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CROP NEWS WEEKLY
In the October 14, 2009 Issue:
Brought to you by the editors of
Corn & Soybean Digest and Farm Industry News
 Soybean rust remains a concern
 Immigration reform tough issue
 USDA announces CRP rental payments
 October crop forecast a mixed bag
 Lincoln: cap and trade, farm bill, WTO
 Child nutrition program advances
 Markets: China buying soybeans
 Foreigners own more U.S. farmland
 2010 DCP, ACRE signup begins
 Kentucky growers anticipate good corn harvest
 USDA: rains cut Mid-South crops

EDITOR'S NOTE

Logan Hawkes
10/14/09

It's a slow start to the harvest season across most of the Midwest as rains continue to plague efforts to get into corn and soybean fields. With colder temps and heavy frosts in parts of the Dakotas in recent days, the race is on to complete the harvest before yields are greatly compromised.

In the top of the news, more concerns are being voiced over Asian soybean rust as it spreads to parts of the Mid South. Also this week, read the latest about immigration reform and how it could affect agriculture. Back to the subject of harvest, get the latest USDA projections for October. And find out about China's renewed interest in U.S. soybeans.

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

FROM OUR EDITORS

Soybean rust remains a concern

Much has been invested in recent years in learning how to detect and control Asian soybean rust, says Dennis Delaney, Auburn University Extension soybean specialist.

“We’ve had a lot of finds in the past couple of weeks as soybeans start to mature and the weather cools and we get a little more rain. We’ve found it in 22 Alabama counties,” said Delaney in mid-September during a central Alabama crops tour.

The disease also has been found in the Memphis area and in Arkansas. “I’m fairly certain most states have some level of soybean rust. But most of the time, it has been really late when we find it, it is at low levels, and it’s not enough to cause much damage,” says Delaney.

"I'm fairly certain most states have some level of soybean rust. But most of the time, it has been really late when we find it, it is at low levels, and it's not enough to cause much damage." - Paul L. Hollis, Farm Press Editorial Staff

FULL ARTICLE >>

Immigration reform tough issue

The thorny issue of immigration reform may get pricklier before it gets better, and Congress may have a narrow window of opportunity to make meaningful changes in a system that has not worked well for years before the cycle of national elections makes passing any contentious issue even more difficult.

In the meantime, the produce industry, a labor-intensive business, depends on immigrant labor for much of its harvesting, packing and processing chores and finding a reliable pool of legal immigrant workers is increasingly difficult.

Frank Gasperini, with the National Council of Ag Employers; Dan Brown, an attorney with Berry Appleman and Leiden LLP; and U.S. Representative Henry Cuellar, D-Texas, discussed current immigration issues and potential for reform during the recent Texas Produce Convention in Austin, Texas. - Ron Smith, Farm Press Editorial Staff

FULL ARTICLE >>

USDA announces CRP rental payments

Agriculture Secretary Tom Vilsack has announced that USDA will distribute approximately $1.7 billion in Conservation Reserve Program (CRP) rental payments to participants across the country in fiscal year 2010.

"I encourage interested producers to consider enrolling their land through continuous sign-up opportunities," Vilsack said.

Producers holding about 758,000 contracts on 424,000 farms will receive an average of $51.52 per acre. The number of contracts is higher than the number of farms because producers may have multiple contracts on a single farm. The payments allow producers to earn an average of $4,104 per farm enrolled in the program.

FULL ARTICLE >>

October crop forecast a mixed bag

Excessive rainfall in September is eroding yield expectations for Mid-South corn and cotton crops, according to USDA’s Oct. 9 Crop Production Report.

The report, an assessment of crops as of Oct. 1, reduced expected corn yields by 7 bushels in Mississippi, 2 bushels in Louisiana and Arkansas, while raising it 1 bushel in Tennessee. Forecast cotton yields declined in every Mid-South state except Missouri.

