Tuesday December 13 Ag News

Kerrey: More Local Authority Needed over Missouri River Basin

Lack of local authority over the Missouri River basin "guarantees that the politics over the river are at best dysfunctional and at worst counter-productive," said Bob Kerrey, former Nebraska senator and governor.

Few people think about the river's politics until it breaks free of its banks and they're looking to cast blame, added Kerrey, who spoke Monday at the University of Nebraska-Lincoln as part of the Institute of Agriculture and Natural Resources' Heuermann (pronounced Hugh-er-man) Lecture series. His talk was titled "Conflict and Resolution on the Missouri River."

Blame for this year's catastrophic flooding has fallen largely on the U.S. Army Corps of Engineers, and Kerrey acknowledged that if he were still an elected official, he likely would have joined in the finger pointing.

That may not be fair, Kerrey said. Historically, he said, the Corps has managed the basin well, but there's no way to completely tame this "big, wild and frightening" 2,341-mile long Missouri, the continent's longest and most violent river.

"The problem is the residents of the basin through which this river flows have no public authority charged with the responsibility of resolving the constant conflicts we humans have over the uses of the river's water," Kerrey said. "We have delegated that authority to a number of federal agencies.

"This, in turn, guarantees that the politics over the river are at best dysfunctional; at worse they are counter-productive," he added.

The 2011 flood resurfaced these politics, but they're not new, Kerrey said.

Kerrey offered a brief history of the land, the river, the politics and the law, noting that the U.S. Supreme Court in 1940 confirmed that the U.S. Constitution gave Congress broad authority to develop the nation's rivers for navigation, hydropower, irrigation and recreation, as well as to restrict the rights of private owners of riverside land.

Congress responded in 1944 with the Pick-Sloan Act, which "had a larger economic, social and environmental impact on the Missouri River basin than any other act by Congress," Kerrey said.

"It transformed the economy of the region from one where agricultural production could be wiped out by too much or too little water to one that dependably produced food for the country and the world. It added more low-cost, clean power production for business and homeowners," he said. "It provided man-made lakes and fisheries that brought more tourism and jobs. It reduced the frequency of floods that interrupted commerce and lives. It made navigation possible by lowering the cost and increasing reliability."

Although the law's impacts have been largely positive, it's time for a new approach.

Kerrey said a better way to manage the river may lie in a proposal made in 1953 by one of his Nebraska predecessors in the U.S. Senate, Hugh Butler, who suggested a change in federal law that would have given the basin's 10 states more authority over the river through a compact. Butler died in 1954, and the legislation never passed.

Building on Butler's plan, Kerrey suggested a Missouri Basin Commission. "It would not end the conflicts" over the river's use. "It would allow conflicts to be resolved. This is extremely important to do and next to impossible under current law."

Each of the 10 states would be represented on the commission, as would the Native American nations. Decisions would be made by majority, not by consensus, and voting power would be apportioned among states by the percentage of the state that drains into the basin.

Nebraska is the only one of the 10 states in which 100 percent of the drainage goes into the Missouri basin.

Kerrey said he also would like to assure the states have control over revenue generated by hydropower in the basin. "At some point the feds are likely to steal this money from us; better to use it ourselves for the benefit of our basin," he added.

Kerrey said the commission would provide a more transparent management process than now exists, but, he emphasized, people also must understand the river still will, on occasion, wreak havoc.

"This place on the high plains was born in and created by violence. Violent tectonic shifts, violent volcanic explosions, violent creeping glaciers of ice, violent storms and violent floods. All have shaped this place that looks so flat and so peaceful," Kerrey said.

Those who call the high plains home should "try to understand how this place came to be what it is. Its age just might inspire humility. The process of its creation just might remind us how futile and sometimes dangerous it can be to alter that process because of the inconveniences it produces for modern life."

Heuermann Lectures are made possible through a gift from B. Keith and Norma Heuermann of Phillips, long-time university supporters with a strong commitment to Nebraska's production agriculture, natural resources, rural areas and people.

The next Heuermann lecturer is ecologist Stewart Brand, who will speak Jan. 17, 2012, at the Hardin Center on East Campus.

More information is available at Heuermannlectures.unl.edu. 



