Jim Cramer - "Take your money out of the stock market"

Where are we headed? Jim Cramer isn't exactly reassuring in this clip....

Five feet high and rising

Now that the bailout package has passed, it is not exactly reassuring to see the Dow Jones continue its dive, now uncomfortably below 10,000. Perhaps John McCain will have buyer's remorse for having voted for the bill, since there appears to be little to no benefit to market psychology from the bailout. How this all impacts the farm community is getting a little more play. Here are a few headlines snatched from the Web about agricultural lending.



Ag lending thrives amid financial turmoil From The Modesto Bee:

"The fundamental economics of agriculture overall are positive," said Roger Sturdevant, an executive vice president with Bank of the West and manager of its farm lending division, based in Fresno.


Farmers, ranchers could feel credit crunch From the AP's Betsy Blainely

While there's no immediate problem because agricultural lending institutions remain strong, there's fear that the recent financial meltdown will make bankers far more cautious, said Carl Anderson, an agricultural economist at Texas A&M University.

"I would say that everybody's pretty cautiously concerned," said Don Langston, a longtime cotton producer in Texas, the nation's leading producer of the fluffy fiber and the nation's No. 2 agricultural state.

Farmers still able to get bank loans From The Des Moines Register:


Farm Credit Services' bonds are the principal source of funding for the agency. As government sponsored entities, they are tax-exempt and thus can be sold at a more attractive rate.

Kinnison noted that unlike Fannie Mae and Freddie Mac, Farm Credit Services doesn't package its farm loans and resell them in securities markets. Instead, it processes and services its own loans, which can have durations of up to 25 or 30 years. That practice put Fannie Mae and Freddie Mac, plus several major private investment houses, in financial trouble as the nation's housing market has sunk.

"We keep and administer our own loan portfolios, and our bad-debt ratio is 0.29 percent of our total portfolio," Kinnison said. "We like to think of ourselves as a poster boy for how an agency like ourselves should act."

Tight credit could nip farm sector From Reuters:

My understanding is the financial lenders in rural America are very strong," Buis said. "We hope it doesn't spread."

Interest rates on price-support loans by the Agriculture Department fell by one-quarter percentage point for loans made in October. The loans, which use crops as collateral, can be a short-term financing tool for growers.

Warmongering watermelons and the end of NASS pesticide residue testing

The role of the Department of Defense Fresh Program has attracted some media attention on the left coast. Check out this over the top coverage in SF's City Insider:

Even if the Junior Reserve Officers' Training Corps is kicked off San Francisco high school campuses as planned in June, the district still won't be a demilitarized zone.

Turns out, the school cafeterias get much of their fruits and vegetables from the U.S. Department of Defense.

On today's menu: militarized mangoes, saluting salads and Green Beret bananas.

Districts across the state and country, including San Francisco, contract with the DOD's Defense Supply Office to deliver a wide variety of produce to schools via its distribution network. The program allows districts to save money while offering a wider variety of healthy fruits and vegetables to kids.

Despite the school board's official opposition to the JROTC's military association, its members have yet to address potential warmongering watermelons.

TK: Meanwhile, there is a thread in the Fresh Produce Industry Discussion Group about the Bush Administration's decision to kill the National Agricultural Statistics Service Agriculture Chemical Usage Program, much as funding dried up for the controversial Microbiological Data Program in 2006. Jimmie Turner of the USDA AMS said the Agricultural Marketing Service also has a separate and distinct Pesticide Data Program that is not being cut or phased out.

For the USDA AMS links to their PDP and MDP programs, go here. For the USDA NASS Chemical Use Database, go here.

Though industry leaders cringed and were chagrined (some at the September fruit and vegetable advisory committee meeting) that the ag chemical residue data was often sensationalized and misused by consumer groups (aka the Dirty Dozen list of the Environmental Working Group) Chris Schlect of the Northwest Hort Council said the program was valuable.

Chris wrote:

"The Minor Crop Farmer Alliance, Northwest Horticultural Council, United States Apple Association, Florida Fruit and Vegetable Association and many other produce groups have worked hard to maintain funding for this USDA pesticide data program. We will work hard to secure its reinstatement.

While unfortunately the EWG and others have sometimes misused such chemical use data, this is not a sufficient reason to oppose a program that has delivered good, credible usage information to both the public and industry."

TK: Here is some other coverage of the topic I've found on the Web:

Pesticide-testing program halted

WASHINGTON — The Bush administration has abruptly halted a government program that tests the levels of pesticides in fruits, vegetables and field crops, arguing that the $8 million-a-year program is too expensive — a decision critics say could make it harder to protect consumers from chemicals in their food.

Data from the 18-year-old Agricultural Chemical Usage Program administered by the U.S. Department of Agriculture (USDA) were collected until this year, and the Environmental Protection Agency (EPA) used the data to set safe levels of pesticides in food.

The information was also widely used by university and food-industry researchers, including a University of Illinois program to help farmers reduce the amount of pesticides they use.

The program was launched in 1990 to answer congressional concerns over the use of the chemical daminozide, or Alar, on apples. But Mark Miller of USDA's National Agricultural Statistics Service, which administered the program, said the program is too expensive.

