iowa farm bureau spokesman january 12, 2011
DESCRIPTION
Iowa Farm Bureau Spokesman January 12, 2011TRANSCRIPT
On the surface, 2011 would appear to be shaping up as a banner year for Iowa agriculture. Crop and livestock prices are strong,
exports are chugging along and domestic demand for meat and other farm products shows clear signs of recovery.
However, as always, there are many out-
standing issues likely to affect farmers in 2011 and beyond.
Some of this year’s big issues are likely to be ratification of the pending free trade agree-ments, a more aggressive posture toward farms by the Environmental Protection Agency, the future of the biofuels industry and a fierce bat-tle brewing for acres this spring. Then there’s
the annual concern about weather. That’s been heightened by tight crop supplies and the La Nina conditions, which in the past have raised Iowa’s potential for a hot, dry summer.
Please turn to page 4 of this week’s Spokesman for a deeper look at some of the issues that could have a big impact on farm-ers in 2011.
Iowa’s biodiesel plants are gearing up for significant pro-duction increases this year after limping through 2010 operating at only a fraction of capacity.
Renewal of the federal bio-diesel tax incentive and the newly enacted Renewable Fuels Standard (RFS2) that will require 800 million gallons of biodiesel to be used in 2011 are breathing new life into the industry, according to
Randy Olson, executive director of the Iowa Biodiesel Board.
Iowa biodiesel production dropped to 50 million gallons last year, down from 85 million gal-lons in 2009, as plants scaled back or idled production due to uncer-tainty surrounding the $1-per-gal-lon tax incentive.
“2010 was a challenging year with the uncertainty of the tax credit,” Olson said. “The exten-sion has provided real optimism. I have heard anecdotes of produc-
tion starting up. We anticipate we will be producing biodiesel at a pace far beyond what was pro-duced in 2010. No doubt, plants that were idle in 2010 will be producing in 2011.”
Restarting productionIowa has 15 plants with the
capacity to produce about 325 million gallons per year, but only seven are actively produc-ing, according to the National Biodiesel Board.
Determining which of the idled plants resume production will depend on the financial situation of each operation, Olson said.
“We know some are stronger than others,” he said. “Operating capital is a real concern for some plants that have been idle for 24 months or so. I think what we’ll see is plants participating on a case-by-case basis.”
Renewable Energy Group (REG) of Ames is planning to ramp up production at its Iowa
biodiesel plants in Newton and Ralston, according to Gary Haer, vice president of sales and mar-keting. REG also operates plants in Illinois and Texas.
“Our Iowa plants ran at a reduced rate in 2010,” Haer said. “As demand comes back, we’re going to come back at greater production levels.”
While the tax credit renewal will make biodiesel more cost
Iowans are seeing long-term increases in precipitation and temperature, a longer and warmer growing season, better conditions for the survival and spread of agricul-tural pests and the economic consequences of a changing climate, according to a report authored by researchers at Iowa State University, the University of Iowa and the University of Northern Iowa. Legislation approved in April 2009 asked the committee to study the effects of climate change on Iowa. The study was sent to Gov. Chet Culver and the Iowa General Assembly last week.
The report noted that “some changes, such as the increased frequency of precipitation extremes that lead to flooding, have seriously affected the state in a negative way. Others, such as more favorable summer growing conditions, have benefitted the state’s economy.” The full report is available at www.iowadnr.gov/
iccac/files/completereport.pdf.
An Iowa town has been recognized as 2010 Community of the Year by Biofuels Digest for the transformation of its economy through corn and cellulosic ethanol. Emmetsburg, located in north-central Iowa, is the site of Poet’s Project Liberty, a 20-million-gallon cellulosic ethanol demonstration. It is also home to advanced work by Poet Biomass in corn cob and agricultural residue harvest and logistics.
The Digest also recognized Iowa State University as Institutional Research Facility of the Year. ISU’s BioCentury Research Farm provides researchers with the opportunity to integrate biomass harvesting, transportation, storage and pro-cessing, as well as test plant breeding, genomics and cropping systems.
Renewable Energy Group of Ames was honored with the top “Commercial-Scale Technology of the Year” for its novel processing technology that uses a wide variety of hard-to-process, low-cost feedstocks such as animal fats and used cooking oil.
REPORT: CLIMATE CHANGE AFFECTING IOWA WEATHER, ECONOMYEMMETSBURG NAMED BIOFUELS COMMUNITY OF YEAR
P e r i o d i c a l s : T i m e va l u e d
J A N U A RY 1 2 , 2 0 1 1 | Vo l . 7 7, N o . 2 0 | w w w. i o wA fA R m b U R e A U . c o m
BIODIESEL PAGE 2
Iowa biodiesel industry looks forward to rebound in 2011
c o P y r i g h T 2 0 1 1
Case expands FB member benefitCase IH has expanded its rebate program for Farm Bureau members in Iowa to include its new line of Scout utility vehicles. sTory oN Page 2
Corn and soybean exports remain strong despite rising prices for both commodities since harvest. sTory oN Page 5
Higher prices don’t dampen crop exports
By TOM BLOCK
The agency that oversees crop insurance programs has proposed rebates for farmers who paid into the program but have had few claims.sTory oN Page 7
Crop insurance may offer rebatesAg faces range of issues in 2011
2 JANUARY 12, 2011 IowA fARm bUReAU spokesmAN
competitive with petroleum-based diesel, the federal RFS2 will boost demand by requiring usage of 800 million gallons of biodiesel in 2011, Olson said.
State policies are critical“One thing that remains uncer-
tain is where those gallons will be used,” he said. “That’s why it’s critical for states to develop poli-cies within their borders.”
For example, he said, Min-nesota requires all diesel fuel to include a 10 percent biodiesel blend. In Illinois, more than 90 percent of diesel fuel contains 10 to 11 percent biodiesel as a result of state tax incentives.
“We really see a great oppor-tunity for B10 fuel to be used throughout our state as well,” Olson said. An effort to man-date 5 percent biodiesel usage in Iowa failed last year, but there are other avenues for the Legislature to assist the industry, he noted.
Locally produced biodiesel benefits the economy by creating jobs and increasing tax revenues, Haer pointed out. “Our indus-try benefits many parts of the ag sector and provides economic benefits by creating green-collar jobs,” he said.
A 2009 study of biodiesel pro-duction in Iowa showed the indus-try supported the creation of more than 2,900 permanent jobs and added more than $470 million to the state’s gross domestic prod-uct (GDP), according to the Iowa Renewable Fuels Association.
National studies suggest bio-diesel has raised the price of soybeans by 25 cents per bushel through increased demand for soy-bean oil, which is the primary feedstock for producing biodiesel. Ongoing research is furthering the development of other feed-stocks, including animal fats, ined-ible corn oil and used cooking oil, reported Haer, who also serves as chairman of the National Biodiesel Board. Meanwhile, plant breeders are aiming to increase soybean yields as well as the oil content of soybeans.
