OYO STATE EMBRACES FARMING TO STAVE OFF ECONOMIC CRISIS.

As a result of the persisting economic woes facing the country, the Oyo State Government has decided to diversify its economy into farming and mining with a view to improving the financial status of the state. To ensure a successful diversification of process, the government recently organised an Agriculture Initiative Stakeholders’ Consultative Forum, held at the House of Chiefs, Parliament Building, Ibadan, during which the state governor, Senator Abiola Ajimobi, attributed the pervading economic woes to the country’s failure to save for a rainy day during the oil boom, worsened by neglect of agriculture. He disclosed that the forum was aimed at getting stakeholders in his administration to diversify the economy of the state through the exploration of aggressive, all-inclusive and sustainable agricultural value chain.


According to him, the dwindling allocation from the federation account owing to the fall in the price of crude oil in the international market had called for massive investment in farming.
“We did not save for the raining day when there was oil boom in the country. We relied heavily on income from oil. But we have all been jolted into reality now that a barrel sells for an all-time low of $30. Nigeria has depended so much on oil which has now lost its value at the international market. So we have to look for alternative sources of revenue through aggressive investment in agriculture.
“The fall in oil price has done more good than harm as it has opened our eyes to the effectiveness of mechanised farming as our saving grace,” he said. NEWS FROM AROUND THE WORLD.

HOW DOES LAND TENURE AFFECT AGRICULTURAL PRODUCTIVITY? A SYSTEMATIC REVIEW.

A lot of us who may come from the West assume that land rights certification, registration or titling are important attributes of any kind of land tenure or property rights system. We think of formal recording of land rights as essential to assuring farmers that they have land tenure security, an important enabling condition to agricultural development.

Economic theory and common sense tell us that if a family is going to invest in their property, they need to have a clear expectation that, far into the future, the kinds of sacrifices, investments of labor, capital, materials, into that land, and the benefits that come from those investments, will accrue to them. There’s a very simple relationship between land tenure security, property rights security, and investment: Theory predicts positive outcomes, and these are often observed practice, where people have clear tenure security.

However, in many developing countries, the kind of formal certification, property rights and titling systems that we are familiar with in wealthy countries often do not exist. A lot of farmers farm on land owned by the state. In Africa particularly, a lot of farming—up to 90 percent—is done on land held under customary tenure regimes, where land rights are not certified formally. Under customary tenure, people gain access to land as a social right, granted by virtue of their membership in a community.

THE QUESTION

So in 2013, the UK Department for International Development (DFID) asked me and a group of scholars to pull together a team of other researchers and graduate students to do a systematic review on the effects of efforts to “formalize” land rights through certification or titling on changes in agricultural investment and productivity in the developing world. Theory would predict that where farm land was previously unregistered, levels of investment and productivity would increase markedly after certification or titling.

Part of the development discourse over the past 30 to 40 years has been that African agriculture will not take off unless people have clear tenure security, and there’s an underlying assumption that this is delivered through land-rights certification or titling, as in Latin America and parts of Asia. So, in light of the fact that over the past 30 to 40 years there have been a number of efforts to convert non-formally tenured regimes into formally tenured regimes, based on certification by the state, the question that DFID asked us to look into was, What have been the effects with respect to the expected increases following land-rights certification and investment in productivity? In farmer incomes? In flow of credit?

That was the topic of our systematic review. Our inclusion criteria was limited to studies that were based on randomized control trials—randomized samples of farming households in an area that had received a treatment, which was, for example, land-rights certification, in comparison to a community where we were able to control all other factors apart from the fact that the community had not received land-rights certification. We wanted to look at, empirically, the effects of the certification intervention on investment, productivity of agriculture, farmer family incomes, and access to credit.

THE FINDINGS

Those who have conducted systematic reviews know the pain. The graduate students looked at 25,000 titles on this subject and reduced that to a review of 1,000 abstracts, which yielded 100 papers that we looked at in detail. Only 20 studies met our inclusion criteria. This is a huge question for the development world, for economic theory, a whole host of issues—and only 20 studies met a rigorous standard of empirical research design.

The 20 studies fell in nine countries: five in Latin America, five in Asia, and 10 in Africa.
In the Latin American and Asia cases, after certification or titling, there were significant gains to productivity of between 50 and 100 percent, and strongly positive gains to investment and income following tenure recognition, typically titling. However, in the Africa cases, there were weak or modest gains to productivity—between zero and 10 percent gains to productivity—and in investment and income following certification (though in most cases there were still positive gains)
Another important finding was there was no or weak discernible credit effects anywhere. Most studies—and we were looking very carefully through a gender lens with respect to differential effects on men and women—failed to aggregate effects of tenure recognition on women, except for two quantitative studies that identified positive effects (in Ethiopia and in Rwanda).

WHY DID RESULTS DIFFER?

So then the question becomes, Why are these significant gains in Latin America and Asia, and these relatively weak or modest gains in Africa? We have three hypotheses that we’re exploring through further research.

The first hypothesis is what we’re calling the role of pre-existing institutions—in Africa specifically, customary tenure. Customary tenure systems provide access to land as a social right by virtue of one’s membership in the community. An indicator of the security of the tenure is that land can often be inherited by other family members, but it can’t be sold, typically. Customary tenure often provides high levels of tenure security.

Customary tenure systems generally provide poor people in Africa access to land, free of charge, and once again as a social right; this is a pervasive institution in Africa. The designers of certification and titling programs, we hypothesized, were likely underestimating the tenure security of people who held those lands. And so when those land rights were certified, the kind of productivity gains or investment gains that would have been projected, assuming prior tenure insecurity, didn’t happen. Those assumptions were misplaced.

Another factor is what we’re calling the wealth effect: Household resources and income in Africa are much lower among poor farmers in comparison to poor farmers in Latin America and in Asia. So, if you’re going to do something with your land, it’s just not about land as an asset. It’s about labor, capital, having the income to invest in your farming enterprise, and the generally low levels of income among African farmers constrain their ability to make better use of their land. That’s hypothesis number two.

The third hypothesis is what we’re calling the effects of complementary public investments. Programs to secure land rights are best treated as one element in comprehensive agrarian reform programs. Effective reform is not about providing secure land rights to people. It’s also about providing affordable access to farming inputs and markets, and investment in roads, cooperatives, farming training, and so on; investments that enable farmers to capitalize on their secure land rights. Levels of public investment in rural areas in Africa are, we believe, much lower than they are in Latin America and Asia.

One of our arguments is that, when talking about land-rights certification or formalization in Africa, you really have to approach it as a package of investments, and you have to account for this wealth effect.
Our plan is to explore more deeply what might explain the weaker responses in Africa. We believe the hypotheses I’ve noted provide a good starting point. BY STEVEN LAWRY.

GOV. DICKSON ON AGRICULTURAL DEVELOPMENT IN BAYELSA

Bayelsa State has comparative advantage in large-scale production of rice, palm produce, aquaculture, banana, plantain, cassava and vegetables. The state has invested in mega aquaculture projects with two Israeli companies, which are presently under construction to produce 3,000 tons of fish annually. Our vegetation is suitable for three cycles of rice production. We have major rice farms of our own which produces the Restoration brand of Rice.


Currently, we have 4,000 hectares of rice farm at Peremabiri, 5,000 hectares at Isampor and 2,000 hectares at Kolo. We have the capacity to grow and produce rice that will feed the entire Bayelsa State, Nigeria, West Africa and for export oversea.


We have established in conjunction with Ostertrade Engineering & Manufacturing KFT/DPP International APS, a Hungarian/Danish consortium a cassava starch processing plant with a capacity to produce 600 tons of industrial starch per annum and an out growers scheme of 600 hectares cassava farm. We have concluded a seed multiplication farm on a 40 hectares at Ebedbiri for this cassava farm.
The state has a palm plantation of 1,200 hectares with a potential to grow the palm plantation to 2,000 hectares at the current location. Similar opportunities abound across the state to increase the palm production capacity. Bayelsa has the capacity to be like Malaysia and Indonesia in oil palm production.

We therefore invite investors to partner with us in the Agriculture sector.In addition, Bayelsa is the natural home of organic banana and vegetables in Nigeria. That is why we are building the Cargo International Airport to prepare the state for the export market. From Bayelsa to anywhere in Europe is less than six hours in flight time.With the airport in place and the harnessing of all the state’s agricultural potentials, Bayelsa will be able to feed Nigeria, Africa and indeed, the rest of the world. BY SAINT MENPANO.

CORN, BEANS LOWER OVERNIGHT: TRADERS WAIT TO SEE IF DEMAND SHIFTS TO SOUTH AMERICA.

1. Corn, Soybeans Lower Overnight as Dry Weather Allows Farmers in Fields

Corn and soybean prices were lower on speculation that a round of dry weather this week will allow farmers to continue planting.

Little rain is expected in much of the Midwest this week where only slight chances of precipitation are expected, according to the National Weather Service.

That should allow growers to get into fields and accelerate seeding. The Department of Agriculture will release its Crop Progress Report today, one day later than usual due to the Memorial Day holiday.

