The USDA February Cattle on Feed report showed that feedlot inventories on February 1 were 11.3 million head, down 5.6 percent from last year. January placements were 1.858 million head, up 4 percent from last year and January marketings were 1.737 million head, down 6 percent from one year ago. Both the placement and marketings numbers were slightly higher than expected and the resulting on-feed total was in line with pre-report estimates.
At face value, the decrease in feedlot inventories from last year ought to be bullish and yet fed cattle prices are currently $11 - $12/cwt. lower than this time last year. While fed cattle supplies do not seem to be at burdensome levels, clearly current production is more than adequate for the current level of demand. Since about mid-January the impact of the recession has been increasingly apparent with almost daily indications of demand meltdown and, unfortunately, no end in sight at the moment. Boxed beef prices have dropped $7/cwt. since mid-January. The decline has been larger for Choice relative to Select meat, a further indication of weak demand, with the result that the Choice-Select spread has been less than $1/cwt. several days recently.
The relatively large January placement value was not indicative of strong feeder demand as much as it was the result of feeder cattle carried over from last fall that needed to be moved combined with increasingly dry conditions in some regions, the Southern Plains in particular. We have continued to see relatively large Oklahoma auction runs in February as winter forage and wheat pasture supplies dwindled. We may see a relatively large placement level in February but there will be less feeder cattle movement in March and April as a result. The slight uptick in the estimated January 1 feeder supplies was a short run timing issue as a result of feeder cattle being carried over from November and December into January and February. Feeder supplies will remain tight, particularly as we move past the first quarter of the year.
January feedlot marketings were down from last year but there was one less business day this year compared to 2008. Marketings as a percent of the on-feed total were actually slightly higher than one year ago. There is no strong indication that feedlot supply is a problem or the major cause of the current free fall in fed cattle prices. Some have worried that large carcass weights indicate that feedlots are backed up but these carcass weights are mostly a function of heavier placement weights and good feedlot performance with little winter weather impact on feedlots so far.
The problem is not that we are overfeeding cattle (or feeding too many cattle, in general). The fact is that the recession is severe enough to be impacting food demand generally and beef demand in particular in a much more severe manner than was expected as little as a month ago. Until there are solid signs that macroeconomic confidence is rebuilding, there is little room for optimism in cattle prices. The good news is that when such rebuilding takes place, the supply fundamentals should ensure that beef and cattle prices will respond very quickly.
Source: Derrell S. Peel, OSU Extension Livestock Marketing Specialist
Friday, February 20, 2009
Thursday, February 19, 2009
TSCRA Prepares for 132nd Annual Convention
Cattlemen from across Texas, Oklahoma and New Mexico will gather in Fort Worth March 20-22 at the Fort Worth Convention Center for the 132nd Annual Texas and Southwestern Cattle Raisers Convention and Trade Show.
Economist and futurist Don Reynolds, 21st Century Forecasting, will take a real-world look at the global market prior to, during and following the financial crisis. Randy Blach with Cattle-Fax will review the current cattle market. In addition, TSCRA presents the 15th School for Successful Ranching.
For more information and to register for the upcoming event, CLICK HERE.
Sorghum Genome Sequenced, Now What?
When the scientific journal NATURE prints an article "it usually means it's something pretty significant". That's a comment from Dr. Jeff Dahlberg, Director of Research for the National Sorghum Producers who says the January 29th story titled: "The Sorghum bicolor genome and the diversification of grasses" opens the door for the research community. Now, according to Dahlberg, the roads are paved "and we need to figure out what all the signs mean".
Research will focus on a few key areas including drought-resistance, second-generation biofuels (cellulosic) and increased grain yield. Work done on the drought-resistance gene will lead to better varieties around the world and especially in Africa where food-grade sorghum is a staple of the human diet. With the research, African farmers may soon be growing more food on existing acres to help feed the hungry on their continent.
As for cellulosic ethanol, a recent conference in Houston had researchers from all over the world gathering to discuss the topics of "Sorghum as a Biofuel". The ability to grow more tonnage with higher sugar content could be a milestone for the next generation of ethanol.
The map of the sorghum genome will be a topic at the upcoming Commodity Classic to be held in Grapevine, Texas. Listen to the entire interview with Dahlberg below (under the GUEST INTERVIEWS section).