“We’re as excited as we can be about the future of the industry.”
bIodIesel FROM PAGE 1
Iowa farm bureau federation (Ifbf) president Craig lang, right, met last week with Iowa Gov.-elect Terry brans-tad and lt. Gov-elect kim Reynolds at the branstad administration’s transition headquarters in Urbandale. dur-ing the meeting, lang reiterated Ifbf priorities for the 2011 legislative session. Those include stabilizing Iowa’s budget to foster sustainable growth and protect property taxpayers, protecting the agricultural productivity formula, reforming the state’s regulatory process to strengthen legislative oversight and control of the rule-making process, supporting efforts to move agricultural regulatory responsibilities to the Iowa department of Agriculture and land stewardship, securing additional funding for conservation programs and preventing added regulations on tile drainage. PHOTO/ JosepH l. mURpHY
Ifbf president meets with branstad Case IH adds utility vehicle FB member rebate
Economic webinar set for Jan. 28David Kohl, professor emeritus at Virginia Tech, will lead a dis-
cussion of global economic trends and farm management tips during a Farm Bureau sponsored webinar set for Friday, Jan. 28, at 1 p.m. The highlight of Kohl’s presentation is his “golden rules” for success-fully managing your farm, according to Ed Kordick, Iowa Farm Bureau Federation commodity services manager. For more information, go to www.iowafarmbureau.com.
Ernst wins Iowa Senate seatRepublican Joni Ernst of Red Oak won a special election last week
to replace Lt. Gov.-elect Kim Reynolds, winning 67 percent of the votes. Ernst, an Iraq war veteran and Montgomery County auditor, had been designated a Friend of Agriculture by the Iowa Farm Bureau Federation. She will represent Senate District 48, which covers Montgomery, Adams, Union, Clarke, Taylor, Ringgold and Decatur counties. The election means that there are 26 Democrats in the Iowa Senate and 23 Republicans. Another special election will be held Jan. 18 to replace Sen. Larry Noble of Ankeny, who resigned to take a post in the Branstad administration.
Case IH has expanded the rebate program for qualified Farm Bureau members in Iowa to include its new line of Scout util-ity vehicles. Farm Bureau mem-bers can now get a $300 rebate on the purchase of a new Case IH Scout utility vehicle. Farm Bureau members can also get a $300 rebate on the purchase of a new Farmall A or Compact tractor or a $500 rebate on the purchase of a new Farmall Utility tractor or Maxxum Series tractor.
The Case IH rebate forms are available from your local county Farm Bureau office or can be downloaded from the “Members Only” portal on the www.iowafarmbureau.com Web site. Claims must be postmarked within 90 days of purchase.
membeR beNefIT
CASE STUDY
MONSANTO COMMITTED TO HELP MEET DEMAND FOR HEALTHIER FOODS
VISIT YOUR SEED REP OR GENUITY.COM
Monsanto is working with farmers and processors to help meet the demand for healthier foods through new soybean products and infrastructure improvements.
In 2011, farmers will have access to expanded varieties of Monsanto’s Vistive® low-linolenic soybeans, which can reduce or eliminate trans fats in food products. Many of these varieties will be offered with the Genuity® Roundup Ready 2 Yield® trait to deliver higher yield opportunity.
Vistive® Soybeans offer farmers proven agronomics and increased revenue potential per acre. Oil processed from Vistive® Soybeans allows food companies to produce fried foods, baked goods, snack products and other processed foods with lower or zero trans fat. Monsanto’s pipeline of future, new technologies to support healthier diets is being built on the company’s best agronomic traits. New product concepts currently in research and development include:
- Omega-3 enhanced oils, which will offer a sustainable, economic source of heart-healthy Omega-3.
- Vistive® Gold Soybeans, which will provide a heart-healthy combination of higher monosaturated fats, lower saturated fats, zero trans fats and improved stability.
“Specialty soybean oils are good for consumers and the soybean industry,” says Lisa Flynn, Monsanto Soybean Traits Marketing Manager. “They provide better oil for healthier foods, while also helping to maintain a premium market for soybean oil which supports higher soybean prices and acres.”
Monsanto is also committed to build a strong infrastructure to help meet demand. This includes partnering with food companies to help source and formulate better seed solutions; collaborating with food
product innovators, scientists and suppliers to help establish a reliable supply chain; and working with grain processors to ensure the supply stream can furnish value-added oil to food companies.
For 2011, farmers can increase their profi tability by earning premiums of up to 60 cents per bushel with strong-performing Genuity® Roundup Ready 2 Yield® Vistive® Soybeans. Vistive® processors, including Bunge, Cargill, AGP and ZFS, Inc., are conveniently located near some of the highest concentration of soybean acres across the Midwest.
CHALLENGE
SOLUTIONModifi ed soybean oil products, like Vistive® and other specialty oils in Monsanto’s new product pipeline, provide the opportunity to shift demand back to soybeans.
When bans on hydrogenated soybean oil were enacted, many food applications substituted a variety of low-cost blends. The result was reduced demand for soybean oil, which can lower commodity prices and/or demand for soybean acreage.
The product concept information provided herein is for educational and technical purposes only. It is not promotion of or the offer of sale of any product. These projects are part of Monsanto’s research pipeline and have not been commercialized. Commercialization will be dependent on many factors including successful conclusion of the regulatory process.
Monsanto Company is a member of Excellence Through Stewardship® (ETS). Monsanto products are commercialized in accordance with ETS Product Launch Stewardship Guidance, and in compliance with Monsanto’s Policy for Commercialization of Biotechnology-Derived Plant Products in Commodity Crops. This product has been approved for import into key export markets with functioning regulatory systems. Any crop or material produced from this product can only be exported to, or used, processed or sold in countries where all necessary regulatory approvals have been granted. It is a violation of national and international law to move material containing biotech traits across boundaries into nations where import is not permitted. Growers should talk to their grain handler or product purchaser to confi rm their buying position for this product. Excellence Through Stewardship® is a registered trademark of Biotechnology Industry Organization.
ALWAYS READ AND FOLLOW PESTICIDE LABEL DIRECTIONS. Roundup Ready® crops contain genes that confer tolerance to glyphosate, the active ingredient in Roundup® brand agricultural herbicides. Roundup® brand agricultural herbicides will kill crops that are not tolerant to glyphosate. Genuity®, Roundup®, Roundup Ready®, Roundup Ready 2 Yield®, and Vistive and Design® are registered trademarks of Monsanto Technology LLC. All other trademarks are the property of their respective owners. ©2010 Monsanto Company.
Back in Britain, the natives are growing restless about the failed “official” long-term weather fore-casts.
Mistaken assumptionsJohn Walsh of The Independent
wrote recently, “Some climatolo-gists hint that the Office’s problem is political. Its computer habitu-ally feeds in government-backed assumptions about climate change that aren’t borne out by the facts. To the Met Office, the weather’s always warmer than it really is.”
