Friday 27th January 2012

Northern Nebraska crops show great potential

As in many areas of the Midwest, the crops in north-central and northeast Nebraska show great potential, but they continue to run 10 to 14 days behind normal.

Josh Erwin is an agronomist with Syngenta-Garst in northern Nebraska.  He expects the 2009 harvest season to be similar to last year, with some wet corn again this year-and he offers this advice. “I would caution a little bit on watching your stalk quality this year with some of the gray leaf spot that came into the corn, particularly late,” he says.  “Fungicide applications went out in a lot of areas in northern Nebraska and that will help with standability.”

Erwin says the soybeans are finishing strong and he looks for some big yields on beans.

“The bean size, to me, looks bigger than it has in the past,” he says. “We’ve got these late rains in August and everybody says that August rains make a crop in beans-so I expect bean yields to be very good.”

Erwin made his comments at Solution Day 2009, held Friday at the Syngenta Learning Center north of York, Nebraska.

Josh Erwin (5 min MP3)

Senate Ag Committee examines biofuel’s future

The U.S. Senate Agriculture Committee gathers testimony Tuesday in Sioux City, Iowa, on the future of biofuels. In a news release, Committee Chairman Iowa Senator Tom Harkin says the hearing is to examine prospects for expanding production, the outlook for developing advanced biofuels, emerging biomass feedstock production, and sustainability issues.

The witness list includes Steve Corcoran, Chief Executive Officer, KL Energy Corporation, Rapid City, South Dakota; Bill Couser, Couser Cattle Company, Nevada, Iowa; Ed Olthoff, Cedar Falls Utilities, Cedar Falls, Iowa; Anna Rath, Director of Business Development, Ceres, Thousand Oaks, California; John Sheehan, Scientific Program Coordinator for Biofuels and the Global Environment, Institute on the Environment, University of Minnesota; Mark Stowers, Vice President for Research and Development, POET, Sioux Falls, South Dakota.

The Committee meets Tuesday from 1:00-3:30 p.m. at Western Iowa Tech Community College in Sioux City, Iowa.

Rough rice stocks up 1% on the year

According to the USDA, U.S. rough rice stocks on August 1 were up 1% on the year at 24.663 million hundredweight. Most of that was off farm at 23.787 million hundredweight, with on farm stocks accounting for the remaining 876,000 hundredweight. Milled rice stocks were pegged at 4.077 million hundredweight, all held off farm.

Growmark estimates $6.1 billion in sales

Growmark estimates sales for the fiscal year ending August 31 to be $6.1 billion, according to Jeff Solberg, senior vice president of finance for the cooperative. In addition, Growmark’s fiscal year net income is estimated at $75 million.

“The 2009 fiscal year has been challenging for many farmers as they attempted to plant a crop with extremely volatile pricing for fuel, fertilizer, and grain,” said Bill Davisson, Growmark chief executive officer, in a news release issued Friday. “Overall, I believe this has been a successful year on many fronts, and when looked at historically, this is still projected to be the fourth-highest income in our history.”

More than $62 million in patronage refunds will be returned to Growmark member cooperatives.

Energy Division
The Energy Division posted its gross income of $92 million. Investments continue to be made in division infrastructure with biodiesel blending capabilities at the Menard County, Ill. terminal and at Madison Service Company’s Roxana, Ill. bulk plant.

Growmark received more than $50 million in patronage from the National Cooperative Refinery Association. The cooperative owns nearly 19 percent of the refinery operation located in McPherson, Kan.

Agronomy/Seed Divisions
Growmark Seed Division sales will top $250 million, a 30 percent increase over last year. FS corn sales grew 5 percent this year, Davisson said.

A 20 percent sales increase is projected by the Crop Protection Division, with gross income estimated at $34 million, according to the release. Growmark recently reorganized field-level personnel to support crop specialists in creating and delivering whole-farm cropping plans through FS Green Plan Solutions. Plant food operations, on the other hand, resulted in a gross income loss, according to the release.

Davisson cited a worldwide economic downturn, which created significant demand destruction and oversupply of fertilizer, resulting in a huge drop in fertilizer prices after inventories at Growmark were in place for fall application. “Still, if you evaluate plant food results over 24 months instead of 12, it was the best period of internal income in our history,” said Davisson.

