Thursday January 12 Ag News

NEBRASKA’S 2011 CROP PRODUCTION

Corn for grain production in Nebraska based on  year-end surveys is estimated at 1.54 billion bushels, up 5 percent from 2010 and the second largest production of record, according to USDA’s National Agricultural Statistics Service, Nebraska Field Office. Yield of 160 bushels per acre is unchanged from the November forecast, but 6 bushels below last year. Farmers harvested 9.6 million acres of corn for grain, up 8% from 2010 and the largest since 1933.

Soybean production for 2011 totaled 258 million bushels, down 3 percent from 2010 but still the third largest of record. Yield, at 53.5 bushels per acre, is up 1 bushel from a year earlier and second highest of record. Area for harvest, at 4.83 million acres, is down 5 percent from 2010.

Sorghum for grain production in 2011 is estimated at 6.6 million bushels, down  3 percent from 2010. Yield, at 94 bushels per acre, is up 4 bushels from a year earlier. Area harvested for grain is 70,000 acres, down 5,000 acres from a year ago and the lowest sorghum for grain acreage since 1937.

Hay production totaled 5.62 million tons in 2011, down 11 percent from a year earlier.  Area harvested is 2.48 million acres, down 8 percent from 2010.  The average yield, at 2.27 tons per acre, is down 0.09 ton per acre from 2010.  Alfalfa production is down 13 percent from a year earlier and all other hay production is down 9 percent.  



NEBRASKA DECEMBER 1, 2011 GRAIN AND HAY STOCKS

  Nebraska Corn stocks in all positions on  December 1, 2011 totaled 1.16 billion bushels, down 3 percent from a year earlier, according to USDA’s National Agricultural Statistics Service, Nebraska Field Office.  Of the total stocks, 730 million bushels are stored on farms, down 1 percent from 2010.  Off-farm stocks, at 433 million bushels, are down 5 percent from 2010 but still the third highest on record.

  Soybeans stored in all positions on December 1, 2011 totaled 200 million bushels, up 18 percent from last year.  On-farm stocks at 63 million bushels are up 17 percent from a year earlier.  Off-farm stocks at 137 million bushels are up 19 percent from 2010 and the highest on record. 

  Wheat stored in all positions on December 1, 2011 totaled 47.7 million bushels, down 37 percent from a year ago.  On-farm stocks, at 3.7 million bushels, are down 46 percent from 2010.  Off-farm stocks, at 44.0 million bushels, are down 36 percent from a year earlier.

  Sorghum stored in all positions on December 1, 2011 totaled 8.3 million bushels, down 2 percent from 2010 and the lowest since 1956.  On-farm stocks, at 1.7 million bushels, are unchanged from a year earlier and equal to the lowest since 1952. Off-farm stocks, at 6.6 million bushels, are down 3 percent from last year and the lowest since 1956.

  Hay stocks on Nebraska farms totaled 4.3 million tons on December 1, 2011, down  9 percent from a year earlier.



NEBRASKA 2012 WINTER WHEAT SEEDINGS DOWN FROM LAST YEAR

Nebraska's winter wheat seedings for the 2012 crop are expected to total 1.4 million acres, according to USDA’s National Agricultural Statistics Service, Nebraska Field Office. Seedings are down 8 percent, or 120,000 acres, from last year and the smallest winter wheat planted acreage since records began in 1909.   Topsoil  moisture  supplies  were  mostly  adequate  in  western  counties  as  the  planting period began.   As of January 1, 2012, winter wheat crop conditions  rated 74 percent good and excellent, compared to 42 percent good and excellent a year ago.



Iowa Crop Productions Numbers

Corn  for grain production  in  Iowa during 2011  is estimated at 2.36 billion bushels, according  to  the USDA National Agricultural Statistics Service annual Crop Production 2011 Summary report released today. This estimate is up nearly 1 percent from the November 1 forecast and up 9 percent from 2010.   Iowa's producers averaged 172 bushels per acre, up 1 bushel from the November 1 forecast and 7 bushels from last year. Area harvested for grain is up 50,000 acres from the previous forecast at 13.7 million acres, nearly 5 percent above 2010. Corn planted for all purposes in Iowa, at 14.1 million acres, was up 5 percent from 2010.

