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Factors Affecting Crop Fertility
CornSouth CornSouth ONE GROWER PUBLISHING, LLC
Southern Production & Marketing Strategies
December 2014
A Supplement to Cotton Farming and The Peanut Grower Magazines
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CornSouth More Meat In The Dumplings
Contents 3 Market Outlook
People are moving from the farm to better-paying jobs in the cities. The tightening of the rural labor market is shifting traditional backyard farming operations into larger-scale systems. Why is this move newsworthy? Because it is happening in China, the largest, most populated country in the world, and it could have very positive effects for the U.S. corn market. Amanda Huber Fred Gale, senior economist, Editor and James Hansen, agricultural economist, both with USDA’s Economic Research Service, state in their report, “China in the Next Decade: Rising Meat Demand and Growing Imports of Feed,” that China is expected to account for 40 percent of the rise in global corn trade over the coming decade, and USDA anticipates that the rapid growth will make China the leading importer of corn by 2023/24. The rising standards of living in China have given some of the 1.35 billion people a taste for meat. For centuries, 90 percent of their calorie intake was from carbohydrates like rice, wheat, millet, beans and tubers. Now they want a little more pork in their Chinese dumplings. On the small farms, livestock were fed crop residues, biomass and waste products, but large-scale livestock production means using grains for feed. China has now become a net importer of grains. In 2013, imports of cereal grains rose to 18 million metric tons, including three million metric tons of U.S. corn and four million metric tons of distillers dried grains with solubles, a co-product of ethanol production that Chinese livestock producers use for feed. USDA anticipates that China’s soybean imports could reach 70 percent of global imports by 2023/24, and corn imports could rise to 22 million metric tons by 2023/24. While this all sounds great for U.S. agriculture as a whole, we’ve all learned to temper our enthusiasm when something sounds too good to be true. As the authors point out, policy adjustments in China make it difficult to forecast the country’s demand for imports, and other countries will be scrambling to meet China’s growing food needs as well. Still, for a country closing in on two billion people in the next 20 years, one has to think that the U.S. corn market will be poised to benefit from China’s import needs.
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Extension ag economists, Mark Welch and Scott Stiles, offer reactions to USDA’s lower U.S. corn production estimate.
Features 4 Fertility Management Soil fertility levels, yield goals, weather and placement all are factors that affect the crop’s nutrient uptake.
6 New Products For 2015 Companies offer new pest management tools to help protect your next crop.
8 Don’t Fail To Plan For 2015, work to protect yields and find ways to be strategic, plus adopt a zero-tolerance mindset for resistant weeds.
Cover photo by Carroll Smith.
If you have comments, send them to Corn South, 1010 June Road, Suite 102, Memphis, Tenn., 38119. You may also call (800) 888-9784 or contact Lia Guthrie at lguthrie@onegrower.com or Amanda Huber at ahuber@onegrower.com.
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Production Estimate Adjusted Slightly Lower
Market Outlook Editor’s Note: Reports in this month’s Corn South are from Mark Welch, Texas AgriLife Extension economist, and Scott Stiles, agriculture Extension economist with the University of Arkansas. The opinions and recommendations expressed are solely those of the authors and are intended for educational purposes only. The respective universities assume no liability for the use of this information. The final report is from the USDA’s National Agricultural Statistics Service.
2015 Corn Marketing Plan
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Scott Stiles: USDA’s World Ag Supply/Demand Estimate
SDA surprisingly lowered its estimate of the 2014 U.S. corn yield in the World Agricultural Supply and Demand Estimates released Nov. 10. The October estimate was a national average yield of 174.2 bushels per acre with traders expecting an increase to 175.2 bushels. Instead, USDA lowered the yield to 173.4 bushels per acre. No changes were made to planted or harvested area, so this change lowered the U.S. corn production estimate from 14.475 billion bushels last month to 14.407 billion bushels. On the demand side of the balance sheet, domestic use increased five million bushels and exports were unchanged. Ending stocks decreased by a total of 73 million bushels. The U.S. stocks-to-use ratio is 14.70 percent, down from 15.24 percent last month. World corn supplies were little changed as increases in the European Union, Mexico and Ukraine were offset by a decrease in China. Estimated world days of use on hand at the end of the marketing year increased from a 71.5 day supply last month to 71.9 days.
