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CROP NEWS WEEKLY
In the September 23, 2009 Issue:
Brought to you by the editors of
Corn & Soybean Digest and Farm Industry News
 Soybean rust in southeast Missouri
 ASA urges final biodiesel comment push
 When greenhouse gas meets ice age
 Markets: crop progress behind normal
 Algae-fueled car finishes cross country tour
 Producers look nervously to fall
 GPS helps locate erosion prone areas
 USDA, HHS unveil food safety Web site
 The battle for seed share
 Biopesticides in mainstream ag

EDITOR'S NOTE

Logan hawkes
09/23/09

It's official now. The fall season has arrived in the northern hemisphere and there's little doubt that a change in the weather is coming. For Midwest farmers that may be sooner than later - or not. Meanwhile, harvest is underway in parts of the eastern and lower corn belt, but efforts so far are just scratching the surface. Corn is still maturing in most areas, so the race against the changing season is on.

In the news this week, Asian soybean rust has been detected in southeast Missouri. The infected fields are in the three southernmost counties of the state. Also this week, the American Soybean Association (ASA) is urging all U.S. soybean producers to voice concerns with the Environmental Protection Agency’s proposed rule on the implementation of the expanded Renewable Fuel Standard (RFS-2) before the Sept. 25 deadline for comments.

You'll find these stories and more in this issue of Crop News Weekly. Happy reading.

FROM OUR EDITORS

Soybean rust in southeast Missouri

Asian soybean rust was found in fields in the Missouri counties of New Madrid, Pemiscot and Dunklin Sept. 18, said Allen Wrather, University of Missouri Extension plant pathologist at the MU Delta Center, Portageville, Mo.

“These were fresh infections with no visible yellowing of the soybean leaves,” Wrather said. “The infections were fairly extensive, with rust pustules emitting spores.” Earlier in the week, the MU scouts had found no rust.

The infected fields are in the three southernmost counties in Missouri. - Duane Dailey, University of Missouri Cooperative Media Group

FULL ARTICLE >>

ASA urges final biodiesel comment push

The American Soybean Association (ASA) is urging all U.S. soybean producers, their family members, and agribusinesses to voice concerns with the Environmental Protection Agency’s (EPA) proposed rule on the implementation of the expanded Renewable Fuel Standard (RFS-2) before next week’s Sept. 25 deadline for comments.

The EPA’s proposed rule on RFS-2 implementation is significantly flawed and would do unnecessary harm to the competitive position of the U.S. soy biodiesel industry.

"If you have a vested interest in the future profitability of soybeans, please take a minute to send a letter to Environmental Protection Agency (EPA) Administrator Lisa Jackson," said ASA President Johnny Dodson, a soybean producer from Halls, Tenn. "A loss of the domestic biodiesel market would significantly decrease prices paid to U.S. farmers for their soybeans."

FULL ARTICLE >>

When greenhouse gas meets ice age

Could global warming one day create beachfront property in Clarksdale, Miss.? Or cotton production in Ames, Iowa? Or is it just as likely, as some scientists believe, that in the future a large glacier will occupy much of North America — 2 miles thick in some places?

In geologic time, glacial periods dominate warming periods, lasting up to 10 times longer. Scientists say the current warming trend began about 11,000 years ago. No one can deny that during this time, humankind has flourished, and agriculture’s development has been nothing short of phenomenal.

However, since 10,000 years is about the average duration of a warming trend, scientists believe the planet is now past-due for another ice age. And this begs a very important question about man-made global warming. What happens (drum roll, please) when greenhouse gas meets ice age? - Elton Robinson, Farm Press Editorial Staff

FULL ARTICLE >>

Markets: crop progress behind normal

Weather boosted crop maturity with more heat units and USDA crop condition ratings are way above average this week. Crop development is way behind normal. Weather remains the major driving force in the markets.

Palm oil and soybean prices dropped to the lowest level in six months following USDA predictions of record production at 3.245 billion tons. USDA crop condition ratings this week are 68 percent good to excellent. The rating is bearish but there is cooler weather in the forecast. A possible frost in the northern Corn Belt would support higher prices.

Traders have stopped selling corn with the threat of frost in the forecast. Only 12 percent of corn is mature — 37 percent is average. The corn crop has now reached dent stage over 60 percent of U. S. acres. USDA predicts yields near 162 bushels per acre and they have a track record of predictions below the actual yield. Total production numbers near 12.95 billion bushels are bearish but use is projected to increase to over 13 billion bushels. Export demand for corn remains strong. Over 1 million tons were sold again this week. - Ray Nabors, Heartland Ag Network

FULL ARTICLE >>

Algae-fueled car finishes cross country tour

Algaeus, the first plug-in hybrid vehicle to cross the U.S. on fuel containing a blend of algae-based fuel, finishes its cross-country tour today in New York City. The event kicks of the nationwide premiere of FUEL, a Sundance Film Festival award winning documentary addressing the country’s reliance on foreign oil, but also suggesting solutions. To view a trailer, visit www.thefuelfilm.com.

