Grains

A cold, wet and snowy start to the 2018 planting season had many farmers delayed, but in just three weeks the nation's corn crop has gone from 5% planted to 62% planted. States like Illinois and Indiana made significant progress this week and the corn crops there are ahead of their 5-year-averages. In Illinois, 90% of the corn crop is in the ground. In Indiana, 73% of the corn is planted. Both states are 20 points ahead of their 5-year-average. While Iowa farmers saw a 25 point gain from the previous week with 65% of their corn planted, they are slightly behind their normal pace of 70%. "Progress varies greatly across the state," said Iowa Secretary of Agriculture Mike Naig on Monday. Northwest and north central Iowa are lagging well behind average due to wet conditions, he explained. In southeast Iowa farmers are hoping for rain as 91-percent of corn and 65-percent of soybeans in that area have been planted. The upper Midwest continues to struggle getting corn in the ground. In Minnesota, only 40% of the corn is planted compared to 77% the same week last year. In North Dakota, only 35% of the corn is planted, and only 30% of Wisconsin's corn is planted. South Dakota is showing the most significant lag, running 50 percentage points behind last year with only 21% of the crop planted. Soybean Plantings Rocket Forward Too Farmers in the Corn Belt are getting soybean plantings hammered out too. The nation's crop is 25% planted, slightly ahead of the 5-year-average. Some states are making more progress than others. In Illinois, soybeans are 66% planted, a 42 point advantage over the state's 5-year-average. Similarly, Indiana is 53% planted, 34 points higher than their average. Soil temperatures in Minnesota, North Dakota and South Dakota are keeping soybean plantings delayed in those states.

Around any large or mid-size city in America, one can find land that was previously rich, fertile farmland being bulldozed and segmented to make room for housing and/or commercial businesses. It might be a well-deserved retirement fund for farmers, but once the land is covered with buildings and residences, it will never be farmland again. The American Farmland Trust (AFT) recently released a comprehensive assessment of the loss of U.S. farmland and ranchland. "Farms Under Threat: The State of America's Farmland" sounds a stark warning: The loss of farmland is serious and will accelerate unless action is taken, AFT said in a news release. AFT shares the report's key findings: — Between 1992 and 2012, almost 31 million acres of farmland were lost, equal to all the farmland in Iowa — Nearly twice the area of farmland was lost than was previously shown — 11 million of those acres were among the best farmland in the nation — Development disproportionately occurred on agricultural lands, with 62% of all development occurring on farmland — Expanding urban areas accounted for 59% of the loss. Low-density residential development, or the building of houses on 1-to-20-acre parcels, accounted for 41% "Farms Under Threat: The State of America's Farmland" is the first step in a multifaceted initiative, the organization says. It will be followed by a separate report later this year that analyzes past farmland loss state-by-state and looks at the effectiveness of state farmland protection policies. At that point, AFT will "assess a range of future threats, forecast potential impacts to 2040 at a county level and recommend effective policies at all levels that help conserve agricultural land,"it said in the release. "Farmland is critical infrastructure, akin to roads and bridges,"said John Piotti, AFT's president and CEO, in the release. "Without farms, there's not only no food, but there's no future. We need farmland to feed us and sustain our economy, but also to help restore our planet.” "Action is needed now because lost farmland is irretrievable,"he continued. "Farmers are aging, and the land they steward must be passed on to the next generation. If the trends of the last two decades continue over the next two decades, America will face a future with too few farms." American Farmland Trust stresses the urgency of the situation; it wants to help stakeholders see the importance of farmland to society and understand what can be done to stem the loss. "Allowing large-scale farmland loss to continue imperils our ability to feed our growing population. It challenges our economic prosperity,"AFT said. "Agriculture accounts for one trillion dollars of the U.S. GDP, each dollar stimulating $1.27 in additional activity. It protects wildlife and helps reduce air and water pollution. Farmland sequesters carbon in soil and plants, holds more water in drought, suppresses fire and provides for flood control in extreme weather conditions. And farmland contributes to the lifestyle we all treasure as well as scenic views, open space and recreation." "Maps of the contiguous United States released as part of the report show actual patterns of farmland loss within counties,"said Ann Sorensen, AFT's research director. "It identifies the best agricultural land nationwide by determining which land is most productive, most versatile and most resilient.” AFT feels more support is needed from federal policymakers, farmers and landowners, local and state planning authorities and the public, to slow the current trends. The report includes AFT's recommendations for action.

