GMO: Class action suits filed on behalf of rice growers

Doane Agricultural Service posted the following item this morning on our content site:

8/30/2006 -- LITTLE ROCK, Ark. -- Emerson Poynter LLP, a national law firm with offices in Little Rock and Houston, announced that it filed a class action lawsuit Aug. 28 in U.S. District Court on behalf of all rice farmers in the United States.

This lawsuit, filed in the Eastern District of Arkansas - Western Division (Case No. 4-06-CV-01078), seeks damages on behalf of a class of farmers who have suffered from the depression of rice prices due to the contamination of the U.S. rice supply with genetically engineered rice that is not approved for human consumption.

The complaint charges Bayer CropScience US, Bayer CropScience LP and Aventis CropScience USA Inc. with negligence insomuch as they had duty not to contaminate the nation's rice supply with unapproved genetically engineered rice and that they breached that duty. All are subsidiaries of Bayer Aktienges Ads.

The complaint alleges that in mid-August 2006, it became public knowledge that the U.S. rice crop had been contaminated with unapproved genetically engineered Bayer CropScience rice, as trace amounts were found in commercial rice supplies in Arkansas and Missouri.

More than 100 varieties of rice are commercially produced in primarily six states in the U.S. (Arkansas, Texas, Louisiana, Mississippi, Missouri and California), and it is estimated that the 2006 crop year would be valued at $1.88 billion with approximately half being exported. In 2005, 80 percent of the rice exported was the long-grain variety -- the type that has been contaminated.

Japan has banned all U.S. long-grained rice imports and the European Union has said that all U.S. long-grain rice will have to be tested by an accredited laboratory using a validated testing method and accompanied by a certificate before entering any of the member countries of the EU, the law firm said.

The Associate Press is reporting that a similar class-action lawsuit was filed in federal court Monday, as well as a third lawsuit filed by about 20 farmers in Lonoke County (Arkansas) Circuit Court on Tuesday.

Emerson Poynter LLP is a national law firm with offices in Little Rock and Houston. The firm said in its release that farmers who believe their rice crop prices have been adversely affected by the contamination caused by Bayer CropScience LLRICE 601, also referred to as Liberty Link Rice, could contact Emerson Poynter about rights and potential claims.

SOURCE: Emerson Poynter LLP via PrimeZone.

Johanns names members, alternates to National Peanut Board

Doane Agricultural Services posted the following on our content site:

8/28/2006 -- WASHINGTON, D.C. -- Agriculture Secretary Mike Johanns today reappointed three members and two alternate members and appointed one alternate member to serve on the National Peanut Board.

The following members and alternates were reappointed to serve three-year terms of office beginning Jan. 1, 2007, and ending on Dec. 31, 2009: Members - Wayne E. (Wes) Shannon of Tifton, Ga.; Roger G. Neitsch, of Seminole, Texas; and John Shackleford, of Mer Rouge, La.; Alternates - John C. Harrell, of Whigham, Ga., and Francis V. Jordan III, of Rayville, La.

Tracy Welch of Plains, Texas, is a newly appointed alternate member who will serve a three-year term of office beginning Jan. 1, 2007, and ending on Dec. 31, 2009.

The 10-member board is composed of eligible peanut producers. The nominees were appointed from nominations submitted by certified peanut producer organizations.

USDA's Agricultural Marketing Service provides oversight of the National Peanut Board in accordance with the act and order. Under the order, domestic producers pay an assessment at the rate of 1 percent of the total value of all farmers' stock peanuts sold.

SOURCE: USDA news release.

Obituary: Harris Barnes, Jr., Ag Journalist

Harris Barnes, Jr., a noted ag journalist, photographer and former plantation manager, died Friday in Clarksdale, Miss. Harris, who I counted as a long-time colleague, friend and a friendly competitor, was 87.

He wrote extensively for Farm Journal, Progressive Farmer and other main-line ag magazines and also was a former staff member of Delta Farm Press and Southeast Farm Press. Harris made a gradual transition to ag journalist and photography while working as a plantation manager in the north Delta of Mississippi. Always active in farm groups, he served a term as president of the American Soybean Association.

In recent years, he published a collection of his photos: Cotton: A 50-Year Pictorial History. That was followed by a second collection, The Beauty of Southern Agriculture. Six days before his death, he finished his third collection, The Good Ole Days.

A memorial service will be held at 3 p.m. Sunday, August 27 at First Presbyterian Church in Clarksdale, Miss.

Our deep sympathies to his family.

Click here to link to the obituary in today's Commercial Appeal.

Latest soy rust forecast

Here's the latest ASR forecast from the North American Plant Disease Forecast Center at North Carolina State University.

Forecast Summary: Wednesday, August 23

Weather: Wednesday, August 23 - Gulf Coast / Southeast U.S.: A stationary front lies across the region's midsection and will be slowly dissipating through the end of the week. Sunny to partly cloudy and dry northern 1/3. Scattered showers and thunderstorms expected each afternoon and evening along and south of the front, especially near the Gulf Coast, FL, and south Atlantic coast. Highs in the upper 80's and 90's.

Wednesday and Thursday: Mostly favorable weather is expected near the source areas during midweek. Low Threat of long-range transport over the next several days. Moderate Risk Wednesday and Thursday to susceptible plants in FL, southern GA, southern AL, southern MS, and all of LA. Weakly Moderate Risk for southeast TX. Low Risk otherwise.