Nelson: Russia Must Continue to Remove Trade Barriers

Monday, Nebraska's Senator Ben Nelson applauded the progress the United States and Russia have made as economic trade partners, but also pushed Russia to end practices that put American producers at a disadvantage.

Nelson gave the keynote address at the U.S.-Russia Business Council's Agribusiness Forum in Omaha. 

"Mistrust, uneasiness and too little understanding between the world's two super powers ... led to decades when virtually no trade existed between our two countries. But times changed and thinking evolved," Senator Nelson said during his speech. "Russia is now the United States' 23rd largest goods and trading partner, with more than $30 billion in two-way trade during 2010. It is the 17th largest importer of American agricultural products.

"Vehicles, machinery, poultry, red meat and other goods are flowing back and forth between our countries, benefitting Americans and Russians every day.

Nebraska companies exported more than $5.8 billion worth of products in 2010, including more than $70 million to Russia, the 12th leading importer of Nebraska products.

"But there is still a lot of progress we have to make," Nelson said.

Nelson pointed to the United States' massive trade deficit with Russia as one issue.

"The value of goods the United States imports from Russia is nearly five times as much as the value of the goods we export to Russia. Mutual trade is important. But so is balanced trade," Nelson said.

He added that he is even more concerned that Russia continues to place barriers in the way of international commerce and cited:
-- Russia's unreasonable sanitary and phytosanitary restrictions on meat imports are not based on science or safety concerns, but they have reduced American pork sales to Russia by nearly two-thirds.
-- Russia's high tariffs on a wide variety of products -- including agricultural machinery, chemicals, plastic products and more -- create an uneven playing field for Americans companies.
-- Russia's lax enforcement of intellectual property rights must improve if American artists and inventors are to be properly compensated for their creativity.

"I agree that we would all benefit from Russia gaining membership into the World Trade Organization, but I cannot see how my colleagues in the U.S. Senate will support the Russian accession process unless these issues are resolved," Nelson said. "If Russia can make progress on these issues, it will go a long way towards winning goodwill in Washington."

Nelson said increasing trade between the U.S. and Russia has already improved diplomatic relations between the two countries, and he is hopeful that removing trade barriers can further improve the U.S.-Russia relationship.

"I've always felt that one of the most effective ways to strengthen international relationships is through trade, because when it's fair, everyone benefits," Nelson said. "If a trade agreement is fairly negotiated and honestly executed, it will build trust between the parties. ...Commerce can connect us. It can break down political barriers. It can give us common ground."



Loos to speak at Mid-America Alfalfa Expo & Conference

Well-known commentator, columnist and ag advocate Trent Loos will address the Mid-America Alfalfa Expo & Conference on Tuesday, February 7.  “I’m going to talk about the sustainability of alfalfa production but not from a yield per acre point of view,” Loos said. “Instead, I’ll talk about how we can continue to do what farmers in the United States do better than anyone else in the world: convert natural resources into human consumable products that ultimately improve human lives.”

Loos said the challenges surrounding this effort have never been greater.  “We have two choices,” he said. “We can sit back and let the forces that be continue to create hurdles, or we can step up to the plate and be heard. The answer to the challenges lies in the person you look at in the mirror.”

Raised on a diversified farm near Quincy, Ill., Loos entered the hog business at a young age and has been involved in livestock production ever since. He and his wife Kelli operate a purebred Limousin and Angus herd while raising their three daughters on their ranch in central Nebraska.

Sponsored by the Nebraska Alfalfa Marketing Association (N.A.M.A.), the Mid-America Alfalfa Expo & Conference will be held at the Buffalo County Fairgrounds in Kearney, Nebraska, February 7 and 8, 2012. The event is designed especially for alfalfa producers, livestock/dairy producers and others who are involved in alfalfa production, purchasing, hay feeding or processing.

Other speakers include Dr. Al Dutcher, Nebraska climatologist, Dr. Ron Hansen, ag economics professor at the University of Nebraska-Lincoln and Dr. Rick Rasby, University of Nebraska-Lincoln cattle feeding expert.

One of the most significant items on the agenda is the introduction of the Alfalfa Valuation Analysis, a powerful new approach to the standardization of alfalfa quality and value that has been developed by N.A.M.A.