Monday's Crop Progress report from USDA was evidence of how quickly farmers can get corn and soybeans planted when today's technology is matched with favorable weather and farmer tenacity. Last week, the report showed planting was slightly delayed and farmers were behind their average pace in most states. Monday's report shows that many states are now actually ahead of their planting average. Last week NASS crop progress reporters said 32% of Illinois corn was in the ground, this week they say 74% of it is. Similarly, Indiana's corn crop was 8% planted last week and this week it's reported at 42% planted. In Iowa, 40% of the corn crop is now planted compared to the reported 17% last week. According to Steve Johnson with Iowa State University, who has been contributing to crop progress reports on a volunteer basis for 15 years, he underestimated the amount of corn that was planted last week. "I definitely missed some planted acres last week," he says. "This week it was much easier to see the planter lines." Ohio's farmers also made significant progress this week. The corn crop jumped 20% to 21% compared to last week's report that only 1% was planted. Minnesota and Wisconsin also made up for their planting delays jumping the corn crops to 9% and 15% planted respectively. North Dakota and South Dakota remain significantly delayed. The week of nice weather in the Corn Belt also boosted soybean plantings. USDA reports the nation's crop is 15% planted. This week last year the crop was only 13% planted. Farmers in Louisiana made the most progress planting 24% of the state's soybean crop last week alone. Illinois farmers also made significant progress, bringing the state's soybean crop to 29% planted-15% ahead of the same week last year. The soybean crops in all of the I-states are on pace with or ahead of last year.

Trade is a topic that's generating angst among some farmers and ranchers. From the Trump administration currently renegotiating the North American Free Trade Agreement (NAFTA) to a possible trade dispute between the U.S. and China, farmers and ranchers are voicing concern about the commodities and commodity prices - at stake. In a Farm Journal exclusive, Ray Starling, who serves as the special assistant to the president for agriculture and agricultural trade, discussed why the administration is taking such a tough stance on trade. As the administration outlines strong demands for China in order to reduce the trade deficit and fix what the administration calls "unfair" trade practices, Starling said he understands the concern coming from farm country. However, he said agriculture's fear that "we will upset the apple cart" regarding keeping key markets open, is missing a key point. "I think a point that we don't make enough and that we don't talk about enough is our perspective is we should actually be doing a lot more," said Starling. "I heard a congressman say in a meeting with the president a couple of weeks ago, the challenge with regard to the conversation we're having right now about trade, and specifically with ag trade, it's really a conversation that should have occurred 20 or 25 years ago." Starling says that's why the administration is trying to reset the stage when it comes to trade, fighting for better trade deals, and more importantly, fair trade deals. He said China's recent decision to slap a 178.9 percent tariff on U.S. sorghum is a great "exhibit A" for what the President wants to address. "We saw what we believe is a very thinly veiled attempt to simply block our product out of the market," said Starling. "We don't think it was truly a sincere interested conversation about "˜is there dumping going on here,' and that's not fair." Starling acknowledged that much of agriculture is the most concerned with the future of soybeans. China is the U.S. soybean industry's largest customer, with one out of every three rows destined for the top buyer. However, Starling said soybeans continue to lose market share in China, and so there is vital ground to gain. "The U.S. percentage of that market continues to appear to be in decline," said Starling. "That's something we need to reverse. We are still selling them more and more soybeans every year in terms of pure number of bushels, but as a percentage of their market we should be nervous that we are not growing along with their market." That's why Starling said as many agricultural trade organizations stand by their "do no harm" mantra when it comes to trade and pending trade deals, he said that stance is placing the bar too low when it comes to the future of agricultural trade. "I think if we think long-term about the ag economy and where we need to go in the fact that our production is going to continue to increase, our technologies are going to continue to get better, our farmers are going to continue to be smarter and be better at managing all the inputs and the elements that they have to put up with," said Starling. "If that's the case, we're going to have to sell more, not just do no harm."