Research will focus on a few key areas including drought-resistance, second-generation biofuels (cellulosic) and increased grain yield. Work done on the drought-resistance gene will lead to better varieties around the world and especially in Africa where food-grade sorghum is a staple of the human diet. With the research, African farmers may soon be growing more food on existing acres to help feed the hungry on their continent.
As for cellulosic ethanol, a recent conference in Houston had researchers from all over the world gathering to discuss the topics of "Sorghum as a Biofuel". The ability to grow more tonnage with higher sugar content could be a milestone for the next generation of ethanol.
The map of the sorghum genome will be a topic at the upcoming Commodity Classic to be held in Grapevine, Texas. Listen to the entire interview with Dahlberg below (under the GUEST INTERVIEWS section).
2010 The Breakout Year for Feeders
A study designed to help the Beef Checkoff Program in its future decision-making has been completed. Taken every 10 years, the “U.S. Beef Demand Drivers and Enhancement Opportunities” study is a report card on Beef Checkoff Programs. One of the report’s authors, Dr. James Mintert at Kansas State University, says there is - no single dominant beef demand driver that the industry should focus all of its attention on.
Mintert called the beef industry - dynamic, flexible and responsive to many outside influences. He says it’s even more necessary for the Beef Board and state beef council leadership to monitor and adjust to change, and to work with every vertical segment along the way. The biggest concern right now is financial. Mintert points out that -when the economy turns around and beef demand recovers, we will do so with a tight supply base. The Ag economist says, - cow-calf producers need to get through 2009 and possibly 2010, and then things may really bounce back as the U.S. economy recovers. He recommended - invest in risk management to manage downside risk.
Mintert predicts the equity drain on cattle feeders will continue for a while longer. Feeders need to - rationalize what’s taking place and might end up ratcheting down the price we pay for feeder cattle. He noted, - feeders didn’t anticipate demand dropping so drastically and that’s what this market has been about: demand, not supply.
Mintert called the beef industry - dynamic, flexible and responsive to many outside influences. He says it’s even more necessary for the Beef Board and state beef council leadership to monitor and adjust to change, and to work with every vertical segment along the way. The biggest concern right now is financial. Mintert points out that -when the economy turns around and beef demand recovers, we will do so with a tight supply base. The Ag economist says, - cow-calf producers need to get through 2009 and possibly 2010, and then things may really bounce back as the U.S. economy recovers. He recommended - invest in risk management to manage downside risk.
Mintert predicts the equity drain on cattle feeders will continue for a while longer. Feeders need to - rationalize what’s taking place and might end up ratcheting down the price we pay for feeder cattle. He noted, - feeders didn’t anticipate demand dropping so drastically and that’s what this market has been about: demand, not supply.
More Vets Needed
As part of its effort to help address the shortage of food supply veterinarians, the American Veterinary Medical Association recently unveiled a revamped Food Supply Veterinary Medicine Web page. The new page is loaded with information about careers in food supply veterinary medicine, why it’s such a critical field and which states are being hit harder than others by the shortage. According to AVMA Chief Executive Officer Dr. Ron DeHaven, - a recent study commissioned by the AVMA indicates the demand for veterinarians in food supply veterinary medicine will increase about 13 percent during the next several years. The supply will fall short of what is needed by about 4 percent or 5 percent annually. The number of veterinary school graduates entering food supply medicine remains stagnant, and this lack of growth, DeHaven says, has all the makings of a crisis. He says - few jobs are more important when it comes to food safety than that of the veterinarian. The revamped Food Supply Veterinary Medicine Web page can be found at www.avma.org.
Roots Are Good?
Crops with an extensive root system can help clean up excess nitrogen after shallow rooted crops. A 10-year study conducted by Agricultural Research Service scientists evaluated and compared potential management strategies for reducing nitrogen and nitrate nitrogen levels in soil and groundwater. The research focused on irrigated cropping systems in the Arkansas River Valley, an agricultural region of Colorado. What was found is that corn was a good residual nitrogen scavenger crop.
The cause is, in part, due to heavy application of nitrogen fertilizer and the prevalence of shallow-rooted crops such as onions. Onions used only about 12 to 15 percent of the fertilizer nitrogen applied to the crop. Much of the remainder stayed in the top six feet of soil. The next year corn recovered about 24 percent of the fertilizer nitrogen that had been applied to the onion crop.
