CROP NEWS WEEKLY Penton Media August 26, 2009 Volume 9 Issue 33 If you want to view this on the web go to: http://enews.penton.com/enews/cropnewsweekly/v/341 EDITOR'S NOTE Logan Hawkes 08/26/09 Fall like weather invades the Upper Midwest today, the first breath of cool air and perhaps a hint of the coming harvest. The growing season isn't over yet however, but it does serve as a reminder that fall is not that far away. Some beneficial rain has fallen across parts of the Midwest, a nice boost to late season crops. On the farm front this week a change in CFTC has removed a provision allowing certain speculators to exceed federal speculative position limits on agricultural commodities. CFTC is withdrawing two no-action letters that provided relief from federal agricultural speculative positions limits set forth in CFTC regulations. Also this week, farmers have until December 31 to take advantage of the accelerated depreciation schedule for most farm equipment. The bonus depreciation measure was extended until the end of 2009. Elsewhere, USDA soybean yield estimates dropped a bushel from 42.6 to 41.7 per acre. Total production estimates were lowered from 3.26 billion bushels to 3.2 billion. The reduction is over 60 million bushels of beans. You'll find these stories and more in this issue of Crop News Weekly. Thanks for dropping by. FROM OUR EDITORS --CFTC ends loophole The U.S. Commodity Futures Trading Commission has removed a provision allowing certain speculators to exceed federal speculative position limits on agricultural commodities. The CFTC announced today that it is withdrawing two no-action letters that provided relief from federal agricultural speculative positions limits set forth in CFTC regulations. "I believe that position limits should be consistently applied and vigorously enforced," CFTC Chairman Gary Gensler said. "Position limits promote market integrity by guarding against concentrated positions." In a letter dated May 5, 2006, the CFTC's Division of Market Oversight granted no-action relief to DB Commodity Services LLC, a commodity pool operator and commodity trading advisor, permitting the DB Commodity Index Tracking Master Fund to take positions in corn and wheat futures that exceeded federal speculative position limits set forth in CFTC regulations. - Farm Press To view the full article go to: http://deltafarmpress.com/markets/agricultural-commodities-0820/ --Accelerated depreciation for equipment Farmers have until December 31, 2009, to take advantage of the accelerated depreciation schedule for most farm equipment. The bonus depreciation measure (which reduced the depreciation schedule for most ag equipment from seven to five years) was extended until the end of 2009 under the economic stimulus package passed this year. There is no guarantee the accelerated depreciation schedule will be extended again, says Paul Kindinger, president and CEO, North American Equipment Dealers Association (NAEDA). In fact, the measure almost did not pass this year. If the new economic stimulus package works, Congress will likely have less enthusiasm for an accelerated depreciation tool because it costs the U.S. Treasury and is supposed to be a temporary tool, Kindinger says. - Lynn Grooms, Farm Industry News To view the full article go to: http://farmindustrynews.com/farm-equipment/0630-farm-equipment-depreciation/ --U.S. soybean yield declines USDA soybean yield estimates dropped a bushel from 42.6 to 41.7 per acre. Total production estimates were lowered from 3.26 billion bushels to 3.2 billion, the reduction is over 60 million bushels of beans. Ending supply stock estimates were down 40 million bushels. World ending stock estimates were lowered 1.5 million tons from 51.8 million to 50.3 million. Soybean crush used 121 million bushels, a 19 percent drop and 3 million below market expectations. Soybean export inspections fell to 5.6 million bushels from 10 million last week. The estimated numbers were bearishly more negative than market expectations. - Ray Nabors, Heartland Ag Network To view the full article go to: http://deltafarmpress.com/soybeans/soybean-declines-0820/ --DNA discoveries reduce hunger Max Rothschild has spent much of his career looking at the DNA of pigs. World Food Prize Laureate announcedHis work at Iowa State University has won numerous awards, including the American Ag Editors Association's Distinguished Service Award, which was presented to him at the Ag Media Summit in Ft. Worth, Texas, Aug. 4. Rothschild, responsible for numerous inventions such as three gene tests that are leading to significant increases in pig litter size, says changes in technology have made it possible for scientists to determine the DNA sequence of all major livestock species. - Forrest Laws, Farm Press Editorial