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August 13 August 19, 2002
C.O.R.N. 2002-26
In This Issue:
A) Two Golden Rules For Scn Management
B) Pricing Standing Corn For Silage
C) More On Assessing Potential For Nitrate Problems In Corn
D) 2002 Ohio Wheat Performance Trials
E) Herbicide Restrictions For Corn And Soybeans As Forage Crops
F) Farm Tax Management In A Dry Year
G) Net Operating Loss Carrybacks And
Last week Nancy Taylor of the C.Wayne Ellet Diagnostic
Clinic reported some alarming Soybean cyst nematode (SCN) egg counts from two
samples this summer:Wyandot county, 25,600 eggs/200 cc soil. Crop history: soybeans
this year, corn 2001, soybeans 2000.Wood county, 36,000 eggs/200 cc soil. Crop
history: soybeans this year and last.
As reported in some earlier CORN articles, we have received samples early in
the season with very high numbers of females on the roots. We have now had SCN
in the state of Ohio for a number of years and they must like it here because
SCN is building in numbers. How can we manage our fields to keep the populations
below the economic thresholds?
1. NEVER EVER, plant soybeans with SCN resistance in fields with egg counts greater than 5,000 eggs per cup of soil. The great majority of SCN resistance is derived from one source, the soybean line PI88788. The resistance level observed in the line is dependent on the SCN population that attacks it. This resistance is defined by the number of females that establish a feeding site and produce eggs. In a susceptible soybean, there will be a 100 or more females that develop and produce eggs on the roots, where in a line with PI88788 resistance, there maybe only 8 or 9. However, this is for a SCN population for which PI88788 has effective resistance. The reality is that there are those 8 or 9 females, who produce anywhere from 100 to 250 eggs which are not slowed down by the PI88788 resistance and build up in numbers each time a variety with PI88788 resistance is planted in that field again. The only sure way to reduce SCN numbers is to rotate to non susceptible crops.
2. Do not plant SCN resistant beans in fields where SCN counts are 0 or the
field has never been sampled.
This is like taking an antibiotic when you don't need it - because there may
come a time that you will need the resistance but it will not work. Unfortunately-we
have some Ohio data where a producer did this. He planted beans with the SCN
resistance continuously for 7 years. The field was sampled every year for SCN
and by the end of the third year the numbers of eggs in a cup of soil began
to increase. From the fourth year, the increase in the number of eggs per cup
of soil was at the same level as beans with no resistance (6 to 10 fold increase
each year). Again crop rotation is needed to reduce levels of SCN.
We should not underestimate the impact that the root rotters have had on soybeans this year. But these fungal root pathogens can usually be managed with good cultural practices and seed treatments. SCN can attack plants all through the year and economic losses from SCN on an annual basis can be substantial if the appropriate control measures are not taken.
Those two SCN infested fields described above averaged approximately 30,000 eggs per cup of soil. The farmers could plant wheat and reduce the populations to 15,000 eggs per cup of soil or a corn crop will drop the populations to 7,500. Additionally a second year of corn will drop populations to 3,750 eggs per cup of soil. Follow this with one year of SCN resistant beans including a soil sample to check the counts to be sure that the resistance is effective followed by a wheat crop on the next round will drop counts to about 2,000. Plant another corn crop to drop the populations of SCN even further, perhaps to 1,000 eggs per cup of soil. This producer can then plant a susceptible bean variety again. But this field will always have SCN and should be managed with a good rotation including wheat. If there is a market for alfalfa, then the SCN populations may drop by as much as 70%. The take home message is rotate, rotate, rotate.
To determine an accurate price for standing corn one needs to know its nutrient composition (fiber, energy, protein) and the costs of other feedstuffs in the local area and then use statistical methods to determine its value. A computer program (SESAME) written by Normand St. Pierre (Dept of Animal Sciences, OSU) can make these calculations and was used to determine the value of the corn silage (this program is available for purchase and your county extension agent may be able to run the program for you). Most people will not know the nutrient composition of the standing corn. Drought stressed corn usually has higher fiber (we assumed 50% NDF), lower energy (I assumed 0.60 Mcal/lb) and slightly higher protein (we assumed 8.8%) than normal corn silage.
