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CROP NEWS WEEKLY
In the September 30, 2009 Issue:
Brought to you by the editors of
Corn & Soybean Digest and Farm Industry News
 Soy rust: 'eye-opening' speed
 CSP deadline extended
 EPA's indirect land use rules challenged
 Field narrows for biofuel cover crops
 Rain keeps corn in fields
 Markets: all eyes on weather
 Center releases annual PACE statistics
 Cap and trade: AFBF's thoughts
 Updating the Clean Water Act
 Financial guru to address AFBF meeting
 A very successful corn operation
 Asia conference leads to $392 million in ag sales
 Biodegradable sub for polystyrene

EDITOR'S NOTE

Logan Hawkes
09/30/09

Across much of the Midwest corn continues to mature as some harvesting has started in a few southern areas of the corn belt, but the bigger picture indicates harvest could be well behind schedule in most areas. Growers remain hopeful the fall season will be slow to arrive.

Of growing concern is the rapid spread of Soybean rust. Since early September, Asian soybean rust has been very active in Arkansas. The weather — a long string of rainy, cloudy days — has been “perfect” for disease to develop. In other news, USDA has extended by 30 days (to Oct. 28) the public-comment period for the Conservation Stewardship Program’s (CSP) interim final rule (IFR). USDA also has extended the public comment period for the IFR Environmental Analysis and Finding of No Significant Impact until Oct. 28. And three Midwest senators have now introduced legislation that would prevent EPA from penalizing U.S. corn and soybean growers for land use changes or potential land clearing for increased biofuel production in other countries.

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

FROM OUR EDITORS

Soy rust: 'eye-opening' speed

Since early September, Asian soybean rust has been very active in Arkansas. The weather — a long string of rainy, cloudy days — has been “perfect” for disease to develop, says Rick Cartwright, Extension plant pathologist with the University of Arkansas.

“It’s developing extremely rapidly where it’s present — and it is present in almost all of Arkansas, now. The only exception may be the southwest corner of the state. It’s been found on the western border, the Arkansas River Valley and all the way up the Missouri line.”

Have there been any changes in fungicide recommendations?

“We’re still saying if you’ve got late beans in growth stage 5.5, or younger, then spray them with a triazole fungicide. Once the beans are past growth stage 6 — where the beans are touching in the pods — we give up spraying, pretty much, under the assumption the crop will outrun any damage. - David Bennett, Farm Press Editorial Staff

FULL ARTICLE >>

CSP deadline extended

USDA has extended by 30 days (to Oct. 28) the public-comment period for the Conservation Stewardship Program’s (CSP) interim final rule (IFR). USDA also has extended the public comment period for the IFR Environmental Analysis and Finding of No Significant Impact until Oct. 28.

The deadline for the CSP’s first sign-up and ranking period is Sept. 30. More program details are available at USDA’s Natural Resources Conservation Service CSP Web site.

FULL ARTICLE >>

EPA's indirect land use rules challenged

Three Midwest senators have introduced legislation that would prevent EPA from penalizing U.S. corn and soybean growers for land use changes or potential land clearing for increased biofuel production in other countries.

Sens. Tom Harkin and Charles Grassley of Iowa and Ben Nelson of Nebraska said EPA’s proposed rulemaking for implementing the so-called Renewable Fuel Standard 2 or RFS2 would limit the U.S. production and use of biofuels required in the energy bill passed by Congress in 2007.

Their legislation, a proposed amendment to the Senate Interior-Environment Appropriations bill would prohibit the EPA, for one year, from spending funds to include international indirect land use change emissions in the implementation of the RFS. Forrest Laws, Farm Press Editorial Staff

FULL ARTICLE >>

Field narrows for biofuel cover crops

An Agricultural Research Service (ARS) scientist is looking for cover crop perennials that provide the best balance in biofuel production between agronomic success and environmental sustainability.

This work is being supported by the Sun Grant Initiative, a national network of land-grant universities and federally funded laboratories working together to study, produce, and commercialize renewable, biobased energy technologies.

ARS agronomist Jeremy Singer, who works at the National Soil Tilth Laboratory in Ames, Iowa, is conducting this research as part of a three-component study of optimizing corn cultivation for biofuel production. He’s evaluating perennial grass crops to assess their potential for mitigating soil erosion and enhancing soil organic matter even in fields where every bit of corn and stover--stalk, leaves and all--is harvested either for grain or cellulosic ethanol production. - Ann Perry, United States Department of Agriculture

FULL ARTICLE >>

Rain keeps corn in fields

Nearly 80 percent of Mississippi’s corn crop is safely in storage, and the remaining acres are ready for harvest but stuck in wet fields getting rain-drenched for days.