The vehicle, fueled by an algae-blend product developed by Sapphire Energy, San Diego, CA, gets 150 miles per gallon. It is based on a 2008 Toyota Prius that has been equipped with an added battery pack, a plug and an advanced energy management system. The engine has not been modified.

Sapphire Energy has attracted the likes of Bill Gates, who has invested in the company. - Lynn Grooms, Farm Industry News

FULL ARTICLE >>

Producers look nervously to fall

For the most part, Mother Nature has provided U.S. commodity producers with a good mix of moisture and sunshine this season, resulting in projected records for soybean production and corn yield. The big concern now is whether there is enough good weather left in the season to fully mature and gather the crop.

USDA’s Sept. 11 Crop Report and World Agricultural Supply and Demand Estimates pegged corn production at 13 billion bushels, compared to 12.9 billion bushels estimated by analysts, and for soybeans, a record 3.25 billion bushels, on par with average estimates. Anticipated corn yield of 161.9 bushels per acre, if realized, would also be a record.

Much of the concern about the soybean and corn crops emanates from early-season growing and planting conditions that were marginal at best. “We got off to a late start, particularly in southern Illinois, southern Indiana, part of Ohio and northern Kentucky,” said Jim Bower, Bower Trading, speaking at a CME Group press briefing on the USDA reports. - Elton Robinson, Farm Press Editorial Staff

FULL ARTICLE >>

GPS helps locate erosion prone areas

Reducing soil erosion in fields is important to maintaining the quality of the environment, and it could have economical benefits for farmers.

However, determining areas in a field that are prone to soil erosion is time consuming and expensive for agencies that provide this service, such as the U.S. Department of Agriculture's Natural Resources Conservation Service.

In a recent study, researchers in the University of Kentucky College of Agriculture demonstrated that many eroded areas on a Kentucky farm were identifiable using digital terrain information. - Katie Pratt, University of Kentucky

FULL ARTICLE >>

USDA, HHS unveil food safety Web site

The departments of Agriculture and Health and Human Services have joined efforts on a new consumer Web site at http://www.foodsafety.gov. The site is designed to help consumers and families get information on food safety and food recalls in one convenient place.

The new site features information from all the agencies across the federal government that deal with critical food and food safety information, including preventive tips about how to handle food safely, alerts on life-saving food recalls, and the latest news from the key agencies.

http://www.foodsafety.gov provides consumers with one easy place to sign up to receive e-mail and RSS alerts on recalled or potentially unsafe food, as well as get information from the top scientific experts across the government on food safety. Later phases of the site to be launched will include recall feeds for texting and mobile phones.

FULL ARTICLE >>

The battle for seed share

The Seed industry is a competitive business, but 2009 may have set the high-water mark on just how competitive the industry has become.

Corn seed remains the largest component of the commercial seed market; one industry expert pegged its global value at $9 billion for 2009. “Although the planting of corn in the U.S. declined, the overall value of the U.S. corn seed market rose as a result of increased adoption of GM [genetically modified] crops with stacked traits,” says John McDougall of Phillips McDougall, a private agricultural consultant. “The soybean seed market experienced strong growth, increasing to almost $4.3 billion globally, aided by a strong rise in soybean plantings.”

The number of corn and soybean acres fluctuates from year to year, but the overall total remains relatively constant. To increase market share, seed companies must do battle at the farm gate. - Mark Moore, Farm Indstry News

FULL ARTICLE >>

Biopesticides in mainstream ag

It is not widely known, but more than 80 percent of the currently available biopesticides are in use by mainstream agriculture and are as effective as conventional, synthetic chemical pesticides, according to Pam Marrone, founder and CEO of Marrone Bio Innovations, Inc., based in Davis, Calif.

Biopesticides, commonly associated with organic farming, are processed through fermentation or extraction from natural sources for control of insects, weeds, nematodes, and plant diseases. - Dan Bryant, Contributing Writer

FULL ARTICLE >>

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AUDIO/VIDEO FEATURES
NEW HOLLAND RUSTLER UTILITY VEHICLE
New Holland introduced a utility vehicle to the farm market during Farm Progress Show. The Rutler is available from a 2-passenger, 2-wd to a four-passenger model. Prices: $7,500 to $12,000 for 4 passenger. - FIN/TV
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SUNFLOWER RELEASES FIRST STRIP-TILL MACHINE
AGCO's Sunflower division is selling the new 7600 Series Strip-Till System in 8-row and 12-row models. - FIN/TV
Watch the video
DAVE KOHL
HEADWINDS IN THE ECONOMY: PART II
Last time we discussed some of the components running against the wind in the domestic and global macro-economies. Let’s continue the discussion.

