Saturday, December 30, 2006

AT&T makes rural broadband promise to secure merger approval

One of several concessions AT&T made to secure FCC approval for its merger with Bellsouth is to install at least 30% of its new broadband lines in rural and low-income areas. This could have implications for farmers and ag businesses in the South and California, where the combined operations will be the dominate phone service provider.

The agency gave final approval to the merger Friday, making it the largest in telecommunications history. The $84 billion deal puts a third of the nation's phone lines under AT&T ownership and also makes it the largest provider of high-speed internet service in the nation. The company also gains control of Cingular, the nation's largest cell phone provider.

How quickly or how far out in the country AT&T pushes high-speed service remains to be seen. There are technical challenges to "building out" this kind of service from town. DSL subscribers must be within a specific distance of switching equipment, and that distance tends to be measured in hundreds of yards. Homes and businesses that are miles from town are typically too far away for high-speed access.

Two related concessions AT&T made were to reduce high-speed connection fees to $10 per month for customers now using their telephone services and $19.95 for customers who want broadband service but use other telephone companies.

COMMENT:

Anonymous said...

I am a first time rural consumer. Meaning I moved to rural America five years ago. I have had DSL and cable on the west coast prior to moving to Florida. Now I am left with an extreme disadvantage. The electric company tells me they won't ever offer BPL (Broadband over Power Lines) in the rural area. Though they are considering the urban areas. Bellsouth had informed me that DSL would never make the 12 miles out to my home from town. Cable, of course, is just a dream. We're stuck with 26.4 modems and satellite. When it rains hard satellite is rendered completely useless. Speaking of which, I just paid 964.15 to get a satellite set-up. Only $99.00 a month! No discounts when it rains. So one needs to hope for good weather. How much do you city folks pay for your broadband? Ironically, rural area communities minimum wage is much less than the city. $6.25 here. I am just one of the lucky ones that can afford a bit more. But, I honestly feel like I am being swindled. So next time you go camping, tubing, canoeing, whatever in rural America be kind to the person behind the counter - They are using a 26.4 modem most likely!

Thursday, December 28, 2006

U.S. organic cotton acreage up slightly

From a press release issued this week by the Organic Trade Association:

U.S. acreage planted to organic cotton in 2005 increased 14% from that planted the previous year, according to a 2006 survey conducted by the Organic Trade Association (OTA) and funded by a grant from Cotton Incorporated.

In results released Wednesday, OTA's organic cotton survey found 13 farmers grew and harvested organic cotton in the United States during 2005. Farmers in 2005 planted 6,325 acres of organic cotton, an increase of nearly 14 percent over the 5,550 acres planted in 2004. Most was upland organic cotton, and most organic cotton was grown in Texas, with limited acreage in California and New Mexico.

In addition, acreage planted in 2006 totaled 6,254 acres. Harvesting figures for 2006 are not yet available.

The survey was mailed to 47 people in seven states; 13 farmers returned completed surveys that met the criteria for analysis (namely, they grew organic cotton in 2005). Four additional responding farmers did not grow organic cotton in 2005.

Based on survey results and additional information from the Texas Organic Cotton Marketing Cooperative, approximately 8,655 bales of organic upland cotton and 975 bales of organic pima cotton were harvested in 2005, compared with 6,814 bales harvested in 2004. Overall, the number of bales of organic cotton harvested increased 41 percent from 2004 to 2005.

As in 2004, respondents indicated that their biggest challenge in marketing organic cotton is competition from international organic cotton producers. The average price per pound received by farmers during 2005 ranged from 80 cents to $1.05 for organic upland cotton. No organic pima cotton prices were provided during 2005.

Respondents expressed the need for more educational resources on organic farming from local cooperative extension offices. Their chief resources for staying current with organic standards were communications with other farmers and resources provided by OTA.

Friday, December 22, 2006

U.S. catfish growers continue to feel import pinch

The U.S. catfish industry - based mainly in the South - continues to take a hit from imported Asian fish. From Thursday's USDA report:

Farm-raised catfish processed during November 2006 totaled 45.7 million pounds round weight, down 2 percent from November 2005. The average price paid to producers was 83.7 cents per pound for November 2006, up 0.1 cent from last month and 11.3 cents above a year ago.

Freshwater imports of Ictalurus spp., Pangasius spp., and other catfish of the order Siluriformes for October 2006 totaled 10.7 million pounds, up significantly from the amount imported in October 2005. Imports were from Cambodia, China, Indonesia, Malaysia, Spain, Thailand, and Vietnam. The Ictalurus spp. imports totaled 1.41 million pounds, which were all from China.

Click here for the full report.

Thursday, December 21, 2006

DPL shareholders approve merger

Delta and Pine Land Company today announced that, at a special meeting held today in Memphis, Tennessee, that its shareholders "overwhelmingly" approved the merger with Monsanto Company, entered into on August 14, 2006. While the merger has been approved by Delta and Pine Land shareholders, certain regulatory approvals must be obtained before the merger can close.

Tuesday, December 19, 2006

Syngenta cites underlying "vigor trigger" effect with Cruiser

Syngenta this month released findings that support its case that thiamethoxam – the active ingredient in Cruiser seed treatment insecticide – provides a yield enhancement effect, even in the absence of insects.

In a web presentation last week, company representatives outlined research results in laboratory growth chambers and sterile greenhouse conditions that showed faster growth characteristics where seed were treated with Cruiser.

Independent tests were conducted by universities in Germany and Brazil over the last 3 years.

Researchers concluded that thiamethoxam increases the production of specific proteins that strengthen the plant’s ability to cope with various types of stress.

The effect was referred to as the “vigor trigger.”

“Thiamethoxam is water-soluble, meaning it can rapidly move to the plant’s cells,” said Michael Schade, Cruiser Global Technical Manager. “In the plant cells, it triggers various physiological reactions, and those reactions are measurable. For a biochemist, it’s easy to see an expression or a shift of function of proteins, which you also could refer to as enzymes.

“In fact, thiamethoxam improves the level of specific and important plant proteins. The key to the vigor trigger is that we’re not just talking about any proteins. The functions are related or linked to various stress-defense mechanisms in the plant that let it cope under tough growing conditions.”

Stresses cited in the presentation included drought, low pH, high soil salinity, stress that leads to protein degradation, aluminum toxicity, wounding from pests and environmental factors, pathogen attacks and low micronutrient levels.

The effect, said Schade, gives plants a better start, which sets them up to develop more root mass and canopy, shade out weeds, conserve moisture and more vigorously set fruit and fill a crop.

Monday, December 18, 2006

Pioneer claims bragging rights in corn yield contest

From a Pioneer press release we received today:

DES MOINES, Iowa -- Growers planting Pioneer brand corn hybrids won 23 of 27 categories in the 2006 National Corn Growers Association (NCGA) Corn Yield Contest announced today.

Farmers growing Pioneer hybrids finished in first-place in seven national classes. Among second-place winners, those growing Pioneer hybrids won eight categories and, among third-place winners, growers planting Pioneer hybrids won eight of nine categories.

The highest yield winner in the contest was Kip Cullers, Purdy, MO, who planted Pioneer hybrid 31N28 with a yield of 347.27 bushels per acre. He won in the national No Till/Strip Tip Irrigated category. Cullers was also the second-highest yielding grower in the contest by finishing second in this category with Pioneer hybrid 31P41 with 338.24 bu/ac. He also finished second in the Ridge Till Irrigated national category with Pioneer hybrid 33N59, producing 297.71 bu/ac.

This was a banner year for Cullers. Also in 2006, he posted the highest verified soybean yield on record by growing 139.52 bu/ac with Pioneer soybean variety 94M80.

"Each year, we're excited to see the continued success growers have with Pioneer products in the NCGA Corn Yield Contest," said Dean Oestreich, president of Pioneer Hi-Bred International, Inc. "We're especially impressed with the high yields our customers have this year with Pioneer hybrids. That says a lot about the value Pioneer hybrids bring to the bottom line of all growers.

"In 2007, growers will be challenged to generate still higher yields to meet the growing demand for corn for ethanol and other traditional markets," Oestreich added. "We're very confident our customers will meet that need, especially with the high-yielding choices of Pioneer corn hybrids available with the latest genetics and technologies to match the production demands of each acre."

