FSA Announces Changes to Crop Reporting Dates

Worth County USDA Farm Service Agency announced a change in crop acerage reporting dates for the 2013 crop year. All perennial and biennial forage crops must now be reported by November 15th. The new deadline for reporting fall-seeded small grains is December 15th.

In past years, producers had until the end of June to report their acerage for wheat and other small grains, and until the end of July to report their hay and pasture acerage. The new reporting date is much sooner than the prior dates.

All 2013 perennial and biennial forage acres, such as pasture acreage intended for haying or grazing, must be reported to the FSA by the November 15th deadline. All fall-seeded small grain acreage, such as winter wheat, barley, and oats, must be reported by December 15th. For 2012, the reports will be accepted up until December 17th as December 15th falls on a weekend.

Included in the upcoming reporting dates are crops that were planted as cover crops. Cover crops help to protect the soil during winter months and help preserve our nation's water resources.

Many producers are learning more about cover crops and the benefit cover crops have to their operation. After the drought, cover crops can prove to be a valuable asset for retaining soil moisture, as well as providing an additional source of feed for livestock. Cover crops can also help in retaining nitrogen in the soil for next year's crops, instead of letting it slip away into our streams. The change in crop acreage reporting dates was the result of a combined effort of FSA and the Risk Management Agency to make acreage reporting easier and standardized for crop insurance and FSA purposes. All acreage must be reported for a farm, including crops on non-cropland such as hayed or grazed grassland and other cover crops. Reporting acreage ensures producers are compliant with current and future FSA farm programs, including disaster assistance.

To make an appointment to report your crop and forage acreage, contact the Worth County office at (660) 564-3341 or visit online at www.fsa.usda.gov.

Farmers will hold grain to sell at market highs; don’t bet on it, says MU FAPRI crops analyst

Recent government grain reports showing low-end-of-year carryover stocks have sent corn, soybean and wheat futures prices upward at rates that make crop farmers smile.

For most, their present marketing plan will be to hold and sell at the market peak.

“Rethink that!” says crops analyst Melvin Brees at the Food and Agricultural Policy Research Institute (FAPRI). “Hitting the high depends mainly on luck and is nearly impossible.”

Grain owners should have plans in place, now, for marketing both the old crop and new crop.

“No one wants to sell when prices are going up,” Brees says. “But, expecting these price levels to last until harvest time might be asking a lot!”

In other words, if prices can go up fast, they come down faster.

“We are in a complicated marketing situation, but it can be managed,” Brees says. In his University of Missouri “Decisive Marketing Newsletter,” Brees outlined several plans.

“Current prices offer profit opportunities that are well above typical break-even prices. Don’t let profitable prices slip away. It is one thing to pass up a good price on the way up, but don‘t miss it on the way down.”

Growers can set upside and downside price objectives to target sales. Brees admits that upside price is difficult to set in an uptrend. But, with prices at historic levels, targeting a higher price is almost sure to lock in a “good sale.”

Downside prices are easier to set; but more difficult to execute. Set a trigger price that will stop losses as prices drop.

“If the market moves higher, increase the downside price. This is called a “trailing stop.”

As prices go up, you avoid making a sale and the downside price continues higher. If the price drops, you are out of the market at the highest downside price objective.

Another strategy is to use futures options. Options cost money for premiums, but they are flexible and can protect a very profitable price while allowing retained ownership of the grain. Then the producer can sell the grain at a higher price later. The combination can bring a high average price.

The third option is more traditional. Spread the sales at intervals through the year.

If prices continue up after making the first sale, the season average price goes up with subsequent sales. If prices reverse, at least part of the crop was sold at those historic highs.

Some grain marketers follow technical chart prices to guide sales. Until the uptrend line is broken on the chart technical signals remain for continued upward prices. Sales are made when the chart line breaks.

For now, that trend line remains bullish, with prices pointed higher.

But, Brees notes that records for the past 40 years show that downtrends follow major uptrends within 12 months--or less. The current uptrend has run almost seven months.

“Many factors, from energy prices to foreign markets, can change a booming market,” Brees says. Having a plan helps prevent selling all at the low.

