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.
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
FULL ARTICLE >>
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.
FULL ARTICLE >>
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.
FULL ARTICLE >>
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).
FULL ARTICLE >>
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.
FULL ARTICLE >>
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.”
FULL ARTICLE >>
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
FULL ARTICLE >>
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.
FULL ARTICLE >>
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RICHARD BROCK
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.
One producer shared his situation that illustrated the volatility of the
times economically on farm and ranch businesses. His business is a
combination of corn, beans, wheat, hogs and beef. This past year, his
accrual-adjusted net profits were approximately $350,000 after deciding
to leave the hog barns vacant because of the short-term economics of
this industry. - Dave Kohl, Corn & Soybean Digest
MORE
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
MORE
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
MORE
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
MORE
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. - Lynn Grooms, Farm Industry News
MORE
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