Corn Commentary

Varying Degrees of Corn Condition

In some areas of the country, the corn looks so good it’s making up for the areas where it’s not so good.

I have been all over the country in the past month and I saw the best corn so far in northern Iowa this week. Between Sioux City and Sioux Center there’s miles and miles of beautiful tall plants sporting nice, fat ears. I asked Iowa Governor Terry Branstad what he thought about the crops in his state this year. “We have some along the Missouri River that’s been flooded out, we have some other places where it’s gotten too dry, but here in Sioux County – this is God’s country, they must live right – the crops look pretty darn good here,” he said. Overall, Iowa is still looking at two-thirds of the corn crop in good to excellent condition

Flying over Illinois on my way to Chicago this week, I could see clear differences in progress and quality within the same fields. Less than half the crop is rated good to excellent in Illinois and McLean County farmer Dan Kelley told me that in his area yield estimates are all over the place. “I’ve heard yields from almost zero, in the low 40s, to as high as 240,” he told me.

I don’t have a picture of the pitiful looking corn on I-70 in Missouri on the way to St. Louis airport. I have driven by those fields dozens of times over the past several weeks and while the recent rains perked up the crop a little bit, it has just been too beaten down by the incredibly hot summer. Nearly 40 percent of the corn in Missouri is rated poor to very poor, but it’s worse in Kansas, Texas and North Carolina.

Harvest season is almost here so we will see how it all shakes out, but even the farmers who end up with poor crops this year will be back at it again next year to roll the dice with Mother Nature. Sometimes you win, sometimes you lose, but it usually all evens out in the end.

Media Babble is Cheap, but the Corn in Your Cereal is Cheaper

By watching and reading the news, many people are coming to believe that farmers today are making a killing at their expense.  News articles attribute higher food costs to rising commodity prices while blogs offer suggestions to help cash strapped consumers stick to their food budget.  It seems logical, given these sources, that people looking for a scapegoat would turn to the image they associate most closely with food: the farmer.

While the logic seems to be there, the facts do not back up this argument.  Actually, only a small portion of the money a shopper pays in the grocery checkout line ends up in a farmer’s pocket.  The average box of corn flakes contains only a dime’s worth of corn.  A two-liter bottle of soda contains only 12 cents’ worth.  Upset over rising poultry and beef prices?  Only 33 cents per pound of the price of each can be attributed to corn.  In reality, even at $7 per bushel, corn accounts for only a small fraction of the total price consumers pay for food.

So why are prices on the rise? Like many economic situations, a variety of factors account for differing portions of rising food costs.  Transportation costs have risen significantly as oil and gasoline prices rocketed skyward.  Increased competition pushes manufacturers to undertake expensive marketing campaigns.  Some high-end grocery retailers even report record profits.  Together, these factors account for a majority of cost increases.  Notably, the actual farmers growing the food do not profit from any of these factors.

Instead of blaming farmers, realize that they work incredible hours, often in inclement weather or late into the night, to produce the food for families in the U.S. and around the world.  Ninety percent of U.S. corn farms are run by families.  They face the same challenges and share the same values as the families relying on them.  U.S. farmers deserve to be respected for their amazing contribution not scapegoated by the media to hide where consumers’ food dollars actually go.

Make Sure Congress Isn’t Playing During Recess

Some things from grade school still hold true.  You shouldn’t forget what you learned over the summer, you should try your hardest, and there should always be a playground monitor.  This August, while Congress is at recess, they need you to act as a playground monitor by reminding them of what they learned about the importance of pending trade agreements to agriculture.

First, take a moment to review the lesson.

The United States is the largest producer and exporter of corn in the world. Developing new markets for our country’s agricultural products is vital to producer income and it also helps our sector lead the nation in economic growth and international competitiveness. USDA is forecasting the United States will reach a record high $135.5 billion in exports this year. Agriculture’s trade surplus is not something other sectors of our economy achieve. Passing FTAs will ensure our market share stays strong in existing and developing markets.

Now, it is time to try your hardest.  Today, that entails actually meeting directly with your members of Congress.  It is the most effective way to inform them how important the pending Free Trade Agreements with Korea, Colombia and Panama are for rural America, consumers and the agriculture industry. Opponents of free trade agreements will be working hard this summer to kill support for the agreements. But your message, told in person, will make sure Congress knows the truth about the benefits of FTAs.

