Friday May 4 Ag News

Informa Raises Winter Wheat Crop Estimates

Private analytical firm Informa Economics estimated U.S. winter wheat production for 2012 at 1.656 billion bushels, up from the firm's April 4 forecast of 1.631 billion, trade sources said Friday.

By class, Informa pegged U.S. production of hard red winter wheat at 1.008 billion bushels, soft red winter wheat at 421 million and winter white wheat at 227 million.

The firm forecast U.S. seedings of spring wheat at 13.476 million acres, up from U.S. Department of Agriculture's March estimate of 11.976 million.

Informa also adjusted its estimates of U.S. corn and soybean plantings for 2012. The firm pegged U.S. 2012 corn plantings at 96.124 million acres, up from its March figure of 95.5 million and above USDA's March 30 forecast of 95.864 million.

Informa forecast U.S. 2012 soybean plantings at 75.822 million acres, up from its previous forecast of 75.1 million and up from USDA's March 30 figure of 73.902 million.

SOUTH AMERICAN CROPS
Informa forecast Brazil's 2011/12 soybean production at 66 million tonnes, on par with USDA's latest estimate.

The firm pegged Brazil's corn crop at 66 million tonnes, above USDA's April estimate of 62 million.

For Argentina, Informa estimated 2011/12 soybean production at 40 million tonnes, below USDA's April estimate of 45 million. Informa estimated the Argentine corn crop at 21.5 million tonnes, on par with USDA's latest forecast of 22.0 million.

USDA was scheduled to release its next U.S. and world supply/demand report on May 10.



Senate Appropriations Committee Passes Ag Approps Bill

On the same day that the Senate Agriculture Committee was marking up the 2012 Farm Bill last week, the Senate Appropriations Committee passed the Fiscal Year 2013 agriculture appropriations bill. Both bills now await action by the full Senate. Overall discretionary spending in the Senate ag approps bill is $20.8 billion, a slight increase from last year’s $19.6 billion.

Of particular note is the committee’s support for the U.S. Department of Agriculture’s competitive research program, the Agriculture and Food Research Initiative (AFRI), which received a funding increase from $264 million to $298 million. AFRI funding has been flat for two years, despite proposals for increases in the president’s budget. ASA has strongly supported AFRI, recognizing that new funding for ag research is most likely for the competitive program. The Senate bill also provides funding for foreign food assistance programs, including $1.47 billion for the Food for Peace Act, the same as last year, and $184 million for the McGovern-Dole Program, which provides school meals to the world’s poorest children.



ASA and Coalition of Other Farm Groups Urge Speedy Senate Consideration of Farm Bill

In a letter to Senate Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) this week, the American Soybean Association (ASA) and stakeholder groups from across agriculture urged the Senate to bring the Agriculture Reform, Food and Jobs Act of 2012, more commonly known as the Farm Bill, to the floor for consideration as quickly as possible.

"Last week, Chairwoman Stabenow, Ranking Member Roberts and the entire Senate Agriculture Committee took a huge step forward in advancing this key legislation for America’s farmers. We commend them for their work and we look to the Senate to keep the progress moving by bringing the bill to the floor," said ASA President Steve Wellman, a soybean farmer from Syracuse, Neb.

"The stakeholders we represent need to know details of the programs which will be in effect in 2013 as soon as possible," the letter stated. "Timely action will also enhance prospects for completing new legislation this year rather than needing to extend current program authorities."

The groups noted that the proposed legislation’s impact will not be limited to farm communities. "This is one piece of legislation upon which all Americans depend, urban as well as rural," said the groups.

Additionally, the groups underscored their collective goal of passing a farm bill this year, expressing a balanced desire to achieve organizational goals while also succeeding as a larger agricultural community. "With limited time remaining before expiration of current program authorities, time is of the essence," wrote the groups. "While each of our respective organizations will continue to work to accomplish our key priorities, the farm bill must move forward."



DNR Responds to Fire at Co-op in Woodbury Co.

A fire Tuesday afternoon at a fertilizer warehouse on the south side of Hornick caused one home to be evacuated for the night after firefighters put out the blaze.

