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CROP NEWS WEEKLY
In the July 8, 2009 Issue:
Brought to you by the editors of
Corn & Soybean Digest and Farm Industry News
 U.S. farmers prefer biotech
 Climate change not aberration
 Glyphosate-resistance shocking
 Downside of wildlife programs
 Biotechnology, trade, keys for wheat
 Bee-killer genome sequenced
 "Energy Act" boost to conservation?
 Spraying herbicide doesn't always pay
 Markets watching weather

EDITOR'S NOTE

Logan Hawkes
07/08/09

Have you noticed that, generally speaking, each year about this same time fuel prices start stabilizing? It's pure coincidence I am certain that prices go up just before a major travel holiday and go down almost immediately thereafter. Not that I am complaining, mind you. But there seems to be a pattern here. By way of comparision, imagine if producers could raise the wholesale price of food commodities just before everyone got hungry or went shopping at their local supermarket. There's no moral to this story really. I just find it interesting. In the meantime, we all need to quickly fill up all our tanks before Labor Day (and harvest season) arrives.

We offer up some interesting news and issues this week. Let's get started.

FROM OUR EDITORS

U.S. farmers prefer biotech

American farmers have adopted biotech crops widely since their introduction in 1996, especially corn, cotton and soybean varieties, according to a new USDA report.

USDA's Economic Research Service (ERS) report, Adoption of Genetically Engineered Crops in the U.S. was released July 1, 2009. Key findings include:

* Adoption of biotech soybeans is 91% in 2009.
* Adoption of all biotech cotton reached 88% in 2009.
* Adoption of all biotech corn climbed to 85% in 2009.

Sharon Bomer Lauritsen, executive vice president, food and agriculture for the Biotechnology Industry Organization (BIO), issued a statement in response to the report. - Corn & Soybean Digest

FULL ARTICLE >>

Climate change not aberration

The world’s climate is getting warmer, and that could have a profound impact on U.S. agriculture, says Jerry Hatfield, supervisory plant physiologist with USDA’s National Soil Tilth Research Laboratory at Iowa State University.

While right-wing pundits and even some Democrats, such as Collin Peterson, may scoff, Hatfield says the world can expect warmer temperatures for the next 30 to 50 years, rising carbon dioxide concentrations and increased variability in temperature and precipitation.

Hatfield isn’t some off-the-wall environmentalist with an agenda. He’s a respected scientist who shared the Nobel Peace Prize in 2007 and chaired last year’s USDA Greenhouse Gas Symposium. He also says the phenomenon is not new. - Forrest Laws, Farm Press Editorial Staff

FULL ARTICLE >>

Glyphosate-resistance shocking

I recently wrote in an article that I would sure like to get called out to a “normal-looking” rice field because I have looked at so many messes this year.

I have been pleasantly surprised by the calls I have received from farmers bragging about their crops and inviting me to come look.

The crop is beginning to look like a rice crop and I have been in several areas where it really looks good. I have not enjoyed the late-June heat, but the crops sure have. - Ford L. Baldwin, Practical Weed Consultants, LLC.

FULL ARTICLE >>

Downside of wildlife programs

We quickly learn in this business that one man’s caviar and Champagne may well be just smelly fish eggs and icky grape juice to another.

In recent weeks, we’ve run articles about land management to conserve and enhance wildlife habitat in order to encourage growth and sustainability of native game populations.

While many farmers and landowners realize significant extra income from these endeavors through fees for hunting, others see burgeoning populations of deer and other game as the path to crop losses and ruined gardens and landscaping. - Hembree Brandon, Farm Press Editorial Staff

FULL ARTICLE >>

Biotechnology, trade, keys for wheat

The adoption of biotechnology, export expansion, and supplier reliability are crucial components to further bolster the U.S. wheat industry — a $16.5 billion economic powerhouse in 2008.

“Bringing biotechnology into the wheat realm is imperative for a healthy and expanding U.S. wheat industry,” said Michael Edgar, Yuma, Ariz. - Cary Blake, Farm Press Editorial Staff

FULL ARTICLE >>

Bee-killer genome sequenced

Agricultural Research Service scientists have sequenced the genome of an invasive parasite called Nosema ceranae that can kill honey bees and is one of the many suspects in the mysterious ailment known as colony collapse disorder (CCD).

USDA-ARS researchers Jay Evans, Yanping (Judy) Chen and R. Scott Cornman also have nearly completed sequencing the genome of Nosema apis, a native “cousin” of the parasite.