To cap it all off, UK forecaster Piers Corbyn, noted for his skep-ticism on man-made warming, has become nationally famous for being right while the Met Office was wrong.
For example, Corbyn predict-ed in November that this winter would be Britain’s coldest in 100 years.
He even predicted the snowy Christmas.
How does he do it: apparently by looking at solar patterns, the number of cosmic rays hitting the earth, the Moon’s impact on streaming parti-cles and jet streams. Corbyn’s sub-scription fore casts are becoming a staple with businesses that “need to know.”
Avery, a senior fellow for the Hudson Institute in Washington, D.C., is an environmental econo-mist.
As we ring in 2011, the song “Feeling Good” by jazz singer and songwriter Nina Simone comes to mind. Like the song’s lyrics, it is a new dawn, a new day, and many in agriculture have good prospects for feeling good.
Economic indicators show that U.S. agriculture is poised for prog-ress this year. While some produc-ers are certainly facing individual challenges due to weather or other factors, the numbers for the sector as a whole look strong. Last year, farmers saw a record $92.5 billion net cash farm income, and prices for many commodities soared.
It may be time for folks in agriculture to buckle on their chin straps once more for the food-versus-fuel debate. Iowa, as the leader in corn and corn-based eth-anol production, could once again be in the center of the action.
Ethanol and higher corn prices are tough on livestock farmers. But there has been a wholesale debunking of the whole pre mise that consumer food prices are markedly impacted when corn is used to produce ethanol. Study after study has shown that corn-based ethanol barely registered as a factor in the global food price jumps a few years back.
For example, a recently re -leased study by the World Bank showed that volatile oil prices, adverse weather and price specu-lation, not biofuels, were behind the food price spike a few years back. That’s quite a turnaround for the World Bank, which in the past has been a major force trying to link higher world food prices to the use of corn to make ethanol.
Other studies have reached the same conclusion that ethanol pro-duction had little, or no, impact.
Other evidence showed that some companies, such as pack-age food manufacturers, may have had something to do with the price increases as they used ethanol as a scapegoat to raise prices and pad their bottom lines.
Food prices stirring againNow all of the factors that the
World Bank and others cited as reasons for the food price hikes a few years ago—higher oil prices, weather problems and price spec-ulation—are with us again. And there are clear signals that food prices could be pushing up again, both domestically and around the world.
That could encourage etha-nol opponents to try to fire up the food-versus-fuel debate once again, even if studies shows it’s not grounded in reality. It’s enough to make corn growers, like North Dakota’s Bart Schott, president of the National Corn Growers, want to pull their hair out.
Schott, quoted on the Ag Profession Web site, said: “It’s an outrage to hear the same claims time after time, blaming corn growers and ethanol producers for the rise in food prices. Our grow-ers are not only producing more corn and meeting all needs, but we are also experiencing some of the same negative factors on their farms, such as higher energy costs, that are driving up food prices around the world.”
I couldn’t agree more.
Editorial Iowa Farm Bureau SpokeSman January 12, 2011 3
eDITorIaL STaFF[515] 225-5413 or [email protected]
editor DIRCK STEIMEL
news Coordinator TOM BLOCK
Features writer TERESa BjORK
ag Commodities writerHEaTHER LILIENTHaL
photographer/writer jOSEpH L. MuRpHy
To place a free exchange ad, contact your coun-ty office for information. The Iowa Farm Bureau Spokesman (ISSN 0021-051X) is published weekly by the Iowa Farm Bureau, 5400 university avenue, West Des Moines, Ia 50266. Subscription price of $2 per year for mailing in the continental uSa included in the dues of Farm Bureau members in Iowa. additional subscription fee required for mailing outside the con-tinental uSa. periodical postage paid at Iowa Falls, Iowa. Members please send change of address to your county Farm Bureau office. postmaster send address changes (pOD FORM 3579) to Iowa Farm Bureau Spokesman, p.O. Box 670, Iowa Falls, Iowa 50126. Letters to the editor and statewide news articles should be sent to Editor, Iowa Farm Bureau Spokesman, 5400 university avenue, West Des Moines, Iowa 50266. Reprinting of Spokesman articles and photographs is not allowed without permission.
aDVerTISInG[800] 442-FaRM
SpokesmanIowa Farm Bureau Federation: Craig Lang, president; Craig Hill, Vice president; Denny presnall, Secretary-Treasurer and Executive Director; edward G. parker, General Counsel.
Board of Directors: District 1 - Carlton kjos, Decorah. District 2 - Charlie norris, Mason City. District 3 - phil Sundblad, albert City. District 4 - Doug Gronau, Vail. District 5 - morey Hill, Madrid.District 6 - Joe Heinrich, Maquoketa.District 7 - andrew Hora, Riverside. District 8 - Calvin rozenboom, Oskaloosa. District 9 - Jim mcknight, afton.
By DIrCk STeImeL
2011 could bring another debate on food vs. fuel
By TraCy TayLor GronDIne
agriculture ringing in 2011 on a positive note
Amid cold winters around the world, climate change questions heat up
By DennIS aVery
While no one knows just what’s going to happen this year, one has to think farmers should see reasonable returns.
With the new 112th Congress, agriculture will also have new opportunities. With a likely con-gressional shift toward small business concerns, issues such as tax and regulatory reform could find traction. The new Congress should also be friendlier on the trade front and will hopefully pass the three stalled bilateral trade agreements.
There will likely also be more congressional activity having to do with adding some common sense to environmental regulations.
Working togetherAlso, for the first time ever,
major organizations in the agri-culture sector have joined together to work on a long-term effort to engage on food issues. Coupled with a new spirit of activism among individual farmers and ranchers, today’s agriculture may be more prepared than ever to communicate and interact with the companies who buy and the people who ultimately consume farm products.
Alas, with opportunities come challenges. The cynics will con-tinue to try to disparage U.S. agri-culture to consumers. And let’s not forget there’s a farm bill to be
written by a new agriculture com-mittee that will include new mem-bers unfamiliar with farm policy. And there is the new pressure that all Americans will feel related to righting our nation’s economic ship.
But the positives outweigh the challenges, and farmers are worth their salt when it comes to rising up to meet obstacles.
So as we continue to ring in 2011, the tune that comes to mind is more jazz than blues. American agriculture is facing a year of noteworthy opportunity.
Grondine is director of media relations for American Farm Bureau Federation.
As Britain suffers through its third straight harsh wint-er, a British watch-
dog group is calling for an inquiry into the failed recent long-range weather forecasts of the British Meteorological Office.
The Met Office has long been one of the leading promot-ers of man-made warming fears and therefore has tended to see warming around every corner. Dr. Benny Peiser of the Global Warming Policy Foundation says, “The current winter fiasco is no longer a joke, as the economic damage to the British economy as a result of the country’s ill-preparedness . . . could reach $15 billion.”
