Agriculture Industry Can Be Thankful

For many, November is the month to celebrate those things for which you are most thankful for throughout the past year. Now, farmers have a bit more to be thankful for because President Obama signed three long-awaited free trade agreements (FTA) among the United States and South Korea, Colombia and Panama October 21.

“For America’s farmers, the trade agreements are an opportunity to strengthen U.S. agriculture,” says Tom Vilsack, agriculture secretary. “Farm exports help support more than 1 million American jobs. At this time next year, U.S. agricultural exports will be on track to reach new highs, leading to a trade surplus of more than $42 billion, eight times greater than five years ago.”

When implemented, it is estimated that the South Korea FTA will increase $1.9 billion in U.S. agriculture exports and eliminate two-thirds of its tariffs against U.S. agriculture products; the Colombia FTA will raise $370 million in agriculture exports and eliminate 80 percent of its tariffs; the Panama FTA will raise $46 million in agriculture exports and eliminate 50 percent of it tariffs.

How will these trade agreements specifically benefit crop farmers? An Ohio’s Country Journal article reports the following:

Colombia

• Corn: U.S. corn producers gain immediate access to the Colombian market for 2.1 million metric tons of corn at 0 percent duty-free

• Wheat: Primary market for U.S. wheat in South America

• Soybeans: Elimination of variable tariffs on soybean imports, which has imposed tariffs as much as 150 percent; Phases out the 24 percent tariff for refined soybean oil throughout the next five years

South Korea

• Corn: Third main U.S. corn market and a potentially important market for distillers grains; Imports of U.S. corn for feed enter duty-free

• Soybeans: Soybeans for use in cooking oil and livestock feed enter duty-free; The current tariff on soybeans imported for food uses like tofu and soymilk will be eliminated

Panama

• Corn: Decreases America’s duty charge to level the playing field

• Soybeans: 0 percent tariff treatment for soybeans, soybean meal and crude soybean oil will be locked immediately upon implementation; The 20 percent tariff on refined soybean oil will be phased out in 15 years

This legislation provides Ohio grain, in turn, Ohio farmers, with significant market export opportunities. Crop farmers will be able to more effectively compete on the international trade market and that is definitely something that we can be thankful for.

Photo obtained from: cipcol.org











Rain may affect grain forecast

Waterlogged fields are causing Midwest grain farmers much angst. Excessive moisture in fields is either jeopardizing the germination of planted seeds or is preventing planting.

“Farms from the Ohio Valley north throughout much of Ohio…have had flooding and above-normal rainfall in the past month but the Ohio Valley has been hardest hit,” said Cincinnati Weather Examiner Rich Apuzzo.

One farmer’s field has literally turned into a pond in Zanesville — It has carp swimming in it, as reported in a The Republic story.

According to a Coshocton Tribune story, “One cubic foot of water weighs more than 62 pounds and there are hundreds of tons of water laying on the fields.” This results in compacted roots to limit yield potential.

However, an Evansville Press & Courier story noted that flooding, in one way, is beneficial, “Nutrient-rich silt deposited by the flood water can often help reduce the amount of fertilizer.”

The optimum planting dates for corn in Ohio are from April 20 to May 10. To date, 1 percent of Ohio’s corn crop is planted, which is 38 percent less than the past year and 13 percent less than the five-year average. Typically, 15 percent of the corn crop is in the ground about this time of the year.

Corn consumption is projected to be near 13.25 billion bushels during the 2011-2012 marketing year. The USDA and others are predicting a national yield of 162 bushels per acre on a projected 92.2 million acres with 87 million acres being harvested for grain.

Farmers are considering alternative planting strategies to circumvent potential weather-induced losses.


Delayed Planting Strategies:

• Considering a shorter-season hybrid seed
• Foregoing tilling or practice decrease tillage
• Using an increased seed rate
• Using nitrogen later or considering nitrogen alternatives

Though the exact timing of planting is still unknown, one thing is for certain. With commodity prices significantly increased compared to the past spring, U.S. farmers plan to plant 3.99 million, or 4.5 percent, more corn acres than last year, according to the Prospective Plantings report released by the USDA National Agricultural Statistics Service.

