USDA Predicts Five Percent Increase in Planted Corn Acres for 2011
Thursday's Prospective Plantings report released by the U.S. Department of Agriculture shows an increase in corn acres the National Corn Growers Association said. The report, based on a survey of actual farmer intentions in March, states farmers intend to plant 92.2 million corn acres in 2011. This is a five percent increase from 2010 and up seven percent from 2009. If realized, it will be the second highest corn planting in the United States since 1944. This is just behind the 93.5 million acres planted in 2007.
"Even after a difficult growing season last year, farmers produced the third largest crop and it initially shows they will produce another record crop this year," NCGA President Bart Schott said. "This report shows that the innovative American farmer understands the increasing global demands of corn for food, feed, fuel and fiber and that they see the importance of meetings those needs."
The USDA's estimate for 2011 is for 92.2 million acres to be planted in field corn. Assuming a 91.7 percent harvest rate and the USDA's projected yield of 162 bushels per acre, farmers will grow 13.7 billion bushels on 84.5 million harvested acres.
Acreage increases of 250,000 or more are expected in Iowa, Kansas, Nebraska, North Dakota, Ohio and South Dakota. The largest decrease is expected in Texas, down 150,000 acres, which saw a 10 percent increase in cotton acreage. The actual number of planted acres will be released in USDA's June 30th report.
In the Grain Stocks report, also released this morning, USDA shows corn stocks in all positions stood at 6.52 billion bushels. The slight drop likely reflects stronger than anticipated demand from livestock. In total USDA shows 3.534 billion bushels of disappearance between December and February. Ethanol production through the first three months of the year has remained relatively steady at 900,000 barrels per day, or 13.78 billion gallons annualized. USDA will adjust usage projections in the April 8th WASDE report.
In the report, USDA also estimated:
· Soybean producers intend to plant 76.6 million acres, down one percent from last year.
· Wheat planted intentions are estimated at 58.0 million acres, up eight percent from 2010.
· Cotton plantings for 2011 are expected to total 12.6 million acres, 15 percent above last year.
House Passes NPDES Permits Legislation
NCGA commended the House of Representatives for their swift action to pass H.R. 872, the Reducing Regulatory Burdens Act of 2011, with a strong bipartisan vote of 292 to 130 on March 31. This legislation states National Pollutant Discharge Elimination System (NPDES) permits are not required when applying pesticides according to their EPA approved label.
"NCGA greatly appreciates the support of Republicans and Democrats in the House to pass this legislation in less than a month since its introduction," NCGA President Bart Schott, a farmer in Kulm, N.D. said. "We strongly endorse this legislation and are pleased to see Congress understands how significantly farmers could be impacted by burdensome NPDES permits for pesticides."
For most of the past four decades, water quality concerns from pesticide applications were addressed within the registration process under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), rather than a Clean Water Act permitting program. H.R. 872 amends both the Clean Water Act and FIFRA in order to restore the previous regulatory framework.
Under a federal court ruling in 2009, pesticide applicators would have to apply for an NPDES permit if the chemical reaches a body of water, which could include ditches and culverts. While NPDES permits will not provide any additional environmental benefits, the complex new requirements will expose farmers to potential citizen action suits for something as simple as paperwork violations.
"Most of today's farmers use pesticides to help produce a safe, abundant and affordable food supply," Schott said. "As it currently stands, the NPDES permitting system jeopardizes the farm economy without providing any real protection to water quality and we are pleased to see this legislation makes the necessary changes."
President's Energy Plan Recognizes Biofuel Benefits
This week, President Barrack Obama spoke at Georgetown University outlining a four-part "Plan for American's Energy Security." With gas prices approaching $4 per gallon, the plan incorporates many elements, including biofuels such as ethanol, and offers concrete measures to curb the rapidly rising energy prices affecting every American.
"We are pleased to see that the president has chosen to incorporate ethanol, a proven renewable fuel source, in his energy plan," said NCGA President Bart Schott. "With rising fuel prices hitting farmers, as well as consumers, U.S. corn growers are proud to be part of the solution."
Noting that sharp increases in gasoline prices have been felt by everyone from farmers to suburban families, the president stressed the importance of creating a more secure tomorrow by taking tangible measures to improve our energy independence today. He proposes a three-part strategy that would reduce dependence upon foreign oil by developing domestic supplies of oil and gas, leveraging these supplies with cleaner, alternative fuels like ethanol, and increasing energy efficiency. The plan as laid out aims to reduce oil imports by a third from 2008 levels of 11 million barrels per day.
