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A Penton Media Publication February 6, 2008 | 080206   
TABLE OF CONTENTS
 >> Logan Hawkes

 >> Asian soybean rust resistance found

 >> Harkin: President needs to 'bend a little' on farm bill

 >> CRP and crop insurance

 >> Monthly soy crush comes up short

 >> Not ready for all the ethanol to be produced in 2008

 >> 2008 National Farm Machinery Show

 >> Ethanol insurance available

 >> President targets Doha Round completion

 >> Soybeans pushing for return to prices of the 1970s?

 >> House, Senate farm bills face veto

 >> Will there be enough soybean seed to go around?

 >> Soybean producer 'plants for crop to come up'

 >> NCC annual meeting Feb. 7-11 in Memphis



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  EDITOR'S NOTE
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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  FROM OUR MAGAZINES
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

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

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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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

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

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

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

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

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

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

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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