FULL ARTICLE >>

"Energy Act" boost to conservation?

“The American Clean Energy and Security Act of 2009 could be the most sweeping conservation legislation enacted in the 21st century," says Jon Scholl, president of American Farmland Trust. "If done properly, this legislation could create incentives to improve stewardship on hundreds of millions of acres of American farm and ranch land and produce low carbon renewable fuels on farms. This would bring new sources of income to producers. We support this bill moving forward to a successful vote on the House floor."

With the recent compromises, and the breakthrough deal for agriculture reached between Chairmen Waxman (D-CA) and Peterson (D-MN), many of the concerns of agriculture appear to have been addressed. "We believe that by maximizing agriculture's opportunities to adopt new conservation practices and technologies and produce low-carbon renewable energy, you maximize the bill's environmental benefits," Scholl adds. He also notes that agricultural lands provide the most available and cost-efficient means of reducing greenhouse gas emissions.

FULL ARTICLE >>

Spraying herbicide doesn't always pay

It may not always pay for ranchers to use herbicides to kill exotic invasive weeds such as leafy spurge, according to a 16-year study by the Agricultural Research Service (ARS) and colleagues.

Rangeland ecologist Matt Rinella at the ARS Fort Keogh Livestock and Range Research Laboratory in Miles City, MT, and colleagues conducted the study. Data they collected 16 years after a one-time aerial spraying of herbicide showed that the invasive leafy spurge (Euphorbia esula L) may have ultimately increased due to spraying. Conversely, several desirable native forbs were still suffering the effects of spraying 16 years after spraying.

FULL ARTICLE >>

Markets watching weather

Crop prices are beginning the annual meteorological reaction. Adverse weather gives price increase and favorable weather takes it away.

Much of the weather premium was removed from the market in recent price declines. Dollar exchange rates have been volatile and affect prices directly. Beef prices are rising but cattle on feed declined 12 percent in May and another 3 percent in June. Pork exports are increasing but herds of swine and cattle are near a decade low. Fewer animals on feed reduce grain use. Feed remains the number one use of grains and soy-meal. Indian monsoon rains are expected to decrease 32 percent below average. That will limit crop production there and possibly exports. - Ray Nabors, Contributing Writer

FULL ARTICLE >>

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KENT THIESSE
JUNE 30 USDA REPORT
The June 30 USDA acreage and grain stocks report was much more anticipated than normal, given the very erratic nature of grain supplies and corn and soybean prices in the past year or two. Interestingly, the June 1 report showed total 2009 planted corn acres in the U.S. at 87 million acres, which is almost 3 million acres higher than the average estimates of the grain traders, and 2 million acres higher than the March 1 planting intentions. The 2009 planted corn acres are about 1 million acres more than 2008 planted corn acres. The USDA report listed 2009 planted soybean acres at 77.5 million acres, which is slightly below the prereport estimates by grain traders, but is up about 1.5 million acres from the March 1 planting intentions, and up about 1.8 million planted acres compared to 2008. Total 2009 wheat acres in the U.S. are down over 3.3 million acres as compared to 2008.
MORE
RICHARD BROCK
CORN, SOY STOCKS LARGER THAN EXPECTED
Last week's quarterly USDA Grain Stocks Report held bearish news for the corn and soybean markets as USDA pegged June 1 stocks of both crops toward the high end of trade expectations.

USDA pegged June 1 corn stocks at 4.266 million bushels, compared with trade estimates averaging 4.190 billion bushels in a range from 4.064-4.321 billion bushels. The June 1 stocks number was up 5.9% from a year earlier, when there were 4.028 billion bushels of corn in storage.

The June 1 stocks estimate implies third-quarter corn disappearance of 2.692 billion bushels, down 4.9% from a year earlier, which points to slower-than-expected feed/residual usage and suggests USDA will have to raise its 2008-09 carryout projection next month.
MORE
MORE MAGAZINE HIGHLIGHTS
QUICK POLL QUESTION
This week's poll question: What will you pay for cash rent on good corn ground this growing season?

* BELOW $160 AN ACRE
* $160-$190
* $190-$220
* $220-$260
* $260-$300
* $300-$350
* Over $350

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

FAST FACTS ABOUT BANKING
A West Coast road trip to speak to the Washington Agricultural Bankers’ program allowed me to share the podium with John Blanchfield, director of the American Bankers Association’s Center for Agricultural and Rural Banking. John, in his usual energetic style, presented some interesting points about the banking industry:

* Banks have sufficient funds to make farm loans in 2009 and beyond; however, it is not going to be business as usual, with more conservative assessments in working with borrowers.

