CROP NEWS WEEKLY Penton Media June 24, 2009 Volume 9, Issue 24 If you want to view this on the web go to: http://enews.penton.com/enews/cropnewsweekly/v/332 EDITOR'S NOTE Logan Hawkes 06/24/09 In spite of the late planting of corn and some soybeans in parts of the Midwest the growing season is well underway and early reports indicate the weather, at least for the moment, is cooperating and promoting growth. The next order of business would be a few more showers now that fields are seeded - and the hope for an extended summer. The long planting days have now turned into the long growing days, and last week's solstice reminds us the clock is ticking for a healthy crop before harvest arrives a few months away. And so the world turns. As always, we're loaded up with news and issues this week you will find interesting and useful. Dig in and get started -- and thanks for reading Crop News Weekly FROM OUR EDITORS --EPA Challenged: Land Use If the situation wasn't so serious, it would almost be funny. The U.S. economy, by any measurement, is in a heckuva mess. The country has lost 6 million non-farm jobs since 2007. On top of that, gasoline prices have begun moving up again as oil companies take advantage of increased summer driving. So someone at the Environmental Protection Agency has decided this country's energy future should be held hostage to Brazilian subsistence farmers who might want to whack down a few more acres of Amazon rainforest. Farm and alternative fuel representatives tried to make nice with EPA during two days of hearings on its Proposed Rule for Changes to Renewable Fuel Standard Program June 8 and 9. But their frustration with the agency's fixation on "indirect land use change" showed through at times. The Renewable Fuels Association's Bob Dinneen said EPA's lifecycle greenhouse gas (GHG) analysis of biofuels, including emissions from ILUC, is puzzling at best. "No evidence exists biofuel production in the U.S. has influence over land use decisions in other countries, and we have deep concerns over EPA's methodology," he said. - Forrest Laws, Farm Press Editorial Staff To view the full article go to: http://deltafarmpress.com/biofuels/laws-column-0622/ --It pays to furrow dike Furrow diking not only saves water, but reduces irrigation costs to a point where it makes economic sense, according to Agricultural Research Service scientists. Furrow diking is a tillage system where soils are plowed into ridge-like barriers running alongside row crops. The ridges hold irrigation and rain water, allowing it to soak into the soil instead of washing away. Agronomist Russell Nuti at the ARS National Peanut Research Laboratory in Dawson, Ga., is exploring the use of furrow diking in the Southeastern United States, where runoff is a problem and water is a valued commodity. Farmers in the Southeast must irrigate to supplement rainfall, but reducing runoff would reduce the need for irrigation. To view the full article go to: http://deltafarmpress.com/news/furrow-dike-0623/ --Farmers look at energy use About 40 Central Virginia farmers got insights into how to make their operations more energy efficient at a recent conference. "Managing Energy on Virginia Farms" was held at the Cumberland County Community Center. Sponsors were Virginia Cooperative Extension; James Madison University; the Virginia Department of Mines, Minerals and Energy; the Virginia Foundation for Agriculture, Innovation & Rural Sustainability; and Virginia Tech. Speakers addressed agricultural lighting and fan ventilation, wind and solar energy and U.S. Department of Agriculture energy programs and funding during the first half of the daylong conference. To view the full article go to: http://southeastfarmpress.com/news/farm-energy-0619/ --Ferrell named to USDA post Agriculture Secretary Tom Vilsack announced the appointment of John Ferrell, a native of Iowa and graduate of Northwest Missouri State University, as deputy undersecretary for marketing and regulatory programs at USDA. In this position, Ferrell will help establish policies which enhance domestic and international marketing of U.S. agricultural products, ensure the health and care of animals and plants, and participate in setting national and international standards. "John Ferrell has extensive experience in the development of agriculture policy, and he is a welcome addition to USDA where he will help advance our efforts to improve competition, transparency and fairness in the marketing of agricultural products," Vilsack said. To view the full article go to: http://southeastfarmpress.com/news/usda-undersecretary-0618/ --Grocery prices continue decline New data released by the federal government shows consumers are paying less for groceries today than they were just six months ago. This decrease comes amid increased production and use of ethanol, often the scapegoat of choice by food manufactures and meat processors when grocery prices rise. According to the Consumer Price Index (CPI) released today by the Bureau of Labor Statistics, prices for groceries (food consumed at home) declined for the sixth straight month, and prices for all the major grocery store individual food groups declined compared to April. The index for meats, poultry, fish, and eggs showed the largest one-month decrease at -0.9 percent. Prices for dairy products, fruits and vegetables, and beverages also showed noticeable declines. To view the full article go to: http://southwestfarmpress.com/news/grocery-prices-0619/ --Climate change debate hot/cold Mother Nature gives no warning. One week, we were wondering if the thunderstorms and cool temperatures would ever end, the next, summer imposed its will on the Mid-South and another spring was history. The season had arrived, farmers were excited. It's time to start, uh, sequestering carbon. Chuckle if you will, but in reality, carbon sequestration could be a big part of