02.02.2015

Africa - Agro bodies partner to enhance grain trade

TANZANIAN-BASED Food Trade East and Southern Africa (ESA) project has partnered with Alliance for Commodity Trade in East and Southern Africa (ACTESA) and TechnoServe to improve trade in grains and staple foods in the region under programmes dubbed ‘seed harmonisation and soy value chain.’The US$2 million seed harmonisation project to be implemented in seven countries, which include Zambia, Burundi, Malawi, Kenya, Zimbabwe, Rwanda and Uganda, over a five-year period will assist ACTESA, a specialised agency of the Common Market for Eastern and Southern Africa (COMESA) to facilitate national adoption of seed trade regulations in the region.COMESA assistant secretary general Kipyego Cheluget said trade in agricultural produce remains the main activity in the region yet, the agriculture sector continues to be hampered by low productivity due to poor access to improved inputs.“To date, the volume of intra-regional trade has grown over five-fold to over US$20 billion a year [and] it is worth noting that the significant amount is in agricultural products and related value chains.“[However], agriculture is hampered by various challenges including low productivity and at market level, farmers are faced with shrinking margins and profitability owing to post-harvest losses,” Dr Cheluget said in a speech read for him by director investment promotion private sector development Thierry Mutombo at the launch on Friday evening.He said lack of quality and improved seed has significantly contributed to food insecurity and poverty in the region particularly, among small-scale farmers.Dr Cheluget said the projects will, therefore cushion the challenges faced farmers and players in the staple foods market.On the other hand, TechonoServe will also strengthen the soy value chain in the region.“It is hoped that the soy value chain initiative will help in enhancing the supply and demand for data on soy beans stock levels for price discovery in Zambia, Zimbabwe and Tanzania, as a means to improve market linkages between soy beans market actors and to strengthen the capacity of market players to access and use export information,” he said.At the same occasion, ACTESA seed expert John Mukuka said the seed harmonisation project will target among other seeds, maize, wheat, sorghum, millet, beans and soy beans.Source - https://www.daily-mail.co.zm

30.01.2015

India - ‘New’ disease has Indian shrimp farmers mulling return to black tiger

India's production of vannamei shrimp is likely to drop in 2015, as farmers face disease issues and consider a shift to producing black tiger instead, said the head of a farming association.'Running mortality syndrome', or RMS, is a problem currently faced by producers across Tamil Nadu and Andhra Pradesh – regions which represent 20% and 60% of the country's shrimp production respectively, said Durai Balasubramanian, secretary of the Pattukottai Shrimp Farmers Association (with 4,000 members).As a result, farmers are considering a reverse in the trend which has seen Indian shrimp production rocket in 2014 – the switch from black tiger to vannamei farming.“There is no cure for running mortality syndrome at the moment, but lots of consultants suggested to go for better farm management practices,” said Balasubramanian.“P. monodon [black tiger shrimp] can only be produced under low stocking densities, so production will definitely come down.”RMS has caused pond biomass to fall substantially for many farmers – mortality rates reaching 70% in most cases, according to a report by Mastan Vali, senior scientist with India's MAAARC [Matrix-ANU Advanced Aquaculture Research Centre].Since October 2014, Tamil Nadu at least has struggled with whitespot syndrome as well, and stocking of ponds has been delayed. Production costs for vannamei have risen, while selling prices have dipped of late, spurring a reconsideration of which product is in farmers' interests, said Balasubramanian.“In the current scenario, monodon is valued highly, it will help farmers to fetch high prices. Plus the amount of investment for monodon is lower than vannamei,” he said.Sources from outside India have heard conflicting reports on the seriousness of the disease, with some confirming it seems to be bad, while others played down the impact.One shrimp trader in Asia confirmed farmers in India seem to be mulling the switch back to black tiger, though not necessarily for disease reasons.“Due to cool weather shrimp growth has been stunted, therefore many farmers have harvested their ponds earlier. Vannamei has not been so successful in this area [Tamil Nadu] this year, so some farmers are considering switching to black tiger.”A second source, a buyer in the US, was unsure the information coming out of India was entirely correct. He agreed to hearing reports of disease across Tamil Nadu and Andhra Pradesh, and agreed disease has been lowering survival rates and slowing growth, but believes the farmers will not see better margins from a switch.“Input costs [to farm vannamei] are actually slightly lower nowadays, but can go up due to diseases; slow growth, survival rates etc.,” he said.Rabobank's prediction for farmed shrimp in 2015 was on the money, believes Balasubramanian.“Prices will be roller coaster; if the prices move up farmers might come back to vannamei, or if prices stay at these levels India might go for less production compared to 2014,” he said.“In future - March or April – if any new stocking is hit by viral outbreaks, then the situation will be worse, putting total production for the year down at least 30% from 2014.”“As Rabobank mentioned, India is still vulnerable in terms of production.”Rocket growth rate to slowIndia's shrimp production "took off like gangbusters" last year, according to one of the panelists at the National Fisheries Institute's Global Seafood Market Conference."The most astonishing thing -- I think we all agree -- is the amazing growth of Indian shrimp," another panelist told conference-goers during the National Fisheries Institute's Global Seafood Market Conference shrimp panel on Tuesday.Production in India increased about 25%, to about 800 million pounds, during the 2014-15 production cycle, data from the Marine Products Export Development Authority (MPEDA) shows.Yet finally such runaway growth is expected to subside in the 2015-16 production cycle, with the growth rate being much lower "in the near future", according to a slide presented during the panel's discussion.“There are a lot of farmers that had started farming the past few years. We won’t see that continue this year,” one of the panelists said.Source - http://www.undercurrentnews.com