Erick Larson, grain crops agronomist with the Mississippi State University Extension Service, said the corn harvest is largely complete in the southern part of the state, including the south Delta. However, the corn in the northern areas of the state was planted later and most remains in the fields.

“All the corn is mature,” Larson said. “Corn is naturally protected somewhat from rainfall if the ears tip over after the plants reach physiological maturity. Not all ears do that, and the number of ears tipping over can vary substantially from field to field. If it doesn’t tip over, water can collect and the husk holds it in the ear.” - Bonnie Coblentz, MSU Ag Communications

FULL ARTICLE >>

Markets: all eyes on weather

Crop water use in the Delta and Mid-South has dropped below 0.1 inch, telling us that crops are drying down. Continued rain is adversely affecting yields and quality especially in rice and cotton. Rain and warm temperatures in the Corn Belt are price bearish with increased production potential.

September hog herds were the smallest in three years. Profits are not expected to return to the pork producers before May 2010. Use of feed grains will likely be lower than normal. Market traders are again considering inflation effecting commodity prices.

The global economic recovery is accelerating. Traders are worried about inflation and that supports prices. - Ray Nabors, Heartland Ag Network

FULL ARTICLE >>

Center releases annual PACE statistics

According to new statistics released by American Farmland Trust's Farmland Information Center, local farmland protection efforts slowed in 2008, likely due to record high land values. The statistics were generated from a nationwide survey of 77 independent "purchase of agricultural conservation easement" (PACE) programs in 19 states. PACE programs pay farmers and ranchers to permanently protect their land with conservation easements that limit future development and keep farmland available for agriculture.

The survey found that communities spent more than $277 million to protect 15,492 acres of farm and ranch land in 2008. Although locals spent 77 percent more than they did in 2007, they protected 67 percent fewer acres and acquired 46 percent fewer easements.

Next year's news may be worse. Although land values have decreased, the economic downturn and local budget shortfalls have impacted funding for farmland protection. According to respondents, available program funds are down 18 percent for fiscal year 2009, and state and federal matching funds for agricultural easement acquisitions may be harder to come by.

FULL ARTICLE >>

Cap and trade: AFBF's thoughts

After passing the House, a cap and trade bill continues to be hotly debated in the Senate. Competing analyses on the complex legislation have been released in recent weeks and, depending on the conclusions drawn, touted by proponents and naysayers of the proposed carbon sequestration plan and market.

Count the American Farm Bureau Federation amongst the legislation’s naysayers. Bob Young, AFBF chief economist, spoke with Delta Farm Press just before Congress returned from summer recess. The AFBF believes the proposed legislation is flawed in multiple ways and, among other deleterious effects if enacted, will mean increased input costs for farmers in coming decades. - David Bennett, Farm Press Editorial Staff

FULL ARTICLE >>

Updating the Clean Water Act

The authority to regulate every pond and puddle — that’s how many agricultural interests see proposed changes in the Clean Water Act.

While the act, passed in 1972, has been described as one of the great legislative success stories for helping to clean up some of the worst pollution excesses of previous decades (including a river so badly contaminated that it caught fire), a bill (S.787) that would broaden its scope has caused worries in the farm community.

The sticking point centers on the removal of the requirement that waters subject to federal regulation be “navigable” or connected to navigable waters.

Taking that term out of the legislation “would bring about the largest expansion” of the Clean water Act since it was passed nearly 40 years ago, says Don Parrish, water quality specialist with the American Farm Bureau Federation. - Hembree Brandon, Farm Press Editorial Staff

FULL ARTICLE >>

Financial guru to address AFBF meeting

Peter Ricchiuti, assistant dean of Tulane University's A.B. Freeman School of Business and a nationally known expert on financial markets, will speak Jan. 11, during the American Farm Bureau Federation’s 2010 annual meeting.

Ricchiuti will speak during a conference hosted by the American Agricultural Insurance Company.

Ricchiuti’s presentation will be one of the highlight conferences slated to run during AFBF’s 91st annual meeting, Jan. 10-13 in Seattle. More than 5,000 Farm Bureau members from across the nation will gather to learn about the issues shaping agriculture today and participate in a grassroots policy setting process that will guide AFBF through 2010. AAIC, headquartered in Schaumburg, Ill., is a direct provider of reinsurance to Farm Bureau insurance companies.

FULL ARTICLE >>

A very successful corn operation

Ample rainfall and a fertility program designed to maximize yield and good hybrids could make for a pleasant ride on the combine this season for Triple G Farms in Arlington, Ky. As of late July, their corn crop was shaping up to potentially be one of their best ever.

Triple G Farms is a three-way partnership between Bobby Grogan and his sons, Darren and Brian. They farm 11,000 acres of corn and soybeans, divided roughly in half and rotated each year.