Registration includes admission to all presentations and programs, a Tuesday afternoon reception, dinner Tuesday evening, admission to the large alfalfa industry trade show and the opportunity to bid in the fundraising auction that takes place Tuesday afternoon. The auction features a wide range of items including seed, harvesting equipment, supplies and other valuable products and services.

Registration is $10 per person in advance (tickets must be purchased by noon, February 6, 2012) and $20 at the door.  Participants under the age of 18 are admitted at no charge. Registration is available online at www.AlfalfaExpo.com.

For more information, call 1.800.743.1649 or visit www.AlfalfaExpo.com.



USDA Revises National Nutrient Management Standard to Achieve Maximum Agricultural, Environmental Benefits

Agriculture Secretary Tom Vilsack today announced that the U.S. Department of Agriculture has revised its national conservation practice standard on nutrient management to help producers better manage the application of nutrients on agricultural land. Proper application of nitrogen and phosphorus offers tremendous benefits to producers and the public, including cost savings to the producer and the protection or improvement of ground and surface water, air quality, soil quality and agricultural sustainability.

"Protecting America's supply of clean and abundant water is an important objective for USDA," Vilsack said. "This precious resource is the foundation for healthy ecosystems and sustainable agricultural production. USDA provides voluntary technical and financial assistance to help producers manage their nutrients to ensure a clean and abundant water supply while maintaining viable farm and ranch operations."

The nutrient management conservation practice is an important tool in the USDA Natural Resources Conservation Service (NRCS) conservation toolbox. The agency's staff uses this conservation practice to help farmers and ranchers apply their nutrients more efficiently. Proper management of nitrogen and phosphorus, including the use of organic sources of nitrogen such as animal manure, legumes and cover crops, can save producers money. The nutrient management standard provides a roadmap for NRCS's staff and others to help producers apply available nutrient sources in the right amount, from the right source, in the right place, at the right time for maximum agricultural and environmental benefits.

NRCS's nutrient management experts worked with universities, non-government organizations, industry and others to revise the standard to ensure it is scientifically sound. Key changes in the standard include expanding the use of technology to streamline the nutrient management process and allowing states more flexibility in providing site-specific nutrient management planning using local information when working with producers. NRCS staff offices will have until Jan. 1, 2013 to comply with erosion, nitrogen and phosphorus criteria for their state nutrient management standard.

The revised national standard is being released at a time when the agency is working with various partners to address nutrient management concerns identified in three recently released Conservation Effects Assessment Project (CEAP) cropland studies. These CEAP studies assessed the effectiveness of conservation practices in the Upper Mississippi Basin, the Chesapeake Bay Watershed and the Great Lakes Basin. One significant resource concern identified in all three studies is the loss of nitrogen and phosphorus from cropland. Most nitrogen losses are attributed to nitrate leaching through the soil to groundwater. Most phosphorus is lost due to erosion because phosphorus attaches itself to displaced soil particles that are transported by runoff to nearby waterways. Improved nutrient management and effective erosion control work together to reduce the loss of nutrients from agricultural land, resulting in improved water quality in downstream rural and urban communities. The revised standard will provide tools and strategies to help producers address the natural resource concerns relating to excess nutrients on agricultural land.

NRCS offers voluntary technical and financial assistance to producers nationwide for planning and implementing on-farm nutrient management plans. Producers can use this assistance to help meet federal, state, tribal and local environmental regulations.

For more information about how nutrient management fits into NRCS's conservation work, visit http://www.nrcs.usda.gov/wps/portal/nrcs/main/national/landuse/crops/npm.



Harkin, Grassley Encourage RE Production Tax Credit

Senators Tom Harkin (D-IA) and Chuck Grassley (R-IA) have led a group of 15 senators in requesting an expansion of the wind power tax credit. The current wind power legislation will expire at the end of 2012. The senators are asking Senate leadership, and the Chairman and Ranking Member of the Senate Finance Committee, to extend the renewable energy production tax credit (PTC) as part of any tax package considered by Congress.

"The robust recent expansion of wind power in the United States represents one of the most promising trends in our electricity sector," wrote the lawmakers. "To ensure increasing contributions of clean, wind-generated electricity and to continue the domestic employment and economic benefits that the wind industry provides, the PTC should be immediately extended, ideally on a multi-year basis. We therefore urge you to include an extension of the PTC as part of any tax legislative vehicle as soon as possible."