The NCGA Corn Yield Contest is an annual national competition among corn growers with the goal of producing the highest yields. Growers compete in nine corn production classes, including non-irrigated (A and AA), no- till/strip-till non-irrigated (A and AA), no-till/strip-till irrigated, ridge- till non-irrigated (A and AA), ridge-till irrigated and irrigated classes. For more information about Pioneer corn hybrids grown by contest winners and the broad range of top-producing Pioneer products, growers should contact their local Pioneer sales professional. For a list of the national winners, yield totals and hybrid numbers, go to http://www.pioneer.com/media/ncga.htm .

Rice seed producers take exception to federation's testing recommendations

A group of influential parties in the rice seed industry took exception last Friday to the USA Rice Federation’s November recommendations that seedsmen test for the presence of Bayer CropScience’s LL601 and LL62 genetic material in certified seed.

The pronouncement came out of a forum held in Memphis late last week that was attended by about 60 people, including seed producers and seed processors, state seed certification agencies, rice growers and industry representatives.

A release – issued today by Horizon Ag “on behalf of the Clearfield rice seed channel” – outlined points agreed to by the group. Among them was the observation that the federation recommends testing for LL601 and LL62, even though seed containing these “events” are not regulated by USDA.

The purpose of the meeting, according to the release, was “to discuss and formulate a response from the rice seed industry to the recent recommendations proposed by the USA Rice Federation regarding the discovery of LL601 event in certain stocks of Cheniere rice seed.”

The released stated that seedsmen will work “with the industry to help get commercial seed stocks of Cheniere out of the system, and the group supports future foundation seed testing for traits that may have negative impact on the domestic rice industry.

But the group’s statement said that seedsmen “will not run any tests on commercial seed stocks to provide any documents that are not required by law. The retail invoice for certified seed shall be the only documentation delivered to purchasers at the time of sale.”

In a list of agreed points, the group said that the federation’s proposal “will require substantial additional costs to the industry for no useful purpose, creating the risk that legal seed stocks could be eliminated from the marketplace.”

The group “respectfully” requested that the federation reconsiders its “testing regime requirements of the certified rice seed channel.” The group further agreed that it would “welcome an opportunity to present the seed channel position to the Federation.”

The position statement was adopted by a role call vote of the certified seed rice producers and processors in attendance, according to the release, and was approved by a unanimous vote, with one abstention.

The meeting was chaired by Michael Hensgens of G&H Seed, who was asked by the USA Rice Federation to serve as the designated liaison to the rice seed channel, according to the release. The agenda included presentations by Hensgens; Andrew LaVigne, president and CEO of the American Seed Trade Association; Michael Thompson of BioDiagnostics, Inc.; Donna Mitten of Bayer CropScience; Chet Boruff of AOSCA; Darrell Little of the Arkansas State Plant Board; and Alan Morgan of Jimmy Sanders, Incorporated.

Hensgens noted that the federation recommendations issued on November 28 were in contrast to the federation’s earlier statement in October 2006 that the European Union was seeking to impose an overzealous and unnecessarily restrictive testing regime on rice. Presentations and discussions during the meeting focused on testing protocols, economic considerations, the recent approval by USDA of LL601, the seed stocks tested to date for the presence of LL601, and the advisability of an industry focused effort to remove Cheniere variety rice from the channel.

The presentations were followed by an open forum for discussion of the issues and a question and answer session for all attendees.

FMC, BASF announce supply agreements

From a press release we received this afternoon:


FMC Corporation (NYSE: FMC) and BASF announce several new multi- year supply agreements that will allow both companies to expand their crop protection portfolios in several key crop segments.

The agreements will grant BASF access within the U.S. to a proprietary insecticidal chemistry owned by FMC -- zeta-cypermethrin. FMC will gain access within the U.S. to two active ingredients owned by BASF, pendimethalin and imazethapyr.

BASF will begin marketing new Respect(TM) insecticide in 2007 -- based on zeta-cypermethrin -- for control of several economically significant insect pests in a range of crops, including vegetables, corn, soybeans, cotton, wheat, and alfalfa.

"This agreement allows us to expand our portfolio of crop protection tools that help growers boost the yields and quality of their crops," says Andy Lee, Director of U.S. Crop Operations with BASF. "Respect insecticide will be a strong fit with our current portfolio because it can be used as a stand-alone crop protection treatment or in tank-mix combination with other products."

Lee notes that it is part of the BASF growth strategy and just one of the insecticide innovations BASF plans to bring to growers in 2007.

FMC will be developing premix products with pendimethalin and imazethapyr with its own proprietary herbicide portfolio over the next two years for use in soybeans, sunflowers and tobacco. "The premixes we will be developing will provide growers with excellent herbicide solutions to control tough weeds and grasses in those markets," says Aaron Locker, product manager with FMC Corporation.

"The announcement of this joint agreement and the launch of new FMC premixes into the soybean, sunflower and tobacco markets in the future is an important component of the FMC strategy to recognize market needs and respond quickly to bring needed technology to both growers and retailers," according to Locker. "This agreement is consistent with the FMC innovation strategy of being the designer and marketer of novel product solutions by developing premix options to better meet our customers' needs."

Friday, December 15, 2006

Tracking the dollar downward

One thing I’m not reading much about in policy and commodity analysis right now is the overall weakness of the U.S. dollar.

In one recent tracking of a 365-day period, the dollar had fallen almost 13% against the Euro, which included a 4.28% drop in the last 30 days. In the same 365 days, it had fallen 3% against the Japanese yen and 2.6% against China’s yuan. Against a broad selection of currencies, the greenback was off by just over 5.5% in that one-year time frame.

Implications for farmers?

A weakened dollar makes what you grow a little cheaper in the export market.

But, you also could see an uptick in what it costs to buy foreign-made goods and inputs. The shift against the Euro might affect certain lines of European-made equipment and ag chemicals, for example. Anything made from imported oil will likely be affected.

On a wider basis, a cheaper dollar should lessen the trade deficit this country has with most of our main suppliers, economists point out.

Compared to other currencies, the dollar has actually been creeping downward since March 2002, according to weighted averages calculated by the U.S. Federal Reserve Board.

All kinds of factors are at play, according to a recent report in the Christian Science Monitor, and none of them seem to point toward an immediate reversal in the dollar’s buying power. As the Monitor’s Mark Trumbull noted:

European economies are strengthening at the same time U.S. bond yields have weakened due to concerns about our economy. Inflation is a lingering concern, as well, in terms of the U.S. economy.

Perception of the United State’s as a military power influences the currency’s strength, and being bogged down now in Iraq is a liability.

China, which is sitting on a trillion dollars in reserves, has indicated it will put less of its assets into U.S. dollars as it has in the past.

At some point, the trade balance will have to shift downward. As Trumbull pointed out, the U.S. is borrowing $2 billion a day to pay for imports, and our trade deficit now is equivalent to about 7% of the gross domestic product, up from a scant 1.7% just 10 years ago.

Firm claims 5-gal. of biofuel possible from bushel of soybeans

U.S. Sustainable Energy Corporation (USSEC) announced this week that it has purchased a 35-acre site in Natchez, Miss., where it will manufacturer a biofuel that it claims can be run in both gasoline and diesel engines. USSEC also asserts that its proprietary process also can produce 5 gallons of this fuel from a bushel of soybeans, compared to about 1.5 gallons of biodiesel that can be extracted from a bushel of beans.

A video on the company's web site demonstrates the company's fuel being used in a variety of gasoline and diesel engines, including a generator set up to power the city hall of Vidalia, La.

The video indicated that there were two grades of the fuel, referred to as "cuts". Cut 1 was used in gasoline engines and cut 2 was used in diesel engines.

In the presentation, USSEC CEO John Rivera admits that his company makes claims that he would find hard to believe if he were "on the other side of the podium." Rivera stated that production costs for a gallon of the company's biofuel would be as little as 50 cents per gallon. It would be possible, he also said, to replace all the nation's imported diesel fuel needs with 3 plants the size of the one planned for Natchez.

Click here to go to the company's web site.

(Are you involved in Southern agriculture? Click here to subscribe to our free crop and pest reports, covering cotton, rice, peanuts, soybeans and wheat.)

