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CROP NEWS WEEKLY
In the July 22, 2009 Issue:
Brought to you by the editors of
Corn & Soybean Digest and Farm Industry News
 Climate change dividing groups?
 Corn/soybean crops bigger
 Consumers: Soy is a healthy food
 Gray leaf spot building in corn
 Bootheel farmer on NCGA board
 New designs for old dams
 Hard to control weeds common
 Local farm labor often hard to find

EDITOR'S NOTE

Logan Hawkes
07/22/09

The dog days of summer have arrived across much of America and, as is so often the case, drought contions have intensified. Growers in Texas, for example, could be facing record crop losses this year if rain doesn't spell relief soon. How this might affect markets in the fall remains to be seen, but all eyes are focused on the possible impact, if any, that could be felt industry wide. In this issue, (and speaking of drought), catch up on the latest about climate change legislation and how farm groups seem divided over the current issue. Elsewhere in the news, the U.S. corn and soybean crops grew larger, while rice production shrank from last month, according to USDA’s July 10 Crop Production Report.

Catch up on all the latest news and issues inside this week's Crop News Weekly. And thanks for dropping in.

FROM OUR EDITORS

Climate change dividing groups?

The climate change legislation now before the Senate has succeeded in doing something neither the nation’s environmental groups or the Bush administration could do: Create fault lines in the farm bloc.

The American Clean Energy and Security Act of 2009, also known as the Waxman-Markey bill, H.R. 2454, is drawing decidedly mixed reviews from farm organizations. Some are condemning the bill outright, some seeking significant changes and others are behind it all the way.

The American Farm Bureau Federation has taken dead aim at the legislation, which passed the House by a narrow margin (219-212), with AFBF President Bob Stallman recently characterizing it as “embarking on a fool’s errand,” if the United States tries to go it alone on solving the problem. - Forrest Laws, Farm Press Editorial Staff

FULL ARTICLE >>

Corn/soybean crops bigger

The U.S. corn and soybean crops grew larger, while rice production shrank from last month, according to USDA’s July 10 Crop Production Report and World Agricultural Supply and Demand Estimates.

U.S. corn production for 2009-10 is projected at 12.3 billion bushels, up 355 million from last month due to higher estimated area. Feed and residual use for 2009-10 was raised 50 million bushels while food, seed, and industrial use was lowered 35 million bushels. Expected exports were raised 50 million bushels due to the competitiveness of U.S. supplies in the world market. Ending stocks were projected at 1.6 million bushels, up 460 million from last month, but down 220 million from 2008-09. The 2009-10 marketing-year average farm price for corn is projected at $3.35 to $4.15 per bushel, down 55 cents on both ends of the range.

Global corn ending stocks were projected at 139.2 million tons, up 13.7 million from last month. - Elton Robinson, Farm Press Editorial Staff

FULL ARTICLE >>

Consumers: Soy is a healthy food

Eighty-four percent of consumers rate soy products as healthy, according to the recently completed 16th Annual Consumer Attitudes About Nutrition Study, funded by the soybean checkoff.

That’s good news, as 87 percent of consumers express concern about the nutritional content of the food they eat. The number of concerned consumers has remained consistent over the last 11 years.

“A large number of consumers consider soy to be healthy, particularly as a heart-healthy food,” says Jim Stillman, United Soybean Board (USB) director and a soybean farmer from Emmetsburg, Iowa.

The ailing economy seems to be having an effect on U.S. consumers buying decisions as nearly half (46 percent) report they are unwilling to pay more for healthier foods and 52 percent of those consumers cite the reason as financial. Fortunately, soy is one of the healthy foods that consumers seek out with 30 percent of consumers buying products specifically because they contain soy. Approximately 31 percent of consumers are aware of specific health benefits of soy in their diet.

FULL ARTICLE >>

Gray leaf spot building in corn

Some parts of Kansas have had recurring problems with gray leaf spot in corn and this year is no exception, according to a Kansas State University scientist.

"Recent surveying has indicated that it will be a very good year for gray leaf spot in many of the areas where it has traditionally been a problem," said K-State Research and Extension plant pathologist, Doug Jardine. "In the Kansas River Valley, for instance, gray leaf spot has already reached the ear leaf minus two in some continuous corn fields where the tassel was just beginning to exert itself. On the other hand, southeast Kansas appears to be free of the disease at this time."

Jardine said scouting of fields should be done prior to any fungicide applications. Many of the new hybrids have improved tolerance to gray leaf spot and may not require a fungicide application.

FULL ARTICLE >>

Bootheel farmer on NCGA board

Mike Geske of Matthews, Mo., has been elected to the board of directors of the National Corn Growers Association. Geske was among five board members elected by delegates from state corn associations and checkoff organizations attending the July Corn Congress in Washington.