Tuesday ... Moderate Risk for susceptible plants in FL, southern and central GA, southern AL, southern MS, and all of LA. Weakly Moderate Risk for central and southern SC, southeast TX, and southern AR. Low Risk otherwise.

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Peanuts: Johanns appoints members to the Peanut Standards Board

Doane Agricultural Services posted the following on our content site today:

8/22/2006 -- WASHINGTON, D.C. -- Agriculture Secretary Mike Johanns has appointed of five individuals to serve on the Peanut Standards Board.

The newly appointed producer members and industry representatives -- whose terms of office end on June 30, 2009 -- are: Southeast Region - Carl Sanders, producer, Brundidge, Ala., and Charles Ivy, industry representative, Albany, Ga.; Southwest Region - John Clay, producer, Carnegie, Okla., and Jimmie Shearer, industry representative, Portales, N.M.; and Virginia/Carolina Region - George H. McGee, producer, Severn, N.C.

Section 1308 of the Farm Security and Rural Investment Act of 2002 provided for the establishment of the Peanut Standards Board and requires USDA to consult with the board in advance before establishing or changing quality and handling standards for domestically produced and imported peanuts.

The board consists of 18 members with representation equally divided between peanut producers and peanut industry representatives. There are three producers from each peanut-producing region: Southeast (Alabama, Georgia and Florida), Southwest (Texas, Oklahoma and New Mexico), and Virginia and North Carolina. The board also includes three peanut industry representatives from each region.

Appointments to the board are for three-year terms of office. Current nominees would replace one producer and one industry representative from each peanut-producing region whose terms expired on June 30, 2006. The industry representative slot for the Virginia/Carolina region is vacant.

SOURCE: USDA news release.

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Mississippi heads toward a short sweet 'tater crop

Sweet potato harvest started in north Mississippi today, and consultant Phillip McKibben says this will likely be a below-average crop.

“This was the hardest year to get a stand of sweet potatoes that anybody has ever seen,” says the Mathiston, Miss., consultant, who works a good deal of the state’s crop. “During the 2-month planting window between mid May and mid July we only had about 7 days when we could set plants and hope to have an adequate survival rate.”

A combination of wet, cool conditions early were followed by dry, hot periods later. Some growers opted to replant or fill in skippy stands and, consequently, never planted all their intended acres, he says. His growers mostly took the initial stands they had and continued transplanting, which allowed them to at least plant everything they originally scheduled.

“In a lot of cases, 20-30% of the plants died right away, and half of the survivors didn’t look all that promising,” he says. “All of that will affect yields. On the surface, things look fine. The ground is covered with vines. But what you don’t see are the 6-foot skips where there are no plants and there won’t be any potatoes. If you’ve got a 100-acre field but only 80 acres worth of plants, you already know the average will be off.”

Plantings for the crop are staggered for harvest and packing efficiency, and growers will be harvesting through October, McKibben estimates. Mississippi, with about 15,000 acres in production, is usually the third largest producer of sweet potatoes, just behind Louisiana and Texas and just ahead of California.

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South Carolina reports first rust find of '06

South Carolina Extension personnel reported today that rust was identified on one leaf out of 25 collected from a MG V sentinel plot in Calhoun County. This leaf had one lesion which contained 3 small pustules which had just begun sporulating, according to the report, filed on USDA's soybean rust web site.

The infestected leaf was one of almost 1,400 sampled last week across the state's production area, the report noted.

The following was posted on our content site by Doane Agricultural Services:

8/21/2006 -- Asian soybean rust has been found in sentinel-plot soybeans in Calhoun County South Carolina. This is the first rust in the state this year and the farthest north rust has been found in the U.S. in 2006.

There are now 35 counties in seven states that have had rust in 2006.

On www.sbrusa.net and in a more detailed South Carolina Soybean Rust Note e-mail to soybean specialists, South Carolina officials led by John Mueller, Extension soybean pathologist, Clemson University, reported the following this afternoon:

"Asian soybean rust was identified in samples collected last Thursday (Aug. 17) in Calhoun County from a field of Maturity Group V soybeans located near the intersection of State Road 22 and Interstate 26. This is the first identification of rust in South Carolina during the 2006 growing season.

"The plants were in a sentinel plot and were at growth stage R-5 (full size pods containing developing beans). Out of the 25 leaves examined, only one leaf exhibited rust. On that leaf was a lesion less than one-fourth inch in diameter which contained three very young pustules that had just begun sporulating.

"Immediately adjacent to this sentinel plot of MG V soybeans was a sentinel plot of MG IV soybeans. No rust was detected on the 25 leaves examined from that plot. The MG V plot exhibited very lush growth -- 40+ inches tall in 38-inch rows.

"To keep this find in perspective, you should be aware that last week I examined almost 1,400 leaves from 43 soybean fields or sentinel plots in South Carolina. One leaf exhibited the smallest detectable level of rust (one lesion or clump of pustules). Also remember that the closest field in Georgia with soybean rust is near Tifton (about 200 miles away).

"To determine the real extent of the infestation tomorrow (Tuesday, Aug. 22) Charles Davis and I will be collecting extensive samples from the monitoring plots, neighboring kudzu, and soybean fields throughout Calhoun County. We should have these results by late Thursday. We will tell you immediately if rust appears prevalent in the area.