Thursday, December 14, 2006

Hank Beachell, noted rice breeder, dies at 100

Dr. Henry (Hank) Beachell - a 1996 World Food Prize winner who developed a high-yielding rice variety that fed the malnourished and poverty-stricken - died Dec. 13. He was 100.

Beachell was a retired Texas Agricultural Experiment Station researcher. He was best known for improving a rice variety used as a genetic base for most of today's varieties. Because of this, he was dubbed as the person most responsible for the "Green Revolution" in rice.

Dr. Ed Runge, professor and former head of the soil and crop sciences department at Texas A&M University, said Beachell "was the person most responsible for development and distribution of the high-yielding, short-statured rice varieties adopted throughout the world. And in particular Asia, beginning with IR 8 in 1966, and he's fondly known as the father of short-statured stiff straw, high-yielding semi-dward varieties."

Beachell shared the World Food Prize award with Dr. Gurdev Singh Khush, who began working with him at the International Rice Research Institute in 1967. In 1987, Beachell received the Japan Prize of the Science and Technology Foundation of Japan.

Beachell was a joint employee of the U.S. Department of Agriculture and the Experiment Station during his career. He worked at the Beaumont station - now the Texas A&M Agricultural Research and Extension Center at Beaumont - from 1932 to 1963. While at Beaumont, he helped introduce nine rice varieties, which eventually counted for more than 90 percent of U.S. long-grain rice production.

He also took part in research and teaching tours of rice production areas in India, Central and South America.

After retiring from his research position in at Beaumont in 1963, he accepted a position at the rice institute in the Philippines. While there, he helped discover the IR8 rice variety released in 1966. The variety set yield records ranging from 6 tons to 8 tons of grain per hectare (per 100 acres) on experimental fields in several Asian countries, more than doubling previous yields.

- Texas A&M Press Release

A measure of excitement about corn in Arkansas

Jason Kelley, Arkansas Extension Corn Specialist, said that 40 people attended a corn meeting today in Jonesboro, which is a pretty clear indication to him that people are excited about corn and will be growing a good deal of the grain in 2007.

"In the past several years, maybe 5 or 10 people would have attended, and they really wouldn't be all that interested," he said. "But the folks who came today were interested, interactive and asking questions. They want to make top yields in 2007."

Tropical spider wort now a reality in S. Mississippi

Tropical spider wort - AKA Benghal dayflower - was identified this year in 6 cotton and 4 peanut counties in George and Jackson Counties in south Mississippi, according to a report in this month's Agronomy Notes, published by the Miss. State University Cooperative Extension Service. Weed scientist John Byrd reported that it also had turned up in one field of ryegrass.

This weed - which can be annual or perennial - has been a tough customer in parts of Alabama, Florida and Georgia, particularly where growers rely heavily on glyphosate-resistant crops.

Click here to see Byrd's report, which appears on page 6 of the December issue.

Weather, markets cut Miss. ag income by 11%

Flooded markets and dry fields were leading causes of an estimated 11% decline in Mississippi’s farm value of production for 2006. John Anderson, agricultural economist with Mississippi State University’s Extension Service, is predicting a total agricultural value of $5.8 billion, which includes a 29% decline in government payments. Mississippi’s total farm-gate value in 2005 was $6.5 billion.

“Given the level of adversity in production this season, it is not surprising that estimates of the state’s value of agricultural production are down,” Anderson said.

Poultry: Fueled by international fears of avian flu, poultry, the state’s No. 1 crop, is expected to decline 10% to a total value just under $2 billion. “We’ve got clean chickens, but when avian flu concerns started hitting real big, a lot of countries began cutting off all imports of poultry,” said Tim Chamblee, Extension poultry specialist.

Forestry: At No. 2, forestry still faces a timber market flooded by hurricane-damaged trees. Marc Measells, a research and Extension associate with MSU’s Department of Forestry, said forestry is expected to post a value near $1.3 billion, almost 10% below 2005’s value. “The decreased value for 2006 is a result of the decline in prices for all hardwood and pulpwood,” Measells said. “As a result of the massive Hurricane Katrina recovery efforts, the standing and delivered timber prices fell significantly across the state in 2006.”

Cotton: In this land where cotton is king, Mississippi fields suffered from a drought during most of the growing season, and most yields were dependant on sporadic showers and irrigation. “The irrigated cotton really brought our yield up this year,” said Tom Barber, Extension cotton specialist. “Unfortunately, the effect of low cotton prices and high input costs will probably drive next years acreage to the lowest levels in years.” Anderson said the state’s No. 3 crop should yield a value near $583 million, a $50 million increase over 2005.

Soybeans and corn: Anderson is estimating the value of soybeans at $246 million, down 28% from 2005. Corn’s value should be near $94 million, down 7%.

Livestock: “The state’s beef and dairy producers suffered from poor pasture conditions and a lack of affordable alternative feedstuffs,” Anderson said. “Although cattle prices remain historically high, the market has declined from 2005, especially at the end of the year. The contrast of the slightly smaller 2006 calf crop and heavy culling in response to limited forage makes it hard to forecast cattle’s value.” Anderson said the dairy industry experienced another difficult year on the heels of Hurricane Katrina’s damage. With lower milk prices compared to 2005 and production down significantly, the value of dairy in the state is expected to be down by as much as 25% from the previous year, he said.

Other crops: This marks the first year USDA is reporting peanut acreage and yields for Mississippi. Acreage in the state increased significantly since the ending of the quota system in 2002. While the 3,000-pounds-per-acre yields were less than the 3,200 pounds they reached in 2005, prices were steady, and acreage expanded to increase the value about 3% from $7.6 million to $7.8 million in 2006. Other crop value estimates and their percentage change from 2005 include: catfish at $273 million, up 2%; rice at $118 million, down 7%; horticultural crops at $85 million, up 7%; sweet potatoes at $74 million, up 19%; hogs at $62 million, up 11%; and grain sorghum at $2 million, down 36%. The total government payments were $610 million, down 29%.

- Source, Mississippi State University Press Release By Linda Breazeale

Mississippi may see cotton slip below 1 mil. acres

Cotton’s reign as king of Mississippi’s row crops remained unchallenged in 2006 as it posted an estimated $583 million production value, but growers paid a high price to bring it to harvest. Cotton’s estimated value rose 9 percent from the state’s $533 million production in 2005.

“It was a real frustrating year,” said Tom Barber, cotton specialist with the Mississippi State University Extension Service. “Some people picked the best crop they’ve ever picked, but it was probably the most expensive crop they’ve ever paid for.”

With the exception of localized showers, it didn’t rain from April when cotton was being planted until September across most of the state. Barber said by July 25 when cotton was filling out bolls, the drought was categorized as severe across the majority of the state, and extreme along the Gulf Coast. With few exceptions, the only good harvests in 2006 were from irrigated acres. Barber said just 40% to 45% of the state’s 1.2 million acres of cotton were irrigated.

Cotton prices have been about 55 cents a pound, but with high irrigation pumping costs, many producers had to have excellent yields to break even. Diesel fuel averaged about $2.20 cents a gallon, well above fuel costs in 2005. Barber said the effect of low cotton prices and high input costs is going to drive the 2007 cotton acreage in Mississippi to the lowest levels its been in years. “My guess is we’ll lose 25% to 30% and go below a million acres,” Barber said.

On top of the drought, producers fought a significant battle with seedling disease and had to replant many acres. After the crop was established, spider mites became a problem. In 2005, 300,000 acres were treated for spider mites in Mississippi, according to Angus Catchot, Extension Entomologist. “Up until that point, that was pretty much unprecedented for spider mites in Mississippi, but this year, we sprayed about 415,000 acres,” he said.

Budworm and bollworm numbers also spiked, and aphid numbers increased and required treatment on many acres.

- Source, Mississippi State University press release by Bonnie Coblentz

Fire ants cost Texas farms $236 million a year

A recent study in rural Texas allowed respondents to estimate not only the damage from red imported fire ants, but also to calculate benefits as well, according to a Texas Agricultural Experiment Station economist. Agricultural producers in a 54-county area in East, Central and Northeast Texas reported an average total cost of $1,691.41 per farm, for a total cost of nearly $94 million, said Dr. Curtis Lard of College Station.

