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CROP NEWS WEEKLY
In the April 15, 2009 Issue:
Brought to you by the editors of
Corn & Soybean Digest and Farm Industry News
 New limits missing in budget plans
 NCGA applauds CBO findings
 North Dakota cropland values
 Soybean exports at record level
 Crop marketing train wreck coming
 E10, E20 safe for engines
 Members take oath of office
 Late planting spiking fertilizer prices
 Soybean rust, fungicide update
 ACRE signup begins April 27

EDITOR'S NOTE

Logan Hawkes
04/15/09

Watching the Cable News this week reveals there is still a serious problem in the world with piracy. And while piracy on the high seas is not particularly related to farming, leave it to a farm boy like me to make the connection. It's a stretch perhaps, but with all the political positioning on agriculture issues in recent months and years, I am reminded of the pirate tactics of those Somali sailors. While Washington may not be using a fast boat and automatic weapons to hold farmers ransom, the back-and-forth policy changes and political intentions make for a similar predicament. One moment we're sailing along in calm waters, and the next we're being hijacked by policy suggestions that threaten to 'rock the boat'. I'm not saying farm policy reform is not needed. But there must be a better way to achieve the same goal without all the political theatrics.

Once again we're loaded up with lots of ag news and issues you will find useful. And don't forget to check out our video pick of the week, and take a moment to log in and participate in our monthly survey. Now, dig in and make yourself at home. And thanks for reading this issue of Crop News Weekly.

FROM OUR EDITORS

New limits missing in budget plans

The chances the Obama administration — and some Midwest, farm-state senators — will be able to impose new limits on spending on farm programs appear to be growing dimmer for the 2010 fiscal year.

In his budget message earlier this year, the president said he wanted Congress to phase out direct payments to farmers with more than $500,000 in gross annual sales and limit total farm program payments to $250,000 per individual.

Neither of those provisions made it into the fiscal 2010 budget plans passed by the House and the Senate on April 3. Both were passed along party lines, by a vote of 55-43 in the Senate and 233-196 in the House. - Forrest Laws, Farm Press Editorial Staff

FULL ARTICLE >>

NCGA applauds CBO findings

National Corn Growers Association (NCGA) President Bob Dickey released the following statement on the Congressional Budget Office’s April 8 report, “The Impact of Ethanol Use on Food Prices and Greenhouse-Gas Emissions:”

“We applaud this report, the next chapter in a growing narrative that shows ethanol is not principally responsible for higher food prices despite what food companies have tried to make consumers believe during the past 12-18 months.

“The report found that the increased use of ethanol accounted for 0.5-0.8 percentage points out of the 5.1% increase in food prices between April 2007 and April 2008, representing 10-15% of total food price increases. - Corn & Soybean Digest

FULL ARTICLE >>

North Dakota cropland values

A recent survey indicates that North Dakota cropland values continued their run higher, but at a lesser rate than the previous year.

"The increase was about 16% (from January 2008 to January 2009), compared with a 20% increase the previous year," says Andrew Swenson, North Dakota State University Extension Service farm management specialist. "The latest increase puts the average cropland values at around $925/acre, compared with$800 the previous year."

Swenson bases his calculations on surveys conducted in January by the North Dakota Agricultural Statistics Service. - Corn & Soybean Digest

FULL ARTICLE >>

Soybean exports at record level

USDA is projecting record soybean exports and lower ending stocks for old crop soybeans and corn. The April 9 World Agricultural Supply and Demand Estimates also projected improved export prospects for old crop cotton and the lowest ending stocks for rice in 10 years.

Projected U.S. soybean exports for 2008-09 were increased 25 million bushels to a record 1.21 billion bushels, reflecting strong year-to-date shipments and outstanding sales, and prospects for reduced export competition from South America as the Argentina soybean crop continues to deteriorate.