"In the meantime, we are predicted to have slightly cooler temperatures and a fairly good chance of thunderstorms at least from now until Friday. This weather could be conducive to the development of rust and other pod, stem and leaf diseases, especially within a field.

Fungicide recommendations:

"At this time the levels of rust in South Carolina appear to be extremely low," Mueller said. "However, environmental conditions are favorable for rust and other diseases to develop.

"An application of a strobilurin to provide protection against rust and to help control other diseases is a good option for the next week. This is especially true for soybeans with a high yield potential that are between growth stages R3 and R5. At this time these soybeans show the highest potential for return from a fungicide application.

Soybeans that have not flowered do not need to be sprayed, Mueller said. Also, soybeans at late R5 or that are at or past R6 should not be sprayed.

"To control diseases in addition to rust, you must use a strobilurin or a combination product containing a strobilurin," he said.

Now that rust has been found in South Carolina, albeit at a very low incidence, scouting of individual fields may be warranted, the state commentary said. "However, the best indicator of rust in your area is still the nearest sentinel plot to your field."

The following South Carolina counties were sampled last week: Aiken, Allendale, Anderson, Bamberg, Barnwell, Calhoun, Colleton, Darlington, Florence, Hampton, Horry, Lee, Orangeburg, Sumter and Williamsburg counties.

Alabama says rust no longer visible in Montgomery County

In other USDA rust news today, Alabama set Montgomery County to "confirmed, destroyed" on the national observation map. Commentary said:

"Soybean rust can no longer be found on kudzu in the city of Montgomery. The disease had previously been detected on five kudzu patches in the downtown area where it had successfully overwintered. These patches have been monitored on a biweekly basis since they were first discovered in January. The disease has not been detected at these kudzu sites since early June. Central Alabama has experienced a severe drought for most of the growing season which likely had a direct impact on the pathogens ability to survive."

SOURCE: South Carolina and Alabama state commentaries on www.sbrusa.net; SC Soybean Rust Note e-mail, 8/21/2006.

Peanuts: Rotary Combine Info

A couple of weeks ago we posted a link to an article on a new rotary combine manufacturered in Brazil. The article appeared in The Peanut Grower magazine.

The following is a press release that we just received that may provide further information:

Colombo Group, Brazil’s largest manufacturer of harvesters for peanuts and dry beans, announces the establishment of a new North American unit, Colombo NA, Inc., in Ocilla, GA. Colombo NA, Inc. is entering the peanut combine market with a completely new harvesting concept for the American peanut farmer. The Colombo machine is the first rotary combine sold in the US. The rotary threshing method already dominates the grain harvesting industry and is now receiving a lot of enthusiasm in peanuts.

The simplicity of this combine has attracted a lot of attention. said Ken Sutton, Colombo’s Sales Manager. Sutton says that Colombo demonstrations of the harvester in 2005 were very successful with the combine performing well in many different field conditions. The farmers were pleased with how well it picked in tough conditions in the morning and early evening.

Colombo started building peanut combines in 1975. Their headquarters and four manufacturing facilities are located in Sao Paulo State in Brazil employing close to 400 people. There are approximately 200 Colombo dry bean combines already in operation in the northern US and Canada. Colombo NA has a dealers organization set up in Georgia for the 2006 harvest season and plans to expand into other peanut growing areas next year.

Contact: Colombo NA, Inc., (229)468-3050, email: ColomboNA@alltel.net

Traces of Bayer's Liberty Link genetically engineered rice found in commercial rice

Doane Agricultural Services posted the following on our content site:

8/21/2006 -- Agriculture Secretary Mike Johanns made the following statement Friday regarding genetically engineered rice, following the discovery of trace amounts of Liberty Link rice in commercial rice in the United States:

"The USDA and U.S. Food and Drug Administration have been notified by Bayer CropScience that the company has detected trace amounts of regulated genetically engineered (GE) rice in samples taken from commercial long grain rice. Both have reviewed the available scientific data and concluded that there are no human health, food safety, or environmental concerns associated with this GE rice.

"Bayer has developed many GE herbicide-tolerant products with the protein called Liberty Link, three of which are rice. The regulated line is LLRICE 601 and Bayer reports finding only trace amounts of it during testing. LLRICE 601 was field tested between 1998 and 2001. Two deregulated lines, LLRICE 62 and LLRICE 06, have been through thorough safety evaluations and have been deemed safe for use in food and safe in the environment, although these lines have not been commercialized.

"Based on the available data and information, the U.S. Food and Drug Administration has concluded that the presence of LLRICE 601 in the food and feed supply poses no safety concerns. USDA's Animal and Plant Health Inspection Service also conducted a risk assessment, which indicates LLRICE 601 is safe in the environment.

"Bayer indicated it had no plans to market LLRICE 601 and therefore had not requested deregulation. Based on reports that LLRICE 601 is in the marketplace and a petition from Bayer, APHIS will conduct a deregulation process, including an opportunity for public comment.

"Because the line of GE rice in question was regulated, APHIS is conducting an investigation to determine the circumstances surrounding the release and whether any violations of USDA regulations occurred.

"The protein found in LLRICE 601 is approved for use in other products. It has been repeatedly and thoroughly scientifically reviewed and used safely in food and feed, cultivation, import and breeding in the United States, as well as nearly a dozen other countries around the world.