Extrapolating that cost statewide would mean that fire ants cost Texas an estimated $236.5 million, he said. This has increased from the $90.5 million in fire ant costs projected from the last survey that was conducted 1999 and published in 2001. "It shows that we still have significant losses from fire ants," he said.

But respondents estimated benefits of fire ants were $6.5 million in the surveyed area. That would total about $16.5 million in benefits statewide, Lard said.

More than 1,000 farmers and ranchers were asked their perceptions about the impact of red imported fire ants. The survey was the most comprehensive study of its kind in the U.S., Lard said, and it was tacked on to the regular agricultural production survey conducted every year by the Texas Agricultural Statistics Service. Some of the commodities covered in the survey were cotton, grain, timber, hay, beef cattle, sheep and goats, short-rotation woody crops and poultry.

Costs included:

  • Homestead damage. Fire ant damage to electrical switchboxes and heating and cooling units totaled $393,147, or $388 per farm.
  • Repair or replacement of equipment. That figure was $281,000 for the surved area, or $278 per farm. According to the survey report, the costs included replacing or repairing broken parts on shredders, combines, tractors, well pumps, mowers, solar fence chargers and wheel bearings.
  • Production losses. These were lower than those in the 1999 survey. Respondents reported about $267,000, or $264 per farm, in production losses. In 1999, these production losses were about $360 per farm. That included damage to trees, forage, hay, pastures, vegetables and fence posts, and injuries to livestock.
- Source: Texas A&M Press Release

Kentucky farmers assessing fields rutted at harvest

From a University of Kentucky College of Ag press release:

Crop fields across Kentucky bear the scars of a difficult harvest. Poor weather forced farmers to harvest their crops when fields were wet, leaving them rutted and in need of repair.

But damage likely is more cosmetic than serious, said Lloyd Murdock, soils specialist with the University of Kentucky College of Agriculture. Farmers may fear they compacted the soil where the wheels of their equipment sank into the ground, but Murdock said it is not possible to compact waterlogged soils. If water and mud were squirting out from beneath the wheels, compaction may not be a problem.

“You can’t compact a bucket of water,” he said.

It is easy to determine if the soil is compacted, he noted. Simply take a long spike and push it into the soil when the soil is wet. If it goes into the ground easily, the soil is not compacted. If it is difficult to push through and suddenly breaks and moves easier, then compaction could be a problem. “If you’ve got compaction then you’ve got to get below that compacted layer with a tool to take it out,” he said. “You really don’t have a choice. If you don’t have compaction and it’s just a rut from tires, and that happens a lot in these kinds of years, then all you need to do is smooth out those ruts.”

The challenge will be to find a time when the land will be dry enough to smooth it out and have it back in shape for the coming planting season.

“We’ve had these winters before and these deep ruts before and what I’ve found is that if you have compaction in the first 12 inches but it’s too wet to till that deeply, if you can till the first six inches, it does a lot to alleviate the compaction,” Murdock said. “You probably remove about 70 percent to 80 percent of the potential yield loss.”

Compacted soils limit water and nutrient movement to the plant as well as reduce root growth. As a result, yields are reduced. Compaction is something farmers are concerned about each year and some use deep tillage every few years. However, oftentimes the tillage is not necessary.

“It seems to me that a lot of times it’s based on emotion or what a person thinks rather than anything scientific,” he said. “The only way tillage pays is when it is actually doing something for us.”

To check soils for compaction in any given year, a penetrometer should be used. The device is pushed into the soil and measures the pounds of pressure it takes to push it into the ground. Before tillage will pay for itself, the field must have at least 30 percent of its measurements at 300 or more pounds per square inch. “I can just about guarantee you will have compaction on the end rows and where you enter the field, but outside of those areas, it really depends on what you’ve done in the past,” Murdock said. “Using a penetrometer is the only way I know that a guy can make a decent decision.”

Lear introduces soy-based foam for auto industry

Automotive interior supplier Lear Corporation today announced it has developed SoyFoam, a soybean oil-based flexible foam material for automotive interior applications. The product's advantages, according to the announcement, include a lower environmental impact to produce. The soy-based foam material is up to 24% renewable as opposed to traditional non-renewable petroleum-based foam, and it offers the potential for reducing foam costs.

Ford Motor Company was the first automotive manufacturer to express an interest in soy foam for automotive applications and the first to demonstrate that soy-based polyols could be used to make foams capable of meeting or exceeding automotive requirements.

In 2004, a partnership was formed between Ford and Lear to commercialize SoyFoam applications, with initial work concentrated on the molding of headrest and armrest components.Lear also is collaborating with the United Soybean Board - New Uses Committee (a group of 64 farmers/agricultural industry leaders), Urethane Soy Systems Company, Bayer Corporation and Renosol Corporation on SoyFoam development.

Wednesday, December 13, 2006

USA Rice President & CEO Stuart Proctor Resigns

We received the following release this afternoon from the USA Rice Federation:

ARLINGTON, VA — USA Rice Federation President and CEO Stuart Proctor has announced his resignation, effective Dec. 31. Proctor had tendered his resignation to the USA Rice Executive Committee Dec. 6 during the USA Rice Outlook Conference in Las Vegas.

Proctor, who noted the accomplishments of his four-year tenure at USA Rice, said that he is “leaving to pursue broader, more varied trade association management opportunities.”

“We have made considerable progress in achieving the organization’s mission statement and goals,” Proctor said. “Virtually all programs and activities are now more strategically designed and more efficiently and effectively implemented.”

“Under Stuart’s leadership, USA Rice has been transformed into a more streamlined and visible industry organization,” said USA Rice Chairman Alfred Montna, who is in Washington this week for meetings with U.S. government officials. “Stuart has overseen the consolidation of USA Rice offices in Arlington, VA, and has helped place our trade association on surer financial footing. We wish him the best of luck in all of his future endeavors.”

The USA Rice Executive Committee and Board of Directors will begin a formal search for a new CEO after the first of the year, Montna said.

Tuesday, December 12, 2006

Texas economist: grain outlook best in 20 years

Grain producers can look forward to a profitable market for several years, but cattle producers must work through some shocks in the market, a Texas Cooperative Extension specialist said. "The overall outlook for grain producers is the best I've seen it in 20 years," said Dr. Steve Amosson, Extension economist in Amarillo. His outlook:

Ethanol production has raised corn use 500 million bushels in the last year, Amosson said. If planned ethanol plants all come on line, corn usage could increase another 500 million bushels.

"In fact, in order to meet the proposed goal of producing 15 billion gallons of ethanol, we'd need to increase in corn acreage somewhere between 21 (million) to 23 million acres nationwide," he said. "We're already hearing from some seed dealers who said early corn sales are up 25% to 30% this year."

Wheat is ringing up high prices for producers for a different reason, he said. Production throughout the nation and world has been short. "So producers can lock in prices around $4.50 per bushel for this year's crop, as well as next year's," Amosson said. "There's definitely an opportunity in wheat to make a profit, considering the typical price is $3.05 per bushel in this area."

What about water and fuel? While natural gas prices can wreak havoc with profits, he said the natural gas futures are showing prices to be stable or falling in the next couple of years. That not only affects irrigation pumping prices, but also fertilizer prices.

Availability of water was a concern that prompted some producers to switch to cotton to conserve water, but higher corn prices will likely bring them back, at least partly, Amosson said.

"The risk on corn production, to me, is less than that of cotton," he said. "If I had the water, I would do it. If you figure in $50 to $150 profit, above all costs, you don't see many years when that could happen. And we're looking at it for two to three years. It's not hard to make the decision."

Other bright spots in the forecast include rising silage prices on the heels of corn, as well as an the eventual increase in cotton and soybean prices, Amosson said. The corn acreage has to come from somewhere, he explained, predicting it would be from soybean, cotton and some wheat acreage. Shorter supplies of these crops could lead to higher prices in the future.

The not-so-bright spot is with the cattle industry, Amosson said. "They are going to see some heavy losses, especially if they bought cattle before the corn price run-up," he said. The cattle industry will go through some adjustments, he said. Distiller's grains, a by-product of the ethanol industry, will be built into feed rations to help offset some of the corn currently being fed to cattle.

