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CROP NEWS WEEKLY
In the November 18, 2009 Issue:
Brought to you by the editors of
Corn & Soybean Digest and Farm Industry News
 Aphid-resistant soybeans vital
 CSD travels to Thailand
 Arkansas losses at $309 million
 Helping developing nations
 Bulk on a budget
 Research partners receive $4.2 million grant
 Soybeans: 'half the crop'
 Alternative energy use doubles
 $234 million to promote food/ag exports
 Senate ag committee to meet in Little Rock
 Soybean harvest on again

EDITOR'S NOTE

Logan Hawkes
11/18/09

As the holiday season approaches farmers all across the Midwest are rushing to complete the harvest. Thanks to improved weather conditions across much of the region, real progress is now being made. But not without usual late season problems. For one, long lines at the elevator are common in some areas as the bulk of the corn crop is rolling in at the same time, and along with the rush, drying operations are overtaxed and working overtime. Yet moisture has improved thanks to a late break in the weather and yields are still reported as healthy considering the late hour. It all makes for a very strange harvest season.

In the news this week, weather problems continue to plague not only Midwest growers but much of the Southland as well, raising concern about market stability. Also this week, have you wondered about soybean farming in the Far East? Greg Lamp takes you on a journey. Elsewhere, alternative energy use doubles, boosting the need for more fuel crops.

Check out these and other stories in this issue of Crop News Weekly. Happy reading

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FROM OUR EDITORS

Aphid-resistant soybeans vital

Aphid management is vital to the success of Ohio’s soybean crop, and several programs to fight aphids are being made possible with funding from the USDA, Ohio State University’s (OSU) Ohio Agricultural Research and Development Center (OARDC) and the Ohio Soybean Council (OSC) and soybean checkoff.

Also known as plant lice, aphids rapidly reproduce and live on sap from host plants. These insects deform or kill plants and invite other worrisome insects to infected cropland because of their honeydew secretions. Aphids can also be infected with fungi, viruses and bacteria to further damage crops, and have the potential to greatly impact Ohio’s 26,000 soybean farmers and their multifaceted industry valued at $1.9 billion. - Corn & Soybean Digest

FULL ARTICLE >>

CSD travels to Thailand

Corn & Soybean Digest (CSD) Editor Greg Lamp spent last week in Thailand with the Thailand Government Board of Investment media tour. Among the places visited were a shrimp farm, where they feed the shrimp soy meal, Ford and GM plants and a Jelly Belly plant.

For photos and videos, go to the CSD Facebook page. - Corn & Soybean Digest

FULL ARTICLE >>

Arkansas losses at $309 million

The estimated crop loss for the 2009 Arkansas harvest so far has risen to $309 million, not including lost wages of about $83 million due to decline in nearly 3,000 full- and part-time agriculture-related jobs, the University of Arkansas Division of Agriculture said.

The estimate, which provides a week-by-week snapshot of crop conditions, is compiled by UA Division of Agriculture economists, and is based on data from USDA, National Agricultural Statistical Service (NASS), current marketing prices, quality loss estimates from local elevators, and yield loss and additional fieldwork from University of Arkansas Extension specialists.

In addition to the decline in full- and part-time jobs, the report also shows a decline of nearly $162 million in economic value-added, which encompasses soy, corn and rice processing, cotton ginning and reduced household spending by Arkansans whose incomes are tied to agriculture. - Mary Hightower, University of Arkansas

FULL ARTICLE >>

Helping developing nations

Much of the time this column focuses on current issues in US agricultural policy: food safety rules, farm program payments, crop insurance, ethanol, and CAFOs, among others. But one of the things that we try to keep at the forefront of our analysis is that policies that are good for US farmers must not come at the expense of farmers elsewhere in the world.

The reason for this is that that the dynamics that determine the nature of US agriculture and agricultural markets are the same dynamics faced by farmers in other countries as well. For starters, one could identify weather-determined variability in production, diseases like Asian Soybean Rust and bovine spongiform encephalopathy, long periods of low prices punctuated by a sudden peak and subsequent decline in prices, and international markets that are controlled by a relatively few firms on both the input and marketing sides.

We recently attended a meeting where the concerns of farmers in developing countries were the focus of the discussion. As we listened and talked, it became apparent to us that if we were asked to help a country become more food secure so that it could ensure that its citizens had access to a reliable supply of nutritious foods, our answer would be the same whether we were asked the question two centuries ago, two decades ago, or two weeks ago. - Daryll E. Ray, Agricultural Policy Analysis Center, University of Tennessee, Knoxville

FULL ARTICLE >>

Bulk on a budget

Kirk Beekley wanted the advantages of bulk soybean seed, but not the cost of new paint. So, he built his own bulk seed tender that's right-sized for his 350-acre, Crete, NE, farm.

Beekley used angle iron and 12-gauge steel to form two 2,500-lb.-capacity hoppers with slide gates that feed into a 4-in. unloading auger. The bulk bins sit on a frame built with 2×4-in. tubing. - Corn & Soybean Digest

FULL ARTICLE >>

Research partners receive $4.2 million grant

Oklahoma State University and its partner institutions in industry are receiving $4.2 million from the U.S. Department of Agriculture to continue groundbreaking work in the development of biofuels.