The Met Office informed the government this summer that there was only a small chance of a severe winter in 2010-2011, espe-cially in the midst of a long global warming trend. Now, however, thousands of weary travelers have been stranded in European air-ports, while highway crews have lacked the sand and salt to keep the roads safe.
Back from an Ice AgeMeanwhile, Dr. Syun-Ichi
Aka sofu of the University of Alaska has published a paper in Natural Science saying that since
1850 the earth has been recover-ing from the Little Ice Age—and that this natural recovery is still continuing at about 0.5 degree per century. Ice cores and sea-bed sediments show this moder-ate, natural 1,500-year cycle has been occurring for the last million years.
The modern warming is likely to be about as warm eventually as the Medieval warming that blessed
the earth with sunny growing sea-sons from 950 to 1300.
At the same time, however, Dr. Akasofu has identified a 50 to 60 year sub-cycle driven by Pacific Ocean temperatures, which shift-ed to cool in 1940, to warm in 1976, and back to cool again as of 2000. He is predicting another 20 years of modest cooling for earth before the longer warming trend reasserts itself.
4 JANUARY 12, 2011 IOWA FARM BUREAU SPOKESMAN
La Nina ups drought risk for U.S. farmers
Fierce acreage battle setting up this spring
There’s a fierce battle brew-ing this year that will play out on the fields of Iowa and other farm states around the country. And it’s not the annual fight against yield-robbing weeds or insects.
Instead, it’s a battle for acres. Iowa farmers this year are faced
with tough choices on whether to plant corn or soybeans, accord-ing to Chad Hart, Iowa State Extension grain market econo-mist. “It’s really shaping up to be quite a wrestling match,” he said.
Market prices for both corn and soybeans have escalated since mid-2010, signals that the markets want more acres of both crops in 2011, Hart said. However, there may not be enough acres to go around this spring because prices of other big crops, wheat and cot-ton, are also high.
The high prices will bring some idled acres back into pro-duction this spring, Hart said. He estimates that total to be about 6 million acres nationwide. But, he added, “right now it’s hard to see
what will go on those acres.”In prior years, economists
noted, high soybean prices prompt ed farmers in the South to plant soybeans instead of cotton. But that might not happen this year because of cotton prices that are at their highest levels since the Civil War, they said.
High corn prices traditionally attract farmers in the Dakotas to plant corn instead of spring wheat, Hart said. But spring wheat prices have actually risen more sharply than corn or soybean prices, he said.
Another factor in play for many Iowa farmers is the early 2010 harvest and open fall, Hart said. That provided an opportunity for farmers to do fall field work and apply fertilizer. “If you’ve already got the fertilizer down, you are going to plant corn,” Hart said.
Some analysts have speculated that rising prices for nitrogen fer-tilizer may prompt some farmers to switch to soybeans. But Hart is not so sure. Fertilizer prices are rising, “but I don’t think they are scaring people from planting corn yet,” he said.
The La Nina weather sys-tem that brought dry weather to Iowa during last fall’s harvest is expected to persist into this spring, increasing the chance of drier and warmer weather in key United States crop-growing regions, the U.S. Climate Prediction Center said last week.
Just how big of a risk factor La Nina presents to 2011 crops depends on the duration and sever-ity of the event, according to ag meteorologists.
“We have seen quite a few com-ments from the Australia weather bureau that point to this La Nina having some similarities to the 1988 La Nina, which basically con-tinued through 1989,” said Bryce Anderson, DTN ag meteorologist.
The current La Nina is one of the strongest in the past 60 years and also has similarities to 1973-74, points out Iowa State University climatologist Elwynn Taylor. The Midwest had a poor corn season due to dryness in the summer of 1974, he noted.
“The similarity to date is enough to get attention,” he said.
La Nina’s impacts are already being felt by farmers around the globe, leading to the worst flood-ing in Australia in the past 50 years and sparking drought concerns in Brazil and Argentina, Taylor added.
The Climate Prediction Center (CPC) said there remains consid-erable uncertainty as to whether La Nina will last into summer. If the cycle continues through the spring months, farmers in the Corn Belt can expect to have a favorable planting season with warm, dry weather, Taylor said.
“If it goes on longer, then things aren’t so ideal,” Taylor said. “Spring is still the same, but if it continues into the summer, the heat of the summer gets here early and we tend to be on the dry side of usual, particularly in the west-ern portion of the Corn Belt.”
Farmers to feel more EPA pressure in 2011
The day-to-day operations of Iowa crop and livestock farms will continue to be heavily impacted by federal and state environmen-tal regulations in 2011, especially stricter interpretations of federal standards on water and air quality, according to Iowa Farm Bureau Federation (IFBF) environmental experts.
The federal Environmental Protection Agency (EPA) is likely to continue its actions against Iowa livestock feeders under the Clean Water Act, said Chris Gruenhagen, IFBF govern-ment relations counsel. “EPA has become very active in the area of storm water runoff from smaller livestock farms, and we expect that to continue,” she said.
Farmers should work to evalu-ate their risk of storm water runoff, including through road ditches or feed storage areas, and address those risks before EPA does a site investigation, Gruenhagen said.
In addition, the Iowa Depart-ment of Natural Resources (DNR) is enforcing new restrictions for the application of liquid manure on frozen or snow-covered ground,
Biofuels see hope for 2011, but sense changes coming
Extension of tax credits for ethanol and biodiesel through the end of this year has lifted the uncertainty that clouded the out-look for ethanol and biodiesel for much of 2010.
However, the short-term nature of the extensions, passed in late 2010, sets the stage for a wide-ranging debate about public poli-cies to encourage American bio-fuels, said Bob Dinneen, president and CEO of the Renewable Fuels Association.
“Now that we need not worry about our short-term survival, the American biofuels industry can take the long view and craft a comprehensive proposal that reflects fiscal realities as well as
our nation’s energy needs,” he said.
While he notes that subsidies for oil and gas have lasted much longer than those for ethanol, he acknowledges changes are in the works with a budget-minded Congress looking to get the fed-eral deficit under control.
“The biofuels industry recog-nizes that we are not exempt from belt-tightening,” he said. “We need to develop a 21st century tax policy for a 21st century industry.”
Proposals emerged last year to redirect federal spending on etha-nol to stimulate greater produc-tion of flexible fuel vehicles and infrastructure improvements, such as a pipeline to East Coast markets and installation of gas pumps that distribute higher ethanol blends.
Push on to ratify trade agreements
U.S. exports of meat, crops and other agricultural products posted a very strong year in 2010, and prospects are good for 2011. But agricultural exports, and farm-
Gruenhagen said. It’s critical that farmers are familiar with the new regulations and understand if or when emergency applications are allowed, she said.
The EPA’s actions on the Clean Water Act could also affect crop farmers in 2011, according to Rick Robinson, IFBF environmental policy advisor. “The agency has made addressing nutrient runoff a top priority,” he said.
