Poor pollination problems

Don’t blame the corn variety if this summer’s high heat resulted in poor pollination. Despite decades of hybridization and genetic manipulation, corn by nature thrives in warm days and cool nights. Those were the conditions in which corn developed as a tropical grass in the high elevation areas of central Mexico way back when.

Corn maximizes its growth rate at 86°F. Days and nights hotter than that stress out the plant, particularly during its pollination period, says Tom Hoegemeyer, University of Nebraska agronomist. And continual heat exposure before and during pollination worsens the response, which was the case this year.

True, the Midwest experienced high humidity along with higher temperatures this summer. And high humidity is beneficial, as it helps reduce a crop’s water demand. But high humidity also increases the thermal mass of the air and provides extra stored heat and insulation at night, Hoegemeyer explains.

Corn is a C4 photosynthesis plant, making it extremely efficient at capturing light and fixing carbon dioxide into sugars, Hoegemeyer notes. But a drawback of this ability is that with high daytime temperatures, the efficiency of photosynthesis decreases, so the corn plant makes less sugar to use or store.

High night temps increase the respiration rate of the plant, causing it to use up or to waste sugars for growth and development. This results in the plant making less sugar but using up more than it would during cooler temperatures.

Then, too, heat, combined with lack of water, has devastating effects on silking. If plants are slow to silk, the bulk of the pollen may already be shed and gone. Modern hybrids have vastly improved anthesis-silk interval (the time between midpollen shed and midsilk), Hoegemeyer says. “Regardless, in some dryland (nonirrigated) fields, we see seed set problems because of nick problems between pollen and silking.

“Even in some stressed areas within irrigated fields (like compacted areas where water isn’t absorbed), we can see stress-induced slow silking and resulting seed-set issues,” he says. “Historically, this has been the most important problem leading to yield reduction, particularly in stressful years. Once silks begin to desiccate, they lose their capacity for pollen tube growth and fertilization.”

Even with adequate moisture and timely silking, heat alone can desiccate silks so that they become nonreceptive to pollen. “While this is a bigger problem when humidity is low, it is apparent that it is happening this year, especially on hybrids that silk quite early relative to pollen shed,” Hoegemeyer says. “Even with dew points in the 70s, when temperatures reach the high 90s to the 100s, the heat can still desiccate silks and reduce silk fertility.”

Heat also affects pollen production and viability. Heat over 95°F. depresses pollen production. Continuous heat, over several days before and during pollen shed, results in only a fraction of normal pollen being formed, probably because of the reduced sugar available.

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Corn, soybean markets explode

Though slightly off their daily highs, the CME Group corn, soybean and wheat markets stay sharply higher Monday. Crop-stressing weather keeps the farm markets underpinned.

At mid-session, the July corn futures are trading 13 1/2 cents higher at $6.86, while the Dec. contract trades 18 cents higher at $6.53 3/4. The July soybean contract is trading 17 cents higher $15.30, while the Nov. 2012 contract trades 12 1/2 cents higher at $14.40. The July wheat futures are trading 5 cents higher at $7.44. July soyoil futures trade $0.08 lower at $52.13. The July soymeal futures are $7.50 higher at $443.20.

 

In the outside markets, the NYMEX crude oil is $2.11 per barrel lower, the dollar is higher and the Dow Jones Industrials are 65 points lower.

Jack Scoville, PRICE Futures Group vice-president, says it is definitely a weather market, and most of the Midwest looks hot and dry for at least the next week.

“Speculators started buying last night, and bought again in early trading.  Now, it seems like we have turned sideways and slow.  Maybe partly holiday, maybe partly waiting for the next model runs for the next forecast,” Scoville says.

A tweet reported Monday that WeatherRisk.com is finding potential for a change in the weather for the second half of the month, he says.

“Corn tasseling in Ohio and Indiana is happening with stalks at 5 feet and under.  Corn and beans had good color, but looked short in eastern Wisconsin over the weekend.  Without a big change in the weather the price down side should be limited,” Scoville says.

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Adding value to his own ag products

Bruce Meinders’ dairy farm in Kossuth County is a success story sprouting from improbable roots.

At a time when most dairy farms were struggling to survive or selling off their herds, Meinders started dairying three years ago on the family Century Farm where there was no dairy facility or milking system.

Adding to the uniqueness of starting a dairy farm surrounded by miles and miles of corn and soybean fields, is that Meinders processes his own milk for retail sales from his on-farm creamery under the label of Meinders’ Farm Fresh Dairy. Products include milk, butter and several flavors of ice cream.

His Holsteins are milked by a robot that keeps a record of each cow’s production by sending it to a computer.

Another innovation is his use of custom-designed vending machines to sell milk and butter in towns that are not big enough to support a convenience store. There are currently seven vending machines in use.

