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Logan
Hawkes
10/19/05
Crop News Weekly
With another nice break in Midwest weather,
harvest is progressing on or ahead of schedule, perhaps nowhere better
than in Iowa. In addition to running first in the race again for best
corn production, it appears as though Iowa will reclaim the lead in
soybean harvest as well. And because of the hot, dry weather, the
pumpkin harvest is the best it's ever been as well. Some have all the
blooming luck. The national corn and soybean harvest, however, looks as
though it will still fall slightly short of last year's totals.
With a waning harvest full moon on the rise again tonight, we've got
plenty to offer this week in the way of ag news, starting with the costs
of doing business on the farm. No surprise, but farm expenses are up
again, in just about every area. Will it ever end? Sure - as soon as it
snows in Texas on an August afternoon. In other news, you might call it
a friendly reminder. An unusual letter sent by Sen. Saxby Chambliss to
Agriculture Secretary Mike Johanns is asking for a 60 percent reduction
in U.S. farm subsidies. You need to get the details below. Also this
week, recent discussions about the 2007 Farm Bill have centered on the
impact that trade negotiations will have on the shape of new farm
legislation. And, speaking of subsidies, farmers from Brazil are once
again fostering support for U.S. farm subsidy reduction. Elsewhere, it
may seem a little James Bond-ish, but the new IPM Scope digital camera
from Spectrum Technologies helps identify and track plant pests such as
aphids and diseases such as Asian soybean rust. What will they think of
next?
You'll find these stories and a lot more in this mid-October issue of
Crop News Weekly. Happy reading.
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2005
farm production expenses projected higher
10/17/05
Just how much are rising fuel and fertilizer costs
impacting the bottom line on your farm? Plenty, according to the latest
projections from USDA. Total U.S. agricultural production expenses in
2005 are projected to be $218.7 billion, up $8.9 billion or 4 percent
from this past year. Since a decline in 2002, expenses have increased by
about $7 billion or more in each of the last three years. Rising costs
of energy-based inputs such as fuel and fertilizer and increasing
interest expenses will account for more than 60 percent of the increase
in costs this year. - Paul Hollis, Farm Press Editorial Staff
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Congress
will write the next farm bill
10/12/05
You might call it a friendly reminder. That's what
Washington observers were saying about an unusual two-page letter sent
by Sen. Saxby Chambliss, R-Ga., to Agriculture Secretary Mike Johanns
and U.S. Trade Representative Rob Portman. Chambliss, chairman of the
Senate Agriculture Committee, fired off the letter on Oct. 9 after
Portman said he planned to offer to reduce U.S. farm subsidies by 60
percent to try to restart the stalled Doha Round negotiations in the WTO
in Zurich, Switzerland. The letter was released to the agricultural
media on Oct. 11. - Forrest Laws, Farm Press Editorial Staff
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Eliminating
commodity programs reduces net income
10/14/05
The structure of the 2007 farm bill has engendered a
lot of discussion at most of the meetings we have attended this summer.
Of particular interest has been the impact that trade negotiations will
have on the shape of the new farm legislation. The impact of trade
negotiations has generated significant attention since the recent cotton
ruling went against the U.S. While not dealing with other U.S. crops,
some of the language in the decision makes it clear that government
support for other crops might be in danger as well. One of the
provisions of current commodity support programs restricts those
participating in these programs from taking the direct payments and then
switching to the production of vegetables and fruits. - Daryll Ray,
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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Brazilian
farmers energized by WTO rulings
10/14/05
Brazilians farmers are asking for more action from
their international negotiators in the WTO (World Trade Organization).