The world's largest oilseed processer alleges China has stopped purchasing soybeans from the United States but industry leaders say the statement is more complex. According to Bloomberg, Bunge's CEO Soren Schroder said this week China has essentially stopped buying U.S. soybeans due to trade spat with the United States. The statement was made the same week delegates from the Trump Administration traveled to Beijing in an effort to smooth out trade tension between the two countries. In a tit-for-tat trade dispute, China is threatening to slap a 25 percent tariff on shipments of some U.S. commodities, including soybeans. Industry experts say there is a dispute whether the sale is a reduction or a halt. "There is certainly evidence that there is a decrease," said Mike Steenhoek, executive director of the Soy Transportation Coalition. "There are differences of opinion whether it is more of a dramatic pull-back in purchasing or if it's simply a reduction. Either way, that's of concern to us. Certainly Bunge has very much a 30,000 foot perspective on this." "[China has largely] stopped purchasing U.S. soybeans for now," said John Baize, president of John C. Baize and Associates, a consultant for the U.S. Soybean Export Council (USSEC). "They normally import very little now." Baize says a shipment of 193,000 tonnes of U.S. soybeans were shipped to China the week ending on April 26. The latest trade data released by the U.S. Department of Agriculture (USDA) shows China's traders are already cancelling shipments of several agricultural commodities, including U.S. soybeans. According to the data, there were net reductions of 133,700 tonnes of U.S. soybeans to China for the week ended April 26. Part of the shipment was cancelled. Another 66,000 tonnes were redirected to Vietnam. However, Both Steenhoek and Baize say it's not unusual for China to reduce its purchases during this time of year. Historically, China purchases soybeans primarily out of South America since the crop is ready to be harvested. "Last year, the U.S. exported 36.25 million tons of soybeans to China. Of that amount, only 3.3 million tons were shipped to China in April through August, the last five months of the marketing year," said Baize. However, Baize says the trade stall goes both ways. He says U.S. exporters are not eager to sell soybeans to China in case there is a tariff implemented while ships are at sea. A shipment is subject to a tariff if the product arrives in in a country after a tariff is implemented. It doesn't matter when the product was exported. A similar situation is happening in the U.S. sorghum industry where many ships turned around or were rerouted at sea last month due to steep tariffs set by China. According to USDA trade data, Chinese buyers cancelled 53,100 tonnes of U.S. sorghum purchases the week ended April 26, leaving sales of 271,500 tonnes yet to be shipped. Yet, sorghum has a different situation than soybeans. There are antidumping duties tacked on the product by China. Sorghum now has a 178.6 percent tariff. More tariffs could be added as well. Baize says the threat of tariffs at sea is mirrored by the soybean industry. "I don't know that any company in their right mind is going to sell a bunch of soybeans to China now on a delivered basis when [there's] potential that shipment will get stopped," said Baize. "I think you'd say mostly it's a standstill for everybody for now because buyers don't have to purchase now. They can buy later on if the tariffs don't go into effect." Steenhoek says the threat of a retaliatory tariff at sea is certainly on the minds of U.S. exporters. However, he believes the scare may not be the main reason for the slowdown. "These exporters, while that might be a concern that all of the sudden a tariff could be imposed or some kind of restriction imposed; it doesn't do them a whole lot of benefit to simply sit on those soybeans in the U.S. because there is limited market for it," said Steenhoek. He says while markets can shuffle, there is no replacement for China. "China is such a major customer for soybeans," said Steenhoek. "They import $14 billion worth of U.S. soybeans. Our number two importer of soybeans is Mexico at $1.5 billion. There's a big disparity between [the number one and the number two buyer of U.S. soybeans]." U.S. delegates are returning home from the trade meeting in Beijing where little breakthroughs have been made within the visit. Talks are expected to continue.