Actual composition could vary significantly from the values we assumed. We obtained prices for alternative feeds from venders near Wooster OH. Actual prices could vary substantially based on local markets. SESAME calculates the value of a feed when it is actually fed. Standing corn must first be chopped, then ensiled, and then fed. Costs, losses and risk are associated with each of these steps. The cost of chopping usually ranges from $4 to $7 per ton of silage (assumed to contain 35% dry matter). Chopping costs per ton decrease as yields increase. Because of lower yields caused by drought, we assumed a chopping charge of $6/ton (35% dry matter). Storage costs range from $3 to $4 per ton (we used a value of $3.50/ton). On average about 10% of the material put into a silo is lost via fermentation (shrink) and we assumed a 10% loss during fermentation. Based on all these assumption, drought-stressed standing corn has a value of approximately $18/ton (35% dry matter) to a dairy farmer. A reasonable range is $16 to $20/ton. As a comparison average (not drought-stressed) corn silage (45% NDF, 0.66 Mcal of energy/lb, and 8% protein) with average yield and using the same prices for alternate feeds has a value of approximately $22/ton (35% dry matter) The last factor affecting the value of standing corn is risk. A farmer purchasing standing corn is assuming risk (is the corn high in nitrates?, will it ferment properly?, etc.). We do not know how to put a value on risk but the price a buyer should be willing to pay should be less than the actual calculated value.
Severe drought stress across Ohio has raised questions
concerning the potential for toxic levels of nitrates in corn harvested for
silage. Nitrates absorbed from the soil by plant roots are normally incorporated
into plant tissue as amino acids, proteins and other nitrogenous compounds.
Thus, the concentration of nitrate in the plant is usually low. The primary
site for converting nitrates to these products is in growing green leaves. Under
unfavorable growing conditions, especially drought, this conversion process
is retarded, causing nitrate to accumulate in the stalks, stems and other conductive
tissue. The highest concentration of nitrates is in the lower part of the stalk
or stem. For example, the bulk of the nitrate in drought-stricken corn plants
can be found in the bottom third of the stalk. If moisture conditions improve,
the conversion process accelerates and within a few days nitrate levels in the
plant returns too normal.
The highest levels of nitrate accumulate when drought occurs during a period
of heavy nitrate uptake by the corn plant. A drought during or immediately after
pollination is often associated with the highest accumulations of nitrates.
Extended drought prior to pollination is not necessarily a prelude to high accumulations
of nitrate. The resumption of normal plant growth from a heavy rainfall will
reduce nitrate accumulation in corn plants, and harvest should be delayed for
at least 1 to 2 weeks after the rainfall. Not all drought conditions cause high
nitrate levels in plant. If the supply of soil nitrates is in the dry soil surface,
plant roots will not absorb nitrates. Some soil moisture is necessary for absorption
and accumulation of the nitrates.
If growers want to salvage part of their drought damaged corn crop as silage, it's best to delay harvesting to maximize grain filling, if ears have formed. Even though leaves may be dying, the stalk and ear often have enough extra water for good keep. Kernels will continue to fill and the increases in dry matter will more than compensate for leaf loss unless plants are actually dying or dead. Moreover if nitrate levels are high or questionable, they will decrease as plant get older and nitrates are converted to proteins in the ear.
