NEW USDA INITIATIVE HELPS PAY FOR ON-FARM ENERGY AUDITS

A new initiative from the USDA Natural Resources Conservation Service, called the Agricultural Energy Conservation and Efficiency Initiative, offers financial assistance for individual on-farm energy audits. Applications for Fiscal Year 2010 funding must be received by June 18, 2010.

“Idaho is one of 29 states participating in the pilot of this energy conservation initiative,” said Clint Evans, Assistant Idaho State Conservationist. “It’s designed to help agricultural producers convert to more energy efficient operations over time.”

The energy audits will be individually tailored to make sure a farm's primary energy uses are covered. For example, things like milk cooling, heating and cooling of livestock production facilities, manure collection and transfer, grain drying, and similar common on-farm activities are considered.

“The on-farm energy audit identifies how an operation can become more energy efficient. That information is used to develop an agriculture energy management plan,” Evans added.

Certified Technical Service Providers conduct the energy audits. NRCS pays a set rate for the cost of the audit and developing an agriculture energy management plan that meets agency standards.

Applications for this pilot program will be funded on a first-come, first-served basis. Participants are expected to complete the audit within a year of signing the contract.

The initiative falls under the NRCS’ Environmental Quality Incentives Program (EQIP).

Applications for this initiative are accepted on a continuous basis, but must be received no later than June 18, 2010 to be considered for this year’s funding.

Information about how to apply for the energy audit and develop an agriculture energy management plan is available at www.id.nrcs.usda.gov/programs/ or visit your local NRCS office. To find the office nearest you, look for the Natural Resources Conservation Service in the government pages of the phonebook or on the NRCS Web page http://www.nrcs.usda.gov/

under “Find a Service Center.”

Now Is The Time to Look for Foliar Disease in Your Grain Crop

by Steve Hines, Extension Educator

This spring weather has been a challenge so far to say the least. Colder than normal temperatures, freezing at night, and lots of wind have created some interesting conditions for plants to grow in. While much concern has been focused on sugar beets, early planted corn, and preparation for beans, the cereal grains have been in the ground and on the back burner for awhile.

In the spring of 2005 we saw conditions somewhat like this spring with cold temperatures and plenty of moisture. While we haven’t had quite the moisture yet this year, the last few years have indicated that May and June can be wet months.

If you have grain in your crop rotation it may be worth some time to spend a few minutes walking those fields and looking for early indications of foliar diseases. In irrigated country we don’t need the rain moisture. By irrigating we create a humid micro-environment artificially, especially with sprinklers.

Cool weather and high humidity are factors that can lead to foliar disease outbreaks. Normally by the time I get a call about these diseases, the grain crop is at or past the flag leaf stage and there is nothing that can be done economically at that point. Just because you have a foliar disease is no reason to call the applicator either. You need to make sure the disease is properly identified and then determine if it is at or above the threshold level. Most of our grain crops are going to have some foliar disease.

Hot, dry, windy conditions prevent the spread of foliar diseases and our warm dry conditions do that fairly well.

In the eastern part of the US it is common practice to apply a fungicide as part of normal farming practices. Western growing conditions aren’t the same. Spend some time each week between now and the boot stage looking for the presence of foliar diseases. You want to look for leaves in the upper canopy that are yellowing or have gray, brown, black, orange, or yellow splotches or spots. Keep in mind the very lowest leaves are going to be yellow or brown as they die back naturally. Pay attention to determine if any abnormality found is in an isolated area or spread across the field. Foliar diseases are not uncommon in the Magic Valley, but they don’t often reach levels where fungicide applications are necessary.

From UNIVERSITY OF IDAHO EXTENSION UPDATE available at http://www.extension.uidaho.edu/twinfalls/

Oil Rises to Near $70, But Gas Prices Drop

Oil prices rose to near $70 a barrel Wednesday in Asia as a drop in U.S. gasoline supplies and rebounding Asian stock markets bolstered confidence that demand for fuel is rising.

According to the Associated Press, benchmark crude for July delivery was up $1.13 to $69.88 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract dropped $1.46 to settle at $68.75 on Tuesday.