This is the first year in a long time that the farm has not planted wheat. “We took a look at our input costs at the time and with the yield drag you typically get in double-cropped beans, we couldn’t make it work,” said Brian. “But that very well could change.” - Elton Robinson, Farm Press Editorial Staff

FULL ARTICLE >>

Asia conference leads to $392 million in ag sales

1.4 million metric tons of U.S. agricultural products, valued at $392 million, were sold and/or negotiated at the 6th Annual Southeast Asia U.S. Agricultural Cooperators Conference, held in Cebu, Philippines, earlier this month.

Sales of U.S. corn and distiller’s dried grains with solubles (DDGS), a co-product of U.S. ethanol production, totaled 263,000 tons, valued at approximately $34 million, a 27 percent increase from the 2008 conference. The conference was jointly hosted by the U.S. Grains Council and the American Soybean Association.

FULL ARTICLE >>

Biodegradable sub for polystyrene

Rigid, custom-fit foam pieces like those that keep computer monitors firmly in place inside cardboard boxes during shipping could be made with eco-friendly starch from potatoes, wheat or corn, instead of from petroleum, according to Agricultural Research Service (ARS) research plant physiologist Gregory M. Glenn.

Opting for starch in place of petroleum-derived polystyrene would lessen America’s dependence on petroleum.

Glenn works at the ARS Western Regional Research Center in Albany, Calif. For nearly two decades, he has been developing and patenting innovative, “green” techniques for transforming commonplace plant starches — like the silky white cornstarch kept in kitchen cupboards everywhere — into convenient, biodegradable foamed goods like shipping liners, dinnerware and more.

Co-inventor Simon K. Hodson collaborated with Glenn in developing two recent technologies. Both approaches yield strong, durable, and versatile biofoams that look like familiar polystyrene foam goods. Like those conventional foams, the biofoams can be manufactured to a range of densities and can be die-cut or molded into a seemingly limitless array of shapes, sizes and thicknesses.

FULL ARTICLE >>

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AUDIO/VIDEO FEATURES
NEW COMBINES AND TRACTOR TRANSMISSION FROM NEW HOLLAND
New Holland releases a new Class 8 CR9060 combine and the Class 9 CR9080 combine for corn and soybeans. Also new is the T7000 series tractor with a CVT transmission. - FIN/TV
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NEW COMBINE DYNAFLEX DRAPER HEADER FROM AGCO
The DynaFlex draper header for Gleaner, Massey Ferguson and Challenger combines was on display at Farm Progress Show. - FIN/TV
Watch the video
DAVE KOHL
FINANCIAL LEVERAGE: THE KILLER
Anyone in the protein or livestock industry knows the downside of high amounts of financial leverage. When the debt-to-asset ratio exceeds 50%, percent equity is below 50% and debt-to-equity level exceeds a ratio of 1:1, it places your business in big league financial operations. When reduced output prices and higher input costs occur, it places your business in late stages of the game, being significantly down on the scorecard.

My good friend, Ed LaDue of Cornell University, a retired agricultural finance professor, conducted a study of the 1980s farm crisis and discovered financial leverage was the No.1 predictor of business failure during that period. This is due in part to the fact that heavy financial obligations result in high debt service, i.e. principal and interest payments. These payments are considered a fixed expense or cost regardless of the economic environment. Reduced prices and higher input costs squeeze the margins needed to repay the financial obligations.
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KENT THIESSE
HARVEST IS UNDERWAY
Above-normal temperatures during most of the month of September in southern Minnesota have allowed the 2009 corn and soybean crops to either reach maturity or be very close to maturity. Many of the early planted corn hybrids have now reached physiological maturity, while some later-planted corn may need another week or so to reach maturity. Most soybeans are now turning color and dropping leaves, with some early varieties being harvested now. Full-scale soybean harvest has already begun in some areas, and should occur by around Oct. 1 in most portions of southern Minnesota. Areas of the state that had later planting dates will require week or two without a killing frost in order for crops to reach maturity.

The U of M Southern Research and Outreach Center at Waseca had accumulated a total of 436 growing degree units (GDUs) from Sept. 1 through Sept. 28, 2009, which is 35% above the normal GDU accumulation of 322 for the entire month of September. The total 2009 GDU accumulation at Waseca from May 1 through Sept. 28 is 2,266, about 7% below the normal GDU accumulation of 2,449. Prior to September, GDU accumulation since May 1 for the 2009 growing season had been running 10-15% or more behind normal. This significant improvement in GDU accumulation during September has greatly reduced the potential impacts of a killing frost to the 2009 corn and soybean crop in most areas of southern Minnesota.
MORE
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RICHARD BROCK
CORN AND SOYBEAN STOCKS DATA DUE
Wednesday morning’s USDA Quarterly Grain Stocks report is expected to be a yawner for the corn and soybean markets with trade prereport estimates putting Sept. 1 stocks of both grains nearly unchanged from USDA’s previous estimates of 2008-2009 ending stocks.

