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CROP NEWS WEEKLY
In the May 13, 2009 Issue:
Brought to you by the editors of
Corn & Soybean Digest and Farm Industry News
 Obama's biofuel initiative
 Obama budget riles farm groups
 REG Signs Agreement
 More on ag subsidies
 Safe trucking for agriculture
 Technology helps farmer efficiency
 Farmer's share of retail food dollar
 Wet soil leads to nitrogen loss?
 Insecticides provide benefits
 Is corn earworm becoming resistant?

EDITOR'S NOTE

Logan Hawkes
05/13/09

As hard as it may be to believe, the summer season is knocking at the door and still corn and soybean planting remains unfinished. Progress is being made, but heavy rains are contributing to slower-than-expected planting rates in parts of the Upper Midwest. But corn planting progressed nicely in April and early May, and a little help from Mother Nature this week and next should put the finishing touches to planting operations. Also this week, the Obama administration has announced a major, concerted push by the USDA, Department of Energy and EPA to support the development and expansion of domestic biofuels. On the other side of things, the Obama administration is continuing to push for a $500,000 cap on direct payments and a new limit on total farm program payments, a move that is not pleasing farm groups.

Read about these stories and more in this issue of Crop News Weekly. Happy reading.

FROM OUR EDITORS

Obama's biofuel initiative

The Obama administration has announced a major, concerted push by the USDA, Department of Energy and EPA to support the development and expansion of domestic biofuels.

The initial effort will be done through a working group between the three agencies with renewable fuel standards, emission-reduction targets and a host of other biofuel-related issues on the agenda.

“I’m excited about this opportunity because (President Obama) has directed us to create a comprehensive biofuel marketing development program to focus on the infrastructure necessary for this industry to be a permanent part of the American economy, and to do it in a sustainable way,” said USDA secretary Tom Vilsack during a May 5 press conference. - David Bennett, Farm Press Editorial Staff

FULL ARTICLE >>

Obama budget riles farm groups

The Obama administration is continuing to push for a $500,000 cap on direct payments, a new limit on total farm program payments and elimination of cotton storage credits in its budget proposals for fiscal year 2010.

Although the House and Senate budget committees rejected the proposals in their fiscal 2010 budget resolution Congress passed in April, administration officials again called for the reductions in the formal unveiling of its 2010 budget requests on May 6.

The latest request calls for Congress to eliminate direct payments to farmers with gross sales in excess of $500,000. That could mean a cotton producer with more than 870 acres of cotton would no longer be eligible for direct payments, according to budgets compiled by land-grant universities. - Forrest Laws, Farm Press Editorial Staff

FULL ARTICLE >>

REG Signs Agreement

Renewable Energy Group (REG) announced Monday it has entered into agreements to consolidate with three commercial‐scale biodiesel plants. Western Iowa Energy, which operates a 30-million-gallon/year (mgy) facility in Wall Lake, IA; Central Iowa Energy, LLC, which operates a 30-mgy facility at Newton, IA; and Blackhawk Biofuels, LLC, which operates a 45-mgy facility in Danville, IL, are involved in the transaction. The facilities represent an additional 105 mgy of wholly owned production capacity, which would allow the combined entity to better position itself to meet anticipated demand from the petroleum industry’s distillate fuel market. - Corn & Soybean Digest

FULL ARTICLE >>

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More on ag subsidies

Ask an American living in the city about U.S. agricultural subsidies and he or she is sure to go on and on about how U.S. farm policy is destroying the livelihoods of poor farmers around the world.

But a report from Texas Tech University’s Cotton Economic Research Institute shows that agricultural subsidies are more the norm rather than the exception for 21 developing and developed countries studied. The study focused on seven commodities: corn, cotton, rice, sorghum, soybeans, sugar and wheat.

Here are highlights from selected countries in the study which was released in April... - Elton Robinson, Farm Press Editorial Staff

FULL ARTICLE >>

Safe trucking for agriculture

The American Trucking Associations’ Agricultural and Food Transporters Conference (AFTC) recently released the “Manager’s Guide to Safe Trucking During Agricultural Planting and Harvest Season.”