Soybeans have a later plant date than corn — early May — and soybean farmers are also monitoring their fields and using the same assessors to gauge planting decisions. Depending on the ability to still plant a decent corn crop, corn farmers may opt to plant more soybeans this year. State farmers will be finalizing planting plans in the coming days.

Soybean 2011-2012 consumption is projected near 3.33 billion bushels, with a yield near the trend value of 43 bushels per acre on about 76.4 million acres.

Well-drained fields are expected to cope nicely, especially if June is dry. This is good news for Ohio wheat farmers. Ohio’s already-planted winter wheat crop reportedly survived the season in better shape than other states. USDA rates more than 70 percent of Ohio’s wheat in fair to good condition for harvest in July.

The Prospective Plantings report projects a 10-cent reduced average price received by wheat producers for this market year, ranging from $5.50 to $5.70 per bushel.

“Farm prices continue to be reported well below prevailing cash market bids, indicating that farmers priced a substantial portion of this year’s crop well ahead of delivery,” stated the report.

Of course, the ag industry will experience a lion’s share of the blame of potential food-cost increases because of yield loss causing food shortages. Farmers and other agribusiness members should be ready to provide fact-based responses to the multiple factors of food costs such as increases in oil prices and commodity market speculation.

It’s important to note that the 2010 planting season was also delayed, though not to this extent, and still turned out a record corn crop. Most of our farmers are seasoned pros with years of experience and knowledge working on their behalf.

For now, farmers are forced to acknowledge the adage, “Patience is a virtue.”

When are you or people who you know entering the fields? What are you doing differently this year?

Photo obtained from: www.ipm.iastate.edu

New technologies advance the agriculture industry

Today’s technology advancements are changing corn, wheat and soybean production.

As more food is needed for the growing world population and there is less land on which to grow it, new advancements in technology are especially important.

A recent article in Farm Industry News describes new agriculture technologies for farmers and how technologies can benefit the agriculture industry.

Technologies Changing Agriculture

• Telematics: This technology allows navigation, prescription application, location and other data to be transferred easily to and from farm machinery to help farmers improve efficiencies on expensive equipment.

• Drought-resistance traits: The next round of drought hybrids will include genetically modified traits. Scientists are currently using biotechnology to alter one of the many different factors involved in a plant’s growth during water-restricted and high-heat conditions.
  

• Soil and crop sensors: More farm equipment is being outfitted with smart sensors that can read everything from plant health and water needs in the crop to nitrogen levels in the soil. The sensors then enable on-the-go application of inputs based on real-time field conditions.

• Pervasive automation: A product feature that reduces operator workload, this new automation allows operators to do more jobs with less strain and more accuracy because human error is eliminated. Features include: GPS steering, conventional headlands programmable automation, automatic balers, automation of operator control of combines and forage harvesters and automation of tractor operator functions like intelligent power management.

• Hyper precision: With real-time kinematic (RTK) navigation available, precise seeding and fertilizer applications have become a reality. Manufacturers are introducing controllers, drives and shutoff systems with ever-finer resolution and the ability to apply multiple products at variable rates.

• Biologicals: More biological pest control and growth enhancements are expected as farmers look for more environmentally friendly and cost-efficient crop inputs. Advanced technologies like high-throughput screening are helping companies to quickly multiply beneficial organisms, thus driving development of new biologicals.

These advances are key components to a farmer's ability to continue to produce a sustainable supply of food, feed, fuel and fiber for domestic and international customers.

According to the Center for Food Integrity, in the next 40 years the world will need 100 percent more food than is produced today and 80 percent of future production growth must come from increased yields using the advancement of new innovation and technology.

For more technologies changing the agriculture industry or for more detailed information about the technologies mentioned above, visit www.farmindustrynews.com.

What do you think about the new technologies that are changing the agriculture industry? Do you know any farmers who are utilizing these technologies? What types of technologies do you think are needed for the future?

Photo obtained from: farmindustrynews.com

How’s the harvest?

This season’s harvest began sooner than normal, which was a welcome delight to Ohio farmers who experienced a late, difficult season in 2009 because of soggy conditions.

In fact, it’s halfway finished, according to the Times Bulletin. One year ago, some farmers hadn’t even entered their fields.