Corn for silage production is estimated at 4.1 million tons, down nearly 21 percent from 2010.  The silage yield estimate of 20.5 tons per acre is 1.0 ton per acre lower than last year.  Producers harvested 200,000 acres of corn for silage, 40,000 fewer acres harvested than in 2010.

Soybean production is estimated at 466 million bushels in 2011, down less than 1 percent from the November 1 forecast, and  down  6 percent  from  2010.  Iowa's  producers  averaged  50.5 bushels  per  acre,  unchanged  from  the  November  1 forecast, down 0.5 bushel from last year's yield. The harvested acreage of 9.23 million acres is 5 percent below the 2010 estimate.  The planted acreage of soybeans, at 9.35 million acres, is 5 percent below 2010.

All hay production for the state is estimated at 3.46 million tons, down 8 percent from the 3.76 million tons produced in 2010.  Producers averaged 3.04 tons per acre. Harvested acres for hay was estimated at 1.14 million acres, down 5 percent from the previous year.

Alfalfa  and  alfalfa  mixtures  production  is  estimated  at  2.79 million tons,  down  7 percent  from  2010.    Producers averaged  3.4 tons  per  acre.   Harvested  acres  decreased  by  7 percent  from  last  year  to  820,000  acres.    Iowa  producers seeded 85,000 acres of alfalfa in 2011, down 37 percent from the previous year.

Other hay production is estimated at 672,000 tons, 12 percent below the previous year’s production.  Producers averaged 2.1 tons per acre.   Harvested acres of other hay remained unchanged from the previous year at 320,000 acres.



Iowa Grain Storage Report

Iowa corn stored in all positions on December 1, 2011 totaled 1.95 billion bushels, up 3 percent from December 1,  2010,  according  to  the USDA National Agricultural Statistics Service Grain  Stocks  report  released  today.  Sixty-four percent  of  the  total  stocks  were  stored  on-farm.    The  September  -  November  2011  indicated disappearance  totaled  671 million  bushels,  2 percent  above  the  659 million  bushels  used  during  the  same quarter last year.

Soybeans  stored  in  all  positions  on  December  1.  2011  totaled  422 million  bushels,  up  9 percent  from  the 387 million  bushels  on  hand December  1,  2010.    Forty-four percent  of  the  total  stocks were  stored  on-farm.  Indicated  disappearance  for  September  -  December  2011  is  91 million  bushels,  38 percent  less  than  the 147 million bushels used during the same quarter last year.

Oats stored in all positions on December 1, 2011 totaled 5.96 million bushels, 38 percent below the stocks on December 1, 2010. Of the total stocks on hand, 1.2 million bushels are stored on farms, down 20 percent from a year ago.  Off-farm stocks totaled 4.76 million bushels, down 42 percent from the previous year.  



NDA ENCOURAGES NEBRASKANS TO APPLY FOR LIVESTOCK TRADE COST-SHARE FUNDING

On behalf of the U.S. Livestock Genetics Export (USLGE), the Nebraska Department of Agriculture (NDA) is reminding Nebraskans of cost-share funds to promote U.S. livestock exports.

USLGE received funds which will be available to private livestock breeders, companies, or cooperatives interested in promoting livestock, semen, or embryo sales in international markets through December 31, 2012.  These funds are available through the Market Access Program (MAP) of the Foreign Agricultural Service (FAS) of the U.S. Department of Agriculture.

“This program has the potential to greatly improve the visibility of scope that Nebraska ranching operations of other livestock companies in the international marketplace,” said Stan Garbacz, the agricultural trade representative for NDA.  “This cost-share program can be used to assist with beginning of increasing their international presence.”

The MAP branded program provides for partial reimbursement (up to 50 percent) of the cost of approved activities, such as international advertising, the development, translation and distribution of promotional materials, and participation in foreign trade shows and exhibitions.  Funds cannot be used for travel or personnel reimbursement.  An administrative fee is charged to participate in the program.