To read the marketing newsletters go to “Farmers Corner” on the MU FAPRI Website.

“You many not want to sell yet, but remember you have to sell some time,” Brees says. “Be ready.”

Anhydrous fertilizer supplies stretched thin

As farmers pour into local co-ops and other fertilizer retailers to prepare for spring planting, many find long lines or shortages of the anhydrous ammonia they need for fields.

“Nobody had much of a chance to get work done last fall because harvest was late and wet, so pretty much it’s left all the anhydrous ammonia to go on this spring and caused a logistical nightmare,” said Bill Coen, vice president of plant foods and transportation for MFA, Inc. “Guys who have been in the business 40 years haven’t seen this type of spring unfold before where everyone’s running at once. It’s very unusual.”

University of Missouri Extension soil specialist Peter Scharf recommends that farmers not squander prime planting time to wait for anhydrous.

“I advise farmers to plant when conditions are right even if that means finding another way to get their nitrogen on,” Scharf said.

“Pre-emerge, post-emerge, sidedress, topdress, broadcasting, injected, dribbled—there are lots of ways to get it done that will work – and the plants aren’t picky about when they get it.

“Research suggests that as long as you get your nitrogen down before corn is three feet tall there is no average yield difference from getting it on before planting.”

MFA is not the only business dealing with anhydrous supply issues. Conditions across the Midwest seem to be the reason for the trouble for everyone.

“Generally [field work] starts in the south – Texas and Oklahoma – and they will finish before we start, but this year we had the whole upper and lower Midwest dry up at the same time,” Coen said. “Once that started we ended up draining the supply in the state in a week’s time, where our terminals went through three to four weeks’ storage in a week’s time.”

Compounding the problem is transportation issues.

Coen explained that there are a limited number of anhydrous transfer trailers. Those typically travel from state to state servicing the needs of co-ops and distributors as the planting season progresses from south to north. Since Missouri fields didn’t dry up until about 10 days after neighboring states, the trucks weren’t available here to transport anhydrous from terminals near the Kansas/Missouri and Missouri/Illinois borders to local co-ops.

Coen noted that the problem may begin to lessen somewhat. He estimates that about half of farmers have applied nitrogen now.

Scharf advises that there are ways to get the nitrogen on fields other than anhydrous.

“Anhydrous is the cheapest nitrogen source and the most resistant to loss, but the slowest to apply,” he said. “Given how far behind we are in field operations, other sources that are faster to apply are a good choice this year.

“They’re a little more expensive, but less expensive than losing yield because you didn’t plant when there were ideal conditions.” Sidedress application of anhydrous later in the season is another way to deal with the current bottleneck. “It will probably be a lot easier to get in a few weeks.”

Scharf warned of problems with planting too soon after application. Ammonia is toxic to seeds, which can be a potential problem if they come in contact.

“Placing the anhydrous deep enough to prevent seed contact is more important than a time lag between application and planting,” said Scharf.

Another option is that farmers with RTK GPS systems can use the system to maintain a constant distance between the application track and the seed furrow.

As far as phosphorus and potassium fertilizer goes, Scharf said many fields are positioned well even if none are applied this spring.

“For people who have in the past had a regular nutrient program, their soil should have enough stored to supply what the crop needs,” Scharf said. “If they like a cushion they can double up next time they apply fertilizer.

“Farmers haven’t had to deal with this before and that’s been stressful, but there are ways to get around this predicament.”