"Since 1987, APHIS has deregulated more than 70 GE crop lines and in the last decade farmers have increasingly planted biotech varieties engineered mainly for herbicide tolerance, insect resistance, and enhanced quality traits. USDA's National Agricultural Statistics Service estimates that in 2006, 61 percent of the corn, 83 percent of the cotton and 89 percent of the soybeans planted in the United States were biotech varieties."

Bayer statement

Bayer CropScience issued this statement Friday:

"Bayer CropScience is cooperating closely with the U.S. Department of Agriculture and U.S. Food and Drug Administration in connection with the biotechnology traces Bayer CropScience identified in samples of commercial rice in the United States. The USDA and FDA have confirmed that this rice poses no human health, food or feed safety or environmental concern.

"These traces relate to a pre-commercial rice line, LLRICE601, developed by Bayer CropScience that produces a protein conferring herbicide tolerance. The protein is well known to regulators and has been confirmed safe for food and feed use in a number of crops by regulators in many countries, including the EU, Japan, Mexico, U.S. and Canada."

Related links:

U.S. Food and Drug Administration's Statement On Report Of Bioengineered Rice In The Food Supply

USDA Fact Sheet: Genetically Engineered Rice

SOURCE: USDA news release.

Soybean rust confirmed in southeast Texas

Asian soybean rust has been detected at low levels in Texas in kudzu near Dayton (Liberty County), just northeast of Houston and north of Interstate 10. No rust has seen in nearby soybeans or in kudzu to the north, according to an advisory posted on USDA's soybean rust web site this afternoon. There have been scattered thunder showers during the past week, but hot, dry weather will not support development of an epidemic in the next few weeks, the advisory noted.

The initial posting by Texas Extension said that preventative fungicide applications were not being recommended at the current time. "We will monitor the progression of rust in Liberty County and work closely with the growers there to determine the appropriateness and timing of fungicide applications," the advisory stated. "Growers in other areas of the state should continue to monitor for rust."

Drought in China Hurts Rice, Corn Crops

Doane Agricultural Services posted the following item on our content site:

8/18/2006 -- A drought in south-central China has spread to three more provinces, hurting corn and rice crops, according to the National Grain and Oils Information Center. The municipality of Chongqing and Sichuan Province have been hit the hardest by the drought, which is now damaging crops in Hunan, Hubei and Anhui Provinces, according to the report from the information center, which is an affiliate of the State Grain Administration. Drought conditions throughout China have destroyed 665,000 hectares, or 1.64 million acres, and "affected" 6.7 million hectares of crops over the past three months, according to a report by Xinhua, the official press agency. Xinhua reported that it is the worst drought conditions in 50 years for the region. South-central China typically accounts for about one tenth of the country's corn output.

Post-Katrina: Ag Exports Rebound from Shipping Trouble

Doane Agricultural Services posted the following on our content site today:

8/18/2006 -- MISSISSIPPI STATE -- Hurricane Katrina changed the way Mississippi crops leave the state, and a year later some producers are still dealing with the change.

Mississippi's port at Gulfport and the ports at New Orleans and Mobile served as the exit point for much of the state's crops. Katrina damaged each of these, wiping the Port of Gulfport clear of all its structures and temporarily closing the others. Nearly a year later, all are back in some level of operation, but Gulfport is still in the worst shape of the three.

The Port of New Orleans handled about half of the state's grain exports before Katrina. Much of the nation's grain came down the Mississippi River and was shipped out from this port. Steve Martin, agricultural economist with the Mississippi State University Extension Service operating from the Delta Research and Extension Center in Stoneville, estimated that those exports have regained most of their pre-Katrina status.

"Grain shipments were backed up last fall after Katrina hit, so it took longer and cost more money, but shipments still traveled down the Mississippi River to be shipped from New Orleans," Martin said. "The only real problem was the expense caused by the delay."

Martin said the river system is running smoothly now to handle this fall's harvests, assuming river levels do not drop too much lower.

Poultry exporting, however, is radically different from before the storm.

Mike Pepper, president of the Mississippi Poultry Association, said the Port of Gulfport was vital to the state's poultry industry.

"We depend on cold storage. Before Katrina destroyed the facilities there, we were able to drop off a trailer at the Port of Gulfport and have it unloaded and stored until the ships came in," Pepper said. "Our product has to be in cold storage, and the facilities at Gulfport were completely wiped off the map."

Poultry companies have coped with the destruction by moving their shipments mostly out of New Orleans. Pepper said the Port of Gulfport intends to rebuild their cold storage facilities bigger and better than before, but are awaiting final insurance and Federal Emergency Management Agency settlements.

"The key is getting a state-of-the-art facility," Pepper said. "Our goal is to have modern facilities with blast freezers. That's what the competition has in Mobile and New Orleans, and they are working to make sure they can have it in Gulfport, too."

Pepper said ports from Houston to Jacksonville, Fla. absorbed the poultry export traffic that had gone through Gulfport, but authorities are confident they can regain that business once they overcome their obstacles and rebuild.

"I think they are very confidant they can regain the business they had prior to the hurricane and get even more," Pepper said.

In a May press release, the Mississippi State Port Authority announced the completion of a 105,000-square-foot warehouse. The port intends to add almost 300,000 square feet of additional warehouse space by mid-2008. The port handled more than 2 million tons of cargo in 2005 and has set a goal of exceeding that tonnage in 2006.