farm conservation plans of the future. The world's farmers could be required, and incentivized, by governments to implement practices on the farm designed to reduce emissions of carbon dioxide and other greenhouse gases that many believe are causing global warming. - Elton Robinson, Farm Press Editorial Staff To view the full article go to: http://deltafarmpress.com/news/robinson-column-0619/ --Residuals paid off in 2009 For several years now we have looked at numerous herbicides applied in the fall for residual weed control. Some of this has been for general winter annual weed control and some protocols have been specifically written for glyphosate-resistant horseweed management. In general, I have always been skeptical of these treatments. Valor is one product that has led the charge for these applications. In many cases, what we have observed is that even though fields are clean all winter, they would "break" prior to planting, requiring a spring burn-down prior to planting. - Robert C. Scott, Extension Weed Specialist, University of Arkansas To view the full article go to: http://deltafarmpress.com/news/residual-weed-control-0619/ --ASA/DuPont Youth Program Mid-South soybean associations, the American Soybean Association, and Pioneer Hi-Bred, a DuPont business, are seeking applicants for the 2010 Young Leader Program. The Young Leader Program is recognized for identifying and cultivating the producer leaders who are shaping the U.S. soybean industry. "The Young Leader Program is an exceptional leadership training program," said Johnny Dodson, ASA president and soybean producer from Halls, Tenn. "ASA and Pioneer are committed to developing the next generation of leaders for the soybean industry. As a graduate of this leadership program, I can tell you that it opens up a lot of opportunities for you." To view the full article go to: http://deltafarmpress.com/soybeans/asa-program-0619/ --Applicators - wet spring woes This spring, not only did Parkin, Ark. -- a town about 35 miles northeast of Memphis -- get an abundant dose of rains but the area also drains excess water from the north. Considering the waterlogged spring, it's understandable why area crops are so late. - David Bennett, Farm Press Editorial Staff To view the full article go to: http://deltafarmpress.com/rice/aerial-applicators-0618/ KENT THIESSE ---------------------------------------- CAUTION FLAG FOR AG ECONOMY For many Midwest farm operators, 2009 is turning into one of the most stressful years in farming during the past couple of decades. Obviously, crop producers in Illinois, Indiana, northern Minnesota and other areas are facing potential crop losses in 2009 due to late planting and continued heavy rainfall. Even producers who were in areas not affected by the excessive rainfall in May and early June are concerned by cooler-than-normal weather early in the growing season and very dry conditions in some areas of central Minnesota. These early season growing conditions also reduce the likelihood of reaching the corn and soybean yield levels that most producers have achieved the past several years when more favorable growing conditions have existed. However, crop conditions in many areas of the Midwest, such as southern Minnesota and Iowa, have improved significantly since June 10, which should help improve the 2009 crop prospects in those locations. Crop input costs for 2009 were considerably higher than in 2007 and 2008, and will likely not be much lower for 2010. The cost of anhydrous ammonia and other nitrogen fertilizers, as well as dry fertilizers, had drastic cost increases for the 2009 crop year. Input costs for seed, chemicals and repairs were also marginally higher in many cases. Most land rental rates increased 5-10% in 2009, compared to a year earlier, which followed 15-25% land rental rate increases in 2008. http://cornandsoybeandigest.com/kentthiesse/0623-stressful-farming-economy/ ---------------------------------------- RICHARD BROCK ---------------------------------------- LOWER PRICES MAY SPUR SOY DEMAND Soybean traders will be watching to see whether recent futures declines are enough to spur renewed interest in U.S. soybeans from Chinese buyers, who have delayed or cancelled some previous purchases over the past couple of weeks. A weekly survey by the China National Grain and Oils Information Centre (CNGOIC), released on Friday, indicated traders in China were expected to keep imports at a low level in coming weeks due to sufficient domestic supplies, but attitudes may change with lower prices. Last week's surge in Chicago Board of Trade soy prices led more buyers to hold off making purchases, the CNGOIC said. High prices have undermined crush margins for Chinese processors along with slowing domestic feed demand. http://cornandsoybeandigest.com/richardbrock/0616-soybean-prices-cause-demand/ ---------------------------------------- AUDIO/VIDEO FEATURES ---------------------------------------- SEED QUALITY ISSUES IN 2008 (http://cornandsoybeandigest.com/tv/corn/0619_seed_quality/) Gary Munkvold, Associate professor of plant pathology Iowa State, talks in this video spotlight about seed problems in 2008. - from CSD LIVE Watch the vodeo (http://cornandsoybeandigest.com/tv/corn/0619_seed_quality/) ---------------------------------------- MORE MAGAZINE HIGHLIGHTS ---------------------------------------- THE LONG AND SHORT OF UNEMPLOYMENT RATES The agricultural industry is very exposed to the outcomes resulting from higher unemployment. USDA statistics indicate that over 70% of American producers are reporting non-farm income on their tax returns. Those mid-sized farms and ranches and smaller lifestyle producers whose livelihood can be severely curtailed by loss of off-farm employment are particularly exposed. Another risk factor in job cutbacks is the loss of fringe benefits, particularly medical coverage. All of these issues present