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Logan
Hawkes
03/12/08
Crop News Weekly
With the promise of spring on the horizon,
recent winter weather across the Midwest has more than dampened spirits,
it has threatened plans for early planting. Even in the Southwest, where
temps have already climbed into the 80s and 90s, late winter spells are
causing farmers to pause and consider the weather - proof once again
that while the weather changes, it is rarely predictable.
In the news this week, the ethanol industry has been taking some pretty
severe hits lately from the popular news media, some university studies,
environmental organizations, food processors, livestock organizations
and some political leaders. Some have blamed the rapidly expanding
ethanol industry for increased food cost, much higher livestock feed
cost, short-term grain shortages, excessive water usage and potential
pollution hazards. Catch the full report with Kent Thiesse below. Also
this week, the Chairman of the House Agriculture Committee said on
Sunday he is optimistic Congress can reach an agreement on farm bill
spending this week, but added that a short-term extension of the current
law may be needed to allow for further negotiations with the Bush
administration. In other news, grain prices increased dramatically in
the last two years and are expected to remain well above pre-2006
levels, and a recently released survey by The Center for Food Integrity
shows an alarming number of U.S. consumers are oddly unaware of the role
farmers play in providing food to the world.
You'll find these and other stories in this issue of Crop News
Weekly. Happy reading.
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Ethanol
Industry Under Fire
The ethanol industry has been taking some pretty
severe hits lately from the popular news media, some university studies,
environmental organizations, food processors, livestock organizations
and some political leaders. Some have blamed the rapidly expanding
ethanol industry for increased food cost, much higher livestock feed
cost, short-term grain shortages, excessive water usage and potential
pollution hazards. A recent university study indicated that renewable
fuels may actually increase global warming concerns due to more row-crop
production and added usage of fertilizer and other crop inputs. While
there are questions about the validity of some of the assumptions and
data used in the study – and in other anti-ethanol information –
regarding new technologies and efficiencies in crop production and
ethanol production that are not being accounted for, the fact remains
that the strong public support toward the future development of ethanol
and other renewable fuels in the U.S. may be starting to decline. -
Kent Thiesse, The Corn & Soybean Digest
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Slow
progress in farm bill talks
The Chairman of the House Agriculture Committee said
on Sunday he is optimistic Congress can reach an agreement on farm bill
spending this week, but added that a short-term extension of the current
law may be needed to allow for further negotiations with the Bush
administration. "I think we'll get this worked out this week," Minnesota
Democrat Collin Peterson told the National Farmers Union convention by
telephone. "My guess is we'll have to extend the current law one more
month," until April 15 to settle the final disputes on the law and pass
it. - Richard Brock, The Corn & Soybean Digest
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To
spray or not to spray
In 2007, many acres of corn in Wisconsin were sprayed
mid-season with fungicides: strobilurin or a strobilurin/triazole
combination (in Iowa and Illinois an estimated 6 million acres of corn
were sprayed). Most acres applied had little or no disease at the time
of application. Reasons for spraying vary and include the high price of
corn, potential to control diseases and a possibility of improved yield
from plant health benefits. Until this year, fungicide applications to
production cornfields were rarely practiced because they were not
profitable. Many of the hybrids grown today have good overall tolerance
to foliar diseases.
Results of fungicide trials have been mixed in Wisconsin. In two of 11
trials, a significant yield response occurred that covered the fungicide
cost. - The Corn & Soybean Digest
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The
Super Bowl of Agriculture
Road Warrior Dave Kohl writes: "Recently I took
a Road Warrior stop at the Super Bowl of Agricultural Management – The
Executive Program for Agricultural Producers (TEPAP) – in Austin, TX.
If any of you want a high-energy jolt to your business, put this event
on the calendar. Yes, it is quite costly, but the information,
networking and sharing of expertise is second to none. This year’s
group financials provide some interesting perspectives. The average
business debt-to-asset ratio was 46%, ranging up to a high of 88%.
Average financial withdrawals from the operation by management were
$119,789. Persons attending TEPAP averaged 2,975 hours working in their
business, ranging from a low of 2,100 hours to a high of 3,888 hours.
