ACRE meetings scheduled across Kentucky

ACRE meetings scheduled across Kentucky
By Katie Pratt
LEXINGTON , Ky., (May 10, 2010) – With the June 1 sign-up deadline fast approaching, University of Kentucky agricultural economists Cory Walters and Greg Halich will host meetings across the state to explain Average Crop Revenue Election (ACRE) and help producers determine whether it fits their operation.
ACRE is an optional risk protection program created by the 2008 Farm Bill and offered by the U.S. Department of Agriculture. Producers eligible for ACRE include those who grow corn, soybeans, wheat, sorghum, barley, rice, upland cotton, oats, peanuts, pulse crops and other oilseeds.
Unlike the traditional farm support programs that offer direct payments, counter-cyclical payments and marketing assistance loans if a price of a particular crop falls below a certain level, ACRE pays if crop revenue falls below a revenue guarantee. Revenue includes price and yields.
Those who enroll in ACRE forgo any counter-cyclical program payments, forfeit 20 percent of direct payments and have loan rates reduced by 30 percent.
Walters and Halich will discuss how the program works, the probability of payments, and its relationship to crop insurance at the following times and locations.
• 1 p.m. EDT May 17- Hardin County extension office
• 6:30 p.m. CDT May 17- Daviess County extension office
• May 18- during the UK Wheat Field Day at the UK Research and Education Center Farm in Princeton
• 7 p.m. CDT May 18- Union County extension office
• 8 a.m. CDT May 19- Sedalia Restaurant in Graves County
• 1 p.m. CDT May 19 – Christian County extension office
• 12 p.m. CDT May 20- Butler County extension office
• 7 p.m. EDT May 20- Marion County extension office
For more details on a specific meeting, contact the county’s agriculture and natural resources extension agent.
Contact: Cory Walters, 859-257-2996
Greg Halich, 859-257-8841

Herbicide Issues in Flood Damaged Corn Fields

Jim Martin and J. D. Green

The following are herbicide related issues involving flood damage corn fields:

1)    Previous Herbicides Applied May Affect What Crop to Plant:  The specific herbicide(s) used in the initial planting may determine what crop can be planted in flood damaged fields. See Corn & Soybean News April 2007, Vol 7 Issue 5 http://www.uky.edu/Ag/CornSoy/cornsoy7_5.htm#3

2)    Adding More Herbicide to Replant Corn: The need to add more herbicide will depend on specific field situations.  In some cases, where a previous soil-residual herbicide had been applied, relying on postemergence treatments following corn replanting may be the best option for weed control throughout the remainder of the season.  If additional soil-residual herbicide is desired the maximum amount that can be reapplied depends on the products used.  For example, if the previous amount of atrazine applied was 1.5 lb ai/A, then an additional amount of 1.0 lb ai/A can be applied up to a maximum total of 2.5 lb ai/A of atrazine per season.  For other herbicide active ingredients consult the label for maximum use rate guidelines. 

3)    Controlling Surviving Corn Plants to Replant: If there are surviving corn plants, it may be necessary to use a burndown herbicide program.  It will be more challenging to control surviving corn plants if the field is planted back to corn than if it is planted to soybeans.  For specific options for controlling corn prior to replanting back to corn see page 29 in the Corn Section of the Extension publication “Weed Control Recommendations for Kentucky Grain Crops 2010” AGR-6 http://www.ca.uky.edu/agc/pubs/agr/agr6/02.pdf 

There are several foliar-applied herbicides available to control corn in soybeans.  If corn plants have the Roundup Ready (glyphosate – tolerant) trait, consider such options as Asure II, Fusilade DX, Fusion, Poast,  Select and Select MAX. If corn plants do not have the glyhosate tolerant trait then glyphosate is an effective and economical option as a burndown treatment or as an “in crop” treatment in Roundup Ready soybean.

Estimating N Losses in Wet Soils

Greg Schwab and Lloyd Murdock

Wet soils cause nitrogen losses. In cases where high intensity rain results in high runoff, leaching losses will probably be low. The primary nitrogen loss mechanism in saturated soils is denitrification, which occurs when soil nitrate nitrogen (NO₃-N) is converted to nitrogen gas by soil bacteria. Two to three days of soil saturation is required for bacteria to begin the denitrification process.

