HDC CROP PROGRESS REPORT

July 27, 2015

Over the past two weeks HDC's growing region has continued to receive regular rainfall but not to the same extent as we have been seeing with earlier reports. We have also had a number of very nice growing days with the temperatures in the mid 20's or better. This coming week has similarly nice weather with little to no rain forecasted, which should help the crop to progress and catch up where needed.

SOYBEANS

Soybeans in our growing area range from just emerged (to the south) to small pods. Most soybeans were planted early but excess rain slowed plantings in the counties of Essex & Kent. Recent warm temperatures have improved the soybean crop.

S03-W4 Soybean Plant, Early pod (July 3, 2015)

X790 Soybean Field, Flowering (July 1, 2015)

S03-W4 Soybean Plant, Ontario (July 15, 2015)

Weed control is anywhere from poor to good. The warmer/dryer weather while beneficial to the soybeans has also encouraged weed growth and some fields will require pre-harvest treatments. Insect pressure continues to be low with aphid counts being minimal so far. Disease pressure is also low overall at this time but some cases of root rot are being reported.

S03-W4 Soybean Leaf, Aphids (below threshold level) (July 6, 2015)

Based on the current growing conditions we would expect average yields to slightly below average yields for areas to the south.

HDC Field Marketers would rate the crop as follows: 5% Poor / 13% Fair / 70% Good / 12% Excellent.

HDC Blake Soybean Field, Parkhill, ON (July 13, 2015)

S07-D2 Soybean Plant, Lucan, ON (July 14, 2015)

Cadet Soybean Plant, Lucan, ON (July 14, 2015)

CORN

The corn crop is starting to mature nicely with fields ranging from the 8 leaf to the tasseling stage. The recent warm weather has been a big boost for the corn crop and it is progressing well.

Weed control is adequate to excellent. Insect and disease pressure continue to be minimal at this time but a few varieties are showing Northern corn leaf blight.

Some corn fields have a nice healthy green colour while other fields are very yellow. We need more sunshine and warm weather to dry the soils and turn the crop around. At this point we still have the potential for average corn yields in our growing regions.

Based on the current growing conditions we would expect above average yields.

HDC Field Marketers would rate the crop as follows: 8% Poor / 16% Fair / 56% Good / 20% Excellent.

Corn Field outside of Hensall, ON (July 21, 2015)

WINTER WHEAT

Wheat maturity ranges from the ripening stage to maturing. We expect wheat harvest in our region to begin within 10 days.

Weed control for the season ranged from poor to good. Insect pressure remains low with traces of army worm still in some fields. The wet weather has contributed to increased disease pressure and we are seeing cases of fusarium, head blight and others disease problems continue to be identified.

Based on the current growing conditions we expect below average yields and also poor quality meaning a higher percentage will be feed grade.

HDC Field Marketers would rate the crop as follows: 8% Poor / 45% Fair / 40% Good / 7% Excellent.

Winter Wheat near Hensall, ON (July 21, 2015)

WEATHER

Weather forecast showing less chance of precipitation and continues to be average temperatures.

Sincerely,

Jason McNaughton

HDC IP Soybean Marketing Manager

E: jmcnaughton@hdc.on.ca