As of last week, however, about 84% of corn was planted, only slightly behind the five-year average pace, and 53% of soybeans was in the ground, just ahead of the average, according to the USDA.

Corn futures for July delivery fell 3½¢ to $3.70¾ a bushel overnight on the Chicago Board of Trade.
Soybeans declined 1¾¢ to $9.24¾ a bushel in Chicago. Soy meal gained 60¢ to $302.40 a short ton, and soy oil lost 0.12¢ to 31.48¢ a pound.

Wheat futures fell 3½¢ in Chicago, while Kansas City futures declined 3¾¢ to $4.33¾ a bushel.

2. All Eyes on Importers to See if They Shift Purchases to South America

Traders are starting to watch importers to see if they’re shifting to South America and away from U.S. supplies as tends to happen around this time of year.

The bad news/good news for U.S. growers is that prices are low. That’s bad in that prices are low, so obviously they won’t get as much for their crops. It’s good in that it gives U.S. supplies a fighting chance against the Brazilians/Argentinians.

Growers in Argentina are about 40% finished with their corn harvest, according to Tomm Pfitzenmaier, the president of Summit Commodities, a brokerage in Des Moines, Iowa, and it’s not like in years past when they didn’t have the infrastructure to get their grain to ports. Because that’s less of an issue these days, the corn they’ve harvested is ready (at least some of it) for export to overseas buyers.

The other bit of good news for U.S. farmers is that most of the corn that’s harvested early in the country is used domestically, so there still may be some time for U.S. exporters to fill needs.

The calendar flips to June this week, and it’s more along the late-June/early-July time frame that South American exports really start to take market share from the U.S., Pfitzenmaier said, so it’ll be interesting to see when importers start to look south – if they do.

Rest assured, overseas buyers will look south at some point, but as we all know, it’s really going to come down to price.

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3. Midwest Mostly Dry Today With Some Spotty Storms Possible From Kansas Through Illinois

Little rainfall is expected in much of the Midwest today says the National Weather Service, though there’s a small chance that storms could pop up in Missouri and Illinois.

“There is a chance of thunderstorms across much of (Illinois) this afternoon and early evening,” the NWS said in an early Tuesday report. “Isolated severe storms are possible across parts of central and southeast Missouri. The primary threats will be damaging wind gusts.”

In eastern Kansas through much of Missouri, strong storms have a chance of developing, the agency said.

Any storms will be “isolated” but severe, the NWS said.
“Activity will be spotty and brief, though strong winds and large hail are possible with any storms that may develop,” according to this morning’s weather report.
Get involved in the discussion in Marketing Talk. BY TONY DREIBUS.

U.S CORN PLANTING NEARS COMPLETION, USDA REPORTS.

DES MOINES, Iowa — The U.S. corn crop’s progress is well behind a year ago, while the soybean planting pace remains behind its five-year pace, according to the USDA’s Weekly Crop Progress Report.

Corn

As of Sunday, 91% of the U.S. corn crop had been put into the ground vs. a 93% five-year average and a trade expectation of between 90-93%, according to Monday’s report.

The governmental agency noted that the U.S. corn crop is rated as 65% good/excellent vs. a 72% year ago rating.

USDA pegged corn emergence at 73% vs. a 75% five-year average.
Al Kluis, Kluis Commodities, says today’s report is no real surprise to investors.

“Today's report is neutral for prices tonight.  I expect corn and soybeans to start out steady to 1 cent higher tonight,” Kluis stated in a daily note to customers Monday.

Soybeans

For soybeans, 67% of the the nation’s crop has been planted, compared with 68% five-year average.
USDA pegged the soybean crop as 37% emerged, slightly below a 40% five-year average.
Meanwhile, the U.S. wheat crop is rated as 50% good/excellent, below a 52% week ago rating. BY MIKE MCGINNIS

5 PROVEN HEALTH BENEFITS OF GARLIC.

“Let food be thy medicine, and medicine be thy food.”
Those are famous words from the ancient Greek physician Hippocrates, often called the father of Western medicine.

He actually used to prescribe garlic to treat a variety of medical conditions.

Well… modern science has recently confirmed many of these beneficial health effects.

Here are 11 health benefits of garlic that are supported by human research studies.

1. Garlic Contains a Compound Called Allicin, Which Has Potent Medicinal Properties

Garlic is a plant in the Allium (onion) family.
It is closely related to onions, shallots and leeks.
It grows in many parts of the world and is a popular ingredient in cooking due to its strong smell and delicious taste.

However, throughout ancient history, the main use of garlic was for its health and medicinal properties
Its use was well documented by all the major civilizations… including the Egyptians, Babylonians, Greeks, Romans and the Chinese.

The entire “head” is called a garlic bulb, while each segment is called a clove. There are about 10-20 cloves in a single bulb, give or take.

We now know that most of the health effects are caused by one of the sulfur compounds formed when a garlic clove is chopped, crushed or chewed.

This compound is known as allicin, and is also responsible for the distinct garlic smell.
Allicin enters the body from the digestive tract and travels all over the body, where it exerts its potent biological effects (which we’ll get to in a bit).

2. Garlic Is Highly Nutritious, But Has Very Few Calories

Calorie for calorie, garlic is incredibly nutritious.
A 1 ounce (28 grams) serving of garlic contains (3):

• Manganese: 23% of the RDA.
• Vitamin B6: 17% of the RDA.
• Vitamin C: 15% of the RDA.
• Selenium: 6% of the RDA.
• Fiber: 0.6 gram.
• Decent amounts of calcium, copper, potassium, phosphorus, iron and vitamin B1.

Garlic also contains trace amounts of various other nutrients. In fact, it contains a little bit of almost everything we need.

This is coming with 42 calories, with 1.8 grams of protein and 9 grams of carbs.

Bottom Line: Garlic is low in calories and very rich in Vitamin C, Vitamin B6 and Manganese. It also contains trace amounts of various other nutrients.

3. Garlic Can Combat Sickness, Including the Common Cold

Garlic supplementation is known to boost the function of the immune system.
One large 12-week study found that a daily garlic supplement reduced the number of colds by 63% compared with placebo.

The average length of cold symptoms was also reduced by 70%, from 5 days in placebo to just 1.5 days in the garlic group.

Another study found that a high dose of garlic extract (2.56 grams per day) can reduce the number of days sick with cold or flu by 61%
If you often get colds, then adding garlic to your diet could be incredibly helpful.

Bottom Line: Garlic supplementation helps to prevent and reduce the severity of common illnesses like the flu and common cold.

4. The Active Compounds in Garlic Can Reduce Blood Pressure

Cardiovascular diseases like heart attacks and strokes are the world’s biggest killers.
High blood pressure, or hypertension, is one of the most important drivers of these diseases.
Human studies have found garlic supplementation to have a significant impact on reducing blood pressure in people with high blood pressure.

In one study, aged garlic extract at doses of 600-1,500 mg was just as effective as the drug Atenolol at reducing blood pressure over a 24 week period

Supplement doses must be fairly high to have these desired effects. The amount of allicin needed is equivalent to about four cloves of garlic per day.

5. Garlic Improves Cholesterol Levels, Which May Lower The Risk of Heart Disease

Garlic can lower Total and LDL cholesterol.
For those with high cholesterol, garlic supplementation appears to reduce total and/or LDL cholesterol by about 10-15%
Looking at LDL (the “bad”) and HDL (the “good”) cholesterol specifically, garlic appears to lower LDL but has no reliable effect on HDL
Garlic does not appear to lower triglyceride levels, another known risk factor for heart disease

Bottom Line: Garlic supplementation seems to reduce total and LDL cholesterol, particularly in those who have high cholesterol. HDL cholesterol and triglycerides do not seem to be affected. NEWS FROM AROUND THE WORLD.

GARLIC:PLANTING, GROWING AND HARVESTING GARLIC.

Garlic is easy to grow and produces numerous bulbs after a long growing season. Plus, it’s frost tolerant! Here’s how to grow garlic in your garden.Beyond its intense flavor and culinary uses, “the stinking rose” is good in the garden as an insect repellent and has been used for centuries as a home remedy.

Planting

Garlic can be planted in the spring as soon as the ground can be worked, but fall planting is recommended for most gardeners. Plant in the fall and you’ll find that your bulbs are bigger and more flavorful when you harvest the next summer.

In areas that get a hard frost, plant garlic 6 to 8 weeks before that frost date. In southern areas, February or March is a better time to plant.

Break apart cloves from bulb a few days before planting, but keep the papery husk on each individual clove.

Plant cloves about one month before the ground freezes. 

Do not plant cloves from the grocery store. They may be unsuited varieties for your area, and most are treated to make their shelf life longer, making them harder to grow. Instead, get cloves from a mail order seed company or a local nursery.

Ensure soil is well-drained with plenty of organic matter. Select a sunny spot.

Place cloves 4 inches apart and 2 inches deep, in their upright position (the wide root side facing down and pointed end facing up).

In the spring, as warmer temperatures come, shoots will emerge through the ground.

Care

Northern gardeners should mulch heavily with straw for overwintering.

