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Logan
Hawkes
11/02/05
Crop News Weekly
Welcome to the eleventh month of the year. Is
it just me, or has time accelerated? It's funny, but I am getting to
sound more like my father every year. It seems like just yesterday the
headlines were full of tropical weather and hurricane news. Oh - that
was just yesterday. Perhaps it is not time itself that is going
by faster, but us.
It's tough to start this newsletter with a depressing issue, but storm
clouds have been gathering on the Hill and recent word from Washington
shadows our coverage today. News that the House Agriculture Committee on
Friday passed a spending plan that would cut the overall USDA budget by
$3.7 billion and lower crop subsidies by about $1 billion is a hard pill
to swallow. You can follow the development in Richard
Brock's column in the Corn & Soybean Digest this week. In other news
and issues, Kent Thiesse talks about corn storage, the American Soybean
Association savors a victory over soybean rust management financing,
USDA gets another earful of agriculture woe, Brazil steps to the plate
on alternative fuel issues, and lower fuel prices for the foreseeable
future are apparently something that's not going to happen.
You'll find these stories and a lot more in this issue of Crop News
Weekly. Happy reading.

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Corn
storage issues
10/31/05
The biggest challenge with the 2005 corn harvest has
been finding adequate storage space for all the harvested corn. The
combination of a large amount of carry-over 2004 corn in many areas,
along with greater than expected 2005 corn yields, and combined with
reduced grain exports through the Gulf after the September hurricanes,
has filled both on-farm and grain elevator storage to capacity. We are
already seeing large amounts of corn piled on the ground in many
communities, and are likely to see much more before the 2005 corn
harvest is completed. Many grain elevators have closed their market to
taking in and storing corn, other than from producers that are selling
the corn on a cash sale to the elevator. - Kent Thiesse, The Corn &
Soybean Digest

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visit
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ASA
savors victory: Continuation of rust management
10/28/05
The American Soybean Association (ASA) and its 25,000
members are celebrating the announcement that the U.S. Department of
Agriculture will again fund projects to provide for the early detection,
diagnosis, and tracking of the spread of Asian soybean rust in the 2006
growing season. This nationally coordinated network also will help
producers in making crop management decisions that reduce pesticide
input costs, reduce environmental exposure to pesticides and increase
the efficiency and efficacy of pesticide applications. - Farm Press
Daily

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Ag
lenders warn of 'erosion of equity'
10/28/05
While others are concerned about the next farm bill,
Arkansas bankers are worried about something more immediate. This month,
both USDA officials and state politicians heard that loud and clear at
the USDA's "farm bill listening tour" stop in Little Rock. Continuing a
chorus that began earlier this summer, the bankers and lenders predicted
an unhappy reality will soon hit agriculture. When it does, the USDA
can't claim it wasn't warned..."never have so many spent so much to
produce abundance and realized so little..." - David Bennett, Farm
Press Editorial Staff

