Production Journal

Farm Journal, Oct 5, 2007 by Roger Bernard

Leadership Shifts At USDA

Just as we went to press, USDA Secretary of Agriculture Mike Johanns resigned from his post to return to Nebraska and hit the campaign trail for the GOP nomination for the U.S. Senate. In his spot, President George W. Bush chose Deputy Secretary Chuck Conner as Acting Secretary.

Conner's career has largely been built to one day serve in this capacity. For years, the Indiana native worked on The Hill as majority and minority staff director of the Senate Agriculture Committee for Richard Lugar (R-Ind.). He has also headed up the Corn Refiners Association.

Early in the Bush administration, he was the "White House ag guy," putting him in the fray during the 2002 farm bill. In that role, he helped soothe feathers ruffled during the law-making process.

Conner has strong political skills and is not afraid to push a certain position. But he's also savvy enough to compromise--he will get the deal done instead of letting a potential deal get shoved off the table. All of that--and his first-hand production ag experience from Indiana--should serve him well as he takes charge of USDA.

A look back. A relaxed Johanns was candid as he departed Washington. In our one-on-one exit interview, he highlighted some challenges and disappointments in his tenure at USDA. Beef trade snags have clearly been a disappointment, but he cited the current prices farmers are receiving for a host of commodities as a high point.

"When I came here three years ago, everybody was talking about low prices and the huge amount of corn, soybeans, etc. that we had-- surpluses as far as the eye can see," Johanns observed. "It's so gratifying to see the prices farmers are getting today. It's allowing them to do what they've always told me they wanted to do-- farm for the marketplace."

Energy policy was an obvious focus for Johanns, particularly corn- based ethanol. But he acknowledged that folks in the livestock sector have seen pressures as a result.

"There has been some pain for livestock producers. The president has acknowledged that. I have acknowledged that," Johanns said. "For cattle, dried distillers' grains have been positive."

For those who don't live close to ethanol plants, he added, cattle prices have remained relatively high, which has eased the pain.

One potential energy surprise yet to materialize: Johanns said a higher renewable fuels standard could be included in the next farm bill.

He also provided insight on the Conservation Reserve Program (CRP) front. When discussing whether or not to allow program participants to exit their CRP contracts early without penalty, Johanns noted that not every acre would necessarily turn into an acre of corn, soybeans or wheat. He also revealed that he was "not close to pulling the trigger" on an early-out for CRP land to let winter wheat producers sow more acres this fall.

Before he left Washington, Johanns was criticized for exiting before the farm bill was done. His response: "Some are taking a partisan, political shot on this. I see it as high praise. When I came into this job, they knew I'd been governor of Nebraska, and that's all they knew. They didn't know if I knew farm policy from a sack of beans. Now they're saying I'm an important voice in farm policy. I think I've had a special opportunity to speak for farmers and ranchers."

BASF Pumps Its Pipeline

In September, Germany-based chemical company BASF hosted journalists from around the world to an- nounce new crop protection products in its pipeline. The company revealed new chemistries that will keep constantly adapting weeds, insects and fungal diseases in check.

"We are currently working on seven new active ingredients and a new herbicide tolerance project," says Michael Heinz, president of BASF ag products division. "Roundup Ready crops changed the landscape of crop protection, making it cheaper and easier to control weeds. While some companies virtually abandoned their research and development of new chemistries, we chose not to. Now that we are seeing more weeds that are resisting Roundup, it is clear our decision to continue investing in new chemistries will pay off for both BASF and our farmer-customers."

Of interest to U.S. farmers is a herbicide in development currently referred to as BAS 800 H. The entirely new chemistry promises efficient and economical control of problematic weeds in a variety of crops, including corn, soybeans and small grains. Due to the broad swath of crops that it can be sprayed on, the company expects few, if any, crop rotation restrictions. The new chemistry can be applied to conventional nongenetically modified crops or partnered with Roundup Ready systems in preplant, burn down and post- emergence applications. Pending Environmental Protection Agency approvals, BASF thinks this "blockbuster" herbicide of the future will be ready for U.S. farmers by 2009 or 2010.

In the meantime, BASF continues riding high on the success of its Headline fungicide. Known as a popular disease fighter on an array of crops, Heinz says some of the biggest sales gains in 2007 came from U.S. corn farmers who sprayed the product to capitalize on the greening effect BASF has trademarked as "Plant Health." By reducing the corn plant's physiological ethylene response to stresses, such as heat, drought or cold, Headline has been shown to significantly boost corn yields in some cases, even in the apparent absence of fungal disease pressure. This year, BASF marketed Headline via Monsanto Company seed dealers looking for a yield edge. The strategy paid off; BASF reported more than 7.4 million acres of corn sprayed with Headline in 2007.