Mulch should be removed in the spring after the threat of frost has passed. (Young shoots can’t survive in temps below 20°F on their own. Keep them under cover.)

Cut off any flower shoots that emerge in spring. These may decrease bulb size.

Weeds should not be a problem until the spring. Weed as needed.

Garlic requires adequate levels of nitrogen. Fertilize accordingly, especially if you see yellowing leaves.

Water every 3 to 5 days during bulbing (mid-May through June).

A note on garlic scapes: Some folks love cooking the scapes (the tops of hardneck garlic). Whether you trim the scapes or let them keep growing is your preference. We like to stir fry scapes the way we cook green beans—similar, with a spicy kick!

Pests/Diseases

Garlic has very few problems with pests in the garden (in fact, its a natural pest repellent!), and also very few problems with the diseases that plague other veggies. White Rot is one concern, but you should also keep an eye out for the same pests that plague onions.

• White Rot is a fungus that may attack garlic in cool weather. Not much can be done to control or prevent that problem except rotating your crops and cleaning up the area after harvesting. The spores can live in the soil for many years. The fungus affects the base of the leaves and roots.

Harvest/Storage

Harvest time depends on when you plant, but the clue is to look for yellow tops. Harvest when the tops begin to yellow and fall over, before they are completely dry.

In Northern climates, harvesting will probably be in late July or August. In Southern climates, it will depend on your planting date.

Check the bulb size and wrapper quality; you don’t want the wrapper to disintegrate. Dig too early and the bulb will be immature. Discontinue watering.

To harvest, carefully lift the bulbs with a spade or garden fork. Pull the plants, carefully brush off the soil, and let them cure in an airy, shady spot for two weeks. We hang them upside down on a string in bunches of 4 to 6. Make sure all sides get good air circulation.

The bulbs are cured and ready to store when the wrappers are dry and papery and the roots are dry. The root crown should be hard, and the cloves can be cracked apart easily.

Once the garlic bulbs are dry, you can store them. Remove any dirt and trim off any roots or leaves. Keep the wrappers on—but remove the dirtiest wrappers.

Garlic bulbs may be stored individually with the tops removed, or the dried tops may be braided together to make a garlic braid to hang in the kitchen or storage room.

Bulbs should be stored in a cool (40 degrees F), dark, dry place, and can be kept in the same way for several months. Don’t store in your basement if it’s moist!

The flavor will increase as the bulbs are dried.

If you plan on planting garlic again next season, save some of your largest, best-formed bulbs to plant again in the fall. NEWS FROM AROUND THE WORLD.

 

HEALTH BENEFITS OF BITTERLEAF.

This kind of leaf is very familiar to some people but others may not have any idea about this wonder leaf. Bitter-leaf can grow anywhere unlike other leaves that only grow in certain places and temperature. These leaves flourishes anywhere they grow. They add beauty to all places where they are present. The most distinctive characteristic of this plant is its bitterness. Every part of this plant is bitter starting from the leaves to its roots. The bitterness of this plant is actually good for the body. It has a lot of health benefits to people. The plant can remind people that life is not always sweet; it takes to taste bitterness before you can achieve sweetness. This plant is very useful in toning the vital organs of the body especially the liver and the kidney.

The liver is one of the most important organs of the body. It has a lot of vital functions that is needed for normal functioning of the whole system of the body. Without the liver all major process in the body will be paralyze. The liver is known as the largest organ inside the body. It has an approximate weight of 1-3 kg in an average adult individual. There are a lot of major functions that the liver should do every day and this includes the production of bile acid that helps in fat metabolism.

Without the liver fats will not be digested inside the body to be use as energy. Bitter-leaf can be very helpful in maintaining the livers optimum health to release bile acid every time people eat fatty foods. Another major function of the liver is the production of glycogen. Glycogen is stored energy that is release in times of low level of glucose especially for people who do fasting.

The liver should be well taken care of by using bitter-leaf. Once the liver is been damage it can’t be restored into its normal function. People with liver problems can boil a bitter-leaf and drink a glass of it every day.

Another very vital organ inside the body is the kidney. Kidney helps in the excretion of waste products inside the body. If the normal function of the kidney breakdown there will great huge problem inside the body. Bitter-leaf a natural herb that is useful in taking care of the kidney and the liver.

Diabetic patient can also use bitter-leaf as one of their medication to prevent high sugar level in the blood. It will not only lower the sugar level in the blood but also repair impaired pancreas. As you all know pancreas is the organ responsible for the production of insulin for glucose to reach each cell to use by the body as energy. Impaired pancreas does not release the right amount of insulin to maintain the right sugar level in the blood. Bitter-leaf is a real wonder of nature. You can take the benefit of this amazing plant by squeezing its leaves in ten litters of water. BY MARK PERRY.

TEN HEALTH BENEFITS OF PUMPKIN LEAVES(UGWU).

Back where I come from, we call these green “ugwu” or “ugu”, and most Nigerians have no idea what the English name is (like most local foods) it is known  as pumpkin leaves. My grandmother used to say this was a great vegetable to blend and mix with juices and stuff, but way back then, as a child, I could never understand why someone would want to blend a vegetable. And it didn’t have the best texture in the world. Now, look at me, blending all sorts of greens!

This vegetable is used a lot in Nigeria to cook soups (what you may refer to as a sauce), to boil and eat plain, or to blend into a shake. People say it is healthy, but I don’t think people truly know what those health benefits are.

Pumpkin leaves contain a healthy amount of Vitamin A, Vitamin C, Calcium, and Iron, while still staying very low on the calorie front.

We all know about the vision benefits vitamin A provides, as well as the skin benefits. Vitamin C helps to heal wounds and form scar tissue, and maintain healthy bones, skin, and teeth. However since the body cannot produce this vitamin on its own or even store it, you should be consistently getting enough vitamin C in your diet.

As for calcium, your mother probably already told you growing up that you need a healthy dose of calcium for your bones and teeth as a child. However, if you are a female, it is important to consume enough calcium to help prevent osteoporosis and keep your bones strong. There have also been studies showing that calcium may help reduce the risk of cardiovascular failure.

Iron helps our muscles store and use oxygen, and helps carry oxygen from our lungs to other parts of our bodies as part of hemoglobin. If you’ve ever heard the term “anemia”, this can be caused by iron deficiency. Women and children in particular need a healthy dose of iron consistently, and these leaves help provide that nutrient naturally.

Some of the health benefits of pumpkin leave include:

1. Prevention of convulsion: The young leaves sliced and mixed with coconut water and salt are stored in a bottle and used for the treatment of convulsion in ethno medicine.
2 lowers cholesterol:leaves has hypolipdemic effect and may be a useful therapy in hypercholestolemia.
3 Boost fertility: A particular study showed that pumpkin has the potential to regenerate testicular damage and also increase spermatogenesis.
4. It has a liver protecting effects.
5.  It has antibacterial effects
6 .The leaves are rich in iron and play a key role in the cure of anaemia, (my mother used to mix the leaf extract with milk)
7. They are also noted for lactating properties and are in high demand for nursing mothers.
8.It has an hypoglycaemic (sugar reducing) effect. It is good for diabetics
9. Increases Blood Volume and Boost Immune System
10. The high protein content in leaves of plants such as pumpkin could have supplementary effect for the daily protein requirement of the body. NEWS FROM AROUND THE WORLD.
 

GUAVA TREE INFORMATION: HOW TO GROW AND CARE FOR GUAVA FRUIT TREE.

Guava fruit trees (Psidium guajava) are not a common sight in North America and need a decidedly tropical habitat. In the United States, they are found in Hawaii, the Virgin Islands, Florida and a few sheltered areas in California and Texas. The trees are very frost tender and will succumb to a freeze when young, although adult trees may survive short periods of cold.

That said, the plants are attractive and produce deliciously rich, sweet fruits that are excellent fresh or in desserts. Given enough guava tree information, it is possible to grow these small trees in a greenhouse or sunroom and reap the benefits of their Vitamin C-rich fruits.

The guava fruit grows on a small tree with a wide, short canopy and a sturdy single to multi-stemmed trunk. The guava tree is an interesting plant with mottled greenish bark and long 3- to 7-inch serrated leaves. Guava trees produce white, 1-inch flowers that yield to small round, oval or pear shaped fruits. These are more accurately berries and have soft flesh, which may be white, pink, yellow or even red and varies in taste from acidic, sour to sweet, and rich depending on variety.
The guava plants thrive in any soil with good drainage and full sun for best flowering and fruit production.

Guava fruit trees are tropical to sub-tropical and may achieve 20 feet in height. Growing guavas require cold protection and is not suitable outdoors in most zones of the United States. They must have shelter from freezing winds, even in sunny warm climates where occasional icy temperatures occur.

Caring for a Guava Tree

If you are lucky enough to live in a region where guava plants grow outside, the tree should be planted in well-drained soil where its roots have room to spread.

Fertilize growing guavas every one to two months while young and then three to four times per year as the tree matures. Guava trees need a high amount of nitrogen, phosphoric acid and potash, along with some magnesium for maximum fruit production. An example is a formula of 6-6-6-2, worked into soils just prior to the onset of the growing season and then evenly spaced out three times during the growth period.

