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.

Are you paying attention to your marketing plan? The dynamics in the corn market have changed in the past 45 days, with storage costs increasing, market carry decreasing, and the return to storage diminishing. U of IL Extension’s Darrel Good says the market has been worrying about harvest delays as well as potential USDA crop overestimates. Read his newsletter.

Darrel Good says if you are paying high storage costs, it may take increased futures prices plus a stronger basis to cover your costs; which suggests you look for “Plan B.” Alternatives to storage include: basis contracts, purchasing long futures, or call options. Darrel says call option premiums are expensive and a strategy is needed to cut the cost.

USDA releases its quarterly grain stocks report on Sept. 29. Traders expect corn use to be heavier than previously forecast, leaving stocks at 1.967 bil. bu., compared to the Sept. 1 carryout of 2.021 bil. bu. Soybean stocks are expected to be 480 mil. bu.

The El Nino weather pattern began in July, says Iowa State Meteorologist Elwynn Taylor, who says it is now confirmed. Thank it for breaking the Cornbelt drought and providing precipitation to fill ears and pods and quiet the Atlantic storm season. Taylor quotes his colleagues, “The El Nino will stay in place for several months, accordingly (Jan-Mar) is not expected to be bitterly cold and precipitation may exceed the average in the western portion of the Corn Belt. At this time the forecast conditions for the remainder of the 2006 harvest period appear to be near average Cornbelt wide.”

With corn futures escalating into 2008, Livestock Specialist Dillon Feuz at Utah State says calves will go into feedlots heavier and be shipped to market lighter. That will raise the price of pasture, and create excess feedlot capacity. He also suggests that overtime, feedlots will shift from the Plains back to the Cornbelt to take advantage of ethanol feed co-products, even with environmental issues. Read his thoughts.

Stalk rot is being found widespread through the Cornbelt, all caused by one of several different fungi invading the stalk. Ohio State Extension says, “The stalk rot fungi typically survive in corn residue on the soil surface and invade the base of the corn stalk either directly or through wounds made by corn borers, hail, or mechanical injury. Occasionally, fungal invasion occurs at nodes above ground or behind the leaf sheath.”

If you have a lot of stalk rot, Extension specialists throughout the Cornbelt advise you to harvest the worst fields first (up to 30% moisture) to minimize grain loss as the stalk continues to deteriorate. Delays will increase your risk of lodging and slower harvest. Learn more about stalk rot.

Converting non-traditional buildings into grain storage may cut costs, but consider:
1) Can the building be sufficiently cleaned of manure, chemicals, petroleum & rodents?
2) Interior bulk heads will protect weak side walls, unless you are reinforcing them.
3) For capacity, calculate the volume of the pile in cubic feet and multiply by 0.8 bu.
4) Put a plastic lining on both dirt floors or concrete floors without a vapor barrier.
5) Load the building with a portable auger, unload with auger, or end loader.
6) Restrict grain to 15% moisture max. because of difficulty with uneven air flow.
7) The grain will still require aeration to prevent mold and insect activity.

If it is too wet to harvest, take the opportunity to visit any area variety test plots and take notes for use in selecting 2007 seed. Purdue’s Bob Neilsen says, “Record notes on hybrid characteristics such as ear height, ear size, completeness of kernel set, husk coverage, standability, and presence or absence of stalk rots.” Then match those with yield consistency of attractive hybrids across a number of different variety plots.

When the 2002 Farm Bill expires in 12 months, what do you think should happen?
1) American Farm Bureau wants the current law extended until trade issues are resolved.
2) Nat. Corn Growers wants a revenue assurance program for 70% of annual income.
3) Amer. Soybean Assn. wants adjustments in oilseed support levels.
4) Farmers Union wants minor adjustments made in the current Farm Bill.

A survey with 15,000 respondents by Univ. of NE and the Farm Foundation found:
1) Payment limits are supported by all sizes of farms, but smaller farms support it more.
2) Producers in 7 states want a fruit and veg. support program with disaster assistance.
3) Producers want technical and financial assistance to address conservation goals.
4) Respondents wanted free trade, but with food safety, conservation and labor issues.
5) Producers wanted mandatory country of origin labeling and animal identification.
6) The complete survey can be found at The Farm Foundation Website.

Sustainable agriculture and organic producers have a new set of fact sheets for crop production developed by university and Extension collaborators. Topics are focused on a wide variety of issues, and can be found at SARE factsheets.

When is the last time you tested your soil? U of IL Extension’s Robert Bellm says fall is the best time, since fertility will be depleted and the soil will be drier. Sample the top 7 inches, with 1 sample every 2.5 acres, unless your topography is highly irregular. Consult the IL Agronomy Handbook for details.

Will your combine be followed by a sprayer? Purdue weed specialists say many farmers are having problems with chickweed, deadnettle, henbit, and butterweed at planting time and 2,4-D is not potent enough. They offer ideas for winter annual weed control.