30.01.2015

Australia - Rainfall not yet a reason to declare 'doom and gloom' on mango harvest

South east Queensland is on track to produce around 300 000 trays of mangoes despite recent rainfall, and Australia’s total mango production will still be close to 8 million trays, say industry experts. Experienced mango growers are dealing with an unusually wet week in Queensland, with rainfall as high as 30 mills in a day, and some more rain forecast, but there is not any reason to hit panic buttons yet, according to Boyd Arthur, Supply Development Manager for the Australian Mango Industry Association (AMIA).Growers and producers will not know exactly what impact heavier rainfall in central Queensland will have on the current harvest, or the industry, before the end of the growing season in late March or early April. “We need to let the fruit dry out before we can harvest again. We’re not going to get a good indicator until the season ends,” adds Mr Arthur. “Rain does throw a spanner in the works. After picking we pack and regardless of the impact of picking the fruit will still get graded. They (growers) will still try and find a home for it.”After picking we pack fruit according to the industry standard grading specifications rain, hail or shine. If the fruit is affected by rain damage then it's graded out. Mangoes that don't meet the quality standards for consumer shelves often end up at juicing/processing facilities.The profitability of harvest also depends on market movements/ consumer demand at any given time, and that can change on a weekly basis, no matter whether the fruit is graded as premium, second or bulk (third class), according to Mr Arthur. Excessive rainfall can also dilute the effects of fungicides applied to the fruit, and that is another concern growers always take into consideration as they harvest.Daily rainfall of more than 10-20 mills, or downpours of a couple of hundred mills can leave mangoes too wet to harvest and slow the harvest process, according to Mr Arthur. The fruit must be allowed to dry before being picked otherwise it develops skin blemishes or spots, and cannot be graded as premium. Despite having to accommodate rain “Queensland growers especially really do produce amazing quality fruit,” he says.Source - http://www.freshplaza.com

