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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!
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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)
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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)
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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)
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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)
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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)
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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)
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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)
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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
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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)
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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)
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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)
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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.
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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)
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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)
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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)
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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)
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