An EPA task force has recom-mended that all states adopt a nutri-ent-reduction strategy to reduce nitrogen and phosphorus in surface water and institute timelines for progress and control programs if plans fail to achieve planned reduc-tions, Robinson noted.
Chesapeake Bay exampleA clear example of that ap -
proach was the EPA’s recent rec-ommendations for strict, manda-tory regulation on nutrient runoff in the Chesapeake Bay watershed, he said. “It’s very important for the agricultural community to be active and part of the decision-making process as these issues are debated,” he said.
Air quality regulations are also likely to affect farmers in 2011, Gruenhagen said. The state is faced with preparing a plan to ensure it can meet increasingly stringent federal air quality stan-dards. The EPA has also released emission factors for airborne pol-lutants from livestock farms, she said.
BY TOM BLOCK
BY TOM BLOCK
BY DIRCK STEIMEL
BY DIRCK STEIMEL
BY DIRCK STEIMEL
ers’ incomes, could grow even strong er in 2011 and beyond if the United States ratifies the free trade agreements (FTA) it has negoti-ated with South Korea, Columbia and Panama. The ratification of those agreements will be a pri-mary focus in 2011, according to Chris Garza, trade specialist with the American Farm Bureau Federation (AFBF).
The key pending FTA is the one with South Korea, Garza said. Obama administration trade nego-tiators recently hammered out an agreement after working through objections from American car makers, he said.
“Now it will be up to the admin-istration to get it through,” Garza said about the South Korean FTA.
Increasing trade is also a prior-ity for the new Republican majori-ty in the House of Representatives, and agriculture exports are a big part of that emphasis, Garza noted. The new speaker of the house, Ohio Congressman John Boehner, has said he wants to ratify all three FTAs—South Korea as well as Columbia and Panama—this year, Garza said.
Making the Right ChoicesSponsored by Becker Underwood
BeckerUnderwood.com1.800.892.2013
In a recent survey of U.S. soybean growers, 50 percent of those responding said they expect a return on investment of 3 to 1 or greater when applying an inoculant or growth enhancer to their soybean seed. At today’s prices, just a 2-bushel- per-acre response from using VAULT® HP can mean a return of 5 to 1 or greater.
“It takes less than half a bushel to pay for all three components in VAULT HP,” says Kent Ulwelling, A&K Feed and Grain in Lime Springs, Iowa. “With today’s genetics, growers want to stack every card in the deck in their favor. I think that makes the use of VAULT HP a pretty easy decision.”
The latest BioStacked® technology and the new on-seed survival rating of 125 days make VAULT HP the right choice for your soybean management strategy for 2011.
EquiTrust Mutual FundsEQUITRUST SERIES FUND, INC. - Class A Shares
PORTFOLIO 12/31 01/03 01/04 01/05 01/06High Grade Bond 10.68 10.66 10.66 10.60 10.63Strategic Yield 09.37 09.35 09.35 09.29 09.35 Managed 14.90 15.00 14.95 14.96 14.92 Blue Chip 39.03 39.38 39.49 39.63 39.60 Value Growth 14.60 14.75 14.68 14.74 14.69
EQUITRUST SERIES FUND, INC. - Class B Shares
PORTFOLIO High Grade Bond 10.67 10.65 10.66 10.59 10.62 Strategic Yield 09.37 09.35 09.34 09.29 09.35 Managed 14.87 14.98 14.92 14.94 14.89 Blue Chip 38.92 39.27 39.38 39.51 39.48 Value Growth 14.58 14.72 14.66 14.72 14.66 Securities, products and services offered through EquiTrust Marketing Services, LLC, 5400 University Avenue, West Des Moines, Iowa 50266, 1-877-860-2904.
Commodity traders are scanning the global news feverishly as 2011 begins, looking
for signs of a slowdown in U.S. crop exports.
M a ny f e a r that sharp gains in crop prices during the last half of 2010 will make U.S. corn and soybeans too expensive on the world markets. Others w o r r y t h a t moves to control inflation in fast-growing econo-mies, particularly China, will put the brakes on imports.
But Chad Hart, Iowa State University Extension grain market economist, said he’s still feeling “pretty good” about the state of the crop export markets in 2011. “Like always, there are some storm clouds on the horizon, but overall I think things look pretty
IOWA FARM BUREAU SPOKESMAN JANUARY 12, 2011 5
HART
Hot markets have not cooled U.S. crop exports
Greetings. I’m writing to you from Illinois. But if I were in Brazil, I would be dodging rain-drops—rains have finally arrived in earnest at all three of our farms.
I n s o u t h -ern Goias, our 2,200 acres of soybeans are getting almost too much rain, a n d w e a r e having a tough time keeping up with our ap -pl icat ions of herbicides and fungicides. Surprisingly, given the hot and soggy conditions, we haven’t had a significant outbreak of rust yet (knock on wood), and the crop is advancing rapidly toward what could be a good finish.
The first planted beans, which have a maturity of around 110 days, should be ready for har-vest by the last week of February.
The 1,300 acres of soybeans at our second rental farm, located in central Tocantins, is getting enough rainfall now, but we did suffer through some dry periods during planting.
The dry soils at planting slowed our germination and infected some of our seedlings with a fungus, and now we are fighting a fungal disease (not rust) on a portion of the area. We are hopeful that the already planned applications of fungicide plus the top-dress of potassium will diminish the disease’s effects on our plants.
At our farms near Araguacu, the rains were even spottier—we went 14 days without rain during planting. Planting took place over a six-week period, so we have fields starting to flower while we wait on others to germinate. Now the rains are coming—we’ve had nine consecutive days of rain totaling 8 inches.
The Jan. 6 report from Conab, Brazil’s agricultural ministry, estimated the country’s planted soybean area up by 2.6 percent. But the agency held production close to last year’s 68.7 million metric tons due to lower yields.
Still, reports say that rains remain spotty in Mato Grosso, Brazil’s top production state, so the jury’s still out on this year’s soybean crop in Brazil.
Corzine is general manager of South American Soy.
BY DIRCK STEIMEL
strong,” he said.U.S. corn exports have slowed
some as prices have risen, and that has disappointed some grain traders, Hart acknowledged. But overseas corn sales are still run-ning ahead of last year. They are benefiting from gains in some traditional markets, such as Japan, as well as sales to non-traditional markets, like Egypt, which began buying U.S. corn after Russia cut off wheat sales, he said.
Soybean exports continue to pile up gains this year thanks to continued buying by China, Hart said. “In soybeans, it’s all about China these days.”
There has been concern that soybean imports may be adversely affected by the Chinese govern-
ment’s efforts to raise interest rates and control inflation. But, to date, imports have continued to chug along, Hart said.
There also have been significant gains in soybean sales to countries such as Mexico and Indonesia. However, Hart noted, those sales continue to be dwarfed by mount-ing soybean sales to China.
