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Logan
Hawkes
10/26/05
Crop News Weekly
Just as harvest is slowly winding down and
jack-o-lanterns are being carved by little ones, word comes from the
USDA October crop production report that harvest is online to produce
the second largest corn, soybean and cotton crop ever. Elton Robinson
will fill you in on the reasons why in our lead story today.
Around the world of news this week, Kent Thiesse offers up his analysis
of loan deficiency payments on corn versus CCC loans from local FSA
offices after harvest. Meanwhile, news is not so good for Arkansas
growers. While near-record crops are being realized in the Midwest,
storm losses in Arkansas top the $900 million mark this year. Meanwhile,
members of Congress have introduced new disaster assistance legislation
aimed at helping farmers who suffered losses from Hurricane Katrina.
Elsewhere in the news, hold on to your hats. You just think fuel prices
for the tractor and combine are ridiculously high. Midwest producers
will get a real eye opener soon when they discover natural gas prices
could go up as much as 71% in the weeks ahead. Also this week, a preview
in what may affect the 2007 farm bill. Daryll E. Ray has the full
story.
You'll find these stories and more in this issue of Crop News
Weekly. Happy reading.

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Larger U.S.
bean, corn, and cotton crops
10/25/05
The U.S. cotton, corn and soybean crops are getting
bigger each month, a testament to good growers and good genetics. If
production forecasts are realized, each crop is on course to be the
second largest crop on record. According to USDA's October crop
production report, cotton production is forecast at 22.7 million bales,
up 2 percent from the September forecast but 2 percent below last year's
record high production. Yield is expected to average 797 pounds per
acre, up 15 pounds from last month but down 58 pounds from 2004. -
Elton Robinson, Farm Press Editorial Staff

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an average of 6 bu/A and helping produce better quality beans. For more
information on Quadris fungicide, please visit http://www.quadris-fungicide.com
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Thiesse's
Thoughts: LDP VS. CCC Loan
10/25/05
In the past month there have been some very favorable
opportunities to request a loan deficiency payment (LDP) on corn
produced in 2005. The LDP on corn in Minnesota has been over
40¢/bu. in the past few weeks. One question many growers have
contemplated on un-priced 2005 corn is whether they should take the LDP
at harvest time and price the grain later, or utilize the CCC loan
program at county Farm Service Agency (FSA) offices after harvest. -
Kent Thiesse, Farm Press Editorial Staff

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Lenders
warn of cash flow/carryover troubles
10/24/05
If bankers' concerns are any indication, Arkansas
farmers will be in for a rough off-season. Storm clouds are gathering
and the signs are ominous. After months of drought, skyrocketing input
costs, low commodity prices and hurricane-spawned storms during harvest,
few farmers were expected to escape the growing season unscathed. But
the seriousness of many farmers' financial plights is sobering. The
Arkansas Extension Service has estimated $900 million-plus losses from
hurricane damage alone. - David Bennett, Farm Press Editorial
Staff

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ADVERTISEMENT

"I started selling Lexar based on
customer demand. My customers wanted more pre-emergent control and they
finally found that with Lexar. Waterhemp is a big problem in our area
and Lexar controlled it better than any other product we've used. It did
the job even in the dry season we experienced this year. Lexar also
provided better crop safety than its competitors. Next season the use of
Lexar will increase in my area due to the success it had this year.
Previous customers plan to use it again and other customers who learned
of the control it offered will switch to it."
Ron Hamson
Hamson Ag., INC.
Dahlgren, IL
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High
fuel fallout
10/22/05
Growers finishing up harvest know the immediate
ramification of high fuel prices. But high fuel prices will reach much
further this year than just the cost of filling a combine or tractor
tank. Several companies have announced price increases, and economists
estimate deeper cost troubles. Natural gas prices are expected to spike
this winter with the Midwest taking a big hit. The U.S. Department of
Energy reports that natural gas prices may be 71% higher than they were
last year, according to Wally Tyner, Purdue University ag economist. The
big share of the price increase is due to overall higher prices, and a
small portion is due to the expectation that this winter will be colder
than last year's. The only good news, Tyner says, is that gas supplies
are adequate and there will be no shortage. - Farm Industry
News

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USDA
issues final 2004-crop corn and sorghum CCPs
10/24/05
USDA announced that corn farmers will receive a final
2004-crop counter-cyclical payment of 29 cents per bushel and grain
sorghum producers a CCP payment of 27 cents per bushel on 85 percent of
their acreage base. The Agriculture Department also said it has begun
sign-up for the 2006 direct and counter-cyclical payments for all
program crops. Farmers have until June 1 to complete sign-up for the
payments authorized by the 2002 farm bill without having to pay an
additional fee. - Forrest Laws, Farm Press Editorial Staff