For more information on the FTAs, click here.

Scheduling a meeting with your member of Congress requires some homework.  First, you will need to talk to their scheduler, typically located in Washington, DC. You can find your member’s contact information online at www.senate.gov, www.house.gov or by calling the Congressional switchboard at (202) 224-3121 and ask them to connect you to their office.

Be aware that many schedulers have a policy requiring that all meeting requests be submitted by fax or email, so be prepared to send the following information: your name, hometown, and title; description of the issue(s) you wish to discuss; other meeting attendees (along with their names, hometowns, and titles).  You can then expect the scheduler to follow up with you via phone or email.

Be prepared to offer the scheduler your available dates and times.  The greater your flexibility, the greater the odds are that you will be able to meet with the member.  If the member is not available to meet with you, there are still options.  Schedule a meeting with their legislative aide responsible for agriculture or trade issues.

If you have difficulty scheduling time with your representative, you may also ask the scheduler if the member will be holding any public events, town hall meetings or similar listening sessions in the District that you might be able to attend.

Life, and government in particular, can seem complex and confusing at times.  Just remember, the lessons that you learned early on are still applicable today.  Use playground rules and make sure that Congress spends their recess doing something productive.  It takes some work, but it can pay off for corn growers across the country.

From Manhattan to Marfa, Biotech Boosters Are Speaking Up

While some fringe activists continue to push their anti-biotech agenda, most Americans are becoming increasingly aware of the many benefits biotech offers us as a society.  From New York to Texas, Americans are talking about the need for biotech agricultural products in order to produce enough safe, affordable food for everyone.

This week, the generally left-of-center New York Times ran an op-ed hopping on the pro-biotech bandwagon.  Using arguments reminiscent of those made by Norman Borlaug, the article explained how our growing global population direly needs higher-yielding biotech crops in order to meet rising food demand.  Noting the safety of the crops, it advocated a more stream-lined approval process and a return to sensible regulation.  The New York Times realized what many had long ago, that biotech crops aren’t only safe but are also a necessity if we are to avoid an epic humanitarian crisis.

Farmers in Texas, worlds away from the country’s largest city, certainly agree that timely, yet thorough, biotech approvals play a key role in maintaining their operations. Simply, the first trait that will help corn plants tolerate an abiotic stressor, in this case drought, is scheduled to hit the market for the 2012 planting season.  With drought loss forecasts for 2011 reaching a record $5.2 billion, the importance of getting this well-tested trait into farmer’s fields is apparent, particularly as drought has cost the state’s agricultural sector $13.1 billion dollars since 1998.

So next time you hear arguments against biotech, why not ask what exactly the nay-sayer would do in the face of massive population increases and seemingly unending weather difficulties?  Science has provided us with the answer.  Now, we just have to educate ourselves enough to understand it and accept its many benefits.

Different Generations on the Farm Adopt New Media

Former National Corn Growers Association president Ken McCauley and his son Brad were featured this week during a session at the National Agri-Marketing Association (NAMA) Boot Camp in Kansas City. The session was about “generations” on the farm with a focus on the challenges and rewards faced by family farmers.

NAMA Boot Camp is an event for junior staffers at agricultural companies, agencies and organizations who are new to the industry to give them a producers’ perspective, especially with regard to how they get their information and what role new media technology is playing on the farm.

Brad, who is in his early 30s, has taken an increasingly active part in managing the family farm in White Cloud, Kansas over the past ten years, while Ken is enjoying some “down time” and being a consultant to Brad. Both father and son are iPhone and iPad users. “The technology some farmers my age don’t want to accept it and view it as intimidating, but it’s a huge asset for us and I think it’s just going to become more integrated into our lives,” Ken said, who added that he is involved in social media like Facebook as well and enjoys being able to get farm reports on-line now. “I think Brad’s going to use it a lot more to keep people like landlords informed, instead of sending out a newsletter.”

Brad says he and his wife have been using Facebook to update followers during planting and harvest and sees it as a tool to advocate for agriculture. “The more correct information that we can get out to the public is important,” he says, adding that the internet is his first source for news and information.

