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Corn Growers Hope for Sharp Passage of USMCA

Corn growers will possibly be glad to put 2019 in the rearview mirror a few weeks from now. This may be the closing of books on a year that brought floods, trade turmoil, delayed planting. Also, there are some of the highest humidity corn ever harvested for grain. National Corn Growers Association members gathered in St. Louis this week. They held a news conference to reflect on the events of 2019, focusing on trade and small refinery exemptions. There have been pros for trade, such as yesterday’s announcement that the three nations were signing the U.S.-Mexica-Canada agreement. Also, challenges such as the ongoing dispute between the U.S. and China will offset after the deal. There have been pros and cons in the ethanol arena as well, with President Trump reaching an agreement with the ethanol industry on Oct. 4. Also, the EPA did not follow through with the deal, according to the president of the Iowa Corn Growers Association.NCGA President said the previous ratified deal with Japan would secure the second-largest corn market exporter across the world. This week’s announcement that the White House and Congress are moving forward with the USMCA trade deal is about the best news this Christmas season. House Speaker Nancy Pelosi reported the House plans to vote on the agreement next week. Also, Senate Majority Leader says Senate would not take up the transaction until after the impeachment hearing next year. Ross said if voting were held sooner, it would have been great. Passing USMCA removes the uncertainty around the future of the trade deal between the U.S., Canada, and Mexico. He says he believes the votes are there to pass the trade agreement. Also, he encouraged farmers to call lawmakers voicing their support for the deal.

 

Commodity News: Corn May be Cheaper on Drying

In North Dakota, abandoned corn standing in the field over winter may dry to around 17% to 20% of moisture, according to the agricultural engineer of NDSUE. Field deficits will depend on stalk strength, winter conditions, wildlife, and ear shank attachment to the stalk. Besides, letting corn stand may not be lower than drying corn, according to Hellevang. Growers will need to estimate drying costs and match them to possible field deficit.

To estimate propane drying prices per point of moisture removed per bushel, multiply the propane price per gallon by 0.02. For propane costing $1.50 per gallon, the propane price would be 3 cents per bushel per point of moisture removed.

If 10% of points of moisture need to be removed, the amount in this example would be 30 cents per bushel. Assume the corn price is $3 per bushel, then 30 cents drying energy amount would be equivalent to a 10% field loss during the winter.

If a farmer assumes that he will have more than 20% field deficit, it may cost more to leave the corn in the field than to harvest the corn and dry it. Also, leaving corn standing may trap more snow, which will raise soil moisture. If a farmer cannot harvest the corn in February or March the capability to plant on time in the spring may affect.



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