Crop Progress The first major winter storm of the season moved across the United States this week with USDA reporting in mid-November that corn harvest was 80 percent complete. In the major corn-producing states in and around the Upper Midwest, the area hardest hit by the storm system, about 2.4 billion bushels were still in the field.
Outside Markets The October employment report released by the Bureau of Labor Statistics last Friday showed gains in nonfarm payrolls of 214,000 and a drop in the unemployment rate to 5.8 percent. A broader measure of unemployment that includes workers employed part time for economic reasons fell to 11.5 percent. The spread between these unemployment numbers is 5.7 percent compared to a pre‐recession average of 3.9 percent.
POINTERS
Market Overview ■ USDA lowers yield projections, but acreage stays the same. ■ Domestic usage estimate increases; exports are unchanged. ■ Harvest is later than last season, but winter storms have already arrived. ■ Record yields are expected in 22 states. ■ A final report on 2014 production bears watching.
My marketing plan calls for pricing the first portion of the 2015 crop this winter. I am waiting until we have a better handle on the size of the 2014 crop, both final numbers in the United States and projected numbers in South America, before making this sale. The next World Agricultural Supply and Demand Estimates report will be released by USDA on Dec. 10.
This month’s corn estimates contained the only surprises for traders. Pre-report guesses leaned toward higher corn production. However, the USDA reduced the national average corn yield by .8 bushels to 173.4 bushels per acre. Month-to-month yield reductions were made in the key corn-producing states of Iowa, Minnesota, Kansas, Ohio and Michigan. Collectively, these five states account for 37 percent of total corn acreage.
Yield Projections No adjustments to planted or harvested acreage were made this month. Total production was reduced by 68 million bushels to 14.407 billion bushels. Total demand was increased by 5 million bushels. Ending stocks were reduced by 73 million bushels to a total of 2.008 billion. The November ending stocks estimate is up sharply from last year’s 1.236 billion and is the highest level seen since 2004. Average producer prices for the 2014/15 marketing year were placed in the range of $3.20 to $3.80 per bushel. Note: This month’s U.S. corn yield and production estimates are both records.
USDA NASS Crop Production Report The Nov.10 Crop Production Report from USDA’s National Agricultural Statistics Service (NASS) forecast area harvested for grain at 83.1 million acres, unchanged from the October forecast, but down five percent from 2013. The Nov. 1 corn objective yield data indicated the highest number of ears on record for the combined 10 objective yield states (Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin).
Later Harvest At 14.4 billion bushels, corn production is forecast to be the highest production on record for the United States. The forecasted yield, at 173.4 bushels per acre, is also expected to be a new record high for the United States. Twenty-two states expect a record-high corn yield for 2014. However, corn harvest is slightly behind this point last season. NASS’s report sets corn harvested at 80 percent complete on Nov. 9, equal to the five-year average and slightly behind the 82 percent reached at the same point last season. Some new crop corn is standing in the field longer than usual as producers cope with drying and storing a record crop. CS CORNSOUTH DECEMBER 2014
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Start fertility management planning with soil tests.
Fertility Management Soil fertility levels, yield goals, weather and placement all play a part in nutrient uptake.
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roducers understand the judicious use of fertilizer. Too much or too little can have catastrophic effects on the crop and on the wallet as well. Fertilizer recommendations depend on the soil fertility level as determined by soil tests and the yield goal, but keep in mind those factors that may affect nutrient uptake, such as weather and placement. Glen Harris, University of Georgia Extension agronomist and soil fertility specialist, says fertilization programs not based on soil tests may result in excessive and/or sub-optimum rates of nutrients being applied. “Take soil samples each fall to monitor the current fertility level. Use the yield goal to determine the quantity of nitrogen, phosphate and potash to be used,” he says. “At high-yield levels, the balance of nutrients in relation to one another is also important.”