Senators joining Harkin and Grassley include: Jon Tester (D-MT), Ron Wyden (D-OR), Jeanne Shaheen (D-NH), Michael Bennet (D-CO), Tom Udall (D-NM), Amy Klobuchar (D-MN), Sheldon Whitehouse (D-RI), Kent Conrad (D-ND), Mark Udall (D-CO), Tim Johnson (D-SD), Jeff Merkley (D-OR), Carl Levin (D-MI), and Jack Reed (D-RI).



Iowa Farm Bureau Elects New President, Vice President

Craig Hill of Milo was elected president of the Iowa Farm Bureau Federation (IFBF) at the organization's 93rd annual meeting in Des Moines. He succeeds Craig Lang, who served as Farm Bureau president for 10 years. Joe Heinrich of Maquoketa, IFBF board member representing District 6, was elected as vice president. County delegates also re-elected three district directors to the board. They include Charles Norris of Mason City, Andy Hora of Riverside and Jim McKnight of Afton.

Hill raises hogs and grows corn and soybeans on his farm in Warren County. He was first elected to the board in 1989 and was elected vice president in December 2001. He also serves as chairman of IFBF's state resolutions committee.

Hill's service extends beyond the state board to his local Warren County Farm Bureau and the broader agricultural community. He was instrumental in the development of Revenue Assurance, a revenue-based crop insurance program for corn and soybean farmers. He served as the first chairman of the Iowa Ag State Group and on the U.S. Grains Council. Hill was also appointed to Governor Vilsack's Strategic Planning Council in 1999 to help Iowans prepare for the future of the state in 2010.

In 2003, the American Farm Bureau Federation (AFBF) named Hill to a 23-member national committee, Making Agriculture Productive and Profitable (MAPP). The committee develops policy options for Farm Bureau members to consider.

Hill and his wife, Patti, have two children. His son, Adam, works on the farm.

New Iowa Farm Bureau Vice President Joe Heinrich raises beef and dairy cattle and grows corn, soybeans and hay on his Jackson County farm. Prior to his election as vice president, Heinrich represented District 6 of the organization's board of directors, which consists of 11 counties in eastern Iowa; he was first elected to the position in 2004. Heinrich has been active in various county and state Farm Bureau activities and held several positions on the Jackson County Farm Bureau board. Heinrich and his wife, Shelley, have two daughters. The District 6 board of directors representative to replace Heinrich will be elected in the near future.

Re-elected District 2 representative Norris represents Farm Bureau leadership in 11 counties in north central Iowa. He was first elected to the position in 1996. Norris also represents Iowa Farm Bureau on the U.S. Grains Council and is the IFBF liaison to the Iowa Corn Growers Association.

Hora represents District 7, which consists of 11 counties in southeast Iowa. He was first elected to that position in 2008. McKnight, also re-elected to District 9, represents Farm Bureau leadership in 12 counties in southwest Iowa. He was first elected to that position in 2005.

The IFBF delegates also elected five members to represent Iowa at the 2012 American Farm Bureau Federation (AFBF) convention in Honolulu, HI. They are: David Seil of Webster County, Rick Plowman of Van Buren County, Mike Fara of Shelby County, Brandon Vorthmann of West Pottawattamie County and Vince Spain of Fayette County.

Doug Boland of Williamsburg (Iowa County) was elected to a three-year term on the IFBF internal study committee. The internal study committee serves as a liaison between the county Farm Bureau voting delegates and the state board of directors.



Iowa soybean farmers participate in phone exchange with Perry

Soybean farmers across Iowa participated in a telephone townhall meeting, speaking directly with Republican Presidential candidate Rick Perry on Monday evening. It was one of several opportunities planned by the Iowa Soybean Association (ISA) in an effort to focus attention on the critical topics of agricultural policy and trade issues impacting America’s farmers.

ISA has extended the invitation to all major Presidential candidates to participate in telephone calls with Iowa farmers. Governor Perry was the second candidate to accept the invitation, following Newt Gingrich, who participated in a call last week.

