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            Losses caused by the corn borer are 
            about 4 percent per borer per plant when the first and second 
            generation are averaged over the various growth stages of corn. This 
            simply means that if you find two corn borers in a plant, you have 
            lost about 8 percent of the yield for that plant, due to the damage 
            caused by the borer. Losses can be direct, which occurs when plants 
            break over or ears are dropped, or indirect, when the tunneling in 
            the plant reduces the flow of nutrients to feed the ear. 
            
              
            
              
            [Photo provided by John Fulton] 
            
            Central Illinois generally has two 
            generations per year, but a third generation is not uncommon. Larvae 
            overwinter in the stalks of last year’s crop, then pupate and emerge 
            as moths that lay eggs. The rest of the development is the same as 
            any moth. 
            
            Practices of shredding stalks or clean 
            plowing help reduce the number of moths that will come from a 
            particular field, but the moths can fly up to six miles. This means 
            that for shredding or plowing to be effective, all the neighbors for 
            six miles around a field would have to follow one of these practices 
            to protect the one field in the middle. In other words, we’ll have 
            to deal with the borers. 
              
            
        
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            Tools for dealing with corn borer 
            include scouting and integrated pest management. Some of the 
            available tools of integrated pest management include the use of 
            pesticides and B.t. corn. B.t. corn has had quite a bit of press the 
            past few years as an environmental problem with monarch butterflies, 
            but the question that needs to be asked is why monarch butterflies 
            would be in a cornfield when they feed on milkweeds and not corn. 
            Oh, well — so much for a public policy speech. 
            
            Growers should continue to scout for 
            corn borer egg masses and apply control measures when economic 
            thresholds dictate. Newer models for thresholds are based on 
            economics of control, with crop price, control cost, forecast yield 
            and control efficacies all applied. The old threshold was one egg 
            mass per every two plants. The main problem encountered is that the 
            egg laying gets spread out over a long period as the season wears 
            on, so it is hard to find the scouting threshold at any one time. 
            In 
            September, our office will conduct the annual overwintering survey 
            of European corn borer. This is done by counting damaged stalks, 
            counting borers in stalks and assessing the growth stage of the 
            borers. This will be the 20th continuous survey coming up for Logan 
            County, and Logan County is one of the few counties in the state 
            with continuous data. I’ll report the results as we get into the 
            fall months. 
             [John
Fulton] 
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            "Illinois milk producers need $13 per 
            hundredweight for milk to cover all costs and obtain a fair return, 
            but record-low milk prices — currently under $11 per hundredweight — 
            are killing profit margins," said Mike Hutjens. "At the same time 
            milk prices are down, hay prices are up, corn silage is 
            drought-stressed, and corn prices may reach $3 per bushel. 
            
            "From 40 to 50 percent of the cost to 
            produce milk is represented by feed costs." 
            
            The MILC program helps make up some of 
            the losses dairy producers face with record-low prices. 
            
            "Under the new farm bill, producers 
            have the option of having retroactive MILC payments start either in 
            December 2001 or receive a one-month payment for September 2002," 
            said Hutjens. "The MILC payments begin at 77 cents per hundredweight 
            in December 2001 but are estimated to be close to $1.50 per 
            hundredweight by next month." 
              
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            Hutjens said that producers shipping 
            more than 1.3 million pounds of milk per month need to consider the 
            program’s options carefully. 
            
            "It is a much easier choice for those 
            producing at or below 2.4 million pounds per month," said Hutjens. 
            "The September-only option is the best." 
            In 2003, 
            Hutjens noted, producers can tell the USDA if they want the payments 
            to start as of Oct. 1. 
             [U 
            of I news release] 
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            "Under those circumstances, the 
            strength of demand will be extremely important in determining the 
            post-harvest price pattern," said Darrel Good. "What level of prices 
            will be required to limit consumption to the level of supply? The 
            market will carefully monitor the monthly soybean crush reports, the 
            monthly estimates of processing uses of corn and quarterly USDA 
            stock reports. 
            