Staff To view the full article go to: http://deltafarmpress.com/news/laws-column-0821/ --Link between fertilizer & nutrition Dr. William (Bill) R. Raun has been named as the Nutrients for Life Foundation Professor of Soil and Food Crop Nutrition at Oklahoma State University (OSU). The professorship, which is funded in-part by the Nutrients for Life Foundation, The Fertilizer Institute (TFI) and the International Plant Nutrition Institute (IPNI), will explore the linkages between fertilizer use and the nutritional quality of food. Dr. Raun accepted the professorship duties on July 1, following the OSU Board of Regents' recommendation. "I believe ours is the most progressive nitrogen management program in the world," said Dr. Raun. "This is the result of a team effort that has been ongoing since I arrived with Dr. John Solie (Mechanical Engineer), Dr. Marvin Stone (electrical engineer), and a host of incredibly dedicated graduate students."__The Nutrients for Life Foundation Professor of Soil and Food Nutrition is in the Department of Plant and Soil Science located within the College of Agricultural Sciences and Natural Resources. The cross-disciplinary position will work closely with the college's Robert M. Kerr Food & Agricultural Products Center. Dr. Raun will teach a class each semester about fertilizer's role in healthy food, while also researching this important issue. To view the full article go to: http://southwestfarmpress.com/news/nitrogen-management-0821/ --Pull-behind cob harvester Vermeer Corporation introduces the CCX770 Cob Harvester that is towed behind a combine for collecting corncobs. The new cob harvester is one of the first pieces of equipment developed to handle biomass materials for ethanol production. The harvester works with select combines. Vermeer officials report that they developed the harvester as more growers, especially in Iowa, look ahead to cob harvesting for ethanol plants that will use biomass materials. The self-contained CCX770 Cob Harvester holds up to 8,000 lbs. of material and unloads in about 90 sec. It includes a patented separation system that redistributes leaves and husks back to the ground. The harvester will unload into high-box semitrailers or wagons with its flexible unloading heights that range from 9 ft. 7 in. to 15 ft. 6 in. - Farm Industry News To view the full article go to: http://farmindustrynews.com/news/0818-pull-behind-cob-harvester/ --Biotech in organics Allowing organic crop producers to gain certification for biotech crops could encourage the development of a new type of environmentally sustainable agricultural production, with greater benefits for the consumer. Heresy? No, says Cyndi Barmore in a report prepared for the USDA's Foreign Agricultural Service, "Unexplored Potential of Organic-Biotech Production." Noting up front that the organic movement rejects biotech "as inherently contradictory to its fundamental goal of promoting environmental protection in agriculture," she nonetheless says, "A governmental decision to change organic regulations to permit the use of biotechnology could have far-reaching policy implications." - Hembree Brandon, Farm Press Editorial Staff To view the full article go to: http://deltafarmpress.com/news/brandon-column-biotech-0821/ --Future weed control I am enjoying the e-mails I am receiving from around the country regarding Palmer pigweed. Several have related their experiences with glyphosate-resistant pigweeds -- some good and some not so good. Others have e-mailed just to tell me they suspected they might have had a problem last year and this year those suspicions have been confirmed. Recognition of the problem is the first step in trying to correct it. A lot of folks recognize the problem now, I just wish more did. - Ford L. Baldwin, Practical Weed Consultants, LLC. To view the full article go to: http://deltafarmpress.com/news/weed-control-0821/ --Seed concentration debate Fairness, innovation and competition are what the Organization for Competitive Markets (OCM) wants to see within the U.S. seed industry. The group asserts that concentration and unfair trade practices have limited the availability of top seed and genetics at competitive prices and weakened the federal government's role in regulating the industry. OCM members met in St. Louis recently to discuss pursuing "aggressive and appropriate premarket regulation." OCM has publicly opposed biotechnology, stacking trait technologies and concentrated animal-feeding operations (CAFOs). In its Crop Seed Concentration Project findings, officials noted, "Monsanto's effort to enforce licensing agreements and protect its patent rights has dramatically altered American agriculture." Monsanto spokesperson Lee Quarles disagrees with the findings, pointing to industry