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ADVERTISEMENT

"We're concerned about glyphosate
resistance developing. We've had a hard time controlling giant ragweed
in soybeans, and waterhemp is tough to control, too. If the weeds get
through this year, they will be worse next year. Then it's much harder
to get ahead of them, and it starts costing big bucks."
Les Schliep, Pine Island, Minn.
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Aphid-resistant
soybeans
10/21/05
Pioneer Hi-Bred International is analyzing its soybean
varieties for resistance to soybean aphid. The company has screened
numerous soybean lines with the help of a technology it developed with
Kansas State University. John Reese, KSU professor of entomology, is the
lead university researcher on the project. According to Pioneer,
researchers used specific protocols for antibiosis and nonpreference to
analyze the varieties. Antibiosis is the plant's natural ability to
discourage pests by killing the insect or slowing its reproduction.
Nonpreference is the plant's ability to deflect pests to more preferable
varieties. - Farm Industry News

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News from the Top of the
Hill
10/21/05
Senate Agriculture Committee Cuts $3 Billion -
The Senate Agriculture Committee voted to cut $3 billion from
agriculture programs over the next five years to meet the requirements
of budget reconciliation. The cuts came from farm programs and
conservation. Key provisions include:
Reduce by 2.5% all payments that producers receive for the 2006
through 2010 crops years for wheat, corn, grain sorghum, barley, cotton,
rice, soybeans, peanuts, and honey.
Eliminate the Step 2 cotton program as of Aug. 1, 2006. This program
was found in violation of World Trade Organization (WTO) earlier this
year.
Advance direct payments will be reduced from a maximum of 50% to 40%
for the 2006 crop year and to 29% for 2007 through 2011 crop years.
The Conservation Reserve Program (CRP) acreage cap will be reduced
from 39.2 million acres to 36.4 million acres.
The Conservation Security Program (CSP) will be limited to $1.654
billion.
Funding for the Environmental Quality Incentive Program (EQIP) will
be limited to $1.185 billion for fiscal year 2006 and $1.270 billion for
fiscal years 2007 through 2010. In 2004, there were four applicants for
every dollar of EQIP funding.
The Milk Income Loss Contract (MILC) program will be extended
through Sept. 30, 2007. The payment factor will be reduced from 45% to
34%. This program was to expire Sept. 30, 2005.
Some Democratic Senators argued that these cuts in farm programs were
caused by the administration's desire for more tax cuts. The House
Agriculture Committee is to make its proposed budget cuts next week.
Expiration of Price Reporting Law Could Cost States - The
producer coalition that supports renewal of mandatory livestock price
reporting has indicated that Congress' failure to reauthorize the law
could potentially impose new costs on at least one state. Nebraska may
have to establish its own price reporting system to meet requirements of
Nebraska law. The coalition includes the American Farm Bureau
Federation, American Sheep Industry Association, National Cattlemen's
Beef Association and the National Pork Producers Council.
Australia Pork Producers Appeal to High Court - Australian Pork
Limited (APL) has filed a request with the Australian High Court seeking
a hearing to reverse an earlier court ruling that allowed the
importation of processed pork from the United States and other
countries. APL is challenging the new quarantine protocols for pig meat.
The appeal to the Australian High Court is a two-step process. First, an
application for Special Leave must be made. If the application is
accepted, then the issue is heard by the High Court.
Ninth Circuit Denies Canadian Rehearing - The U.S. Court of
Appeals for the Ninth Circuit denied R-CALF's request for a rehearing of
its earlier decision to allow for the importation of Canadian cattle
under 30 months of age. R-CALF President Leo McDonnell in a statement
said, "We remain confident that USDA's Final Rule is premature. We will
now ask the District Court to schedule a hearing in our case, at which
time the court will have a full opportunity to consider all of the facts
that demonstrate why USDA's actions concerning Canadian imports are
ill-conceived."
USDA Drops Plans to Close FSA Offices - USDA announced this week
that it would not proceed with plans to consolidate Farm Service Agency
(FSA) county offices. The "FSA Tomorrow" plan would have closed 713 of
the 2,351 county FSA offices. There has been strong Congressional
opposition to USDA's proposal. Senators Jim Talent (R-MO) and Mark Pryor
(D-AR) amended USDA fiscal year 2006 appropriations bill that would
require a cost-benefit analysis of the proposal. The Senate Agriculture
Committee's hearing on this issue has been cancelled do to USDA's
announcement.
Link Named GIPSA Administrator - James Link has been named
administrator of USDA's Grain Inspection, Packers and Stockyards
Administration (GIPSA). Prior to his appointment, Link worked for Texas
Christian University as director of the ranch management program.
Lasseter Named FSA Administrator - Teresa Coarsey Lasseter has
been named the new administrator of USDA's Farm Service Agency (FSA).
Lasseter has served as Georgia FSA state director and most recently FSA
associate administrator for farm programs in Washington, DC. - Scott
Shearer, National Hog Farmer

