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Logan
Hawkes
02/22/06
Crop News Weekly
Late winter or not, the spring season is just
around the corner and more and more talk is focusing on the farm bill.
Agriculture Secretary Mike Johanns says he strongly opposes any effort
to extend the current farm bill beyond 2007, citing WTO concerns and the
need for reform in the U.S. ag industry. Not everyone, of course,
agrees. Catch the details in our top story of the week.
Elsewhere in the news: a boost for biodiesel? An Arkansas chemical
company is taking positive steps to convert their operations to the
alternative fuel source, giving rise to the hope that other major
companies will follow suit. And speaking of energy, if recent reports
are true, the world's energy crisis just got worse. Kuwait, long assumed
to have some of the world's largest oil reserves, may actually have much
less. In late January, Petroleum Intelligence Weekly, an energy industry
newsletter, said internal Kuwaiti records show the nation's oil reserves
are only about half the 99 billion barrels previously cited. Rounding
out the news this week, more about the farm bill, cell phone-based
technology on the farm, fungicide-responsive late season soy beans, a
farm health survey, and a counter-cyclical payment update.
You'll find these stories and more in this issue of Crop News
Weekly. Happy reading.
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Johanns:
no farm bill extension
02/17/06
Agriculture Secretary Mike Johanns says he strongly
opposes any effort to extend the current farm bill beyond 2007, saying
it might send a signal to the WTO that "we are waiting for them to write
our farm bill." Keeping the farm bill in place for another year or two
-- a move that appears to appeal to many row crop farmers, particularly
in the South -- would also be a waste of an opportunity to provide new
direction to American agriculture, the secretary said. - Forrest
Laws, Farm Press Editorial Staff
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New farm
bill in 2007 not a foregone conclusion
02/21/06
In political terms, says Fred Clark, "Next year's farm
bill is light years away." The Senate isn't doing anything on the farm
bill this year, he notes, and the House is only getting under way with
field hearings. And although there is an assumption that a farm bill
will be written in 2007, "It might not happen," the vice president and
general counsel for Cornerstone Government Affairs, Washington, said at
the ninth annual Conservation Systems Cotton and Rice Conference at
Robinsonville, Miss. - Hembree Brandon, Farm Press Editorial
Staff
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Federal
budget cuts
02/21/06
The Bush Administration is again suggesting some
proposed cuts in the level of spending on farm program commodity
payments for 2007 and beyond, to address the rapidly rising Federal
budget deficit. The expected expenditures on these commodity payments in
2005 were up significantly from the $14.5 billion estimated payments in
2004 and $15.9 billion in 2003. However, the 2003 and 2004 spending
levels were actually $7 billion and $8 billion under the USDA budgeted
amount due to higher grain prices, which resulted in lower than
anticipated levels of counter-cyclical payments (CCPs) and loan
deficiency payments (LDPs). - Kent Thiesse, The Corn & Soybean
Digest
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Chemical
company goes with biodiesel
02/16/06
If biodiesel truly is the wave of the future, Eastman
Chemical is riding a surfboard. "I want to share our story," said Gary
McDonald, manager of administration at the Batesville, Ark., company. "I
don't want you to think we're presenting ourselves as experts in
biodiesel. We're still getting up on the learning curve. But we're happy
to tell you what we've done so far, what we've learned so far, and what
we're planning to do." - David Bennett, Farm Press Editorial
Staff
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Economist:
Bad news on energy costs
02/15/06
If recent reports are true, the world's energy crisis
just got worse. Kuwait, long assumed to have some of the world's largest
oil reserves, may actually have much less. In late January, Petroleum
Intelligence Weekly, an energy industry newsletter, said internal
Kuwaiti records show the nation's oil reserves are only about half the
99 billion barrels previously cited. If there, the 99 billion barrels
would translate to about 10 percent of the world's reserves. - Farm
Press Editorial Staff
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Quilt fungicide, please visit http://www.quilt-fungicide.com
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Money at
heart of farm bill debate
02/15/06
In the wake of last year's devastating hurricanes,
Sen. Thad Cochran, R-Miss., chairman of the Senate Appropriations
Committee, began putting together an assistance package. Included was an
agriculture disaster provision that would have made a direct payment to
producers in disaster-declared counties. "The package started out at
about $4 billion," said Reese Langley, the senior director of government
affairs for the USA Rice Federation. "Unfortunately, throughout the
legislative process in the fall, Cochran faced opposition from the Bush
administration, which didn't want any type of direct payment. The House
Republican leadership was (also) opposed to the overall size and cost of
the aid package." - Farm Press Editorial Staff
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Rrrrinnnng!
