Posted By Janice May 15, 2012
If soil could talk, what do you think it would say about life 150 years ago when the Department of Agriculture was created? I often wonder that about the farm I grew up on in Illinois when I look at the picture of the family that built our house over a century ago, see the latest arrowhead my brother has found or hear of one of our tractors getting stuck yet again in the old buffalo wallows.
Imagine what life was like when President Lincoln signed the act of Congress establishing the USDA. The Civil War had begun just a year prior, the Homestead Act would be signed on May 20 and nearly half of Americans lived on farms. Pioneers relied on mule drawn plows to break up the tough prairie sod and were excited to grow a big enough crop to feed their families for the winter. I wonder what they would think of the sophisticated tractors and GPS tracking we used to plant this year’s crop.
I hope that people will take five minutes, yes five whole minutes, out of their day to sit and ponder what kind of impact this department has had on our society. I don’t think the average person realizes the scope of the USDA’s work from forestry to food processing. But as the future changes, so will agriculture and the needs of an expanding world. Our farmers will still be expected to meet the growing demands of food, feed, fuel and fiber and they will go above and beyond with the help of The People’s Department.
Over the past 150 years, the USDA has grown with innovation and technology in agriculture. It has created exciting new ideas about food technology and research. And it has evolved to ensure it still remains true to President Lincoln’s vision; to touch the life of every American, every day.
Posted By Cindy May 10, 2012
The first U.S. Department of Agriculture outlook for this year’s corn crop is calling for record yields and record production.
The May 10 World Agricultural Supply and Demand Estimates report projects U.S. feed grain supplies for 2012/13 at a record 416.3 million tons, up 16 percent from 2011/12 at a record 416.3 million tons, with corn production called at a record 14.8 billion bushels, up 2.4 billion from 2011/12.
A projected 5.1-million acre increase in harvested area and higher expected yields, compared with 2011/12, sharply boost production prospects. The 2012/13 corn yield is projected at a record 166.0 bushels per acre, 2.0 bushels above the 1990-2010 trend reflecting the rapid pace of planting and emergence. Despite the lowest expected carry-in in 16 years, corn supplies for 2012/13 are projected at a record 15.7 billion bushels, up 2.2 billion from 2011/12. Total U.S. corn use for 2012/13 is projected up 9 percent from 2011/12 on higher feed and residual disappearance, increased use for sweeteners and starch, and larger exports.
Under the corn usage category, USDA is increasing feed and residual use by 900 million bushels based on a sharp rebound in residual disappearance with the record crop and an increase in feeding with lower corn prices and higher expected pork and poultry production and exports are projected to be 200 million bushels higher than last year on abundant domestic supplies, lower prices, and higher expected China demand. Projected corn use for ethanol is unchanged at five billion bushels on the year as weak gasoline consumption limits domestic blending opportunities.
Of course, the downside to bigger supplies is lower prices. USDA is projecting at this point that the season-average farm price this year will be somewhere around $4.20 to $5.00 per bushel, down sharply from the 2011/12 record projected at $5.95 to $6.25 per bushel but still much better than it used to be.
Posted By Cindy May 8, 2012
Nationwide, over 70% of the corn crop is planted now, well ahead of the less than half average for this time of year, according to the latest report from USDA.
“In spite of the wettest weather of the spring, producers in the Midwest still managed to plant a significant acreage of corn and soybeans” last week, says USDA Meteorologist Brad Rippey. “Corn emergence was greatly benefited by the rain and continuing warm weather.” Nearly a third of the crop is emerged nationwide, compared to the average of 13%. Last year, just six percent was emerged by this time.
Couple of weeks ago, Iowa was one of only a couple of states behind in corn planting, but farmers have surged ahead since then and progress now stands at 64%, compared to the five year average of 58%. Emergence of 23% in Iowa is more than twice the normal pace for this time of year. Only Texas remains behind the average, with 75% planted compared to 80% normal. Emergence-wise, three states are behind schedule – Pennsylvania and Wisconsin, along with Texas. But everyone else is well ahead of normal and soybean planting is now surging ahead as well with 24% planted, compared to 11% on average.
“What growers optimistically viewed as a potentially optimal planting season has become a reality in many areas,” said National Corn Growers Association President Garry Niemeyer. “Conditions could still change, but either way, farmers will meet the challenge and produce an affordable, abundant supply of corn.”
Farmers are making good progress, but it’s no record. The record for this time of year was set in 2010 with 81% planted.
Posted By Cindy April 24, 2012
The first USDA crop progress report counting the corn emerged so far this year is out and the number is just one short of double digits.
That’s still almost a full one-tenth of the crop already breaking ground and soaking up the sunshine, like the plants in these photos taken at a field along I-70 in Missouri over the weekend. That’s a full 7 percent more than last year and the five year average. Pretty amazing.