Following that study, the scientists grew alfalfa on the land for five years, followed with a watermelon crop and then a corn crop. In the first year that corn was grown, an unfertilized control plot yielded about 250 bushels of corn. By comparison, a plot fertilized with 250 pounds of nitrogen per acre yielded about 260 bushels.
The cause is, in part, due to heavy application of nitrogen fertilizer and the prevalence of shallow-rooted crops such as onions. Onions used only about 12 to 15 percent of the fertilizer nitrogen applied to the crop. Much of the remainder stayed in the top six feet of soil. The next year corn recovered about 24 percent of the fertilizer nitrogen that had been applied to the onion crop.
Following that study, the scientists grew alfalfa on the land for five years, followed with a watermelon crop and then a corn crop. In the first year that corn was grown, an unfertilized control plot yielded about 250 bushels of corn. By comparison, a plot fertilized with 250 pounds of nitrogen per acre yielded about 260 bushels.
Tuesday, February 17, 2009
Livestock Pharmaceuticals: A Positive R.O.I.?
A recent Iowa State University study found that in times of high feed costs, such as the cattle industry experienced in 2007, the positive economic impact of pharmaceutical technologies commonly used in beef production increased from 430-dollars per animal to 524 per head. That’s an increase of 22 percent. The previous study was conducted in 2005.
Dr. John Lawrence, PhD and professor of economics at ISU says, - since most of these pharmaceutical technologies improve feed efficiency and/or increase pounds of gain, it should not be surprising that they have a greater impact during times of high feed costs. While the market price for calves and feeder cattle going into the feedlot has decreased as feed costs have increased, Lawrence said, - the price decline would have been larger if stocker operations and feedlots did not use efficiency-improving technologies. If the pharmaceuticals had not been used, Lawrence calculated that the U.S beef industry would have seen - a 14 percent smaller calf crop – a 19 percent reduction in total beef produced – a 11 percent increase in retail beef prices – a 9 percent decrease in beef consumption and a 247 percent increase in beef imports.
Dr. John Lawrence, PhD and professor of economics at ISU says, - since most of these pharmaceutical technologies improve feed efficiency and/or increase pounds of gain, it should not be surprising that they have a greater impact during times of high feed costs. While the market price for calves and feeder cattle going into the feedlot has decreased as feed costs have increased, Lawrence said, - the price decline would have been larger if stocker operations and feedlots did not use efficiency-improving technologies. If the pharmaceuticals had not been used, Lawrence calculated that the U.S beef industry would have seen - a 14 percent smaller calf crop – a 19 percent reduction in total beef produced – a 11 percent increase in retail beef prices – a 9 percent decrease in beef consumption and a 247 percent increase in beef imports.
President Signs Stimulus Package: Farm Bureau Pleased
President Barack Obama traveled to Denver on Tuesday where he signed into law the massive economic stimulus package. The President of The American Farm Bureau Federation says his organization is pleased with the broadband, renewable energy and tax provisions contained in the stimulus package. Bob Stallman said - the 7.2-billion dollars allocated for broadband will help rural communities participate in our recovering economy, while modernizing rural education and healthcare.
Stallman also said it will allow farmers and ranchers to take advantage of technology to help them remain profitable and competitive. The tax incentives for renewable energy, particularly for new renewable fuels, will help build an industry that will provide farmers and ranchers with income and the rural economy with jobs and the Farm Bureau president added that the extension of both the small business expensing levels and bonus depreciation tax will help farmers and ranchers improve cash flow while aiding the economy by encouraging purchases of equipment.
Stallman also said it will allow farmers and ranchers to take advantage of technology to help them remain profitable and competitive. The tax incentives for renewable energy, particularly for new renewable fuels, will help build an industry that will provide farmers and ranchers with income and the rural economy with jobs and the Farm Bureau president added that the extension of both the small business expensing levels and bonus depreciation tax will help farmers and ranchers improve cash flow while aiding the economy by encouraging purchases of equipment.
Upcoming Peanut Workshops Draw Renewed Interest
The Texas AgriLife Extension Service will conduct two free peanut production workshops on Feb. 24 in Levelland and on Feb. 25 in Seminole. The annual events, now in their sixth year, are tailored for production practices found at each South Plains region, said Dr. Calvin Trostle, AgriLife Extension crops specialist at Lubbock.