U.S. cotton production is forecast at 13 million bales, down 3 percent from last month but up 1 percent from last year. Upland cotton production is forecast at 12.6 million bales, down 3 percent from last month but up 2 percent from last year. - Elton Robinson, Farm Press Editorial Staff

FULL ARTICLE >>

Lincoln: cap and trade, farm bill, WTO

Arkansas Sen. Blanche Lincoln presided over her first Senate Agriculture Committee hearing as chairman on Sept. 30. Having taken over the chairmanship several weeks earlier (for more, see Lincoln to chair Senate Ag Committee), Lincoln spoke with Delta Farm Pressshortly after the hearing. When asked how it felt to chair her first committee meeting:

“It felt pretty good, I have to tell you. I was extremely proud and certainly humbled to have the confidence of my colleagues. We’re going to do a good job, work hard and work closely with folks in rural America and agricultural production and remind the American people what a great job they do.” - David Bennett, Farm Press Editorial Staff

FULL ARTICLE >>

Child nutrition program advances

The agricultural appropriations bill now pending in the Senate would provide nearly $150 million in child nutrition initiatives aimed at fighting hunger and promoting health among children in Arkansas and around the country, Sen. Blanche Lincoln, D-Ark., said.

“These investments are a down payment on a robust reauthorization of the Child Nutrition and WIC programs that serve tens of millions of children in Arkansas and across the country with healthy, nutritious meals,” said Lincoln, the new chairman of the Senate Committee on Agriculture, Nutrition and Forestry.

“I am proud that my first legislative effort as chairman of the Agriculture Committee would help to improve the health of our children and prevent needy children from going hungry. The committee will work with USDA and the administration on a reauthorization that improves access to healthy meals, reduces hunger, and improves school meals and the health of infants, school children, and pregnant and nursing mothers.”

FULL ARTICLE >>

Markets: China buying soybeans

China bought over 800,000 tons of a million tons of soybeans sold last week. Private sources expect Chinese demand to increase raising bean prices. China had a week-long holiday reducing potential export sales.

Palm oil prices are down 2.3 percent to the lowest level in three months. Brazil increased soybean production estimates by 1 million tons to 63.3 million.

Soy-oil supplies are 3 billion pounds. Bio-fuel used 156 million pounds of soy-oil last month. Soy-meal sales have been lower as livestock operations reduce herd size. Soybeans, soy-oil and soy-meal sales are all above the five-year average. - Ray Nabors, Heartland Ag Network

FULL ARTICLE >>

Foreigners own more U.S. farmland

Foreigners have an interest (partial or total ownership) in 1.6 percent of all privately held U.S. agricultural land and 0.92 percent of all land in the United States, according to a recent USDA’s report. The total is a 1.4 million acre increase from 2007.

The report contains statistics on the 20.9 million acres of U.S. agricultural land in which foreign persons held an interest through Feb. 28, 2008.

The report, titled “Foreign Holdings of U.S. Agricultural Land,” is available on the FSA Website.

FULL ARTICLE >>

2010 DCP, ACRE signup begins

Enrollment for the 2010 Direct and Counter-cyclical Program (DCP) and the Average Crop Revenue Election (ACRE) program has begun and will continue through June 1, 2010.

Is ACRE for you? USDA is urging producers to make use of the eDCP automated website to sign up, or producers can visit any USDA Service Center to complete their 2010 DCP or ACRE contract.

The electronic service saves producers’ time, reduces paperwork and speeds up contract processing at USDA Farm Service Agency (FSA) offices. It is available to all producers who are eligible to participate in the DCP and ACRE programs and can be accessed at www.fsa.usda.gov/dcp. - Farm Press Editorial Staff

FULL ARTICLE >>

Kentucky growers anticipate good corn harvest

Ample rainfall, 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. - Elton Robinson, Farm Press Editorial Staff

FULL ARTICLE >>

USDA: rains cut Mid-South crops

Excessive rainfall in September is eroding yield expectations for Mid-South corn and cotton crops, according to USDA’s Oct. 9 Crop Production Report.

The report, an assessment of crops as of Oct. 1, reduced expected corn yields by 7 bushels in Mississippi, 2 bushels in Louisiana and Arkansas, while raising it 1 bushel in Tennessee. Forecast cotton yields declined in every Mid-South state except Missouri.