a compelling thesis for the importance of non-farm income. Unemployment is frequently called an economic lag factor, actually increasing after an economic recovery has begun. Unemployment has nearly doubled since the robust times of 2006. Since February 2008, in a little over 12 months, the unemployment rate has increased by 4%. Projected estimates have the rate reaching double digits sometime this summer or early fall. If one allows for discouraged workers and people no longer qualifying for unemployment, the current rate is 16.4%, while the reported rate is 9.4%. - Dave Kohl, Corn & Soybean Digest http://cornandsoybeandigest.com/davidkohl/0623-unemployment-rates/ QUICK POLL QUESTION This week's poll question: Have you had glyphosate resistance problems to the extent that you have to spray with another chemistry to finish the job? * YES * NO 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) http://cornandsoybeandigest.com/ ASIAN SOYBEAN RUST SLOW TO DEVELOP Nearly a week after Asian soybean rust was located in south Louisiana and Alabama soybeans, the fungal disease hadn't been found elsewhere. It was not from lack of looking, though. "We've continued to scout and make (leaf) collections, but nothing has been found since the St. Martin Parish outbreak," said Clayton Hollier, LSU AgCenter plant pathologist on June 12. "Having already found rust in south Louisiana kudzu, "my associate looked at several fields that Blaine Viator -- a consultant who has helped us out a lot with rust monitoring -- has maintained. She found rust in two of Viator's sentinel plots." - Farm Press http://cornandsoybeandigest.com/soybeans/news/0618-asian-soy-rust/ CSD EDITOR ON HUNGARY MISSION Greg Lamp, Corn & Soybean Digest editor, is heading out on a trade mission trip June 19 to Hungary with the Iowa Soybean Association. The Black Sea Trade Mission 2009 was established with state soybean associations and councils to prospect Black Sea/Mediterranean markets and to produce significant trading results. The goal is to establish sales and a feasible supply line to all markets tributary to Constanta, Varna, Odessa and Turkish ports for U.S. soybean meal. Participants are looking forward to relationships with end user customers and also feed stuffs traders in Hungary, Romania, Bulgaria, Ukraine and Turkey. Want to follow the mission? Check out the CSD Facebook page, for photo and video updates. Also follow Greg on his journey via Twitter. - Corn & Soybean Digest http://cornandsoybeandigest.com/news/0618-editor-in-hungary/ SPRAY DRIFT POTENTIAL INCREASES Recent rains over much of the state are encouraging crop and weed growth and pesticide applications will be a primary focus as soon as fields are suitable. In a May 15, 2009 ICM news article, management factors to reduce drift potential were reviewed, with special focus on the effect of droplet size and wind speed on physical spray drift. As daily high temperatures increase into the 70-80_ F range, mid-day relative humidity frequently drops below 50%. This article takes a look at the effect of temperature and humidity on pesticide drift. Temperature and humidity affect the evaporation of liquid droplets. The higher the temperature and lower the humidity, the faster evaporation occurs. As a result of evaporation, spray droplet size decreases. The smaller droplets are then more susceptible to moving off target with prevailing winds as they become entrained in ambient air currents. - Corn & Soybean Digest http://cornandsoybeandigest.com/corn/news/0617-spray-drift-potential-increase/ CORN: LOOKING AHEAD TO 2010 June 8 was a final decision date for my 2009 preharvest marketing plan for corn. I made a sale of December 2009 corn futures at $4.58/bu. -- well above my minimum price objective of $3.95, but not nearly as high as the $6.45 level at which I made my first sales last August. I am now 75% priced on my mythical 2009 corn at an average December 2009 futures price of just over $5/bu., or a cash price of $4.50-4.60/bu. at harvest. I think it is time to turn my attention to 2010. Every producer struggles with the question of when to start pricing a crop. On one extreme is the farmer who says, "You can't price what you don't have." These are producers who start the process at harvesttime. At the other extreme are those who note that futures quotes and pricing opportunities are available for 2009, 2010, 2011 and 2012 corn (quotes for 2011 corn started in July of last year and I saw the first quotes for December 2012 corn futures June 9). I am not comfortable reaching out more than two crop years. To look out as far as 2011 or 2012 demands a high level of confidence in crop rotations, input costs and government program support. - Ed Usset, Corn & Soybean Digest http://cornandsoybeandigest.com/marketing/news/0622-corn-prices-in-2010/ NEW DEVELOPMENTS BRING CELLULOSIC ENTHANOL CLSER TO REALITY Two announcements from the ethanol industry this week show progress on the challenging issue of cost-effectively handling and transporting biomass for the production of cellulosic ethanol and getting it up to commercial scale. Logistics has been a key issue on many people's minds. At the Fuel Ethanol Workshop & Expo (FEW) in Denver this week, Jeff Broin, CEO, of POET, announced that his ethanol company has created a new division called POET Biomass. It will focus on managing the harvest and transportation logistics for corn cobs, waste wood and other biomass used for cellulosic ethanol and alternative energy projects at POET's production facilities. POET's pilot plant in Scotland, SD, is already producing about 20,000 gallons of cellulosic ethanol per year. Moreover, plans are on schedule for producing 25 million gallons annually from the company's Project Liberty plant in Emmetsburg, IA, in 2011. - 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. 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