Gasoline supplies unexpectedly fell last week, dropping by 3.2 million barrels, the American Petroleum Institute said late Tuesday. Analysts had expected an increase of 150,000 barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

Crude supplies at the key Cushing, Oklahoma storage terminal fell 772,000 barrels while overall inventories of crude and distillates rose, the API said.

The Energy Department's Energy Information Administration is scheduled to announce its supply report later Wednesday.

Most major Asian stock markets bounced back Wednesday from losses this week, boosting the optimism of oil traders who often look to equities as a barometer of overall investor confidence.

Domestic Prices Trend Downward

Prices of all classes of wheat dropped dramatically through August and continued easing through September. However, Hard Red Spring (HRS) prices started to escalate as quantities of high-quality spring wheat were limited. White Wheat prices actually fell below Soft Red Winter prices as Australian supplies hit the market. Strong futures prices for Soft Red Winter kept U.S. wheat uncompetitive in global markets. Other than Hard Red Spring, wheat prices have been relatively stable over the last three months.

Global Wheat Ending Stocks Edge Up; Black Sea Shrinks, Traditional exporters Expand

Global wheat production is projected to reach 672 million tons, down 8 million from last year, but the large stock carry-in will more than offset the forecast decline, which will continue to pressure prices. This is the third expected bumper wheat crop in a row. Global consumption is projected to expand to 668 million tons, up nearly 16 million from last year, and is mostly due to additional feed demand in Russia and the EU, plus strong EU ethanol demand. Global trade is up marginally in 2010/11.

A key price factor for the world wheat market is the growing stocks held by traditional exporters; Australia, Canada, the EU, Argentina and the United States. Stocks in Russia and Ukraine are expected to decline, which may provide export opportunities for Kazakhstan.

Reminder: ACRE, DCP Deadline Approaches

USDA's Farm Service Agency reminds farmers and landowners that they have until Tuesday, June 1, to sign up for the 2010 Direct and Countercyclical Program and the Average Crop Revenue Election Program. More than 75% of an expected 1.7 million farmers have already enrolled.

"Producers must be aware of these deadlines and take action," says Jonathan Coppess, FSA administrator.

USDA calculates DCP payments using base acres and payment yields established for each farm. Farms with base acres are eligible for DCP. Eligible producers receive direct payments at rates established by the 2009 Food, Conservation and Energy Act.

APPLY FOR CONSERVATION STEWARDSHIP PROGRAM BY JUNE 11

The Natural Resources Conservation Service wants to reward good agriculture land stewards; the Conservation Stewardship Program offers monetary incentives to encourage producers to maintain existing and take on new conservation practices. Producers must sign up before June 11, 2010 to qualify for 2010 funds.
“This program acknowledges producers that are good land stewards,” said Clint Evans, Assistant State Conservationist for the Natural Resources Conservation Service (NRCS) in Boise, Idaho. “The application process is a bit time consuming up front, but we think the benefit to producers is worth the effort.”

The application process evaluates an agricultural operation’s conservation activities. The program pays producers to continue with conservation practices that treat issues such as soil erosion or water quality. Adding extra conservation activities can increase your payments.

The Conservation Stewardship Program (CSP) offers two payment types: an annual payment to continue existing conservation practices and adopt new ones and a supplemental payment for adopting resource conserving crop rotations. The per acre payments range from $12 to $22 for cropland, $7 to $14 for pasture, $5 to $10 for rangeland, and $6 to $12 for forestland. A supplemental payment, available only for cropland, adds an additional $12 to $16 for the resource conservation crop rotation.

Last year, Idaho received 91 applications covering 106,158 acres of agricultural land and 10 applications for 6,917 acres of nonindustrial private forestland. “We’re hoping we can get more agriculture and forestry producers signed up in 2010,” Evans added.

Take the first step in the application process and complete the online self-screening checklist to see if the Conservation Stewardship Program is right for you; go to http://www.nrcs.usda.gov/programs/new_csp/special_pdfs/CSP_Producer_Self-Screening_Checklist.pdf


For information on the program, eligibility, or a list of conservation activities, visit your local NRCS office. To find the office nearest you, look for the Natural Resources Conservation Service in the government pages of the phonebook or on the NRCS Web page http://www.nrcs.usda.gov/
under “Find a Service Center.”

