Next issue will be posted August 15, 2007. Read previous issues through our calendar of issues.

This increased corn acreage has come largely at the expense of soybean acreage, though farmers have also shifted 20 percent of the cotton acreage into corn as well. For the 2007/08 soybean crop, U.S. farmers are only planting 64 million acres compared to the 72 to 75 million acres planted the previous four years. Because of the lower planted acreage, soybean prices have increased as well with the USDA predicting soybean prices to be in the $7.25 to $8.25 range, which is markedly higher than the $5 to $6 range from the previous three years.

The case of wheat is different than corn and soybeans; this year U.S. farmers are planting slightly more than in previous years and the USDA is predicting higher prices in the $4.80 to $5.40 range. The reason wheat prices are up is because world supplies of wheat are very tight due to poor crops this year and last year in the major wheat growing countries. We can expect commodity wheat prices to remain high for the next few years for two reasons: 1) world wheat supplies need to be built back up, and 2) wheat needs to compete for acreage with corn and soybeans whose prices are high due to demand for fuel feedstocks.

Table 1: U.S. average farm price and U.S. acreage for commodity corn, soybeans and wheat.

So, what do these substantially higher commodity corn, soybean and wheat prices mean for the organic market in the short term and long term?

Short-term impacts on the organic market
In the short term, these much higher commodity grain prices will have little impact on the organic grain market. If anything, the much higher commodity wheat prices will benefit the organic wheat market. Over the last few years the organic wheat market has been trading in the $6 to $8 range according to Organic Price Index (OPX at www.newfarm.org). With commodity wheat prices in the $5 range, organic wheat has become much more competitive with commodity wheat, which will stimulate demand from consumers at the grocery store and from bakeries that may be more inclined to introduce organic products that were cost prohibitive when commodity wheat was in the $3 range.

The organic corn market is being driven by increased demand for certified organic meat, poultry and dairy products. The growth in the certified organic livestock industry has pushed organic corn prices up to the $10 range in 2007, up from the $5 to $6 range in 2005 according to OPX (July 2007). This large price increase has occurred during 2007 with organic corn prices in April at about $7 and increasing each month thereafter according to the Agricultural Marketing Service of the USDA (http://www.ams.usda.gov/mnreports/nw_gr113.txt ). With certified organic corn selling for more than twice the commodity corn price, this should limit the number of organic grain producers who shift back to conventional production.

The organic soybean market is being driven by cheap imports from China, which have kept the price of organic soybeans for feed in the $14 range. As with wheat, the much higher commodity soybean prices may stimulate demand for organic products by lowering the price differential between organic and non-organic products.

Long-term impacts on the organic market
Over the longer term, the high commodity prices may put upward pressure on organic grain prices because the higher returns to commodity agriculture will slow the transition of land into certified organic production. Commodity grain producers who were considering transitioning into certified organic production in order to increase their income are currently enjoying much higher incomes and thus will be less interested in converting to organic. At the same time, organic livestock producers will have an incentive to convert more land to organic production in order to meet their own feed needs and to protect themselves against higher grain prices.

In summary, the organic market is still fairly separate from the commodity market and prices in the organic market will be determined by the supply and demand for certified organic products. That said, the commodity market and the organic market compete for the food consumers’ dollar. Consumer surveys have shown that one of the major reasons that consumers do not purchase organic products is that they cost more than conventional products. This is where the good news about higher commodity prices comes in: higher commodity grain prices are leading to higher conventional food prices, especially cereal products and livestock products. Thus, if organic food prices stay the same or do not increase as much as conventional food prices, then organic products will be priced more competitively at the grocery store. And the really good news is that the price of organic products does not have to fall for them to be priced more competitively relative to conventional products!

Late summer cover crop seedings
Dale R. Mutch
Cover Crop/IPM Specialist
MSU Kellogg Biological Station

On the New Ag Network organizational conference call on July 24, some farmers had questions about seeding cover crops in the latter part of summer. Two cover crops in particular were mentioned – hairy vetch and soybeans.