- Source: Texas A&M press release

Sunday, December 10, 2006

Corn demand pushes catfish prices upward

From a Mississippi State University press release Friday:

Kncreasing global demand for corn, a primary ingredient in catfish feed, will cause production costs to continue to rise, making it more difficult for producers to earn a profit.


“Our feed prices are not going to go down,” said Mississippi State University ag economist Terry Hanson, speaking to a crowd of catfish farmers and researchers at the recent National Warmwater Aquaculture Center fall 2006 seminar at the MSU Delta Research and Extension Center in Stoneville.

Lower corn production in 2006, coupled with demand for biofuels, are tightening supplies, he said. “There’s been a lot of talk recently about being secure in our own fuel supply, so Congress has put quite a few dollars into encouraging ethanol production,” Hanson said. “We’re going to see more and more demand on corn, which is going to increase the price.”

Hanson also predicts that U.S. producers will be planting more corn in 2007 to take advantage of the high market value, which will remove more soybean acreage from production. Soybeans are another major ingredient in catfish feed. "With these two going up, our catfish feed is probably going to go up in price,” he said.

Hanson said farmers may want to consider advance booking a portion of next year’s catfish feed to avoid paying higher prices later.

“Think hard about that and check the futures prices of corn and soybeans, and get an idea of where you think prices of corn and soybeans will be next year. Advance booking a portion of your feed may be a good idea,” Hanson said.

Steve Fratesi, a catfish farmer who raises fingerlings in Leland, said he has already booked a portion of his catfish feed in anticipation of higher prices.

“I feel lucky that we booked about two-thirds of what we will use at a good price,” Fratesi said. “I just wish that I had gone 100 percent or better.”

Fratesi said he does not plan to advance book the last third of his catfish feed requirement because he wants to see if prices will eventually come down.

Roger Yant, a catfish fingerling producer in Sunflower, said he also will hold off on booking his feed at the current price. “I think we’ll just watch the market and hope that it will come down before next year,” Yant said.

Hanson said lower catfish prices also may be on the horizon.

“Inventories seem to be stable for the foodsize fish,” Hanson said. “You’ve got increasing fingerlings and stockers, so that indicates we’re going to be seeing more foodfish on the market by end of next year. That may lead to stable or lower prices than we’re seeing right now at 85 cents per pound,” Hanson said.

Hanson said 4.2 million pounds of basa and tra, competing fish from Asia, are being shipped into the United States each month. He said this is a 235 percent increase from last year. Despite rising feed prices and concerns about imports, Hanson reminded the crowd that catfish is No. 5 in the top 10 U.S.-consumed fish and seafood species. About 330 million pounds of catfish are consumed annually.

“From the demand side, consumers really do like catfish,” Hanson said. “Price, availability and recipes are three things that consumers have said would increase their consumption. If we can get creative with the price, availability and recipes, we can increase consumption.”

The economist said consumption of catfish has more than doubled in the last two decades from less than half a pound of catfish consumed per person per year in 1985 to 1.1 pounds per person in 2004. Hanson also reported that pond-bank value is up 18.4 percent and pond-bank price is up 11 cents per pound from September 2005.

Friday, December 08, 2006

Rice Outlook: Award winners honored

The following is from a USA Rice Federation release from this week's rice conference:

LAS VEGAS — Gibb Steele, Chuck Wilson and John Denison, the winners of the 2006 Rice Awards, were honored here today at the USA Rice Outlook Conference for their significant contributions to the rice industry.

“There are many individuals who contribute to the success of the rice industry, but the accomplishment of these three men sets them apart as leaders,” USA Rice Federation President and CEO Stuart Proctor said. “The USA Rice Federation is pleased work with these individuals and honor their achievements and dedication.”

Denison, this year’s Lifetime Achievement Award recipient, has worked tirelessly for many years on behalf of Louisiana’s rice growers. Even as a young farmer, Denison recognized the importance of agricultural research and promotion. He was a founding member of the Louisiana Rice Research Board and served as chairman from 1974-1982 and 1987-1998.

“Much of the new technology and many of the varieties in use by the industry today are largely a result of the important funding decisions made by this board,” said Dr. Steve Linscombe, rice breeder with LSU AgCenter.

As a passionate and energetic young leader from southwest Louisiana, Denison easily made the transition from production to politics when it came to the rice industry.

During the 1970s, Denison was part of the Louisiana leadership that convinced farmers it was time to switch over to a market-oriented farm program that allowed some support levels but also allowed unlimited production.

The Rice Industry Award recipient, Wilson from DeWitt, AR, has worked on the rice industry’s behalf for nearly 30 years, starting with the USA Rice Council in 1977. The award reflects his willingness to take on numerous leadership roles and his continued dedication to the U.S. rice industry. In 2003 he became the director of the Rice Foundation in addition to his fulltime responsibilities as the USA Rice Federation director of Arkansas field services. Wilson also helps out on the family farm whenever he can – especially during planting and harvest seasons.

Rice Farmer of the Year award recipient Gibb Steele from Hollandale, MS, has shown determination and innovation in growing his crop. Steele began farming rice and soybeans in 1973 and with the “buckshot” mud of the Mississippi Delta, he soon found out that the heavy clay soils were often rutted up at harvest, making it difficult to get planted in a timely manner in the spring.

Steele met the challenges with innovation instead of frustration. He started using full track Claas combines in the early 1990s, later switched to combines and grain carts with flotation tires for more surface area on the ground and continued to precision level his fields to improve drainage. Fifteen years ago he adopted no-till and minimum till rice production.

Syngenta, Rice Farming magazine and the USA Rice Federation sponsor the Rice Awards.

Wednesday, December 06, 2006

Rice Outlook: What size U.S. crop in 2007?

How big will the U.S. crop be in 2007?

Extension workers from the six rice producing states looked into their crystal balls during the 2006 USA Rice Outlook Conference in Las Vegas this week, offering an early indication about how plantings might run.

Several states will likely increase plantings in 2007 after a general decline in 2006. But Arkansas, which accounts for about half the nation’s crop, will likely reduce its plantings in 2007.

Higher production costs continue to be a factor. Higher prices for other commodities also might draw some acreage away from rice.

CALIFORNIA: “We expect the crop in 2007 to be very similar in size to this year’s, which was about 526,000 acres,” said Christopher A. Greer, University of California Extension Farm Advisor, Colusa. “Short of some major weather problem, I would say it could run about 550,000 acres for ’07, maybe a little higher. Hopefully, we won’t go back to having 590,000 acres.”

Medium grain prices continue to be high after two below-average crops in the state, plus a prolonged drought that has cut deeply into potential yields for Australia, one of California’s main competitors in the medium grain market.

ARKANSAS: Bobby Coats, Extension Ag Economist said that Arkansas would likely a 1.309-million-acre crop in 2007. That would be a 6.5% decrease from 2006 and a 20% decline from 2005. Long grain plantings will be down 6% from 2006 and medium grain acreage would decline 11% from 2006.

Arkansas produced about 49% of this country’s rice in 2006.

Overall, Coats was guardedly optimistic. World consumption remains strong and commodity prices, overall, are becoming more attractive to large investors and funds. North American ending stocks are below the previous two marketing periods and Latin American ending stocks are below the last three marketing periods. East Asian ending stocks are below three of the last four marketing periods, and south Asian and southeast Asian stocks “are dangerously low.”

“There remain pricing opportunities, I believe, for the 2006-07 year,” Coats said. “Uncertainty exists, as well. The rice biotech issue is a factor, and it will take time to identify its full impact.”

If speculators and funds start jumping in and out of the market, that will increase volatility. Coats emphasized the need for professional marketing assistance.

LOUSIANA: Johnny Saichuk, the state’s rice specialist, said that Louisiana’s plantings would be up in 2007. “I don’t believe they will reach 500,000 acres, though,” he said.

In 2006, the state had the smallest planted acreage since 1914. The economics of production reduced grower’s willingness to aggressively plant rice. Combined with that were the acres that couldn’t be cropped due to saltwater contamination after Hurricane Rita in 2005. In south Louisiana, where a large part of the rice is grown on rented land, many growers opted to reduce their plantings.

Louisiana also was the only state that didn’t post above-average yields in 2006. Cercospera hit the south Louisiana crop at levels not seen before, and herbicide drift also cut into averages.