Prioritizing Phosphorus and Potassium Fertilizer Applications

Prioritizing Phosphorus and
Potassium Fertilizer Applications
The increase in crop input prices has many growers concerned about what might happen if commodity prices drop. The cost of phosphorus and potassium fertilizers has increased dramatically and are at record highs. Swings in crop yields and prices provide a great amount of risk into the profitability of the operation. The need for sound planning is more important than ever.
The use of fertilizers should be used to obtain the greatest return on investment rather than to maximize yields. First, prioritize what nutrients are limiting crop yields. This is addressed by using a good soil testing program across your row crop, pasture and hay acres.
Yes, this is simple but often overlooked. We often see growers applying fertilizer rates that have traditionally been applied in the past. Our suggested strategy is to apply phosphorus and potassium fertilizers by using soil testing to determine the soils ability to supply nutrients to the crop. There may be one or more nutrients limiting yields. Also, soil tests will help us identify areas where we need to apply fertilizers maximize yields.
Once you determine what nutrients limit the crop yields, next step is to correct this limitation by developing a strategy that meets the needs of crop that you can afford.
For example, if phosphorus levels are low and all other nutrients are adequate, then adding potassium would not help to increase yield. This is simple but this often ignored. If both nutrients are limiting, then it is better to apply at least a portion of every limiting nutrient rather than focusing on one.
If soil test values are well above a point where a response will not be expected, one may eliminate the nutrient and use the fertilizer dollars in a field or portion of field that will generate a return on investment.
So the strategy is to apply nutrients to portions of the field that have the highest likelihood of yield response rather than applying an average amount across the entire field. We are maximizing the greatest return on investment while maximizing yields.
Another strategy would be to focus different fertilizer applications on different fields. Often fields vary in phosphorus and potassium levels. This may provide an opportunity to prioritize different fields for phosphorus and potassium applications.
For more information contact Wayne Flanary at 660-446-3724 or Heather Benedict at 660-425-6434, Regional Agronomists with the University of Missouri Extension.

Stay with Corn in Spite of Rain Delays

Stay with corn in spite of rain delays

COLUMBIA, Mo. - "Stick with corn in spite of rain delays. I've said it before and I'll say it again," said Bill Wiebold, University of Missouri Extension agronomist.
Farmers considering switching to planting soybeans are urged to stay with their original plans.
"Even in the last USDA planting intentions report, there was not enough corn acreage to supply all of the demand," Wiebold said. "We will need all of the corn acres we can grow."
Wiebold admitted that rain-delayed plantings may yield lower than if corn had been planted in April. "What most people don't consider is that soybean yields start to decline with delayed plantings also."
The May 11 crop report of the Missouri Agricultural Statistics Service showed 34 percent of the corn was planted. That compares with 63 percent last year and 83 percent normally.
"I get some flak for recommending late-planted corn," Wiebold said. "But the original decision was probably a good one.
"I ask farmers to think back to their decision-making process last December when they were sitting at the kitchen table. That decision was made for good reason and it is a better decision than a hasty change of plans made under stress in May.
"Farmers wanting to buy soybean seed this late in the season will have difficulty finding quality seed. The best seed varieties were sold out early in the season."
Date-of-planting studies at the MU Bradford Farm in Columbia show that corn planted in mid-May may lose about 15 percent in yield compared with the earliest planting date.
The final corn yield depends on the weather in early July at the time the corn plants are trying to pollinate the kernels on the cob. Drought and hot weather at that time can reduce yields markedly.
"If cool weather with rain comes when corn pollinates, we could still have a bumper crop," Wiebold said. "The best thing a farmer could wish for is that all of the fireworks displays on the Fourth of July would be rained out."
A late shift from a corn crop to soybeans would probably throw away previously applied investments, Wiebold said. If nitrogen fertilizer has already been applied, that would mean throwing away $100 to $150 per acre.
A soybean crop, unlike corn, does not need nitrogen fertilizer. The soybean plant, a legume, collects nitrogen from the air. In addition, fall-applied herbicides to control weeds in cornfields this spring may prevent planting a soybean crop. The soybean is a broadleaf plant, similar to most weeds.
High prices still make corn a profitable investment, Wiebold said. "I'm not an economist, but a corn price near $6 a bushel on the futures market has to be considered. There are lots of reasons for sticking with corn plantings through the month of May."
MU Extension climatologist Pat Guinan says weather patterns in the third week of May suggest a shift away from the frequent rains of the past three months to a week without precipitation. Northern Missouri, where much of the state's corn is planted, will dry out sooner than the southern half of the state.
"With a week of dry weather, we can get most of the crop planted," Wiebold said.
Wayne Crooks, an MU Extension regional agronomist at Keytesville who works with farmers along the Missouri River, said, "When the weather dries, don't stand in front of a farmer. You will be run over."