30.01.2015

Africa - Food prices at mercy of rain

UNLESS rain falls soon a drought in parts of South Africa could hit the sugar and maize crops as well as cattle farms, which in turn could have a negative impact on food prices.Farmers are casting their eyes at the sky in hope of rain in the next two weeks that would avert a drought that could have devastating impact on the economy.So far, maize farmers in western-northern Free-State and some parts of North West province have reported signs of below average rainfall for the 2015/16 planting season.The price of white maize on the JSE rose R65 a ton yesterday to close at R2 044 a ton.KwaZulu-Natal produces a large portion of South Africa’s sugar cane crop and has been the hardest hit. In response to this, the national Department of Water and Sanitation has pledged more than R350 million in emergency relief to KwaZulu-Natal.Sugar-producing companies in the province, Tongaat Hulett and Illovo, have either shut-down some of their mills or have postponed mill start-up dates. As a result of the drought, Illovo has decided not to open its Umzimkhulu mill in the 2015 sugar milling season and diverted all cane meant for this mill to the Sezala mill.Michelle Jean-Louis, a Tongaat Hullet spokesperson, said yesterday that the rainfall in the province’s cane catchment areas for the past year had been below average, consequently impacting the sugar cane yields for the forthcoming season.“At this time, it has been agreed that the start-up date for the Darnall mill, which has been most impacted by poor rainfall, will be delayed from April to July or August this year.”Jean-Louis said employees from the mill were temporarily assigned to other mills until normal operations resumed.MaizeJannie de Villiers, the chief executive at Grain SA, said he had noted with concern the impact drought has had in KwaZulu-Natal, but the province only produces about 4 percent of the country’s maize crop on average.“The big worry for South Africa is the north-western Free State which was also experiencing some dry season.”About 90 percent of the maize in the country is produced between Mpumalanga, Free State and North West.Johan van der Berg, a manager in specialised crop insurance at Santam Agriculture, said the rain pattern was different from other seasons.“In this season most of January had a below average rainfall and the extreme high temperatures in some areas also added to the dry weather.”He said the most affected areas at this stage were the north-western Free-State and some of the eastern parts of North West and some parts of Mpumalanga.“These are heartlands of the food production areas in the country.”Van der Berg also warned that if there was not sufficient rain this week, “then there can be some serious situation in terms of the summer crop”.KwaZulu-Natal produces only 15 percent of the country’s red meat. Red Meat Producers’ Organisation chief executive Gerhard Schutte said the red meat industry was very dependent on natural resources.Source - http://www.iol.co.za

30.01.2015

World - Millions of poor farmers to benefit from new type of insurance - study

Governments from Mongolia to Nigeria are creating new forms of insurance to protect the developing world's small farmers, who are suffering especially badly from extreme weather events made worse by global warming, a new study said.Obstacles like poor infrastructure and lack of financing have been partly overcome in several countries, and insurance is now available to millions of small farmers, said the study released on Wednesday by Columbia University and the research group Climate Change, Agriculture and Food Security (CCAFS).More farmers are able to obtain coverage than before due to a switch to index insurance from traditional indemnity insurance, where the size of payouts is based on specific losses faced by a client.The new index model allows farmers to buy insurance so they receive a payout if the amount of rainfall in a given period increases or decreases beyond acceptable levels, or if average crop yields in a certain region drop below an acceptable level.It was not viable for traditional insurers to assess and cover many small farms with low margins, as it was not worthwhile to investigate claims, the study said."This shift could change the lives of millions of smallholder farmers across the globe, who face increasingly erratic weather due to a changing climate," Dan Osgood, a Columbia University professor who co-authored the study, said in a statement.Mongolia, for example, has adopted an index insurance system for livestock, linking more than 15,000 nomadic herders to commercial insurance and a government disaster safety net.In India, where more than half the population is employed in agriculture, rainfall variations account for more than 50 percent of the fluctuations in crop yields, the study said.Weather-based insurance, currently used by more than 12 million farmers, offers a crucial cushion to protect them against financial collapse due to crop failure.In Nigeria, more than 6 million farmers will be benefiting from one crop insurance plan by the end of this year, said senior agricultural ministry official Débísí Àràbà.The scheme allows farmers to buy insurance for the equivalent of $2.50 and offers a payout of up to $100 if their crops are destroyed by fires, floods or other disasters.Government officials need to physically assess damage to crops in order for farmers to receive a payout under the current plan, he said, but the state is trying to move that process onto the internet."We want to improve the technology so farmers can take a picture of their (damaged) crops and send it in," Àràbà told the Thomson Reuters Foundation."We want to reduce the overhead costs of transactions and create greater private sector involvement… so farmers have access to the widest possible sweep of insurance products."Source - http://www.firstpost.com

