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Dealing with ruts and compaction

November 25, 2009 By Leave a Comment

For farmers in parts of the Midwest, not only has it been a frustrating harvest, it’s frustrating what they are leaving in some fields, ruts and soil compaction. The question is how will we deal with those ruts and compaction issues?

“We’re kind of hoping they wait until spring before they start addressing those ruts,” said Richard Nichols is Executive Director of the Association of Illinois Soil and Water Conservation Districts. “Some of the soils we think maybe the freezing and thawing will help moderate the cuts, where it doesn’t freeze we have some real concerns that we’re going to do some tillage in the spring and destroy some no-till land.”

And for those farmers with land enrolled in the Illinois Conservation and Climate Initiative program, which means a contract to maintain no-till land, Nichols says some tough decisions will need to be made.

“If they are in that program and they feel like they need to do some tillage they probably need to contact Delta Institute and talk to those folks, that’s who they’re contracts with,” Nichols said. “It is possible some changes could be made.”

AUDIO: Richard Nichols, IL SWCD (2:00 MP3)

Filed Under: Crops, Events/Organizations, News Tagged With: ,

Lincoln proposes disaster payment legislation

November 25, 2009 By Leave a Comment

Senate Ag Chairman Blanche Lincoln says she’s partnered with the highest ranking Republican on the Senate Appropriations Committee, Thad Cochran, to help farmers who’ve suffered extensive crop losses this year, the wettest in 115 years of record keeping. “And remember,” Lincoln said at the hearing, “That’s the committee that holds the money.” She says the pair is introducing legislation to provide additional direct payments to producers in counties where there’s a USDA declared disaster.

The 2008 Farm Bill created a permanent disaster program for farmers who have crop insurance called Supplemental Revenue Assistance Payments, or, the SURE program.

Iowa Senator Chuck Grassley says he’s not sure another program is needed, “And now some other members of Congress want more money? You want to make sure that you don’t circumvent why SURE was set up.”

Senator Lincoln made her comments in her home state of Arkansas on Monday – at her first Ag Committee field hearing as chairman. She says her top priority as chairman is putting the rural economy back on the right track.

Senator Blanche Lincoln (D-AR), Senate Ag Committee Chair, opening statement at field hearing

Filed Under: News, USDA/Government Tagged With: , , , ,

Oceania milk production below year-ago levels

November 25, 2009 By Leave a Comment

Dairy markets finished the holiday-shortened week on a high note. Cash cheese barrels held steady at $1.51 but blocks gained 2.5 cents to $1.65 on an unfilled bid. Class III futures saw some nice increases through 2010 with the February contract going over the $15.00 mark and July, August, September and August 2010 at $16.00 or better.

The futures got a shot-in-the-arm from down-under, Dairy Market News reports milk production in New Zealand and Australia has peaked-out at lower-than-expected levels. Unseasonably hot weather in recent weeks are the reason…milk production in Australia in September was 7.2 percent below last year and July through September output is 3.9 percent under year-ago levels. Reports are some manufacturers and handlers in Oceania are cancelling some commitments and are reluctant to enter more.

Meanwhile, milk production in the European Union was down 1.3 percent in September and reports are all member-nations are below production quota.

Cheese production is expected to pick up for the next few days in the U.S. with schools closed for Thanksgiving, demand for fluid milk declines and more will move into manufacturing. The latest Cold Storage Report from USDA says that as of the end of October there were 968.4 million pounds of cheese in storage. That is 2 percent below a month ago but 17 percent higher than a year ago. More than half of the inventory is American type cheese, 579.6 million pounds, down 3 percent from the end of September but up 7 percent compared to October of last year.

Filed Under: Dairy, News Tagged With: ,

Schnitkey wins IL Corn’s World of Corn Award

November 25, 2009 By Leave a Comment

Gary Schnitkey and Rob Elliott The winner of this year’s World of Corn Award from the Illinois Corn Growers Association is Dr. Gary Schnitkey with the University of Illinois.

ICGA says Schnitkey has been “instrumental in the group’s efforts to educate growers about their farm program options this year.” Schnitkey is a professor and farm management specialist in the university’s Department of Ag and Consumer Economics who focuses on farm management and risk management.