2010 Idaho Field Days

June 15
UI Weed Tour, Kimberly. Contact: don@uidaho.edu

June 17
Rockland Field Days. Contact: jchen@uidaho.edu
Arbon Valley Field Days. Contact: jchen@uidaho.edu
UI Weed Tour, Moscow. Contact: dthill@uidaho.edu

June 29
Camas Prairie Field Day. Contact: khart@uidaho.edu

July 8
Bonners Ferry Field Day. Contact: jenjensen@uiudaho.edu

July 21
Kimberly Twilight Tour. Contact: amberm@uidaho.edu

July 22
Swan Valley Direct Seeding. Contact: mjgellings@msn.com
Ririe LDS Church Farm: Contact: mjgellings@msn.com

July 27
Soda Springs Field Day. Contact: steveh@uidaho.edu

July 28
Ashton Field Day. Contact: ellis@uidaho.edu

August 5
UI Tetonia Field Day. Contact: tetonia@uidaho.edu

Spring Wheat Planting Nears Completion

Idaho's spring wheat planting is 91% completed in N. Idaho.

Southwest and South-Central Idaho are reporting 100% completion and Eastern Idaho has 10% left to plant.

The winter wheat crop is rated 91% good to excellent and 9% rated fair.

The Spring wheat crop is rated 84% good to excellent and 16% fair.

Idaho Winter Wheat Production Up 11 Percent

Idaho’s 2010 winter wheat production is forecast at 62.9 million bushels, 11 percent higher than last year, and 5 percent above the 2008 crop. Based on May 1 conditions, yield is estimated at 85.0 bushels per acre, up 4 bushels from last year. Acres expected to be harvested are set at 740,000 acres, an increase of 40,000 acres from 2009.

Nationally, winter wheat production is forecast at 1.46 billion bushels, down 4 percent from 2009. Based on May 1 conditions, the United States yield is forecast at 45.9 bushels per acre, up 1.7 bushels from the previous year. Expected grain area totals 31.8 million acres, down 8 percent from last year.

As of May 2, sixty-eight percent of the United States winter wheat crop was rated in good to excellent condition, 21 points above the same week in 2009, and heading had reached 27 percent in the 18 major producing states, 4 percentage points behind the 5-year average, Hard Red Winter, at 960 million bushels, is up 5 percent from 2009. Soft Red Winter, at 283 million bushels, is down 30 percent from last year. White Winter is up 7 percent from last year and now totals 215 million bushels. Of this total, 17.0 million bushels are Hard White and 198 million bushels are Soft White.

Wheat Outlook -- Syria, Iraq, Iran and Afghanistan

SYRIA: Record Wheat Production Outlook in 2010/11
After several drought-affected growing seasons, Syria appears poised to produce a record winter grain harvest in 2010/11. Above normal rainfall over the bulk of the winter growing season, as well as warmer than normal temperatures, provided generally ideal grain growing conditions. Crop development was robust, with satellite imagery in April revealing that the majority of the grain belt was covered by unusually lush wheat and barley crops.

IRAQ: Near-Normal Wheat Production Outlook in 2010/11
A resurgence in winter grain cultivation in northern Iraq, after two consecutive years of drought decimated the region, is enabling the country’s grain production to rebound to near-normal levels in 2010/11. The rebound is especially pronounced in the governorate of Ninawa, historically the breadbasket of Iraq, which reportedly increased winter grain (wheat and barley) acreage by 370 percent this year following unusually favorable autumn rainfall which blanketed parched farmland with ample moisture. Highly beneficial rainfall and warmer than normal temperatures through much of the winter growing season provided generally ideal grain growing conditions throughout northern Iraq this year, ensuring a successful winter grain harvest. Crop development in Ninawa, Arbil, Dahuk, Sulaymaniyah, and At-Tamin was especially robust, with satellite imagery in April revealing unusually lush wheat and barley crops.

IRAN: Above-Average Wheat Production Outlook in 2010/11
Like its neighbors to the west in Iraq and Syria, Iran has experienced two consecutive years of drought and reduced winter grain harvests. As a result, the country has had to resort to record-level grain imports to satisfy domestic demand for food and feed grains and to rebuild stocks. The current 2010/11 winter grain growing season is turning out to be much more successful, with expectations for a substantial increase in both wheat and barley production. Iran’s winter grain growing regions are widely dispersed. It is uncommon to have favorable conditions in virtually all primary grain growing areas, but this is the case this year.