For more information about the program, please contact Stan Garbacz at (402) 471-2341, or the USLGE at (618) 548-9154. 



Tool Helps Show U.S. Soy's Sustainability

U.S. soybean farmers now have an updated tool that can meet the needs of some customers who want proof U.S. soy has been sustainably produced.

That's why the soybean checkoff continues to support the Field to Market alliance and its updated Fieldprint Calculator, a tool U.S. soybean farmers can use to help measure, improve and demonstrate their sustainability performance.

The updated calculator, available on the Internet, includes several upgrades from earlier versions. It allows U.S. farmers to analyze individual fields and includes more advanced measurements for soil conservation and soil carbon. Additionally, the tool automatically provides a financial ledger that computes the economic impact of sustainable practices on that farm. It also allows U.S. farmers to set up a secure account to save their information for future use.

Nebraska soybean farmer Mike Thede notes that checkoff-funded research has proven the sustainability performance of U.S. soy production. The checkoff shares that information with U.S. soy buyers to support sales.

"All U.S. farmers are under more and more pressure from our customers, who demand soybeans produced in a sustainable manner," explains Thede, who serves as team lead of the United Soybean Board's Sustainability Initiative. "We need to continue to document our sustainability performance to our end users in order to maintain and expand our markets."

According to a recent checkoff-funded life-cycle study, U.S. soybean production proves to be very sustainable due to several factors. For instance, a soybean plant sequesters more greenhouse gases than those generated by the equipment used to grow, harvest and process soybeans. Additionally, U.S. soybean production and processing have become more efficient because of higher yields, more conservation tillage and reduced energy use.

The Fieldprint Calculator can be used for free by all U.S. soybean, corn, wheat, cotton and rice farmers. First, it asks farmers to enter information about their operation. If desired, the tool can confidentially save any information entered, in which case that information is accessible only by the farmer who saved it.

The tool analyzes the use of that farm's natural resources and inputs to compute its environmental footprint, or "fieldprint." The results show farmers where there's room for improvement. U.S. farmers can also compare their results with those from other farms in their area, state or the entire country.

As a member of Field to Market, the soybean checkoff supported development of the original calculator in 2009, as well as the recent update. More information about Field to Market and the Fieldprint Calculator is available at www.FieldToMarket.org.



Nebraska Ag Technologies Association Conference Feb. 1-2 in Grand Island

The latest technologies in agriculture will be the focus of the 2012 Nebraska Agricultural Technologies (NeATA) Conference and Tradeshow Feb. 1-2 at the Midtown Holiday Inn in Grand Island.

"The adoption of precision agriculture technologies has hastened during the recent good agriculture economy," said Dave Varner, University of Nebraska-Lincoln Extension educator. "Variable rate technologies, irrigation water management tools and learning to integrate several precision agriculture technologies highlights this year's NeATA conference."

A preconference program begins with 8:30 a.m. registration and runs from 9 a.m.-5 p.m. Feb. 1. It focuses on variable rate technologies and techniques. It will offer a fast-paced approach of 30-minute presentations combined with plenty of time for discussions and debate, Varner said.

General conference registration and exhibits open at 5 p.m. Feb. 1. General sessions start at 7 p.m. Feb. 1 with Nutrient Management: Now and the Future. Other general sessions begin at 8 a.m. Feb. 2 and include: An Overview of Today's Precision Agriculture Topics and Issues, Employing Precision Ag Technologies to Attain Record Corn Yields, A Vision for Nebraska's Innovation Campus, LightSquared Impact on the Agricultural Section and Clouds on the Horizon: How Developments in IT as-a-serve Technologies Might Impact Rural America.

Participants may also choose among 16 breakout sessions that address topics such as farm-based networks for irrigation management, automated section control, variable rate irrigation success, smart phone and tablet applications for the farm, using automated four-propeller model helicopters for crop management, Slingshot technology, irrigation sensor remote data access, data collection and analysis strategies, improving cell and Wi-Fi signals in rural Nebraska, on-the-go sensing of soil properties, innovate techniques improving the dissemination of drought monitoring information for the U.S. and JD Apex through a farmer's eyes.