30.01.2015

USA - Rainfall brings some relief for local winegrapes

In the third year in the drought, many grape growers, said Jason Haas of Tablas Creek, were struggling at the end of the growing season in the fall of 2014. He added however, it really depends on where the vineyard is located because some areas are more dry than others. The rain at the end of December, however, offered some relief for grape growers, Haas said. Though they’re not out of the woods.“It is essentially everything we were hoping,” Haas said.He said that the vineyards in the 2012 harvest did not act as they were low in water. But the 2013 and 2014 yields were 10 percent below the normal average of the last 10 years. For Tablas Creek that’s a loss of about 2,500 cases.“It has had an impact,” Haas said, adding that in talking to other winemakers, many others have been hit with lower yields because of the drought.However, he said that the quality has not been impacted.For the 2015 harvest, he said it’s unknown how it will be affected. “It’s still very early in the growing season,” Haas said.The rains so far for the rainfall season, which is July 1 to June 30, are a good sign. “I think of it as being a down payment for a good harvest,” Haas said. “Knowing that we’ve banked this much water, at least it’s not going to be catastrophic.”Where Tablas Creek is located, northwest of Paso Robles, closer to the ocean than lot of the other vineyards, Haas said he’s hoping for 30 to 40 inches of rain this rain season. Last year, he got about 10 to 11 inches of rain. According to the Paso Robles Wine Country Alliance, the city of Paso Robles gets an average of 15.5 inches a year with as little as eight inches on the eastern portions of the Paso Robles AVA and as much as 45 inches on the far western edges where Tablas Creek is located. Though the area got a high amount of rain in December since the drought began, January is typically the wettest month.While two-thirds of his vineyard could be supplemented with irrigated water, one-third of it is dry farmed, and does not get any water unless it falls from the sky.“We’ve trained the vines not to need [supplemental water] in a normal year,” Haas said, adding his vineyard can go about one year without water. In 2012, he said he gave his vines a drink and two drinks last year.“The way that this rain has come is absolutely perfect,” Haas said. “The way that this is coming is one inch at a time. It’s not just how much rain you get, but how you get it.”Brief rainfall this week yields almost a quarter-inchA short rainfall Tuesday night and Wednesday morning yielded .24 inches of rain, according to the records kept by the city of Paso Robles.That brings the total for the rainfall season to 6.83 inches, which already exceeds last season’s total of 6.13 inches. The 2012-13 season yielded 7.18 inches. The current rainfall season runs through the end of June.Source - http://pasoroblesdailynews.com

29.01.2015

Spain - Bad weather affects veggie production

The bad weather in Spain consisting of hail and frost has affected vegetable production. On top of vegetation slowing down due to the wave of cold weather at the end of December, the Almeria area has been affected by heavy rain over the last few days which resulted in blocked roads and there was also damage caused by hailstorms.Sixty or so hectares of greenhouses were destroyed in San Agustín (Ejido). Loss caused by the weather, notably the decrease in temperatures, is remarked in full field productions, notably artichokes (15% in Murcia and 20% loss in the Guadalentin valley) of which some will be destined for processing. There is loss, though at a lesser extent, for salads and broccoli. Supply has clearly slowed down and production calendars are slightly behind.Source - http://www.freshplaza.com

29.01.2015

Singapore - Extra steps to reduce effects of dry spell

With the early onset of the dry phase of the Northeast Monsoon, workers at farms and nurseries are taking steps to ensure the quality of their products is not affected.Chinese New Year is less than a month away and workers at some nurseries have been installing sun shades to ensure imported festive plants and flowers do not dry up.Some nurseries told Channel NewsAsia the prices of such plants will not change as they have been negotiated with suppliers prior to the onset of the dry season.At vegetable farms, leaves of products such as butterhead lettuce have started turning yellow because of the weather change.One hydroponic farm is sending nutrient-enriched water to the roots of vegetables, every 20 minutes instead of 30. In addition, the farm has had to lower the temperature of the nutrient-enriched water as even moderately warm solutions can affect the growth of plants.Source - http://www.freshplaza.com

