of them expect cash rents to surge 16%. those are the headlines, back to john for crop watch. >> chrisman, illinois at the 'phipps . >> crop watch this week starts in the greater illinois area at the fife farm. our yields are better than expected but less than hoped for. he drives the combine while i do the grain cart. the grain cart is clearly the most important job and that's why i'm at the wheel. lincoln nebraska a grower said his soybean yields are from 44 to 63-bushels an acre if corn harvest is moving fast. they have only had rain once during the harvest season. in oregon we are told weather is unseasonablely warm. yields are off by a third this year. in tip ton county tennessee cotton harvest is 90% done.

yields have been average to slightly above average. when we come back its time to talk markets. al will joined by mike flores and chip. it gets going in two minutes. please stay with us.

123450 our ronde table guest, mike flores from flores trading, chip from blue roof agro marketing. mike, i want to go to you first. i talk to produce ires they say nothing is happening in the grain market. as a tech trader there is always something happening. . >> we are trading range in corn. probably about a 30% range and have been there going on two weeks, we have gone through a lot of negative on the stock market and that didn't break it to the downside and that didn't break it. we are just kind of stuck here. there are to many positives to knock to down heavy duty but there are enough head winds to keep a cap on it. for the near term future i

think we will be chop around a bit. >> when you look at them you look at what happens in europe makes more of a difference tol technicals or is it supply demand affects them or is it history or --. >> it's all kind of linked together. i don't know what's leading what but the markets are just kind of in a funk, not only the grain markets but various other futures markets, stock market, nothing is making that much headway. it's just -- if you have a big move up you can't trust it'll keep going and a big move down there is no follow through there. the market is more of a day trade market. >> as opposed to a long term type market. >> are you still positive? >> yes but you don't have to be in it all the time. i think that -- i don't think there is enough grain in the world to knock the market down and keep it down. i think the likelihood of if there is a big move is to the up. not the down. right now i think it'll be chopping. >> he said that -- he didn't

think there was enough grain in the world. do you think we are that short? >> if you look most location across the corn belt through harvest, basis is a round as much as 20-cents in someplaces, 40-cents over average. bases levels would have you believe that from the commercial side either the crop isn't there, or a combination of the demand ask better than what the u.s.d.a. is letting on. >> what about the farmers putting it in the bin holding out for the eight dollar corn. is that happening? >> i think in some cases that's happening, we are coming off the hangover from seven and a half dollar corn and almost eight dollars. there is maybe some of that let's store this away and hold out for seven dollars again. but, that normally you see that every year no matter what, farmers tucking away, even if it's on at the elevator and on farms. that cash basis level is

something you have to pay attention to and it's telling you like mike said demand is good, the crop isn't there. some combination. >> so it's locally because basis is really local. >> it's all transportation. depending where you are. it's best in the eastern corn belt but it's better than average in the western corn belt. you know here in the east, illinois, indiana, ohio, two years running where crops are below average. property sessionsers, the ethanol people really want corn right now and they have been all through harvest. >> you going to continue this bases thing. >> it's profitable to produce livestock, ethanol so yeah, the demand, those sectors will be solid and every time the corn market dips china shows up. i think you have a real solid demand base and that's why it's like it is and i think that's just going to continue.

>> very been talking about corn. is the same true about soybeans? somebody told held and made the argument that soybeans are better obviously than most people thought because they thought they weren't going it be good but we are raising more than we thought this year. >> lot of cases its expectations verses what the reality was. it was so hot and dry for so long. people's expectations were way down. as it's turning out bean harvest in most cases beat expectations, i don't know if we are up to average or what people are thinking on that -- on average i would agree that bean yields, are better than what was expected. >> will china be able to buy all the beans we grow? >> i don't know. i would have no idea but they have been buying a lot of them for a long time so i don't know why they would stop. they are in the process of trying to better everybody's

diet. i don't think the conditions have changed. they have money, they want their population to do better so i think it'll continue. >> and also buying cheese, that's a thing a lot aren't really concerned about because that cheese is what's leftover after they get done taking the ethanol out but it's a product they are selling overseas. we will be back with more in just a moment. >>