“We’ll be presenting the latest information available pertaining to peanut varieties, fertility, irrigation, disease and weed control,” Trostle said. Three Texas Department of Agriculture continuing education units will be available at each workshop. Both meetings will include sponsored lunches.
The Feb. 24 Levelland workshop meets at the Brasch-Mitchell Building located at 513 Ave. G. Activities will begin at 9 a.m. with registration and will end at 2:30 p.m. For more information contact the AgriLife Extension office in Hockley County at 806-894-3159. The Seminole workshop on Feb. 25 is set for the Gaines County Civic Building located at Northwest Ave. E and Northwest 5th Street. Registration will start at 8:30 a.m. and the program will end at 2 p.m. For more information call the AgriLife Extension office in Gaines County at 432-758-4006.
“We’ll be presenting the latest information available pertaining to peanut varieties, fertility, irrigation, disease and weed control,” Trostle said. Three Texas Department of Agriculture continuing education units will be available at each workshop. Both meetings will include sponsored lunches.
The Feb. 24 Levelland workshop meets at the Brasch-Mitchell Building located at 513 Ave. G. Activities will begin at 9 a.m. with registration and will end at 2:30 p.m. For more information contact the AgriLife Extension office in Hockley County at 806-894-3159. The Seminole workshop on Feb. 25 is set for the Gaines County Civic Building located at Northwest Ave. E and Northwest 5th Street. Registration will start at 8:30 a.m. and the program will end at 2 p.m. For more information call the AgriLife Extension office in Gaines County at 432-758-4006.
Most Feedlots Fare Well Under EPA Rule
A group of Texas-based researchers provided answers for the nation’s cattle feeding industry after it was given a very short window by the U.S. Environmental Protection Agency to begin reporting ammonia and hydrogen sulfide emissions. The EPA issued a final ruling on Dec. 18 that required the reporting of continuous air releases of these gases by large confined animal feeding operations to local and state emergency management entities. Until this ruling, the EPA had not required agricultural operations to report air emissions under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 and Emergency Planning and Community Right-to-Know Act of 1986. But with the new EPA rule, it was determined the reporting was required under the 1986 act and operations falling within the guidelines must report emissions by Jan. 20, said Ben Weinheimer, Texas Cattle Feeders Association vice president.
The rule applies to operations that can emit 100 pounds or more of ammonia or hydrogen sulfide during any 24-hour period, Weinheimer said. These operations are now required to report the emissions to state and local emergency responders. But with the rule came no guidelines on how to gather that information or report it, and there were no officially adopted emission factors available, he said. Research from this project has shown that emission rates for ammonia during winter months are about half of the emission rates during summer months. Concentrations measured at the center of a commercial Panhandle feed yard were substantially below the Texas regulatory threshold for the property boundary during the majority of the two-year monitoring period and concentrations at the boundary were considerably less than those measured at the center of the yard.
Weinheimer said with the quick response of the research group, the National Cattlemen’s Beef Association was able to send out “reporting packets” to feed yards in early January and conduct a Webinar on Jan. 15 to explain the requirements to its members. “From day one, this project has been founded on solid research objectives to address multiple air quality issues facing the cattle feeding industry,” said Ross Wilson, president and chief executive officer of Texas Cattle Feeders. Wilson said it was through this group’s efforts and provided data that the industry was able to make a good faith estimate of the lower and upper bounds for both ammonia and hydrogen sulfide emissions.
The rule applies to operations that can emit 100 pounds or more of ammonia or hydrogen sulfide during any 24-hour period, Weinheimer said. These operations are now required to report the emissions to state and local emergency responders. But with the rule came no guidelines on how to gather that information or report it, and there were no officially adopted emission factors available, he said. Research from this project has shown that emission rates for ammonia during winter months are about half of the emission rates during summer months. Concentrations measured at the center of a commercial Panhandle feed yard were substantially below the Texas regulatory threshold for the property boundary during the majority of the two-year monitoring period and concentrations at the boundary were considerably less than those measured at the center of the yard.
Weinheimer said with the quick response of the research group, the National Cattlemen’s Beef Association was able to send out “reporting packets” to feed yards in early January and conduct a Webinar on Jan. 15 to explain the requirements to its members. “From day one, this project has been founded on solid research objectives to address multiple air quality issues facing the cattle feeding industry,” said Ross Wilson, president and chief executive officer of Texas Cattle Feeders. Wilson said it was through this group’s efforts and provided data that the industry was able to make a good faith estimate of the lower and upper bounds for both ammonia and hydrogen sulfide emissions.
