Washington — USDA, in its Aug. 10 Crop Production report, said U.S. corn production is now forecast at 10.8 billion bushels, down 13 percent from 2011 and the lowest production since 2006. Based on conditions as of Aug. 1, corn yields are expected to average 123.4 bushels/acre – down roughly 23 bushels from last month, and 43 bushels below the June estimate. The yield projection also reflects a drop of 23.8 bushels from 2011. If realized, USDA said this will be the lowest average yield since 1995. Area harvested for grain is forecast at 87.4 million acres, down 2 percent from the June forecast, but up 4 percent from 2011. USDA said heat and drought has “devastated pastures and summer crops in a broad area covering the Nation’s Heartland, including large sections of the Plains, Midwest, and mid-South.” July rainfall totaled less than 50 percent of normal in the hardest hit areas, USDA reported, while July temperatures averaged 4-8 degrees above normal across much of the Plains and Midwest. “As a result, corn and soybean conditions fell to levels comparable to those observed at the height of the historic 1988 drought,” the report said. “By July 29, 2012, the percentage of U.S. soybeans rated very poor to poor – 37 percent – matched the highest value observed at any point in 1988.” Soybean production is forecast at 2.69 billion bushels, down 12 percent from last year. Based on Aug. 1 conditions, soybean yields are expected to average 36.1 bushels/acre, down 5.4 bushels from last year. If realized, the average yield will be the lowest since 2003. Soybean area for harvest is forecast at 74.6 million acres – down 1 percent from June, but up 1 percent from 2011. All cotton production is forecast at 17.7 million 480-pound bales, up 13 percent from last year. Cotton yields are expected to average 784 pounds/acre, down 6 pounds from last year. Producers expect to harvest 10.8 million acres of all cotton, up 14 percent from 2011. All wheat production, at 2.27 billion bushels, is up 2 percent from the July forecast and up 13 percent from 2011. As of Aug.1, the average U.S. wheat yield is forecast at 46.5 bushels/acre, up 0.9 bushel from last month and up 2.8 bushels from last year. Rice production is forecast at 190 million cwt, up 3 percent from last year. Rice area for harvest is expected to total 2.64 million acres, unchanged from June, but 1 percent higher than 2011. Based on conditions as of Aug. 1, the average U.S. rice yield is forecast at 7,196 pounds/acre, up 129 pounds from last year.

Fort Meade, Fla. — JDCPhosphate Inc. (JDCP) has closed an equity financing sufficient to fund the construction and operation of a demonstration plant with annual production capacity of 12,000 tons per year of high quality and high concentration phosphoric acid. The investors are a combination of strategic and venture investors, including Mitsui & Co. (U.S.A.), Inc., Vulcan Phosphates LLC (a special purpose entity formed by the owners of Agrifos Fertilizer L.L.C.), the Florida Opportunity Fund (FOF), and Espirito Santo Ventures. The patented process technology being implemented in the demonstration plant – the Improved Hard Process (IHP) – was developed by Dr. Joseph Megy, JDCP’s founder and chief technology officer. The process incorporates a number of critical developments and improvements to the kiln phosphoric acid technology developed by Dr. Robert Hard and Dr. Megy in the early 1980s, allowing lower grade rock to be utilized in the phos acid making process. "We are delighted that such a strong international syndicate of strategic partners and venture investors has decided to invest in this important technology," said Theodore "Tip" Fowler, JDCP CEO. "It is not often that one finds an opportunity to invest in a company with the potential to transform a $30 billion industry, as well as substantially impact the local economy. JDCPhosphate has the potential to be such a company," said Jennifer Dunham, FOF managing director. FOF was established in 2007 to increase the availability of venture capital in Florida. Mitsui USA was incorporated in 1966 in New York as a wholly owned subsidiary of Mitsui & Co., Ltd., Tokyo, Japan, a leading international trade and investment company operating with an extensive global network. Agrifos is a privately owned producer of sulfuric acid and ammonium sulfate fertilizer located in Pasadena, Texas. Espirito Santo Ventures, Lisbon, Portugal, is a venture capital firm focused on technology-based companies and innovative business projects with high-growth potential.

Marysville, Ohio — The Scotts Miracle-Gro Co. reported net income of $93.3 million ($1.50 per diluted share) on sales of $1.06 billion for the third quarter ending June 30, 2012, compared to the year-ago $111.6 million ($1.69 per share) on sales of $1.06 billion. “After a strong start to the season, consumer engagement clearly began to decline in May and June,” said Jim Hagedorn, Scotts chairman and CEO. “We’re pleased to see strong year-over-year improvement in consumer purchases of mulch and controls, but our fertilizer and growing media categories are flat so far this year and have not delivered the results expected.” Other factors impacting earnings included commodity costs, advertising, freight for expedited shipments to meet strong March demand, costs associated with innovation in the Ortho product line, and unfavorable product mix. Hagedorn said the company is focused on several initiatives to improve margins and reduce expenses, including price increases. “While we will continue to evaluate acquisition opportunities, our near-term focus will be on restoring our current business to an appropriate level of profitability, not on integrating something new.” Nine-month net income is off 34 percent to $146.6 million ($2.36 per share) on sales of $2.45 billion, compared to the year-ago $221.3 million ($3.37 per share) on sales of $2.42 billion.

Marysville, Ohio — The Scotts Miracle-Gro Co. donated $200,000 in June to the Restore Our Future super PAC, which supports Republican presidential nominee Mitt Romney. The news raised eyebrows, as Scotts is a public company with well-known public brands that could conceivably suffer if consumers disagreed with those donations, much in the same way as Chick-Fil-A has become a target in recent weeks. A company spokesman said it was Miracle-Gro Chairman and CEO Jim Hagedorn’s policy to donate in the light of day. Likewise, he said the company would benefit from Romney’s policies on corporate tax reform, business regulation, and federal spending, as well as its assessment that Romney could revive the economy. Hagedorn, however, does not have a record of being a strict partisan, as he publically supported former Ohio Gov. Ted Strickland in his failed attempt at re-election in 2010. Hagedorn has raised controversy before, telling The Wall Street Journal that he wanted the Scotts to target the marijuana market (GM June 20, 2011, p. 12). The company later downplayed the remarks.

Cranbury, N.J. — Specialty phosphate producer Innophos Holdings Inc. reported net income of $16.5 million ($0.73 per diluted share) on sales of $214.2 million for the second quarter ending June 30, 2012, compared to the year-ago $20.7 million ($0.92 per share) on sales of $201.6 million. Operating income from the Specialty Phosphate segment was up, at $28.8 million on sales of $194.1 million from the year-ago $27.7 million on sales of $170.6 million. Income from the GTSP/Other segment was in the loss column at $2.5 million on sales of $20.1 million, versus the year-ago positive $4.9 million on sales of $31 million. Innophos six-month net income was $44.1 million ($1.94 per share) on sales of $442.4 million, versus the year-ago $46.7 million ($2.06 per share) on sales of $399.2 million. Six-month Specialty Phosphate income was $55.8 million on sales of $386.6 million, up from the year-ago $52.8 million on sales of $346.4 million. GTSP/Other posted income of $2.1 million on sales of $62.3 million, down from $11.9 million on sales of $61.5 million.