Afternoon AgriBusiness (7/5/2012)

The chairman of the House Agriculture Committee, Frank Lucas from Oklahoma, plans to issue his farm bill proposal late this week. It`s widely expected most of the proposed farm bill differences from the senate-passed bill will come in the commodity and nutrition titles.

Southern cotton and rice producers want more revenue insurance and target price options which do not exist in the senate bill.

 If the politics don`t line up and the house bill doesn`t get done before the current bill expires, a short-term extension will cost eight or nine billion in lost funding for some 37 energy and conservation programs set to expire October first.

 Iowa weather can’t get much hotter than this. We’re now into the hottest month and we’re behind on soil moisture across most of the state.

 Very little corn looks good; the entire state is tasseling in afternoon temperatures at or above one hundred degrees. Many are comparing the corn belt drought to 1988. The worst of that drought is in Indiana, with cooler temperatures to the north and west. Only Minnesota is not in drought conditions right now.  Everyone is hoping there is some reprieve from the hot and dry conditions.

State Climatologist Harry Hillaker says, “Bad news is rainfall still doesn’t look to be very plentiful anytime soon.  I expect it to be a little better this coming week with that change toward cooler weather, but it still looks to be kept of north of us as far as substantial rain where they really don’t need it at this point.”

“It’s pretty rare in iowa,” says Hillaker, “to have all three summer months be unusually warm.  We’ve already had June and July looks to be well on its way, in that regard.  But to get all three months unusually warm doesn’t happen real often.  It does occasionally.  1988 would have been the last time that occurred.”

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