High Yields Depend On Many Factors When planning fertilizer usage, Harris urges producers to be reasonable in their expectations and projections. “In 2013, I purposely fertilized some corn plots to try to achieve 150, 200 and 250 bushels per acre. I was dead on up to the 300bushel level where I only made 270 bushels,” he says. “The point is, if you fertilize for 300 bushels and you only make 250, then you lose money. Likewise, if you fertilize for 200 and could have made 250, then you lose money too, or the opportunity to make more money. “If you haven’t come close to making 300 bushels per acre, then you probably shouldn’t fertilize for that. If you are coming close to making that yield and want to go for it, then that’s your option.” Harris adds that he has yet to make 300 bushels per acre in his corn plots. “It was close at 270, and I think I had enough nutrients to make 300. It was probably a combination of row spacing, plant population, weather and lack of a good way to spray fungicides that limited yield.”
uid fertilizer we call ‘pop up.’ The placement is so that the young seedling will get it very quickly. But we don’t put it right in the seed furrow so as not to burn the seedling with the strong fertilizer. “This is the preferred two-by-two starter fertilizer placement for field corn,” he says. “Usually, it is mostly phosphorus with some nitrogen. Phosphorus is important for young seedlings, especially with cool soils.”
Weather Plays A Leading Role In Nutrient Availability Seedlings are not very different than many humans: On cold, wet days, it can be difficult to get going. Ethredge says it is harder for plants to take up phosphorus in cool conditions, and especially where pop-up fertilizers are not used, phosphorus deficiency is more likely to be found. “Cold, wet soils also delay the release of sulfur from organic matter,” he says. “Sulfur is a nutrient that is not needed in great amounts, but is needed by plants, especially corn.” Harris says the sulfur deficiency last year didn’t surprise him given the rainy spring. “I expected the weather would make it worse. Sulfur is leachable, and the roots tend to struggle for a while when sulfur is less available. That’s why I like to put some out at planting and also at sidedress.” While weather is not something producers can control, soil pH is, and nutrient availability is very dependent on pH level. Magnesium is more available to plants at higher pH, and zinc is more available at lower pH levels. Harris says corn grows best in soils with a pH of 6.0 to 6.5. “Over-liming may actually cause zinc problems in corn,” Ethredge
Find The Right Place For Starter Fertilizer Questions about the use of starter fertilizer are something producers ask a lot, says Harris. But, he says he doesn’t like putting starter fertilizer in the furrow because of the risk of seedling mortality. “I actually killed some corn from overdoing it in the furrow,” he says. “I have data that shows by the time you have lowered the rate in-furrow so that it doesn’t hurt the seedlings, it also doesn’t help the seedlings.” Rome Ethredge, Seminole County Extension director, says he uses the two-by-two method. On the corn-planting rig, a set of round coulters sits out in front of the set where the seeds are coming out. “That front set of coulters go into the soil about two inches deeper than the seed will be placed and about two inches to one side,” Ethredge says. “There is a tube inside the coulters that pours out liq-
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A nitrogen-to-sulfur ratio (N:S) that is too high can cause yellowing of corn seedlings. Although a certain amount of sulfur is needed for the nitrogen to work properly in the plant, the ratio, according to a tissue sample report, should be less than 16:1.