The vending machine in nearby Rake is the one Meinders is watching to determine if selling milk by vending machine can be profitable. Rake, with a population of 200, represents the size of town Meinders believes he can serve while providing a service to the community.

The sales of his products at the Rake location will be used to determine levels of profitability for his vending machines.

Other towns that Meinders is considering as locations for his vending machines are Scarville and Leland.

Meinders is looking to expand his vending machine sales across the state line into Elmore, Minn., 663 population as of 2010.

“You can not buy a gallon of milk in Elmore,” said Bruce Meinders. “It does not have a grocery store or convenience store.”

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The Royce’s snail farm at the Langham Huntington in Pasadena

Chef David Feau of The Royce at the Langham Huntington Hotel & Spa in Pasadena is establishing a garden on the grounds where he can grow vegetables and herbs for use in his kitchen. It also features a small snail farm.

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Farmland is the new hot investment

Marc Schober likes to say that farmland is the new gold, a hot investment that offers protection from the whims of the stock market.

In fact, it’s better than gold, the 25-year-old explains, tromping through a muddy field in southern Minnesota near Albert Lea, that he’s vetting for potential East Coast buyers. Cropland pays you money to hold it, he says. Gold bars don’t produce anything, and you can’t charge rent on them.

That type of bullish thinking has investors of every stripe flocking to farmland, plowing money into dirt from Australia to Brazil to the U.S. heartland. Compared to the volatile stock market and the feeble returns from bonds, farmland offers booming cash rents that have made it something of an “it” investment.

Schober’s investors, some of whom are “Wall Street guys that run securities funds,” see farmland as a hedge against inflation, he explains. “They’re extremely turned on to the return profile — it’s such a steady increase.”

Brian Briggeman, a former Kansas City Federal Reserve Bank economist now at Kansas State University, estimates that about a quarter of farmland buyers are now investors, or non-operator buyers of some sort. How many are Wall Street-type players is impossible to say.

The entrance of new money has fed fears of an asset bubble, although most see investors as more of a symptom than a driver of high prices.

Paul Magnuson, a 50-year-old investment manager from Dallas, likes farms so much that he bought five over the past two years — one for each of his children.

He found them through Farmers National Co., a large farm management company in Omaha, Neb., that has amassed 5,000 farms in 24 states. It manages the properties for non-operating landowners, corporate owners and investors such as Magnuson.

Magnuson’s day job is managing mutual funds for a unit of insurance giant Allianz. But he was born in a small town in Nebraska, he explains, and his father grew up on a farm. He wants to pass on some of that heritage to his children. Plus, he thought the farmland was the soundest investment he could make.

Over the past decade, U.S. farmland has returned an average of 15.5 percent a year, according to a widely watched index from the National Council of Real Estate Investment Fiduciaries. That compares with about 4.1 percent for the Standard & Poor’s 500 stock index and about 1.8 percent for 90-day government bonds.

Gold? About 19 percent.

Not everyone is thrilled about the new breed of investors making a pure financial play. George Boody, head of the Land Stewardship Project in Minneapolis, said he’s worried that “the Wall Street shareholder model” focuses too heavily on wringing profits from the land.

The new owners are more likely to overlook important concerns for rural communities, Boody said. These include the need for crop diversity — not just commodity corn for animal feed or ethanol — and the necessity of conserving wildlife habitat and buffers to help filter water draining into polluted rivers.

“We’ve pushed the system too far,” Boody says.

Schober says investors typically leave the farming and crop choice to the farmers. After all, he said, that doesn’t affect the rent they’re pocketing. Commodity markets dictate what farmers will grow, he said, regardless of whether they own or lease the land.

“Farmers know how to be good stewards of the land,” Schober said.

Schober motors around the Midwest for Colvin & Co., a farm investment firm with offices in New York and Anoka, Minn. As he hikes across a field near Albert Lea, he frets about getting mud on the Red Wing boots his parents gave him for Christmas.

His age throws off some farmers at first, he acknowledged. But he said they quickly realize he knows the business once he starts talking.

Schober’s boss in New York is his brother-in-law Greyson Colvin, a former UBS investment bank research analyst. Colvin seeks out buyers. Schober scours the countryside for farms coming on the market. The target: land where owners can charge at least 5 percent of the purchase price in rent.

The firm has clients lined up waiting for farms. Most of them are sophisticated investors with a net worth of more than $1 million.

The company’s website shows a quartet of combines roaring through an expansive wheat field. It urges potential investors to “Own a piece of America’s Heartland.”

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A celebration straight off the farm

There is a small but powerful time warp waiting to be discovered in the Great North Woods.

At the Poore Family Homestead Historic Farm Museum in Stewartstown, visitors are transported back to a time before electricity in the rural northernmost region of New Hampshire.

