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Logan
Hawkes
05/17/06
Crop News Weekly
There's so much attention being focused on
immigration reform and U.S. policy abroad, it's easy to miss out on the
news that impacts life on the farm. For example, Brazil is positioning
their soybean export trade to target the growing Chinese market, a move
that is good for Brazil, perhaps not so good for future U.S. soybean
exports. And there's competition issues at the domestic level. While
everyone seems to agree that ethanol production is a good thing for our
nation, some argue corn is the best farm product to get the job done.
The ASA says soybeans are a better ethanol crop while others support
development of sugar-rich alternative crops, like sugarcane, to meet the
need.
Elsewhere in the news this week, U.S. farmers find themselves in an
anxious position these days, with their own government appearing to be
hell-bent on placing agriculture on the scrap-heap. Can politicians ever
keep their promises? Also this week, Strip-till and no-till tillage
systems have lower fuel use and lower costs than typical-till and
heavy-till systems. Get the details inside this issue. And - hold on to
your hats - USDA's first crop assessment of 2006-07 is for smaller
output in all major U.S. crops. However, planting is still under way in
many parts of the United States, making the May 12 estimates for the
2006-07 season highly tentative.
There's far more ag news to cover this week than usual, so dig in and
enjoy. Happy reading!
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Farmers
having their say, but is anybody listening?
05/15/06
U.S. farmers find themselves in an anxious position
these days, with their own government appearing to be hell-bent on
placing agriculture on the scrap-heap along with textiles and other
industries that have practically become non-existent in this country. To
their credit, the commodity groups and organizations that lobby for
farmers have worked with the current Administration and Congress to
insure a "fair shake" for farmers in the upcoming farm bill. But it
hasn't done much good. It has resulted in broken promises -- promises
that were made when the current farm bill was passed and signed into
law. - Paul Hollis, Farm Press Editorial Staff
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Costs
of alternative tillage systems
05/16/06
Strip-till and no-till tillage systems have lower fuel
use and lower costs than typical-till and heavy-till systems, according
to a University of Illinois (U of I) Extension report. "Tillage adds
about $9.50 in costs per acre and between one and two gallons of fuel
use," says Gary Schnitkey, a U of I Extension farm financial management
specialist, who co-authored the report with colleague Dale Lattz. "The
economic advisability of adopting these reduced tillage systems depends
on whether yield losses occur or pesticide costs are increased with
their adoption." Schnitkey says the report, "Costs and Fuel Use for
Alternative Tillage Systems," was prompted by recent increases in fuel
and new equipment prices. - The Corn & Soybean Digest
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USDA
forecast smaller U.S. crops in 2006-07
05/15/06
USDA's first crop assessment of 2006-07 is for smaller
output in all major U.S. crops. However, planting is still under way in
many parts of the United States, making the May 12 estimates for the
2006-07 season highly tentative. U.S. cotton production for 2006-07 is
forecast at 20.7 million bales, 13 percent below 2005-06, based on a
projected yield of 770 pounds per acre. - Elton Robinson, Farm Press
Editorial Staff
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Tax cuts
and deficit spending
05/16/06
If you have an income of $1 million (hey, the public
thinks everyone in farming is a millionaire from Uncle Sam's crop
program payments), your friends in Washington want to give you a tax cut
of $42,000. Won't exactly buy a big Mercedes, but maybe a lesser model
for tooling around the farm and running to the parts store. If your
income is a paltry $50,000 (we're speaking hypothetically, of course,
since everyone in farming is a millionaire, and $50k is chump change),
those selfsame D.C. buddies want to slash your taxes by -- are you
ready for this? -- $46. Which might buy a tank of gas for your pickup.
- Hembree Brandon, Farm Press Editorial Staff
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News from the Top of the
Hill
05/12/06
National Hog Farmer
Agriculture Appropriations -- This week, the
House Appropriations Committee approved the fiscal year 2007 agriculture
appropriations bill. The bill provides $18.4 billion in discretionary
funding which is $96 million below last year's appropriations bill. The
committee extended the peanut storage and the Milk Income Loss Contract
(MILC) programs for one month, which allows them to expire at the end of
the 2002 farm bill. The committee rejected an amendment by Congressman
Todd Tiahrt (R-KS) that would have allowed individual companies to test
for bovine spongiform encephalopathy (BSE). Highlights of the bill
include:
Avian Flu/Pandemic countermeasures and monitoring are funded at $80
million -- a new budget allocation. In addition, funds from the December
2005 supplemental, totaling $111 million are available through fiscal
year 2007.
