TWO GOVERNMENT agencies concluded there are multiple factors that play a role in increased honeybee losses. ............................2
WIND ENERGY can provide a sustainable source of farm income, thousands of attendees at a wind energy conference were told. ..........4
AN INDEPENDENT business leader discusses an IFB action priority: improving the business climate. ..........................9
Black Friday: USDA crop estimates sink markets Monday, May 13, 2013
BY DANIEL GRANT FarmWeek
Crop markets tumbled Friday as USDA released production and supply/demand reports that were bullish for crop production and bearish for prices. U.S. farmers this year, despite the late start to planting, are expected to harvest a 14.1-billion-bushel corn crop (up 3.4 billion bushels from last year) and 3.39 billion bushels of beans (up 375 million bushels from a year ago). National yield averages for this year were forecast by USDA on Friday at 158 bushels per acre for corn, down 5.6 bushels from the February estimate but up 35 bushels from last year, and 44.5 bushels per acre for beans, up 4.9 bushels from a year ago. USDA also projected a substantial increase in world corn and wheat production and predicted a considerable drop in prices. “A fall price at $4 (per bushel for corn) is very likely if we get the crop in and get good weather,” Brad Paulson, president of Northern Crops Marketing and Investments, said during a teleconference hosted Friday by the Min-
Two sections Volume 41, No. 19
neapolis Grain Exchange. USDA predicted ending stocks in 2013/14 will jump to 2 billion bushels for corn (up 1.2 billion bushels from 2012/13) and 265 million bushels for beans (up 140 million bushels from 2012/13).
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Meanwhile, USDA also predicted world corn production this year will set a fourth consecutive record while global wheat supplies were projected to increase 3 percent. “There’s not really any positive numbers in the reports at all,” Paulson said. USDA projected seasonaverage price ranges for 2013/14 of $4.30 to $5.10 per bushel for corn (down from $6.70 to $7.10 in 2012/13), $9.50 to $11.50 for beans (down from the average of $14.30 in 2012/13), and $6.15 to $7.45 for wheat (down from the record average of $7.80 in 2012/13). “We’re looking by harvest at sharply lower prices for
corn and soybeans than what currently is offered in the futures markets,” Bill Tierney, market analyst with AgResource Co., said during a webinar hosted by CME Group. The good news is the lower crop prices are expected to spur increased demand. USDA boosted its estimates of feed use, ethanol use, and exports for corn next year (exports for 2013/14 were pegged at 1.3
TAKING ADVANTAGE
45.4 bushels per acre, down 1.8 bushels from a year ago. The lower yields are due to drought and April freezes that reduced crop prospects in the Southern and Central Plains. In Illinois, the winter wheat yield prediction for this year (63 bushels per acre) is the same as last year. Harvested area in the state, however, was projected to rise 155,000 acres this year compared to 2012.
Bill Bickett of Princeton took advantage of a brief period of decent weather last week to begin planting corn in a field outside of Princeton in Bureau County. Bickett, who will plant roughly 2,000 acres of corn, said he is three weeks behind in planting. Statewide, corn planting was only 7 percent completed as last week began, well behind the five-year average of 48 percent. There may be an opportunity for some planting late this week. (Photo by Cyndi Cook)
Stabenow pulls ‘egg bill’; livestock concerns remain sional Budget Office said could save about $39.7 billion over 10 years. Chairman Senate Ag Chairman Deb Stabenow Frank Lucas’ (R-Okla.) 576-page draft (D-Mich.) pulled controversial “egg bill” also eliminates direct payments in favor of provisions from her planned farm bill an insurance-based crop safety net. mark up this week, but livestock Commodity prointerests remain concerned FarmWeekNow.com grams would take a Visit FarmWeekNow.com to roughly 10 percent about the measure becoming a view details of the latest farm budget hit under the repository for animal welfare, bill proposals. anti-antibiotic, or new marketHouse draft vs. a 2.5regulating measures. percent reduction The Senate Ag Committee is expected from current food stamp spending. to vote on the chairman’s draft proposal Stabenow considered supporting a this week. The 1,102-page draft reportedly measure which would set national stanwould strengthen crop insurance, eliminate dards for layer hen housing, spurring direct payments, create a new revenue pro- protests from the National Cattlemen’s tection program similar to one approved Beef Association and the National Pork by the Senate last year, and maintain some Producers Council (NPPC), who saw the target price protections “decoupled from action as a harbinger of things to come. current planting decisions.” The so-called “egg bill” is based on a The House Ag Committee followed recent agreement between the Humane Socisuit Friday with a draft that the Congresety of the United States and the United Egg
BY MARTIN ROSS FarmWeek
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billion bushels). Soy exports for 2013/14 were raised 100 million bushels from 2012/13 to 1.45 billion bushels. “With falling prices, we should see world consumption pick up,” said Ken Smithmier of The Hightower Report. USDA projected U.S. winter wheat production this year will total 1.49 billion bushels, down 10 percent from last year, with an average yield of
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Producers. Despite Stabenow’s decision to withdraw the measure, NPPC spokesman Dave Warner noted the possibility that it could resurface on the Senate or House floor. “It would set a dangerous precedent in allowing federal bureaucrats to tell farmers how to raise and care for their animals,” Warner told FarmWeek. Rep. Kurt Schrader (D-Ore.) has reintroduced his freestanding version of the measure, possibly setting the stage for a farm bill amendment. Illinois Farm Bureau National Legislative Affairs Director Adam Nielsen argued “it’s a lot easier to fight an amendment than to fight it as part of a chairman’s mark.” Warner also is concerned Sens. Dianne Feinstein (D-Calif.) and Kirsten Gillibrand (D-N.Y.) could attempt to attach their Antimicrobial Data Collection Act to the See Stabenow, page 2
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