AFGHANISTAN: Above-Average Wheat Production Outlook in 2010/11
Afghanistan is currently having its second consecutive successful wheat growing season, as plentiful autumn planting rains ensured the majority of the crop got off to a strong start. Overall grain growing conditions have been less favorable though than last year, when record crop area and yields resulted in a bumper harvest. Overall winter snowfall was substantially lower than last year, implying that total irrigation supply and irrigated crop yields will be reduced. In addition, well-above normal temperatures blanketed the major lowland wheat growing regions, causing heat stress and increased crop water demand. Satellite imagery of most of the country’s lowland irrigated cropping areas shows a marked decrease in crop vigor compared to last year, and indicates crop yield and production will be substantially lower. USDA is currently forecasting 2010/11 wheat production in Afghanistan at 3.7 million tons, 13 percent below last year’s record level but 18 percent above average.

Lock Closure Vital to PNW Wheat Flow; Helping Buyers Adjust

U.S. Wheat Associates (USW) noted in the April 15, 2010, issue of Wheat Letter that it is helping overseas wheat buyers adjust to the Columbia Snake River System (CSRS) maintenance closure beginning Dec. 10, 2010 (http://bit.ly/d78nFQ). This forward-looking upgrade assures that the critical CSRS will remain operational for decades ahead. The U.S. wheat industry is the world's most reliable supplier, and this maintenance project is just one of several improvements in the Pacific Northwest (PNW) that will serve you even more effectively and efficiently, including:
•New construction and expansion of several elevators;
•Completion of the Columbia River channel deepening project in December 2010 to allow 60,000-metric-ton-capacity vessel load-outs.

Ready to Help. USW recognizes that the river system upgrade will create some challenges for customers taking delivery of U.S. wheat off the PNW. We take any concerns seriously and can help you manage possible impact before, during, and after the lock closure. USW believes the industry will consider every logistical option to keep wheat, especially soft white wheat, flowing to export elevators. Buyers can help themselves by preparing for the maintenance period -- and USW stands ready to help.

The Supply Chain is Getting Ready. About 75 percent of the four million metric ton (MMT) annual export movement of PNW soft white (SW) and club wheat is river barged on the Columbia, Snake, and Willamette Rivers. Exporters, grain originators, barge operators, railroads, and trucking lines are all working to minimize interruptions and costs. Alternatives include:
•Pre-positioning the maximum number of barges to load SW before the closing;
•Moving more rail cars and locomotives into the region to handle increased demand from rail-loading interior elevators;
•Pre-positioning more SW and club in Columbia River District export elevators before the closure;
•Loading SW in barges from Mid-Columbia Producers elevators below The Dalles, OR, during the closure;
•Coordinating truck and rail delivery from the Willamette Valley, south of Portland.

Preparation Will Also Benefit Buyers. USW believes there will be sufficient volume of all U.S. wheat classes normally available from the PNW. Buyers can also help lower the risk of interruption and minimize potential costs by taking a longer view of their purchase needs. USW advises its customers to consider:
•Consulting with PNW exporters as early as possible to help give exporters more time to respond to your needs and to manage their logistical challenges;
•Meeting soon with USW to identify buying strategies that fit specific needs and capabilities;
•Analyzing inventory needs and logistical capabilities;
•Increasing SW wheat and/or flour storage;
•Increasing SW purchase cadence in the harvest and immediate post-harvest period (July – November) before the closure;
•Deferring as an offset some hard red winter (HRW) and hard red spring (HRS) shipments from the immediate post-harvest period into the maintenance period.

Working Together. As an objective voice for U.S. wheat producers, USW greatly values the trust customers have in our products and service. Our focus remains fixed on helping buyers, millers, and food processors learn how to grow their enterprises using our wheat. Working together, we believe we can help ease any concerns related to the closure and strengthen our partnership. We look forward to assisting you now, as always.

Many Factors Influence Wheat, Corn & Soybeans

According to University of Illinois agricultural economist Darrel Good, a large number of factors continue to exert some influence on the prices of wheat, corn and soybeans.