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says. “I saw a case where it was new ground and they had burned old trees and brush and then limed the field well. Where these burn piles were, zinc deficiency was found.” Remember, soil from under a burn pile will often have a higher pH. “A foliar spray or two of zinc will often rectify the problem,” he says. CS Soil Preparation Reminders A good soil management program: (1) protects the soil from water and wind erosion. (2) provides a good, weed-free seedbed for planting. (3) destroys hardpans or compacted layers that may limit root development. To conserve moisture and reduce compaction, work the land no more than necessary to achieve these objectives. Water erosion is a significant problem on many Georgia soils during high rainfall winter months. Wind erosion can be a problem on sandy Coastal Plain soils in early spring when blowing sand can severely injure young corn plants. Crop residue left on the soil surface or a seeded cover crop effectively reduces water erosion problems. Using minimum-till planting practices such as strip-till or slit-till helps reduce soil losses and “sand blasting” from wind erosion. From the University of Georgia’s Corn Production Guide, section titled “Agronomic Practices For Corn” by Dewey Lee, Extension agronomist. Thinking Of Using Poultry Litter? Here Are Some Stats: • On average, poultry litter contains 60 pounds of nitrogen, 78 pounds of phosphorous and 56 pounds of potassium per ton. • Poultry litter has a computed fertilizer value in excess of $80 per ton. • Poultry litter has practical value to a variety of crop producers. • Fifty percent of crop producers in South Georgia use poultry litter; 24 percent use it as their only source of fertilizer. • Most crop producers use poultry litter at a rate of two-tons per acre. • Crop producers spend a substantial amount of money on inorganic fertilizers each year, with more than half of those surveyed spending $600 to $1,000 per ton per year. • Crop producers apply fertilizer to large acreages each year, the cost of which varies based on the type of fertilizer. • With only about 50 percent of producers using poultry litter, opportunities exist for
more applications. The lack of more widespread use could be a result of unavailability of litter or the lack of information on the value of poultry litter as a fertilizer. • Approximately 45 percent of respondents indicated that applying poultry litter improved yield. • Crop producers utilizing litter indicated a willingness to travel significant distances to obtain it. • The percentage of complaints from neighbors indicate the need for establishment
and use of best management practices for poultry litter application. From “The Value of Poultry Litter in South Georgia,” by Claudia S. Dunkley, Extension Poultry Scientist, UGA Department of Poultry Science, Dan L. Cunningham, Extension Poultry Scientist, UGA Department of Poultry Science and Glendon H. Harris, Extension Soil Scientist, UGA Department of Crop and Soil Sciences.
SOME SAY IT. WE DO IT. Photo by Aubrey Falls Photography
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CORNSOUTH DECEMBER 2014
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Pest Management
New Products For 2015 Companies offer new ways to help protect your crop.
■ Xanthion In-furrow Fungicide Xanthion In-furrow fungicide from BASF will provide corn growers with an additional tool to protect their seed investment and maximize yield potential in the 2015 season. “A new tool to help growers start their season off strong, this product is different than other early season crop management treatments because it provides extended residual control by forming a protective sheath around the roots,” says Justin Clark, BASF technical market specialist. “This can lead to healthier plants later in the season.” Xanthion In-furrow fungicide combines a chemical fungicide and a biofungicide, which provides two modes of action to protect growers’ seed investment by improving seedling health. In research trials, corn plants treated with Xanthion In-furrow fungicide increased emergence by 5.2 percent compared to the untreated check. “A successful harvest begins with a strong foundation at planting,” says Clark. “For progressive corn growers who want to start their season strong, Xanthion In-furrow fungicide is the answer.” In addition to providing early, rapid and more uniform emergence and better root structure, Xanthion In-furrow fungicide helps control soilborne diseases and provides improved cold tolerance, promoting seedling health. Improved seedling health allows for increased nutrient and water uptake, maximizing yield potential. For maximum disease protection, follow up with Priaxor fungicide pre-tassel and Headline AMP fungicide at tassel. For more information on this and other BASF products, visit www.agproducts.basf.us.com.
Xanthion In-furrow Fungicide: • Provides two modes of action to maximize yield potential. • Promotes early, rapid, uniform emergence for better plant health. • Helps control soilborne diseases and improves cold tolerance.