Facility Planning and Supply Division
The cooperative’s Facility Planning and Supply Division posted increases in sales and gross income for the fourth consecutive year. Contributing to this success was the construction of commercial grain storage facilities and programs with equipment manufacturers as FS member cooperatives invested in application equipment and rolling stock.

Grain Division
In addition to grain partnering efforts with local FS member cooperatives in Illinois and Ontario, Canada, the Growmark System is adding storage capacity and connecting farmers with more end-use markets through a partnership with Central States Enterprises.

Mid-Co Commodities had $1 million in income this year and will return $250,000 in cash patronage.

AgriVisor, LLC, a joint venture between GROWMARK and the Illinois Farm Bureau, continues to bring a broad spectrum of products and services which help producers develop and implement risk management strategies tailored to their operations.Growmark is a regional cooperative providing agriculture-related products and services and grain marketing in the Midwest.

Feedlot cattle end the week higher

Chicago Mercantile Exchange live cattle contracts settled 37 to 87 lower as higher cash values this week did not have a lasting effect. Traders squared market positions ahead of the weekend. Weakness in corn futures and the stock market pressured the back months. August was down 52 points at 84.65, and October was 87 lower at 86.70. Boxed beef cutout values were steady to weak on light demand and light to moderate offerings. Choice boxed beef ended .16 lower at 143.55, and select was .46 lower at 135.88.

Feeder cattle settled 75 to 110 points lower. The lack of buying activity may continue through the end of the month and even longer, which may erode the value of feeder cattle futures over the next several weeks, according to DTN’s Rick Kment. September finished 67 points lower at 98.15 and October was down 92 at 98.05.

At Missouri auctions this week feeder receipts totaled 23,472 head. Compared to last week, steer and heifer calves were steady to 2.00 lower, yearling cattle were 1.00 to 3.00 lower. Holsteins steady to 2.00 lower. Demand and supply was moderate. Feeder steers medium and large 1, 466 head weighing 800 to 841 lbs traded from 90.00 to 98.75. 391 heifers weighing 550 to 597 pounds brought 91.00 to 103.00 per hundredweight.

 Cattle slaughter was estimated at 654,000 head this week, 1,000 more than last week and 22,000 less than last year. The feedlot cattle trade is pretty well wrapped up for the week after an active trade in all regions yesterday.  Confirmed sales Thursday according to USDA totaled 165,832 head, with the week to date at 197,615. In the South cattle on a live basis trended 1.50 higher at 85.00. In the North live sales were mostly firm to 1.00 higher 83.00 to 84.50, and dressed sales were steady to 1.00 higher from 131.00 to 132.50. Some feedlots now report closeouts at this week’s prices. Look for bullish feedlot operators to price show lists higher next week.

Barrows and gilts at the terminals were lightly tested and trended steady from 25.00 to 30.00 on a live basis. Missouri direct base carcass meat price was steady from 39.00 to 43.00. Iowa/Minnesota hogs closed 1.10 higher at 46.75, the West was up 1.23 at 47.08, and the East was .15 higher at 44.17 on a carcass basis. The weekly kill was estimated at 2,196,000 head, 32,000 less than last week, and 36,000 under last year. Packers reportedly have sufficient inventory to start the week and are comfortable with their slaughter coverage and appear to have little need to push country trade higher. Cash bids are expected to start the week steady to weak.

Lean hogs settled mostly higher with just a couple of the 2010 contracts in the red. Futures made an impressive run on Friday morning but early gains pretty much evaporated by midday. Short covering was the main feature of Friday’s business. February was up 70 points at 76.50, and March was 25 higher at 76.25. Pork trading was slow to moderate, with light to moderate demand and offerings. Pork carcass cutout value closed .67 lower at 57.90.

Pork bellies ended unchanged to 70 higher. The tone to the market remains weak, but buyers have started to return to the market. February was 70 points higher at 76.50.