Hairy vetch
Hairy vetch is a winter annual legume that will produce high levels of nitrogen. In Michigan, we try to plant hairy vetch between August 1 and September 1. In a biomass study conducted at MSU/KBS we saw a 2,000 lb. increase in spring biomass by planting hairy vetch on August 25 as compared to September 14 in 2005.

Hairy vetch has a tendency to re-grow in fields where it has been planted. This can cause problems particularly in small grains. The seed of hairy vetch is really hard to separate from small grains. Farmers need to remove hairy vetch plants similar to weeds when in small grains. To summarize, I would plant hairy vetch after August 1. The date should be modified to consider soil conditions. For example, if your soils have adequate moisture, I would plant earlier. But if your soil conditions are very dry, I would wait until the conditions are right.

Paul Mugge from Iowa had a good suggestion. He was going to prepare his fields for seeding now and when he receives some rain he is going to seed his cover crops into the prepared ground.

Soybeans
We haven’t done too much work with soybeans as a cover crop. We did plant it after wheat harvest for several years to evaluate it. When we compared soybeans to oilseed radish, hairy vetch and crimson clover, soybean biomass was the lowest. We seeded soybeans at the one bushel rate and I believe we should have planted it at a higher rate of 2 to 3 bushels per acre.

If you want to seed soybeans as a cover crop, I would plant it as soon as possible, especially if you want soybeans to nodulate and produce some nitrogen for next year. Floyd Johnson from Illinois mentioned that soybeans may provide more nitrogen benefits for next year if you produce beans and then work them into the soil. A lower rate of soybeans will enhance seed production and I would recommend 1.5 bushels per acre if this is your intent.

I hope this helps your late summer cover crop seeding plans.

Illinois workshops on diverse topics from soap-making to organic feed for orangutans
Deborah Cavanaugh-Grant
University of Illinois
 
Small farms have had to diversify in order to stay viable and that means creative thinking, creative marketing and creating new niche markets. "Small farms are so much more than growing vegetables and the broad range of topics of workshops and tours that we are offering really reflect that diversity," said Deborah Cavanaugh-Grant, University of Illinois Small Farm and Sustainable Agriculture Extension Specialist. "We have scheduled workshops on everything from soap-making to how to get your produce to a farmers' market, to a new program at Brookfield Zoo is spearheading to supply their animals with organic feed."
 
The series of innovative workshops, designed to equip farmers with the information they need to create and sustain their farms, are the result of a collaborative effort of a number of organizations, including University of Illinois Extension. The workshops are aimed to serve both established farmers who want to expand their operation as well as those who are interested in starting alternative, entrepreneurial agriculture enterprises.
 
For a complete listing of workshop details, visit web.extension.uiuc.edu/smallfarm/.

August 12 - Marketing with a Human Face; Pana, Illinois
Strategies for using direct marketing between farmers and consumers, including subscription farming, farmers' markets, U-pick operations, and roadside stands. To register, contact Paula at Illinois Stewardship Alliance (217- 498-9707; isa@illinoisstewardshipalliance.org).
 
August  16 - Farm Dreams: Assessing Risks and Resources to Start an Entrepreneurial Farm Business; Quincy, Illinois
At this half-day workshop, participants will have the opportunity to meet experienced sustainable farmers, and learn about many types of farm enterprises. The workshop will also preview the more involved program of courses entitled Farm Beginnings (www.farmbeginnings.uiuc.edu), and will look at resource assessment, goal-setting, financial planning, marketing options, and finding land and equipment. To register, contact U of I Extension, Adams-Brown Unit, (217-223-8380 or visit webs.extension.uiuc.edu/registration/?RegistrationID=915).
 
August 20 - Plant Micro-Nutrient Health, Springfield, Illinois
This on-farm workshop at Jubilee Farm, presented by Dr. Bill Becker (Agrosystems Management, Inc.) will focus on the importance of micronutrients in all forms of agriculture, including fruit and vegetable production. Workshop includes a demonstration of composting and its use in the treatment of plant pathology. Registration of $20 for the first attendee and $10 for accompanying family members includes a noon meal featuring local food. To register: contact Paula at Illinois Stewardship Alliance, (217-498-9707; isa@illinoisstewardshipalliance.org).
 