Perry started the conversation by emphasizing his own background in agriculture, growing up on a farm and returning to farm with his father after attending college and serving in the military. He said, “When I am President, the American farmer will have a friend in the White House.”

Once again, questions raised by ISA members during the call aligned closely with issues that have emerged during the association’s recent District Policy Conferences.

Kicking off the discussion, the first caller asked about infrastructure needs, including roads, bridges, locks and dams. Perry criticized the Army Corps of Engineers, which he said has not been held accountable. He also said the present government has not used stimulus money to create jobs that could have improved the infrastructure.

Another caller voiced concern about Congress taking China to task for currency fixing and whether that will start a trade war. Perry said, “China is our competitor, militarily and economically.”  He said the best tactic for the United States is to focus on developing its own economic potential, starting by working with “our own tax structure.” Perry said he favors tax codes that will bring jobs back to the United States. He would work to get the U.S. economy back on track by developing government lands for energy, since energy represents a large expense in businesses like agriculture. Also regarding free trade, Perry said he would use ag products to build the economy.

Polled during the call, 46 percent of the ISA members on the line indicated their top concern is burdensome regulations, 36 percent said infrastructure is their top concern while 18 percent of the farmers said their greatest concern is trade.

Several times, Perry said, he would freeze and evaluate regulations, particularly those that cost jobs. And “keep Washington out of people’s hair.”

When asked about EPA regulations like those restricting dust, Perry said he would reform the EPA so its role would be to resolve interstate issues, but not for regulations costing money and jobs.

Perry said he disagrees with restrictions that would require young people operating farm equipment to be at least 18 years old, considering that they can drive a vehicle when they are 16.

Concerned about the role investors are playing in the rising prices of farmland and that they are keeping farmers, especially young farmers, from being able to afford land, one caller asked Perry what he would do about that. He responded that he believed government should stay out of farm prices.

He maintained he is more concerned about the tax structure. “The inheritance tax is a bigger problem, especially with high land prices,” Perry said.  He said he would eliminate the “death tax,” and would set a flat 20 percent income tax.

One farmer questioned Perry’s record on biofuels, to which he responded that his stand on all energy matters has been consistent. “When I was the agriculture commissioner for Texas, I took a consistent stand. Because ethanol hurt the cattle industry, I wrote a recommendation to cut the ethanol mandate in half.” Perry said he is not for tax credit for any energy. By phasing out all energy tax credits, he said he would treat every energy equally. He added he would be okay with state incentives but those should not come from Washington, D.C.

On immigration, Perry favors securing the border. “I know from experience what this involves. Texas spent $400 million to secure the border, but the state can’t do it alone. It needs a President to shut the border down. Putting a strategic fence in place and having feet on the ground, we could secure the border within 12 months.” Recalling President Obama visiting the border and pronouncing it safe, Perry said, that is “not reality.”

Using the Texas legislature as a model, Perry called for a part-time Congress, “not legislators making $174,000 per year.” He would require that Congressmen have a “real job” in their home state, and he would cut their staff in half. “I would make D.C. as inconsequential as possible in our lives,” he said.

The telephone townhall meetings are posted on the ISA website; those who missed the calls can listen to them at www.isasoybeans.com.



Little Movement in Fertilizer Prices

As been the case for the past several months, retail fertilizer prices tracked by DTN for the first week of December 2011 continue to hold steady.  One interesting item was seven of the eight major fertilizers registered lower prices compared to the first week of November, although the moves to the lower side were relatively small. DAP had an average national retail price of $706/ton, MAP $740/ton, potash $659/ton, urea $608/ton, anhydrous $814/ton, UAN28 $403/ton and UAN32 $456/ton.  The remaining fertilizer, 10-34-0, showed a slight increase in price compared to one month earlier. The starter fertilizer had an average price of $828/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.66/lb.N, anhydrous $0.50/lb.N, UAN28 $0.72/lb.N and UAN32 $0.71/lb.N.

Six of the eight major fertilizers continue to show double-digit increases in price compared to one year earlier. Leading the way higher is 10-34-0. The starter fertilizer has skyrocketed early this year but has fallen back some in recent months is now 46% higher compared to the first week of December 2010.  Urea has jumped 28%, potash 19%, UAN32 18%, UAN28 17% and anhydrous 13% higher compared to year earlier.  The two phosphorus fertilizers continue to bring up the rear. MAP is 7% more expensive while DAP is 6% higher compared to December of 2010.