29.01.2015

Canada - Sask government announces funding for crop and livestock research

The Saskatchewan government announced recently that it was contributing almost $11 million to go toward crop research as well as livestock and forage research. Saskatchewan Agriculture Minister, Lyle Stewart, said that research is important to remain a major player in the agriculture sector.Industry partner organizations contributed $4.6 million in funding to be distributed to the projects including, for both crop and livestock research, Saskatchewan Wheat Development Commission, Saskatchewan Pulse Growers, SaskMilk, and Sask Pork.“The main contributor to increased yields and better production of livestock and so on is research. Whether that be research varieties in forage lines and equipment and all of those things. Research is what increases productivity,” Stewart says. “It’s very important our producers have a leg up. We are in a very competitive market … and we have to be able to produce as efficiently as anyone else. Research is a contributing factor.”$3.8 million is designated for livestock and forage research, while $6.9 million is going to crop research. The numbers are about average for what the Saskatchewan government designates for research every year.The projects to receive funding were chosen by the Agriculture Development Fund (ADF). The ADF has certain parameters such as market demands, consumer preferences and more.“They have a number of different outcomes they aim to achieve,” Stewart said.The ADF looked at 189 letters of intent total sent by individuals and groups looking for funding. From those, 103 were asked to submit full proposals and of those, 42 projects were accepted for crop research and 30 projects were accepted for livestock and forage research.“It’s quite a process for the board. They do a lot of work on this,” Stewart said.Research takes time, so Stewart said not to expect any tangible results for at least a few years.On the crop side, some projects receiving funding include studies to improve lentil varieties, enhance wheat midge resistance in wheat, decrease oil losses from canola dehulling, and reduce the risk of pathogen contamination on fresh fruits and vegetables.On the livestock and forage side, projects include improving cow and calf performance through diet, developing new forage lines to extend the spring grazing season and investigate options for recycling baler twine and net wrap, and controlling Porcine Epidemic Diarrhea (PED).Organizations that submitted proposals include the University of Saskatchewan, the Agri-Food Council, the National Research Council, the University of Regina, and the Western College of Veterinary Medicine.The effects of contributing to research can be clearly seen: 2013 saw the biggest crop on record “by far” and 2014 had the second largest crop on record.“Research really gives us a leg up,” Stewart said. “I hope it will allow our producers to continue to be competitive in the world and allow them to produce more and better and resist disease issues … produce better forage for livestock, better farming practices, varieties, input on the crop side, just generally make us all better.”Source - http://www.humboldtjournal.ca

29.01.2015

Georgia - Double Crop Baleage An “Economical Gem”

Growing winter annuals on cropland for baling can provide a sustainable forage source, improving soil and saving several thousands of dollars, farmers in the southern US are hearing.Following row crops with wheat, rye or rye grass cover crops can be worth $263 per acre, a three year study at the University of Georgia (UG) has found.And through baling the resultant forage, a “complete diet” can be provided, while soil organic matter is improved by reducing moisture and nutrient loss.Trialled on farms across Wayne County, “Double crop baleage” has been a major benefit to mixed cattle and crop operations in the state.However, the economic advantage of double cropping is hugely dependent on the operation. “With a small number of cows, it’s hard to justify doing this,” said UG economist Curt Lacy. “If they have fewer cattle, they can look at buying baleage wrapped or having someone do it for them if they can’t buy the equipment.”But while the system works in America’s south, government advisors north of the border in Canada also recommend seeding crops like rye as an “excellent, cheap source of additional feed”.“Fall rye can be used as an excellent emergency forage crop, by seeding after early-fall harvested crops and making haylage, or by grazing in the spring,” advises the Ontario farm ministry.Care should be taken at cutting though. Fall rye has a narrow optimal harvest window, usually in mid-May for southern Ontario, working best after being sown as early as possible in September.A mere few days can have massive impact on quality, the ministry advises. Those wishing to sell bales to dairy or sheep farmers will struggle to obtain sufficient neutral detergent fibre after the early-boot stage.Other options include grazing fall rye, which is often best done through strip grazing to prevent the plant becoming too mature.Ontario producers are advised to glyphosate rye to minimise competition for moisture on the resultant crop. Subsequent crops are best suited if they are late-planted, such as soybeans, edible beans, sorghum or other warm-season annuals.Source - http://www.thecattlesite.com

28.01.2015

Majorca - Potato growers fear bad harvest

The potato growers in Majorca are concerned about the yields. The low temperatures announced by the meteorological service AEMER, which may drop below zero, could damage the potatoes.The mild winter so far in Majorca has positively influenced the growth of the potatoes. But ground frost could damage the growth of the plants. This is why the growers have started to turn on the watering systems again. This should cause an ice layer to form on the plant leaves protecting them from frost.Source - http://www.freshplaza.com