. our guest mike and chip. chimp want to ask you because last week was a big deal in europe. now let me say every week for the last six months seems like its been a big deal in europe but have they solved that problem yet? >> i -- that's any theory that they haven't. they have put a band-aid on it and let the financial markets kind of take a sigh of relief but i think longer term you have so many moving part that need to agree on one full plan it could ununravel in the weeks ahead. we talked about just seems like grains are kind of stuck in a range but if you get a worsening in that situation in europe and i have every reason it believe its like putting a band-aid on a shark bite that

there is more pain to come. it could affect us longer term. >> as i understand it there is more to it -- they do purchase a lot and we are good traders, fact that the money isn't available for the funds and the people that were investing in the markets s that really what is concerned at this point? time? >> yeah. yes because we went -- that was the reason why the markets went down in september. the moneys that farms were holding -- they were liquid ated. now in corn and beans have you the lowest open interest since july of 2010 meaning all the -- have been flushed out of the market. they went to cash. most markets came down. a lot of things came down. that was the reason behind it. they wanted -- they were like aid atingful. >> whatever happens over there does affect our markets and all

the way to the farm because that's -- the farm prices on corn for example of $7 and what not and now $6.50. >> something like $15 billion came out of the markets in that 30 day period. >> something else i want to talk about and let you talk about because -- three or four guy that have talked to me just today and say have you heard of mf global, what's happening to that. they are a big trading organization that worked on the chicago board of trade and that sort of thing and i know that one point in time you worked -- for a predec oh,essor. >> if you are involved with them is your money, your individual accounts are safe. it's all segregated, it's not mingled with the company money. you don't have to be worried about that aspect because their tends to be a run on the

company, that's what happened before, everybody wants their money back. i'm sure that mf global is probably not going to make it, some will take them over but i don't think have you to worry about your money. >> so to make it clear if you are a trader and you are trading with mf global and you have accounts there don't worry. >> that's what it's supposed to be. by law. >> by law. >> that it worked out okay. i don't know. maybe they did something they weren't supposed to but law that's how it's supposed to be. civil that something we should be concerned about. who you trade with? >> i think the global. >> basis. >> on the mf global, you know really it's just the tip of the iceberg and the european issue. it's the story because most of their losses -- its rumored through the news would have come from exposure to europe and debt issues there. that is really the big picture in the grain market and mike

said just how fast that can happen, that would be just a small portion if you compare that to other investment banks and large trading houses across the world. everything mingled, the debt issues, if you get a situation where that debt crisis gets worse or there is more down grading, by the ratings agency of debt over there, that means the margin requirements go up because some of the bonds are leveraged that can get a massive wash out. we can have tight grain stock and it may take a while to play out. it could be pain. ifif that happens. i think the mf global thick thing is a good example of just how quickly things could change. quick question, what is going to happen to the grain prices in the future. >> i think short term we could wiggle on down, long term

higher. >> i guess i would take a little alternative, i think short run maybe have more up sid, 30 to 40-cents in corn, 50 to 60 in beans, the risk is there where have you to start manage that and lock profitsn. >> now is the time to start planning for next year. we will be back with more in a moment.

. mike hoffman is here to help us bring in the month of november. are we going to get a cold mass of arctic air? >> i see some shots of cold air coming early in november but i don't see it lasting quite yet, at least right now. that's something we will have to watch many as far as the drought monitor is concerned, we always show you at this time of the week, it's not good news for the southern half of the plains as it has been this entire growing season and looks like the dry conditions back

into the four corner area as well. same thing over the southeast, georgia, south carolina and then you can see the area from illinois into iowa and minnesota that's actually continuing to dry off so that's not good news for that area. we do see the cold shots coming in and that will spread showers southward as well as we head through the month of november. i don't see a big end to this any time soon. let's check things out. there is the jet stream as we start the week. a trough moving through the great lakes, that will spread rain though some snow showers, higher elevations, maybe a monday night this to tuesday. then a little bit of a trough through thursday but you can see basically zonal flow as the trough starts to develop out in the western parts of the country. it looks like a lot of cold air to the north but still remaining mild. looks like moisture moving

across florida with a stationary front there, maybe an area of low pressure, that could add moisture to that week little system. little bit of rain and snow shower activity there but nothing big and then the next -- starting to dive into the pacific northwest as you can see that was rain and snow there, that system continues to dive southward, pretty cold shot of cold air over the northern plains as we head through the middle of the week. scattered rain showers, as it moves across the great lakes, as we head through the middle of the week. this could be another snow maker for the -- good news for the skiers any way. adding moisture to the central portions of the rockies. by friday this front will be stalling out through the southeast, chilly conditions and another shot 6 cold air through the northern plains with snow into the northern plains, northern rocky was that one as well. mainly rain showers with this system exits to the great lakes

and a little bit of snow on the back side of that. this could be a little bit of good news as this could stall out and add showers to texas but that's just a chance later on this week. we will check out the longer range in the next half hour.