Advance registration is $110 if postmarked by Jan. 27 and $135 thereafter for NeATA members, $135 and $160 respectively for non-members. Those planning to attend can register by sending their name, address, phone number, email address and payment to the Nebraska Agricultural Technologies Association, 1206 W. 23rd St., Fremont, Neb. 68025-2504. Conference brochures and online registration are available at http://neata.org or by calling 402-727-2775.

Certified Crop Advisor continuing education credits are available to conference participants depending upon participation in pre-conference programs.

A block of rooms has been reserved through Jan. 17 for conference participants at the Midtown Grand Island Holiday Inn Hotel and Convention Center. Call 800-548-5542 for reservations.

The conference is sponsored by the Nebraska Agricultural Technologies Association (NeATA) and University of Nebraska-Lincoln Extension, a division of the university's Institute of Agriculture and Natural Resources. For more information, call Varner at 402-727-2775, email dvarner1@unl.edu.



USDA Natural Resources Conservation Service Extends CRP Signup

            USDA Natural Resources Conservation Service (NRCS) Chief Dave White today announced that the cut-off date for the current Conservation Stewardship Program (CSP) ranking period has been extended to January 27, 2012.  Producers who maintain a high level of conservation on their land and agree to adopt higher levels of stewardship are eligible for CSP payments.

            “We want to make sure that people who want to be considered for CSP during this first ranking period have the time they need to complete their applications,” White said.  “CSP is a very popular program and I encourage interested producers to apply at their local NRCS office as soon as they can.”

            CSP is a voluntary program that encourages agricultural and forestry producers to maintain existing conservation activities and adopt additional ones on their operations by providing financial incentives.  It has been a successful program in Nebraska.  In the last two years, over 1,600 contracts in 91 counties have been enrolled into CSP.

            CSP is available statewide. The program provides many conservation benefits including improving water and soil quality, wildlife habitat enhancement and adopting conservation practices that address the effects of climate change.

            Producers are encouraged to apply for CSP at their local NRCS office.  The program, authorized in the 2008 Farm Bill, offers payments to producers who maintain a high level of conservation on their land and who agree to adopt higher levels of stewardship.  Eligible land includes cropland, grassland, prairie, improved pastureland, non-industrial private forestland, and agricultural land under the jurisdiction of an Indian tribe.  Additional assistance is available to beginning or socially disadvantaged farmers and ranchers.

            A CSP self-screening checklist is available to help producers determine if CSP is suitable for their operation.  The checklist highlights basic information about CSP eligibility requirements, contracts obligations and potential payments.  It is available from local NRCS offices and at http://www.nrcs.usda.gov/wps/portal/nrcs/main/national/programs/financial/csp.



Tight U.S. Farmland Market Brings Fast Sales and Top Profits

The U.S. farmland market continues to be hot, with values reaching a two-year high, according to Farmers National Company, the nation’s leading agricultural services company. Availability of quality land is tight, bringing fast sales and top dollar for properties.

“What surprises us is the rate of increase over the last 12 months,” said Lee Vermeer, AFM, vice president of real estate operations at Farmers National Company. “Values are up 20 to 25 percent, compared to rises of five to 10 percent in 2010. We are looking for 2012 to be another profitable year for those selling land.”

Farmers National Company has seen record auction activity during the last six months as more properties are being sold at auction to maximize profits. Tight supply of quality land has also prompted buyers to look at less productive land that can be upgraded, according to Vermeer.

Strong grain prices are boosting profits for farmers, prompting them to pursue land in order to expand operations. In addition, cash rents in top production areas have increased 25 to 40 percent during 2011.
“Farmers make up 75 percent of the buyers in the market, despite continued strong interest from investors,” said Vermeer. “Land continues to be a tangible investment that has performed well, thus the demand.”
While Farmers National Company projects brisk activity to continue, there are market factors that could impact the future of farm values.