The OSU Division of Agricultural Sciences and Natural Resources’ Ray Huhnke said the funding received through USDA’s National Institute of Food and Agriculture represents great news for the public and diverse stakeholders within Oklahoma’s bioenergy industry.

“These funds will enhance key work being done by our cooperating scientists and engineers to develop advances in practices and technologies necessary to ensure efficient and sustainable production of cellulosic ethanol feedstocks,” he said. - Donald Stotts, Oklahoma State University

FULL ARTICLE >>

Soybeans: 'half the crop'

On Nov. 4, Gus Wilson took a sample of soybeans with 100 percent damage.

“It was the first time I’ve seen that,” says the Chicot County, Ark., Extension staff chair. “The situation here is bad, bleak. We’ll be lucky to make half the crop we’ve made in the last three to four years. That’s strictly due to the weather.”

Chicot County in extreme southeast Arkansas has caught huge rains all fall. Now, watching crops deteriorate, Wilson says he’s not seen “a group of growers who’ve been more discouraged. Those who were planning to plant wheat may be out of luck. If there’s wheat planted and emerged in Chicot County, I don’t know where it’s at.”

As in the rest of the Mid-South, the county has had several good days of weather. But fields “are rutting up big-time. The cost to our farmers for field preparation next year is going to be high. Rice ground will definitely have be disked a couple of times and landplaned — we’ve got major ruts. The lower ends of fields are horrible. - David Bennett, Farm Press Editorial Staff

FULL ARTICLE >>

Alternative energy use doubles

The use of alternative energy sources doubled to 11 percent since Rabobank’s last bi-annual Farm and Ranch Survey was released in April.

"By using alternative energy, U.S producers have found that they can reduce their costs while minimizing their impact on the environment,” said Michael Whitehead, Rabobank food and agribusiness research and advisory executive director.

Additionally, the survey found 64 percent of farmers have taken steps toward sustainable agriculture. For example, U.S. producers are using direct seeding (64 percent), minimizing the use of chemicals (42 percent), and using water conservation practices (22 percent).

FULL ARTICLE >>

$234 million to promote food/ag exports

Seventy U.S. trade organizations received more than $234 million in fiscal 2009 to help promote American food and agricultural products overseas.

“Agricultural trade is absolutely crucial to the U.S. economy and by providing this funding to U.S. organizations during these difficult economic times will help open new global markets for American food products,” said USDA Secretary Tom Vilsack.

The funding was allocated under the Market Access Program (MAP) and the Foreign Market Development (FMD) Cooperator Program, both administered by USDA’s Foreign Agricultural Service (FAS). - from USDA

FULL ARTICLE >>

Senate ag committee to meet in Little Rock

The Senate Committee on Agriculture, Nutrition and Forestry will hold a field hearing in Little Rock, Ark., Monday, Nov. 23, at 1 p.m. The hearing — “Revitalizing Rural America” to examine ways to strengthen and grow Arkansas’s rural economy — will be hosted by the University of Arkansas Clinton School of Public Service at the Great Hall of the William J. Clinton Presidential Library.

Arkansas Sen. Blanche Lincoln, chairman of the committee, is organizing a statewide Agriculture and Business Leadership Breakfast on Nov. 24 to examine the impact of U.S. agriculture, rural development and forestry policy on the state’s rural and small business economy. That event is scheduled from 8 a.m. to 10 a.m. at the Association of Arkansas Counties Board Room, 1415 Third Street in Little Rock.

FULL ARTICLE >>

Soybean harvest on again

As November took over from October, rains finally eased across a waterlogged Mid-South and many of the region’s producers were able to restart harvest. Still weeks behind and facing yet-to-crest rivers and a forecast predicting more rain the week of Nov. 9, harvest had picked up even more urgency.

By Nov. 6, Mississippi soybeans were about 70 percent harvested. The last third will “take some time and be fairly slow going,” says Trey Koger, Mississippi Extension soybean specialist. “Probably half that 30 percent is in really bad shape. So, there’s 15 percent of our total crop that might be abandoned.” - David Bennett, Farm Press Editorial Staff

FULL ARTICLE >>

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AUDIO/VIDEO FEATURES
New Holland introduced a number of hay and forage products at fall farm shows, including a specialty crop round baler, a new 500-hp forage chopper, new wheel rakes, crop mergers, and a Crop ID system to identify bale specific. - from FIN/TV
Watch the videos here.
DAVE KOHL
CONSUMER RESET
Approximately 15 months ago on a panel at the Colorado Graduate School of Banking, I indicated that the U.S. economy was coming into an extended period of economic moderation. My comment raised many eyebrows in the audience because the financial crisis was about to begin.

There are telltale signs that my prediction is becoming reality. Consumers have cut their annualized rate of debt by 10.4%, with a six-month consecutive decline according to Federal Reserve reports.