"A different factor appears to take the spotlight on an almost daily basis," Good said. "Some developments have been positive for crop prices, some negative. As a result, prices continue to be very choppy."

Over the past month, November 2010 soybean futures have traded in a $.65 range, December 2010 corn futures have varied by as much as $.28, and July 2010 Chicago Board of Trade wheat futures have been in a $.40 range.

Those ranges since March 1 have been much larger for December corn ($.48) and July wheat ($.75).

"Part of the fluctuation in crop prices has been associated with fluctuation in the financial markets, which in turn reflect fluctuations in expectations about economic recovery and the demand for commodities," Good said.

Excluding the extreme spike low of May 6, the Dow Jones Industrial Average has traded in an 800-point range over the past month.

"Domestic economic growth is under way, and more jobs than expected were created in April, but the unemployment rate remains very high," Good said. "Internationally, the financial collapse in Greece and growing concerns about Spain and Italy had negative impacts on equity markets. However, the weekend announcement of a debt relief package for financial troubled European countries was greeted with a sharp rebound in these markets."

Good said currency values have also been in play in the commodity markets to the extent that exchange rates are thought to influence commodity imports and exports.

The U.S. dollar index reached a recent low in December 2009 and increased by more than 10 percent into early May.

Idaho Crop Progress Update

USDA reported Idaho’s Winter Wheat crop is rated 91 percent good to excellent and 6 percent of the crop is rated fair.

Cool weather accompanied by frost, snow, and wind caused major concerns for many crops throughout the state. Most of the spring wheat has been planted with small pockets in the North and East lagging behind due to extreme weather conditions.
More information about Idaho’s Crop Progress and Condition can be found at http://www.nass.usda.gov/Statistics_by_State/Idaho/index.asp

Idaho Winter Wheat Production Up 11 Percent from Last Year

Idaho’s 2010 winter wheat production is forecast at 62.9 million bushels, 11 percent higher than last year, and 5 percent above the 2008 crop, according to the National Agricultural Statistics Service. Based on May 1 conditions, yield is estimated at 85.0 bushels per acre, up 4 bushels from last year. Acres expected to be harvested are set at 740,000 acres, an increase of 40,000 acres from 2009.

Nationally, winter wheat production is forecast at 1.46 billion bushels, down 4 percent from 2009. Based on May 1 conditions, the United States yield is forecast at 45.9 bushels per acre, up 1.7 bushels from the previous year. Expected grain area totals 31.8 million acres, down 8 percent from last year. As of May 2, sixty-eight percent of the United States winter wheat crop was rated in good to excellent condition, 21 points above the same week in 2009, and heading had reached 27 percent in the 18 major producing States, 4 percentage points behind the 5-year average.

Hard Red Winter, at 960 million bushels, is up 5 percent from 2009. Soft Red Winter, at 283 million bushels, is down 30 percent from last year. White Winter is up 7 percent from last year and now totals 215 million bushels. Of this total, 17.0 million bushels are Hard White and 198 million bushels are Soft White.

Safety Net for Farmers or Rural U.S.?

Congress has largely ignored proposals from the Obama administration to cut program payments to some of the nation's larger farms. But, Secretary of Agriculture Tom Vilsack's push to spend more money on rural development and spend less on farm programs is drawing some ire from lawmakers who want to preserve the current safety net for commercial farmers.

The $7.7 billion or so paid in commodity subsidies in 2009 helped lower overall grocery bills for Americans, according to defenders of farm program payments to farmers. (DTN file photo) Vilsack has been accused of promoting "bedroom communities" and wasting precious budget resources to prop up the urban locavore movement at the expense of production agriculture. Last week, Sens. Saxby Chambliss, R-Ga., Pat Roberts, R-Kan., and John McCain, R-Ariz., wrote a letter complaining that USDA spent $65 million last year on the "Know Your Farmer, Know Your Food" program and is expanding the program this year.

"Unfortunately, this spending doesn't appear geared toward conventional farmers, who produce the vast majority of our nation's food supply, but is instead aimed at small, hobbyist and organic producers whose customers generally consist of affluent patrons at urban farmers markets," the senators wrote.

Just where did USDA get the authorization to spend money in that way, the senators want to know.