Geske and his son currently farm 2,100 acres. The farmer from Matthews, which is located in the Missouri Bootheel, is currently serving as president of the Missouri Corn Growers Association and is chairman of NCGA’s Public Policy Action Team.

FULL ARTICLE >>

New designs for old dams

A group of Agricultural Research Service (ARS) hydraulic engineers are helping to rehabilitate aging small dams across the country.

Efforts are underway to upgrade existing auxiliary spillways or build new spillways for these dams, especially in Oklahoma. These upgraded or new spillways meet current dam safety standards and will increase the useful lives of the dams.

The U.S. Department of Agriculture's Natural Resources Conservation Service (NRCS) has helped build more than 11,000 earthen dams over the years as part of its Watershed Protection and Flood Prevention Operations Program. These dams serve many purposes, but the primary purpose is flood control. Since the program began in 1944, ARS Hydraulic Engineering Research Unit (HERU) engineers in Stillwater, Okla., have partnered with NRCS in the development of design standards for the dams.

FULL ARTICLE >>

Hard to control weeds common

Recently named LSU AgCenter state weed specialist, Bill Williams has stepped into a “common theme” of harder-to-control weeds, “whether in corn, cotton, soybeans, whatever. Teaweed and morning-glory too often get away. And an increasing problem has been with Palmer amaranth and some of the pigweeds. There are certainly resistance issues we’re concerned about.”

While Louisiana’s first official glyphosate-resistant weed is yet to be named, ryegrass is close to having the dubious honor.

In dealing with suspected resistance, “the number one issue is application timing,” Williams said at the recent Northeast Research Center. - David Bennett, Farm Press Editorial Staff

FULL ARTICLE >>

Local farm labor often hard to find

Finding good help seems to be a universal problem in the agriculture industry.

“You can’t find local labor to do the field work,” said John Cromwell, co-owner of Cromwell Farms in Virginia Beach, Va. So eight years ago he began using the federal H-2A program, which offers “a reliable source of (foreign) labor that’s government-approved.” The H-2A program was started in 1986 to allow farmers to hire legal, temporary foreign workers. Cromwell has had the same two workers come from Mexico to help him plant and harvest fruits and vegetables on 60 acres for the past eight years.

This year, however, news of the H1N1 virus broke at the same time his workers were supposed to travel to Virginia. “We had difficulty getting them across the border,” Cromwell said. The embassy where the H-2A workers pick up their passports was closed for several weeks. “We lost several crops because of that,” Cromwell said. But despite the setback, he said hiring H-2A workers is his best option.

FULL ARTICLE >>

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AUDIO/VIDEO FEATURES
INVENTION & IDEA SHOW VIDEO
Deb Hess, executive director of the Minnesota Inventor' Congress, gives highlights of the 52nd Annual Invention and Idea Show in Redwood Falls, MN, where 70 poduct prototypes fo test markte are on display, including new green energy products. - FIN-TV, Farm Industry News
Watch the video now

WELDER ASSISTANT
Cheryl Becher, Morristown, MN, talks about the Welder's Assistant, a lifting device to assist in lifting 200 pound gas tanks used for welding. - FIN-TV, Farm Industry News
Watch the video now

A FATHER'S ODYSSEY
Author, consultant, and motivational speaker Terry Hitchcock discusses his new book, "A Father's Odyssey: 75 marathons in 75 days," ad his belief that human beings can accomplish anything if somebody shows them how. His book is being made into a documentary called "My Run," narrated by actor Billy Bob Thornton, and a feature-length film called "Pushing Life." - FIN-TV, Farm Industry News
Watch the video now
KENT THIESSE
LIVESTOCK INDUSTRY UNDER STRESS
At a time when many crop producers continue to show profits, even with sharply higher input costs, the entire livestock industry is under extreme financial stress. Livestock producers have been hit hard with a combination of declining market prices, higher feed costs and operating expenses, declining export markets and unforeseen events. The negative profit margins and financial stress are especially prevalent in the swine and dairy industries – two very important segments of Minnesota’s economy. The continued negative profit margins and potential future reductions in the livestock industry should be a concern to crop producers, local communities and the state of Minnesota.

The growth of the biofuels industry in recent years has driven much of the discussion on future usage of U.S. corn and soybean production. The total amount of the U.S. corn supply used for ethanol production has increased by nearly one-third in the past two years, from just over 3 billion bushels/year in 2007-2008, to an estimated 4.1 billion bushels for 2009-2010. However, feed usage for livestock production is estimated to utilize approximately 5.2 billion bushels of corn in 2009-2010, or about 41% of the total U.S. corn usage. As recently as 2007-2008, livestock feed usage accounted for nearly 50% of the total U.S. corn usage. In addition, the other byproduct from increased Midwest ethanol production is increased volumes of dried distillers grains (DDGs), the vast majority of which are used for cattle and hog feed.
MORE
RICHARD BROCK
USDA CORN, SOY DATA NUETRAL TO BEARISH
Friday morning’s monthly USDA supply/demand update appeared to hold neutral to somewhat bearish news for the corn and soybean markets.