Food Safety and Inspection Service is funded at $853 million, $24
million above last year and $96 million above the President's request.
The bill does not include $105 million in new user fees for meat and
poultry inspection as proposed by the Administration.
Animal and Plant Health Inspection Service activities are funded at
$904 million, $92 million above last year. The bill does not include $8
million in new user fees proposed by the Administration.
Bovine Spongiform Encephalopathy (BSE) detection and prevention
activities are funded at about $90 million, the same as last year.
Commodity Supplemental Food Program is funded at $118.3 million, $11
million above last year.
Child Nutrition Programs (Mandatory) are funded at $13.3 billion,
$685 million above last year.
Special Supplemental Nutrition Program for Women, Infants, and
Children (WIC) is funded at $5.244 billion, $40 million above last
year.
Food Stamp Program (Mandatory) is funded at $37.9 billion. In fiscal
year 2007, participation is estimated to decrease by about 1.1 million
participants according to the most recent estimates by the
Administration.
Food for Peace Program (PL 480) Title II is funded at a program
level of $1.2 billion, an increase of $85 million above last.
Agricultural Research Service is funded at $1.2 billion, $49 million
below last year's level.
Conservation Operations activities are funded at $791 million, $40
million below last year.
The Foreign Market Development (FMD) program is fully funded at
$34.5 million and the Market Access Program (MAP) is fully funded at
$200 million.
The House of Representatives may consider the bill as early as next
week.
Ethanol Import Tax -- Senators Dianne Feinstein (D-CA), John
Kyle (R-AZ), and John Sununu (R-NH) have introduced legislation to lift
the 54-cent/gal. tax on imported ethanol. President Bush has indicated
the import tariff should be temporarily lifted to assist coastal states
secure adequate supplies of gasoline. Senators Tom Harkin (D-IA), Byron
Dorgan (D-ND), Dick Durbin (D-IL), Tim Johnson (D-SD), and Barack Obama
(D-IL) sent a letter to President Bush objecting to the lifting of the
ethanol import tax. The Senators said this "would be a serious mistake
that would undermine a carefully-targeted U.S. tax incentive promoting
the growth and development of our domestic renewable fuels industry."
Senators Charles Grassley (R-IA) and John Thune (R-SD) in a letter
opposing the proposal said, "lifting the tariff would be a victory for
the oil companies, a kick in the face to rural America where the ethanol
comes from, and leave consumers with the same high gas prices we have
today."
Agricultural Groups Oppose Lifting Ethanol Import Tax -- In a
letter to the House and Senate leadership, the American Farm Bureau
Federation, National Corn Growers Association, and the Renewable Fuels
Association stated their strong opposition to the legislation introduced
to lift the tax on imported ethanol. The letter stated, "Such a policy
is short-sighted and detrimental to America's long-range energy needs
and we strongly urge all Senators and Representatives to oppose this
legislation. While demand for ethanol has grown over the past several
months due to decisions by the petroleum industry to remove methyl
tertiary butyl ether (MTBE) from gasoline, that change has not caused
the large spikes in retail gasoline prices." The organizations also
reminded the leadership that Brazil's ethanol industry is highly
subsidized. "Most importantly, removing the secondary ethanol tariff
would be asking American taxpayers to subsidize already heavily
subsidized ethanol and sugarcane production in countries like Brazil,"
the letter stated.
Rural Working Group -- Energizing America -- The House
Democratic Rural Working Group, co-chaired by Congressmen Bobby
Etheridge (D-NC) and Stephanie Herseth (D-SD), unveiled the House
Democratic Caucus' energy proposal, "Energizing America: Farmers Fueling
Our Energy Independence." It includes:
Doubles the percentage of renewable fuels sold in America in six
years;
Extends tax credit for ethanol and biodiesel through 2015 and
increases tax, benefits to small ethanol producers;
Increases the percentage of flex-fuel vehicles that run on ethanol,
or gasoline;
75% of all cars made in the United States would be flex-fuel cars
within seven years,
Increase the number of gas stations offering ethanol (E-85) and
biodiesel through new incentives and requirements; and
Invests in research to make biofuel production more efficient and
environmentally sound.