The decision was criticized by researchers at the EPA and elsewhere who have come to rely on the data, which measure how much pesticide farmers apply to certain crops each yea


Bush halts pesticide food residue tests

Fall vegetable acreage down

With storage onions showing a big decline, the USDA's Oct. 3 vegetable report revealed moderately lower acreage for fall harvested fresh vegetables. From the summary:


The prospective area for harvest of 11 selected fresh market vegetables during the fall quarter is forecast at 151,370 acres, down 4 percent from last year. Acreage declined from last year for snap beans, cabbage,cauliflower, celery, head lettuce, and bell peppers while acreage increased for carrots, sweet corn, cucumbers, and tomatoes. Area harvested for broccoli remains unchanged. Area forecasted for fall melon harvest is 15,600 acres, up 1 percent from last year. Cantaloup harvested area is forecast at 12,100 acres, unchanged from 2007. Hneydew harvested area is forecast at 3,500 acres, up 6 percent from last fall.

Summer storage onion production is forecast at 51.5 million hundredweight, down 10 percent from last year. Storage onion harvested area is forecast at 99,620 acres, down 8 percent from 2007. California production, at 12.9 million hundredweight, is 1 percent below 2007. Harvested area is expected to total 30,000 acres, down 2 percent from last year.


Snap Beans: Fall fresh market area for harvest is forecast at 16,200 acres, down 12 percent from last year. In Florida, during late August, rainfall from Tropical Storm Fay delayed some fieldwork. In early September, some growers delayed planting due to persistent standing water in their fields. By mid-September fields began to dry out allowing growers to proceed with planting. In New Jersey, growing conditions were favorable for the fall snap bean crop. However, severe storms in late August damaged some fields in the South Jersey area. Overall, the crop is reported to be in good condition.

Broccoli: California's area for fall harvest is forecast at 28,000 acres, unchanged from 2007. Harvest of the fall crop is underway and is reported to range between very good to excellent condition. Production volume is expected to remain strong throughout the growing season.

Cabbage: Fresh market area for harvest is forecast at 5,770 acres, down 8 percent from last year. Soil moisture supplies in Georgia are reported to be adequate to short. In Florida, Tropical Storm Fay delayed some planting over the central and southern Peninsulas throughout August and September. Warm temperatures after planting boosted crop growth and development. Growers expect to plant their cabbage crop through mid-December. In New Jersey, harvest of the cabbage crop started in late September. Crop quality is reported to be good. In Texas, planting was on schedule. Harvest is expected to begin by early October.

Cantaloups: Fall cantaloup area for harvest is forecast at 12,100 acres, unchanged from 2007. Arizona's harvest began the third week of September. The season is expected to be in full swing by mid-October. In California,ideal temperatures benefitted the melon crop. No major insect or disease problems have been reported.

Carrots: Area for fresh market harvest is forecast at 19,300 acres, up 1 percent from last year. In California, baby carrots are in high demand. Harvest is underway and the crop is reported to be in good condition with no unusual disease or insect problems. In Texas, planting was on schedule. Condition of the crop is reported to be excellent in the southwest area of the State. Rainfall during July and August benefitted soil moisture.

Cauliflower: Area for fall harvest in California is forecast at 7,900 acres, down 5 percent from last year. Ideal growing conditions contributed to excellent sizing and crop quality. Harvest is underway with no disease or insect problems reported.

Celery: California's fall area for harvest is forecast at 7,000 acres, down 1 percent from 2007. Growing conditions have been favorable for the early fall celery crop.

Sweet Corn: Fresh market area for harvest is forecast at 8,800 acres, up 6 percent from last year. The California crop is in excellent condition due to favorable weather during the summer and early fall. In Florida, during late August, rainfall from Tropical Storm Fay delayed some fieldwork. In early September, some growers delayed planting due to persistent standing water in their fields. By mid-September fields began to dry out allowing growers to proceed with planting.

Cucumbers: Area for fall harvest is forecast at 5,700 acres, up 2 percent from 2007. In Florida, tropical storms during August and September delayed some plantings over the central and southern Peninsula areas. However, warm temperatures after planting boosted plant growth and development. Growers in South Carolina experienced a hot and dry growing season. In Texas, planting was on schedule despite downy mildew being reported in some fields.

Honeydews: Fresh market area for fall harvest is forecast at 3,500 acres, up 6 percent from last year. Arizona's harvest of fall season honeydews began the third week of September. California's fall melon crop is progressing well due to ideal temperatures. No major insect or disease problems have been reported.

Head Lettuce: California's area for fall harvest is forecast at 30,000 acres, down 9 percent from last year. Early planted lettuce fields have begun to emerge. Fields were being fertilized and treated to control insects.

Bell Peppers: Florida's fall a rea for harvest is forecast at 3,700 acres, down 16 percent from 2007. Planting was delayed in South Florida due to excessive rainfall.

Tomatoes: Fresh market area for fall harvest is forecast at 19,000 acres, up 3 percent from 2007. In California, harvesting of fall tomatoes was delayed in Fresno County due to water shortages. In Florida, acreage remains historically low due to flooded fields, lack of demand during the summer season, and high input costs

Summer storage onion production is forecast at 51.5 million hundredweight (cwt), down 10 per cent from last year. Harvested area is forecast at 99,620 acres, down 8 percent from 2007. The yield, at 517 cwt per acre, is down 15 cwt from last year. Planting of California=s storage onion crop was on schedule. However, cool temperatures during the growing season delayed harvest. No major disease problems were reported. In Colorado, harvest was
a week behind schedule. In Idaho, harvest was delayed due to excessive moisture and a cool summer during the growing season. In Michigan, early- planted onions emerged by the beginning of May. Prospects for the onion crop is reported to be good to excellent. In New York, severe hailstorms in central New York resulted in some loss of acreage due to abandonment. Malheur and Other Oregon producers expect lighter yields this season due to a cold spring. Wisconsin experienced very wet conditions during the early part of the year, then unseasonable dry conditions later in the season.