September 17 - Conservation Security Program (CSP); Boone County, Illinois
This workshop will showcase the Mike Lindberg farm which is enrolled in the highest tier in CSP, give a history of the program and its current status, and provide information for interested farmers in preparing their operations for CSP enrollment.  To register, contact Paula at Illinois Stewardship Alliance, (217-498-9707; isa@illinoisstewardshipalliance.org).
 
September 24 - Farm to Zoo: Linking Local Organic Farmers to the Brookfield Zoo;
Chenoa and Eureka, Illinois
Brookfield Zoo is committed to buying animal feed and human food directly from Illinois organic farmers. This field day and workshop begin at the Ackerman Farm just off Interstate 55 in Chenoa with a farm tour.  It will then move to Larry and Marilyn Wettsteins Organic Pastures farm near Eureka.  Panelists from the Brookfield Zoo will inform farmers of the many foodstuffs that the zoo is anxious to purchase from Illinois farms. To register, contact The Land Connection (847-570-0701; Kathy@thelandconnection.org or visit www.thelandconnection.org).  
 
November 3 - Putting Small Acreages to Work; Belleville, Illinois
Practical, no-nonsense, hands-on advice for beginning, as well as transitioning farmers in the areas of crop production, market development and other important business options.  To register, contact U of I Extension Madison/St.Clair Unit Office (618-650-7050 or visit web.extension.uiuc.edu/madisonstclair/findus.html).
  
November 10 - Soap Making Workshop; Clinton, Illinois
Soap making is a process that dates back hundreds of years. This workshop, for beginners or experienced soap makers will provide an overview of the soap making process including specifics about glycerin, goat's milk, botanical and herb soaps. The workshop will conclude with a producer round table discussion on marketing soap products. To register contact Illinois Stewardship Alliance, (217- 498-9707; isa@illinoisstewardshipalliance.org). 
 
November 17 - Small Farms Conference; Peoria, Illinois
Presenters at this conference will discuss topics of importance to those who are considering an alternative agriculture enterprise or are presently engaged in one. To register, contact Roger Larson (309-685-3140 or visit web.extension.uiuc.edu/peoria).
 
November 26 - Food Rules: Knowing the Regulations; Carlock, Illinois
This one-day workshop will bring farmers and regulators together so that each can hear from and ask questions of the other. Panelists will include farms who are successfully marketing meats and value-added food products, as well as personnel from the Illinois Department of Agriculture, the USDA, and several central Illinois Health Department officials. To register, contact The Land Connection, (847-570-0701; Kathy@thelandconnection.org or visit www.thelandconnection.org).   
 
November 28 - Putting Small Acreages to Work; Kankakee, Illinois
Practical, no-nonsense, hands-on advice for beginning, as well as transitioning farmers in the areas of crop production, market development, and other important business options. To register, contact U of I Extension Kankakee County Unit (815-933-8337 or visit web.extension.uiuc.edu/kankakee.)
 
November 29 - Tri-State (Illinois, Iowa and Missouri) Local Foods Conference; Quincy, Illinois
This workshop will increase the awareness and knowledge of farmers and educators to be more effective in marketing. To register, contact U of I Extension, Adams-Brown Unit, (217-223-8380 or visit webs.extension.uiuc.edu/registration/?RegistrationID=915).

Reports from organic growers

Indiana
West Central Indiana, Tippecanoe County – Kevin Cooley
The weather has been favorable with rainfall for the past week at 1.8 inches; we are starting to gain back some of the much-needed soil moisture. Cool nights have slowed down the ripening of the tomatoes and reduced the flowering of green beans. Overall, the weather this season has been a plus in reducing the number of pest problems.