Your irrigation pump's just shut down
02/16/06
Cell phone-based technology is saving Stan Jones
dollars, miles and, importantly, a lot of hours he'd otherwise be
spending during the growing season checking on irrigation pumps. The
Walnut Ridge, Ark., producer who had 5,000 acres of rice and 2,000 acres
of soybeans last year, 100 percent irrigated, uses 40 pumping units to
water all those fields. Additionally, he has five 10,000-gallon per
minute relift systems moving river water to several large fields,
including one that's 700 acres. - Hembree Brandon, Farm Press
Editorial Staff
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News from the Top of the
Hill
02/17/06
National Hog Farmer
Packer Ban - Congressman Leonard Boswell (D-IA)
has introduced H.R. 4713 which would prohibit a packer to "own, feed, or
control livestock intended for slaughter." Similar legislation, S. 818,
has been introduced in the Senate by Senator Charles Grassley (R-IA).
New CAFO Deadline - EPA has extended the deadline to July 31,
2007 for Concentrated Animal Feeding Operations (CAFOs) to comply with
federal clean water provisions related to discharges and to develop and
implement nutrient management plans.
2006 Net Farm Income Down - USDA is forecasting that 2006 net
farm income will be $56.2 billion. This is down $16.4 billion compared
to 2005. According to USDA, the value of production for crops will be
down $2.3 billion. Cash receipts for livestock and products are forecast
to be $122.3 billion in 2006. This is down $2.9 billion compared to
2005. Government payments are forecast to decline $4.5 billion. High
fuel and fertilizer prices will result in increase costs of $2.3 billion
for manufactured inputs. Total crop revenues from cash receipts and
government payments are estimated to be $127.9 billion.
2005 AG Trade Surplus - Even though the United States ended up
with a record trade deficit in 2005, agriculture ended the year with a
$3.7 billion trade surplus. According to USDA, exports were at $63
billion, approximately $1.6 billion higher than 2004. Imports were $59.3
billion which was $5.3 billion higher. Export values for fruits, nuts,
red meat, and poultry meat increased. There were declines in wheat,
corn, cotton, and soybeans. The increases in imports were from coffee,
malt beverages, juices, wine, fruits, nuts, and dairy products.
Record Trade Deficit - The U.S. trade deficit set a new record of
$725.8 billion in 2005. This is an increase of $108.2 billion over the
previous 2004 deficit of $617.6 billion. Individual trade deficits with
China, Japan, Europe, the Organization of Petroleum Exporting Countries,
Canada and Mexico all set new records last year. It was the fourth
consecutive year that the United States has set a new trade deficit
record. Imports reached $2 trillion last year. U.S. exports were $1.27
trillion. This was a record for U.S. exports. The U.S. trade deficit
with China reached a record $201.6 billion last year, a 24.5 percent
increase over the $161.9 billion deficit in 2004.