The complaint letter comes as Vilsack has become more vocal about the crisis rural America faces and suggests it could better be solved by focusing more on rural economic development and less on farm programs.

It's an argument that was made in 2005 by a report from the Federal Reserve Bank of Kansas City -- that farm program payments don't exactly translate into economic prosperity. In fact, the report showed that the counties most reliant on farm payments had stagnant job growth or outright job losses from 1992-2002, a time of generally good economic times.

"Farm payments are not providing a strong boost to the rural economy in those counties that most depend on them," the KC Fed report stated. "Job gains are weak and population growth is actually negative in most counties where farm payments are the biggest share of income."

To see the full report, visit:

http://www.kansascityfed.org/…

But when Vilsack testified two weeks ago before the House Agriculture Committee, his stance that the next farm bill should place more emphasis on the overall economic needs of rural America drew fire from lawmakers, notably Ranking Member Frank Lucas, R-Okla., who suggested the Obama administration wants to turn rural America into "bedroom communities."

"If the administration has their druthers, it would be a farm bill only in title, not in substance," Lucas told a group of agricultural reporters last week. "Are we going to have a farm bill that helps farmers and ranchers continue to produce food and fiber to meet the needs of this country and the world, or are we going to have a farm bill that focuses on making sure people who happen to live in the countryside can find jobs somewhere else so they can drive home at night, drive to work the next day and drive home?"

Lucas also repeated a point made by lawmakers when the Bush administration put out a farm bill that also tried to cut spending on commodity programs. "In my tenure in this body, it's Congress that has written the farm bill," he said.

Farm Production Expenses Comparable to Last Year

The overall price index for U.S. farm production inputs was unchanged this March compared to a year ago. The USDA reports that price declines in fertilizers, feed, seed and chemicals were off-set by increases in fuel and machinery costs. Fertilizer prices showed the largest decline, while fuels prices increased the most from a year ago.

Compared to March 2009, the U.S. prices paid index for fertilizer was down 25.6 percent. The decrease can be attributed to a decline of 24.5 percent for mixed fertilizer, 22.4 percent for nitrogen, and 35.0 percent for potash and phosphate.

The U.S. prices paid index for fuels saw a 44.5 percent increase from March 2009. Diesel prices increased 51.0 percent, gasoline 43.2 percent, and L.P. gas 16.4 percent from the previous year. The U.S. prices paid index for feed saw a decline of 5.4 percent from March 2009. Prices fell for the following feed categories feed grains, hay/forage, complete feeds and supplements, but were up for concentrates.

Hay and forages realized the largest decrease at 15.9 percent. Feed grains were down 7.3 percent, complete feeds 5.2 percent, supplements 1.9 percent, while concentrates were 2.2 percent higher.

The national seed price index declined 6.3 percent from March of last year. Field crop seed prices were 5.9 percent lower, while grass and legume seed cost dropped 13.7 percent compared to a year ago. U.S. chemical prices were 4.6 percent lower compared to March 2009. Herbicides were down 8.3 percent, fungicides were down 0.6 percent, while insecticides were up 2.5 percent.

The U.S. prices paid index for machinery rose 2.7 percent from March 2009. The price indices both for tractors and self pro-pelled machinery were up 2.2 percent, and other machinery prices increased by 3.9 percent.

WATER SUPPLY OUTLOOK IMPROVES THANKS TO APRIL SHOWERS

Late April's cool, moist weather held off the snow melt and even added to the mountain snowpack according to the latest snow survey conducted by the Natural Resources Conservation Service at the end of April. The spring precipitation boosted the water supply outlook but did not solve the moisture deficit problem which has plagued Idaho all winter.

"If the cool and wet conditions has not occurred in April, snowpacks across the board would have melted out much earlier," said Ron Abramovich, Water Supply Specialist for NRCS. "Rivers would have peaked too soon."

"Most of Idaho's irrigators should be able to make it through this season. Some surface water shortages are likely in central and southern Idaho basins including the Big Wood, Big Lost, Little Lost, Oakley and Salmon Falls and for users that rely on natural streamflow levels," Abramovich added.

April precipitation was above average across nearly the whole state. Monthly precipitation ranged from 94% of average in the Big Lost basin to 140% at the Upper Snake River headwaters and the Bear River drainage.

