farmgate: Extension Update
Extension Update is a weekly summary of news from Extension, government, and other attributable sources, focused on marketing, farm management, and other issues that are of interest to Midwestern farm owners and operators.
The US corn market has sustained many growing pains in recent weeks, and one of the structural changes in the past 60 days has been stronger nearby contracts and weaker more distant contracts. IL Extension’s Darrel Good says there has been more than a $1 consolidation in the amount of the spread between Dec 2006 corn future and Dec 2009.
The world corn market is also dynamic, says Darrel Good, with China curtailing exports and planning to retrieve some export commitments. Argentina is also halting corn exports, and many countries are buying more US corn than usual. He says, “Corn price prospects remain very unsettled as domestic and world market conditions change.” Read his newsletter.
Regarding US and foreign demand, “All of these factors suggest that corn prices will remain high, although potentially volatile, through the winter months,” says Good. “The spring and summer of 2007 could bring more than the usual amount of price volatility as planting intentions are revealed and growing conditions unfold. Production problems and higher prices would spur the debate about the subsidies provided for biofuels.”
Nearly 10 weeks of soybeans will be on hand at the end of the current marketing year, and Iowa State’s Bob Wisner says that is enough. But that surplus will decline. “By past standards, these stocks would be very negative for soybean prices. However, the rapid expansion in corn processing for ethanol is virtually certain to pull land out of soybeans in the next few years unless world crude petroleum prices collapse. For that reason, U.S. soybean carryover stocks are very likely to decline in the next few years.”
There are many new dynamics in corn roots identified by MN soil scientist George Rehm, who says they have all occurred since seed companies bred for drought tolerance.
1) The more extensive root system has allowed for greater uptake of nitrogen fertilizers.
2) With less weed competition overtime, corn is better able to use available nitrogen.
3) With fewer corn borers, stalks and ears have benefited from more available nitrogen.
4) If rootworms can be controlled, more nitrogen will be used and less will be wasted.
Find his report.
All Cornbelt farmers can learn from the Eastern Cornbelt problems from their 2nd wettest fall in 124 years, and Ohio State agronomist Peter Thomison says “At the very least, avoid exclusively planting late-season hybrids. We encourage growers to spread the maturity of their hybrids. It’s best to match the maturity and stalk quality characteristics of the hybrid to the field situation, that is, will it be harvested early or later in the season."
With the wet harvest in the Eastern Cornbelt, Ohio State specialists are promoting the advantages of short season soybeans. “The short season varieties are more responsive to early planting than later maturing varieties, and when planted early, will yield as well as mid-season varieties planted a few days later.” Find yield data.
Tillage issues arise from wet harvest conditions, and Ohio State Extension’s Randall Reeder says, “Fields in continuous no-till (including strip-till) typically came through harvest in much better condition than others.” He says subsoiling may not be the best solution for expected compaction in wet harvest conditions. “In 3 of the last 4 seasons the subsoiled plots had lower yields than the plots that have never been subsoiled.”
Pork profits remained high in 2005, despite a drop in marketing revenue, according to a Univ. of IL study of hundreds of pork enterprises. Profits dropped $5.75/cwt from 2004, but total returns for farrow to finish enterprises exceeded production costs by $7.83. IL economists recorded lower feed costs, and higher non-feed costs. Read their report.
The cost-price squeeze will have tightened on pork producers when current year records are in, primarily from lower market prices and higher feed costs. With pork prices expected to average $47.50/cwt and production costs at $39.25/cwt, 2006 is expected to still show a profit for pork producers, if those price and cost projections materialize.
Cattlemen with droughty pasture can be helped with rotational grazing according to IL Extension’s Justin Sexten, who says it “only utilizes 35-50% of the available forage that is grown. Just by using rotational grazing where we would move every 7 days to a new paddock, we can increase our forage production to 50-60%. It also improves forage quality, allowing for higher gains per acre. Manure distribution is better.”
Rotational grazing is built on resources, says Sexten. “The number of acres per animal is very flexible. It depends on how much work you want to do. Dairy producers would benefit by rotating animals daily, and they would benefit by only grazing a strip that 30 animals could consume in 12 hours between milkings. A beef producer may have an eight-paddock system where they would rotate weekly for the best use of labor and land.”
If drought reduced your forage, cattle can be wintered in drylots on high concentrate diets with success, but Kansas State Extension says close monitoring is necessary to prevent digestive problems. “Balance these diets for cow nutrient requirements (protein, energy, vitamins, minerals and roughage levels) and for least cost value.”
USDA’s National Animal ID program for tracing livestock and meat with health issues will remain voluntary under terms of a new User Guide just issued by USDA. The voluntary aspect is being challenged by the House Ag Committee Chair-elect, who wants it to be mandatory.
Posted by Stu Ellis on November 24, 2006 8:24 AM to farmgate