As expected, USDA significantly raised both its 2008-2009 and 2009-2010 corn carryout projections. The agency left its 2008-2009 soybean carryout estimate unchanged and raised 2009-2010 soybean ending stocks moderately.

USDA pegged 2008-2009 corn ending stocks at 1.770 billion bushels, up 170 million bushels from its June estimate and toward the high end of trade estimates that averaged 1.692 billion bushels in a range from 1.6 billion to 1.850 billion.

The larger carryout projection reflects the larger-than-expected June 1 stocks figure reported by USDA on June 30, which implied lower-than-expected usage.
MORE
MORE MAGAZINE HIGHLIGHTS
QUICK POLL QUESTION
This week's poll question: Do you expect to be profitable this year on corn and soybeans?

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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)
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HALFTIME REPORT: DOMESTIC AND GLOBAL ECONOMY
Last week I covered the agricultural industry’s economic status. Now let’s turn our focus to the state of the general and global economy.

Will the green shoots get weed whacked? Examination of lead and lag economic indicators suggest the economy may have bottomed out, with some bright spots ahead.

The composite leading index, an indicator of economic direction six months forward, has been positive in recent months.

The purchasing manager index (PMI), which was in the mid to high 30s in the first half of the year, was is 42.7 and most recently 44.8. A number above 42 is a sign that the economy is functioning above recessionary levels. The PMI has to be above 50 for a growing economy. The big question is whether the improvement of this indicator is due to manufacturers replacing inventory because of just-in-time inventory management, or a sustainable increase for the long term. - Dave Kohl, Corn & Soybean Digest
MORE

CORN GROWERS: TIPS TO DECIDE IF A FUNGICIDE APPLICATION IS WARRANTED
Now is the time of year when corn growers need to decide if a fungicide should be applied and Kiersten Wise, a Purdue University expert has a few guidelines to help in the decision making process.

"Deciding whether to apply a fungicide is not a straightforward question," says Wise, Purdue Extension field crops disease specialist. "There are several things that must be taken into consideration."

University research from across the Midwest shows consistent yield advantages from a fungicide application occur when there is a significant amount of disease in a field, Wise says. - Corn & Soybean Digest
MORE

MAXIMIZING ON-FARM STORAGE
Getting the most from on-farm grain storage requires careful planning to ensure that facilities fit the farm’s needs, and a commitment to management of stored grain to ensure quality.

The dramatic increase in Midsouth acres of “yellow gold” in recent years has filled the rural landscape with a corresponding proliferation of “silver monuments,” says Mike Buschermohle.

The flood tide of corn at harvest has resulted “in long lines of trucks waiting to unload at elevators, horrible shortages of barges for river transport, sometimes wild swings in basis and other factors that have spurred intense interest in on-farm storage,” the University of Tennessee professor of biosystems engineering said at a recent grain storage workshop at Webb, MS, sponsored by the Mississippi State University Extension Service, Delta Rice Services, Bunge North America, and the GSI Group. - Corn & Soybean Digest
MORE

CLIMATE CHANGE AND CARBON CREDITS: SORTING OUT THE CONFUSION
The U.S. House of Representatives narrowly approved legislation addressing climate change and sent it to the Senate, where supporters hope the fall will bring restrictions or costs for releasing carbon dioxide and other greenhouse gases into the atmosphere. The public is divided on the issue of global warming, responsibility for greenhouse gases and what should be done and by who. Agriculture currently is one of the major stakeholders in the debate, and can come out either in good shape or bad.

The definition of good shape or bad shape is offered by Luther Tweeten as either mitigating or adapting. Tweeten is the emeritus chairman of the Ohio State University Department of Agricultural Economics and in a recent perspective does not tell government what do to, but says whatever the choice of government may be, it will have an impact on agriculture. He cites the Intergovernmental Committee on Climate Change, which reports average temperatures are rising, with food production gradually shifting away from tropical and subtropical regions and more into Canada and Siberia over the next century. Because of high populations in the developing countries in Africa and Latin America, Tweeten says such a shift will create hardships among the world’s food insecure people. - Corn & Soybean Digest
MORE

HARVESTING, STORING CORN
On-farm grain storage can offer Mid-South growers several potential advantages: gaining early market premiums; improved market flexibility; reduced risk of severe weather; aflatoxin reduction; early fall tillage; improved management of the farm operation, and more timely harvesting.

But, says Herb Willcutt, Mississippi State University Extension agricultural engineer, farmers must evaluate whether these advantages will help offset the costs of constructing the facilities for handling, storing, and drying the grain.

And, he says, farmers should strive for harvesting efficiency in order to insure maximum quality of grain going into storage. - Hembree Brandon, Farm Industry News
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