TODAY ON AGDAY
AUGUST 17, 2012
CHICAGO LAND VALUES:
Good morning I’m Clinton Griffiths. The drought maybe short-lived, but it appears farmers are still willing to make the long-term investment of farmland. "In 1988 things were starting to turnaround. Land values went up in 88 despite the drought and exploded by 20% the next year. The farm income was healing and going. We have net farm income is very high still. And will continue to be high because of crop insurance." Walsten says there is currently enough momentum to continue to push land value higher despite the drought. Walsten says in addition to high farm income, interest rates are still low which means investors won't hesitate to purchase the land if farmers don't.
Two more governors are asking the EPA to waive the renewable fuels standard. It determines how much ethanol is blended into the nation's gasoline supply. North Carolina and Arkansas - both big poultry states - asked EPA to investigate. Meanwhile, a new study out of Purdue says waiving the mandate would not necessarily moderate corn prices itself. Much depends on the price of crude oil. You can read their entire report at farmfoundation.org.
The latest U.S. drought monitor map saw a slight reduction in the area of the united states in all categories of drought. However the states in the most intense drought areas declined even further.
When teams of scouts head-out for the Profarmer Midwest crop tour, they'll be following routes that mirror much of the drought area in the cornbelt.
While the corn crop declined, it's been a very big year for much of the wheat belt, including big sky country.
Wheat prices continue to rise this week on drought challenges in Russia. So far, the world's third largest wheat exporter has harvested 17% less grain than it did last year. Dry weather hurt yields across the region. Some analysts expect Russia to pull out of the export markets by December. In 2010 the country banned grain exports following its worst drought in 50 years. That caused wheat prices to surge across the globe.
Iowa based Sukup manufacturing is cheering its latest milestone. The company known traditionally for its grain bins and storage systems is making headway in the metal buildings industry. It launched the business back in 2011. The company just earned its international quality certification. It also allows the company to bid on numerous construction projects. The latest report from the association of equipment manufacturers shows farmers and landowners are still buying.
In agribusiness we have an update on the mf global collapse and disappearance of nearly 1 billion dollars in customer money. According to the New York Times, investigators are wrapping their investigation and it appears no one is going to be charged in the case. Investigators say it appears poor risk controls and chaos--not fraud--led to the disappearance of millions of dollars and the firm filing for bankruptcy.
The Profarmer Midwest crop tour is set to get underway this coming Monday. This scouting trip is watched closely by the industry. With USDA cutting the corn and soybean figures just last week, traders are wondering if there are any surprises in the field. Chip Flory leads the tour in the western cornbelt and Brian Grete will be in the east. They join us from our Profarmer studios in Cedar Falls, Iowa to discuss some potential outcomes. For those of you signed up for the Profarmer newsletter, here's what you can expect this week. We'll have preview of crop tour including some historical comparisons. There are tips on sampling like a crop tour pro plus information on FSA's certified acres.
The harvest is underway as Arkansas establishes itself as a hub of vegetable edamame soybean production in the U.S. It's picked about 30 days before conventional soybeans and is unique because it has the vitamins of a vegetable and the proteins of a soybean. Ken Moore has details in this report provided by the Arkansas Farm Bureau.
LACK OF EXERCISE:
In food and your family, if you aren't big into exercise, that doesn't necessarily, mean you'll gain weight. That's according to new research showing a lack of physical activity may not be the key factor in rising obesity rates.
For the third consecutive year, the Monsanto fund is giving farmers the chance to win 25 hundred dollars. It's through America’s Farmers Grow communities. And this year, because of the drought's impact on rural communities, Monsanto is giving farmers and ranchers in counties that have been declared disaster areas by USDA, the chance to win an additional 25 hundred dollars.
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