March 8, 2010 - First of all, this will become a daily update again by the end of the month. 

Currently, local farmers are still in the planning mode for figuring out the best options for 2010 plantings.  Cotton acreage is growing significantly for the first time since grain prices took off in 2007.  Now cotton (along with cows) is finally the most bullish option, although other crops look ok as well. 

Here are several ideas to think about:

1. Sign up for CRC crop insurance by March 15 in Virginia.  This insurance offers both yield and price protection and looks like a good marketing plan as well as production insurance at these prices.  Traditionally, we could lock in minimum price contracts for price, but with the high premium cost for options, you are only protecting your price in the mid to low 60's.   Compare this to CRC insurance which gets you in the low 70's for much less money.

2. The market is very bullish and expectations are high but you never know.  Be sure and set up a plan.  As the old crop price outperforms everybody's expectation, the new crop seems satisfied that it will get enough acreage planted at current levels (assuming stable grain prices).  Once the acreage is set, which will no doubt be an increase, then the weather, economic, and world events take over.  Can go either way, but expect a lot of volatility.

3. Burndown could begin by the end of the month.  The issues that would suggest early burndown are if using 2,4-D to kill Marestail (Horseweed) or primrose; the label has a 30 day waiting period.  Another issue is the turfy conditions caused by bluegrass or other dense rooted weeds that do not break down quickly, especially on medium to heavy soils.  This is only a minor concern on course and sandy soils.  Otherwise, burndown can wait till a couple of weeks pre-plant or even closer if the cover is sparse.  On sandy soils, blowing conditions in the spring in large openings are a bigger concern and later burndown makes sense to insure there is a protective cover remaining after planting.

Commonwealth Gin provides advice on production and marketing of cotton. Information contained herein is from sources believed to be reliable, but is not guaranteed as to accuracy or completeness. No responsibility is assumed with respect to any statement, nor with respect to any expression of opinion herein contained. All views are the opinions of the author and no statement should be construed as an offer to buy or sell a commodity. This publication is for information purposes only.