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.
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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RICHARD BROCK
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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