28.01.2015

Argentina - Over 1,000 hectares damaged by hail

Argentina's Fruit Growing Secretary, Alberto Diomedi, met with fruit growers affected by a hailstorm last week in the town of Campo Grande and surrounding areas."The damage is significant; there are over 1,000 hectares affected," said the official after conducting an inspection of the farms and meeting with their owners.During the meeting and inspection of the plantations, also attended by Undersecretary, Osvaldo Preiss, and technicians from INTA Alto Valle, Diomedi told producers that the necessary affidavits would be available shortly, so that those affected can report the losses as quickly as possible."The procedure can be done within the next ten days," said the secretary, and clarified that "the idea is to finish quickly with the damage reports so as to be able to process the climate emergency contingency, both provincial and national, in a timely manner."Diomedi also stated that the governor, Alberto Weretilneck, "was informed of the situation, and he himself asked us to visit those affected and do everything within our power to assist them."Source - http://www.freshplaza.com

28.01.2015

Peru - 500 hectares of banana crops destroyed and 1,300 affected

About 500 hectares of banana plantations, of which 1,800 are in the valley of Zarumilla, in the Tumbes, were affected by strong winds last week.A thousand producers have been seriously affected due to the great number of banana plants that have been uprooted by the wind, while many of those which managed to withstand the storm have been weakened and are expected to fall in the coming days.Growers do not have enough money to face the losses and start with the replanting process, which takes six to eight months to bring results. In this regard, the Regional Directorate of Agriculture reported that the damages are currently being assessed and that a plan to help the growers affected could be launched.Source - http://www.freshplaza.com

28.01.2015

India - States can have own crop income insurance schemes

States will get support to come out with their own respective farm income-based crop insurance schemes under the yet to be launched National Crop Income Insurance Scheme (NCIIS) of the central government.The agriculture ministry on Tuesday took this decision, keeping in view ground realities of different states. The move will help the states to factor in local climatic conditions, topography and soil types which determine productivity and farm income."We have decided to allow state governments to come up with their own schemes depending upon their needs and local climatic conditions. In that case, the new NCIIS would not be taken up by those states. Such states will, however, implement their own schemes with financial support from the Centre," said Union agriculture minister Radha Mohan Singh.The decision was taken after some states like Haryana, Uttarakhand, Nagaland and Tamil Nadu expressed the need to have separate crop income insurance for different states during a consultation meeting with Singh and top officials of the ministry on the draft NCIIS. The new proposed scheme aims to protect farmers against both yield loss and income loss.Tamil Nadu, in fact, opposed the Centre's proposed NCIIS, saying it will not benefit farmers in vulnerable and disaster-prone areas.Admitting to states' concerns, Singh said the states' suggestion made sense and that's why the ministry took the decision, allowing the states to come out with their own schemes."The government would come out with the details of the national scheme within the remaining two months of this financial year. Pilot projects of the new scheme would subsequently be launched in the new fiscal", said the agriculture minister.He said the ministry would set up a committee in the next couple of days to vet other suggestions made by states and stakeholders. Their suggestion would be incorporated in the new national scheme, he added.Source - http://timesofindia.indiatimes.com

