Greetings everyone! Listed below are a couple of articles from Dr. Ron Heiniger, Professor of Crop Science and Cropping Systems Specialist, NCSU and Dan Weathington with the NC Small Grain Growers Association expressing their views on why growers should plant wheat this year. Also included is important news from FSA you should know about. I hope you find this informative.
Sincerely,
Rick Morris
Harvey’s Agronomist
Why Growers Need to Plant WHEAT This Fall!!
All of us are disappointed in commodity prices right now. Corn, Wheat, and sorghum are all trading at prices that are below the cost of production. As a result many growers are thinking of not planting wheat this fall and focusing on full season soybean in 2015. THIS IS A MISTAKE! Let me tell you why.
1. Missed Opportunities – Despite the poor market outlook today the facts are that of all the major commodities including soybean, wheat has the most upside potential. Last year we saw this same weakness in the wheat market only to see it rally up to harvest. Given the fact that poultry and hog producers will be expanding production, given the record profits they are seeing and increasing interest in the wheat export picture there is a good chance we will see a similar rally in 2015. AND if weather turns hot in May and June in the Midwest and starts impacting corn production that rally could continue into late summer. We know corn acres are going to be lower so any improvement in feed demand or demand for wheat products will result in an increase in wheat prices. If growers don’t plant wheat this fall they will MISS this potential opportunity and end up making a choice between planting soybean at falling prices or corn which is already below the cost of production.
2. Higher Yield and Reduced Risk – When commodity prices are low you want to plant a crop that has consistent yield potential because better yield can cover poor prices. North Carolina wheat growers have had three years of good to great wheat yields despite the fact that they have experiences everything from a warm, dry winter in 2011-12 to a cold, wet year this past season. We can grow high yielding wheat consistently as long as we treat wheat with the respect it deserves and manage it properly. This winter season has a high probability of a warm fall, cold winter, and a moist, warm spring. Ideal for wheat production.
3. Manage to Increase Yield and Keep Costs Low – When growing a crop in a tight market the key is to do it right – right from the beginning. You can’t afford to do “rescue” treatments this season. So start right (your best yield is made the day you plant the seed) and then support that crop with good management at jointing and flowering. Three things to focus on 1) Plant the best seed you can find in the best condition you can put it in. Don’t skimp on seed. Plant only the highest yielding variety, invest in good seed treatments, and plant it at the best seeding rate under the best conditions. This is not the year for average seed or low germinating seed from the bin. Get the best certified seed you can find for your conditions. 2) Get all the growth you can in the fall. The better the wheat grows in the fall the better your yield potential is. Good fertility, good soil conditions, good ryegrass control, good insect control. All this needs to be accomplished to achieve good fall growth. 3) When jointing comes around next spring be ready to support your yield potential with the proper level of nutrients – particularly N. If you have a good wheat crop growing don’t drop the ball and cut the rate on N. Use a tissue test and make sure you have the nutrients you need to keep wheat green and growing from jointing to flag leaf.
These are the reasons you want to grow wheat this year. Follow these simple steps and next June your pocketbook will thank you.
Dr. Ron Heiniger,
Professor of Crop Science and Cropping Systems SpecialistWhy Plant Wheat?
There is a great deal of discussion in the past few days about planting wheat with low commodity prices. I wanted to take this opportunity to share some thoughts I have based on our experiences from the past:
• Wheat is an excellent crop in your rotation with corn, soybeans, and grain sorghum. Tests have shown that beans behind beans will increase your nematodes levels. Rotation has worked so let’s continue what has worked for us in the past.
• Wheat crop is harvested at a time in which the income helps pay bills in other crops….first cash in the crop year.
• For most crops normally in a five year cycle there are two good crops (depending on price and yield), one bad year and the other two years come somewhere in the middle with yield. We have had four good years with high prices and good yields. When you look at the total Wheat acres planted for the last ten years in our state six of the ten years we have planted 700,000 acres.
• In an effort to save money some farmers will not plant certified seed in years such as the one we are facing. You can start off with poor stands and weak plants but it will cost you at harvest time.
North Carolina is a thriving agriculture state….78 Billion plus dollars in AG business because we don’t put all our dependence on one crop, the crops that have supported you in the past will continue to do so in the future when you manage each crop to its highest potential.
Dan Weathington,
NCSGGA Executive Director
Safety Reminder
Recently we had another grain related accident in Beaufort County with a 5 year old child losing his life because he was playing on a small trailer loaded with wheat. Our thoughts and prayers are with this family. Please make every effort to remind your family and employees to think safety first at work and at play.
-NC Small Grain Growers Association
USDA made some key date announcements yesterday pertaining to ARC/PLC/SCO sign up. I wanted to clarify a few things. When you go sign up in the coming months, you are signing up for both 2014 and 2015 crop years. Even though the 2014 crop year has been completed for wheat, it is a retroactive signup for 2014. You will sign two contracts when you go sign up, one for 2014 and one for 2015 and 2014 crop losses will start to be paid in October 2015 and 2015 crop year losses will be paid out in October 2016.
For winter wheat growers, they don’t actually have to sign up for ARC/PLC by the Nov/Dec 15th dates, they just have until that time to decide if they want to opt out of SCO (if they selected it before Sept. 30th). It is based on “intent’ to sign up for ARC, not actually physically signing up for ARC. Also, if a winter wheat grower takes the opt out there isn’t anything to require them to take ARC. If they miss the deadline of Nov/Dec 15th they are prohibited from choosing SCO but they will be required to pay part of the premium and won’t be able to collect the indemnity if one is owned.
There are a couple Q&A questions on the RMA’s website that clarifies all of this as well:
Q. What if I decide I want to enroll into the ARC program after I’ve selected SCO coverage for winter wheat?
A: Producers who enroll their winter wheat in SCO may elect to withdraw from SCO prior to their acreage reporting date without any penalty. This allows producers additional time to make an informed decision related to whether to enroll in the Agricultural Risk Coverage (ARC) or the Price Loss Coverage (PLC) program. If they choose ARC, they will not be charged a crop insurance premium so long as they withdraw from SCO prior to their acreage reporting date.
Q. Is the one time opt-out of the SCO Endorsement for fall planted wheat (winter wheat) only available if the producer elects ARC?
A: The one-time opt-out can be used whether or not the producer actually elects ARC. The one time opt-out for fall planted wheat is intended for producers who elect or intend to elect ARC. However, the ARC/PLC election will most likely be made after the earlier of the acreage reporting date or December 15, 2014. Therefore, due to farm program timing, there will be no sanction or penalties for producers using this opt-out regardless of whether they elect ARC, PLC, or no FSA farm program at all.
-USDA Farm Service Agency Announces Key Dates for New 2014 Farm Bill Safety Net Programs
Sept. 29, 2014 to Feb. 27, 2015
Landowners make base reallocation/yield updates
Nov. 17, 2014 to March 31, 2015
Producers make election between ARC/PLC
Mid-April through Summer 2015
Producers sign contracts for 2014 and 2015 crop yearsOctober 2015
Payments for 2014 crop year, if needed