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guesswork out of early-season insect control.
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News from the Top of the
Hill
10/28/05
COOL Delayed Two Years - The House-Senate
agriculture appropriations conference committee voted to delay mandatory
country-of-origin labeling (COOL) for meat, fruits and vegetables until
Sept. 30, 2008. Under the 2002 farm bill, mandatory COOL was to be
implemented in 2006. Opponents of mandatory COOL have argued that the
current law is unworkable and the costs for producers and industry would
out-weigh the benefits. We can expect this issue to be revisited during
consideration of the farm bill in 2007.
Agriculture Appropriations Conference Committee - The
House-Senate agriculture appropriations committee completed action on
the $100.2 billion fiscal year 2006 agriculture appropriations bill. Key
provisions of the bill include:
Food Safety and Inspection Service - $838 million, which is an
increase of $20 million;
Animal Plant and Health Inspection Service - $820.457 million;
National Animal Identification System activities - $33.34
million;
Animal surveillance and bovine spongiform encephalopathy (BSE)
activities - $17.184 million;
Agricultural Marketing Service - $75.376 million;
Grain Inspection, Packers and Stockyards Administration - $38.443
million;
Food Stamp Program - $40.7 billion;
Food and Drug Administration - $1.5 billion, which is a $40-million
increase;
Country-of-Origin Labeling (COOL) - delayed until 2008;
Rejected downer animal legislation that would have prohibited downer
animals, including swine, from entering the food chain. USDA's policy
prohibits this for beef; and
Rejected administration's proposal for user fees for meat and
poultry inspection.
The conference report will now be considered by the House of
Representatives and the Senate, and then sent to the President for
approval.
2005 Crop Year Counter-Cyclical Payments - USDA announced first
partial 2005 crop year counter-cyclical payments. The 2002 farm bill
requires these payments to be made in October when possible. The partial
payment rates equal to 35% of the projected total rate. Announced
partial payments rates are: corn - 14 cents/bu.; sorghum - 9.45
cents/bu.; barley - 5.25 cents/bu.; upland cotton - 4.81 cents/lb.; rice
- 19.25 cents/cwt.; and, peanuts - $36.40/short ton.
Japan Sanctions - Senators Pat Roberts (R-KS), Kent Conrad (D-ND)
and 19 other Senators introduced legislation that would impose economic
sanctions on Japan if it does not reopen its market for U.S. beef by
Dec. 15. The legislation would require the U.S. Treasury to impose
additional tariffs on selected items grown, produced or manufactured in
Japan in an amount equal to $2.7 billion by Dec. 31, 2005. The tariffs
will continue until the administration can certify to Congress that
Japan has reopened its market to U.S. beef. In introducing the
legislation, Senator Roberts said, "Japan has chosen to ignore
internationally recognized science and has instead based their food
safety on emotional, politically-driven arguments. This comes at a high
price for the American beef industry." Congressman John Salazar (D-CO)
plans to introduce similar legislation in the House.
Japan Reacts to Sanctions Legislation - The Japanese Ambassador
to the United States reacted quickly after the sanctions legislation was
introduced in the Senate. In a statement the Ambassador said, "We are
disappointed to learn that a group of Senators proposed a legislation
that would oblige the United States Government to impose arbitrary
tariffs on selected Japanese products to the United States if Japan
fails to reopen its market to U.S. beef by the end of this year. The
domestic procedures in Japan necessary to reopen its market to U.S. beef
are in the last stage, and tangible progress was made on Oct. 4. A
threat of retaliation is not helpful in solving the problem based on
science." The Japanese Prion Committee is expected to meet next week to
make its final recommendation to the Food Safety Commission.
Long-Distance Animal Trucking Petition - The animal rights
groups, the Humane Society of the United States, Farm Sanctuary,
Compassion Over Killing, and Animals' Angels have filed a petition with
USDA to limit truck transport of animals to no more than 28 hours, as
required currently for animals hauled by train. The petition would
require that for every 28-hour period of confinement in interstate
transport, animals would need to be off-loaded for five hours and
watered and fed.
House Passes Cheeseburger Bill - The House of Representatives has
passed legislation to protect restaurants, supermarkets, and grocery
manufacturers from obesity lawsuits. The "Personal Responsibility in
Food Consumption Act" or the so-called "Cheeseburger Bill" prohibits
lawsuits by customers who blame fast-food companies and restaurants for
their obesity or weight gain. - Scott Shearer, National Hog
Farmer

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Johanns
says safety net more than subsidies
10/26/05
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. Those were some of the secretary's comments as he
spoke to farm organization representatives at a Commodity Club luncheon
in Washington Oct. 6. The speech was billed as a progress report on what
Johanns has learned during the 17 farm bill listening sessions he has
hosted since July. - Forrest Laws, Farm Press Editorial Staff