Closing Grain and Livestock Futures: August 28, 2009

September corn closed at $3.21, down 2 cents
September soybeans closed at $11.35 and 3/4, up 21 and 1/2 cents
September soybean meal closed at $387.00, up $8.00
September soybean oil closed at 36.07, down 14 points
September wheat closed at $4.67, down 8 cents
August live cattle closed at $84.65, down 52 cents
October lean hogs closed at $48.07, up 17 cents
October crude oil closed at $72.74, up 25 cents
October cotton closed at 56.30, up 76 points
September Class III milk closed at $12.37, down 8 cents
Dow Jones Industrial Average: 9544.20, down 36.45 points

Beck’s Hybrids

During Becknology Days, Beck’s Hybrids at Atlanta, Indiana showcase the products they have available to customers in a way that President Sonny Beck describes as a “grocery store concept.” Brownfield’s Dave Russell talked with Sonny about that, they talked about some of the research being done and Sonny discussed some recent announcements made by Beck’s Hybrids.

Audio: Sonny Beck, Pres. Beck’s Hybrids (6:50 MP3)

Beck’s Hybrids – Becknology Days

Beck’s Hybrids, Becknology Days got underway Thursday, August 27 at the company’s headquarters near Atlanta, Indiana. Sonny Beck says the event allows Beck’s Hybrids to showcase their products to customers in a way he describes as a grocery store concept.

“The grocery concept means you can walk in and see Monsanto traits on this isle, we’ll have Herculex traits on this isle, we’ll have AgriSure traits on another isle, and the beauty about this system is that we can then mix and match the germplasm that goes into those traits,” said Beck. “Then we showcase that, by putting it all out here and letting our customers see what kind they want to buy, then they are the ones making the choice on which traits they want.”

Customers of Beck’s Hybrids are also getting some good news during Becknology Days, President Sonny Beck tells Brownfield the growth that Beck’s has experienced is allowing the company to hold down pricing.

“We announced our pricing early and our pricing is at or below last year, and that fly’s in the face of what some of the nationals has announced as being higher prices for this year, Beck said.

AUDIO: Sonny Beck, Pres. Beck’s Hybrids (6:50 MP3)

Does Harkin Need HELP?

Commentary

The death of Sen. Edward M. Kennedy (D, MA), chair of the Senate Health, Education, Labor & Pensions Committee (HELP), holds potentially big implications for ag in DC.  And not because Kennedy ever played a big role in farm and ranch policy debates, but because his loss sets off an automatic cascade of committee chairmanship swaps, and one of those could lead to Sen. Tom Harkin (D, IA) giving up the Senate Ag Committee.Here’s how the scenario could play out.  Generally, when a major committee chairmanship opens up, the Senate Majority Leader looks to the next ranking member of the committee to fill the job.  In this case, the number two slot on HELP is Sen. Christopher Dodd (D, CT).  However, Dodd is chair of the Senate Banking Committee and is up to his eyeballs in prospective reregulation of financial markets, as well as oversight over all things economically stimulating.

Further, Dodd is up for reelection in 2010 — and his race is his most challenging since he came to the Senate nearly 30 years ago — in a state chock-a-block with insurance and brokerage companies and the executives thereof.  Would he walk away from the committee and the issues uppermost in his constituents minds?  Senate Majority Leader Harry Reid (D, NV), who will ultimately decide who takes over HELP, is known to want Dodd to remain at Banking lest the finance reregulation effort jump the rails prior to the 2010 elections.

But Dodd has been doing double duty for the last year, holding down the fort at the HELP Committee — with the assistance of Kennedy’s very able staff — essentially caretaking the chairmanship during Kennedy’s illness, and with health care reform challenging the committee and Dodd’s personal commitment to his long-time close friend from Massachusetts to promote the health care agenda, would he, could he turn the committee reins over now to a new leader?

If the answer is “no” to the first scenario and “yes” to the second, then next in line to take the helm of HELP is Harkin, a prospect ag lobbyists have been chewing on since word first came Kennedy was sick.

Would Harkin give up chair of the Ag Committee to take over HELP?  My question is, “Why not?” Harkin has two great loves:  The state of Iowa and its bread basket status and, from an issue/policy standpoint, public and private health, wellness and research issues.  He’s authored and/or championed many of the major health bills over the years, from the Americans with Disabilities Act, to dietary supplements to child nutrition.  The  2008 Farm Bill is behind him — and I’ll bet he remembers every frustrating minute of it – so what better time than now?