Soybean production for Argentina is projected at 39 million tons, down 4 million tons due to lower harvested area and yields. Soybean production for Brazil remains unchanged at 57 million tons. - Elton Robinson, Farm Press Editorial Staff

FULL ARTICLE >>

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Crop marketing train wreck coming

As our historic bull market rumbles to a possible end, producers find themselves traveling down two very different marketing paths. One will prove to be extremely dangerous with each season bringing the risk of a marketing catastrophe, while on the other path producers enjoy unprecedented long-term stability. Some may be able to move to the safer path in time, but others will not.

As a marketing advisor with over 30 years of experience, I believe we are headed for a difficult sorting out period in agriculture. Much like the mid-80s, we may see good producers fall by the wayside and our ag lending community severely stressed.

This time the test will come on the marketing side, and it promises to be quick and brutal. Once the wreckage is cleared away, I expect the way farmers manage marketing risk will be forever changed. - Steven H. Scott, Scott & Associates, Agricultural Marketing, Inc.

FULL ARTICLE >>

E10, E20 safe for engines

A research project conducted on car engine parts showed no damage unique to an ethanol-blended gasoline when compared to unleaded gasoline. In fact, the ethanol-blended fuels cleaned the fuel pumps while the pumps in gasoline were dirty. The researchers at the Minnesota Center for Automotive Research at Minnesota State University, Mankato, MN, conducted the tests. They ran eight models of fuel pumps and three models of sending units in gasoline, E10 and E20 fuels for 4,000 hours. Most of the tests showed no difference between wear on the parts and the fuel. - Farm Industry News

FULL ARTICLE >>

Members take oath of office

Three members of Agriculture Secretary Tom Vilsack’s subcabinet, who were confirmed in early April by the U.S. Senate, have been officially sworn into office.

“These are exceptional individuals who I am proud to say will be serving in USDA’s top leadership,” said Vilsack. “They have extensive experience in food and agricultural issues, policy-making and civil rights, as well as a strong personal commitment to the president’s goals for 21st century food and agriculture.

FULL ARTICLE >>

Late planting spiking fertilizer prices

As planting time approaches farmers in the upper Southeast continue to struggle with the question of what to plant and how to grow the crops they do plant.
A result of these delays may be local shortages and price spikes on fertilizer as dealers struggle to sell high priced inventory and to find and finance lower-priced fertilizer inventories.

Long-time economist and ag analyst Glen Buckley, who works for CF Industries, says growers are not likely to see an industry-wide spike in fertilizer prices on the scale that occurred in 2008. However, he says the overall trend in fertilizer prices is up over the next few years. - Roy Roberson, Farm Press Editorial Staff

FULL ARTICLE >>

Soybean rust, fungicide update

The following information on soybean rust and fungicides was released by Tom Allen on April 7. Allen, a plant pathologist, is an assistant Extension/research professor at the Delta Research and Extension Center in Stoneville, Miss.

“I wanted to take a couple of minutes to send a quick update. All 22 (soybean rust) sentinel plots have been established throughout Mississippi. We have been able to look at most of the plots, and the seed has germinated, stands have emerged and range from 70 to 100 percent full stand.

FULL ARTICLE >>

ACRE signup begins April 27

Agriculture Secretary Tom Vilsack has announced that producers can elect and enroll in the Average Crop Revenue Election program, a provision of the 2008 farm bill, beginning April 27.

ACRE has become a hot topic since it was included in the 2008 farm bill passed by Congress last June. Although many farmers have said they may not participate in the program, interest has been high in what it would entail once USDA announced the program rules.

FULL ARTICLE >>

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KENT THIESSE
ACRE PROGRAM SIGNUP BEGINS
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 new ACRE program, as an alternative to the current counter-cyclical payment (CCP) 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 CCP calculations. The USDA Farm Service Agency (FSA) has now released most of the official rules and regulations for the new ACRE program. The ACRE program information is available at County FSA offices and on the USDA FSA web site (listed below).