Pork exports strongU.S. pork exports overcame
market obstacles and are on track to put in a strong year, accord-ing to the U.S. Meat Export Federation (USMEF).
For the first 10 months of 2010, the value of American exports of pork and pork variety meats was close to $4 billion. That was up
9 percent from the same period of 2009.
Those gains were remarkable because of the disruptions in sales to China and Russia, according to Philip Seng, USMEF president. In addition, he said, U.S. pork sales had to overcome extremely com-petitive pricing by poultry exports in the world markets.
Pork performed particularly well in price-sensitive markets, such as Mexico, Central and South America and the Philippines, Seng said.
The pace of pork sales in 2010 is only a few percentage points below the value in 2008, when sales finished the year at a record $4.9 billion.
Ag trimming trade deficitU.S. Agriculture Secretary
Tom Vilsack noted recently that strong U.S. agricultural exports are adding jobs and trimming the country’s trade deficit.
Speaking on National Public Radio, the former Iowa governor said: “We often talk about in the economy about a trade deficit with other countries but in agriculture,
the United States of America has a trade surplus. We anticipate and expect that it’ll probably be in the neighborhood of $41 billion more agricultural products that we sell to the rest of world than we purchase from the rest of the world. And each billion dollars of agricultural sales generates some-where between 8,000 and 9,000 jobs, so it’s not only helping farm income, but it’s also increasing employment opportunities.”
BrazilUpdate
BY PHIL CORZINE
CORZINE
Weather does a switch from dry to wet
VAULT® HP and Integral® are registered trademarks of Becker Underwood, Inc. ©2010 Becker Underwood, Inc.
Apply VAULT® HP prior to planting,see the difference at harvest
High-Performance Yield Potential
Bigger soybean yields start with active nitrogen-fixing root nodules. Maximize the potential for those nodules by asking your seed dealer or treater to apply VAULT® HP to your soybeans prior to planting. You’ll see faster emergence, more vigorous root structure and healthier plants with more pod-making yield potential.
The combination of a patented performance enhancer, longer on-seed high-count rhizobia and Integral® biofungicide for extended disease protection make VAULT HP the right choice for every soybean acre.
BeckerUnderwood.com1.800.892.2013
®
See THeSee THeSee TH Differencee DifferenceeThat Makes A Difference
Ask your seed dealer or treater for VAULT HP or call 1.800.892.2013 for the treater nearest you.
Rising input prices, par ticularly for fertilizer, are just one of five major concerns
for livestock producers this year, according to analysts Steve Meyer and Len Steiner, who write the Daily Livestock report for the CME Group.
Fertilizer prices: As corn needs the most fertilizer, this will be a key factor in this spring’s battle for acres and the resulting impact on grain markets.
Trade issues: The analysts warned Russia could throw up a few more roadblocks to imports to give its domestic industries a chance to develop more quickly.
Quoting Iowa State University professor Dermot Hayes, the analysts predicted China’s pork imports may need to grow and stated the United States is uniquely positioned to supply that product.
Weather: The analysts warned the current tight grain supply and demand situation leaves U.S. agriculture vulnerable to weather at a time when the country is historically overdue for a drought.
Global politics: With tense
situations in the Korean peninsula and the Middle East and oil prices at $90plus, the analysts noted that a disruption of supplies would pose a great risk to the U.S. economic recovery.
Rules of the game: Meyer and Steiner said there is uncertainty in the livestock and poultry sectors regarding the outcome of the GIPSA rulemaking process and whether the final rule will be much different from the proposed rule.
Global price concernsGlobal food prices hit a record
high last month, outstripping the levels that sparked riots in several countries in 2008, and key grains
6 january 12, 2011 Iowa farm bureau spokesman
January 13.33 13.22February 14.15 13.72March 14.43 14.06 April 15.02 14.55
May 15.29 14.73 June 15.62 14.98July 15.99 15.49August 15.94 15.56
CME Class III Milk Futures
Spot Prices Milk PricesBlock Cheese $1.3650 Dec. Class III $13.83Barrel Cheese $1.3425 Dec. Class IV $15.03 Butter $1.6700 NFDM Extra Grade $1.3400NFDM Grade A $1.3300
Contract Settle Last Week Contract Settle Last Week
Closing Prices Jan. 7, 2011
could rise further, the United Nations’ food agency said.
Rising food prices could set back the recovery from the financial crisis by eroding consumers’ disposable budgets in the fastgrowing emerging economies that are leading the revival, the agency said.
USMEF names leadersThe U.S. Meat Export Fed
er ation (USMEF) announced its executive committee last week, naming Keith Miller of the Kansas Farm Bureau as chairman. Iowa Farm Bureau Federation District 8 Director Cal Rozenboom also will continue to serve on the committee.
German meat refusedIn the most recent development
in the evolving dioxincontaminated feed situation in Europe, South Korea has effectively halted imports of German pork and poultry products after high levels of dioxin were discovered.
In 2010, South Korea imported 6,266 tons of pork and other meat products from Germany.
Cotton industry optimisticThe U.S. cotton industry held
its annual conference last week after a record year when prices scaled levels last seen when
Input prices lead concerns for livestock farmers
Abraham Lincoln was president.Many are optimistic that high
prices will persist into 2011, but a lot will depend on what China, the world’s biggest fiber consumer, will do after drawing down its state reserves.
High hog pricesHog and pork prices are expect
ed to hit record highs in 2011, due to smaller percapita U.S. supplies, much stronger demand driven by recovering U.S. and world economies and the infla
tionary policy of the U.S. Federal Reserve, according to Purdue University Extension Economist Chris Hurt.
Hurt predicted live hog prices in 2011 will exceed $60 per live hundredweight, or more than $80 on a lean basis.
These record prices will be overshadowed by record costs, warned Hurt. He put estimated costs for 2011 at $60.50 per hundredweight, based on average corn prices of $5.75 per bushel and soybean meal at $363 per ton.
This week the chart illustrates the march corn futures and average corn price at Iowa elevators since oct. 1. one observation is the price strength since oc-tober, which is an unusual event. will the price appreciate enough to pay for the costs of cash ownership for stored bushels? also, the space between the lines (basis) has followed the normal seasonal pattern of narrowing (basis stronger). In early to mid-october, this average Iowa price was 70 cents un-der march futures. recently, basis had narrowed to 35 to 40 cents under. for continued ownership, the cash market (some combination of futures price and basis) must continue to go higher daily to exceed bushel ownership costs.