Water frequently after planting and then keep mature trees moderately moist during the blooming and fruiting seasons. Once established, caring for a guava fruit tree is similar to any fruiting tree care.

Growing Guava from Seed

Growing guava from seed may not produce a fruiting tree for up to eight years and the plants are not true to the parent. Therefore, cuttings and layering are more often used as propagation methods for guava fruit trees.

Growing guava seeds, however, is a fun project and produces an interesting plant. You need to harvest seed from a fresh guava and soak off the flesh. The seeds can remain usable for months, but germination can take up to eight weeks. Boil the seeds for five minutes prior to planting to soften the tough outside and encourage germination. BY BONNIE L GRANT.

CORN,BEANS LITTLE CHANGE OVERNIGHT, EXPORT SALES DOWN FOR CORN, UP FOR SOYA BEANS.

Corn, Beans Little Changed as Investors Weigh Wet Weather, Global Output
Grains and soybeans were little changed in overnight trading as investors weigh wet weather in the Midwest vs. large global production.

Rain continues to fall in many parts of the Midwest and storms are likely over the weekend in from Nebraska to Ohio. That is delaying planting in some areas, growers said, while causing concern about replanting in others. 

Still, global production is keeping a lid on prices. World corn output in the marketing year that ends August 31 is forecast at 1.07 billion metric tons, easily a record, according to the U.S. Department of Agriculture.

That will decline in the following year – to the second-most on record at 1.033 billion tons, according to the USDA.

Corn futures for July delivery rose ¾¢ to $3.70 a bushel overnight on the Chicago Board of Trade.
Soybean futures fell 1¾¢ to $9.37¾ a bushel overnight. Soy meal lost 10¢ to $304.60 a short ton, and soy oil futures fell 0.04¢ to 32¢ a pound.

Wheat for July delivery rose ½¢ to $4.31¼ a bushel in Chicago, and Kansas City futures gained 1¾¢ to $4.33 a bushel.

2. U.S. Corn Sales Decline, Soybeans Improve Week-to-Week, Wheat Mixed
Sales of U.S. corn to overseas buyers dropped while soybean sales improved last week.

Exporters sold 457,200 metric tons of corn for delivery in the 2016-2017 marketing year, down 35% from the prior week and 33% from the four-week average, the Department of Agriculture said in a report.

Japan was the biggest buyer at 227,400 metric tons, followed by Mexico at 68,600 tons and Taiwan at 67,000 tons. South Korea purchased 62,800 tons and Bangladesh bought 53,400 tons. Unknown buyers cancelled a purchase of 120,000 tons, and Nigeria cancelled a 50,000-ton buy, the USDA said.
Soybean sales rose 33% from the previous week to 472,700 tons, the government said. The total was up 9% from the four-week average.

Unknown buyers were the biggest purchasers at 148,500 tons, followed by China at 130,000 tons. Pakistan took 65,000 tons, and Canada bought 31,400 tons

Wheat for delivery in the marketing year that ends May 31 totaled 201,900 tons, down 19% from the prior week but up 49% from the four-week average, the USDA said. Mexico was the big buyer at 119,500 tons, followed by Venezuela at 60,000 tons. Japan bought 56,300 tons, and Taiwan purchased 52,700 tons.

For 2017-2018 year that starts June 1, sales totaled 342,900 tons. Mexico was the biggest buyer at 231,700 tons, followed by Guatemala at 37.700 tons. Unknown buyers bought 28,400 tons, and South Korea purchased 16,000 tons, the USDA said.

3. Storms to Bring Rain to Much of Midwest This Weekend, Mississippi River Still Flooding

More rainfall is expected in parts of Nebraska, Iowa, Illinois, and Indiana this weekend, which likely will keep farmers out of fields in many areas.

Scattered thunderstorms are likely this weekend in Nebraska as a convective complex moves through the Midwest, according to the National Weather Service. The storms likely won’t bring severe weather but incessant rains.

Storms also are expected to develop across much of Iowa today, some of which might become severe, the NWS said.

“Gusty winds and hail will be the primary threats with any stronger thunderstorm,” the NWS said. “Locally heavy downpours will also accompany the thunderstorms, possibly producing ponding of water on roads and in drainage ditches. The Mississippi River is experiencing flooding.” BY TONY DREIBUS.

JUNE 1ST IS AN IMPORTANT CROP INSURANCE DATE

The frequent rains that soaked parts of the Corn Belt this spring have left many corn and soybean fields unplanted or with flooded areas that need to be replanted. Some producers are wondering what options they have under their multiple peril crop insurance policies. The first step is notifying your crop insurance agent as soon as possible and understanding crop insurance provisions.

In Iowa, the crop insurance late-planting period for corn begins on June 1 and varies across the Corn Belt. You can still plant corn after this date, but the insurance guarantee on those acres is reduced by 1% per day until planted. Corn acres planted after June 25 will receive insurance coverage equal to 60% of their original guarantee.

Producers should keep accurate records of planting dates on all remaining acres for both crop insurance and Farm Service Agency (FSA) purposes. The late planting period for soybeans in Iowa is June 16 through July 10.

Unplanted corn acres as of June 1

Beginning June 1, producers with unplanted corn acres have three choices.

•  Plant corn as soon as possible with a reduced guarantee.
•  Shift to soybeans with full insurance coverage.
•  Apply for prevented planting. Prevented-planting acres are insured at 55% of their original guarantee for corn and 60% for soybeans. A cover crop can be established on those acres or the land left idle (black dirt).

Acres that have been planted, but need to be replanted, may qualify for a special replanting insurance payment. Payments are based on the value of 8 bushels of corn or 3 bushels of soybeans per acre, times their respective projected insurance prices determined in February.

For 2017, that is about $32 per acre for corn and $31 per acre for soybeans, respectively. To qualify for an indemnity payment under the replanted or prevented planting provisions, a minimum area of 20 acres or 20% of the insured unit must have suffered loss, whichever is smaller.
----------
Producers should communicate with their crop insurance agent before making decisions about replanting or abandoning acres.

Establishing a cover crop is not required on prevented planting acres, but highly recommended. The rules set by USDA’s Risk Management Agency (RMA), which oversees the federal crop insurance program, do not require a cover crop.

However, RMA encourages cover crops and insureds will receive a full-prevented planting payment — even if they choose not to plant a cover crop. Leaving unplanted or abandoned acreage idle (black dirt) is probably not the best agronomic choice. Likely cover crop seed includes oats, wheat, barley, or millet.

Keep in mind, if you plant any kind of cover crop you cannot harvest or graze those acres until after November 1.

Expect most of Iowa fields will be planted this spring. A few acres may require replanting. For crop insurance purposes, these fields will be in the delayed planting or replant situation. Regardless, producers should keep good records of planting dates and acres for both crop insurance and FSA acreage certification. Write down the dates you planted, the crop, number of acres, and reference the farm name or number. Work with your crop insurance agent and understand the basic provisions of crop insurance. BY STEVE JOHNSON.

LEADERS OF SENATE AGRICULTURE COMMITTEE SAY NO TO FARM BILL CUTS.

Two days after President Trump proposed large cuts in food stamps and farm supports, the leaders of the Senate Agriculture Committee spoke out against funding cuts as the panel prepares to write the 2018 farm bill. Committee chair Republican Pat Roberts, took aim at reduced farm supports, particularly crop insurance, saying “Now is not the time for additional cuts.” The panel’s senior Democrat, Debbie Stabenow, opposed proposed cuts in rural development and public nutrition as well.

“The proposal cuts $231 billion from farm bill programs, which would make a five-year farm bill virtually impossible to pass,” said Stabenow. The administration proposed cuts 10 times larger than those written into the 2014 farm law.

The fiscal 2018 budget proposed by the White House would cut food stamps by $193 billion, or 25%, over 10 years, and crop insurance by $29 billion. It would also downsize land stewardship initiatives and eliminate many rural development programs.

At a hearing on the agricultural economy, Roberts pointed to a slump in both farm income and commodity prices since the collapse of the agricultural boom in 2013. USDA chief economist Robert Johansson said the farm sector was “in a very flat price environment,” and Nathan Kaufman, an economist at the Kansas City Federal Reserve Bank, said farmers were using up their cash reserves due to tight margins. “We haven’t seen it turn into an issue of solvency,” said Kaufman, because land values have held up well. Land is four fifths of farm assets.

“One thing is clear—times are challenging right now in farm country,” said Roberts. “Farmers, ranchers, and rural families understand fiscal responsibility. They want to do their parts. But now is not the time for additional cuts.”

“We need to make sure that producers have risk-management tools at their disposal. Let me emphasize that crop insurance is the most valuable tool in the risk-management tool box,” Roberts said, repeating the sentence on crop insurance twice. Crop insurance is the largest strand in the farm safety net, worth nearly $8 billion a year.

Stabenow said the Trump budget “would have devastating effects on our farmers and rural families. … More than 500 groups representing farmers, conservationists, rural communities, and food advocates wrote a letter that we should not make — we should not make — any further cuts. And I agree,” she said. BY CHUCK ABBOTT.