The guide provides educational resources for truck drivers and their managers in the agricultural industry, encouraging active strategies to improve safety during peak times of production.

“Promoting safety is important in all agricultural operations but especially critical in the case of truck driving,” said Russell Laird, ATA’s Agricultural and Food Transporters Conference executive director. “Our members are glad to share their expertise and best practices with the whole agricultural industry to give them practical strategies they can implement to help improve safety.”

FULL ARTICLE >>

Technology helps farmer efficiency

Roy Burns started farming on his own in Navarro County, near Corsicana, Texas, in 1977 with a $15,500 tractor and a $2,500 planter. He grew wheat, milo and cotton on 200 acres of rented land. He added corn to the mix over the years and put in about 10 times more acreage this year than he did in 1977 — with a new $189,000 John Deere 8430 tractor and a $69,000 planter.

Times have changed. But his labor force is about the same as always. - Ron Smith Farm Press Editorial Staff

FULL ARTICLE >>

Farmer's share of retail food dollar

Did you ever wonder how much of the retail price of food you are getting on the farm? Now you can take a quick look based upon multiple products. Retail prices are based on store brand except where noted from Safeway, Washington, D.C., May 1, 2009. Change is in relation to the farmer’s share from the previous year. - Corn & Soybean Digest

FULL ARTICLE >>

Wet soil leads to nitrogen loss?

With the recent heavy rains across parts of Kansas, saturated soils have become common in many areas. This can potentially cause loss of nitrogen from the soil, said Kansas State University agronomist Dave Mengel.

"There have been a number of questions concerning potential loss of fertilizer nitrogen applied last fall, this winter, or earlier this spring, through leaching or denitrification. These two processes are quite different, and normally occur on different types of soils," said Mengel, who is a soil fertility specialist with K-State Research and Extension.

Denitrification loss is of much greater concern than leaching loss on wet, medium- to fine-textured soils, he said. Denitrification is the conversion of nitrate to gaseous nitrogen by soil microbes in low-oxygen, waterlogged soils. There are several conditions that must be met for denitrification to occur...

FULL ARTICLE >>

Insecticides provide benefits

A three-year study by the Crop Protection Research Institute (CPRI) has found that for every dollar spent by farmers on insecticides, $19 is returned. "The Value of Insecticides in U.S. Crop Production" also claims that without insecticides 31 of the 50 crops surveyed would see yields drop 40 percent, or more. Seven of the crops would experience yield losses of over 70 percent.

“Consumers are being more selective with what they buy,” said Jay Vroom, chairman of CropLife Foundation (CPRI is the research branch of the foundation), during a recent press conference. “However, food remains a necessity just as it was before this economic crisis. As a result, it’s even more important (for food) to remain affordable … so no American goes hungry or sacrifices a family’s nutrition.” - David Bennett, Farm Press Editorial Staff

FULL ARTICLE >>

Is corn earworm becoming resistant?

Growers in our area have been dependent on pyrethroids for controlling corn earworm (CEW) for many years in many crops including cotton, peanuts, soybeans, sweet corn, tomato and several other vegetable crops.

There is a large selection of pyrethroid insecticides ranging from ‘old-timers’ like Ammo, Ambush and Asana XL to newer ones like Karate, Warrior, Baythroid XL, Mustang Max, Danitol, Brigade, and Prolex. - Ames Herbert, Virginia Tech\Department of Entomology

FULL ARTICLE >>

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KENT THIESSE
CORN & SOYBEAN PLANTING DELAYED
Widespread rainfall across the upper Midwest from May 7 to 9 temporarily delayed the rapid pace of corn and soybean planting in southern Minnesota and northern Iowa. Much of the region received an inch or more of rain, which could lead to several days of planting delays in the areas with heavier rainfall amounts. Fortunately, the excellent planting conditions in late April and early May allowed most of the corn across the region to be planted by the first few days of May, which puts the planting dates on target for optimum corn yield potential in 2009. Planting conditions were almost ideal in many parts of the region, and much of the early planted corn has now emerged with very good plant stands.