New Farm Bill Policy -- American Farmland Trust (AFT) released
its framework and vision for a new farm policy entitled, "Agenda 2007: A
New Framework and Direction for U.S. Farm Policy." AFT's proposal would
shift current direct farm program payments to new "green payments" to
create greater incentives for farmers to deliver environmental benefits.
The proposal would also provide for revenue-based risk management
programs to replace counter-cyclical programs; provide a $1 billion
grants program to foster innovative enterprises, markets and regional
food systems; and a new cooperative conservation program to encourage
further stewardship. Former U.S. Secretaries of Agriculture Clayton
Yeutter and Dan Glickman endorsed this new approach to farm policy.
Yeutter said, "The clock is ticking for U.S. agriculture. Our farmers
and ranchers can and should control their own destiny by taking the lead
on farm policy reform. The alternative is to risk World Trade
Organization challenges that may impose reforms on us that we would
prefer to avoid."
USDA Risk Assessment Farm Bill Paper -- Secretary of
Agriculture Mike Johanns released a risk management analysis paper, the
first in a series of USDA's farm bill theme papers. Johanns' said, "Our
purpose with these analysis papers is not to suggest policy but to
inform and educate the public." The paper provides data and analysis of
current risk management programs offered by USDA. The paper is
available at: http://www.usda.gov/.
- Scott Shearer
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The
monster under the bed
05/12/06
It's worthy of an early-day Mack Sennett film, the
farce going on in Washington these days, as everyone from the president
on down tries to see who can put on the biggest show of concern and/or
outrage about high gasoline prices. It's as if they all had a
simultaneous Road to Damascus experience and realized the petroleum sky
was falling. Democrats are blaming Republicans, Republicans are blaming
Democrats, and everyone's blaming Big Oil, which in the past quarter set
another record for profits -- some $16 billion collectively. -
Hembree Brandon, Farm Press Editorial Staff
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Brazilians
seeking closer relations with China
05/12/06
The United States isn't the only country looking to
take advantage of China's demand for agricultural products. A commission
from the Brazilian Agriculture Ministry went to China at the beginning
of March to settle sanitary and phytosanitary matters for a possible
increase in commerce between the two nations. The main objective was to
obtain a definitive certification of Brazilian transgenic soybeans for
export to that country and to sign a protocol with the Chinese
Quarantine Ministry. This is another step Brazil is taking to broaden
its agricultural export markets. Agreements in commerce could yield not
only exceptionally rewarding contracts in the gigantic Chinese market,
but also work as a kind of international truce between the two countries
when it comes to fighting over new opportunities. - Jose Sergio
Osse
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ASA
announces biodiesel priorities for next energy bill
05/11/06
The American Soybean Association (ASA) has long
advocated that soybean farmers can help the United States meet its
energy needs through the production of soy biodiesel. During a recent
national media teleconference, ASA outlined its biodiesel legislative
priorities for Congress to consider as it develops another energy bill.
"Biodiesel is environmentally sound alternative to petroleum diesel that
is made here in the United States using soybeans grown on American
soil," said ASA President Bob Metz, a soybean producer from West Browns
Valley, S.D. "Biodiesel is a top-notch product that lessens our
dependence on foreign oil, improves the quality of the air we breathe
and stimulates rural economies where it's produced." - American
Soybean Association
|
Curing
ills of trade policy a balancing act for agriculture
05/11/06
"You can make a fortune in the import business,"
promised the ads in the pulp magazines of my teen years. While most of
the fortunes were made by those selling their "blueprints for financial
success," there was a fascination and mysteriousness about goods from
other parts of the world -- and their low cost and potential for
profit only added to the allure. Made in Japan, a label that was sneered
at post-World War II as representing shoddy workmanship, soon grew to
represent high quality in automobiles, electronics, cameras, and a flood
of other goods craved by an America in the throes of economic prosperity
in the '70s and '80s. - Hembree Brandon, Farm Press Editorial
Staff
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Proper
soil fumigant application critical for producer
05/11/06
Though soil fumigants have been around for many years,
some growers may need to use these gas pesticides for the first time in
2006, and may not be familiar with the dangers of these soil-applied
products. Growers producing high dollar per acre crops, most prominently
vegetable crops, have been the traditional users of Telone and other
popular fumigants. With the decrease in tobacco acreage in the upper
Southeast, many growers have turned to niche crops, including
vegetables, which often require soil fumigants for controlling weeds,
disease and nematodes. - Roy Roberson, Farm Press Editorial
Staff
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Thiesse's
Thoughts: The Politics Of Ethanol
05/09/06
For the past decade or so, as the ethanol industry has
grown in Minnesota, Iowa and other Midwestern states, it has garnered
very little attention from big oil companies, the national media or from
the politicians in Washington, D.C. Now, all of a sudden, ethanol is a
major news story every day, is being discussed by President Bush and
congressional leaders, and is being blamed by some as a major cause of
our high retail gas prices. So what has changed in the past year? First
of all, the dramatic rise in crude oil prices to over $70/barrel, and
the resulting retail gas price at the pump of nearly $3/gal. Also in
August of 2005, Congress finally passed a comprehensive Energy Bill,
after nearly two years of debate, which emphasizes domestic development
of renewable energy.