The outcome of complaints against U.S. cotton and sugar programs have
energized the country. The WTO has become almost sacred ground for
Brazilians, where they believe they can win a commercial fight against
stronger competitors, such as the EU and the United States. More than
that, they believe that the WTO decision set a standard for other
countries within the Group of Twenty (G-20) for international commerce
for agricultural products. Not surprisingly, the G-20 is led by Brazil
and India. Even so, Brazilians farmers feel this is not enough and there
is still room for additional gains. - Jose Sergio Osse, Farm Press
Daily
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Spy
on pests in the field
It may seem a little James Bond-ish, but the IPM Scope
digital IPM camera from Spectrum Technologies helps identify and track
plant pests such as aphids and diseases such as Asian soybean rust. The
IPM Scope camera captures and magnifies images or video by 40 to 140
times. The enhanced digital images can then be up-loaded to a personal
computer through a simple USB connection for e-mailing to industry
partners for quick identification. An LED light illuminates the sample.
- Farm Industry News
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seasons, Quadris has been increasing soybean yields on commercial fields
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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Fertilizer
and gas prices
THE PRICE of natural gas continues to drive up the
cost of nitrogen fertilizer, forcing the industry toward more nitrogen
fertilizer imports. It could get worse. Domestic natural gas futures are
predicted to reach $12/one thousand cubic feet (Mcf) for October, about
double what prices were a year ago. Natural gas is the primary feedstock
material for nitrogen production. Therefore, as domestic natural gas
prices rise, it makes more sense to produce more nitrogen fertilizer
overseas where natural gas is cheaper. Fertilizer, especially in
granular form, is much easier to import than gas. - Farm Industry
News
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Johanns
says safety net calls for more market access
10/11/05
Agriculture Secretary Mike Johanns says that a true
safety net for farmers must reach beyond subsidies and bring growers
"real and substantial market access" if they are to continue to lead the
nation and the world in agriculture. As he has at USDA Farm Bill Forums
around the country, Johanns again claimed the current farm bill is
contributing to agriculture's problems because farm payments are being
capitalized into increased land values and benefits are not being
distributed equitably. - Forrest Laws, Farm Press Editorial
Staff
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News from the Top of the
Hill
10/14/05
US Proposes Major Cuts in WTO Talks - The
United States in a major effort to move forward the WTO negotiations on
agriculture proposed eliminating market-distorting tariffs and subsidies
within 10 years. The 148 WTO members are suppose to agree on an outline
for a global trade deal as part of the Doha round of negotiations this
December in Hong Kong. The U.S. proposal includes:
Domestic support - amber box: 60% reduction in trade-distorting farm
subsidies for the U.S. (EU and Japan would have to make cuts of 83%).
Domestic support - green box: no expenditure caps for Green Box
programs (these types of farm programs are considered non-trade
distorting).
Progressive tariff reductions: developed countries cut their tariffs
by 55-90%. Lowest tariffs cut by 55%, with cuts ranging to 90% for
highest tariffs.
Tariff rate caps: establish a "tariff cap" ensuring no tariff is
higher than 75%,
Sensitive products: limit tariff lines subject to "sensitive
product" treatment to 1% of total dutiable tariff lines.
Export subsidies: eliminate all agriculture export subsidies by
2010.
STEs: establish new disciplines on export State Trade Enterprises
that end monopoly export privileges, prohibit export subsidies, and
expand transparency obligations.
Food aid: establish disciplines on food aid shipments that guard
against commercial displacement, while removing obstacles to emergency
shipments and deliveries to countries with chronic food aid needs.
Export credit programs: establish specific disciplines on export
credit programs to bring them in line with commercial practice with a
maximum repayment period of 180 days.
AG Groups React to WTO Proposal - The reaction by most U.S.
agricultural organizations was generally positive towards the U.S. WTO
proposal. However, this is dependent upon major concessions from other
countries. The American Farm Bureau Federation said, "bold action is
needed to provide commercially meaningful access to world markets for
America's farmers and ranchers. The agricultural trade proposals put
forth today by the United States will significantly advance that
position within the WTO agricultural negotiations." The National Pork
Producers Council in a statement said, "We fully support the U.S.
negotiating objectives and look forward to the conclusion of a
comprehensive, meaningful Doha Round agreement." The National Farmers
Union (NFU) has concerns with the proposal. NFU said the U.S. proposal
would "significantly alter, if not eliminate, much of the current safety
net for U.S. farmers and ranchers, without getting anything meaningful
in return."