On Sunday, the museum celebrated the 127th birthday of J.C. Kenneth Poore, the last member of the Poore family and the founder of the Poore Family Foundation for North Country Conservancy, with the 18th annual Open Barn and Celebration.

Rick Johnson, executive director of the Poore Family Foundation, said he got caught up with the history evident in every part of the Poore Family Homestead.

“I feel very lucky to be here,” he said, as he welcomed visitors to the birthday party and reminded them to have a piece of birthday cake. “It’s tradition,” he told the group.

Dawn Franklin of Gray, Maine, vacations in the area every summer. She brought her 7-year-old daughter, Sophia, and her 2-year-old son, Evan, to the celebration.

“It’s a great way for them to learn some history,” she said, watching as the two played with a hand water pump.

Visitors explored a typical trapper camp from the early 1800’s and learned how early pioneers and trappers started campfires by watching demonstrations from Charlie Chalk and Jimmy Gilbert of the Great North Woods Party of American Mountain Men.

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Harford Farm Fair to be preceded by carnival as board seeks more funding

The pigs, horses and sheep will all still be there, but for residents looking for something a little different, this year’s Harford County Farm Fair promises more than a few new events.

Have a special skill? You can try out for the new talent competition. Know your way around the kitchen? Consider the new culinary competition.

More importantly, do you like Ferris wheels or bumper cars? Then you can ride to your heart’s content at the fair’s new “pre-game” event, a carnival.

Organizers of the 25th annual fair, set for July 26 through 29 at the Harford County Equestrian Center in Bel Air, hope to keep things fresh for the event’s quarter-century anniversary and raise money for the fair with a complete midway for all ages, plus a beer barn for the adults.

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Andreessen Horowitz Heads Down on the Farm With Latest Investment

Everybody eats. It’s one of those fundamental truths I learned from “Sesame Street” in the 1970s.

Another is that most of what we eat comes out of the ground, unless it’s meat, in which case what it eats probably comes out of the ground.

Either way, that makes agriculture kind of a big deal everywhere in the world. So if you can develop a product that makes farming better, more efficient or less costly, you’re probably onto something, and that itself is sort of a big deal.

That’s kind of what the venture capital firm Andreessen Horowitz is hoping happens to its latest investment, a company called Solum. AH is leading a $17 million Series B round of venture capital financing in the start-up, and general partner John O’Farrell is joining its board of directors. Existing investors including Khosla Ventures also participated.

So what does Solum (those are its founders pictured in the farm field to the right) do? O’Farrell put it in an interesting way in a blog post today. As his partner Marc Andreessen said recently, software is eating the world. O’Farrell says it might also help feed it.

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Baltlogistics to Invest 7 Mln Euros in Moscow Region Rabbit Farm

Baltlogistics.Com, one of Russia’s largest logistics, distribution and merchandising firms, will invest nearly seven million euros in construction of a rabbit farm in the Moscow region, MITS investment firm, which sold the land for the farm, said on Monday.

The 12.5 hectare land site with flat terrain and convenient transport access is located in the Orudiyevo logistics park. The rabbit farm construction will help to create an agribusiness cluster in the area, MITS said in a statement.

“It was not easy to find a favorably located and properly registered area [in the region]. The acquired land will allow us implementing an interesting commercial project,” Baltlogistics partner Igor Laidinen was quoted in the statement as saying.

“The land sites in the Orudiyevo area have a significant potential in a price increase due to supply shortage of land for industrial use [in the region] and a general upward trend [of higher prices] for land in the Moscow region,” Olga Korobova, head of the corporate development department in MITS, said.

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Crafar farm deal held up, Appeal Court hearing told

Chinese company Shanghai Pengxin has yet to complete the purchase of the Crafar farms, the Court of Appeal was told yesterday as the latest Sir Michael Fay-led legal challenge to the acquisition was heard in Wellington.

The Independent Crafar Farms Purchase Group which competed against Shanghai Pengxin to buy the 16 farms from receivers but lost out, is challenging the Overseas Investment Office’s recommendation to approve the deal which was later signed off on by Land Information Minister Maurice Williamson and associate Finance Minister Jonathan Coleman.

The group’s legal counsel Alan Galbraith, QC, said the OIO erred in deciding that Shanghai Pengxin’s partnership with state-owned Landcorp – which will run the farms – satisfied the Overseas Investment Act’s requirement for relevant experience.

But while Shanghai Pengxin’s spokesman Cedric Allen recently refused to confirm whether the purchase of the farms had gone through, the court was yesterday told the transaction was on hold pending the outcome of the appeal.

Mr Galbraith told the court the focus of the OIO’s appraisal of Shanghai Pengxin’s relevant experience and acumen should be on the man in ultimate control of the corporation, billionaire Jiang Zhaobai

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