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[AgriLife Today] Low market prices already affecting 2016 crop outlook

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Modular bales of cotton awaited ginning last year at the Port of Harlingen. Low commodity prices could result in more cotton acres planted in the Lower Rio Grande Valley this year. (AgriLife Communications photo by Rod Santa Ana)

By: Rod Santa Ana

EDINBURG — As Rio Grande Valley farmers prepare to plant seeds in the coming weeks for this year’s row crops, many are scratching their heads over what to plant, according to Brad Cowan, the Texas A&M AgriLife Extension Service agent for Hidalgo County.

“Commodity prices are not good,” he said. “That poses a huge challenge; growers don’t know what to plant. Right now they’re hoping something will happen to bump up the price on a crop before planting.”

Commodity prices are low worldwide, thanks to a “perfect storm” in the global economy, according to Luis Ribera, an AgriLife Extension agricultural economist in College Station.

“There’s a worldwide economic slowdown,” he said. “China is not importing as much commodities as they used to. Overall, we had a good production year last year, so commodity stockpiles are high. That’s created a perfect storm for a drop in commodity prices across the board.”

But farmers farm, and something’s got to go in the ground, Cowan said.

“Valley growers have to plant something. They try hard to plant the crop that fits their operation and returns the most profit,” he said

For some, that will likely be cotton.

“We’re hearing that there will be more cotton this year than the 65,000 acres planted in the Valley last year,” he said. “One reason is cotton growers can try to compensate for low prices by increasing their yields.”

Cowan said with improved cotton varieties and the success of boll weevil eradication efforts, higher yields are indeed possible.

“We’ve been having good cotton yields lately, the last two years,” he said. “Some growers have managed to produce four bales per acre. With each bale weighing about 500 pounds, some have been meeting that 1-ton cotton goal that before the decline in boll weevils was just a dream here.”

Harvesting three to 3.5 bales per acre for irrigated cotton is no longer rare, Cowan said.

“To produce four bales per acre, a lot of things have to fall in place just right,” he said. “But without having to worry about boll weevils, getting three bales per acre is becoming more common. There are more bolls of cotton on the plant at harvest when boll weevils aren’t around to knock them off.”

On the plus side, rains that fell throughout the fall are going to help, no matter which crop is planted.

“Many growers have good soil moisture to work with this year,” Cowan said. “That helps get a crop off to a good start, because some years the soil is so dry that it’s a real challenge to grow a healthy crop.”

A wet year may mean growers will plant more corn, he said.

“Corn acreage here may see an increase because some dryland growers who don’t have the ability to irrigate will plant corn,” Cowan said. “We don’t usually recommend growing corn on dryland acres, but in a wet year some growers will roll the dice on that one.”

One crop that has been steadily increasing in acreage in the Valley over the years will likely not be a candidate for growers this year.

“Nobody is offering sunflower contracts. Last year we planted about 30,000 acres, a lot of it in the McCook area, but this year there seems to be an oversupply of it. Those companies that usually buy sunflowers are just not buying, but hopefully that market will come back soon.”

Sesame also seems to be stored in large enough quantities that acreage here will also shrink. But some soybeans will be planted, Cowan said.

“Prices are down for soybeans from last year, as well as other feed grains,” he said. “But growers should consider planting soybeans because it’s a good rotation crop that helps replenish the soil.”

Grain sorghum, one of the area’s largest crops, is also a tricky proposition.

“The wild card there is the sugarcane aphid, which can drastically reduce yields,” Cowan said. “In 2014, growers here had to spray a lot of insecticides to manage populations, but not in 2015 because insect populations were low. By contrast, North Texas growers had to spray heavily in 2015.”

As a result of not knowing what insect pressures 2016 will bring, growers are considering dropping grain sorghum this year, he said.

It’s not a rosy picture, but Cowan said there is always hope.

“Something could happen to improve prices before these row crops go to market. You never know; it could very well happen.”

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Farm & Ranch

Meanwhile, Back at the Ranch…

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By Rayford Pullen | [email protected]

When May arrives, we start thinking about weed control. With two years of drought under our belts, grass grazed short and hay stocks depleted, what we do now will influence our forage conditions for the entire year. With 75 percent of our annual warm season forages made by July 15 in North Texas, we need to get the grass growing while the sun shines.

Speaking of the sun shining, the biggest deterrent to growing lots of grass is restricted sunlight, and the biggest sun blockers we have are weeds.