Well-drained upland soils that have been wet from a series of rains probably have not experienced much denitrification. Soils in lower landscape positions that stay saturated longer will likely lose more N. Losses can be calculated by estimating 3 to 4 percent loss of fertilizer NO₃-N for each day of saturation. Use the Table below to determine how much fertilizer NO₃-N was in the soil.

EXAMPLE: Determining the Amount of N Loss
A farmer applied 175 lb nitrogen (N)/A as urea to corn grown on poorly drained soil. Three weeks after application the field became saturated for seven days. How much N was lost?

Step 1. Determine the amount of applied N that was in the nitrate (NO3‐N) form.
According to the table, 50% of the urea will be in the NO3‐N form three weeks after application. 175 lb N x 50% = 88 lb N.

Step 2. Determine the amount of N lost.
Remember that two days are needed for the bacteria to begin the denitrification process. Therefore, denitrification occurred for five days (seven days total saturation minus two days to start the process). With 4% lost each day for five days, 20% would have been lost. 88 lb N x 20% = 18 lb N lost and 157  lb N remaining. The N loss calculated in this example is not as high as most people would assume. A soil N test can verify this estimation.

Nitrogen Soil Test
An additional tool for determining NO₃‐N in the soil after flooding is a NO₃‐N test. The soil sample should be taken down to 12 inches deep, and several samples should be taken in each field of both the low and higher ground. The samples should be mixed well and a subsample sent for nitrate analysis.

If the nitrate‐N is less than 11 ppm, there is a low amount of plant‐available N in the soil. Therefore, there is a good chance corn will respond to a sidedress application of N ranging from 100 to 150 lbs N/acre.

If the nitrate‐N is between 11 and 25 ppm, there is a greater amount of plant‐available N in the soil, indicating corn may or may not respond to sidedress N. The recommended sidedress N application at this soil test level is 0 to 100 lbs N/acre. If the soil test nitrate‐N is close to 11 ppm, then higher sidedress N rates would be used. Lower rates would be used as nitrate‐N approaches 25 ppm. The test is least accurate in this range, so the test results can only be used as a broad guide.

If soil test nitrate‐N is greater than 25 ppm, there is adequate plant‐available N in the soil, which indicates corn will probably not respond to sidedress N application.

Nitrogen Broadcast Prior to Rain
Farmers sometimes broadcast fertilizer nitrogen on a field within 24 hours of a heavy rain. In most cases, very little nitrogen is lost to runoff, especially if the field was under no‐till soil management. The nitrogen fertilizer begins to dissolve almost immediately after being applied to the soil surface and will dissolve completely in a short period of time. As rain begins, the first water that falls moves into the soil, taking most of the fertilizer nitrogen with it. Once in the soil, most of the fertilizer nitrogen is protected from runoff. The only exception is a very intense rain soon after application that also erodes topsoil from sloping areas. Even in this situation, the loss would probably be less than one third of the fertilizer applied.

Flood Damage to Corn

The heavy rainfalls over the past weekend has many fields under water. According to the latest USDA Crop Progress & Condition report, about 80% of the corn crop in Kentucky is planted and almost 60% is emerged.

Two resources on assessing damaged corn include AGR-193: Assessing Flood Damage to Corn and AGR-195: Replanting Options for Corn.

The impact of flooding on corn depends on the depth of flooding, the soil temperature and the duration of flooding. When soil temperatures are 70 degrees F or higher, corn can withstand complete submersion for about 24 hours. Higher soil temperatures reduce that time. Corn that is not fully submerged can withstand longer periods of standing water. 

While you may want to walk through a field (or in some cases, take a boat through a field), assessment of corn can not occur until two or three days after the water has subsided. Plants will most likely look yellow, but if the growing point is white and turgid, the plants are alive. 

Nitrogen losses occur with submerged fields and they type of nitrogen and the duration of flooding affects how much N is lost. 

While losing corn and nitrogen are very frustrating, they don't compare to the loss of lives from this flooding. We hope that you and yours are staying safe. 