rival DuPont's financial support of OCM. "It is disappointing that they would openly attack a company that is completely committed to agriculture and helping farmers improve yields through the development of biotech traits. Their funds would be better spent elsewhere in doing something positive for farmers," he says. - Corn & Soybean Digest To view the full article go to: http://cornandsoybeandigest.com/corn/news/0819-seed-concentration-debate/ ---------------------------------------- See how soybeans are grown a thousand miles away. Without leaving your couch. Watch the CruiserMaxx(R) Beans Farmer Swap Show on RFD-TV. Program times and information > http://www.cruisermaxxfarmerswap.com ---------------------------------------- ---------------------------------------- Free Marketing Kit Do you find farm marketing stressful? Reduce your stress using the expert strategies in our free Gain Marketing Confidence kit. Receive a free offer to assess your marketing strengths and opportunities using a unique process that producers tell us is "well worth it." Request your kit here. http://gainmarketingconfidence.com/ ---------------------------------------- ---------------------------------------- Test Your Grain Marketing Knowledge "Back to School with Ed Usset"" is a new feature of Corn & Soybean Digest, in cooperation with Ed Usset and the University of Minnesota Center for Farm Financial Management. Ed's challenging and authentic quiz questions are designed to test your grain marketing knowledge, and will help you learn while having fun! Come back every week for a new question. http://soybeandigest.com/ed-usset/index.html ---------------------------------------- KENT THIESSE ---------------------------------------- HAVE FARMLAND VALUES REACHED THEIR PEAK? The answer as to whether land values have reached their peak probably depends who you ask. Some ag lenders and university land economists have suggested that land values may have peaked for the time being, due to expected reduced farm income, lower crop prices, rising crop input costs and lower profitability in the livestock sector. Other farmland real estate experts, primarily individuals involved in real estate sales, have suggested that land values in 2009 have already recovered from some softening of land prices late in 2008. However, it should be noted that many of the most optimistic viewpoints relative to short-term land values came before the recent drop in corn and soybean prices. http://cornandsoybeandigest.com/kentthiesse/0825-farmland-value-peak/ ---------------------------------------- RICHARD BROCK ---------------------------------------- RAIN BOOSTS U.S. CROP RATINGS U.S. corn and soybean conditions improved last week as favorable rains boosted crops across western and northern parts of the Midwest, but crop development continues to lag well behind normal following a cool weekend. Monday afternoon's weekly crop update from USDA rated U.S. corn conditions 70% good/excellent as of Sunday, up 2 percentage points from a week earlier and 6 percentage points from a year earlier. U.S. soybean conditions were rated 69% good/excellent, up 3 percentage points from a week earlier and 8 points from a year earlier. The percentage of the U.S. corn crop that had reached the dough stage was put at 57%, up from 40% a week earlier, but behind 66% a year earlier and the five-year average of 79%. http://cornandsoybeandigest.com/richardbrock/0825-rain-boost-crop-ratings/ ---------------------------------------- AUDIO/VIDEO FEATURES ---------------------------------------- IHNEN BECOMES NCGA PRESIDENT Darrin Ihnen, Hurley, SD, will take over the helm of the National Corn Growers Association president role on Oct. 1, 2009. Here's a peek at what he sees as big issues facing corn growers this year and next. Be sure to check the September issue of Corn & Soybean Digest for an in-depth take on Ihnen's outlook. http://cornandsoybeandigest.com/tv/ag-issues/0729-Ihen-NCGA-president/ JOHN DEERE NEW 8R, 8RT SERIES TRACTORS Donald Worner presents high horsepower, row-crop tractors added to John Deere tractor lines. Retail prices for 8R Series is $166,000 to $267,000 and $230,000 to $262,000 for the 8RT Series. - FIN-TV, Farm Industry News http://farmindustrynews.com/tv/recent/0820-new-john-deere-tractor-series/ NEW 4630 JOHN DEERE SPRAYER Nick Weinrich introduces the new self-propelled sprayer from John Deere which reaches row-crop and small grain farmer needs. Retail pricing starts at $167,509. http://farmindustrynews.com/tv/recent/0820-john-deere-4630-sprayer/ ---------------------------------------- MORE MAGAZINE HIGHLIGHTS ---------------------------------------- QUICK POLL QUESTION This week's poll question: WHat would it take for you to use strip till on your farm? * I ALREADY