A hearing of House subcommittees on Wednesday reviewed the economic impact of Asian Soybean Rust (ASR) on the American farm sector with a goal of offering guidelines for dealing with the disease. The hearing also offered a great deal of information that may allay fears about the current state of affairs in terms of fungicide approvals, availability and supplies heading into the growing season.

The hearing was co-chaired by Frank Lucas, chair of the House Subcommittee on Conservation, Credit, Rural Development and Research, and Jerry Moran, chair of the Subcommittee on General Farm Commodities and Risk Management. They heard from two panels of witnesses representing the USDA, EPA and industry groups.

"Our primary purpose for this hearing is to give our producers clear guidelines regarding how to combat rust in a timely and effective manner," Lucas said.

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"Soybean rust is now in the US and all indications are that it's here to stay. Keeping up coordinated and cooperative communication efforts is essential to our producers' ability to respond to this disease," Moran added.

In testimony at the hearing, Jim Jones, Director of the Office of Pesticide Programs at the US Environmental Protection Agency (EPA), noted in total, there have been more than 130 FIFRA exemptions granted related to soybean rust control. This represents nine active ingredients in 19 different end-use pesticide products available to growers in 32 states.

To ensure a diverse supply of end-use products this growing season, there are nine pesticide manufacturers producing the 19 end-use products, he said.

Jay Vroom of CropLife America testified at the hearing that 1-3 and occasionally four applications are needed to control the disease, and plant scientists and USDA officials estimate an average treatment cost of $25 per acre for two treatments. He noted other estimates have put approximate fungicide costs in the area of $45 dollars for three applications.

"Actual economics have yet to be formulated, however, since the number of applications, types of fungicides, rates, adjuvant and application costs have yet to be determined in the US," he said.

"The Agency's preparedness and planning efforts are also driven to minimize any concern that insufficient product inventory may be available," Jones said.

He noted the EPA is keeping growers and others informed of its decisions by posting them on its web page in a special section devoted to soybean rust issues. The page is available here.

Crop advisers concerned about product availability

Steve Dlugosz, Chairman of the Independent Certified Crop Advisors in Indiana, spoke on what he called "the painful reality of product availability."

"Many Certified Crop Advisers are concerned about this situation particularly in light of what farmers think is available," he said.

"Many companies, such as the ones where I work, are receiving only a portion of what they ordered and could be needed if an outbreak of rust occurs. This assumes a single application of fungicide. Current experience in Brazil shows that multiple applications are usually needed of a protectant and/or curative fungicides.

An additional concern Dlugosz expressed is the basic logistics of spraying large numbers of acres in a very short time period.

"These concerns are primarily short-term issues," he noted. "As we gain experience and understanding, the soybean production system will adapt to the requirements for the long-term management of soybean rust.

"However," he said, "the urgency in the short term cannot be overstated."

Manufacturers doing all they can to predict market needs

Vroom addressed the availability concerns in his testimony.

"To determine demand and distribution decisions, each manufacturer is doing all it can, in the face of uncertain conditions, to predict the market needs and provide products for domestic use," he said.

"These decisions will require careful consultations by individual companies with a variety of government experts and stakeholders such as dealers, distributors, meteorologists, plant pathologists, Extension agents, growers and others to ensure the availability and timely distribution of products."

But, he noted that several factors will help facilitate this process and enable the markets to meet demand.

"Soybean planting seasons are a bit different across US soybean production regions. Southern soybean farmers, distributors and suppliers may be busy while Midwestern farmers, distributors and suppliers may not. The difference in seasons allows manufacturers, distributors and applicators to help each other manage this challenge."

He also noted wind patterns and climatic conditions will be key factors in determining where and to what extent ASR affects US crops during this season and requires manufacturers and distributors to respond to these market needs."

Vroom noted CropLife America is prohibited from discussing or addressing issues of inventory, price, distribution and market segmentation.

"While can't comment about these issues specifically, let me say that CropLife America believes the marketplace works effectively and our membership has extensive experience working with a highly sophisticated chemical distribution system," he said.

"I can assure you that our members are well aware of the situation and I believe they will be fully responsive to the needs of their customers. Of course, each company will continue to make independent decisions about production consistent with anti-trust laws. But they all have a strong incentive to meet this demand by soybean growers for fungicide products," he said.

Products for non-soybean legumes, organic soybeans

Jones said that the EPA expects to receive additional requests for emergency exemptions covering non-soybean legume crops later this month.

Jones also noted that USDA is concerned that many other commercially important legume crops, including peas and beans, will be susceptible to the soybean rust pathogen.

"USDA and lead agencies in states involved in the production of specialty legumes are working with OPP to evaluate the available fungicide tools, and this review is expected to lead to the submission of additional section 18 emergency exemption programs," he said.

"There are also some microbial pesticides and, potentially, some bio-pesticides being tested for effectiveness in controlling soybean rust. If successful, these products will provide organic soybean growers with tools to control the rust fungus," he said.

The Subcommittee on General Farm Commodities and Risk Management will hold a hearing on Wednesday, May 4, to examine crop insurance and ASR.

You can read all of the opening statements from Wednesday's hearing here.

StopSoybeanRust.com is a Web site with news, information and resources about Asian soybean rust, created by the Greenbook, Dealer & Applicator magazine and Successful Farming magazine. It is sponsored by Bayer CropScience US. Cooperating partners include the United Soybean Board and the Crop Advisor Institute.