Source: Mississippi State University

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New Rust Finds in Iberia and St. Mary Parishes in Louisiana

Doane Agricultural Services posted the following item on our content site today:

8/18/2006 -- Asian soybean rust has now been confirmed on soybeans in Iberia and St. Mary Parishes in Louisiana. The find was confirmed on Aug. 18. Asian soybean rust has now been confirmed on soybeans in Iberia and St. Mary Parishes in Louisiana. The finds were confirmed on Aug. 18 on soybeans in the R5 growth stage.

On Aug. 15, ASR was confirmed in two parishes, Avoyelles and Tensas, on soybeans.

On Friday, August 11, 2006, Asian soybean rust (ASR) was found in a sentinel plot of soybeans in Natchitoches Parish, La. The beans are Group Vs and are at R5 growth stage.

Harvesting has begun in many of the soybean growing areas especially with early maturing varieties or those planted early. Some late planted beans are in the early reproductive stage.

Currently rust has been found infecting this year's soybeans in 12 different counties in Alabama, Florida, Georgia, Louisiana and Mississippi. Including reports on kudzu, there is a total of 32 counties with rust this year including five in Alabama, 13 in Florida, six in Georgia, six in Louisiana, one in Mississippi, and one in Texas. Spore trapping continues throughout the U.S. using both active and passive traps. Any positive spore trap information does not imply infection has taken place and plant samples are used exclusively for recording positive rust occurrence.

Recent shower activity has been reported in some of the infected areas and local infection has increased in some cases.

Source: National and Louisiana commentary on www.sbrusa.net.

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China Boosts Interest Rates, Possible Negative For U.S. Ag

Doane Agricultural Services posted the following item on our content site today:

8/18/2006 -- China announced an increase in interest rates on Friday. This is the second rate increase in four months. With the 0.27 percent increase, deposit rates moved to 2.52 percent and lending rates climbed to 6.12 percent. The move follows news that China's economy grew at over 11 percent in the second quarter of this year and 10 percent the previous quarter. Chinese officials are boosting ratings in an attempt to cool the fast pace of investment growth in the country. It's feared huge capital inflows and the strong economic growth could spark inflation and undermine the highly leveraged banking system. The government is also pursuing a tightening policy through higher bank reserve requirements.

Higher interest rates are also expected to strength China's currency, the yuan. The yuan has increased very little since it was depegged against the dollar just over a year ago. The higher currency value should help curb China's huge trade imbalances. The impact of these moves on U.S. agriculture is potentially a bit negative. To the extent China's economy slows, it could reduce import demand for cotton and soybeans from the U.S and perhaps delay to point at which China becomes a net corn importer. The concern is not the small increase in rates announced Friday, but that further tightening may be ahead, and China's economy could slow faster than intended.

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China Becomes Net Importer of Soybean Meal

Doane Agricultural Services posted the following item on our content web site today:

8/16/2006 -- China's imports of soybean meal in 2005/06 are estimated to increase 13-fold (69,000 MT to 900,000 MT) from 2004/05. This will result in China becoming a net importer of soybean meal for the first time in five years.

As China's livestock, dairy, poultry and aquaculture sectors experience strong growth (35% of total agricultural output), protein meal demand is mirroring this growth. Total protein meal demand is estimated to grow by 10 percent in 2005/06 from 40 to 44 MMT.

China's larger soybean meal imports, although small relative to domestically produced soybean meal, are likely driven by reduced imports of fishmeal due to world supply constraints. The lack of availability, particularly from Peru, along with large price increases led China to turn to alternative protein sources to satisfy the animal feed industry.

Additionally, India has ample supplies of relatively inexpensive soybean meal and has been able to supply China fairly quickly. With the unpredictability of fishmeal supplies along with escalating prices, India is likely to continue exporting soybean meal to China.

Source: USDA's Foreign Agriculture Service

$20 Rice By '08?

Several of our readers this week forwarded a Reuters article that is quite bullish on rice prices, to the point that one analyst predicts that prices will double by 2008. Here’s a brief sysnopsis:

• $20 by '08? Stephan Wrobel, CEO of Swiss-based Diapason Commodities Management SA, said rice prices will double within 2 years to almost $20 per hundredweight, up from the current price, which has been hovering around $10 lately. His company oversees $5.5 billion in investments.
• Less farmland in China. Loss of rice acreage in China to urban development and highways was cited as one reason for an upswing. The country has lost 19.8 million acres (or about 6.6%) of its farmland in the last decade, based on a government report.
• Tight stocks. Supplies continue to be tight, the article noted. Unsold rice stocks this year are half what they were in 2000. China’s preharvest stock will be the lowest since 1975.
• Acreage shifts. Fertilizer and irrigation costs are forcing some farmers to reduce rice acreage in favor of grains or other crops that are cheaper to grow.
• Slower yield gains. Overall production also isn’t increasing in proportion to rising population levels.
• Specs and hedge funds are bullish. A money-manager with another Swiss-based investment firm said that rice may be the second-best ag investment right now behind “the ethanol-powered corn market.”
• Weather. Some areas in the world have seen production gains recently, but much of that is due to favorable weather. What might be an evolving El Nino weather pattern also could affect production of rice and other grains in the southern hemisphere, said Drew Lerner, president of World Weather Inc. in Kansas City, Kansas. Conditions have turned wet in the North China Plain, pointing to a growing El Nino influence.