One point that might limit plantings in 2007 is lack of a ready substitute for Cheniere, the variety pulled for 2007 due to biotech contamination. About 24% of the state’s crop was planted in Cheniere in 2006, mostly on lighter soils because of its resistance to straighthead.

MISSISSIPPI: For 2007, the state’s acreage will probably not fall below the 2006 level of 190,000 acres and could be as much as 220,000, which has been a fairly consistent crop size before reductions in 2006. That’s according to Steve Martin, Extension Economist.

Mississippi’s planted acreage for 2006, in fact, was down 25% from the 2005 plantings, compared to a 20% decrease for the U.S. rice crop during the same period, Martin noted.

One positive note is that rice prices are up, Martin pointed out. While U.S. rice exports are down, Martin said that overall production declined in 2006 due to reduced acreage. “In a relative comparison (of available rice to export history), we’re in relatively good shape,” he said. “Hopefully, some of these other issues (GMO rice restrictions) will be cleaned up and exports will expand.”

High prices for corn and other commodities might cut into Mississippi acreage some, he added. The state’s 2006 planting were probably down by 75,000 acres simply because of higher fuel and fertilizer costs, he said. The trend for urea prices seems to be down a bit, he said.

When he ran comparisons of other crops and rice at three different price levels, rice held up well, plus its yields tend to be more consistent than those for other crops.

MISSOURI: The state’s acreage has trended upward for years, but it’s too early to say whether that will continue in 2006, said Andy Kendig, a University of Missouri Extension weed scientist. There were indications that 2006 plantings would decline. But when all the acreage was added up, the state’s crop was about the same size as the one in 2005, he noted.

About 20% of the 2006 crop was planted in Cheniere, and the lack of a ready substitute for planting on lighter soils might swing some land out of rice, he speculated. But much of the state’s crop is grown on precision graded land

TEXAS: The state planted 148,000 acres in 2006, and the 2007 crop is expected to increase by 8% to 10%, said Ted Wilson, director of the Texas A&M at Beaumont. Based on early ratoon crop reports, the 2006 Texas crop could be one of the best on record, Wilson said.

Rice Outlook: A Global Balancing Act

The global rice market is doing a balance act, based on comments by Nathan Childs, senior economist for USDA’s Economic Research Service.

Childs, a regular and well regarded speaker at the USA Rice Outlook Conference, reported this week that global production was very strong in the 2005-06 season. But, that has been somewhat offset by increased consumption and a continued draw down by China of its stocks.

U.S. rice prices are strong, but export opportunities aren’t really growing. Recent gains in the Middle East and Latin America won’t offset export sales lost to the EU after the GMO rice controversy developed.

Here’s a synopsis of his presentation:

For the 2006-07 season, global production was the largest on record. A wide range of countries produced record or near-record crops. China, Indonesia, the Philippines, Bangladesh, Pakistan and sub Saharan Africa came out ahead of normal yields. Global supplies are up by nearly one percent, the second year in a row with an increase after four to five years of declining supplies. That downward trend had been due mainly to China reducing its farmers incentives for increased production, coupled with a steady draw down on its stocks. Although a large importer going into the 21st Century, China has reached a point of equilibrium in which is neither a rice importer nor a significant rice exporter.

Although consumption continues to outpace production, the overall rate of global trade is either stagnant or down somewhat. Any increases in buying from some countries have been offset, in part, by those stronger yields noted above.

Due to offsetting consumption rates and a concerted effort by China to draw down its supply, stocks will decrease about 2%, resulting in the lowest stocks-to-use ration since the early 1980s.

The overall global outlook is for higher prices in 2007, with Thailand’s intervention buying program helping to further tighten available export stocks. The lingering Australian drought and two years of below-average crops in California, will continue reducing that part of the medium grain inventory and keep that market trending upward..

Bullish factors for global long grain prices include: higher prices for fuel and fertilizer; a tighter supply situation in the U.S. and Vietnam; the Thai government’s intervention buying; and the continued trend for consumption to outpace demand, however slightly.

Bearish factors for global long grain prices include: weaker import demand from big Asian countries that harvested record or near-record crops; and potential “bounce back” from Vietnam after several years of short crops due to weather.

One factor that has further dampened global trade has been a string of good crop years in Indonesia. The country accounted for 25% of all world rice trade in the 1970s and became self-sufficient for a brief period in the 1980s. After that, it once again returned as a net buyer until its yields rebounded over the last three to four years. “But, we project that Indonesia cannot maintain this self-sufficiency over the long term and will eventually be back in the market,” Childs said.

Loss of European Union sales due to the genetically engineered rice flap has clearly reduced U.S. exports, Childs said. “The EU was 10% of the Southern long grain crop,” he noted. To make up for those lost sales, the U.S. would have to capture business in countries that already are “price sensitive” and are less willing to pay the difference between U.S. prices and what other exporting countries might charge, he added. New business in the Middle East and Latin America won’t be enough to compensate, he said.

U.S. domestic consumption is up about 3%, which has been a regular trend in recent years. Most of that can be traced to population growth, Childs said. U.S. importation of rice set a record at 18 million hundredweight, mostly in jasmine and basmati varieties.

Forecasts of a rice market in the range of $7.62 to $9 have panned out, Childs said, “but there isn’t a lot of rice moving at that price. So, it’s a mixed bag at this point.” Exports are down 16%.

U.S. average farm prices are the highest since 1997-98 when the market was driven by El Nino events that heavily damaged Asian crops. “This time, prices aren’t driven by the weather,” Childs said. “There are cases where farmers are reluctant to sell.”

Monday, December 04, 2006

2007 Rice Leadership Class Announced

The following is from a USA Rice Federation Press Release from today's session at the USA Rice Outlook Conference:

LAS VEGAS — Rice Foundation Chairman Dr. Ernest E. Girouard announced the selection of the 2007 Rice Leadership Development class today here at the USA Rice Outlook Conference.

The new rice producer class members are:

  • Trent Dabb from Stuttgart, AR
  • John Fred Denison from Iowa, LA
  • Eric Leonard from Corning, AR
  • Jessica Lundberg from Chico, CA
  • Eric Unkel from Kinder, LA.
The new industry-related class members are:
  • Shelley Smith from Boyle, MS
  • Dr. Jennifer Wells from Memphis, TN
“A key to a successful industry is the strength of its leaders,” Girouard said. “We have formed this leadership program for emerging leaders to help provide them the knowledge and skills needed to work on behalf of the rice industry.”

The Rice Leadership Development class is comprised of five rice producers and two industry-related professionals. A committee of agribusiness leaders evaluates the applications, reviews letters of recommendation and conducts personal interviews with the finalists. Candidates must be 25-45 years of age at the time of application and derive their primary livelihoods from some aspect of the rice industry.

“Many of the alumni are currently serving in key positions on various industry boards and committees. Three of the four member organizations of USA Rice are chaired by program alumni: John King chairs the USA Rice Council, Paul Combs chairs the USA Rice Producers Group and Brain King chairs the USA Rice Merchants’ Association,” Girouard said.

The Rice Leadership Development Program gives young men and women a comprehensive understanding of the U.S. rice industry, with an emphasis on personal development and communications training. During a two-year period, class members attend four one-week sessions that are designed to strengthen their leadership skills.

John Deere Company and Syngenta Crop Protection, Inc sponsors the Rice Leadership Development Program through a grant to The Rice Foundation. The USA Rice Federation administers the program.

Rice Outlook: Combest sees extension of '02 farm bill

The following is from a USA Rice Federation press release from this week's USA Rice Outlook Conference:

LAS VEGAS, NV— Higher commodity prices and lower farm payments in the future make current U.S. farm policy the low cost budget option and the most WTO compliant, former U.S. House Agriculture Committee Chairman Larry Combest (R-TX) told the USA Rice Outlook Conference attendees today.

“The 2002 Farm Bill [that critics] deplore so much has already saved an estimated $17 billion and is expected to rack up even more savings next year and beyond if current policy is maintained,” Combest said. “Compare this to just earlier this year when some predicted that the 2002 Farm Bill would somehow spend so much in 2006 and 2007 that it would wipe out any previous savings.”

“Maintaining current Farm Policy is the fiscally responsible thing to do because it is the low cost option,” said Combest, who was ranked among the most conservative of House members.