“Overall the upcoming year looks positive,” said Vermeer. “However, poor performance in the commodity market over the next year could bring downward pressure on land values. Good weather world-wide could result in a crop surplus, dropping prices. In addition, inflation would boost interest rates, negatively affecting land values.”

Iowa and Minnesota
Demand for quality land continues to be very strong in the North Central Region including Iowa, Missouri, Minnesota, South Dakota and North Dakota, according to Sam Kain, area sales manager for Farmers National Company in Iowa and Minnesota. Auction numbers in this region are up over 2010, leading to top sales prices for sellers.

“Farmers National Company has had over 130 land auctions during 2011 in my area,” said Kain. “Iowa values are up 32 percent from a year ago. An Iowa State University survey shows we are at an all-time high level here.”

In Iowa, top quality land is selling at over $9,500 per acre, with Minnesota values bringing in $7,500 plus per acre.

The combination of high commodity prices and low interest rates has provided farmers with surplus cash. These profits are being used to purchase additional land and expand operations.

“The bulk of buyers in our area are the farmers,” said Kain. “While land is still a good investment for investors, farmers have been very aggressive in picking up additional acres to increase profits.”

Colorado, Kansas, South Dakota, Central/Western Nebraska and Wyoming
Land prices in the western region of the farm belt are up 15 to 25 percent across the board in the past six months, according to JD Maxson, area sales manager for Farmers National Company in Colorado, Kansas, South Dakota, central/western Nebraska and Wyoming. A shortage of irrigated land is pushing up demand for dry land acres.

Price in this region is ranging from $5,500 to $9,500 per acre for high quality tillable acres, with location, soils and topography dictating price.

“Not only is demand for top land still rising, the availability of property for sale remains limited,” said Maxson. “Buyers are looking for land with high productivity levels, which is a challenge.”

According to Maxson, a lack of investment alternatives and the volatility of the stock market are driving even more non-traditional buyers into the market. However, 75 percent of buyers in this region are still farmer owner-operators.

“A year ago investors were buying more,” said Maxson. “Farmers have been much more competitive in the market today, adding land to their own personal portfolios and operations.”

In addition to farmer and investor activity, inherited farmland is being sold. According to Maxson these owners are taking advantage of the current market dynamics to generate cash.



CHS Posts 1st Quarter 2012 Earnings of $416.2 million

CHS Inc., the nation's leading cooperative, today reported earnings of $416.2 million for the first quarter of its 2012 fiscal year.  Earnings attributed to CHS operations for the period (Sept. 1, 2011 through Nov. 30, 2011) increased 106 percent over the $201.7 million for first quarter of fiscal 2011.   Revenues for first quarter of fiscal 2012 reached $9.7 billion, compared with $8.1 billion for the first three months of fiscal 2011, primarily reflecting continued strong values for the energy, grain and crop nutrients products that comprise the majority of CHS business.

Earnings were led by the Energy segment, with the majority resulting from improved margins generated by the CHS Refinery at Laurel, Mont., and the National Cooperative Refinery Association of McPherson, Kan., in which CHS currently owns nearly 75 percent. The company's propane, lubricants and transportation businesses also reported improved earnings for the first quarter of fiscal 2012, while earnings for the same period declined for its renewable fuels marketing and distribution operations.

While soundly profitable, earnings declined within the CHS Ag Business segment due to lower margins for the grains and oilseeds the company markets and processes, as well as for those handled by its Country Operations locally controlled retail businesses. The company's crop nutrients business reported a quarter-over-quarter increase in earnings due to increased margins.

 CHS reports results for its business services operations, as well as two food processing-related joint ventures, under the Corporate and Other category. CHS-owned insurance and financing businesses reported lower earnings for the first quarter of fiscal 2012, while earnings in its risk management business improved. The company's share of earnings from its 50 percent ownership of Ventura Foods, LLC, a vegetable oil-based food manufacturing business, declined due to decreased margins, as did those from its 24 percent CHS share of Horizon Milling, LLC, the nation's leading wheat miller.



