributed, re-disseminated, transmitted, displayed, published or broadcast, directly or indirectly, in any medium without the prior written permission of Penton Media. About This Newsletter

To unsubscribe from this newsletter go to: Unsubscribe

To subscribe to this newsletter, go to: Subscribe

For information on advertising in Crop News Weekly, please contact: Roger Randall/a>.

Farm Industry News
Product of the Week




View and read about the Farm Industry News Product of the Week.

Click here to visit farmindustrynews.com




Corn & Soybean Digest
Market News



Richard A. Brock

Check out the latest corn and soybean market advice from marketing guru Richard Brock by visiting cornandsoybeandigest.com