The rate of return on assets for the group was 12.8%, with a return on
equity of 26%..." - The Corn & Soybean Digest
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Agricultural
outlook presented to U.S. Congress
Grain prices increased dramatically in the last two
years and are expected to remain well above pre-2006 levels, report
economists with the Food and Agricultural Policy Research Institute
(FAPRI). Higher prices increase revenues for crop producers but also
increase feed costs for livestock producers. Overall, net farm income
goes up, some government farm program payments drop and consumers see
higher food costs. Those current and future farm changes are in a
68-page 2008 FAPRI Baseline Briefing Book delivered to the U.S. Congress
and USDA today by the agricultural economists from a multi-university
think tank. - The Corn & Soybean Digest
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Consumers
strange views of farmers role
A recently released survey by The Center for Food
Integrity shows an alarming number of U.S. consumers are oddly unaware
of the role farmers play in providing food to the world. The findings
may bolster those claiming agriculture must do a better job of getting
its positive message to the masses. But in some instances the chasm
between fact and public perception is so large one hopes those surveyed
aren’t indicative of the general population. The chickens may be
coming home to roost in the current “gut-versus-science” rhetorical
environment. - David Bennett, Farm Press Editorial Staff
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Ethanol
production rising; demand outpacing supply
Ethanol may be losing some of its luster as a
renewable fuel — in part because of media attacks purporting to
portray the dark side of the alternative fuel’s impact on food prices.
But the U.S. ethanol industry produced 32 percent more of the corn-based
fuel in 2007 than in 2006, according to year-end data recently released
by the U.S. Energy Department’s Energy Information Administration.
Capacity for ethanol production is expected to grow another 4 billion
gallons in 2008, despite shrinking margins for ethanol from
higher-priced corn feedstocks, according to the Renewable Fuels
Association. The numbers were spelled out in a news release from the
National Corn Growers Association, which hailed the increase as great
news for U.S. corn growers who have seen corn prices rise from $2 per
bushel to nearly $6 per bushel due, in part, to the rising demand for
ethanol. - Forrest Laws, Farm Press Editorial Staff
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Soybean
checkoff recognizes industry leaders
The United Soybean Board announced winners of its
Outstanding Achievement Award and Excellence Award at the recent
Commodity Classic in Nashville, Tenn. Through the awards USB recognizes
the commitment of individuals and companies who have made an
outstanding, positive impact on the soybean industry. The checkoff’s
highest honor, the USB Outstanding Achievement Award, was awarded to
Richard Wilson, retired national program leader for oilseeds and
bioscience research at the United States Department of Agriculture,
Agricultural Research Service.
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Harkin
rues farm bill's lateness
The pace of farm bill negotiations remains glacial.
Even with Southern farmers’ planting windows sliding open, Congress
and the White House seem unable to get unstuck from the rhetorical muck.
While he didn’t mention numbers during a recent press conference,
Senate Agriculture Committee Chairman Tom Harkin said leaders on the new
farm bill had agreed on a “final range” of funds for the
legislation. Following months of wrangling with the White House, this is
considered progress. “We’re engaged in ongoing, intense negotiations
to nail down a farm bill,” said Harkin. “On Tuesday evening (Feb.
26), Senate Majority Leader Harry Reid, Speaker Nancy Pelosi, (House
Agriculture Committee) Chairman Collin Peterson and I as well as Senate
Finance Committee Chairman Max Baucus and House Ways and Means Committee
Chairman Charles Rangel all got together. We had a productive meeting.
- David Bennett, Farm Press Editorial Staff
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Herbicide
resistance a major issue in corn
In corn, as in all crops, herbicide resistance has
become a major issue, and it’s one that must be weighed carefully as
growers enter a new production year. “We’ve been spending a lot of
time in the last several years talking about glyphosate resistance, and
that certainly is one of the most important issues in Georgia with
Palmer amaranth pigweed,” says Eric Prostko, University of Georgia
Extension weed scientist. “We also have some ALS resistance issues,
and for you as a corn grower, that would include herbicides like Accent,
Steadfast and others.” Unfortunately, in 2007, a possible resistance
to atrazine was discovered in Macon County, Ga., says Prostko. “Some
farmers and dealers knew about it even earlier. But it’s not as big a
concern because of the way they’re managing their crops in that
area,” he says. - Paul L. Hollis, Farm Press Editorial Staff
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NFU
delegates ask for quick farm bill action
Delegates to the National Farmers Union’s annual
meeting in Las Vegas called on the Bush administration and congressional
leaders to resolve their differences so a new farm bill can be enacted
immediately. If the House and Senate and Bush administration
representatives can’t make that happen in a timely manner, the
delegates asked that permanent law be allowed to take effect rather than
Congress passing another extension of the 2002 farm bill. “This is
crunch time,” said National Farmers Union President Tom Buis said.