US Grains Council Continues to Build Demand
According to long-term projections released last week by USDA, growth in coarse grain trade is – strongly - linked to expansion of livestock and poultry industries in regions unable to meet their own feed needs. The report lists China, Mexico, North Africa, the Middle East and Southeast Asia as the top growth markets. U.S. Grains Council Chairman Jim Broten, says – it is no coincidence – that USGC is conducting hands-on market development programs to expand livestock industries in those same areas.
Council members identified these developing markets as top priorities during the Council’s International Marketing Conference in Guatemala last week. Broten says - by taking down trade barriers, developing and nurturing those markets we were able to generate 659-million dollars for U.S. farmers in 2008.
The USDA report projects a recovery after 2010, which will remain slightly above the historical average long-term growth rate during the last half of the 2009-2018 period. This renewed growth provides the foundation for gains in world demand. According to Mike Dwyer, chief economist of USDA’s Foreign Agricultural Service, the efforts of the Council certainly pushed U.S. feed grain demand upward. World coarse grains trade is projected to expand nearly 19 million tons or 16 percent from 2009-2018.
Council members identified these developing markets as top priorities during the Council’s International Marketing Conference in Guatemala last week. Broten says - by taking down trade barriers, developing and nurturing those markets we were able to generate 659-million dollars for U.S. farmers in 2008.
The USDA report projects a recovery after 2010, which will remain slightly above the historical average long-term growth rate during the last half of the 2009-2018 period. This renewed growth provides the foundation for gains in world demand. According to Mike Dwyer, chief economist of USDA’s Foreign Agricultural Service, the efforts of the Council certainly pushed U.S. feed grain demand upward. World coarse grains trade is projected to expand nearly 19 million tons or 16 percent from 2009-2018.
Peanut Company files for Chapter 7 Bankruptcy
Peanut Corporation of American (PCA) has filed for Chapter 7 bankruptcy protection. The company faces a pile of legal claims against it as it finds itself at the center of a nationwide salmonella scare. At least 47 individuals have filed claims against PCA. Now the company's distributors and insurance carrier are seeking to limit their liability.
The bankruptcy filings show that the company carries debt between 100 and 199 creditors and faces between one-million and 10-million in liabilities. Company assets are listed as being worth between one-million and 10-million dollars. The company’s bankruptcy attorney, Andrew Goldstein, said - PCA was hoping to be able to reorganize, but - that wouldn't be possible.
So far, PCA's products have been linked to nine deaths and 636 cases of food poisoning in 44 states. Federal investigators are probing the company's processing facilities in Georgia, Texas and Virginia, as well as its owner, Stewart Parnell.
The bankruptcy filings show that the company carries debt between 100 and 199 creditors and faces between one-million and 10-million in liabilities. Company assets are listed as being worth between one-million and 10-million dollars. The company’s bankruptcy attorney, Andrew Goldstein, said - PCA was hoping to be able to reorganize, but - that wouldn't be possible.
So far, PCA's products have been linked to nine deaths and 636 cases of food poisoning in 44 states. Federal investigators are probing the company's processing facilities in Georgia, Texas and Virginia, as well as its owner, Stewart Parnell.
Floydada Cotton Farmer to lead NCC in 2010
Jay Hardwick, a Newellton, LA, cotton producer, was elected chairman of the National Cotton Council (NCC) for 2009. Named during the NCC’s annual meeting in Washington, DC., he succeeds Larry McClendon, a Marianna, AR producer/ginner.
Hardwick’s Somerset Plantation farming operation in northeast Louisiana adjacent to the Mississippi River includes cotton, corn, grain sorghum, soybeans and wheat. He is a former chairman of the NCC’s American Cotton Producers, currently serves as secretary of Cotton Incorporated and is also vice president of the Louisiana Cotton Warehouse Association and of the Newellton Gin Company. He is a director of Tensas Warehouse, Tensas State Bank's Farm and Livestock Credit and the Tensas Concordia Soil and Water Conservation District. He is a past president of the Louisiana Cotton Producers Association and past secretary of the National Peanut Board.
Jay attended Arizona State University and earned a Ph.D. from the University of New Mexico. He and his wife, Mary, have two sons, Mead and Marshall, and have been farming since 1981.
