Crop News Weekly: Export Activity Encouraging

Some progress is being made here in the early stages of the corn harvest, but so far its barely a ding on the door. The real work begins in another week or so as farmers wait for late maturing and drier corn. The jury is still out on just how this harvest will fair before the weather changes for the worse. But so far we're off to a slow start.

In the news this week, Corn exports will rebound sharply during the current marketing year, and soybean exports are expected to remain at the record level of the 2008-09 marketing year, according to new USDA projections. Elsewhere, lawmakers have released a long-awaited climate change bill, but not without an outcry of opposition. And President Barack Obama has nominated Islam A. Siddiqui for the position of Chief Agricultural Negotiator, Office of the U.S. Trade Representative (USTR). This position is responsible for negotiating with trade partners over market access issues and setting U.S. agricultural trade policy.

This is but a sampling of the news and issues we're following in this week's Crop News Weekly. Happy reading.

Corn exports will rebound sharply during the current marketing year, and soybean exports are expected to remain at the record level of the 2008-09 marketing year, according to new USDA projections.

“Corn exports during the 2009-10 marketing year are projected at 2.2 billion bushels, 237 million below the record exports during the 2007-08 marketing year, but 350 million above exports during the 2008-09 marketing year,” said Darrel Good, University of Illinois Extension economist.

“The U.S. share of the world corn export market is expected to increase from 60% last year to 65% this year. A larger U.S. share of the world export market reflects prospects for smaller crops in the exporting countries of Canada, South Africa and China,” he said. - Corn & Soybean Digest

Massachusetts Sen. John Kerry, chairman of the Senate Foreign Relations Committee chairman, and California Sen. Barbara Boxer, chairman of the Senate Environment and Public Works Committee, last week released a long-awaited, 800-page climate change bill that largely focuses on carbon sequestration through a cap and trade system.

While environmentalists largely embraced the new bill, agriculture advocacy groups — who had pushed successfully for a more farm-friendly House bill that passed earlier this summer — quickly derided it.

While continuing to claim cap and trade would cause energy prices to sharply rise, agriculture advocates pointed out the Senate legislation would require more robust greenhouse gas emissions cuts: 20 percent by 2020 versus the House bill’s 17 percent. - David Bennett, Farm Press Editorial Staff

President Barack Obama has nominated Islam A. Siddiqui for the position of Chief Agricultural Negotiator, Office of the U.S. Trade Representative (USTR). This position is responsible for negotiating with trade partners over market access issues and setting U.S. agricultural trade policy.

Siddiqui currently serves as vice president for science and regulatory affairs at CropLife America, where he is responsible for regulatory and international trade issues related to crop protection chemicals.

His experience includes working with USTR and representing the U.S. Department of Agriculture in bilateral, regional and multi-lateral agricultural trade negotiations while serving in various capacities in the Clinton administration.

Net farm income is forecast to be $54 billion in 2009, down $33.2 billion or 38 percent from the preliminary estimate of $87.2 billion for 2008, according to the U.S. Department of Agriculture’s Economic Research Service. 

The 2009 forecast is $9 billion below the average of $63.2 billion in net farm income earned in the previous 10 years. “In 2009, crop prices have continued to decline, and prices for livestock animals and products have experienced sharp declines,” the ERS noted in its Farm Income Forecast 2009.

The American Soybean Association (ASA) has signed a Joint Communiqué with Taiwanese grain and oilseed buyers that describes Taiwan’s intentions to purchase 3 million to 3.2 million metric tons (equivalent to 110 to 118 million bushels) of U.S. soybeans during 2010 and 2011.

The value of this purchase is estimated to be worth between $1.35 billion and $1.44 billion.

"Taiwan is buying from the United States because we can reliably provide them with both the quality and the quantity of soybeans they need," said ASA Chief Executive Officer Stephen Censky, who signed the Joint Communiqué on behalf of the ASA. "We are very pleased to strengthen the relationship between U.S. soybean producers and our customers in Taiwan because they have been an extremely good trading partner for U.S. farmers."

The Environmental Protection Agency said Sept. 30 it is moving forward with a plan to require the disclosure of the identities of all inert ingredients in pesticides, including those that are potentially hazardous, and it anticipates publishing a proposed rule in the Federal Register “within the next few months.”  EPA issued the announcement the same day that it responded to petitions, both dated Aug. 1, 2006, from the Northwest Coalition for Alternatives to Pesticides and the attorneys general of 14 states and the U.S. Virgin Islands calling for disclosure on pesticide labels of more than 350 inert ingredients they claim are hazardous.  Those ingredients include napthalene, ethylbenzene, allyl alcohol, and chloroacetic acid, according to the petitions.  The petitions were addressed to Steven Johnson, then EPA's administrator.

Tariffs on Chinese poultry imports are damaging our commodity export potential to China. Chinese markets are closed for a week long holiday.

Soybeans
Rain substantially slows soybean harvest helping keep current supplies tight. Traders expect USDA reports will reflect tight supplies. Ending stocks for Sept. 1 were 138 million bushels and 28 million above expectations. Sept. 1 last year, ending stocks were 205 million bushels. Soybean crush is 9 million bushels below last month and as much below the crush last year at this time. Soybean sales are nearly double the 5 year average and 88 percent above last year. USDA quarterly ending stock estimates of 138 million bushels was 27 million greater than market traders anticipated.

Corn
Corn crop maturity is 37 percent where the average is 72 percent. U.S. corn maturity is the lowest in 24 years. Harvest delays are significant. Only 6 percent of our corn is harvested where 18 percent is average. Harvest is the slowest in 25 years. Ethanol production has increased by 34,000 barrels per day. The current production rate is 728,000 barrels per day. That is a 2 million barrel increase from last month. Ethanol use is 45 million bushels above USDA projections of 3.67 billion bushels. - Ray Nabors, Heartland Ag Network

Producers in Southeast Missouri who have participated in the Conservation Security Program will see its successor being promoted over the duration of the new farm bill. Also labeled CSP, the Conservation Stewardship Program began signup statewide in August.

The new Conservation Stewardship Program not only has a name change, but has a facelift too. Enhancements are different and the monetary incentives are also different. - Scott Crumpecker, USDA-NRCS RC&D Coordinator

Joseph H. Layton, Jr., a soybean, corn and grape producer on Maryland’s Eastern Shore, emphasized the priority need for increased federal funding for food and agricultural research, Extension and education at an oversight hearing convened by the House Agriculture Subcommittee on Conservation, Credit and Research regarding implementation of the 2008 Farm Bill Research Title.

Layton testified as a producer and on behalf of the American Soybean Association (ASA) and the National Coalition for Food and Agricultural Research (National C-FAR), and the USDA National Agricultural Research, Extension, Education and Economics (NAREEE) Advisory Board.

The Environmental Protection Agency said Sept. 30 it is moving forward with a plan to require the disclosure of the identities of all inert ingredients in pesticides, including those that are potentially hazardous, and it anticipates publishing a proposed rule in the Federal Register “within the next few months.”

EPA issued the announcement the same day that it responded to petitions, both dated Aug. 1, 2006, from the Northwest Coalition for Alternatives to Pesticides and the attorneys general of 14 states and the U.S. Virgin Islands calling for disclosure on pesticide labels of more than 350 inert ingredients they claim are hazardous.

EDITOR'S NOTE

FROM OUR EDITORS

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