CROP NEWS WEEKLY Penton Media April 29, 2009 Volume 9, Issue 17 If you want to view this on the web go to: http://enews.penton.com/enews/cropnewsweekly/v/323 EDITOR'S NOTE Logan Hawkes 04/29/08 As April comes to a close corn planting is progressing across the Midwest. Rainy weather has caused some delays, but with the merry month of May knocking at the door, producers across the nation are in full swing for the new crop season. So much attention this week is being focused on the global swine flu epidemic that's it hard not to begin this issue with that topic in mind. With Russia and China's announcement that they will stop accepting deliveries of swine from Texas and California, already the issue is having an adverse affect on agriculture. To what extent that may go, no one seems certain. In the days and weeks ahead we will keep our eye on it for you. In this issue, how are crop subsidies in the global marketplace affecting U.S. exports? This week we take an inside look into one example. Also, there's a new FSA Administrator. Meet him in this issue. And we've got the latest about the growing myth of ethanol and food prices. Catch up with the latest. You'll find these stories and more in this issue of Crop News Weekly. Happy reading. FROM OUR EDITORS --Swine flu and the farm No pigs have been found with swine flu (now known as H1N1) -- only humans. But pork producers need to take precautionary measures to protect their herds from being infected with any flu virus, says Sandy Amass, a Purdue University veterinarian. "Flu viruses are named after the first animal they were found in," says Amass. "This particular strain just happened to be discovered in pigs in 1930, and this is the only reason it's called swine flu. We don't even know if the virus found in humans will infect pigs." At this point, the new H1N1 virus has not been found in the U.S. pig population, says Amass, who specializes in swine production medicine. Amass has three recommendations for pork producers. - Corn & Soybean Digest To view the full article go to: http://cornandsoybeandigest.com/ag-issues/0428-swine-flu-info/ --Ethanol and water do mix A recent study from the University of Minnesota claims that ethanol production is resulting in a dramatic increase in water use, larger than was previously thought. However, by looking at water use in isolation, the report fails to take into account numerous factors that must be part of the water use discussion. "Expansion of America's renewable fuels industry is occurring with the most efficient use of natural resources like water in mind," said Renewable Fuels Association President Bob Dinneen. "Ethanol producers are investing in new technologies that reduce water use, improve efficiency, and employ feedstocks in addition to grain for ethanol production. It is important that these worst-case scenarios offered by the University of Minnesota are not allowed to overshadow the improvements being made in farming and renewable fuel technologies." Context is critical when discussing water use. Notably, the paper fails to mention or explore in depth key factors. To view the full article go to: http://southwestfarmpress.com/energy/ethanol-water-0428/ --Crop subsidies outside the U.S. U.S. agriculture subsidies may get lambasted by the international press for suppressing farm prices abroad, but a study by Texas Tech University economists finds that developing countries are equally, if not more, prone to protecting their agricultural sectors. Researchers in Texas Tech's Cotton Economics Research Institute studied the agricultural subsidies and protection applied by 21 countries to seven major crops: corn, cotton, rice, sorghum, soybeans, sugar and wheat. The resulting report, Crop Subsidies in Foreign Countries: Different Paths to Common Goals, found that while policy tools employed by governments may differ, agricultural support is increasing not only in industrialized countries such as the U.S. or Australia, but in developing economies such as those of China or Brazil. To view the full article go to: http://southwestfarmpress.com/news/crop-subsidies-0423/ --Reviewing checkoff programs The soybean checkoff takes its investment of farmer checkoff dollars very seriously and as a result is continuously reviewing its own programs to ensure effectiveness and efficiency. The United Soybean Board (USB) Audit and Evaluation (A&E) Committee is charged with reporting to the board the outcomes of any audits and evaluations performed on behalf of the soybean checkoff. Each year the A&E program will do five to eight compliance reviews of the Qualified State Soybean Boards (QSSBs). These compliance reviews are intended to assist each QSSB with making sure its work is compliant with the Soybean Promotion, Research and Consumer Information Act (Act & Order). To view the full article go to: http://southeastfarmpress.com/soybeans/soybean-research-0424/ --Caruso new FSA administrator Agriculture Secretary Tom Vilsack has announced the appointment of Doug Caruso as administrator of the United States Department of Agriculture's Farm Service Agency. FSA administers and manages farm commodity, credit, conservation, disaster and loan programs through a network of federal, state and county offices. These programs are designed help producers manage their business risks and improve the stability and strength of the domestic agricultural economy. "As FSA state executive director in Wisconsin for eight years, Doug Caruso compiled an impressive record of improving client services and enhancing outreach to historically underserved farmers," said Vilsack. To view the full article go to: http://deltafarmpress.com/legislative/caruso-fsa-0423/ --Avalos: USDA marketing post President Barack Obama will nominate Edward M. Avalos as undersecretary for marketing and regulatory programs at USDA. If confirmed, Avalos will serve with Agriculture Secretary Tom Vilsack. "Edward Avalos has spent a lifetime in agriculture, including 34 years in agricultural marketing," said Vilsack. "He has spearheaded innovative marketing techniques which have improved the economic viability of rural areas and established export marketing programs which have placed American crops on tables around the world. "He brings extensive knowledge and a successful track record in both domestic and international marketing. We're pleased to have him join the Obama Administration team at USDA as we meet the challenges and find the opportunities in the food and agriculture sectors in the 21st Century." To view the full article go to: http://southwestfarmpress.com/news/avalos-marketing-post-0424/ --Soybean rust distribution map Since soybean rust was introduced in the fall of 2004 in the United States, Kentucky farmers have seen no yield loss as a result of the disease. However, as soybean producers gear up for planting, they should be aware the U.S. soybean rust distribution map looks significantly different from a year ago, said a plant pathologist in the University of Kentucky College of Agriculture. "I'm not saying soybean rust will be a problem this season, but the current location of soybean rust in the U.S. does merit our attention," said Don Hershman, UK Extension plant pathologist. Since 2005, soybean rust has been found in very low levels in the state toward the end of the growing season. By the time it developed, it was too late in the growing season and the state's soybean crop was mature enough it was not affected by the disease. - Katie Pratt, University of Kentucky To view the full article go to: http://southeastfarmpress.com/soybeans/soybean-rust-0424/ --Weed control advances The American Soybean Association sent out a news release dated April 2 announcing acceptance by the Korean Food and Drug Administration of both the Roundup Ready 2 Yield soybeans and Bayer's LibertyLink soybeans. This regulatory approval was the final step to allow unrestricted planting in the United States and the importation into all of the major markets. The Roundup Ready 2 Yield soybeans represent a step up in glyphosate tolerance and the opportunity to develop higher yielding varieties. - Ford L. Baldwin, Practical Weed Consultants, LLC. To view the full article go to: http://deltafarmpress.com/soybeans/soybean-weed-control-0424/ ---------------------------------------- Quilt(R) fungicide combines the Power of Two_ industry leading brands, Quadris(R) and Tilt(R) fungicides, to deliver complete disease protection and help your corn crop reach its full yield potential. Combining preventive and curative activity, Quilt helps improve Plant Performance_ by offering long-lasting residual control of foliar diseases and improved plant physiology. Click here to learn more. www.quilt-fungicide.com ---------------------------------------- ---------------------------------------- Success depends on performance. Late nights, early mornings and healthy crops aren't much without the bushels to back it up. Quilt(R) and Quadris(R) give you the Plant Performance_ you need to control disease while securing higher yields, good returns and an easier harvest. In a results-oriented business, these are just the results you need. Click here to learn more. www.plantperformance.com ---------------------------------------- ---------------------------------------- Win a trip to see how soybeans are grown in Brazil. Enter the CruiserMaxx(R) Beans Farmer Swap Sweepstakes and learn firsthand about the similarities and differences in agricultural practices between the United States and Brazil. Grand prize is a trip to Brazil where you'll tour fields and visit with local growers and experts. Secondary prizes include trips across the U.S. Enter to win before June 15, 2009, at CruiserMaxxFarmerSwap.com. ---------------------------------------- KENT THIESSE ---------------------------------------- CORN PLANTING PROGRESSES The corn crop in southern Minnesota was planted in near-record fashion during a 10-day period from April 15 to 24. Nearly ideal planting weather during most of that period resulted in 75-80% of the corn being planted as of April 24 in many portions of south-central Minnesota. Many producers finished their corn planting by that date, and were waiting a bit to begin planting soybeans. Based on university and seed company research, the ideal window to plant corn in for optimum yield potential in southern Minnesota is April 20 to May 5, so most corn in that region will likely be planted in that window for the 2009 growing season. Corn planting has not progressed as rapidly in central Minnesota, where wetter soil conditions and colder soil temperatures have slowed the planting progress somewhat. http://cornandsoybeandigest.com/kentthiesse/04277-corn-planting-progress/ ---------------------------------------- RICHARD BROCK ---------------------------------------- CHINA SEEN EXTENDING DOMESTIC SOY BUYS China is expected to extend state purchases of domestic soybeans by two months beyond the scheme's planned April expiry; but it is unclear whether the move will have a significant market impact. Some Chinese traders see limited impact from the move because, while the government purchase period will likely be extended through June, the amount of government purchases is not likely to be changed. "It could just be a gesture to (support prices), but it doesn't have much actual