Planting progress is even more amazing, with 28 percent of the crop in the ground, compared to 15% normal for this time of year. How about some of these numbers? Tennessee is leading the pack with 88% planted, twice the average. North Carolina has 79% and Kentucky is at 75%. Okay, so those are Southern states, but the Midwest is no less impressive – maybe even more so. Illinois has 59% planted, Missouri is up to half the crop in the ground and Indiana growers are getting near that halfway point with 46% done. Compare that with the averages for this time of year – Illinois 17%, Missouri 27% and Indiana just 10% – and yeah, that is amazing.
I talked with a couple of growers earlier this month, one in southwest Missouri and one in northern Indiana and both already had gotten quite a bit of corn in the ground. Kip Tom of Indiana had 45% planted as of April 12 and Kip Cullers of Missouri said he had been planting “for 12 straight days and never shut the planters off.” That was April 10 and he already had corn emerging at that time.
Normally at this time of year, less than half of the states have any corn emerged, but this year right now only five have no little sprouts to report. Illinois and Missouri are over 20% emerged and Indiana has 10% up.
While 16 of the 18 major corn producing states are running ahead of normal in planting, there are a couple of notable exceptions – one of them being Iowa. Only 9% of the Iowa corn crop is in the ground, compared to 16% average. But they are ahead of last year when it was only 3%. The only other state running behind is Minnesota, just a percentage point behind normal, but that’s 11% more than last year at this time when none was planted.
Never can tell what kind of weather surprises may be in store later this year, but it’s nice to see the season get off to such a great start! A good start is half the race won.
Posted By Cindy April 10, 2012
With corn planting running well ahead of schedule, speculation is running high about how much corn could be produced this year if the USDA’s acreage estimate is correct.
Just a week or so ago, the USDA Prospective Planting report predicted that corn growers will plant nearly 96 million acres of corn this year – four percent more than last year and nine percent higher than in 2010. Using the five year average corn yield of 154.3 bushels per acre, that shows a potential 14.8 billion bushel crop!
“Certainly if we have a trend yield, we’ll see record production and we should see substantial rebuilding of stocks,” says USDA chief economist Joe Glauber. “We were calculating with even 94 million acres we would see almost a doubling of stock yields.”
Glauber says they were actually pretty surprised by the significant increase in corn acreage intentions, but he reminds us that this is still just an educated guess at this point, since farmers were surveyed back in early March. “For some producers, they will plant that because they’ve already purchased corn seed, purchased fertilizer, they have their plans and barring any problems with weather, they’ll get those acres in,” he said. “But for some, they still haven’t necessarily made up their minds and will be watching market prices over the next few weeks.”
Those who have made up their minds are wasting no time getting their crop in the ground. Seven percent of the nation’s corn crop is now planted – more than double normal for this time of year. Progress in some states must be record setting with double digits even in the Midwest. Missouri has 23% of the crop planted compared to the five-year average of 8% and Illinois is at 17% where just 3% is normal. Huge gains were seen from the previous week in states like Tennessee, which jumped from 15 to 46% planted in a week, while Kentucky went from 5 to 32%. Normally, only 10 of the 18 top corn states have corn in the ground by this time of year but right now only North Dakota and Wisconsin have nothing to report.
Posted By Cindy April 2, 2012
If you thought it was unusually warm last month, you were right. It was officially the warmest March on record.
According to MDA EarthSat Weather, based upon natural gas weighted Heated Degree Days (GWHDDs), the March monthly total of 387.02, shattered the previous record of 525.09 from 2007. “The core of the warmth settled over the Midwest for much of the month and created anomalies in excess of 15F. Chicago closed out the month carrying an average temperature of 53.5F, 15.5F above their monthly normal, and an incredible 4.9F warmer than any other March on record (previous record from 1910 & 1945).”
Other cities which saw record breaking warmth included Minneapolis with an average of 48.3F or 15.5F above normal; St. Louis was nearly 15 degrees higher; Indianapolis was 14.3F higher; and Milwaukee was up nearly 14 degrees over normal.
Cities that set all-time records for March high temps also included Cincinnati, Cleveland, Des Moines, Detroit, Kansas City, and Nashville. According to the National Weather Service, the average temperature in Des Moines of 55.7 beat the old record of 51.5 (set in 1910) by over degrees, “the widest margin by which a monthly temperature record has ever been broken at Des Moines.”
Not surprisingly, planting is ahead of schedule in the first crop progress report out from USDA, but not by too much. Overall, just one percent ahead of last year and the five year average with three percent of the corn planted nationwide. “But what’s notable is we see some planting taking place in Illinois, five percent of the crop planted,” said USDA Meteorologist Brad Rippey. “Even more remarkable as you head to the west with Missouri at seven percent. But at the top of the list for the shock factor is that Michigan planted two percent of its corn by April 1st.” Indiana, Nebraska and Ohio have an early start with one percent planted. In the south, North Carolina, Tennessee and Kentucky are ahead of normal, but Texas is actually a bit behind schedule with less than half the crop planted.
While April has started off like June with temperatures reaching 90 degrees in some areas of the Midwest, the weather watchers are predicting that the pattern is about to come to an end with more mild and seasonable numbers ahead for the rest of April.
Posted By Cindy March 30, 2012
The last time the United States planted as many corn acres as USDA is predicting for this year, Franklin D. Roosevelt was just entering his second term as president.
