Extension Update is a weekly summary of news from Extension, government, and other attributable sources, focused on marketing, farm management, and other issues that are of interest to Midwestern farm owners and operators.

Fieldwork will be the priority this Memorial Day weekend, particularly in areas where continued wet soils have prevented soybean planting and cold soils have forced replants. But as you are in the tractor cab, reflect on the sacrifices made by those who came before us, fought for our heritage, and created the place you call your family farm.

“Food, feed, or fuel?” is the question that will fashion the answer to the future of corn. Purdue’s Chris Hurt says “US corn prices received by farmers from the 1998/99 through the 2005/06 marketing years averaged just $2.05 per bushel.” But he says with the public and politicians clamoring for biofuels, livestock feeders will have economic challenges to obtain corn. “Market prices of ethanol are currently over $3 per gallon and thus ethanol producers could pay near $7.00 a bushel for corn and still have positive returns.”

Ag economist Chris Hurt says, “The greatest fear for the animals sector is that energy prices remain high in coming years, and then a short corn crop occurs in say 2007 or 2008 which results in the need to drastically ration usage. This is a scenario reminiscent of the 1972 to 1975 export boom period when corn prices moved from around $1 per bushel to closer to $3.00. Foreign countries could outbid U.S. animal industries for corn and soybean meal, and reductions in the meat, milk, and egg production resulted.” Read his thoughts.

In the same vein, Iowa State Marketing Specialist Bob Wisner saw the pinch coming when USDA put new crop carryover at 50% of the old crop carryover, all because of the increase in ethanol production. “Projections of declining corn carryover stocks and the rapid expansion in the ethanol industry will make corn prices potentially very sensitive to any weather concerns this summer. The projected increase in ethanol processing was the same as USDA indicated in February at its annual outlook conference.”

Don’t spend your USDA payments yet, says Bob Wisner. “The mid-point USDA’s projected prices for next season are $2.45/bu. for corn and $5.60/bu. for soybeans. The projected corn price is up 24¢ from the expected season average this year, and the soybean price is down 5¢, and neither crop would receive a counter-cyclical payment.

Do you have an IRS & FSA problem with your farm leases? As you know, farm program payments are jointly split with a share lease, but paid wholly to the operator in a cash lease. Extension ag law specialist Don Uchtmann says variable cash leases may really be a share lease (not cash), and other hybrid leases may necessitate an attorney visit. Read his analysis.

Pest update: A possible Asian rust spore found in TX has not been confirmed yet. Keep alert. Two small colonies of soybean aphids have been found in MI, but researchers’ concerns seem to be low about any outbreak.

The Midwestern bug focus is on cutworms and slugs. Extension entomologists report noticeable leaf feeding and cutting injury in certain areas. In IL, pockets of relatively heavy cutworm activity have been detected, and the caterpillars found causing the injury were relatively small, suggesting future potential for more injury. It’s also worth noting that injury caused by slugs has been observed in some field crops in OH. The wet weather has been conducive for slugs and subsequent injury to corn and soybean seedlings. Farmers who use no-till methods should be particularly alert for slugs. If you have slug problems in crops, review rescue treatments.

Without any soybeans to eat, bean leaf beetles are eating alfalfa. Iowa State specialists report near record populations. Scout your emerging beans, and if the cost of control is $10 per acre and the value of the soybeans is $6 per bushel, treatment with an insecticide to prevent further injury is warranted if the density of bean leaf beetles reaches 5.2 beetles per V1-stage seedling.

Nyah, nyah, nyah, hey, hey, goodbye. European corn borer may soon be considered a “secondary” insect. A small number of moths is expected this spring, after the fall survey revealed that only 24% of the state’s corn plants were infested. This compares with an average infestation level of 49.2% from 1943 to 2005. 35% of the 2005 US crop was Bt.

If you have planted beans, before controlling weedy fields, be cautious with 2, 4-D says Extension weed specialist Aaron Hager. Soybeans, both seed and seedling, can be injured and the label requires 7 days before planting with a 1 pint per acre application and 30 days for a 2 pint application, to let the chemical dissipate before emergence. Read Hager’s other recommendations.

Are you baling hay, then wasting it? Extension’s Justin Sexten offers several tips on outside storage.
1) Bale big! 4 in. of spoiled dry matter is 30% of a 4-ft. bale, but only 20% of a 6-ft. bale.
2) Place bales on gravel or wooden pallets to minimize spoilage from ground contact.
3) Orient round bales in north-south rows, with 3-ft. between rows for water run off.
4) Storing bales under trees along a fencerow prevents sun drying, increasing spoilage.

Farm ponds can still be treated to retard algae growth, until the water temps rise over 60 degrees. At that point, the algae decompose too rapidly, consuming the oxygen needed by the fish. More on this issue.

Going Out of Business Sale! Proceedings from the 2006 Crop Protection Technology Conference in Urbana are being sold for the $7 cost of mailing it and a shoulder bag. To obtain the proceedings and bag, call 800/321-1296. View an electronic version of what you are getting.

Stu Ellis

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