The president acknowledged that some of the most effective opportunities to enhance energy security can be found on our nation's farms. Directly recognizing that ethanol already has and continues to reduce our oil dependence, he noted that infrastructure challenges must be overcome in order to increase the market share of this proven, existing technology.
The president outlined the portion of this energy plan that would maximize the impact of our fuel supply by increasing energy efficiency. In an effort to lead by example, the Administration has called for administrative action directing agencies to ensure that by 2015 all new vehicles purchased will be alternative-fuel vehicles. Currently, the federal government operates more than 600,000 fleet vehicles, and while the number of alternative-fuel vehicles has doubled in recent years, this action would further demonstrate the Administration's faith in these important technologies.
To read the details of the plan in their entirety, click here.
CommonGround Launches in Kentucky
Shoppers at one lucky ValuMarket in Louisville found a new, straight-from-the-farm assortment in the produce section - the farmers themselves. During the event, shoppers who care about safe and healthy food for their families and the farmers who are equally passionate about producing that food connected for much-needed straight talk about modern agriculture.
Today, consumers are not only concerned about food prices, but there is growing concern about food production practices and many myths about modern agriculture. Through the CommonGround program, a collaborative effort involving NCGA, USB and affiliated state organizations, these organizations have partnered to reach out to Kentucky consumers. Telling the story of their own operations, these women drive home the truth about U.S. agriculture. Through sharing their experience and hard data, consumers learn that thanks to modern American farmers, U.S. families enjoy the safest, healthiest and most affordable food choices in the world.
Ashley Reding, Carrie Divine, Corinne Kephart and Denise Jones, all Kentucky farm women, had mom-to-mom conversations about where food comes from for three hours on an early Saturday afternoon. Shoppers had the unique opportunity to answers to their questions about food and farming straight from the women who produce it.
"The event was unique as it was held at a small local store where many shoppers were very concerned about buying from local farms," said Reding. "I felt that we really got through to people in explaining issues from how modern agriculture in the U.S. can and must feed the world, on how we produce the steaks they were about to enjoy and on exactly what differentiates organics versus the benefits that are only perceived."
To build upon this success, Kentucky will host an agricultural issues and media training seminar on Saturday, April 9 in Lexington. During this meeting, staff from participating CommonGround organizations will prepare additional Kentucky farm women, including operators, wives, moms, sisters and daughters, to connect with consumers while teaching them how to effectively tell their story, the true story of American agriculture.
The women involved in this program will share their experiences with consumers at local events such as the grocery store promotion, through speaking engagements and through social media.
To learn more about CommonGround, click here.
Japan Update: Looking for Opportunities to Help
The U.S. Grains Council, of which NCGA is a founding member, reports that the Japanese feed industry has been making significant strides to regain its normal production capacity within the next few months.
"Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan, the Council believes the consumer demand in Japan will remain strong and will drive continued imports of U.S. coarse grains," said Tommy Hamamoto, USGC director in Japan. "In the short-term, logistical issues will continue to be a problem, but the Japanese feed industry is working hard to recover from the damage. By April or May, the Council is hopeful Japan will recover and return to somewhat normalcy."
As previously reported by the Council, four of Japan's major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck Japan on March 11. These four facilities account for approximately 3.66 million metric tons of compound feed production per year, around 15 percent of Japan's total annual compound feed production of 25 million tons. Another mill, which accounts for an additional 15 percent, suffered some damage but compound feed production has already partially resumed.
"Japan is prepared to cover the feed loss by facilities coming back online and increased production in unaffected mills. The unaffected mills are sending feed supplies in small vessels to affected areas," Hamamoto said. "There are currently bottlenecks: the capacity of unaffected ports to unload redirected shipments and storage limitations; impeded passage of ships through channels caused by debris in shipping lanes; increased transportation costs, fuel supplies and shortage of trucks and ships; and power needed for production and processing. The Council hopes these serious obstacles will be only short-term setbacks in the recovery efforts."
The Council has heard reports of limited loss of animal herds or flocks.
"Since the majority of livestock and poultry farms are located near on Japan's mountainous western side, minimal animal loss is expected from the tsunami. However, logistics of fuels, feed and products continue to be a problem for those farms," said Hiroko Sakashita, USGC associate director in Japan, adding the Council anticipates knowing the total impact in a few weeks. "In addition, some animal production was affected as facilities had to be evacuated due to elevated radiation levels. This market may further be affected by negative perceptions and false information on their products."
Exposure to radiation will remain a longer term concern. Japan's Ministry of Agriculture Forestry and Fisheries released a notice alerting livestock farmers to be cautious and not to feed radioactive-material-contaminated hay, roughage, silage and water to livestock. The ministry also recommends that farmers keep their animals indoors if possible. According to Council sources, feed millers in Hokkaido, Chukyo, Kansai and Kyushu have been working around the clock to ensure that sufficient supply of animal feed is available in the damaged area.