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Road
Warrior: Global Perspectives
05/09/06
Dave Kohl writes: "Let's take a ride in the
fast lane and gain some global insight concerning issues and trends that
may influence your bottom line. These are based upon my travels and
attendance at the International Home Delivery Conference in Orlando and
several bankers' conferences." - The Corn & Soybean Digest
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Farm
programs should include range of producers
05/10/06
U.S. farm programs should be broadened to provide
benefits to greater numbers of producers, but not in a way that makes
"wealthy farms" even larger, Agriculture Secretary Mike Johanns says.
The secretary also says any changes in U.S. farm programs should make
them less vulnerable to challenges in the WTO where dispute panels have
ruled against provisions of the U.S. cotton program and may consider a
challenge to the rice program. - Forrest Laws, Farm Press Editorial
Staff<.i>
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Hurricane
assistance sign-up to begin May 17
05/10/06
Agriculture Secretary Mike Johanns announced farmers
may begin sign-up May 17 for four crop and livestock assistance programs
designed to help producers unfortunate enough to be in the paths of the
2005 hurricanes. Johanns authorized the programs, which will distribute
$250 million in Section 32 funds, last October. He offered no
explanation of why it took more than six months to begin the sign-up for
the programs. - Forrest Laws, Farm press Editorial Staff
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Producers
urge Committee to 'stay course' on farm bill
05/10/06
The message could not have been clearer: Farmers like
the current farm program and urge the U.S. Congress to either extend it
or use it as the base for a new one. Twelve members of the House of
Representatives Agriculture Committee seemed to get that message
following a recent field hearing in San Angelo, Texas. "I think the 2002
law works well," said Rep. Colin Peterson, Minnesota, ranking minority
member of the committee. "The testimony I've heard in Texas shows a lot
of commonality with what I hear in Minnesota." - Ron Smith, Farm
Press Editorial Staff
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What
is it that distorts markets?
05/10/06
We were interested in reading this year's Economic
Report of the President, http://www.gpoaccess.gov/eop/, which contains a
chapter on agriculture. One of the main themes of the report is that
"support to agriculture can be provided in many forms that are
potentially less market-distorting than existing commodity subsidies."
In this column we look at the ways the chapter proposes that this less
distorting support can be delivered.?After looking at a selected history
of the evolution of agricultural programs and who currently receives the
benefits, the report asserts that today's farmers "have many options for
managing the risks they face" that were not available at the time
commodity support programs were put in place in the 1930s. - Daryll
E. Ray
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Weather
brings mix of concerns for soybean farmers
05/10/06
Mississippi's soybean planting through mid-April was
well ahead of our five-year average. Even though the season is off to a
good start, it has not been without some concerns. Many farmers started
planting earlier than ever before. Although many had some concerns, the
yields that early planting has afforded us in recent years made many
push the envelope on planting. Some acreage in the Delta was planted as
early as late February. - Alan Blaine
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Good
marketing could easily offset rising costs
05/11/06
What you don't know could cost you $30,000 at the end
of this cotton growing season. If you're counting, that's enough to
purchase around 6,500 gallons of diesel fuel and enough to fertilize 200
acres of cotton at today's prices. Looked at another way, it's enough to
offset the increase in both fertilizer and fuel costs over last year on
788 acres of cotton. According to a survey, $30,000 is a rough average
of the additional profits growers achieve annually after graduating from
the Texas A&M Master Marketer program, so it's not out of the realm of
possibility. - Elton Robinson, Farm Press Editorial Staff
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Sign Up for
MarketMaxx
05/17/06
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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