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The
Road Warrior of Agriculture
10/25/05
Dave Kohl writes: "Recently, my business
associate, Alicia Morris, and I completed two three-day courses in cash
flow, ratio analysis and loan structuring with Dean Duelke, of Deannco
Financial Enterprises, Irvine, CA. The courses were very intense and
were led by an outstanding instructor who has had numerous years of
experience as a banker and consultant." - The Corn & Soybean
Digest

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Lower
fuel prices in near term doubtful
10/26/05
A "long, mild fall" could help ease oil prices back
from current post-Katrina/Rita levels. But odds are that little can be
done to return U.S. gasoline, diesel and natural gas prices to the
ranges farmers and consumers were paying a year ago. Energy analysts
estimate that Hurricane Katrina disabled 7 percent of U.S. oil refining
capacity when it struck the Gulf Coast on Aug. 29. On the Friday before
Hurricane Rita hit the Louisiana-Texas coast on Sept. 24, 35 percent of
U.S. refining capacity was shut down. But, with all the attention those
events have brought to the energy markets, they are the effects, not the
causes of tighter energy supplies, according to Matt Roberts, an energy
economist with the Ohio State University Extension Service. - Forrest
Laws, Farm Press Editorial Staff

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Brazil
sets pace on alternate fuels
10/26/05
More than 30 years after the Arab oil embargo struck
fear through much of the industrialized world and U.S. leaders vowed
never again, things have changed - at least in Brazil. The largest
country in South America,Brazil has almost unshackled itself from
foreign oil. It once imported 80 percent of its crude oil; now, it
expects to be self-sufficient in a few years. Today, 40 percent of all
the fuel Brazilians pump into their vehicles is ethanol, derived
primarily from sugarcane bagasse. The government requires that all fuel
sold within the country contain at least 25 percent ethanol. -
Hembree Brandon, Farm Press Editorial Staff

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Farm
groups demand increased market access overseas
10/27/05
U.S. Trade Representative Rob Portman's proposal to
eliminate U.S. agricultural export subsidies and cut farm price supports
by more than half by 2010 is generally winning praise from farm
organizations and Congress. But some of those groups and the chairman of
the Senate Agriculture Committee are demanding that any reductions in
U.S. subsidies for a new WTO agreement must be matched by increased
access to other countries' markets. Portman's plan, outlined in an
article in the Financial Times before it was tabled at a meeting of Doha
Round negotiators in Zurich, Switzerland, Oct. 10, also called for
tariff reductions of 55 to 90 percent by other WTO members and
restrictions on WTO litigation activities. - Forrest Laws, Farm Press
Editorial Staff

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Scientists
reflect on influential field trial
10/25/05
When Ernie Jaworski became the leader of Monsanto's
first biotechnology team in 1979, he had no idea that 25 years later
farmers would be planting 200 million acres of genetically engineered
crops. For all Jaworski knew, he and his team were embarking on a search
that could have led them to a dead-end that would jeopardize their
scientific careers and waste millions of dollars of Monsanto's money.
"Could you put corn DNA in a plant and keep it stable? Could a trait
that you put in a plant be inherited? All of those were unknowns at the
time," he said. "It took several years of hard work to find out whether
we could solve the scientific issues that made all this possible." -
Farm Press Editorial Staff

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New CCR
system could mean more money
10/27/05
Producers placing their cotton in the CCC loan this
fall may notice a new line on the Cotton A-5 Statement of Eligibility
and Information Worksheet that you sign at your county Farm Service
Agency office. Line 21, which says, "Do you agree that any agent you
authorize to redeem this loan may use the automated EAD redemption
process?" looks fairly innocuous, but it could mean more money in
growers' pockets, according to those familiar with USDA's new electronic
loan redemption service. - Forrest Laws, Farm Press Editorial
Staff

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Tour Brazil with Corn &
Soybean Digest Magazine
You have just over a week remaining to register! 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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Corn & Soybean Digest Market News

Richard A. Brock
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