TIMING AND TEMPERATURE: KEY FACTORS TO CONSIDER BEFORE REPLANTING.

One way to describe the 2017 planting season? Soggy. If you have standing water in your planted fields, you may be considering replant. “Survival of young corn plants under these conditions depends on several factors,” says Roger Elmore, Extension cropping systems agronomist at University of Nebraska–Lincoln.

“Smaller seedlings are more susceptible than larger seedlings,” says Elmore in a University of Nebraska Crop Watch article. But the effect of standing water on germinating seeds is not well known. Hybrids will respond differently to standing water.

48 Hours

Timing is everything. If there’s standing water in your field, you have 48 hours before the oxygen supply will become depleted, says Elmore.

“Cool air temperatures help to increase the possibility of survival,” he says. “Yet, we would not expect survival of germinating seeds to be greater than that of young plants; they should not be expected to survive more than four days.”

Before emergence: Seeds can survive up to four days.

Prior to the sixth leaf and underwater (6 inches of water on surface) with a temperature less than 77°F.: Will survive for four days. Longer flooding results in lower yields especially at lower nitrogen levels. Some plants will be buried by sediment and residue and may not survive.

Prior to the sixth leaf and underwater (6 inches of water on surface) with a temperature greater than 77°F.: May not survive 24 hours.

Corn prior to sixth-leaf stage in saturated, cold soil with flooding: Seed rots, seedling blights, various other pathogens, crazy top.

If it becomes necessary to replant, consider which herbicides have been sprayed, says Randy Hagen, knowledge transfer manager at Monsanto. “Some crops can’t be planted back to a field that had a certain herbicide.”

Don’t make a drive-by assessment either, advised Hagen. “Investigate the stands by going out and doing population stands in several spots of the field.”

Also, as we get closer to June, it’s time to start considering switching maturities. “If you have an option to do silage, you may want to go in and replant with the same maturity,” says Hagen.

However, for grain, there may be a consideration to move to an earlier product. Hagen recommends looking at soil type, early frost dates, and yield potential of the of the original product before moving to an earlier maturity. If replanting goes into June, consider a hybrid five days earlier or so, he says.

Below are seven factors Elmore recommends considering when dealing with flooded fields.

1. The longer an area remains ponded, the higher the risk of plant death.
2. Completely submerged corn is at higher risk than corn that is partially submerged. Plants that are only partially submerged may continue to photosynthesize, albeit at limited rates.
3. Corn will survive longer when temperatures are relatively cool — mid-60s or cooler — than when it's warm — mid-70s or warmer.
4. Even if surface water subsides quickly, the likelihood of dense surface crusts forming as the soil dries increases the risk of emergence failure for recently planted crops.
5. Extended periods of saturated soils after the surface water subsides will take their toll on the overall vigor of the crop.
6. Associated with the direct stress of saturated soils on a corn crop, flooding and ponding can cause significant losses of soil nitrogen due to denitrification and leaching of nitrate N.
7. In addition, diseases and other problems can develop due to silt in the whorls. BY KACEY BIRCHMIER.

3 BIG THINGS TODAY, MAY 29TH.

1. Chicago Board of Trade Closed in Observance of Memorial Day
The Chicago Board of Trade is closed in observance of the Memorial Day holiday. Trading will resume at its normal time this evening.

2. Money Managers Most Bearish on Beans Since Last Week of 2015
Money managers increased their bets against rising soybean prices to the largest level since the last week of 2015.

Speculative investors were net-short by 69,775 soybean contracts in the week that ended on May 23, according to the Commodity Futures Trading Commission. That’s up from 39,312 contracts a week earlier and the largest level since the seven days that ended on Dec. 29, 2015.

Investors likely increased their net-short positions in soybeans amid growing global supplies and expectations for a large U.S. crop.

World output is forecast at a 348.04 million metric tons in the year that ends on Aug. 31., according to the U.S. Department of Agriculture.

U.S. production is expected to reach a record 4.307 billion bushels this year before declining to 4.255 billion bushels next year, the USDA said in a report earlier this month.
Net-shorts in corn, however, declined to 173,188 contracts, the lowest in three weeks, according to the CFTC.

Bets against higher prices in soft-red winter wheat fell to 120,701 contracts from 130,695 the prior week, while net-long positions in hard-red winter wheat were almost unchanged at 1,686 contracts, the CFTC said.

3. Isolated Thunderstorms Expected in Parts of Midwest But Region Mostly Dry Monday

Isolated thunderstorms are expected in parts of the U.S. Midwest including areas in Iowa, Illinois and Michigan, though no severe weather is expected.

In Iowa, thunderstorms are possible today and this evening before giving way through Wednesday when another system will move through the state. The storm later this week could produce “gusty wind and hail” and locally heavy rain, the National Weather Service said in a report early Monday.
In Illinois there’s a “limited” risk of thunderstorms today, but flooding will continue along portions of the Kankakee River. Storms will spark up again later this week, though the odds of anything major are limited, the NWS said. Lightning is expected.

Storms, however, are forecast for today and tonight in parts of Michigan, though severe weather isn’t expected. Starting Thursday, another warm front will move through the state, according to the agency. BY TONY DREIBUS.

THE NEXT MONTH WILL BE CRITICAL FOR DISEASE DEVELOPMENT.

Recent cold, wet field conditions and fluctuations in soil temperatures have put early-planted corn at risk for seedling disease, and there may be considerations for replant in some areas.

“It’s been a mixed bag across the country,” says Randy Hagen, knowledge transfer manager at Monsanto.

“Cold soil temperatures and episodes of recent rainfall are especially favorable for some of the most common and damaging seedling diseases favored by cold wet conditions,” says Tamra Jackson-Ziems, University of Nebraska (U of N) Extension plant pathologist in a U of N Cropwatch article. “Numerous seedling diseases can take advantage of any of these conditions.”

Monitor seedling emergence and stand establishment in the coming weeks so diseases can be detected early.

Seedling diseases can be caused by any of several common soilborne organisms, such as Pythium, Fusarium, Rhizoctonia, or parasitic nematodes. To complicate things, seedling diseases can be confused with insect injury, herbicide damage, planting problems, or environmental stresses that often have similar symptoms, says Jackson-Ziems.
Look for these symptoms of seedling diseases:

• Rotted seed prior to germination   
• Rotted or discolored seedlings after germination prior to emergence
• Postemergence seedling damping off 
• Root or hypocotyl decay

At least 14 species of Pythium have been identified that can cause seedling blight and root rot. These pathogens require excessive moisture, says Jackson-Ziems.

“The pathogen overwinters in soil and infected plant debris by producing thick-walled oospores that can survive for several years in the absence of a suitable host and favorable weather conditions. In addition to wet soil conditions, some species of Pythium are favored by cold soil conditions and are most likely to cause seed and seedling diseases lately,” says Jackson-Ziems.

At least six Fusarium species can cause seedling diseases and root rots. Stressed plants due to weather extremes (temperature and moisture), herbicide damage, and physical injury are more prone to infection and disease caused by Fusarium species, says Jackson-Ziems.

“Rhizoctonia species can also cause seedling diseases, but tend to be more common in drier growing conditions,” says Jackson-Ziems. “Rhizoctonia tends to cause reddish-brown lesions that can girdle and rot off roots. Root and crown rot may be severe enough to cause seedling death.”

Management

The most common method for disease management is the use of seed treatment fungicides.
In general, corn has protection from early disease because it’s been treated, says Hagen. Most seed corn is already treated with more than one seed treatment fungicide, often an insecticide, and, sometimes with a nematicide.

These products can provide protection against some of the pathogens that cause seedling diseases; however, they only provide protection during the first few weeks immediately after planting.

Scout fields

Diseases may still develop due to extended periods of inclement weather or if they are under severe pathogen pressure, says Jackson-Ziems.

The next month or so will be critical, says Hagen. “Look at field history, what has happened in your area, and what conditions are present today,” he says.

He recommends knowing what potential disease exists in your field. “Don’t wait until the last minute,” says Hagen. “Check your fields regularly, and ask your agronomist a lot of questions. Being aware is an important management tool in today’s world.”

Pay additional attention to areas that had standing water, warns Hagen. In places with a lot of standing water, there’s a higher risk of disease.

“If it is cold and wet, pay attention to that,” he says. “Those are potential signs for future diseases. But if it gets hotter and drier during the summer, that will go away.”

For some of those diseases, there’s nothing you can do, says Hagen. But knowing that history will help your to make management decisions next year.

If you’re considering replant, don’t make a snap decision. “Wait on replant until it’s a time where it makes sense,” says Hagen.

So far, replant has been minimal throughout the Midwest, says Hagen. But if you’re in a situation where replanting is a consideration, remember these steps:

1. Evaluate the stand in several areas throughout the field.
2. Consider the soil type. Soil type is key to understanding if there’s a chance for crusting and compaction, says Hagen.
3. Check the herbicide history.
4. Consider the time of year. If it gets too late, you may need to switch maturities to an earlier product. But until it gets later, you may not want to change the maturity.
5. Factor in early frost dates. BY KACEY BIRCHMIER.

