3 BIG THINGS TODAY, FEBRUARY 22

SOYBEANS, CORN LOWER IN OVERNIGHT TRADING; SALES OF WHEAT, BEANS HIGHER WEEK-TO-WEEK

1. SOYBEANS, CORN LOWER ON ARGENTINA WEATHER, TRADE CONCERNS

Soybeans and corn were lower in overnight trading, extending losses from yesterday’s trading session.

Prices are down amid favorable weather in South America that’s given crop prospects a boost, and on worries about exports as lawmakers attempt to rework the North American Free Trade Agreement.

Wet weather in Argentina is expected to improve conditions for soybeans corn in the country, while rainfall benefits wheat production in Europe, according to weather forecasters.

Investors also may be nervous as negotiations will likely begin on redrafting NAFTA, which some policymakers worry will harm agricultural exports. Sen. Chuck Grassley, a Republican from Iowa, told Successful Farming that he will let the administration know that farmers may be harmed in a renegotiated NAFTA.

Soybean futures for March delivery fell 6 ½ cents to $10.37 ¼ a bushel overnight on the Chicago Board of Trade. Soymeal declined $1.30 to $340.70 a short ton and soy oil lost 0.46 cent to 33.06 cents a pound.

Corn futures for declined 3 cents to $3.70 ½ a bushel in Chicago.

Wheat futures for March delivery fell 3 ¾ cents to $4.44 a bushel. Kansas City futures lost 3 ¾ cents to $4.54 ¼ a bushel.

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2. EXPORT SALES OF BEANS, WHEAT RISE AS CORN DECLINES WEEK-OVER-WEEK

Export sales of soybeans and wheat rose week-over-week while corn declined, according to the U.S. Department of Agriculture.

Soybean sales in the week that ended on Feb. 9 jumped 93% from the prior week to 890,000 metric tons, the USDA said in a weekly report. That’s also up 41% from the prior four-week average.

China was the biggest buyer, taking 262,300 tons, unknown countries took 175,600 tons, Germany bought 152,400 tons, Taiwan was in for 79,700 tons and Spain purchased 71,500 tons, according to the agency.

Wheat sales were reported at 569,100 tons, up 8% from the prior week and 10% from the four-week average.

Unknown importers were the biggest buyers, purchasing 149,000 tons, the USDA said. Mexico was next on the list at 99,600 tons, Nigeria bought 62,000 tons, South Korea purchased 61,700 tons and Yemen took 50,000 tons, the USDA said.

Sales of corn were lackluster week-to-week, falling 19% to 783,500 tons.

Japan was the biggest customer, purchasing 708,800 tons, Peru was next at 83,600 tons, Mexico bought 69,200 tons and Chile took 43,600 tons, according to the USDA

It’ll be interesting to see if Mexico will slow purchases moving forward after a senator from the country this week suggested importers seek supplies from other countries. Most analysts said the threat was idle, but not inconceivable.

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3. EASTERN NEBRASKA, WESTERN IOWA LIKELY TO SEE RECORD TEMPERATURES TODAY

It’s time to open the windows and `let the house out’ as a relative heat wave is rolling through the Midwest this weekend.

Record temperatures are expected in parts of eastern Nebraska and western Iowa today and tomorrow, according to the National Weather Service. Temperatures are expected to hit almost 75 degrees today, cooling back into the 60s tomorrow before jumping again Sunday and Monday to nearly 70.

While it will give people a hint of spring and a chance to get outside, the NWS recommends burning be kept to a minimum.  

“The heat will combine with low relative humidity of 18% to 25% to create very high fire danger across most of the area this afternoon,” the agency said. “If fires develop, they may become difficult to control. Outdoor burning is discouraged during this time.”

NUMBER OF FARMS IN U.S. DROPS AS ACREAGE SIZE GROWS

The number of farms in the U.S. for 2016 is estimated at 2.06 million, down 8,000 farms from 2015, according to USDA data released today.

Total land in farms, at 911 million acres, decreased 1 million acres from 2015.

The average farm size for 2016 is 442 acres, up 1 acre from the previous year.

The number of farms in sales class $250,000 - $499,999 increased, while all other sales classes declined slightly.

The data shows that 50% of all farms had less than $10,000 in sales; 80% of all farms had less than $100,000 in sales; and 8% of all farms had sales of $500,000 or more.  

Land in farms, at 911 million acres, was down 1 million acres from 2015. The biggest changes for 2016 are that producers in Sales Class $250,000-$499,999 operated 1.29 million more acres, and those in Sales Class $1,000,000-or-more operated 1.01 million fewer acres.

Similar to the previous year, in 2016 nearly 31% of all farmland was operated by farms with less than $100,000 in sales; 41% of all farmland was operated by farms with sales of $500,000 or more.

The average farm size continued to increase in 2016 as the number of farms declined more than land in farms. The overall average size increased by 1 acre to 442 acres per farm. Average farm sizes increased in the $10,000 - $99,999; $250,000 - $499,999; and $500,000 - $999,999 sales classes and decreased in the others.