. one theme of the renewable energy industry is the comparison to home grown fuel to oil coming evil foreign suppliers. this questionable argument may be about to unravel. most of the imported oil comes canada and mexico not only are they reliable but are also good neighbors. constantly showing a shiek on a camel is misleading. even more interesting what would happen if the current governments get replaced by democractic ones. saddam is gone, gadhafi, even the kingdom of saudi arawis is

heading toward reform. we still have chavez but few have suggested he is exporting terror. there is still iran but they are a small supplier. iraq is a question mark because of new, nigeria isn't a threat. what if the bad guys of oil disappear? who would we hate on at the pump? disconnecting energy policy from -- that would leave us with economics. the idea of carbon taxes may be something alternative energy backers would consider as more policy makers think of this idea for revenue purposes political surprises in the mideast could make it attractive. please let us know what you think. send e-mails to mailbag at united states farm report.com or call and leave us a voicemail. coming up texas farmers cross the bored border to look at

canada agriculture. stay with us. the second half is coming right up. . today on united states farm report, more trade progress as border issues with mexico inch toward improve men. our canada plays host to farmers from texas. and wisconsin lawmakers wrestle with the spreading controversy. >> united states farm report is brought to you by the enlist weed control system, by yamaha a tvs, real word tough and by chevy and their award winning cars, trucks and crossovers. hello and

welcome to u-s farm . >> hello and welcome to united states farm report. the economic picture may be getting brighter. consumers seem to be more interested in buying the european economic soap op era is on the up tick. progress in the area is never fast enough of course but more of us are lowering our expectations of when things will return to normal and even what that normal may look like. the virtue of being patient may be something we have to adopt whether we want to or not. the absence of bad news is no substitute for good news but i'm beginning to count it as a win. let's get started the head live lines. >> agriculture took a -- laid out u.s.d.a.'s priorities for the 2012 farm bill this week. in light of the current budget crunch in washington he acknowledges his department will have to do more with less.

every five-years congress goes through the legislative process to create the farm bill. from the -- it dictates farm policy like direct payments, disaster help and land conservation. despite the name 75% of that money doesn't go directly to agriculture. instead it goes to federal nutrition programs. >> some may keep calling the farm bill out of convenience or maybe even out of tradition. i think we are doing it a disservice. we want this legislation to have the support of the other 98% of americans who don't farm. we have to remind them why this legislation matters to them and to their families. >> he said safety net programs for farmers must be made more efficient. he said conservation funding must continue to be a part of it and he wants the next farm bill to contain fund that would

expand bio fuels beyond corn based ethanol. in wisconsin there is a legislative flap over government's role in protecting the dairy industry and it's from the use of margarine. in september a lawmaker wanted to take back the law state that butter be preferred in state prisons, restaurants and schools. some legislators want to get rid of the treatment but butter activists say it would undermine and insult wisconsin dairy farmers, repeal activists say the state could save money. the law has been around for decades, it was to try to protect the dairy industry. violating the butter law carries a fine of 100 to $500 but wisconsin's department of agriculture said no restaurant has been cited in recent memory. in manyl communities trick or treaters will be knocking at

your door this weekend as halloween draws near. no doubt many of you are taking time to get a pumpkin for this year's jack olantern. the lobby says don't just throw the seed away. they make a healthy snack. they are full of minerals like iron and zinc. they are also a good source of protein. while they are normally roasted, roasting does remove some of the nutritional value. >> >> well it's feeling fall like across many parts of the corn belt. chilly conditions as we start the week, a little bit of shower and snow shower activity in parts of the central great lakes, a good crop but most of the moisture will be down in the southeast, especially florida, maybe even tropical moisture moving along a

stationary front. warm in the southwest, a trough moving in the northwest, rain and mountain snows as we start the week, by the middle the week that dives in to the eastern rockies, the western plain states, not a strong one, most of these moving quickly from west to east but there will be rain shower activity from parts of the great lakes in to the central plain states and this could be similar to last week where you get good snows, even down into parts of new mexico like we did see last week. little bit of rain along the eastern seaboard. by friday, we see the trough into the middle of the country. i don't see any big ones developing which means the really cold stuff stays in canada though this could be a good shot of cold air coming in to the far northern rockies as we head into friday. that will be producing some snow in the northern rockies also, mainly rain showers in the great lakes though the far northwest could see flakes of