U.S, CHINA ACCELERATE BEEF TALKS, DEAL POSSIBLE BY EARLY JUNE.

CHICAGO, May 19 (Reuters) - Talks on restarting U.S. beef exports to China are moving fast and final details should be in place by early June, the U.S. Department of Agriculture said on Friday, allowing American farmers to vie for business that has been lost by rival Brazil.

As part of a trade deal, U.S. ranchers are set to halt the use of growth-promoting drugs to raise cattle destined for export to China and to log the animals' movements, according to the USDA.

The two sides are negotiating to meet a deadline, set under a broader trade deal last week, for shipments to begin by mid-July.

Finalizing technical details in early June should mean beef companies, such as Tyson Foods Inc and Cargill Inc , can sign contracts with Chinese buyers to meet the deadline, the USDA said.

China banned U.S. beef in 2003 after a U.S. scare over mad cow disease. Previous attempts by Washington to reopen the world's fastest-growing beef market have fizzled out. But now, the quick progress of the latest talks is raising hopes of U.S. farmers.

"Both sides feel the urgency to get it done by the deadline," said Joe Schuele, spokesman for the U.S. Meat Export Federation, which represents Tyson, Cargill and other meat companies.
China's embassy in Washington could not immediately be reached for comment.

BRAZIL WOES

The timing of the new deal allows U.S. producers to benefit as Brazil, the world's top beef exporter, is struggling with scandals and rival shipper Australia is suffering from a drought that is hurting production, analysts said.

China accounted for nearly one-third of the Brazilian meat packing industry's $13.9 billion in exports last year.

But in March, Beijing briefly banned Brazilian imports after Brazilian police accused inspectors of taking bribes to allow sales of rotten and salmonella-tainted meat.

JBS SA, the world's largest meatpacker, was involved in the probe and in separate allegations this week that Brazil's president conspired to obstruct justice with the company's chairman.

The food-safety probe hit Brazil's beef exports, which fell by 24.6 percent to $378 million in April from March, according to Abiec, an industry group that represents meat processors accounting for about 90 percent of Brazil's exports.

"This is a very opportune time for the U.S. to step up," said Derrell Peel, an agricultural economist at Oklahoma State University.

Chinese appetite for beef has climbed due to its expanding middle class. In 2003, its imports totaled just $15 million, or 12,000 tons, including $10 million from the United States, according to the USDA.

TRACKING CATTLE

Brazilian exporters hope China's trade deal with Washington will not inflict more pain on meat companies in the country because U.S. exporters will be targeting different, higher-end customers, said Abrafrigo, an association representing Brazil's small meatpackers.

To reopen U.S. trade, Beijing has accepted a U.S. proposal in principle that would require producers to document the locations where cattle raised for beef exported to China are born and slaughtered, the USDA said. The system would be less onerous than tracking cattle throughout their entire lives, during which they can be kept at up to four different locations.

Peel, a livestock expert, estimated that U.S. producers trace the movements of less than 20 percent of the nation's cattle.

Under another rule, U.S. beef exported to China must be raised without a class of growth-enhancing drugs known as beta-agonists that includes Elanco's Optaflexx, according to the USDA. Elanco, owned by Eli Lilly and CO, declined to comment.

A trade group for veterinary drug companies, the Animal Health Institute, said China should accept beef from cattle raised with beta-agonists because they are safe.

U.S. beef shipments to China also will have to come from cattle under the age of 30 months, according to the USDA. Most U.S. cattle will meet that requirement, the U.S. Meat Export Federation said.

The terms of the deal are a win for the United States over Canada, which is approved to ship only frozen beef to China.

China already bans meat from Canadian cattle fed with Optaflexx, according to the Canadian Meat Council. It also requires that Canadian beef be produced from cattle that are less than 30 months old and can be tracked to the farm where they were born. BY TOM POLANSEK.

WEEKLY OUTLOOK: SUMMER PRICING FOR CORN AND SOYABEAN

Recent corn and soybean price declines associated with the political situation in Brazil erased the slight gains since the release of the March 31 Prospective Planting report. The sudden drop gives an indication of the fragility of the current soybean market, in particular. The information in the USDA's May 10 WASDE report is already incorporated into prices and the possibility of weather-related price runs in the summer are in focus. The following factors bear watching for possible pricingopportunities during the summer months for soybeans and corn.

In the soybean market, an indication of increasing consumption but larger ending stocks associated with increased production create an expectation of declining prices for the summer months barring a severe weather event. One factor of note is the large South American soybean crop and the potential impact on U.S. soybean exports. Currently, soybean exports are ahead of the pace needed to meet the projection of 2.05 billion bushels for the 2016-17 marketing year. Brazilian production is up approximately 12% in 2017 over last year's crop at 8.48 billion bushels and projected production for the 2018 crop is at 8.41 billion bushels. To date, Brazilian exports have been sluggish but the rapid drop in the Brazilian Real last week brought increased sales by Brazilian farmers. Weekly exports of U.S. soybeans may weaken under the increased competition. The large Brazilian crop looks to place downward pressure on exports in the summer months.

U.S. soybean planted acreage and yield will be key factors in soybean prices this summer. The release of the June 30 acreage report could be particularly bearish for soybean prices. The U.S. average soybean yield is projected at 48 bushels per acres with 89.5 million planted acres reported in USDA's Prospective Planting report. The cold and wet planting season in the Corn Belt with numerous reports of replanting of corn could lead to an increase in planted acres in soybeans for the 2017 crop year. Soybean plantings in the May 15 report sat at 32% which is on pace with the five-year average. If there is a lack of prevented planted acreage, the prospect of soybean acreage exceeding intentions looks more likely.

Corn prices this summer will be impacted by export progress and production issues. Current corn export levels are running above the pace to meet the projected 2.225 billion bushels for the 2016-17 marketing year. South American corn production recovered in 2017 from the drought-plagued 2016 crop year with Brazilian corn production projected at 3.78 billion bushels and Argentinian production projected at 1.57 billion bushels. The corn crop in South America will be entering the market this summer and will provide stiff competition for U.S. exports.

U.S. corn yield and production will be key to possible corn price runs in the summer. The U.S average corn yield is projected at 170.7 bushels per acre, and prospective planted acreage is at 90 million acres. While it is too early to deduce the impact of the poor planting season on corn yields and acreage choices, there exists the potential for lower yields in corn than in the last three years. The Crop Progress report on May 15 showed corn planting catching up to normal planting levels after a slow start. The first crop condition report by the USDA bears watching. Corn acreage may also be less than indicated in the Prospective Plantings report.

Risks associated with waiting for a summer price rally before pricing the 2017 crop is larger for soybeans. It may be prudent to price soybeans if a rally occurs in June before the release of the June acreage report. There is likely less risk of lower corn prices for several reasons. Soybean acreage is more likely to surpass planting intentions, creating a scenario in which production could be large even with a modest yield loss. Soybean yields may also be less vulnerable to problematic summer weather than corn. Soybean prices appear more vulnerable to downward price movements given large current supplies and the expectation of a large crop in 2017. Fundamental supply and demand factors are supportive to corn prices for the 2017-18 marketing year with the expectation of smaller production and reduced ending stocks.

If a summer rally in prices occurs, producers should consider aggressively pricing the 2017 soybean crop. A weather market may produce larger price increases for corn. The price decline that occurred last week on one piece of political news out of Brazil provides an indication of just how precarious soybean prices are currently. The weather experienced thus far in the crop year may foretell the potential for weather rallies through the summer months, but the fundamentals underlying both crops indicates a greater risk in soybean prices. BY TODD HUBBS.

WET NOW, LESS CERTAINTY FOR WHAT LIES AHEAD FOR 2017 GROWING SEASON.

So what’s up for weather for the rest of the growing season for 2017? Here’s an update from Alan Czarnetzki, a University of Northern Iowa meteorologist. Czarnetzki spoke at last week’s Iowa State University Soil Management and Land Valuation Conference.

We’re in-between an El Niño and La Niña 

El Niño is the warming of ocean water in the eastern tropical Pacific Ocean. In La Niña, cool water extends from eastern tropical Pacific Ocean further west in the Pacific Ocean. Iowa had an El Niño event the summer of 2015.

“It wasn’t really that strong, but during the June through August period that year, temperatures averaged 1.3 degrees below normal,” says Czarnetzki. “It was the 29th coolest year among 144 years of records. Precipitation was 3.91 inches above normal. It was the seventh wettest among 144 years of records.”

Last summer was a neutral situation, with neither an El Niño or La Niña occurring. “In Iowa, temperatures from June to August were 1.2 degrees above normal. It was the 50th warmest among the 144 years of records. Precipitation was 1.92 inches above normal, was the 20th wettest among 144 years of records,” according to Czarnetzki.

It’s the same story for 2017. “We are not in an El Niño or La Niña, as we are presently in neutral conditions,” he says. Unfortunately, neutral conditions are not helpful to the forecasting process. “There can be a wide range,” he says.