            "In addition, monthly reports of 
            livestock numbers, cattle on feed and the hog inventory will provide 
            information about potential adjustments in use. In the case of 
            exports, the market has weekly USDA estimates of export sales and 
            export inspections." 
            
            Good’s comments came as he reviewed the 
            impact of recent weather changes on market prices. Recent 
            precipitation in some of the drier areas of the Midwest has brought 
            a halt to the week-old rally in corn and soybean prices. 
            
            "The market now has to sort out the 
            potential yield impact of the late-season rainfall," said Good. 
            "August precipitation, of course, will result in higher average 
            yields than would have occurred without the rainfall. The question 
            is whether yields will exceed the USDA August forecast. 
            
            "The objective yield portion of the 
            August forecast is based on the assumption of normal growing 
            conditions following the collection of data for the August 
            forecast." 
            
            Good added that the market remembers 
            the patter of yield forecasts last year, when late-season rainfall 
            also brought some relief to dry areas. For soybeans, the September 
            yield forecast was 0.5 bushel below the August forecast, but the 
            January estimate was 0.9 bushel above the August forecast. For corn, 
            the September forecast was 0.4 bushel below the August forecast, but 
            the January estimate was 4.3 bushels above the August forecast. 
            Contrary to popular belief, the late rains last year appeared to 
            boost corn yields more than soybean yields. 
            
            Based on the USDA’s forecast that 
            71.001 million acres of corn will be harvested for grain in 2002, 
            each bushel change in yield would mean a 71-million-bushel change in 
            production. 
            
            "A four-bushel increase in the U.S. 
            average yield this year would change prospects for a very tight 
            supply-and-demand balance to prospects for a more comfortable 
            balance," said Good. "Still, year-ending stocks might not be much 
            above one billion bushels." 
              
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            Harvested acreage of soybeans is 
            projected at 72.029 million acres, so that a one-bushel change in 
            yield would alter production by 72 million bushels. A 
            72-million-bushel increase in production over the August forecast 
            would produce a crop of 2.7 billion bushels. 
            
            "A crop of that size would still 
            require a 200-million-bushel reduction in use during the year ahead 
            in order to maintain year-ending stocks above 150 million bushels," 
            said Good. 
            
            Currently, the only consumption data 
            available are the weekly USDA export sales reports. Early sales are 
            not a good indicator of actual shipments in the subsequent marketing 
            year, but these sales are examined for clues about buying patterns 
            of individual importing countries. As of Aug. 8, only 90.5 million 
            bushels of soybeans and 86.3 million bushels of corn had been sold 
            for export during the 2002-03 marketing year. 
            
            "The last time that consumption of U.S. 
            corn and soybeans had to be restricted was the 1995-96 marketing 
            year," said Good. "Two factors appear to be significantly differed 
            for corn in 2002-03 than in 1995-96. First, the magnitude of the 
            needed cut in consumption was much larger in 1995-96. Use was 
            reduced by 800 million bushels, or 8.6 percent in 1995-96 compared 
            to use in 1994-95. This year, use can be maintained at the level of 
            use during 2001-02 if the crop is at least as large as the August 
            forecast. 
            
            "Second, demand does not appear to be 
            as strong currently as it was in 1995-96. High livestock prices and 
            strong world economics meant that adjustments in consumption were 
            not made early in the 1995-96 marketing year and that an extremely 
            high price was eventually required to force the necessary reduction 
            in use. The implication is that, with a trend yield in 2003, price 
            will not have to go nearly as high this year as in 1995-96. The 
            price pattern this year may be more typical of a short crop year, 
            peaking early in the year." 
            
            For soybeans, the current situation is 
            different from that of 1995-96 in two significant but contrasting 
            ways, Good noted. 
            "The use of 
            U.S. soybeans may have to be reduced by more than 200 million 
            bushels this year, compared to a 60-million-bushel reduction in 
            1995-96," he said. "However, the 2003 South American soybean crop 
            may be double the size of the 1996 crop. Larger South American 
            supplies mean a lower price would be required to make the needed 
            reduction in the consumption of U.S. soybeans." 
             [U 
            of I news release] 
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