Rescind China PNTR - Senators Byron Dorgan (D-NC) and Lindsey
Graham (R-SC) have introduced legislation to repeal Normal Trade
Relations (PNTR) status for China. Dorgan in a press statement said,
"Since we granted it Permanent Normal Trade Relations status in 2000,
our annual trade deficit with China has exploded. It's two and a half
times greater today than it was then." In objecting to the proposed
legislation, US Trade Representative Rob Portman said, "The fact that
China was brought into the global trading system only gives us leverage
that we otherwise would not have." The agricultural community was
instrumental in the passage of PNTR in 2000. - Scott Shearer
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Late-season
soybeans show more fungicide response
02/15/06
A first-year study on large-scale research sentinel
plots at Stoneville, Miss., indicates soybeans planted later in the
season may respond more to fungicide applications than do early-planted
soybeans. Agronomist Trey Koger, USDA Crop Genetics and Production
Research, said the tests with varying fungicide programs were prompted
by worries in 2005 over the emergence of Asian soybean rust, which
scientists say thrives in warm, moist weather. - Andrew Bell, Farm
Press Editorial Staff
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Annual
survey to assess farm health
02/16/06
The USDA's National Agricultural Statistics Service is
giving agricultural producers the opportunity to provide the financial
data used by policymakers to draft the 2007 Farm Bill. ARMS is the
USDA's primary source of information about the current status of and
changes in financial conditions, production practices, use of resources
and household well-being for agriculture. The survey results will show
the impact of higher expenses, the shifting global markets, farmer
production decisions and governmental policies on the agricultural
economy. - Farm Press Daily
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Counter-cyclical
payment update
02/14/06
Thiesse's Thoughts: Based on the Feb. 9 USDA
supply and use estimates, which include estimated national average
prices for corn and soybeans in the current marketing year, it does not
appear that much has changed from previous USDA Reports. USDA estimated
the national average corn price at $1.90/bu. for the 2005 marketing
year, which runs from Sept. 1, 2005 through August 31, 2006. This will
likely result in USDA projecting the maximum total counter-cyclical
payment (CCP) of $.40/bu. for the 2005 corn crop. An advance payment of
35 percent of the estimated amount, or $.14/bu., was available to
eligible corn producers in late October 2005. - Kent Thiesse, The
Corn & Soybean Digest
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Perspectives
from the Road
02/14/06
Road Warrior Dave Kohl writes: "Travel on the
road provides a glimpse of what is going on in America. Lecturing at
conferences in Chicago, St. Louis, Austin and Atlanta and listening to
conference attendees can be draining, but energizing as well. Like this:
Forty-three percent of all new mortgages on homes are being made with no
money down..." - Dave Kohl, The Corn & Soybean Digest
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Alabama
ag commissioner urges use of biodiesel
02/16/06
Alabama Agriculture & Industries Commissioner Ron
Sparks is encouraged by the increased attention on alternative fuels in
recent months. The idea of fuels derived from sources other than oil is
not new to those in the agriculture industry. In fact, Alabama's
Department of Agriculture & Industries has been involved with the
testing and production of alternative fuels for many years. As the
Birmingham Airport Authority prepares to use biodiesel produced at the
Alabama Biodiesel Plant in Moundville in all of it's diesel powered
vehicles and machinery, Sparks hopes that others will follow their lead.
- Farm Press Daily
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Sign Up for
MarketMaxx
02/22/06
Sign up and play The Corn And Soybean Digest's fantasy
grain game called MarketMaxx. It's easy, fun and hopefully you'll learn
a little more about how to market the corn and beans your raise. It's
easy to sign-up. Just log on to http://www.marketmaxx.net and
register at the top left and begin trading your fictitious 100,000 bu.
of corn and 50,000 bu. of soybeans. If you're a winner at the end of the
game on October 31 you could take home the grand prize of a year's use
of a Massey Ferguson tractor or combine. Or, win additional prizes such
as a computer system from Syngenta Crop Protection, customized rugged
mobile computers from Grayhill Custom Mobile Solutions or a high-speed
satellite Internet service from Agristar Global Networks. - The Corn
& Soybean Digest
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Farm Industry News
Product
of the Week
View and read about the Farm Industry News Product of the
Week.
Click here to visit farmindustrynews.com
Corn & Soybean Digest
Market News
Richard A. Brock
Check out the latest corn and soybean market advice from
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