Soil moisture is abundant in the Midwest

That’s particularly true in areas like southern Missouri. Some areas, such as much of northern South Dakota and southern North Dakota, are abnormally dry, according to the U.S. Drought Monitor. But they’re the exception.

“Moisture conditions should be more than adequate," he said. The latest National Weather Service (NWS) map shows odds are higher for above-normal precipitation from June through August, particularly in western South Dakota and western Nebraska.

Summer Temperatures

The three-month forecast from the NWS is a bit murkier for June through August temperatures. At this point, there’s an equal chance for above-normal, below-normal or near-normal temperatures in the Dakotas, Nebraska, Kansas, Iowa, Minnesota, and northern Missouri. BY GIL GULLICKSON.

WET CONDITIONS UNDERPIN CORN, SOYABEAN PRICES MONDAY.

DES MOINES, Iowa -- On Monday, the CME Group’s farm futures remain stronger.
At mid-session, the July corn futures are 4 1/4¢ higher at $3.76, while December futures are 4¢ higher at $3.94.


July soybean futures are 6 1/4¢ higher at $9.59, November soybean futures are 6 1/2¢ higher at $9.58.

July wheat futures are 6 1/2¢ higher at $4.41.

July soy meal futures are $1.70 per short ton higher at $308.70. July soy oil futures are $0.10 higher at 33.14¢ per pound.

In the outside markets, the Brent crude oil market is $0.43 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 97 points higher.

Jack Scoville, The PRICE Futures Group’s Senior Market Analyst, says the weather-driven market is still focused on wet conditions and replanting of corn.

“Wet is the four letter word. More rain over the weekend and forecasts for more this week have kept speculators doing some buying or at least not selling more,” Scoville says.
For this afternoon’s USDA Crop Progress Report, the trade Ideas are that corn planted progress can be as much as 85%.

“But, talk of big replanting to be done and talk of yellow crops keep ideas about condition highly variable,” Scoville says.

He adds, Soybean investors are seeing slow planting and no business at all from South America.  Wheat is up on wet weather creating planting delays for spring and condition worries for winter.  So wet is pushing prices higher today in a moderate volume day,” Scoville says. BY MIKE MCGINNIS.

MEXICO BUYS CHEAPER BRAZIL CORN AS NAFTA TALKS LOOM-OFFICIAL.

MEXICO CITY, May 17 (Reuters) - Mexico expects to import a record amount of yellow corn from Brazil this year after its livestock producers secured lower prices in deals with suppliers on a recent visit to South America as NAFTA talks loom, a Mexican official said Thursday.

Alejandro Vazquez, a government official who was part of a Mexican delegation that visited Brazil and Argentina last week, said Mexican livestock companies on the trip had negotiated directly with suppliers and cut out commodities traders such as Cargill Inc and Louis Dreyfus that normally arrange shipments.

Following repeated threats by U.S. President Donald Trump to pull out of the North American Free Trade Agreement, Mexico, a net grains importer, has been eager to show the United States that it has options to trade elsewhere.

It has touted an upcoming visit to China and trade talks under way with the European Union, Brazil and Argentina , while looking for new suppliers for the U.S. grains that make up most of its imports of corn, wheat and soybeans.

The Trump administration launched the process for opening NAFTA for revisions on Thursday and will likely face pressures from the politically connected U.S. corn industry to maintain market access to Mexico, one of its biggest customers.

Higher costs and longer shipping times have in the past limited Mexican imports from South America. Before the trip, yellow corn from Brazil cost about $15 per tonne more for Mexico than U.S. corn.

But Mexican companies signed deals in Brazil for two shipments of 30,000 tonnes each for delivery in August that were only $3 to $5 per tonne higher, part of the 300,000-tonne total they plan to import between August and October at roughly the same price, Vazquez said.

"If prices become even more attractive, they could import even more," Vasquez said, adding that bigger deals could cut margins further. "And in some regions of Brazil, yellow corn is even cheaper than in the U.S." for Mexico.

Vazquez, the head of Aserca, an agency in the Agriculture Ministry that promotes Mexican products, said the livestock companies chose to pay more for Brazilian yellow corn as an investment in case NAFTA unravels and disrupts the cheap access to U.S. corn they use for animal feed.
"For them, it's not an option to be closing their plants," Vazquez said.

The 300,000 tonnes of yellow corn from Brazil this year would be a tiny fraction of the 12.75 million tonnes that Mexico imported from the United States last year. But it would be nearly five times more than it imported from Brazil last year and a record, Vazquez said.

Vazquez said Mexico should have shopped around for alternatives to U.S. grains long ago.
"Mexico was in a comfort zone," he said. "We didn't need to go and seek these opportunities that we're finding now." (Reporting By Mitra Taj; Editing by Bill Trott). BY MITRA TAJ.

SF SPECIAL: WHEN A FAMILY OWNED ELEVATOR GOES BELLY UP.

When the Porter Elevator locked its doors to customers in December 2015, the relationship it had built as a trusted business partner was shattered. In this four-part series, we examine what happened when the Minnesota elevator went under.
As the tallest building in Porter, Minnesota, the Porter Elevator Feed Mill has played a critical role in the growth of the community. As a wholesale feed dealer, the company buys and sells grain, stores grain, hauls feed and grain, and processes and sells feed. Built in the 1930s, local farmers have looked to its owners as a trusted business partner for decades.

“I grew up in this area and have lived here my whole life,” says Leon VanDerostyne, who farms with his brother, Jim. “For more than 30 years, I’ve been storing and marketing my grain through the Porter Elevator. In all that time, I never had a problem getting paid.”

That all changed on December 10, 2015. At noon that day, Bruce Tetrick, president of the elevator, locked the doors to his customers for the last time. Within 15 minutes of folding, the rumors began to circulate.
“My brother Jim, as well as our brother, Gary, who also farms and did business with the elevator, called to tell me they’d heard the elevator had closed down,” says VanDerostyne.
While those conversations were unsettling, a phone call to his bank, the First Security Bank - Sleepy Eye, a day later was even more disheartening.
“I had gone into the elevator on December 9 to sell 34,800 bushels of corn I had in storage,” he says. “Bruce handed me a check for $111,229. I deposited it in my account that same day. When I heard the elevator closed, I was worried about that check and called my bank Friday morning. That was when the bank told me the check was no good.”

VanDerostyne also had 1,235 bushels of spring wheat and 14,144 bushels of soybeans in open storage, 231.5 bushels of corn in the grain bank, and 1,000 bushels of soybeans on a deferred payment contract.

Building a better system

In this rural farming community, few were untouched by what happened that fateful day. As the reality of the situation started to unfold, farmers understandably had questions.
“Nobody knew what to do,” says VanDerostyne.

“Before the Porter Elevator, the state of Minnesota hadn’t dealt with a situation like this for 10 years or so,” says Kevin Stroup, an attorney with Stoneberg, Giles and Stroup in Marshall, Minnesota. “The calls started coming into our office shortly after noon the day the elevator closed. A number of them were from farmers who all had similar questions.”
Based on the suggestion of another grain elevator it represents, the firm decided to hold an informational meeting as a courtesy to farmers.
“What we found was that there was no good central location for these folks to get answers. There were a lot of rumors, and we wanted to quell as many as we could,” he says.

More than 100 people showed up for the meeting, which included farmers as well as several of the area’s main ag lenders. The majority of questions centered around what the path would be going forward, especially since it was likely that Tetrick would file for bankruptcy.

“We shared what we knew, what we didn’t know, and how the process works because it appeared that he was going to file for bankruptcy,” says Stroup.

Ultimately, the privately held elevator filed for Chapter 7 on December 23, 2015. At the time of the filing, court documents showed total assets of $3.6 million and liabilities of $4.2 million. More than $1 million of those liabilities were in unsecured claims including VanDerostyne’s bounced grain check and the grain he had delayed payment on.

Classifying Claims

According to Stroup, the nearly 90 farmers affected by the closure fell into three buckets.

Bucket 1: You had grain in storage.

“If you stored grain at the elevator, you still own that grain,” says Stroup.
Because the grain was still owned by the farmers, it was rumored that they had the right to reclaim their commodity.  

“A farmer does have state law reclamation rights relating to the sale of goods (grain) under the Uniform Commercial Code,” says Greg Bucher, who is also an attorney with Stoneberg, Giles and Stroup. “That said, once an elevator files for bankruptcy, and the automatic stay imposed, the exercise of the state law right of reclamation, and any litigation over that issue, occurs under the oversight of the bankruptcy court.”

Ned Bergman, USDA’s chief of the examination branch, says in theory farmers could have taken back their grain. “In reality, there are a lot of weaknesses in allowing them to do that,” he notes.
“For instance, if a farmer was to take redelivery, who would pay for the costs, like transportation, associated with taking that grain back? The farmer would,” says Carie Pintado, USDA’s chief of the licensing branch.

It’s also about quality and quantity.
“When you do a liquidation, you are never quite sure of the quality of the grain,” Bergman notes. “You can make basic determinations, but you don’t know what you’ve got until you empty those bins.”
“Plus, until you clean out an elevator, you really don’t know how much grain is actually there,” Stroup adds. “You can measure it to your heart’s content and usually that’s accurate, but you’re not 100% sure.”