Soybean planting is also well underway in southern Minnesota and northern Iowa, with about one-third to two-thirds of the soybeans planted, depending on the location. We are right in the heart of the ideal planting window for planting soybeans in the region. University and private research has shown that soybeans in southern Minnesota can be planted up until about May 20, with little or no negative impact on optimum yields. Yield impacts from later planting are fairly minimal until soybean-planting dates extend past June 1. - Kent Thiesse, Corn & Soybean Digest
MORE
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RICHARD BROCK
MIXED CORN PLANTING PROGRESS AGAIN
Corn producers in the western Corn Belt made decent planting progress last week despite wetter weather, but planting remained largely stalled across the eastern half of the production belt due to further heavy rains.

USDA pegged U.S. corn planting progress at 33% as of Sunday, up from 22% a week earlier and ahead of last year’s pace of 24%, but behind the five-year average of 50%.

Planting progress remained ahead of normal in Iowa, Nebraska and Minnesota as conditions dried enough to allow producers to get in the fields late in the week following heavy rains the previous weekend. MORE
MORE MAGAZINE HIGHLIGHTS
QUICK POLL QUESTION
This week's poll question is simple and straight forward: WHERE DO YOU TUEN MOST OFTEN FOR NEW IDEAS ON YOUR FARM?

* My farm partners/family
* Extension
* Farm Magazines
* Farm Magazine Web Sites
* Online Farm Forums
* My Neighbors

Log on now to the Corn & Soybean Digest and take our quick poll. We would all like to know your answer! (And check the current results while you're there)
VOTE NOW

SELL LAND AND GET OUT OF DEBT?
At a recent seminar, I was asked an interesting question from two participants. This couple is 59 years of age, has $2 million in assets and $800,000 in liabilities. Their son works on their farm while maintaining full-time employment. He is married with little desire for future farm ownership. The question of the day was, “Should we sell 200 acres of land at $4,000/acre and liquidate our debt?”

The husband said, “No, it will impact the efficiency of the business.” The wife, who was quite insistent on selling, indicated that in recent years they had little principal reduction despite good commodity prices. She was concerned about the future of the economy and interest rates, particularly at their age. He responded by indicating that he had upgraded his machinery line instead of reducing debt to minimize income taxes. Non-verbal communication between the couple became intense, and thank goodness I was interrupted by another person who wanted an answer to their question. - Dave Kohl, Corn & Soybean Digest
MORE

BURCON ANNOUNCES NEW SOY PROTIEN ISOLATE
Burcon NutraScience Corporation recently announced development of a soy protein isolate, branded Clarisoy.

Clarisoy is 100% soluble and transparent in acidic solutions, enabling applications down to pH 2.5. Clarisoy shows great promise for use in a variety of healthy and great tasting food and beverage applications and is expected to be price competitive, as well, which should be of great interest to food and beverage manufacturers currently dealing with high dairy protein prices.

Plant proteins represent an inexpensive and environmentally sound source of functional and nutritious food ingredients. They have long been used as an indirect source of protein for humans through their use as a feed ingredient for cattle, pigs and chickens. Today, plant proteins can be grown, isolated and purified, converting them to high-value food ingredients for human consumption at a fraction of the environmental and economic cost of animal proteins. - Corn & Soybean Digest
MORE

OBAMA ISSUES DIRECTIVE TO EXPEDITE BIOFUEL INVESTMENTS
President Obama today issued a presidential directive to USDA Secretary Tom Vilsack to “aggressively accelerate the investment in and production of biofuels.” This should be welcome news to everyone in the renewable energy industries—from crop producers to ethanol and biodiesel producers to biofuel industry equipment suppliers to ag equipment manufacturers.

I keep returning to Thomas Friedman’s book Hot, Flat, and Crowded in this blog, but the President’s directive today reminds me of what Friedman wrote—that America needs to move beyond a Code Red mindset toward a Code Green one where we are “united and propelled by a common purpose, not a common enemy.”

That common purpose, making this country the greenest one on Earth, “is a core national security and economic interest,” Friedman writes.

The Obama Administration “gets” that, as evidenced by today’s directive. Moreover, in line with the directive, the USDA, EPA and DOE will form an interagency working group to increase America’s energy independence and spur rural economic development. - Lynn Grooms, Farm Industry News
MORE

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