The Iowa DNR responded Tuesday evening to ensure that runoff from rain, firefighting efforts and fertilizers did not reach a ditch on the west side of the Western Iowa Cooperative. The ditch drains to the West Fork of the Little Sioux River.

Local officials were able to contain the firefighting runoff with a small dam built before rain storms hit Tuesday night. They built sand barriers in road ditches to hold runoff from the storms. Firefighters extinguished the fire Tuesday, but runoff contained liquid fertilizer, water and a small amount of herbicide.

A salvage company will remove and dispose of liquid runoff and the remaining fertilizer. The DNR will continue to monitor the situation and the clean-up.

The DNR does not plan to take enforcement actions.



Council Works Toward Implementation of US-Colombia FTA: TRQ Administration, Colombia Biotech Regs Under Discussion

The May 15 implementation date for the U.S.-Colombia Free Trade Agreement (FTA) is fast approaching, and several key details are yet to be settled. Among these is the development of a mechanism for administering the FTA’s tariff rate quotas (TRQ’s) for U.S. corn and grain sorghum. A USGC team met last week in Bogota with U.S. embassy officials and industry officials to further efforts to finalize the details.

“May 15 was an aggressive deadline,” said Kurt Shultz, USGC’s Regional Director for Latin America and the Caribbean. “We are glad the Colombian government is pressing ahead so quickly. Implementation of the FTA is very important to the Colombian feed industry and consumers as well as to U.S. exporters. But there is still some work to be done.”

The key issue is how to allocate remaining sales as the TRQ begins to fill. As total imports begin to approach the TRQ limit, both sellers and buyers need to know if a current sale will fit within the quota. In essence, Colombian trade officials need to be able to allocate the remaining space in a timely and transparent way.

“Since we are already in May,” said Shultz, “the TRQ is not likely to fill completely in the first year. That gives us a little time before traders start to bump against the ceiling. But this is something that needs to be ironed out as soon as possible.”

Another key issue is Colombia’s biotech labeling requirements for raw material imports destined for human consumption containing genetically modified organisms (GMO’s). Currently, the Colombian approval process for biotech events is not synchronous with the U.S. This will become as growing issue as U.S. sales increase thanks to the FTA. USGC is continuing to work with the Colombian government and industry officials to develop a workable solution.



NASS to Publish Farm Labor Report

The National Agricultural Statistics Service (NASS) will publish the biannual Farm Labor report on Thursday, May 17 at 3 p.m. EST. NASS interviewed nearly 12,000 farmers and ranchers across the United States to obtain information on the number of agricultural workers, hours worked, and wage rates at the national and regional levels. The information in this report has many uses, including ensuring that the Department of Labor make accurate decisions about its H-2A program, which allows the department to issue certificates to agricultural producers, allowing admission of temporary non-immigrant alien farm workers for seasonal farm labor.



Oil Hits New Low on Weak Jobs Data

The price of oil dropped below $100 per barrel for the first time since February following a disappointing U.S. jobs report and some signs of a slowing world economy.

Benchmark West Texas Intermediate crude fell as low as $97.83 Friday before edging back to $98.21 per barrel in New York. Crude prices are down 4.2 percent for the day.

The drop is part of a sustained decline in oil futures that should push U.S. retail gasoline prices lower ahead of the summer driving season.

Oil prices have been falling since Wednesday as analysts and traders increasingly focus on the economy. The Labor Department said Friday that the economy added just 115,000 jobs in April _ far fewer than the pace of hiring earlier this year. Government data shows that U.S. oil consumption dropped 5.3 percent in the first quarter, and supplies have been growing for the past six weeks and hit a 22-year high in Cushing, Okla., where benchmark crude is delivered.

The European economy also is slowing down as eurozone governments on that continent struggle with oppressive debt.

"We're fearful that the economy is slowing more than we originally thought," PFGBest analyst Phil Flynn said.

Oil has crossed the $100 mark 21 times during the past year. It rose as high as $113.93 per barrel last April and fell as low as $75.67 per barrel on Oct. 4.