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Despite contests, no first bale yet in NE Louisiana

Ralph Bagwell, Louisiana Extension Entomologist, said today that this is the earliest start to a harvest that he's seen in the years he's been in the state. A significant amount of the crop will be defoliated this month and, in fact, a good deal of applications were already made before the middle of August.

It's interesting, though, that nothing appears to have been picked or ginned yet, said Bagwell. You can always tell in northeast Louisiana that at least a little ginning has started becausecommunity leaders in many parishes still make a big deal about the first bale. Farmers push for the distrinction of having the first bale, as well. In some places, it's auctioned off and goes on display in the business -- typically a bank or the office of a cotton buyer -- who makes the high bid.

"Even though this cotton is early and so much of it is being defoliated, I don’t know of any that’s been picked," said Bagwell, who grew up a part of west Texas where the ginning of the first bale also was a big event. "By now, I would have thought at least one announcement would have been made about a parish's first bale."

Texas Drought Losses Estimated at $4.1 Billion

Doane Agricultural Service posted the following item on our content site today:

Estimated drought losses for Texas have reached $4.1 billion, eclipsing the $2.1 billion mark set in 1998, Texas Cooperative Extension economists reported Friday.

Crop losses are estimated at $2.5 billion and livestock $1.6 billion, according to the report. The current drought equals the multi-year dry period of the 1950s and could go down as the worst ever without substantial rainfall by the end of the year, according to Extension officials.

"The financial impact will be a major setback because of rising input costs, especially energy prices (to agricultural producers)," said Dr. Carl Anderson, professor emeritus and Extension economist. "Irrigation costs have soared and will cut cash flow from irrigated crop production substantially."

"Most of North Texas, East Texas and the Coastal Bend were in various stages of drought since May of last year, and hay supplies were depleted maintaining livestock over the summer and winter," said Dr. Travis Miller, Extension agronomist. "Much of the corn and soybean crop has been harvested for silage or hay; pastures are bare and hay barns are empty. Much of the hay being fed is from out-of-state or along the upper coast, which has received favorable rains. Livestock water supplies are disappearing and ranchers are unable to sustain herds with purchased hay and dry tanks."

Rural areas are being hardest hit, Anderson said, with projected economic losses at $8 billion when the agribusiness impact is included. This includes businesses that provide equipment and services to farmers and ranchers, including machinery sales, supplies and other production needs, Anderson said.

The driest regions of the state are the Panhandle, Southern High and Rolling Plains, Northeast Texas and the Lower Rio Grande Valley.

"If it rained now, it would be too late for the main crops," Anderson said.

Statewide, cotton, corn sorghum and soybeans have been rated 48 percent to 58 percent in poor to very poor condition for several months.

"That's very indicative of production levels around half a crop," Anderson said. "Much of the corn in Central Texas has been made into silage or hay and most of Northeast Texas soybean crop has been cut for hay to supply dairy operations in desperate need of forages. The irrigated peanut and rice crops are the only crops rated mostly in good to fair condition."

More than $1 billion of the current losses come from cotton, Texas' No. 1 cash crop, Anderson said.

"Because of dry soil, much of the cottonseed planted failed to germinate," he said. "The 2006 winter wheat crop fell to 35 million bushels, the lowest level since 1971 and two-thirds below 2005 production."

Only 1.4 million acres of wheat were harvested, the smallest acreage since 1925, Miller said.

Cattle producers are facing some of the toughest times ever, Anderson said, due to lack of hay and available forage on pastures.

"Three-fourths of the land in range and pasture is too dry to produce much grazing or hay that is harvestable," he said. "Without rain soon, livestock herds will face further liquidation."

At biggest risk are the state's cow herds, Anderson said. Rising hay and supplemental feed costs are forcing many ranchers to liquidate herds and lack of water has forced some to sell out completely.

"Cattle sales are up sharply from a year ago," Anderson said. "The reduction in herd size will curtail beef supplies for several years. Also, the lack of adequate nutrition for cows means a smaller calf crop next year."

However, land values continue to increase mainly due to purchases for recreational and hunting purposes, Anderson said. But the drought will "stress wildlife sources and reduce the amount and quality of wild animals and birds," he said.

"Wildlife management programs are critical to maintaining the recreational value of land used for outdoor recreation during drought years," Anderson said.

Agricultural lenders are reporting fewer loan repayments and greater demand for loan renewals and extensions from a year ago, according to the Second Quarter 2006 Survey of Agricultural Credit Conditions by the Federal Reserve Bank. Producers are collecting insurance based on individual coverage on dryland crops and many cow-calf operators have taken out larger loans because of higher feed costs.

"Others have sold their herds due to limited water and forage," Anderson said. "High energy prices have substantially increased production costs to further stress an already depressed production environment. Some crop and cow-calf operators can't financially withstand more losses and will be forced to seek other jobs or business alternatives."

FMC Corp. disagrees with EPA assessment to cancel, phase out carbofuran

Doane Agricultural Services posted the following item on our content page:

FMC Corp. said it disagrees strongly with conclusions in an Interim Reregistration Eligibility Decision document issued last week by the EPA would cancel and phase out carbofuran uses in the United States.