ICGA President Rob Elliott says Schnitkey was a “key resource” this year for producers on the new Average Crop Revenue Election (ACRE). Elliott says 22% of the total acres enrolled in ACRE nationwide were from Illinois.

Illinois Corn Growers Association

Filed Under: Crops, News Tagged With: , , ,

IL mycotoxin survey showing no problems

November 25, 2009 By Leave a Comment

Tom Jennings, Director of the Illinois Department of Agriculture says the state’s annual mycotoxin survey, so far, is not showing any major problems with this year’s corn crop.

“Now we start that down in Southern Illinois and we’ve done something over 300 samples, random samples and don’t find any mycotoxin contamination that would be over the FDA limits for animal agriculture so we are really pleased with that, but we will continue to monitor that as we move upstate,” said Jennings.

But there is one problem being felt in some areas, and the State Ag Director says that is the lack of an adequate supply of propane.

“That’s an issue of demand, we have peak demand for that right now, it’s late, and it’s a wet harvest, these elevators generally dry about 30 percent of the corn crop, some of them are drying 70 to 75 percent so the demand is off the charts for that product right now,” Jennings said.

But he added that one thing that does help the situation from becoming even more of an issue, and that is the fact that Illinois is home to several major propane hubs and regional terminals, something that other states don’t have.

AUDIO: Tom Jennings, Director, IL Dept. of Agriculture (2:20 MP3)

Filed Under: Crops, News Tagged With: , , ,

Hogs and cattle supported by cash and wholesale: November 25, 2009

November 25, 2009 By Leave a Comment

Chicago Mercantile Exchange live cattle futures were higher on the higher corn, higher Dow and recent higher boxed beef trend with December and February hitting buy stops. Also, cash business was solid with live sales just about unevenly steady and dressed business around $1 higher than last week. December was $.27 higher at $83.67 and February was up $.25 at $85.75.

Feeders were narrowly mixed with direction from corn and the live pit. Additionally, January’s at a discount to the cash index while March has a premium. January was up $.07 at $93.30 and March was down $.02 at $94.27.

At the major direct cattle markets, there was pretty much moderate activity trade at $83 Live in Kansas and $81.50 to $83 Live and $131 in Nebraska, along with light trade in Iowa at $131 Dressed. Trade may be wrapped for the week in the North and possibly even Kansas, but packer inquiry in Texas has been light. Boxed beef was higher on light to moderate demand and offerings with Choice up $1.11 at $141.80 and Select $.91 higher at $133.60. Wednesday’s cattle slaughter was estimated at 126,000 head, up 5,000 from last week and steady with last year.

Hogs were higher on the mostly steady to higher cash and Tuesday’s sharply higher cutout. The cutout continued the hot streak thanks to moderate to active trade at both the midday and the close. Contracts are at a premium to the cash index. December was up $.80 at $59.42 and February was $1.65 higher at $67.65.

Bellies were higher on continued solid pork demand and the lower dollar. February was $.30 higher at $86.97.

The Eastern Cornbelt was up $2.02 with a weighted average of $52.96, the Western Belt was $1.05 higher at $57.10 and Iowa/Southern Minnesota was up $.92 at $56.83. The weekly Iowa/Southern Minnesota average weight was 270.5 pounds, compared to 270.4 last week and 268.3 last year. Butcher hogs at the terminals were steady to $1 lower at $30 to $39 and the Missouri Direct base carcass meat price was steady to $2 higher at $48 to $51. The pork carcass cutout was $2.27 higher at $61.61 on moderate to active trade with moderate to good demand and light to moderate offerings. The estimated hog slaughter was 432,000 head, 6,000 less than a week ago but 7,000 more than a year ago.

Filed Under: Closing Futures & Livestock Briefs, Markets Tagged With: , , ,

Sorghum used for ethanol expected to grow

November 25, 2009 By Leave a Comment

The United Sorghum Checkoff Program wants grain sorghum to become a bigger factor in ethanol production.

A recent survey by the sorghum checkoff  program found that 29 percent of 2009 grain sorghum production will be used for ethanol production. The checkoff board has set a strategic goal of increasing that number to 50 percent by 2011. 