Donors give record $16 million to National FFA Foundation in 2011

Two months ago, the National FFA Organization announced a new record membership of 540,379 students thanks to more than 17,000 students in the U.S., Puerto Rico and the Virgin Islands signing up during the 2010-11 school year.

Today, the organization’s fundraising arm, the National FFA Foundation, announces it raised a record $16 million through corporate and private financial contributions to support FFA in 2011.

The foundation welcomed 40 new corporate sponsors in 2011, raising the total number to 1,212. Three new corporations combined for a $3 million gift to FFA. The foundation also drew more than 80 new companies and organizations as exhibitors at the 2011 National FFA Convention & Expo, the nation’s largest gathering of students. More than 53,350 FFA members, teachers and school administrators attended the 2011 event.

“We were well positioned in 2011 with the resources we needed to ensure our members received the ultimate FFA experience through our programs and key initiatives,” said National FFA Foundation executive director Rob Cooper. “Our core programs, including career development events, proficiencies, scholarships, award competitions and more, were funded at 90 percent – another record high. Without the commitment of our donors, it would be impossible for FFA to make a meaningful difference in the lives of hundreds of thousands of students.”

Providing opportunities that help FFA members grow and succeed is the work of the National FFA Foundation. Foundation donors make possible award and recognition programs, scholarships, service learning activities, global engagement programs, national FFA convention functions, educational materials, teacher training and much more.



U.S. Tractor Sales Up During November

According to the Association of Equipment Manufacturers' monthly "Flash Report," the sales of all tractors in the U.S. for November 2011 were up 5% compared to the same month last year.  For the month, two-wheel-drive smaller tractor (under 40 HP) were even with last year, and 40 & under 100 HP were up 2%. Sales of two-wheel-drive 100+ HP were up 16% from last year, and four-wheel-drive tractors were up 20% for the month.  Combine sales were down 4% for the month.

For the year 2011, a total of 152,352 tractors were sold, which compares to 150,633 sold through November 2010.  For the year 2011, two-wheel drive smaller tractors (under 40 HP) are even with last year, while 40 & under 100 HP were up 3%. Sales of two-wheel drive 100+ HP are up .5%, while four-wheel-drive tractors are up 6% for the year.  Sales of combines for the year 2011 total 8,973, down 4% from the same period in 2010.



National Farmers Organization to Conduct 2012 Convention

National Farmers Organization has announced its 2012 convention will be held Jan. 30 – Feb. 2 at the Sheraton in West Des Moines, Iowa. Dr. Daryll Ray, University of Tennessee will keynote, providing an update on the Farm Bill. Commodity marketing workshops, an election and a day at the Iowa Power Farm Show round out the four-day event.

Highlights
Tues. Jan. 31 — An Update on the Farm Bill by Dr. Daryll Ray, University of Tennessee
Dessert Reception and Young Producer Awards Tues. Jan. 31 — 7 p.m.

Wed. Feb. 1 — Morning
A Day at the Iowa Power Farming Show, Wells Fargo Arena, Veterans Auditorium, Hy-Vee Hall, Des Moines
3 p.m. National Farmers Commodity Day Workshops, Sheraton Hotel, West Des Moines

Dairy Workshops
Dairy Industry Update 3 p.m.—National Farmers Dairy Staff
Organic Valley’s Supply Management System—Marty Grosse 4:15 p.m.

Livestock Workshops
Electronic Cattle Grading 3 p.m.
Cattle Feeding Trends 4:15 p.m.

Grain Workshops
Why Crop Insurance Protection is Vital This Year—Chris Webb 3 p.m.
Grain Marketing Strategies You Must Know in 2012—Don Roose 4:15 p.m.
Organic Marketing 303-Working Together Improves Profits—Tim Ennis 4:15 p.m.

Evening Dance and Social Gathering 8 p.m.

Thur. Feb. 2
President and vice president elections
Free Trade agreements and animal disease—Dr. Max Thornsbury DVM,R-CALF USA

More Details:  http://www.nfo.org/About_Us/Events_NationalConvention2012i.aspx. 