DO * MONEY TO BUY RELATED EQUIPMENT * MORE EVIDENCE IT WOULD WORK ON MY FARM 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/ FDIC SEES AG BANKS AS THE NEXT BIG CRISIS I bet this headline will catch the attention of readers from the beltway of Washington, D.C. to the depths of rural America. This is the word on the street circulating in conversations with lenders and producers in agriculture and rural America on my recent Road Warrior travels. While these rumors may be false, perception becomes reality in the boardrooms and loan committees of our lending institutions, which will ripple to producers. Yes, banks, farm credit and other financial institutions are tightening agricultural credit extension. Credit is still available, but information and collateral requirements from borrowers are increasing and being scrutinized. For the most part, lending examinations of institutions loaning to agriculture are intensifying, particularly as bank failures in rural areas increase. The fallout from one institution with large ag credits under the eye of examiners was the shot heard around the country in lending circles. - Dave Kohl, Corn & Soybean Digest http://cornandsoybeandigest.com/davidkohl/0818-FDIC-ag-bank-crisis/ FARM STORAGE LOANS BEGIN The National Corn Growers Association (NCGA) is pleased the USDA's Farm Service Agency (FSA) started accepting and approving applications for farm storage loans on Monday, Aug. 17. USDA has released notices to FSA state and county offices on the new regulations for the Farm Storage Facility Loan Program improvements authorized in the Food, Conservation and Energy Act of 2008. "These loan changes are a great benefit to corn farmers," NCGA President Bob Dickey says. "Better farm storage allows producers to improve future planning for their businesses and increasing loan length and amounts of loans will make a huge difference. Many farmers are pleased to have these new options available for their farming operations. - Corn & Soybean Digest http://cornandsoybeandigest.com/ag-issues/news/0818-farm-storage-loan-approval/ SEED CONCENTRATION DEBATE Fairness, innovation and competition are what the Organization for Competitive Markets (OCM) wants to see within the U.S. seed industry. The group asserts that concentration and unfair trade practices have limited the availability of top seed and genetics at competitive prices and weakened the federal government's role in regulating the industry. OCM members met in St. Louis recently to discuss pursuing "aggressive and appropriate premarket regulation." OCM has publicly opposed biotechnology, stacking trait technologies and concentrated animal-feeding operations (CAFOs). In its Crop Seed Concentration Project findings, officials noted, "Monsanto's effort to enforce licensing agreements and protect its patent rights has dramatically altered American agriculture." Monsanto spokesperson Lee Quarles disagrees with the findings, pointing to industry rival DuPont's financial support of OCM. "It is disappointing that they would openly attack a company that is completely committed to agriculture and helping farmers improve yields through the development of biotech traits. Their funds would be better spent elsewhere in doing something positive for farmers," he says. http://cornandsoybeandigest.com/corn/news/0819-seed-concentration-debate/ ONLINE CALCULATOR HELPS GROWERS MEASURE NATURAL RESOURCE MANAGEMENT Corn farmers and growers producing soybeans, cotton and wheat now have access to a free, confidential online tool that will assess how some of their operational decisions affect natural resource management and stewardship. The calculator was created by the Keystone Alliance for Sustainable Agriculture's Field to Market initiative, of which the National Corn Growers Association (NCGA) is a member. "The Field to Market Initiative is proving to be a very important and practical source of information for growers," says Garry Niemeyer, an Illinois grower and NCGA corn board member active in the Field to Market Initiative. "NCGA is proud to have been involved in this effort, and we are pleased to see the progress corn farming has made to become a more sustainable practice in the U.S., reducing impacts while helping feed and fuel the world." - Corn & Soybean Digest http://cornandsoybeandigest.com/corn/news/0820-resource-management-online-calculator/ ---------------------------------------- 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. All rights reserved. This article is protected by United States copyright and other intellectual property laws and may not be reproduced, rewritten, distributed, re-disseminated, transmitted, displayed, published or broadcast, directly or indirectly, in any medium without the prior written permission of Penton Media.