Statement from NCBA President and Montana Rancher Bill Donald Regarding Extremist Attacks against Cattle Operation

National Cattlemen’s Beef Association President Bill Donald issued the following statement regarding alleged animal rights extremist attacks on Harris Ranch, located in Coalinga, Calif. While law enforcement has not confirmed who was responsible for the attacks, the North American Animal Liberation Press Office, publicly released information on Jan. 9, 2012, that included correspondence from the group reportedly claiming responsibility.

 “This is not only an attack on a family-owned and operated business; this is a domestic terrorist attack on our nation’s providers of food and fiber. This extremist behavior goes above mere activism and the freedom of speech. These criminals are threatening lives and causing substantial economic harm.

“Anyone concerned about the welfare of animals would not orchestrate attacks on individuals who are experts at caring for these creatures. Ranchers are undoubtedly the very best caretakers of livestock. Cattlemen and women implement the highest animal handling and food safety standards designed by veterinarians, animal behavioral experts and researchers.

“These extreme attacks are nothing more than bad people doing bad things and they must be prosecuted to the fullest extent of the law, just as any other criminal would be in this country.

“The National Cattlemen’s Beef Association strongly condemns any and all attacks against farming and ranching operations. As a rancher, a father and a proud grandfather, I feel for the families impacted by this senseless attack. As president of the leading national cattle organization, I applaud my fellow cattlemen for their efforts to provide the safest and highest quality beef to consumers in the United States and beyond.”



Agroconsult Cuts Brazil Soy, Corn Forecast on Drought

Agroconsult, one of Brazil's leading farm consultants, slashed its 2011/12 corn forecast Thursday by nearly four million metric tons (mmt) and cut its soybean forecast by more than 1.5 mmt on the drought that is castigating crops across the southern grain belt.

Brazil's summer corn output will total 36.5 mmt, still 2% higher than last year's crop of 35.9 mmt -- planting is up 9% -- but 9% lower than the December estimate of 40.3 mmt, said the consultancy.  Meanwhile, soybean output is now seen at 73.5 mmt, down 2% on last year's crop of 75.3 mmt and also 2% lower than the December forecast of 75.2 mmt.

According to Agroconsult Director Andre Pessoa, the severity of the drought is far from uniform and therefore the true extent of the damage will only become clear once harvesting is under way. But recent field surveys showed corn in a dire state in the center and north of Rio Grande do Sul, traditionally the No. 2 summer corn state, he said.



Brazil Announces Highest Ever Grain Harvest in 2011

The Brazilian Institute of Geography and Statistics has announced the results of the 2011 national grain harvest, revealing that the national cereal, pulse and oilseed harvest yielded 159.9 million tons over the year, which is 6.9 percent higher than the record harvest obtained in 2010 of 149.6 million tons, and 0.2 percent higher than the November 2011 estimate of 348,177 tons.

Brazil's 2011 grain harvest area of 48.7 million hectares is an increase of 4.7 percent from the harvested area in 2010, and an increase of 0.2 percent (39, 305 hectares) from November 2011.

The cultivation of rice, corn and soybeans - which together represent 90.3 percent of the volume of grain production - accounts for 82.4 percent of that total harvested area.

In comparison to the previous year, there was an increase in harvested areas of 1.7 percent (rice), 3.5 percent (corn) and 3.3 percent (soybeans); and an increase in production by 19.0 percent (rice), 0.1 percent (corn) and 9.2 percent (soybeans).

In December 2011, IBGE also announced estimates for the 2012 grain harvest area and grain production; noting that the production of cereals, pulse and oilseeds is expected to yield 160.3 million tons in 2012, which is 0.3 percent higher than the 2011 grain harvest.



New Humane Group Opposes Donations to HSUS

It seems that the Humane Society of the United States doesn't like the new kid on the block--the Humane Society for Shelter Pets. And the main reason is because HSSP is a group whose sole mission is to help shelter pets.

HSUS has been spending inordinate amounts of energy attacking the newly launched HSSP, according to watchdog group HumaneWatch.org. The reason behind HSUS's concern is because the new HSSP group advises animal lovers interested in helping pets to donate to their local shelter instead of funding HSUS.