Chuck Zimmerman also asked Brad about the condition of the corn crop in their part of northeast Kansas along the Missouri border. “We have the potential to have really good yields,” Brad says. “I know we had some problems during the heat of the growing season but I think we’re in a good place.”

Listen to Chuck’s interview with Ken and Brad here: Ken and Brad McCauley

POTUS Puts Focus on Agriculture and Biofuels

President Obama’s Midwest bus tour this week really put a spotlight on agriculture and biofuels. The POTUS visited three of the nation’s top four ethanol producing states, accounting for more than 42 percent of the country’s ethanol production – number one state Iowa, number two Illinois and starting out in number four Minnesota. However, while he stressed his continued support for biofuels, Obama made it clear that he wants to move away from corn ethanol.

“A lot of folks here are familiar with corn-based ethanol, but the fact of the matter is the technology is moving where we need to start taking advantage of a whole range of biofuels, using refuse, using stuff that we don’t use for food to create energy,” he said during his first stop in Minnesota. “And we are seeing incredible progress on that front, but it’s key to make sure that we continue to make the research and that we also use the incredible purchasing power of the federal government to encourage it.”

In Iowa, the president and Agriculture Secretary Tom Vilsack announced a partnership between the private sector and the U.S. Departments of Agriculture, Energy and Navy to produce advanced drop-in aviation and marine biofuels to power military and commercial transportation. The focus would be on fuels not made from corn.

During Obama’s stop at the Wyffels Hybrids corn seed production plant in Atkinson, Illinois on Wednesday, the 11-year-old grandson of a corn farmer and ethanol plant investor asked what he is going to do to keep the ethanol plant running.

“I will say that the more we see the science, the more we want to find ways to diversify our biofuels so that we’re not just reliant on corn-based ethanol,” said Obama. “And so hopefully your grandfather, with his ethanol plant, is starting to work with our Department of Agriculture to find new approaches to the biofuel industry.”

I do wish that the POTUS had given corn-ethanol a bit more credit for getting us where we are today in cutting our dependence on foreign energy sources. See Cathryn’s post below on unicorns where she notes, “Due to the magic that is modern technology, production practices continually improve and create an even more efficient, eco-friendly product.” Let’s remember that corn ethanol brought us to the dance, Mr. President, and it just keeps getting better.

At that same event in Illinois, the president dismissed concerns by a a local corn and soybean grower, who was applauded by the crowd for telling Obama not to challenge the nation’s food producers with more rules and regulations. “We would prefer to start our day in a tractor cab or combine cab rather than filling out forms and permits to do what we’d like to do,” he told the president, noting particular concern about regulations regarding dust and water runoff.

“If you hear something is happening, but it hasn’t happened, don’t always believe what you hear,” Obama responded. “And I’m being perfectly honest, the lobbyists and the associations in Washington, they’ll get all ginned up and they’ll start sending out notices to everybody saying, look what’s coming down the pike. And a lot of times we are going to be applying common sense.” He suggested that if farmers have concerns about the administration “putting something in place that’s going to make it harder for you to farm, contact USDA. Talk to them directly. Find out what it is that you’re concerned about. My suspicion is a lot of times they’re going to be able to answer your questions and it will turn out that some of your fears are unfounded.”

The president got quite a bit of flack in the national media from those remarks, including an editorial in the Wall Street Journal. It was evident that the president does not understand that 1) most of the proposed regulations that could impact agriculture are coming from EPA and 2) it is very unlikely that a simple call to USDA by a farmer about something like that would be anything more than a huge waste of time.

Ethanol Education & Promotion at Sturgis Motorcycle Rally

It’s Sturgis Motorcycle Rally time and bikers are getting a continuing education about ethanol as a fuel option. With the theme, “Ethanol, Fueled with Pride” educational materials and promotional t-shirts are being distributed during the event at the Buffalo Chip Campground which is the hub of the activities and concerts that make up the event schedule. The event is sponsored by the Renewable Fuels Association.

Providing a helping hand at the event is Jere White, Executive Director, Kansas Corn Growers Association. I sat down with him to get his thoughts on this promotion and what it means to corn growers. Jere says the audience is a little different than might have been considered in the past but when it comes to the E15 issue it was found that some of the push back came from boaters and bikers. The Sturgis event is the largest gathering of bikers in the country and he believes that after several years of promotion and education a difference is being made. Jere rode his own motorcycle to the event which he has converted to run on E85 and it is performing well. I also asked Jere to give us an update on the status of the corn crop in Kansas which, like other parts of the corn belt, has some widely different conditions at this point in the season.