It was 1937 when an estimated 97.2 million acres were planted. This year, the USDA Prospective Planting report predicts that corn growers will plant nearly 96 million acres – 95.9 million to be exact. That’s four percent more than last year and nine percent higher than in 2010. Corn acres are expected to increase or stay the same in 40 states, with the biggest increases in Indiana, Iowa, Nebraska, North Dakota and Ohio.
Meanwhile, soybean acreage is expected to be down about one percent at 73.9 million and wheat up three percent at 55.9 million.
If we get that much corn in the ground and Mother Nature is kind, it could very well more than make up for the lower grain stocks reported in the Quarterly Report, also out today. In that summary, USDA says corn stocks are 8% lower than they were a year ago at just over 6 billion bushels. Of that, 3.19 billion bushels are stored on farms, down 6% from last year.
The weather continues to be amazing all over the country and some planting is already underway in southern areas. we’ll find out just how much is getting planted on Monday when USDA’s first crop progress report is released.
Posted By Cindy March 26, 2012
The best way to help the U.S. ethanol industry right now is to encourage the adoption of E15 by fuel retailers, according to Agriculture Secretary Tom Vilsack.
During a telephone press conference this week promoting USDA’s Rural Energy for America Program (REAP), Vilsack was asked by a reporter what can be done to help the struggling ethanol sector right now.
“If you take a look at the long term history of ethanol, you’ll see that there are peaks and valleys in this commodity,” Vilsack noted. “Our focus is primarily on encouraging blenders to embrace E15. EPA has authorized the use of E15 and this obviously would be a God send.”
Vilsack added that they want blenders to register with EPA to get E15 in the market and they are looking for ways to encourage distribution. “At the same time, we’re also looking at alternative ways to produce ethanol through non-food feedstocks so we can spread the good work this industry’s doing in keeping gas prices down further than they would otherwise be.”
The secretary referenced an Iowa State University study that concluded ethanol helps save motorists up to $1.30 per gallon. “So we obviously need a robust biofuel industry,” he said.
Listen to of download Vilsack’s comments here: Secretary Vilsack on E15
Posted By Cindy February 27, 2012
Agriculture Secretary Tom Vilsack gave a rousing show of support and gratitude for the ethanol industry at the National Ethanol Conference on Friday, thanking producers for all they do to help the nation.
“We owe ethanol producers in this country a debt of gratitude because we’re paying less at the pump because of what you do,” Vilsack said, noting that prices are about $1 less than they would be without ethanol.
Vilsack also thanked ethanol producers for providing jobs, contributing to a record trade surplus in agriculture and helping to increase net farm income. “In 2011, net farm income for the first time exceeded $100 billion,” he said. “Even adjusted for inflation, this is the best farm economy we’ve seen in four decades and one of the principal reasons is because you all have figured out this new value-added opportunity called renewable fuels.”
Vilsack said getting 15% ethanol in the marketplace will do even more for our national economy and energy security. “If we’re worried about the Straits of Hormuz, if we’re worried about Iran, one way we can be less stressed about this is getting E15 in the tanks of cars across this country,” he said.
The secretary did caution producers that they need to do all they can to protect the Renewable Fuel Standard. “Make no mistake about this. Just because it’s in the law doesn’t mean it will always be in the law.” Vilsack says the success of the ethanol industry has gotten the attention of the oil industry which is trying to modify or eliminate the RFS. “We need to make sure we maintain the Renewable Fuel Standard. It is important to the security of this country that we move toward that 36 billion gallon mark.”
Listen to or download Vilsack’s great speech here: Secretary Tom Vilsack at 2012 National Ethanol Conference
Looking forward to seeing the Secretary again later this week at the Commodity Classic in Nashville.
Posted By Cindy January 17, 2012
USDA’s final crop summary for 2011 released last week surprised many by showing an increase the average corn yield by a half bushel per acre and slightly more harvested acres to come up with a final total of 12.4 billion bushels, up a little bit from the November forecast and not too much lower than the 2010 crop.
“Despite lost acres and a 2011 yield that’s 5.6 bushels below the 2010 average, the corn crop itself is only one percentage point below last year’s number,” said National Corn Growers Association President Garry Niemeyer of Illinois. In comparison, final soybean production for 2011 was down 8% from 2010, sorghum and cotton were both down 13%, and rice was down 24%.
The slightly higher corn production means increased U.S. feed grain supplies for 2011/12 slightly over the December estimate, according to the World Agricultural Supply Demand Report. Worldwide, coarse grain supplies for 2011/12 remained almost unchanged this month as higher corn production in the United States, Ukraine, EU-27, and Russia is mostly offset by lower expected corn production in Argentina and the lower sorghum production estimate for the United States.
On the use side of the equation, exports were increased by 50 million bushels reflecting the strong pace of sales to date and reduced prospects for Argentina. Ending stocks are projected 2 million bushels lower at 846 million bushels.
What this all meant for corn futures at the end of last week was a big drop, but most analysts expect the market to rebound quickly as demand remains strong.
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