snow. scattered showers and thunderstorms down east coast and into parts of texas as the front comes south thursday and friday then it has a chance from the doubt areas to produce some moisture but don't see it being a big deal. here is the next week's temperatures, this will take us from november 6th through the 12th above normal from the southern mississippi valley. back into texas, below normal for the pacific northwest and the northern rockies, as far as precipitation above normal from the tennessee valley up to the great lakes and the northeast, gulf coast area and most of the plain states, probably below normal as far as precipitation, 90 day outlook for temperatures, this takes us through the first half of the winter and you can see it'll be say cold one for the northern half of the plain its, ohio valley, great lakes, from texas into the southwest above normal. as far as precipitation above normal where we don't necessarily need it that much, the northern tier, below in the

drought areas, texas and oklahoma, now of course cold with above normal precipitation. >> that looks like last winter. >> it does. >> it's a la nina winter. >> spirit of the heart land is next.

. spirit of the heart land brought to you by yamaha, the first name in motorsports. >> it may not be in your calendar but october is national farm to school month. farmers teaming up with schools at locally grown fruits and vehicle tables to the lunch table. we tell you how it works and this report from the university of missouri. >> reporter: rick must make 30 deliveries of fruits and vegetables every day. is he helping farmers find new

customers. >> farmers are good at growing, not selling that's where i come in. >> this delivery includes apples, tomatoes picked from a missouri farm and arriving with in 24 hours. >> the kids getting food that's better, safer from a place with in a hundred miles. >> a program called farm to school connects local farmers to school cafeterias. lauren says schools participating in the program receive fresh produce, know where their food comes and helps boost the local economy. >> it's not about changing how we feed students every day, it's about making small changes that work on a daily basis. >> nearly 80 school districts in missouri run the programs, nationwide more than 2300 are involved. kids are already tasting the difference. >> i like the tomatoes because

it's like an explosion when you bite into them. >> i like fruits because they are juicy and i like that. >> school districts are rethinking how they serve food because of the proposed changes in school lunch standings. the columbia district plans to move away from heat and serve schools, and will focus more on cooking scratch. locally grown produce will also be preserved so kids can enjoy it year round. >> we think we can go back to scratch cooking make it fresher and simpler and healthier so we don't have to worry about what's in our kid's food. >> the program can help farmers expand our customer base while improving child nutrition one box of produce at a time. from the university of missouri. >> kent said the latest state figures show 30% of the population is classified as obese including one outs out of

every seven high school student students. next week an apricot grower who said not every candy has to be chocolate. when he return a taste of canada agriculture. that's next. . >> miss any of the show? head to united states farm report.com to watch the program online. united states farm report, the spirit of the countryside. again rolling in

from mexico. with the 'green-light" to operate in the . trucks are rolling in from mexico, with the green light mexico has lifted a host of tariffs it put against the united states. they imposed them in 2009, many of them on farm products, the fight was over refusal by the united states to let mexican trucks make deliveries deep inside this country. it has been okayed as part of the north american free trade agreement. american authorities agreed to

let a select number of trucks and operators if they comply with strict monitoring rules and follow united states highway regulations, the two governments resolved the issue in july. 1994nafta live links mexico, canada and the united states. farmers are familiar with their farmers to the south but moment know as much about canada. that's one reason why leaders of the texas farm bureau headed north to look at farming operations in canada. >> crossing the united states canada border would would about unnoticed if it weren't for the change in national flags. there is some of the most famous landmarks including the american falls and the canada horseshoe falls but in the countryside similarities abound. >> they have a little bit

different agriculture but -- it looks just almost like ours, it's flat, some -- most beautiful productive land i have seen. it was kind of eye opening for us. >> in the shall provinces farms on a much smaller scale than in texas and there is more of a focus on one comedy than a diverse operation. just a look at the agriculture products harvested up here. to do so requires some extra help, the government brings in workers other countries, farmers provide a wage and a place to stay. >> the foreign individuals are used on whatever business that particular farm does. at the end of their use or visa the producer pays for their airfare back to the country they came from. >> the two countries share some of the same irks irk

