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Logan
Hawkes
02/06/08
Crop News Weekly
In spite of a frightened groundhog last week,
an early spring season is threatening to blossom on parts of the
Southwest. And while the winter cold is not through with most of the
Midwest, farmers are gearing up to get seed in the ground as early as
weather permits. But the weather is not the only thing on farmer's mind
as the winter slowly turns to spring. What about a resolution of the
farm bill? The clock is ticking, says Sen. Tom Harkin, and the Bush
administration needs to show a little more flexibility if it wants
farmers to have a new farm bill by the time the extension of the current
law expires on March 15. Harkin, D-Iowa, the chairman of the Senate
Agriculture Committee, says he believes enacting a new farm bill by that
date remains possible, but only if the White House relaxes its
objections to what it calls tax increases and congressional leaders term
'loopholes'. In other news, the fear of Asian Soybean Rust may not be
the main topic around the breakfast table these days, but the threat
remains very real according to researchers. It hasn't become the
monster some feared, but according to experts, the specter of an ASR
epidemic still looms over the United States. So far, the only thing to
combat the disease has been fungicides. Elsewhere, the December soybean
crush reported Jan. 24 by the U.S. Census Bureau came up short of trade
expectations, while soymeal stocks were larger than expected, but the
news had little impact on the soybean market. Finally, by the end of
2008 the U.S. will have the capacity to produce 13 billion gallons of
ethanol, but Purdue University Extension Agricultural Economist Wally
Tyner says the maximum ethanol the market can handle is 12 billion
gallons, and perhaps less.
You'll find these stories and more in this issue of Crop News
Weekly. Happy reading.

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Asian
soybean rust resistance found
While Asian soybean rust hasn't become the monster
some feared, the specter of an ASR epidemic still looms over the United
States. So far, the only thing to combat the disease has been
fungicides. While fungicides have worked well, Mid-South farmers need a
source of resistance to ASR "very badly," says Billy Moore, who has
headed Mississippi's ASR team for several years. "Already, even without
a huge ASR epidemic, a large number of fungicides are going out. A good,
resistant variety would lessen the need for so many sprayings." Southern
soybean farmers will be pleased to know research into varieties
resistant to Asian soybean rust is showing positive results. With the
help of Southern university researchers, Schillinger Seed recently
announced the discovery of resistant lines. - David Bennett, Farm
Press Editorial Staff

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Harkin:
President needs to 'bend a little' on farm bill
The clock is ticking, says Sen. Tom Harkin, and the
Bush administration needs to show a little more flexibility if it wants
farmers to have a new farm bill by the time the extension of the current
law expires on March 15. Harkin, D-Iowa, the chairman of the Senate
Agriculture Committee, says he believes enacting a new farm bill by that
date remains possible, but only if the White House relaxes its
objections to what it calls tax increases and congressional leaders term
'loopholes'. "The administration has said it wants to work with Congress
on a bipartisan basis to pass a farm bill the president can sign,"
Harkin told reporters. "I take them at their word, but if an
overwhelming majority of the Congress says we ought to close those
loopholes to get some funding, I think the president is going to have to
bend on this." - Forrest Laws, Farm Press Editorial Staff

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CRP
and crop insurance
Recently, acting USDA Secretary Chuck Conner
reconfirmed that no early-out option for existing Conservation Reserve
Program (CRP) contracts is planned for the 2008 crop year. He stated
that "CRP is not an acreage reserve program" to be accessed when grain
supplies are tight. Conner pointed out that CRP provides valuable
conservation and environmental benefits, idling some very fragile acres
of crop land. There was some speculation after the Jan. 11 UDSA Supply
and Demand Report, which showed very tight grain stocks for the coming
year, that USDA may consider opening up some additional CRP acres before
the CRP contracts expire, with no penalty, in order to increase
crop-production acres for 2008. - Kent Thiesse, The Corn & Soybean
Digest

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Monthly
soy crush comes up short
The December soybean crush reported Jan. 24 by the
U.S. Census Bureau came up short of trade expectations, while soymeal
stocks were larger than expected, but the news had little impact on the
soybean market. The Census Bureau pegged the December soybean crush at
162.4 million bushels, compared with trade estimates averaging 165
million bushels in a range from 163.2-166 million bushels. The monthly
crush was still up 4.8% from a November crush of 155.7 million bushels
and was up 3.9% from the December 2006 crush of 157.2 million bushels.
- Richard Brock, The Corn & Soybean Digest

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Not
ready for all the ethanol to be produced in 2008
By the end of 2008, the U.S. will have the capacity to
produce 13 billion gallons of ethanol, but Purdue University Extension
Agricultural Economist Wally Tyner says the maximum ethanol the market
can handle is 12 billion gallons, and perhaps considerably less.
"Ethanol production capacity has grown tremendously fast, and it's going
to almost double from its high level today to the end of 2008," says
Tyner. "It has grown so fast that the capacity to produce is bigger than
the capacity to market." As a result, Tyner and colleagues forecast a
few possible changes in 2008. - The Corn & Soybean Digest