Grain Market Update

Over the past few weeks, new crop corn and soybean prices have shown some gains. December 2010 corn is trading in the $3.75 to $3.95 per bushel range and November 2010 soybeans are trading in the $9.20 to $9.60 per bushel range. Price movements have been a function of outside price pressure stemming from both the financial industry and energy market. Now that we are entering the growing season, market prices will begin to be a function of crop size.
Producers throughout the corn belt are making significant strides in planting this year’s corn crop. From the United States Department of Agriculture (USDA) Prospective Plantings report, corn producer’s plan on an additional 3% more acreage over last year. The National Agricultural Statistics Service (NASS) reports through the week of April 18th that 19 % of the corn crop has been planted. This is significantly higher than the previous week where only 3% of the corn crop had been planted. When compared to a year ago, only 5% had been planted. Producers are well ahead on corn planting and look to continue to make significant strides over the next few weeks.
The USDA will release their supply and use estimates for 2009/2010 on May 11th. This report will include the first projections of supply and use for the 2010/2011. For the current crop year, 2009/2010 corn ending stocks were increased 100 million bushels from March to April. This increase was driven by a 100 million bushel decrease in feed and residual. Corn ending stocks continue to slowly increase and are projected at 226 million bushels over 2008/2009 crop year.
On the soybean side, plantings have not yet started. The USDA planting intentions report indicates less than 1% more acreage than last year. Soybean supply and use estimates for 2009/2010 were not changed between the March and April report. Ending stocks are about 75% of their ten year average and have been increasing since 2008. However, foreign ending stocks were increased by a little over 4% from the March report.
For wheat, crop condition is rated at 69% good to excellent. This is well above last year at this time where 43% was rated at good to excellent. Fundamentally, wheat is very bearish due to the very large carry over ( around 950 million bushels, up 46% from last year) . This can be seen in the level of the carry offered in the CMEGroup wheat contract. A storage hedge from the July contract to the December would return $0.44 per bushel. Going from July to March of 2011 would return $0.71 per bushel. To determine net cost, one would take the benefit less interest on money, shrinkage, in-out costs, and any other costs associated with storage.
As we move through the planting season and into the growing season, expect prices to continue to be influenced by growing conditions and economic events. Price volatility makes it difficult to determine when one should be making sales. I recommend a pricing plan that includes, but is not limited to, knowing what your break-even price is, making harvest sales in small percentages when prices rise above the break-even, monitoring basis to take advantage of favorable moves, and leaving around 30% of expected production to be priced during the primary growing season, around July. (Cory Walters, email: cgwalters@uky.edu)

ACRE Program Could Pay Big for Kentucky Wheat Farmers in 2009

Contact: Cory Walters, 859-257-2996
Greg Halich, 859-257-8841


LEXINGTON , Ky., (April 7, 2010) – Kentucky wheat growers who signed up for the U. S. Department of Agriculture’s optional Average Crop Revenue Election Program , or ACRE, will likely see big payments this year, said Cory Walters and Greg Halich, agricultural economists in the University of Kentucky College of Agriculture.
“In Kentucky, a perfect storm hit the 2009 wheat crop,” Walters said. “State yields were below average, and the national average marketing price is significantly below the commodity guarantee. For both corn and soybeans, Kentucky yields were well above average and marketing year prices were not far from their respective program guarantees. Therefore, right now it looks like no payments for corn or soybeans will be made.”
The economists were able to estimate ACRE payments for this year by using USDA estimates of the state yield and marketing year average prices. Projected Kentucky ACRE payments are $95 per acre for wheat. These projected payments are estimates, and final payments will likely change based on final marketing year prices once the marketing year ends on Aug. 31.
ACRE is a risk protection program added under the 2008 Farm Bill. Unlike the traditional farm support programs that offer direct payments, counter-cyclical payments and marketing assistance loans if a price of a particular crop falls below a certain level, ACRE pays if crop revenue falls below a revenue guarantee. Revenue includes price and yields.
ACRE payments are determined by taking the state revenue guarantee and subtracting the product of state average yield and the national average marketing price. When this value is positive, a potential payment is available, but that doesn’t necessarily guarantee payment for every producer in the state. Individual growers must show that their 2009 farm revenue, which is their actual yield multiplied by the national average price, was less than their farm revenue benchmark, which is calculated by their yields from the past five years, minus highest and lowest yielding years, multiplied by the previous two years’ national average marketing prices plus crop insurance premium. Crop insurance payments do not count against ACRE.
Producers eligible for ACRE include those who grow corn, soybeans, wheat, sorghum, barley, rice, upland cotton, oats, peanuts, pulse crops and other oilseeds. Those who enroll in ACRE forgo any counter-cyclical program payments, forfeit 20 percent of direct payments and have loan rates reduced by 30 percent.
“On average, the 20 percent reduction in direct payments costs Kentucky producers $5 per base acre for corn, $2 per base acre for soybeans and $4 per base acre for wheat,” Halich said. “Also, producers using Commodity Credit Corporation loans will have to put up more bushels to get the same amount of money under ACRE, since loan rates are reduced by 30 percent.”
Since it is based on revenue, price protection with ACRE currently is significantly higher than that found in the counter-cyclical program. ACRE payments for 2009 would be triggered if corn falls below $3.72 a bushel, soybeans drop below $9.04 a bushel, and wheat falls below $5.97 a bushel by the end of the marketing year. In the counter-cyclical program, payments would occur if prices fall below $2.35 a bushel for corn, $5.36 for soybeans and $3.40 for wheat.
The implied ACRE floor price can only go up or down by 10 percent each year. So it would take five consecutive years of significantly reduced revenue, with each year worse than the previous year, for the ACRE price floor to reach the counter-cyclical level for corn, soybeans and wheat.
“Thus, the price protections for ACRE are clearly better then the counter-cyclical program, even in the worst-case scenario, for the next five years,” Halich said.
The deadline to enroll into the ACRE program for the 2010-2011 crop year is June 1. To help producers understand and decide if they should sign up for the ACRE program, Halich and Walters will conduct workshops in late April and May at various locations across the state. In addition to describing ACRE, they will also show how the program works in conjunction with crop insurance. For more information on ACRE or the upcoming workshops, contact the local office of the UK Cooperative Extension Service.