Consumers, particularly Baby Boomers, are curbing spending and paying down debt. A visit in the gym locker room at Virginia Tech after a rigorous game of noontime basketball confirmed this. Many individuals have increased their savings rate to 5-10% of income to make up for the losses over the previous year. As one Boomer stated, “We are a decade older compared to other crashes, and time is not on our side in the catch-up up game.”
MORE
KENT THIESSE
2009 CROP HARVEST ADVANCES
Early November has provided a nice window of opportunity for farm operators to make some nice progress on the 2009 corn and soybean harvest. Above-normal temperatures and generally dry weather has been very favorable for to dry out wet fields, and to reduce the grain moisture content of the crop remaining in the field. Producers are hoping for a continuation of the favorable November weather pattern in order to complete the 2009 fall harvest and to finish fall tillage and fertilizer applications the ground freezes.

Based on the USDA weekly Crop Progress Report on Nov. 1, the corn and soybean harvest progress through October was on pace to be the slowest ever. The USDA report showed that only 51% of the soybeans were harvested nationwide and a mere 25% of the U.S. corn was harvested as of Nov. 1. The previous low harvest progress on comparable dates in the USDA reports was 53 % of the soybeans harvested on Nov. 4, 1984, and 39% of the corn harvested on Oct. 29, 1972. In 2008, the weekly USDA crop report on Nov. 2 reported 86% of the soybeans harvested and 55% of the corn harvested. The five-year average (2004-2008) for Nov. 1 harvest progress in the U.S. is 87% for soybeans and 71% for corn.
MORE
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RICHARD BROCK
STRONG USAGE LIMITS RISE IN U.S. SOY STOCKS
USDA’s monthly supply/demand update raised U.S. soybean ending stocks reflecting larger expected production, but also raised projected usage due to strong export sales and favorable crush margins.

The increase in usage was generally expected by the trade, but should limit the negative impact on prices from the larger crop.

USDA pegged 2009-2010 U.S. soybean ending stocks at 270 million bushels, up 35 million from its previous estimate and toward the high end of trade expectations that averaged 235 million bushels in a range from 180 million to 300 million bushels. MORE
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QUICK POLL QUESTION
This week's poll question: What would provide you the biggest efficiency/profitability gains?

* Newer or bigger equipment
* More management know-how
* Better info technology and the knowledge to use it
* Additional labor
* Machinery sharing with other partners

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

BUG FOUND IN GEORGIA A THREAT TO SOYBEANS?
Researchers from the University of Georgia and Dow AgroSciences have identified a kudzu-eating pest in northeast Georgia that has never been found in the Western Hemisphere. Unfortunately, the bug also eats legume crops, especially soybeans.

The bug has tentatively been identified as the bean plataspid (Megacopta cribraria), a native to India and China. It is pea-sized and brownish in color with a wide posterior, says Dan Suiter, an entomologist with the UGA College of Agricultural and Environmental Sciences (CAES). “It kind of waddles when it walks on a surface, but it flies really well,” he says.

It’s also commonly called lablab bug and globular stink bug. Like its distant cousin the stink bug, when threatened, it releases a chemical that stinks. - Corn & Soybean Digest
MORE

SOYBEAN MARKET COULD DIP BELOW $8 IN 2010
Huge soybean crops in North America and South America could push world inventories higher and prices lower in 2010, according to a market analyst speaking at the CME Group press briefing on USDA’s Nov. 9 Crop Production Report and World Agricultural Supply and Demand Estimates.

Gavin Maguire, with eHedger, says longer term, soybean prices appear on solid ground. But with South America expected to produce as much as 30 million additional tons of soybeans in 2010, prices could take a dip or two next year.

“When you throw in a record size crop here in the U.S., you have a lot of extra beans over the next six months. By the middle of next year, we will probably have the highest level of soybean inventory we’ve ever had globally. That’s a story we can’t ignore for too long.” - Corn & Soybean Digest
MORE

KEEP AN EYE ON ENERGY CROP DEVELOPMENT
If you’re thinking about planting dedicated energy crops at some point in the future, I’d suggest keeping an eye on Ceres, Inc., Thousand Oaks, CA. Ceres launched the first multi-crop energy seed brand, Blade Energy Crops (www.bladeenergy.com), last year and is currently marketing switchgrass and high-biomass sorghum varieties as feedstocks for biofuels and biopower.

Ceres announced this week that it plans to increase biomass yields of several energy grasses (including switchgrass, sorghum and miscanthus) by as much as 40% in coming years while also decreasing the use of inputs, including nitrogen fertilizer. The U.S Department of Energy has awarded Ceres a $5 million grant to develop these grasses. - Lynn Grooms, Farm Industry News
MORE

HOME-RUN HYBRIDS
Market prices, cold weather and late harvest may make you feel like you're striking out these days. Let Corn & Soybean Digest pinch-hit for you to take the pressure off your hybrid selection for next year. We asked major seed companies for their home-run hybrids, and have compiled them for you. Check out these top picks for the 2010 growing season.

This guide should be used as a starting point for selecting hybrids for next year. Be sure to also consider university, independent and company trial data when making your decisions. - Corn & Soybean Digest
MORE

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Test Your Grain Marketing Knowledge
“Back to School with Ed Usset" is a 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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