What happens when the U.S. and world governments take the training wheels off the economy? Stimulus packages have been coordinated around the world in major economies. The results have been more apparent in China and other emerging countries – which represent 18% of the world economy – than in the U.S. In North America, the stimulus boost has been less noticeable; however, it appears growth in the Gross Domestic Product (GDP) and will be moving toward a positive number in the third and fourth quarters of this year. A major question that still has not been answered is what are the new engines for economic growth when the economy turns around? Perhaps someone needs to let our leaders know that it may be agriculture.
MORE
KENT THIESSE
ONE MORE ACRE DECISION BY SEPT. 30
Sign-up for the new Average Crop Revenue Election (ACRE) Program for 2009 ended in mid-August; however, some farm operators who enrolled in the program have one final decision to make by Sept. 30, 2009. Any producers who have total crop acreage enrolled in ACRE for 2009 that exceeds 120% of the total 2009 crop base acres on any farm unit will need to prioritize their base acres for order of ACRE payment by Sept. 30 at their county Farm Service Agency (FSA) office. Otherwise, FSA will prorate the crop acreage eligible for ACRE payments, based on the percentage of crop base acres for each crop. The crop acreage priority decision at the FSA office is for the 2009 crop year only. Producers will have an opportunity to reprioritize their crop acreage for ACRE for the 2010 crop year.

Producers who have less than 120% of total crop base acres as planted crop acres on a farm unit in 2009 do not have to make any decisions on ACRE acreage priority or contact the FSA office by Sept. 30. In this situation, the total crop acreage on the farm unit would be eligible for 2009 ACRE Program, depending on the crop that was planted for 2009.
MORE
RICHARD BROCK
CORN MATURING SLOWLY, BUT NO FROST THREAT
Even with last week’s warm, dry Midwest weather, the march to maturity remained slow for the U.S. corn and soybean crops, but there continues to be no clear threat of frost for the late crops.

USDA on Monday in its weekly crop update reported that 21% of U.S. corn had reached maturity as of Sunday, up 9 points from a week earlier, but behind last year’s pace of 30% and well under half of the five-year average of 55%.

In the top corn state of Iowa, 22% of the crop was reported mature against an average of 55%, while in No. 2 Illinois, the crop continued to lag even farther behind at only 13% mature against an average pace of 69%.
MORE
MORE MAGAZINE HIGHLIGHTS
QUICK POLL QUESTION
This week's poll question: What is the primary reason that you have not enrolled in a voluntary carbon sequestration program that pays you for no-till practices?

* I HAVE ENOUGH TO DO
* PAYMENTS SHOULD BE HIGHER
* MY OPERATION NOT SUITED TO NO-TILL

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

SOYBEAN RUST PROBLEM FOR LATE FIELDS
In the third week of September, with new sets of Midsouth counties and/or parishes frequently being added to the Asian soybean rust “confirmed” list, the disease is certainly worrisome for producers with late-planted soybean crops.

Many soybeans in central Arkansas’ Jackson County “are still a ways away from harvest,” says Randy Chlapecka, the county Extension staff chair for the University of Arkansas Division of Agriculture. “There are only a few fields ready. Most are still weeks away.”

Soybean rust was confirmed in Jackson County on Sept. 14.

“We still have some late-maturing, late-planted soybeans that are vulnerable to soybean rust. Those will probably need to be sprayed with a fungicide when the weather finally clears.”

Current wet conditions “are ideal for soybean rust,” says Jeremy Ross, Arkansas Extension soybean specialist. “Very few, if any, beans were sprayed (the week of Sept. 14). Here lately, we confirm rust in counties almost like clockwork. Pretty much the entire state has rust, now. As soon as it dries up the vulnerable beans will need to be sprayed.” - Corn & Soybean Digest
MORE

CROP PRIORITY IN ACRE
Farmers who signed up for the Average Crop Revenue Election (ACRE) can change their crop priority by Sept. 30. Crop priority determines which crop receives priority for ACRE payments. If corn is picked as the first priority and soybeans the second priority, ACRE payments will be received on the maximum number of planted corn acres and the remainder of eligible acres will be allocated to soybeans. Conversely, ACRE payments will be received on the maximum number of soybean acres if soybeans are chosen as the first priority. The default is “no priority,” in which case ACRE payments are received in proportion to planted acres.

Crop priority only matter on farms that meet the following two conditions:


1. Total acres planted to eligible crops times 0.833 exceeds total base acres. In this comparison, the base of an individual crop does not matter. It is total base acres – equal to the sum of base acres in each crop – that matters. As an example, take a farm with 30 base acres in corn and 30 in soybeans. This farm has 60 total base acres. If planted acres exceed 72, or 60 acres divided by 0.833, then crop priority may influence ACRE payments from that farm. (Note: This condition can be stated equivalently as the sum of planted acres exceeds total base acres times 1.2. This is equivalent because 1.2 equals 1 divided by 0.833.)

2. The farm plants more than one crop. If these conditions are not met, priority will not influence ACRE payments and leaving the priority at the “no priority” default is appropriate. On the other hand, if these conditions are met, there may be a desire to change priority. The priority that maximizes payments is the one giving priority to the crop with the largest per acre payment. At this point, ACRE payments for 2009 are not known. Hence, estimates of expected payments need to be made when choosing crop priority. - Corn & Soybean Digest
MORE

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"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.

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