Gov. Schwarzenegger Vetoes COOL - California Governor Arnold
Schwarzenegger vetoed a mandatory country-of-origin labeling (COOL)
bill. The bill would have required retailers to label beef produced
outside of the U.S. with the country where the beef was born and raised.
In his veto message, Schwarzenegger said the bill would be "unworkable,
costly and impossible to enforce while providing no improvement in
public health protection or additional benefits to the consumer."
More Budget Cuts - The House Republican leadership is now asking
for savings of at least $50 billion from mandatory spending programs.
The original budget resolution called for savings of $35 billion. The
increased savings is to offset the cost of Hurricane Katrina. Committees
will now be given until October 27 to determine their proposed spending
cuts.
2006 Agricultural Outlook Forum - USDA's annual Agricultural
Outlook Forum will be held February 16-17, 2006 at the Crystal Gateway
Marriott Hotel, Arlington, Virginia. The topics for the forum will focus
on rural development, farm policy, conservation, economic outlook for
commodities, globalization and U.S. trade, animal health, and bio-tech
development. More information is available at agforum@oce.usda.gov. -
Scott Shearer, National Hog Farmer
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Superbowl
of Agriculture report
THE MARKETERS of the Farm Progress Show coined a
catchy term awhile back, calling their event The Super Bowl of
Agriculture. I take exception to that description. Sure, the show is
big. But I spend the Super Bowl eating chips and ham, sitting on the
couch and falling asleep. At the Farm Progress Show, I logged at least
four miles on foot and barely had time to wolf down a pork sandwich
between booth visits. No nap time. That's how much there is to see. -
Wayne Wenzel, Farm Industry News
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NCGA
defends ethanol
SHOULD solar energy shining down on crops be
considered an energy expenditure when figuring the net energy gain of
producing ethanol from corn? Most reasonable people would say no. But
others with close ties to the oil industry think differently. Take, for
example, anti-biotechnology researcher David Pimentel and Tad Patzek, a
former employee of Shell Oil and paid consultant to Shell and Chevron.
Patzek and Pimentel recently teamed up to produce a study on the net
energy balance of ethanol. Gaining considerable national attention, the
study alleges ethanol production requires more energy than the resulting
ethanol fuel contains. - Farm Industry News
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Tour Brazil with Corn &
Soybean Digest Magazine
10/19/05
Time is running out to 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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Six
sweet rides
FOR TWO DAYS in July, the rough terrain surrounding a
hunting lodge in Minnesota became the testing grounds for the Farm
Industry News ATV Rodeo. Here, a group of Team FIN farmers put six of
the latest ATVs through their paces. The farmers tested the ATVs on a
course designed to replicate farm tasks. It was a combination of woods,
water, hills and sand with a barrel event and salt-bag handling tossed
in. The farmers attempted to push the ATVs to the limit. They spun the
vehicles in a sand pit and plowed them through a muddy creek. They
loaded them down with the salt bags and tested the brakes on hills. They
opened up the throttle on gravel roads and wove the vehicles around
barrels. - Karen McMahon, Farm Industry News
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Tearless
Tier 3
WAS I the only one cheering at the news of stricter
EPA off-road diesel emissions standards? Seems all I heard about the
issue for most of the past five years was how taking soot and nitrous
oxide (NOX) out of tractor diesel smoke couldn't be done without either
bankrupting the industry or passing onerous costs on to farmers. Perhaps
that weighted message ringing in my ears was due to the superior funding
of the diesel engine lobby. At times, the industry even rallied farmer
organizations to speak out from the "grass roots" against emissions
regulations. - Wayne Wenzel, Farm Industry News
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Market News
Richard A. Brock
Check out the latest corn and soybean market advice from
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