issues and concerns, sharing ideas and strategies with our northern neighbor is viewed as a benefit for the industry. >> when you live in a community the more you interact with your neighbors and the better neighbors they make. i think that's the case here. the more that we interact the better neighbors we all are. >> normally -- going to. >> some commodities controlled but a supply management program that guarantees some level of income. it works for canada but it's unsearch if it would work in the united states. it's one reason the average age of the farmer in can is younger than here. >> the population of canada appreciates their farmers and supports them and realizes it's a supply demand and some areas the food costs a little higher, could be under another system but because of guarantees them

a safe agriculture they support it. they really have a high regard for their producers. >> with the texas farm bureau, matt felder. >> the united states is canada's largest trading partner of agriculture goods, united states agriculture exports to canada totaled about $17 billion in 2010. imports canada were just over $16 billion. stay with us. tractor tales and our country church salute are coming up. [ thunder rumbling ]

[ wind blowing ] [ birds chirping ] [ helicopter blades whirring ]

[ gunfire ] [ explosion ] [ gunfire, whirring fades ] [ wind blowing ] [ clock ticking ] [ veteran ] i've never been the type to ask for help, but i had enough. [ breathing heavily ] [ distorted noise, battle sounds ] [ dial tone ] [ telephone dials ] [ operator ] thank you for calling the veterans crisis line, how can i help you? [ veteran ] life still has its challenges, but my family and i can deal with them better now. [ male announcer] veterans crisis line. it's your call.

. tractor tales i guess we have a real work horse. >> we have an alice and it is a real good one. we will share it with the folks. the owners say it doesn't work hard but it does do it's share of the work on their operation. >> 180, alice, i think about a 1919, about 2,000 hours ont. used it in the operation for spreading, little jobs, use a lot of the other ones for work

horses. cab i believe was locally built. year round built them for a variety of different tractor, the track for i believe was built in probably milwaukee, that year they put on -- international and other tractors too so i think all they did was manufacture which alice probably called and told them everything where it needed to be cut out and small light work tractor. probably a -- ten foot disc maybe pull behind it and probably a three to four bottom plow. still the way we bought it. outside of putting batteries in it. about all we have done to it. i like it the way the -- the it doesn't have power shift, the -- it's nice. bump up your speed like if you want to go a short distance,

handy. >> don't forget you can always view more tractor tales at united states report.com. and now you can down load the segments as pod casts from i-tunes. go to i-tune store and search tractor sales. today's country church salute goes to franklin grove presbyterian in lee county illinois. it's celebrating it's 150th year of ministry. according to a local newspaper the founders first met on a cold new year's day in 1861 to worship. robert miller says it's a small farming community with a population of 968 people. 60 of them go here. congratulations. and our second church salute goes to a catholic church in banisters michigan which is celebrating it's 100th

year. it was founded by immigrants who had moved to the area in 1800 to farm the land. in 1911 they built the first church their present church seats 500. there is also a change in the pup pit. father wolf is retiring and. our thank you to john for sharing their story. and as always we want to learn about your home church as well. salutes can be sent to the address on the screen. stay with us. the mailbag is next. >> country church salute is brought to you by farmers feeding the world. agriculture leading the way and feeding a hungry planet. learn more, give, dream huge with us. us - the mailbag is

next. time now for our weekly look inside the farm rep . time for the weekly look inside the farm report mailbag. richard is concerned about food waste, he refers to a video we will provide the link to. the folks in the video are getting their food from dumpsters outside food stores, lots of it is just being wasted that could go to feeding people or at least pigs. it is hard to look at obvious waste and not conclude the food system is inefficient but the food waste problem like many other issues is very complex. for example, we have been following the story of the listeria outbreak caused by contaminating fruit. incidents like this only make stronger the shelf life rules

for foods to satisfy a worried public. much of what we throw out is perishable and has exceeded sell by date. there is the complication of how consumers view value in food. as long as we favor getting the most calories for the least money restaurants will boast a huge serving, much to my huer eye i have started ordering senior selections not because they are cheaper but for the smaller portions. buffet fans usually over estimate their appetite and waste food. because much of wasted food is prepared it's nearly impossible to save. ingredients however have a longer shelf life and are more stable so more cooking at home would help. finally the days of feeding pig human trash have been over for decades, it's a bad idea period. as always we want to hear from you. send comments to mailbag at united states farm report.com or call and leave us a voice

mail. for all of us, thank you for watching united states farm reports, be sure to join us next week, we will work to do even better. .