Reaction to USDA Crop Forecast

Cindy Zimmerman

usdaBoth corn and soybean production for this year were cut in this month’s crop report out this morning from USDA. Corn production is forecast at 12.7 billion bushels, down 4 percent from the September forecast and down 3 percent from last year’s record production of 13.1 billion bushels. Soybean production is forecast at a record high 3.41 billion bushels, down 2 percent from September but 1 percent above last year.

The industry was expecting the corn forecast to be lowered, but it was the amount of the decrease that caught the industry by surprise, according to John Anderson, an economist with the American Farm Bureau Federation.

“This is a pretty sizable drop in production,” Anderson said. “We saw a really big drop in USDA’s forecasted average yield for corn because of adverse weather in the big corn states of Illinois, Iowa and Indiana. USDA is forecasting a national average yield of 155.8 bushels per acre, compared to 162.5 bushels per acre in September’s report. A 6.7 bushel drop in yield is pretty significant.”

On the Minneapolis Grain Exchange monthly conference call featuring commentary on the USDA report, Peter Georgantones from ITS also expressed surprise at the new forecast, predicting it will lead to $6.00/bu corn, “pretty easily now.” Market reaction was definitely higher on Friday with December corn closing up 30 cents at $5.28 a bushel, the highest in over two years.

tom dorrThe latest supply-demand numbers reflecting the new forecast show a decrease in stocks, increase in feed use, decrease in exports and ethanol about the same. At a seminar in Chicago promoting exports of the ethanol by-product distiller’s dried grains with solubles (DDGS), U.S. Grains Council President and CEO Tom Dorr was not too concerned about the report. “I’ve been a farmer most of my life and the thing that I know is that farmers more often than not, swim in surpluses, they love dealing with shortfalls and they’ll produce our way out of this very quickly,” Dorr said.

Increased use of corn for ethanol has created more than 30 million metric tons of DDGS, a high-value feed product for domestic and international livestock producers. Initial 2010 export projections of 6.2 million tons of DDGS will be surpassed this calendar year as the United States gears up to export approximately 8 million tons.

Listen to or download an interview that Chuck did with Dorr reacting to the report today: Tom Dorr Interview

AFBF, Audio, Corn, Ethanol, Grains, USDA, USGC

Farm Policy Outlook For 2011

Chuck Zimmerman

Straight from the NAMA Trends in Agriculture conference is a video with one of the presenters produced by Paulsen Marketing.

The 2010 Trends in Agriculture conference wrapped up with a Washington update: what to expect in 2011. Jim Wiesemeyer, senior vice president of policy and trade issues for Informa Economics Inc.’s Washington office, says the next few years could be the beginning of a golden era for agriculture.

Agencies, Farm Policy, NAMA, Video

Engaging Agricultural Communities

Chuck Zimmerman

Straight from the NAMA Trends in Agriculture conference is a video with one of the presenters produced by Paulsen Marketing.

How do agrimarketing firms find and engage agriculture communities and consumers? Joseph Rueter, a partner in Curation Station in Minneapolis, shared his insights with the Trends in Agriculture conference.

Agencies, NAMA, Video

Macro Food Trends

Chuck Zimmerman

Straight from the NAMA Trends in Agriculture conference is a video with panel participants produced by Paulsen Marketing.

The second day of NAMA’s Trends in Agriculture kicked off with a panel discussion on “Macro Food Trends.”

Dan Halstrom is the Senior Vice President of marketing and communication for the U.S. Meat Export Federation. He emphasized a focus on global trade is essential.

Carol Bagnoli heads the Consumer Insights Strategy group at General Mills. She said consumers are focusing on health issues, especially where their food comes from.

Rose Mitchell is the Senior Vice President of Governmental Relations for Hy-Vee. She sees tremendous growth in organic products.

Jim Compart is President of Compart Family Farms and also the President of the Minnesota Pork Producers Association. He sees over-regulation as a barrier to producers export opportunities.

Agencies, Food, NAMA, Video

Zimfo Bytes

Melissa Sandfort

    Zimfo Bytes

  • During the month of September, as part of Hunger Action Month, 55 food banks in 24 states received monetary donations on behalf of Weeding out Hunger, a hunger-relief campaign based on grower purchases of Halex GT corn herbicide.
  • The National Corn Growers Association announced that Kyle Fergason has been promoted to National Corn Yield Contest Manager and will handle the day-to-day operation of this popular program.
  • Mycogen Seeds has launched a redesigned website to help growers make well-informed decisions about their MYCOGEN brand seed purchases. The focus of the website is “Localized Products, Performance and People.”
  • Aquarium Digital Engagement, the interactive division of McCormick Company, welcomes two new staff members to its Des Moines-area office. Digital strategist Dylan Hamilton and digital designer Matt Smith recently joined the company.
Zimfo Bytes

Dr. Jay Lehr Discusses Communicating Ag’s Story To Consumers

Chuck Zimmerman

Straight from the NAMA Trends in Agriculture conference is a video with one of the presenters produced by Paulsen Marketing.