■ DiFlexx Herbicide Bayer CropScience has announced plans, pending regulatory approval, to release a new broadleaf corn herbicide, DiFlexx, which will offer growers flexibility for a broad range of applications while also fitting a variety of soil and weather conditions. DiFlexx is a blend of dicamba and Crop Safety Innovation (CSI) Safener technology, which enables corn plants to better withstand herbicidal activity, for excellent crop safety. With a liquid formulation, DiFlexx will have a wide window of application from burndown to V10. More importantly, DiFlexx will effectively target tough weeds like Palmer amaranth, lambsquarters and waterhemp while also targeting more than 100 annual and perennial weeds, including those resistant to glyphosate-, PPO- and ALS-based herbicides. “Bayer CropScience is excited to offer growers innovative solutions to help them control their most troublesome weeds,” says Jeff
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Springsteen, Bayer CropScience U.S. product manager. “DiFlexx will offer growers the option to use an effective broadleaf herbicide from pre-plant burndown through postemergence, improve overall plant health and ultimately increase yields.” This herbicide technology can also be applied to all soil types making it applicable for silage, white corn, seed corn and popcorn crops. DiFlexx can be safely combined with MSO (Methylated Seed Oil) or COC (Crop Oil Concentrate) for improved weed control as compared to non-safened dicamba. DiFlexx will also be offered as an safer alternative to dicamba or an option in dicamba shortages. When applied as a pre-emergence herbicide, DiFlexx will safen amide products applied in the same tankmix. Applied postemergence, it can be tankmixed with herbicides such as Capreno or Laudis to provide an additional mode of action on herbicide-resistant weeds. For more information about the pending registration of DiFlexx, contact your Bayer CropScience representative. To learn about herbicides currently available from Bayer CropScience, visit http://bayercropscience.us/products/herbicides.
DiFlexx Herbicide: • Is a blend of dicamba and Crop Safety Innovation (CSI) Safener technology. • Pending registration, application timing can be from burndown to postemergence. • Targets tough weeds, such as Palmer amaranth, and can be tankmixed for additional modes of action.
■ Acuron Herbicide As Acuron corn herbicide moves toward the expected EPA registration for the 2015 growing season, Syngenta has unveiled the brand representing the herbicide’s four active ingredients, including new bicyclopyrone. Gordon Vail, technical product lead for Syngenta, says, “As weed resistance expands, growers need more robust pre-emerge residual herbicides with multiple modes of action to control tough weeds, and Acuron will fit nicely. This product will take large-seeded broadleaf weed control to the next level, while still providing the same excellent performance on small-seeded broadleaf weeds that farmers have come to expect from Syngenta corn herbicides.” Syngenta developed Acuron, which contains three modes of action, in response to the expanding problem of weed resistance and the resulting increase in demand for residual herbicide products with multiple modes of action. It will be labeled to control more than 70 broadleaf weeds and annual grasses, including giant ragweed, common ragweed, marestail, kochia, Palmer amaranth, waterhemp, cocklebur, Russian thistle, sunflower and morningglory. For more information about Acuron herbicide, visit www.farmassist.com/prodrender.
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Acuron Herbicide: • Will be offered as a pre-emergence herbicide with residual activity. • Contains four active ingredients with three modes of action. • Labeled for more than 70 broadleaf weeds and annual grasses.
■ Enlist Duo Herbicide The U.S. Environmental Protection Agency (EPA) registered Enlist Duo herbicide for use with Enlist corn and soybeans, which was the final step in approval of the Enlist system. Enlist corn and soybean traits were deregulated by USDA in September 2014. “Our company is uniquely positioned to answer the need for new, innovative weed control technology,” says Tim Hassinger, president, Dow AgroSciences. “The Enlist system is an extremely effective tool and is tailored for the way farmers work today.” Enlist Duo herbicide is a proprietary blend of new 2,4-D choline and glyphosate. By combining two modes of action, Enlist Duo will control and help prevent further development of herbicide-resistant weeds. Enlist Duo herbicide has also been optimized for on-target application utilizing Dow’s proprietary Colex-D Technology, which will provide both stewardship and user benefits. Dow has made significant investments in existing and new assets to reliably supply high quality 2,4-D for current market needs, and 2,4-D choline for new Enlist Duo demand. To learn more about the Enlist Weed Control System, visit Enlist.com.
• Optimized for on-target application with Colex-D Technology. • For use with Enlist corn and soybeans traits as part of the Enlist Weed Control System.