The NCC’s vice chairman for 2009 is Eddie Smith, a Floydada, TX, cotton producer. Smith will become Chairman of the Council in 2010. He currently serves as Chairman of Plains Cotton Cooperative Association in Lubbock and is a past-Chairman of the Cotton Board. Smith - a native of Lorenzo, TX - and his son Eric, produce cotton, wheat, sorghum and run a cow/calf and stocker operation in Floyd County, Texas.
Hardwick’s Somerset Plantation farming operation in northeast Louisiana adjacent to the Mississippi River includes cotton, corn, grain sorghum, soybeans and wheat. He is a former chairman of the NCC’s American Cotton Producers, currently serves as secretary of Cotton Incorporated and is also vice president of the Louisiana Cotton Warehouse Association and of the Newellton Gin Company. He is a director of Tensas Warehouse, Tensas State Bank's Farm and Livestock Credit and the Tensas Concordia Soil and Water Conservation District. He is a past president of the Louisiana Cotton Producers Association and past secretary of the National Peanut Board.
Jay attended Arizona State University and earned a Ph.D. from the University of New Mexico. He and his wife, Mary, have two sons, Mead and Marshall, and have been farming since 1981.
The NCC’s vice chairman for 2009 is Eddie Smith, a Floydada, TX, cotton producer. Smith will become Chairman of the Council in 2010. He currently serves as Chairman of Plains Cotton Cooperative Association in Lubbock and is a past-Chairman of the Cotton Board. Smith - a native of Lorenzo, TX - and his son Eric, produce cotton, wheat, sorghum and run a cow/calf and stocker operation in Floyd County, Texas.
Monday, February 16, 2009
Cotton Seed Cost Calculator Now Available
An updated version of the Plains Cotton Growers Seed Cost Calculator for 2009 is now available. Growers interested in comparing prices for their 2009 planting seed options can download the calculator by clicking here.
The 2009 version includes 112 conventional, Roundup Ready, Roundup Ready FLEX, Liberty Link, Bollgard and Bollgard II and Widestrike varieties, as well as numerous stacked gene versions of these technologies that will be available for sale in West Texas in 2009. Should information on additional varieties become available, an update to the spreadsheet will be developed and posted on PCG's website.
The PCG calculator is an interactive Microsoft Excel spreadsheet that allows producers to calculate an estimated cost per acre, for both seed and technology, based on published suggested retail prices.
The 2009 version includes 112 conventional, Roundup Ready, Roundup Ready FLEX, Liberty Link, Bollgard and Bollgard II and Widestrike varieties, as well as numerous stacked gene versions of these technologies that will be available for sale in West Texas in 2009. Should information on additional varieties become available, an update to the spreadsheet will be developed and posted on PCG's website.
The PCG calculator is an interactive Microsoft Excel spreadsheet that allows producers to calculate an estimated cost per acre, for both seed and technology, based on published suggested retail prices.
U.S. Cotton Industry Outlook Tied to Demand Recovery
The U.S. cotton industry continues to face “a very competitive and difficult economic climate” but there are some reasons for optimism in the coming year, National Cotton Council Economist Dr. Gary Adams said in presenting the 2009 Economic Outlook to the NCC’s 71st Annual Meeting in Washington, DC. In describing the world outlook for 2009, Adams said world cotton production is projected to fall 4.3 million bales to 105.5 million bales – the smallest crop since 2003. World mill use will recover to 113.8 million bales. The smaller crop and increased mill use would allow stocks to decline to 56.3 million bales from 62.2 million in 2008. China and India will continue to be important players. He said both countries governments have made policy decisions that have moved significant amounts of the 2008 crop into government stocks – and how they handle those stocks’ release will affect U.S. exports. He noted that for the 2009 marketing year, a slight recovery in China’s mill cotton use to 47.2 million bales is expected along with a cotton crop decline to 32.6 million bales from 36.5 million in 2008 – which would result in China importing 9.6 million bales in the 2009 marketing year. On the other hand, he said India may return as a more significant exporter in 2009 as that country’s production is expected to be near current levels with only a slight recovery in mill use.