Jere White Interview

You can find a lot of photos from the 2011 Sturgis Motorcycle Rally here: 2011 Sturgis Motorcycle Rally Photo Album

Wonderful World of High Yielding Corn

Seven has always been considered the magical, perfect number so it’s no surprise that there are seven factors that in the right measure make up the perfect combination for consistent high yielding corn crops.

7 wonders corn worldA new website looks at “The Seven Wonders of the Corn Yield World,” based on the research of University of Illinois plant physiologist Dr. Fred Below.

Dr. Below has been on a quest to help all farmers achieve the Holy Grail of corn – consistent 300 bushel per acre yields – ever since he saw it happen more than 25 years ago. He has categorized the results of his research into seven management practices or “wonders” that can result in high yielding corn. His study helps growers answer the question of what the latest products and practices contribute to yield.

“Roughly speaking, the higher up on the Wonder list the more control that factor exerts over the Wonders that follow,” Below explains. “When combined, all of these factors contribute to big-yield gains.” In order of importance, they are:

1. Weather
2. Nitrogen/fertility
3. Hybrid selection
4. Previous crop
5. Plant population
6. Tillage
7. Growth regulators

Farmers may not be able to control that first wonder, but if they can get the other six right, Fred believes that when Mother Nature cooperates, the results will be wonderful!

I interviewed Fred about the 7 wonders earlier this year. Listen to that interview here: Fred Below Interview

Real Research Busts Anti- Corn Sugar Activists for Their Fear Mongering Hype

With all of the products labeled “No HFCS” cluttering store shelves, it seems obvious that consumers are demanding food manufacturers banish what was once an industry staple.  Like many assumptions though, this isn’t the case.  According to a study released earlier this month by Mintel Research Consultancy, most consumers look to avoid total added sugars and not high fructose corn syrup in particular.  So, why are marketers pushing no HFCS as a selling point?

Simply, by stating that a product does not contain an ingredient, marketers can reinforce the baseless stigma that HFCS is somehow “worse” than other sweeteners.  Notably, it is a stigma these ad wizards created themselves to differentiate products that are otherwise identical to competitors.  It’s Marketing 101. If two products are identical, create the difference.

Here, the bitter bashers imply HFCS is somehow intrinsically worse by creating doubt.  If it were just the same as other sweeteners, why would someone advertise their product as HFCS free?

 Just like the Sweet Surprise commercials ask, what is really different about HFCS?  Whether the answer comes from Martha Stewart, Marion Nestle or scientists themselves, it is the same – nothing.  HFCS has the same glucose to fructose composition and is digested the same way also.

Maybe it is time that slick marketers take note.  Consumers already know that corn sugar is just like any other sweetener. It is safe, delicious and totally fine to enjoy in moderation.  The real people pushing grocery carts are more savvy and well-informed than the average ad man believes.  Stop the hype.  Not only is it untrue, it doesn’t work.

Feeding the Hungry with Corn and Soy

corn soy productA newly developed food aid product made from corn and soybeans can help provide needed nutrition for hungry children.

The fully cooked food-aid product is called Instant Corn Soy Blend and it was developed by USDA Agricultural Research Service (ARS) scientists to supplement meals, particularly for young children. The work was led by food technologist Charles Onwulata at the ARS Dairy Processing and Products Research Unit in Wyndmoor, Pa.

corn soy productOnwulata developed the new food product using the same type of machines that are used to make fully cooked puffed snacks and cereals. “Cheese puffs” and “cereal puffs,” for example, have been popular in the United States for more than 50 years. The extrusion technology used to make Instant Corn Soy Blend cooks food completely in a short period of time under high heat and high pressure. The crunchy, fully cooked product exits the extruder through an opening at the end of the machine in less than two minutes. The resulting Instant Corn Soy Blend is then crushed and milled to form the ration.

Instant Corn Soy Blend could also soon be purchased for the USDA Foreign Agricultural Service-administered McGovern–Dole International Food for Education and Child Nutrition Program, which provides U.S. agricultural products for school feeding and other projects in more than 30 countries.

Read more about it from ARS here.



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