As the Wheat Quality Council prepares to set-out on its annual winter wheat tour Tuesday, scouts will get a first-hand look at a struggling Kansas wheat crop. They'll head into fields armed with the latest USDA Crop Progress data. Monday's report shows 13% of the Kansas wheat crop is described as good to excellent, 37% is fair, 34% poor, and 16% very poor. Two percent of the Kansas wheat has reached the heading stage, 22 points behind the 5 year average. The overall ratings in the 18 states where wheat conditions are monitored did not fare much better. Thirty-three percent is judged as good to excellent. Nineteen percent is heading, eleven points behind the 5 year average. Corn plantings reached 17% as of Monday, up 12 points from last week, but still ten points behind the 5 year average. Illinois farmers made big gains last week with 32% now planted. While progress was made, it's still behind the 5 year average of 40% planted. Iowa corn farmers also moved the bar. Seventeen percent of Iowa's corn is now planted. Last week the USDA report showed zero corn had been planted. "We remain behind the five-year average, but hopefully conditions will allow farmers to continue to be in the fields and catch-up to normal," said Iowa Secretary of Agriculture Mike Naig. Three states still have not planted enough corn to move the hash mark off zero - Minnesota, North Dakota and South Dakota. Usually all three have started by now. Soybean planting reached five percent which ties the 5 year average this early in the season.

The European Union will widen a ban on pesticides linked to harming bees, a move that could threaten output of some crops and put pressure on insecticide makers such as Bayer AG and Syngenta AG. EU governments voted Friday in Brussels to prohibit the use of neonicotinoids everywhere except greenhouses. Sixteen nations approved the restriction proposed by the European Commission, leading to a positive result under “weighted-majority” rules. The measure will be adopted by the commission, the EU’s regulatory arm, in the coming weeks and take effect by year-end. Neonicotinoids, which are used as seed coatings and protect plants from pests, were banned by EU regulators in 2013 for use on rapeseed, sunflowers and corn after some studies linked them to unintended deaths of bees. Today’s vote follows a review by the European Food Safety Authority in February, which concluded the chemicals pose risks to bee health. The wider ban will apply to three neonicotinoids: clothianidin, imidacloprid and thiamethoxam. "Bee health remains of paramount importance for me since it concerns biodiversity, food production and the environment," Vytenis Andriukaitis, the EU’s health and food safety commissioner, said in a statement. Crop Risk Some industry groups have argued that a ban could curb production of crops such as wheat and sugar beet. Stopping the use of neonicotinoids may lead to a drop in EU sugar-beet yields, with estimates ranging between 10 percent and 49 percent, according to the International Confederation of European Beet Growers, known as CIBE. Today’s vote is a “severe blow” for sugar-beet growers, the Brussels-based organization said Friday. "European agriculture will suffer as a result of this decision," said Graeme Taylor, a spokesman for the European Crop Protection Association, which represents pesticide producers. "In time decision makers will see the clear impact of removing a vital tool for farmers and European food production." Some farmers are already cutting back on rapeseed plantings due to lower yields and higher crop protection costs, according to Miroslaw Marciniak, a grains market analyst in Warsaw. The same may eventually happen to grains, he said. "Every restriction on active substances limits the range of available crop-protection tools," he said. "Production costs increase and if there are no alternatives, it can impact yields." Pesticide Makers The wider ban could impact neonicotinoids sales by Bayer and Syngenta, which clashed with the EU in court last year over the bans on the products. The court’s decision is due next month. Evidence shows that the products pose a minimum threat to bee health compared with a lack of food, diseases and cold weather, Basel, Switzerland-based Syngenta said in a statement. Bayer, based in Leverkusen, Germany, said the restrictions aren’t warranted and are a “bad deal for the European agricultural sector and the environment.” The ban “would really help to slow insect deaths, maybe stop them altogether,” German Environment Minister Svenja Schulze said on broadcaster ZDF on Friday, before the EU announcement. “We have to change our approach to pesticides. It’s really dramatic what is currently happening and we will act.”