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Congress
begins to see new disaster relief bills
10/24/05
Members of Congress have introduced new disaster
assistance legislation aimed at helping farmers who suffered losses from
Hurricane Katrina and from the intense drought and other weather
problems that occurred in the Midwest this summer. Some disaster bill
provisions would also try to help offset the impact of sharply higher
fuel prices, extend the Livestock Assistance Program and provide an
additional $100 million in Emergency Conservation Program funds. -
Forrest Laws, Farm Press Editorial Staff

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Two
issues may shape 2007 farm law
10/20/05
As I look at the issues that cannot be avoided as we
prepare to lay the groundwork for a discussion of the shape of the 2007
Farm Bill, several things come to mind. The first is the federal deficit
and the second is the pressure that is being put on WTO negotiators to
eliminate agricultural subsidies. These two factors have the potential
to significantly affect the nature of the 2007 Farm Bill discussion.
While these two issues may seem to be unrelated, one domestic and the
other international, they in fact stem from a common cause. If crop
prices in the 1997-2004 period were at the same level that they were in
early 1996, we wouldn't be talking about either one. - Daryll E. Ray,
Farm Press Editorial Staff

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EPA, IRS
agree to extend diesel fuel waivers
10/20/05
EPA has extended the highway diesel sulfur waiver
through Oct. 25. The initial waiver was announced in late August after
Hurricane Katrina caused severe disruptions in the supply of diesel fuel
after it struck the Louisiana and Mississippi Gulf Coasts. Refiners can
distribute high sulfur diesel fuel for highway use until that date in
the following states: Alabama, Arkansas, Florida, Georgia, Kentucky,
Louisiana, Mississippi, New Mexico, North Carolina, South Carolina,
Tennessee, Texas and Virginia. Vehicles that have been fueled with waved
fuel may be operated in any state. High sulfur fuel still in the system
past Oct. 25 can still be sold. Retailers must make the transition by
December. - Farm Press Daily

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Variable
crop costs jump
10/21/05
Higher energy prices hit growers in the variable cost
line on their financial statements. Variable costs are expected to be
33% higher in 2006 than 2002, according to a study by Gary Schnitkey and
Dale Lattz, University of Illinois economists. The variable costs of
corn production are projected to be $55/acre higher next year than in
2002. About half of the increase is due to fertilizer costs, projected
to be $28 higher next year than in 2002. Pesticides and seeds are $17
higher and machinery-related items like fuel are $7/acre higher.
Variable costs for soybean production are projected to be up $20/acre in
2006 compared to 2002. - Farm Industry News

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America
is running out of time, conventional fuel
10/21/05
If we failed to learn anything else from the recent
ravages of Katrina and Rita, we should at least have figured out two
things. One is that this country desperately needs a viable and
affordable mass transit system linking major cities. The second is that
this country must invest and commit to using alternative, renewable fuel
sources. Anyone who watched televised depictions of evacuees stranded in
New Orleans, unable to leave because of poor health, lack of
transportation and too little money to afford to go anywhere, should
appreciate the need for systems to move a lot of people from one place
to another quickly. - Ron Smith, Farm Press Editorial Staff

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Policy
premise correct three times a century
10/19/05
As we review some of the current agricultural policy
discussion, we are reminded of the old riddle we first heard as a grade
schooler. The question goes like this. "Would you rather have a clock
that tells the right time twice a day or one that tells the right time
once every four years?" As a child the obvious answer was the clock that
told the right time most often, the one that was right twice a day. Then
the riddler announces that the clock that is correct twice a day is one
that does not run at all while a clock that loses a minute a day is
correct once every four years. - Daryll E. Ray, Farm Press Editorial
Staff

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Tour Brazil with Corn &
Soybean Digest Magazine
10/26/05
You don't have a lot of time left. Get registered! The
Corn & Soybean Digest's fourth annual trip to Brazil is set for
Jan.12-25, 2006, and you're encouraged to sign up before deadline. Greg
Lamp, Editor of The Corn & Soybean Digest, and Clint Peck, Senior
Editor of BEEF, will lead the tour exploring Brazil's tropical ag
system and assess its strengths and weaknesses as a major competitor for
international markets. Highlights include tours of large and small
soybean farms, a beef packing plant, an ag research center and a major
international export facility. For more information or to register:
glamp@primediabusiness.com, 952-851-4667 or Renata Stephens, Capital
Travel Solutions, renatas@ctsinc.com, 651/287-4900 or 800/635-5488. A
complete itinerary can be viewed on the CTS website: http://www.ctsinc.com/Brazil2006.pdf.

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