* Ninety-eight percent of the over 8,400 banks are well-capitalized, with many being agricultural banks.

* Farm equity now exceeds $2 trillion dollars, nearly doubling in this decade. Much of the increase is the result of appreciation in farmland values.

* Farm debt is now $2.5 billion dollars and is being serviced by record profits of 2008, which are projected to be down by 17% in 2009. This is still much above average.

* The percentage of farm assets financed by debt is now 9.1%, a record low, and down from 15% in 1991.

* Land values nationwide increased by 8%, with much of the increase resulting from double-digit price increases in the Midwest. - Dave Kohl, orn & Soybean Digest
MORE

ALTERNATIVE ENERGY: WHAT'S IT WORTH?
Without fail, when we write about alternative energy for vehicles — whether it be ethanol, hydrogen, electric, natural gas, whatever — we get e-mails (1) congratulating us on our insight and astuteness and predicting that oil’s ready for the scrap heap of history, or (2) telling us that, however distasteful, we’re going to be shackled to imported oil for a long time to come.

Realistically, the latter is probably the more accurate assessment. The gasoline/diesel infrastructure has been built over more than a century, with mega-billions of dollars invested. However much we may rail about cost, that infrastructure works and works well … as long as everything goes as it should from the oil well to the refinery to the gas pump.

The following are some of the more reasoned comments from a long-time reader about the difficulties in weaning ourselves from the oil spigot:

“It would be nice,” he writes, “to be free of Middle East oil dependency for a variety of well-known reasons, but difficult for one simple reason: Middle East oil is, on average, the most plentiful, low production cost, and most easily refined source of energy on the planet, other than U.S. coal. Coal works well for power generation, but not for vehicles, obviously. Would that any of the alternative fuels were so plentiful and cheap. - Hembree Brandon, Farm Press Editorial Staff
MORE

CORN ACREAGE UP FROM PREVIOUS ESTIMATES
Despite weather challenges at key planting times, U.S. corn growers planted 2 million more acres this season than previously expected, USDA reported today. In its annual report on planted acres, USDA estimated 87 million acres planted in corn and projects a harvest of 80.1 million acres. Once again, our nation’s corn farmers are showing their resilience, the National Corn Growers Association (NCGA) said.

“We’re excited not just to see this report on acreage, which was much larger than we expected to see given planting conditions, but to see also that crop condition is far superior to 2008,” said NCGA President Bob Dickey. “When the weather warmed up in several key states and the fields dried out, wheels were rolling and we were able to get a good crop in the ground. It’s an exciting time for growers, and we’re looking forward to a great year where we can meet all needs for food, feed, fuel and fiber.”

In Monday’s report on crop condition, the USDA reported that 72% of the U.S. corn crop was in good or excellent condition. - Corn & Soybean Digest
MORE

ELVIS WAS A "GREEN" GUY?
Everybody knows that Elvis Presley preferred pink Cadillacs, blue suede shoes and gold-sequined, white jumpsuits. But do you know the color of his favorite tractor?

Shane Louwerens and his special project class at Northwest Mississippi Community College in Senatobia, Miss., do. Elvis was a “green” guy.

Louwerens, a Northwest instructor, and four graduating Northwest sophomores spent nearly 400 man hours this year restoring the King’s 1963 John Deere used at Elvis’ Circle G Ranch in DeSoto County, Miss., and at Graceland for many years.

The students were not let in on the tightly held secret of who the tractor belonged to until officials from Elvis Presley Enterprises, Inc., and John Deere Corp., came to pick up the tractor and recognize the students for their work. - T.J. Jernigan Northwest Mississippi Community College
MORE

INFOAG 2009 OFFERS LOOK AT PRECISION AGRICULTURE
InfoAg 2009 is organized by the International Plant Nutrition Institute (IPNI) and the Foun­dation for Agronomic Research (FAR).

will present a wide range of educational and networking opportunities for manufacturers, practitioners, input suppliers, producers, Extension and NRCS personnel, and anyone interested in agricultural site-specific techniques and technology.

“Since the first conference in 1995, InfoAg has been a leading event in precision agriculture,” says Dr. Harold F. Reetz, Jr., IPNI Director of External Support and FAR. He is located at Monticello, Il­linois, and may be contacted by telephone at (217) 762-2074. - Warren Clark, CCI Marketing
MORE

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