The recent ethanol phenomenon has had a variety of impacts on the U.S. agricultural economy and farm policy. In particular, higher market prices for program crops such as corn have significantly altered the federal budget baseline as lawmakers begin early work on drafting the 2007 Farm Bill.

In addition to budgetary issues, relatively higher market prices for some key commodities have caused stakeholders to focus and speculate about food inflation, renewable and alternative fuel mandates, cellusioc ethanol production, conservation policy and rural development.

An important short-term part of this overall debate is the potential size of this year’s corn crop, which will be a substantial factor in establishing an equilibrium market price for corn and other program crops in the coming months.

Recent news reports have provided some additional details and insights into the potential size of this year’s corn crop.

Jerry Perkins, writing in yesterday’s Des Moines Register, reported that, “Farmer Mark Nissen hasn’t planted any corn yet on his farm near Audubon because of wet weather, but he isn’t worried. Not yet.

“‘I’ve been looking at our trees and they aren’t leafing out yet. We’ve got a late spring coming this year,’ said Nissen, who busied himself Thursday painting inside the house.

“Nissen plans on planting 150 acres of conventional corn and 60 acres of organic corn this spring, but he thinks it will be a week before he gets in the field.”

Mr. Perkins went on to add some context to the importance of this year’s corn crop, “Sky-high demand for corn to make ethanol has sent corn prices to their highest levels in more than a decade.

“Seeking to cash in on those higher prices, U.S. farmers said they intended to increase their planting of corn this year to 90.5 million acres, the most since 1944 and 12.1 million acres more than a year ago, according to the U.S. Department of Agriculture’s planting intentions report issued last month.

“Iowa farmers said they intended to increase their corn acres by 1.3 million acres this year, up from 12.6 million acres a year ago.

“A big crop is important to keep prices low for ethanol makers, livestock producers and grocery shoppers.”

With respect to current planting progress, Mr. Perkins added these details in yesterday’s Register article, “Just 8 percent of the acres that Iowa farmers intend to plant to corn had been planted as of Sunday, according tothe Iowa Crops and Weather report issued Monday.

“‘That means 92 percent of the corn remains to be planted because we haven’t turned a wheel since then,’ said Roger Elmore, Iowa State University Extension corn specialist.

“Elmore said it will be five to seven days before the sodden fields in the state are dry enough to plant.”

Meanwhile, the local public radio station here in Champaign, Illinois, WILL-AM 580, aired a program today entitled, “Commodity Week,” which also focused in part on the 2007 corn crop.

During today’s program, host Todd Gleason of the University of Illinois Cooperative Extension Service and program panelists Pete Manhart of Bates Commodities and Dale Durchholtz, AgriVisor Services interviewed University of Illinois Agricultural Economist Darrel Good.

In part, their interview centered on trend yields and weather, as well as early planting and planting delay issues.

To listen to this part of today’s WILL radio program, just click here (MP3- five minutes).

-Keith Good