For information on testing and feeding corn with varying nitrate-nitrogen levels, check out the following
Drought-Stressed Corn For Silage - Bill Weiss available on-line at http://corn.osu.edu/archive/2002/jul/02-24.html#linka
Nitrates in Dairy Rations - Maurice Eastridge and Bill Weiss, Ohio State University
Fact Sheet AS-0003-99
available on-line at http://ohioline.ag.ohio-state.edu/as-fact/0003.html
The results of the 2002 Wheat Performance Trials are now available on the internet ( http://www.oardc.ohio-state.edu/wheat2002/) and printed copies are available in Ohio State Extension county offices. This years trials included fifty soft red winter varieties, six soft white winter varieties and two triticale varieties. Tests were conducted at four locations in the state (Wood Co., Crawford Co., Wayne Co. and Pickaway Co.). Yields varied considerably across locations this year with the variety average ranging from 68.3 bu/A at Wood Co. to 84.9 bu/A at Wayne Co. Included in the results are seeding rates as seeds per foot of row, test weight, seeds per pound, lodging, plant height, heading date and powdery mildew ratings. Flower yield and flower softness data are also listed for each variety tested.
Cool temperatures in May and dry conditions in June limited disease development at all locations such that disease did not appear to be a limiting factor affecting yield in 2002. Wheat producers need to be aware of this when using this data for selecting varieties based on yield alone. Disease resistance is an important selection criterion for varieties grown in Ohio and the 2002 growing season did not permit adequate disease resistance testing. Additionally, an unusual late freeze reduced grain yield by up to 25% in some varieties at the Crawford Co. location and by as much as 50% at the Pickaway Co. location. Thus, growers need to exercise caution when interpreting yield data from this report. Two and three year data are also available in the report to help determine the long term yield stability of the varieties entered in the test since 2000.
This years report also includes the results of a row spacing study that tested 19 wheat varieties grown in two row spacings (7.5 inch vs. 15 inch) at the Wayne Co. location. The average yield of the 19 varieties at the two row spacings were 87.8 bu/A and 88.5 bu/A, respectively, indicating no great differential in yield between the two row spacings this year.
Wheat growers are advised to obtain yield and other performance information from multiple sources on which to base varietal selection for the 2002-2003 growing season. There are many good varieties on the market that will produce high yields given the proper management. The objective is to choose several of these better varieties to grow and to not choose varieties that may have some unforseen production limitations. Consulting multiple year and multiple location tests will help identify the better varieties for your farming operation.
Questions continue to come in about harvest restrictions for corn and soybeans used as forages. Much of the state continues to be dry and corn and soybean harvest for silage is quickly approaching. Corn silage harvest will be much earlier than normal and due to the late planting, there may be fields of corn that can not be used for silage depending upon which herbicides were used and when they were applied. For example, if corn silage was harvested this week, on August 15th, then an herbicide with a 50 day harvest interval needed to have been applied on or before June 26th. Refer to Table 3 on page 61 of the 2002 Weed Control Guide for Field Crops that lists the herbicides and the days to harvest for corn as silage and for grazing. There are a few mistakes in the table, therefore a listing of the harvest restrictions follows:
Few soybean herbicide labels allow soybeans to be harvested as a forage. Soybeans may be harvested as a forage if Boundary, Prowl, or Sencor were applied preemergence. The Boundary and Sencor must have been applied 40 days before harvest. Soybeans may be harvested for forage when Basagran, FirstRate, Roundup UltraMax, or Glyphomax has been applied postemergence. Basagran must be on for at least 30 days and the other postemergence products must be applied at least 14 days before harvest. Soybeans applied with Touchdown may not be harvested for forage. If other glyphosate formulations were used, be sure to read the label or contact the company to understand the harvest restrictions for soybeans as a forage. If soil-applied herbicides other than Boundary, Prowl, or Sencor were used in Roundup Ready soybeans, then those fields must be harvested for seed and not for forage.
Due to low and variable yields, some farmers will experience low or negative farm income in 2002. There are a number of management strategies that can be used, even in a low income year, to generate cash or maximize after-tax income. Following are some strategies followed by an edited summary from the 2001 Farmer's Tax Guide (Publication 225) on Net Operating Losses:
1. Do a tax estimate in the Fall when you still have time to make management
decisions for the current tax year.