The economist told delegates the NCC sees a slight contraction in U.S. cotton offtake for 2009 with U.S. cotton exports projected at 11.2 million bales and U.S. mill cotton use at 3.9 million bales. On a positive note, Adams said the much-needed economic assistance included in the 2008 Farm Bill has been implemented and textile mills are submitting the necessary documentation to receive 4 cents per pound on their cotton consumption. Also, the United States’ government has begun monitoring certain U.S. textile and apparel imports from China in a move aimed at preventing a repeat of the disruptive surge of Chinese textile/apparel exports to this country following the discontinuation of quotas in 2005. One significant cause for optimism, Adams says, is that due largely to lower oil prices, costs of purchased crop inputs could range from $50 to $100 per acre lower than in 2008, depending on specific production practices.
The economist told delegates the NCC sees a slight contraction in U.S. cotton offtake for 2009 with U.S. cotton exports projected at 11.2 million bales and U.S. mill cotton use at 3.9 million bales. On a positive note, Adams said the much-needed economic assistance included in the 2008 Farm Bill has been implemented and textile mills are submitting the necessary documentation to receive 4 cents per pound on their cotton consumption. Also, the United States’ government has begun monitoring certain U.S. textile and apparel imports from China in a move aimed at preventing a repeat of the disruptive surge of Chinese textile/apparel exports to this country following the discontinuation of quotas in 2005. One significant cause for optimism, Adams says, is that due largely to lower oil prices, costs of purchased crop inputs could range from $50 to $100 per acre lower than in 2008, depending on specific production practices.
Bayer CropScience Announces 2009 Cotton Varieties
After hundreds of replicated trials and several years of hard work, Bayer CropScience has announced that four experimental cotton varieties have performed consistently and notably enough to join the ranks of FiberMax® and Stoneville® cotton. Jeff Brehmer, U.S. marketing manager, Stoneville and FiberMax cotton, said these new varieties will raise the bar for yield and quality potential. The four varieties ― FM 9160B2F, FM 1845LLB2, ST 4288B2F and ST 5288B2F ― all feature broad adaptability, high-yield potential and excellent fiber packages, Brehmer said.
FM 9160B2F is a medium-maturity Bollgard II®/Roundup Ready® Flex variety with a moderate growth habit. It is adapted to the Southwest region with excellent storm resistance and early indications of good Verticillium wilt tolerance. FM 9160B2F also exhibited a yield advantage in multiple trials over standards such as FM 9063B2F and FM 9180B2F.
FM 1845LLB2 is an easy-to-manage, medium-maturity variety with broad adaptation across the Mid-South, Southeast and Mid-Atlantic production regions. Brehmer said FM 1845LLB2 consistently out-yielded FM 1735LLB2 by more than 100 lbs/A in trials, and said it will bring the trademark FiberMax quality to Southeast cotton growers. The LibertyLink® trait allows growers to spray Ignite® herbicide over-the-top to control more than 120 species of broadleaf weeds and grasses, including glyphostate-resistant pigweed and marestail.
ST 4288B2F is an early-to-midmaturing variety well-adapted across the Mid-South, Southeast and Mid-Atlantic in both irrigated and dryland conditions. Although it matures relatively earlier than Stoneville varieties such as ST 4554B2F, it has often out-yielded this variety in company trials. ST 4288B2F has a good fiber package with premium-grade length, strength and uniformity possible.
ST 5288B2F is a medium-maturing variety that fits well in the Mid-South, Southeast and Mid-Atlantic production regions. It has the excellent seedling vigor growers have come to expect from Stoneville, and it sets a high level of fruiting nodes. Careful in-season management plus an aggressive, timely defoliation program will reward growers with maximum yield and fiber quality potential.
For more information on the complete 2009 lineup of FiberMax and Stoneville varieties, contact your local Bayer CropScience field representative or visit www.CottonExperts.com.
FM 9160B2F is a medium-maturity Bollgard II®/Roundup Ready® Flex variety with a moderate growth habit. It is adapted to the Southwest region with excellent storm resistance and early indications of good Verticillium wilt tolerance. FM 9160B2F also exhibited a yield advantage in multiple trials over standards such as FM 9063B2F and FM 9180B2F.
FM 1845LLB2 is an easy-to-manage, medium-maturity variety with broad adaptation across the Mid-South, Southeast and Mid-Atlantic production regions. Brehmer said FM 1845LLB2 consistently out-yielded FM 1735LLB2 by more than 100 lbs/A in trials, and said it will bring the trademark FiberMax quality to Southeast cotton growers. The LibertyLink® trait allows growers to spray Ignite® herbicide over-the-top to control more than 120 species of broadleaf weeds and grasses, including glyphostate-resistant pigweed and marestail.