28.01.2015

USA - K-State explains crop insurance programs

Farmers have until the end of March to select one of three crop insurance plans. K-State Research and Extension had a meeting Wednesday afternoon to explain how these program will work, as well as factors farmers should consider when picking a program. Art Barnaby, crop insurance expert, explained how each program will work. The first program is called Price Loss Coverage, or PLC. This plan will help farmers if commodity prices drop. The second and third programs are called Area Revenue Coverage, or ARC, at the county level and individual level. This plan will help farmers if they experience low yields. Both programs use five-year national average prices for various crops to determine how much money farmers receive. This is based on USDA surveys of major crop buyers. Barnaby said the first thing farmers should do is update their payment yields on their base acres. This represents the average yield per acre and must be done by the end of February. This cannot be changed again until the current Farm Bill expires in five years. “I encourage everyone to update, even if you’re going into a program that won’t use it, because it goes with the farmland and will make land more valuable,” Barnaby said. Farmers also can reallocate their base acreage. This number represents how much land, on average, a farmer has dedicated to a particular crop during the last five years. It doesn’t necessarily represent how much land has been dedicated to a certain crop in any particular year. Farmers don’t have to plant crops in the proportions listed as their base acreage. This reallocation also must be done by the end of February. The base acreage numbers will be used to determine how much insurance programs pay. Under PLC, a farmer receives payment if the average commodity price for a given marketing year falls below the five-year average. The farmer is paid 85 percent of the difference in the two prices, multiplied by the farmer’s payment yield and base acreage for that particular crop. For example, if the actual price for corn is 10 cents lower than the five-year average, and a farmer has 550 acres of corn listed in his base acreage with a payment yield of 170 bushels per acre, he or she would be paid $7,947.50. If the actual price for a commodity in a given marketing year is equal to or higher than the five-year average, no payment is received. Under ARC, a farmer receives payment if the crop yield is low. A benchmark revenue is determined by multiplying the average yield per acre by the average commodity price for the last five years at the county level or individual level. Farmers will not be paid more than 10 percent of this amount per acre.Source - http://www.mcphersonsentinel.com

28.01.2015

Brazil - Rain crucial to protect soybean harvest prospects

Brazil faces a crucial fortnight for weather for its dryness-pressed soybean fields, already seeing some "irreversible yield damage" – although with the lack of rainfall speeding early harvesting.Soybeans in Brazil, the second-ranked producer of the oilseed after the US, have "come under increasing stress" in the past two weeks, as rains forecast for moisture-deprived crops failed to materialise, Oil World said.The lack of water has prompted "irreversible yield damage in those fields where soybeans have been in the phase of pod-setting", the analysis group said."Significant crop losses have reportedly already occurred in Goias and to some extent also in parts of Minas Gerais, Bahia and Mato Grosso do Sul."'Urgently-required rains'If "urgently-required" rains do not arrive "in the next 1-2 weeks, losses will become much greater," Oil World said, restating an estimate that Brazil's soybean harvest could come in as low as 89m tonnes, although still with the potential for reaching 93m tonnes."The wide range is a reflection of the still relatively big uncertainty," the German-based group said.It is thanks to a rise of some 1.5m-1.6m hectares in area that Brazil's soybean production will beat last year's 86.1m tonnes.Crop downgradesThe comments come as many commentators are cutting expectations for Brazil's soybean crop, with consultancy AgRural on Monday saying it was planning to downgrade its forecast from a current 95m tonnes.Last week, Agroconsult reduced its estimate by 900,000 tonnes to 93.9m tonnes, while Aprosoja, the soybean growers' association in Mato Grosso, Brazil's top soybean growing state, pegged the crop at 90m-91m tonnes.The less upbeat expectations reflect dryness which, according to meteorologists at Somar, has seen parts of Mato Grosso receive less than half normal rains this month, although precipitation in more southerly parts of the country has exceeded expectations.The lack of rain, which is affecting Brazil's hydroelectric power programme besides threatening crops, has reportedly prompted some authorities in the state of Minas Gerais to cancel carnival festivities."At the moment an estimated 47m people, almost one quarter of the Brazilian population, are affected by some kind of electricity or water rationing measures," Oil World said.Early loadingThe dryness has, however, allowed a speedy start to soybean harvesting, and already seen the first cargo starting to be loaded up with new-crop supplies.An order of 61,700 tonnes of soybeans is being loaded at the port of Paranagua on to the Tian Song Feng for shipment to Thailand."The loading started last Friday and it is actually occurring a few days earlier than last year due to a more accelerated harvest pace especially in the state of Mato Grosso," influential crop analyst Michael Cordonnier said.He added that "by the end of January the port is expecting 27 vessels in the line-up for 1m tonnes of grain including soybeans, corn, soybean meal, and wheat".Order cancellationThe switch of importers' demand from the US to South American suppliers, now that harvest there is ramping up, is a key concern for Chicago investors.The US Department of Agriculture announced on Tuesday that Chinese buyers had cancelled orders of US soybeans totalling 120,000 tonnes, although unveiling a fresh order too of 111,000 tonnes to an "unknown" importer.Chicago soybeans for March stood 0.8% lower at $9.75 Ѕ a bushel in morning deals.Source - http://www.agrimoney.com