Average farm size by sales class are:

• Sales Class $1,000 - $9,999: 84 acres
• Sales Class $10,000 - $99,999: 309 acres
• Sales Class $100,000 - $249,999: 896 acres
• Sales Class $250,000 - $499,999: 1,296 acres
• Sales Class $500,000 - $999,999: 1,897 acres
• Sales Class $1,000,000 or more: 2,656 acres

A HORSCH PLANTER THAT APPLIES TWO DRY FERTILIZERS

Dry fertilizer fans, listen up. HORSCH created a planter that will let you apply your two favorite kinds of dry fertilizer without worrying about runoff issues caused by broadcast applications.

According to HORSCH, the Maestro SW Dry is the first bulk-fill dry fertilizer planter in North America and uses hydraulic down pressure to plant seed while applying two types of dry fertilizer simultaneously.

Compared with traditional planters, this HORSCH offering can go fast enough that planting speed is increased by 20% to 40%. A large product carrying capacity – 83 bushels of seed, a combined 5 tons of fertilizer – should keep growers in the field longer during planting windows.

Fertilizer can be applied 2 to 5 inches horizontally from the furrow and can also be placed 1.5 to 4 inches below the seed’s depth. Two fertilizer compartments carry the dry fertilizer that flows through large hoses to help prevent blockages. Each opener hose has a stainless-steel sleeved blockage monitor to keep the operator informed if a blockage does occur.

The planter’s unique design houses the seed and dry fertilizer on the cart, which doesn’t affect the row units. A weight transfer system keeps weight evenly spread across the full toolbar with curve compensation doing its part, as well. For seed spacing, HORSCH says an electric motor-driven seed singulator provides industry-leading spacing accuracy.

Growers can get this planter in three different sizes, but all have large-diameter cart tires. The 40-foot wide SW1630 can handle 16 rows with 30-inch spacing. Another 40-foot-wide model called SW2420 can plant 24 rows at a time with 30-inch spacing. The widest model, the 60-foot wide SW2430, plants 24 rows with 30-inch spacing. 

Each model has an ISOBUS control system, which makes integration of monitors and management software programs a snap. A HORSCH monitor can also manage variable-rate application.

All three models of the Maestro SW Dry planter will be available from Horsch dealers starting at $280,000. 

Rice Growers Scheme will create 16,000 jobs in Sokoto – Dangote

The Chairman of Dangote Rice Limited, Aliko Dangote, is confident that the newly signed agreement of the Rice Growers Scheme in Sokoto State, will create 16,000 jobs for farmers.

Dangote disclosed this at the signing of the Rice Growers Scheme agreement with state government and farmers in Goronyo, Goronyo Local government, in the presence of the Sultan of Sokoto, Alhaji Sa’ad Abubakar.

He revealed that the scheme would not only create jobs but also improve the lives of smallholder farmers while ensuring food security in Nigeria.

“Dangote Rice outgrowers scheme is committed to creating significant number of jobs, increasing the incomes of smallholders farmers and  ensuring food security in the country by providing high quality seeds, fertilizers and agro-chemicals as well as technical assistance on best agricultural practices to farmers”, he said.

He however stated that the main intention behind the scheme was as result of the huge foreign exchange losses on rice importation, as well as the federal government’s interest in reviving the agric sector. He promised that the scheme would revive the economy.

DANGOTE TO LAUNCH 25,000HA RICE PROJECT IN SOKOTO

Dangote Rice, a subsidiary of Dangote Group is set to launch on Wednesday 25,000 hectares of rice outgrower programme in Sokoto.

The project is expected to provide hundreds of thousands of employment opportunities for inhabitants of the rural communities, according to a press release from the African Press Organisation.

A pilot is set to begin with 500 hectares by Gonroyo dam, in Goronyo community.

Gonroyo dam is the second largest in the country, after Kainji.

Sokoto state governor Aminu Tambuwal is expected to flag off the project, and seedlings will be distributed to local farmers who will in turn plant and sell rice to Dangote for milling and final processing.

Sokoto is the second after Jigawa, one of 14 states where Dangote Rice plans to operate outgrower scheme to empower local farmers and create job opportunities for community dwellers and reduce migration to the cities.

Rice demand in Nigeria reached 6.3 million metric tonnes in 2015—with oly 2.3 million metric tonnes satisfied by local production, according to the Federal Ministry of Agriculture and Rural Development.

Local production leaves a gap of 4 million metric tonnes currently filled through formal importation or illegal imports over land borders.

Dangote Group hopesto produce 225,000 metric tonnes of parboiled, milled white rice.

“This will allow us to satisfy 4% of the total market demand within 1 year,” said Dangote Group in a statement.

“Our model can then be successfully scaled to produce 1,000,000 MT of milled rice in order to satisfy 16% of the domestic market demand for rice over the next 5 years