U.S. cotton production is forecast at 13 million bales, down 3 percent from last month but up 1 percent from last year. Upland cotton production is forecast at 12.6 million bales, down 3 percent from last month but up 2 percent from last year. - Elton Robinson, Farm Press Editorial Staff

FULL ARTICLE >>

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DAVE KOHL
NEW YORK, NEW YORK
Last week my Road Warrior travels sent me to the financial power center of the world: New York City. Actually, I was on the other side of the Hudson River in Jersey City to address the 2009 Northeast Farm Credit Conference. My tenure with this group goes back to the mid-1970s to Cape Cod when I first spoke to the group while in graduate school at Cornell.

This year one of the keynote speakers was Mark Zandi, chief economist at Moody’s Economy.com, Inc. When I am on the road working out, I often observe Zandi being interviewed on my favorite early morning business channel, CNBC. Zandi indicated that the recession is over and that policymakers need to keep interest rates low for an extended period, well into next year, to keep the U.S. economy in a recovery mode.

He also stated that if policymakers had not used quantitative easing, i.e. printing money, and buying treasury securities to the extent of over $1 trillion, then fixed-rate long-term financing would be 1% higher, moving from 5% to 6%. His major concern is rumblings by the Federal Reserve on some levels to start raising interest rates at a rather rapid rate as an exit strategy, which could quickly stall economic recovery.
MORE
KENT THIESSE
RAIN SLOWS HARVEST
Moderate to heavy rainfall across most of southern and central Minnesota, as well as northern Iowa, has slowed soybean harvest throughout the region. Most areas reported 1-3 in. of rainfall on Oct. 1 and 2, with some locations reporting even higher amounts. The rainfall was very beneficial in areas that have experienced drought-like conditions during the last half of the summer season. The rainfall will help replenish supplies of stored soil moisture for the 2010 growing season, and assure adequate topsoil moisture for good tillage and fall nitrogen applications following harvest. However, in areas with totally saturated soils, any additional major rainfall events in the next couple of weeks could lead to significant harvest delays.

Soybean harvest was in full-swing in most areas of southern and western Minnesota prior to the rainfall event. Most soybeans have now reached maturity, so harvest timeliness is very critical in order to prevent harvest loss. The prospect for wetter weather conditions in the next week or two in the upper Midwest will likely cause growers to be quite aggressive with soybean harvest once field conditions dry out.
MORE
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RICHARD BROCK
CORN, SOY HARVEST MOVING SLOWLY
The U.S. corn and soybean harvest continued to progress very slowly last week as cool, wet weather slowed crop maturation and drying across the Midwest crop belt.

Last week's USDA weekly crop update pegged U.S. corn harvest progress at 10% as of Sunday, which was in line with trade expectations, but behind last year’s pace of 13% and the five-year average of 25%.

USDA reported 15% of U.S. soybeans had been harvested, well behind last year’s pace of 28% harvested and the five-year average of 36%. The soybean harvest progress number was also short of trade expectations for 20-23%.
MORE
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HIGH MOISTURE CORN AGAIN EXPECTED AT HARVEST
This year's poor growing conditions mean corn likely will contain high levels of moisture at harvest for the second year in a row, says ken Hellevang, a North Dakota State University (NDSU) grain drying expert warns.

"If the corn has reached full dent but not full maturity, a small reduction in test weight and yield might be expected for the corn this year," says Hellevang, NDSU Extension agricultural engineer. "Corn at full dent is expected to have a yield loss of 10-20%, a test weight of 50-53 lbs./bu. and a moisture content of 35-45%."

At the half-milk line, the yield loss is expected to be about 5-10%, the test weight is expected to be about 54-55 lbs./bu. and moisture content is expected to be about 35-40%. Even though test weight and yield will be good, the moisture content will be about 30% if corn has only just reached maturity. - Corn & Soybean Digest
MORE

SURVEY SHOWS FARM INCOME DOWN
Fewer than 5% of farms saw an improvement in income this year, a drastic downturn compared to the same time last year when one in four farms saw better year-over-year income, according to Rabobank’s Farm & Ranch Survey.

“U.S. farmers and ranchers continue to take a consistently conservative position when anticipating future performance, irrespective of the recent market volatility,” says John Ryan, president and CEO for Rabo AgriFinance. “They understand the cyclical nature of the industry and can adjust their risk-management strategy, purchasing decisions and output to help weather this economic downturn.” - Corn & Soybean Digest
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