Officials say the survey shows that sorghum ethanol yields are comparable to corn—and in the past year, the price differential has benefitted the bottom line of ethanol plants using sorghum as a feedstock.

Filed Under: Crops, Events/Organizations, News Tagged With: ,

Analyst sees continued hog losses in 2010

November 25, 2009 By Leave a Comment

Hog producers could be facing a third straight year of losses in 2010—as much as ten dollars per head. 

That gloomy outlook comes from Purdue University extension economist Chris Hurt.  Meatingplace.com quotes Hurt as saying that hog prices will average about 46 to 47 dollars next year, with production costs expected to average around 50 dollars. 

Hurt says producers might consider locking in prices for next year given current hog futures prices.  He says the futures market might provide a way for some producers to at least get through 2010.  On the other hand, Hurt says current financial realities could mean the herd will decline, demand will improve and hog prices will be higher than the current forecast.

Filed Under: Events/Organizations, Livestock, Markets, News Tagged With: ,

A solid finish ahead of the holiday for corn, beans and wheat: November 25, 2009

November 25, 2009 By Leave a Comment

Soybeans were higher on fund buying and spillover from the outside markets. The dollar was lower while the Dow, crude oil and gold were higher with another new record high for gold. Demand remains very strong, with a lot of interest noted from commercials. It was an up and down day early thanks to profit taking and spread with corn and wheat, but that demand helped beans recover for a solid finish near the highs of the session. There was also some speculative end of the month selling prior to the bounce. Markets are closed Thursday and will close at Noon Friday. Bean meal was mostly lower on the monthly Census crush numbers and profit taking. Bean oil was higher on product spread adjustments, the Census numbers and the higher crude oil. USDA’s weekly export sales report is due out Friday at 7:30 AM Central. Soybeans are placed at 800,000 to 1.1 million tons, meal is seen at 150,000 to 250,000 tons and oil is pegged at 5,000 to 20,000 tons.

Corn was higher on fund buying and outside market direction. There was also some support from continued harvest delays in major production areas. Spreads against beans were an additional feature, with Dow Jones Newswires quoting one market participant as saying that the spread was “out of whack” after Tuesday. However, the supply is large and that did keep buying interest somewhat limited. Ethanol futures were higher. Weekly U.S. corn sales are expected to be between 400,000 and 775,000 tons.

The wheat complex was higher on short covering, fund buying and the lower dollar. When the dollar’s down, wheat tends to move up and vice versa. The dollar hit a new 2009 low against the Euro Wednesday. Still, the fundamentals are negative with a large available supply and poor demand for U.S. wheat. Iraq did buy 100,000 tons of U.S. hard red winter, but that was the only purchase of U.S. wheat. Egypt bought 300,000 tons from Russia and France while Jordan purchased 150,000 tons of wheat from Ukraine. European wheat was higher on talk of fresh demand ahead of Christmas and spillover from the outside markets; January London was up 1.1% and May London gained .4%. Weekly U.S. wheat sales are estimated at 300,000 to 550,000 tons.

Filed Under: Closing Futures & Livestock Briefs, Markets Tagged With: , , , ,

Traminette selected as Indiana’s Signature Wine

November 25, 2009 By Leave a Comment

The Indiana Wine Grape Council has announced that Traminette will be the state’s Signature Wine.

“Traminette is a grape that is very similar to the Gewürztraminer,” said Jeanette Merritt, Marketing Director for the Indiana Wine Grape Council. “For folks who like a Gewürztraminer, or a Riesling, or a Sauvignon Blanc this is something they will enjoy also, it tends to be a little more floral and fruity and you’re going to smell roses and peaches and pears, those good fruits we enjoy, but this time we put it in a glass.”

And Jeanette Merritt tells Brownfield that Traminette would go nicely with those holiday meals.

“If you are doing the traditional turkey, Traminette is a very good turkey wine,” Merritt said. “Seafood would be great, it you do a typical pork loin this is good white wine that will pair well with your pork, so it will go with a lot of things on your holiday table.”

There are currently 23 Indiana wineries producing Traminette.

AUDIO: Jeanette Merritt, Indiana Wine Grape Council (3:15 MP3)

Filed Under: Events/Organizations, News Tagged With: , ,
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