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glyphosate products such as Touchdown Total® herbicide. Prefix
followed by Touchdown Total helps growers establish a complete,
season-long weed-management program. For more information on Prefix
herbicide, please visit www.prefix-herbicide.com.
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2008 National Farm
Machinery Show
It's the most anticipated farm equipment show in the
Western Hemisphere and this year's event is already shaping up to be
bigger and better than ever before. The 2008 National Farm Machinery
Show gets underway this month and producers and vendors from around the
world are set to gather in Louisville, Ky., in one of the greatest
showcases of farm equipment of our time. If you simply can't make it to
the show, check out the full schedule and then log on to the Farm
Industry News Web site to watch video coverage of all the happenings.
- The Farm Industry News

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Ethanol
insurance available
John Deere Risk Protection (JDRP) is offering the
first insurance policy for farmers who grow corn on delivery contracts
for ethanol production. The Ethanol Policy provides coverage for yield
shortfalls below contract amounts in the event the price to replace the
corn rises above the federal crop insurance coverage. The policy also
requires the facility offering the ethanol contract to procure the
replacement bushels of corn so that producers do not need to find the
replacement grain themselves. - The Farm Industry News

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President
targets Doha Round completion
President Bush said he would make the "successful"
conclusion of the Doha Round of the World Trade Organization
negotiations a top priority of his administration during his last year
in office. Making trade a major theme of the 2008 State of the Union
address, the president also called on Congress to approve free trade
agreements with Colombia, Panama and South Korea and to reauthorize and
reform the Trade Adjustment Assistance program. "Today, our economic
growth increasingly depends on our ability to sell American goods and
crops and services all over the world," the president said. "We're
working for a successful Doha Round of trade talks, and we must complete
a good agreement this year." - Forrest Laws, Farm Press Editorial
Staff

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Soybeans
pushing for return to prices of the 1970s?
"Beans in the teens." Soybean futures aren't quite
there yet -- January was trading at $12.45 as this is being written
-- but the highest prices in decades could help soybeans recover nearly
10 percent of their acreage and perhaps push back above 70 million acres
in 2008. Soybeans took it on the chin last spring when corn prices
fueled by rising ethanol demand drew more than 8 million acres from
soybeans to corn, reducing the 2007 crop to 64 million acres and
production to 2.6 billion bushels (from 74.6 million acres and 3.2
billion bushels in 2006). Initially, farmers and marketing analysts were
skittish about how long the run-up in corn futures might last. Growers
had heard the siren's call of ethanol and higher corn prices in the past
only to see their hopes dashed when oil prices plummeted. - Forrest
Laws, Farm Press Editorial Staff

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House,
Senate farm bills face veto
Neither the House nor the Senate farm bill proposal
veers far away from current policy, but each includes payment
limitations and each faces the likelihood of a presidential veto.
"(Conferees) probably will have to change some of the methods the bills
use for increased funding and look for other savings," said Joe Outlaw,
professor and Texas A&M Extension economist, during the recent Beltwide
Cotton Conferences in Nashville. "The (Bush) administration objected to
both the House and the Senate bills. Why?" Outlaw asked. "The previous
secretary touted reform in his farm bill suggestions and this bill is
not seen as reform. - Ron Smith, Farm Press Editorial Staff

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Will there
be enough soybean seed to go around?
Soybean prices are soaring to record levels, and
farmers are excited about the prospects for 2008. Unfortunately, a
shortage of seed may dampen their enthusiasm. Jeremy Ross, soybean
specialist with the University of Arkansas Cooperative Extension
Service, said it could be a "free-for-all" for farmers as they scramble
to get the seed and varieties they need. He said farmers should be
talking to their seed dealers and co-ops about the situation. "I've
heard that farmers who have already booked seed are being cut, and
they're not going to get exactly what they thought they were going to
get, just because the seed is not there." - Lamar James, Arkansas
Extension Specialist

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Soybean
producer 'plants for crop to come up'
Of the many decisions he makes every year when growing
soybeans, J.K. Bordelon says variety choice ranks at the top. This year,
he's also worried with the tight soybean seed supply.
LAUGHTER AND GOOD information were both available during J.K.
Bordelon's presentation at the recent Tri-State Soybean Forum in Dumas,
Ark. "Plant for the crop to come up, I don't care what it looks like and
how deep," said the southeast Louisiana producer. "I don't look over my
shoulder. I think in 2008 one of the biggest concerns will be getting
the right varieties," the Bordelonville, La., producer said at the
recent Tri-State Soybean Forum in Dumas, Ark. "Even with bean seed
booked, I don't feel that comfortable. I'm afraid we'll be planting some
varieties we've never even heard of. Without excess seed, we don't need
to get started (planting too) early. We've got to make the first
planting count." Talking about his soybean growing practices, Bordelon's
turns of phrase frequently had the crowd laughing. But the underlying
message was completely serious. - David Bennett, Farm Press Editorial
Staff

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NCC annual
meeting Feb. 7-11 in Memphis
Sen. Blanche Lincoln, D-Ark., and newly confirmed
Secretary of Agriculture Ed Schafer will address the National Cotton
Council's (NCC) 70th annual meeting, set for Feb. 7-11 at The Peabody
Hotel, site of the NCC's organizational meeting in November 1938. The
meeting is expected to attract more than 800 U.S. cotton industry
leaders and industry stakeholders from the 17-state Cotton Belt. NCC
delegates will review and adopt specific resolutions to guide the NCC's
2008 programs and activities in six key program areas: farm and economic
policy; international trade; public relations and international market
development; research and education; packaging and distribution; and
health, safety and the environment.

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