Have you noticed weeds are normally just slightly taller than your grass and are probably blocking 90 percent of the sunlight from reaching the grass itself? So obviously, we need to improve conditions, so sunlight reaches the plants we want to grow.

With grass extremely short, more sunlight is hitting the soil surface now, which in turn results in more weed seed germinating. With the moisture we have received, we expect an abundance of weeds this year.

To read more, pick up a copy of the May issue of NTFR magazine. To subscribe by mail, call 940-872-5922.

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Farm & Ranch

Land Market Report: March Land Sales

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By Jared Groce

Rural land sales are continuing on a steady pace for early spring, with prices holding very strong with the sell-to-list price ratios remaining very high, even on properties that have been on the market for a longer than usual time period. The total number of transactions are picking up once again as the spring selling season kicks off, and the average acreage continues to decrease.

Larger acreage properties seem to be in higher demand than smaller properties currently, with many buyers simply parking cash in real estate to hedge against inflation. Interest rates seem to have settled down and most experts agree that rates will be reduced by the fed this year. Some lenders have programs in place that allow the buyer to reduce their rates without having to go through a full refinance ordeal.

To read more, pick up a copy of the May issue of NTFR magazine. To subscribe by mail, call 940-872-5922.

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Farm & Ranch

Texas FFA State Vice President Weston Parr

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Future Farmers of America was founded by a group of farmers in 1928 with the mission of preparing the next generation of agriculture. It has done just that during its 95-year history, as the organization works to give back to others by following its motto, “learning to do, doing to learn, earning to live, living to serve.”

FFA is an organization made up of state associations, and at the helm of the Texas FFA is a team of 12 officers representing their respective areas within the Lone Star State. These individuals dedicate a year of their lives as they serve members, provide leadership, and work together with the state staff and board of directors to develop policy and lead the organization of over 177,000 members.

North Texas is represented by Area IV and Area IV, stretching from Wilbarger County to Bell County and from Runnels County to Grayson County. This year, those chosen to lead this great area are State President Isaac Hawkins Jr., Area IV, and State Vice President Weston Parr, Area V.

Parr is from the Sam Rayburn FFA chapter and the Area V Association, but the leader who now serves more than 19,100 members of Area V entered the FFA organization as a shy teenager who sat in the back of the room.

“I didn’t talk to a whole lot of people. I didn’t know what I wanted to do with my life or where I could see myself, so I wasn’t involved on my high school campus,” Parr recalled.

“Then I started FFA and slowly but surely, my ag teachers worked me into attending more contests, meeting new people, and speaking. I remember the first time I gave an officer speech to my chapter. I can still remember how embarrassing it was. To see the progression from that moment to speaking on stage at the state convention in front of thousands of people. Now I feel like I can enter the industry I want and be successful all because of what FFA afforded me for five years.”

There is not much Parr did not do during his time in high school. His contest participation included chapter conducting, wool judging, cotton judging, wildlife, and job interview, but his favorite was extemporaneous speaking, which he did not start until his senior year of high school.

“I wish I could go back to my freshman, sophomore, and junior years and start that sooner. I think if I had more time, I would have been more successful than I already was, but that was something I didn’t realize I liked at the time. I’m not naturally somebody who likes to speak in public, but it was actually my favorite,” Parr said.

Parr won several awards during his time competing. In 2023 alone, Parr earned the Texas FFA Service-Learning Proficiency title, was a National FFA Service-Learning Proficiency finalist, and a Texas FFA Extemporaneous Speaking finalist. In addition to his CDE and LDE events during high school, he showed commercial steers at Houston, and boilers at most major shows, participated in the county show with projects in ag mechanics, showed goats from time to time, and showed heifers until graduation.

“FFA provides invaluable resources and knowledge to be successful once you leave high school and you are out of the blue jacket for the first time. I have been a part of a lot of great organizations over the years, and they are all great in their own way, but in my opinion, FFA is the most successful at producing members of society who want to go and do something with themselves,” Parr said.

He was halfway through his time as Area V Association President and attending the national convention when he began to ponder the idea of running for state office.

“This is around the time when you usually figure out if you want to go through and be a state officer or you decide that area officer is your last run. I was unsure of where I wanted to go, but I knew I didn’t want to be done with FFA. I decided maybe it would be a good opportunity not only for me to make more friendships and connections, but also to give back to the program that allowed me to be able to do what I can do today,” Parr explained.

To read more, pick up a copy of the May issue of NTFR magazine. To subscribe by mail, call 940-872-5922.

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