"The Council is searching for the best opportunity to get involved with the relief efforts in Japan. Mostly what we hear is to wait, since much of the relief is being provided by the Japanese government," Hamamoto said. "The Council will continue to monitor the recovery efforts and determine how to best utilize our resources and assets to help mitigate long term damage."
Secretary of Ag Gets to the Heart of the Heartland
Secretary of Agriculture Tom Vilsack addressed several groups and celebrated the opening of a new National Agriculture Statistic Service facility in St. Louis this week. In a luncheon held by the St. Louis Agribusiness Club, Vilsack talked about agriculture being one of the few bright spots of our economy during the worst recession since the Depression.
While other industries continue to suffer trade deficits, U.S. agriculture is experiencing a trade surplus. Because agriculture is selling more than it is purchasing, jobs are created and the wealth stays in our rural communities and the economic sectors that support farming.
"Secretary Vilsack gave very compelling remarks directly linking the productivity of American farmers, the importance of agricultural trade and the part domestic biofuels play in health of our economy," said NCGA CEO Rick Tolman, who attended the event. "Even when challenged by hypothetical questions about corn shortages and high prices driven by ethanol production, he thoughtfully and strongly pushed back and defended biofuels."
The Korean Free Trade Agreement was also among Vilsack's discussion topics. He emphasized the importance of this agreement by stating that the $5.3 billion of U.S. agricultural products annually purchased by Korea will increase to $7.2 billion when 60 percent of tariffs are immediately removed. To emphasis this point, the secretary said that even if you added the benefits of the last nine FTAs together, they wouldn't add up to $7.2 billion.
Later in the day, Vilsack was joined by local politicians commenting on how the new NASS facility will enrich an already vibrant agricultural economy that employs 20 percent of its workforce within a 500 mile radius of St. Louis. This USDA office will become operational in August and serve as the data hub for a division that compiles over 450 agricultural surveys each year. Next year, it will take on the job of consolidating the information accumulated by the Census of Agriculture that measures the state of America farming every five years.
The local newspaper printed an op-ed column by Secretary Vilsack that repeated many of the themes of his visit. Click here to read it.
Taking True Story of Ethanol to the Hill
Early this week, members from a variety of corn and ethanol associations met in Washington, D.C. on the importance of ethanol. The 60 participants, including NCGA's officers and four members of the Board, participated in meetings and met with lawmakers on Capitol Hill.
Prior to meetings on Capitol Hill, participants heard from Senator Amy Klobuchar (D-MN) and USDA Under Secretary for Rural Development Dallas Tonsager. The two gave remarks on how the ethanol industry is vital to energy security and reducing our dependence on foreign oil. They also touched on the economic benefits ethanol has in rural America.
Broken in to several groups, participants had over 150 meetings both on the Senate and House side of the Capitol. Some of the messages brought to Capitol Hill include information on corn ethanol bi-products such as dried distillers grains and how the corn crop was used in 2010.
NCGA Thanks U.S. Ag Secretary Vilsack for Leadership in Food Prices Debate
NCGA Bart Schott recently thanked Secretary of Agriculture Tom Vilsack for his leadership on the food prices debate. A letter was sent in response to an op-ed written by Secretary Vilsack that was published in The Financial Times.
"As corn farmers across the country reflect on another year of high yields, it is unfortunate some continue to perpetuate the myth that American agriculture is to blame for rising global food prices," NCGA President Bart Schott said in the letter. "NCGA appreciates your willingness to make known producers' abilities to respond to the challenges of a growing world population."
In the letter, Schott pointed out that this past year's crop was the third largest crop and fourth highest yield in history. The 2010 crop was also the fourth consecutive year with production in excess of 12 billion bushels and was produced on virtually the same amount of acres as used in 1970. Schott also noted that the day after the op-ed was published, General Mills Inc. reported an increase in quarterly profits and posted fiscal third-quarter earnings of $392 million.
"Specifically I wish to thank you for your comments regarding corn-based ethanol," Schott said. "As you know, U.S. ethanol production uses just 3 percent of the world's supply of grain on a net basis and less than 2 percent of the world's total arable acres. Steadily increasing corn yields and the improved ability of other nations to grow corn make it clear that ethanol production can continue to advance without affecting the food supply. NCGA stands ready to work with you and your colleagues to emphasize that there is ample corn to meet the increasing demand for food, feed, fuel and fiber."