Dr. Jay Lehr capped off the first day of NAMA’s Trends in Agriculture in Minneapolis. Dr. Lehr, an economist and futurist, talked about the challenges agrimarketers have in communicating agriculture’s story to consumers.

Agencies, NAMA, Video

NAMA Trends In Agriculture Via Paulsen Marketing

Chuck Zimmerman

Once again this year I’m sharing a series of videos from the NAMA Trends in Agriculture conference that have been produced by Paulsen Marketing. Here is the first installment.

The kick-off session got underway with Mark Pearson of Market to Market, talking about “Agriculture in a Globally Local World.” Pearson says the shift in how we’re connected with the rest of the world today is having a significant influence on American agriculture.

Agencies, NAMA, Video

DDGS Business Conference Featured On AgriTalk

Chuck Zimmerman

Just because the sponsor of my coverage here at the Export Exchange 2010 DDGS conference is the Renewable Fuels Association, and just because RFA VP Research, Geoff Cooper (right) was being interviewed, I am posting the often seen and purely voluntary AgriTalk post.

Host Mike Adams and Producer John Herath are also pictured. I’m just saying that it’s a nice gig to get out on the floor about 9am, set up your table, do your show at 10 and then “go home.” Good work if you can get it! It was nice seeing the guys though. Been days.

Export Exchange 2010 Photo Album

Ethanol, Media

Novus Spreads the Truth about Eggs

Cindy Zimmerman

Did you know that October 8 is World Egg Day? This is a very timely event with all the bad publicity this good food has received lately here in the U.S.

novus world egg dayNovus International has joined with industry associations on two continents to celebrate this year’s World Egg Day and bring awareness to the affordability and nutritional value of eggs.

According to the World Health Organization, hunger is the single largest threat to public health. As the world’s population soars from 6.8 billion this year to more than 9.2 billion by 2050, agriculture will be faced with the critical issue of feeding a continually rising population. As our population increases, incomes will raise, diets will diversify and the demand for food will increase. Populations will demand a broader portfolio of foods particularly proteins such as poultry meat and eggs. These growth trends will continue for many years and will strain the food chain from field to fork. Novus International, Inc., a global leader in animal health and nutrition, is taking steps to answer this demand through promotion of the most economical source of protein, the egg.

Eggs are one of the most nutritious and economical foods to produce and purchase. They can be used to help fight hunger, malnutrition and starvation. “Our vision at Novus is to help feed the world affordable, wholesome food and achieve a higher quality of life,” said Dr. Giovanni Gasperoni, Executive Vice President, Marketing and Sales, Novus International. “In conjunction with the celebration of World Egg Day, and in support of our corporate vision, we are partnering with the egg industry in Africa and North America to promote the nutritional benefits of eggs. Parents, children, educators and athletic adults need to recognize the importance eggs play in a healthy diet”.

Novus has prepared resource kits for egg industry associations in Africa and North America to utilize through their various distribution channels including schools, clinics and workplaces. The materials in each kit carry the message “I Know the Truth About Eggs” and point to the informational website www.eggtruth.com. Materials include: educational brochures, posters, postcards, t-shirts and a children’s coloring book. Materials have been structured to specifically target parents, children, educators and athletic adults. Read more here from Novus.

Help spread the truth about the “original super food” – at eggtruth.com!

Novus International, Poultry

Connecting International Buyers With U.S. Producers

Chuck Zimmerman

After leaving the NAMA Trends in Agriculture conference I headed on down the agriblogging highway to another conference of importance to U.S. grain producers. This is the Export Exchange 2010 which got off to an official and social start this evening with welcoming remarks from U.S. Grains Council President/CEO Tom Dorr (left) and Renewable Fuels Association President/CEO Bob Dinneen.

The conference is focused on connecting international buyers of DDGS and coarse grains with the U.S. market. I don’t know what the attendance totals are here but we had a full room for the welcoming reception. During the next couple days I’ll have interviews and presentations posted mostly on Domestic Fuel.com from the event.

You can listen to Tom’s opening remarks here: Tom Dorr Remarks

You can listen to Bob’s opening remarks here: Bob Dinneen Remarks

I’m also posting into an online photo album: Export Exchange 2010 Photo Album

Ag Groups, Audio, Ethanol, RFA, USGC