Crop News Weekly: Great (Corn) Expectations

Spring has sprung and farmers in the South have an early jump on the planting season. In spite of the recent cold snap across the Midwest, early prep is already underway and growers are not far behind in dropping seed as early as possible. Exactly when that might be is still up in the air, but already moist Gulf air is pumping in from the south across much of the middle nation and when the moment arrives, farmers will be ready.

In the news this week, the political environment remains up in the air, much the same as the weather these days. There's plenty of talk and a lot of "positioning" going on as the new Administration struggles with the failing economy. Change is in the air for certain, but how and to what degree it will affect agriculture remains to be seen. Also this week, as sure as spring is in the air, the last minute rush is on for the right equipment and implements, for seed, fertilizer and so forth. Will there be plenty of everything to go around? And at what cost?

Thanks for joining us this week as we explore these and other issues in Crop News Weekly. Happy reading.

Low oil prices, an increase in the value of the U.S. dollar and record low numbers for the livestock industry all play key roles in determining what price commodities will trade and subsequently how many acres of which crop growers will plant, according to one industry expert.

Jim Sullivan, senior vice-president of Informa Economics, says the strengthening of the U.S. dollar is likely to drive corn exports down by as much as 35 percent in 2009. This is a primary reason many analysts have lowered corn acreage projections by 10-12 percent for 2009. - Roy Roberson Farm Press Editorial Staff

When the Obama administration’s fiscal 2010 budget proposals reach Congress, the agricultural portion will likely face a wall of bipartisan opposition.

Two senators — one from each party — have written a letter to Senate Budget Committee Chairman Kent Conrad asking him to oppose any farm program spending cuts or other attempts to reopen the 2008 farm bill.

The letter, drafted by Arkansas Democrat Blanche Lincoln and Kansas Republican Pat Roberts, was signed by four Democrats and 11 Republicans representing states as diverse as Montana and Mississippi. - Forrest Laws, Farm Press Editorial Staff

John Deere recently introduced a new 120-foot planter that can seed from 90 to 100 acres per hour. The planter, which will be made at the Bauer Built Manufacturing plant in Paton, Iowa, will sell for $345,000.

About 80 miles to the southeast, in Ankeny, Iowa, Deere is beginning to build its new 7760 cotton picker. The picker, which packs the cotton into round modules, will list for more than $600,000.

I’m not picking on Deere (no pun intended) or Bauer. Case IH is assembling axial flow combines that sell for more than $400,000 to the west in Nebraska and its own Module Express 625 cotton picker in Minnesota. Each bases their pricing on production costs and perceived value in the market place. - Forrest Laws, Farm Press Editorial Staff

Despite “remarkable course changes” in the food-versus-fuel debate that occurred in 2008 when oil and many agricultural prices reached record levels, “the key drivers of food prices and their complex interactions remain the same now,” according to a new report from the Farm Foundation.

The new study by Purdue University economists Phil Abbott, Chris Hurt, and Wally Tyner, updates the July 2008 report, “What’s Driving Food Prices”. That report attributed the sharp rise in consumer food prices to three major forces. - Hembree Brandon, Farm Press Editorial Staff

Wakita, Okla., farmer Rodney Hern says if after five years of no-till farming he would have had to go back to conventional farming — he would have just quit.

He kept at it and now with 14 years of no-till production under his belt, he’s saving a significant amount of money compared to conventional tillage. He figures conventional production would cost almost $52 an acre. His no-till production costs run just over $29. - Ron Smith, Farm Press Editorial Staff

VeraSun Energy’s selection of Valero Renewable Fuels as the successful bidder for several Midwest ethanol production facilities, confirmed today by the U.S. Bankruptcy Court, was noted by farmers concerned about their contracts to provide corn. While the National Corn Growers Association (NCGA) expects most 2008 VeraSun contracts to be voided as a result of the auction, it recommends affected farmers confirm this with their local buyers.

“We know there are still many questions to resolve about the 2008 corn contracts,” says NCGA Chairman Ron Litterer, who is leading an ad-hoc committee of corn farmers to represent the interests of the U.S. corn industry in the VeraSun bankruptcy proceedings. “We are relieved these plants are not being shuttered, and hope that as the economy rebounds improvement will be seen in the ethanol industry and rural America.” - Corn & Soybean Digest

South-central Kansas farmer Lee Scheufler likes new technology for improving weed control in no-till crop production.

“With no-till, chemical weed control is essential,” Scheufler said during the No-till Oklahoma Conference in Oklahoma City. “Spraying and sprayers are crucial for success."

He, like other farmers on the program, said producers can easily justify owning a sprayer because of the advantage it gives them on timely applications. “A grower can hire spraying done and be successful, but owning a sprayer allows for timing flexibility.” - Ron Smith, Farm Press Editorial Staff

We recently celebrated National Agriculture Day, honoring the innumerable contributions rural America has made to our country. In Mississippi, rural interests are central to our state’s culture and economy. Agriculture is the state’s number one industry, and directly and indirectly employs nearly one-third of its workforce.

Just like urban areas, rural America faces challenges unique to its communities that require their own set of considerations and solutions. The White House has created an Office of Urban Policy, but it currently lacks a rural counterpart. That’s why my colleagues and I who serve on the Congressional Rural Caucus sent a letter to the president calling for an Office of Rural Policy.

I recently joined Rep. Adrian Smith, R-Neb., in reestablishing and co-chairing the Rural Caucus, along with Vice Chairs Reps. Tim Walz, D-Minn., and Glenn Thompson, R-Pa. The Rural Caucus is comprised of a bipartisan group of members dedicated to addressing the significant challenges that are unique to rural communities today, including education, health care, and telecommunications. Mississippi Reps. Gene Taylor and Bennie Thompson are among the nearly 80 members who currently serve on the caucus. - Congressman Travis W. Childers

When a small city or town considers adding an ethanol plant or biorefinery to their community, often times it’s the financial and property capital that’s counted. But what are the cultural and social effects on the community? That’s what University of Illinois Professors Gale Summerfield and Stephen Gasteyer and graduate student Keith Taylor are analyzing in two real-life cases in Illinois. - Corn & Soybean Digest

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