The past few weeks we have been succession planting things like beets, carrots, soy and beans. We have also started flats of broccoli, cabbage, cauliflower, cucumbers and squash for later planting in the field. With the cool nights we have been able to transplant-out lettuce very successfully. We hilled the fall potato crop and cultivated the fall squash and pumpkins. Another task we have completed is weeding and re-trellising the spring raspberries. Our strawberry rows that needed narrowed-up have been completed. Currently we are trying to hand-weed small beets, carrots and basil.

Upcoming field work will include getting the remainder of the onions that were grown on plastic mulch out of the field before the next rain comes. Another task will be to hand-hoe the pumpkins, fall squash and new strawberries. One other nasty job will be to weed our asparagus rows – that will not be fun at all!

Questions
How do you successfully prevent or combat early blight in tomatoes?
Have you got any good methods for organic weed control in asparagus?

Southeast Indiana, Decatur County – Gary Reding
We are still short of rain in our area. The crops look good considering the moisture. We have had 1.37 inches of rain in July so far; it has come in small increments, but still keeping us alive. The popcorn is just tasselling and taking several days to get that done. If we would get another small rain this week, it would be great for pollination. Soybeans look good but a little smaller in height than usual, which does not normally translate to yield loss directly. We are currently pulling weeds in the soybeans and have finished cultivating. Our hay is not growing very fast either. We are supplementing the pastures with some hay feeding already leaving concern for how much hay we may have for winter feeding.

We did some different applications of animal manure compost on our popcorn fields this year. One field had composted chicken manure, two had composted cattle manure and one field had none. So far they all look the same and not showing any stress to date even in the dry weather. I had some nitrogen testing done and the one with no manure applied had the highest in N availability, which is surprising to me. I think the moisture is our limiting factor at this point. It will be interesting to see the yield results in the end.

So far we have had no insect issues on any of the crops, but I saw the crop duster flying last week on some conventional crops.

That’s it for now. We will continue to hope for beneficial rain and see what happens.

South Central Indiana, Brown County – Dale Rhoads
We had good rainfall over the past two weeks and I have not needed to water. The rain has not been enough to add water to my pond, but with the rain I am not using water out of it right now.

Along with the rain has been cooler weather that is slowing down squash and other summer crops, but not hurting them adversely. The cooler and wetter weather is giving some disease problems with salad greens and basil, but not much damage. After not having much caterpillar pressure, cabbage looper is now showing up.

I just about had the weeding of long season crops down and then had some labor shortages and still have some more of that to do. We are harvesting all the summer crops now. Cool weather is keeping the salad greens going strong. So we are keeping up with regular salad greens plantings and setting up sterile seed beds.

We did several no-till experiments this year; the entire no-till areas were rye crimped. The corn is doing fine, the squash and peppers are doing fine, but the squash on no-till is not producing as much as squash with conventional tillage or the squash that was mulched, which is producing the best of the three.

We are getting final weeding done on long season crops. We are planting some cover crops for next year. This is the time of year when we are spending most of our time harvesting, processing and making deliveries.

Illinois
Northern Illinois, Kane County – David Campbell of Lily Lake Organic Farm
Heavy rains have been present in nearby areas for the past two weeks. We have received lighter amounts of rain, although still enough rain to keep the crops going.
 
Presently we have some second cutting hay on the ground. Drying conditions have not been too good due to heavy dews, partial sunshine and no wind to speak of. Wheat has been harvested and oats are almost finished in our area.  In the next two weeks we will finish second cutting hay.

West Suburban Chicago, Lake County—Steve Tiwald of Green Earth Institute
Last week we received 1.7 inches of rain over a day and a half. This was a welcome event, but more is needed.

We are doing lots of harvesting, as we are in the midst of our CSA season. Last week we finished the spring broccoli and cauliflower. Now the warm-season crops are starting to kick in – the tomatoes, eggplant and peppers. We are experiencing significant flea beetle problems in the Russian kale. In the summer squash, powdery mildew is setting in. Western corn rootworm beetles have begun their annual infestation despite the fact that we do not grow corn, and there is none in the immediate vicinity; these must blow in. We are continuing our periodic seeding of lettuce into greenhouse trays.