Some contend Iowa wouldn’t let Harkin give up the ag panel chair.  I contend Iowa is smarter than that.  Iowa wouldn’t lose a thing if Harkin moved to the HELP chair; in fact, it would actually stand to gain much.  First, Harkin wouldn’t give up his membership on the ag panel, remaining with Sen. Charles Grassley (R,IA) in protecting Iowa interests.  Second, he’d be in control of an arguably more powerful committee which wrestles with all things FDA and food safety and with labor issues, such as the Employee Free Choice Act, and so on.  From a production and processing standpoint, it would be a very good thing for farmers, ranchers and industry to have someone who has an intuitive understanding of production agriculure leading and guiding the debate among his more urban peers.

This is not to say we’d see an automatic rural tilt to the HELP Committee, nor would Harkin be any more easily swayed during policy debate than he is now. It’s to say we’d have an educated and sympathetic ear during these debates.  And to the extent they’d go with him to HELP, Harkin’s senior staff is among the best in the Senate.

So, if Harkin takes HELP, where does that leave the Ag Committee chair? Conventional wisdom would be to put Sen. Blanche Lincoln (D, AR) in the chair. Reid would get major points for doing so. He be recognizing a colleague from the South who by dint of brains and ability has earned the right to chair a major committee. Those on the committee who outrank her all have major committees to chair — Sen. Patrick Leahy (D, VT) chairs Judiciary (and was once chair of the ag panel); Sen. Kent Conrad (D, ND) chairs Budget, and Sen. Max Baucus (D, MT) chairs the powerful Finance Committee.  All have signaled no intent to surrender their current power bases.

Lincoln’s focus in past farm bills has been less broad than Harkin’s to say the least.  While Harkin argued conservation, nutrition and limiting farm payments, Lincoln championed traditional programs.  As one of the architects of the Southern ag bloc, a bipartisan group of senators from Georgia to Texas, she’s focused on maintaining farm programs because, as she’s eloquently stated probably a thousand times in committee and on the Senate floor, her  farmers are smaller and rely more heavily on farm programs than farmers in the Midwest.  This is probably her greatest weakness in a Senate less and less convinced farmers and ranchers need financial support to the extent they enjoy such generosity now.  But Lincoln is also a proven bipartisan player and one who can go national in her perspective and politics as easily as she plays to home state interests.

Lincoln has been a loyal lieutenant to Harkin during his tenure as chair, especially during the ugly 2008 Farm Bill battles, and she’d work well with him on issues of mutual interest to their respective committees. Lincoln is also a staunch ally of Sen. Saxby Chambliss (R, GA), the committee’s ranking member and former chair.  What might/does scare some midwestern and upper midwestern farm state senators is the notion of putting the ag committee in the control of the Deep South. To that I say, do the math.  There are three southern members on the committee: Lincoln, Chambliss and Sen. Thad Cochran (R, MS), who once chaired the committee himself.  The rest of the 21 members are from everywhere else.

It all comes down to timing.  If it’s all about getting a comprehensive health care reform bill to the President in 2009, then it’s status quo until the Senate returns in 2010.  There’s no need to change  horses in the middle of that stream. If it looks as if health care will become incremental legislation – some this year and more next year — and other issues look to need shepherding going into a volatile election year — including food safety and climate change bills — then now may be the perfect time to get the new teams in place.

If Harkin gets the opportunity to chair the HELP Committee and decides to take that job, I see a win-win for ag.  We get one of our own in charge of a major committee which increasingly wrestles with policy issues that affect all the links in the food chain, and his move up the senatorial ladder clears the way for the ascension of Lincoln, who deserves the chance to show herself in a leadership role.

Psyllid threatens California citrus

California agriculture officials are setting hundreds of traps in Orange County after an Asian citrus psyllid was found on a lemon tree at a home on Monday.

Citrus psyllids often carry citrus greening disease or HLB which ruins the taste of juice and eventually kills the tree. There is no known cure or prevention for the disease which has caused extensive damage to the citrus crop in Florida but has been kept out of California to-date. The psyllid discovered Monday was found to not be carrying the disease.

Colonies of the insect moved into the San Diego area from Mexico last year, so far they show no signs of the disease as well but officials fear a similar fate to what Florida experienced. The pest first showed up on a few backyard trees and suddenly the state was overrun with disease-carrying psyllids.