Current snowpack levels across the state are a mixed bag - anywhere from 45% to 85% of average. The low-elevation snowpack in some places was already melted by mid-April. Snow melt in the higher elevations started in early April but cool temperatures combined with precipitation temporarily halted the melt and even added water content to the snowpack.

The wet, cool weather is helping to refill reservoirs and delay irrigation demand, but not all reservoirs will fill. Of Idaho's 28 major storage facilities, 22 are reporting average or better storage for April 30, and 11 of them are nearly full.

There is still enough snow in the central, northern and upper Snake basins to produce another streamflow peak.

"Reservoir operators are hoping the peak streamflows occur when they normally do in the latter half of May," said Abramovich. "That way they can maximize water storage and delivery for all the various users and uses." For information on specific reservoirs, please refer to the May Water Supply Outlook Report posted online.

April streamflow volumes varied across the state from near average runoff volumes to only half of average. The streamflow forecast for the May-July period remains low with volumes ranging from 45-75% of average.

Timely rains over the next two months would improve this year's water supply. "Additional precipitation and cool temperatures this spring can make working the fields difficult but will help stretch the limited water supplies," Abramovich said.

For the complete May Idaho Water Supply Outlook Report, visit http://www.id.nrcs.usda.gov/snow and click on the 'Water Supply' link.

GOOD LAND STEWARDS REWARDED THROUGH USDA PROGRAM

Agriculture producers could be rewarded for conserving natural resources on their land. The Conservation Stewardship Program, administered by the Natural Resources Conservation Service, encourages producers to maintain and initiate conservation practices with monetary incentives. There is a continuous sign-up for this program.

“The Conservation Stewardship Program recognizes those who are already doing work to conserve their land and are willing to undertake additional activities,” said Jeff Burwell. “We see this as a great opportunity for producers to get rewarded for their conservation efforts.”

The Conservation Stewardship Program (CSP) offers two payment types: an annual payment for maintaining existing conservation practices and adopting new ones and a supplemental payment for adopting resource conserving crop rotations. The per acre payments range from $12 to $22 for cropland, $7 to $ 14 for pasture, $5 to $10 for rangeland, and $6 to $12 for forestland. A supplemental payment, available only for cropland, adds an additional $12 to $16 for the cropland rotation.

The payment cap is $40,000 per year with a $200,000 maximum for the five year contract period.

“CSP is voluntary and open to both agriculture and forestry producers,” Burwell said. “When applicants are approved, they work with NRCS to develop a conservation stewardship plan outlining current conservation activities and new treatments for resource concerns on their land”

The first step in applying is completing a self-screening checklist to determine if the Conservation Stewardship Program is suitable for you. The checklist is available at NRCS field offices and on the NRCS Web site at http://www.nrcs.usda.gov/programs/new_csp/special_pdfs/CSP_Producer_Self-Screening_Checklist.pdf

The application process requires that you
1.) Have farm records established with USDA Farm Service Agency,
2.) Be the operator of the land,
3.) Provide evidence that they have control of the land for 5 years,
4.) Provide a map delineating their entire agriculture or forestry operation.

“This information needs to be in place before an application can be accepted. After it’s accepted, the information is verified before the application is approved.” Burwell said.

Applications will be ranked by estimating environmental performance based on the producer’s current and proposed conservation activities.

After establishing an applicant’s eligibility, NRCS field staff field verify application information. Once the information is verified and the application has been tentatively approved for funding, the applicant must develop a conservation stewardship plan. A producer must treat at least one resource concern and one priority resource concern during the length of their five-year contract.

Eligible applicants may include individual landowners, legal entities, and Indian tribes. Eligible lands include cropland, grassland, pastureland, rangeland, non-industrial private forestland, and agricultural land under the jurisdiction of an Indian tribe. Land enrolled in the Conservation Security Program, Conservation Reserve Program, Grasslands Reserve Program and Wetlands Reserve Program is ineligible for the new Conservation Stewardship Program.

For information on the program, eligibility, or a list of conservation activities, visit your local NRCS office. To find the office nearest you, look for the Natural Resources Conservation Service in the government pages of the phonebook or on the NRCS Web page http://www.nrcs.usda.gov/ under “Find a Service Center.”