Signup for the new ACRE program will start April 27 at county FSA offices, and will continue until Aug. 14, 2009. Producers may sign up for the 2009 direct and counter-cyclical payment (DCP) farm program at any time at their county FSA office and wait until a later date to decide on enrollment in the ACRE program. Producers who have already enrolled in the DCP program may now sign-up for the ACRE program starting April 27 until Aug. 14, 2009. Given that USDA has not yet finalized how farm-level yield guarantees will be determined, and the fact that final 2009 price guarantees will not be finalized until Oct. 1, 2009, there is no hurry to enroll in the ACRE program right on or after April 27.
MORE
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RICHARD BROCK
LOWER GRAIN, SOY CARRYOUTS EXPECTED
The grain trade is expecting USDA to lower its 2008-2009 U.S. carryout estimates for corn, soybeans and wheat slightly in the monthly supply/demand update that due out on Thursday morning based on last week’s March 1 stocks estimates.

USDA seems almost certain to cut projected old-crop soybean ending stocks further after pegging March 1 stocks 132 million bushels below a year earlier. That stocks estimate implied record quarterly soybean usage.

Trade estimates of 2008-2009 soybean ending stocks average 169 million bushels in a range from 101 million to 185 million bushels compared with USDA’s March estimate of 185 million bushels and last year’s carryout of 205 million.
MORE
MORE MAGAZINE HIGHLIGHTS
THE FIVE C's OF PERSONAL FINANCIAL MANAGEMENT
When a farmer or rancher needs a loan, the lender will frequently discuss the five C’s of credit: character, capital, capacity, collateral and conditions. However, there are also five C’s of personal financial management: careful budgeting, collaboration, compromise, communication and counseling.

When I taught agricultural finance at Virginia Tech, I required students to track their personal expenses for one week. In many cases, students thought this was a silly and elementary task for juniors and seniors at the university level; however, comments on final course evaluations showed that this exercises was very valuable.

Monthly household budgets are critical for farmers and ranchers. Living expenses are now ranging from $50,000 to $65,000 annually and increasing at a 7% annual rate. Couples who have different money-management styles will challenge this process just like my students. Planning throughout the year and comparing projected budgets to actual results will provide a good guide to where the money is going and which expense categories are the budget busters. - Dave Kohl, Corn & Soybean Digest
MORE

TAKE OUR SURVEY
Each month the Corn & Soybean Digest offers an ag community poll question designed to keep you informed about what other producers are thinking about a particular farm topic. This month, our quesion is: "What is your main limiting resource?" The answer-chioces include:

* TIME
* OPERATING CAPITAL
* KNOW HOW USING NEW TECHNOLOGIES

So far, farmers are saying "TIME" is the most limiting factor, followed by "OPERATING CAPITAL". Log in and cast your opinion, and check out the latest results.
VOTE HERE

INTEREST IN NON-BIOTECH SOYBEANS GROWING
Cheaper seed and lucrative premiums are driving more crop producers to plant non-biotech soybeans this year.

U.S. soybean production is 95% dominated by biotech Round Up Ready soybeans. However a small percentage of that crop – perhaps 5% – will be planted to non-biotech soybeans, and the trend toward the latter is expected to continue in the near future, says Jim Beuerlein, Ohio State University Extension agronomist.

"Round Up Ready soybean seed is becoming expensive and there are a number of markets, both stateside and internationally, that want non-biotech varieties and they are willing to pay the premiums for it," Beuerlein says. "So with premiums more than $1/bu., that's $50 extra income/acre, and non-biotech seed has been historically cheaper than Round Up Ready seed to begin with. So we've got two things that are sparking grower interest: cheaper seed and the grain is worth more." - Corn & Soybean Digest
MORE

MONSANTO, DUPONT SPAR OVER RR TRAIT
Monsanto and DuPont’s Pioneer Hi-Bred are at odds over how Roundup Ready technology is being used in Pioneer’s new herbicide-resistant soybeans. In recent regulatory filings, Monsanto says Pioneer is not authorized to use the RR trait in the Optimum GAT trait in soybean varieties. The company is requesting that Pioneer stop its use of the stacked glyphosate-tolerant trait in soybeans. Pioneer has said that this trait will be available for sale in 2011 and they don’t anticipate a change in that introduction. - Farm Industry News
MORE

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