FAPRI: Crop Prices Dropping Even More

John Davis

FAPRI logoA new report is either good news or bad news, depending on whether you just raise crops or just raise livestock. But for many producers who do both, the latest report from the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri is certainly a dose of both good and bad news. Earlier this month, we told you how FAPRI reported prices for corn and soybeans were dropping, and strong demand and easing feed prices are helping livestock producers. While this latest report doesn’t address the livestock situation directly, it does say how corn and soybean prices are expected to drop even more than first expected as this year’s harvest is expected to be bigger than first expected.

– Larger corn and soybean crops translate into lower projected 2014/15 prices for many grains and oilseeds. Corn prices drop to $3.50 per bushel, soybeans to $9.92 per bushel and wheat to $5.91. In all three cases, these projected prices are close to the midpoint of the price ranges reported in the September USDA World Agricultural Supply and Demand Estimates.

– Larger crops in 2014/15 also result in larger beginning stocks and total crop supplies in 2015/16. As a result, corn and soybean prices for next year’s crop are lower than projected in August. Corn prices average $3.80 per bushel in 2015/16, and soybean prices drop to $9.04 per bushel.

– Prices recover as markets adjust. Corn prices average $4.10 per bushel, soybeans average $10.21 per bushel, and wheat averages $5.78 per bushel over the 2016‐18 period.

– Upland cotton price projections for 2014/15 are largely unchanged from last month, as USDA estimates suggest offsetting reductions in domestic supplies and global demand. The weaker global demand is assumed to continue, slightly reducing price projections for 2015/16 and beyond relative to previous estimates.

FAPRI says this information is of particular importance as now under the 2014 farm bill, producers must make a one‐time election to participate in the Agriculture Risk Coverage (ARC) or the Price Loss Coverage (PLC) program for the life of the five-year bill, and how much they might get in payments is very reliant to expected crop prices.

Animal Agriculture, Corn, Cotton, Farm Bill, Feed, Livestock, Soybean

USDA Deregulates ENLIST Crops

Cindy Zimmerman

enlistUSDA has issued a decision to deregulate Dow AgroSciences’ Enlist™ 2,4-D and glyphosate-resistant corn and soybean traits in the United States.

“Gaining approval for this important technology has been a long, hard fought battle,” said National Corn Growers Association Trade Policy and Biotechnology Action Team Chair Jim Zimmerman of Wisconsin. “It is important that farmers continue to gain access to the tools that they need in the field through a science-based, timely regulatory system. We look forward to similar results for other herbicide systems in the future.”

The USDA decision states that the agency finds no issues with the release of the crop. USDA reached a determination of nonregulated status based on the findings of its Environmental impact statement and plant pest risk assessment. The company now awaits EPA registration of Enlist Duo™ herbicide, the companion herbicide to the Enlist traits.

Launch intentions for Enlist in 2015 will be provided after the EPA has issued its decision on Enlist Duo herbicide.

Agribusiness, Biotech, Corn, Soybean, USDA

USDA Offers Aid to Replant Florida Citrus

Cindy Zimmerman

greeningUSDA is offering new financial assistance to eligible Florida citrus growers for the removal of trees afflicted with Huanglongbing (HLB), better known as citrus greening, and for replanting groves with new healthy stock. The support comes through USDA’s Tree Assistance Program.

Making the announcement today, Agriculture Secretary Tom Vilsack said this action is to help growers as USDA continues to invest in research and a variety of strategies to combat citrus greening over the long-term.

“In the meantime though, this support will help ensure growers are not wiped out in the short-term,” Vilsack said. “We must ensure that Florida’s citrus industry can weather this storm while a more permanent solution to this problem is developed. The key to the citrus industry’s survival is getting new trees in the ground, and we’re doing everything we can to help with that.”

Because HLB damages and then kills citrus trees over time, USDA has expanded the Tree Assistance Program to allow Florida producers to remove and replace trees as they decline. Previously, to receive program assistance, all citrus tree deaths had to occur in one year. Now, farmers can receive support as trees decline/die over a period of up to six years.

“There are too many jobs and there’s too much product that’s at risk here,” said Vilsack of Florida’s citrus industry, which contributes $9 billion per year to the state’s economy and supports about 76,000 jobs, accounting for 63 percent of all U.S. citrus production.

Secretary Vilsack provided details on a conference call with reporters. Ag Secretary Tom Vilsack announces citrus greening aid

Audio, Citrus, USDA

In the John Deere Green Room

Cindy Zimmerman

deere-14-green-roomWhen John Deere launches new products every year, the most important people to tell about them are the dealers, and that includes the latest digital offerings.

At the recent John Deere product launch, dealers learned a lot about the MyJohnDeere Operations Center with new tools for farmers to manage their machinery and develop agronomic insights. Ashley Hanold was one of the product managers with John Deere who gave dealers and media a look inside the operations center in a room that was pretty John Deere green.