Combest also cast doubt about the renewal of Trade Promotion Authority (TPA) and of a WTO agreement, adding that current farm policy is the most WTO compliant.

“It will be a very tough sell for foreign competitors to argue [in a WTO case] that farm payments which are low, or not even being paid out in some cases, can somehow cause them serious prejudice,” he said.

Combest also urged environmentalists to fund renewable fuels research and development to promote crop diversification rather than to attack farm policy, and said fruit and vegetable farmers and conservation would both be harmed by tighter pay limits.

“How can [critics] be for conservation and fruits and vegetables, but then advocate [pay limit] policies that lock both out of farm policy?” Combest asked.

The so-called “equity” argument used by critics against farm policy would drive the farm budget higher because the current budget is too low to meet new needs, Combest said.

“Not one new need identified since 2002 in any way, shape, or form reduces or eliminates a single need in rural America that we worked to address in 2002,” he said, “so I believe a budget increase for the farm bill is absolutely unavoidable.”

Combest, who chaired the House Intelligence Committee, called on the administration and Congress to heed the advice of former CIA Director James Woolsey who has stressed the need to aggressively pursue domestically produced renewable fuels rather than rely on Mid East oil, the proceeds of which can be used to fund terrorism.

“My hope is that the administration and the Congress will see that [they] can more positively reduce the cost of farm policy — which has already been a bargain — by increasing investment in an energy title or an energy bill than by making cuts to the farm bill that would hurt our economy, reduce our competitiveness in the world, and cost us good paying American jobs.”

Friday, December 01, 2006

Cotton harvest finally winding down in SE Alabama

Cotton harvest is still underway in southeast Alabama, but the weather forecast calls for five to seven days of open conditions, and that should allow growers to finish up most fields, says William Birdsong, Extension Agronomist-Row Crops, based in Headland, Ala.

“By and large, the crop was better than we projected it to be,” Birdsong said this afternoon. “There were still several pocket areas where yields were disastrously low on cotton and peanuts. But late rains in July and into August helped the cotton a good deal and improved peanut yields, though not to the same extent.”

Where cotton appeared ready to make no more than 300 to 500 lbs/acre, the late-summer rains nudged yields up to 600 or even 800 lbs/acre. In spots that also caught spotty showers earlier in the summer, some 800 to 1,000 lb/acre averages were reported, he said.

“There was still a good bit of cases where 100 to 300 lbs/acre was the best cotton would due because of the prolonged drought,” he added. “But where growers caught some of those late July rains and were patient, it paid to hold off. We didn’t necessarily have a warmer winter, just more of a waiting game. A lot of it wasn’t defoliated until November 1. The DPL 555 really cranked back up.

Peanut yields were better than expected, too, but not to the dramatic extent Birdsong saw with cotton. Some fields that looked to go 1,500 to 2,000 lbs/acre ended up averaging 2,000 to 2,700 lbs/acre.”

The increase in corn prices, he said, will likely push more acres into that crop in ’07. “Hybrid availability could be an issue,” he noted. “We’ve seen wheat seed run short, now to the point that people generally don’t care what variety they plant, just so they can get some seed.”

BASF's GM potato likely going commercial in '07

The first commercial crop of genetically modified potatoes will be planted in 2007. Industry bods and green campaigners alike agree that EU approval of BASF's Amflora potatoes will come in time for spring launch and cultivation, reports Marina Murphy in Chemistry & Industry, the magazine of the Society of Chemical Industry. Amflora potatoes, which have been modified to be particularly suited for the production of papers and adhesive, are not intended for human consumption. In contrast to conventional potatoes, they contain only amylopectin, as opposed to both amylopectin and amylose starches. 'This is the first potato of its kind' according to Thorston Storck, global project manager at BASF Plant Sciences. 'We have tested these potatoes over 10 years…And at this stage, we are optimistic of getting permission to grow and sell these potatoes in time for planting next year,' he said.

Source: Society of Chemical Industry press release

So long, Lobdell Store

My wife and business partner, Debra L. Ferguson, has been documenting the Mississippi Delta to some degree ever since she bought her first camera back in college, and her work evolved into a series of images she calls the Vanishing Delta.

One of her objectives has been preserve images of Delta landmarks before they cease to exist. Many of the buildings she has photographed in the last 20 years have done just that - vanished. Time and disuse take their tole.

The latest to disappear was the Lobdell Store, an old general store and plantation commissary along Miss. 1 on the west side of Bolivar County, just south of Beulah, Mississippi. I grew up in Rosedale, maybe 8 miles north of the store, and my father - an aerial applicator - worked across a good deal of the fields in that area. That included the "Lobdell Place," the plantation from which the store and the surrounding community took its name.

The store hasn't been opened in decades and had been caving in for years. It was finally taken down a few months ago. We noticed that it had disappeared while visiting family for Thanksgiving.

Someone told us recently that the old Booga Bottom Store in north Bolivar County was gone, as well. For years, it was a notable eatery, serving home-cooked lunches. I think that even Southern Living magazine carried a short piece on it once. I've had Delta natives from as far away as California to tell me about the memorable pies once served at what the locals generally called "Booga Bottom's".

Lately, Debra has become involved with Delta State University's archives in its effort to preserve historic photos of the region. Archive staff members are making several stops through the Delta, asking people to bring in old family photos that might be scanned into the university's collection. The goal is to capture scenes of rural and town life during past decades, and the images would become an invaluable resource for students and scholars researching Delta subjects.

On Saturday, the archives will be in Clarksdale evaluating photos, and Debra will be on hand, acting as a consultant on both the photographs and history of the region, particularly in agriculture.

Debra always welcomes suggestions from people about Delta landmarks that should be photographed for posterity. You can reach her by email at debra@southern-images.com.

Thursday, November 30, 2006

More on hybrid seed shortfall

As we noted a couple of days ago, certain corn hybrid seed are in short supply. Jason Kelley, Arkansas Extension Corn Specialist, said today that one seed corn rep said that there were 7 times as many orders for one of its hybrids as the actual inventory of that seed.

“One producer said that he ordered 1,600 acres of one Roundup Ready hybrid, but 6 weeks later he was told that none of his order could be filled,” said Kelley. “Other producers who placed their orders a week or two earlier were told that maybe half of their orders would be filled for certain hybrids.”

Erick Larson, Mississippi Extension Corn Specialist, said the shortfall is understandable in terms of Southern hybrids, since corn acreage has been declining over the years in both Mississippi and other states in the region. Higher costs for fuel, nitrogen and other nutrients put corn at a disadvantage compared to other crops.

“Now, with strong corn prices, there’s far more demand for seed than anyone might have anticipated a year ago,” he noted. “Our record year for corn acreage was 1996 when Mississippi had 630,000 acres. For 2007, we could have a crop that size or perhaps larger.”

Availability is also somewhat uneven across different areas because distributors might allocate seed supplies to their better locations and limit inventories at other locations. Adding to the higher demand in the Deep South is the fact that some hybrid seed production areas in the Midwest were hit by drought and prolonged, above-average heat that reduced seed yields.

Greenpeace founder on "Frankenfood" tactics

Patrick Moore - a founder of Greenpeace and now a critic of the group's rabid opposition to scientific advancements - continues to be an outspoke proponent of genetically enhanced crops.

Greenpeace has been one of the most active critics of GE rice worldwide, and particularly in the European Union. In a recent interview with The Miami Herald, Dr. Moore stated the following in regards to genetic enhancement:

"Activists persist in their zero-tolerance campaign against genetically enhanced varieties of food crops where there is zero evidence of harm to human health or the environment, and the benefits are measurable and significant. GE food crops result in reduced chemical pesticides, higher yield, and reduced soil erosion.

"Golden Rice, for example, could prevent blindness in 500,000 children per year in Asia and Africa if activists would stop blocking its introduction. Other varieties of food crops will contain iron, vitamin E, enhanced protein and better oils. No other technology can match the potential of GE to address the nutritional deficiencies of billions of people.

"The anti-GE campaign seeks to deny these environmental and nutritional advances by using Frankenfood scare tactics and misinformation campaigns. Regardless of whether individual U.S. rice farmers may choose to support or oppose the planting of GE rice, they can all agree that it is time for the critics of GE rice to provide their sound science on such an important issue, a technology that by all accounts is safe and can help the world's population."