During the next two weeks, harvesting of many crops will continue regularly, of course. We are beginning the transplanting out of the fall crops of broccoli, cauliflower, bok choi, kohlrabi and cabbage. For the first time we will be trying our new drip tape burying implement to use under those fall crops. As strips get finished for the season, such as snap peas, broccoli, cauliflower and garlic, we will be doing light tillage and planting summer cover crops of either buckwheat or sorghum-sudan grass.

Iowa
Northwest Iowa, O’Brien County – Paul Mugge
It is still very dry here. I have received about a total of 0.6 inches of rain since June 1. The corn is quite stressed, but pollinated, I think. The soybeans are hanging in there, waiting for rain, but aren’t growing much. The alfalfa has some blossoms, but is almost too short to be able to cut.

I just finished harvesting triticale. It yielded about 60 bushels per acre – three-fourths of a normal yield. I am combining flax now and it will also be lower yielding – about 20 bushels per acre. The good news is that there are almost no weeds in it and the flax was short so it combines really easily. The frost seeding experiment in the fall triticale produced a so-so stand of red clover and almost no alfalfa plants. We are also finishing walking beans. They are very clean this year because of the dry June.

I need to finish baling straw and getting the bales home. I have triticale, flax and soybeans to deliver next week. I need to till the triticale stubble where I didn’t get a cover crop stand so that when it rains I can immediately drill cover crops. I’m going to try cow peas and seed a few field peas and soybeans for comparison. I also have a lot of manure to haul and a couple of roofs to shingle before fall.

Questions
I have been approached by a broker about raising spelt next year and need information about that. I also want to fall seed some alfalfa in the triticale stubble and am wondering what the secrets are to that.

Michigan
South Central Michigan, Calhoun County – Anthony Cinzoni
On July 17 we received about one-half inch of rain, so it is still dry. The irrigation pond is the lowest it’s been.

Currently we are irrigating, planting fall greens, beets, carrots and radishes. We are harvesting summer squash, cucumbers, pickles, peppers, eggplant, onions and potatoes. During the next two weeks we will plant a third planting of zucchini, squash and cucumbers, as well as continuing to harvest.

Southwest Michigan, Berrien County – Greg Vlaming
(Editor’s note: Greg has offered to start writing a report from his farm – read his bio at: http://www.new-ag.msu.edu/aboutNewAg.htm#Greg )

Weather continues to be very dry with one shower last week resulting in a whopping 1.5 inches in the rain gauge. Otherwise, the highs have been in the upper 70s or low 80s with clear skies and a slight breeze.

Tomato harvest from the hoophouse has been strong for a month now, and the fruit on the outdoor plants is beginning to color as well. Almost all of the garlic is dug, which is immediately cleaned and much of it is braided before drying. Onion harvest has begun, and the first all blue potatoes are being dug. Flower production is strong and the sunflowers are in full glory. Other crops being sold presently include fresh basil, herb bundles, summer squash, beets, carrots, lettuce, red Russian kale, Swiss chard and free range eggs.

The major insect pests have been tomato hornworm, and Colorado potato beetle, both of which are monitored through diligent scouting, handpicked and fed to the chickens. Weed management and watering are the major jobs now. In spite of our dry conditions and drip irrigation, the weed pressure has been strong as our biggest growing area is a newly plowed field previously undisturbed and overgrown with various grasses and weeds.
  
The young peach trees we planted in the spring have held on fairly well in the dry conditions and light soils. Hand-watering has been regular, with a top-dress of compost applied in June. Some funny leaf color, which I think is the result of nutrient deficiencies because of low soil water and minimal root surface area/uptake. Oriental fruit moth larvae have hammered many of the new growth tips and Japanese beetles are present in moderate numbers. If we can get through this first year, I think they will do well. The cover crop seeded in the row middles has done okay at best, as the original grasses are surviving the drought better than the new plants.