UPI Farming Today

Corn vs. soybean debate splits profs

Excessively wet weather across the Midwest has forced corn farmers to delay on planning their crop this year -- so long in fact that the prime time for corn planting has come and gone.

That has many convinced farmers will shift their fields to soybeans to try to recoup that loss. That move has both benefits and drawbacks, according to Purdue University agriculture researchers.

Agricultural economist Chris Hurt says farmers need to write off the corn crop for the year while agronomist Tony Vyn says the long-term harm caused by such a move outweighs any short-term financial gain.

"Our plea with farmers ... is that they consider the agronomic factors quite strongly before they elect to plant soybeans after soybeans," Vyn said. "They need to be aware of the implications for not only 2002, but also for the years to come."

He notes fields planted in soybeans in consecutive years are more susceptible to pests, soil erosion and crop yield reductions resulting from weather or management-induced stress.

Future crop yield losses could easily exceed 20 percent if soybeans are planted, compared to 10 percent losses if a soybean/corn rotation is followed.

But Hurt notes farmers would suffer excessive economic losses by trying to plant corn now. When expected yields for planting date, anticipated fall prices and respective costs are considered, the crop needed to be planted by around May 17 to ensure a breakeven financial point.

"The premium for planting soybeans over corn continues to grow, reaching near $35 per acre by June 10," Hurt said. "However, producers have to look at their specific conditions to make those decisions."

How severe are the planting delays?

The National Agricultural Statistics Service reported that as of May 20, 70 percent of the U.S. corn crop was planted, compared to 88 percent at this time last year and 87 percent average for the past five years.

But several Midwestern states lag behind the national average. Indiana only had 13 percent of its crop planted, compared to 100 percent last year, while Ohio had only 22 percent compared to 97 percent last year and Illinois had only 51 percent compared to 99 percent last year.

Trade Authority:

The American Farm Bureau Federation Friday praised the Senate vote on a bill that increases the president's ability to negotiate trade agreements with other countries.

The Senate last week approved a measure that would give the president some power, but not as much as a House version of the bill, which would forbid the Congress from making changes to deals negotiated by the chief executive.

The farm bureau was glad to see a vote by the Senate because now a conference committee can take up the issue and try to craft a compromise between the two bills.

"Farms are dependent on exports for the economic viability and have continued to be at a disadvantage in the world market," farm bureau President Bob Stallman said. Officials say the conference committee likely will take all summer to try to negotiate a compromise deal.

Farm losses:

The Senate's agriculture committee is trying to figure out how the federal government can better help farmers who suffer economic losses due to inclement weather that damages their crops.

The committee heard from farmers last week who think more emergency supplemental aid payments need to be provided to help farmers who suffer from weather problems such as drought.

The committee's work is an attempt to rectify a problem in the farm bill that recently was signed into law by President Bush. A Senate version of the farm bill called for $2.4 billion in emergency disaster relief but it was cut when the Senate and House reached a compromise farm bill.

ADM-closure:

Archer Daniels Midland Co. plans to indefinitely close its cottonseed oil mill facility in Port Gibson, Miss.

The plant, which was purchased by the Decatur, Ill.-based company in 1991, will close in June. It produced cottonseed meal, hulls, oil and linters.

Officials say the closure is because of the current poor economic crushing environment.

Dairy-Wisconsin:

The Wisconsin Agricultural Statistics Service is asking 3,000 dairy farmers for their opinions on the future of the industry.

It points out that dairy accounts for $18 billion of the state's $40 billion agriculture industry. But the industry is losing more than 1,000 dairy farms each year due to economic problems.

The state is asking what it can do to help make the industry more viable.

(by E.W. Kieckhefer)

Grains:

Grain futures were mostly lower at the close Friday on the Chicago Board of Trade.

Soybeans and corn dropped on weather concerns. Many traders are convinced corn farmers will shift their fields to soybeans because of planting delays, thereby producing a glut of beans.

Wheat was hurt by negative influence from corn and soybeans.

Oats were higher.

The prices:

Soybeans: Jul 4.91 off 1/2, Aug 4.85 3/4 off 1/4, Sep 4.74 1/4 off 2 1/4, Nov 4.68 1/4.

Corn: Jul 2.05 off 2 3/4, Sep 2.11 1/2 off 2 3/4, Dec 2.21 1/4 off 2 1/2, Mar 2.29 off 2 1/2.

Wheat: Jul 2.69 1/4 off 2 1/4, Sep 2.74 3/4 off 2 1/4, Dec 2.85 1/2 off 1 3/4, Mar 2.90 1/2 off 1 1/2.

Oats: Jul 1.63 1/2 up 5 3/4, Sep 1.33 1/2 up 1, Dec 1.34 1/2 up 1, Mar 1.40 up 1.