"I've talked to several guys who have told me this is the earliest they've been able to harvest in 20 to 25 years,” said a Van Wert farmer who was quoted in the newspaper.

The story cited some weed problems with ragweed in the state’s corn crop and marestail in its soybean crop, as well as a few field fires because of dry weather. But overall, it seems as if farmers will have a relaxing Thanksgiving this year.

“Weeks of warm weather during the planting season, regular rains during the first part of summer and a warm and dry August have amounted to ‘perfect conditions’ for area grain farmers, said Tony Nye, an Ohio State University agriculture extension educator,” a Wilmington News Reporter stated.

To watch a video about the fall harvest in Clinton County, visit: http://www.wnewsj.com/main.asp?SectionID=49&SubSectionID=156&ArticleID=186422.

Because of the season’s dry conditions, farmers won’t have to pay nearly as much, if anything, for drying time onsite and at storage facilities to reduce high moisture content before being able to sell. Moisture content of this year’s harvested corn is averaging 17 percent.

Harvest Highlights (USDA as of 9/27)

• Total corn production is forecast to increase 7 percent (585 million bushels)
• Total soybean production is expected to increase1 percent (225 million bushels)
• Corn is trading 19 to 23 cents more than in 2009
• Soybeans are trading 31 to 33 cents more than in 2009
• Wheat is trading 17 to 23 cents more than in 2009
• The national corn harvest is about 27 percent complete
• The national soybean harvest is about 17 percent complete

Corn is selling at more than $5/bushel, wheat at $7/bushel and soybeans are selling for more than $10/bushel, according to a recent Coshocton Tribune story.

For a complete report about trading data, visit: http://www.ams.usda.gov/mnreports/sj_gr116.txt.

Farmers throughout the state are grateful for the average to above average yields as they enter the home stretch.

Photo obtained from: extension.iastate.edu

Value of Agricultural Subsides

In the wake of the unveiling of Obama’s stimulus package and proposed budget, farmers and agribusinesses across the nation are charged with defending the significance of farm subsidies.

Agricultural subsidies have been a staple in the industry since the 1930s. Responsible for offsetting operation costs for fuel, equipment, fertilizers and seed, as well as setting a price floor for individual markets, many farmers rely on direct payments as both a business tool and a component of overall income.

In a letter regarding Obama’s plan to the chairmen and ranking members of the agriculture and budget committees in both houses of Congress, a collective voice from 39 diverse agriculture organizations stated, “The proposed budget cuts overlook the fact that producers and lenders alike have made long-term business decisions based upon the commitment made by Congress in the five-year farm bill and thus will exacerbate the current credit crisis.”

Subsidies envelop more than 24 commodity goods produced by U.S. farmers including wheat, corn, soybeans, sugar, rice and tobacco. Payments are derived from taxpayer money and allotted to farmers regardless of production and yield amount. (The direct payment for 2008 is 85 percent of the farm’s base acreage for the crop, multiplied by the direct payment yield for the crop, multiplied by the direct payment rate for the crop).

Obama’s plan will phase out direct payments to recipients earning more than $500,000 a year throughout a three-year time span. It also sets a $250,000 cap on any form of direct payment a farmer can receive.

Significant to the subsidy sphere is the Agriculture Act of 1933. Established under President Franklin D. Roosevelt during the Great Depression, this legislation also gave birth to The Commodity Credit Corporation (CCC). The CCC is a government-owned and operated entity that was created to stabilize, support and protect farm income and prices. CCC also helps maintain balanced and adequate supplies of agricultural commodities and aids in their orderly distribution.

Opponents assert that subsidies benefit mega farms, leaving small, family-owned and operated farms by the wayside. Others assert that subsidies have contributed to excess supply of farm products and allow inefficient farms to continue to exist.

"Why should we be sending millions of dollars to the largest corporate farms in the country? That's not what a safety net is for," said Sen. Byron Dorgan, D-N.D.

Proponents of subsidies counter that direct payments are vital to a fluctuating industry and without the financial assistance received from subsidies, farming ventures could cease to exist and the food market would ultimately suffer.

What is your opinion about subsidies? Can farm operators and the food market survive in their absence or are subsidies necessary to regulate a variable industry?