2015 John Deere Product Launch Photo Album

John Deere, Video

Zimfo Bytes

Talia Goes

Zimfo Bytes

Zimfo Bytes

GOP Ag Commissioners say “Ditch the Rule”

Leah Guffey

logoMembers of the Republican Agriculture Commissioners Committee hosted a conference call Monday to discuss the impact of federal overreach on agriculture in the United States and back the National Association of State Departments of Agriculture (NASDA) in calling for the proposed “Waters of the U.S.” (WOTUS) rule to be withdrawn.

Louisiana Commissioner of Agriculture Mike Strain says regulation of resources is best done from the ground up. “Many of the laws passed by Congress, especially the Clean Water Act, specifically state that the primary jurisdiction is within the states themselves,” said Stain.

“The reality is, we’re being regulated to death,” said Doug Goehring, Commissioner of Agriculture for North Dakota, who offered the action item on WOTUS to the NASDA annual meeting last week. “When we have over 4500 new regulations that have come through different agencies on the federal level, you’ve got to wonder, what are they being designed for?”

Also speaking on behalf of RACC were Iowa Secretary of Agriculture Bill Northey, and South Carolina Commissioner of Agriculture Hugh Weathers.

You can listen to the conference call here: Press call with Republican Ag Commissioners on WOTUS

Audio, Environment

Conservation Innovation Grants Announced

Leah Guffey

During a visit to a farm in Moline, Illinois Monday, Agriculture Secretary Tom Vilsack announced the award of $15.7 million in Conservation Innovation Grants (CIGs) to 47 organizations that will help develop and demonstrate cutting-edge ideas to accelerate innovation in private lands conservation, funded through the Environmental Quality Incentives Program (EQIP).

Almost half of the grants announced support the agency’s priority of getting more conservation on the ground by improving the health of our nation’s soils. The National Corn Growers Association will receive almost $1 million to promote soil management practices aimed at improving productivity, profitability and environmental outcomes in seven states. The National Association of Conservation Districts will receive $750,000 to fund a project to significantly increase the number of farmed acres nationwide (including Illinois) that are successfully managed for soil health. Other organizations, tribes and academic institutions will receive funding for conservation projects.

Natural Resources Conservation Service (NRCS) Chief Jason Weller discussed the new grants during a press conference on Monday – listen to him here: Press Conference with Jason Weller, NRCS

Audio, Conservation, USDA

Missouri Right To Farm Prevails in Recount

Cindy Zimmerman

mo-right-to-farmThe recount is complete for Amendment 1, the Missouri Farming Rights Amendment, and the very close Aug. 5 election results have been upheld.

“It changed slightly but the original result does stand,” said Mike Deering, Missouri Cattlemen’s Association executive vice president. “Amendment One has passed in the state of Missouri, forever guaranteeing Missouri farmers and ranchers the right to do just that – farm and ranch.”

The recount picked up a few more no votes on the amendment with passage by less than 2400 votes out of nearly a million cast.

Interview with Mike Deering, Missouri Cattlemen's Association
Ag Groups, Audio

NAMA Announces Professional Development Awards of Excellence

Jamie Johansen

namaThe National Agri-Marketing Association (NAMA) has named four recipients of the 2014 Professional Development Awards of Excellence. These awards honor NAMA members based on outstanding achievement in four professional development areas including: marketing communications, public relations, product/species management and sales.

Award winners include:
Marketing Communications Award of Excellence
Ryan Rarking, marketing communications manager, Beck’s Hybrids
Public Relations Award of Excellence
Lisa Adams, principal, public relations, Sage Virtual Communications
Product/Species Management Award of Excellence
Kelly Smith, product management administrator, Kuhn North American, Inc.
Sales Award of Excellence
Gary Vorpahl, Hoard’s Dairyman

These professional development awards of excellence will be presented at the 2014 NAMA Fall Conference in Chicago, IL. The honorees will receive their awards during a morning session on Wednesday, September 17, at The Hotel Chicago. For more information on the Professional Development Awards visit, http://nama.org/awards/pdaawards.htm.

Ag Groups, NAMA

The New John Deere 9R/9RT Series Tractors

Chuck Zimmerman

John Deere 9R SeriesZimmGlass got a good look at the new John Deere 9R/9RT Tractors at the recent 2015 Products Launch. In this video you’ll learn about the features of this new series of 4-wheel drive tractors and see from my view as I test drive one. Note to self: Do not try to video tape your driving experience while driving. Not easy! Especially when you have not had any recent experience with articulated steering.

Large-scale farmers who need to cover a lot of acres under tough conditions need a high-horsepower, no-nonsense tractor with a large, comfortable cab that works as hard as they do. The new 9R/9RT Series from John Deere gives them exactly that.

The new 9R/9RT Series Tractors feature more horsepower across all models and industry-leading hydraulic capacity in durable, articulated four-wheel-drive and track tractor platforms. These machines are ideal for row-crop applications and large-acre small-grain operations with tough field conditions and hillside terrain, as well as the high-performance demands of the scraper market.
The 9R/9RT Series features 10 models with wheels and six tracked models to meet any farming or land management need.

You can learn more about the new series of tractors here.


2015 John Deere Product Launch Photo Album

Agribusiness, John Deere, Video