ST 4288B2F is an early-to-midmaturing variety well-adapted across the Mid-South, Southeast and Mid-Atlantic in both irrigated and dryland conditions. Although it matures relatively earlier than Stoneville varieties such as ST 4554B2F, it has often out-yielded this variety in company trials. ST 4288B2F has a good fiber package with premium-grade length, strength and uniformity possible.
ST 5288B2F is a medium-maturing variety that fits well in the Mid-South, Southeast and Mid-Atlantic production regions. It has the excellent seedling vigor growers have come to expect from Stoneville, and it sets a high level of fruiting nodes. Careful in-season management plus an aggressive, timely defoliation program will reward growers with maximum yield and fiber quality potential.
For more information on the complete 2009 lineup of FiberMax and Stoneville varieties, contact your local Bayer CropScience field representative or visit www.CottonExperts.com.
Economic Recovery Package benefts Rural America
Senator Tom Harkin (D-IA) says the economic recovery package contains key provisions that will direct crucial funding toward rural development, nutrition and conservation initiatives, many of which were included in the farm bill. Harkin is Chairman of the Senate Committee on Agriculture, Nutrition and Forestry.
Seven Rural Development and Conservation Highlights
1. Broadband: $2.5 billion for grants, loans and guarantees through the Rural Utility Service, to provide improved broadband availability in rural areas.
2. Rural Water and Waste Disposal Loans and Grants: $1.38 billion to support $968 million in grants and $2.8 billion in loans to eliminate the approved application backlog.
3. Agricultural Research Service Building Improvements: $176 million in funding to address the deferred maintenance of the ARS’s aging laboratory and research infrastructure. Funding from this provision could be used to address the over $20 million in improvement need at the Animal Disease Lab in Ames, Iowa.
4. Rural Housing Assistance: $200 million to support $11.4 billion in direct and guaranteed loans that will provide home ownership opportunities for low to moderate-income families in rural areas.
5. Rural Community Facility Program for towns of under 20,000: $130 million to support $1.17 billion in loans and $67 million in grants with an emphasis on day care and elder care facilities, hospitals, health clinics and public safety.
6. Business & Industry Loan Guarantee Program: $150 million to support $3 billion in guarantees and $20 million in related grants particularly important for many businesses facing credit difficulties. These loans and grants will help bolster the existing credit structure to improve, develop, or finance business, industry, and employment to improve the economic climate in rural communities of fewer than 50,000 people.
7. Watershed Flood and Prevention Operations: $290 million was provided for this program, with $145 million set aside for the purchase and restoration of floodplains. The floodplain easement funding is particularly important to Iowa, which has an existing backlog of floodplain easements.
Seven Rural Development and Conservation Highlights
1. Broadband: $2.5 billion for grants, loans and guarantees through the Rural Utility Service, to provide improved broadband availability in rural areas.
2. Rural Water and Waste Disposal Loans and Grants: $1.38 billion to support $968 million in grants and $2.8 billion in loans to eliminate the approved application backlog.
3. Agricultural Research Service Building Improvements: $176 million in funding to address the deferred maintenance of the ARS’s aging laboratory and research infrastructure. Funding from this provision could be used to address the over $20 million in improvement need at the Animal Disease Lab in Ames, Iowa.
4. Rural Housing Assistance: $200 million to support $11.4 billion in direct and guaranteed loans that will provide home ownership opportunities for low to moderate-income families in rural areas.
5. Rural Community Facility Program for towns of under 20,000: $130 million to support $1.17 billion in loans and $67 million in grants with an emphasis on day care and elder care facilities, hospitals, health clinics and public safety.
6. Business & Industry Loan Guarantee Program: $150 million to support $3 billion in guarantees and $20 million in related grants particularly important for many businesses facing credit difficulties. These loans and grants will help bolster the existing credit structure to improve, develop, or finance business, industry, and employment to improve the economic climate in rural communities of fewer than 50,000 people.
7. Watershed Flood and Prevention Operations: $290 million was provided for this program, with $145 million set aside for the purchase and restoration of floodplains. The floodplain easement funding is particularly important to Iowa, which has an existing backlog of floodplain easements.
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