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Editor: Katie Pratt, 859-257-8774
UK College of Agriculture, through its land-grant mission, reaches across the commonwealth with teaching, research and extension to enhance the lives of Kentuckians.

Corn Seeding Rates

Choosing the proper population on corn will help you maximize yields and protect your bottom line. Our old recommendation was to plant a maximum of 30,000 seeds/acre on better soils. We will increase that recommendation to about 33,000 seeds/acre for better soils. But, as our own data shows, picking the ideal seeding rate can be a bit of challenge. Available water has a huge impact on the ideal seeding rate.

In 2008, a year that was very dry, the ideal population for corn was less than 20,000 seeds/acre, well below our current recommendations. Our yields barely reached 120 bu/acre and we felt really stupid about growing corn. In 2009, a year with timely rains, the ideal population for corn was at least 45,000 seeds/acre, well above our recommendations. Our yields rose above 300 bu/acre and we felt really smart. However, the only major difference between the two years was the amount and timeliness of rain. In both years, we used the same four hybrids, the same soil type and the same fertility. (If I told you that we got 300 bu/acre of corn with 160 lbs N/acre, no one would believe me. So, I'm not going to say it.) When you "average" the two years together, yield was maximized at about 35,000 seeds/acre. Both of these years were extremes and we rarely advise farmers to make decisions based on the extremes.

Even more evidence about the influence of water on seeding rate comes from a study we conducted in 2007 at the Woodford County Farm. The rainfed corn reached a maximum yield at about 30,000 seeds/acre where the irrigated corn reached maximum yields above 40,000 seeds/acre (Figure 2). The irrigated corn received water at rates that were probably too high for most traditional sprinkler irrigation units to deliver. Five years of research on a Maury silt loam suggests that maximum yields are reached at about 30,000 to 33,000 seeds/acre (data not shown).

So, if water is not limiting, then much higher seeding rates may be suitable. However, most years in Kentucky, water is our limiting yield factor. Our soils are relatively shallow and can hold just a few inches of water at a time. Almost every year, we go through a period of two to three weeks with no water and high temperatures during seed fill. It is this period that probably does more to limit yields than most other factors each year.

As we see more and more center pivots come into Kentucky, I think we need to do some more investigation in this area. Again, the center pivots will not irrigate as well as our small-plot system. But, these center pivots can help farmers avoid extremely dry weather. If farmers have an interest in running some strips as high as 40,000 seeds/acre, I would be interested in talking with them.

For the vast majority of acres without irrigation, a maximum seeding rate of 33,000 seeds/acre on better soils does a good job of avoiding the extremes.

Figure 1. Yield response of four hybrids on a Loradale silt loam soil, Lexington, KY.

Figure 2. Seeding rate study on a Maury silt loam, Woodford County, KY, 2007.