Pending FTAs Vital to Wheat Industry, Wheat Producers

Wheat growers and other agricultural producers are in Washington this week to again emphasize to Administration and Hill leaders how vital it is to finalize pending free trade agreements with Colombia, Panama and South Korea.

The wheat industry’s top trade priority remains the Colombia agreement, which is key to maintaining more than $90 million in wheat exports to Colombia every year. U.S. wheat faces competition in Colombia from Argentina, which enjoys advantages from the Mercosur trade agreement allowing for duty-free access, and Canada, which is poised to soon approve its own free trade agreement.

Producers-members of organizations representing wheat, corn, beef and pork, along with the American Farm Bureau Federation, spoke to reporters at the National Press Club at noon.

Speaking at the press conference on behalf of the U.S. wheat industry was Dale Schuler, a former NAWG president and current chairman of the NAWG/U.S. Wheat Joint International Trade Policy Committee.

“The simple fact is that the U.S. is losing market share in Colombia,” Schuler told the assembled media. “We hear from our Colombian buyers that our share of that market could fall as low as 30 percent if Canada approves its free trade agreement before we finalize ours. We can’t let that happen.”

U.S. Wheat Associates estimates that, at current export prices, failure to ratify the U.S.-Colombia FTA could lead to an annual loss of more than $92 million for the U.S. wheat industry.

On the other hand, analysis by the Food and Agricultural Policy Research Institute (FAPRI) suggests that if the Colombia FTA were in effect now, U.S. wheat exports would be 20 million bushels greater and the farm price would be 10 cents per bushel higher.

IRS To Closely Screen Farmers

Look for IRS to soon screen farmers more closely for unreported income and unfiled returns. A Treasury Department study of IRS correspondence with taxpayers found IRS examiners missed collection of over $16 million in 2007 in unpaid taxes of sole proprietors because auditors didn’t check for unfiled returns and unreported income. About 85%-90% of U.S. farms are sole proprietorships. However, doing those checks during a correspondence audit would slow things down. Instead, IRS will adjust its selection process to sift out returns likely to turn up such problems and send them to revenue agents, who can better handle such cases.

Pending Free Trade Agreements Vital to Wheat Industry, Wheat Producers

Wheat growers and other agricultural producers are in Washington this week to again emphasize to Administration and Hill leaders how vital it is to finalize pending free trade agreements with Colombia, Panama and South Korea.

The wheat industry’s top trade priority remains the Colombia agreement, which is key to maintaining more than $90 million in wheat exports to Colombia every year. U.S. wheat faces competition in Colombia from Argentina, which enjoys advantages from the Mercosur trade agreement allowing for duty-free access, and Canada, which is poised to soon approve its own free trade agreement.

Producer members of organizations representing wheat, corn, beef and pork, along with the American Farm Bureau Federation, spoke to reporters at the National Press Club at noon.

Speaking at the press conference on behalf of the U.S. wheat industry was Dale Schuler, a former National Association of Wheat Growers (NAWG) president and current chairman of the NAWG/U.S. Wheat Associates Joint International Trade Policy Committee.

“The simple fact is that the U.S. is losing market share in Colombia,” Schuler told the assembled media. “We hear from our Colombian buyers that our share of that market could fall as low as 30 percent if Canada approves its free trade agreement before we finalize ours. We can’t let that happen.”

U.S. Wheat Associates estimates that, at current export prices, failure to ratify the U.S.-Colombia FTA could lead to an annual loss of more than $92 million for the U.S. wheat industry.

On the other hand, analysis by the Food and Agricultural Policy Research Institute (FAPRI) suggests that if the Colombia FTA were in effect now, U.S. wheat exports would be 20 million bushels greater and the farm price would be 10 cents per bushel higher.

Domestic Wheat Prices Drop in April

Prices for most wheat classes dropped in April, except for Hard Red spring (HRS) which increased $8/ton. Hard Red Winter (HRW) quotes fell $10/ton, White Wheat (SWW) dropped $6/ton and Soft Red Winter dropped $12/ton. The price gap between HRS and other classes continued to grow this month ahead of spring planning and reflecting continued tightness of higher quality HRS.