The reasoning behind the new group’s advice is because HSUS gives less than one percent of its money to local shelters, while public polling shows that most Americans mistakenly believe that HSUS gives most of its money to pet shelters.

"Humane confusion is widespread in America," according to the HSSP website. "Despite the words 'humane society' in its name, the HSUS is not formally affiliated with any humane societies that operate at a city, county or regional level. HSUS does not run a single pet shelter and the vast majority of its funds are kept for its own agenda. One percent of its budget consists of grants to pet shelters."

Humane Society for Shelter Pets is the only national group whose primary mission is to help animals at local pet shelters, according to the group's website.



Poll: Farmers See Costs Rising

U.S. farmers expect another year of rising income and even higher costs, and plan to boost their plantings of soybeans and corn this year, according to a Reuters survey released on Wednesday.  Farmers said they expect to increase their corn plantings by 6 percent, soybean acres by 2.5 percent and wheat acres by 7.1 percent, according to a random survey of 462 farmers and ranchers at the American Farm Bureau Federation's annual meeting in Honolulu, Hawaii, which concluded this week.  Only cotton acreage was seen down, with respondents saying they would plant 11 percent less of the fiber this year.

Farmers expect a slight increase in income this year but are bracing for higher farm costs due to rising fuel and fertilizer prices.  Some 24 percent of respondents expect their farm income to rise by as much as 5 percent compared to 2011. But almost 40 percent of those surveyed predicted costs would rise between 5.1 and 10 percent, and 19 percent saw costs going higher than that.  USDA will release its first farm income estimates for 2012 in February. Its most recent estimate saw farm income up 19 percent in 2011 and anticipated a boost in 2012, but it said increasing farm production costs could slow income growth.

Although he said he does not forecast farm income or market prices, Farm Bureau Federation President Bob Stallman on Sunday said he expects the positive trends to continue.  "I hope that at the end of 2012, American agriculture has a fantastic year," Stallman said.

Farmers who participated in the survey said they expect corn and soybean prices to fall in 2012, while prices for wheat and cotton were seen unchanged.  But even with prices uncertain, farmers said they would plant more acres to grains this year.



Poll: Farmers Back Romney for President

U.S. farmers overwhelmingly support a Republican to be the next president, despite a strong farm economy during President Barack Obama's Administration, according to a Reuters survey released on Wednesday.

The farmers give a slight edge to Mitt Romney over Rick Santorum, as the best person to take on Obama and the Democrats in the November elections.

Some 74.7 percent of farmers and ranchers intend to vote for a Republican as president, according to a random survey of 462 farmers and ranchers at the American Farm Bureau Federation's annual meeting this week in Honolulu.

While traditionally socially and fiscally conservative, only 3.5 percent of the group said they would back Obama. Some 20 percent said they were still undecided, however.

In the race to challenge Obama, 30.5 percent of the 367 farmers who said they voted or will vote in a Republican primary this year backed Romney. Santorum, who lost last week's Iowa primary to Romney by just eight votes, came in second in the farm survey with 25.9 percent.  Gingrich finished third in the farm survey, with 18.8 percent, followed by Perry with 9.3 percent and Representative Ron Paul with 6 percent.

CONGRESS
Farmers in the survey also said they thought Republicans should control the U.S. Congress, although participants did not echo the anti-incumbent sentiment that has been talked about in the lead up to November.

About 77 percent of farmers said they think Republicans should control Congress. Fourteen percent said they did not know who should have power and 5 percent said they would prefer Democrats in Congress.

The Tea Party and Occupy Wall Street movements, coupled with abysmally low approval ratings for Congress in 2011, have led experts to predict voters could throw incumbents out of office.  The failure of the deficit-reducing "supercommittee" and a stalemate on a payroll tax cut hurt voters' opinion of Congress.

Farmers in the survey did not support this prediction, with 56.1 percent of survey participants saying they plan to vote for their current representatives to return to Congress. Twenty-five percent said they would not vote for incumbents, and 19 percent did not know or did not respond to the question.