- Source: U.S. Rice Producers Association press release, November 30

Wednesday, November 29, 2006

USA Rice Issues GE Rice Action Plan

The USA Rice Federation issued a recommended plan of action to remove genetically engineered rice from the U.S. supply to re-establish a fully marketable inventory. The announcement was made in a press release Tuesday.

The following is from the release:

Following U.S. Department of Agriculture (USDA) Secretary Mike Johanns’ August 18, 2006, announcement of the trace presence of genetically engineered (GE) rice in the commercial supply, the USA Rice Federation has worked with industry and government officials to identify the Bayer CropScience Liberty Link traits and to mitigate their market effects.

“The action plan released today proposes urgent, concrete steps to be taken to restore market confidence,” declared Al Montna, a California rice producer and chairman of the USA Rice Federation. “We are requesting that state authorities take specific actions to ensure that commercial seed supplies for the 2007 crop have tested negative for the presence of Liberty Link (LL) genetically engineered traits. The plan also makes recommendations to all segments of the rice industry to further ensure that Liberty Link traits do not appear in the rice supply from 2007 forward,” Montna said.

“A specially appointed USA Rice Federation committee headed by Brian King, chairman of the USA Rice Merchants Association developed the plan,” Montna said. “The committee included individuals from all segments of the rice industry over the last month, and we encourage in the strongest terms that the industry — and appropriate state authorities — take action so we may achieve the goal of removing all genetically engineered traits from the 2007 crop,” Montna said.

These actions are recommended despite statements by the U.S. Food and Drug Administration and the food safety organizations in foreign markets that the GE rice at issue is safe for human consumption.

The closure of Europe and other markets to U.S. long-grain rice, and the imminent threat of closure or onerous testing in other markets, makes the promulgation of this action plan an immediate and necessary act of leadership, Montna said. “This is a plan for rice only, and it is ambitious so that our industry can get back to doing what it does best — growing and marketing rice — rather than engaging us and our customers in endless testing.”

“The economic viability of all segments of the rice industry are in jeopardy,” said USA Rice Producers Group Chairman Paul T. Combs. “We must show leadership and act decisively to solve this problem and restore stability in the marketplace,”

“Producers continue to be burdened as a result of the genetically engineered rice discovery, and it is imperative that we do everything in our power to stop GE rice production until such time as there is widespread regulatory approval and consumer acceptance in markets,” Combs continued. “But let’s clearly understand that all industry segments continue to share a financial burden resulting from the LL presence in long-grain rice.”

The Task Group recommendations call for:

  • A standard seed-testing protocol for the detection of the presence of Liberty Link (LL) traits for all head row / breeder and foundation seed with test samples pulled by state certifying agencies using state-approved methods
  • Each seed processor to agree to submit samples with a state seed-certifying agency number to one of the Bayer-approved and U.S. Department of Agriculture (USDA) Grain Inspection, Packers and Stockyard Administration (GIPSA) proficiency-tested labs.
  • No Cheniere rice seed to be sold for rice production in 2007 and no 2007 crop-year Cheniere to be accepted at the first point of delivery; the allowance that buyers may accept 2006 crop-year Cheniere until July 31, 2007
  • An allowance for an increase of Cheniere rice seed production in 2007 for 2008 and 2009 seed stocks provided that all such seed stocks are certified negative for LL traits
  • State agencies to notify all seed processors, growers and dealers of these requirements and the need for certification
  • Growers to provide, and first points of delivery to receive, documentation certifying GMO-negative results, with the Association of Official Seed Certification Agents to provide all LL-negative certification for commercial seed and USDA-GIPSA to certify that the process was completed under accepted protocols.

“The action plan we are proposing here is a living document,” Montna explained. “As a the industry learns more from the USDA investigation, scientists, customers and other industry experts, we will amend the recommendations as necessary and communicate those adjustments to the industry.”

To read the document detailing the recommendations summarized above, see: http://www.usarice.com/industry/communication/SeedRecs.pdf.

Research aims at baiting tarnished plant bugs

Airborne volatile compounds that attract plant-feeding insects to alfalfa could help growers control cotton pests with fewer pesticides, according to research announced today by USDA-ARS. Researchers have been investigating the influence of volatiles—or chemical scents—on the western tarnished plant bug (WTPB). The scientists' studies show that female WTPB are drawn to alfalfa volatiles and chemically manufactured synthetics that have most of the characteristics of natural chemical scents.

This information could be used to develop more effective field traps baited with volatiles.

Another study combined the chemical cues with a green-light-emitting diode (LED), which imitated a visual cue that attracts plant-feeding insects. Alone, the LED drew several females, but when combined with volatile or synthetic cues, it attracted both males and females at all stages of maturity. In some tests, the LED-synthetic compound combination drew positive responses of 80 percent or higher.

Click here for the full press release.

Tuesday, November 28, 2006

GPS examples from LSU

From an LSU press release we received today:

Inaccurate acreage estimates could be leading some farmers to spend too much or too little on producing their crops, according to an LSU AgCenter watershed agent, who says the cost of more accurate surveys may be worth the investment.

"Precision agriculture is putting the right stuff in the right place at the right time, and the first step is to find out how large your field really is," said Tom Hymel, an LSU AgCenter agent working in the Teche-Vermilion, Atchafalaya and lower Red River watershed basins in southwestern Louisiana.

Overestimating acreage could be an expensive mistake for a very simple reason, he said. "All inputs are acreage-based." And input recommendations usually are based on research results obtained from work conducted on accurately measured plots, Hymel said.

Many producers rely on acreage estimates made by government agencies, which use detailed aerial photographs taken from several thousand feet overhead. But such factors as the shadow caused by a tree line can result in significant inaccuracies, he notes.

Although they can cost several thousand dollars, Hymel says estimates made using ATV-mounted global position system (GPS) equipment can be much more precise, and experts say the more accurate measurements can make major differences for farmers. Using that system, ditches, odd-shaped fence lines and irregular shapes can be accurately measured.

Agricultural consultant Blaine Viator said almost half of his clients are going to GPS surveys.

"More and more growers are seeing the need for it – once they see the errors," Viator said. "What we’ve found on average, a farm ends up with 7 percent less acreage."

That means a farmer is paying an additional 7 percent in expenses to grow a crop, Viator said.

For example, aerial applicators charge for their services on a per-acre basis, he said. Even more, estimates by federal agencies don’t include levees or ditches as non-productive areas, Viator said. A farmer would be more pleased with the production and associated profit margin of 100 tons of cane on 950 acres than the same tonnage on 1,000 acres, he said.

Handheld GPS units lack the precision to get an accurate measurement, Hymel added, but many agricultural consultants have the proper equipment.

The LSU AgCenter agent said he has seen several examples of surprising results.

  • Crawfish acreage in St. Martin Parish had been reported at 28,000, but a GPS survey conducted by Hymel showed the actual figure at 20,000 acres.
  • Hymel said a farmer told him after getting a GPS survey he applied herbicides and was literally able to estimate so closely that the last jug of chemical was just enough to finish the last field.
  • On one sugarcane farm, Hymel found that almost half of the farm’s fields were inaccurate by at least 5 percent, and the overall discrepancy was 7 percent. "More of them were overestimated than underestimated," he said, adding that the average underestimate was off by 5.8 percent and the average overestimate was off by 7.2 percent. Some were off as much as 30 percent.

Farmer Rene Simon of Iberia Parish already recognizes the benefits of GPS on the farm.

Simon started using the system almost six years ago, and he’s convinced the improvement is significant. A GPS survey on his 1,200-acre farm concluded the estimate was off by 100 acres. The Iberia Parish farmer said the more accurate surveys allow for more accurate calibration of spray and fertilizer rigs.

Since cane harvesters lack yield monitors, Simon said, determining acreage with some degree of accuracy also can provide basic yield information. Harvests on some fields may seem too high or too low because of erroneous acreage estimates, he said, but the GPS work reveals the discrepancies. Simon said farmers also are using GPS to make straighter rows, which can improve spraying efficiency.

"You might think you’re in the right spot and might have a marker, but with GPS you’re dead on the money," he said.