Once the USDA knew what they were dealing with and ownership of the grain was established, the agency then went out into the marketplace to find companies willing to work with them to liquidate the stored grain, which included corn, soybeans, wheat, and oats. Farmer’s Cooperative Elevator in Hanley Falls was awarded the bid and sold the commodities at an established benchmark.

“What we have to do is, on a particular day, say this is the benchmark and legally establish what the fair market price is,” explains Bergman. “When the liquidation is complete, the proceeds are placed in a grain fund, which is mandated by the U.S. Warehouse Act. Affected farmers are issued checks from this fund, and all funds have to be distributed on a pro-rata basis.”

As with any situation like this, the USDA hopes to recover 100% in the sales. If they don’t, a $230,000 federal bond the elevator had kicks in to make up the difference. “If necessary, we work with the bonding company to recoup any losses and include them in the distribution,” he notes.
According to court documents, the proceeds of the sale totaled a little over $3 million – more than enough to cover the $2.8 million owed farmers after subtracting storage fees. Payments were distributed to farmers in installments. Farmers received the last approximately 9% owed to them the week of April 10, 2017. Any excess funds from the sale are used to pay secured creditors like banks.
“Everybody who had grain stored at the Porter Elevator had to be treated the same because grain was all stored essentially on a comingled basis,” says Bergman.

While some may not agree, he says liquidating that grain and then issuing checks to farmers at the liquidation price was the cleanest and most efficient way to take care of the problem. “In the end, it was probably the most beneficial way to handle it for the farmer as well,” he notes.
Bucket 2: You sold grain and received a check from the elevator.

“For instance, if a farmer was to take redelivery, who would pay for the costs, like transportation, associated with taking that grain back? The farmer would,” says Carie Pintado, USDA’s chief of the licensing branch.
It’s also about quality and quantity.
“When you do a liquidation, you are never quite sure of the quality of the grain,” Bergman notes. “You can make basic determinations, but you don’t know what you’ve got until you empty those bins.”
“Plus, until you clean out an elevator, you really don’t know how much grain is actually there,” Stroup adds. “You can measure it to your heart’s content and usually that’s accurate, but you’re not 100% sure.”
Once the USDA knew what they were dealing with and ownership of the grain was established, the agency then went out into the marketplace to find companies willing to work with them to liquidate the stored grain, which included corn, soybeans, wheat, and oats. Farmer’s Cooperative Elevator in Hanley Falls was awarded the bid and sold the commodities at an established benchmark.
“What we have to do is, on a particular day, say this is the benchmark and legally establish what the fair market price is,” explains Bergman. “When the liquidation is complete, the proceeds are placed in a grain fund, which is mandated by the U.S. Warehouse Act. Affected farmers are issued checks from this fund, and all funds have to be distributed on a pro-rata basis.”

As with any situation like this, the USDA hopes to recover 100% in the sales. If they don’t, a $230,000 federal bond the elevator had kicks in to make up the difference. “If necessary, we work with the bonding company to recoup any losses and include them in the distribution,” he notes.

According to court documents, the proceeds of the sale totaled a little over $3 million – more than enough to cover the $2.8 million owed farmers after subtracting storage fees. Payments were distributed to farmers in installments. Farmers received the last approximately 9% owed to them the week of April 10, 2017. Any excess funds from the sale are used to pay secured creditors like banks.
“Everybody who had grain stored at the Porter Elevator had to be treated the same because grain was all stored essentially on a comingled basis,” says Bergman.

While some may not agree, he says liquidating that grain and then issuing checks to farmers at the liquidation price was the cleanest and most efficient way to take care of the problem. “In the end, it was probably the most beneficial way to handle it for the farmer as well,” he notes.
Bucket 2: You sold grain and received a check from the elevator.

If you sold your grain and received a check, whether it was good or not, you are considered an unsecured creditor,” explains Stroup. “The title to that grain was transferred to and is held by the elevator with that sale.”

“Since the check bounced, I posted a letter on the elevator’s door requesting to reclaim my grain,” says VanDerostyne. “Even though I knew my corn was still in the elevator, I was told it no longer belonged to me because I sold it. I was now considered a creditor. My grain was basically taken away from me and the proceeds were given to the bank once it was sold.”
As an unsecured creditor, VanDerostyne and others who fell into this bucket could apply for compensation through a bond the elevator had with the state of Minnesota. According to Nick Milanowski, the Minnesota Department of Agriculture (MDA) received $2,001,042.45 in claims from 12 producers.
“All submitted claims, associated paperwork, internal documents, and records from inspector visits were reviewed to determine which claims were valid and which were not,” says Milanowski, the MDA Fruit, Vegetable & Grain Unit supervisor, plant protection division. “Once final determinations were made, 11 producers who had filed $1,106,435.17 in total claims were found to be valid. In the case of multiple claims, a pro rata share is calculated and dispersed.”
However, the bond would only cover $125,000.
“Almost a year after the elevator closed, I received a check for approximately $13,000, which was around 12% of what I was originally owed on the grain check that bounced,” says VanDerostyne.
Had he left his corn where it was, his story would have been much different.
“If my grain was in storage, I would have received the full amount owed to me,” says VanDerostyne. “I’d have been a thousand times better off if Bruce hadn’t given me a check that day. If this would have happened to me when I first started farming, I’d have been finished.”
The only reason he sold grain that day was because there was a piece of farmland up for sale he had planned to bid on the following week.
“Not only did I lose out on that investment, I lost out on years of revenue I could have had from the crops grown on that land,” says VanDerostyne.
Bucket 3: You sold grain and delayed payment.
“If a farmer sold his grain and deferred the payment, that grain now belongs to the elevator. In this instance, he is again seen as an unsecured creditor,” Stroup says.
When the MDA reviewed the documents, it found that some of the claims against the bond represented signed contracts.

“The voluntary extension of credit contracts (VECC) or deferred payment contracts are not covered by the bond,” says Milanowski.

However, VECCs that were not signed presented a challenge … and a loophole.
“Contracts that are not signed by the seller are covered by the bond because the seller has not signed acknowledging the additional risk the contract presents,” he explains. “Due to that, there were some contracts that were included in the bond disbursement.”

The Other Painful Truth
The next harsh reality came when the elevator’s assets were liquidated to settle outstanding debt.
“When the equipment was auctioned off, it was grouped together, and just the big-ticket items were sold,” says VanDerostyne. “I don’t feel they maximized the amount of money they could have gotten for this stuff, which put the farmer further back in line to get some of the money owed him that wasn’t covered by the state bond.”

“It wasn’t made clear to farmers that it didn’t matter how those assets were sold,” says Stroup. “They were never going to get any money out of the liquidation of the equipment or the real estate because there was no equity in either one.”

“If there were any excess funds after the liquidation, secured creditors like banks get paid first in the bankruptcy process,” says Bucher.

A Sense of Betrayal
As if losing a six-figure paycheck isn’t maddening enough, the difficult part comes in trying to understand how one of your own could do this to you.

“I went to school with Bruce. He was a member of our community,” says VanDerostyne. “I trusted him.”

“This was a family-owned operation and had been for a number of years,” says Stroup. “It’s why people were so comfortable with them.”

Attempts to reach Tetrick for comment were unsuccessful.
Like VanDerostyne, Austin Muhl knew Tetrick as well as his son, Jacob, who also worked at the elevator for years.

“I considered them friends,” says the young farmer. “They were reasonable and fair. If there were ever a time when there wasn’t much work, they would usually find work to keep you busy. They were actually the best guys to do business with.”

Muhl was a farmer who not only purchased feed from the elevator, but also hauled grain for the business. As a customer, he had an outstanding feed bill when the elevator went on lockdown. As a vendor, he was also owed money.

In the second installment of this four-part series, the First Security Bank – Sleepy Eye takes a handful of Minnesota farmers to court, including Muhl, to try to recoup some of its losses after the elevator files for bankruptcy. Part two will come out Thursday, May 25.

HOW WE REPORTED THE STORY

Laurie Bedord, Advanced Technology Editor, first learned about the Porter Elevator bankruptcy in February 2016. At the time, farmers were hesitant to talk because the investigation was ongoing and it was still a very sensitive subject in the community. Nine months later, she began contacting farmers who did business with the elevator, a vendor hired by the elevator, two attorneys who offered legal advice to some of the parties affected, as well as a representative from the Minnesota Department of Agriculture and USDA officials involved in the case.

Bedord also interviewed a Minnesota state representative working to change the legislation affecting elevator insolvencies. In addition, she spoke with the North Dakota Public Service Commission to compare the legislation it has in place with Minnesota to protect farmers in an elevator bankruptcy situation.

Hundreds of pages of court documents provided detailed information on the financial situation of the family-owned elevator as well as the names of the numerous farmers, suppliers, and vendors affected by the bankruptcy.

Attempts to reach the president of the Porter Elevator for comment were unsuccessful. BY LAURIE BEDORD.