2. If the estimate appears to be about a break-even year, try to have enough
taxable income to utilize your personal exemptions and deductions.
3. If there is a farm Net Operating Loss, farmers have the following options:
a. Carry back 5 years, then 4, then 3, etc.
b. Forgo the 5 year carryback and carryback only 2 years.
c. Forgo the 5 year and 2 year and only carryforward for 20 years until used
up.
4. If a Net Operating Loss is carried back to get a refund of previously paid
federal income taxes (not Self-employment taxes) then also file amended Ohio
returns (IT 1040X), School District, and any city tax returns for additional
refunds.
Net Operating Losses
If your deductible loss from operating your farm (after applying the at-risk and passive activity limits) is more than your other income for the year, you may have a net operating loss (NOL).
If you have a NOL this year, you can use it to lower your taxable income in another year or years. You may be able to get a refund of all or part of the income tax you paid for past years, or reduce your tax in future years.
To determine if you have an NOL, complete your tax return for the year. You may have a NOL if a negative figure appears on the line shown below for 2001 tax returns:
1) Individuals - line 37 of Form 1040.
2) Estates and trusts - line 22 of Form 1041.
3) Corporations - line 30 of Form 1120 or line 26 of Form 1120-A.
If the amount on that line is zero or more, you do not have a NOL.
There are rules that limit what you can deduct from gross income when figuring a NOL.
These rules are discussed in detail under How to Figure an NOL in Publication 536. In general, these rules do not allow the following items:
1) Personal exemptions.
2) Capital losses in excess of capital gains. (Nonbusiness capital losses may
only off-set nonbusiness capital gains.)
3) The section 1202 exclusion of 50% of the gain from the sale or exchange of
qualified small business stock.
4) Nonbusiness deductions in excess of non-business income.
5) Net operating loss-deduction.
The following individual IRS products have been revised to reflect the new law.
Form 1045, Application for Tentative Refund, which is generally used to carry back NOLs, and its instructions have been revised to explain the new carryback rules.
The instructions for Form 6251, Alternative Minimum Tax Individuals have been revised to explain the new 100% offset for the alternative tax NOL deduction.
Additional NOL Guidance, A supplement to Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts, explains the new carryback rules. News Release IR-2002-66 introduces Revenue Procedure 2002-40, which provides procedures for electing a 2-year or 5-year carryback period.
More details, forms, and instructions are available from:
http://www.irs.ustreas.gov
http://www.state.oh.us/tax/
Readers can subscribe electronically to this newsletter by sending an e-mail message to: corn-out-on@postoffice.ag.ohio-state.edu. A successful subscription message will receive by an automatic reply from the listserv. Contact your local Ohio State University Extension Office or e-mail labarge.1@osu.edu if you have problems subscribing.
Past versions of C.O.R.N. can be found on the World Wide Web at: http:/www.ag.ohio-state.edu/~corn/archive/
C.O.R.N. is a summary of crop observations, related information, and appropriate recommendations for Ohio Crop Producers and Industry. C.O.R.N. is produced by the Ohio State University Extension Agronomy Team, State Specialists at The Ohio State University and Ohio Agricultural Research and Development Center. C.O.R.N. Questions are directed to State Specialists, Extension Associates, and Agents associated with Ohio State University Extension and the Ohio Agricultural Research and Development Center at The Ohio State University.
State Specialists: Pat Lipps & Dennis Mills (Plant Pathology), Bill Weiss & Normand St. Pierre (Animal Science), Peter Thomison (Corn Production), Jeff Stachler (Weed Science), and Bruce Eisley (IPM). District Specialist: Bob Fleming & Ed Lentz (Northwest) Extension Agents: Dave Jones (Allen), Steve Prochaska (Crawford), Greg Labarge (Fulton), Jim Lopshire (Paulding), Glen Arnold (Putnam), Clark Hutson (Seneca) and Roger Bender (Shelby).Editor: Dave Jones Web Editor: Tom Rosati
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