Rock ValleyJan. 6
Iowa Hay Auctions
Alfalfa Large square Good 85.00- 107.50 Large round Good 90.00- 107.50 Fair 75.00- 80.00 Mixed Large round Premium 110.00 Good 82.50- 95.00 Fair 67.50- 72.50 Grass Large square Good 80.00- 92.50 Large round Good 75.00- 92.50 Fair 60.00- 75.00
Perry*Jan. 1
DyersvilleJan. 5
Ft. AtkinsonJan. 5
Alfalfa Small square Premium 6.00-7.25 Good 5.00-5.60 Fair 2.00-2.50 Large round 2nd cut 58.00 1st cut 50.00 Large square 3rd cut 70.00Grass Small square Premium 3.25-4.00 Good 2.75-3.00 Fair 1.85-2.10 Large round Good 54.00 Fair 40.00Mixed Large square Good 60.00
Hay Large square Supreme 201.00- 212.50 Premium 160.00- 185.00 Good 115.00- 155.00 Fair 90.00- 110.00 Large round Good 90.00- 130.00 Fair 60.00- 100.00 Mixed Large square Good 110.00- 185.00 Large round Good 90.00- 115.00
Hay Small square 1st crop 95.00- 140.00 2nd crop 125.00- 165.00 3rd crop 170.00 Large square 1st crop 82.50- 127.50 2nd crop 75.00- 160.00 3rd crop 95.00- 150.00Mixed Large round 1st crop 35.00- 90.00 2nd crop 35.00- 100.00 3rd crop 50.00- 110.00
Hay market Contacts:rock Valley, 712-476-5541; perry, 515-321-5765; Dyersville, 563-588-0657; ft. atkinson, 563-534-7513
*Perry auction prices are per bale. All other prices are per ton.
Price comparisons: Week ending: 01/07/2011 12/03/2010 12/31/2009Cattle National 5 Area Confirmed Sales 129,700 186,363 147,3885 Area 6580% Choice Steers: Wtd Avg. $105.00 $102.00 $84.11Average Weights (Estimate) Cattle 1306 1300 NABoxed Beef Choice 600750 (5 day avg.) $166.30 $164.00 $138.90Boxed Beef Select 600750 (5 day avg.) $160.58 $152.61 $132.34Five Day Average Hide and Offal Value $12.48 $12.06 $9.54Cattle Interior Iowa MinnesotaSupply: 19,401 32,418 29,082Average Price Choice Steer: Live Basis $105.00 $102.34 $83.19Average Price Choice Steer: Dressed Basis $167.47 $164.00 $134.99Feeder Steers at River Markets (Neb. Feedlots) #1 Muscle Thickness 500600# $151.77 $138.17 $109.39 #1 Muscle Thickness 700800# $119.46 $118.29 $95.72Hogs Interior Iowa MinnesotaISM Friday Weighted Average Carcass Price $71.90 $65.55 $63.73Average Weights (Estimate) Hogs 274.7 275.0 267.5Sows 13 300# and up: Average Price $46.03 $45.94 $34.09Pork Loins 1/4” trimmed 13 19 pounds $105.83 NA $109.635152% 185 pound Pork Carcass (5 day avg.) $77.99 $77.51 $67.76Feeder Pigs: National Direct DeliveredEarly Weaned Pigs 10 Pounds Basis: $41.78 $44.08 $40.98Feeder Pigs 40 Pounds Basis: $71.75 $57.85 $52.83Sheep NationalSlaughter Lambs Negotiated Sales *** *** No SalesChoice & Prime Wooled and Shorn 130 150 lbs. *** *** No SalesIowa Large Eggs (cents per dozen) $0.75 $1.09 $0.87Young Hen Turkeys: 8 16# Eastern Region $85.50 $95.12 $79.38*Iowa Ethanol Prices $/gal S2.27 $2.10 $1.87Futures: Corn $5.56 $5.74 $4.16State Average Cash Corn Price $5.95 $5.33 $3.75Basis $0.39 $0.41 $0.41Futures: Soybean $13.14 $13.01 $10.36State Average Cash Soybean Price $13.65 $12.46 $9.83Basis: $0.51 $0.55 $0.53Slaughter Under Federal Inspection Estimates Estimates Actuals Hogs: 2,189,000 2,123,000 2,097,000 Cattle: 639,000 653,000 647,000 Sheep: 39,000 49,000 2,097,000Cash Corn and Soybean prices are the Iowa Average Prices as reported by IDALS.NA-No report at time of publication.***Confidentiality of data prohibits publication of this report
under Livestock Mandatory Reporting. The report will be published when and if enough data is aggre-gated to meet the 3/70/20 guideline.***
Source: USDA Livestock and Grain Market News
Weekly Price Comparison
2010 CROP: The March con-tract slide under $6 suggests a top may have been seen. Still, short-term direction will be influenced by the January U.S. Department of Agriculture (USDA) reports. You should have priced remain-ing bushels, other than “gambling bushels,” when March was over $6. Hedge-to-arrive contracts for winter/spring delivery still look like the best marketing tool, but check returns against storage costs
2011 CROP: There’s a chance for December futures to move near $6 before it peaks, but there’s a possibility it’s putting in a double top at $5.65. The gross income per acre is too high to not make a sale at these prices. Get caught up now.
FUNDAMENTALS: The next
2010 CROP: The soybean rally was rejected in a level that con-tains a number of price objec-tives. Further gains may be depen-dent on the USDA reports and Argentine weather. Use current prices to sell soybeans, other than what you want to “gamble” with.
2011 CROP: There’s a chance new-crop prices could move as high as current old-crop prices, but that may not come until late winter/spring, if it does at all. Because November futures may have completed the move up off the summer low, we urge you to get caught up now.
FUNDAMENTALS: Once the USDA reports are behind us, the trade’s attention will return to Argentina and China. Rain and cooler temperatures kept
CORNSTRATEGY
SOYBEANSTRATEGY
Neither AgriVisor LLC nor the Iowa Farm Bureau Federation is liable for any damages that anyone may sustain by reason of inaccuracy or inadequacy of information pro-vided herein, any error of judgment involving any projections, recommendation or advice or any other act of omission. This publication is owned by the Iowa Farm Bureau Federation with advice provided by and copyrighted by AgriVisor Services LLC, 1701 Towanda Avenue, Bloomington, Ill., 61701. No reproduction of any material in whole or in part of this page may be made without written consent.
USDA reports are the key fundamen-tals at the moment. But Argentine weather remains a focus of the trade. Scattered showers moved through the region, but additional moisture is needed for the country to have a good crop. The forecast calls for more rain chances in the short term, but amounts are uncertain.
SOYBEANS: (basis vs. March futures, 1/5/10)
NW $13.29 NC $13.29 NE $13.26 -0.65 -0.65 -0.68 SW $13.27 SC $13.31 SE $13.39 -0.67 -0.63 -0.55
CORN: (basis vs. March futures, 1/5/10)
NW $5.82 NC $5.81 NE $5.78 -0.37 -0.38 -0.41 SW $5.77 SC $5.85 SE $5.87 -0.42 -0.34 -0.32
Iowa Corn & Soybean Basis
Cash Strategist Hotline: 1-309-557-2274
Argentine crop conditions from worsening the first week of the year. Whether that signaled a more permanent shift is still not cer-tain, but it is a possibility. Chinese demand has softened with uncer-tain monetary policy, neutral/nega-tive crush margins and relatively high port stocks.