FMC believes there are crop uses that meet both the Food Quality Protection Act standard for dietary risk and the Federal Insecticide, Fungicide and Rodenticide Act risk-benefit standard that clearly warrant continued registration of carbofuran.

"EPA has exaggerated the risks of carbofuran and underestimated its unique benefits to agriculture in arriving at this unjustified conclusion to eliminate continued use of the product," said Michael Morelli, director of global regulatory affairs, FMC Agricultural Products Group. "We disagree with the evaluations behind the agency's IRED and will continue our efforts to explain the science that supports our position during the comment period."

The IRED is not a final decision, and FMC will vigorously defend the product. The company believes it is imperative to protect important agricultural uses as well as a significant number of manufacturing jobs in Maryland, New York and Illinois.

Carbofuran registrations on key crops are of critical economic importance to U.S. farmers, said Morelli. EPA is underestimating the value of carbofuran by ignoring the comments from more than 3,000 growers nationwide.

FMC said the National Potato Council, the National Sunflower Association, the National Corn Growers Association, the National Cotton Council, and scores of other state and national grower groups have written in support of the continued use of carbofuran, sold under the brand name Furadan.

"Carbofuran does what no other insecticide can do to control some devastating insect problems," said Morelli. "As an alternative chemistry class, its inclusion in pest control spray programs also helps to prevent insects from becoming resistant to other insecticides, and is a key tool for integrated pest management programs."

FMC believes that carbofuran does not pose an unreasonable risk to workers, the public or the environment when used according to label directions. According to the company, very strict labeling standards and product stewardship programs, including "closed transfer" systems for loading and mixing Furadan 4F liquid formulations, have proven that the product can be handled by workers in a safe manner.

Because the IRED is not a final decision, farmers may continue to use Furadan on all currently registered crops and uses.

FMC Corp. is a diversified chemical company serving agricultural, industrial and consumer markets globally for more than a century with innovative solutions, applications and quality products. The company employs approximately 5,000 people throughout the world. The company operates its businesses in three segments: Agricultural Products, Specialty Chemicals and Industrial Chemicals.

SOURCE: FMC Corp. news release.

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Texas, Israeli irrigation studies looking at plant leaf temperature as trigger

Doane Agricultural Services posted the following item on our content site today:

Irrigated cotton fields in arid Israel and Texas may one day be watered automatically based on plant temperature.

Steven R. Evett, an Agricultural Research Service soil scientist based at the ARS Conservation and Production Research Laboratory in Bushland, Texas, and colleagues are working with the Israelis on infrared field thermometer sensors to take leaf temperatures from a short distance.

They are designing computer programs that can automatically translate temperature readings into on/off irrigation decisions to get the most "crop per drop" of water.

This is the second year of a 3-year project, part of the Binational Agricultural Research and Development (BARD) program, a joint research program between Israel and the United States. The Texas work is funded by the state's Texas-Israel Exchange Fund.

ARS and Israeli scientists are comparing two different methods, both of which rely on the plant to signal water needs through leaf temperature: the newer time-temperature threshold, and the older crop water stress index. Both were developed by ARS.

For cotton, the time-temperature threshold method involves turning on irrigation when leaf temperature exceeds, for example, 82 degrees F for more than 4.5 hours. It is based on a discovery by ARS colleagues in Lubbock, Texas, that each crop has its own preferred temperature range for optimal growth. For cotton, that range is 73 to 90 degrees F.

The Israelis are using leaf temperatures and the crop water stress index to predict the water pressure in leaves, a measure of plant water deficit or stress.

Next year the Israeli and ARS researchers will each test both automated methods, along with a manual system based on soil moisture. Israel uses drip line irrigation and Texas uses center pivot irrigation.

In addition to the data exchange, the exchange of different irrigation concepts helps both Israel and the United States get the most out of each precious drop of water. The ultimate goal is to develop farmer-friendly wireless irrigation systems.

SOURCE: ARS news release.

Doane: corn demand outstrips production by nearly 1 mil. bushels

Doane Agricultural Services posted the following item today on our content site:

8/8/2006 -- ST. LOUIS -- Demand for corn will exceed production this year by nearly one billion bushels, according to significant research just released by Doane Advisory Services, a multi-media provider of information and analysis to agriculture.

Doane economists also forecast that an increase in future demand for ethanol will result in a shift to corn from soybeans.

Doane's annual corn/soybean survey and forecast, now available at www.doane.com/forecast, concludes a corn crop of 10.8 billion bushels and soybean crop of 2.98 billion bushels this year.

"Our long-term forecast calls for corn-planted area to be 85 million acres by 2009, an increase of seven percent," says Marty Foreman, Doane's feedgrain economist.

"Corn yields are on par with trends due to improved technology and farming practices. This has helped counter the potential negative impacts of two relatively dry U.S. growing seasons," said Foreman. "Despite this, it's important to recognize that demand will exceed corn production this year by nearly one billion bushels. This reinforces Doane's forecast that increased corn production area will be needed to maintain a balanced global supply and demand outlook.

"With soybean supplies in a more balanced situation, we expect market signals and economics will favor corn production relative to soybeans to enable producers to make decisions that are aligned with market realities."

This information and other details on crop production and market trends are outlined in the just-released report from Doane Advisory Services. The research, now in its 23rd year, encompassed nearly 3,000 driving miles through seven Midwestern states by Doane economists, and the resulting report represents more than two-thirds of the U.S. planted acres of corn and soybeans.

