UPI Farming Today

Feds approve new genetic corn

The Environmental Protection Agency is approving a new type of genetically modified corn.

Federal regulators gave their approval to Monsanto Co., which has developed YieldGard Rootworm insect-protected corn technology. Officials noted regulatory approval came in time for the 2003 planting season.

The EPA was the last federal agency that had to review Rootworm corn. Agriculture Department and Food and Drug Administration officials already had given their approval.

The new type of corn contains a protein from Bacillus thuringiensis, a soil microbe that targets corn rootworm larvae, allowing the corn plant to naturally protect its roots against the damaging corn rootworm.

The rootworm causes significant enough damage that some have nicknamed it the "billion-dollar bug." Agriculture Department officials estimate the rootworm causes $1 billion in lost revenue annually to the corn crop in the United States.

The United States is the second country to approve the crop. Japan gave its approval last year.

Monsanto is the first company to produce for commercial use a genetically modified product designed to combat the corn rootworm.

For this year, the YieldGard Rootworm trait will be available in corn hybrids sold through DeKalb and Asgrow, Monsanto's branded seed businesses, along with licensed, independent seed companies.

Research during the past three years found that Rootworm corn was better able to control rootworm damage than the best insecticides.

EPA officials found the new crop posed no adverse human health or environmental safety concerns.

An important part of insect-protected corn product stewardship is the use of insect resistance management practices to delay the potential development of resistance by target pests.

The EPA is requiring a management program similar to what already is in use for other Bt products like YieldGard corn borer corn, where growers must plant a 20 percent refuge of non-YieldGard corn to separate it from other crops.

Trade surplus down 30 percent

The Agriculture Department's economic research service said the agricultural trade surplus reached $11 billion last year, 30 percent less than the $14.4 billion surplus the year before.

Cumulative exports were $53 billion, while imports were $41.9 billion. Export value dropped $744 million from 2001, due to gains by wheat, corn, vegetable oils, and fruits and nuts being overcome by large losses in poultry meats, feeds and meals, red meats, live animals and other products.

Import value increased $2.6 billion. Largest gains in import value occurred in fruits and nuts, vegetables, and grains, feeds and oil meals.

The $5 billion in December 2002 exports were $200 million less than in December 2001, while December imports of $3.7 billion increased $700 million.

Researchers find new soil binder

Zion Pacific Research Co. announced the development of a soil erosion prevention and dust control compliance product.

Called LACCOSET, the product is being made and distributed by LA Chemical -- based in Salt Lake City.

The product is a water-based organic binder that can control wind and reduce water erosion in most types of soil for one year or more. It is designed to agglomerate soil particles with penetration up to one-half inch into soils in non-traffic applications.

Bunge to shutter Cairo, Ill., plant

The North American division of Bunge Ltd. will close its soybean processing plant in Cairo, Ill., due to declining demand for domestic soy meal and a smaller-than-anticipated U.S. crop.

Officials said Tuesday the plant will close some time within the next four to eight weeks. Demand for soy meal is affected by declining demand for pork and poultry, and near-term margins are affected by this year's U.S. weather-reduced soybean crop.

"While we continue to believe that long-term prospects for soybean processing in the United States are attractive, this is the first time since 1989 that domestic consumption of soybean meal is running below the previous year," CEO John Klein said.

Fed commision studying payment limits

The Commission on the Application of Payment Limitations for Agriculture is studying the impact of further payment limits on agricultural producers and others.

"The commission is committed to doing a thorough assessment of the issue of payment limitations," Chairman Keith Collins said. "We consider public comments on the related issues a critical component of conducting our study."

The farm bill approved last year created the commission to study the effects of restricting direct payments, counter-cyclical payments, loan deficiency payments and marketing loan gains to farmers and others.

Grains mixed on CBOT

Grain futures were mixed at the close Tuesday on the Chicago Board of Trade.

Soybeans increased on technical buying spurred by beliefs recent price declines were overdone.

Corn rose on a lack of any negative news.

Wheat and oats were lower.

The prices:

Soybeans: Mar 5.76 1/4 up 4, May 5.74 1/2 up 4 1/4, Jul 5.71 3/4 up 4 3/4, Aug 5.60 3/4 up 4.

Corn: Mar 2.32 up 1 1/4, May 2.33 3/4 up 1, Jul 2.36 3/4 up 1 3/4, Sep 2.38 up 2 3/4.

Wheat: Mar 3.20 1/2 off 1, May 3.21 off 2 1/2, Jul 3.15 1/2 off 3/4, Sep 3.20 off 1/2.

Oats: Mar 2.14 1/4 off 11 1/4, May 2.01 3/4 off 8 1/4, Jul 1.89 1/2 off 10, Sep 1.62 1/2 off 12 1/2.