As demand falls in the West, OPEC has been delivering more oil to world markets in an effort to force prices even lower. The fear is that another broader recession would destroy energy demand as it did during the economic crisis, and hit oil exporting countries hard. Western nations are planning talks with Iran over its nuclear program, which has eased fears of a protracted standoff in the Middle East. Concerns about Iran, which is believed to be building a weapon, helped push benchmark oil to its peak near $110 per barrel earlier this year.

The recent drop in oil has helped make retail gasoline cheaper in the U.S. Pump prices have declined by an average of 13 cents per gallon since peaking this year at $3.936 on April 6. The national average hit $3.802 per gallon on Friday, according to auto club AAA, Wright Express and Oil Price Information Service.

OPIS chief oil analyst Tom Kloza said gas prices will head lower for the rest of the year. Kloza expects the national average to drop as low as $3.50 per gallon before the Fourth of July.



Ethanol Rocks: NCGA Launches Video Contest

Ethanol Rocks LogoAs the E15 ethanol fuel blend prepares for its national debut, the National Corn Growers Association calls on students to channel their "inner Spielberg" and submit entries in the Ethanol Rocks video contest.

"Today, we're distributing Ethanol Rocks video contest application and rules packets online and to FFA chapters and members of the National Science Teachers Association," said Chad Willis, chairman of NCGA's Ethanol Committee. "Statistics and studies confirm that ethanol keeps the cost of gasoline down and reduces harmful emissions into the environment, and we're looking for creative ways to tell ethanol's great story. By giving American youth a creative platform, we hope to discover a wide variety of interesting perspectives on the benefits of ethanol."

The contest is looking for short videos (2 minutes or less) from active high school and college students that highlight the benefits of ethanol fuel blends to the U.S. environment and economy.

Students from all scholastic backgrounds and majors are eligible, and entries can be submitted by individuals, groups or organizations. Judging will be based on criteria such as creativity, impact and general appeal. One first place winner will receive $1500 and one $500 second place award will be given - each at two levels, for high school and college.

Entry deadline is 5 p.m. CST Monday, October 15.



Fuzzy Brown Moths Abundant in Iowa

The Iowa State University Plant and Insect Diagnostic Clinic said it has been the week of the fuzzy brown moths, or FBMs -- the not-so-technical term entomologists use to refer to hundreds of moth species that fit this description. Many moth species can be called FBMs and several species have been flitting around Iowa in abundance.

The diagnostic clinic received numerous moths for identification this week. "Homeowners get concerned when there are so many moths around their home and crop producers have reason to be concerned because several crop pests fall into the FBM category," said Laura Jesse, clinic director. "So far no serious crop pests have been among the specimens submitted for diagnosis."

One FBM that crop producers watch for is the black cutworm. Jesse and others are monitoring black cutworms and made scouting recommendations to corn producers this week.

"Pictures and reports submitted so far have been determined to be army cutworm moths and lucerne moths," Jesse said. While the moths are a nuisance, Jesse does not recommend treating for them, for several reasons:

-- They don't cause plant damage. If they eat, they only feed on pollen and nectar.

-- Spraying foliar insecticides is not a cost-effective option for these night-flying moths. Field applications are particularly not effective because the adults are not feeding on young corn.

-- Moth species that do not eat as adults will die in less than a week. This is expected to be a short term annoyance.

-- Reducing outdoor lighting near homes at night is the best way to keep the masses away from homes. They are attracted to windows as well, but as long as screens are in good repair they will not get indoors.

-- There appears to be a variety of species active right now so it is difficult to determine where they will lay eggs and whether or not the caterpillars will become a pest. At this point, it is just have to wait and see.

-- Lucerne moth caterpillars feed on a wide variety of plants and grasses including alfalfa. They are not considered pests in Iowa. Army cutworm moths also are commonly called "miller moths." The adult moths are migratory and well known for gathering around homes and accidentally getting inside.

Normally the army cutworm moth migration is more noticeable in states to our west -- Kansas, Nebraska and Colorado -- but it seems that this year Iowans have the pleasure of more moths than normal, and earlier. Army cutworm moths are annoying, but harmless.

"We do not expect an increase in damaging caterpillars because moths are abundant," Jesse said. "We will have to wait and see if there is more caterpillar activity than normal, but there is no need for preemptive treatments."