SOURCE: Doane Advisory Services via Business Wire.

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Georgia finds soybean rust in Tift County industry research field

Doane Agricultural Services posted the following item on our content site this afternoon:

Georgia officials report that Asian soybean rust was confirmed today on leaves taken from Group IV soybeans growing in an industry research field near Chula in Tift County.

Tift becomes the 29th county in the U.S. with soybean rust, and the sixth (and northernmost) in Georgia this year. The positive counties are Brooks, Decatur, Miller and Tift, with Grady and Thomas no longer red on the USDA map after infected plants were destroyed and no more rust found. It is the ninth U.S. county in five states with rust on this season's soybeans.

This is the first rust this year in Tift County, which had positive rust finds in three places last year, the earliest being samples pulled from a sentinel plot at Tifton on July 15, 2006.

Here is the text of the Georgia commentary on www.sbrusa.net:

"Rust was confirmed today on group IV soybeans growing on a industry research farm in Chula, Ga. Chula is located in Tift County in southcentral GA. This is the first rust find in that county. A small leaf sample (<10 href="http://www.sbrusa.net/">www.sbrusa.net as reported on www.StopSoybeanRust.com.

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Biodiesel boom changing dynamics of global vegetable oil industry

Doane Agricultural Services posted the following item on our content page this afternoon:

8/7/2006 -- NEW YORK -- A new study by Rabobank's Food and Agribusiness Research group finds that the increasing global appetite for biodiesel and other biofuels is driving demand for vegetable oils to historic levels in world markets, leading to higher prices for vegetable oils relative to meals and causing soybean crushers to reevaluate their business models.

The confluence of environmental concerns, high energy prices and government incentives which is fueling demand growth is also driving expansion on the supply side, leading to significant increases in oilseed processing capacity.

Speaking at a recent conference on biodiesel and canola in Alberta, Canada, Alejandro Reca, executive director of Rabobank's Food and Agribusiness Research group in the Americas, discussed the dynamics driving the strong demand for biodiesels and predicted that the recent income gains in the global vegetable oil sector would be sustained over the long term.

Biodiesel a "demand shifter"

Worldwide use of vegetable oils is expected to post growth of approximately 5.5 percent CAGR between 2005 and 2010, a significant departure from historical rates, reflecting the newly expanded biodiesel application.

"Biodiesel is proving to be a significant demand shifter in the overall vegetable oil industry," said Reca, "but the canola and palm sectors will benefit more proportionally from this growth, thanks to their high oil content and the oils' multiple uses as food and foodstock."

Reca said that Canada is expected to capture at least half of the anticipated 300-percent increase in production and crushing of canola, with Southeast Asian countries expected to reap the rewards of the more than 500-percent expansion of palm oil processing which is forecast for that region.

Sector income to remain "strong"

He also predicted that recent income gains in the global vegetable oil industry would remain strong, since food consumption of vegetable oils should mitigate any potential decline in non-food uses of vegetable oil.

Reca noted, however, that the variance between lower prices for vegetable meals and higher prices for vegetable oils, as well as the increasing competition from DDGs, was causing many soybean crushers to rethink their traditional business models.

Supply and demand drivers

Reca cited several factors driving both supply and demand growth of biodiesel, notably the Kyoto protocols, the U.S. ban on MTBEs and requirement for ultra-low sulfur diesel, and increasing international government interventions in the areas of mandatory contents, tax credits, and differential taxes.

Additionally, continued instability in oil-producing regions and the resulting higher oil prices have prompted policymakers and industry to pursue alternative fuels which are cleaner and often produced from locally-grown and renewable commodities such as vegetable oils, which appeal to Western consumers.

New investors, additional infrastructure

"The tremendous opportunities presented by biodiesel today are attracting non-traditional investors to the agribusiness sector, such as financial institutions and private equity firms, as well as traditional energy and agribusiness players," said Reca. "The result is that our energy and agricultural markets are becoming increasingly interrelated."

Reca noted the significant increase in manufacturing infrastructure as well, with approximately 50 plants currently under consideration for the U.S. market, along with a shift to larger scale plants. Many biodiesel manufacturers are locking in solutions such as supply agreements and off-take contracts to mitigate their long-term risk. He added that many automakers and agricultural machinery manufacturers, with an eye toward the future, are extending their warranties to allow for biodiesels use.

Looking Ahead

"Today's market conditions create the ideal environment for investment in and promotion of alternatives to petrofuels, and biodiesel in particular is attracting significant support on both the supply and demand side. As a result, the growth in the biodiesel market has economic and commercial implications far beyond just the energy markets, from increasing production and creating new trade flows for vegetable oils, to attracting new investors to the agribusiness sector, and ultimately to increasing the integration of global agricultural and energy markets," concluded Reca.

Reca's remarks were delivered at the "Biodiesel: Powered by Canola" conference, an initiative of The Canola Council of Canada and the Alberta Canola Producers Commission.

Rabobank is a global financial services leader providing institutional and retail banking and agricultural finance solutions around the world. From its century-old roots in the Netherlands, Rabobank has grown into one of the 25 largest banks worldwide, with over $600 billion in total assets and operations in 38 countries.

SOURCE: Rabobank via PR Newswire.

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