IOWA FARM BUREAU SPOKESMAN JANUARY 12, 2011 7
USDA proposes crop insurance rebates
Will USDA crop report be another ‘game-changer’?
3-29-10 — 20% sold @ $9.27
4-7-10 — 10% sold @ $9.25
4-19-10 — 10% sold @ $9.62
7-12-10 — 10% sold at $9.58
8-19-10 — 10% sold at $10.09
9-13-10 — 10% sold at $10.34
9-20-10 — 10% sold at $10.93
10-11-10 — 20% sold at $11.76
9-13-10 — 10% sold @ $10.27
10-11-10 — 10% sold @ $11.54
80% unsold
3-1-10 — 20% sold @ $4.15
4-7-10 — 20% sold @ $3.89
7-22-10 — 20% sold @ $3.98
9-13-10 — 10% sold at $4.83
9-20-10 — 10% sold at $5.22
10-11-11— 20% sold at $5.70
BEANS 2010 2011
CORN 2010 2011
Cash Strategist Positionsat a glance
9-13-10 — 10% sold @ $4.61
10-11-10 — 10% sold @ $5.28
80% unsold
In the short term, little else matters other than the Jan. 12 U.S. Department of Agriculture (USDA) crop production and World Agricultural Supply and Demand reports. Traders still remember all too well the negative shocks from last year’s
reports, which featured numbers that sent prices reeling over the first six months of the year.
Generally, the trade is looking for a slightly smaller corn production esti-mate (12.5 billion bushels), with the soybean forecast (3.37 billion bush-els) nearly unchanged from November. Given the early harvest, the trade seems to feel that the USDA could closely forecast production potential on the last report. The slight reduction in corn yield expectations many are using is tied to the premise that the January yield is usually slightly smaller in years it is reduced in October and November.
The smaller corn ending stocks fore-cast (779 million bushels) is based on predictions that the USDA will raise its ethanol grind forecast. Expectations for another reduction in the soy-bean ending stocks forecast (157 million bushels) are tied to the idea that the USDA will again raise its export forecast.
The most anticipated report may be the grain stocks as of Dec. 1, especially the corn stocks estimate. The range for this number is more than 1 billion bushels, an unusually wide spread. Much of that can be tied to the volatility of corn stocks on the last two quarterly reports. June’s estimate was 300 million less than the trade expected, while September’s was 300 million bushels more.
There were a lot of reasons advanced in the wake of both as to why the USDA’s number was different than expected, but there is little “concrete” for the numbers. This week’s report may not resolve the dilemma, as the December number has a history of being “volatile.” It may be March before analysts begin to get a sense of the actual supply.
The range for the soybean stocks is surprising, with estimates differing by more than 100 million bushels, as consumption is well documented. Still, most pre-report numbers cluster around last year’s 2.34 billion bushels.
The first winter wheat planting projection is also of trader interest. On average, they expect a sharp increase from last year’s extraordi-nary low acreage. You will remember that last year’s wet fall caused planting difficulties in both the Great Plains and Corn Belt, causing acreage to drop sharply.
Given last year’s problems, this year’s good fall weather and high wheat prices, it’s surprising to see analysts only expect winter wheat plantings to rise by 3.5 million acres. Two million acres comes in soft red wheat, and 1.5 million acres in hard red winter wheat.
There is a history of the USDA December planting number com-ing in under expectations, and some may be accounting for that. But given the flip in the situation from last year to this year, we’d be less inclined to expect that.
Last year’s report ended up being a “game changer” for the first part of the year. Given the uncertainty, this year’s could be, too.
The Department of Agricul-ture’s Risk Management Agency (RMA) last week unveiled a pro-posal to reward farmers participat-ing in the federal crop insurance program for good performance.
The proposed program is intended to be available before the spring planting season. Payment amounts would vary by producer and will be based on each quali-fied producer’s history in the pro-gram.
The RMA estimates that the
average refund per producer this year will be about $1,000. The program has a proposed maxi-mum limit at $25,000, with a minimum payment of $25. The first year of the proposed program will use data from 2009 and prior crop years because not all 2010 data is finalized.
RMA expects that the pro-posed Good Performance Refund program will provide farmers with about $75 million this year in crop insurance refunds. It is estim ated
that the program would benefit farmers and ranchers in more than two-thirds of counties nationwide.
The RMA said the program is made possible by the savings realized from recent Standard Reinsurance Agreement nego-tiation between the Federal Crop Insurance Corporation and the pri-vate insurance industry.
The proposed rule, published in the Federal Register Jan. 6, has a 15-day comment period that ends Jan. 21.
8 JANUARY 12, 2011 IOWA FARM BUREAU SPOKESMAN
STRONG ROOTS. STRONG YIELDS.
CONGRATULATIONS!2010 NCGA YIELD CONTEST WINNERS
For more information regarding the intellectual property protection for the seed products identified in this publication, please see www.asgrowanddekalb.com.
Individual results may vary, and performance may vary from location to location and from year to year. This result may not be an indicator of results you may obtain
as local growing, soil and weather conditions may vary. Growers should evaluate data from multiple locations and years whenever possible.
ALWAYS FOLLOW IRM, GRAIN MARKETING AND ALL OTHER STEWARDSHIP PRACTICES AND PESTICIDE LABEL DIRECTIONS. Genuity and Design®, Roundup Ready 2
Technology and Design®, and DEKALB and Design® are registered trademarks of Monsanto Technology LLC. Respect the Refuge and Corn Design® is a registered trademark of
National Corn Growers Association. ©2010 Monsanto Company. [22708Apgd]
Before opening a bag of seed, be sure to read, understand and accept the stewardship requirements, including applicable refuge requirements for insect resistance management, for the biotechnology traits expressed in the seed as set forth in the Monsanto Technology/Stewardship Agreement that you sign. By opening and using a bag of seed, you are reaffirming your obligation to comply with the most recent stewardship requirements.
For more information, visit your local DEKALB Dealer or visit www.DEKALB.com
NATIONAL WINNERS
YOUR IOWA YIELD CONTEST WINNERS WHO GO WITH DEKALB®
powered by
IndianaRandy and Mark Hardy1st Place: DKC61-06
Randy Hardy2nd Place: DKC63-42
IowaKevin Nagel2nd Place: DKC61-06
David Schultz3rd Place: DKC61-21
MissouriHinkebein and Landawee Farm 1st Place: DKC63-84
Hinkebein Farms 2nd Place: DKC61-05
Charles W. Hinkebein3rd Place: DKC61-73
New YorkJason Swede1st Place: DKC63-42
Henry G. Everman3rd Place: DKC61-69
West VirginiaMichael Wolpert3rd Place: DKC63-42
WisconsinEugene Steiger1st Place: DKC61-21
Betty Steiger1st Place: DKC63-42