Trade estimates of Sept. 1 corn stocks average 1.719 billion bushels in a range from 1.665 billion to 1.803 billion bushels compared with USDA’s current 2008-2009 corn ending stocks estimate of 1.695 billion bushels and the previous year’s carryout of 1.624 billion bushels.

Trade estimates of Sept. 1 soybean stocks average 111 million bushels, only 1 million bushels above USDA’s current soybean ending stocks projection. Trade expectations for soybean stocks range from 90 million to 135 million bushels.
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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

SOY TRANSPORTATION COALITION PUBLISHES STUDY OF RAIL TRANSPORTATION OF SOYBEANS
The Soy Transportation Coalition (STC) recently published, “Railroad Movement of Soybeans and Soy Products” – a comprehensive report that sheds light on the critical role railroads play in the entire journey from farm to dinner plate.

The study highlights – on both a national and individual state level – the volume of soybeans, soybean meal and soybean oil moved by the rail industry, the leading destinations for those products and the revenue and rates associated with those movements. In particular, the analysis focuses on the volume of soybeans and soy products that are transported at potentially excessive rates, those states whose soybean industry is most dependent on rail, and those railroads that transport the highest volumes of soybeans and soy products. - Corn & Soybean Digest
MORE

NCGA PRAISES NEW USDA INITIATIVE ON MISSISSIPPI RIVER
The National Corn Growers Association strongly endorses a new initiative announced today by the USDA to help provide for healthier watersheds in the Mississippi River Basin. Corn farmers have long been committed to conservation practices to decrease soil erosion and nutrient runoff from their fields.

“This is terrific news for growers,” says David Ward, chairman of NCGA’s production and stewardship action team. “Farmers have long been carrying out many of the recommendations listed by the USDA as best practices, and their support will help us promote these efforts and expand their adoption throughout the basin. We’ve always believed that an approach that values and promotes voluntary efforts works much better than regulatory mandates, which usually come at a much higher cost.” - Corn & Soybean Digest
MORE

CORN STOVER: HOW MUCH CAN YOU HARVEST
How much corn crop residue, or stover, can be removed for biofuels without harming soil? An Agricultural Research Service (ARS) study of a 10-mile circle around the University of Minnesota’s Morris campus offers some clues.
Dave Archer, an agricultural scientist at the ARS Northern Great Plains Research Laboratory in Mandan, ND, chose that circle area because of the university’s plans to heat its buildings with gas released by a controlled burning of corn stover – a process called gasification.

Using the ARS Environmental Policy Integrated Climate (EPIC) model, Archer found that if farmers in that area harvested 40% of the stover, this would increase soil erosion by only 0.25 ton/acre/year. Erosion levels could be minimized by harvesting stover from areas less susceptible to erosion, by removing stover at lower rates and by using conservation tillage, diverse crop rotations and other conservation cropping practices. - Corn & Soybean Digest
MORE

SEEKING MEMBERS FOR 100 BUSHELS CLUB
The Missouri Soybean Association (MSA) is announcing a new club, a club any soybean farmer would want to be a member of – the 100 Bushels Club. Farmers across the nation are encouraged to keep an eye on their yield monitors this fall, especially in fields where production may be pushing triple digits.

Inductees of the club will be honored at the Commodity Classic in Anaheim, CA, in 2010. There they will receive an elite 100 Bushels Club blazer.

The guidelines are simple: The yield check area must be over 4 acres total. A minimum of 2 acres must be harvested in a continuous block for each yield check (there will be two checks).

A qualified judge must be present to directly supervise the measurement, harvest and weighing process. A qualified judge can be a county Extension agent, agricultural education instructor, senior staff person of the Natural Resources Conservation Service, Farm Credit Services representative, Farmers Home Administration representative, bank ag loan officer, private crop consultant, state or private college agricultural staff, farm manager accredited by the American Society of Farm Managers, office manager of Consolidated Farm Service Agency or a retired person from one of these occupations. - Corn & Soybean Digest
MORE

DEPARTMENT OF ENERGY AWARDS POET $6.85 MILLION
POET’s task of securing 700 tons of cellulosic biomass per day of operation got a big boost this week from a $6.85 million funding increase to an existing grant from the U.S. Department of Energy (DOE).

This is the first of two funding increases from DOE to help establish a market for corn cobs. The second, expected next year, is estimated to provide an additional $13.15 million. Cobs are the feedstock for POET’s effort to commercialize cellulosic ethanol, Project LIBERTY, which will be built in Emmetsburg, IA. The grant increases will play a key role in establishing corn cobs as a viable commodity and setting the stage for corn cob harvesting across the U.S. - Corn & Soybean Digest
MORE

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