Fed Takes No New Action

(AP) -- The Federal Reserve says the economy has grown moderately as hiring and consumer spending have improved. As a result, it's holding off on any new steps to boost the economy.

Fed officials cautioned in their statement that unemployment remains high. And it noted that global economic growth has slowed — a reference to Europe's debt crisis. They left open the possibility of taking new steps next year if the economy worsens.

Most economists expect Fed policymakers used their final meeting of the year to fine-tune a strategy for communicating changes in interest rates more explicitly. The Fed has left rates near zero for the past three years.

The statement was approved by a 9-1 vote. Charles Evans dissented for the second straight meeting.



New Economic Study Shows 50-Year-Old Herbicide Still an Economic Driver

According to a new economic study by Paul D. Mitchell, Ph.D., associate professor, Department of Agricultural and Applied Economics at the University of Wisconsin-Madison, the herbicide atrazine benefits U.S. corn, sorghum and sugar cane farmers by up to $3.3 billion annually, thanks to increased yield, decreased cost and reduced soil erosion.

Mitchell will present the findings of his paper, "Economic assessment of the benefits of chloro-s-triazine herbicides to U.S. corn, sorghum, and sugar cane producers," Wednesday, Dec.14, 2011, at the 2011 North Central Weed Science Society Annual Meeting in Milwaukee.

The study's key findings include:
-    Atrazine and the other chloro-s-triazines (simazine and propazine) produce $3 billion to $3.3 billion in value annually.
-    Atrazine and its sister triazine herbicides are worth an estimated annual yield benefit and net cost savings of $343 million for U.S. sorghum growers, $210 million for U.S. sweet corn growers and up to $120 million for U.S. sugar cane growers.
-    Atrazine and its sister triazines provide substantial weed control and encourage conservation tillage and no-till farming, which reduce soil erosion and improve water quality.

"There is no good substitute for atrazine. It's an off-patent, affordable and well understood product," said Mitchell. "Atrazine significantly increases yields and is a vital tool for controlling weeds in corn, sorghum and sugar cane."

Though it has been more than 50 years since the herbicide was first introduced, the continuing importance of atrazine, along with simazine and propazine, to U.S. agriculture and global food supplies cannot be overstated. In addition to managing weeds, atrazine and its sister triazines are critical to support conservation tillage practices that improve soil conservation in row crop production.



Dry Outlook Could Hit Argentine Crops

The La Nina weather phenomenon is expected to reduce rainfall in Argentina's main crop belt until at least mid-January, hitting corn and soy yields and preventing some plantings, forecasters said this week.

The South American country is the world's third-biggest soybean exporter and concerns about dry weather in Argentina and neighboring Brazil helped push U.S. soybean futures higher on Tuesday.

Rainfall has been light and patchy in some of Argentina's most important farming regions in recent weeks, raising concern among farmers as they seed 2011/12 season corn and soy.

Dry conditions early in last season's campaign sparked fears for corn and soy production, but plentiful rains from the middle of January on helped safeguard yields.

Corn output reached a record 23 million tonnes in the 2010/11 harvest, while soy production was a healthy 48.9 million tonnes. Most analysts expect bigger crops this season, although current weather forecasts will weigh on expectations.



Australia Wheat Could Top 29 Mil

Australia's wheat output could top 29 million metric tons, higher even than an official record estimate of 28.3 million tons, this crop year, Steve Burt, managing director of trading and exporting concern PentAG Nidera Pty. Ltd., said Tuesday.

Burt's estimate highlights the abundant supplies of wheat available after what looks to be two successive record crops in Australia, usually one of the top five suppliers to the global trade.

The wheat crop in the year that ends March 31"will be in the vicinity of 29 million tons," adding to the already massive amount of wheat available from Australia. "There's very few stories where yields have disappointed."

When combined with the carryover of old-crop inventories of more than 8.0 million tons into the new marketing year that began Oct. 1, the Australian industry has a big export task ahead of it, he said.

Burt estimated about three quarters of the national wheat crop has been harvested and stored, and about 3.0 million tons might have been downgraded to livestock feed from the usual milling grades for human consumption, he said.