“In the last year, the House and Senate have both passed very good
farm bills that will benefit all Americans. It is time for the
administration to put aside philosophical considerations and negotiate a
bill with the Congress.” - Forrest Laws, Farm Press Editorial
Staff
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U.S.
farms getting bigger, but number falling
The number of farms in the United States continues to
fall, while the average size of farms continues to grow, according to a
report by USDA’s National Agricultural Statistics Service. The
February reports estimated 2.08 million farms operating in the United
States in 2007, 0.6 percent fewer than in 2006. Total land in farms, at
930.9 million acres, decreased 1.5 million acres, or 0.16 percent, from
2006. The average farm size was 449 acres during 2007, an increase of 3
acres from the previous year. The decline in the number of farms and
land in farms reflects a continuing consolidation in farming operations
and diversion of agricultural land to non-agricultural uses. - Elton
Robinson, Farm Press Editorial Staff
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Spring
wheat in Kansas may face production challenges
Spring wheat prices that soared to the $20 per bushel
area recently have raised questions about whether this crop can be
successfully grown in Kansas. The problem with either spring or winter
wheat planted in the spring is that the weather almost always turns hot
and dry in Kansas by the time this wheat is filling grain, said Jim
Shroyer, K-State Research and Extension crop production specialist.
"That results in low test weight, shriveled grain, and low yields for
any spring-planted wheat in Kansas, including hard red spring wheat.
Protein quality of spring wheat grown in Kansas may also be less than
the protein quality of spring wheat grown in the Northern Plains,"
Shroyer said.
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Soybean
seed shortage increases production risks
With soybean seed in short supply in 2008, Mississippi
soybean growers are facing increased production risks including unproven
varieties and poor-quality seed. Mississippi State University Extension
Service specialists recommend producers research available varieties to
minimize these risks. “We’re not going to have replant options this
year because of the seed shortage,” said Trey Koger, MSU Extension
soybean specialist. “Most likely we are going to have one shot at
getting a stand, and we don’t need to plant too early when conditions
are cool and wet. Be aware of our optimal planting window from April 5
to April 20.” - Robert H. Wells, Delta Research and Extension
Center
|
Keeping the
lawyers busy: Battles over water escalating
Were I an aspiring law school student, I think I would
opt to specialize in environmental law and water rights. It looks as if
there’s going to be enough litigation in those areas to support a lot
of lawyers in fine style for a long while. Most people don’t give
water much thought. We turn on the tap or crank up the irrigation pump,
and the water flows. But for some areas of the Southeast this past
summer, that wasn’t the case, thanks to a multi-year drought that
depleted lakes and reservoirs and had states suing each other over
access to water. Here in the Mid-South, a high profile lawsuit centers
on the state of Mississippi’s claim that the city of Memphis is
stealing water from an across-the-state-line Mississippi aquifer.
Mississippi wants $1 billion as payment for the estimated 372 million
gallons Memphis has pumped since 1965. - Hembree Brandon, Farm Press
Editorial Staff
|
Alternative
fuels from forests
Fifty forest landowners and industry leaders learned
about the potential of using low-grade wood products to produce biofuels
during the recent Beauregard Forestry Association annual meeting at
Deridder, La. “With fuel prices escalating, it is important for forest
landowners to be involved in helping to find an alternative to using
fossil fuels,” said LSU AgCenter forester Keith Hawkins. After
harvesting a tract of timberland, between 2 tons and 8 tons per acre of
forest residues remain on the land. “We need to find a way to utilize
this residue and develop a market for it,” said Hawkins as he
introduced Les Groom, who discussed a research project he is conducting
on making biofuels from wood chips and woody residues. - John Chaney,
LSU AgCenter
|
Dreams
on the campaign trail: tax cuts, deficit reduction
It all sounds so positive and forthright — the
promises the candidates are parroting as they try to persuade voters to
give them the job of running the country. “If you elect me, I will …
get the economy back on track … devise a workable, affordable health
care program … solve the problems of Social Security and Medicare …
eliminate waste in government … restore trust in the system …
achieve a workable solution for Iraq/Afghanistan … ease the
housing/mortgage crisis … cope with the massive federal debt, curb
inflation, and restore fiscal soundness, blah, blah, blah.” All the
time knowing full well that whoever gets to usher George Bush out of the
White House next January will inherit a helluva mess that is not going
to be quickly or easily resolved. - Hembree Brandon, Farm Press
Editorial Staff
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Market News
Richard A. Brock
Check out the latest corn and soybean market advice from
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