As the Wheat Quality Council prepares to set-out on its annual winter wheat tour Tuesday, scouts will get a first-hand look at a struggling Kansas wheat crop. They'll head into fields armed with the latest USDA Crop Progress data. Monday's report shows 13% of the Kansas wheat crop is described as good to excellent, 37% is fair, 34% poor, and 16% very poor. Two percent of the Kansas wheat has reached the heading stage, 22 points behind the 5 year average. The overall ratings in the 18 states where wheat conditions are monitored did not fare much better. Thirty-three percent is judged as good to excellent. Nineteen percent is heading, eleven points behind the 5 year average. Corn plantings reached 17% as of Monday, up 12 points from last week, but still ten points behind the 5 year average. Illinois farmers made big gains last week with 32% now planted. While progress was made, it's still behind the 5 year average of 40% planted. Iowa corn farmers also moved the bar. Seventeen percent of Iowa's corn is now planted. Last week the USDA report showed zero corn had been planted. "We remain behind the five-year average, but hopefully conditions will allow farmers to continue to be in the fields and catch-up to normal," said Iowa Secretary of Agriculture Mike Naig. Three states still have not planted enough corn to move the hash mark off zero - Minnesota, North Dakota and South Dakota. Usually all three have started by now. Soybean planting reached five percent which ties the 5 year average this early in the season.

Thursday the Missouri Department of Agriculture changed the Special Local Needs labels for new dicamba products. Fexapan, Engenia and Xtendimax may now be applied up to June 10, 2018 in Bollinger, Butler, Cape Girardeau Dunklin, Pemiscot, Mississippi, New Madrid, Stoddard, Scott and Ripley counties. The cutoff for those counties was previously June 1 and all other Missouri counties must stop applications after July 15, 2018. The decision came due to weather constraints that might be keeping farmers out of fields. "We have been diligently monitoring weather to determine what, if any adjustments need to be made to the cutoff dates, as we have said we would from the beginning," says Chris Chinn, Missouri director of agriculture. "Because of the wet, cold spring, planting has been delayed. This extension will give farmers extra days to use these products prior to the cutoff date." All other restrictions within Missouri's Special Local Needs label will remain the same. This includes: not applying dicamba before 7:30 a.m. or after 5:30 p.m., application permitted by certified applicators who have undergone required training only and the completion of an online dicamba notice of application before applying the product.

There's not a snowflake in sight in the Midwest and temperatures are starting to rise, kicking off the unofficial start of planting season for many farmers. The slow start is being reflected in Monday's crop progress report, and soybeans are making their first appearance. Nationally, 2 percent of the soybean crop is in the ground, on par with the five-year average. Winter wheat conditions are holding strong amid dry conditions in the Plains, and 31 percent of the crop is rated good to excellent. Spring wheat planting is rolling, and 3 percent of the crop is planted, lagging behind the five-year average of 25 percent. Corn planting is also falling behind the five-year average of 15 percent planted to 5 percent planted in Nebraska, Illinois and Indiana. Usually the Iowa crop is at 11 percent planted, but there hasn't been a seed planted yet. There are still questions on if this cold, late start to the season will have an impact on yields. "The detrended yield for 2018 is about 171 bushels per acre- most of those years had yields between 166 and 170," said Mike Tannura, T-Storm Weather. The researchers say assuming the three I-States are representative of the entire Corn Belt, 14 days is also the estimate of field days needed to plant the entire U.S. corn crop.