meaning," Yu Haifeng, an analyst with Tianqi Futures told Dow Jones Newswires. Estimates are that the government is still 1-2 million metric tons (mmt) short of the 6-mmt target it set earlier for domestic soybean purchases and likely won't reach that goal by the end of April as the moisture content of most soybeans being offered for sale by producers is too high to meet government standards. http://cornandsoybeandigest.com/richardbrock/0420-china-extend-soybean-purchases/ ---------------------------------------- MORE MAGAZINE HIGHLIGHTS ---------------------------------------- PROFITABLE AND UNPROFITABLE IN THE BLINK OF AN EYE This past fall and winter I participated in a Web cast series for producers facilitated by the Minnesota Farm Business Management instructors and supported by many local banks, Farm Credit associations and agribusiness groups. I presented five one-hour Web casts, spaced out over five months. Each Web cast incorporated a question-answer session and pre- and post-webcast individual assignments and group work to facilitate networking at the various sites. - Dave Kohl, Corn & Soybean Digest SWINE FLU OUTBREAK IMPACTING CROP MARKETS Swine flu has already had an impact on U.S. crop markets, says Darrel Good, a University of Illinois Extension marketing specialist. "In the first trading session following the announcement of incidences of swine flu in Mexico and the U.S., corn, soybean and wheat futures declined sharply," says Good. "Market participants reportedly are concerned that the threat of swine flu will reduce pork demand, stimulating further liquidation of hog numbers and resulting in reduced feed demand." Such negative reaction, Good notes, is typical with episodes that create so much uncertainty. "Russia reportedly announced restriction on pork imports from Mexico and selected origins in the U.S.," he says. "Restrictions by other importers would not be surprising. - Corn & Soybean Digest http://cornandsoybeandigest.com/ag-issues/0427-swine-flu-impact/ RAINS COULD FURTHER DELAY CORN PLANTING Spring crop planting delayed by cold weather in early April faces more delays by late-April rainfall, says Pat Guinan, University of Missouri (MU) climatologist. Cool temperatures kept soils from warming and delayed corn planting across much of the state in early April. In Columbia, the first 14 days of April were the tenth coldest for that period in 120 years, says Guinan, a weather specialist with the MU Commercial Agriculture Program. Cool air kept soil temperatures in the 40s, except in the Bootheel. "We need soil temperatures at least 50_ for corn planting," says Bill Wiebold, MU Extension agronomist. "Warm, moist soils encourage rapid seed germination and plant emergence soon after planting." - Corn & Soybean Digest http://cornandsoybeandigest.com/corn/0427-corn-planting-delay/ MYTH OF ETHANOL AND FOOD PRICES What a difference a year makes -- unless you're a grocery manufacturing company or oil conglomerate CEO. A few months ago, farmers couldn't pick up a magazine or turn on the TV without being lambasted with reports of ethanol driving up food prices. The Congressional Budget Office has released a report entitled, "The Impact of Ethanol Use on Food Prices and Greenhouse-Gas Emissions," which says increased ethanol production caused food prices to rise by a whole 0.5 to 0.8 of a percentage point in 2008. The reaction of the media: A big yawn. Typical of the near hysteria generated last year was a Time magazine article, "The Clean Energy Scam," that blamed increases in biofuels for rising food costs. If the editors of Time even noted the findings of the CBO report, they did a good job of hiding it. - Corn & Soybean Digest http://cornandsoybeandigest.com/biofuels/0424-ethanol-food-prices-myth/ BIO FIGHTS FOR ADVANCED BIOFUELS "The U.S. and world economies have evolved over 100 years to rely on petroleum. It will take time to transform the entire economy to rely on biomass instead," says Brent Erickson, executive vice president of the industrial and environmental section of the Biotechnology Industry Organization (BIO), www.bio.org. Complicating matters is that with current economic woes, the investment community is more than a little gun shy. Investments in the biobased industry, as in other businesses, have slowed down. For this reason, BIO, which represents 1,200 biotech companies, academic institutions and state industry development organizations, is fighting for major federal investments in the commercialization of advanced biofuels and biobased products. In fact, BIO recently took several policy recommendations to legislators on Capitol Hill. - Lynn Grooms, Farm Industry News http://blog.farmindustrynews.com/biofuellines/ ---------------------------------------- ABOUT THIS NEWSLETTER You are subscribed to this newsletter as #email# To subscribe to this newsletter go to: http://subscribe.cropnewsweekly.com/?tc=NLSUB To unsubscribe from this newsletter go to: http://subscribe.cropnewsweekly.com/?tc=NLSUB&cid=#message_id#&lid=#list_id#&email=#email# For information on advertising in Crop News Weekly, please contact: Roger Randall at mailto:roger.randall@penton.com For questions concerning delivery of this newsletter, please contact our Customer Service Department at: US Toll Free: 866-505-7173 International: 847-763-9504 or mailto:cropnewsweekly@pbinews.com To get this newsletter in a different format (Text or HTML), or to change your e-mail address, please go to your profile page here: http://subscribe.cropnewsweekly.com/?tc=NLSUB&email=#email# Penton Media | 249 W. 17th Street | New York, NY 10011 Copyright 2009, 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.