■ Bestow Herbicide Cheminova, Inc. announced the launch of Bestow herbicide, which provides control of numerous grassy and broadleaf weeds including foxtail, lambsquarters, pigweed, smartweed and woolly cupgrass in field corn. Bestow may also be used as a fallow treatment in the spring or fall when the majority of weeds have emerged and are actively growing. Bestow may be applied pre-emergence and postemergence in field corn. “Bestow is flexible and affordable,” says Ken Phelps, Cheminova product manager. “It’s another arrow in the quiver for field corn growers to use as a first application or as weeds emerge later in the season.” The active ingredient in Bestow is rimsulfuron, which offers longlasting residual soil activity in labeled crops. An inexpensive herbicide alternative to Resolve Q herbicide, Bestow is packaged in eight by 20 ounce bottles and is on sale now. For more information, visit www.cheminova-us.com.
Bestow Herbicide: • Offers flexible application timing. • Provides long-lasting residual activity. • May be used as a fallow treatment in spring or fall.
Enlist Duo Herbicide: • Offers a proprietary blend of new 2,4-D choline and glyphosate.
Always read and follow label directions.
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Weed and Disease Management
Don’t Fail To Plan For 2015, work to protect yields and find ways to be strategic.
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ow will 2014 shape the 2015 season, and why was there such a price drop for corn this year? The truth is that prices were unusually high from 2011 to 2013 for several reasons: increasing ethanol production, strong imports from China and a severe U.S. drought in 2012. These factors led to greatly increased prices, but now the ethanol market and imports to China have stabilized, and the current prices are likely to be here for quite a while. Michael Langemeier, director, Center for Commercial Agriculture, Purdue University, believes that while the irrigated corn acre will remain the mainstay, non-irrigated acres will see more of a 50/50 corn-soybean split, with some areas increasing soybean acres or wheat in the far southern climates. A record-high 84.8 million acres of soybeans were planted in 2014, up 11 percent from 2013. On the other side of the coin, corn acres showed a four percent reduction at 91.6 million acres, the lowest planted acreage reported in the United States since 2010. However, Langemeier says that growers are looking at losses for both corn and soybeans in 2014. “Most costs for 2015 are projected to remain the same,” he said. “With lower prices and costs at an even point, the elephant in the room is what’s going to happen with cash rents. They usually don’t adjust down that quickly, but there will need to be some small adjustments in upcoming years.”
Find Ways To Protect Yields “With lower commodity prices, growers need to find ways to be successful,” says Jody Wynia, corn marketing manager at Bayer CropScience. “The key is to protect the yield you have and find ways to be strategic. An early fungicide application can be made with a postemergence herbicide application, thus lessening your application cost and helping to control both pests.” A recommended two-pass program starts with a preemergence application of Corvus herbicide. The second pass could include a postemergence product such as Capreno herbicide. Another postemergence product is Laudis herbicide. If using
POINTERS ■ Make the most of irrigated acres. ■ Expect costs to remain about the same. ■ Reevaluate potential tankmix partners to determine if applications can be reduced. ■ Adopt a zero-tolerance mindset for resistant weeds. ■ Expect to need an early fungicide application.
This field received a preemergence application of Corvus, which is recommended in a two-pass herbicide program. Laudis following an application of Corvus, add another herbicide with a different mode of action, such as atrazine, to ensure you are using multiple modes of action in your weed control, Wynia says. If you do apply Laudis as the second pass of a two-pass program, consider including a fungicide in the tankmix, too. For example, Laudis can be tankmixed with Stratego YLD fungicide and applied from the V4 to V7 growth stages, optimizing weed and disease control with fewer passes.
Be Diligent In Looking For Cost-Effective Strategies “The conditions were just right for disease development this year,” Wynia says. “Once disease is present in your field, you can control any further injury, but nothing will repair the damage. Growers who did not spray and spray early felt the impact to their bottom line.” For weed control, producers have to be diligent about putting down a preemergence herbicide for burndown to give the field a clean start, followed by a postemergence application to control any remaining yield-robbing pests. “Growers are finding if they have resistance, they can’t get away with a one-pass program anymore,” Wynia says. “The only answer is to have zero tolerance for weeds in their fields.” Information provided by Bayer CropScience.
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